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PREFACE The United States Agency for International Development (USAID), through its Mission to the Philippines, has contracted Development Alternatives, Inc. (DAI) to implement the Environmental Governance 2 Project (EcoGov 2) under Contract 492-C-00-04-00037-00. The effective date of the contract is October 1, 2004 through September 30, 2009, with a two-year option period to September 30, 2011. DAI implements the project with the assistance of six organizations. Four of these are Philippine organizations — Cesar Virata & Associates (CVAI); the University of the Philippines’ Marine Environment and Resources Foundation (MERF); Orient Integrated Development Consultants, Inc. (OIDCI); and Resources, Environment and Economic Center for Studies (REECS). The other two are American firms — the Deloitte Emerging Markets Group (EMG) and The Media Network. The Contract requires DAI to submit Quarterly Progress Reports to USAID within 45 days of the close of each operating quarter and an Annual Report within 45 days of the end of the fourth quarter. This report summarizes the FY 2009 objectives, accomplishments toward those objectives, implementation issues and proposed resolutions, the status toward achieving sustainability of efforts, and the planned performance objectives for the next quarter. It also highlights a series of lessons learned and provides insights on some challenges ahead. The report consists of several sections. The first is an overview of the project and a summary of progress, activities, challenges and concerns over FY 2009. Succeeding sections provide detailed updates on activities undertaken for each of six Contract Line Item Numbers (CLINs), which themselves correspond to the target areas in the Contract Scope of Work (SOW). The report is also supplemented with a series of Annexes. More detailed information on EcoGov is available in other reports for readers who may not be familiar with the project. These reports are available from EcoGov project offices and USAID. Development Alternatives, Inc. USAID/Philippines EcoGov 2 16 November 2009 ANNUAL REPORT NO. 5, OCTOBER 2008 – SEPTEMBER 2009 i ii THE PHILIPPINE ENVIRONMENTAL GOVERNANCE 2 PROJECT TABLE OF CONTENTS PREFACE .................................................................................................................................. I LIST OF TABLES ........................................................................................................................V LIST OF FIGURES ......................................................................................................................V LIST OF ANNEXES ....................................................................................................................VI ACRONYMS............................................................................................................................. VII 1. PROJECT OVERVIEW AND HIGHLIGHTS OF PROGRESS FY 2009............................................1 1.1 Project Overview........................................................................................................ 1 1.2 Highlights of Progress for Base Period (up to Year 5) and Trends in Implementation..................................................................................................... 3 1.3 Leveraging of LGU investments ................................................................................ 5 1.4 EcoGov Contribution to Anti-Corruption ................................................................. 6 1.5 EcoGov Contribution to Addressing Global Climate Change (GCC)........................ 7 1.6 EcoGov Contribution to Conflict Management in Mindanao .................................... 8 1.7 EcoGov Contribution to Building Local Institutional Capacity................................. 9 1.8 Key Overarching Challenges for EcoGov in Y6Y7................................................. 10 Mapping political transitions in an election period (2010).................................................10 Advancing the thematic convergence – “ridge to reef” ......................................................11 Integrating global climate change considerations ..............................................................11 Promoting sustainable financing mechanisms ....................................................................12 Mainstreaming / Institutionalization of Environmental Governance for DENR and LGUs.............................................................................................................................13 1.9 Implementation Concerns......................................................................................... 13 General................................................................................................................................13 Forest and Forestlands Management..................................................................................14 Coastal Resource Management (CRM)...............................................................................15 Urban and Environmental Management (UEM).................................................................15 Governance and Advocacy..................................................................................................15 2. DETAILED ANNUAL PERFORMANCE REPORT BY CONTRACT LINE ITEM NUMBER ..................17 2.1 Improved Forest Management.................................................................................. 17 FFM Accomplishments – Nationwide..................................................................................17 FFM Accomplishments – Northern Luzon...........................................................................24 FFM Accomplishments – Central Visayas ..........................................................................26 FFM Accomplishments – Southern and Central Mindanao................................................27 FFM Accomplishments – Western Mindanao .....................................................................28 Lessons in FFM: Year 5 in Perspective...............................................................................29 Implementation Problems and Proposed Resolution ..........................................................30 ANNUAL REPORT NO. 5, OCTOBER 2008 – SEPTEMBER 2009 iii 2.2 Improved Coastal Resources Management .............................................................. 32 CRM Accomplishments -- Nationwide ................................................................................ 32 CRM Accomplishments – Northern Luzon.......................................................................... 35 CRM Accomplishments – Central Visayas.......................................................................... 35 CRM Accomplishments – Western Mindanao..................................................................... 38 CRM Accomplishments – South-Central Mindanao ........................................................... 41 Lessons Learned from Year 5.............................................................................................. 43 Implementation Problems and Proposed Resolutions ........................................................ 44 Objectives for Next Quarter................................................................................................ 45 2.3 Improved Solid Waste Management ........................................................................ 46 UEM Accomplishments - Nationwide ................................................................................. 46 UEM Accomplishments – Northern Luzon.......................................................................... 49 UEM Accomplishments – Central Visayas ......................................................................... 50 UEM Accomplishments – Southern and Central Mindanao............................................... 53 UEM Accomplishments – Western Mindanao..................................................................... 58 Lessons Learned in Solid Waste Management for Year 5................................................... 60 Implementation Problems and Proposed Resolution.......................................................... 62 Objectives for Next Quarter................................................................................................ 63 2.4 Municipal Investments in Sanitation........................................................................ 64 Summary of Accomplishments ............................................................................................ 64 Municipal Investment Accomplishments – Central Visayas ............................................... 65 Municipal Investment Accomplishments – South-Central Mindanao................................. 67 Lessons Learned in Municipal Investments in Sanitation for Year 5.................................. 70 Implementation Problems and Proposed Resolution .......................................................... 70 Objectives for Next Quarter................................................................................................ 71 2.5 Strengthened Government Institutions..................................................................... 72 Strengthened National Institutions...................................................................................... 72 2.6 Management and Administration ........................................................................... 107 Project Management........................................................................................................