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COUNTRY ENVIRONMENTAL ANALYSIS 2008 PHILIPPINES

PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

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Page 1: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

COUNTRYENVIRONMENTALANALYSIS2008

PHILIPPINES

Page 2: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

COUNTRYENVIRONMENTALANALYSIS2008

PHILIPPINES

Page 3: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

© 2009 Asian Development Bank

All rights reserved. Published 2009. Printed in the Philippines.

Publication Stock No. RPT090189ISBN 978-971-561-807-6

Cataloging-in-Publication Data

Asian Development Bank.Country Environmental Analysis 2008—Philippines. Mandaluyong City, Phil.: Asian Development Bank, 2008.

1. Environmental analysis. 2. Philippines. I. Asian Development Bank.

The views expressed in this book are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank (ADB) or its Board of Governors or the govern-ments they represent.

ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use.

By making any designation of or reference to a particular territory or geographic area, or by using the term “country” in this document, ADB does not intend to make any judgments as to the legal or other status of any territory or area.

The Asian Development Bank (ADB) encourages printing or copying information exclusively for personal and noncommercial use with proper acknowledgement of ADB. Users are restricted from reselling, redistributing, or creating derivative works for commercial purposes without the express written consent of ADB.

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For orders, please contact: Department of External RelationsFax +63 2 636 [email protected]

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Contents

List of Figures viList of Tables viList of Text Boxes viiAbbreviations viiiAcknowledgments xiiExecutive Summary xiii

Chapter 1: Introduction 1

Chapter 2: Background 3Country Overview 3Role of the environment and natural resources in the economy 8

Socioeconomic overview 8Medium-Term Philippine Development Plan 10Millennium Development Goals 11

Main Environmental Concerns 15Forest resources 15Agriculture resources 18Fishery resources 18Biodiversity resources 22Water resources 28Air quality 46Land resources 52Mining and mineral resources 53Urban environment 54Environmental spatial planning 56Hazardous and solid wastes 57Climate change 61Renewable energy 62Environmental emergencies 64Regional environmental concerns 68

Regulatory and Institutional Framework 69Policy and regulatory framework 69Institutional framework 77Donor agencies 93

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iv Country Environmental Analysis 2008: Philippines

Chapter 3: Challenges and Opportunities 99DENR Institutional Rebuilding 99

Insufficient government budget for ENR 99Need for DENR restructuring to fulfill expanding mandate 101Major capacity building requirement for better ENR regulation 104Need for integrated and improved information

and communication management system 106Resolution of mandate overlaps and gaps 106Passage of other important legislation 108

Improvement of the Environmental Impact Statement System 108Incomplete Devolution of ENR Functions to LGUs 109From Sector-Based to Integrated, Ecosystem-Based

Planning and Management 111Need for Increased Efforts in Forest Management and Biodiversity

Conservation 112Climate Change Mainstreaming in the Government Program 113Need for Increased Financing for Environmental Projects 114Need to Improve and Widen the Use of Market-Based Instruments 115ENR Concerns and Poverty Reduction 117

Chapter 4: Strategic Priorities 121Extensive Institutional Rebuilding and Strengthening

of DENR 121Better Management of ENR Data and Information 122Restructuring and Refocusing of the Philippine Environmental

Impact Statement System 123Genuine Devolution and Decentralization of ENR Functions 123Continued Application of Integrated Approach to Planning

and Management 123Adoption and Application of Spatial Development Plans 124Increased Financing for Environmental Infrastructure Programs

and Projects 124Use of Market-Based Instruments to Promote ENR Programs

and Projects 125Integration of ENR Principles into Poverty Reduction Programs 125

Chapter 5: Implications for the Country Partnership Strategy 127ADB’s Long-Term Strategic Framework 127Environmental Components of Key ADB Strategies

for the Philippines 128Philippine country partnership strategy 128Government-ADB poverty partnership agreement 128Philippine urban infrastructure road map 129ADB’s environment policy 129

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Environmental Considerations in the Philippine Lending Portfolio 129Current portfolio 130Portfolio in CPS 2005–2007, COBP 2007–2008, and

COBP 2009–2010 130Strategic issues 131

Possible ADB Interventions 132Mainstreaming of environment considerations in government

policies and investment programs 132Environment as a core area of operation 133

Strategic Environmental Evaluation of Proposed Pipeline Projects in COBP 2009–2010 and CPS 2011–2015 136

Summary of Strategic Environmental Evaluation of Proposed Pipeline Projects in COBP 2009–2010 and CPS 2011–2015 136

Appendixes 159 1 Water Quantity Scorecard for Major Rivers and Basins

and Hot Spots Rating for Water Quantity 160 2 Major Environment and Natural Resources

Laws and Regulations 162 3 Official Development Assistance to the Environment

and Natural Resources Sector, as of November 2007 171 4 Senate and House Bills on Environment

and Natural Resources Filed at the 14th Congress of the Philippines 182

5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August 2007 (ADB Country Strategy and Program 2005–2007) 198

6 Summary of Results of the Consultative Meeting on the 2008 Philippine Country Environmental Analysis Report 202

7 Participants at the Consultative Meeting on the 2008 Philippine Country Environmental Analysis Report 215

References 223

Contents v

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vi Country Environmental Analysis 2008: Philippines

List of Figures 1 Land Classification, 2005 16 2 Forest Cover, 2003 17 3 Protected Areas, 2004 25 4 Annual Consumption of ODS and Alternatives, 2001–2006 47 5 CDM Projects with Letters of Approval, February 2008 63 6 CFC Consumption, 1995–2005 75

List of Tables 1 Country Economic Indicators 4 2 Country Poverty and Social Indicators 6 3 Value of Fish Production, by Subsector, 2003–2005 9 4 Philippines Millennium Development Goal Indicators 13 5 Country Environment Indicators 19 6 Level of Endemism and Status of Vertebrate

Fauna in the Philippines 23 7 Number of Rare, Threatened, and Endangered

Wildlife Species, 1996–2006 24 8 Classification of Water Bodies in the Philippines 29 9 Water Demand in Major Cities of the Philippines 3010 Change in Dissolved Oxygen in Priority Rivers, 2003–2005 3111 Groundwater Quality Scorecard 3312 Water Quality Scorecard for Surface Water (Rivers, Lakes, Bays) 3613 Sewerage Services in Metro Manila, 2001–2005 4314 Sewerage and Sanitation Systems outside Metro Manila 4415 Philippine, US-EPA, and WHO Ambient Air Quality Guidelines

for Common Pollutants 4616 Annual Mean Roadside TSP Levels in Major Cities

and Urban Centers in the Philippines, 2003–2004 4817 Total Mass Emissions in Metro Manila, 2005 5118 Urbanization Forecast for the Philippines 5619 Chemical Waste Generation and Trade 5820 Strategic Environmental Evaluation of Proposed Pipeline

Projects in COBP 2009–2010 and CPS 2011–2015 137

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List of Text Boxes 1 Strategies for Potable Water in the Medium-Term

Philippine Development Plan 2004–2010 45 2 Strategies for the Mining Sector in the Medium-Term

Philippine Development Plan 2004–2010 55 3 Strategies for Hazardous Waste in the Medium-Term

Philippine Development Plan 2004–2010 60 4 Strategies for Environmental Emergencies in the Medium-Term

Philippine Development Plan 2004–2010 65 5 Policy Agenda of the Minerals Action Plan 66 6 Elements of Philippine Agenda 21 69 7 International and Regional Environmental Agreements 73 8 Bureaus, Attached Agencies, and Offices of the Department of

Environment and Natural Resources 78 9 FY2008 Programs and Projects of the Department of

Environment and Natural Resources 8610 Nongovernment Organizations in Environmental Protection 9111 Guiding Principles for the Rationalization Plan

of the Department of Environment and Natural Resources 103

Contents vii

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Abbreviations

ADB – Asian Development Bank AFMA – Agriculture and Fisheries Modernization Act

(1997) (Republic Act 8435)APIS – Annual Poverty Indicators SurveyAQMF – Air Quality Management FundARMM – Autonomous Region in Muslim MindanaoASEAN – Association of Southeast Asian NationsBIMP-EAGA – Brunei Darussalam–Indonesia–Malaysia–

Philippines East ASEAN Growth AreaBOD – biochemical oxygen demandCAA – Clean Air Act (1999) (Republic Act 8749)CAC – command and controlCARP – Comprehensive Agrarian Reform ProgramCDM – Clean Development MechanismCENRO – community environment and natural resources

officer CITES – Convention on International Trade of

Endangered Species of Wild Fauna and FloraCLUP – comprehensive land-use planCO2 – carbon dioxideCOBP – country operations business planCPS – country partnership strategyCTI – Coral Triangle InitiativeCWA – Clean Water Act (2004) (Republic Act 9275)DA – Department of AgricultureDAO – Department of Environment and Natural

Resources administrative orderDAR – Department of Agrarian Reform DBM – Department of Budget and ManagementDBP – Development Bank of the PhilippinesDENR – Department of Environment and Natural

Resources DILG – Department of Interior and Local GovernmentDMC – developing member country DOE – Department of EnergyDPWH – Department of Public Works and Highways

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ECC – environmental compliance certificate EGF – environmental guarantee fundEIA – environmental impact assessmentEIS – environmental impact statementEMB – Environmental Management Bureau ENR – environment and natural resourcesEO – executive orderESWMA – Ecological Solid Waste Management Act (2000)

(Republic Act 9003)EU – European UnionEUFS – environmental user fee systemFAO – Food and Agriculture OrganizationFMB – Forest Management BureauGDP – gross domestic product GEF – Global Environment FacilityGHG – greenhouse gas GVA – gross value addedha – hectareICRMP – Integrated Coastal Resources Management

ProjectICT – information and communication technologyIEC – information, education, and communicationIPAF – integrated protected area fundISO – International Standards OrganizationIUCN – International Union for Conservation of NatureIWQMF – integrated water quality management frameworkIWRM – integrated water resources managementIWRMF – integrated water resources management

frameworkJBIC – Japan Bank for International CooperationJICA – Japan International Cooperation Agencykm2 – square kilometerLAMP II – Land Administration and Management Project,

Phase IILBP – Land Bank of the PhilippinesLDBR – Laguna de Bay RegionLGC – Local Government Code of the Philippines

(1991) (Republic Act 7160) LGU – local government unitLLDA – Laguna Lake Development Authority LUCF – land-use change and forestry M&E – monitoring and evaluation

Abbreviations ix

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x Country Environmental Analysis 2008: Philippines

MBI – market-based instrument MDFO – Municipal Development Fund OfficeMDG – Millennium Development Goal MFO – major final outputMGB – Mines and Geosciences Bureau MLD – million liters per dayMOA – memorandum of agreementMT – metric tonMTPDP – Medium-Term Philippine Development PlanMTPIP – Medium-Term Public Investment Program MTSP – Manila Third Sewerage ProjectMW – megawattMWSS – Metropolitan Waterworks and Sewerage SystemNAAQ – national ambient air qualityNAMRIA – National Mapping and Resource Information

AuthorityNBSAP – National Biodiversity Strategy and Action PlanNCIP – National Commission on Indigenous PeoplesNCR – National Capital RegionNEDA – National Economic and Development Authority NGO – nongovernment organizationNIPAS – National Integrated Protected Areas SystemNRDC – National Resources Development CorporationNSCB – National Statistical Coordination Board NSSMP – National Sewerage and Septage Management

ProgramNSWMC – National Solid Waste Management CommissionNSWMF – National Solid Waste Management FundNWQMF – National Water Quality Management FundNWRB – National Water Resources Board ODA – official development assistanceODS – ozone-depleting substances PAMB – Protected Area Management Board PAWB – Protected Areas and Wildlife BureauPBE – Philippine Business for the EnvironmentPCB – polychlorinated biphenylPD – presidential decreePEENRA – Philippine Economic-Environmental and

Natural Resources Accounting PEISS – Philippine Environmental Impact Statement

System

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PEMSEA – Partnerships in Environmental Management for the Seas of East Asia

PENRO – provincial environment and natural resources officer

PM10 – particulate matterRA – republic actRBCO – River Basin Control OfficeSBMA – Subic Bay Metropolitan AuthoritySFM – sustainable forest managementSWAPP – Solid Waste Management Association of the

PhilippinesTA – technical assistancetCO2e – tonnes of carbon dioxide equivalentTSP – total suspended particulatesUNCED – United Nations Conference on Environment and

Development UNDP – United Nations Development Programme UNEP – United Nations Environment ProgrammeUNFCCC – United Nations Framework Convention on

Climate ChangeUS – United StatesUSAID – United States Agency for International

Development WQMA – water quality management areaWWF – World Wide Fund for Nature

Abbreviations xi

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Acknowledgments

This report was prepared by M. Nasimul Islam, environmental engineer, Agriculture, Environment and Natural Resource Division, Southeast Asia Department (SERD), and Marissa V. David, staff

consultant, with the guidance of Urooj S. Malik, division director. It was edited by Mary Ann Asico, consultant.

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Executive Summary

This update of the Asian Development Bank’s (ADB’s) country envi-ronmental analysis for the Philippines identifies priority constraints, needs, and opportunities in the country’s environmental and natural

resources (ENR) sectors, including those that have a direct bearing on pov-erty partnership agreements, and discusses strategic areas of intervention that will reduce the constraints and heighten the opportunities.

Role of the Environment and Natural Resources in the Economy

The ENR sectors (agriculture, marine resources, and forestry) depend pri-marily on the country’s land, water, and soil resources and contribute sub-stantially to national gross domestic product (GDP). In 2006, these sectors generated 18.8% of GDP and employed about 36.6% of the total labor force of 32.4 million.

Sustainable growth in these sectors depends on a healthy environment and natural resources, including clean water supply for industry and urban uses, and good air quality for the rapidly growing number of urban residents.

Medium-Term Philippine Development Plan

The socioeconomic development plan for the Philippines is laid out in the Medium-Term Philippine Development Plan (MTPDP) 2004–2010. The broad aims are job creation through agribusiness development, sustainable management of the environment, natural resources, and biodiversity, and decongestion of Metro Manila.

Millennium Development Goals

The Millennium Development Goals (MDGs) provide the framework for meeting the social commitments under the MTPDP and for identifying pro-grams and projects for the Medium-Term Public Investment Program.

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xiv Country Environmental Analysis 2008: Philippines

Forest cover has increased, as have protected areas in the National Integrated Protected Areas System (NIPAS) and access to safe drinking water. But while there has been continuing progress in meeting environmen-tal sustainability goals, much remains to be done. The lives of slum dwellers also have to undergo significant improvement. The number of informal set-tler families is rising and is expected to rise further with rural–urban migra-tion, population growth, and new household formation, given the inadequacy of formal housing programs. Security of land tenure and urban renewal are major concerns of the Government.

Main Environmental Concerns

Environmental issues with cumulative impact include loss of watershed integrity, inappropriate and unsustainable land use and agricultural practices in upland areas, degradation of forestland, and extensive road building; rapid population increase and rapid industrialization, causing increased conges-tion and pollution particularly in urban areas; environmental degradation of near-shore coastal areas due to sedimentation from upstream sources; and overexploitation of fisheries and permanent loss of coastal ecosystems from changes in land use due to urbanization and industrialization, including aquaculture.

Various ENR assessments of the Philippines place responsibility for the loss of biodiversity (terrestrial, coastal and marine, and freshwater) on these factors and on ineffective management, lack of awareness of biodiversity, and poor enforcement of regulations. Philippine biodiversity is globally significant. More than 65% of the described species are found here and new endemic spe-cies are discovered yearly. In addition, the Philippines has been identified as a biodiversity “hotspot,” that is, an area where the Earth’s biological wealth is most distinctive and rich but where losses could also be severe if conservation efforts do not succeed.

The reforestation program of the Government cannot keep up with the rate of destruction of forest resources, with profound consequences for faunal biodiversity, aside from the downstream flooding and pollution caused.

Almost all Philippine coral reefs are at risk from human activities. More than 70% of mangrove forests have been converted to aquaculture, logged, or reclaimed for other uses. Half of the sea-grass beds have been lost or severely degraded, and the rate of degradation is increasing.

Rapid urbanization—the urban population grows by more than 2 million yearly, mostly in low-density peri-urban areas outside the capital region—is constricting the provision of adequate infrastructure and services to deal with water supply and water quality problems. Water quality is worsening.

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Executive Summary xv

Domestic pollution, from the discharge of inadequately treated domestic sewage into surface waters, is the leading cause. Water availability per capita is the second lowest among all Southeast Asian countries.

Sewerage and sanitation programs and investments are also woefully inadequate. Investments in urban sanitation are only 1.5% of investments in urban water supply.

Some improvements have been made in air quality. Lead concentration has dropped since the complete phaseout of lead in gasoline throughout the country. The closure of several coal- and oil-fired thermal generating stations in the Metro Manila air-shed has greatly reduced sulfur dioxide concentra-tions. Ozone-depleting substances are consumed much less. But air quality in urban areas is poor or worsening for pollutants such as nitrogen dioxide (NO2), sulfur dioxide (SO2), total suspended particulates (TSP), and particu-late matter (PM10). Overall, the Philippines lags behind other Asian countries in air-quality improvements.

The country’s contribution to global warming is a key concern. The combined greenhouse-gas (GHG) emissions from the energy, industry, agri-culture, and wastes sectors, and from the net uptake (sink) of GHGs from land-use change and forestry, were conservatively projected to increase by almost 94% between 1994 and 2008, to 195,091 kilotons of carbon dioxide (CO2) equivalent.

Regulatory and Institutional Framework

The Government’s commitment to environmental protection and natural resource management is expressed through a comprehensive legal and regu-latory regime for the sector. ENR management is mandated by the Philippine Environmental Policy and the Philippine Environment Code of 1977, the Philippine Strategy for Sustainable Development of 1989, and the National Action Plan for Sustainable Development of 1996. The Local Government Code of 1991 also has provisions with major impact on devolution and the implementation of ENR laws and regulations. Major ENR laws signed in the past 7 years include the Ecological Solid Waste Management Act of 2000, the Wildlife Resources Conservation and Protection Act of 2001, the Public Land Act of 2002, the Philippine Clean Water Act of 2004, and the Bio-fuels Act of 2006.

The priorities of the Department of Environment and Natural Resources (DENR) relate to major government planning frameworks including the MTPDP and the MDGs. Other government departments and agencies that support the DENR in the implementation of ENR-related laws, regulations, policies, plans, and programs are the Departments of Agriculture, Health,

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xvi Country Environmental Analysis 2008: Philippines

Agrarian Reform, Energy, Interior and Local Government, Science and Technology, Tourism, and Public Works and Highways, and the National Economic and Development Authority (NEDA).

Recognizing the importance of international cooperation in achieving its national development goals (MTPDP), the Philippines has signed inter-national and regional environmental agreements on biodiversity, hazardous chemicals and wastes, ozone-depleting substances, persistent organic pollut-ants, and climate change.

Challenges, Opportunities, and Strategic Priorities

The main factors that affect the implementation of the various ENR laws and regulations by the DENR, and the corresponding strategic priorities that are consistent with ADB’s and the Government’s medium- to long-term strate-gic framework, are as follows.

DENR Restructuring and Capacity Building to Fulfill a Broader Mandate. Many ENR laws have been passed in recent years, but the DENR structure has yet to adapt to the expanded mandate. Overlaps and gaps in mandates also still have to be resolved. While DENR has opted to decentralize, devolve its functions (in phases), and reduce its direct role in ENR program and proj-ect implementation, its rationalization plan has not yet been approved and implemented. Devolution, despite having begun more than 17 years ago, is incomplete. Extensive institutional assessment and rebuilding are priorities. Skilled personnel, equipment, and other facilities should be provided to the local government units to enable them to perform the devolved functions.

Promulgation of Other Important Legislation. Some very important ENR laws need to be promulgated, strengthened, or updated. The Public Lands Act, for one, is 70 years old and has not been revised or amended. Major pending bills that should be pursued include the Philippine Environmental Protection Authority, Bio-organic Farming Promotion, Philippine Climate Change, Renewable Energy, Land Administration Reform, Water Resources Management, Sustainable Forest Management, and Free Patent acts.

Improvement of ENR Data and Information Management. With external support, DENR should integrate and upgrade its information system to be able to collect, analyze, coordinate, and manage data, make sound decisions based on the data, and deliver its mandates more efficiently and effectively.

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Executive Summary xvii

Restructuring and Refocusing of the Environmental Assessment System. The current environmental impact statement system is in need of restructur-ing and improvement, for use in planning. Various studies have recommended decentralizing environmental impact assessment, improving the quality of the assessment and simplifying the requirements, concentrating on environ-mentally critical projects and areas, moving toward sector and regional assess-ment, improving monitoring and enforcement, building institutional capacity (national and local), and subjecting proposed new laws and regulations in this regard to cost-benefit and impact study.

Institutional Mechanisms for Integrated Ecosystem-Based Planning and Management. To achieve environmentally sustainable development, the Philippines needs to shift from sector-based to integrated ecosystem-based planning and management and develop an integrated sustainable manage-ment plan for priority ecosystems. The DENR could identify geographic priorities for investments and interventions in such areas as forest and biodi-versity conservation, protection of water resources in river basins, and protec-tion of environmental quality in air-sheds, as well as priority activities that will help in the attainment of key MDG and MTPDP targets in an inte-grated manner.

Forest Management and Biodiversity Conservation. Increases in forest cover are strongly correlated with greater public awareness of the value of forests. Comprehensive and specific strategies and action plans to be imple-mented by the DENR are outlined in the National Biodiversity Strategy and Action Plan of 2002 (NBSAP). DENR is expected to need substantial assis-tance (technical and financial) to meet the NBSAP objectives and targets.

Adoption and Application of Spatial Development Plans. To improve the use, allocation, and management of the country’s land and physical resources, spatial development plans linked to the national and regional physical frame-work plan will have to be prepared and implemented in all the local govern-ment units to guide ENR development decisions.

Integration of Climate Change into Government Programs. The coun-try ranks eighth globally in the number of Clean Development Mechanism (CDM) projects registered, yet efforts to adapt to and mitigate climate change have yet to become part of major government policies, programs, and projects.

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xviii Country Environmental Analysis 2008: Philippines

ENR Funding. A number of ENR laws—among them, the Clean Air Act of 1999, the Ecological Solid Waste Management Act of 2000, and the Clean Water Act of 2004—have been approved in the past 10 years, but appropriate funds for their implementation have not yet been secured. Until its regular budget is substantially increased, the DENR should lay out a workable structure, with complete guidelines and procedures, for making the various earmarked environmental funds of the Government (such as the Air Quality Management, National Solid Waste Management, National Water Quality Management, Integrated Protected Area, and Wildlife Management funds) operational. The Government should also promote private sector interest in ENR projects, besides pursuing other sustainable sources of funding.

Use of Market-Based Instruments to Promote ENR Programs and Projects. The formulation and implementation of policies for MBIs has been hindered by regulators’ perception of a concomitant loss of control or greater unpredictability of environmental outcomes, legislative restrictions, insufficient evidence of effectiveness of past MBI use, and lack of information for MBI portfolio management. But there have been successes, especially in waste minimization, deposit refund and environmental guarantee fund estab-lishment, environmental management systems, and the application of envi-ronmental user fees. Future project interventions should maximize the use of MBIs for environmental sustainability and cost-effective economic growth.

Integration of ENR Issues into Poverty Reduction Programs. Environmental problems hit the poor hardest and are a major cause of pov-erty and vulnerability. Better environmental management can enhance the livelihood opportunities and income security of people living in poverty. A better understanding of environment-poverty links can lead to informed and effective local, national, and global policies for fighting both poverty and environmental problems.

Possible ADB Interventions

ADB interventions in the Philippines will intersect with its Strategy 2020 and address the ENR priorities expressed in national development plans and programs.

Incorporating Environmental Considerations into Development. Together, ADB and the Government should draft policies and procedures that will fully integrate environmental considerations into the Government’s development policies, programs, and projects. The Government should receive continued support in harmonizing its ENR and climate change laws

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Executive Summary xix

and policies, resolving institutional conflicts and gaps, strengthening institu-tional capacity, and removing constraints on ENR planning, implementation, and enforcement.

Environment as a Core Area of Operation. ADB intends to promote and invest in sustainable environmental management on a larger scale, while capi-talizing on its operational strengths, such as infrastructure development and finance, through programs and projects in these areas:

Infrastructure and climate change. To increase the supply of clean water, protect biological diversity, and help sequester atmospheric carbon dioxide to offset GHG emissions, ADB will nudge the Philippine economy onto low-carbon growth paths, “climate-proof ” projects, and support the sustainable management of forest and natural resources. Assistance will be provided to help prevent the loss of forest cover, institute integrated river basin management, and develop irrigation, agriculture, agribusiness, and rural infrastructure, with emphasis on security of land tenure and the progress of upland and poor communities. Projects must not adversely affect forest capital and biodiversity resources. They will incorporate economic instruments (payments for environmental services, CDM, etc.) that take into account biological diversity and climate change concerns (through global funds like the Global Environment Facility and regional initiatives like the Coral Triangle Initiative) and environ-ment-poverty links. ADB will assist the Government in implement-ing its water resource and water quality management framework. Investments in water supply and sanitation infrastructure will fully support the Clean Water Act and the MDGs.Livable cities. ADB will help reduce the country’s carbon footprint and assist municipalities in reducing air and water pollution, intro-ducing cleaner modes of transport, improving solid waste manage-ment, and reducing urban waste. Lessons learned from investments in major cities will be applied in secondary cities. These interven-tions will support ADB’s Strategy 2020 and help create a healthier environment for the people (an MTPDP objective) and ensure environmental sustainability (an MDG). Complementary actions. With ADB’s help, environmental con-cerns will be built into Philippine policies and investment programs, and national and local ENR institutions will acquire stronger regu-latory and enforcement capacity. The effective implementation of environmental safeguards will continue to be emphasized, and sup-port for regional cooperation in ENR management will be sustained.

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xx Country Environmental Analysis 2008: Philippines

Interventions will incorporate economic instruments and policies (e.g., waste minimization, pollution prevention, environmental management, MBIs, public disclosure systems) and environ-ment-poverty links into development. Spatial planning, environ-mental and natural resource data and information management, and environmental capacity building will all receive ADB technical assistance and project support.

With a country partnership strategy for the Philippines (2011–2015) and an updated MTPDP on hand in 2011, ADB and the Government will continue to work together to develop other projects and technical assistance that respond to the environmental concerns, challenges, opportunities, and priorities identified in this analysis.

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Chapter 1 Introduction

This document updates the country environmental analysis prepared by the Asian Development Bank (ADB) for the Philippines in 2004. An update is called for in view of ADB’s intention to return to a

5-year planning cycle for its country partnership strategy (CPS). The country strategy and program (CSP) 2005–2007 covered only 3 years because of the economic uncertainties foreseen in 2005 when it was prepared (ADB 2007d). A country operations business plan (COBP) for 2007–2008, which extended the CSP by 1 year, was agreed on between ADB and the Government. COBP 2009–2010 will ease the transition to the CPS 2011–2015. The CPS will be in line with the next Medium-Term Philippine Development Plan (MTPDP).

This 2008 report provides the information needed for informed deci-sions on environmental constraints, needs, and opportunities, including those that impinge on poverty partnership agreements. The focus is on adding value to development initiatives by reducing the constraints and exploring the opportunities. Current environment and natural resources (ENR) issues in the Philippines are discussed, as are the institutional, policy, and regulatory framework for the ENR sectors; the challenges and opportunities for improv-ing the country’s environmental situation that the framework provides; the strategic priorities; and possible ADB assistance in implementing these strategic priorities.

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Chapter 2 Background

Country Overview

The Philippines has over 7,000 islands, about 300,000 square kilo-meters (km2) in total area. With 2.2 million km2 of contiguous ter-ritorial waters and exclusive economic zone (almost 90% of the total

area), the Philippines is a leading archipelagic country in Southeast Asia.Geography, terrain, and climate determine human settlement patterns,

socioeconomic opportunities and constraints, and their intricate relationship with ENR conditions. The climate is tropical marine and monsoonal, with a dry season from January to June and a wet season from July to December. Annual rainfall varies widely across the country in amount (1,000–4,000 mil-limeters) and distribution (from pronounced dry and wet seasons to more or less even rainfall).

There are 421 river basins, 41–25,469 km2 in area. The rivers in these basins are short and steep, running very fast from the source to narrow coastal plains. Heavy rainfall in the wet season causes many of these rivers to overflow.

The Philippines is vulnerable to natural disasters, primarily volcanic eruptions and typhoons. Twenty-two volcanoes are active, and there have been several destructive eruptions in recent times. In addition, about 20–30 typhoons hit the country yearly, between June and November. These natural disasters damage crops and properties; they also take lives.

The Philippines is the world’s 12th-most-populous country (World Bank 2007c), with 88.6 million people (NSO 2008), and the 39th-largest economy (see Table 1), with a gross domestic product (GDP) of over $145 billion (2007) (World Bank 2007b). By 2010, the population is expected to be 94.0 million, and by 2040, 141.6 million. The population grew by an average of 2.3% from 1990 to 2000 (see Table 2), the fastest rate in East Asia, before decelerating to 2.0% in 2007 and a projected 0.92% by 2040 (NSCB web-site). Population increase has severely strained access to basic social services, energy, drinking water, sanitation, and education, and considerably affected economic growth.

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4 Country Environmental Analysis 2008: Philippines

Tab

le 1

: C

ount

ry E

cono

mic

Ind

icat

ors

Item

1998

1999

2000

2001

2002

2007

Inco

me

and

Gro

wth

GD

P p

er c

apita

($, c

urre

nt)

867.

099

1.9

954.

891

6.7

969.

31,

626.

0

GD

P g

row

th (%

, in

cons

tant

pri

ces)

Agr

icul

ture

Indu

stry

Serv

ices

(0.6

)(6

.4)

(2.1

)3.

5

3.4

6.5

0.9

4.0

4.4

3.4

4.9

4.4

3.0

3.7

0.9

4.3

4.4

3.3

3.7

5.4

7.2

5.1

6.6

8.7

Savi

ng a

nd I

nves

tmen

t (cu

rren

t and

mar

ket p

rice

s)

(% o

f GN

P)

Gro

ss d

omes

tic in

vest

men

t19

.317

.819

.919

.418

.115

.3

Gro

ss d

omes

tic s

avin

gs21

.626

.127

.221

.123

.120

.9

Mon

ey a

nd I

nflat

ion

(ann

ual %

cha

nge)

Con

sum

er p

rice

inde

x9.

76.

74.

46.

13.

12.

8

Tot

al li

quid

ity

(M3)

7.4

19.3

4.6

6.8

9.5

9.0

Gov

ernm

ent F

inan

ce (%

of G

DP

)

Rev

enue

and

gra

nts

17.4

16.1

15.6

15.3

14.1

17.1

Exp

endi

ture

and

onl

endi

ng19

.219

.819

.619

.319

.317

.1

Ove

rall

fisca

l sur

plus

(defi

cit)

(1.9

)(3

.8)

(4.1

)(4

.0)

(5.2

)(0

.2)

Bal

ance

of P

aym

ents

Mer

chan

dise

trad

e ba

lanc

e (%

of G

DP

)0.

06.

55.

1(1

.0)

(0.5

)(5

.7)

cont

inue

d

Page 26: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

Chapter 2: Background 5It

em19

9819

9920

0020

0120

0220

07

Cur

rent

acc

ount

bal

ance

(% o

f GD

P)

2.4

9.5

8.4

1.8

5.4

4.0

Mer

chan

dise

exp

ort (

$) g

row

th

(ann

ual %

cha

nge)

16.9

16.0

9.0

(16.

2)10

.129

.7(2

006)

Mer

chan

dise

impo

rt ($

) gro

wth

(a

nnua

l % c

hang

e)(1

8.8)

(0.9

)14

.5(4

.5)

6.2

18.2

(200

6)

Ext

erna

l Pay

men

ts

Gro

ss o

ffici

al re

serv

es

(incl

udin

g go

ld, $

mill

ion)

Mon

ths

of c

urre

nt y

ear’s

impo

rts

of g

oods

and

se

rvic

es

10,8

06 3.1

15,1

07 4.4

15,0

24 4.2

15,6

58 4.6

16,1

79 4.7

33,7

51 6.9

Ext

erna

l deb

t ser

vice

(% o

f exp

orts

of g

oods

and

se

rvic

es)

73.4

68.6

69.5

72.7

69.1

41.8

1

Tot

al e

xter

nal d

ebt (

% o

f GD

P)

14.0

14.1

14.3

21.2

21.1

17.2

Mem

oran

dum

Ite

ms

GD

P (c

urre

nt p

rice

s, ₱ b

illio

n)2,

665.

12,

976.

93,

308.

33,

673.

74,

022.

76,

648.

2

Exc

hang

e ra

te (₱

/$, a

vera

ge)

40.9

39.1

44.2

51.0

51.6

46.1

5

Popu

latio

n (m

illio

n)75

.276

.878

.478

.680

.488

.71

GD

P =

gro

ss d

omes

tic p

rodu

ct, G

NP

= g

ross

nat

iona

l pro

duct

, M3

= m

oney

sup

ply.

Sour

ces:

Nat

iona

l Eco

nom

ic a

nd D

evel

opm

ent

Aut

hori

ty (

NE

DA

), 20

06 S

ocio

econ

omic

Rep

ort;

Nat

iona

l Sta

tistic

al C

oord

inat

ion

Boa

rd (

NSC

B),

Eco

nom

ic an

d F

inan

cial D

ata

on t

he P

hilip

pine

s (w

ww

.nsc

b.go

v.ph

); B

angk

o Se

ntra

l ng

Pili

pina

s, K

ey S

tati

stic

al I

ndic

ator

s (w

ww

.bsp

.gov

.ph)

; Bur

eau

of t

he T

reas

ury

(ww

w.tr

easu

ry.g

ov.p

h), H

uman

Dev

elop

men

t Rep

orts

(ww

w.h

drst

ats.

undp

.org

).

Tab

le 1

cont

inue

d

Page 27: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

6 Country Environmental Analysis 2008: Philippines

Table 2: Country Poverty and Social Indicators

Item 1990 1995 2000 Latest Year

Population Indicators

Total population (millions)

60.7 68.6 76.5 88.7 (2007)

Annual population growth rate (% change)

2.4 2.3 2.4 2.0(2007)

Social Indicators

Total fertility rate (births per woman)

4.1 3.8 3.2 (2002)

3.2 (2006)

Maternal mortality rate (per 100,000 live births)

209 180 172(1998)

162 (2006)

Infant mortality rate (below 1 year, per 1,000 live births)

57 49 35(1998)

24(2006)

Life expectancy at birth (years)

Female

Male

68.8

63.6

70.1

64.8

72.5(2003)

67.2 (2003)

73.6 (2006)

69.2 (2006)

Adult literacy (%)Female

Male

91.2

92.2

93.8

93.2

94.8

95.1

93.7 (2006)

93.1 (2006)

Primary school gross enrollment (%)

111.8 (1992–1993)

114.0 (1995–1996)

113.4 (2000–2001)

107.4 (2004)

Secondary school gross enrollment (%)

76.0 (1992–1993)

77.1 (1995–1996)

79.5 (2000–2001)

79.5 (2001)

Child malnutrition (below age 5, %)

34.5 30.8 (1996)

30.6 (2001)

24.6 (2006)

Population below poverty line (international, %)

— — 14.6 (2001)

continued

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Chapter 2: Background 7

Table 2 continued

Item 1990 1995 2000 Latest Year

Families with access to safe water (%)

73.7 (1991)

76.9 (1997)

78.5 (2000)

82.0(2004)

Population with access to sanitation (%)

74.0 — 83.0 (2000)

80.0(2004)

Public education expenditure (% of GDP)

2.9 3.3 2.7 (2002)

Human Development Index

Rank0.713

680.731

670.751

85(2001)

0.77190

(2005)

Gender-Related Development Index

Rank——

0.66182

0.748(2001)

66

Poverty Indicators

Poverty incidence 39.9 (1991)

28.1 (1997)

28.4 32.9(2006)

Percent of poor to total population

45.3 (1991)

33.0 (1997)

34.0 33.0(2006)

Poverty gap 13.0 (1991)

10.0 (1997)

10.7

Poverty Severity Index (%)

— 3.5 (1997)

3.4 3.4(2003)

Inequality (Gini coefficient)

0.4680 (1991)

0.4881 (1997)

0.4814 0.4410 (2006)

Human Poverty Index

Rank

17.7

19

14.8(2001)

28

— = no data, GDP = gross domestic product.Source: National Statistics Office, NSCB, Human Development Reports (http://hdrstats.undp .org); US Energy Information Administration, Philippine Country Analysis Brief (www.eia.doe.gov); Asian Development Bank (adb.org), Key Indicators for Asia and Pacific, 2008.

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8 Country Environmental Analysis 2008: Philippines

In 2006, the Philippines ranked 90th of 177 countries on the Human Development Index (UNDP 2007); in 2005, it ranked 84th. In 2006, 32.9% of the total population lived below the annual poverty threshold of $294, about 3% more than in 2003. Poverty is about 25% in the urban areas but is most acute and widespread in the rural areas, averaging about 54%. 1

Role of the environment and natural resources in the economy

Socioeconomic overview

Rural sector The primary sector (agriculture, fisheries, and forestry) depends on the environment and natural resources (land, water, and soils) and contributes substantially to national GDP. In 2006, the sector generated $12.9 billion (at constant 1985 prices), 18.8% of GDP ($68.6 billion at constant 1985 prices) (NSCB 2007). Although the sector grew 24.6% faster between 2000 and 2006, it contributed 1.0% less to GDP than its share of 19.8% in 2000 because of larger increases in GDP contribution from other major sectors (industry, including mining, and services).

Philippine agriculture grew by 4.1% in 2006, slightly below the 4.2% MTPDP target. Agribusiness lands were not developed fast enough to meet MTPDP targets. Jobs in the sector decreased slightly (by less than 1%). Moreover, retail prices continued to soar even with increased production because of infrastructure and marketing constraints.

In 2006, agriculture, fisheries, and forestry combined produced $12.9 bil-lion (in gross value added [GVA], at constant 1985 prices (NSCB 2007). Agricultural crops contributed 49.9%, livestock and poultry 22.3%, agricul-tural activities and services 4.4%, fisheries 22.9%, and forestry 0.6%. By the end of 2006, agriculture, hunting, forestry, and fishing activities employed about 12 million, roughly 36.6% of the total labor force of 32.4 million.

Municipal fisheries generated 68% of the total employment in fisheries, followed by aquaculture (26%) and commercial fisheries (6%). In 2006, fish-eries contributed 4.3% (at constant 1985 prices) of GDP. That same year, the GVA of fisheries was $2,946 million (at constant 1985 prices), 22.9% of the overall GVA of agriculture and the largest share next to that of agricultural crops (BFAR 2006).

The Department of Agriculture (DA) places aquaculture among Philippine agriculture’s main drivers, with a 10.4% growth rate in 2006. That year, aquaculture accounted for 47.5% of the total fishery production of 4.41 million metric tons (NSCB 2007), compared with 45.5% of 4.2 million

1 National Statistical Coordination Board (NSCB) website, www.nscb.gov.ph.

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Chapter 2: Background 9

metric tons in 2005 (BFAR 2006). Income from aquaculture in 2006 was $3 billion (at constant 1985 prices). Aquaculture farms are found mostly on the islands of Mindanao and Luzon, and have their highest production share in region 4B2 in Luzon and the Autonomous Region in Muslim Mindanao (ARMM) in Mindanao. Table 3 shows the value of fish production in the commercial, marine, inland, and aquaculture subsectors.

About 44,000 families derive their incomes mainly from forestry and hunting. About 23% of these families are in the $545–$726 income class, and only 7% have incomes of $1,453–$1,816 (NSO 2005). Forest product exports in 2005 amounted to $33 million, free on board (FOB), about 3% less than in 2004. This is about 1.4% of the value of Philippine exports in 2005, which was $41.3 billion, FOB.

Between 1988 and 1994, the Philippines lost $2.6 billion (at constant 1985 prices) in forest resources to harvesting and other logging activities, $1.1 billion to the conversion of forestland to non-forest uses, $23.6 million to forest fires, and $317 billion to the natural death of trees (NSCB n.d.[b]).

Poverty is most intense among those working in agriculture. Agriculture-dependent households account for two thirds of the rural poor. The sector continues to suffer from inadequate research in high-value prod-ucts, poor market information, and weak institutions. Poor rural infrastructure raises production and transportation costs and discourages the private sector from participating in agribusiness ventures.

ENR degradation heightens rural poverty, inequality, loss of livelihood, and the unsustainability of economic ventures. It severely affects the rural population that depends on upland agriculture and subsistence fishing along coastal areas. On the other hand, high population growth, lack of secure access to land and to capital and social services, poor governance, unemployment,

2 Region 4B is composed of the islands of Occidental Mindoro, Oriental Mindoro, Marinduque, Romblon, and Palawan, and is also called the MIMAROPA region.

Table 3: Value of Fish Production, by Subsector, 2003–2005

Subsector

2003 2004 2005

($ million, at current prices)

Total 2,216.0 2,478.2 2,651.1

Commercial 776.5 863.0 856.1

Municipal 751.8 815.2 904.6

Marine 685.6 734.8 820.7

Inland 66.2 80.5 83.9

Aquaculture 687.7 800.0 890.4

Source: NSCB, 2006 Selected Statistics on Agriculture.

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10 Country Environmental Analysis 2008: Philippines

inequity, and slow economic growth all contribute to high rural poverty and concomitant degradation of the environment.

Urban and Industrial Sectors The relationship between ENR and the urban and industrial sectors is an often-overlooked but important one that affects ENR use and management. The Philippines is urbanizing at 5% or more yearly, and the industrial sector (mining, manufacturing, trade, construction, and energy generation) collec-tively grew by an average of 3.6% (at constant 1985 prices) between 1992 and 2006. Industrial sector GDP during the same period grew by 67.7%, from $13.3 billion to $22.3 billion (at constant 1985 prices). The urban and industrial sectors are important components of socioeconomic development, but their environmental impact can also be considerable.

Most urban growth in the Philippines is occurring in low-density peri-urban areas (particularly outside the capital city of Metro Manila, in Cavite and Laguna provinces, and in major secondary cities). The three dominant urban centers—Metro Manila, Metro Cebu, and Davao—each have a popula-tion of more than 1 million. Urban areas are the centers of economic growth.

Sustainable growth in the urban and industrial sectors rests on a healthy ENR, including clean water and better air quality for industry and for the growing number of urban residents.

Energy and Transport Sector The energy and transport sector has significant impact on the ENR, mostly from air pollution. According to the Environmental Management Bureau (EMB) of the Department of Environment and Natural Resources (DENR), much air pollution comes from mobile sources. Between 2000 and 2005, records from the Land Transportation Office (LTO) showed that motor vehi-cle registration increased by 6.5% on average yearly. This continuing increase, plus the inadequacy of the mass transit system and poor maintenance of roads and traffic facilities, increases air pollution. According to an ADB study (ADB 2002a), until the Clean Air Act (CAA) and its implementing rules and regulations were passed in 1999, setting emission standards for different classes of vehicles, the control of pollution from mobile sources received low priority in environmental regulation. All new vehicles must now comply with these standards for registration. Air pollution monitoring results in Metro Manila and other major cities have improved as a result.

Medium-Term Philippine Development Plan

MTPDP 2004–2010 integrates the planning and policy approaches of the Government with the basic objective of building prosperity for the greatest number of Filipinos. With the President’s 10-Point Agenda, the MTPDP

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Chapter 2: Background 11

seeks to create 6–10 million jobs by developing 1–2 million hectares (ha) of land for agribusiness; improve ENR and biodiversity through sustainable management; and decentralize and decongest Metro Manila.

Five major objectives, consistent with the 10-Point Agenda of the President, were identified for the ENR sector: sustainable and more produc-tive use of natural resources, responsible mining, protection of vulnerable and ecologically fragile areas, a healthier environment, and disaster mitigation. The goals, strategies, action plans, and targets for attaining the ENR objec-tives in potable water supply, mining, hazardous waste disposal, and disaster mitigation are in Boxes 1–4.

The Medium-Term Public Investment Program (MTPIP) 2006–2010 translates the MTPDP into a rolling core set of priority programs and projects to be implemented by the national Government in the medium term. The MTPIP is an instrument for monitoring government targets, commitments, and resources over the plan period, and a critical input to the annual budget. It also sets the tone for resource programming by the Government’s Investment Coordination Committee.

MTPIP 2006–2010 investments total about $156.6 billion (at constant 1985 prices), $10.3 billion (6.5%) of this for ENR plans and programs to help attain the five objectives mentioned above. The national Government will provide $5.1 billion (49.9%), government–owned and controlled corporations and government financial institutions $2.1 billion (20%), local government units (LGUs) $1.7 million (0.1%), the private sector $1.2 billion (12%), and international agencies (through loans and grants) and other sources, $1.9 bil-lion (18%).

Millennium Development Goals

The Millennium Development Goals (MDGs) set the framework for the MTPDP’s social commitments and the MTPIP’s programs and projects. According to its midterm progress report in 2007, the Philippines has made considerable headway in achieving the MDGs, particularly the targets for poverty reduction, nutrition, gender equality, child mortality reduction, the fight against HIV/AIDS and malaria as well as other diseases, and access to safe drinking water and sanitary toilet facilities (NEDA 2007b). Poverty incidence among households and the population had declined by about 1.2% each year from 1991 (the baseline year) to 2006 (see Table 2). In 2006, pov-erty incidence was 26.9% among households (versus 39.9% in 1991) and 32.9% for the general population (45.3% in 1991). At these rates of decline, the 2015 MDG targets for poverty incidence are likely to be met. But pov-erty incidence has regional variations. Household poverty incidence is below the national average of 26.9% (2006) in five regions—the National Capital Region (NCR) and regions 1, 2, 3, and 4A—but above the national average

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12 Country Environmental Analysis 2008: Philippines

in the other 12 regions, with Caraga (region 13) at 45.5%, ARMM at 55.3%, and region 4B at 43.7% (Social Watch Philippines 2007).

Subsistence incidence rates also vary widely between regions. In 2006, the rates exceeded the national average of 14.6% in 12 of the 17 regions. Only four regions—the NCR (1.2%), region 2 (8.9%), region 3 (4.6%), and region 4A (5.7%)—had single-digit rates (Social Watch Philippines 2007). More attention and better development assistance must be given to regions where poverty incidence exceeds the national average.

MDG7 (environmental sustainability) has three major targets: imple-menting national strategies for sustainable development by 2005, and reversing the loss of environmental resources by 2015; halving by 2015 the proportion of people with no access to safe drinking water and basic sanita-tion or those who cannot afford it; and significantly improving the lives of at least 100 million slum dwellers by 2020. (Table 4 is a summary of the MDG7 indicators for the country.)

For the sustainable development target, the 2007 MDG progress report showed an increase of about 11% in forest cover between 1998 (6.5 million ha) and 2004 (7.2 million ha). Protected areas under the National Integrated Protected Areas System (NIPAS) increased in number from 83 in 2000 to 103 in 2006. There was also a significant increase in confiscated flora (from 58 pieces in 2002 to 600 in 2005) and confiscated fauna (from 175 heads in 2002 to 2,944 in 2004).

But pollution persists in the major urban centers. The volume of air pollutants is projected to increase further as industrial activity increases and vehicles, many of them smoke-belching public-utility vehicles, clog the streets. Solid waste management will also continue to be a problem in most urban centers.

Access to safe drinking water increased slightly, from 80% in 2002 to 80.2% in 2004 (NSO 2006). The proportion was lower for those in the low-est 30% income group (65.4%) than for families in the highest 70% income group (86.5%). According to the Annual Poverty Indicators Survey (APIS) in 2004, the MDG target of 83.8% for access to sanitary toilet facilities had been achieved.3 These figures may, however, need to be validated.

For slum dwellers, the Government has adopted the dual strategy of securing tenure for settlers through the Community Mortgage Program and setting up the Social Housing Finance Corporation for the bottom 30% of the population. It has also formed partnerships with private organizations to ease the plight of informal settlers. From 2001 to 2006, the national Government and the private sector provided security of tenure or shelter to

3 The MTPDP 2004–2010 targets (92%–96% for safe drinking water and 86%–91% for sanitary toilet facilities) are higher than the 2015 MDG targets.

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Chapter 2: Background 13T

able

4:

Phi

lippi

nes

Mill

enni

um D

evel

opm

ent

Goa

l Ind

icat

ors

Goa

l 7:

Ens

ure

Env

iron

men

tal S

usta

inab

ility

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

Tar

get 1

0: I

mpl

emen

t nat

iona

l str

ateg

ies f

or su

stai

nabl

e de

velo

pmen

t by

2005

, to

reve

rse

loss

of e

nvir

onm

enta

l res

ourc

es b

y 20

15

Prop

ortio

n of

la

nd a

rea

cove

red

by fo

rest

(%)

20.5

20.1

19.7

19.3

19.0

18.6

18.3

18.0

——

——

23.9

23.9

52.8

—52

.6

Prop

ortio

n of

ar

ea p

rote

cted

to

mai

ntai

n bi

olog

ical

di

vers

ity

to la

nd

area

(%)

8.5

8.5

8.5

8.5

9.2

9.3

9.6

9.6

10.8

11.7

12.1

11.2

10.4

12.2

12.1

12.7

12.7

Con

sum

ptio

n of

oz

one-

depl

etin

g su

bsta

nces

(O

DP

tons

)

2,98

12,

023

3,52

03,

779

3,95

93,

382

3,03

92,

747

2,13

02,

088

2,90

52,

049

1,64

41,

422

1,51

61,

050

681

Prop

ortio

n of

ho

useh

olds

usi

ng

solid

fuel

s

(for

coo

king

) (%

)

66.2

——

——

——

——

—42

.1—

—42

.1—

——

cont

inue

d

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14 Country Environmental Analysis 2008: Philippines

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

Tar

get 1

1: H

alve

the

prop

orti

on o

f peo

ple

wit

h no

acc

ess t

o sa

fe d

rink

ing

wat

er a

nd b

asic

sani

tati

on o

r tho

se w

ho c

anno

t aff

ord

it

by

2015

Prop

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Chapter 2: Background 15

more than 710,000 households. Foreign-assisted projects that are improv-ing the plight of slum dwellers include the $52.4 million Development of Poor Urban Communities Sector Project with ADB funding; the $1.89 mil-lion World Bank and Japan Social Development Fund–assisted Upscaling Urban Poor Community Renewal Scheme Project being implemented by a nongovernment organization (NGO) in the cities of San Fernando, Naga, Quezon, Mandaue, and Iligan; and the Strategic Private Sector Partnerships for Urban Poverty Reduction Program, in which ADB is collaborating with the Philippine Business for Social Progress (NEDA 2007b).

Much remains to be done to meet environmental sustainability goals. According to the MDG progress report, to meet the 2015 target for MDG7 the Philippines has to update environmental data; support environmental laws; prevent or mitigate disasters and minimize the damage they cause; con-tinue addressing poverty and population problems; build the environmental management capacity of LGUs and other key partners; integrate sustainable development into the programs and performance assessment of government departments, and the operations of LGUs and business entities; set national targets for environmental sustainability; monitor groundwater; provide safe, low-cost drinking water; conserve water; build low-cost sanitation facilities; intensify efforts to meet the housing needs of informal settlers; expand the urban asset reform program; promote sustainable sources of housing finance; expand private participation in socialized housing finance and construction; rationalize coordination for housing and urban development; and strengthen housing regulation.

Main Environmental Concerns

Forest Resources

The country’s total land area of about 30 million ha is made up of classified forestland (15 million ha), unclassified forestland (0.7 million ha), and alien-able and disposable land (14.2 million ha) (FMB 2006). Classified forestland, exclusively for forestland use, comprises 10.1 million ha (67%) of established timberland and 3.2 million ha (21.4%) of established forest reserves, as well as national parks, game refuges and bird sanctuaries, and wilderness areas (1.3 million ha), military and naval reservations (0.13 million ha), civil res-ervations (0.17 million ha), and fishponds (0.1 million ha). Unclassified forestland is for still-unspecified forest use. Alienable and disposable land is suitable for agricultural, residential, commercial, industrial, institutional, recreational and other non-forest uses. Figure 1 shows the various types of land in the Philippines and their share of the total land area.

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16 Country Environmental Analysis 2008: Philippines

Forest cover (Figure 2) declined from about 21 million ha, or 70% of the total land area, in 1900 to only 5.4 million ha, or 18.3%, by 1988. But recent official estimates, based on satellite images of the country in 2002, show that forest cover had increased to 7.2 million ha, or 24% of the land area—2.5 million ha of closed-canopy forest, 4.0 million ha of open-canopy forest, 247,362 ha of mangroves, and 329,578 ha of plantations. The Forest Management Bureau (FMB) says that 91% of this forest cover area has been validated.

The Food and Agriculture Organization of the United Nations (FAO) published a similar estimate of forest cover area based on a global assessment in 2005 and using the following categories: primary (0.8 million ha), modified

Figure 1: Land Classification, 2005 (total area: 30 million hectares)

A&D = alienable and disposable land; NP/GRBS/WA = national parks, game refuges and bird sanctuaries, and wilderness areas.Source: Philippine Forestry Statistics, 2005.

Unclassified2.51% Established Forest

Reserves10.74%

NP/GRBS/WA4.48%

Fishponds0.30%

Certified A&D47.36%

Military and NavalReservations

0.42%

EstablishedTimberland

33.64%

Civil Reservations0.55%

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Chapter 2: Background 17

natural (5.7 million ha), productive plantation (0.3 million ha), and protective plantation (0.3 million ha).4

In 2005, the Government reported that 16,498 ha had been reforested, 7,187 ha (43.5%) of this total by the Government and 9,311 ha (56.5%) by the private sector, through community-based forest management programs and socialized industrial forest management agreements, among others (NSCB 2007).5 The reforestation achieved in 2005, however, was lower by 20% than the 20,338 ha reforested in 2004. Whether these values have been validated is unknown.

4 FAO. Forestry Country Profiles. Available: www.fao.org/forestry/32185/en/phl/.5 The natural ability of forests to regenerate was also a factor, according to FMB.

Figure 2: Forest Cover, 2003 (hectares)

Note: Incomplete plantation data.Source: Philippine Forestry Statistics, 2005.

Closed35.72%

2,560,872

Open56.23%

4,030,588Plantation

5%329,578

Mangrove3.45%

247,362

Forest Cover in Forestland

Open55%

3,515,645

Mangrove2%

153,577

Closed39%

2,480,644

Plantation4%

281,764

Open70%

514,943

Mangrove13%

93,785

Closed11%

80,228

Plantation6%

47,814

Forest Cover in Alienable and Disposable Land

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18 Country Environmental Analysis 2008: Philippines

In 2005, DENR approved 1,781 community-based forest management projects on about 1.6 million ha by specific tenure instrument. Holders of tenure instruments reforested 6,678 ha, or 71.7% of the reforested area. By December 2005, the number of industrial forest management agreements and industrial tree plantation lease agreements had decreased to 178, with a combined coverage area of 713,749 ha. In contrast, tree farm and agro-forestry farm leases had increased to 222, over an area of 107,194 ha. The harvested logs are mostly exported.

The decline in forest cover over the past three decades is quite alarming (Table 5). The Philippines ranks 11th among 89 tropical countries where per capita forest area is lowest. Compared with the global average of 0.62 ha per capita, the Philippines has 0.085 ha (FAO 2005). Most of the watersheds are degraded. Land conversion is a major cause of deforestation; other causes are slash-and-burn farming (kaingin), illegal logging, forest fires, pest infestations, and typhoons. According to DENR, the worst forest disruption (121,326 ha) took place in 1983, when fire did away with 117,951 ha, kaingin 2,241 ha, illegal cutting 1,015 ha, and infestation, typhoons, and other causes 119 ha.

Agriculture Resources

The performance of agriculture and fisheries is severely constrained by low productivity, underused lands, environmentally unsustainable use of land and marine resources, lax enforcement of laws, insufficient credit, inefficient mar-keting, and limited sector diversification. Poverty is deepening as a result.

Section 26, Declaration of Policy, of the Agriculture and Fisheries Modernization Act (AFMA) (1997) states that, in keeping with its policy of rational and equitable resource use, the State “shall prevent further destruction of watersheds, rehabilitate…irrigation systems and promote the development of irrigation systems that are effective, affordable, appropriate and efficient.” Yet little effort has been exerted to protect and rehabilitate critical watersheds and aquifers (Center for Research and Communication Foundation, Inc. 2007).

The conversion of agricultural land to other uses has also had a consider-able effect on agriculture resources. Between 1988 and 2000, 34,207 ha of alienable and disposable land, or 2,631 ha per year on average, was converted from agriculture to other uses.

Fishery Resources

The Philippines ranked 11th among the top fish-producing countries in the world in 2006, producing 2.9 million metric tons (MT) of fish, crustaceans, mollusks, and aquatic plants (including seaweeds), or 2% of the world’s total of 143.6 million MT. It is also the second-largest producer of aquatic plants

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Chapter 2: Background 19

Table 5: Country Environment Indicators

Indicator 1990 1997–2002 Latest Year

Energy Efficiency of Emissions

GDP per unit of energy use (PPP$/kgoe)

6.9 7.0 (2001)

5.6(2006)

Traditional fuel use (% of total energy use)

37.0 (1980)

61.0 (1997)

47.0(2006)

Carbon dioxide emissions (million metric tons per capita)

0.72 0.99 1.0(2004)

Water Pollution: Water and Sanitation

% of urban population with access to safe water

93.0 91.0 (2000)

96.0(2006)

% of rural population with access to safe water

82.0 79.0 (2000)

88.0(2006)

% of urban population with access to sanitation

85.0 93.0 (2000)

81.0(2006)

Land Use and Deforestation

Forest area (million hectares)

6.7 5.8 (2000)

7.2(2003)

Average annual deforestation

Million hectares 0.0887

% change 1.4 (1990–2000)

Rural population density (people per km2 of arable land)

570.6 572.3(2000)

Arable land (% of total land)

18.4 18.6(2000)

36.0(2001)

Permanent cropland (% of total land)

14.8 15.1(2000)

continued

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20 Country Environmental Analysis 2008: Philippines

Table 5 continued

Indicator 1990 1997–2002 Latest Year

Biodiversity and Protected Areas

Proportion of terrestrial and marine area protected (%)

4.0 4.9(1999)

6.5(2005)

Mammals (number of threatened species)

49(1996)

50(2002)

50(2002)

Birds (number of threatened species)

86(1986)

67(2002)

67(2002)

Higher plants (number of threatened species)

— 360(1997)

193(2002)

Reptiles (number of threatened species)

7(1996)

8(2002)

8(2002)

Amphibians (number of threatened species)

2(1996)

23(2002)

23(2002)

Urban Areas

Urban population

Million 29.8 48.1(2002)

% of total population 48.8 60.1(2002)

Per capita water use (cubic meters)

— 377(2000)

Wastewater treated (%) — —

Solid waste generated per capita (kg per day)

— 0.7(2001)

0.4(2004)

— = no data, GDP = gross domestic product, kg = kilogram, kgoe = kilograms of oil equivalent, km2 = square kilometer, PPP = purchasing power parity.Source: FMB, 2005 Forestry Statistics Yearbook; FAO Country Profile. (www.countrystat .bas.gov.ph); Biodiversity and Protected Areas, 2006 World Resources Institute; Philippine Brown Environment Quality, Senate Economic Planning Office. Asian Development Bank (adb.org/water/indicators).

(including seaweeds); of 16.2 million MT produced worldwide in 2006, it contributed 1.5 million MT, or 9.1% (FAO 2006b).

Fish catch leveled off at around 1.65 million tons in the early 1990s, despite the continued expansion of the commercial fishing fleet. The country

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Chapter 2: Background 21

reached its maximum economic yield from demersal fish stocks in the late 1960s, except in offshore areas around Palawan, Southern Sulu Sea, and the central part of the Pacific coast. Studies on pelagic fisheries point to the causes as overfishing and declining fish catch per unit effort. These findings are sup-ported by observed changes in species composition. For instance, anchovies have partially replaced sardines, scads, and mackerels in the catch, indicating a gradual collapse in stocks (FAO 2006a).

In some areas, not only the volume but also the quality and diversity of the catch has been reduced. In Central Visayas, catch composition has shifted overall from coastal pelagic to oceanic pelagic species, and from demersal to pelagic species. In the Visayan Sea, which was one of the most productive fishing grounds of the country, coastal pelagics replaced demersals as the most abundant catch in the 1980s, and invertebrate species became squid rather than shrimp dominant, reflecting a change in ecosystem health due to fishing pressure, and in fishing method from trawling to purse seine and ring net (FAO 2006a).

Inland water bodies inherently lack ichthyodiversity because of the geologic origin and isolation of the archipelago. New fish species have been introduced, but whether they were entirely appropriate is unclear (FAO 2006a). Inland water resources management should minimize heavy siltation from deforested catchments into inland waters, allow multiple use of inland waters with minimum conflicts, prevent further deterioration of inland water environments and water quality, and sustain maximum sustainable yield from freshwater natural resources. Each inland water body should also be managed as an ecosystem under a single management umbrella, stakeholders should be involved in government planning and management, and the socioeconomic condition of rural-poor stakeholders should improve.

Laws protecting the marine environment are in place. But the follow-ing issues still have to be dealt with: resource depletion, degradation of the coastal environment and critical fisheries habitats, low catch and incomes and dissipated resource rents, physical losses and reduced value of catch due to improper postharvest practices and inefficient marketing, inequitable dis-tribution of benefits from resource use, conflicts between and within sectors, poverty of small-scale fisherfolk, and inadequate systems and structures for fisheries management.

As required in the Fisheries Code (1998) (Republic Act [RA] 8550), a comprehensive national fisheries industry development plan setting strategic directions for the next 20 years and key interventions for the first 5 years has been proposed 6 and is being reviewed by the Bureau of Fisheries and Aquatic Resources.

6 One Ocean website, www.oneocean.org.

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22 Country Environmental Analysis 2008: Philippines

Aquaculture has a major role in the economy but has had adverse effects on the environment. Unsound practices—overuse of artificial fish feed, dumping of waste, and direct discharge of harmful substances—pollute water bodies. Eutrophication of lakes has reportedly resulted in fish kill in Lingayen Gulf, Laguna Lake, Pangasinan, and other water bodies. Invasive alien spe-cies can also take over natural environments and affect endemic species, and the conversion of wetlands into other uses can worsen aquatic pollution. To reduce the impact on the environment, the Government is looking to adopt an integrated approach to aquaculture nationwide that will involve cultivating aquatic species in controlled environments.

DA, DENR, and the Department of Interior and Local Government (DILG) issued Joint Administrative Order 1 (2007) defining areas where they can collaborate in promoting responsible aquaculture. The expected result is a set of guidelines for aquaculture, as provided in Fisheries Administrative Order 214 (2001), that will keep source water safe through proper waste management, sustainable practices, and consistent enforcement.

Biodiversity Resources

The Philippines has over 50,000 documented species; more than 65% are found nowhere else on Earth, and new species, more than in any other country, are being discovered every year. The Philippines supports more endemic species (Table 6) than Madagascar, with only a third of its land area. Madagascar is one of the most endemically biodiverse countries in the world and has top con-servation priority. Conservation International7 has named the Philippines one of 17 mega-biodiverse countries, with about 80% of the world’s biodiversity (in number of species). Key biodiversity areas—128 in all, with an estimated area of 6 million ha, about 20% of the land area—have been identified (CI-Philippines 2006). The country is in the Central Indo-Pacific Eco-region, one of the 200 priority eco-regions of the World Wide Fund for Nature (WWF).

The Philippines is a biodiversity “hot spot.” Here the Earth’s biological wealth is most distinctive and rich, but its loss, if conservation efforts fail, will also significantly affect global biodiversity. The coastal and marine waters contain one of the world’s richest ecosystems, with extensive coral reefs, sea-grass beds, and mangrove forests. Hard stony coral species (scleractinians) in Philippine coral reefs (about 488) far outnumber those in the Caribbean (about 70). Philippine species diversity of sea grasses (about 16) is second only to Western Australia’s (17 species). The total diversity of all marine life in the Philippines is not yet known, but estimates of species numbers are extremely high (World Bank 2005b). The Verde Island passage was described by some scientists as “Center of the Center” of marine biodiversity in the world.

7 More information may be found at www.conservation.org.

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Chapter 2: Background 23

However, the Philippines also ranks third globally for threatened birds and eighth for threatened mammals (PAWB 2004). Its threatened spe-cies numbered 695 plants and 223 animals in 2007.8 The Convention on International Trade in Endangered Species of Wild Flora and Fauna (CITES), which the country ratified in 1981, lists 25 wildlife species in the Philippines (24 animal and one plant) that are threatened with extinction, and an additional 116 species (100 animal and 16 plant including orchids and tree ferns) that, while not under immediate threat of extinction, could become extinct if their trade is not strictly regulated. (Table 7 shows the number of rare, threatened, and endangered species in the country, according to the Protected Areas and Wildlife Bureau of the DENR.) The common causes of the loss of biodiversity (terrestrial, coastal and marine, and freshwater), cited in various ENR assessments, are unsustainable land-use practices, hunting and wildlife trade, ineffective capacity for natural resource management, low awareness of biodiversity, and poor enforcement of regulations.

The NIPAS Act (1992) was passed to maintain essential ecological processes and life-support systems, preserve genetic diversity, ensure the sus-tainable use of resources, and keep their natural conditions as far as possible. The act defined various categories of protected areas (Figure 3) including strict nature reserves, natural parks, natural monuments, wildlife sanctuaries, protected landscapes and seascapes, resource reserves, natural biotic areas, and other categories established by laws, conventions, and international agree-ments signed by the Philippine Government. As of June 2008, 107 protected areas, 3.3 million ha in aggregate, had been proclaimed by the President of the Philippines under the NIPAS Act. Of this total, 1.3 million ha (39.4%) is

8 Information provided by PAWB during consultation meeting; based on DAO 2007-01 and 2004-15.

Table 6: Level of Endemism and Status of Vertebrate Fauna in the Philippines

ClassNo. of Species

No. of Endemic Species

% EndemicSpecies

No. of Threatened

Species

% Threatened

EndemicSpecies

Amphibians 101 79 78 24 30

Reptiles 258 170 66 8 6

Birds 576 195 34 74 30

Mammals 204 111 54 51 37

Total 1,139 555 49 157 23

Source: Ong, Afuang, and Rosell-Ambal (2002).

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24 Country Environmental Analysis 2008: Philippines

Tab

le 7

: N

umbe

r of

Rar

e, T

hrea

tene

d, a

nd E

ndan

gere

d W

ildlif

e Sp

ecie

s, 1

996–

2006

Typ

e19

9619

9719

9819

9920

0020

0120

0220

0320

0420

0520

06

Mam

mal

s94

9594

9810

899

9999

6161

61

Bir

ds17

617

417

314

919

220

521

621

511

511

611

6

Rep

tiles

1515

1518

1616

1616

2626

26

Am

phib

ians

——

——

2—

——

1515

15

Inse

cts

——

—4

4—

——

55

5

TO

TAL

285

284

282

269

322

320

331

330

222

223

223

— =

no

data

.N

ote:

Incl

udes

spec

ies t

hat a

re c

ritic

ally

end

ange

red,

nea

r thr

eate

ned,

ext

inct

, vul

nera

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atio

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pend

ent,

of le

ast c

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rn, a

t low

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sk, i

ndet

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e C

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n on

Int

erna

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l Tra

de in

End

ange

red

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of W

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auna

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ra (C

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and

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Chapter 2: Background 25

marine area, and the rest is terrestrial. Ten of the protected areas (0.786 mil-lion ha in total) have been officially proclaimed through legislation.

The management of 39 wetlands, while part of the MTPDP action agenda, lacks a national policy. The National Wetlands Action Plan is a decade old and needs updating. There are four Ramsar9 sites with a total area

9 The Ramsar Convention on Wetlands is an intergovernmental treaty whose original emphasis was on the conservation and wise use of wetlands, primarily as habitat for waterbirds. Over the years, its mission has evolved to cover “the conservation and wise use of all wetlands through local, regional and national actions and international cooperation, as a contribution towards achieving sustainable development throughout the world.”

Figure 3: Protected Areas, 2004

Source: Philippine Protected Areas and Wildlife Resources Statistics, 2004.

524,117.00

918,585.35

3,297.00

1,153,629.41

(undetermined)971,579.46

1,671,775.11

23,741.50

167,489.50

287,869.91

11,456.72

46,983.48

22.70

Game refuge and bird sanctuaries

National parks/National marine parks /National marine reserves

Wilderness areas

Watershed forest reserves

Mangrove swampsNatural parks

Protected landscapes/seascapes

Natural monuments/landmarks

Resource reserves

Wildlife sanctuaries

Natural biotic areas

Marine reserves

Other categories

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26 Country Environmental Analysis 2008: Philippines

of 68,404 ha: Agusan Marsh Wildlife Sanctuary, Naujan Lake National Park, Olango Island Wildlife Sanctuary, and Tubbataha Reefs National Marine Park. The first two are inland waters. Candaba Swamp is another possible Ramsar site.

Aside from Laguna de Bay, the major inland waters with management plans are Lake Naujan, Agusan Marsh, Ligawasan Marsh, and Pasig River. River basin management plans are also in place for the Bicol river basin and a few others. Unfortunately, however, there is not enough information for a full assessment of biodiversity in the inland waters of the country.

Biological diversity conservation in the Philippines is supported by inter-national agencies and NGO communities. The United Nations Development Programme (UNDP) has been active in protected areas throughout the country.10 Conservation International (preservation of forested areas), WWF (marine conservation), and Flora and Fauna International (FFI) are building the capacity of local NGOs to plan, finance, implement, and sustain integrated long-term conservation programs. The Protected Areas and Wildlife Bureau (PAWB) of DENR, in partnership with NGOs, has recently completed a major Global Environment Facility (GEF) project involving the protection of the 10 largest and most pristine sites, more than 1.5 million ha in total area. With World Bank and GEF funding, DENR-PAWB has been work-ing to protect the Ligwasan Marsh (through its Biodiversity Conservation Project in the Balang River Basin) and coastal and marine biodiversity (under the Mindanao Rural Development Project). NGOs are also committed par-ticipants in the fight against the illegal trade in endangered species, and in breeding programs for critically endangered species, public awareness build-ing, biodiversity monitoring, and species-specific wildlife research.

Terrestrial Biodiversity Because of its global significance and generally degraded condition, and the continuing threats to its survival, Philippine biodiversity requires consider-able attention. The loss of forest resources, with their attendant rich bio-diversity, has resulted in a large number of important threatened species, many of which can now be found only in the remaining fragments of lowland forest. The decline in forest cover has also devastated adjacent ecosystems. Fifty percent of the declared protected areas under NIPAS, or about 1.6 mil-lion ha, are predominantly forestlands.

10 These include: the Samar Island Biodiversity Project, Conservation of the Tubbataha Reef National Marine Park and World Heritage Site, Cebu Endemic Forest Biodiversity Restoration, Conservation and Sustainable Development Project, Biodiversity Conservation and Management of the Bohol Islands Marine Triangle, Integrated Biodiversity Conservation and Sustainable Management of Ancestral Domains in the Zambales Mountain Range, and Sustainable Management of Mt. Isarog’s Territories (SUMMIT).

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Chapter 2: Background 27

Biodiversity concerns were left out of forest management in its early stages. Only in 1992, under the NIPAS Act, was logging or the commercial exploitation of old-growth forests, watersheds, and other areas specifically prohibited. Protected areas had to have biodiversity management plans. In 2004, the Philippines made sustainable forest management (SFM) a primary policy objective.

Coastal and Marine Biodiversity Marine biodiversity in the Philippines is one of the world’s richest. The marine waters hold more than 500 of the 800 known coral reef species, in addition to more than 2,000 species of marine fish, more than 40 species of mangrove, and 16 species of sea grass.11 To some scientists, the global importance of that biodiversity and the threats to it make the country the top marine biodiversity hot spot in the world.

About 98% of all Philippine coral reefs are at risk from human activities, and 70% are at high or very high risk. One exception is the Visayan Seas area, where coastal resource management programs created protected areas in recent years, have helped curtail illegal fishing and encouraged sustainable management. More than 70% of the mangrove forests have been converted to aquaculture, logged, or reclaimed for other uses. A recent reading of 2002 sat-ellite images by the National Mapping and Resource Information Authority (NAMRIA) and FMB indicated a total mangrove area of 248,813 ha. This estimate, however, has not been validated. Half of the sea-grass beds have been lost or severely degraded, and the degradation is accelerating. Beaches and foreshore areas are under increasing pressure from rapid population growth and uncontrolled development, leading to erosion, sedimentation, and water quality problems (World Bank 2005b).

As a whole, coastal and marine ecosystems in the Philippines are in decline, the 2005 Philippine Report of the Biodiversity Indicators for National Use showed. The report added that the lack of comprehensive data and information on the state of biological resources and their habitats was affecting conservation and management (PAWB 2005).

The economic costs are significant. Overfishing leads to lost fish catch of about $125 million per year. In the 1990s red tides, harmful algal blooms caused by increasing pollution, resulted in yearly losses in exports of around $30 million.

A sustainable archipelagic framework, which seeks to transform land-based development planning and take a more rational and integrated approach to coastal and marine resource use, was prepared in 2004 but has not been acted on so far.

11 This makes the Philippines the second-ranked country in the world in species richness of sea grass.

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28 Country Environmental Analysis 2008: Philippines

Water Resources

The Philippines has abundant water resources. It has 421 principal rivers, about 79 natural lakes, and 36,289 kilometers of coastline. As of 2005, EMB had classified 62% of the 421 principal rivers according to their intended beneficial use (see Table 8). Only five were class AA, intended for public water supply; most were class C, intended only for fishery, recreation, and manufacturing (EMB 2007a).

Two major policy frameworks for water resources management—the integrated water resources management framework ((IWRMF) and the integrated water quality management framework (IWQMF)—were drafted by the Government in 2007. The National Water Resources Board (NWRB) is leading the development and implementation of the IWRMF with ini-tial support from the United Nations Environment Programme (UNEP), while EMB, with assistance from a Japan International Cooperation Agency ( JICA) project, is in charge of developing and implementing the IWQMF.

The IWRMF, a country commitment at the World Summit on Sustainable Development in Johannesburg in 2002, has its sights on greater effectiveness, accountability, and synergy among institutions and stakehold-ers; effective protection and regulation; resource sustainability; and adaptive and proactive response to challenges. Among its strategies are participatory water governance, capacity building for IWRM, efficient and ecologically sustainable allocation of water, more effective groundwater management, climate-change and disaster-risk mitigation, water stewardship, more acces-sible and available water supply and sanitation services, and innovations in water-sensitive design and water rights trading.

The IWQMF is a requirement of the Clean Water Act (CWA). Its struc-tured approach to sustainable water quality management involves using source control to minimize the impact of waste generation, managing water resources as an ecosystem and not just as a commodity, and reviving and rehabilitating degraded resources and non-attainment areas to support beneficial uses.

Neither water framework has been finalized.

Water Supply Water is important for economic development. Yet the reported water avail-ability per capita of 1,907 cubic meters is the second lowest in Southeast Asia (DENR 2007b). As of September 2007, NWRB had granted 19,694 water permits totaling about 6.0 million liters per second (lps) to domestic (munic-ipal), agriculture, power, and commercial users. The biggest water user is irrigation, at about 2.1 million lps. These figures represent only legal users and exclude unregistered or illegal abstractors.

APIS shows that access to safe drinking water declined from 81.4% in 1999 to 80.2% in 2004, largely because of competing demand from the grow-

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Chapter 2: Background 29

Table 8: Classification of Water Bodies in the Philippines

Classification Number

Surface Water

Class AAIntended as public water supply requiring only approved disinfection to meet the PNSDW

5

Class ASuitable as water supply requiring conventional treatment to meet PNSDW

203

Class BIntended for primary contact recreation (bathing, swimming, skin diving, etc.)

149

Class CFor fishery, recreation/boating, and supply for manufacturing processes after treatment

231

Class DIntended for agriculture, irrigation, livestock watering, etc.

23

Coastal and Marine Waters

Class SASuitable for fishery production, tourism, marine parks, coral reef parks, and reserves

4

Class SBIntended for recreation (bathing, swimming, skin diving, etc.) and as spawning areas for bangus and similar species

20

Class SCIntended for recreation/boating, fishery, and as mangrove areas for fish and wildlife sanctuaries

27

Class SDUsed for industrial purposes such as cooling

3

PNSDW = Philippine National Standard for Drinking Water.Note: There are 133 water bodies with two or more classifications.Source: Environmental Management Bureau, DENR, National Water Quality Status Report 2001–2005.

ing population. (Table 9 compares water demand in 1995 in major cities with the forecast demand in 2095 in relation to groundwater availability. See also Appendix 1.) In Metro Manila, the center of commerce, science, technology, and political governance, the delivery of safe drinking water to consumers is increasingly constrained by the low capacity of water sources in relation to demand and the poor efficiency of water infrastructure. Current source capacity is estimated at 4,090 million liters per day (MLD)—4,000 MLD

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30 Country Environmental Analysis 2008: Philippines

from the Angat–Ipo–La Mesa Dam system and 90 MLD from groundwater wells (MWSS 2005). Potential demand already exceeds this capacity. Water pressure is very low in parts of the Metropolitan Waterworks and Sewerage System (MWSS) service area. In extreme cases, supply is intermittent or even nonexistent.

MWSS is taking the lead in strategic planning for large sources develop-ment. It estimates that water demand in the Metro Manila service area will increase to more than 5,000 MLD by 2010, and to 8,000 MLD by 2025. The development of a water source is now critical, given the typical lead time of 5–10 years.

Water Quality Between 2001 and 2005, EMB monitored 238 water bodies through its regional offices. About 47% had annual average dissolved oxygen and bio-chemical oxygen demand (BOD) levels within the prescribed criteria. Seven priority rivers showed improved levels of dissolved oxygen (Table 10). But of the water bodies meant to be sources of drinking water, only 20% met the criterion for total suspended solids, confirming the effects of sand and gravel quarrying and runoff of sediments from denuded forests and agricul-tural lands.

Forty-one of the 57 priority bathing beaches were monitored during the period; 61% passed the fecal coliform criterion of 200 MPN/100 mL for

Table 9: Water Demand in Major Cities of the Philippines (m3/year)

City 1995 2025Groundwater Availability

Surplus/(Deficit) (%)

1995 2025

Metro Manila 1,068 2,883 191 (82) (93)

Metro Cebu 59 342 60 2 (82)

Davao 50 153 84 69 (45)

Baguio City 12 87 15 21 (83)

Angeles City 11 31 137 1,148 343

Bacolod City 37 111 103 179 (7)

Iloilo City 9 47 80 788 70

Cagayan de Oro City

29 98 34 18 (65)

Zamboanga City 28 203 54 92 (73)

m3 = cubic meter.Source: National Water Resources Board.

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Chapter 2: Background 31T

able

10:

Cha

nge

in D

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lved

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gen

in P

rior

ity

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ers,

200

3–20

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ion

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2003

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ving

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er B

ody

NC

RM

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ina

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er

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9% d

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ase

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g R

iver

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er

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ase

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g R

iver

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naqu

e R

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534

% d

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ase

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ila B

ay

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g R

iver

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52.

431

% d

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ase

Man

ila B

ay

CA

RB

alili

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er

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4.9

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crea

seN

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lian

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iver

1.

51.

220

% d

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ase

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ila B

ay

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ilao

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er

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dec

reas

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anila

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aue

Riv

er

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2.0

31%

dec

reas

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4AIm

us R

iver

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05.

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% in

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iver

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apan

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ay

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crea

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ay

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45%

incr

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awin

g C

ove

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oilo

Riv

er

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17%

incr

ease

Iloi

lo S

trai

t

7L

uyan

g R

iver

7.

97.

64%

dec

reas

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oast

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ater

s

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en, C

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ait

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dec

reas

eM

acaj

alar

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With

in th

e 5

mg/

l dis

solv

ed o

xyge

n cr

iteri

on.

CA

R =

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dille

ra A

dmin

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e R

egio

n, N

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nal C

apita

l Reg

ion.

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ce: N

atio

nal W

ater

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lity

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us R

epor

t 200

1–20

05.

Page 53: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

32 Country Environmental Analysis 2008: Philippines

class SB waters. Significantly, the coastal waters of Boracay had improved since 1997. Between 2003 and 2005, all the beaches on Boracay Island that were monitored met the fecal and total coliform criteria. Table 11 shows the results of groundwater testing for a World Bank project.

A rapid inventory of pollution sources (EMB 2007a) revealed that domestic wastes are a major source of pollution (33%), followed by agriculture including livestock (29%) and industrial sources (27%). Nonpoint sources of pollution account for 11% of the organic load in water bodies.

Pollution leaching out from solid waste disposal sites into major water bodies is high, according to several studies. But there are no estimates of the full contribution of solid waste to water quality degradation. One study in Metro Manila found solid waste to contribute about 30% of the total organic (BOD) loading in surface waters (Table 12).

The annual average economic losses from water pollution are estimated at $1.3 billion (World Bank 2003a)—$58 million for avoidable costs to health, $330 million for avoidable costs to fisheries production, and $912 million for avoidable losses to tourism.

The 5-year Manila Third Sewerage Project (MTSP) is now being implemented at an estimated cost of $64 million. About 367,000 families (3.3 million people) in the cities of Quezon, Marikina, Pasig, Mandaluyong, and Makati, and the municipalities of Taguig and Taytay, are expected to benefit as sewer coverage in the East Zone improves to 30% by the end of the project in 2010 (versus about 8% in 2004).

Full coverage of the MWSS service area by the end of the concession period (2021) is envisioned in the wastewater master plan completed in November 2005. The master plan proposes a combined sewerage-drainage strategy, deemed to be the most economical approach to sewerage expan-sion. Huge investments—and higher tariff rates—will be required to meet the target. LGUs and the national Government must show commitment, particularly when it comes to sewage treatment plant site availability, drain-age maintenance arrangements, and permits and clearances. Mandatory connections, and a massive information and education campaign, will also be necessary (MWSS 2005).

Other key challenges in water quality management are monitoring, land-use planning, protection of water bodies from contamination by domes-tic waste, management of nonpoint sources of pollution and of solid and hazardous wastes, coastal area management to avert impact on the coastal ecosystem, protection of groundwater quality, and rehabilitation of rivers.

Page 54: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

Chapter 2: Background 33T

able

11:

Gro

undw

ater

Qua

lity

Scor

ecar

d

Reg

ion

Prov

ince

Tota

l Dis

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Wel

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ls

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a(%

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atin

g b

Wel

ls

Test

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Wel

ls

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teri

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o.) c

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ls

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NC

R (M

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M

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)M

etro

Man

ila49

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310

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ley)

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203

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97

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rino

10

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3 (C

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200

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110

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00

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120

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120

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cont

inue

d

Page 55: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

34 Country Environmental Analysis 2008: Philippines

Reg

ion

Prov

ince

Tota

l Dis

solv

ed S

olid

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orm

Wel

ls

Test

ed(n

o.)

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ls

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teri

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o.) a

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ls

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teri

a(%

) aR

atin

g b

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ls

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ed(n

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ls

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iled

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teri

a(n

o.) c

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ls

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iled

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teri

a(%

) cR

atin

g b

5 (B

icol

)A

lbay

72

29U

64

67U

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arin

es N

orte

30

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20

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arin

es S

ur5

120

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00

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este

rn

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ayas

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ther

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cont

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d

Page 56: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

Chapter 2: Background 35

Reg

ion

Prov

ince

Tota

l Dis

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orm

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ls

Test

ed(n

o.)

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ls

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ls

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teri

a(%

) aR

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g b

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ls

Test

ed(n

o.)

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ls

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iled

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teri

a(n

o.) c

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ls

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tFa

iled

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teri

a(%

) cR

atin

g b

11 (S

outh

ern

Min

dana

o)D

avao

del

Sur

20

0S

12 (C

entr

al

Min

dana

o)—

Car

aga

——

AR

MM

——

— =

no

data

, AR

MM

= A

uton

omou

s R

egio

n in

Mus

lim M

inda

nao,

CA

R =

Cor

dille

ra A

dmin

istr

ativ

e R

egio

n, N

CR

= N

atio

nal C

apita

l Reg

ion.

a W

ells

test

ed d

id n

ot m

eet t

he 5

00 m

g/l s

tand

ard

for d

rink

ing

wat

er.

S =

belo

w 1

0% o

f wel

ls te

sted

did

not

mee

t sta

ndar

d U

= 1

0% a

nd a

bove

of w

ells

test

ed d

id n

ot m

eet s

tand

ard

b O

nly

prov

ince

s w

ith d

ata

wer

e in

clud

ed in

the

ratin

g.

S =

no w

ells

foun

d po

sitiv

e fo

r col

iform

(0%

) U

= w

ells

test

ed fo

und

posi

tive

for c

olifo

rm (>

0%)

c W

ells

test

ed fo

und

posi

tive

for c

olifo

rm.

Sour

ce: W

orld

Ban

k, P

hilip

pine

Env

iron

men

t Mon

itor

200

3 (N

atio

nal W

ater

Res

ourc

es B

oard

–Nat

iona

l Wat

er I

nfor

mat

ion

Net

wor

k Pr

ojec

t; da

ta c

ompi

led

from

var

ious

feas

ibili

ty s

tudi

es o

f wat

er d

istr

icts

, LW

UA

, 200

3).

Tab

le 1

1 co

ntin

ued

Page 57: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

36 Country Environmental Analysis 2008: Philippines

Table 12: Water Quality Scorecard for Surface Water (Rivers, Lakes, Bays)

Region

Name of River/

Lake/BayLocation

(Province) Class

DO (mg/1) a

Average (Range)

BOD (mg/1) a

Average (Range) Rating

NCR Parañaque River

Metro Manila

C 3.07 (0–9.50)

25.62(97.00–54.00)

U

San Juan River

Metro Manila

C 3.0 (0–8.0)

34.81 (8.00–72.00)

U

NMTT River Metro Manila

C 2.8 (0–7.5)

25.23 (7.00–54.00)

U

Marikina R. Metro Manila

C 5.03 (0–8.0)

12.11 (1.00–42.00)

U

Pasig River b Metro Manila

C 3.67 (0–6.5)

17.07 (2.00–59.00)

U

Manila Bay Metro Manila/ reg. 3/reg. 4

C 4.77 (3.90–5.48)

3.23 (2.50–4.18)

S

Laguna de Bay c

Metro Manila/ reg. 4

C 7.86 (6.1–14.0)

1.8 (0.20–7.00)

S

CAR —

1 (Ilocos) Laoag River Ilocos Norte A 6.69 (4.03–7.80)

— S

Amburayan River

Benguet/Ilocos Sur

C 8.35 (6.00–11.0)

— S

La Union —

Dagupan River

Pangasinan A/C 5.96 (2.00–11.82)

— M

Agno River b Benguet/Pangasinan

A/C 6.78 (1.46–11.10)

— S

2 (Cagayan Valley)

— —

3 (Central Luzon)

Pampanga River b

Nueva Ecija/Pampanga

C 5.86(4.85–7.21)

3.78 (1.00–15.00)

M

continued

Page 58: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

Chapter 2: Background 37

Region

Name of River/

Lake/BayLocation

(Province) Class

DO (mg/1) a

Average (Range)

BOD (mg/1) a

Average (Range) Rating

Marilao River Bulacan C 1.75 (0–5.75)

34.64(10.00–147.00)

U

Meycauayan River

Bulacan C 1.35 (0–5.55)

54.94(11.00–170.00)

U

Bocaue River Bulacan C 6.19(0.30–9.07)

11.13(6.00–20.00)

S

Labangan River

Bulacan — 5.33(2.50–7.30)

18.48(3.30–50.00)

M

Sta. Maria River

Bulacan — 3.10(0.10–5.20)

33.57 U

Guiguinto River

Bulacan C 3.03(1.50–3.80)

14.81 U

San Fernando River

Pampanga C 2.86(1.90–3.80)

29.40(27.00–32.00)

U

4 (Southern Tagalog)

Mogpong River

Marinduque C 5.72(3.45–7.80)

6.03(4.73–8.01)

M

Pagbilao River

Quezon — 5.28(4.00–6.50)

6.26(4.00–8.61)

M

Bacoor River Cavite — 6.10(5.30–7.40)

— S

Taal Lake Batangas B 7.40(7.00–8.20)

1.50(1.00–2.00)

S

Palico River Batangas C 6.95(4.80–8.30)

1.11(1.00–1.50)

S

Pagbilao River

Quezon — 7.75(6.20–10.20)

2.10(1.00–5.00)

S

Pagbilao Bay Quezon — 6.65(4.77–7.10)

— S

Boac River Marinduque C 10.42(6.24–17.13)

— S

Table 12 continued

continued

Page 59: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

38 Country Environmental Analysis 2008: Philippines

Region

Name of River/

Lake/BayLocation

(Province) Class

DO (mg/1) a

Average (Range)

BOD (mg/1) a

Average (Range) Rating

Calancan Bay Marinduque — 7.14(4.80–8.50)

— S

Cajimos Bay Romblon — 6.89(6.00–9.00)

— S

Puerto Galera Bay

Mindoro Oriental

SA 7.67(6.75–10.00)

— S

Naujan Lake Mindoro Oriental

B 8.00(1.00–9.60)

12.3 S

Calapan River

Mindoro Oriental

— 1.46(0–7.00)

30.00(2.00–225.00)

U

5 (Bicol) Bicol River b Camarines Sur

A 5.28(2.36–10.74)

— M

6 (Western Visayas)

Jaro–Aganan River

Iloilo C 8.79(0.90–14.50)

3.45(0.06–15.60)

S

Panay River b

Iloilo A 7.58(1.40–12.80)

4.63(0.40–52.00)

S

Jalaur River Iloilo C 8.30(0.50–12.90)

6.40 S

Iloilo River Iloilo 5.64(1.70–10.40)

6.67 (0.80–265.00)

M

Panay River b

Iloilo A 7.69(1.40–23.20)

— S

Iloilo Coasts Iloilo — 8.34(7.40–10.00)

— S

7 (Central Visayas)

Guindarohan River

Cebu A 7.21(6.50–8.30)

1.53(0.40–4.00)

S

Guadalupe River

Cebu C 4.32(0.50–7.50)

1.90 U

Table 12 continued

continued

Page 60: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

Chapter 2: Background 39

Region

Name of River/

Lake/BayLocation

(Province) Class

DO (mg/1) a

Average (Range)

BOD (mg/1) a

Average (Range) Rating

Dalaguete–Argao River

Cebu A/B 7.85(6.90–10.10)

1.07(0.30–2.60)

S

Guinhulngan River

Cebu A/B 7.74(7.10–8.40)

1.13(0.60–2.40)

S

Luyang River

Cebu A/B/C

7.17(5.70–8.40)

1.10(0.90–1.30)

S

Cotcot River

Cebu A 6.56(1.40–7.90)

3.06 (0.60–2.40)

U

Basak River Cebu — 8.30 0.50(0.20–2.53)

S

Mananga River

Cebu A 5.50(5.00–6.00)

7.10 (5.30–7.80)

M

Balamban River

Cebu A/B 7.35(6.30–8.70)

1.07(0.20–2.53)

S

Guinabasan River

Cebu A 8.05(5.10–11.10)

2.13(0.40–9.8)

S

Minglanilla Cebu — 6.25(2.10–9.70)

— S

Mandaue to Consolacion

Cebu — 5.27(0.0–14.00)

— M

Liloan to Compostela

Cebu — 7.15(4.10–14.0)

— S

Inabanga River

Bohol A/C 6.40(5.40–7.40)

1.20 (0.80–1.60)

S

Inabanga Beach

Bohol — 6.93(5.50–7.90)

S

Table 12 continued

continued

Page 61: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

40 Country Environmental Analysis 2008: Philippines

Region

Name of River/

Lake/BayLocation

(Province) Class

DO (mg/1) a

Average (Range)

BOD (mg/1) a

Average (Range) Rating

Ipil River Bohol A 4.15(2.80–5.20)

2.48(1.20–4.00)

M

Manaba River

Bohol B/C 7.65(4.50–16.90)

— S

Matul-id River

Bohol A 5.77(5.70–5.90)

1.20(1.20–1.20)

S

Canaway River

Negros Oriental

A 7.25(6.90–7.40)

1.20 (0.60–1.80)

S

Cawitan River

Negros Oriental

A 7.73(7.50–7.90)

0.50 (0.20–1.00)

S

La Libertad River

Negros Oriental

A 8.55(7.90–9.20)

1.25(0.10–6.60)

S

Siaton River Negros Oriental

A 7.67(7.30–7.90)

0.57(0.10–1.30)

S

Sicopong River

Negros Oriental

A/B 3.21(0.25–7.50)

40.73(0.40–100.00)

U

Tanjay River Negros Oriental

A/B 7.05(6.83–7.30)

0.85(0.70–1.00)

S

8 (Eastern Visayas)

Danao Lake Leyte — 7.20(6.30–7.90)

S

9 (Western Mindanao)

Mercedes River

Zamboanga del Sur

B/C 5.16(1.50–8.30)

4.72(0.40–17.00)

M

Saaz River Zamboanga del Sur

A/B 4.85(1.70–7.80)

— U

Manicahan River

Zamboanga del Sur

— 5.92(2.50–9.40)

2.76(0.10–8.00)

M

Table 12 continued

continued

Page 62: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

Chapter 2: Background 41

Region

Name of River/

Lake/BayLocation

(Province) Class

DO (mg/1) a

Average (Range)

BOD (mg/1) a

Average (Range) Rating

Vista del Mar

Zamboanga del Sur

— 6.77(4.90–8.80)

2.03(0.10–5.40)

S

Cawacawa Beach

Zamboanga del Sur

— 5.40(2.10–8.50)

— M

10 (Northern Mindanao)

Cagayan de Oro River b

Misamis Oriental

A 8.08(5.70–9.90)

— S

Iponan River

Misamis Oriental

A 7.51(2.10–8.50)

3.59(0.70–17.00)

S

11 (Southern Mindanao)

Silway River South Cotabato

— 8.22(5.60–73.00)

— S

Malalag Bay Davao del Sur

— 6.30(5.70–7.00)

— S

Digos River Davao del Sur

B/C 7.33(5.80–9.00)

1.55(0.10–7.80)

S

Hijo River Davao del Norte

D 7.35(5.80–9.00)

0.94(0.30–4.00)

S

Sibulan River

Davao del Sur

A/B 7.69(6.50–8.60)

1.68(0.10–4.00)

S

Pujada Bay Davao Oriental

— 6.11(3.20–6.80)

— S

Talomo River

Davao City B 7.47(6.40–8.30)

2.73(0.50–12.20)

S

Padada River

Davao del Sur

D 5.85(0–7.40)

1.84(0.30–18.00)

U

Tuganay River

Davao del Norte

B 6.02(0.20–8.00)

1.37(0.30–4.70)

U

Agusan River b

Agusan del Norte

C 7.01(2.60–8.10)

1.01(0.10–5.60)

U

Table 12 continued

continued

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42 Country Environmental Analysis 2008: Philippines

Region

Name of River/

Lake/BayLocation

(Province) Class

DO (mg/1) a

Average (Range)

BOD (mg/1) a

Average (Range) Rating

Ilang River Davao City C 6.69(4.40–8.40)

2.29(0.70–9.00)

S

Lasang River

Davao City B 7.57(6.30–8.50)

1.36(0.40–3.00)

S

Lipadas River

Davao City AA/A 7.29(5.30–8.50)

1.88(0.30–8.70)

S

Davao River b

Davao City A/B 7.46(5.80–8.60)

1.06(0.10–2.40)

S

Tagum River b

Davao del Norte

A 6.46(4.80–7.80)

1.71(0.30–36.00)

S

12 (Central Mindanao)

Caraga Agusan River b

Agusan del Norte/

A/B/C

5.94(2.60–8.00)

— M

Agusan del Sur

Magallanes River

Agusan del Norte

A/B/C

7.75 — S

ARMM —

— = no data, ARMM = Autonomous Region in Muslim Mindanao, BOD = biochemical oxygen demand, CAR = Cordillera Administrative Region, DO = dissolved oxygen, mg = milligram, NCR = National Capital Region, ND = no data, NMTT = Navotas-Malabon-Tenejeros-Tullahan.Notes: DO criteria: Class A, SB = 5 mg/l

BOD criteria: Class A, SB = 5 mg/la Monitored for at least 3 years in 1996–2001 for annual mean DO and BOD levels.b Major river, according to NWRB classification.c Not yet officially classified but generally maintains class C water.Source: World Bank, Philippine Environment Monitor 2003 (Environmental Management Bureau, DENR, 2003; Laguna Lake Development Authority data for Laguna de Bay, 1999).

Table 12 continued

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Chapter 2: Background 43

SanitationWater supply and sewerage systems must complement each other to reduce the impact on the quality of ground and surface water. Investments in urban sewerage and sanitation programs, however, total only 1.5% of investments in urban water supply. More than 27 million Filipinos do not have sanitary toilets. Thirteen million do not have clean water sources, and only 3.3% of households are connected to sewers leading to treatment facilities. More than 95% of wastewater in urban areas is discharged untreated into groundwater, canals, and waterways. Water supplies are therefore commonly contaminated, and people in urban slums, and illegal settlers living near the rivers, are exposed directly to raw sewage. More than 31 persons, mostly children, die every day from illnesses like diarrhea arising from poor sanitation.

Metro Manila (see Table 13) ranks 16th among key cities in Asia in percentage of the population with access to sewerage (12%). The rest of the people rely on septic tanks or pit latrines, or have no access to any sanitation system. The 2.2 million or so septic tanks in Metro Manila are not regularly cleaned, and many are inappropriately designed with minimal treatment, contributing to the pollution of waterways and to public-health risks.

Outside Metro Manila, only three of the 1,500 cities and towns have functional public sewerage systems (Baguio, Zamboanga, and Vigan cities) (Table 14). These systems, built by the Americans in the late 1920s and early 1930s, are in the downtown business districts and serve only a small portion of the urban population. Aside from a few communal toilets in low-income urban areas, no other public sanitation services are in evidence. The two

Table 13: Sewerage Services in Metro Manila, 2001–2005

Item 2001 2005

Population with sewer connection, as % of total population

East Metro Manila (Manila Water Company Inc.) 8.3% 11%

West Metro Manila (Maynilad Water Services Inc.) 14.5% 12.4%

Amount of septage safely disposed of (cu m per day)

East Metro Manila 100 200

West Metro Manila 74 500

Population with septic tanks cleaned

East Metro Manila 0.7% 4.7%

West Metro Manila 1.9% 6%

cu m = cubic meter.Source: World Bank, Manila Water Supply and Sewerage, Report 35539-PHI, 16 May 2006.

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44 Country Environmental Analysis 2008: Philippines

independent sewerage systems in Bacolod City serve housing developments, each with fewer than 200 households, while the communal toilets in Dagupan City are used by only 40–60 households.

The country incurs economic losses of about $1.5 billion per year from premature death, health-care costs, lost wages, and other effects of poor sanitation, according to a study cofinanced by the World Bank and the United States Agency for International Development (USAID) under its Environmental Cooperation–Asia Program. The study recommended increasing the budget for sanitation, especially for sewage treatment plants; intensifying the education and information drive in schools and households in partnership with the media; developing policies and regulations to protect the environment and health; and studying further the effects of poor sanita-tion on the economy and public welfare in local governments.

The World Bank has financed three sewerage projects in Metro Manila, including MTSP. Instead of a central sewerage system (which would be unaffordable and tough to implement in the traffic-congested city), several small wastewater treatment plants connected to nearby houses are being built. ADB financed the construction of a sludge treatment plant under the Pasig River Environmental Management and Rehabilitation Sector Development Program, and a package treatment plant for a public market in Liloan, Cebu, as a pilot and demonstration activity. The proposed Water

Table 14: Sewerage and Sanitation Systems outside Metro Manila

LocationUrban

Population System ManagementPopulation

Served Coverage

Baguio City 252,000 Public sewerage

LGU 5,300 2.0%

Zamboanga City

402,000 Public sewerage

Water district 3,700 1.0%

Vigan City 45,100 Public sewerage

Water district 1,360 3.0%

Bacolod City

429,000 Independent sewerageIndependent sewerage

LGU

LGU

1,030

990

0.2%

0.2%

Dagupan City

130,000 Communal toiletCommunal toilet

LGU

LGU

308

204

0.2%

0.2%

LGU = local government unit.Source: World Bank Water and Sanitation Program–East Asia and the Pacific, 2003.

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Chapter 2: Background 45

District Development Sector Project will also have a sanitation component. The project will help improve the living conditions of the urban population outside Metro Manila, enhance competitiveness by developing water supply infrastructure, and build the capacity of water utilities. It will also support the institutional development of LWUA and contribute to much-needed sector reform. The sanitation system component will consider low-cost solutions (e.g., septic tanks and septage management, package treatment plants), and wastewater quality monitoring.

Seven septage treatment facilities (STFs) have been put up in the municipalities of Alabel, Malapatan, Glan, Maasim, Kiamba, and Maitum in Sarangani Province, and in Malalag, Davao del Sur, under the Southern Mindanao Integrated Coastal Zone Management Project funded by the Japan Bank for International Development. These STFs have been operating since March 2008. The municipal LGUs operate and maintain the facilities.

MTPDP 2004–2010 seeks 92%–96% coverage for safe drinking water (see MTPDP strategies in Box 1) and 86%–91% for sanitary toilet

Box 1: Strategies for Potable Water in the Medium-Term Philippine Development Plan 2004–2010

Provide potable water to the entire country by 2010, with priority given to at least 200 waterless barangays (areas with less than 50% water supply coverage) in Metro Manila and 200 waterless municipalities outside Metro Manila through private sector or public investment.Ensure that all barangays and municipalities that will be provided with water supply services have the corresponding sanitation facilities for the proper disposal of wastewater and septage.Continue to provide capacity building programs and technical assistance in water supply and sanitation planning, management, and project implementation to all water service providers needing assistance.Develop technology options for water supply (e.g., solar desalination for isolated islands, windmill technology).Promote private sector or public investment in the provision of water to waterless barangays and municipalities.Assess groundwater resources and vulnerability in 310 priority local government units.Monitor the drinking water of selected poor communities through the Tap Watch Program.Complete the groundwater resource inventory and assessment in major urban areas and surface water in rural areas, control extraction through moratorium/stringent requirements in the grant of water permits in water-deficient areas, and complete the registration of all water pumps, the metering of water pumps, etc.

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46 Country Environmental Analysis 2008: Philippines

facilities. These goals exceed the 2015 MDG targets. The MTPDP urges strong commitment to cost recovery, commercial principles (including pri-vate sector involvement), and decentralization of operation and maintenance responsibilities to local governments.

Air Quality

Air quality is mixed and varies between regions.12 Despite a recent decline in concentration in some cities, particulates regularly exceed annual ambient

12 No study has been conducted to value trans-boundary and global air pollution impact including acid rain, global warming, and damage to stratospheric ozone in the Philippines. This section is taken from World Bank (2002).

Table 15: Philippine, US-EPA, and WHO Ambient Air Quality Guidelines for Common Pollutants

PollutantTime

(averaging)WHO(µg/m3)

US-EPA(µg/m3)

Philippines(µg/m3)

Total suspended particulates (TSP)

DailyAnnual

23090

Particulate matter up to 10 microns (PM10)

DailyAnnual

15050

15080

Sulfur dioxide (SO2) DailyAnnual

12550

36580

18080

Nitrogen dioxide (NO2)

DailyAnnual

40 —100

150

Ozone (O3) 1 hour8 hours

120 23015

14060

Carbon monoxide (CO)

1 hour8 hours

30 mg/m3

10 mg/m3

40 mg/m3

10 mg/m3

35 mg/m3

10 mg/m3

Lead (Pb) 3 monthsAnnual

0.5 — 1.51.0

— = no data, µg/m3 = one millionth of a gram of pollutant per cubic meter of air, mg/m3 = milligrams per cubic meter, US-EPA = US Environmental Protection Agency, WHO = World Health Organization.Notes: “Guideline” refers to the safe level of a pollutant for the given averaging time to protect the public from acute health effects. “Annual Average” is the average of daily measurements taken over a year. WHO no longer recommends air quality guidelines for particulate matter because there is no safe lower limit. US-EPA values are for primary standards.Source: Clean Air Act of 1999; WHO/SDE/OEH/00.02 Geneva 2000.

Page 68: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

Chapter 2: Background 47

standards (Table 15) at 70% of monitoring sites, and particulate matter (PM10) levels are very high. Sulfur dioxide (SO2) concentrations have gone down since the closure of a number of coal- and oil-fired thermal generating stations, the largest source of this pollutant in the country. Carbon monoxide emissions, monitored mostly in Metro Manila, almost always exceed 8-hour standards but normally never exceed 1-hour standards. Ground-level ozone in Metro Manila is almost always higher than national standards. By 2000, concentrations of lead had dropped after the complete phaseout of the sub-stance in gasoline; ambient monitoring has also been phased out. National greenhouse gas (GHG) emissions are 0.8 MT per capita (including land-use conversions), 50% of this from energy and transport, 33% from agriculture, 10% from industry, and 7% from solid waste (2000 estimates). The imple-mentation of Montreal Protocol commitments has substantially reduced the consumption of ozone-depleting substances (ODS). No trends in nitrogen oxide (NOx) emissions are discernible from air quality monitoring informa-tion. Figure 4 shows the annual consumption of ODS and alternatives.

The high levels of total suspended particulates (TSP) and PM10 in major urban cities can be attributed to suspended dust and vehicle emissions (Table 16). Motor vehicles are required to pass emission tests before they can be registered in NCR and must be tested periodically. But private motor

4,000.00

3,500.00

3,000.00

2,500.00

2,000.00

1,500.00

1,000.00

500.00

0.002001 2002 2003

Year

2004 2005 2006

chlorofluorocarbons hydrochlorofluorocarbons hydrofluorocarbons

Figure 4: Annual Consumption of ODS and Alternatives, 2001–2006

ODS = ozone-depleting substances.Source: Philippine Ozone Desk, Environmental Management Bureau, Department of Environment and Natural Resources.

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48 Country Environmental Analysis 2008: Philippines

Tab

le 1

6: A

nnua

l Mea

n R

oads

ide

TSP

Lev

els

in M

ajor

Cit

ies

and

Urb

an C

ente

rsin

the

Phi

lippi

nes,

200

–200

4 (µ

g/N

m3 )

Reg

ion

Cit

y/Pr

ovin

ceLo

cati

on

2003

2004

Min

Max

Ann

ual

Mea

nM

inM

axA

nnua

l M

ean

CA

RB

agui

o C

ity

Sess

ion

Roa

d84

658

229c

104

287

204c

1A

lam

inos

Cit

yJo

libee

Bld

g.77

673

312d

——

1Sa

n Fe

rnan

do C

ity

Cit

y P

laza

4429

418

3c—

——

1L

aoag

Cit

yH

eroe

s B

ldg.

——

—78

190

130a

2T

ugue

gara

o C

ity

Tan

za15

136

5911

834

619

8c

3Sa

n Fe

rnan

do C

ity

San

Jose

——

—5

514

117a

3B

ulac

anIb

a, M

eyca

uaya

n—

——

560

410

1a

3B

ulac

anSa

luys

oy,

Mey

caua

yan

1445

014

8b21

711

141a

3C

aban

atua

n C

ity

2422

510

2b—

——

3B

ulac

anW

akas

, Boc

aue

236

1,23

885

9d—

——

4AC

avite

Cit

yT

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Mar

tires

1133

484

a21

336

79

4AB

atan

gas

Ala

ngila

ng35

268

144b

1035

812

7

4BC

alap

an C

ity

Sta.

Isa

bel

381,

266

214c

——

5L

egas

pi C

ity

Bar

riad

a14

424

87a

3444

411

0c

5Ir

iga

Cit

ySa

n N

icol

as19

714

108b

747

311

0c

cont

inue

d

Page 70: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

Chapter 2: Background 49

Reg

ion

Cit

y/Pr

ovin

ceLo

cati

on

2003

2004

Min

Max

Ann

ual

Mea

nM

inM

axA

nnua

l M

ean

5N

aga

Cit

yPa

ngan

iban

Dri

ve14

198

84a

873

113

c

6llo

ilo C

ity

Jaro

Pol

ice

Stn.

5539

418

2c70

530

177c

6llo

ilo C

ity

La

Paz

Pla

za16

317

104b

1737

492

c

7C

ebu

Cit

yO

port

os R

esid

ence

——

—12

232

72a

7C

ebu

Cit

yB

aric

uatr

os R

es.

——

—15

646

117a

7C

ebu

Cit

yC

anos

Res

iden

ce—

——

1139

593

a

8T

aclo

ban

Cit

yP

& M

Bld

g.—

——

4719

810

0a

9Z

ambo

anga

Cit

yZ

CM

C11

033

422

0c15

437

623

7c

9Z

ambo

anga

Cit

yB

uena

vist

a St

.12

533

621

2c16

729

922

6c

9Z

ambo

anga

Cit

ySa

n Jo

se R

d.12

028

822

1c17

530

122

7c

9Z

ambo

anga

Cit

yZ

ambo

anga

E. Z

.—

——

1494

39a

9Z

ambo

anga

Cit

yF

ish

Port

Com

plex

——

—22

101

47a

11D

avao

Cit

yP

urok

3, S

asa

2795

56a

3924

997

a

11D

avao

Cit

yJ.

P. L

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l30

175

64a

120

285

185c

11D

avao

Cit

yB

angk

eroh

an42

262

97b

——

11D

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Cit

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4727

292

b19

468

033

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Tab

le 1

6 co

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cont

inue

d

Page 71: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

50 Country Environmental Analysis 2008: Philippines

Reg

ion

Cit

y/Pr

ovin

ceLo

cati

on

2003

2004

Min

Max

Ann

ual

Mea

nM

inM

axA

nnua

l M

ean

11D

avao

Cit

yN

ova

Tie

rra

Subd

.—

——

2288

42

11D

avao

Cit

yQ

uiri

no A

ve.

——

—13

360

224

9c

11D

avao

Cit

yK

m. 1

0 K

aban

tan

——

—18

9239

a

12G

ener

al S

anto

sC

argi

l (P

hils

.), I

nc.

104

190

135b

——

12So

uth

Cot

abat

oB

anga

8210

192

b—

——

12So

uth

Cot

abat

oPo

lom

olok

——

—87

151

99a

12So

uth

Cot

abat

oSu

ralla

——

—80

109

93a

12So

uth

Cot

abat

o —

—83

114

95a

12N

orth

Cot

abat

oM

akila

la83

9991

b—

——

13B

utua

n C

ity

New

Asi

a45

152

83a

4518

596

a

— =

no

data

, µg/

Nm

3 = m

icro

gram

s pe

r nor

mal

cub

ic m

eter

.a

0–99

µg/

Nm

3

b 91

–180

µg/

Nm

3

c 18

1–27

0 µg

/Nm

3

d ab

ove

270

µg/N

m3

Sour

ce: E

MB

, Nat

iona

l Air

Qua

lity

Stat

us R

epor

t, 20

03–3

004.

Tab

le 1

6 co

ntin

ued

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Chapter 2: Background 51

vehicle testing centers have not effectively implemented the emission testing procedures. About 20% of the centers have been found to violate government guidelines (EMB 2006).

About 233.3 tons per year in total mass emissions from these stationary sources (including TSP, oxides of sulfur and nitrogen, and carbon monoxide) were found in an EMB emission inventory of more than 3,300 establish-ments in Metro Manila in 2006. According to an emission inventory in Metro Manila in 2005 (Table 17), mobile sources generated around 1.3 mil-lion tons/year, and area sources, about 98,400 tons/year.

An initial analysis in 2005 showed that the health costs of exposure to PM10 reduce per capita incomes in Metro Manila, Davao, Cebu, and Baguio by 2.5%–6.1%, or over $430 million in total, yearly—about $140 million from over 2,000 premature deaths, about $120 million from over 9,000 cases of chronic bronchitis, and about $170 million from nearly 51 million cases of respiratory symptom-days in Metro Manila. These costs are 70% higher than those estimated in a similar study for Metro Manila in 1992.

But while the impact of pollution on health is no doubt the most com-pelling reason to take action, the non-health costs—from congestion, loss of productivity, and damage to ecosystems and physical infrastructure—are also significant. One study estimates that in six cities, including Metro Manila, the non-health costs of NOX and SO2 outweigh the health costs. In the case of particulate pollution, however, the health costs are higher.

The Metro Manila Air Quality Improvement Sector Development Program (ADB Loan 1663-PHI) in 1998–2007, enabled the Government to implement air quality improvement programs throughout the country (EMB 2006). It designated 15 air-sheds, four of them geothermal; revised emission standards for gasoline-fed and diesel vehicles, and set standards for hydro-carbon emissions from motorcycles and tricycles; and reduced the propor-tion of aromatics in gasoline from 45% to 35% and benzene from 4% to 2%,

Table 17: Total Mass Emissions in Metro Manila, 2005 (tons per year)

Source TSP PM10 SOx NOx CO Total

Stationarya 185.74 — 32.35 12.65 2.60 233.34

Mobile — 32,630.58 2,387.96 12,5918.50 1,165,439.00 1,326,376.04

Area — 95,649.24 113.10 2,345.83 1,304.01 98,412.18

— = no data, CO = carbon monoxide, NOx = nitrogen oxides, PM10 = particulate matter of up to 10 microns, SOx = sulfur oxides, TSP = total suspended particulates.a 2006 data on 1,585 air pollution sources from 3,304 air pollutive firms and establishments.Source: EMB-NCR.

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52 Country Environmental Analysis 2008: Philippines

both by volume, and the sulfur content of automotive diesel fuel to 0.05% by weight. The improved standards, as well as the phaseout of leaded gaso-line, have achieved a modest reduction in ambient TSP concentration in the NCR despite the growing number of motor vehicles. A technical committee created by the Department of Energy (DOE) set standard specifications for diesel and two-stroke lubricating oil, and for coco-methyl esters as alternative fuel for diesel or for blending with diesel. The Biofuels Act (2007) (RA 9367) requires at least a 1% blend of bio-diesel in all diesel engine fuels, and at least 5% bio-ethanol (by volume) in all gasoline fuel sold in the country. Other CAA provisions mandate control of pollution from mobile, stationary, and area sources. A considerable number of taxis operating in Metro Manila now use liquefied petroleum gas, and industries are shifting from bunker C oil to low-sulfur fuel or diesel oil.

Land Resources

Much of the land is susceptible to erosion. While almost half of the land is low-lying, large areas of the main islands are at higher altitudes. There is substantial soil loss from agricultural practices in the upland areas. Soil loss from annual crop cultivation in the lowlands may also be extensive (ADB 2004a). In addition, intense rainfall can cause severe erosion. Other causes of soil erosion are mining, insufficient cover in degraded forest areas, and road construction.13 Mining industry activities continue to find low acceptance from communities because of the environmental havoc and the displacement of people they cause.

Twenty-one percent of the country’s agricultural lands and 36% of non-agricultural lands are moderately or severely eroded. There are regional varia-tions: 38% of Mindanao’s agricultural lands, for example, were moderately or severely eroded in the mid-1990s. Soil erosion has affected the productivity of land,14 limited the rehabilitation or restoration of degraded lands, lowered the quality of surface water, and modified hydrologic conditions by changing land resources and land management.

Apart from the opportunity cost of lost earnings from well-managed land, soil erosion has imposed high costs on downstream sectors—roads, bridges, agricultural production areas, settlements, water districts, and others. For example, foregone valued added from rice production was estimated to have increased from $59,000 in 1988 to $64 million in 1997 (both at con-

13 Soil erosion from roads is sometimes ignored in estimates of soil loss and declining watershed integrity in the Philippines. Attention is focused on deforestation. Soil loss from unpaved roads is considered quite high. While there are no data on soil erosion and soil loss in the country, the level of road construction in the country is quite substantial (ADB 2004a).

14 Many of these effects are described in World Bank (2000b, appendix 13).

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Chapter 2: Background 53

stant 1985 prices). Silting of rivers and lake systems has shortened the life of reservoirs, affecting both hydroelectric power and water supply. Erosion as a primary cause of sedimentation was estimated to cause half of the pollution in Philippine irrigation systems.

Soil loss from forestland varies with forest type and status. Unit soil loss from an area subjected to kaingin is 250 times greater than the loss in a primary forest; soil loss in a secondary, degraded forest is about 3.5 times greater. A complete analysis of changes in the composition of forestland and consequent soil erosion through the Philippine Economic, Environmental, and Natural Resource Accounting (PEENRA) System (NSCB 2003) con-cluded that forestland soil erosion declined by 4% yearly between 1988 and 1997. This decline was attributed to the compensatory effects of reforestation and a drastic stop in the conversion of primary forest to other forestland types because of the logging ban. On the other hand, road building and mining in rural Philippines have increased in the past decade and have had major impact on watershed integrity (ADB 2004a).

In the absence of definitive assessments of the impact of changes in for-est cover on soil erosion and watershed integrity, whether watershed degrada-tion is worsening is not known for certain. While the rural population has remained relatively constant, land used for agriculture has decreased,15 result-ing in little expansion of agriculture land in upland areas. But the negative impact of inappropriate agricultural practices in upland areas on soil erosion is unlikely to have changed much.

Mining and Mineral Resources

Philippine mineral resources, by government estimates, are the fifth richest in the world.16 In 1994, the country had about 7 billion metric tons in metallic mineral reserves and 50 billion metric tons in non-metallic reserves. Copper made up about 72% of metallic mineral resources, and nickel, about 16%. Among the non-metallic minerals, limestone accounted for about 39%, and marble, 29%. The Philippines is also one of the best endowed in chromite resources. Its refractory chromite resource in Zambales province is considered one of the largest in the world (NSCB n.d.[b]). As of mid-2008, the country had 39 operating mines and more than 2,000 small-scale mines and quarries.

15 As of September 2008, 1.9 million hectares of agricultural public lands (alienable and disposable) all over the country were covered by free patents and homestead patents issued under the DENR–Comprehensive Agrarian Reform Program (CARP). Holders are registering these patents at the Register of Deeds to obtain certificates of title. Through this titling program the DENR aims to provide secure tenure to farmers and landowners to improve their socioeconomic welfare.

16 Philippine Business Leaders Forum Inc. website, www.philippinesforum.com.

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54 Country Environmental Analysis 2008: Philippines

For the most part, these mineral resources are still to be fully tapped. Of the 9 million ha of mineral resources (about 30% of the total land area of 30 mil-lion ha), less than 0.5 million ha are under exploration or development.

The Philippine mineral industry has annual sales of around $1 billion, similar to Malaysia’s and Papua New Guinea’s but lagging behind Indonesia’s $3.6 billion, Chile’s $13 billion, and Western Australia’s $26 billion (MGB 2004). Metals have steadily increased their contribution to total mineral production in peso value, from 44% in 1998 to 73.3% in 2005. Gold had the highest share, at 33.8% in 1998 and 59% in 2005. In 2002, the mineral industry contributed 1.5% of total Philippine exports; by 2005, the contribu-tion had increased to 2.0%. In 2006, the mining sector employed 136,000 employees, 0.4% of total employment in the country.

From 2001 to 2005, the mining and quarrying sector contributed between 1.0% (2001) and 1.7% (2005) of GDP. In 2006, its overall contribution to GDP slipped to 1.5%. Sector growth surged in 2002 (51%) and 2003 (16.8%) behind increases in crude oil and natural gas production from the Malampaya Oil Rim Project. (Excluding this project, the sector grew by 21% in 2002 and 13% in 2003.) But from 2005 to 2006, the sector had negative growth, from $1.1 billion to $967 million (both at constant 1985 prices).

The mining industry has not picked up despite attractive mineral pros-pects because of a wide range of factors particularly perceived policy inconsis-tencies and instabilities, especially land-use conflicts and foreign ownership issues, strong opposition to mining because of its environmental impact, and the lack of domestic capital. The promotion of sustainable mineral resources development, under the DENR Mines and Geosciences Bureau (MGB), nonetheless continues. See Box 2 for a summary discussion of the MTPDP strategies in the mining sector, and Box 5 for the policy agenda of the action plan drawn up by DENR to infuse new vigor into the sector.

Urban Environment

The Philippines is one of the fastest-urbanizing countries in the world. A World Bank sector analysis17 notes that most urban growth is occurring in low-density peri-urban areas outside Metro Manila, such as Cavite and Laguna provinces, and in major secondary cities (Metro Cebu and Metro Davao). The urban population is 64% of the total population of 88.6 million (2007). The high population growth rate (2.04 yearly from 2000 to 2007) is not matched by growth in employment opportunities; urban poverty, unem-ployment, and underemployment are therefore high.

17 www.bln0018.worldbank.org/External/Urban.

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Chapter 2: Background 55

The population is projected to reach 94 million (60% urban) by 2010, and 128 million (75% urban) by 2030 (Table 18). More than 2 million will be added to the urban population every year. This means that three out of every four individuals will be living in the cities less than 25 years from now. The total population is distributed as follows: 56% in Luzon, 24% in Mindanao, and the remaining 20% in central Philippines (ADB 2007g).

Urban population growth, fanned by industrialization,18 exerts pres-sure on urban infrastructure. According to an ADB study (ADB 2004b), Metro Manila generates 6,700 tons of solid waste daily, only 720 tons of which (11%) is recycled or composted. The rest is hauled to dumpsites,

18 Manufacturing, trade, construction, and energy generation together grew by about 3.6% yearly (at constant 1985 prices) between 1992 and 2006.

Box 2: Strategies for the Mining Sector in the Medium-Term Philippine Development Plan 2004–2010

Promote responsible mining that adheres to the principles of sustainable development: economic growth, environmental protection, and social equity. Responsible mining reduces poverty and benefits local and indigenous communities.

Launch a major program to revive the mining industry that will revitalize the mining industry and pursue the implementation of responsible mining through the Minerals Action Plan.

Pursue and assist in the development of 18–23 large-scale mining projects that will bring an estimated $4.0–$6.0 billion in investments, and about 210,000 in direct and indirect employment.Resolve the issues involving mining accidents in abandoned and idle mine areas.

Address the remaining issues pertaining to the Marcopper Mine Tailing Spill accident.Construct the final Mabatas tailings dam, covering some 30 hectares.Assess seven abandoned mines and implement stop-gap measures and rehabilitation of three abandoned mines.

Develop incentive schemes to attract international and local investors in Mt. Diwalwal.

Conduct core drilling within 1.5–2 years to determine the mineable resources of Diwalwal.Mobilize international and local investors to develop the underground wealth of gold, and employ the tens of thousands of miners who might be given additional incentives of partnership or profit-sharing arrangements.

––

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56 Country Environmental Analysis 2008: Philippines

illegally dumped on private land or into rivers, creeks, or bays, or burned in the open, adding to water and air pollution.

Urban growth is also straining water and sanitation services. Twenty-five million people lack basic sanitation and 13 million lack potable water sources. In the last 15 years, population with access to safe drinking water increased from 57% to 72%. Household water supply connections increased as well, from 26% to 40% nationwide, and are now 58% in urban areas (World Bank 2005b). Annual economic losses from water pollution are estimated at $1.3 billion (World Bank 2003a).

Environmental Spatial Planning

The National Physical Framework Plan (2001–2030), prescribed in the Philippine Constitution of 1987 (sec. 14, art. X) and completed in 2002, has not been used effectively for orderly spatial development. Regional physical framework plans are still largely separate, and even these are not adequately taken into account in regional investment programming.

The Local Government Code (1991) (LGC) requires LGUs to pre-pare and adopt provincial and regional physical framework plans. But LGU capacity for such planning is quite limited. Under the CWA, programmatic environmental impact assessment (EIA) may be made part of local physical framework plans, by agreement between LGUs and the DENR. Compliance would be guided by carrying capacity, based on environmental constraints and opportunities in programmatic areas. Years after the approval of the CWA, however, the role of programmatic EIA in physical framework planning has yet to receive due recognition.

An ongoing ADB technical assistance (TA) project through the National Economic and Development Authority (NEDA), now in its second phase, is developing LGU capacity for provincial development and physical frame-work planning. A European Commission TA is mainstreaming disaster risk reduction in development and physical framework plans.

Table 18: Urbanization Forecast for the Philippines

Population/Year 2010 2020 2030

Total population (millions) 94.0 111.8 128.1

Urban population (millions) 56.4 76.0 96.1

Rural population (millions) 37.6 35.8 32.0

Level of urbanization (%) 60.0 68.0 75.0

Source: NSCB, Manila, 2006.

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Chapter 2: Background 57

Two spatial planning projects are also ongoing. A $57.2 million loan from the Japan Bank for International Cooperation ( JBIC) under one of those projects is funding the establishment of a national database and a geo-spatial information network, now undergoing review and approval by the Government. The Integrated Geo-Spatial Referencing Facility project ($6.8 million), also supported by JBIC, will provide a common, consistent, and cost-effective geographic database for DENR, DA, LGUs, and all other users (European Commission 2005).

To remedy institutional weaknesses in the coordination of planning through the Housing and Urban Development Coordinating Council (HUDCC) and deal with economic inefficiencies caused by the failure of basic urban services to keep up with demand,19 the MTPDP proposed elevat-ing HUDCC into a Department of Housing and Urban Development to take charge of urban planning, development, and renewal, land-use zoning, housing provision, regulation and finance, and marginal settlement.

Hazardous and Solid Wastes

Hazardous WastesThe Philippines imports various chemicals, primarily for use in production. Initial research yielded limited information about types and quantities, scat-tered over several government departments.

The top three hazardous wastes generated are inorganic, alkali, and organic wastes (Table 19). Fifty percent is exported for disposal (or treat-ment)20 and the rest is either treated locally or temporarily stored on-site. Hazardous waste in Metro Manila is projected to rise from 232,000 tons/year in 1995 to 659,000 tons/year by 2010. Industrial firms, lacking proper facili-ties for segregating or storing hazardous wastes, often commingle these with solid wastes.

The Philippines has registered treatment, storage, and disposal facilities for hazardous wastes (19 in or near Metro Manila, 7 in Mindanao, 17 in Northern Luzon, and 43 in Southern Tagalog) (EMB 2008). Other urban and industrialized cities have limited capacity to treat hazardous wastes. Illegal disposal is rampant.

19 The fast-growing housing backlog was projected to be 3.75 million units between 2005 and 2010 (NEDA 2004).

20 The current practice (approved by the DENR) is to export PCB wastes and PCB-contaminated equipment at a relatively high cost ($4–$9 per kilo, or $4,000–$9,000 per ton) to the United Kingdom or other European countries for treatment through incineration.

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58 Country Environmental Analysis 2008: Philippines

Not enough research has been done on chemical use and contamina-tion in agriculture, drinking water, soil, and groundwater in the Philippines to identify hot spots and to support stricter waste management policies. A study by Weston International at the former Clark Air Base in Pampanga in August 1997 detected concentrations of the pesticide dieldrin above the drinking-water quality standard of 0.00003 milligrams per liter at four operational wells and two back-up wells. The dieldrin could not be definitely traced to its source. But it was thought to be a breakdown product of the related pesticide aldrin, which may have been used to control insects on the golf course. The wells containing dieldrin were near or down-gradient of the golf course.

Table 19: Chemical Waste Generation and Trade

Type of Chemical Waste1

Generation(metric

tons/year)

Export(metric

tons/year)

Plating waste with cyanide 11,233 1,661

Acid wastes 26,900 1,146

Alkali wastes 56,099 43,470

Inorganic chemical wastes 67,756 32,447

Reactive chemical wastes 347 249

Paints, resins, lattices, dyes, adhesives, organic sludge 14,769 12,602

Organic solvent 2,175 1,204

Putrescible/Organic wastes 30,588 12,429

Textile 81 71

Oil 22,549 8,632

Containers 3,499 2,097

Immobilized wastes 516 391

Organic chemicals 16,226 1,426

Pathological/Infectious wastes 15,467 12,526

Asbestos 10,145 9,984

Drug wastes, medicines 1 1

Pesticides 1 1

Total 278,351 140,336

Source: JICA-DENR Study on Hazardous Waste Management in the Republic of the Philippines (Phase 1), Final Report, June 2001.

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Chapter 2: Background 59

Proof of soil contamination is also limited in the Philippines. Available studies are mostly from the former US military bases. The Asian Regional Research Program on Environmental Technology of De La Salle University unearthed evidence of polychlorinated biphenyl (PCB) releases in soil in certain areas of Clark Air Base. UNDP, the United Nations Industrial Development Organization, and GEF plan to set up a demonstration project for the destruction of waste PCB stockpiles using non-combustion technology.

Private companies among the country’s top 1,000 are increasingly adopting voluntary environmental guidelines such as the Philippine Business Charter for Sustainable Development, Responsible Care®,21 or the International Standards Organization (ISO) 14000. Electronic manufacturers in particular, mostly subsidiaries of leading electronic companies in developed countries where environmental laws are strictly enforced, receive regular training from their parent companies in environmental conservation and cost-effective compliance with environmental requirements. Others are prompted to adopt the guidelines by foreign and locally funded projects like the Metropolitan Environmental Improvement Project and the Industrial Environmental Management Project. These projects showed that environmental improve-ment is not just a cost factor but also beneficial to the bottom line.

Box 3 sums up the MTPDP strategies for dealing with toxic and hazard-ous wastes.

Solid WastesThe Ecological Solid Waste Management Act (ESWMA) (RA 9003) was approved in 2001 but its implementation has been slow, despite the creation of the National Solid Waste Management Commission (NSWMC) to over-see its implementation. LGUs are primarily responsible for implementing the ESWMA.

According to the national solid waste management framework prepared in 2004 by the NSWMC, the country generated about 19,700 tons per day of garbage in 2000, or about 7.2 million tons per year. An increase to more than 10 million tons per year is expected by 2010.

The NSWMC reported in 2007 that Metro Manila produces about 7,100 tons/day of waste, about 6% more than estimated in the ADB-funded Metro Manila Solid Waste Management study in 2002 (TA 3848-PHI). The

21 A global chemical industry program of cooperation for the continuous improvement of the health, safety, and environmental performance of chemical products and processes. The Samahan sa Pilipinas ng mga Industriyang Kimika (Chemical Industries Association of the Philippines) subscribes to the Responsible Care doctrine and commits the whole organization to promote, monitor, and support its members in implementing its initiatives.

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60 Country Environmental Analysis 2008: Philippines

waste is collected by the city in only 3 of the 17 LGUs (Valenzuela, Pateros, and Marikina); in the other LGUs waste collection is contracted out to the private sector. Metro Manila has no open dumpsites.22 The rehabilitated Payatas (Quezon City) controlled disposal facility, a registered project under the Clean Development Mechanism (CDM), is now recovering methane and produces about 116,339 tonnes of carbon dioxide equivalent (tCO2e) in certi-fied emission reductions per year. The country has 16 sanitary landfills and is building an additional 19. These landfills have a capacity of about 9,300 tons per day. Two hundred eleven more sanitary landfills are proposed and are expected to be operating by 2010.

A JICA-funded study on the recycling industry in the Philippines was done in 2007 for the Department of Trade and Industry–Board of Investments. The department is mandated under the ESWMA to develop the market for recyclable materials. A master plan was developed for disseminating information about domestic recyclable materials and recycling industries to stakeholders, establishing proper segregation at source and strong, sustainable links between the source and the final receiver, and introducing incentives (financial and nonfinancial) to promote recycling and other support activities.

22 But there are 713 open dumpsites and 271 controlled dumpsites elsewhere in the country, most of them in region 7 (Central Visayas).

Box 3: Strategies for Hazardous Waste in the Medium-Term Philippine Development Plan 2004–2010

Establish a management system and facilities for toxic and hazardous wastes.Complete the inventory of toxic and hazardous wastes.Complete the registration of all establishments using toxic and hazardous wastes and closely monitor 500 companies using cyanide, mercury, asbestos, and other highly toxic chemicals like the polychlorinated biphenyls (PCBs).Initiate the establishment of the first facility for the treatment of toxic and hazardous wastes, especially for those located in economic zones.Establish a mechanism for the retrieval and disposal of millions of cell-phone batteries by 2007.Pursue efficient health-care waste collection in 197 accredited hospitals in Metro Manila and increase health-care waste collection and treatment outside Metro Manila by 40%.Conduct clean-up of former military bases in region 3 (about 50% of identified contaminated sites).

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Chapter 2: Background 61

The study also produced recycling guidelines for waste generators, dealers of recyclable materials, and recyclers, to maximize the domestic use of recyclable materials.

Creative recycling programs are in operation around the country. The Philippine Business for the Environment (PBE), with a leading commercial mall and the DENR, has organized a once-a-month “trash-to-cash” recycling market in branches of the mall. A residential subdivision south of Manila offers discount stubs in exchange for waste plastic and paper. The stubs can be used at a nearby McDonald’s or to pay the monthly association dues of residents.

Information about recycling technologies is available on the website of the Solid Waste Management Association of the Philippines, a nonprofit membership organization of solid waste practitioners from LGUs, national government agencies, NGOs, and the academe. The association also assists LGUs in particular in the technical aspects of solid waste management through training, the preparation of solid waste management programs, and waste analysis and characterization.

Climate Change

The Philippines was among the first countries to respond to the challenges posed by climate change. The Inter-Agency Committee on Climate Change, created by the Government in May 1991, coordinates activities and proposes policies related to climate change, and prepares the Philippine position at United Nations Framework Convention on Climate Change (UNFCCC) negotiations.

In March 2000, the Philippines submitted to the UNFCCC its Initial National Communication on Climate Change, containing comprehensive information about the country’s compliance with its commitments and its vulnerability to climate change.23 According to the report, the Philippines released 100,738 kilotons of CO2 equivalent into the atmosphere in 1994. This total represented the combined GHG emissions from the energy (49% of the total), agriculture (33%), industry (11%), and wastes (7%) sectors, and from the net uptake (sink) of GHGs from the land-use change and forestry (LUCF) sector.24 GHG emissions were projected to increase by almost 94% to 195,091 kilotons of CO2 equivalent by 2008, for an annual growth rate of

23 The Government is now preparing the Second National Communication, with the assistance of UNDP.

24 The national GHG total minus the LUCF contribution is 100,864 kilotons of CO2 equivalent. Activities and processes associated with the LUCF sector are estimated to sequester about 126 kilotons of CO2, a measly 0.1% of the national total.

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62 Country Environmental Analysis 2008: Philippines

about 4.8%. Because various subsectors were held constant at 1994 levels, this projection may be a conservative one (DENR 2000).

Several studies in the Philippines on a wide range of climate-change topics—epidemiological studies, sea-level changes, tropical cyclone intensity changes, and vulnerability assessments, among others—have been com-pleted, are ongoing, or are being planned. The Government’s Philippine Atmospheric Geophysical and Astronomical Services Administration is in the forefront of systematic observation of climate and weather patterns in the country.

The Government also continuously provides the policy framework and road map to guide the fulfillment of its Kyoto Protocol commitments. Plans and programs in this regard, as stated in the Initial National Communication on Climate Change, include sustainable development programs; systematic observation and research projects; education, training, and public awareness programs; vulnerability assessment of major sectors and other sectors; adapta-tion strategies; and mitigation strategies.

After the Kyoto Protocol was ratified in 2003, DENR was designated as the national authority for CDM, responsible for approving the country’s CDM projects. By February 2008, 37 projects with total estimated certified emission reductions of 995,940 tCO2e per year had been approved (Figure 5). Twenty-eight were biogas projects (animal waste, wastewater treatment, rice husk), two were hydropower and composting projects, and the rest were wind power, geothermal power, waste/gas/heat use, landfill gas recovery and use, and blended cement projects. Sixteen projects, with 481,863 tCO2e per year in certified emission reductions, had been registered with the CDM executive board. As of March 2008, the country ranked eighth globally in the number of projects registered.

Renewable Energy

As of December 2007, the country’s total installed generating capacity was 15,937 megawatts (MW). Coal-fired power plants, the majority of them in the Luzon grid, had the largest share at 26.4% (4,213 MW). Oil-based power plants accounted for 22.7% (3,616 MW); hydroelectric power plants, the main source of electricity in the Mindanao grid, for 20.6% (3,289 MW); natural gas–fired power plants in the Luzon grid, for 17.8% (2,834 MW); geothermal power plants, mostly in the Visayas grid, for 12.3% (1,958 MW); and other forms of renewable energy such as wind and solar, for only 0.2%.25

Aggregate dependable capacity in 2005 was 13,595 MW. This total was expected to reach 13,805 MW by 2006 and to add 3,917 MW by 2015—

25 www.doe.gov.ph/EP/Powerstat.htm.

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Chapter 2: Background 63

517 MW from committed power projects, and 3,400 MW from indicative power projects—to meet power requirements. The committed power projects include renewable energy projects like the Northern Luzon Wind Power Project, Phases I and II, which has a combined capacity of 38.3 MW; the 49 MW Northern Negros Geothermal Project; and the 20 MW Nasulo Geothermal Project. The indicative power projects include Talisay Bioenergy, Cabalian Geothermal, Dauin Geothermal, Villasiga Hydropower, Tagoloan Hydropower, Sibulan Hydropower, and Mindanao 3 Geothermal Project (Department of Energy 2006).

DOE foresees renewable energy growing by an average of 2.4% yearly in absolute terms in 2003–2013 and providing up to 40% of the country’s primary energy requirements. Biomass, micro-hydro, solar, and wind are expected to be the largest contributors, with an average share of 27.5%. Hydro and geothermal will make up the balance and continue to be a significant source of electric power.26

26 www.doe.gov.ph/ER/Renergy.htm.

Figure 5: CDM Projects with Letters of Approval, February 2008

CDM = Clean Development Mechanism.Source: www.cdmdna.emb.gov.ph

Wind power, 1 (3%)

Biomass (rice husk), 2 (5%)

Biomass (bagasse), 2 (5%)

Biogas (wastewater treatment), 8 (22%)

Geothermal power, 1 (3%)

Hydropower, 2 (5%)

Waste gas/Heat utilization, 1 (3%)

Landfill gas recovery and utilization, 1 (3%)

Methane avoidance (composting), 2 (5%)

Biogas (animal waste), 16 (43%)

Blended cement, 1 (3%)

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64 Country Environmental Analysis 2008: Philippines

An alternative scenario sets higher targets for renewable energy’s con-tribution to installed generating capacity. These targets assume improved programs and strategies, higher production, market-based industrial compe-tition, and the availability of new international financing schemes like CDM. Renewable energy–based capacity is expected to double to 9,147 MW by 2013. This means that more renewable energy–fueled power plants must be commissioned by 2013 to make up the difference.27

Environmental Emergencies

The Philippines has experienced major environmental emergencies in the past 5 years, some with long-term effects. Efficient implementation and enforcement of related laws could have prevented or mitigated these natural disasters.

Guimaras Oil Spill. The worst oil spill in the country’s history occurred in August 2006, when a motor tanker sank in Panay Gulf off Guimaras prov-ince, spilling more than 50,000 gallons of oil into the sea and polluting more than 1,000 ha of mangroves and 26 ha of the Taclong Island Marine Reserve. The environmental disaster affected 239 kilometers of coastline and dam-aged mangrove swamps, seaweed plantations, and coral reefs with important diversities. Marine scientists recorded a 65% drop in fish abundance in the surrounding waters.28 The incident not only created a major environmental disaster but also revealed the weakness of the country’s response to environ-mental emergencies because of lack of equipment, technical expertise, coher-ent policies, and institutional capacity and coordination.

Flooding and Landslides. In November 2004, flooding and landslides caused by typhoon in the provinces of Quezon, Aurora, and Nueva Ecija, killed nearly 1,000 persons and affected about 3 million others. Another typhoon in December 2004 triggered massive floods in northern and central Philippines, affecting an estimated 240,000 persons. Then in February 2006, after days of heavy rainfall, a landslide struck the village of Guinsaugon near the town of St. Bernard in Southern Leyte province, in the eastern Visayas. More than 1,000 went missing and 139 died. The landslide, estimated to be up to 9 meters deep in some areas and covering about 3 km2 (1.15 square miles), blocked the tributaries of a major river and caused flooding in nearby areas.

27 www.doe.gov.ph/ER/Renergy.htm.28 Philippine Daily Inquirer, 3 November 2007.

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Chapter 2: Background 65

Box 4: Strategies for Environmental Emergencies in the Medium-Term Philippine Development Plan 2004–2010

Mitigate the occurrence of natural disasters to prevent the loss of lives and properties.

Nonstructural measures

Complete the geo-hazard mapping of the remaining 13 regions.Conduct soil stability measures (e.g., reforestation and planting in river banks) for landslide-vulnerable areas.Ensure integration of disaster preparedness and management strategy in the development planning process at all levels of governance. This will be done through the following activities, among others: periodic risk assessments, updating of land-use policy based on the assessment, conduct of disaster management orientation and training among officials of local government units (LGUs) and concerned local bodies, institutionalization of community-based mechanisms for disaster management (e.g., inclusion of legitimate disaster management organization in disaster coordinating councils), and advocacy for the Strengthening the Philippine Disaster Management Capability bill.

••

The nationwide forest program launched by the Development Bank of the Philippines (DBP) in April 2005, in partnership with people’s organiza-tions, state universities and colleges, and provincial and municipal LGUs, should make such catastrophic events less likely. The program supports and encourages the reforestation of open areas by planting high-value fruit trees and other useful plant species, rehabilitates coastal areas by planting man-groves, and establishes tree parks to offset air pollution. In less than 2 years, the program had started 18 forest projects and planted useful plant and tree species on about 4,000 ha, providing better livelihood opportunities for some 2,500 poor families.

A TA project of the Government of Japan in September 2006 studied selected priority flood-risk areas throughout the Philippines and prepared flood mitigation plans. Multi-hazard mapping has also been started by the Government with UNDP funding, to guide planning and evacuation in high-risk areas, and measures to prevent non-structural disasters have been initiated by communities in the province of Camiguin.

MTPDP strategies for forestalling such natural disasters and coping with their occurrence are summarized in Box 4.

continued

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66 Country Environmental Analysis 2008: Philippines

Structural measures

Keep at the optimum the conveyance capacities of river channel floodways, drainage canals, esteros through riverbank protection, dredging or desilting, observance of river easements, relocation of informal settlers, proper disposal of garbage, and efficient maintenance in coordination with LGUs.Provide adequate flood control and drainage facilities in all flood and sediment disaster–prone areas to mitigate flooding, and rehabilitate and improve facilities. The priority flood management projects are as follows:

Mt. Pinatubo Hazard Urgent Mitigation IIMt. Pinatubo Hazard Urgent Mitigation IIIIloilo Flood ControlLower Agusan Flood Control Project Stage 1, Phase 2Bicol River Basin and Watershed ManagementAgno and Allied Rivers Flood ControlKalookan-Malabon-Navotas-Valenzuela (KAMANAVA) Flood ControlMetro Manila Flood Control Project–West of Manggahan FloodwayPasig–Marikina River Channel Improvement Project Phase IICagayan River Flood Control ProjectPanay River Flood Control ProjectLower Cotabato River Flood Control Project

–––––––

–––––

Box 4 continued

Box 5: Policy Agenda of the Minerals Action Plan

In recognition of the critical role of investments in the minerals industry for national development and poverty reduction, provide support mechanisms for a sustained mineral exploration program (including simplified procedures for the grant of mining tenements, responsive research and development priorities, and capability building for industry manpower).Institute clear, stable, and predictable investment and regulatory policies to facilitate investments in mining, leading to a prosperous minerals industry.Pursue value addition as a means of optimizing benefits from minerals by developing downstream industries to achieve greater productivity and efficiency.Promote small-scale mining as a formal sector of the minerals industry and as part of the development initiative for both downstream and upstream industries.

continued

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Chapter 2: Background 67

Chemical Spills. A hazardous waste transporter and the plastic manufactur-ing company whose chemical waste it was dumping into the Marilao River in Bulacan province were charged for violating the Toxic Substances and Hazardous and Nuclear Wastes Act (RA 6969) and Provincial Environmental Ordinance PO 95-01. Untreated domestic and industrial wastes from refin-eries, jewelry makers, tanneries, piggeries, and other manufacturing plants make the Marilao River one of the country’s dirtiest rivers, according to EMB monitoring reports. ADB is supporting a pilot activity to monitor water quality along the river and to minimize pollution by working with the municipalities of Marilao, Meycauayan, and Obando and the provincial government of Bulacan. With JICA funding, EMB is also working to demarcate the Marilao–Meycauayan River as a water quality management area (WQMA) under the CWA.

In February 2006, a chemical spill occurred in a school in Parañaque City when a student accidentally opened a beaker containing mercury,

Adopt efficient technologies to ensure the judicious extraction and optimum use of nonrenewable mineral resources to enhance sustainability.Make the protection of the environment a paramount consideration in mining operations, and include mitigation and progressive rehabilitation measures as integral components. Support decommissioning and final mine rehabilitation with the most appropriate environmental surety.Safeguard the ecological environmental sustainability of areas affected by mining operations (including biodiversity resources and small island ecosystems) to protect public welfare, safety, and environmental quality. Protect the rights of affected communities (including the rights of indigenous cultural communities, especially the requirement to obtain free and prior informed consent).Pursue mining operations within the framework of multiple land use and sustainable use of mineralized areas.Accord top priority to the remediation and rehabilitation of abandoned mines and sites to address the negative impact of past mining projects.Equitably share the economic and social benefits derived from mining among the various units of government as well as the affected communities.Vigorously pursue sustained information, education, and communication campaigns for the minerals industry, jointly with industry stakeholders, to enhance public awareness and respect for the rights of communities, and reach informed decisions on mining and related projects at both the national and the local levels.

Box 5 continued

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68 Country Environmental Analysis 2008: Philippines

exposing about 35 other students to toxic vapor. The problem pointed to the inadequacy of the emergency response, and the lack of capacity to monitor mercury and to clean up and decontaminate the site. School authorities were also largely unaware of the hazards of mercury and other toxic chemicals. The clean-up was costly and required the help of the United States Environmental Protection Agency.

Fish Kill. In 2002, the largest fish kill reported in the country occurred in Pangasinan. Total damage was estimated at $8.2 million. Before the inci-dent, there were recorded increases in ammonia (by 110%), nitrite (30%), nitrate (25%), phosphate (400%), TSS (222%), and chlorophyll A (140%) in area surface waters, as a result of the expansion of mariculture activities. Another fish-kill incident took place in Dalipuga, Iligan, that same year. In 2003, fish kill in Ilagan, Isabela, resulted in about $106,000 in damage (EMB 2007a). These incidents showed the Government’s institutional weak-nesses in responding to environmental emergencies. Besides being short of manpower and financial resources, it lacks proper response and coordination procedures.

Regional Environmental Concerns

Even as the country continues to focus on local environmental issues and problems, it is also active in regional environmental initiatives through the Association of Southeast Asian Nations (ASEAN), the Brunei Darussalam–Indonesia–Malaysia–Philippines East ASEAN Growth Area (BIMP-EAGA), and initiatives like the Sulu-Sulawesi marine eco-region, the Heart of Borneo, and the Coral Triangle Initiative.

In February 2001, the ASEAN Working Group on Multilateral Environmental Agreements collaborated with the United Nations University, the Global Environment Information Centre, and UNEP on a case study to look into the possibility of synergies and coordination among multilateral environmental agreements. The countries are sharing experiences in prepar-ing national implementation plans, adopting appropriate technologies for risk management and emergency response, establishing a proper institutional and legal framework for enforcement, increasing public awareness, and identify-ing capacity building needs.

The BIMP-EAGA cluster on natural resources is promoting coopera-tion in ecotourism; environmental awareness, and environmental resources development and conservation; forest development and conservation; forest fire management; policy development and implementation; research and development, and information and technical exchange; and human resources development.

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Chapter 2: Background 69

Box 6: Elements of Philippine Agenda 21

Philippine Agenda 21 (PA 21) is the country’s blueprint for sustainable development. It describes a path for individuals, families, households, and communities, and an action plan for each ecosystem (coastal/marine, freshwater, upland, lowland, and urban) and across ecosystems in consideration of the interaction of the various lifescapes and landscapes found in them. The path is grounded on respect and active advocacy for the empowerment of various groups in the society to manage the economy, critical resources, society and culture, politics and governance, and foreign relations.

PA 21 departs from traditional development thinking that emphasizes sector-based and macro concerns. It promotes harmony and achieves sustainability by emphasizing:

A scale of intervention that is primarily area-based; Integrated island development approaches where applicable, in recognition of the archipelagic character of the Philippines; and People and the integrity of nature. Because basic sectors have an important role to play in achieving equity and managing the ecosystems that sustain life, PA 21 promotes the strengthening of the roles, relationships, and interactions between and among stakeholders in government, civil society, labor, and business.

PA 21 envisions a better quality of life for all Filipinos through the development of a just, moral and creative, spiritual, economically vibrant, caring, diverse yet cohesive society characterized by appropriate productivity, participatory, and democratic processes, and living in harmony and within the limits of the carrying capacity of nature and the integrity of creation.

PA 21 was adopted on 26 September 1996, with the issuance of Memorandum Order 399 which identified the roles of the Philippine Council for Sustainable Development and each sector in the operationalization of PA 21. The action agenda is based on the imperatives of the current national situation and emerging landscape for sustainable development.

••

continued

Regulatory and Institutional Framework

Policy and Regulatory Framework

The Government’s activities in ENR management are guided by the Philippine Environmental Policy (1977) (Presidential Decree [PD] 1151), the Philippine Environment Code (1977) (PD 1152), the Philippine National Strategy for Sustainable Development (1989), and the National Action Plan for Sustainable Development (1996) (Philippine Agenda 21). The elements of Philippine Agenda 21 are summarized in Box 6.

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70 Country Environmental Analysis 2008: Philippines

Major Legal Instruments The commitment of the Government to environmental protection and ENR management is expressed in a comprehensive legal and regulatory regime for the sector.29

The following major ENR laws were passed in previous decades: the Fisheries Code (1998), the Forestry Code (1975), the Water Code (1976), the Pollution Control Law (1976), the Philippine Environmental Impact Statement System (1978), the Toxic Substances and Hazardous and

29 Environmental laws passed in the 1970s (under martial law) took the form of presidential decrees (PDs). After martial law, other laws, mostly in the form of republic acts (RAs), were passed. Government departments issue procedures and policies as authorized under department administrative orders (DAOs). The President’s Office also issues policy directions and administrative orders through executive orders (EOs).

Box 6 continued

PA 21 is a dynamic document that will continue to evolve as new challenges and opportunities emerge.

Local Agenda 21. PA 21 emphasizes the importance of localization— the formulation of a local sustainable development action agenda, and the establishment of local sustainable development councils to implement the agenda—as a strategy for its implementation. PA 21 sees that localization will ensure that sustainable development takes root in each region, province, city, and municipality.

On 25 January 1999, Memorandum Order No. 47 was issued by the Office of the President to strengthen the operationalization and localization of PA 21 and to monitor its implementation.

A number of regions have already formulated their own Local Agenda 21, serving as the region’s guide and springboard for the formulation by the local governments, regional line agencies, and all other entities of their respective sustainable development agendas.

Business Agenda 21. In 1998, the Philippine Business for Environment was commissioned to consolidate the various medium- and long-term initiatives of industry associations into an integrated plan, to be called Philippine Business Agenda 21 (BA 21). This was under the Private Sector Participation in Managing the Environment (PRIME) project of the Philippine Government. BA 21 was completed and released in May 2000.

Source: http://pcsd.neda.gov.ph.

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Chapter 2: Background 71

Nuclear Wastes Control Act (1990) (RA 6969), the NIPAS Act (1992), the Comprehensive Agrarian Reform Law (1987), the Indigenous Peoples Rights Act (1997), the Clean Air Act (1999) (RA 8749), the Agriculture and Fisheries Modernization Act (1997), and the Philippine Mining Act (1995). Major ENR laws in the past 10 years include the Ecological Solid Waste Management Act (2000) (RA 9003), the Wildlife Resources Conservation and Protection Act (2001) (RA 9147), the National Caves and Cave Resources Act (2001) (RA 9072), the Public Land Act (2002) (RA 9176), the Clean Water Act (2004) (RA 9275), and the Biofuels Act (2006) (RA 9367). Major ENR laws and regulations are listed in Appendix 2.

The Local Government Code (LGC) (RA 7160), although not an ENR law, has provisions pertinent to ENR laws and regulations. It delegates to provincial and municipal LGUs certain environmental protection functions of DENR including the adoption of forestland conservation measures, the preparation and approval of environmental protection ordinances and codes, the review of land-use plans and zoning ordinances, and the creation of ENR offices.

The LGC also requires all municipalities to rationalize their land man-agement plans and integrate them into the comprehensive land-use plan (CLUP) for their locality. In 1992, DENR issued Administrative Order 30 prescribing guidelines for the transfer and implementation of DENR forest management functions. Six years later, DENR, DILG, and the LGUs jointly released a manual of procedures for the devolution of forest management functions and stronger partnership between the LGUs and the DENR.

Major Environmental and Natural Resources Plans and ProgramsThe sector or agency strategies and plans for ENR management and protec-tion include the National Biodiversity Strategy and Action Plan (1997) and its 2002 update, the Philippine Biodiversity Conservation Priority-Setting Program (2001), the Key Biodiversity Areas approach, the National Forestry Action Plan (1995), the Master Plan for Water Resources Management (1998), the National Air Quality Improvement Framework and Action Plan as part of the implementing rules and regulations of CAA (1999), the Renewable Energy Policy Framework (2003), the National Implementation Plan for the Stockholm Convention on Persistent Organic Pollutants (2006), the National Integrated Coastal Management Program (2006), and the River Basin Management and Development Master Plan (2008).

Other sector or agency strategies and plans are the IWRMF and the IWQMF, CWA requirements slated for adoption; the medium-term Integrated Archipelagic Development Plan to be prepared as part of the implementation of the Philippine sustainable archipelagic development framework; and the Framework Plan for Environment and Natural Resources

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72 Country Environmental Analysis 2008: Philippines

Management. The CWA requires two other major programs: a National Sewerage and Septage Management Program (NSSMP), and a National Research and Development Program for the Prevention and Control of Water Pollution. NSSMP preparation was initiated by the Department of Public Works and Highways (DPWH), through an interagency committee under the Local Waterworks Utilities Administration (LWUA), but the research and development program has not been started.

Executive orders (EOs) signed by the President include EO 318 (Promoting Sustainable Forest Management in the Philippines) (2004), updating the Revised Forestry Code of 1975;30 EO 533 (2006), providing for the adoption of integrated coastal management (ICM) as a national strategy and the development of a national ICM program; EO 510 (2006), creating the River Basin Control Office (RBCO) under the DENR; EO 578 (2006), establishing the national policy on biodiversity; and EO 406 (1997), creating the PEENRA system.

DENR priorities follow the major government frameworks, particu-larly MTPDP, the Philippine Strategy for Sustainable Development the President’s 10-Point Agenda, and the MDGs.

International and Regional Commitments The Philippines has signed international and regional environmental agree-ments on biodiversity, hazardous chemicals and pesticides, ODS, persistent organic pollutants, hazardous wastes, climate change, trade, and the environ-ment (Box 7) and has fulfilled its initial obligations through donor financing.

The DENR is the focal point for these international commitments: the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal (1989), the Montreal Protocol on Substances that Deplete the Ozone Layer (1987), UNFCCC (1994), the Rotterdam Convention on Prior Informed Consent (2004), the International Tropical Timber Agreement (1983), the Convention on Biological Diversity (1992), CITES (1973), the Convention on the Conservation of Migratory Species of Wild Animals (1983), the Ramsar Convention on Wetlands of International Importance (1971), and the Convention Concerning the Protection of the World Cultural and Natural Heritage (World Heritage Convention) (1972).

30 EO 318 cites the following guiding principles: delineation, classification, and demarcation of stateland forests; holistic, sustainable, and integrated development of forestry resources; community-based forest conservation and development; incentives to enhance private investments, economic contribution, and global competitiveness of forest-based industries; proper valuation and pricing of forestry resources and financing of SFM; and institutional support for SFM.

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Chapter 2: Background 73

Box 7: International and Regional Environmental Agreements

Convention Date Ratified

Biodiversity

1972 World Heritage Convention 1992 Convention on Biological Diversity (CBD) 1973 Convention on International Trade in Endangered

Species of Wild Fauna and Flora (CITES) 1979 Convention on the Conservation of Migratory

Species of Wild Animals (CMS)1971 Convention on Wetlands (Ramsar Convention) 2000 Cartagena Protocol on Biosafety 2004 Sulu-Sulawesi Marine Eco-region (SSME)

Conservation Plan

1972October 1993 August 1981

March 1993

November 1994 May 2000

2004

Marine Affairs

1982 United Nations Convention on the Lawof the Sea (UNCLOS)

International Convention for the Prevention of Pollution from Ships (MARPOL)

May 1984

1973, 1978

Global Climate

Montreal Protocol for Phaseout of Ozone-Depleting Substances

Vienna Convention London Amendment United Nations Framework Convention on Climate

Change Kyoto Protocol United Nations Convention to Combat Desertification

March 1991

17 July 1991 August 1993 August 1994

April 1998 10 February 2000

Hazardous Wastes and Materials

Basel Convention on the Control of Transboundary Movement of Hazardous Wastes and their Disposal

Stockholm Convention on Persistent Organic Pollutants

Rotterdam Convention on the Prior Informed ConsentProcedure for Certain Hazardous Chemicals and

Pesticides in International Trade

October 1993

May 2001

September 1998

International Cultural and Historical Resources

Convention Concerning the Protection of the World Cultural and Natural Heritage

May 1985

continued

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74 Country Environmental Analysis 2008: Philippines

Convention Date Ratified

Forestry

International Tropical Timber Agreement November 1983

ASEAN Regional Agreements on Transnational Issues

Cebu Resolution on Sustainable DevelopmentYangon Resolution on Sustainable DevelopmentASEAN Agreement on Transboundary Haze Pollution Jakarta Declaration on Environment and DevelopmentBandar Seri Begawan Resolution on Environment and

DevelopmentSingapore Resolution on Environment and

DevelopmentThe Kuala Lumpur Accord on Environment and

DevelopmentJakarta Resolution on Sustainable DevelopmentAgreement on the Conservation of Nature and Natural

Resources ASEAN Heritage Parks and Reserves

Bangkok Declaration on the ASEAN EnvironmentManila Declaration on the ASEAN Environment

20062003200219971994

1992

1990

19871985

1984(reiterated

in 2003)19841981

ASEAN Working Groups on Environment

Working Group on Multilateral Environmental Agreements Working Group on Nature Conservation and Biodiversity Working Group on Coastal and Marine Environment Working Group on Environmentally Sustainable Cities

Box 7 continued

The Basel Convention recognizes that the transport of hazardous wastes should conform to relevant international conventions. It also requires “envi-ronmentally sound disposal” of hazardous wastes (RA 6969, RA 8749). As of 2007, the EMB had registered about 6,929 industries and 825 hospitals as hazardous waste generators (HWGs).

The Montreal Protocol calls for a 50% reduction in chloroflourocarbons (CFCs) by 2000 and a complete phaseout by 2010 (Figure 6 shows the pattern of CFC consumption in the country). It also imposes measures to control the manufacture, export, and import of ODS. Compliance with this international commitment is prescribed in RA 6969 and RA 8749. As of 2006, imports of

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Chapter 2: Background 75

substances with ozone-depleting potential (ODP) had been reduced by 55% of the baseline level to 1,509 ODP MT.

UNFCCC hopes to “stabiliz[e]…greenhouse gas concentrations in the atmosphere [to] prevent dangerous anthropogenic interference with the cli-mate system.” In the Philippines this objective is being managed through RA 8749. CDM, established under article 12 of the Kyoto Protocol, is being implemented in the Philippines through the DENR.

The Philippines, a founding member of ASEAN, helped formulate the ASEAN Institutional Framework for Environmental Cooperation. It is also a member of the ASEAN Senior Officers on Environment, which meets yearly to plan, implement, and monitor regional environmental programs and activi-ties. Participants at the 10th ASEAN Ministerial Meeting on the Environment in November 2006, among other things, launched the Third ASEAN State of the Environment Report 2006; expressed full support for the promotion of biodiversity conservation by the ASEAN Centre for Biodiversity, hosted by the Philippines; agreed to speed up the signing of the ASEAN Framework Agreement regarding access to biological and genetic resources and equi-table sharing of the benefits from their use; and recognized the importance of strengthening national and regional efforts to enforce environmental laws against the illegal trade in wildlife, illegal logging, and other issues.

Figure 6: CFC Consumption, 1995–2005

CFC = chlorofluorocarbon.Source: Environmental Management Bureau, Department of Environment and Natural Resources.

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

01995

3,42

4.92

3,02

9.37

2,63

7.63

2,03

6.59

2,09

0.79

2,90

6.31

2,04

9.3

1,26

3.39

1,42

2.4

1,48

5.34

1,04

9.5

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

3018 3018 3018 3018 3018 3018

1509 1509

453 453 453

0

Total CFCs Montreal Protocol

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76 Country Environmental Analysis 2008: Philippines

The Philippines, through the DENR, also hosts the UNDP regional program Partnerships in Environmental Management for the Seas of East Asia (PEMSEA), which has evolved from a regional project into a regional operating mechanism since it started in 1994.

Another regional cooperation network, BIMP-EAGA, was launched in Davao City in March 1994 to realize socially acceptable and sustainable economic development leading to full participation in ASEAN growth. To increase trade, investments, and tourism in the subregion—its immediate goal—it is facilitating the movement of people, goods, and services and the development of vital infrastructure, and coordinating the management of ecosystems and common resources for sustainable development. An ADB investigative study in 1996 identified a wide range of economic complemen-tation opportunities, which could transform BIMP-EAGA into a major des-tination in ASEAN for investments in agro-industry, natural resource–based manufacturing, and tourism. The study produced a development strategy with more than 150 policy, program, and project initiatives to enable the subregion to achieve its full potential.

The Coral Triangle Initiative (CTI) addresses concerns related to the sustainable development of coastal and marine resources and food security in six countries—Indonesia, Malaysia, Papua New Guinea, the Philippines, the Solomon Islands, and Timor-Leste. Comprising areas with 500 or more spe-cies of coral,31 53% of the world’s coral reefs, 3,000 fish species, and the great-est extent of mangrove forests of any region in the world, the Coral Triangle, sometimes referred to as the “Amazon of the Seas,” is the epicenter of marine life abundance and diversity on the planet. The CTI plan of action was approved by the six countries in May 2009 in Manado, Indonesia. As executing agency for the Global Environment Facility (GEF) ADB is supporting CTI national and regional action plans by providing regional TA ($12.1 million for Coastal and Marine Resources Management in the Coral Triangle, and $1.2 million for Enhancing Regional Cooperation and Knowledge Sharing) and by mainstreaming biodiversity concerns aligned with CTI objectives in the forthcoming Integrated Natural Resource Management Project (GEF grant of $3.5 million) and Agusan River Integrated Basin Management Project (GEF grant of $3.5 million).

Poor donor coordination and replication of successful donor-driven proj-ects are long-standing concerns despite all these high-level engagements.

31 Some areas have 600 species, or more than 75% of all known coral species.

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Chapter 2: Background 77

Institutional Framework

Department of Environment and Natural ResourcesDENR, through EO 192, the 1987 act reorganizing the department, is the primary government agency responsible for the conservation, management, development, and proper use of the country’s biological resources, natural physical endowments, and major natural assets. Among other functions, it licenses and regulates all natural resources use; manages protected areas; assesses environmental impact; controls pollution and decides pollution cases; manages toxic chemicals and hazardous wastes; settles mining conflicts; con-ducts ecosystems research and technology transfer; carries out information, education, and communication campaigns; and implements international and regional ENR agreements. The various laws on ENR management (see Policy and Regulatory Framework section above), including international agreements, are the legal sources of the DENR mandate.

Four DENR bureaus—FMB, the Land Management Bureau, the Ecosystems Research and Development Bureau, and PAWB—draft policies, set standards, and provide technical services. EMB was made a line bureau under the CAA (1999), while the Mines and Geosciences Bureau (MGB) became a line bureau through the Philippine Mining Act (1995).32 The agencies attached to DENR are the Laguna Lake Development Authority (LLDA), NAMRIA, the National Resources Development Corporation, the Natural Resources Mining Development Corporation, NWRB, and the Philippine Forest Corporation. DENR also has two specialized offices, the Coastal and Marine Management Office and RBCO.

Sixteen regional offices, one for each of the 16 administrative regions except ARMM implement ENR laws, policies, plans, programs, projects, rules, and regulations. Provincial ENR officers (PENROs) in the capital towns of all provinces and the community ENR officers (CENROs) under them (except in ARMM, which has its own PENROs) are part of the DENR regional offices. There are 73 PENROs, one for almost every province, and 180 CENROs, each covering several municipalities in provinces with PENROs.

32 The passage of the Mining Code in 1995 gave MGB direct charge of the administration and disposition of mineral lands and mineral resources, and the conduct of geological, mining, metallurgical, chemical, and other research as well as geological and mineral exploration surveys. MGB regional directors gained exclusive jurisdiction over the safety inspection of all mining installations. EMB, on the other hand, far from being transformed into a line bureau, continues to implement the same laws and regulations, and has undergone little change in structure and staffing pattern.

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78 Country Environmental Analysis 2008: Philippines

Box 8 presents the mandates and broad functions of the DENR bureaus, attached agencies, and offices; Box 9, the programs and projects of DENR in FY2008; and Appendix 3, the official development assistance (ODA) proj-ects in the ENR sector handled by DENR and its agencies and bureaus.

continued

Box 8: Bureaus, Attached Agencies, and Offices of the Department of Environment and Natural Resources

Mines and Geosciences Bureau (MGB)

MGB is one of two line bureaus of the Department of Environment and Natural Resources (DENR). It is mandated to advise the DENR secretary on matters pertaining to geology and mineral resources exploration, development, and conservation.

Under Executive Order (EO) 192, it recommends policies, regulations, and programs pertaining to mineral resources development and geology; it oversees the development and exploitation of mineral resources in the seas within the country’s jurisdiction; it advises the DENR secretary on the granting of mining rights and contracts over areas with metallic and nonmetallic resources; it advises the regional offices on the effective implementation of mineral development and conservation programs and geological surveys; and it develops and promulgates standards and operating procedures for mineral resources development and geology.

Under the Philippine Mining Act of 1995 (Republic Act [RA] 7942): it is directly in charge of the administration and disposition of the country’s mineral lands and mineral resources; it undertakes geoscientific surveys and researches in land and marine geology, mining, mine environment, metallurgy, mineral economics, and mine geodetic surveys; it recommends to the secretary the granting of mineral agreements and endorses to the secretary, for the President’s approval, the granting of financial or technical assistance agreements; it provides laboratory and other technical services to the public and other government entities; it provides technical assistance to local government units in their devolved functions of small-scale mining and quarry/sand and gravel mining; it provides staff support and technical advice to the office of the secretary on mining and geology matters; and it acts as secretariat to the Mines Adjudication Board.

Environmental Management Bureau (EMB)

The core mandate of EMB is to advise the DENR secretary on matters relating to environmental management, conservation, and pollution control.

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Chapter 2: Background 79

Box 8 continued

It recommends possible legislation, policies, and programs for environmental management and pollution control; advises the regional offices in the efficient and effective implementation of policies, programs, and projects for effective and efficient environmental management and pollution control; formulates environmental quality standards; recommends rules and regulations for environmental impact assessments and provides technical assistance in their implementation and monitoring; formulates rules and regulations for the proper disposition of solid wastes and toxic and hazardous substances; advises the secretary on the legal aspects of environmental management and pollution control, and assists in the conduct of public hearings in pollution cases; provides secretariat assistance to the Pollution Adjudication Board; coordinates interagency committees that prepare the State of the Philippine Environment Report and the National Conservation Strategy; and assists the regional offices in the formulation and dissemination to the public of information on environmental and pollution matters.

Under the Ecological Solid Waste Management Law (RA 9003), EMB is tasked to provide secretariat support to the National Solid Waste Management Commission.

The Clean Air Act (RA 8749) made EMB into another line bureau of the DENR, tasked to implement the law on behalf of the DENR. Among its functions in this regard are to prepare an annual National Air Quality Status Report; formulate the Integrated Air Quality Improvement Framework; formulate and implement an air quality control action plan; designate airsheds; designate areas where specific pollutants have already exceeded ambient standards as non-attainment areas; review, revise, and publish annually a list of hazardous air pollutants with corresponding ambient guideline values and standards; design, impose, and collect regular emission fees from dischargers as part of the emission permitting system; administer the Air Quality Management Fund; issue permits for the prevention and abatement of air pollution; review, revise, and publish emission standards to further improve the emission standards for stationary sources of air pollution; and phase out ozone-depleting substances.

Under the Clean Water Act of 2004 (RA 9275) (CWA), EMB provides staff support to DENR in the implementation of the CWA; develops procedures to relate current or projected water quality guidelines for the receiving water bodies with total pollution loadings from various sources; identifies sources of water pollutants in designated non-attainment areas, including pollutants that are naturally occurring in the area; coordinates with and provides technical assistance to local government units (LGUs) in incorporating programmatic environmental impact assessments (EIAs) in local land use plans and area development plans; coordinates with the National Water Resources Board (NWRB) and other relevant agencies in the classification of groundwater

continued

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80 Country Environmental Analysis 2008: Philippines

sources; in coordination with the NWRB and other government agencies, and upon prior public hearing, reviews, revises, and publishes every 10 years the classification or reclassification of Philippine waters according to their potential beneficial use; heads the task force that is drafting appropriate incentives for the reduction or elimination of wastewater discharge; and, through its regional offices, decides on motions for reconsideration regarding the granting of effluent discharge permit for agricultural purposes, adopts a system of scheduling for the expiration and renewal of discharge permits, evaluates proposed measures (including self-monitoring reports) submitted by permittees that cannot comply with conditions of the wastewater discharge permit so that they can comply with the conditions, and validates the self-monitoring reports.

With regard to the Philippine Environmental Impact Statement (EIS) System (Presidential Decree 1586), the EIS-related functions of EMB are to determine whether a project or a program is covered by the Philippine EIS System and should thus be covered by an environmental compliance certificate (ECC) before implementation; determine the scope of the EIS study to be required for a specific type of project in a specific location as a requirement for the processing of ECC applications; recommend whether to issue or to deny the issuance of the ECCs or certificates of noncoverage after review and assessment; monitor compliance of projects with ECCs, environmental management plans, and the project design; and formulate policies for the improvement of the implementation of the Philippine EIS system.

EMB also acts as the implementing arm of DENR in the exercise of its functions, powers, and responsibilities in the implementation of the Toxic Substances and Hazardous and Nuclear Wastes Control Act of 1990 (RA 6969). Its functions in this regard include maintaining an updated Philippine Inventory of Chemicals and Chemical Substances that are being manufactured or used in the country; requiring the testing of chemical substances and mixtures that present unreasonable risk or injury to health or to the environment before they are manufactured or imported for the first time; requiring the testing of chemical substances and mixtures that are being manufactured or processed if there is reason to believe that they pose unreasonable risk or injury to health and the environment; evaluating the characteristics of chemicals that have been tested to determine their toxicity and the extent of their effects on health and the environment; inspecting any establishment in which chemicals are manufactured, processed, stored, or held before or after their commercial distribution and making recommendations to the authorities; confiscating or impounding chemicals that do not fall within the standards set in these rules and regulations; monitoring and preventing the entry into the country, even in transit, of hazardous and nuclear wastes; and issuing permits or authorization before the transport, storage, or disposal of hazardous wastes.

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Chapter 2: Background 81

Forest Management Bureau (FMB)

FMB recommends to the DENR the policies and programs for the effective protection, development, occupancy, management, and conservation of forest lands and watersheds.

Its specific functions are to recommend policies and programs for the effective protection, development, occupancy, management, and conservation of forestlands and watersheds (including grazing and mangrove areas), the reforestation and rehabilitation of critically denuded and degraded forest reservations, the improvement of water resource use and development, the protection of ancestral lands as well as wilderness areas and other natural reserves, the development of forest plantations (including those for rattan, bamboo, and other valuable non-timber forest resources), the rationalization of the wood-based industries, and the regulation of the use and exploitation of forest resources (including wildlife) to ensure continued supply of forest goods and services; advise the regional offices in the implementation of the above policies and programs; develop plans, programs, operating standards, and administrative measures to promote the FMB’s objectives and functions; assist in the monitoring and evaluation of forestry and watershed development projects to ensure efficiency and effectiveness; and undertake studies on the economics of forest-based industries, including local, national, and international supply and demand trends, identifying investment problems and opportunities in various areas.

Land Management Bureau (LMB)

LMB is mandated to advise the DENR secretary on matters pertaining to rational land classification, management, and disposition. Its main functions are to recommend policies and programs for the efficient and effective administration, survey, management, and disposition of alienable and disposable lands of the public domain and other lands outside the responsibilities of other government agencies, such as reclaimed areas and other areas not needed for or are not being used for the purposes for which they have been established; issue standards, guidelines, regulations, and orders to enforce policies for the maximization of land use and development; and assist the secretary as executive officer charged with carrying out the provisions of the Public Land Act, with direct executive control over the survey, classification, lease, sale, or any other forms of concessions or disposition and management of the lands of the public domain.

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82 Country Environmental Analysis 2008: Philippines

DENR, through LMB and the DENR regional offices, is also mandated to administer, survey, manage, and dispose of alienable and disposable lands and other government lands not placed under the jurisdiction of other government agencies.

Ecosystems Research and Development Bureau

The bureau formulates and recommends an integrated research program relating to Philippine ecosystems and natural resources; generates technologies and provides scientific assistance in research and development for technologies relevant to the sustainable use of Philippine ecosystems and natural resources; and coordinates all technological researches undertaken by the field offices, assesses and translates recommendable findings, and disseminates the findings.

Protected Areas and Wildlife Bureau (PAWB)

PAWB formulates and recommends policies, guidelines, and rules and regulations for the establishment and management of integrated protected area systems (IPAS) such as national parks, wildlife sanctuaries and refuges, marine parks, and biospheric reserves; prepares up-to-date listings of endangered Philippine flora and fauna and recommends a program of conservation and propagation for these; recommends policies, guidelines, and rules and regulations for the preservation of biological diversity, genetic resources, and endangered Philippine flora and fauna; assists the DENR secretary in monitoring and assessing the management of the IPAS; and provides technical assistance to the DENR regional offices in the implementation of programs for these areas.

National Mapping and Resource Information Authority (NAMRIA)

This central mapping agency is mandated to serve the needs of the line services of the DENR and other government offices with regard to information and researches. It is tasked to expand its capability in the production and maintenance of maps, charts, and similar photogrammetry and cartography materials. NAMRIA conducts research on remote sensing technologies such as satellite imagery analysis, airborne multi-spectral scanning systems, and side-looking airborne radar; provides remote sensing services and vital data on the environment, water resources, and agriculture and other information needed by other government agencies and the private sector; integrates all techniques of producing maps from ground surveys to various combinations of remote sensing techniques in a cost-effective and acceptable manner; and integrates geographic and related information to facilitate access to and analysis of data and their transformation into useful information for resource policy formulation, planning, and management.

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As the central depository and distribution facility for natural resources data in various forms, such as maps, statistics, text, and charts, it is likewise mandated to operate information services and networks to facilitate natural resource information transfer, sharing, access, and dissemination in all regions and provinces of the country; establish a nationwide geodetic network of control points that serves as a common reference system for all surveys in the country, and conduct hydrographic and coastal surveys to produce the hydrographic and nautical charts vital to sea and water travel as well as the exploitation of our marine resources; formulate and implement a nationwide development program in aerial photography, cartography, and remote sensing mapping activities; establish and implement technical standards and quality specifications for map production and reproduction; and provide photogrammetry, cartographic, and remote sensing mapping services to accelerate the development of a comprehensive data bank and information systems for base maps and charts.

Natural Resources Development Corporation (NRDC)

NRDC is the corporate arm of the DENR. It is responsible primarily for promoting natural resource development and conservation. As provided in EO 192, NRDC promotes the enhancement of the forest renewal rate through intensified industrial tree plantation promotion including the provision of incidental services such as assistance with capital, credit facilities, marketing, and management.

Specifically, NRDC is directly involved in pioneering but potentially viable production, use, and marketing ventures or projects using new and innovative technologies, systems, and strategies such as but not limited to stumpage sales systems, industrial forest plantations or logging operations, and rattan tissue culture, while avoiding activities that compete with the private sector except in specific cases where the revenues of NRDC are earmarked for a specific local developmental or social service; and it finances natural resource development projects undertaken by the private sector such as industrial tree plantations, agro-forestry, small-scale mining, and retooling of the natural resource–based processing industries to improve their efficiency and competitiveness, and to discharge these functions effectively, it is authorized to generate funds through debt instruments from various sources, and innovative income-generating strategies.

National Water Resources Board (NWRB)

In 2002, under EO 123, NWRB was transferred to DENR after its reorganization. NWRB is mandated to regulate the extraction and use of freshwater resources.

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84 Country Environmental Analysis 2008: Philippines

NWRB implements the provisions of the Water Code of the Philippines (PD 1067). It regulates and controls the use, exploitation, development, conservation, and protection of all water resources.

More specifically, the NWRB issues, suspends, revokes, and approves the transfer of water permits for the appropriation and use of waters; declares waters not previously appropriated exempt from appropriation; promulgates rules and declares the existence of control areas for the coordinated development, protection, and use of ground and surface waters; establishes minimum stream flows for rivers and streams and minimum water levels for lakes to protect the environment, control pollution, facilitate navigation, prevent salt damage, and promote general public use; issues permits for the development of streams, lakes, and springs for recreational purposes; issues permits for the drilling of wells; issues rules and regulations for reservoir operations; approves the transfer of water between river basins; coordinates data collection, research, and manpower development; imposes penalties for administrative violations; imposes and collects reasonable fees or charges for water resource development; approves rules and regulations prescribed by other government agencies for the use, exploitation, development, control, conservation, and protection of water resources; and adjudicates all related disputes.

The NWRB is also mandated, under the Clean Water Act (RA 9275), to designate water quality management areas, in coordination with DENR.

Laguna Lake Development Authority (LLDA)

Attached to the DENR for policy and program coordination, LLDA establishes and enforces water quality standards for industrial, agricultural, and municipal use; issues and revokes permits for the use of surface waters within the lake region; approves development plans proposed by LGUs, private persons, or enterprises; collects fees for all beneficial use of Laguna Lake resources; and compels compliance with water quality standards.

Natural Resources Mining Development Corporation (NRMDC)

NRMDC is primarily tasked to do business, particularly the business of exploring, developing, mining, smelting, producing, transporting, storing, distributing, exchanging, selling, disposing of, importing, exporting, trading, and promoting gold, silver, copper, iron, and all kinds of mineral deposits and substances.

Philippine Forest Corporation

The Philippine Forest Corporation was created in late 2004 to handle special reforestation projects such as the planting of jatropha, a species that can be used to produce bio-diesel.

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Chapter 2: Background 85

River Basin Control Office (RBCO)

Through EO 510 signed on 5 March 2006, RBCO was created to prepare an Integrated River Management and Development Master Plan; promote equitable access to potable water, efficient distribution of water resources (through a reduction in water losses in irrigation), and effective use of water resources (through increased hydropower efficiency and lower flood incidence); rationalize the various river basin projects such as the Mt. Pinatubo Hazard Urgent Mitigation, Iloilo Flood Control, Lower Agusan River Flood Control, Bicol River Basin and Watershed Management, Agno River and Allied Rivers Flood Control, Kalookan-Malabon-Navotas-Valenzuela (KAMANAVA) Flood Control, and the Pasig River Rehabilitation Commission; develop a master plan for flood control for the river basin projects; and rationalize and prioritize reforestation in watersheds.

DENR Regional Offices

The regional offices are expected to implement laws, policies, plans, programs, projects, and rules and regulations of DENR to promote the sustainability and productivity of natural resources, social equity in natural resource utilization, and environmental protection; deliver efficient and effective services; coordinate with regional offices of other departments, offices, agencies in the region, and local government units in the enforcement of natural resource conservation laws and regulations, and in the formulation and implementation of natural resources programs and projects; recommend and implement approved programs and projects for forestry, minerals, and land management and disposition; conduct a comprehensive inventory of natural resources in the region and formulate regional short- and long-term development plans for the conservation, use, and replacement of natural resources; prepare a regional budget in conformity with the priorities established by the regional development councils; supervise the processing of natural resources products, grade and inspect minerals as well as lumber and other wood processed products, and monitor the movement of these products; and conduct field researches for appropriate technologies for various projects.

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86 Country Environmental Analysis 2008: Philippines

Box 9: FY2008 Programs and Projects of the Department of Environment and Natural Resources

Forest Management

Management of forestlands and forest resources; forest restoration and rehabilitation in 140 priority watersheds; forest protection; community-based forestry program; soil conservation and watershed management; forest boundary delineation and use allocation; Project on Forestland Management (ProFORM), Community-Based Mangrove Forest Management Project.

Land Management

Management, administration, and disposition of alienable and disposable lands and other lands not placed under the jurisdiction of other government agencies; land surveys; survey of foreshore areas, reservations, patrimonial properties, and other lands covered by the Comprehensive Agrarian Reform Program; field network survey using global positioning system to establish new geodetic control network; Land Administration and Management Project II.

Protected Areas and Wildlife Management

Identification, delineation, and management of areas under the National Integrated Protected Areas System; operation and maintenance of the Ninoy Aquino Parks and Wildlife Center in Quezon City; development and rehabilitation of Hinulugang Taktak National Park in Antipolo, Rizal; development and rehabilitation of the Mt. Apo National Park; Philippine Eagle Conservation Project; Pawikan Conservation Project; Tamaraw Conservation Project; operation and maintenance of the Crocodile Farm Institute in Irawan, Palawan; biodiversity conservation; tarsier conservation.

Ecosystems Research and Development

Coordination, monitoring, and evaluation of environmental and natural resources–related programs; pilot plantation and establishment of selected forest species; management of coastal and marine resources; Integrated Coastal Resources Management Project.

Environmental Management

Rationalization of environmental standards and environmental compliance certificate coverage; implementation of comprehensive air pollution control policy; implementation of the Clean Water Act; technical assistance to local

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Chapter 2: Background 87

government units (LGUs) nationwide in the implementation of the Ecological Solid Waste Management Act; expansion of recycling of waste products; encouragement of LGU disposal of residuals in sanitary landfills with materials recovery facilities; regulation of priority chemicals; inventory and formulation of a national implementation plan for the 12 persistent organic pollutants; technical assistance to hospitals nationwide in the proper handling and disposal of health-care wastes; negotiations with the private sector in preparations for the development of a model integrated treatment facility.

Mineral Lands Administration

Mining industry development; mineral investment promotion; assessment and clean-up of abandoned or inactive mines; communication plan for mineral development.

Geoscience Development

Geohazard survey and assessment; geologic mapping.

National Mapping and Resource Information Authority (NAMRIA) Operations

Hydrographic surveys and nautical charting program; national mapping program; national spatial data infrastructure development program.

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Laguna Lake Development AuthorityLLDA was created in 1966 as a quasi-government agency to direct and pro-mote sustainable development in the Laguna de Bay Region (LDBR). Its regulatory and law enforcement functions cover environmental management, particularly water quality monitoring, natural resources conservation, and community-based natural resources management. LLDA implements the environmental user fee system (EUFS), manages the lake zone and its shore, and rehabilitates rivers. Though attached to DENR for policy coordination, the agency funds its programs and activities from its own revenues.

In water pollution control and CWA enforcement, LLDA has jurisdiction over Laguna and Rizal provinces; Tagaytay City and the towns of Carmona, Gen. Mariano Alvarez, and Silang in Cavite; Tanauan City and the towns of Malvar and Sto. Tomas in Batangas; Lukban in Quezon; and several cities and municipalities in Metro Manila (Caloocan, Manila, Marikina, Muntinlupa, Pasay, Pasig, Pateros, Quezon, and Taguig cities).

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88 Country Environmental Analysis 2008: Philippines

In 2004, LLDA was authorized by the DENR secretary to accept and process applications for environmental compliance certificates (ECCs) for selected projects in the LDBR, subject to confirmation by the secretary.

Subic Bay Metropolitan AuthorityThe Subic Bay Metropolitan Authority (SBMA) was created under the Bases Conversion and Development Act (1992) (RA 7227) to protect, maintain, and develop virgin forests within the Subic Bay Freeport Zone that had been proclaimed national parks and were subject to a permanent total log ban, and to adopt and enforce pollution control measures in all areas within its terri-tory. SBMA was to implement the rules and regulations of the DENR and other government agencies directly involved in the above functions and create an Ecology Center for that purpose.33

Years of continuing conflict between DENR and SBMA in the imple-mentation of environmental laws and regulations came to an end in 2005, when the Court of Appeals upheld DENR’s authority to exercise its regula-tory powers within the Subic Bay Freeport Zone. DENR and SBMA signed a memorandum of agreement (MOA) empowering the DENR to visit all industrial establishments, or “locators,” operating within the zone and com-pel them to meet its environmental standards. DENR was given the lead role in processing and approving ECC applications for new locators at the zone, at SBMA’s recommendation. DENR would also review and validate the 300 or so ECCs issued earlier by the SBMA Ecology Center. SBMA, for its part, agreed to adopt DENR rules, regulations, and orders for process-ing EIS applications and to monitor compliance with DENR environmental standards through its Ecology Center.

Local Government UnitsLGUs are tasked with formulating municipal environment codes and forest and coastal management plans for implementing environment-related pro-grams and activities. The most recent environmental law, CWA, also made LGUs jointly responsible, together with the national Government, for man-aging and improving water quality within their territorial jurisdictions. The DENR was to devolve some aspects of water quality management and regu-lation, including permit issuance, monitoring, and imposition of administra-tive penalties, “when the LGU has demonstrated its readiness and technical capability to undertake such functions.”

33 Implementing Rules and Regulations, RA 7227, the Bases Conversion and Development Act (1992). The freeport zone is within the 6,332 ha Subic Watershed and Forest Reserve, which was declared a protected area by Presidential Proclamation 926 (1992) and therefore automatically placed under DENR’s jurisdiction by virtue of the NIPAS Act (1992) (RA 7586).

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Chapter 2: Background 89

Philippine Council for Sustainable DevelopmentThe Philippine Council for Sustainable Development reviews Philippine commitments to sustainable development principles made at the United Nations Conference on Environment and Development and ensures their implementation in cooperation with the Department of Foreign Affairs, the Office of the United Nations Commission on Sustainable Development, and other international organizations; sets guidelines and mechanisms for the practical use, particularly in the MTPDP, of the sustainable development principles embodied in the Rio Declaration and the Philippine Agenda 21; directs through policy reforms, programs, and new legislation the response to issues and the course of future actions on the environment and sustainable development; and develops national sustainability plans.34

Other National Government AgenciesAmong the environment-related tasks of other national government agencies, the Department of Agriculture is concerned with coastal and marine manage-ment, soil and water use and protection, and fertilizer and pesticide use; the Department of Health, with environmental effects on health; the Department of Agrarian Reform, with sustainable farming, to improve land tenure; the Department of Energy, with the reduction of air pollution from fossil fuels; the Department of Interior and Local Government, with the ability of LGUs to fulfill their growing role in environmental management and protection; and the Department of Science and Technology, with environmental research. The Department of Tourism works for the ecological preservation of tourist attrac-tions; the Department of Public Works and Highways prepares a national program for sewerage and septage management; the National Economic and Development Authority plans for growth with equity and, through the Investment Coordination Committee, reviews and approves the environ-mental compliance of government programs and projects; and the National Commission for Indigenous Peoples protects the rights and well-being of indigenous peoples including their rights to their ancestral domains.

Interagency Coordinating CommitteesInteragency committees and technical working groups are commonly created to harmonize the implementation of major ENR laws, policies, and programs, given the large number of agencies involved. Some laws specifically require their creation. Policy directions, targets, implementation activities, schedules,

34 The Philippine Council for Sustainable Development is headed by the director-general of NEDA as chair, and the DENR secretary as vice-chair. It draws its members from various government departments and civil society groups. National government agencies, civil society, NGOs, and people’s organizations are represented in committees and subcommittees of the council.

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90 Country Environmental Analysis 2008: Philippines

and roles and responsibilities are discussed and agreed on in these committees and working groups. Sector and group representation (government, NGOs, industry, and the academe) in committee membership is considered, to engage the regulators and the regulated, as well as the affected communities.

Government Financial InstitutionsGovernment financial institutions, particularly DBP, the Land Bank of the Philippines (LBP), and the Municipal Development Fund Office (MDFO), have been providing loans for environmental projects.

Leading the banking sector in promoting, encouraging, and financing environmental projects in the country for more than 15 years, DBP pio-neered in the funding of waste treatment facilities for water and air, cleaner production, energy conservation, and cleaner energy. A special DBP lending facility handles the environmental requirements of small and medium-sized enterprises (SMEs). Since 1989, DBP has mobilized about $700 million (at constant 1985 prices) in ODA loans for environment initiatives. These envi-ronmental lending facilities are ongoing: Credit Facility for Environmental Management Project (AB Svensk Exportkredit of Sweden); Credit Line for Solid Waste Management Project and Industrial Pollution Control Loan Program, Phase II (KfW of Germany); and LGU Urban Water and Sanitation Project (Adaptable Program Loan 2) and Rural Power Project (World Bank). As of December 2006, these projects had a net commitment of $69.53 million.

As of 2006, 36% of the total LBP portfolio was provided to agribusiness, agri-infrastructure, and agro- and environment-related loan projects. LBP has five ongoing lending facilities with an ENR component: Third Rural Finance Project (World Bank), Mindanao Basic Urban Services Sector Project (ADB), LGU Investment Program (KfW), MTSP (World Bank), and Support for Strategic Local Development and Investment Project (World Bank). These loan facilities total about $450 million.

MDFO was created as an office under the Department of Finance in 1998 to finance environment-related projects of LGUs through the Municipal Development Fund. The fund is supported by foreign loans, assistance, and grants.

Nongovernment Organizations and People’s OrganizationsNGOs as advocacy groups play a major role in bringing environmental ben-efits to communities. The NGO communities and people’s organizations in the Philippines are among the most developed in Asia and Pacific. Local envi-ronment NGOs have become more active since the 1980s, helping to shape environmental policy in agrarian reform and against illegal logging and environ-mental damage from irresponsible mining. Several NGOs have been successful innovators. Box 10 lists the major environmental NGOs in the country.

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Box 10: Nongovernment Organizations in Environmental Protection

Conservation International, one of the world’s largest nongovernment organizations (NGOs) in biodiversity conservation, works in 44 countries including the Philippines. In the Philippines it is a partner of the Department of Environment and Natural Resources (DENR) in several initiatives for the conservation of Philippine biodiversity including the Sulu-Sulawesi Seascape and biodiversity hotspots.

The Environmental Legal Assistance Center was formed in 1990 as a special project of the Protestant Lawyers’ League of the Philippines to mobilize human rights lawyers on behalf of communities besieged by environmental problems.

The Foundation for the Philippine Environment, incorporated in 1992, aims to reverse the rapid destruction of the Philippines’ natural resources by initiating programs and activities that strengthen the role of NGOs, people’s organizations, and local communities in responsible ecosystem management. The initial financial base of the foundation is an endowment fund established through debt-for-nature swaps.

Haribon Foundation is a leading conservation NGO in the Philippines with more than 25 years of experience in addressing critical environmental problems at policy and community levels. Haribon has been at the forefront of finding workable environmental strategies for implementing sustainable development in the Philippines. It has made a significant contribution to pioneering initiatives such as the National Integrated Protected Areas System, community-based coastal resource management, and environmental law education and practice. It bases its conservation work on the best-quality biodiversity research in the Philippines. The foundation has a staff of over 40 professionals, with varied specializations, and has been the recipient of various grants.

KALIKASAN–People’s Network for the Environment is a network of NGOs established to enable greater coordination and complementation in addressing the environmental issues that continue to worsen the lives of already marginalized people.

LRC-KSK/Friends of the Earth, established in 1987 with the aim of empowering the marginalized directly dependent on natural resources, has developed expertise in indigenous people’s rights, environmental management, forestry issues, energy efficiency, and community and local initiatives. It is the official Philippine affiliate of Friends of the Earth International.

The Non-Timber Forest Products Task Force is a collaborative network of Philippine grassroots NGOs established to address emerging livelihood needs of upland forest dwellers in the context of sustainable forest management. It is a beneficiary of the Small Grants Fund of the European Commission.

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92 Country Environmental Analysis 2008: Philippines

The Philippine Rural Reconstruction Movement (PRRM) designs and implements community and habitat development programs across the archipelago. Founded in 1952, it is one of the country’s longest-serving NGOs.

The World Wide Fund for Nature (WWF)–Philippines began with the desire to save the Philippine marine environment. Through the years, WWF programs have grown to include work in freshwater and forest ecosystems and pioneering projects in toxics and climate change while maintaining WWF’s strong emphasis on oceans, coasts, and marine species. WWF-Philippines implements conservation and development projects in 11 provinces and at least 28 towns. Nationwide, WWF advocates appropriate environmental policies, engages corporations in sustainable business, and conducts environmental education activities in Metro Manila and other key cities and towns. The field projects of WWF-Philippines support local efforts in coastal resource management, community-based ecotourism, management of protected areas, and environmental law enforcement, among others. WWF’s projects in species protection serve as catalytic platforms for broader coastal management and conservation in a number of areas. These include the Irrawaddy dolphin in Malampaya Sound, Palawan; the whaleshark in Donsol, Sorsogon; whales and dolphins in Tanon Strait, Negros Oriental; sea turtles in the Turtle Islands, Tawi-Tawi; the dugong in Roxas, Palawan; and the humpback whale in Babuyan Islands. WWF draws support for its projects from various partners including multilateral agencies.

Other relevant environmental organizations are the Philippine Federa- tion for Environmental Concerns (www.psdn.org.ph/pfec), the Environ-mental Broadcast Circle (www.ebc.org.ph), the Tambuyog Development Center, the Soil and Water Conservation Foundation (financially supported by the European Commission), the Center for Empowerment and Resource Development, and the Asia Forest Network.

Business and industry organizations have their own environment groups, the more active of which are the following.

The Philippine Business for the Environment (PBE) is a non-stock, nonprofit organization incorporated in January 1992 to assist Philippine business in addressing environmental issues and concerns. Currently it has 37 charter members and 5 regular members. PBE spearheaded and continues to operate the Industrial Waste Exchange Program, which maintains a database of waste generators and waste buyers and recyclers that can be potentially matched.

The Pollution Control Association of the Philippines, Inc. is a non-stock, nonprofit, and nongovernment organization formed in June 1980 by various industries to work with the Government in the protection of the environment, and the prevention, abatement, and control of land, air, and water pollution. All industries are required by law to have their own pollution control officers;

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Chapter 2: Background 93

therefore, this NGO is one of the biggest associations in the country. It represents the industry in the Pollution Adjudication Board and in most environmental interagency committees requiring industry representation.

The Air and Waste Management Association–Philippine Section (AWMA-PS) was organized about 10 years ago as an international chapter of the US-based AWMA.

The Solid Waste Management Association of the Philippines (SWAPP) is another nonprofit membership organization composed of solid waste practitioners from local government units (LGUs), national government agencies, NGOs, and the academe. It was established in May 2000. Through funds from its members and international organizations, it is quite active in assisting LGUs, including barangays, in developing solid waste management plans. It has been the recipient of various grants from donor agencies like the United States Agency for International Development (USAID), World Bank, German technical cooperation (GTZ), and others. Locally, SWAPP has affiliations with the Local Government Academy, PLAN-Philippines, Solid Waste Contractors of the Philippines, Earth Day Network, and Philippine EcoSan Network. SWAPP is also allied with international organizations like the Collaborative Working Group for Low and Middle Income Countries (Switzerland) and the Southeast Asia Urban Environment Management Network (Asian Institute of Technology, Thailand).

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Communities have been participating, to varying degrees, in natural resource management for at least 15 years. Some participate in natural resource management because of conflicts with central government agencies. Relations between people’s organizations and LGUs are similarly mixed. While some LGUs are supportive, others view people’s organizations as competitors and are wary or even hostile. Community groups need more assistance in devel-oping collective interests and building the capacity to implement sustainable and long-term programs.

Donor Agencies

The Philippines has long been a recipient of ODA resources for national development. Donor support for environment-related projects is increasing in response to growing demand and the need to sustain economic growth. Besides ADB, international financing institutions and multilateral agen-cies that are active in the Philippines are the World Bank/GEF, UNDP, and the European Union (EU). Bilateral sources include Australia, Canada, People’s Republic of China, Germany, Japan, New Zealand, Spain, the

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94 Country Environmental Analysis 2008: Philippines

United Kingdom, and the United States of America. The 29 ODA projects at DENR have a total value of $365,384.07, including government coun-terpart funds. Two of these are environment-related loan projects of ADB (the Metro Manila Air Quality Improvement Development Project and the Integrated Coastal Resources Management Project among them); four others are World Bank and JBIC projects.

The World Bank’s country assistance strategy until 2009,35 has been shifting toward more programmatic engagement with key agencies and sectors with the active involvement of the national and local governments, and the private sector. At the national level, the World Bank is working with agencies that are strongly committed to reform, helping to strengthen governance, and financing improvements in systems and processes. Locally, there is an integrated, cross-sector focus on LGUs to make better outcomes more likely across all services delivered. In the private sector, the World Bank promotes private investment by helping to strengthen regulatory agencies, reducing the cost of doing business, improving financial intermediation, and financing projects in cooperation with private entities particularly in sectors with high growth potential.

The 2007 Philippine lending portfolio of the World Bank had 23 active projects (21 loans and two stand-alone GEF projects) totaling $1.3 billion. Rural development and environment projects accounted for 38% ($485.9 million) of the lending portfolio, and 42% ($40.3 million) of the $95.5 million trust fund portfolio. Jumbo trust funds (such as the Mindanao Trust Fund), linked to the World Bank’s investment operations and admin-istered by the World Bank on behalf of bilateral development partners, are a significant new business line that is benefiting the lending program overall and harmonizing World Bank operations with the operations of development partners.

The World Bank is supporting DENR in improving credibility and transparency, and moving away from regulation toward effective conserva-tion. Its National Program Support for Environment and Natural Resources Management Project is helping to promote growth and reduce poverty while ensuring responsible and sustainable ENR use and management. The Land Administration and Management Project, now in its second phase (LAMP II), is improving the security of land tenure through efficient land titling and administration. LAMP II is cofinanced with the Australian Government. Funding for the Program for Sustainable Sanitation in East Asia, managed by the World Bank on behalf of the Swedish International Development Cooperation Agency, is helping to make sustainable sanitation more accessible to the poor.

35 World Bank website, www.worldbank.org.

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Chapter 2: Background 95

Environment sustainability is one of four interrelated program interven-tions of UNDP in the Philippines.36 Balancing production needs with ecologi-cal carrying capacity for long-term, sustained growth is a priority goal. UNDP supports national efforts to develop the capacity of stakeholders to manage natural resources in critical ecosystems by strengthening the productivity of SMEs and the sustainable development of communities. It is also working for the widespread use of cleaner, more sustainable forms of energy and the promotion of energy efficiency. Ongoing projects funded directly by UNDP or GEF or from bilateral sources include the Community-Based Ecological Solid Waste Management Project, the Small Grants Program for Operations to Promote Tropical Forests, the Clean Development Mechanism, and the Samal Island Biodiversity Project.

The EU is providing budget support and sector-wide approaches to decentralized development through LGUs, to reduce poverty by making access to social services more equitable. Its indicative allocation for the Philippines for 2007–2013, under the Development Cooperation Instrument, is about $180 million. EU support for environment-related projects is centered on the sustainable use of natural resources through demand-driven thematic and regional budget lines. These funding facilities include the urban-related Asia Pro Eco Program, Phase II; the Environment and Tropical Forests in Tropical Countries Program; and Asia Invest Program, which promotes environmental protection within an economic and commercial framework. The ASEAN Centre for Biodiversity, hosted by the Philippines, is sup-ported by the EU.

Japan’s ODA makes up the largest portion of foreign assistance to the Philippines—49% in 2006. It takes the form of bilateral grants (grant aid and technical cooperation), bilateral loans (yen loans), and contributions and subscriptions to multilateral donors. Bilateral grants, such as those for DENR Capability Building for Water Quality Management and for the Introduction of Suitable Solid Waste Management System in Three Model Cities in the Philippines, are provided mainly by JICA. Bilateral loans, for the Southern Mindanao Integrated Coastal Zone Management Project, among others, come from JBIC.

JBIC, through DBP, provided loan facility of about $180 million for the environmental investments of industries, while the LGU Support Credit Program implemented by LBP funded water supply, flood control, and sanitation facilities. Both projects ended in 2006 but second-generation funds are expected. Another $180 million lending facility at DBP for envi-ronmental projects, the Environmental Development Program, was in JBIC’s

36 The other three are empowerment of the poor, good governance, and conflict prevention and peace building. Source: UNDP website, www.undp.org.

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96 Country Environmental Analysis 2008: Philippines

2008 pipeline. Aside from various environmental projects, it will support the Philippine Water Revolving Fund, a financing mechanism for water supply and sanitation projects cofinanced by private banks and being implemented by DBP, JBIC, MDFO, USAID, and the LGU Guarantee Corporation.

Australia, through the Australian Agency for International Development (AusAID), is one of the top three bilateral grant aid donors to the Philippines along with the United States and Japan. The environmental governance objective of Australian aid is strengthened institutional capacity and improved enabling mechanisms for environmental management. AusAID is currently funding LAMP II, a $48.0 million project cofinanced by the World Bank, which is contributing $18.9 million.

Canada is helping to reduce poverty in the Philippines through equi-table, sustainable development. The objectives of the Canadian International Development Agency in the Philippines are efficient, responsive, transparent, and accountable governance at all levels, and the development of sustain-able small and medium-sized enterprises that create more and better jobs. About one third of Canada’s development assistance goes to multilateral organizations.

USAID is helping the Government to formulate policies and promote the use of indigenous and clean fuels by developing the country’s extensive natural gas reserves and renewable energy. A USAID project being carried out with private sector participation is providing electricity powered by renewable energy to thousands of households in remote conflict areas in Mindanao. USAID is also helping DENR to implement the second phase of the Philippine Environmental Governance Project to make the governance of natural resources more transparent, accountable, and responsive. Fisheries Improved for Sustainable Harvest, a 5-year USAID project that ended in 2008, was aimed at conserving biological diversity in at least four biologi-cally and economically important marine ecosystems. USAID is providing technical assistance as well in the implementation of the Philippine Water Revolving Fund.

GTZ, the German international cooperation program, is assisting the DENR with municipal forest and coastal zone management, particularly in the Visayan Sea region, and DAR with agrarian reform and rural development.

The New Zealand Agency for International Development (NZAID) is working with the DENR to implement the Camiguin Coastal Resource Management Project. It is helping to develop ecotourism, and is supporting the United Nations Children’s Fund (UNICEF)–led initiative to improve basic education, health, and nutrition for indigenous peoples in the Mountain Province in northern Luzon and the UNDP initiative to protect the ancestral domains of indigenous communities. Another NZAID project is strengthen-

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Chapter 2: Background 97

ing the program and project management capabilities of LGUs in the Caraga region of Mindanao.

ODA-assisted programs and projects in the environment sector cover almost all the important issues. Coordinating their implementation, however, is still a challenge, as is replicating good practices.

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Chapter 3 Challenges and Opportunities

DENR Institutional Rebuilding

The ENR subsectors are wide ranging and encompass the entire geography of the country. These subsectors have laws that are just as varied—the Public Lands Act, the Forestry Code, NIPAS, and

the Pollution Control Law, among others—and are implemented mainly by DENR. In addition, there are the regional and international commitments of the country in ENR protection and management. On top of these is EO 192 (1987), the main law that created the DENR and defines its goals, functions, responsibilities, organization, and authorities.

Several assessments indicate that DENR has not fulfilled all of its man-dated tasks, primarily because of its meager resources, its outdated institu-tional structure, and the low capability of its staff to cope with the technical knowledge requirements. Overlaps in responsibilities with other government agencies, as well as gaps in implementation, also hamper DENR effective-ness. These factors are discussed further below.

Insufficient Government Budget for ENR

The DENR budget in 1998 was $103 million (World Bank 2000b), about 0.8% of the national budget. In 2001, it increased substantially to $137 mil-lion, 1.8% of the national budget. The budget decreased to an annual average of $116 million in 2002–2005 before increasing once more to $150 million in 2006, 1.5% of the government budget (similar to the proportion allocated for the environment in Thailand).

The budget must be increased to cover the new responsibilities of the department. DENR started (in 1987) with outmoded equipment and resources, which were not upgraded because of budget limitations. As in any other government department, there were years when the budget went mostly

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100 Country Environmental Analysis 2008: Philippines

to personnel services, with no increase in maintenance and other operating expenditures (MOOE), and practically no budget for capital outlay. World Bank studies have mentioned that 75% of the DENR’s appropriations go to salaries and other emoluments and that only 5% are for capital outlay. For 2007, personnel services were about 58% of the total DENR budget, MOOE took up 31%, and capital outlay 11%.

Only 5 of the 16 regional offices have equipment for source-emission stack sampling and ambient air quality monitoring. Most regional offices are ill equipped for water sampling and analysis. There are also not enough vehicles to allow DENR staff to monitor the more than 10,000 industrial establishments nationwide.

Some new laws provide for substantial appropriations for their initial implementation. The ESWMA (2000) provided for $450,000 for the initial operating expenses of the NSWMC and the National Ecology Center, as well as the expenses incurred by LGUs in carrying out the ESWMA man-date. For the CAA (1999), $19 million was to be divided among DENR, the Department of Trade and Industry, and DOE, and there was to be an initial appropriation of $2.6 million for the CWA. None of these appropriations have materialized. Furthermore, no portion of the Air Quality Management Fund (AQMF) has been released to EMB and the governing boards, and the National Solid Waste Management Fund (NSWMF) is yet to be set up, 9 years after the ESWMA, which provides for its establishment, took effect.

The National Water Quality Management Fund (NWQMF) is to be established under the CWA to finance water pollution containment and clean-up operations, ecosystems rehabilitation, and supporting activities. It is to come from fines imposed and damages awarded, proceeds of permits issued under the law, and donations, endowments and grants to the Government. Unless the Government comes up with more definite measures for collecting and using the funds appropriately, the NWQMF could suffer the same fate as the AQMF and NSWMF.

DENR has therefore had to rely on foreign assistance. The Metro Manila Air Quality Improvement Sector Development Program (ADB Loan 1663-PHI) made the EMB’s substantial accomplishments under the CAA possible. EMB also receives support from JICA, through the Capacity Development Project on Water Quality Management, for most of the major tasks stated in the CWA.

For protected area management, despite about $59 million in externally funded support for protected areas in the Philippines since the mid-1990s, the budget for PAWB declined from $2.3 million in 1998 to about $1.2 mil-lion in 2002. In 2002, budgetary support for protected area management per year in 432 protected area sites totaled $124,000, or an average of $286 per site per year. If budgetary support does not increase, the protected areas will have to be reduced in number to only a few sites. Protected areas like

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Chapter 3: Challenges and Opportunities 101

Mt. Kitanglad, Mt. Apo, Mt. Kanlaon, and Sierra Madre National Parks will need about $35,000–$90,000 yearly just to finance their fixed costs and recurring cost of protection and management (USAID 2004). The NIPAS Act, which was approved in 1992, has no budgetary provision under law to support its immediate implementation.

As of March 2008, there were 148 protected areas with integrated pro-tected area funds (IPAFs). Access to the IPAFs is very tedious and has to be simplified. IPAFs are deposited at the National Treasury, which retains 25% to support non-income-generating protected areas. For years, DENR has been asking DBM and both houses of Congress to amend the law or include a special provision in the General Appropriations Act that would allow the IPAFs to be used directly for the protected areas. This proposal has so far not been considered.37

The Wildlife Resources Conservation and Protection Act (RA 9147) also set up another fund, the Wildlife Management Fund, for the rehabilita-tion or restoration of habitats affected by violations of RA 9147 and to sup-port scientific research, enforcement, and monitoring. Contributions to the fund are tax exempt.

As a substantial increase in its regular budget seems unlikely. DENR should concentrate instead on laying out a workable structure, complete with guidelines and procedures, for putting these various funds (AQMF, NSWMF, NWQMF, IPAFs, and others) into operation.

Need for DENR Restructuring to Fulfill Expanding Mandate

Despite all the ENR laws that have been passed since 1987, when Executive Order 192 creating the DENR was issued, the institutional struc-ture of the agency has not changed and has been lagging behind its expanding responsibility.38 EMB, in particular, despite its broader mandate and conver-sion to a line bureau, still implements all five major environmental laws (for EIA, air and water quality, and hazardous waste and solid waste manage-ment) through its Pollution Control Division.

EMB has 26 key positions including six director III positions. These six are those of the assistant director and five regional technical directors, which were transferred by DENR to EMB when the latter became a line bureau. EMB has 16 regional offices, and therefore needs 11 more regional director positions. Besides the regular positions, EMB has hired casual and contrac-tual employees out of its regular budget or the environmental revolving fund

37 Information provided by PAWB, 4 July 2008.38 There is also a shortage of personnel. Of the 21,981 itemized positions at DENR, according

to the General Appropriations Act (2007), 1,404 are vacant.

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102 Country Environmental Analysis 2008: Philippines

(from fines and collections, among others) to fill highly technical positions. EMB has been working for the creation of more technical positions since 2002 but with little success.

The implementation of RA 8749 alone requires a manpower comple-ment of 1,558 (ADB 2003d). DENR has transferred 223 employees to EMB to boost the staff of 558 that is assigned to implement the CAA; 777 more are needed, only for this function. In September 2005, 251 unfilled DENR positions (salary grades 1–15, 85% of which were clerical positions) were transferred to EMB. These positions have been collapsed into 95 technical positions in EMB.

The internal movement of personnel within DENR has not helped much, particularly because those who are transferred often do not fit the requirements. Foresters transferred to EMB, for example, were expected to implement pollution control laws. Moreover, PENRO and CENRO posi-tions have been “politicized,” especially in regions where local officials insist on appointing their own men.

EMB has kept its staffing pattern and structure and does not appear to have been transformed into a line bureau as required in the CAA. At any rate, it has neither the resources nor the abilities for such a change at this time. Section 34 of the CAA set a maximum period of 2 years for EMB’s conversion into a line bureau “unless a separate, comprehensive environ-mental management agency is created.” Since no such agency was created in those 2 years, the bureau, by implication, has reverted to its staff bureau status ( JICA 2005).

In the case of protected area management, the management of the 14,540 km2 of protected areas is assigned to a staff of only 1,246, or about nine for every 1,000 km2 of protected area, compared with the worldwide average of 27 (according to UNEP) (European Commission 2005).

In the case of forest management, certain staffing positions may no lon-ger be relevant. The position of tree marker was needed in places where there were timber licensees; there are now very few of those. Plant propagation and nursery jobs have also become unnecessary with the shift in the reforesta-tion program from program administration to contracting. There are 742 tree marker and 194 nursery worker positions in the DENR.

The Coastal and Marine Management Office and RBCO have not been assigned permanent positions despite their huge responsibilities. Their staffs are on temporary detail and may not continue to work in these offices if DENR does not approve the staffing structures under its rationalization plan.

In 2004, all government agencies were directed through Executive Order 366 to prepare sectoral rationalization plans. The DENR rationalization plan reengineers the DENR central units into “thinkers” rather than “doers,” “steering” rather than taking a direct role (“rowing”) in ENR programs, proj-ects, and activities. Box 11 shows the DENR rationalization framework.

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Chapter 3: Challenges and Opportunities 103

A policy note issued by DENR for the rationalization plan, “to ensure that its core mandates as conservator and manager of ENR are fully asserted in future development policies and programs,” directs the department to “cut some operations where the DENR has less comparative advantage and priori-tize those that have greatest impact and value-added.” The intent is to create a more holistic organization with fewer bureaucratic layers, strengthen plan-ning and budgeting, and establish career paths and career development for officials and employees to professionalize the ranks. These principal goals are identified for the department: integrated watershed management, integrated water resource management, protected area management and biodiversity conservation, integrated coastal resource management, and clean air, water and solid waste management.

Box 11: Guiding Principles for the Rationalization Plan of the Department of Environment and Natural Resources

From To

“Doer” (in the central office) “Thinker”

Program implementer Knowledge manager

Regulator Technical assistance provider

Development catalyst (e.g., development of a strategic environmental plan to guide local government units, development of standards to improve service delivery, and reduction of bottlenecks in the processing of resource use permits

Conservator: Fragmented/ Uncoordinated approach

Integrated ecosystems approach

Regulator: Concentrated at the central office

DeconcentrationPhased/Selective devolution

Manager: “Rowing” “Steering” (enabler)

Direct role in administering the use of natural resources in wealth production

Reduced direct role in programs, projects, and activities related to utilizationEnhanced services related to promoting ecosystems

Emphasis on program implementation (production/ delivery)

Emphasis on policy formulation, standard setting, monitoring and evaluation, enforcement and coordination.

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104 Country Environmental Analysis 2008: Philippines

Even after repeated revisions, however, the rationalization plan is yet to be approved by DBM.39 The plan should be approved and implemented as soon as possible. An implementation timetable and action plan, with the necessary financial resources, is needed for smooth implementation.

Major Capacity Building Requirement for Better ENR Regulation

The report on the TA project Strengthening Environmental Enforcement and Compliance Capacity (2003) concluded that, despite time and human and financial resource constraints, EMB has implemented about 79% of its 239 directives40—83% in enforcement, 85% in policy and planning, 81% in education, 71% in research, and 55% in fund generation and management. As the report showed, EMB has limited capacity to implement all of the direc-tives. Anyhow, given the austerity measures taken by the Government, not all may be implemented.

The JICA-funded Capacity Development Project on Water Quality Management mentioned the following weaknesses in enforcement in the EMB regional offices: identification of hot spots and prioritization of monitoring and inspection, groundwater assessment, water-body classifica-tion, scientific analysis and water pollution modeling, field monitoring and inspection, estimation of pollution load or allocation of pollution quotas, and assessment and collection of pollution charges. Most of these weaknesses are explained by the lack of procedural and technical guides or manuals, labora-tory facilities and equipment, water quality monitoring personnel, a regional water quality database to support decision making, well-defined water quality monitoring functions, a database of pollution sources for regulatory enforce-ment, equipment and vehicles for water quality monitoring, and guidance in integrating the CWA with the Philippine Environmental Partnership Program, the Philippine Environmental Impact Statement System (PEISS), and other policies.41

CWA implementation in particular lacks the following, according to the JICA study: an integrated policy framework and procedures for water quality management, EMB central office capability to lead and support the regional offices in integrated water quality monitoring and CWA implementation, experience and capability among the regional offices to support the estab-lishment and operation of water quality monitoring areas and the associated

39 The revisions are expected to continue until the plan is finally approved. Therefore, no details of the plan are presented and discussed in this document.

40 The activities straddle the five environmental laws (PD 984, PD 1586, RA 9003, RA 6969, and RA 8749), from which the EMB derives its mandate.

41 The IWQMF also identifies the major capacity building needs of EMB and of the other key implementers of the CWA mandate, including the LGUs.

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Chapter 3: Challenges and Opportunities 105

participatory mechanisms and institutions, and technical and management capability for water quality monitoring among the regional offices, specifi-cally for the new regulatory mandates under the CWA system of discharge permits and wastewater charges.

In solid waste management, while the ESWMA (2000) specifically makes the LGUs primarily responsible for its implementation and enforce-ment, capacity building of both LGU and DENR field personnel (PENROs and CENROs) in ecological waste management is important, to facilitate compliance with the law.

The Strengthening Environmental Performance Monitoring and Evaluation System of the PEISS Project funded by the World Bank found that not all projects with ECCs are monitored and compliance with ECC requirements is unrecorded. No concerted effort is made to prepare and con-duct training in monitoring and evaluation (M&E). There are not enough incentives and disincentives for project proponents to monitor and report on their own activities, for DENR to perform its M&E duties consistently, and for stakeholders to be vigilant. M&E is just one of many responsibilities of DENR staff, one on which their performance rating does not depend. Government agencies, moreover, are not as interconnected as they should be for a functional monitoring and evaluation system.

Training could solve problems in the M&E system by improving the knowledge, skills, and attitudes of stakeholders, particularly EMB and the members of the multipartite monitoring team (MMT). It would strengthen performance, efficiency, and productivity, and sustain trust and partnership between the regulator, the regulated entities, and the MMT members. EMB personnel and MMT members, however, lack the necessary focus to attend to the substantive concerns of training and to apply the new learning.

EMB is trying to make the PEISS more straightforward by accepting online applications for noncoverage and for initial environmental examina-tion, simplifying the requirements, changing the ECC format, and preparing a manual for the review of EIAs, among other means. Improving its capacity development programs in EIA as a planning and risk evaluation tool would also end the EMB’s dependence on outside reviewers and experts.

A number of projects have capacity building components. JICA’s Capa-city Development Project on Water Quality Management) provided experts and resources to enable EMB to prepare the various guidelines, but, as in other projects with capacity building components, the capacity building was mostly for staff from the pilot regions (in this case, regions 3, 6, and 12, aside from the EMB central office). EMB needs continuous capacity building to implement all of the activities.

A major capacity building program should be developed and imple-mented throughout the bureaucracy when the DENR rationalization plan is finally approved and implemented.

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106 Country Environmental Analysis 2008: Philippines

Need for Integrated and Improved Information and Communication Management System

The use of information and communication technology (ICT) to improve the delivery of services of DENR to the public is making slow progress. The 5-year ICT master plan drawn up in 2006 foresees the establishment of an integrated, secure, and reliable enterprise-wide information system by 2010. Phased implementation of the master plan using the regular budget has mark-edly improved the form and content of the agency website, making it easy to navigate, but the updating of content and links with the bureaus still needs improvement. Full implementation of the master plan requires an investment of about $136 million.42

Some completed ODA-funded projects of DENR have developed database systems to improve decision making. The systems (e.g., PEMSEA Integrated Information Management System, USAID-funded Coastal Resource Management Program database of technical and scientific informa-tion) work separately, however, and are not actively provided on the DENR website. Moreover, NAMRIA, an attached agency of DENR for mapping, photogrammetry, and cartography, does not automatically share its databases and maps with other DENR bureaus and agencies. The computerization of land records to restore the integrity of land titles is another major database project that can be considered for possible assistance.

DENR will need external support to speed up the development of an integrated and improved information and communication system, and pro-vide better, more efficient, and effective services.

Resolution of Mandate Overlaps and Gaps

While significant environmental laws have been passed by the Government in the last four decades, there have been resulting overlaps in agency man-dates and gaps in implementation. Among the more prominent conflicts was that between DENR and SBMA regarding the implementation of ENR laws within the territorial jurisdiction of SBMA (see under Regulatory and Institutional Framework above). The Guimaras oil spill (see Environmental Emergencies, under Main Environmental Concerns above) brought up the question of jurisdiction over the case and the lead agency that should see to the clean-up and the penalties for those responsible.

The CWA has also given rise to conflicts and issues in implementation, particularly in the preparation of the NSSMP, a task assigned to DPWH. DPWH itself is not involved in water supply and sanitation, but LWUA and MWSS are both attached agencies of DPWH. LLDA for its part, invoking

42 DENR website, www.denr.gov.ph.

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Chapter 3: Challenges and Opportunities 107

its mandate under RA 4850, wants to be involved in the preparation and approval of the NSSMP, specifically as it concerns the LDBR.

LLDA has had conflicts with EMB as well. CWA proclaimed LDBR as a water quality management area and LLDA as water quality governing board. To implement the CWA in the region according to its charter, without having to wait for guidelines from EMB, LLDA wanted to take immediate steps to harmonize the implementing rules and regulations of CWA with the pertinent provisions of the LLDA Law, RA 4850, as amended. Among the issues were LLDA’s proposed use of other significant pollution parameters appropriate to the Laguna de Bay that had been subjected to technical research, adoption of more stringent effluent standards than DENR’s, continued imposition and use of fines and penalties as provided in the LLDA Act, and continued issuance of cease-and-desist orders and other legal orders against erring establishments. It has been more than a year since LLDA requested such harmonization efforts, yet DENR has not released the supplemental DENR administra-tive order (DAO) for the harmonization. LLDA has constituted the water quality governing board and continues to impose and use fines and to issue cease-and-desist orders under the LLDA charter.

The question of which framework—IWRMF or IWQMF—has supremacy over the other has been raised several times with varying responses. IWQMF, unlike the IWRMF, is backed by a specific national law. Under the CWA, EMB is assigned the task of integrating the water quality frameworks prepared by all government agencies into the IWQMF. The intent is to have a holistic national program of water quality management that does not treat water quality management issues separately from concerns about water sources, ecological protection, water supply, public health, and quality of life. On the other hand, NWRB’s IWRMF promotes the coordinated development and management of water, land, and related resources, to maximize economic and social welfare without compromising the sustainability of vital ecosystems. An “integrated integrated framework” may be considered in the future.

Another brewing conflict is that between DPWH and the RBCO under DENR. RBCO is tasked with rationalizing the various river basin projects, developing a master plan for flood control for these projects, and rationalizing and prioritizing reforestation in watersheds. Natural resistance is expected from DPWH, the lead agency for flood control projects, although RBCO has been directed to coordinate with it. Besides, DPWH derives its mandate from a republic act, while RBCO was created only by executive order.

Overlaps and conflicts of institutional mandates to grant permits for resource use, set environmental requirements, collect fees, develop land, and enforce compliance continue between the LGC, the Indigenous Peoples Rights Act (IPRA) (1997), the Mining Law, and the NIPAS Act. Solutions to these conflicts must consider community property rights in buffer and multiple-use zones, natural resource sharing arrangements, and social infrastructure sup-port from LGUs. Memorandum Circular 2007-01 on ancestral domains in

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108 Country Environmental Analysis 2008: Philippines

protected areas, issued jointly by DENR and the National Commission on Indigenous Peoples (NCIP), has tried to harmonize the implementation of the NIPAS Act and the IPRA.

Still another issue is the conflict between mining and biodiversity conser-vation objectives. National and local governments, NGOs, the private sector, and other stakeholders must agree on environmental standards and acceptable trade-offs to conserve biological diversity while generating jobs and income. Simple, clear guidelines are needed for the free, prior, and informed consent procedures of the NCIP, for DENR resource-use rights and permits, for the issue of ECCs within protected areas, and for bioprospecting requirements, to minimize illegal entry, harvesting, and bioprospecting, as well as collu-sion. National and local incentives and disincentives for upland communities, fisherfolk, private investors, and DENR protected area superintendents and their staff must also be harmonized.

Passage of Other Important Legislation

Some major ENR laws need to be strengthened or updated. The Public Lands Act (1936) (Commonwealth Act 141), for one, has never been revised or amended.

A list of environment-related bills that have been submitted for delibera-tion in the Senate and the House is in Appendix 4. Of the 1,987 bills filed in the Senate about 143 are on ENR; in the House, only about 24 of the 2,283 bills filed are on ENR. Some bills submitted separately to the Senate and the House are on the same topic. Quite a number are area specific. The fol-lowing major bills should be pursued: Philippine Environmental Protection Authority Act, Bioorganic Farming Promotion Act, Philippine Climate Change Act, Renewable Energy Act, Land Administration Reform Act, Water Resources Management Act, and Free Patent Act.

Congress has held hearings and technical working group meetings on the Sustainable Forest Management and Land Use bills. In 2007, the Senate Committee on Environment had its first public hearing on the Unified Land Use Policy Bill.

Improvement of the Environmental Impact Statement System

A 2007 study on the PEISS (World Bank 2007a) pointed out that the system applies to a wide range of business undertakings, a majority of them small scale; is administered by a central government agency, with LGUs in a very limited role; is highly regulatory and control oriented in implementation;

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Chapter 3: Challenges and Opportunities 109

pays relatively less attention to technical aspects, resulting in generally poor environmental assessment, and critical analyses lacking in focus and depth; has many overlaps with laws handled by other agencies; and has complex but poor follow-up and monitoring procedures and virtually no evaluation. The PEISS, according to the study, is effective in forcing action and compel-ling proponents to disclose the environmental impact of their projects and undertakings, but not as a planning tool. Most environmental assessments are still applied downstream of key feasibility decisions. The planning contribu-tion was achieved in programmatic environmental assessments introduced in 1995 but was not implemented.

Moreover, the EIA framework does not require consideration of cumu-lative effects. Government plans and programs that could have significant environmental effects therefore escape scrutiny of their environmental con-sequences. Whether the MTPDP, for example, underwent environmental assessment is doubtful. If it had, it would not have stipulated annual growth of 3.1%–3.6% in commercial fisheries, because overexploitation has rendered such growth almost impossible. Similarly, the targeted 7.6% yearly increase in aquaculture may not have considered the consequences for coastal ecosystems (ADB 2004a).

Moreover, although the projects under many of the plans are not large enough to require a formal environmental assessment and an associated envi-ronmental management and monitoring plan, their cumulative impact may be significant. The various small projects that escape environmental scrutiny could be nibbling away at important watershed functions and environmen-tal resources. Perhaps the most serious of these unexamined projects is the extensive road building that often accompanies rural development. While the positive socioeconomic benefits are many, road building makes areas with high biodiversity much more accessible and can also cause significant soil erosion.

In 1996, a policy study under the USAID-funded Industrial Environ-mental Management Project recommended that government programs undergo environmental assessments similar to ADB’s, instead of the EIS requirements under PD 1586, which apply to project-specific assessments. The recommendation, however, was not adopted.

Incomplete Devolution of ENR Functions to LGUs

A review in 2003 of the progress of devolution and decentralization in the Philippines (Government of the Philippines, World Bank, and Asian Development Bank 2003) concluded that LGC implementation is still con-strained by lack of coordination between national and LGU plans; institu-tional arrangements for service delivery; local capacity to produce revenues to finance activities; and technical and managerial capability to design,

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implement, maintain, and evaluate programs. DENR has been devolving its functions to LGUs for the past 15 years, without much success. Many LGUs do not actively assume the new functions because they are not ready for them, were not properly told about their new functions or trained to carry them out, do not have the benefit of follow-up by DENR regional offices after devolu-tion, cannot fund the devolved functions, or do not earn revenue from the devolved projects and hence do not give them much attention.

A DILG-commissioned study in 2005 called the state of ENR devolu-tion “partial and at worst, minuscule and insignificant.” The devolved func-tions were mainly peripheral, with low private sector investment interests, or those that were costly to perform. Among these functions were watershed regulation, greenbelt and tree-park development, farmer-level integrated social forestry, and small-scale mining, all of which do not attract significant investments from the private sector or are limited to certain LGUs. The con-trol of smoke-belching vehicles, the management of solid wastes, and coastal zone regulation and protection are devolved functions that require substantial investments from LGUs.

In 2007, ADB also commissioned a study on the devolution of DENR functions, to help identify responsibilities in the Integrated Coastal Resources Management Project (ICRMP). The study pointed out the insti-tutional weaknesses in most of the 206 Protected Area Management Boards (PAMBs) revealed by a 2003 UNDP study; only five were fully constituted boards backed by specific laws, while the rest were still interim boards. In forest management, personnel devolved to the provincial governments to implement the Integrated Social Forestry Program could not carry out their functions for lack of financial resources and were eventually given other work to do. Similarly, LGUs had neither the technical staff nor the funds for the land management and environmental management functions that had been devolved to them. In mines and geosciences, although only the issue of small-scale mining permits was devolved, LGUs did not have the capability for comprehensive assessments of the resources and environmental impact of the mining projects. Moreover, the function was allegedly being used to reward political cronies.

The ADB study also noted that very few DENR and LGU officials knew about the manuals on devolved functions, and fewer still were implementing them.43 A system that called for DENR to monitor the progress of devolu-tion, included in the manuals, was never put into operation.

43 In the mid-1990s, the DENR developed five operating manuals to guide the transfer of functions and responsibilities to LGUs. One manual contained general, administrative, and financial guidelines. The four others were specific to forest management, land management, protected areas and wildlife, and environmental management.

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Although devolution has yet to succeed, and LGUs show little capability for fully technical roles, the CWA also makes them share the responsibility for managing and improving water quality within their jurisdictions. Each LGU has to prepare a compliance scheme within 6 months of the establish-ment of the water quality management area action plan and have the scheme reviewed and approved by the governing board. Through its ENR office, each LGU has to monitor water quality, prepare and carry out emergency responses, comply with the IWQMF, participate actively in water quality protection and rehabilitation, and coordinate with other government agen-cies, civil society, and the concerned sectors in the prevention and control of water pollution.

A stronger approach is needed and particular attention must be given to realizing the objectives of devolution and making it sustainable. For DENR, devolution should mean not only complying with the law but also improving ENR protection and management. LGUs, on the other hand, should accept responsibility for managing the environment in their localities and fulfill it.

From Sector-Based to Integrated, Ecosystem-Based Planning and Management

The continued development of institutional mechanisms for ecosystem-based planning and management presents a major institutional challenge as well as an opportunity. Sectoral approaches, which dominate planning in the Philippines, do not effectively consider effects, constraints, or opportunities in other sectors or administrative jurisdictions. Important ENR trade-offs are manifested only during implementation, creating inter-sectoral conflicts.

Among recent attempts to apply integrated, ecosystem-based planning and management to major ENR programs and policies, a national watershed management strategy has been completed with the support of the Danish International Development Agency and the World Bank (as part of its Country Water Resources Assistance Strategy). An investment project in the Bicol River Basin, together with a basin master plan, has been prepared, and three priority watersheds within the river basin have been identified. The investment project will involve the formation of the Bicol River Basin board, initially with representatives of the central government departments that sit on the NWRB, and eventually also LGUs; watershed management planning and implementation by the LGUs in the three priority watersheds; and the provision of irrigation and flood control infrastructure that extends across several LGUs.

Together with these initiatives, the Government is taking steps to consolidate and rationalize key ENR management functions. The NWRB

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has been transferred under DENR to further consolidate in one agency the responsibility for water resources planning, management, and protection. The National Integrated Coastal Management Program is adopting integrated coastal management as a national strategy for sustainable development to preserve ecological integrity while achieving food security, sustainable liveli-hood, poverty reduction, and less vulnerability to natural hazards.44 NWRB has been working to produce an IWRMF to promote the coordinated development and management of water, land, and related resources and thus maximize economic and social welfare in an equitable manner, without com-promising the sustainability of vital ecosystems.

The CWA’s integrated approach to the designation of WQMAs requires using appropriate physiographic units (such as watersheds, river basins, or water resources regions) where similar hydrologic, hydrogeologic, meteo-rologic, or geographic conditions affect the physicochemical, biologic, and bacteriologic reactions and diffusion of pollutants, or where there are com-mon or similar development problems or prospects. EMB is drafting the procedural guidelines and facilitating WQMA action planning, through the JICA Capacity Development Project on Water Quality. The IWQMF will also allow the synchronized implementation of CWA activities by several implementers and key stakeholders.

Need for Increased Efforts in Forest Management and Biodiversity Conservation

DENR attributes the rise in forest cover to stronger public awareness of the value of forests. Massive reforestation was also undertaken under the donor-supported National Forestation Program and forestry sector pro-gram loans. The overall success of these programs compared with past reforestation efforts is due to the following factors: a shift in government policy from reforestation,by upland settlers employed as daily workers by the Government, to contract reforestation by upland settlers; private sector initia-tive (645,000 ha of the forest cover is on privately titled lands); and stricter enforcement of the reforestation requirements for DENR licensees and les-sees. The 3-year contracts to plant and maintain an area give communities a greater incentive to ensure the survival of what they plant, since they may eventually receive a grant to manage these planted areas for 25 years.

The National Biodiversity Strategy and Action Plan (NBSAP) (2002) prepared by DENR and financed in part by ADB identified priority ter-restrial and marine conservation areas on the basis of biological priority and

44 Executive Order 533, 6 June 2006, Office of the President of the Philippines, Manila.

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Chapter 3: Challenges and Opportunities 113

socioeconomic pressures. The analytical work supporting the NBSAP found the system of terrestrial protected areas biologically inadequate. Only about 8% of the land base of the Philippines is protected, versus the international minimum coverage of 12% fixed by the International Union for Conservation of Nature (IUCN). Degraded and converted habitats make up a high per-centage of the terrestrial system; about half of the national parks are no longer biologically important. Not all of the remaining original forest is protected. The coverage of the terrestrial system is biased toward the biologically poorer highland areas. The main gaps in the terrestrial system are the Luzon and Mindanao lowlands, the Sulu islands, Negros, Basilan, Dinagat, Camiguin Sur, and Samar. Protected-area boundaries also often show little relation to appropriate forest boundaries.

The NBSAP recommended applying the internationally recognized IUCN classification system of protected areas to these priority conservation areas once they become part of NIPAS. Some conservation categories in the IUCN system allow for sustainable human use. The NBSAP also recom-mended enlarging and redesigning the terrestrial portion of the Philippine protected area system to free up land with no residual biodiversity value and being used for agriculture or some other purpose, including all remaining natural forestland in NIPAS, and extending the logging ban to areas of degraded habitats that contain significant biodiversity and including these areas in NIPAS.

The NBSAP outlined strategies and action plans to be implemented by DENR. DENR is, however, expected to need substantial assistance (techni-cal and financial) to meet NBSAP objectives and targets. The Conservation Priority-Setting Program (Ong et al. 2002) and Key Biodiversity Areas, NBSAP iterations that are being jointly undertaken by DENR-PAWB, Conservation International and the University of the Philippines–Center for Integrative Development Studies, give details of areas in the Philippines that are important for the conservation of biodiversity and are the basis for the proclamation of areas under the NIPAS.

Climate Change Mainstreaming in the Government Program

Many factors make it difficult for the Philippines to fulfill its UNFCCC commitments. In the national inventory of GHG emissions, the availability, reliability, and variability of activity data and local emission factors, coupled with institutionalization and links among government agencies involved in the inventory, are still major concerns. Another important issue is the afford-ability and availability of GHG mitigation technologies (e.g., use of renew-able resources in power production). The country needs help in overcoming market barriers to the widespread use of renewable resources.

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114 Country Environmental Analysis 2008: Philippines

Adaptation measures for coping with the impact of climate change were initially identified following vulnerability assessments in the various sectors. More in-depth studies must be undertaken to enable the country to develop appropriate measures. Given the economic condition of the country, outside assistance is imperative.

A working paper produced by the World Agroforestry Center in 2008 came to the conclusion that climate change has not been integrated into major government plans and programs, particularly the MTPDP, the Philippine MDG report, and the Philippine Agenda 21 (Lasco et al. 2008). Climate change is mentioned only once in the MTPDP and the Philippine Agenda 21, and not at all in the MDG progress report. The MTPDP mentions climate change in the context of opportunities presented under the CDM to develop indigenous energy resources. The focus is on income-earning potential. Moreover, because of the geographic location of the country, there is much emphasis on adapting to risks of variable or extreme weather. Destructive natural disasters, particularly typhoons, happen every year, and policy- makers are understandably more concerned with immediate needs than with the long-term effects of climate change.

On the other hand, many of these short-term measures, while not suf-ficient, could become a strong foundation for building adaptation to climate change. For example, flood control projects, into which massive investments are being poured, should consider climate-change scenarios, such as precipi-tation. The fact that many infrastructure projects in the country are funded by foreign donors offers another opportunity. More and more, these donors are exploring how they can integrate climate change adaptation into their project portfolio.

Need for Increased Financing for Environmental Projects

Adequate funding for ENR protection and management is a marked need in the Philippines. The degraded condition of natural resources and the worsen-ing state of environmental resources (water quality), coupled with the generally free access to natural resources, are serious issues that must be addressed. Their resolution is complicated by the inadequacy of government budgets and poli-cies for the participation of stakeholders in ENR management. Considerable financial support has come from the international development community, but it has generally not addressed the question of financial sustainability directly. Long-term sustainable funding of ENR protection and management must involve other sources, including the private sector and civil society.

The MTPIP contains information on possible sources of funding for ENR plans and programs. The national Government provides half of the funds, government–owned and controlled corporations and government

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Chapter 3: Challenges and Opportunities 115

financial institutions about 20%, donor agencies 18%, and the private sector 12%. Even LGUs are providing funds.

Private sector investment in environmental management has considerably increased, particularly for regulatory compliance. DBP has mobilized about $282 million in ODA loans for environment initiatives and has approved $70 million in loans for various environment initiatives, $108 million of this amount for 49 water projects.45 Environmental projects funded with loans from DBP include facilities for the treatment of wastewater and hazardous waste, solid waste management projects, cleaner-production projects, biogas digesters, desulfurization plants, plant relocation projects, water supply sys-tems, and the purchase of CAA-compliant buses.

Investments in biofuel projects and in CDM projects have also dramati-cally increased. A number of foreign companies with local partners plan to set up and operate 15 biofuel refining facilities with an investment of about $450 million, and at least four applications for biodiesel feedstock plantations are pending with the DOE.46

The Government should be able to maintain and increase private sector interest to support the Government in ENR protection and management.

Need to Improve and Widen the Use of Market-Based Instruments

The development and use of market-based instruments (MBIs) continues to be modest. Policy formulation and implementation for MBIs has been hindered by several factors, including government regulators’ perceptions of loss of control or greater unpredictability of environmental outcomes from the implementation of an emission or effluent charge; legislative restrictions on the imposition of a pollution tax; lack of concrete evidence that MBIs have actually worked; and lack of information needed to formulate and implement a large MBI portfolio, and monitor its management.

But there have been successes, especially in waste minimization, deposit refund and environmental guarantee fund (EGF) establishment, and the application of a EUFS in the Laguna de Bay Region. Waste mini-mization and cleaner-production technologies were earnestly promoted by the Government in the 1990s, particularly through the USAID-funded Industrial Environmental Management Project and the World Bank–funded Metropolitan Environmental Improvement Project. Both projects docu-mented success stories nationwide. But the efforts were apparently not sustained after the projects.

45 Development Bank of the Philippines website, www.devbankphil.com.ph.46 Manila Times, 30 January 2008.

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116 Country Environmental Analysis 2008: Philippines

Waste minimization and cleaner-production technologies have since been integrated by most industries into their business operations as a requirement of their mother companies, as a goal for ISO 14001 certification, or merely as part of corporate social responsibility. In 2004, DBP signed an MOA with the Cebu Chamber of Commerce and Industry, the Metro Cebu Environmental Initiatives Council, and the Pollution Control Association of the Philippines and EMB in region 7 to promote cleaner-production technologies in the region. The highlight of the agreement was the selection of five companies out of more than 70 to receive citations for outstanding cleaner-production practices. The five winners were also granted 5-year continuous validity of their permits by EMB. Again, however, there was no follow-up after that.

EGF is considered a form of MBI created under the PEISS (PD 1586). An EGF is set up by proponents for projects that pose significant public risk or require rehabilitation or restoration as a direct consequence. It is also used to compensate those affected by the negative impact of the projects and to fund community-based environment-related projects including information, education, and communication (IEC) activities and emergency prepared-ness programs. The fund should be readily accessible and is managed by a committee composed of representatives from the EMB central and regional offices, affected communities, concerned LGUs, and government agencies identified by EMB.

Recycling and reuse of materials is another MBI worth pursuing. The Metro Manila Solid Waste Management Study (ADB TA-3848 PHI) estimated that Metro Manila alone generated 2 million tons of potentially recyclable materials in 2001. In 2002, only about 25% was recovered by the recycling NGO Linis-Ganda. According to the study, reducing solid waste by 10% can save about $7.7 million in solid waste management cost. This clearly shows the positive impact of recycling on national and local govern-ment budgets. The study added that local supply of recyclable materials does not appear to match the demand. One large paper company alone could buy all the recyclable paper in Metro Manila, but only 10% of its requirements can currently be supplied.

The Philippine Business for the Environment (PBE), created in mid-1990, spearheaded and still operates the Industrial Waste Exchange Program (IWEP). IWEP used to be funded by USAID, but after the project and IWEP’s evident success, PBE decided to take over the program and all the expenses related to its operation. IWEP maintains a database of waste genera-tors and waste buyers and recyclers, and has brought about several successful matches between these two groups.

The 2007–2008 JICA study on the recycling industry in the Philippines mentioned the uneven quantity and quality of domestic supply among the factors affecting the sustainability of the industry. Insufficient quantity

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Chapter 3: Challenges and Opportunities 117

causes dependence on imported materials and disrupts business operations. Unbalanced quality makes the recycling industries less productive and effi-cient in their use of resources. Having to remove and treat impurities and residues also increases the total operating cost and reduces the profitability of the business as a whole. Other issues affecting the development of the recycling industry in relation to the existing infrastructure are the high cost of electricity, inefficient collection, and transportation of recyclable materials.

LLDA’s environmental user fee system, begun in January 1997, is the most successful MBI instrument so far. It integrates command-and-control (CAC) and MBI mechanisms to improve environmental enforcement and compliance in the LBDR. The EUFS is now an integral part of LLDA’s Environmental Management Program. To reduce pollutant load in the bay it makes companies that discharge into the bay directly accountable for the environmental damage they cause. Environmental degradation and improve-ment costs thus figure in business decisions and actions. Regulated companies have a strong incentive to reduce the BOD concentration of their wastewater discharges, although some have been known to dilute their discharges to avoid higher fees. Input water must be properly priced to avoid perverse responses to the EUFS.47 The CWA has institutionalized the EUFS, including the wastewater discharge fees first implemented by LLDA, nationwide.

ENR Concerns and Poverty Reduction

Environmental degradation is both a cause and an effect of poverty. It deprives the poor of natural resources and therefore livelihoods, affects their health, and increases their vulnerability. On the other hand, poverty forces overexploitation of natural resources. Poverty reduction in the Philippines has been slow and income inequality is high. In 2003, about 25% of Philippine families and 30% of the population were poor, and in 2006 the Gini coeffi-cient of per capita income, at slightly over 0.45, was among Southeast Asia’s highest (ADB 2007e).

Access to land, a key determinant of welfare in the rural areas of the Philippines, is highly inequitable and the inequity is worsening. Between 1960 and 2002, the Gini coefficient of land distribution increased from about 0.5 to about 0.57; in East Asia and the Pacific as a whole, it declined from 0.47 to 0.41 (ADB 2007e).

Poverty reduction programs in the rural sector are improving productiv-ity and the income of the majority of the population. Farmers and fishermen

47 International Lake Environment Committee Foundation (ILEC). Laguna de Bay: Experience and Lessons Learned Brief. Available: www.ilec.or.jp/eg/lbmi/reports/.

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118 Country Environmental Analysis 2008: Philippines

are the target beneficiaries. While agriculture is the largest employer, it is also the sector where poverty is most intense. Most programs have been going on for a long time, but, for lack of resources, the positive results are too slow in coming.

Agriculture has not yet reached its agronomic limits. Despite limitations imposed by soil loss and declining watershed integrity, yield and cropping intensity can be increased. An important factor behind the relatively low agri-cultural productivity may be the suitability mismatch between agricultural land and its use. Much of the country’s agriculture is practiced on marginal land. Intensifying agriculture-based enterprises in new or marginally produc-tive land, as indicated in the MTPDP 2004–2010, can improve rural incomes and ultimately reduce poverty. Considering the fragile state of agricultural lands, however, planned agribusiness ventures must incorporate environmen-tal safeguards.

In the urban areas, informal settlers are contributing to the congestion. In 2004, for the bottom decile of the population, access to electricity was about 35%; to safe drinking water, 25%; and to safe sanitation, a little over 40%. For the top two deciles, the corresponding figures were 100%, 80%, and 100%. Access to electricity and potable water across regions is also highly unequal, with the NCR far better served than ARMM (ADB 2007e).

The 2002 APIS shows that only 70% of the poorest had access to safe drinking water, defined as an own-use or shared faucet or an own-use or shared tubed or piped well. Among the poorest, only 12.1% have faucets for their own use. The largest proportion of families using unsafe water sources—dug wells, rivers and streams, rainwater, water from peddlers—is in ARMM, where more than 35% of the poor rely on dug wells, and 26% on rivers and streams. Shared tubed or piped wells, while considered a safe water source, are not always convenient. People, especially women, often spend a good deal of time fetching water for their families’ daily use. This is a drain on productivity (ADB 2005).

Poor water and sanitation services have pushed up infant and child mor-bidity in the secondary cities of the country. Some improvements in urban infrastructure have been achieved with ODA assistance, but the financing needed to narrow the gap is growing and is not likely to be met from tradi-tional sources.

Better environmental management can create more, and better, liveli-hood opportunities and improve security for people living in poverty. Better understanding of the links between poverty and the environment can lead to informed and effective local, national, and global policies to fight both poverty and environmental problems.

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Property rights are especially significant, as they lay the foundation for natural resource use. Incentives in the form of regulated prices, taxes, and subsidies can send important signals to resource users about economic opportunities. Natural resource use should be seen not only in the context of limiting access and exploitation, but also from the perspective of sustainable opportunities for poverty reduction (ADB 2005).

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Chapter 4

Strategic Priorities

The following strategic priorities are areas of intervention where the Philippine Government may need assistance in responding to the challenges and opportunities in ENR management. These priori-

ties take into consideration the environmental concerns of the country, as well as the country’s current regulatory and institutional framework. Also included are regional and global ENR concerns. These priorities support the MTPDP and MDG targets of the Government and ADB’s long-term stra-tegic framework.

Extensive Institutional Rebuilding and Strengthening of DENR

The ENR sector is perhaps the most heterogeneous sector in the bureau-cracy. It involves several subsectors, concerns, and disciplines. The DENR and its attached agencies have overextended mandates and limited capacity. Extensive institutional assessment and rebuilding are priorities. The assess-ment would support DENR’s rationalization plan, and lead to better plan and program priorities and to a stronger organization. The resulting master plan for DENR will make the agency more robust and able to withstand changes in leadership.

The rationalization plan is expected to be considered soon and DENR should be able to reorganize once it is approved. Capacity building, both in the technical aspects and in good governance, should be properly planned and carried out, together with equipment and technological improvements, for the effective implementation of the DENR mandate. Policies, guidelines, standards, and other directives should be harmonized and disseminated at all levels of the institution and the Government (central, regional, and local). At the same time, DENR should communicate and engage with Congress to secure the passage of other important environmental laws.

The environmental trust funds supporting the various parts of the DENR mandate (e.g., CAA, CWA, ESWMA) should be made operational. The ICT Master Plan should be finalized and implemented. The DENR

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mandate to educate and disclose environmental information to the public requires a comprehensive, sustainable, and effective IEC program. Other institutional support systems should be identified and included in the overall master plan.

Such extensive institutional assessment and rebuilding will need the support of international donors and fund providers like ADB. The rebuild-ing program is expected to take several phases, and a number of years, to implement.

Better Management of ENR Data and Information

Data and information related to ENR management in the Philippines can be improved in two main areas: adequacy of basic data and information used in planning, management, and decision making; and management and dissemi-nation of the data and information. The Framework Plan for Environment and Natural Resources Management identifies the DENR’s basic data and information needs related to forest cover, extent and definition of protected areas, and property boundaries. Data and information about the status of ENR in the Philippines are scattered over several organizations, and unreli-able in quality and format because of the fragmented responsibility for data collection and management, limited information sharing, and often-incon-sistent methods of data collection, among other reasons. Without good- quality data that allow comparisons between provinces and regions, and between the urban and rural sectors, the country’s progress toward the MDG targets cannot be assessed with any certainty (Government of the Philippines and UNDP 2003).

ENR concerns in the Philippines would be better understood if watershed assessments also analyzed the relative importance of the causes of declining watershed integrity; the national land classification system reflected ENR management needs rather than historical requirements for resource extrac-tion, and became the basis for land resources monitoring; coastal ecosystems were monitored; the viability and coverage of the marine component of the protected area system were assessed; fishery data were collected and analyzed to support the required policy shift toward fisheries management and conser-vation, and away from fisheries exploitation; the monitoring of compliance with water and air quality regulations could be made more robust; ambient urban environmental quality (water and air resources) could be monitored more widely; and knowledge could be increased, renewed, shared, and improved to build intellectual capital in water quality management, including online monitoring and compliance databases.

In particular, DENR should make the establishment of a decision sup-port system and a computer-based communication system a priority.

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Restructuring and Refocusing of the Philippine Environmental Impact Statement System

Priority should be given to restructuring and refocusing the PEISS. An ADB and World Bank study recommended decentralizing and deconcentrating environmental assessment, improving its quality, simplifying the require-ments, focusing environmental assessment resources on environmentally critical projects and prioritizing ECA mapping, moving toward sector and regional assessment, and studying the costs and benefits or impact of new regulations. Follow-on assistance from ADB may be needed to implement these recommendations.

Genuine Devolution and Decentralization of ENR Functions

More, and better, resources and stronger coordination between DENR and the LGUs will be needed to complete the devolution of ENR functions. DENR should be proactive, but LGUs should also be willing and able to accept ENR management responsibilities. LGU capacity can be validated through screening. This process will improve understanding of devolution and affirm commitment to sustainable ENR management as a collective responsibility.

Continued Application of Integrated Approach to Planning and Management

The DENR has adopted an integrated approach in many of its plans and programs. This ecosystem-based geographic focus should continue. DENR should develop an integrated sustainable management plan for priority eco-systems. In deciding on priority ecosystems, the DENR could set geographic priorities for investments and interventions that will help the country achieve key MDG and MTPDP targets in an integrated manner.

The PAMBs and the management boards overseeing air and water quality are all geared toward community-based resource management. In these boards, local communities and LGUs have significant roles in imple-menting specific ENR mandates, while DENR provides overall guidance, direction, and management. In the context of integrated ecosystems man-agement, strengthening the integration of these boards across sectors will help in minimizing conflicts and managing the local environment effectively. Communities will need extensive capacity building to manage area-wide

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environments. DENR and the LGUs must be creative in developing simpler, more localized, and more innovative approaches for integrated ENR man-agement and monitoring.

Adoption and Application of Spatial Development Plans

Various ODA agencies are assisting the Government in improving nation-al and regional physical framework planning. As of December 2007, about 1,381 LGUs had approved CLUPs. These CLUPs are, however, backed by too little spatial data and information to integrate environmental concerns meaningfully. LGU must become better able to develop and use spatial infor-mation in local development plans.

But even when these plans are well integrated with ENR data and infor-mation and respond well to the MTPDP requirements, local, regional, and national implementation remains a challenge. A case in point is the current state of infrastructure development in the LDBR. Most LGUs in the region have approved CLUPs, which presumably include land-use plans. But illegal structures—barangay halls, schools, community gymnasiums, slaughter-houses—some of them owned by the LGUs themselves, are in full view along the coastline. LLDA, which is responsible for managing and protecting the use of the bay, must engage the cooperation of these LGUs in implementing the master plan for the sustainable use of the bay.

To improve the environmental sustainability of land and natural resource allocation, use, and management, spatial development plans linked to national and regional physical framework plans must be in operation in the provinces and municipal levels. Not only will environmental concerns become an inte-gral part of development decisions, but disaster-prone areas will also be easier to identify and the design of mitigation measures more straightforward.

Increased Financing for Environmental Infrastructure Programs and Projects

Lack of access to safe water supply and sanitation facilities, combined with poor drainage, poses health risks, especially to the urban poor. According to a World Bank estimate, a 10-year program (2005–2015) for treating domestic wastewater in rural areas (costing $1.0 billion) and a piped system in urban areas (costing $3.1 billion) would require $350 million per year in operating costs aside from the capital costs of $4.1 billion. The Government’s current budget deficit and the high cost of providing sanitation and sewerage services would not allow these investments to be recouped within 10 years. Private

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Chapter 4: Strategic Priorities 125

sector participation and investment should therefore be encouraged, and users should pay the appropriate user fees (World Bank 2003a).

Industries will also need substantial investments in wastewater treatment facilities, air pollution control devices, and hazardous waste treatment facili-ties to comply with CAA and CWA requirements, and cities and industries must put up solid waste management facilities. Pollution prevention and reduce-reuse-recycle programs should accompany these investments.

Environmental financing must be made more accessible to private indus-try, LGUs, water districts, and research institutions for their infrastructure and research and development needs.

Use of Market-Based Instruments to Promote ENR Programs and Projects

With the success of EUFS in the Laguna de Bay and the explicit requirement for its use under the CWA, the nationwide implementation of the fee system for the sustainable financing of environmental programs and economically efficient pollution control will be a priority. This approach will encourage pollution prevention (reduce-reuse-recycle) approaches and incentive-based environmental policy tools like trading and environmental management sys-tems. To implement the EUFS and other MBIs EMB will need to shift from a purely CAC to a combined CAC-MBI approach.

MBI-based programs should be promoted and improved. New MBIs (e.g., point-nonpoint source trading programs, incentive regulation, environ-mental management systems, public disclosure systems), particularly those that are applicable to the ENR subsectors, may be studied. User fees (pay-ment for environmental services), for example, may be suitable for water dis-tricts and water concessionaires that get their water from specific watersheds. The fees may be used to protect and maintain these watersheds. Any one or a combination of these MBI approaches can be used in the context of an integrated ENR management project.

Integration of ENR Principles into Poverty Reduction Programs

Investments in the implementation of the Comprehensive Agrarian Reform Program (CARP) are important for reducing rural poverty, but they have to incorporate ENR principles to be environmentally and economically sustainable and viable. Upland agriculture, for example, is contributing to top-soil loss with long-term negative consequences for agricultural productivity

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126 Country Environmental Analysis 2008: Philippines

on-site, and to off-site sedimentation, with impact on downstream irrigation, livelihood activities, and water supply to communities. It is not known how much of the 2 million hectares of agriculture land in upland areas has been formalized through CARP investments and is practicing sloping agricultural land technology.

Institutional capacity for urban water quality management in Metro Manila is being strengthened through the ADB-funded Pasig River Environmental Management and Rehabilitation Sector Development Program. But in secondary cities water supply and sanitation systems continue to deteriorate for lack of maintenance and investment. The immediate prior-ity is to integrate basic sanitation into targeted poverty reduction programs in slum areas and regions that are lagging behind.

Deforestation, poor agricultural practices and consequent land degrada-tion and loss of productivity, pollution of water bodies affecting aquaculture, and destruction of coastal and marine ecosystems exemplify the link between environment and poverty that is costing the livelihoods of the most vulner-able and the poor. New projects and programs should take this connection between ENR and poverty into account.

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Chapter 5

Implications for the Country Partnership Strategy

ADB’s Long-Term Strategic Framework48

The long-term strategic framework for 2008–2020 (Strategy 2020), replac-ing the long-term strategic framework for 2001–2015, gives ADB a more relevant and innovative role in shaping the region’s future. ADB’s corpo-rate vision under Strategy 2020 continues to be “an Asia and Pacific free of poverty,” and its mission is to help its developing member countries (DMCs) reduce poverty and improve their lives.

ADB will direct its efforts at three complementary strategic agendas: inclusive growth, environmentally sustainable growth, and regional integra-tion. To better mobilize resources and to maximize returns on its unique regional experience and comparative strengths, ADB will apply itself to five drivers of change: private sector development and private sector operations, good governance and capacity development, gender equity, knowledge solu-tions, and partnerships.

Its operations will have five core specializations—infrastructure, envi-ronment including climate change, regional cooperation and integration, financial sector development, and education—that best support its chosen agendas, reflect the DMCs’ needs and ADB’s comparative strengths, and complement the efforts of development partners. In other areas, ADB opera-tions will selectively continue on the basis of country priorities and needs and other partners’ undertakings.

48 Taken from ADB (2008b).

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128 Country Environmental Analysis 2008: Philippines

Environmental49 Components of Key ADB Strategies for the Philippines

Philippine Country Partnership Strategy

CPS 2005–2007 covered only 3 years because of the economic uncertainties foreseen in 2005. After 2007, ADB and the Government agreed on a country operations business plan (COBP) for 2007–2008, which extended the CPS till 2008, and ADB prepared another COBP for 2009–2010 to extend the CPS further and to smooth the transition to CPS 2011–2015. CPS 2011–2015 will be aligned with the new MTPDP, which starts in 2011.

CPS 2005–2007 assigned priority to binding constraints on more rapid, more inclusive growth and swifter poverty reduction. Deviating somewhat from ADB’s past model of engaging with the Philippines, it paid greater attention to the sustained quality of the portfolio, to thematic, rather than sector-based, strategies (fiscal consolidation, improved investment climate, and accelerated attainment of the MDGs), and to greater project selectiv-ity. CPS 2005–2007 set no annual lending targets, accommodated political and economic uncertainties, and emphasized results-based partnerships with high lending contingent on macroeconomic performance. It pursued sector-specific reforms, wider partnerships, and, most importantly, explicit align-ment with Philippine national priorities. Substantial policy-based operations gained prominence in support of reforms.

ADB released COBP 2007–2008 in September 2007 and finalized COBP 2009–2010 in 2008. Both COBPs retain the priorities of CPS 2005–2007 (e.g., infrastructure, environment, and financial sector develop-ment) with pipelines of new lending and nonlending products. The emphasis on investments in MDG-related programs, infrastructure, and the environ-ment is expected to intensify in CPS 2011–2015 as the country strives to become more competitive, to achieve environmental sustainability, and to reduce poverty.

Government-ADB Poverty Partnership Agreement

The Government-ADB Poverty Partnership Agreement (PPA) signed in October 2001 expressed ADB’s strategic support for the Government’s efforts to meet the major goals of MTPDP 2001–2004: macroeconomic stability and equitable growth, agricultural modernization with social equity, compre-

49 Unless otherwise specified, the term “environmental,” as used in this section of the report, is taken to include natural resources.

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Chapter 5: Implications for Country Partnership Strategy 129

hensive human development and protection of the vulnerable, and promotion of good governance and the rule of law. MTPDP 2004–2010 embraces these same goals. Strategic support for the ENR sector, as spelled out in the PPA, takes the form of “community-based natural resource management and envi-ronmental protection as elements of comprehensive rural development.”

Philippine Urban Infrastructure Road Map

The ADB Urban Infrastructure Sector Roadmap (2008) for the Philippines is a tool for information management, planning, and performance monitor-ing. It provides a snapshot of the state of urbanization, and identifies and pri-oritizes future urban infrastructure needs in response to urbanization trends. The road map supports strategic decisions regarding investment priorities of the Government and ADB, and the allocation of TA resources for the prepa-ration of new investment projects, or grant funding for pilot projects, through mechanisms like the Japan Fund for Poverty Reduction ( JFPR). It deals in particular with the country’s actions toward the attainment of the MDGs. The road map will become part of the CPS, and will be updated each time the CPS is updated.

ADB’s Environment Policy

ADB’s Environment Policy (2002) sets the direction for the inclusion of envi-ronmental considerations in the Philippine lending program. The policy, as applied to the Philippines, enjoins ADB to help ensure that environmental resources on which the poor depend are managed sustainably and that envi-ronmental quality is improved, to make economic development more sustain-able by correcting market and policy failures and bringing about institutional change to speed up the flow of resources for environmental improvement, to help maintain global life support systems and address regional trans-bound-ary issues relevant to the country, and to engage a wide range of stakeholders in tackling environmental problems effectively.

Environmental Considerations in the Philippine Lending Portfolio

The recent lending portfolio for the Philippines had declining invest-ment in projects with significant ENR components, an increasing propor-tion of environmental lending to the rural sector; a small percentage (less than 10%) of proposed lending fulfilling the environmental objectives of the

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130 Country Environmental Analysis 2008: Philippines

PPA, and a modest percentage (10%–20%) of proposed lending fulfilling the environmental objectives of the most recent CPS (and therefore the corre-sponding MTPDP in general).

Current Portfolio

Since ADB started lending to the Philippines in 1969, it has approved 196 loans totaling $9.2 billion. Of these, 46 loans were for agriculture and natural resources (16.63% of the total) and 20 loans were for water sup-ply, sanitation, and waste management (7.90%). Multi-sector loans, which included environment-related activities, were 12.71% of the total amount (ADB 2007c).

From one of ADB’s weakest, the Philippine portfolio has been trans-formed into one of its best portfolios, thereby enhancing development impact and providing a solid platform for new operations. Project compo-nents that were unlikely to deliver expected outcomes were redesigned or canceled, policy reforms were accelerated to facilitate program loan disburse-ments, implementation oversight was strengthened, portfolio reviews were enhanced, and more attention was given to quality at entry for new activities. Project outputs could thus be delivered faster and better to stakeholders.

ADB’s disbursement of $836.6 million in 2006, its highest ever, resulted in the first positive net resource transfer of $268.5 million from ADB to the Philippines since 1997. The agriculture and natural resources sector had a 39.1% success rate for 23 projects that were rated and a 46.2% success rate for 13 water supply, sanitation, and waste management projects rated (ADB 2007c).

COBP 2009–2010 and the upcoming CPS 2011–2015 are likely to have a higher proportion of project lending than CPS 2005–2007 because of the national Government’s improved budget position, the renewed priority assigned by the Government to the public infrastructure and social sectors, new modes of ADB lending, and more liberal cost sharing for project lending by ADB.

Portfolio in CPS 2005–2007, COBP 2007–2008, and COBP 2009–2010

Since January 2005, ADB has approved six public sector loans total-ing $1.109 billion (74% of the high case scenario), $1.055 billion (95%) of which was for policy-based operations, and $13.7 million for six TA- and grant-financed projects; generated $559 million in cofinancing; approved $24.4 million for private sector operations; and made two peso bond issues

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Chapter 5: Implications for Country Partnership Strategy 131

totaling $136 million, to finance local currency operations. Among the pub-lic sector loans was an environmental project loan, the Integrated Coastal Resource Management Project (ICRMP) worth $38.8 million, and an advi-sory TA project, Sustainable Aquaculture Development for Poverty Reduction ($0.7 million). Lined up for 2008 was the Agrarian Reform Communities II Project ($85 million), and for 2009 the Integrated Natural Resources and Environmental Management Project ($80 million). Much is expected from these environmental projects, particularly in increasing participatory and local management of natural resources and integrating poverty reduction and environmental management. ADB is also planning project preparatory TA (2009), followed by a loan project (2010), for environmental improve-ment in the Agusan River Basin in Mindanao. An objective will be to bring the integrated basin management approach into the project development mainstream. Another loan project slated for 2010 is the Irrigation Systems Operations Efficiency Improvement Project ($50 million). In the 2009–2010 pipeline are the Metro Manila Urban Services for the Poor and Water District Development projects.

The 2005–2007 lending program was processed largely as planned. But alternative financing was sought for the Angat Water Utilization and Aqueduct Improvement Project, and the Agrarian Reform Communities II Project was moved to the 2008 pipline and the Irrigation Systems Operations Efficiency Improvement Project ($50 million) to 2010. Appendix 5 shows the status of public sector lending and private sector operations and nonlend-ing operations.

Strategic Issues

Largely sectoral approaches to socioeconomic development in general and ENR management in particular impede environmentally sustainable eco-nomic growth. ADB is therefore promoting integrated approaches in ongoing projects like ICRMP, which seeks to improve the protection and manage-ment of productive natural resources in the coastal areas. Similar approaches were taken in the advisory TA for the Master Plan for Agusan River System, which is slated to be a loan project in 2010. Through these integrated proj-ects, as well as stand-alone water supply, sanitation, and waste management projects, ADB will support MDG targets and improve the environment and well-being of the people.

ADB has provided assistance in implementing the ARC approach. The Agrarian Reform Communities Project (ARCP) was implemented with ADB support, and its second phase is undergoing approval by ADB.

ADB’s water portfolio in the Philippines has been reduced over the years. Advisory TA supported the preparation of a master plan for the Agusan

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132 Country Environmental Analysis 2008: Philippines

river basin, one of the priority river basins being considered for a river basin organization under the RBCO of DENR. The ADB-financed analytical and planning framework is providing the basis for further substantive discussion and partnership with RBCO.

Support for irrigation and agriculture has centered on rehabilitating infrastructure, extending the command area, and developing institutions. While the infrastructure interventions have generally been successful, the transfer of operation and maintenance responsibilities and the introduction of higher-value cropping strategies have encountered difficulties.

According to an ADB case study on environmental safeguards in the Philippines (part of a four-country study in 2006), the Philippines’ and ADB’s project environmental categorization systems have similar environmental assessment requirements and recognize the need for open and proactive consultations to promote project acceptability and participatory develop-ment. A unique aspect of the Philippine system is the separate category for environmental improvement (ADB 2007b). Institutional capacity (in the national and local governments) and the ENR legal and policy framework have significant limitations.

Ineffective spatial planning and gaps in data and information manage-ment, requiring, among others, public awareness building through IEC activities in projects and DENR’s comprehensive master plan implementa-tion, are strategic areas on which ADB can focus its attention.

Possible ADB Interventions

Mainstreaming of Environment Considerations in Government Policies and Investment Programs

The ADB case study on environmental safeguards in the Philippines recom-mended that ADB’s environmental assistance to the Philippines focus par-ticularly on improving local capacity to implement and monitor compliance with environmental protection policies and laws. Such assistance can be at the project level (through the monitoring of ADB-funded projects), at the sector level (through technical and other assistance), or at national and local government levels.

Many environmental assessments in ADB-financed projects must com-ply with the environmental policies and procedures of both the Government and ADB, and duplication sometimes results. Although ADB’s Environment Policy (2002) sees the need for integration with national procedures, this har-monization is yet to be fully achieved (ADB 2006c).

The need to strengthen country safeguard systems is recognized in ADB’s safeguard policy update. ADB should work with the Government

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Chapter 5: Implications for Country Partnership Strategy 133

to develop policies and procedures that will fully integrate environmental considerations into the development policies, programs, and projects of the Government; help harmonize its ENR and climate change laws and poli-cies, and resolve institutional conflicts and gaps; and strengthen capacity and remove constraints on planning, implementation, and enforcement of ENR laws, regulations, and policies.

Environment as a Core Area of Operation

ADB intends to promote and invest in more sustainable environmental man-agement projects while capitalizing on its operational strengths. The emphasis will be in the core areas of climate change, livable cities, and complementary actions. Projects initially identified for the Philippines that respond to both ADB’s and the Government’s priorities are grouped below under ADB’s focal areas.

Infrastructure and Climate ChangeADB will help DMCs move their economies into low-carbon growth paths by improving energy efficiency, expanding the use of clean energy, reduc-ing fugitive GHG emissions such as methane from landfills, modernizing public transport, and arresting deforestation. ADB will also help DMCs adapt to the unavoidable impact of climate change through planning, defen-sive measures, insurance and other risk-sharing instruments, and “climate-proof ” projects. Disaster risk management will be a vital part of development. Sustainable management of forest and other natural resources for the provi-sion of clean water supplies, biodiversity protection, and carbon sequestration to offset GHG emissions will be part of ADB’s response to climate change (ADB 2008c).

The objectives of the Philippine Government in the energy sector are secure, accessible, and reasonably priced energy supply; cleaner and more efficient energy; strong partnership and collaboration with key partners and stakeholders; and empowered and protected energy publics. ADB should help the Government more directly to meet these objectives while seeing to it that the power projects conform to the Power Sector Development Program (Loan 2282-PHI) and ADB’s climate change programs.

The $200 million private sector loan for the acquisition and rehabilita-tion of the Masinloc coal-fired thermal power plant is fully in line with ADB’s country and energy sector strategies and the Power Sector Development Program. But a remedial action plan is needed to rectify significant environ-mental issues related to air emissions, wastewater, stormwater and drainage, materials handling and storage, waste management, marine ecological impact, and contaminated groundmass. Rehabilitation should restore the plant to its

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134 Country Environmental Analysis 2008: Philippines

original operating and environmental performance with no expansion or addition, improve operating efficiency, reduce environmental emissions, and increase the health and safety standards of the plant.

The Renewable Energy and Livelihood Development for the Poor in Negros Occidental project (grant; PHI37267-01) responds to this type of intervention and at the same time, to ADB’s ultimate goal of poverty reduc-tion. This JFPR project is promoting the efficient use of renewable energy to sustain the livelihood of poor local communities in off-grid areas in partner-ship with the private sector and civil society.

With respect to “green” environment issues, investments to create or enhance forest capital have consistently been much less than disinvestments (caused by deforestation and forest degradation). ADB should help contain the loss of forest cover, using a river basin or landscape approach, and support projects that do not adversely affect forest capital and biodiversity resources (ADB 2006b). Economic instruments (payments for environmental services, CDM, etc.) that incorporate biological diversity and climate change mitiga-tion or adaptation concerns (through global funds like GEF, regional initia-tives like the CTI) and poverty-environment links will be integrated into projects.

Interventions that help the Government to realize its water resource and water quality management frameworks in the context of river basin planning likewise complement ADB’s ICRMP. Investments in water supply and sanita-tion infrastructure fully support the CWA and the MDG. ADB projects that will promote interventions in this area are the Integrated Natural Resources and Environmental Management Program, the Agusan River Basin Master Plan project, the Irrigation Systems Operation Efficiency Improvement Project, and the Agrarian Reform Communities II Project.

ADB should consider a project that would improve upland rural liveli-hood through environmentally appropriate crop diversification in priority upland areas. Candidate priority areas would be watersheds with significant problems of inappropriate agricultural cultivation in sloping upland areas, an approved watershed management plan, no other constraints (land titling, CARP completion, rural infrastructure, transportation for inputs and for products), and beneficiaries already participating in community-based forest management.

Livable CitiesTo reduce the carbon footprint of Asia’s cities, ADB will assist DMCs and their municipalities in addressing a range of environmental problems result-ing from rapid urbanization. These concerns include air and water pollution, pollution-causing transport, solid waste management, and urban waste.

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Chapter 5: Implications for Country Partnership Strategy 135

Another area needing urgent attention in the wake of rapid urbaniza-tion is water supply, sanitation, and waste management. Opportunities for partnerships between the public and private sectors should be pursued, par-ticularly in efficient urban transport systems, to contain air pollution.

The main cities of the Philippines have received significant lending assistance from ADB, the World Bank, and JBIC for urban environmental infrastructure to ensure that urban environmental quality keeps pace as much as possible with the rapidly growing urban population. But similar invest-ments in many secondary cities are still needed. Two projects being developed by ADB to provide urban environment infrastructure for Manila and second-ary cities are the multitranche Metro Manila Services for the Urban Poor and the Water District Development Project.

ADB will continue to help achieve the MTPDP objective of “creating [a] healthier environment for the population” by improving air and water quality, urban infrastructure, and marine and coastal resource management.

Complementary Actions ADB will help bring environmental concerns into the DMC policy and investment program mainstream, while strengthening the capacity of public institutions for ENR regulation and enforcement. In its operations and coun-try systems, ADB will continue to reinforce environmental safeguards and to promote and support regional cooperation in ENR management (e.g., CTI, use of GEF funds and CDM to respond to regional and global concerns). Interventions that integrate economic instruments (e.g., reduce-reuse-recycle, pollution prevention, environmental management systems, pollution charges, trading, payment for environmental services, public disclosure systems) and poverty-environment links will be prioritized. These initiatives and interven-tions will also provide effective approaches to the sharing of environmental public goods and facilitate the transfer of knowledge in environmental man-agement and new technologies.

ADB should give priority to the institutional rebuilding of DENR, per-haps in cooperation with other funding agencies, and as a component of other projects or as a separate major project. Supporting the devolution of ENR management will be a crucial aspect of this assistance.

Effective spatial planning laws, plans, institutions, and implementation mechanisms, as well as ENR data and information management and support for environmental awareness building through IEC activities will need to be made part of the development mainstream through ADB’s TA and project intervention activities.

With a CPS 2011–2015 for the Philippines and a new MTPDP expected by 2011, ADB and the Government will continue to develop other projects

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136 Country Environmental Analysis 2008: Philippines

and technical assistance for the environmental priorities and concerns identi-fied in this analysis that will also be consistent with ADB’s Strategy 2020 and the Government’s new MTPDP.

Strategic Environmental Evaluation of Proposed Pipeline Projects in COBP 2009–2010 and CPS 2011–2015

The projects lined up for COBP 2009–2010 and anticipated in the upcom-ing CPS 2011–2015, will undergo environmental evaluation based on ADB’s Environment Policy (2002). At least some of these projects should deal with the environmental issues and priorities discussed here, consistent with ADB’s Strategy 2020 and the Government’s MTPDP and MDG targets.

Summary of Strategic Environmental Evaluation of Proposed Pipeline Projects in COBP 2009–2010 and CPS 2011–2015

The strategic environmental assessment in Table 20 suggests ways of bring-ing environmental assessment criteria into ADB’s project mainstream, in the light of the challenges and priorities identified in this analysis.

Appendixes 6 and 7, after the table, present a summary of the results of the consultative meetings on this report and a list of the participants at the meetings.

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Chapter 5: Implications for Country Partnership Strategy 137Ta

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138 Country Environmental Analysis 2008: Philippines

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ued

cont

inue

d

Page 160: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

Chapter 5: Implications for Country Partnership Strategy 139

Proj

ect/

Prog

ram

N

ame

Typ

e/C

ost

Prop

osed

Act

ivit

ies

Env

iron

men

tal

Issu

es I

dent

ified

in

CSP

UA

sses

smen

t

Opp

ortu

niti

es

to S

tren

gthe

n Pr

ojec

t

Env

iron

men

tal

Ris

k R

educ

tion

M

easu

res

Agu

san

Riv

er

Bas

in M

aste

r P

lan

Pro

ject

CP

I, E

NV

; pr

ojec

t loa

n $0

.970

mill

ion

271

proj

ects

to b

e im

plem

ente

d un

der

7 pr

ogra

ms:

RB

O fo

rmat

ion

and

deve

lopm

ent

Wat

er q

ualit

y m

anag

emen

tF

lood

ing

and

wat

er-r

elat

ed r

isk

man

agem

ent

Wat

er re

sour

ces

deve

lopm

ent

Wat

ersh

ed

man

agem

ent

Indi

geno

us p

eopl

es

deve

lopm

ent

Agu

san

mar

sh

wild

life

sanc

tuar

y m

anag

emen

t

• • • • • • •

Proj

ects

poi

sed

to a

chie

ve

sign

ifica

nt

envi

ronm

enta

l be

nefit

sN

o pr

ojec

t sh

ows

pote

ntia

l to

cau

se h

ighl

y pr

oble

mat

ic

resi

dual

en

viro

nmen

tal

impa

ct th

at

will

be

beyo

nd

miti

gatio

n or

w

ill n

egat

e th

e en

viro

nmen

tal

bene

fits

• •

Stre

ngth

en lo

cal

envi

ronm

enta

l in

stitu

tions

Im

prov

e en

viro

nmen

tal

serv

ices

by

stud

ying

op

port

uniti

es

for C

DM

Con

side

r re

gion

al a

nd

glob

al im

pact

lik

e cl

imat

e ch

ange

in

proj

ect d

esig

nC

onsi

der

dow

nstr

eam

im

pact

on

stre

ams

and

habi

tats

in

clud

ing

coas

tal a

reas

• • • •

Con

side

r les

sons

le

arne

d fr

om

rela

ted

wat

ersh

ed

proj

ects

and

de

mon

stra

tion

activ

ities

, es

peci

ally

find

ings

fr

om o

ngoi

ng

dem

onst

ratio

n ac

tivit

y in

volv

ing

wat

er p

ollu

tion

in M

eyca

uaya

n R

iver

, Bul

acan

, fr

om a

rtis

anal

gol

d an

d pr

ecio

us m

etal

re

finin

g in

dust

ries

Shou

ld p

rovi

de

for c

apac

ity

build

ing

for r

egio

nal

envi

ronm

enta

l ag

enci

es

Tab

le 2

0 co

ntin

ued

cont

inue

d

Page 161: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

140 Country Environmental Analysis 2008: Philippines

Proj

ect/

Prog

ram

N

ame

Typ

e/C

ost

Prop

osed

Act

ivit

ies

Env

iron

men

tal

Issu

es I

dent

ified

in

CSP

UA

sses

smen

t

Opp

ortu

niti

es

to S

tren

gthe

n Pr

ojec

t

Env

iron

men

tal

Ris

k R

educ

tion

M

easu

res

Irri

gati

on

Syst

ems

Ope

rati

on

Effi

cien

cy

Impr

ovem

ent

Pro

ject

NC

, EN

V;

PP

TA

$0.5

50 m

illio

n,

loan

$30

.0

mill

ion

Con

stru

ctio

n of

Sau

g R

iver

m

ultip

urpo

se s

yste

mR

ehab

ilita

tion

of

irri

gatio

n sy

stem

sIr

riga

tion

man

agem

ent

tran

sfer

Sect

or d

evel

opm

ent

prog

ram

(pol

icy

refo

rm)

Mar

ket a

nd s

uppl

y ch

ain

deve

lopm

ent

• • • • •

Proj

ect w

ill

stre

ngth

en

inte

grat

ed

wat

er re

sour

ces

man

agem

ent

in r

iver

bas

ins

whe

re ir

riga

tion

syst

ems

will

be

reha

bilit

ated

Abo

ut 3

2,00

0 he

ctar

es o

f lan

d w

ill b

enefi

t fr

om im

prov

ed

irri

gatio

n se

rvic

es

• •

Em

phas

ize

natu

ral r

esou

rces

(la

nd a

nd w

ater

) m

anag

emen

t in

the

cont

ext

of r

iver

bas

ins

for s

usta

inab

le

irri

gatio

n se

rvic

esB

uild

in

tegr

ated

pes

t m

anag

emen

t co

ncep

ts

into

pro

ject

en

viro

nmen

tal

desi

gnIn

vest

igat

e ha

rmfu

l su

bsid

ies

for

fert

ilize

rs a

nd

pest

icid

es

• • •

Em

phas

ize

mul

ti-se

ctor

co

ordi

natio

n

Bui

ld

miti

gatio

n m

easu

res

into

pr

ojec

t des

ign

Prov

ide

for

capa

city

bu

ildin

g fo

r reg

iona

l en

viro

nmen

tal

agen

cies

• •

Tab

le 2

0 co

ntin

ued

cont

inue

d

Page 162: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

Chapter 5: Implications for Country Partnership Strategy 141

Proj

ect/

Prog

ram

N

ame

Typ

e/C

ost

Prop

osed

Act

ivit

ies

Env

iron

men

tal

Issu

es I

dent

ified

in

CSP

UA

sses

smen

t

Opp

ortu

niti

es

to S

tren

gthe

n Pr

ojec

t

Env

iron

men

tal

Ris

k R

educ

tion

M

easu

res

Phi

lippi

nes

Bas

ic U

rban

Se

rvic

es S

ecto

r P

roje

ct

NC

, EC

O;

PP

TA

$0.6

50 m

illio

n

Ass

ess

(i) p

hysi

cal,

natu

ral r

esou

rces

, an

d so

cioe

cono

mic

co

nditi

ons

in th

e ar

ea, i

nclu

ding

land

us

e an

d zo

ning

pla

ns

and

deve

lopm

ent

cons

trai

nts;

(ii

) inf

rast

ruct

ure

need

ed to

sup

port

so

cial

ser

vice

s an

d liv

elih

ood

prog

ram

s fo

r fam

ilies

in

depr

esse

d ar

eas;

(iii)

LG

Us’

tech

nica

l an

d ad

min

istr

ativ

e ca

paci

ty to

pla

n,

impl

emen

t, op

erat

e,

and

mai

ntai

n in

fras

truc

ture

fa

cilit

ies;

and

•C

onsi

der w

ater

su

pply

and

sa

nita

tion

syst

ems

for r

eset

tlem

ent

site

s

LG

U in

fras

truc

ture

pr

ojec

ts w

ould

hav

e va

ryin

g de

gree

s of

env

iron

men

tal

impa

ct

Env

iron

men

tal

asse

ssm

ent

shou

ld b

e re

quire

d, th

e le

vel a

nd

deta

ils o

f w

hich

sha

ll de

pend

on

the

type

s of

pro

ject

s re

com

men

ded

for fi

nanc

ing

Prog

ram

an

d pr

ojec

t en

viro

nmen

tal

perf

orm

ance

sh

ould

be

mon

itore

d

• •

Tab

le 2

0 co

ntin

ued

cont

inue

d

Page 163: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

142 Country Environmental Analysis 2008: Philippines

Proj

ect/

Prog

ram

N

ame

Typ

e/C

ost

Prop

osed

Act

ivit

ies

Env

iron

men

tal

Issu

es I

dent

ified

in

CSP

UA

sses

smen

t

Opp

ortu

niti

es

to S

tren

gthe

n Pr

ojec

t

Env

iron

men

tal

Ris

k R

educ

tion

M

easu

res

(iv

) com

preh

ensi

ve

med

ium

- an

d lo

ng-

term

infr

astr

uctu

re

deve

lopm

ent

plan

ning

and

in

stitu

tiona

l cap

acit

y de

velo

pmen

t for

L

GU

s in

the

proj

ect

area

. Id

entif

y re

pres

enta

tive

sam

ple

of s

ix c

ities

an

d m

unic

ipal

ities

, to

pro

vide

bas

is

and

crite

ria

for

eval

uatin

g ot

her

LG

Us

seek

ing

acce

ss to

fina

ncia

l fa

cilit

y th

roug

h th

e pr

ojec

t.

Tab

le 2

0 co

ntin

ued

cont

inue

d

Page 164: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

Chapter 5: Implications for Country Partnership Strategy 143

Proj

ect/

Prog

ram

N

ame

Typ

e/C

ost

Prop

osed

Act

ivit

ies

Env

iron

men

tal

Issu

es I

dent

ified

in

CSP

UA

sses

smen

t

Opp

ortu

niti

es

to S

tren

gthe

n Pr

ojec

t

Env

iron

men

tal

Ris

k R

educ

tion

M

easu

res

Stre

ngth

enin

g P

rovi

ncia

l/L

ocal

P

lann

ing

and

Exp

endi

ture

M

anag

emen

t, P

hase

II

NC

, EC

O;

AO

TA

$0.6

5 m

illio

n

Stre

ngth

en lo

cal

gove

rnm

ent e

xpen

ditu

re

man

agem

ent,

in

plan

ning

, inv

estm

ent

prog

ram

min

g, re

venu

e ge

nera

tion,

and

bu

dget

ing

Env

iron

men

tal

man

agem

ent

syst

ems

shou

ld b

e em

phas

ized

To

be id

entifi

ed

SME

D

evel

opm

ent

Supp

ort

(Fin

anci

ng

Acc

ess

Impr

ovem

ent

Pro

ject

)

Priv

ate

sect

or;

$18.

4 m

illio

nT

o be

iden

tified

To

be id

entifi

edT

o be

iden

tified

To

be id

entifi

edT

o be

iden

tified

Tab

le 2

0 co

ntin

ued

cont

inue

d

Page 165: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

144 Country Environmental Analysis 2008: Philippines

Proj

ect/

Prog

ram

N

ame

Typ

e/C

ost

Prop

osed

Act

ivit

ies

Env

iron

men

tal

Issu

es I

dent

ified

in

CSP

UA

sses

smen

t

Opp

ortu

niti

es

to S

tren

gthe

n Pr

ojec

t

Env

iron

men

tal

Ris

k R

educ

tion

M

easu

res

Inte

grat

ed

Coa

stal

R

esou

rces

M

anag

emen

t P

roje

ct

CP

I, E

NV

; pr

ojec

t loa

n 35

Inst

itutio

nal

stre

ngth

enin

g an

d pr

ojec

t man

agem

ent

Com

mun

ity-

base

d co

asta

l res

ourc

e m

anag

emen

tC

oast

al p

ollu

tion

cont

rol

Coa

stal

com

mun

ity

and

livel

ihoo

d de

velo

pmen

t

• • • •

Will

add

ress

soc

ial

and

envi

ronm

enta

l is

sues

in m

arin

e an

d co

asta

l sec

tor

Env

iron

men

tal

issu

es a

nd c

once

rns

iden

tified

in C

SPU

co

ncep

t pap

er a

re

appr

opri

ate

and

valid

Opp

ortu

nity

to

link

pro

ject

w

ith ri

ver

basi

n pl

anni

ng

assi

stan

ce fr

om

AD

B to

dev

elop

in

stitu

tiona

l m

echa

nism

s fo

r inc

ludi

ng

coas

tal r

esou

rce

issu

es in

rive

r ba

sin

plan

s. D

urin

g lo

an

fact

-find

ing

and

appr

aisa

l, as

sess

ap

prop

riat

enes

s of

incl

udin

g B

utua

n B

ay a

s a

subp

roje

ct a

rea

and,

if p

ossi

ble

and

appr

opri

ate,

lin

k su

bpro

ject

w

ith A

gusa

n R

iver

syst

ems

mas

ter p

lan.

•T

o be

iden

tified

Tab

le 2

0 co

ntin

ued

cont

inue

d

Page 166: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

Chapter 5: Implications for Country Partnership Strategy 145

Proj

ect/

Prog

ram

N

ame

Typ

e/C

ost

Prop

osed

Act

ivit

ies

Env

iron

men

tal

Issu

es I

dent

ified

in

CSP

UA

sses

smen

t

Opp

ortu

niti

es

to S

tren

gthe

n Pr

ojec

t

Env

iron

men

tal

Ris

k R

educ

tion

M

easu

res

Ass

ess

viab

ility

an

d co

vera

ge

of m

arin

e co

mpo

nent

of

pro

tect

ed

area

sys

tem

, as

was

don

e fo

r ter

rest

rial

co

mpo

nent

in

2002

NB

SAP

pr

epar

atio

n.

Cos

ts w

ould

be

mod

est,

gran

t don

or

finan

cing

cou

ld

be fo

und,

and

st

udy

coul

d be

im

plem

ente

d by

an

inte

rnat

iona

l N

GO

act

ive

in

this

sec

tor i

n th

e P

hilip

pine

s.

Tab

le 2

0 co

ntin

ued

cont

inue

d

Page 167: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

146 Country Environmental Analysis 2008: Philippines

Proj

ect/

Prog

ram

N

ame

Typ

e/C

ost

Prop

osed

Act

ivit

ies

Env

iron

men

tal

Issu

es I

dent

ified

in

CSP

UA

sses

smen

t

Opp

ortu

niti

es

to S

tren

gthe

n Pr

ojec

t

Env

iron

men

tal

Ris

k R

educ

tion

M

easu

res

Met

ro M

anila

U

rban

Ser

vice

s fo

r the

Poo

r (m

ulti

-tra

nch)

EN

V, C

PI,

GG

, HD

; TA

$1

.2 m

illio

n,

loan

, $7

65.7

4 m

illio

n

Add

ress

nee

ds o

f ur

ban

poor

fam

ilies

in

slu

ms

and

info

rmal

set

tlem

ents

in

Met

ro M

anila

; de

sign

ed a

s pi

lot

proj

ect i

n tw

o ci

ties

for f

utur

e re

plic

atio

n in

oth

er c

ities

L

ong-

term

goa

l: im

prov

e liv

ing

cond

ition

s an

d qu

alit

y of

life

of

urba

n po

or fa

mili

es

by p

rovi

ding

in

fras

truc

ture

se

rvic

es, b

ette

r en

viro

nmen

t, de

cent

an

d af

ford

able

ho

usin

g w

ith s

ecur

e te

nure

in e

xist

ing

or

new

set

tlem

ents

, and

im

prov

ed in

form

al

sett

lem

ents

• •

No

sign

ifica

nt

envi

ronm

enta

l im

pact

that

ne

eded

furt

her

stud

y w

as

iden

tified

, and

no

adv

erse

en

viro

nmen

tal

impa

ct is

an

ticip

ated

If re

quire

d,

IEE

s an

d E

CC

s fo

r pro

ject

ac

tiviti

es w

ill b

e pr

oces

sed

• •

Proj

ect m

ust

conf

orm

to

Phi

lippi

ne

envi

ronm

enta

l ru

les

and

regu

latio

ns

and

AD

B’s

Env

iron

men

t Po

licy

(200

2);

if th

ere

is a

di

scre

panc

y be

twee

n th

e tw

o, A

DB

’s po

licy

will

pr

evai

l C

ontr

acto

rs

mus

t im

plem

ent

envi

ronm

enta

l m

itiga

tion

mea

sure

s st

ated

in

IE

Es

• •

To

be id

entifi

edIn

acc

orda

nce

with

AD

B’s

Env

iron

men

tal

Ass

essm

ent

Gui

delin

es,

cond

uct a

pol

icy

EIA

as

part

of

the

proj

ect a

nd

incl

ude

resu

lts

in p

repa

ratio

n of

sl

um e

radi

catio

n an

d up

grad

ing

prog

ram

, and

po

licy

agen

da

Tab

le 2

0 co

ntin

ued

cont

inue

d

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Chapter 5: Implications for Country Partnership Strategy 147Pr

ojec

t/Pr

ogra

m

Nam

eT

ype/

Cos

tPr

opos

ed A

ctiv

itie

s

Env

iron

men

tal

Issu

es I

dent

ified

in

CSP

UA

sses

smen

t

Opp

ortu

niti

es

to S

tren

gthe

n Pr

ojec

t

Env

iron

men

tal

Ris

k R

educ

tion

M

easu

res

Maj

or o

utpu

ts:

site

deve

lopm

ent

and

infr

astr

uctu

re,

affo

rdab

le h

ousin

g fo

r the

poo

r, m

icro

finan

ce fo

r ne

ighb

orho

od a

nd

hom

e im

prov

emen

ts,

capa

city

dev

elop

men

t, an

d su

ppor

ting

polic

y an

d se

ctor

refo

rms.

As p

art o

f firs

t tw

o ou

tput

s, ur

ban

poor

fa

mili

es w

ill re

ceiv

e se

cure

tenu

re th

roug

h us

ufru

ct a

gree

men

ts.

Infr

astr

uctu

re

serv

ices

will

incl

ude

neig

hbor

hood

se

rvic

es li

ke w

ater

su

pply,

sani

tatio

n,

acce

ss ro

ads

and

foot

path

s, dr

aina

ge a

nd fl

ood

cont

rol,

solid

was

te

man

agem

ent,

and

stre

et li

ghtin

g.

Tab

le 2

0 co

ntin

ued

cont

inue

d

Page 169: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

148 Country Environmental Analysis 2008: Philippines

Proj

ect/

Prog

ram

N

ame

Typ

e/C

ost

Prop

osed

Act

ivit

ies

Env

iron

men

tal

Issu

es I

dent

ified

in

CSP

UA

sses

smen

t

Opp

ortu

niti

es

to S

tren

gthe

n Pr

ojec

t

Env

iron

men

tal

Ris

k R

educ

tion

M

easu

res

Ren

ewab

le

Ene

rgy

and

Liv

elih

ood

Dev

elop

men

t fo

r the

Poo

r in

Neg

ros

Occ

iden

tal

EN

V, C

PI,

HD

; gra

nt

$1.5

mill

ion

Ren

ewab

le e

nerg

y de

velo

pmen

t and

ef

ficie

nt u

se o

f ene

rgy

Ene

rgy-

base

d liv

elih

ood

deve

lopm

ent

Proj

ect m

anag

emen

t an

d po

vert

y im

pact

as

sess

men

t

• • •

To

be id

entifi

edW

ill re

quire

pol

icy

EIA

und

er n

ew

envi

ronm

enta

l as

sess

men

t gu

idel

ines

To

be id

entifi

edT

o be

iden

tified

Stre

ngth

enin

g of

Ele

ctri

cC

oope

rati

ves

EC

O; P

PTA

$0

.550

mill

ion,

lo

an

$60.

0 m

illio

n

Con

solid

ate

and

stre

ngth

en te

chni

cal

and

finan

cial

cap

acity

of

ele

ctric

coo

pera

-tiv

es to

pro

vide

goo

d,

affo

rdab

le se

rvic

e in

ru

ral a

reas

Pr

ovid

e fin

anci

ng fo

r di

strib

utio

n sy

stem

up

grad

ing,

incl

ud-

ing

acqu

isitio

n of

su

b-tr

ansm

issio

n sy

s -te

ms f

rom

Tra

nsco

, w

hich

will

ena

ble

elec

tric

coo

pera

tives

to

par

ticip

ate

in th

e W

ESM

• •

Env

iron

men

tal

issu

es to

be

iden

tified

in P

PTA

To

be id

entifi

edT

o be

iden

tified

To

be in

clud

ed in

P

PTA

Tab

le 2

0 co

ntin

ued

cont

inue

d

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Chapter 5: Implications for Country Partnership Strategy 149Pr

ojec

t/Pr

ogra

m

Nam

eT

ype/

Cos

tPr

opos

ed A

ctiv

itie

s

Env

iron

men

tal

Issu

es I

dent

ified

in

CSP

UA

sses

smen

t

Opp

ortu

niti

es

to S

tren

gthe

n Pr

ojec

t

Env

iron

men

tal

Ris

k R

educ

tion

M

easu

res

Agr

aria

n R

efor

m

Com

mun

itie

s (A

RC

P) I

I

CP

I, E

CO

, P

SD; P

PTA

$0

.200

mill

ion,

pr

ojec

t loa

n $1

10 m

illio

n

Proj

ect c

ompo

nent

s si

mila

r to

thos

e of

A

RC

P I

: (i)

prov

isio

n of

rur

al in

fras

truc

ture

, (ii

) lan

d tit

ling,

(ii

i) de

velo

pmen

t su

ppor

t ser

vice

s, an

d (iv

) pro

ject

m

anag

emen

t and

ca

paci

ty b

uild

ing

of

DA

R, L

GU

, and

AR

C

orga

niza

tions

Will

requ

ire

assu

ranc

e th

at

proj

ect b

enefi

ts

all a

nd n

ot o

nly

the

elite

in th

e co

mm

uniti

es, a

nd

that

new

agr

icul

ture

te

chno

logi

es d

o no

t le

ad to

exc

essi

ve u

se

of a

groc

hem

ical

s

Poss

ible

ne

gativ

e en

viro

nmen

tal

cons

eque

nces

of

land

-use

pr

actic

es

prom

oted

as

a re

sult

of

agra

rian

refo

rm

in u

plan

ds

Indi

rect

eff

ect o

f ro

ad u

pgra

ding

an

d ex

tens

ion

is in

crea

sed

acce

ssib

ility

to

pro

duct

ive

or p

rote

cted

na

tura

l re

sour

ces,

and

decr

ease

d w

ater

shed

in

tegr

ity

thro

ugh

soil

eros

ion

• •

As

part

of

proj

ect d

esig

n,

asse

ss la

nd

suita

bilit

y to

iden

tify

envi

ronm

enta

lly

sust

aina

ble

land

-use

pr

actic

es, a

nd

desi

gn a

nd

incl

ude

proj

ect

com

pone

nts

to p

rom

ote

such

land

-use

pr

actic

es th

at

will

mai

ntai

n w

ater

shed

in

tegr

ity

•E

nsur

e en

viro

nmen

tal

asse

ssm

ents

in

clud

e as

sess

men

t of

cum

ulat

ive

effe

cts,

acco

rdin

g to

AD

B

guid

elin

es,

of in

crea

sed

acce

ssib

ility

du

e to

ru

ral r

oad

impr

ovem

ents

, an

d ef

fect

s of

pro

ject

on

pri

orit

y co

nser

vatio

n ar

eas

iden

tified

in

200

2 N

BSA

P

Tab

le 2

0 co

ntin

ued

cont

inue

d

Page 171: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

150 Country Environmental Analysis 2008: Philippines

Proj

ect/

Prog

ram

N

ame

Typ

e/C

ost

Prop

osed

Act

ivit

ies

Env

iron

men

tal

Issu

es I

dent

ified

in

CSP

UA

sses

smen

t

Opp

ortu

niti

es

to S

tren

gthe

n Pr

ojec

t

Env

iron

men

tal

Ris

k R

educ

tion

M

easu

res

Con

side

r su

ppor

ting

prot

ectio

n of

pri

orit

y co

nser

vatio

n ar

eas

in p

roje

ct

area

eve

n if

envi

ronm

enta

l as

sess

men

t co

nclu

des

that

pr

ojec

t will

ha

ve n

o im

pact

on

thos

e ar

eas;

cost

s w

ould

be

rela

tivel

y m

odes

t and

gr

ant fi

nanc

ing

coul

d be

foun

d

•A

ddre

ss

cum

ulat

ive

effe

cts

in

envi

ronm

enta

l m

anag

emen

t pl

an

Tab

le 2

0 co

ntin

ued

cont

inue

d

Page 172: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

Chapter 5: Implications for Country Partnership Strategy 151Pr

ojec

t/Pr

ogra

m

Nam

eT

ype/

Cos

tPr

opos

ed A

ctiv

itie

s

Env

iron

men

tal

Issu

es I

dent

ified

in

CSP

UA

sses

smen

t

Opp

ortu

niti

es

to S

tren

gthe

n Pr

ojec

t

Env

iron

men

tal

Ris

k R

educ

tion

M

easu

res

Irri

gati

on

Sect

or I

IP

I, E

CO

; P

PTA

$0

.9 m

illio

n,

sect

or lo

an

$30

mill

ion

For e

ffici

ent a

nd

sust

aina

ble

wat

er

man

agem

ent,

natio

nal

irri

gatio

n sy

stem

s sh

ould

be

reha

bilit

ated

th

roug

h pa

rtic

ipat

ory

irri

gatio

n m

anag

emen

t an

d tr

ansf

er o

f co

mpl

eted

faci

litie

s to

w

ater

use

r gro

ups,

and

shou

ld b

e fin

anci

ally

su

stai

nabl

e. P

PTA

will

he

lp th

e G

over

nmen

t fo

rmul

ate

proj

ect t

o im

prov

e w

ater

and

m

anag

emen

t effi

cien

cy

in ir

riga

tion

syst

ems.

NIA

is in

fina

ncia

l di

fficu

lties

bec

ause

of

low

irri

gatio

n se

rvic

e fe

e co

llect

ion

ratio

and

hi

gher

man

agem

ent

cost

of O

&M

of

irri

gatio

n fa

cilit

ies.

Ben

efici

arie

s ar

e un

will

ing

to

pay

fees

bec

ause

ir

riga

tion

wat

er

is n

ot a

lway

s av

aila

ble.

Lik

ely

to b

e

a ca

tego

ry B

pr

ojec

t. E

nvir

onm

enta

l as

sess

men

t sh

ould

incl

ude

effe

cts

of p

roje

ct

on p

rior

ity

cons

erva

tion

area

s id

entifi

ed

in 2

002

NB

SAP.

Po

or w

ater

shed

in

tegr

ity

caus

ed b

y so

il er

osio

n fr

om

upla

nds

due

to

inap

prop

riat

e la

nd u

se

prac

tices

may

be

incr

easi

ng

O&

M c

osts

of

irri

gatio

n sy

stem

s

• •

As

part

of

proj

ect d

esig

n:

(i) id

entif

y fa

ctor

s be

hind

so

il er

osio

n th

at

poss

ibly

add

to

O&

M c

osts

of

irri

gatio

n sy

stem

; and

(ii

) des

ign

and

cost

rem

edia

l m

easu

res

to

mak

e pr

ojec

t m

ore

sust

aina

ble

over

the

long

te

rm

•Pr

epar

e a

prog

ram

mat

ic

envi

ronm

enta

l sa

fegu

ards

fr

amew

ork

for

sect

or in

vest

men

t co

mpo

nent

Tab

le 2

0 co

ntin

ued

cont

inue

d

Page 173: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

152 Country Environmental Analysis 2008: Philippines

Proj

ect/

Prog

ram

N

ame

Typ

e/C

ost

Prop

osed

Act

ivit

ies

Env

iron

men

tal

Issu

es I

dent

ified

in

CSP

UA

sses

smen

t

Opp

ortu

niti

es

to S

tren

gthe

n Pr

ojec

t

Env

iron

men

tal

Ris

k R

educ

tion

M

easu

res

Will

requ

ire

prog

ram

mat

ic

EIA

und

er n

ew

envi

ronm

enta

l as

sess

men

t gu

idel

ines

•C

onsi

der

supp

ortin

g pr

otec

tion

of p

rior

ity

cons

erva

tion

area

s in

the

proj

ect a

rea

even

if

envi

ronm

enta

l as

sess

men

t co

nclu

des

that

pr

ojec

t will

ha

ve n

o im

pact

on

thos

e ar

eas.

Cos

ts w

ould

be

rela

tivel

y m

odes

t and

gr

ant fi

nanc

ing

coul

d be

foun

d.

Tab

le 2

0 co

ntin

ued

cont

inue

d

Page 174: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

Chapter 5: Implications for Country Partnership Strategy 153Pr

ojec

t/Pr

ogra

m

Nam

eT

ype/

Cos

tPr

opos

ed A

ctiv

itie

s

Env

iron

men

tal

Issu

es I

dent

ified

in

CSP

UA

sses

smen

t

Opp

ortu

niti

es

to S

tren

gthe

n Pr

ojec

t

Env

iron

men

tal

Ris

k R

educ

tion

M

easu

res

Inte

rmod

al

Tra

nspo

rt

Dev

elop

men

t

NC

, EC

O,

PSD

; PP

TA

$1.0

mill

ion,

pr

ojec

t loa

n $1

00 m

illio

n

Will

impr

ove

acce

ss to

re

mot

e ar

eas o

f sou

ther

n Ph

ilipp

ines

(par

ticul

arly

M

inda

nao,

Sul

u, a

nd

Pala

wan

) thr

ough

a m

ore

effic

ient

, com

plem

enta

ry,

inte

rmod

al (a

ir, se

a, a

nd

land

) tra

nspo

rt sy

stem

. C

ritic

al is

sues

will

in

clud

e (i)

impr

ovin

g in

fras

truc

ture

and

se

rvic

es o

n in

ter-

and

in

tra-

islan

d lin

ks,

part

icul

arly

on

nonc

omm

erci

al ro

utes

, th

roug

h su

stai

nabl

e fu

ndin

g m

echa

nism

s; (ii

) im

prov

ing

inte

rmod

al a

nd

hint

erla

nd c

onne

ctio

ns;

(iii)

attr

actin

g in

crea

sed

priv

ate

sect

or

part

icip

atio

n; a

nd

(iv) i

mpr

ovin

g tr

ansp

ort

safe

ty.

To

be id

entifi

edA

n in

dire

ct e

ffec

t of

road

upg

radi

ng

and

exte

nsio

n is

incr

ease

d ac

cess

ibili

ty to

pr

oduc

tive

or

prot

ecte

d na

tura

l re

sour

ces.

Thi

s m

ay b

e a

part

icul

ar

issu

e in

that

par

t of

the

proj

ect t

hat

will

impr

ove

the

hint

erla

nd.

Con

side

r su

ppor

ting

prot

ectio

n of

pri

orit

y co

nser

vatio

n ar

eas

in th

e pr

ojec

t are

a ev

en

if en

viro

nmen

tal

asse

ssm

ent

conc

lude

s th

at th

e pr

ojec

t will

hav

e no

impa

ct o

n th

ose

area

s. T

he c

osts

w

ould

be

rela

tivel

y m

odes

t and

gra

nt

finan

cing

cou

ld b

e fo

und.

Ens

ure

envi

ronm

enta

l as

sess

men

ts

incl

ude

asse

ssm

ent

of c

umul

ativ

e ef

fect

s, ac

cord

ing

to A

DB

gu

idel

ines

, of

incr

ease

d ac

cess

ibili

ty

from

rura

l roa

d im

prov

emen

ts,

and

effe

cts

of p

roje

ct

on p

rior

ity

cons

erva

tion

area

s ide

ntifi

ed

in 2

002

NB

SAP

Add

ress

cu

mul

ativ

e ef

fect

s in

EM

P

• •

Tab

le 2

0 co

ntin

ued

cont

inue

d

Page 175: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

154 Country Environmental Analysis 2008: Philippines

Proj

ect/

Prog

ram

N

ame

Typ

e/C

ost

Prop

osed

Act

ivit

ies

Env

iron

men

tal

Issu

es I

dent

ified

in

CSP

UA

sses

smen

t

Opp

ortu

niti

es

to S

tren

gthe

n Pr

ojec

t

Env

iron

men

tal

Ris

k R

educ

tion

M

easu

res

Dev

elop

men

t of

Sm

all-

Scal

e G

as F

ield

and

M

arsh

Gas

in

the

Phi

lippi

nes

PI,

EC

O,

PSD

; PP

TA

$0.9

5 m

illio

n

Will

pre

pare

dev

elop

-m

ent p

lan

for s

mal

l ga

s fiel

d an

d m

arsh

gas

re

sour

ces,

and

feas

ibili

ty

stud

y fo

r priv

ate

sect

or

finan

cing

, with

AD

B in

ca

taly

tic ro

le

Env

iron

men

tal

conc

erns

and

issu

es

to b

e d

eter

min

ed

by P

PTA

Env

iron

men

tal

issu

es a

nd c

once

rns

iden

tified

in C

SPU

co

ncep

t pap

er a

re

appr

opri

ate

and

valid

Non

eE

nsur

e P

PTA

in

clud

es E

IA o

f pr

ojec

t

Stre

ngth

enin

g P

rovi

ncia

l P

lann

ing

EC

O, G

G;

AD

TA

$0.2

0 m

illio

n

Gen

eral

obj

ectiv

e: to

st

reng

then

pro

vinc

ial

deve

lopm

ent p

lann

ing,

pa

rtic

ular

ly fo

r ec

onom

ic g

row

th a

nd

pove

rty

redu

ctio

n.

Spec

ific

obje

ctiv

es:

(i) to

form

ulat

e pl

anni

ng

guid

elin

es fo

r pro

vinc

ial

deve

lopm

ent p

lann

ing,

an

d (ii

) to

deve

lop,

th

roug

h tr

aini

ng,

prov

inci

al c

apac

ity fo

r de

velo

pmen

t pla

nnin

g,

stra

tegi

c pr

iori

tizat

ion,

re

sour

ce a

lloca

tion,

an

d in

vest

men

t pr

ogra

mm

ing.

Prov

inci

al

deve

lopm

ent

guid

elin

es s

houl

d ad

dres

s so

cial

and

en

viro

nmen

tal

issu

es

Env

iron

men

tal

issu

es a

nd c

once

rns

iden

tified

in C

SPU

co

ncep

t pap

er a

re

appr

opri

ate

and

valid

Ens

ure

that

TA

pa

per o

bjec

tives

an

d sc

ope,

and

th

e co

nsul

tant

’s te

rms

of re

fere

nce,

in

clud

e th

e ne

ed

to in

corp

orat

e en

viro

nmen

tal

cons

ider

atio

ns

into

pla

nnin

g de

velo

pmen

t gu

idel

ines

To

be id

entifi

ed

Tab

le 2

0 co

ntin

ued

cont

inue

d

Page 176: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

Chapter 5: Implications for Country Partnership Strategy 155

Proj

ect/

Prog

ram

N

ame

Typ

e/C

ost

Prop

osed

Act

ivit

ies

Env

iron

men

tal

Issu

es I

dent

ified

in

CSP

UA

sses

smen

t

Opp

ortu

niti

es

to S

tren

gthe

n Pr

ojec

t

Env

iron

men

tal

Ris

k R

educ

tion

M

easu

res

Reg

iona

l C

itie

s Air

Q

ualit

y Im

prov

emen

t

EN

V; P

PTA

$0

.70

mill

ion

(i) R

evie

w a

nd e

valu

ate

air q

ualit

y in

sel

ecte

d re

gion

al c

ities

, inc

ludi

ng

stat

us, e

mis

sion

sou

rces

, an

d in

stitu

tiona

l ar

rang

emen

ts;

(ii) p

repa

re a

ir q

ualit

y m

anag

emen

t pla

n fo

r ea

ch c

ity;

(iii)

iden

tify

inve

stm

ent n

eede

d to

impl

emen

t pl

ans;

(iv) d

esig

n in

vest

men

t pac

kage

s fo

r AD

B fu

ndin

g; a

nd

(v) c

ondu

ct tr

aini

ng to

st

reng

then

inst

itutio

nal

capa

city

for a

ir q

ualit

y m

anag

emen

t in

regi

onal

ci

ties

Will

impr

ove

envi

ronm

ent i

n re

gion

al c

ities

. N

o so

cial

or

envi

ronm

enta

l is

sues

.

Env

iron

men

tal

issu

es a

nd c

once

rns

iden

tified

in C

SPU

co

ncep

t pap

er a

re

appr

opri

ate

and

valid

Non

eN

one

Tab

le 2

0 co

ntin

ued

cont

inue

d

Page 177: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

156 Country Environmental Analysis 2008: Philippines

Proj

ect/

Prog

ram

N

ame

Typ

e/C

ost

Prop

osed

Act

ivit

ies

Env

iron

men

tal

Issu

es I

dent

ified

in

CSP

UA

sses

smen

t

Opp

ortu

niti

es

to S

tren

gthe

n Pr

ojec

t

Env

iron

men

tal

Ris

k R

educ

tion

M

easu

res

Min

dana

o U

plan

d C

omm

unit

ies

Dev

elop

men

t P

roje

ct

CP

I, E

CO

, E

NV

, GG

; 30

Pove

rty

redu

ctio

n am

ong

upla

nd

com

mun

ities

thro

ugh

com

mun

ity-

base

d,

ecol

ogic

ally

sus

tain

able

w

ater

shed

and

nat

ural

re

sour

ces

man

agem

ent.

Com

pone

nts:

(i) a

grof

ores

try

and

livel

ihoo

d im

prov

emen

t, (ii

) inf

rast

ruct

ure

and

soci

al d

evel

opm

ent,

and

(iii)

wat

ersh

ed

man

agem

ent.

Out

puts

: im

prov

emen

ts in

(i)

infr

astr

uctu

re,

(ii) l

and

prod

uctiv

ity,

(iii)

wat

ersh

ed

man

agem

ent,

and

(iv) c

omm

unit

y sk

ills.

Add

ress

soc

ial

unre

st a

nd

envi

ronm

ent

degr

adat

ion

caus

ed

by p

over

ty

Env

iron

men

tal

issu

es a

nd c

once

rns

iden

tified

in C

SPU

co

ncep

t pap

er a

re

appr

opri

ate

and

valid

Non

eN

one

Tab

le 2

0 co

ntin

ued

cont

inue

d

Page 178: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

Chapter 5: Implications for Country Partnership Strategy 157Pr

ojec

t/Pr

ogra

m

Nam

eT

ype/

Cos

tPr

opos

ed A

ctiv

itie

s

Env

iron

men

tal

Issu

es I

dent

ified

in

CSP

UA

sses

smen

t

Opp

ortu

niti

es

to S

tren

gthe

n Pr

ojec

t

Env

iron

men

tal

Ris

k R

educ

tion

M

easu

res

Aqu

acul

ture

D

evel

opm

ent

CP

I, E

CO

, H

D, G

G; 3

0A

quac

ultu

re

deve

lopm

ent

part

icul

arly

de

velo

pmen

t and

im

prov

emen

t of

fres

hwat

er, b

rack

ish-

wat

er, a

nd m

arin

e fis

h fa

rmin

g sy

stem

s, an

d aq

uatic

spe

cies

(c

arp,

tila

pia,

eel

s, tu

rtle

s, gr

oupe

rs,

sea

bass

, pra

wns

, m

ilkfis

h, a

quar

ium

fis

h, s

eaw

eeds

, sh

ellfi

sh, s

eaho

rses

, w

rass

es, e

tc.)

Dev

elop

men

t of

prod

uctio

n su

ppor

t se

rvic

es, p

artic

ular

ly

post

harv

est,

proc

essi

ng, a

nd

mar

ketin

g fa

cilit

ies,

and

exte

nsio

n se

rvic

es

• •

Issu

es

affe

ctin

g th

e co

mm

uniti

es,

incl

udin

g dw

indl

ing

fish

stoc

k in

coa

stal

an

d in

land

w

ater

s du

e to

ov

erfis

hing

, de

grad

atio

n of

nat

ural

fish

ha

bita

ts, a

nd

wat

er p

ollu

tion,

an

d po

nd

man

agem

ent

Wat

er

pollu

tion

from

aq

uacu

lture

Wat

er p

ollu

tion

from

indu

stri

al

activ

ities

and

im

prop

er w

aste

m

anag

emen

t

• • •

Bui

ld L

GU

ca

paci

ty

to p

rovi

de

tech

nica

l gu

idan

ce to

op

erat

ors

in fe

ed

man

agem

ent

Use

car

ryin

g ca

paci

ty a

s ba

sis

for z

onin

gD

eter

min

e nu

mbe

r and

sp

acin

g of

cag

es

on th

e ba

sis

of c

arry

ing

capa

city

Mon

itor w

ater

qu

alit

y

• • • •

Bui

ld o

n le

sson

s le

arne

d fr

om p

ast

coas

tal a

nd m

arin

e re

sour

ce p

roje

cts

in th

e P

hilip

pine

s, pa

rtic

ular

ly

rega

rdin

g co

mm

unit

y gr

oup

form

atio

n, c

redi

t pr

ovis

ion,

and

st

reng

then

ing

of

loca

l rul

es a

nd

regu

latio

ns

Ens

ure

that

aq

uacu

lture

ex

pans

ion

does

not

occ

ur

in im

port

ant

coas

tal

ecos

yste

ms

and

prot

ecte

d ar

eas

Eva

luat

e ca

rryi

ng

capa

city

of t

he

syst

em

• •

Tab

le 2

0 co

ntin

ued

cont

inue

d

Page 179: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

158 Country Environmental Analysis 2008: Philippines

Proj

ect/

Prog

ram

N

ame

Typ

e/C

ost

Prop

osed

Act

ivit

ies

Env

iron

men

tal

Issu

es I

dent

ified

in

CSP

UA

sses

smen

t

Opp

ortu

niti

es

to S

tren

gthe

n Pr

ojec

t

Env

iron

men

tal

Ris

k R

educ

tion

M

easu

res

Inst

itutio

nal

stre

ngth

enin

g an

d pr

ojec

t man

agem

ent,

spec

ifica

lly

deve

lopm

ent o

f aq

uacu

lture

pol

icy

and

regu

latio

n,

and

aqua

cultu

re

prod

uctio

n an

d m

arke

t inf

orm

atio

n sy

stem

•L

ow L

GU

ca

paci

tyL

ack

of

tech

nica

l kn

ow-h

ow a

nd

enfo

rcem

ent

amon

g lo

cal

gove

rnm

ents

• •

Stre

ngth

en

LG

U’s,

BFA

R’s,

an

d D

EN

R’s

capa

city

an

d re

solv

e du

plic

ativ

e re

spon

sibi

litie

sC

onsi

der

appr

oach

bas

ed

on in

tegr

ated

w

ater

shed

m

anag

emen

t

• •

AD

B =

Asi

an D

evel

opm

ent

Ban

k, A

DTA

= a

dvis

ory

tech

nica

l as

sist

ance

, A

OTA

= a

dvis

ory

and

oper

atio

nal

tech

nica

l as

sist

ance

, A

RC

= a

grar

ian

refo

rm

com

mun

ity,

BFA

R =

Bur

eau

of F

ishe

ries

and

Aqu

atic

Res

ourc

es, C

DM

= C

lean

Dev

elop

men

t M

echa

nism

, CP

I =

core

pov

erty

inte

rven

tion,

CSP

U =

cou

ntry

st

rate

gy p

rogr

am u

pdat

e, D

AR

= D

epar

tmen

t of A

grar

ian

Ref

orm

, DE

NR

= D

epar

tmen

t of E

nvir

onm

ent a

nd N

atur

al R

esou

rces

, EC

C =

envi

ronm

enta

l com

plia

nce

cert

ifica

te, E

CO

= e

cono

mic

gro

wth

, EM

P =

env

iron

men

tal m

anag

emen

t pl

an, E

NR

= e

nvir

onm

ent

and

natu

ral r

esou

rces

, EN

V =

env

iron

men

tal p

rote

ctio

n,

GG

= g

ood

gove

rnan

ce, H

D =

hum

an d

evel

opm

ent,

IEE

= in

itial

env

iron

men

tal e

xam

inat

ion,

LG

U =

loca

l gov

ernm

ent

unit,

NB

SAP

= n

atio

nal b

iodi

vers

ity

stra

tegy

and

act

ion

plan

, NC

= n

ot c

lass

ified

in c

once

pt p

aper

, NG

O =

non

gove

rnm

ent o

rgan

izat

ion,

NIA

= N

atio

nal I

rrig

atio

n A

dmin

istr

atio

n, O

&M

= o

pera

tion

and

mai

nten

ance

, PI

= po

vert

y in

terv

entio

n, P

PTA

= p

roje

ct p

repa

rato

ry te

chni

cal a

ssis

tanc

e, P

SD =

pri

vate

sect

or d

evel

opm

ent,

RB

O =

rive

r bas

in o

rgan

izat

ion,

SM

E =

sm

all

and

med

ium

-siz

ed e

nter

pris

es, T

A =

tec

hnic

al a

ssis

tanc

e, T

rans

co =

Nat

iona

l Tra

nsm

issi

on C

orpo

ratio

n, W

ESM

= w

hole

sale

ele

ctri

city

spo

t m

arke

t.

Tab

le 2

0 co

ntin

ued

Page 180: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

Appendixes

Page 181: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

160 Country Environmental Analysis 2008: Philippines

Maj

or R

iver

B

asin

Wat

er R

esou

rces

R

egio

n

Year

ly W

ater

Req

uire

men

t(i

n M

CM

) in

2005

aYe

arly

Wat

erA

vaila

bilit

y b

Wei

ghte

dSc

ore

Wat

er R

atin

g

Pote

ntia

lD

eman

dPo

tent

ial

Rat

ioPo

tent

ial

Rat

ing

m3 /

pers

onR

atio

Rat

ing

Pote

ntia

lA

vaila

-bi

lity

Wei

ghte

d Sc

ore

Pasi

g-L

agun

a4

(Sou

ther

n T

agal

og)

1,81

62,

977

0.61

0.15

124

0.07

0.04

0.09

UU

U

Ceb

u Is

land

c7

(Cen

tral

V

isay

as)

708

932

0.76

0.19

218

0.13

0.06

0.13

UU

U

Pam

pang

a3

(Cen

tral

Luz

on)

4,68

89.

015

0.52

0.13

888

0.52

0.26

0.20

UU

U

Agn

o3

(Cen

tral

Luz

on)

2,27

54.

063

0.56

0.14

972

0.57

0.29

0.21

UU

U

Cag

ayan

2 (C

agay

an V

alle

y)1,

150

1,79

70.

640.

162,

143

1.26

0.55

0.36

UM

U

Jala

ur6

(Wes

tern

V

isay

as)

1,35

11,

251

1.08

0.27

1,65

70.

970.

490.

38U

MU

Bic

ol5

(Bic

ol)

2,13

81,

388

1.54

0.39

1,53

30.

900.

450.

42U

MM

Ilog

-H

ilaba

ngan

6 (W

este

rn

Vis

ayas

)5,

496

2,98

71.

840.

461,

843

1.08

0.55

0.50

MM

M

Agu

s12

(Sou

ther

n M

inda

nao)

1,44

966

52.

180.

575,

070

2.98

0.62

0.60

MM

S

Dav

ao11

(Sou

thea

ster

n M

inda

nao)

1,47

629

74.

970.

662,

368

1.39

0.56

0.61

SM

S

Tag

oloa

n10

(Nor

ther

n M

inda

nao)

2,20

047

34.

650.

653,

646

2.14

0.59

0.62

SM

S

Tag

um-

Lib

ugan

on11

(Sou

thea

ster

n M

inda

nao)

2,50

441

26.

080.

693,

449

2.03

0.58

0.64

SM

S

App

endi

x 1:

Wat

er Q

uant

ity

Scor

ecar

d fo

r Maj

or R

iver

s and

Bas

ins a

nd H

ot S

pots

Rat

ing

fo

r Wat

er Q

uant

ity

cont

inue

d

Page 182: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

Appendixes 161

Maj

or R

iver

B

asin

Wat

er R

esou

rces

R

egio

n

Year

ly W

ater

Req

uire

men

t(i

n M

CM

) in

2005

aYe

arly

Wat

erA

vaila

bilit

y b

Wei

ghte

dSc

ore

Wat

er R

atin

g

Pote

ntia

lD

eman

dPo

tent

ial

Rat

ioPo

tent

ial

Rat

ing

m3 /

pers

onR

atio

Rat

ing

Pote

ntia

lA

vaila

-bi

lity

Wei

ghte

d Sc

ore

Min

dana

o11

(Sou

ther

n M

inda

nao)

24,8

546,

923

3.59

0.61

7,02

74.

130.

670.

64S

SS

Bua

yan

Mal

ungo

n11

(Sou

thea

ster

n M

inda

nao)

3,67

270

15.

240.

665,

656

3.33

0.64

0.65

SS

S

Abr

a1

(Ilo

cos)

2,47

937

86.

550.

704,

954

2.91

0.62

0.66

SS

S

Pana

y6

(Wes

tern

V

isay

as)

4,34

060

97.

130.

726,

782

3.99

0.67

0.69

SS

S

Cag

ayan

de

Oro

10 (

Nor

ther

n M

inda

nao)

4,32

635

512

.18

0.88

9,32

15.

480.

730.

80S

SS

Abu

log

2 (C

agay

an V

alle

y)1,

827

237

7.72

0.74

19,2

2811

.31

0.97

0.86

SS

S

Agu

san

10 (N

orth

ern

Min

dana

o)15

,984

1,03

715

.41

0.98

13,7

328.

080.

840.

91S

SS

U =

uns

atis

fact

ory,

M =

mar

gina

l, S

= sa

tisfa

ctor

y.a A

t 80%

dep

enda

bilit

y of

surf

ace

wat

er a

vaila

bilit

y us

ing

low

flow

and

ado

ptin

g lo

w e

cono

mic

gro

wth

scen

ario

(JI

CA

-NW

RB

Mas

ter P

lan

Stud

y on

Wat

er R

esou

rces

M

anag

emen

t of t

he P

hilip

pine

s, 19

98).

Rat

io o

f 2 o

r les

s is

an

indi

catio

n of

a s

hort

fall

that

wou

ld c

reat

e w

ater

sho

rtag

e.b A

mou

nt o

f ann

ual r

enew

able

wat

er re

sour

ces p

er c

apita

(JI

CA

-NW

RB

Mas

ter P

lan

Stud

y on

Wat

er R

esou

rces

Man

agem

ent o

f the

Phi

lippi

nes,

1998

). A

reas

whe

re

per c

apita

wat

er s

uppl

y dr

ops

belo

w 1

,700

m3/

year

are

exp

erie

ncin

g w

ater

str

ess

(Wor

ld R

esou

rces

Ins

titut

e, 2

000)

.c C

ebu

Isla

nd is

incl

uded

bec

ause

it is

sec

ond

only

to M

etro

Man

ila in

eco

nom

ic s

igni

fican

ce.

Sour

ce: W

orld

Ban

k, P

hilip

pine

Env

iron

men

t M

onit

or 2

003

(Nat

iona

l W

ater

Res

ourc

es B

oard

–Nat

iona

l W

ater

Inf

orm

atio

n N

etw

ork

Proj

ect;

data

com

pile

d fr

om

vari

ous

feas

ibili

ty s

tudi

es o

f wat

er d

istr

icts

, LW

UA

, 200

3.

App

endi

x 1

cont

inue

d

Page 183: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

162 Country Environmental Analysis 2008: Philippines

cont

inue

d

App

endi

x 2:

M

ajor

Env

iron

men

t and

Nat

ural

Res

ourc

es L

aws a

nd R

egul

atio

nsT

itle

/Des

crip

tion

Year

Iss

ued

Gen

eral

Env

iron

men

t and

Nat

ural

Res

ourc

es

EO

406

: Phi

lippi

ne E

cono

mic

-Env

iron

men

tal a

nd N

atur

al R

esou

rce

Acc

ount

ing

(PE

EN

RA

) Sys

tem

19

97

EO

192

: Reo

rgan

izin

g th

e D

epar

tmen

t of E

nvir

onm

ent a

nd N

atur

al R

esou

rces

1987

PD

115

1: P

hilip

pine

Env

iron

men

tal P

olic

y, de

clar

ing

it a

cont

inuo

us p

olic

y of

the

stat

e to

pro

vide

the

peop

le w

ith a

he

alth

y en

viro

nmen

t19

77

PD

115

2: P

hilip

pine

Env

iron

men

tal C

ode,

out

linin

g th

e st

ate

polic

y fo

r the

man

agem

ent o

f air

and

wat

er q

ualit

y an

d la

nd

use,

nat

ural

reso

urce

man

agem

ent a

nd c

onse

rvat

ion,

was

te m

anag

emen

t, et

c.19

77

PD

984

: Pol

lutio

n C

ontr

ol L

aw o

f 197

6, m

anda

ting

the

crea

tion

of th

e N

atio

nal P

ollu

tion

Con

trol

Com

mis

sion

and

se

ttin

g a

natio

nal p

olic

y of

pre

vent

ing,

aba

ting,

and

con

trol

ling

the

pollu

tion

of w

ater

, air,

and

land

, for

mor

e ef

fect

ive

use

of re

sour

ces

1976

Fore

stry

EO

318

: Pro

mot

ing

Sust

aina

ble

Fore

st M

anag

emen

t in

the

Phi

lippi

nes

2004

RA

917

5: C

hain

Saw

Act

of 2

002,

regu

latin

g th

e ow

ners

hip,

pos

sess

ion,

sal

e, im

port

atio

n, a

nd u

se o

f cha

insa

ws

and

pena

lizin

g vi

olat

ions

2002

RA

804

8: C

ocon

ut P

rese

rvat

ion

Act

of 1

995,

pro

vidi

ng fo

r the

regu

latio

n of

the

cutt

ing

of c

ocon

ut tr

ees,

thei

r re

plen

ishm

ent,

and

othe

r pur

pose

s19

95

EO

277

: Am

endi

ng th

e R

evis

ed F

ores

try

Cod

e P

D 7

05 b

y in

crea

sing

the

fore

st c

harg

es o

n tim

ber a

nd o

ther

fore

st

prod

ucts

1987

PD

705

: Rev

ised

For

estr

y C

ode

1985

BP

701

: Am

endi

ng s

ectio

n 36

of t

he R

evis

ed F

ores

try

Cod

e (P

D 7

05)

1984

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Appendixes 163A

ppen

dix

2 co

ntin

ued

Tit

le/D

escr

ipti

onYe

ar I

ssue

d

PD

177

5: A

men

ding

sec

tion

80 o

f the

Rev

ised

For

estr

y C

ode

(PD

705

) pro

hibi

ting

the

cutt

ing,

des

troy

ing,

or i

njur

ing

of

plan

ted

or g

row

ing

tree

s, flo

wer

ing

plan

ts a

nd s

hrub

s, or

pla

nts

of s

ceni

c va

lue

alon

g pu

blic

road

s, in

pla

zas,

park

s, sc

hool

s pr

emis

es, o

r any

oth

er p

ublic

ple

asur

e gr

ound

1981

RA

357

2: P

rohi

bitin

g th

e cu

ttin

g of

tind

alo,

akl

e, a

nd m

olav

e tr

ees

unde

r cer

tain

con

ditio

ns, a

nd p

enal

izin

g vi

olat

ions

1929

Agr

icul

ture

EO

481

: Pro

mot

ing

and

deve

lopi

ng o

rgan

ic a

gric

ultu

re in

the

Phi

lippi

nes

2005

RA

853

2: A

men

ding

sec

tion

63 o

f the

Com

preh

ensi

ve A

grar

ian

Ref

orm

Pro

gram

(CA

RP

) Law

of 1

988

(RA

665

7),

prov

idin

g an

aug

men

tatio

n fu

nd fo

r the

pro

gram

1998

RA

843

5: A

gric

ultu

re a

nd F

ishe

ries

Mod

erni

zatio

n A

ct o

f 199

7, p

resc

ribi

ng u

rgen

t mea

sure

s to

mod

erni

ze th

e ag

ricu

lture

an

d fis

hery

sec

tors

, mak

e th

em m

ore

profi

tabl

e, a

nd p

repa

re th

em fo

r the

cha

lleng

es o

f glo

baliz

atio

n th

roug

h ad

equa

te,

focu

sed,

and

ratio

nal d

eliv

ery

of s

ervi

ces,

and

appr

opri

atin

g fu

nds

for t

hat p

urpo

se

1997

RA

790

7: A

men

ding

the

Cod

e of

Agr

aria

n R

efor

m in

the

Phi

lippi

nes

(RA

384

4), a

s am

ende

d 19

95

RA

788

1: A

men

ding

cer

tain

pro

visi

ons

of th

e C

ompr

ehen

sive

Agr

aria

n R

efor

m L

aw o

f 198

8 (R

A 6

657)

19

95

RA

790

5: S

tren

gthe

ning

the

impl

emen

tatio

n of

the

Com

preh

ensi

ve A

grar

ian

Ref

orm

Pro

gram

, and

for o

ther

pur

pose

s19

95

RA

665

7: C

ompr

ehen

sive

Agr

aria

n R

efor

m L

aw o

f 198

819

88

EO

229

: Pro

vidi

ng fo

r the

mec

hani

sm fo

r the

impl

emen

tatio

n of

the

Com

preh

ensi

ve A

grar

ian

Ref

orm

Pro

gram

1987

PD

2: P

rocl

aim

ing

the

entir

e co

untr

y a

land

refo

rm a

rea

1972

PD

27:

Dec

reei

ng th

e em

anci

patio

n of

tena

nts

from

the

bond

age

of th

e so

il, tr

ansf

erri

ng to

them

the

owne

rshi

p of

the

land

th

ey ti

ll, a

nd p

rovi

ding

the

inst

rum

ents

and

mec

hani

sm th

eref

or19

72 cont

inue

d

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164 Country Environmental Analysis 2008: Philippines

Tit

le/D

escr

ipti

onYe

ar I

ssue

d

Fis

heri

es

RA

855

0: P

hilip

pine

Fis

heri

es C

ode

of 1

998,

pro

vidi

ng fo

r the

dev

elop

men

t, m

anag

emen

t, an

d co

nser

vatio

n of

fish

erie

s an

d aq

uatic

reso

urce

s, in

tegr

atin

g al

l law

s pe

rtin

ent t

here

to, a

nd fo

r oth

er p

urpo

ses

1998

DA

O 0

3, s

. 199

8: I

mpl

emen

ting

rule

s an

d re

gula

tions

for t

he P

hilip

pine

Fis

heri

es C

ode

of 1

998

(RA

855

0)19

98

RA

843

5: A

gric

ultu

re a

nd F

ishe

ries

Mod

erni

zatio

n A

ct19

97

BP

58:

Am

endi

ng th

e la

w p

rohi

bitin

g th

e ca

tchi

ng, s

ale,

off

er to

sel

l, or

pur

chas

e of

the

fish

spec

ies

Gob

iidae

(ipo

n) (R

A

5474

), as

am

ende

d by

RA

614

5 19

80

PD

979

: Pro

vidi

ng fo

r the

revi

sion

of t

he M

arin

e Po

llutio

n D

ecre

e of

197

4 (P

D 6

00)

1976

PD

601

: Rev

ised

Coa

st G

uard

Law

1974

Min

ing

EO

689

: Tra

nsfe

rrin

g ba

ck th

e P

hilip

pine

Min

ing

Dev

elop

men

t Cor

pora

tion

from

the

Offi

ce o

f the

Pre

side

nt to

the

Dep

artm

ent o

f Env

iron

men

t and

Nat

ural

Res

ourc

es20

07

DA

O 1

6, s

. 200

5: A

men

ding

the

revi

sed

impl

emen

ting

rule

s an

d re

gula

tions

(DA

O 9

6-40

) for

the

Phi

lippi

ne M

inin

g A

ct

of 1

995

(RA

794

2), a

s am

ende

d, p

rovi

ding

for e

xplo

ratio

n pe

rmits

for fi

nanc

ial o

r tec

hnic

al a

ssis

tanc

e in

the

cond

uct o

f m

iner

al e

xplo

ratio

n, a

nd fo

r oth

er p

urpo

ses

2005

DA

O 0

7, s

. 200

5: A

men

ding

cha

pter

XV

III

of th

e re

vise

d im

plem

entin

g ru

les

and

regu

latio

ns (D

AO

96-

40) f

or th

e P

hilip

pine

Min

ing

Act

of 1

995

(RA

794

2), a

s am

ende

d, p

rovi

ding

for t

he e

stab

lishm

ent o

f a F

inal

Min

e R

ehab

ilita

tion

and

Dec

omm

issi

onin

g Fu

nd

2005

DA

O 6

1, s

. 200

0: A

men

ding

the

revi

sed

impl

emen

ting

rule

s an

d re

gula

tions

(Am

endm

ent t

o D

AO

96-

40 [

DA

O 9

9-57

])

for t

he P

hilip

pine

Min

ing

Act

of 1

995

(RA

794

2)20

00 cont

inue

d

App

endi

x 2

cont

inue

d

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Appendixes 165

Tit

le/D

escr

ipti

onYe

ar I

ssue

d

DA

O 2

5, s

. 199

6: A

men

ding

sec

tion

257

of th

e im

plem

entin

g ru

les

and

regu

latio

ns fo

r the

Phi

lippi

ne M

inin

g A

ct o

f 19

95 (R

A 7

942)

1996

DA

O 4

0, s

. 199

6: R

evis

ed im

plem

entin

g ru

les

and

regu

latio

ns fo

r the

Phi

lippi

ne M

inin

g A

ct o

f 199

5 (R

A 7

942)

1996

DA

O 2

3, s

. 199

5: I

mpl

emen

ting

rule

s an

d re

gula

tions

for t

he P

hilip

pine

Min

ing

Act

of 1

995

(RA

794

2)19

95

RA

794

2: P

hilip

pine

Min

ing

Act

of 1

995,

inst

itutin

g a

new

sys

tem

of m

iner

al re

sour

ces

expl

orat

ion,

dev

elop

men

t, us

e, a

nd

cons

erva

tion

1995

DA

O 3

4, s

. 199

2: I

mpl

emen

ting

rule

s an

d re

gula

tions

for t

he P

eopl

e’s S

mal

l-Sc

ale

Min

ing

Act

of 1

991

(RA

707

6)19

92

RA

707

6: P

eopl

e’s S

mal

l-Sc

ale

Min

ing

Act

1991

DA

O 8

5, s

. 199

0: R

evis

ed im

plem

entin

g ru

les

and

regu

latio

ns fo

r the

Min

e W

aste

Tai

lings

Dam

age

Law

(PD

125

1), a

s am

ende

d, im

posi

ng m

ine

was

te a

nd ta

iling

s fe

es o

n op

erat

ing

min

ing

com

pani

es to

com

pens

ate

for d

amag

es to

pri

vate

la

ndow

ners

, and

for o

ther

pur

pose

s

1990

Coa

stal

and

Mar

ine

DA

O 2

007-

28: I

nstit

utio

naliz

ing

the

Man

ila B

ay E

nvir

onm

enta

l Man

agem

ent P

roje

ct w

ithin

the

DE

NR

thro

ugh

the

impl

emen

tatio

n of

the

oper

atio

nal p

lan

for t

he M

anila

Bay

Coa

stal

Str

ateg

y20

07

EO

533

: Ado

ptin

g th

e In

tegr

ated

Coa

stal

Man

agem

ent S

trat

egy

2006

DA

O 2

004-

24: R

evis

ed r

ules

and

regu

latio

ns fo

r the

adm

inis

trat

ion

and

man

agem

ent o

f for

esho

re la

nds

2004

DA

O 2

002-

08: C

oast

al E

nvir

onm

ent P

rogr

am, e

stab

lishi

ng th

e C

oast

al a

nd M

arin

e M

anag

emen

t Offi

ce a

s th

e na

tiona

l co

ordi

natin

g of

fice

for a

ll co

asta

l and

mar

ine

envi

ronm

ent a

ctiv

ities

2002

App

endi

x 2

cont

inue

d

cont

inue

d

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166 Country Environmental Analysis 2008: Philippines

Tit

le/D

escr

ipti

onYe

ar I

ssue

d

Eco

tour

ism

EO

111

: Nat

iona

l Eco

tour

ism

Str

ateg

y, cr

eatin

g th

e N

atio

nal E

coto

uris

m D

evel

opm

ent C

ounc

il (N

ED

C) a

nd re

quir

ing

the

prep

arat

ion

of a

Nat

iona

l Eco

tour

ism

Str

ateg

y (N

ES)

to g

uide

the

deve

lopm

ent o

f eco

tour

ism

in th

e co

untr

y19

99

Pro

tect

ed A

reas

and

Bio

dive

rsit

y

EO

578

: Est

ablis

hing

the

Nat

iona

l Pol

icy

on B

iolo

gica

l Div

ersi

ty, p

resc

ribi

ng it

s im

plem

enta

tion

thro

ugho

ut th

e co

untr

y, pa

rtic

ular

ly in

the

Sulu

-Sul

awes

i Mar

ine

Eco

syst

em a

nd th

e V

erde

Isl

and

Pass

age

Mar

ine

Cor

rido

r 20

06

RA

914

7: W

ildlif

e R

esou

rces

Con

serv

atio

n an

d Pr

otec

tion

Act

, pro

vidi

ng fo

r the

con

serv

atio

n an

d pr

otec

tion

of w

ildlif

e re

sour

ces

and

thei

r hab

itats

, app

ropr

iatin

g fu

nds

ther

efor

, and

for o

ther

pur

pose

s20

01

RA

907

2: N

atio

nal C

aves

and

Cav

e R

esou

rces

Man

agem

ent A

ct, t

o m

anag

e an

d pr

otec

t cav

es a

nd c

ave

reso

urce

s, an

d fo

r ot

her p

urpo

ses

2001

DA

O 4

4, s

. 200

0: A

men

ding

cer

tain

pro

visi

ons

of D

AO

96-

29 a

nd p

rovi

ding

spe

cific

gui

delin

es fo

r the

Est

ablis

hmen

t and

M

anag

emen

t of C

omm

unit

y-B

ased

Pro

ject

s w

ithin

Pro

tect

ed A

reas

2000

DA

O 2

0, s

. 199

6: I

mpl

emen

ting

rule

s an

d re

gula

tions

for t

he p

rosp

ectin

g of

bio

logi

cal a

nd g

enet

ic re

sour

ces

1996

DA

O 3

1, s

. 199

6: A

men

ding

sec

tion

61 o

f the

impl

emen

ting

rule

s an

d re

gula

tions

(DA

O 2

5, s

. 199

2) fo

r the

Nat

iona

l In

tegr

ated

Pro

tect

ed A

reas

Act

of 1

992

(RA

758

6)19

96

EO

247

: Pre

scri

bing

gui

delin

es a

nd e

stab

lishi

ng a

regu

lato

ry fr

amew

ork

for t

he p

rosp

ectin

g of

bio

logi

cal a

nd g

enet

ic

reso

urce

s, th

eir b

y-pr

oduc

ts a

nd d

eriv

ativ

es, f

or s

cien

tific

and

com

mer

cial

pur

pose

s, an

d fo

r oth

er p

urpo

ses

1995

DA

O 2

5, s

. 199

2: I

mpl

emen

ting

rule

s an

d re

gula

tions

for t

he N

atio

nal I

nteg

rate

d Pr

otec

ted

Are

as S

yste

m A

ct o

f 199

2 (R

A 7

586)

1992

RA

758

6: N

atio

nal I

nteg

rate

d Pr

otec

ted

Are

as S

yste

m A

ct o

f 199

219

92 cont

inue

d

App

endi

x 2

cont

inue

d

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Appendixes 167

Tit

le/D

escr

ipti

onYe

ar I

ssue

d

DA

O 4

8, s

. 199

1: E

stab

lishi

ng a

nat

iona

l lis

t of r

are,

end

ange

red,

thre

aten

ed, v

ulne

rabl

e, in

dete

rmin

ate,

and

insu

ffici

ently

kn

own

spec

ies

of P

hilip

pine

wild

bir

ds, m

amm

als,

and

rept

iles

1991

PD

121

9, a

s am

ende

d by

PD

169

8 (1

980)

; Cor

al R

esou

rces

Dev

elop

men

t and

Con

serv

atio

n D

ecre

e19

77

Wat

er R

esou

rces

EO

510

: Cre

atin

g th

e R

iver

Bas

in C

ontr

ol O

ffice

2006

DA

O 2

005-

10: P

resc

ribi

ng th

e im

plem

entin

g ru

les

and

regu

latio

ns fo

r the

Cle

an W

ater

Act

20

05

EO

387

: Tra

nsfe

rrin

g th

e L

ocal

Wat

er U

tiliti

es A

dmin

istr

atio

n fr

om th

e O

ffice

of t

he P

resi

dent

to th

e D

epar

tmen

t of

Pub

lic W

orks

and

Hig

hway

s (D

PW

H) a

nd s

tren

gthe

ning

the

supe

rvis

ion

of th

e M

etro

polit

an W

ater

wor

ks a

nd S

ewer

age

Syst

em b

y th

e D

PW

H s

ecre

tary

2004

EO

359

: Cre

atin

g th

e B

icol

Riv

er B

asin

pro

ject

man

agem

ent o

ffice

and

defi

ning

its

scop

e of

aut

hori

ty20

04

RA

927

5: C

lean

Wat

er A

ct o

f 200

420

04

RA

804

1: N

atio

nal W

ater

Cri

sis

Act

of 1

995

1995

PD

979

: Mar

ine

Pollu

tion

Dec

ree

of 1

976

1976

PD

106

7: W

ater

Cod

e of

the

Phi

lippi

nes

1976

PD

856

: San

itatio

n C

ode

of th

e P

hilip

pine

s, se

ttin

g th

e re

quire

d ac

tiviti

es in

man

agin

g se

wer

age

and

corr

espo

ndin

g sy

stem

s19

75

PD

274

: Per

tain

ing

to th

e pr

eser

vatio

n, b

eaut

ifica

tion,

impr

ovem

ent,

and

gain

ful u

se o

f the

Pas

ig R

iver

, pro

vidi

ng fo

r the

re

gula

tion

and

cont

rol o

f pol

lutio

n of

the

rive

r and

its

bank

s to

enh

ance

its

soci

oeco

nom

ic u

sefu

lnes

s19

73

App

endi

x 2

cont

inue

d

cont

inue

d

Page 189: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

168 Country Environmental Analysis 2008: Philippines

Tit

le/D

escr

ipti

onYe

ar I

ssue

d

RA

485

0, a

s am

ende

d by

PD

813

, EO

927

: Cre

atin

g th

e L

agun

a L

ake

Dev

elop

men

t Aut

hori

ty to

acc

eler

ate

the

deve

lopm

ent a

nd b

alan

ced

grow

th o

f the

Lag

una

de B

ay re

gion

with

due

rega

rd a

nd a

dequ

ate

prov

isio

ns fo

r env

iron

men

tal

man

agem

ent

1966

Air

Qua

lity

DA

O 2

000-

81: I

mpl

emen

ting

rule

s an

d re

gula

tions

for t

he C

lean

Air

Act

of 1

999

(RA

874

9)20

00

RA

874

9: C

lean

Air

Act

of 1

999,

am

endi

ng s

ectio

ns 5

7–66

pro

visi

ons

on a

ir p

ollu

tion

cont

rol o

f PD

984

; exp

ande

d th

e sc

ope

of a

ctiv

ity

of D

EN

R b

y m

anda

ting

the

form

ulat

ion

of th

e In

tegr

ated

Air

Qua

lity

Impr

ovem

ent F

ram

ewor

k19

99

Ene

rgy

RA

936

7: B

iofu

els

Act

of 2

006,

dire

ctin

g th

e us

e of

bio

fuel

s, es

tabl

ishi

ng th

e bi

ofue

ls p

rogr

am fo

r thi

s pu

rpos

e,

appr

opri

atin

g fu

nds

ther

efor

, and

for o

ther

pur

pose

s20

07

EO

290

: Im

plem

entin

g th

e N

atur

al G

as V

ehic

le P

rogr

am fo

r Pub

lic T

rans

port

2004

RA

913

6: E

lect

ric

Pow

er I

ndus

try

Ref

orm

Act

(EP

IRA

), st

ress

ing

the

deve

lopm

ent a

nd u

se o

f ind

igen

ous

and

rene

wab

le

ener

gy re

sour

ces

to re

duce

the

coun

try’

s de

pend

ence

on

impo

rted

oil

and

coal

for p

ower

gen

erat

ion

2001

Clim

ate

Cha

nge

DA

O 2

005-

17: P

resc

ribi

ng th

e im

plem

entin

g ru

les

and

regu

latio

ns fo

r EO

320

20

05

EO

320

: Des

igna

ting

the

DE

NR

as

the

natio

nal a

utho

rity

for t

he C

lean

Dev

elop

men

t Mec

hani

sm (C

DM

) 20

04

Tox

ic S

ubst

ance

s and

Haz

ardo

us W

aste

s

DA

O 2

9: I

mpl

emen

ting

rule

s an

d re

gula

tions

for t

he T

oxic

Sub

stan

ces

and

Haz

ardo

us a

nd N

ucle

ar W

aste

s C

ontr

ol A

ct o

f 19

90 (R

A 6

969)

1992

App

endi

x 2

cont

inue

d

cont

inue

d

Page 190: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

Appendixes 169

Tit

le/D

escr

ipti

onYe

ar I

ssue

d

RA

696

9: T

oxic

Sub

stan

ces

and

Haz

ardo

us a

nd N

ucle

ar W

aste

s C

ontr

ol A

ct o

f 199

0, re

gula

ting

the

impo

rtat

ion,

pr

oces

sing

, man

ufac

ture

, sal

e, d

istr

ibut

ion,

use

, and

dis

posa

l of c

hem

ical

sub

stan

ces

and

mix

ture

s th

at p

rese

nt u

nrea

sona

ble

risk

to p

ublic

hea

lth a

nd th

e en

viro

nmen

t

1990

Oil

Pollu

tion

RA

948

3: O

il Po

llutio

n C

ompe

nsat

ion

Act

of 2

007,

pro

vidi

ng fo

r the

impl

emen

tatio

n of

the

prov

isio

ns o

f the

199

2 In

tern

atio

nal C

onve

ntio

n on

Civ

il L

iabi

lity

for O

il Po

llutio

n D

amag

e an

d th

e 19

92 I

nter

natio

nal C

onve

ntio

n on

the

Est

ablis

hmen

t of a

n In

tern

atio

nal F

und

for C

ompe

nsat

ion

for O

il Po

llutio

n D

amag

e, p

rovi

ding

pen

altie

s fo

r vio

latio

ns

ther

eof,

and

for o

ther

pur

pose

s

2007

Env

iron

men

tal I

mpa

ct S

tate

men

t

DA

O 2

003-

30: P

resc

ribi

ng th

e im

plem

entin

g ru

les

and

regu

latio

ns fo

r the

EIS

Sys

tem

, fur

ther

cla

rify

ing

the

cove

rage

of

the

EIS

Sys

tem

, and

pro

vidi

ng tw

o cr

iteri

a to

be

cons

ider

ed in

det

erm

inin

g th

e sc

ope

of th

e E

IS S

yste

m, n

amel

y: (i

) th

e na

ture

of t

he p

roje

ct a

nd it

s po

tent

ial t

o ca

use

sign

ifica

nt n

egat

ive

envi

ronm

enta

l im

pact

, and

(ii)

the

sens

itivi

ty o

r vu

lner

abili

ty o

f env

iron

men

tal r

esou

rces

in th

e pr

ojec

t are

a.

2003

AO

42:

Str

eam

linin

g E

CC

app

licat

ion

proc

essi

ng a

nd a

ppro

val b

y sp

ecify

ing

the

endo

rsin

g of

ficia

l, ap

prov

ing

auth

orit

y, an

d pr

oces

sing

tim

efra

me

for E

CPs

, pro

ject

s w

ithin

EC

As,

and

proj

ects

not

cov

ered

by

the

EIS

Sys

tem

20

02

PD

158

6: E

IS S

yste

m L

aw, l

imiti

ng th

e ap

plic

atio

n of

EIA

to e

nvir

onm

enta

lly c

ritic

al p

roje

cts

or p

roje

cts

in

envi

ronm

enta

lly c

ritic

al a

reas

19

78

Solid

Was

te M

anag

emen

t

DA

O 2

001-

34: I

mpl

emen

ting

rule

s an

d re

gula

tions

for t

he E

colo

gica

l Sol

id W

aste

Man

agem

ent A

ct o

f 200

0 (R

A 9

003)

2001

RA

900

3: E

colo

gica

l Sol

id W

aste

Man

agem

ent A

ct o

f 200

0, e

stab

lishi

ng lo

cal s

olid

was

te m

anag

emen

t boa

rds

to d

evel

op

10-y

ear s

olid

was

te m

anag

emen

t pla

ns a

nd o

vers

ee th

eir i

mpl

emen

tatio

n, a

nd c

allin

g fo

r the

inst

itutio

naliz

atio

n of

a

natio

nal p

rogr

am to

man

age

the

tran

sfer

, tra

nspo

rt, p

roce

ssin

g, a

nd d

ispo

sal o

f sol

id w

aste

in th

e co

untr

y

2000

App

endi

x 2

cont

inue

d

cont

inue

d

Page 191: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

170 Country Environmental Analysis 2008: Philippines

Tit

le/D

escr

ipti

onYe

ar I

ssue

d

Loc

al G

over

nmen

t

RA

792

4: C

reat

ing

the

Met

ropo

litan

Man

ila D

evel

opm

ent A

utho

rity

, man

datin

g it

to p

lan

for,

mon

itor,

and

coor

dina

te

the

wor

k of

the

loca

l gov

ernm

ent u

nits

(LG

Us)

in it

s ar

ea o

f jur

isdi

ctio

n, a

nd t

o pr

ovid

e se

rvic

es th

at c

an b

e de

liver

ed

mor

e ef

ficie

ntly

at t

he m

etro

polit

an ra

ther

than

at t

he lo

cal g

over

nmen

t lev

el

1995

RA

716

0: L

ocal

Gov

ernm

ent C

ode,

dev

olvi

ng p

ower

s an

d re

spon

sibi

litie

s fr

om th

e ce

ntra

l Gov

ernm

ent t

o L

GU

s, al

low

ing

them

to o

pera

te w

ith fa

r gre

ater

aut

onom

y, an

d pr

ovid

ing

for a

n en

viro

nmen

tal m

anag

emen

t sys

tem

and

ser

vice

s or

faci

litie

s fo

r gen

eral

hyg

iene

and

san

itatio

n, a

nd in

fras

truc

ture

faci

litie

s in

clud

ing

drai

nage

and

sew

erag

e

1991

Lan

d M

anag

emen

t

EO

690

: Tra

nsfe

rrin

g th

e L

and

Reg

istr

atio

n A

utho

rity

from

the

Dep

artm

ent o

f Jus

tice

to th

e D

epar

tmen

t of E

nvir

onm

ent

and

Nat

ural

Res

ourc

es20

07

RA

727

9: U

rban

Dev

elop

men

t and

Hou

sing

Act

of 1

992,

pro

vidi

ng fo

r a c

ompr

ehen

sive

and

con

tinui

ng u

rban

de

velo

pmen

t and

hou

sing

pro

gram

, and

est

ablis

hing

the

mec

hani

sm fo

r its

impl

emen

tatio

n19

92

CA

141

: Pub

lic L

ands

Act

1936

AO

= a

dmin

istr

ativ

e or

der,

BP

= b

atas

pam

bans

a (n

atio

nal l

aw),

CA

= c

omm

onw

ealth

act

, DA

O =

Dep

artm

ent

of E

nvir

onm

ent

and

Nat

ural

Res

ourc

es

adm

inis

trat

ive

orde

r, D

EN

R =

Dep

artm

ent

of E

nvir

onm

ent

and

Nat

ural

Res

ourc

es, E

CC

= e

nvir

onm

enta

l com

plia

nce

cert

ifica

te, E

O =

exe

cutiv

e or

der,

PD

= p

resi

dent

ial d

ecre

e, L

GU

= lo

cal g

over

nmen

t uni

t, R

A =

repu

blic

act

.

App

endi

x 2

cont

inue

d

Page 192: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

Appendixes 171A

ppen

dix

3: O

ffici

al D

evel

opm

ent A

ssis

tanc

e to

the

Env

iron

men

t and

Nat

ural

Res

ourc

es S

ecto

r,

as o

f Nov

embe

r 200

7

Proj

ect

Tit

leFu

ndin

gA

genc

y

Tota

l Pro

ject

Cos

t ($

’000

)Pr

ojec

t D

urat

ion

Proj

ect

Loca

tion

Loan

Gra

ntG

ov’t

Tota

l

Env

iron

men

t and

Nat

ural

R

esou

rce

Man

agem

ent

78,1

95.6

5 48

,812

.10

11,7

51.8

6 13

8,75

9.61

Sout

hern

Min

dana

o In

tegr

ated

Coa

stal

Z

one

Man

agem

ent

Proj

ect

JBIC

23,1

95.6

5 7,

144.

51

30,3

40.1

7 7

year

s (1

999–

2007

)R

egio

ns 1

1 (M

alal

ag

Bay

–Bal

asia

o W

ater

shed

, D

avao

del

Sur

) and

12

(Sar

anga

ni B

ay–

Mt.

Mat

utum

W

ater

shed

, Gen

eral

Sa

ntos

Cit

y, Sa

rang

ani,

and

Sout

h C

otab

ato)

Lag

una

de B

ay

Inst

itutio

nal

Stre

ngth

enin

g an

d C

omm

unit

y Pa

rtic

ipat

ion

WB

/N

ethe

rlan

ds

Gov

’t

5,00

0.00

5,

000.

00

2,20

0.00

12

,200

.00

Apr

il 20

04–

Mar

ch 2

009

Reg

ion

4

(Lag

una

de B

ay)

cont

inue

d

Page 193: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

172 Country Environmental Analysis 2008: Philippines

Proj

ect

Tit

leFu

ndin

gA

genc

y

Tota

l Pro

ject

Cos

t ($

’000

)Pr

ojec

t D

urat

ion

Proj

ect

Loca

tion

Loan

Gra

ntG

ov’t

Tota

l

Eco

-Gov

erna

nce

II

USA

ID19

,000

.00

19,0

00.0

0 5

year

s (O

ct. 2

004–

O

ctob

er 2

009)

Reg

ions

2 (N

ueva

V

isca

ya, I

sabe

la,

Qui

rino

), 3

(Aur

ora)

, 7

(Boh

ol, C

ebu,

Neg

ros

Ori

enta

l), 9

(Zam

boan

ga

del S

ur, Z

ambo

anga

Si

buga

y), 1

1 (D

avao

C

ity)

, and

12

(Nor

th

Cot

abat

o, S

outh

C

otab

ato,

Sar

anga

ni,

Sulta

n K

udar

at),

and

AR

MM

(Mag

uind

anao

, L

anao

del

Sur

, Bas

ilan)

Env

iron

men

t, N

atur

al R

esou

rce

Man

agem

ent a

nd

Rur

al D

evel

opm

ent

(EnR

D) P

rogr

am

GT

Z12

,025

.00

12,0

25.0

0 Ju

ly 2

005–

Ju

ne 2

009

Reg

ions

6 (I

loilo

) and

8

(Ley

te a

nd S

outh

ern

Ley

te)

Part

ners

hip

in

Env

iron

men

tal

Man

agem

ent f

or th

e Se

as o

f Eas

t Asi

a

UN

DP

/G

EF

5,45

1.47

2,

407.

35

7,85

8.81

20

00–2

006

(win

ding

-dow

n pe

riod

up

to

2007

)

NC

R (M

anila

, Nav

otas

, Pa

raña

que,

Las

Piñ

as),

Reg

ions

3 (P

ampa

nga,

B

ulac

an, B

ataa

n, N

ueva

E

cija

, Tar

lac)

4 (R

izal

, L

agun

a, C

avite

)

cont

inue

d

App

endi

x 3

cont

inue

d

Page 194: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

Appendixes 173

Proj

ect

Tit

leFu

ndin

gA

genc

y

Tota

l Pro

ject

Cos

t ($

’000

)Pr

ojec

t D

urat

ion

Proj

ect

Loca

tion

Loan

Gra

ntG

ov’t

Tota

l

Rev

ersi

ng

Env

iron

men

tal

Deg

rada

tion

Tre

nds

in th

e So

uth

Chi

na

Sea

and

Gul

f of

Tha

iland

UN

EP/

GE

F33

5.63

in k

ind

335.

63

2002

–200

7R

egio

ns 1

, 3, a

nd 4

an

d N

CR

Nat

iona

l Pro

gram

me

Supp

ort–

Env

iron

men

t and

N

atur

al R

esou

rces

M

anag

emen

t Pro

ject

($

50 m

illio

n W

B

loan

und

er a

bud

get

supp

ort a

rran

gem

ent

WB

/GE

F50

,000

.00

7,00

0.00

57

,000

.00

2007

–201

2N

atio

nwid

e (S

IM);

GE

F si

tes:

Reg

ions

3

(Nue

va E

cija

), 4A

(Riz

al,

Que

zon)

, 5 (C

amar

ines

Su

r, C

amar

ines

Nor

te),

and

12 (M

agui

ndan

ao,

Nor

th C

otab

ato,

Sul

tan

Kud

arat

)

Fore

stry

4,

111.

45

15,2

40.6

8 19

,352

.13

San

Roq

ue

Mul

ti-pu

rpos

e Pr

ojec

t (It

ogon

In

tegr

ated

Wat

ersh

ed

Man

agem

ent

Proj

ect)

–DE

NR

C

ompo

nent

Gov

’t14

,900

.68

14,9

00.6

8 7

year

s (2

001–

2007

)C

AR

(bar

anga

ys o

f A

mpu

cao,

Dal

upir

ip,

Gum

atda

ng, L

oaca

n,

Pobl

acio

n,

Tin

ongd

an,

Tud

ing,

Uca

p, a

nd V

irac

in

the

mun

icip

alit

y of

It

ogon

, Ben

guet

)

cont

inue

d

App

endi

x 3

cont

inue

d

Page 195: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

174 Country Environmental Analysis 2008: Philippines

cont

inue

d

Proj

ect

Tit

leFu

ndin

gA

genc

y

Tota

l Pro

ject

Cos

t ($

’000

)Pr

ojec

t D

urat

ion

Proj

ect

Loca

tion

Loan

Gra

ntG

ov’t

Tota

l

Proj

ect f

or th

e E

nhan

cem

ent o

f C

omm

unit

y-B

ased

Fo

rest

Man

agem

ent

Prog

ram

in th

e P

hilip

pine

s

JIC

A3,

500.

00

340.

003,

840.

00

June

200

4–Ju

ne 2

008

Reg

ion

3 (P

ampa

nga,

T

arla

c, B

ulac

an, B

ataa

n,

Nue

va E

cija

)

Lag

una

de B

ay

Com

mun

ity

Car

bon

Fin

ance

Pro

ject

Japa

n G

ov’t

thru

SP

CC

I/W

B

358.

45T

ax

paym

ent

358.

4520

03–2

015

Reg

ion

4 (L

agun

a de

B

ay)

Adv

anci

ng th

e A

pplic

atio

n of

A

NR

for E

ffec

tive

Low

-Cos

t For

est

Res

tora

tion

FAO

253.

00

253.

00

June

200

6–Ju

ne 2

008

Reg

ion

3, 7

, and

11

Bio

dive

rsit

y9,

398.

11

4,33

2.00

13

,730

.11

Sam

ar I

slan

d B

iodi

vers

ity

Proj

ect

UN

DP

-G

EF/

TR

AC

8,63

1.29

4,

251.

60

12,8

82.8

9 20

00–2

010

Reg

ion

8 (S

amar

Isl

and)

App

endi

x 3

cont

inue

d

Page 196: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

Appendixes 175

Proj

ect

Tit

leFu

ndin

gA

genc

y

Tota

l Pro

ject

Cos

t ($

’000

)Pr

ojec

t D

urat

ion

Proj

ect

Loca

tion

Loan

Gra

ntG

ov’t

Tota

l

Mai

nstr

eam

ing

Eco

tour

ism

in th

e C

omm

unit

y-B

ased

N

atur

al R

esou

rces

M

anag

emen

t (N

atio

nal E

coto

uris

m

Prog

ram

me–

Pha

se

II) P

roje

ct

NZ

AID

766.

8280

.484

7.22

20

04–2

008

Reg

ions

1 (H

undr

ed

Isla

nds

Nat

iona

l Par

k,

Pang

asin

an),

5 (M

ayon

V

olca

no N

atur

al P

ark,

A

lbay

), 7

(Raj

ah

Sika

tuna

Pro

tect

ed

Lan

dsca

pe, B

ohol

),

and

12 (L

ake

Sebu

Fo

rest

Res

erve

, So

uth

Cot

abat

o)

Env

iron

men

t20

,212

.00

45,1

58.5

0 12

,478

.02

77,8

48.5

2

Met

ro M

anila

A

ir Q

ualit

y Im

prov

emen

t Sec

tor

Dev

elop

men

t Pro

ject

(M

MA

QIS

DP

)–D

EN

R C

ompo

nent

AD

B20

,212

.00

5,45

4.00

25

,666

.00

7 ye

ars

(199

9–D

ecem

ber

2006

), ex

tend

ed

up to

Dec

. 200

7

NC

R, R

egio

ns 3

and

4

Ozo

ne D

eple

ting

Subs

tanc

es P

hase

-O

ut I

nves

tmen

t Pr

ogra

m, P

hase

II

Mul

tilat

eral

Fu

nd o

f the

M

ontr

eal

Prot

ocol

30,0

00.0

0 in

kin

d 30

,000

.00

17 y

ears

(1

993–

2010

)N

atio

nwid

e

cont

inue

d

App

endi

x 3

cont

inue

d

Page 197: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

176 Country Environmental Analysis 2008: Philippines

Proj

ect

Tit

leFu

ndin

gA

genc

y

Tota

l Pro

ject

Cos

t ($

’000

)Pr

ojec

t D

urat

ion

Proj

ect

Loca

tion

Loan

Gra

ntG

ov’t

Tota

l

Cap

acit

y D

evel

opm

ent P

roje

ct

on W

ater

Qua

lity

Man

agem

ent

JIC

A5,

000.

00

11.6

45,

011.

64

Janu

ary

2006

–D

ecem

ber

2010

Reg

ions

3, 6

, and

12

Supp

ort P

rogr

am

for S

olid

Was

te

Man

agem

ent f

or

LG

Us

in th

e V

isay

as

GT

Z40

0.00

in

kin

d 40

0.00

6

year

s (2

005–

2010

)R

egio

ns 6

(Ilo

ilo C

ity

and

Pass

i Cit

y, Il

oilo

; B

uena

vist

a, G

uim

aras

), 7

(Man

daue

Cit

y, C

ebu;

Tag

bila

ran

Cit

y, B

ohol

; Dum

ague

te C

ity,

Neg

ros

Ori

enta

l), a

nd

8 (T

aglo

ban

Cit

y an

d M

aasi

n C

ity,

Ley

te)

Man

ila T

hird

Se

wer

age

Proj

ect

(MT

SP)

WB

/GE

F5,

000.

00

5,00

0.00

D

ecem

ber

2006

–201

0N

CR

(Met

ro M

anila

)

cont

inue

d

App

endi

x 3

cont

inue

d

Page 198: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

Appendixes 177

Proj

ect

Tit

leFu

ndin

gA

genc

y

Tota

l Pro

ject

Cos

t ($

’000

)Pr

ojec

t D

urat

ion

Proj

ect

Loca

tion

Loan

Gra

ntG

ov’t

Tota

l

Glo

bal p

rogr

am to

de

mon

stra

te th

e vi

abili

ty a

nd re

mov

al

of b

arri

ers

that

im

pede

ado

ptio

n an

d su

cces

sful

im

plem

enta

tion

of a

vaila

ble

non-

com

bust

ion

tech

nolo

gies

for

dest

royi

ng p

ersi

sten

t or

gani

c po

lluta

nts

GE

F4,

108.

50

7,01

2.38

11

,770

.88

Sept

embe

r 20

07–

Sept

embe

r 20

11

UN

IDO

650.

00

Coa

stal

/Mar

ine

33,8

00.0

0 11

,301

.74

20,0

56.5

9 65

,158

.33

Bri

dgin

g C

onsu

ltanc

y (S

uppo

rt to

P

hilip

pine

s M

ariti

me

Cla

ims

unde

r U

NC

LO

S)

NO

RA

D28

5.00

28

5.00

Ju

ne

2005

–200

6,

exte

nded

up

to

Apr

il 20

07

Nat

ionw

ide

Coa

stal

Haz

ard

Man

agem

ent

Prog

ram

Sida

378.

45

378.

45

Janu

ary

2006

– Ju

ne 2

007

Nat

ionw

ide

cont

inue

d

App

endi

x 3

cont

inue

d

Page 199: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

178 Country Environmental Analysis 2008: Philippines

Proj

ect

Tit

leFu

ndin

gA

genc

y

Tota

l Pro

ject

Cos

t ($

’000

)Pr

ojec

t D

urat

ion

Proj

ect

Loca

tion

Loan

Gra

ntG

ov’t

Tota

l

Inte

grat

ed

Coa

stal

Res

ourc

es

Man

agem

ent P

roje

ct

AD

B/G

EF

33,8

00.0

0 9,

000.

00

19,5

20.0

0 62

,320

.00

July

200

7–20

12R

egio

ns 2

(Cag

ayan

), 3

(Zam

bale

s),

5 (M

asba

te),

7 (C

ebu,

Si

quijo

r), a

nd 1

1 (D

avao

O

rien

tal)

Cam

igui

n C

oast

al R

esou

rce

Man

agem

ent P

roje

ct

(CC

RM

P)

NZ

AID

1,63

8.29

53

6.59

2,17

4.88

Ju

ne

2007

–201

2R

egio

n 10

(Cam

igui

n)

Cap

acit

y B

uild

ing

1,33

3.74

1,

333.

74

Env

iron

men

t an

d N

atur

al

Res

ourc

es C

apac

ity

and

Ope

ratio

ns

Enh

ance

men

t Pr

ogra

mm

e (E

NR

-CO

RE

)

UN

DP

1,33

3.74

1,

333.

74

2005

–200

9N

atio

nwid

e

cont

inue

d

App

endi

x 3

cont

inue

d

Page 200: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

Appendixes 179

Proj

ect

Tit

leFu

ndin

gA

genc

y

Tota

l Pro

ject

Cos

t ($

’000

)Pr

ojec

t D

urat

ion

Proj

ect

Loca

tion

Loan

Gra

ntG

ov’t

Tota

l

Map

ping

4,78

0.00

61

0.00

5,

390.

00

Stud

y of

Map

ping

Po

licy

and

Top

ogra

phic

M

appi

ng fo

r In

tegr

ated

Nat

iona

l D

evel

opm

ent P

lan

in

the

Rep

ublic

of t

he

Phi

lippi

nes

JIC

A4,

080.

00

610.

004,

690

Febr

uary

200

6–

Febu

ary

2008

NA

MR

IA, n

atio

nwid

e;

pilo

t site

s: R

egio

n 3

(Pam

pang

a, B

ulac

an,

Tar

lac,

and

Nue

va E

cija

)

Enh

ance

men

t of

Hyd

rogr

aphi

c C

apab

ilitie

s fo

r N

avig

atio

nal S

afet

y

JIC

A70

0.00

70

0.00

Mar

ch 2

006–

M

arch

200

8N

AM

RIA

, NC

R

(Man

ila B

ay),

Reg

ions

4A

(Bat

anga

s B

ay)

and

7 (C

ebu

Bay

)

Eco

syst

em R

esea

rch

and

Dev

elop

men

t74

6.13

33

9.30

1,

085.

43

Dem

onst

ratio

n an

d A

pplic

atio

n of

Pro

duct

ion

and

Util

izat

ion

Tec

hnol

ogie

s fo

r R

atta

n Su

stai

nabl

e D

evel

opm

ent

in th

e A

SEA

N

Mem

ber-

Cou

ntri

es

ITT

O62

9.87

27

0.00

89

9.87

N

ovem

ber

2005

–N

ovem

ber

2009

ASE

AN

cou

ntri

es; i

n th

e P

hilip

pine

s: R

egio

ns

5 (C

amar

ines

Sur

) and

12

(Nor

th C

otab

ato) co

ntin

ued

App

endi

x 3

cont

inue

d

Page 201: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

180 Country Environmental Analysis 2008: Philippines

Proj

ect

Tit

leFu

ndin

gA

genc

y

Tota

l Pro

ject

Cos

t ($

’000

)Pr

ojec

t D

urat

ion

Proj

ect

Loca

tion

Loan

Gra

ntG

ov’t

Tota

l

Res

earc

h an

d D

evel

opm

ent

Proj

ect:

Impr

ovin

g F

inan

cial

Ret

urns

to

Sm

allh

olde

r T

ree

Farm

ers

in th

e P

hilip

pine

s (A

CIA

R/

ASE

M/2

003/

052)

Aus

tral

ian

Gov

ernm

ent

116.

2669

.30

185.

56

Janu

ary

2005

–D

ecem

ber

2007

Reg

ion

8 (L

eyte

Isl

and)

Lan

ds18

,995

.30

19,3

13.0

02,

284.

9040

,593

.20

Lan

d A

dmin

istr

atio

n an

d M

anag

emen

t Pr

ogra

m I

I

WB

/A

usA

ID18

,995

.30

19,3

13.0

0 2,

284.

90

40,5

93.2

0 5

year

s (2

005–

2010

)R

egio

ns 7

(Boh

ol)

and

8 (L

eyte

and

2

othe

r pro

vinc

es

to b

e id

entifi

ed)

Pro

ject

Pre

para

tion

and

D

evel

opm

ent

1,61

8.00

51

5.00

2,

133.

00

Mas

ter P

lan

Stud

y on

Int

egra

ted

Wat

er R

esou

rces

M

anag

emen

t for

A

gusa

n R

iver

Bas

in

AD

B97

0.00

42

0.00

1,

390.

00

Car

aga

and

Reg

ion

11

cont

inue

d

App

endi

x 3

cont

inue

d

Page 202: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

Appendixes 181

Proj

ect

Tit

leFu

ndin

gA

genc

y

Tota

l Pro

ject

Cos

t ($

’000

)Pr

ojec

t D

urat

ion

Proj

ect

Loca

tion

Loan

Gra

ntG

ov’t

Tota

l

Glo

bally

Im

port

ant

Agr

icul

tura

l Her

itage

Sy

stem

–PD

F-B

GE

F/FA

O15

.00

15.0

0 20

05–2

007

CA

R

Clim

ate

Cha

nge

Ada

ptat

ion

(Pha

se I

) Pr

ojec

t

WB

/GE

F 28

3.00

28

3.00

Con

tam

inat

ed

Site

s R

emed

iatio

n St

rate

gy–P

ersi

sten

t O

rgan

ic P

ollu

tant

s

WB

/GE

F35

0.00

95

.00

445.

00

GR

AN

D T

OT

AL

15

1,20

2.95

14

6,57

2.77

67

,608

.35

365,

384.

07

AD

B =

Asi

an D

evel

opm

ent

Ban

k, A

NR

= a

ssis

ted

natu

ral r

egen

erat

ion,

ASE

AN

= A

ssoc

iatio

n of

Sou

thea

st A

sian

Nat

ions

, Aus

AID

= A

ustr

alia

n A

genc

y fo

r In

tern

atio

nal

Dev

elop

men

t, C

AR

= C

ordi

llera

Adm

inis

trat

ive

Reg

ion,

FA

O =

Foo

d an

d A

gric

ultu

re O

rgan

izat

ion,

GE

F =

Glo

bal

Env

iron

men

t Fa

cilit

y, G

TZ

= G

erm

an t

echn

ical

coo

pera

tion,

IT

TO

= I

nter

natio

nal T

ropi

cal T

imbe

r O

rgan

izat

ion,

JB

IC =

Jap

an B

ank

for

Inte

rnat

iona

l C

oope

ratio

n,

JIC

A =

Jap

an I

nter

natio

nal

Coo

pera

tion

Age

ncy,

LG

U =

loc

al g

over

nmen

t un

it, N

AM

RIA

= N

atio

nal

Map

ping

and

Res

ourc

e In

form

atio

n A

utho

rity

, N

CR

= N

atio

nal C

apita

l Reg

ion,

NO

RA

D =

Nor

weg

ian

Age

ncy f

or D

evel

opm

ent C

oope

ratio

n, N

ZA

ID =

New

Zea

land

Age

ncy f

or In

tern

atio

nal D

evel

opm

ent,

Sida

= S

wed

ish

Inte

rnat

iona

l Dev

elop

men

t C

oope

ratio

n A

genc

y, SP

CC

I =

Spec

ial P

rogr

am o

n C

limat

e C

hang

e In

itiat

ives

, TR

AC

= T

arge

t fo

r R

esou

rce

Ass

ignm

ent

from

the

Cor

e, U

NC

LO

S =

Uni

ted

Nat

ions

Con

vent

ion

on t

he L

aw o

f th

e Se

a, U

ND

P =

Uni

ted

Nat

ions

Dev

elop

men

t Pr

ogra

mm

e,

UN

IDO

= U

nite

d N

atio

ns I

nter

natio

nal D

evel

opm

ent O

rgan

izat

ion,

WB

= W

orld

Ban

k.So

urce

: For

eign

Ass

iste

d an

d Sp

ecia

l Pro

ject

s O

ffice

, Dep

artm

ent o

f Env

iron

men

t and

Nat

ural

Res

ourc

es.

App

endi

x 3

cont

inue

d

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182 Country Environmental Analysis 2008: Philippines

Appendix 4: Senate and House Bills on Environment and Natural Resources Filed at the 14th Congress of the Philippines

Note: CA = commonwealth act, DENR = Department of Environment and Natural Resources, HB = House bill, PD = presidential decree, SBN = Senate bill no., RA = republic act

Forest Management

SBN-1952: Arbor Day Act of 2007, authorizing local government units to declare a day dedicated to tree planting to be known as Arbor Day, appropriating funds therefor and for other purposesSBN-1714: La Mesa Watershed Reservation Act of 2007, establish-ing the La Mesa watershed in the cities of Quezon and Caloocan and in the municipality of Rodriguez, province of Rizal, as a water-shed reservation and for other purposes SBN-1492: Forest Preservation and Rehabilitation Act of 2007, to preserve and rehabilitate forests by banning all logging operations in primary- and secondary-growth forests and rain forests, and creat-ing a task force for the purposeSBN-1391: Mount Isarog Special Ecological Tourism Zone, declar-ing Mount Isarog Natural Park in the province of Camarines Sur a special ecological tourism zone, and for other purposesSBN-1092: Palawan as Ecological Tourism Capital of the Philippines, declaring the province of Palawan as the ecological tourism capital of the Philippines, and for other purposesSBN-991: National Ecotourism Policy Act, providing for a national ecotourism policy, establishing a framework for its institutionaliza-tion, creating a mechanism for its implementation, and for other purposesSBN-990: Forest Management, establishing forest management, utilization, conservation, and preservation centers in provinces inhabited predominantly by members of indigenous cultural com-munities and upland familiesSBN-989: National Protection and Preservation of Mangrove Forest Act, providing for the preservation, reforestation, afforestation, and sustainable development of mangrove forests in the Philippines, providing penalties therefor, and for other purposesSBN-872: Philippine Agroforestry Act of 2007, standardizing and enhancing the practice of agroforestry in the country, creating the Board

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Appendixes 183

of Agroforestry under the Professional Regulations Commission, and appropriating funds therefor, and for other purposes SBN-852: National Protection and Preservation of Mangrove Forest Act of 2007, providing for the preservation, reforestation, affor-estation, and sustainable development of mangrove forests in the Philippines, providing penalties therefor, and for other purposesSBN-785: Greening of Philippine Highways Act, requiring local governments to plant trees along national and local highways within their territorial boundaries, and for other purposesSBN-783: Anti-Logging in Watersheds and Protected Areas, defin-ing the offense of illegal logging in watersheds and other protected areas, and providing penalties thereforSBN-29: National Log Ban of 2007, establishing a ban on all log-ging operations in the country to ensure the protection, preservation, and rehabilitation of the Philippine environment, and providing for citizens’ rightsSBN-480: National Ecotourism Policy Act of 2007, providing for a national ecotourism policy, establishing a framework for its institutionalization, providing the mechanisms for its appropriate implementation, and for other purposesSBN-477: Greening Act of 2007, promoting the urban and coun-tryside greening of the PhilippinesSBN-443: Illegal Logging in Watersheds and Other Protected Areas, defining the offense of illegal logging in watersheds and other protected areas, and providing penalties thereforSBN-240: Revised Forestry Code of the Philippines (Sec. 78, PD 705), amending section 78 of the Revised Forestry Code of the Philippines (PD 705), as amended SBN-224: Billion Trees Act of 2007, to spur the planting of a bil-lion trees through complementary tree planting programs of DENR and various other government agencies, local government units and communities, schools and universities, and civic and nongovernment organizations, protecting the remaining natural forests and forest plantations, and creating a fund therefor, and for other purposes SBN-222: Greening Act of 2007, providing for the urban and coun-tryside greening of the PhilippinesSBN-80: Sustainable Forest Management Act of 2007, providing for sustainable forest managementSBN-73: Total Log Ban, totally banning logging operations for the next 25 years, and for other purposesHB00043: Urging the President and the officials of the Department of Environment and Natural Resources to declare a total log ban in

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the third district in the province of Negros Occidental, appropriat-ing funds therefor, and for other purposes HB00137: Instituting a self-sustaining forest management program, by providing incentives to tree planters on private lands, forest lands, and other public lands, and for other purposes

Land Management

SBN-1931: Public Land Act (Amendments), reforming the admin-istrative titling process by amending certain provisions of the Public Land Act (CA 141), as amendedSBN-1796: Land Administration Reform Act of 2007, institut-ing reforms in the land administration system, creating the Land Administration Authority, and for other purposesSBN-1451: Land Administration Reform Act of 2007, instituting reforms in land administrationSBN-1418: Land Administration Reform Act of 2007, instituting reforms in land administrationSBN-1376: Organic Agriculture Promotion Act of 2007, provid-ing for the promotion of organic agriculture in the Philippines, and appropriating funds therefor SBN-1304: Land Administration Reform Act of 2007, instituting reforms in land administrationSBN-988: Public Recreational Parks, establishing public recreational parks in major urban areas, appropriating funds therefor, and for other purposesSBN-913: Tree Legacy Act of 2007, instituting a self-sustaining forest management program, by providing incentives to tree planters on private lands, forest lands, and other public lands, and for other purposesSBN-843: National Land Use Act of the Philippines, instituting a national land use policy, providing the implementing mechanisms therefor, and for other purposesSBN-814: Revised Public Land Act of the Philippines SBN-68: Land Administration Reform Act of 2007, institutional-izing reforms in land administration, creating for the purpose the Land Administration Authority, and for other purposesSBN-641: National Land Use Act of the Philippines, instituting a national land use policy, providing the implementing mechanisms therefor, and for other purposesSBN-584: Land Administration Reform Act of 2007, instituting reforms in land administration

••

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SBN-193: Land Administration Reform Act of 2007, instituting reforms in land administrationSBN-82: National Land Use Act of the Philippines, instituting a national land use policy, providing the implementing mechanisms therefor, and for other purposesSBN-76: National Land Use Act of the Philippines, instituting a national land use policy, providing the implementing mechanisms therefor, and for other purposesHB00057: An act mandating that at least 10% of government-owned lands to be sold, alienated, or otherwise encumbered for develop-ment purposes, be segregated for socialized housing projectsHB00064: An act instituting a national land use policy, providing the implementing mechanisms therefor, and for other purposes

Protected Areas and Wildlife Management

SBN-1655: Aurora Integrated Protected Landscape Act of 2007, establishing the Aurora Integrated Protected Landscape, providing for its management, and for other purposes SBN-1985: Tubbataha Reefs Natural Park (TRNP) Act of 2007, establishing the Tubbataha Reefs Natural Park in the province of Palawan under the NIPAS Act (RA 7586) and the Strategic Environmental Plan for Palawan Act (RA 7611), providing for its management, and for other purposesSBN-1080: Malampaya Sound Protected Landscape and Seascape (MSPLAS) Act of 2007, establishing the Malampaya Sound in the municipalities of Taytay and San Vicente, province of Palawan, as a protected area under the category of protected landscape and sea-scape, providing for its management, and for other purposesSBN-1079: El Nido–Taytay Managed Resource Protected Area (ENTMRPA) Act of 2007, establishing the El Nido–Taytay Managed Resource Protected Area in the municipalities of El Nido and Taytay, province of Palawan, as a protected area under the cat-egory of protected landscape, providing for its management, and for other purposes SBN-1078: Turtle Islands Wildlife Sanctuary Act of 2007, estab-lishing the Turtle Islands Wildlife Sanctuary in the province of Tawi-Tawi as a protected area, providing for its management, and for other purposesSBN-1077: Mt. Balatukan Range Natural Park Act of 2007, estab-lishing the Mt. Balatukan Range in the city of Gingoog and in the municipalities of Claveria, Medina, and Balingasag, all in the

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province of Misamis Oriental, as a protected area, under the cat-egory of protected landscape, providing for its management, and for other purposesSBN-1076: Northern Negros Natural Park (NNNP) Act of 2007, establishing the area covered by the Northern Negros Forest Reserve in the cities of Talisay, Silay, Victorias, Cadiz, Sagay, and San Carlos and the municipalities of E. B. Magalona, Murcia, Toboso, Calatrava, and Don Salvador Benedicto, province of Negros Occidental, as a protected area, providing for its management pur-suant to the NIPAS Act of 1992 (RA 7586), to be known as the Northern Negros Natural ParkSBN-1075: Lidlidda-Banayoyo Protected Landscape Act of 2007, establishing the Lidlidda-Banayoyo Protected Landscape in the municipalities of Lidlidda and Banayoyo, province of Ilocos Sur, as a protected area, providing for its management, and for other purposes SBN-1074: Agoo-Damortis Protected Seascape and Landscape Act of 2007, establishing the Agoo-Damortis Protected Seascape and Landscape in the municipalities of Agoo, Sto. Tomas, and Rosario, in the province of La Union, as a protected area, providing for its management, and for other purposesSBN-1072: Siargao Islands Protected Landscape and Seascape (SIPLAS) Act of 2007, establishing the Siargao Group of Islands in the municipalities of Burgos, Dapa, Del Carmen, Gen. Luna, Pilar, San Benito, San Isidro, Sta. Monica, and Socorro, province of Surigao del Norte, as a protected landscape and seascape, providing for its management, and for other purposes, pursuant to the NIPAS Act of 1992 (RA 7586) SBN-1071: Agusan Marsh Wildlife Sanctuary Act of 2007, estab-lishing the Agusan Marsh within the municipalities of San Francisco, Bunawan, Veruela, Loreto, and Lapaz, in the province of Agusan Del Sur, as a wildlife sanctuary, providing for its management, and for other purposes, pursuant to the NIPAS Act of 1992 (RA 7586) SBN-1070: Sinarapan Sanctuary (SS) Act of 2007, establishing Lakes Manapao, Katugday, Danao, and Makuao within the munici-pality of Buhi, Camarines Sur, and the municipalities of Polangui and Malinao, Albay, as a protected area to be known as the Sinarapan Sanctuary, providing for its management, and for other purposesSBN-1069: Aliwagwag Falls Protected Landscape (AFPL) Act of 2007, establishing the Aliwagwag Falls in the municipalities of Boston and Cateel, province of Davao Oriental, and the municipality of Compostela, province of Compostela Valley, as a protected area

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under the category of protected landscape and its peripheral areas as buffer zone, providing for its management, and for other purposes SBN-1068: Apo Reef Natural Park (ARNP) Act of 2007, establish-ing the Apo Reef in Sablayan, Occidental Mindoro, as a protected area under the category of natural park and its peripheral waters as buffer ones, providing for its management, and for other purposes SBN-1067: Balinsasayao Twin Lakes Natural Park Act of 2007, establishing the Balinsasayao Twin Lakes in the municipalities of Valencia, Sibulan, and San Jose, province of Negros Oriental, as a protected area under the category of natural park, providing for its management, and for other purposesSBN-1066: Mt. Hilong-Hilong Range Protected Landscape Act of 2007, establishing the Mt. Hilong-Hilong Range in the city of Butuan and the municipalities of Remedios T. Romualdez, Cabadbaran, and Santiago, in the province of Agusan del Norte, as a protect area under the category of protected landscape, providing for its management, and for other purposes SBN-1065: Mts. Banahaw–San Cristobal Protected Landscape (MBSCPL) Act of 2007, establishing the mountains of Banahaw and San Cristobal, in the provinces of Laguna and Quezon, as a protected area under the category of protected landscape, providing for its management, and for other purposesSBN-994: Wildlife Resources Conservation and Protection Act, providing for the conservation and protection of wildlife resources and their habitats, appropriating funds therefor, and for other purposesSBN-901: Subic-Bataan Natural Park Act of 2007, establishing the Bataan Natural Park and the Subic Watershed Forest Reserve in the municipalities of Hermosa, Orani, Samal, Abucay, Bagac, and Morong, in the province of Bataan, and a portion of the Subic Bay Special Economic Zone on the island of Luzon as protected area under the category of natural park, providing for its management, and for other purposes SBN-868: Casecnan Protected Landscape (CPL) Act of 2007, establishing the Casecnan Protected Landscape within the munici-palities of Dupax del Norte, Dupax del Sur, and Alfonso Castañeda, province of Nueva Vizcaya, the municipality of Nagtipunan, prov-ince of Quirino, and municipalities of Maria Aurora and Dipaculao, province of Aurora, as a protected area under the catgory of protected landscape, providing for its management, and for other purposes SBN-30: Samar Island Natural Park (SINP) Act of 2007, declaring the Samar Island Natural Park (SINP), in the provinces of Samar,

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Northern Samar, and Eastern Samar, as a protected area and its peripheral areas as buffer zone, providing for its management, and for other purposes SBN-178: Malampaya Sound Protected Landscape and Seascape Act, establishing the Malampaya Sound in the municipalities of Taytay and San Vicente, province of Palawan, as a protected area pursuant to the NIPAS Act (RA 7586), providing for its manage-ment, and for other purposes SBN-177: Apo Reef Act of 2007, establishing Apo Reef in Sablayan, Occidental Mindoro, as a protected area and its peripheral waters as buffer zones, providing for its management and funds, and for other purposesSBN-176: Agusan Marsh Protected Area Act of 2007, declaring the Agusan Marsh in the province of Agusan del Sur as a protected area, and for other purposesSBN-175: Balinsasayao Twin Lakes Natural Park, declaring the Balinsasayao Twin Lakes in the municipalities of Sibulan and San Jose, province of Negros Oriental, as a protected area under the category of natural park, and for other purposes SBN-174: Mts. Banahaw–San Cristobal Protected Area Act of 2007, declaring the mountains of Banahaw and San Cristobal, in the provinces of Laguna and Quezon, as a protected area under the category of protected landscape, and for other purposesSBN-173: Mt. Balatukan Range Natural Park Act, declaring the Mt. Balatukan Range in the city of Gingoog and the municipalities of Claveria, Medina, and Balingasag, all in the province of Misamis Oriental, as a protect area and its peripheral areas as buffer zone, providing for its management, and for other purposes SBN-172: Siargao Islands Protected Landscapes and Seascapes Act of 2007, declaring the islands of Siargao and Bucas Grande as a pro-tected area under the category of protected landscapes and seascapesSBN-171: Tubbataha Reefs National Park Act of 2007, establish-ing the Tubbataha Reef National Marine Park in the province of Palawan as a natural park under the NIPAS Act (RA 7586) and the Strategic Environmental Plan for Palawan Act (RA 7611), provid-ing for its management, and for other purposes

Coastal and Marine

SBN-1506: Beaches Environmental Assessment, Closure and Health Act, to improve the quality of beaches and coastal recreation water

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SBN-1419: Philippine Coast Guard Law of 2007, transferring the Philippine Coast Guard to the Department of Transportation and Communications as a separate and distinct armed uniformed com-missioned service, further amending RA 5173 (which created the Phillippine Coast Guard), as amended, and for other purposes SBN-1412: Philippine Coast Guard Act of 2007, to promote mari-time safety, enhance maritime security, and safeguard and protect the marine environment by strengthening the Philippine Coast GuardSBN-1238: Philippine Coast Guard Act of 2007, reorganizing the Philippine Coast Guard as a separate and distinct commissioned ser-vice under the Department of Transportation and Communications, and for other purposesSBN-1142: Philippine Coast Guard, strengthening the Philippine Coast Guard and vesting in it the primary responsibility of enforc-ing maritime safety rules and regulations as well as any other matters related to the performance of safety of life and property function within Philippine territorial waters, and for other purposesSBN-993: Beaches Environmental Assessment, Closure and Health Act, to improve the quality of beaches and coastal recreation waterSBN-992: Coastal Environment Program (CEP) Act, establishing the Coastal Environment Program, appropriating funds therefor, and for other purposesSBN-885: Guidelines under Which the Philippine Coast Guard Allows Dumping of Waste Materials in Navigable Water, amending certain sections of the Marine Pollution Decree of 1974 (PD 600)SBN-796: Coastal Environment Program (CEP) of 2007, establish-ing the Coastal Environment Program, appropriating funds therefor, and for other purposesSBN-636: Shore Protection Act, regulating shipping vessels coast-ing in Philippine waters, for the protection of shoresSBN-586: Sea Dumping Ban Act, banning the dumping of sewage sludge and industrial waste into the seaSBN-541: Philippine Coast Guard Act of 2007, establishing the Philippine Coast Guard as an agency attached to the Department of Transportation and Communications, further amending RA 5173 (which created the Philippine Coast Guard) and the Revised Coast Guard Law of 1974 (PD 601), and for other purposesSBN-438: Coral Reefs Protection and Preservation Act of 2007, providing for the creation of reservation areas for the preservation and protection of coral reefs, providing penalties therefor, and for other purposes

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SBN-294: Shore Protection Act, regulating shipping vessels coast-ing in Philippine waters, for the protection of shoresSBN-229: Lake Lanao Development Authority of 2007, creating the Lake Lanao Development Authority, defining its powers, func-tions, and duties, and for other purposesSBN-186: Philippine Coast Guard Law of 2007, transferring the Philippine Coast Guard to the Department of National Defense as a separate and distinct service under the Philippine Navy, further amending RA 5173 (which created the Philippine Coast Guard) HB00078: Increasing the penalty imposed against polluters of navigable waters by amending section 7 of PD 979 providing for the revision of PD 600 governing marine pollutionHB00117: Amending certain sections of the Marine Pollution Decree of 1974 (PD 600)HB00133: Establishing an international compensation fund for oil pollution damage, providing penalties therefor, and for other purposesHB00606: Requiring coastal provinces, coastal cities, and first-class coastal municipalities to have a marine reserve for aquatic resources and a fisheries officer to supervise the same, and appropriating funds thereforHB01803: Establishing marine protected areas in all coastal munici-palities, amending for the purpose the Philippine Fisheries Code of 1998 (RA 8550), and for other purposes

Water Resources

SBN-1140: Department of Fisheries and Aquatic Resources Act of 2007 (DFAR), creating a Department of Fisheries and Aquatic Resources, providing for its powers and functions, and for other purposesSBN-981: 3-Year Program for the Construction of Potable Water Supply System in Every Barangay, promoting rural health by provid-ing for an accelerated program for the construction of a potable water supply system in every barangay in the country within 3 yearsSBN-799: Water Resources Management Act, addressing the national water crisis, providing for comprehensive water resources management, and for other purposesSBN-777: Rivers and Waterways Ecological Zones of 2007, declar-ing and establishing rivers, river systems, beaches, shores, and water-ways as ecological zones, and for other purposes

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SBN-461: River Systems and Waterways Ecological Zones Act of 2007, declaring and establishing rivers, river systems, beaches, shores, and waterways as ecological zones, and for other purposesSBN-359: Barangay Potable Water Supply System, promoting rural health by providing for an accelerated program for the construction of a potable water supply system in every barangay in the country within 3 years

Environmental Management

SBN-1968: Use of Sewage Sludge Fertilizer in Food Awareness Act of 2007, requiring the proper labeling of food produced with the use of fertilizer made from recycled sewage sludgeSBN-1939: Philippine Environmental Protection Authority Act, creating the Philippine Environmental Protection Authority, defin-ing its powers and functions, and for other purposesSBN-1896: The New Sanitary and Environmental Engineering Law of 2007, ordaining a new sanitary and environmental engineer-ing law for the Philippines SBN-1890: Philippine Climate Change Act of 2007, establishing the framework program for climate change, creating the Climate Change Commission, appropriating funds therefor, and for other purposes SBN-1802: Requiring Malls/Stores to Use Environment-Friendly Shopping Bags instead of Plastic Bags, promoting sound waste management by requiring all department stores, malls, and commer-cial establishments to use reusable environment-friendly shopping bags and provide them free of charge to customers and patrons, and for other purposesSBN-1571: Toxic and Hazardous Substances Control Act of 2007, regulating the sale, purchase, and possession of toxic and hazardous substances, including sodium cyanide, providing penalties for viola-tion thereof, and for other purposes SBN-1509: Right to Know About Airport Pollution Act, requiring the Department of Environment and Natural Resources to conduct a feasibility study on the use of airport bubbles to identify, assess, and reduce the adverse environmental impact of airport ground and flight operations and improve the overall quality of the environmentSBN-1443: Plastic Bag Recycling Act of 2007, requiring retail stores that provide plastic bags to consumers to implement a plastic bag collection and recycling program

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SBN-1395: Philippine Economic Environmental and Natural Resources Accounting Act of 2007, institutionalizing the environ-mental and natural resources accounting system, designating the agencies responsible for its implementation, providing institutional arrangements among responsible agencies, and appropriating funds therefor, and for other purposes SBN-1232: Used Motor Vehicles Regulation Act of 2007, regulat-ing the importation of used motor vehiclesSBN-1089: Ozone Layer Protection Law of 2007, regulating the importation of substances that deplete the ozone layer, providing penalties for violations thereof, and for other purposesSBN-995: Recyclable or Biodegradable Materials for Packaging, mandating the use of recyclable or biodegradable materials for the packaging of consumer productsSBN-815: Philippine Environmental Protection Authority Act of 2007, creating the Philippine Environmental Protection Authority, defining its powers and functions, and for other purposesSBN-741: Ban Asbestos Act of 2007, banning the importation, manufacture, processing, or commercial distribution of asbestos- containing productsSBN-690: Environmental Health Research Act of 2007, establish-ing multidisciplinary centers for to conduct research on women’s health and disease prevention, and a hormone disruption research program, and for other purposesSBN-406: Bureau on Hazardous Waste, Environmental Spills and Disease Registry, establishing a Bureau on Hazardous Wastes and Environmental Spills and Disease Registry, and for other purposesSBN-357: Recyclable or Biodegradable Materials, mandating the use of recyclable or biodegradable materials for the packaging of consumer productsHB00165: Providing mechanisms for the reduction of the distribu-tion of mercury-added products and the proper disposal thereof, to reduce the introduction of mercury into the environmentHB00397: Prohibiting the production of incandescent light bulbs completely within 5 years, to cut down on the amount of green-house gases, implicated in global warming, that is released to the atmosphereHB00490: Amending section 21(b) of the Clean Air Act of 1999 (RA 8749), to empower local government units to conduct smoke emission testing

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HB00817: Banning the importation and dumping of all kinds of toxic wastes and materials into the country, and for other purposesHB00960: Enhancing the Philippine Environmental Impact Assessment (EIA) System, to strengthen public participation therein, and for related purposesHB01404: Automatically assigning to the Government the insur-ance proceeds of corporations undertaking industrial projects when-ever a major accident, disaster, or catastrophic event involving their industrial project occurs, causing damage to persons, property, and the environmentHB01648: Regulating noise and its sources and providing penalties for its violation, and for other purposesHB01775: Creating a special task force on global warming under the Department of Environment and Natural ResourcesHB01966: Reducing the use of plastic bags, Styrofoam containers, disposable plastic utensils, and similar items in all establishments in the country

Mapping

SBN-1447: NAMRIA Modernization Act of 2007, providing for the modernization of the National Mapping and Resource Information Authority (NAMRIA)SBN-470: NAMRIA Modernization Act, providing for the mod-ernization of the National Mapping and Resource Information Authority (NAMRIA)

Mining and Geosciences

SBN-27: Philippine Mining Act of 1995 (Repealing), repealing the Philippine Mining Act of 1995 (RA 7942) SBN-1627: Topographical Map of Low-lying Areas in the Philippines Act of 2007, directing the Department of Environment and Natural Resources, through the National Mapping and Resource Information Authority, to identify the low-lying areas of the Philippine territory vulnerable to rising sea levels as a result of global warming SBN-767: Environmental Assessment for Mining Projects, institut-ing independent health and environmental assessment for all min-ing projects, amending for the purpose the Philippine Mining Act of 1995

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Renewable Energy

SBN-1821: Renewable Energy Act of 2007, further promoting the development, use, and commercialization of renewable energy resources, and for other purposesSBN-1711: Renewable Energy Act of 2007, promoting the devel-opment, use, and commercialization of renewable energy sources, and for other purposesSBN-1608: Renewable Energy Act of 2007, promoting and enhanc-ing the exploration, development, use, and commercialization of renewable energy resources SBN-1423: Renewable Energy Act of 2007, promoting and enhanc-ing the development, use, and commercialization of renewable energy resourcesSBN-1303: Renewable Energy Act of 2007, promoting the devel-opment, use, and commercialization of renewable energy resources, and for other purposesSBN-1221: Renewable Energy Act of 2007, promoting and enhanc-ing the development, use, and commercialization of renewable energy resourcesSBN-1058: Marine and Hydrokinetic Renewable Energy Promotion Act of 2007, promoting the development and use of marine and hydrokinetic renewable energy technologiesSBN-588: Renewable Energy Act of 2007, promoting and enhanc-ing the development, use, and commercialization of renewable energy resourcesSBN-211: Renewable Energy Resources Act of 2007, strengthen-ing the Philippine Energy Plan for the exploration, development, and use of new and renewable energy systems using indigenous resources, and for other purposes

Environmental Education

SBN-1699: Environmental Awareness and Education Act of 2007, promoting environmental awareness through environmental educa-tion, strengthening for this purpose section 53 of the Philippine Environment Code (PD 1152), and for other purposes SBN-1603: Ecology Teaching in Elementary and Secondary Levels, providing for the teaching of ecology in all elementary and second-ary levels, whether public or private, throughout the country, and providing funds therefor

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SBN-1197: Environmental Protection for Children Act, protecting children against environmental pollutantsSBN-987: Community Environmental Information Program Act, requiring industries, factories, companies, or any institution, firm, or establishment using chemicals and their by-products in production, to develop and promote a community environmental information program SBN-986: National Environmental Education Act, creating the Office of Environmental Education, defining its functions, and appropriating funds therefor, and for Other PurposesSBN-766: Environmental Awareness and Education Act of 2007, promoting environmental awareness by declaring 5 June of every year as World Environment Day and prescribing environmental education for elementary and high school students SBN-482: Children’s Environmental Protection Act, to protect chil-dren and other vulnerable subpopulations from exposure to certain environmental pollutants, and for other purposesSBN-476: National Environmental Education Act of 2007, Creating the Office of Environmental Education, defining its func-tions and responsibilities, appropriating funds therefor, and for other purposesSBN-343: Philippine Society and Environment (Curricula), to integrate in the curricula of all educational institutions, including nonformal, indigenous learning and out-of-school-youth programs, a course on Philippine society and the environment

Local Government

SBN-1547: Local Initiative on Environmental Protection and Conservation of Natural Resources Act, empowering local government units (LGUs) to monitor the enforcement of laws, rules, and regulations on environmental protection and conservation of natural resourcesSBN-540: New Local Government Code of the Philippines, pro-viding for a new Local Government Code of the PhilippinesSBN-487: Committee on Environmental Protection (Local Government Legislative Council), mandating the creation of a committee on environmental protection in each local government legislative councilSBN-475: Local Environment Prote ction, to strengthen local envi-ronment protection by making the appointment of an environment and natural resources officer mandatory for provincial, city, and

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municipal governments, amending for this purpose 484(a) of the Local Government Code of 1991 (RA 7160) SBN-474: Environmental Protection Program (SK), amending section 426 of the Local Government Code of 1991 (RA 7160) by mandating the Sangguniang Kabataan to implement an environ-mental protection program in their respective barangays, providing the mechanism for the effective implementation thereof, and for other purposesSBN-472: Integrated Solid Waste Collection and Disposal Act, institutionalizing the basic service of integrated solid waste collec-tion and disposal in all local government units, amending for this purpose the Local Government Code of 1991 (RA 7160)

Agriculture and Fisheries

SBN-830: Bio-organic Farming, providing for the promotion of bio-organic farming in the PhilippinesSBN-829: Sloping Agricultural Land Technology (SALT) Act of 2007, establishing the Sloping Agricultural Land Technology Farming Program, appropriating funds therefor, and for other purposesSBN-1898: Bio-organic Farming Promotion Act of 2007, providing for the promotion of bio-organic farming in the Philippines, and appropriating funds thereforSBN-828: Magna Carta for Agricultural Development Workers, providing for a Magna Carta for Agricultural Development WorkersSBN-774: Department of Fisheries and Aquatic Resources Act of 2007, creating a Department of Fisheries and Aquatic Resources, providing for its powers and functions, and for other purposesSBN-371: Bio-organic Farming, Providing for the promotion of bio-organic farming in the PhilippinesSBN-219: Agricultural and Fisheries Modernization Act (AFMA), amending the Agricultural and Fisheries Modernization Act (AFMA) (RA 8435) by providing for the exemption of all enumer-ated agricultural inputs from value-added taxHB00227: Creating a Department of Aquaculture and Fisheries Resources, providing for its powers and functions, and for other purposes

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HB00323: Amending section 4 (para. 58) and providing an addi-tional section on municipal fisheries, chapter 2, article 1, of the Fisheries Code of 1998 (RA 8550), and for other purposesHB00659: Amending section 97 of the Fisheries Code of 1998 (RA 8550) HB00962: Amending section 4 (para. 58) and providing an additional section on municipal fisheries, chapter 2, article 1, of the Fisheries Code of 1998 (RA 8550), and for other purposesHB01151: Amending section 4 (para. 58) and providing an addi-tional section on municipal fisheries, chapter 2, article 1, of the Fisheries Code of 1998 (RA 8550), and for other purposesHB01267: Amending section 4 (para. 58) and providing an addi-tional section on municipal fisheries, chapter 2, article 1, of the Fisheries Code of 1998 (RA 8550), and for other purposes

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Page 220: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

Appendixes 199

Publ

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ount

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inue

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Page 221: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

200 Country Environmental Analysis 2008: Philippines

Non

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cont

inue

d

Page 222: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

Appendixes 201

Non

lend

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d

Page 223: PHILIPPINES - Asian Development Bank · 2014-09-15 · of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August

202 Country Environmental Analysis 2008: Philippines

Appendix 6: Summary of Results of the Consultative Meeting on the 2008 Philippine Country Environmental Analysis Report

Major Concerns

Weakness of the lead environment and natural resources (ENR) agency (DENR) and other directly concerned agencies (LLDA, LGUs) because of lack of budget, technical capability, resources (tools, etc.)Conflicting government policiesLack of financing for environmental projectsFragmented resource management (sectoral instead of integrated), resulting in conflicts, overlaps, or gaps in ENR managementPoor implementation of certain laws“Politicized” management

Other Comments and Concerns

Rebuilding the lead ENR agencyAll groups agreed that the DENR has been left behind by the growing mandates given to it. There should be a major rebuild-ing of DENR.The budget is still not enough, considering the expectations from the various sectors for DENR to fulfill its growing mandate. This concern however is true of most government entities.The rationalization plan has been revised several times, with the latest version submitted to the Department of Budget and Management only in June 2008. The plan has gone through several changes in the past 4 years, owing to changes in DENR leadership (a new secretary and therefore new priorities and new directions). DENR expected the plan to be finally approved within 2008, giving hope for a better distribution of personnel and resources in the DENR.Capacity building will be needed once the rationalization plan is approved. Under the rationalization plan, EMB will have more technical staff. These will come from other bureaus within the DENR and will need extensive training to fulfill their responsibilities.

•••

••

•–

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Appendixes 203

Mandate overlaps were likewise recognized; in most cases these have caused conflicts between government agencies, resulting in flawed implementation of laws. Memorandums of agreement and other forms of cooperation among government agencies were still seen as the best solution, although there were concerns that MOAs usually become ineffective when the signatories change.The participants agreed that, while there are already many laws, other laws like the Sustainable Forest Management Act and the National Land Use Act still need to be passed.A holistic and more comprehensive study of all the environ-mental and natural resources laws and regulations should be conducted to come up with an integrated and non-conflicting approach to improve implementation of the laws.Graft and corruption within the agencies, political patronage and favoritism, and lack of political will and governance are perceived to be the main causes of the poor implementation of the laws.

Improving the Environmental Impact Statement (EIS) SystemAll groups agreed that EIS implementation continues to be flawed. DENR group mentioned the recently completed World Bank and ADB studies as a good jump-off point. ADB or the World Bank may be tapped to provide assistance to implement the recommendations of these studies.

Completing the devolution of ENR functions to LGUsAccording to DENR group, the Local Government Code has gaps that prevent the full devolution of ENR responsibilities to the LGUs. The law may need to be amended for this.In the meantime, LGUs will need to be ready when DENR turns over responsibilities. Certain functions transferred by DENR to LGUs (e.g., cadastral surveys) were taken back because the LGUs were unable to fulfill their duties.There is no provision for sanctions to any party involved if the devolution is not done, therefore there is no motivation for anyone to really go through the devolution process. A recent DENR survey of the implementation of devolved functions by LGUs showed that not even half of the expected functions had been devolved.NGO/Industry groups felt that the LGUs should also be asked to give their side of the story.

•–

•–

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204 Country Environmental Analysis 2008: Philippines

Devolution should undergo a comprehensive third-party (not DENR- and LGU-led) assessment to determine the status of implementation and recommend a better plan for a successful devolution of functions.

Shifting from sector-based to integrated, ecosystem-based planning and management

All groups agreed that government planners and managers must now go in this direction. Again the idea of reviewing all the laws and using an integrated approach to reformulate these laws were suggested

Sustaining forest management and biodiversity conservation effortsForest and biodiversity management efforts should not simply be sustained but increased.The issue of ancestral domain of the indigenous peoples should be given importance in these efforts.

Increasing financing for environmental projectsConsidering their low budget, the government agencies have to depend on (meager) assistance from donor agencies to imple-ment regulations.The Government realizes that other priority programs (partic-ularly development programs) need financial assistance in the form of loans. Providing grants and other non-loan facilities for environmental programs and projects of the Government is therefore worth considering, since these programs and projects do not necessarily have returns on investments.The Government should have clear and investment-friendly policies to encourage private sectors to invest in environmental projects. Government financial institutions have available environmental financing facilities (DBP said at least $1.2 billion for the year) but there are no takers, probably because of poor marketing, as well as encouraging steps for industries and other groups to invest in environmental projectsIndustries felt that there should be incentives for them to invest in environmental projects; MSMEs that need techni-cal and financial support are usually not creditworthyto go to bank financing. Thus, there is a certain disconnect between the banks (government financial institutions) and the potential fund users.

Improving and expanding the use of market-based instrumentsIt was also agreed that the use of MBIs should be strongly pursued; however, clear-cut policies must be put in place and implemented throughout the country.New types of MBIs should also be considered.

•–

•–

•–

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Appendixes 205

ENR concerns and poverty reduction This is a cyclical concern that is common in most underdevel-oped and developing countries. ENR concerns are mentioned in passing in most poverty reduction plans but are not really given importance unless the donor agencies (such as ADB) insist on compliance.This is a major concern, but the responsibility is not DENR’s alone.

Solution Matrix

Problem/Issue/Concern

Probable Causes

Proposed Solutions

Proposed Solution Mix

General Environmental Concerns

Fragmented resource management

Sectoral managementSome policies not consistent with sustainable development

Ecosystem-based forest resource managementIntegrated coastal resource managementHarmonized policiesReviewed and revised laws

NGAs, NGOs, people’s organizations, donors, LGUs, academe

Too much population stress on natural resources

Uncontrolled population growthDisorganized urban growth

Population policiesUrban and rural Planning

DOH, DENR (land use)

Indiscriminate land use; conversion of prime agricultural lands devoted to rice and corn production

Lack of policies and regulators for land use conversionLack of government credit support for farmers: very low palay-buying price Weak security of land tenureLack of infrastructure,e.g., farm-to-market roads

Strict protection and regulations for land conversionSustained IEC campaign for landowners and farmersImproved cooperativesPostharvest facilitiesFaster issuance of land titlesFarmers’ organizations and cooperatives

DA, LGUs, regional field units,Bureau of Postharvest Research and Extention, DAR, Municipal Planning and Development Offices

•–

continued

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206 Country Environmental Analysis 2008: Philippines

Problem/Issue/Concern

Probable Causes

Proposed Solutions

Proposed Solution Mix

Low volume of tourists in the Philippines

Inadequate tourist infrastructure and facilitiesPoor peace-and-order situation in some parts of the countryInaccessibility of major international markets Limited promotional campaignInadequate air, sea, and land transportation systemLimited number of tourism front liners

Adequate business incentives for accommodation facilitiesAdequate marketing to create strong awareness in strategic and major source markets Adequate tourism support infrastructure, airports, seaports, road networkRegular institutional and private sector–led tourism training workshops

Public sector(Department of Tourism, DPWH, Department of Transportation and Communications, LGUs, police, Technical Education and Skills Development Authority), Center for Culinary Arts, Hotel and Restaurant Association of the Philippines

Degrading ENR base (e.g. forest/biodiversity loss), coastal resources depletion, air and water pollution

Overlapping or uncoordinated policies Policy gapsWeak capacity (e.g., lack of tools, inadequate skills, inadequate systems and procedures)

Integrated policy, e.g., Environmental Policy ActTools (e.g., guidelines, models)Capacity development (e.g., training)

Concerned NGAs, legislature, NGOs, private sector, donors,LGUs

Increasing vulnerability of environment and natural resources stakeholders (e.g., upland and coastal poor becoming poorer, increasing health problems and economic losses from environmental emergencies)

- do -

continued

Solution Matrix continued

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Appendixes 207

Problem/Issue/Concern

Probable Causes

Proposed Solutions

Proposed Solution Mix

Environmental degradationInsufficient food production (e.g., rice shortage)

Watershed degradationUnregulated use of farm inputs (pesticides, fertilizers) Climate change

Watershed rehabilitation with emphasis on sub-watershed support IEC (farming systems)Climate change adaptation measures

DENR, stakeholders, DA, LGUs

Slow movement of environmental investment funds

Insufficient technical capacity of financial institutionsLack of funds for technical expertsVoluminous technical and reporting requirementsPoor enforcement of environmental laws

Reorganization or organizational strengtheningCheaper TA funds or grants

Concerned agencies, donors, DOF, NEDA

Non-enterprise- friendly environment policies

Insufficient study and consultation in the formulation of many environmental policies (propensity to adopt policies of other countries, which may not apply to the Philippines)Lack of awareness and appreciation (especially by micro/SMEs) of the costs and benefits of environmental improvements (e.g., short-term view)

Policy makers better able to base laws on sufficient study and research and to engage the private sector (especially micro/SMEs) in consultationIncentives for private investments in environmental technologiesBetter dissemination of environmental policies and technologiesMore environmental financing facilities

Donors (build this condition into their program requirements); industry groups; DTI, DENR, Department of Science and Technology (provide continuing education programs);development agencies and government financial institutions (evaluate and improve environmental financing facilities)

continued

Solution Matrix continued

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208 Country Environmental Analysis 2008: Philippines

Problem/Issue/Concern

Probable Causes

Proposed Solutions

Proposed Solution Mix

Lack of incentives or access to financing for environmental technologies and equipmentLack of participation (especially by micro/SMEs) in consultations for policy formulation Lack of technical expertise among policy makersLack of incentives for private investments in environmental technologies (e.g., treatment of hazardous waste)

Low public awareness

Insufficient resources to expand education and awareness programsLow priority (especially at the local level)

Enough resources to expand education and awareness programs

LGUs, Philippine Information Agency, private sector, NGOs (social marketing campaigns)

Weak protection of ecosystems services

Market-based incentives for the protection of ecosystem services

Inadequate carrying capacity of Philippine resources

Overpopulation; Catholic church stand on population management

EducationActive advocacyPassage of law on population management

continued

Solution Matrix continued

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Appendixes 209

Problem/Issue/Concern

Probable Causes

Proposed Solutions

Proposed Solution Mix

MTPDP not crafted as a sustainable development plan; does not deliver on poverty reduction and environmental protection

Mind-set that development is mainly about economic growth

Policy reformParticipatory planning and budgeting Education for sustainabilityHuman development (education, livelihood, etc.)

Government offices and non-state actors

Governance

Overlapping jurisdiction and uncoordinated implementation of conservation programs(fisheries, DENR and DA-BFAR local level,forests, DENR and PNOC local level)- Memorandums

of agreement proven to be a good solution in some cases

- Laws (source of conflict)

Partial devolutionUnfunded mandates

Rationalized budget support for unfunded devolved LGU mandatesCo-management arrangements institutionalized between NGA and LGUs and private sector

LGU, DILG, Department of Budget and Management, DENR

Poor environmental governance

Limited resources for environment protectionGap between legislation and practiceErratic policies (mining, tourism)

Better coordination among agenciesBigger budget Legislative review and simplificationBetter salaries for DENR staffCoherent land-use policies

DENR, DOF, NEDA, DA, DAR, LGUs,private sector,NGOs, etc.

continued

Solution Matrix continued

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210 Country Environmental Analysis 2008: Philippines

Problem/Issue/Concern

Probable Causes

Proposed Solutions

Proposed Solution Mix

Corruption; no prosecution of environmental offenses

Low salariesInequity (political elitism)Poor justice/enforcement system

Better salaries for enforcement agenciesPolitical willFull application of the law to everyone

Supreme Court, Office of the Ombudsman, PNP, AFP, DENR

Graft and corruption in the environment sector

Distorted public service values (e.g., utang na loob [obligation to repay a favor received])Poor implementation of civil service standards, code of ethicsLack of political will (intertwined vested interests and public interests); political patronageLack of transparent and efficient system of policy formulation and implementation

Leadership by example (executive dept. and line agencies)Effective, strict, and consistent enforcement of environmental rules and regulationsValues formation programs for officials and enforcers

Executive dept.,DENR, Civil Service CommissionNGOs (for monitoring and advocacy)

Poor or non-implementation of policiesToo many laws but little enforcement

No budget Review and consolidation of all environmental laws

NGOs, academe, legislature

Institutional/Organizational

Inadequate technical know-how

Lack of expertiseLack of manpower

Consultants

Lengthy procurement process for infrastructure

Time-consuming procurement procedures for gov’t projects

Procurement by private company (e.g., concessionaire)

Manila Water Company, Maynila Water Services, concessionaires

continued

Solution Matrix continued

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Appendixes 211

Problem/Issue/Concern

Probable Causes

Proposed Solutions

Proposed Solution Mix

Insufficient budgetary allocation

Additional budget for NGAs and LGUs

External funding (grants)

Donors, NGAs,legislature

Insufficient policy development, planning, and programming capacities of NGAs

Insufficient funds for capacity development

More funding from government and donors

Donors, concerned NGAs,legislature

Inadequate data and management information systems

Lack of hardware and relevant skills

More funds for hardware acquisition and skills development

Donors,concerned NGAs, legislature

Poor knowledge management (use of technical expertise in policy development)

Biodiversity

Unabated loss of biodiversity

Illegal destructive fishingIllegal loggingUnregulated land conversion Compartmen-talized programs Wildlife traffickingPoaching by big commercial fleets in municipal waters

Better enforcement of environmental lawsStronger interagency cooperation to combat environmental crimes

Various agencies led by PNP (DENR, LGUs, DA)Jointly operated structure and training program

Biodiversity lossHabitat degradation Forest conversionOverextraction, depletion of resources

Poor law enforcementPoverty Conflicting development goals between levels of governmentLack of tenurial security

Harmonized plans and policies at the local levelIEC campaignEnforcement of regulatory policiesEnabling environmentStronger CBFM New strategic plan for CBFM

LGUs, NGOs, DENR, NEDA, church sector, private sector

continued

Solution Matrix continued

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212 Country Environmental Analysis 2008: Philippines

Problem/Issue/Concern

Probable Causes

Proposed Solutions

Proposed Solution Mix

Water Resources and Water Quality Management

Inadequate clean water supply and sewerage system

Lack of financing from national Government

Assistance to Local Water Utilities Administration and water districts, MWSS, LGUs; multilateral agencies to extend loans

DENR, MWSS, NWRB, DBP, LBP, LGUs, donors

Need for new water sources including sources of funds

Lack of funding from the Government

Funding from government financial institutions, lending institutions

WB, ADB

Depletion/Deterioration of watersheds for new water resources

Illegal settlersIllegal loggingKaingin (slash-and-burn farming)Conversion of landsRight-of-way

Tighter watershed security Strict enforcement of laws against illegal loggingStrict enforcement of policies

AFP/LGU, DENR, Housing and Land Use Regulatory Board

Lack of safe drinking water

Limited sourcesLimited financial supportLGUs’ lack of technical expertise

Extraction and construction of new water sources Assistance from local and foreign financial institutionsTA for LGUs

NWRB, DPWH, DILG, DBP, LBP, ADB, WB, JICA, UNDP, WHO, DOH, and other stakeholders

Poor sanitation Limited knowledge of effects of poor sanitationLimited financial support Lack of community toilets

Advocacy and IEC activitiesAssistance from local and foreign financial institutionsCommunal sanitation facilities

DOH and partners, DBP, LBP, ADB, WB, JICA, UNDP, WHO, DPWH, DILG, NWRB

continued

Solution Matrix continued

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Appendixes 213

Problem/Issue/Concern

Probable Causes

Proposed Solutions

Proposed Solution Mix

Air Quality Management

Enforcement of Clean Air Act

Poor enforcement, political unit institutionalization

DENR to follow up recommendation of ADB loan with LGUs, LTO, and enforcement agencies

DENR, regional offices, LTO, LGUs, enforcement agencies

Waste Management

Inadequate solid waste management

Lack of LGU capacity to comply with SWM act; lack of technical and financial capacity

Assistance in preparation of master plan; template for 10-yr SWMAssistance in design of sanitary landfill

Donor community, National Solid Waste Management Commission

Improper health-care waste management

Limited knowledge of health-care waste managementLack of treatment facilitiesLack of approved disposal sites

Advocacy and IEC activitiesTreatment facilitiesSanitary landfills

DOH/DENR,LGUs, private sector

Climate Change

Climate changeMitigationAdaptation

••

Lack of integrated approach to addressing environmental problems caused by human activities (urban, forestry, coastal, biodiversity, etc.)Low public awareness of impact of climate changeConsumptive lifestyle of Filipinos

Integrated approach/ planning to address environmental problems caused by human activities (urban, forestry, coastal, biodiversity, etc.)More resources for climate change mitigation and adaptation

Office of the President to require integrated planning approachMultistakeholder approach to preparation of a road map for climate change

continued

Solution Matrix continued

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214 Country Environmental Analysis 2008: Philippines

Problem/Issue/Concern

Probable Causes

Proposed Solutions

Proposed Solution Mix

Disaster Risk Mitigation and Management

Disaster risk reduction

Philippines prone to various disasters; lack of capacity and response from national and local government

Community-based disaster risk management

National Disaster Coordinating Council and its coordinating agencies

Poverty as a Consequence

Worsening poverty in coastal communities

Depletion of marine resources, destruction of marine ecosystemOverfishing, illegal methods of fishing, growing population of coastal communities

Credit facility to promote marine resource managementGradual shift in fisheries from capture to cultureTechnical assistance for capacity building

DTI, LGUs, financial institutions, BFAR, DENR

ADB = Asian Development Bank; AFP = Armed Forces of the Philippines; BFAR = Bureau of Fisheries and Aquatic Resources; CBFM = community-based forest management; DA = Department of Agriculture; DAR = Department of Agrarian Reform; DBP = Development Bank of the Philippines; DENR = Department of Environment and Natural Resources; DILG = Department of the Interior and Local Government; DOF = Department of Finance; DOH = Department of Health; DPWH = Department of Public Works and Highways; DTI = Department of Trade and Industry; IEC = information, education, and communication; JICA = Japan International Cooperation Agency; LBP = Land Bank of the Philippines; LGU = local government unit; LTO = Land Transportation Office; MWSS = Metropolitan Waterworks and Sewerage System; NEDA = National Economic and Development Authority; NGA = national government agency; NGO = nongovernment organization; NWRB = National Water Resources Board; PNP = Philippine National Police; SMEs = small and medium-sized enterprises; SWM = solid waste management; TA = technical assistance; UNDP = United Nations Development Programme; WB = World Bank; WHO = World Health Organization.

Solution Matrix continued

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Appendixes 215

1. Cesar R. QuintosDivision Chief Laguna Lake Development Authority70 Rafael St., AsiaPro Building Bgy. Kapitolyo, Pasig [email protected]

2. Frank B. Hilarie ECO IIINational Water Resources Board8th Floor, NIA Building, EDSADiliman, Quezon [email protected]

3. Susan P. AbanoEngineer IVNational Water Resources Board8th Floor, NIA Building, EDSADiliman, Quezon [email protected]

4. Marcial C. Amaro, Jr.Ecosystems Research and Development BureauVisayas Avenue, Diliman, Quezon [email protected]

5. Ruel D. M. BelenEngineer VNational Mapping

and Resource Information Authority Lawton Avenue, Fort BonifacioTaguig City, Philippines [email protected]

6. Godofredo Villapando, Jr. Program Development Unit ManagerFoundation for the Philippine Environment 77 Matahimik St., Teacher’s Village Diliman, Quezon [email protected]

7. Orly CariatoSupervising Forest Management SpecialistForest Management Bureau Visayas Avenue, Diliman, Quezon [email protected]

8. Emy AguinaldoDeputy Executive DirectorNational Solid Waste Management Commission HRD Bldg. DENR CompoundVisayas Avenue, Diliman, Quezon City [email protected]

Appendix 7: Participants at the Consultative Meeting on the 2008 Philippine Country Environmental Analysis Report

DENR-FASPO Conference Room Department of Environment and Natural

Resources Quezon City 4 June 2008

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216 Country Environmental Analysis 2008: Philippines

9. Ma. Delia ValdezSupervising Environmental Development SpecialistNational Solid Waste Management Commission HRD Bldg. DENR Compound Visayas Avenue, Diliman, Quezon [email protected]

10. Anabelle E. PlantillaChief Operating OfficerHaribon Foundation2nd Floor, Santos Sisons Bldg.973 Aurora Blvd., Quezon [email protected]

11. Marietta Tan Project Officer IVMines and Geosciences Bureau 2/F J. Fernandez Bldg., MGB Comp. North Avenue, Diliman Quezon [email protected]

12. Estella M. BucoyAdministrative Officer VLand and Management BureauPlaza Cervantes, Binondo, [email protected]

13. Meriden MarawanChief Planning StaffProtected Areas and Wildlife Bureau Parks and Wildlife Nature Center Diliman, Quezon [email protected]

14. Teresita T. BlaztigueSenior Environmental Management SpecialistProtected Areas and Wildlife Bureau Parks and Wildlife Nature Center Diliman, Quezon [email protected]

15. Ma. Lourdes FerrerOIC-DirectorForeign Assisted and Special Projects Office, DENRVisayas Avenue, Diliman, Quezon City [email protected]

16. Joel CaparasRiver Basin Control OfficeDepartment of Environment and Natural Resources Visayas Avenue, Diliman, Quezon [email protected]

17. Mary Ann Lucille SeringUndersecretaryDepartment of Environment and Natural Resources Visayas Avenue, Diliman, Quezon City

18. Eriberto C. ArgeteDirectorPlanning and Policy Studies Office Department of Environment and Natural ResourcesVisayas Avenue, Diliman, Quezon City

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Appendixes 217

19. Cristina RegunayDivision Chief MIPD, Foreign Assisted and Special Projects Office Visayas Avenue, Diliman, Quezon City [email protected]

20. Josie Q. NatividadProject Assistant MIPD, Foreign Assisted and Special Projects Office Visayas Avenue, Diliman, Quezon City

21. Marivic AbreraChief, ERPDEnvironmental Management BureauVisayas Avenue, Diliman, Quezon City [email protected]

22. Rica TumubanganPlanning StaffEnvironmental Management BureauVisayas Avenue, Diliman, Quezon City [email protected]

23. Teresita J. ReyesAsst. Chief, ResearchLand and Management BureauPlaza Cervantes, Binondo, [email protected]

24. Jocelyn S. EsguerraNational Coordinator United Nations Development Programme–GEF-SGPNEDA Makati Bldg.

Amorsolo St., Makati [email protected]

25. Evelyn M. JuanilliPEO IIIMIPP, FASPODepartment of Environment and Natural ResourcesVisayas Avenue, Diliman, Quezon [email protected]

26. M. Nasimul IslamEnvironmental Specialist SERD/SEAE Asian Development BankADB Avenue, Mandaluyong [email protected]

27. Marissa V. DavidADB ConsultantManaging Director Center for Environmental Studies and ManagementSuite 210, Quadstar Building Ortigas Avenue, Greenhills San Juan, [email protected]

28. Norma Llemit Senior Training SpecialistCenter for Environmental Studies and ManagementSuite 210, Quadstar Building Ortigas Avenue, Greenhills San Juan, [email protected]

29. Aldwin CamanceCenter for Environmental Studies and ManagementSuite 210, Quadstar Building

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218 Country Environmental Analysis 2008: Philippines

Ortigas Avenue, Greenhills San Juan, [email protected]

30. Alex GuintuCenter for Environmental Studies and ManagementSuite 210, Quadstar Building Ortigas Avenue, Greenhills San Juan, [email protected]

31. Bethela Castro-DelNeroCenter for Environmental Studies and ManagementSuite 210, Quadstar Building Ortigas Avenue, Greenhills San Juan, [email protected]

ADB Conference Room 6417/6418 West Asian Development Bank

5 June 2008

1. Elmer BenedictosOfficer-in-ChargeDepartment of HealthSan Lazaro Compound, Rizal Avenue Santa Cruz, [email protected]

2. Erwin F. BalaneChief Tourism Operations OfficerDepartment of Tourism T. M. Kalaw, Malate, Manila

3. Amelia Dulce SupetranSustainable Development AdviserUnited Nations Development ProgrammeNEDA Makati Bldg. Amorsolo St., Makati [email protected]

4. Wilfredo B. Sanidad Supervisor, Agriculture

Department of Agriculture DA Building, Elliptical Road Diliman, Quezon City 1100

5. Minnie DacanayConsultantJapan International Cooperation Agency40th Floor, Yuchenco Tower RCBC Plaza, Ayala AvenueMakati [email protected]

6. Aldwin Christian B. YamAssistant ManagerDevelopment Bank of the PhilippinesSen. Gil Puyat Avenue, Makati [email protected]

7. Reynaldo BaloloyPrincipal Engineer ANational Irrigation Administration

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Appendixes 219

Visayas Avenue, Quezon [email protected]

8. Rudolf Fravendoreor Senior Urban Development Asian Development BankADB Avenue, Mandaluyong [email protected]

9. Lerma RosarioDivision ManagerMetropolitan Waterworks and Sewerage System4th Floor, Administration Building MWSS Complex, 489 Katipunan Road Balara, Quezon City

10. Juan EchanoveProgramme Officer Environment Programme OfficeDelegation of the European Commission to the Philippines30th Floor, RCBC Plaza Ayala Avenue, Makati [email protected]

11. Aurora C. MaghirangSenior Assistant Vice PresidentDevelopment Bank of the PhilippinesSen. Gil J. Puyat Avenue, Makati [email protected]

12. Renerio B. AcostaDevelopment AssistantUSAID/Philippines

8th Floor, PNB Financial Center Roxas Boulevard, Pasay [email protected]

13. Neeraj K. JainCountry Director Philippine Country OfficeAsian Development BankADB Avenue, Mandaluyong [email protected]

14. M. Nasimul IslamEnvironmental SpecialistSERD/SEAE Asian Development BankADB Avenue, Mandaluyong [email protected]

15. Marissa V. DavidADB ConsultantManaging Director Center for Environmental Studies and ManagementSuite 210, Quadstar Building Ortigas Avenue, Greenhills San Juan, [email protected]

16. Elvira Ramos-BalinangTraining and Organization Development [email protected]

17. Alex GuintuCenter for Environmental Studies and ManagementSuite 210, Quadstar Building Ortigas Avenue, Greenhills San Juan, [email protected]

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220 Country Environmental Analysis 2008: Philippines

18. Bethela Castro-DelNeroCenter for Environmental Studies and ManagementSuite 210, Quadstar Building Ortigas Avenue, Greenhills San Juan, [email protected]

1. Benjamin T. GregorioPresident Pollution Control Association of the Philippines, Inc.Rm. 245–247, Cityland Pioneer St., Mandaluyong [email protected]

2. Syarifah Aman-WoosterSenior Civil Society and Participation Specialist, Regional and Sustainable Development Department Asian Development BankADB Avenue, Mandaluyong [email protected]

3. Isagani SerranoSenior Vice PresidentPhilippine Rural Reconstruction Movement56 Mother Ignacia Avenue, Quezon [email protected]

4. Carmencita G. ArceVice PresidentGMA Network, Inc.,

GMA Complex EDSA corner Timog Avenue Diliman, Quezon [email protected]

5. Grace MorellaManager Philippine Chamber of Commerce and Industry (PCCI) 3rd Floor, ECOP Bldg., Makati City

6. Liza C. AntonioExecutive DirectorPhilippine Business for the Environment (PBE)2nd Floor, DAP Bldg. San Miguel Avenue, Pasig [email protected]

7. Dallay AnnawiResearcherEnvironmental Science for Social ChangeAteneo de Manila Campus, Quezon [email protected]

ADB Conference Room 6417/6418 West Asian Development Bank

6 June 2008

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Appendixes 221

8. M. J. RahmanOIC, Southeast Asia Agriculture, Environment, and Natural Resources Division Asian Development BankADB Avenue, Mandaluyong [email protected]

9. Marion DaclanExecutive Technical CoordinatorConservation InternationalNo. 6 Maalalahanin St.Teacher’s Village, Diliman, Quezon City

10. Rowena BoquirenSocio-Economic and Policy Unit LeaderConservation InternationalNo. 6 Maalalahanin St.Teacher’s Village, Diliman, Quezon City

11. Maria Teresa VinluanVice ChairmanAir and Water Management Association–Philippine Section12D Bellamaja Townhouses 411 Rev. Aglipay St., Bgy. Old Zaniga Mandaluyong [email protected]

12. M. Nasimul IslamEnvironmental SpecialistSERD/SEAEAsian Development BankADB Avenue, Mandaluyong [email protected]

13. Marissa V. DavidADB ConsultantManaging Director Center for Environmental Studies and ManagementSuite 210, Quadstar BuildingOrtigas Avenue, GreenhillsSan Juan, [email protected]

14. Elvira Ramos-BalinangTraining and Organization Development [email protected]

15. Alex GuintuCenter for Environmental Studies and ManagementSuite 210, Quadstar BuildingOrtigas Avenue, GreenhillsSan Juan, [email protected]

16. Bethela Castro-DelNeroCenter for Environmental Studies and ManagementSuite 210, Quadstar BuildingOrtigas Avenue, GreenhillsSan Juan, [email protected]

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Printed in the Philippines

About Country Environmental Analysis

This report updates the 2004 document and was prepared by the Asian Development Bank (ADB) to better understand environment and natural resources management in the country, and to assess the relevance of its lending and technical assistance. ADB and the Government will use this analysis to identify the priority constraints, needs, and opportunities, and respond with strategic interventions that will reduce the constraints and make the most of the opportunities.

About the Asian Development Bank

ADB's vision is an Asia and Pacific region free of poverty. Its mission is to help its developing member countries substantially reduce poverty and improve the quality of life of their people. Despite the region's many successes, it remains home to two-thirds of the world's poor: 1.8 billion people who live on less than $2 a day, with 903 million struggling on less than $1.25 a day. ADB is committed to reducing poverty through inclusive economic growth, environmentally sustainable growth, and regional integration. Based in Manila, ADB is owned by 67 members, including 48 from the region. Its main instruments for helping its developing member countries are policy dialogue, loans, equity investments, guarantees, grants, and technical assistance.

Asian Development Bank6 ADB AvenueMandaluyong City1550 Metro ManilaPhilippineswww.adb.orgISBN 978-971-561-807-6Publication Stock No. RPT090189