UNEP/SCS/National Report 5 - Philippines
National Report of Philippines on the Formulation of a Transboundary Diagnostic Analysis and Preliminary Framework of a Strategic Action Programme for the South China Sea NATIONAL REPORT
FOR THE FORMULATION OF A Transboundary Diagnostic Analysis for the South China Sea
PHILIPPINES
2 CONTENTS
1.0 INTRODUCTION ...... 1 1.1 AIM OF THE NATIONAL REPORT...... 1 1.2 MAJOR WATER-RELATED ENVIRONMENT PROBLEMS ...... 1 1.3 COUNTRY BACKGROUND ...... 2 1.4 GEOGRAPHIC DIVISIONS USED IN THE ANALYSIS ...... 3 2.0 DETAILED ANALYSIS OF MAJOR WATER-RELATED CONCERNS AND PRINCIPAL ISSUES...... 5 2.1 POLLUTION...... 5 2.1.1 Sources of pollution...... 5 2.1.2 Pollution hot spots...... 10 2.1.3 Sensitive and high risk areas...... 11 2.2 FRESHWATER SHORTAGE AND THE DEGRADATION OF ITS QUALITY ...... 11 2.2.1 Surface water...... 11 2.2.2 Groundwater...... 16 2.3 EXPLOITATION OF LIVING AQUATIC RESOURCES ...... 21 2.3.1 Living freshwater resources ...... 21 2.3.2 Living marine resources ...... 22 2.4 MODIFICATIONS OF AQUATIC HABITATS...... 34 2.4.1 Freshwater...... 34 2.4.2 Marine habitats and resources ...... 34 2.4.3 Critical habitats, ecosystems and species of transboundary importance...... 46 3.0 NATIONAL ANALYSIS OF THE SOCIAL AND ECONOMIC COSTS OF THE IDENTIFIED WATER-RELATED PRINCIPAL ENVIRONMENTAL ISSUES ...... 58 3.1 SOCIAL AND ECONOMIC COSTS OF POLLUTION ...... 59 3.2 SOCIAL AND ECONOMIC COSTS OF WATER SHORTAGE AND DEGRADATION OF ITS QUALITY ...... 60 3.3 SOCIAL AND ECONOMIC COSTS OF OVER-EXPLOITATION OF AQUATIC RESOURCES . 61 3.4 SOCIAL AND ECONOMIC COSTS OF HABITAT CHANGES...... 62 4.0 ANALYSES OF THE ROOT CAUSES OF THE IDENTIFIED WATER-RELATED ISSUES ...... 62 4.1 ROOT CAUSES OF POLLUTION...... 63 4.1.1 Domestic and solid wastes ...... 63 4.1.2 Agrochemical loading...... 64 4.1.3 Siltation/sedimentation...... 64 4.1.4 Organic pollution in terms of biological oxygen demand (BOD)...... 64 4.1.5 Toxic and hazardous waste [THW] including heavy metals and mine tailings...... 64 4.1.6 Oil pollution...... 65 4.1.7 Harmful algal bloom (HAB)...... 65 4.2 ROOT CAUSES OF WATER SHORTAGES AND QUALITY DEGRADATION ...... 66 4.2.1 Surface water quantity and quality...... 66 4.2.2 Groundwater quantity and quality...... 66 4.2.3 Hydrological alterations ...... 66 4.2.4 Freshwater issues related to global changes (for example, El Ni effects)...... 66 4.2.5 Maritime transport environment ...... 67 4.3 ROOT CAUSES OF OVER-EXPLOITATION OF AQUATIC RESOURCES ...... 67 4.3.1 Unclear access arrangements (for example, overlapping roles of stakeholders)...... 67 4.3.2 Overpopulation, allocation and insufficient preferential access rights (for example, integrated fisheries management)...... 67 4.3.3 Absence of coastal zoning programmes ...... 68 4.3.4 Poor policies and weak law enforcement...... 68 4.3.5 Others ...... 69 4.4 ROOT CAUSES OF THE DEGRADATION OF HABITATS AND THEIR MODIFICATION ...... 69 4.5 NON-MARKET OPERATIONAL ALLOCATIONS AND MARKETING BASED INTERVENTION ...... 70 iii 5.0 ONGOING AND PLANNED ACTIVITIES RELEVANT TO THE IDENTIFIED WATER-RELATED PRINCIPAL ENVIRONMENT ISSUES ...... 70 5.1 ONGOING AND PLANNED ACTIVITIES FOR POLLUTION ABATEMENT...... 71 5.2 ONGOING AND PLANNED ACTIVITIES TO MITIGATE WATER SHORTAGES ...... 72 5.3 ONGOING AND PLANNED ACTIVITIES TO REGULATE OVER-EXPLOITATION OF AQUATIC RESOURCES...... 73 5.4 ONGOING AND PLANNED ACTIVITIES FOR APPROPRIATE LAND AND COASTAL ZONING...... 78 6.0 CONSTRAINTS TO ACTION...... 78 6.1 POLLUTION ABATEMENT AND WASTE MANAGEMENT ...... 79 6.1.1 Information, scientific uncertainties and public awareness...... 79 6.1.2 Financial and economic ...... 80 6.1.3 Legal, institutional and managerial ...... 80 6.2 WATER SHORTAGE AND DEGRADATION OF WATER QUALITY ...... 80 6.2.1 Information, scientific uncertainties and public awareness...... 80 6.2.2 Financial and economic ...... 81 6.2.3 Legal, institutional and managerial ...... 81 6.3 OVER-EXPLOITATION OF FRESHWATER AND MARINE RESOURCES...... 81 6.3.1 Information, scientific uncertainties and public awareness...... 81 6.3.2 Financial and economic ...... 81 6.3.3 Legal, institutional and managerial ...... 82 6.4 HABITAT MODIFICATION...... 82 6.4.1 Information, scientific uncertainties and public awareness...... 82 6.4.2 Financial and economic ...... 82 6.4.3 Legal, institutional and managerial ...... 82 7.0 SPECIFIC ACTION PROPOSED FROM IDENTIFIED ISSUES AND PROBLEMS...... 83 7.1 POLLUTION (POLLUTION ABATEMENT AND WASTE MANAGEMENT PROGRAMME)...... 83 7.1.1 The legal and institutional framework ...... 83 7.1.2 Policy initiatives and indicative guidelines ...... 84 7.1.3 Public education and participation (especially in pollution control and abatement and waste minimization) ...... 84 7.1.4 Monitoring, evaluation and control system...... 84 7.1.5 Capacity-building...... 85 7.2 FRESHWATER SHORTAGE AND DEGRADATION OF WATER QUALITY (SURFACE WATER ENHANCEMENT AND GROUNDWATER REHABILITATION AND MANAGEMENT PROGRAMME)...... 85 7.2.1 The legal and institutional framework ...... 86 7.2.2 Policy initiatives and indicative guidelines ...... 86 7.2.3 Public education and participation...... 86 7.2.4 Monitoring, control and evaluation ...... 87 7.2.5 Capacity-building...... 87 7.3 OVER-EXPLOITATION OF LIVING AQUATIC RESOURCES (SUSTAINABLE MARINE AND AQUATIC RESOURCES UTILIZATION PROGRAMME)...... 87 7.3.1 The legal and institutional framework ...... 88 7.3.2 Policy initiatives and indicative guidelines ...... 88 7.3.3 Public education and participation...... 89 7.3.4 Monitoring, Evaluation, Control and Surveillance (MECS) System...... 89 7.3.5 Capacity-building...... 90
iv 7.4 HABITAT MODIFICATION (LAND CARE AND INTEGRATED COASTAL MANAGEMENT PROGRAMME)...... 90 7.4.1 The legal and institutional framework ...... 90 7.4.2 Policy initiatives and indicative guidelines ...... 90 7.4.3 Public education and participation...... 90 7.4.4 Monitoring, control and evaluation ...... 91 7.4.5 Capacity-building...... 91 8.0 IMPLICATIONS OF THE PROPOSED ACTION BY SECTOR ...... 91 8.1 FINANCE...... 96 8.1.1 Financial planning and sustainability ...... 96 8.2 ECONOMIC DEVELOPMENT ...... 96 8.2.1 Sustainable healthy environment integral to development ...... 97 8.2.2 Sustainability and equity ...... 97 8.3 FISHERIES...... 98 8.3.1 Food security and sustainable fisheries ...... 98 8.4 AGRICULTURE...... 98 8.5 FORESTRY ...... 99 8.5.1 Watershed management and silviculture...... 99 8.6 MANUFACTURING...... 99 8.6.1 Industrial zones...... 99 8.6.2 International maritime areas ...... 100 8.7 MINING AND ENERGY ...... 100 8.9 LABOUR...... 101 8.10 CONSUMERS ...... 102 9.0 SUMMARY ...... 102
v LIST OF TABLES
Table 2.1 Estimated daily solid waste generation in the Philippines Table 2.2 Average composition of solid waste in the Philippines Table 2.3 Income levels and the physical character of waste Table 2.4 Estimated THW arising by industry sector in Metro Manila, Region 3 and 4 Table 2.5 Classification and use criteria of fresh surface waters Table 2.6 Classification and use criteria of coastal and marine waters Table 2.7 Status of Philippine coral reefs based on surveys by three projects Table 2.8 Critical coral reef areas in terms of siltation, pollution, fishing and storm impacts Table 2.9 Mangrove forest in the Philippines from 1920-94 (x 100 ha) Table 2.10 Seagrass assessment in seven sites in the Philippines Table 2.11 Conservation/utilization of seagrass beds in the Philippines Table 2.12 Priority issues and possible management options in the various biogeographic sectors Table 2.13 Sample exercise (not validated) to help elicit vulnerable and sensitive areas Table 3.1 Philippine nature sector accounts, 1988 Table 5.1 Number of qualified SWIM projects by region and agency Table 8.1 Matrix of past and present policies affecting the use of coastal resources
LIST OF FIGURES
Figure 1.1 Schematic territorial boundaries map Figure 2.1 Coastal populations and regional industrial centres Figure 2.2 Pollution hot spots, sensitive and vulnerable areas Figure 2.3 Pollution high risk areas Figure 2.4 Groundwater map of the Philippines Figure 2.5 El Nino vulnerability map for the Philippines Figure 2.6 Philippine fish production Figure 2.7 Biogeographic subdivisions based on coral reef affinities Figure 2.8 Mangrove cover and fishpond construction from 1920 to 1994 Figure 2.9 Alternative strategies for existing Philippine mangrove resources Figure 2.10 Guidelines for the selection of mangrove areas for preservation, conservation and fishpond development Figure 5.1 Fisheries sector programme (FSP) and coastal environmental programme (CEP) sites Figure 8.1 A coastal cross-section documenting major interrelationships between economic policies and the utilization of coastal resources
vi UNEP SCS/National report Philippines Page 1
1.0 INTRODUCTION
1.1 AIM OF THE NATIONAL REPORT
This report provides a synoptic review of the state of water-related issues and problems. It seeks to characterize water-related problems in terms of the environmental stresses which accrue from pollution, freshwater shortage, over-exploitation of the aquatic resources and habitat modification. The evaluation of these problems is based on insights from the emergent spatio-temporal patterns and the processes that may have brought them about. It aims to assess the social and economic costs and the root causes of the issues and problems as the bases for deriving possible solutions in the formulation of a framework for action. The framework for action proposes changes in the perspective "that what is good business sense without sustainable development require shifts in the business as usual attitude" (for example, coming up with a functional zonation system and capacity-building for the transboundary water concerns of the country). The programmes also suggest some areas of reform especially in some of the processes in the joint participation by government and stakeholders in the identification of site specific problems and solutions. This effort is primarily an inter-agency governmental initiative of some of the national government organizations under the coordination of the Department of Environment and Natural Resources - Environmental Management Bureau (DENR-EMB).
Although the inputs are primarily written by individuals from these agencies, the importance of identifying institutional ownership and responsibilities for the proposed actions in order to deal with water-related issues and problems needs to be re-emphasized and further processed. The Philippine contribution to the transboundary diagnostic study of the East Asian Seas (EAS) region under the United Nations Environment Programme (UNEP) is part of the project development phase to establish a joint transboundary programme for possible funding by the World Bank Global Environmental Facility (WB-GEF). The report not only provides the stimulus for a joint regional undertaking but the synopsis can serve as a checklist or a sort of report card system for evaluating these water-related issues both nationally and in relation to regional and global partners. Despite the constraints in undertaking all the proposed actions, if the feedback cycle of monitoring, evaluation and adaptive action were enhanced by this study then this effort would already be a positive step forward.
1.2 MAJOR WATER-RELATED ENVIRONMENT PROBLEMS
The Philippines as a country that aspires to the status of a newly industrializing economy (NIE) by the year 2000, has to contend with the development option of how to find the proper harmony in sustaining economic growth with enhanced social development in a setting of long-term environmental health and viability. To date, this seems to be an elusive goal since most of the issues of pollution, freshwater shortage, over-exploitation of aquatic resources and habitat modification have worsened in many areas of the country (Ali 1997, unpublished). In addition, the question can be addressed as to how environmental resources can be allocated to provide sufficient benefits and responsibilities to the local people and the nation so that a realistic response to the regional and global community can be envisioned. UNEP SCS/National report Philippines Page 2
The root causes of the issues and problems related to the water environment can be both systemic (for example, common property rights and zoning) and issue specific (such as environmental impact assessments (EIA) and the water code as it relates to pollution). Thus, the options for their appropriate solutions require an integrated approach which facilitates coordinated action rather than overemphasizes sectoral concerns. At the same time, the appropriateness of these actions recognizes the specificity of both the local and national concerns together with the general and specific relevance to the issues at hand. This means that clearly defined roles and responsibilities should be established so that improved coordination is facilitated.
Water-related issues pertaining to impacts on the environment and its resources are primarily under the mandate of the Department of Environment and Natural Resources (DENR) and the Department of Agriculture (DA) especially the DA-Bureau of Fisheries and Aquatic Resources (DA-BFAR). Unfortunately, there is a considerable chasm in coordinating the efforts of both institutions. In addition, concerns on freshwater utilization are in most respects under the National Water Regulatory Board (NWRB) under the Department of Public Works and Highways (DPWH) which is often quite inadequate to deal with issues related to the environment such as watershed management and resource extraction. Nevertheless, the constraints exhibited within national government organizations have been more than overcome by the laudable initiatives of local governments (for example, Palawan) and non- governmental organizations (NGOs).
Some crucial information is derived from sources: (a) Deocadiz (1997) for issues relating to pollution; (b) Jacinto and Gervacio (1997) review of ongoing projects and programmes on the coastal and marine environment; (c) JICA study (1997) on ground and surface water sources; (d) DENR marine affairs and policy; and (e) PCSD (1997) Action Plan for Philippine Agenda 21 for sustainable development.
1.3 COUNTRY BACKGROUND
The Philippines is considered part of the centre of marine biodiversity found in the Indo-West Pacific region. Around two thirds of its population of around 70 million Filipinos live within the coastal zone (Chua 1997). An annual population growth rate of around 2.3 per cent which is largely dependent on fish as the main protein source suggests that fish production requirements would reach 2.7 million metric tons by the year 2010 (Bernaesck 1996). These estimates indicate that increased pressures on the path of upstream sources and downstream receptors of water-related environmental concerns will need urgent proactive action. Nevertheless, a considerable increase has been gained to date in the enlightenment of Filipinos, resulting from the seminal inflow of environmental consciousness in the early 1980s. This provides an opportunity not only for a paradigm shift in the views towards improved environmental management in general but also a positive movement especially in the integrated coastal zone management (ICZM) arena (see also Chua 1977). Aside from the wealth of expertise on matters of ICZM in the Philippines, its experience in community based coastal resources management (CBCRM) has been exemplary (OECF 1997). Based on the identification of the strengths and weaknesses found in the history of the Philippine environmental movement and the government policies for environmental management, there is cause for optimism. UNEP SCS/National report Philippines Page 3
This optimism holds despite the dire condition projected for the Philippines against the odds for the coming year as a consequence of the financial crisis starting in 1997. The Philippine situation should be taken as a lesson to be more conservative in making unsustainable economic projections and that "sound economic fundamentals" require sound environmental fundamentals (Montes 1994). This principle of wise use to be sustained for the longer term and the equitable allocation of the resources can be considered as inherent aspects in the evaluation of the water-related issues/problems, their causes and options for enhanced management. Much of the country's development is the result of the processes the country has taken in response to the socio-economic and biophysical forces of its history.
The country exhibits a north-south and east-west gradient, both as a result of the north-east and south-west monsoons and the influence of the Spanish and American colonial experience. Historically, the country developed in the northern main island of Luzon where the national capital was established in the Spanish period. The past resistance of the Muslim communities in the southern island of Mindanao to the predominantly catholic national government has often marginalized this region. In the central region of the Visayan islands, the maritime and fishing industries have developed owing to its strategic position as a trading centre and the traditional fishing affinity of island communities. The influence of typhoons has also affected the social development of various regions, as seen in the northern Batanes and eastern parts of the country such as the Isabela, Aurora, Bicol and Samar areas which have been less accessible to past national development pushes.
The geological development of the archipelago has resulted in both distinct biotic distributions, economic and socio-cultural development. The archipelago's position in the north-eastern flank of the South China Sea not only serves as a buffer to the typhoons and the influences of the Kuroshio currents but it is critical in the consideration of its national and transboundary context in coping with pollution and biodiversity issues.
1.4 GEOGRAPHIC DIVISIONS USED IN THE ANALYSIS
The archipelago, composed of over 7,000 islands, is bounded by the Batanes region in the north and the Palawan region in the south-west area (figure 1.1). Two main categories for classifying geographic divisions are used in this study: one based on the political jurisdictions (15 regions) of the national government agencies and the other based on a biogeographic perspective (six to seven zones identified by Ali and Gomez 1994 and Hayden and others 1984). Merging the two geographic classification schemes is pragmatic in order to provide the functional context, taking into consideration the processes involved in the interactions of human society and its biophysical environment.
In practice, it involves moving the government polity together with the community in the institutionalization and implementation of actions in a biophysical setting which is dynamic in its ecological and evolutionary nature. Some of the issues are: (a) the relevance of the programmatic environment impact assessments (EIA) to the regional industrial centres (RIC); (b) the problems of coping with the territorial jurisdictions of municipal and commercial fisheries; (c) the matching of the scales of management regimes for marine ecosystems such as in the large marine ecosystem concept utilized in the establishment of the Sulu and the Celebes Sea Commission; (d) the transboundary treaty with Malaysia and the Philippines for the joint marine protected area management of the Turtle Islands; and (e) the establishment of an area of peace and prosperity in the dangerous grounds area of the South China Sea.
Figure 1.4.1 Schematic territorial boundaries map UNEP SCS/National report Philippines Page 4
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Straight Baselines - Republic Act No. 3046 amended by R.A. 5446 Treaty Limits - Treaty of Paris (1898) 200 n.mi. E.E.Z. - Presidential Decree No. 1593; 1978 Kalayaan Claim - Presidential Decree No. 1595; 1979 UNEP SCS/National report Philippines Page 5
2.0 DETAILED ANALYSIS OF MAJOR WATER-RELATED CONCERNS AND PRINCIPAL ISSUES
The archipelagic nature of the Philippines provides some general features in its land and sea interaction. Its effect in the South China Sea is predominantly the landward influences to the sea coming from the western sections of the country. Specifically these areas would be from the north and south-western sectors of Luzon and western Palawan. Aside from its buffering effect on the influence of the Pacific north equatorial current, the circulation of the inland waters has a great influence on the fisheries productivity and movement of the straddling and shared stocks of the country. Interrelated concerns are inherent in the fluid nature of the water medium aside from the highly mobile attributes of its associated resources. For example, pollution in a water body not only affects the biota of the ecosystem but can also modify the carrying capacity in the fisheries exploitation levels and effect habitat changes or modification (for example, eutrophication from impoundment and reclamation in bays).
2.1 POLLUTION
2.1.1 Sources of pollution
2.1.1.1 Rivers
The status of the various river basins according to their classification shows that they do not exceed acceptable criteria, but it is well known that the Pasig River basin is well beyond acceptable limits. The river basin area that drains into the Lingayen Gulf and Batangas Bay as of the moment may still be within acceptable levels but it is expected to experience greater vulnerability in the future.
2.1.1.2 Coastal cities and coastal populations
As noted by Deocadiz (1997), 70 per cent of the country's population is found in coastal cities (figure 2.1). An ongoing collaborative study by the World Resources Institute (WRI) with the International Centre for Living Aquatic Resource Management (ICLARM) and others uses the geographic information system (GIS) analytical tools together with expert validation of decision rules to highlight areas where reefs are at risk from coastal development (including pollution and maritime transport), siltation and overfishing. Some of the criteria set for decision rules propose a potential area of impact depending on the area of influence as related to proximity to population centres. The synoptic map is utilized to obtain some first approximations of the general priority areas considered relevant to the South China Sea and the country report. The primary pollution concerns relevant to coastal populations is sewage and solid waste disposal. Sewage affects BOD levels and reduces system carrying capacity. Around 34,307 tons of solid wastes are produced daily of which 62 per cent are collected (table 2.1). Around 72 per cent of what is collected is being dumped in open dumpsites while the rest is either recycled by scavengers or dumped in waterways. Deocadiz (1997) estimates that the main contributors for solid wastes are from residential areas (50 per cent), street sweepings (19 per cent) and markets (11 per cent). UNEP SCS/National report Philippines Page 6
Figure 2.1 Coastal populations and regional industrial centres (RIC) UNEP SCS/National report Philippines Page 7
Table 2.1 Estimated daily solid waste generation in the Philippines
1989 Per capita daily rate 0.46 kg Population, millions 64.90 Daily quantity, tonnes 29,854 Daily quantity in coastal areas, tonnes 20,898 1995 Per capita daily rate 0.50 kg Population, millions 68.6 Daily quantity, tonnes 34,307 Daily quantity in coastal areas, tonnes 24,015 2000 Per capita daily rate 0.60 kg Population, millions 85.50 Daily quantity, tonnes 51,300 Daily quantity in coastal areas, tonnes 35,910 Source: Deocadiz 1997.
Table 2.2 Average composition of solid waste in the PhilippinesTable 2.1
Component % By weight Yard and field waste 33.5 Fines and inerts 12.9 Wood 11.5 Food waste 11.0 Paper and cardboard 10.2 Plastic and petroleum Prod. 9.8 Textiles 4.1 Metals 3.3 Glass 1.9 Leather and rubber 1.8 Total 100 Source: Adopted from Deocadiz 1997 citation of Consoer and others (1988). UNEP SCS/National report Philippines Page 8
Table 2.3 Income levels and the physical character of waste (percentage by weight)
Residentia Area income Level Waste component l LowLowLo Medium HighHighHi wLowLowL (%) ghHighHigh owLowLow HighHighHi (%) gh (%) Paper 6.26 9.04 7.56 Cardboard 2.67 3.82 2.77 Food and kitchen waste 8.35 11.38 10.16 Plastic 13.50 8.86 5.60 Textiles 8.39 3.12 2.85 Rubber and leather 3.13 1.88 1.06 Petroleum products 0.01 0.01 3.73 Yard and field wastes 24.42 29.37 37.50 Wood 7.66 11.74 13.12 Fines 13.43 9.87 7.61 Metals 3.64 4.73 2.51 Glass 2.58 2.55 1.84 Inerts 5.97 3.86 3.22 Total 100.01 100.23 99.53
Source: Adopted from Deocadiz 1997 citation of Consoer and others (1988)
2.1.1.3 Industrial pollution from coastal installations
Decocadiz (1997) reports that of the 11,005 manufacturing establishments in the country more than half are found in Metro Manila. Of the 10,466 establishments which employ more than 10 people, around 47 per cent are found in Metro Manila manufacturing food (24 per cent), wearing apparel except footwear (16 per cent), publishing industries and allied industries (6 per cent), textiles (5 per cent) and fabricated metals (5 per cent). UNEP SCS/National report Philippines Page 9
2.1.1.4 Discharge from upland and lowland based activities, by sector
Table 2.4 Estimated THW arising by industry sector in Metro Manila, Region 3 and 4
PSIC CODE Sector THW (Te/y) Arisings (%) 12 Agriculture 4 0 21 Mining 327 0 31 Food and Drink 40829 17 32 Textile 40143 17 33 Wood 1968 1 34 Paper 3816 2 35 Chemicals 48929 21 36 Non-Metallics 15629 7 37 Basic Metals 11809 5 38 Engineering 17642 8 39 Other Manufacturing 5862 3 40 Power Generation 10130 4 60 Distribution 78 0 70 Transport 24 0 973 - 411 0 Healthcare 18000 8 Construction 5000 2 Municipal sludges 5000 2 Municipal solids 6000 3 Total 231601 100
Source: Deocadiz 1997; data were adopted from Entec Europe Ltd and others 1996.
2.1.1.5 Ports, harbours and maritime transport
One of the ways to evaluate the potential risks from port and harbour activities utilized by the project of the World Resources Institute was to set up a risk criteria classification for reefs based on high or medium risk as follows:
(a) High risk areas are those within 20 km of a port and within 20 km of an oil rig;
(b) Medium risk areas are those within 20-100 km of a port and in congested shipping areas based on the known shipping routes and narrowness of the passage.
This exercise (WRI and others 1998 ongoing) can serve as an initial indicator for this study since reefs are among one of the most sensitive and valuable habitats in the marine environment. Nevertheless other sites without reefs and with less relevance to the South China Sea transboundary site are important but are not considered for this report. The highest risk areas considered are located in: Manila Bay, Subic Bay, Batangas Bay and Puerto Galera Bay whereas the medium risk areas are the areas in Bacuit Bay and the Malampaya Shell - Oxy exploration site. Note should be taken of the internal waters in the Mindoro Strait area which are considered at medium risk and similar narrow passage ways in the central and eastern Visayas. UNEP SCS/National report Philippines Page 10
Despite the low risk from maritime and harbour activities for the Spratlys (known as the Kalayaan Island Group [KIG]) in the Phippines), one may consider this a sensitive area considering the high level of shipping activity and the potential conflicts which may arise from the conflicting claims to the area.
2.1.1.6 Seabed exploration
In the Philippines, the only area with a potential offshore seabed development at the moment is located around 50 kilometres from the north-west Palawan area. Initial environmental impact studies on the development of an underwater gas pipeline from the Palawan offshore site crossing towards the Mindoro Straits into Batangas Bay and Bataan suggests some possible areas of concern. A possible oil blow-out in these areas may threaten the environmentally critical areas of north-west Palawan within five days of a major oil spill in the area. On the other hand these prospects may be remote and the development activities at the moment concentrate on gas development.
2.1.1.7 Marine dumping
As mentioned in the previous accounts, Manila Bay has the highest impacts experienced from marine dumping. Large fishkills and red tide occurrences have been attributed to toxic waste dumping, domestic sewage and pollution from the factories around the bay. Relevant to the South China Sea are the areas of Batangas Bay and Puerto Galera which are moving towards a medium to high risk condition. Frequent anecdotal accounts of garbage being dumped in these routes are cause for concern. The fishing and maritime trade activities in these areas have also a considerable link to shipping activity in the dangerous ground areas of the South China Sea.
In addition, Subic Bay, Zambales which has accelerated its shipping activity and link to Manila Bay is the next most important area for land-based influences in the marine environment.
2.1.1.8 Atmospheric inputs to the aquatic environment
Atmospheric inputs to the aquatic environment have often been attributed to some industries and natural catastrophic events. Only the Calaca coalfired plant in Batangas might be considered to have affected the South China Sea through atmospheric inputs (attributed to human activity).
The Mt. Pinatubo eruption in June 1992 shows that the world’s atmospheric condition has been affected, aside from direct ashfall coming from the eruption itself. Initial estimates of annual fisheries losses for that period are around $0.5 million (Ochavillo and others 1992).
2.1.2 Pollution hot spots
Pollution hot spots derived from areas considered to be regional growth centres and where there have been incidences of red tide suggest that the pollution hot spots which have primary importance to the South China Sea are the following: (a) Manila Bay and the Calabarzon area; (b) the Zambales area where the Subic Bay free port is located; and (c) the Mindoro Straits where Batangas Bay and Puerto Galera Bay interact (figure 2.2). Important protection buffers should be considered between the Lubang areas, Mindoro and the Balayan Bay and Batangas areas (i.e., the Verde Island Passage areas). UNEP SCS/National report Philippines Page 11
In addition, the inputs from mining activities in the Agno and Vi s river basins into Lingayen Gulf have primarily localized effects. Initial indications of interaction among their highly migratory fish species with the South China Sea is seen in some genetic affinities of the gulf and those from Zambales coast and northward in the Curimao area (Ochavillo personal communication).
2.1.3 Sensitive and high risk areas
Areas with red tide occurrences are considered high-risk areas (figure 2.3). The highest occurrence of red tide is in Manila Bay with only occasional and localized records in the Masinloc, Zambales area. Other areas are more eastward and found in constricted passages in the Visayas region. Although only in the initial stages, oil and gas development is ongoing in the Malampaya and Camago field areas off north-west Palawan. Potential conflicts in the South China Sea, especially in the Spratlys, could create a high-risk situation owing to the presence of a considerable number of military installations from the claimant countries.
Sensitive areas have high fisheries and ecological values and functions. These priority areas in relation to the South China Sea are: the North-western Palawan areas especially Bacuit Bay and the Mindoro Straits (including Apo reef) since they are known passage ways and spawning areas of endangered species and important fisheries stocks (for example, tuna and groupers or "lapu-lapu"). In addition proposals for marine protection for nesting areas of marine turtles and seabirds have been proposed in the Spratlys Islands and the Batanes Islands biogeographic zone.
Radioactive waste dumping areas have not been documented for the area although proposals for consideration have been made to the Philippine Government.
2.2 FRESHWATER SHORTAGE AND THE DEGRADATION OF ITS QUALITY
2.2.1 Surface water
2.2.1.1 Sources of surface water and current status
Table 2.5 shows the classification of the main freshwater bodies in the Philippines, according to the standards of DENR. In general the JICA (1997) study suggests that even with half of the areas still having an AA or A classification, areas around Metro Manila show considerable problems from contamination of domestic, industrial and agricultural effluents. The rivers, which were vigorously monitored, were the Pasig River, Marikina River, and the Tullahan-Tenejeros River. Aside from the pollution related problems, soil erosion and deforestation are considered the most important concerns in sustaining surface water supply and its quality. UNEP SCS/National report Philippines Page 12
Figure 2.2 Pollution hot spots, sensitive and vulnerable areas UNEP SCS/National report Philippines Page 13
Figure 2.1.3.1 Pollution high risk areas UNEP SCS/National report Philippines Page 14
Table 2.5 Classification and use criteria of fresh surface waters
Classification Beneficial use Class AA Public Water Supply Class I. Waters having watersheds which are uninhabited and otherwise protected and which require only approved disinfection in order to meet the National Standards for Drinking Waters (NSDW) of the Philippines.
Class A Public Water Supply II. Sources of water supply that will require complete treatment (coagulation, sedimentation, filtration and disinfection) in order to meet the NSDW.
Class B Recreational Water Class I. Waters for primary contact recreation such as bathing, swimming, skin diving etc. particularly those designated for tourism purposes.
Class C 1. Fishery Water for the propagation and growth of fish and other aquatic resources. 2. Recreational Water Class II (Boating etc.) 3. Industrial Water Supply Class I (for manufacturingprocesses after treatment)
Class D 1. For agriculture, irrigation, livestock watering etc. 2. Industrial Water Supply Class II (e.g. cooling) 3. Other inland waters, by their quality, belong to this classification
Source: Department of Environment and Natural Resources. UNEP SCS/National report Philippines Page 15
Table 2.6 Classification and use criteria of coastal and marine waters by the Department of Environment and Natural Resources (DENR)
Classification Beneficial use Class SA 1) Waters suitable for the propagation, survival and harvesting of shell fish for commercial purposes. 2) Tourist zones and national marine parks and reserves established under Presidential Proclamation No. 1801 existing laws and/or declared as such by the appropriate government agency. 3) Coral reef parks and reserves designed by law and concerned authorities. Class SB 1) Recreational Water Class I (Areas regularly used by the public for bathing, swimming, skindiving etc.) 2) Fishery Water Class I (Spawning areas for Chanos chanos or Bangus and similar species) Class SC 1) Recreational Water Class II ( e.g. boating) 2) Fishery Water Class II (Commercial and sustenance fishing) 3) Marshy and/or mangrove areas declared as fish and wildlife sanctuaries. Class SD 1) Industrial Water Supply Class II (e.g. cooling) 2) Other coastal and marine waters, by their quality, belong to this classification. Source: Department of Environment and Natural Resources.
In addition, Laguna Lake, which is presently under the jurisdiction of the Laguna Lake Development Authority, has been considered a possible water source for the Calabarzon area. Some considerable drawbacks have been pointed out for Laguna Lake mainly: (a) the problem of eutrophication and pollution, and (b) costs in pumping water to Metro Manila might not be feasible since the level of the intake is low. As a result of the alarming rate of deforestation (2 per cent a year from 1990 to 1994), and despite considerable conservation efforts, an additional nine (from the original 99) watershed areas were established in 1994. Around 1.4 million hectares were proclaimed watershed forest reserves. A list of the reserves of from the Parks and Wildlife Bureau of the Department of Environment and Natural Resources (PAWB-DENR),which includes some noteworthy species, is available in the JICA (1997) report.
2.2.1.2 Water demand by sector
The total municipal and industrial water demand for Metro Manila, which is supplied from surface water, is estimated to reach 72 m3 per sec in 2025. Around 25 m3 per sec in the vicinity of Metro Manila is needed. This may come after the completion of the Umiray Angat trans-basin project. The following are alternative surface water sources which are being considered for further development: (a) Marikina river basin (Wawa dam); (b) Kaliwa UNEP SCS/National report Philippines Page 16 river basin (Laiban dam); (c) Kanan river basin (Kanan dam); (d) Umiray river basin (under construction); and (e) Pampanga river basin (Ring Dike around the Candaba swamp).
2.2.1.3 Impact areas for shortage or low quality surface water
An assessment of the water resources potential in each water resources region (WRR) using a water balance study (JICA 1997, sec. H) was undertaken, the total water resources potential being derived from the sum of the groundwater and surface water.
This study suggests that the discharges of 80 per cent firmness in river basins of Luzon island are small compared with those of Mindanao. Mindanao seems to have sufficient supply owing to its more favourable climatic conditions. Surface waters in Luzon might also be affected by irrigation diversion in the upstream areas. Agricultural water will still be dominant in 2025 in most of the WWR except in Metro Manila where a large part of the supply will be utilized by the municipal and industrial demand. As mentioned earlier, it is suggested that Metro Manila will have a severe water deficit by the year 2025 unless additional water sources are tapped.
2.2.1.4 Causes of issues and problems including sectoral demands and market failures
The unabated extraction of groundwater resources and the pollution of surface water seem to continue and are aggravated by the disequilibrium in investment in the sector and the rapid growth of the population (JICA 1997).
There exists a very fragmented approach by the regulatory government agencies. Private sector participation needs stimulating. In addition, there is a need to clarify ownership of water districts and to define where the proceeds of privatization will accrue once a water district is privatized.
2.2.1.5 Impacts and global changes
As seen in the El Ni vulnerability maps, the western sector of the country is most susceptible to drought conditions.
2.2.1.6 Proposed interventions and sustainable rates of extraction
Most of the proposed interventions in the surface water use are geared to:
(a) Improving policies, laws and institutional arrangements such as the establishment of a super body to upgrade the National Water Regulatory Board; (b) Establishing and implementing a master plan to integrate the various uses such as irrigation, watershed management, inland fishery, flood control, power generation and domestic water supply; (c) Establishing and implementing the Small Water Impounding Management (SWIM) project; (d) Coordinating watershed management programmes for water resources development; (e) Rationalizing the privatization process especially water pricing and water rights allocation. 2.2.2 Groundwater
Freshwater resources have been classified as surface water and groundwater resources. Present conditions suggest that groundwater resources grants occupy around 3.4 per cent of freshwater use. Of these water resources grants, around 92 per cent is UNEP SCS/National report Philippines Page 17 consumed by the irrigation sector while the municipal (3.5 per cent), industrial (3.1 per cent) and others (1.5 per cent) occupy a small percentage (JICA 1997).
2.2.2.1 Groundwater aquifers and current status
Figure 2.4 shows a map of the groundwater aquifers and their status as of 1997. In Luzon, groundwater is utilized in a greater proportion than surface water while in the Visayas and Mindanao surface water is mainly utilized (JICA 1997).
2.2.2.2 Demand for its use (by sector)
(a) For level III (water districts supply system), 85.9 per cent use groundwater. Most of this production comes from wells rather than from springs. Around 560 Mecum/yr is produced from groundwater for domestic use (Level III) (JICA 1997).
(b) Level I (areas outside level III with parts from rural and urban areas) groundwater production is around 159.3 Mecum/yr with Central Luzon (42.4 Mecum/yr) and Metro Manila (31.2 Mecum/yr) as the highest consumers of domestic water (level I) (JICA 1977). c) Level II water supply systems (communal faucet systems, barangay level water supply) produce a total of groundwater production of 57.4 Mecum/yr with Metro Manila (11.3 Mecum/yr) and Central Luzon (7.0 Mecum/yr) as the highest consumers (JICA 1977).
2.2.2.3 Impact areas of groundwater shortage and low quality groundwater
The groundwater potentials of the WRR have been calculated based on their relative surface area, hydrogeology and the amount of precipitation they receive.
Based on the land-use patterns in these areas and a recharge rate based on around 5 per cent of their annual precipitation volume, the impacts of water shortage have been estimated for the WRR/provinces. This is tabulated in table C5 - C7 of the JICA (1997) report. It was also pointed out that urban development reduces groundwater recharge because of the reduction in the porosity of surface areas owing to covering by concrete, asphalt and other non-porous material. UNEP SCS/National report Philippines Page 18
Figure 2.4 Groundwater map of the Philippines UNEP SCS/National report Philippines Page 19
According to the Metropolitan Waterworks and Sewerage System (MWSS) as of 1995 out of the 265 wells they owned 156 (58.9 per cent) were abandoned because of saline water intrusion, lowered water levels or deterioration of the facilities (JICA 1997).
In the JICA report, table G7 shows that the projected water shortages and saline water intrusion are related to the projected economic growth scenarios. The coastal areas of Metro Manila have an estimated 1086 per cent demand/recharge ratio and Batangas 226 per cent. The projected shortage of level III supply systems and saline water intrusion are expected by the year 2025 for Metro Manila, Zambales, Oriental Mindoro and Palawan (JICA 1997).
2.2.2.4 Causes of issues and problems including sectoral demands and market failures
Similar to the surface water situation, the causes of the issues and problems are primarily socially induced, such as the following:
(a) No comprehensive water resources management plan; (b) Ineffective coordination of water resources management; (c) No clear basis for appropriating water grant amounts; (d) Inadequate measures and capacity to regulate users of water facilities; (e) Groundwater pollution and saline intrusion has been attributed to over-exploitation of groundwater because of the above constraints.
2.2.2.5 Impacts of global change
Please see the El Ni vulnerability map (figure 2.5) to gauge how global changes affect the Philippines.
2.2.2.6 Proposed interventions for sustainable rates of extraction
(a) Establish a Groundwater Resources Development Plan (GRDP)
(b) Prioritize projects according to needs: (i) Metro Manila and outskirts, (ii) Central Luzon plain area, and (iii) provincial cities water supply (water districts)
(c) More detailed groundwater balance study to be undertaken in the groundwater shortage areas (JICA 1997).
In general, it is reiterated that:
(a) The creation of a "super" regulatory body be established; (b) The National Water Regulatory Board be strengthened as an interim measure; (c) An independent regulatory body be established especially in the arbitration of water rights; (d) Incentives for private sector participation to develop water resources with adequate safety nets to safeguard the public and the water resources be provided. UNEP SCS/National report Philippines Page 20
Figure 2.5 El Nino vulnerability map for the Philippines UNEP SCS/National report Philippines Page 21
2.3 EXPLOITATION OF LIVING AQUATIC RESOURCES
2.3.1 Living freshwater resources
2.3.1.1 Status: productivity, catch levels, fishing pressure
Municipal inland production contributes only around 7 per cent (186,760 tons in 1996) of the total fisheries production in the country (JICA 1997). Most of the evaluation of the exploitation of freshwater resources was based on the medium term fisheries management and development programme for the period 1993 - 1998. It mainly concentrates on aquaculture productivity targets to be set at around 156,910 hectares for fishpond areas. The projected fishpond area of 340,300 hectares was estimated based on socio-economic projection targets.
The estimated water demand for aquaculture has doubled in recent years. This is nearly half the quantity for what would be needed for irrigation and a little over five times what is needed for poultry and livestock for same period (2025).
The introduction of six species of tilapia and nine hybrid tilapia needs to be monitored and evaluated. Through the Genetically Improved Female Tilapia (GIFT) - the production of YY tilapias may improve fish yields in inland fishponds and cages and provide a cheap source of protein.
2.3.1.2 Endangered/transboundary/migratory species
`Of the 21 fish species reported by Conlu (1986) at least three endemic species have been noted: Harengula tawilis in Taal Lake, Mistichthys luzonensis, a goby which has been considered the smallest fish in the world and is found only in Lake Bato, Lake Buhi and Manapao, and Camarines and Pandaca pygmaea found only in the Navotas and Malabon Rivers (McManus 1997).
2.3.1.3 Major problems/issues
(a) Introduced species may outcompete endemic and native species; (b) Groundwater extraction and other competing uses may affect the viability of fishpond production; (c) Pollution of aquifers and saline water intrusion needs to be addressed especially in coastal areas.
2.3.1.4 Economic losses because of over-exploitation
Undetermined but anecdotal accounts of fishkills and localized loss of native species have been reported for some areas.
2.3.1.5 Causes including sectoral demands and failures and internal and external market demands
The causes of the increase in freshwater loadings including sectoral demands (internal and external market demands) and failures are the following:
(a) Increased demand in aquaculture for higher value fish products; UNEP SCS/National report Philippines Page 22
(b) Increased population and human settlements that have resulted in greater demand for water-use and associated resources; (c) Aquaculture exports.
2.3.1.6 Impacts of global change
Although no unequivocal evidence has been shown in terms of the effects of global change in the productivity of marine fisheries resources, some anecdotal accounts of lowered production levels may be surmised from the 1997 El Ni year. In Bolinao, Pangasinan where the University of the Philippines Marine Sciences Institute (UPMSI) has been doing some fisheries catch monitoring in the area, a considerable decrease has been observed (at least three to four times lower in 1997 than in the early 1990s) in reef fisheries and milkfish fry caught in the estuarine area. This decrease may not be fully attributed to effects of overfishing alone since the possible increase in fishing effort may not be able to account for this drastically reduced catch. The low estimates may also be the cause for the low estimates (i.e., based on an underwater fish visual census) seen in the Spratly Islands as compared with those of past cursory records in the area. Yap and Gomez (1989) have suggested that the higher mortality and bleaching of some corals being monitored in 1982-83 may be attributed to the elevated sea water temperatures in the Bolinao reef flats. Perhaps, with longer time series monitoring and retrospective analyses of standard fish catch per unit effort and non-fishery dependent aquatic resources estimates, the effects of human induced reduction of aquatic resources vis-à-vis global impacts will be clearer.
2.3.1.7 Proposed interventions
(a) Expand water classification from criteria based only on beneficial human use to include ecosystem functional use;
(b) Implement integrated strategic action plan for freshwater ecosystem management and fisheries management;
(c) Prioritize proposed researches into indigenous species and find mechanisms for their enhancement and conservation.
2.3.2 Living marine resources
Living marine resources include all living plants and animals found in the marine waters, which extend from the coastal to the offshore areas of the archipelago. The major ecosystems bordering the coastline represented by the highly productive mangrove swamps/forest, seagrass beds and coral reefs are examples of thriving communities which serve as breeding areas and habitat of fishes and other vertebrates, invertebrates and marine plants. These ecosystems also support endangered and threatened marine life such as marine turtles, dugongs/sea cows and dolphins. The offshore waters support an array of both small and big pelagic species, i.e., tuna and tuna-like species, seerfishes and marine mammals such as whales and dolphins.
With the adoption of the United Nations Convention on the Law of the Sea (UNCLOS) and the extension of the maritime zone of coastal states to the additional 200-mile exclusive economic zone, the Philippine territorial waters now approximately measure 2,200,000 square kilometres with a coastal regime of 226,000 square kilometres and an oceanic regime of 1,934,000 square kilometres. The shelf area which extends to a depth of 200 metres and represents 184,620 square kilometres is where the highly productive ecosystems are found and where the bulk of fishing activities are conducted. UNEP SCS/National report Philippines Page 23
Noteworthy features of the coastal areas are the fringing reefs covering some 27,000- 44,000 square kilometres (depending on the depth contour used, which is between 10-40 fathoms) which border the country's 18,417 kilometre coastline. Coral reefs are concentrated in the following areas: Palawan group of islands (37.86 per cent), Sulu archipelago (27.31 per cent), Visayas group (21.7 per cent), Northern Luzon (7.63 per cent), central and southern Mindanao (3.21 per cent), and the Turtle Islands Group (1.74 per cent). Philippine reefs serve as a habitat to 488 species of corals under 78 genera, 971 species of benthic algae and some 2,000 species of fish. Regrettably, almost 70 per cent of the country's coral reefs are in the fair to poor condition and only about 5 per cent are in excellent condition (see also the section on habitat modification for causes of damage).
In conjunction with coral reefs are the mangrove forests which serve as nursery grounds for fishes and invertebrates. Of the estimated 500,000 hectares of mangrove cover in 1918, only about 139,725 hectares now remain. Apparently, around a third of the seagrass beds, which add to the stability of much of our shoreline and which also serve as critical habitat for many invertebrates and fish as well as endangered/threatened marine life, are estimated to have been damaged.
2.3.2.1 Status of productivity/ catch levels/fishing pressure
2.3.2.1.1 Productivity
Productive coastal ecosystems are significant sources of food, marine products and livelihood in the Philippines. The ASEAN-Australia Coastal Living Resources Project (CLRP) in the Philippines showed a considerable number of fish species in mangroves, seagrass beds and coral reefs. There are indications that certain species are common among these ecosystems. Those in mangroves and seagrass beds are mostly juveniles supporting further the nursery functions of these habitats. Some pelagic species (for example, barracudas) and demersal (for example, mangrove jack, snapper) spend their juvenile stages in mangroves and go to deeper waters as adults. These observations indicate the interconnection of these coastal ecosystems. The exportation of particulate matter by mangroves and seagrass beds contributes substantially to the energy requirements of the nearshore benthos. Efforts on the conservation and management of these ecosystems are principal concerns since our nearshore fisheries are highly dependent on them.
Coral reefs
In general, coral reefs, which are essentially distributed in warm tropical waters, have a primary productivity in the order of 1500-3500 gCm-2. Valuable reef resources are fishes, invertebrates and seaweeds. In the Philippines, fisheries (reef fish and invertebrates) yield is 1-2 tons/ km-2/yr-1 for damaged reefs to 37 tons km-2 yr-1 for pristine or healthy reefs (Alcala and Gomez 1985). However, these estimates had reached about 50 -70 tons km-2 yr-1 for pristine reef areas, such as the Spratly Islands (Ali and others 1997). Groupers, snappers, carangids and caesionids are among the commercially sought fish harvested from reef areas along with the various species for the tropical aquarium fish industry. Of the macroinvertebrates, lobsters, crabs, prawns and cephalopods are highly priced catches. Other than these, some 160 species of macro invertebrates are commercially exploited on the reef flat in Bolinao (McManus and others 1992). As for Philippine seaweeds, 350 recorded species have economic significance. Technology for commercial exploitation is available for some species (Llana 1990). UNEP SCS/National report Philippines Page 24
Mangroves
Mean production measured from Philippine mangrove sites ranges from 10.72 to 23.98 kgC10-4m-2d-1. Production rates are directly proportional to interstitial salinity, temperature and canopy cover and inversely proportional to soil erosion and light penetration through the canopy (Fortes 1991). Mangroves are significant as nursery and feeding grounds of a variety of marine organisms. Primary production in mangroves supports not only the organisms they harbour but also those in the adjacent areas through nutrient enrichment. Organic matter contained in ebb-tide waters of undisturbed mangrove areas is found to be 2,947.6 gm. (PNMC 1986). About 54 species of crustaceans, 63 species of mollusks and 110 species of fish have been reported in Philippine mangroves (PNMC 1987 in PCAMRRD 1991; de la Paz and Aragones 1985 in Dolar and others 1991), a number of which are commercially important (Camacho and Bagarinao 1986).
Mangroves are important sources of fishery products (for example, fish, shrimps, mollusks, crabs, fry) and forest products such as timber/wood and non-timber. They are also sites of aquaculture, salt production and human settlement.
Seagrasses
Seagrass beds are likewise highly productive ecosystems. Tropical seagrass beds have an average gross primary productivity of 4.650 gCm-2yr-1 on an average of 12.9 gCm- 2day-1 (Philipps and Me z 1988). A study in the Philippines recorded a production value of 0.9 gCm-2day-1 (Fortes 1995). Fish yield from seagrass beds indicates more than 10 mtkm- 2yr-1 of fish alone with a production potential of 20 mtkm-2yr-1 in biomass of fish, invertebrates and seaweeds (McManus and others 1992). Siganids are the most abundant fish and occur in seagrass beds as adults and juveniles; others are mostly represented by juveniles. Seagrasses support the siganid fry industry. The estimated annual catch of siganid fry from one sampling area in north-western Philippines is 2.6 million pcs. in 1986 and 12.2 million pcs. in 1987 (Ungson 1990). In Bolinao, northern Philippines, a dominant species of siganid, Siganus fuscescens, registered an estimate mean biomass of 2 t km-2 and a frequency catch of 4 t km-2 yr-1 in seagraa beds (del Norte and Pauly 1990).
Of the invertebrates, shrimps, prawns and crabs are of commercial significance. Other economically important products with mariculture potential are sea urchins and sea cucumbers.
In contrast to the high productivity of our coastal ecosystems, productivity of the Philippine offshore waters is low. Data taken from the larger oceanographical expeditions such as the Dama Albatrosss and the Galathea described the surface layers of South-East Asian waters as extremely poor in nutrients (Wyrtki 1961). Megia (1952) described the surface waters in and around the Philippines as nutrient poor. A small organic production of less than 0.5 gCm-2day-1 was reported from the China Sea, Philippine waters and the Celebes Sea (Nielsen and Jensen 1952; Doty 1958) without considering the vertical distribution of productivity and depth of the phytoplankton layer. In contrast, production is high over the Sunda Shelf (i.e., the Gulf of Thailand, Malacca Strait, Java Sea and the waters between Sumatra and Borneo) where a value of 1.0 gCm-2day-1 is often exceeded. There is also high production of 1.2-1.8 gCm-2day-1 in the Banda Sea, which is ascribed to upwelling in the area during the period of May to September. This situation supported the suggestion that the interplay between wind and current systems acts to promote mixing through gyres and upwelling which may enhance the productivity of the region (Munro 1986). An overview of the Philippine offshore environment is provided by Villanoy and Jacinto (1993). UNEP SCS/National report Philippines Page 25
2.3.2.1.2 Production/catch levels
Philippine fisheries are known for their high diversity of the faunal assemblages on which the sector relies. Seventy-one species/groups of fishes (out of the 2,400 recorded species in Philippine waters) and 29 kinds of molluscs, crustaceans, reptiles and aquatic plants are listed in the BFAR catch statistics. Because of the multispecies nature of the fisheries, fishing gears and techniques used vary from 12 to 21 kinds of commercial and municipal fishing gear, respectively. To date, municipal fishing gear are classified as those using boats up to 3 gross tons. Commercial fishing utilizes boats greater than 3 gross tons.
A review of the marine capture fisheries comprising production contribution from both municipal and commercial fisheries by Silvestre (1989) showed trends of production from the 1946 to 1984 level. In 1984, total landings by the marine sector totalled 1,303,000 mt. of fish and invertebrates valued at P16.8 billion. This represents a 15-fold increase from the 1946 level of about 80,000 mt. The trend of landings showed three marked periods: (a) slow increment from 1946-62; (b) a rapid phase of increase from 1962-75; and (c) a levelling of catches from 1975 to 1984 with some signs of increase in the early 1980s because of increased municipal catches. The municipal sector contributed the bulk of landings except in the period 1962-65 when the commercial sector contributed the most (figure 2.3.2.1.2.1).
A current review of production level is incorporated in the 1996 Phase 1 Report of the Fisheries Sector Development Project of the Government of the Philippines financed by the Asian Development Bank (ADB) and cited below:
In 1993, the total fisheries production of the country was estimated at 2.65 million tons valued at over P71 billion. In 1994, the total volume of production went up by only 1.5 per cent but its value increased by 14.3 per cent to over P81 billion. From 1985-1994, total production increased steadily from 2.0 million to 2.69 million tons, representing a 31 per cent increase for the period. Although the output of municipal fisheries declined, commercial fisheries and aquaculture registered significant production gains. The growth rate of the value of the sector output outpaced the growth rate of the volume of fisheries production, with municipal and commercial capture fisheries showing an increase in nominal value of 103 per cent against a combined production volume increase of only 22 per cent for the period under review. Aquaculture production increased by 61 per cent during the same period, although its nominal value increased by 306 per cent.
The total production from commercial fisheries in 1993 accounted for 0.845 million tons, representing an incremental growth of 0.332 million tons or 65 per cent since 1984. From 1984-1988, marine production was almost static, with only a 0.067 million ton changes. The increase in production occurred between 1988-1993, with production going up from 1.670 million ton in 1988 to 1.875 million ton in 1993. While municipal production remained at around one million tons, the commercial catch jumped by 347,000 tons during this period. The share of municipal fisheries had an imperceptible movement between 1984 - 1993, with production ending at a lower level in 1993 than 1984. The landings of fish from the municipal subsector slowly increased from 1985 to 1990, but by 1993 decreased to the 1985 level. In 1985, the catch was 1.045 million tons; this increased to 1.131 million tons in 1991 and to 1.03 million tons in 1993. Although the tonnage remained fairly static, there was an increase of about 75 per cent in the nominal value of the catches between 1985-1994. UNEP SCS/National report Philippines Page 26
Figure 2.6 Philippine fish production
FISHERIES PRODUCTION (1986-1995) 1400000 MUNICIPAL COMMERCIAL 1200000 AQUACULTURE
1000000
800000
600000
production (metric ton) 400000
200000
0 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 year
Source: Bureau of Fisheries and Aquatic Resources Fisheries Statistics Profile, 1995. UNEP SCS/National report Philippines Page 27
From the 1977-1993, commercial fisheries gradually absorbed the share of municipal fisheries which used to be twice that of the commercial subsector. The increase in commercial landings could be due to the increase in the number of fishing days available to relatively the same number of catcher vessels as a result of the introduction of fish carriers and other support vessels, the operation of a few fleets in the waters of neighbouring countries, and the opening of relatively new fishing grounds such as Western Palawan, the Sulu Sea, and the Moro Gulf in the mid-1980s.
Aquaculture resources in the Philippines consist of freshwater and brackishwater earthen ponds, lakes, rivers and water impoundments. Of the total aquaculture area of 487,831 hectares only about 53 per cent, or 260,000 hectares, were actually farmed in 1990. In terms of farmed area, the most extensive, as of 1990, were the brackishwater fishponds covering an area of 223,000 hectares (ADB 1993). Some 14,531 hectares of freshwater farms were under cultivation that same year and only 21,040 hectares were effectively utilized out of the extensive lake, river and coastal mariculture areas.
BAS statistics showed that overall production from aquaculture has consistently increased over the past ten years, from 494,742 tons in 1985 to 791,444 tons in 1994. Its contribution to the total national fish production rose from less than 10 per cent in 1975 to almost 30 per cent in 1994, and although it represents only 29 per cent of the total fisheries production, which makes it the smallest contributor to total fish production, it has the highest share in terms of the total value of production, with 43 per cent in 1994.
In fact, the total value of aquaculture output increased by 305 per cent from P8.7 billion in 1985 to P35.3 billion in 1994. With the exception of seaweeds, the largest output came from brackishwater aquaculture, with milkfish accounting for 62.8 per cent of all foodfish production and prawns about 15.57 per cent. On the other hand, the value of aquaculture products rose by 157 per cent from 1985-1990; in particular, the output from brackishwater milkfish farming was valued at P6.6 billion in 1990.
In 1993, the Philippine seaweed industry generated US$73 million in revenue. Ranking as the country's third fishery-based industry, its 18.8 per cent growth in the export industry is expected to increase in the coming years (Trono 1995).
2.3.2.1.2 Fishing pressure
Marine capture fisheries consistently remained the most important sector of the country's fisheries. It is described as predominantly municipal (artisanal/small-scale) but with a considerable extent of commercial (large-scale) fishing activities. Based on available statistical data, the country's fisheries suffer from biological overfishing owing to excessive fishing effort, including the capture of young/juvenile fish.
Estimates of maximum sustainable yield (MSY) range from 1.2-2 mt.: 500,000 to 1,000,000 mt. for coastal pelagics; 200,000-300,000 mt. for oceanic pelagics; and 500,000- 700,000 mt. for demersal species. A conservative estimate of the 1996 Fisheries Sector Development Project report indicates that the 1993 marine production of 1.7 million mt. nearly reaches the higher estimates of the country's maximum sustainable yield (Christensen and Pauly 1994). Based on various studies and observations, fisheries scientists obtain a general perception that current harvests of small pelagics and demersal species, as well as invertebrates in most nearshore areas, have already exceeded their sustainable levels. The following are examples to support this perception: UNEP SCS/National report Philippines Page 28
1. The Bolinao sea urchin industry collapsed in early 1990s because of over-exploitation. During the 1980s, sea urchin, Tripneustes gratilla, was commercially collected in Bolinao for its roe. The monthly harvest was registered at 1.7 tons in 1989 and declined to only 0/0003 tons in 1992. Natural densities of the species declined from 0.11-2.14 individuals /m2 in 1987 to 0.0-7 ind/m2 in 1992 in a major collection site. Before the collapse, the sea urchin industry contributed a monthly income of P2, 700 (US $25.30) per fisher family (Juinio-Menez and others 1995).
2. Preliminary analysis of the results of the tuna tagging experiment, a component of the Philippine Tuna Research Project (PTRP) from 1992 to 1993, elicited concerns about the fishing pressure exerted on the tuna resource. Natural mortality rates estimated for the species of skipjack, yellowfin and bigeyes are very high compared with values estimated for tropical Pacific waters. Estimated fishing mortality rates are also high for the Celebes Sea, Sulu Sea and the Philippine Sea compared with estimates for adjacent areas in the western Pacific (Hampton 1993). In the Celebes Sea, fishing mortality rates are estimated at 0.40 for skipjack, 0.44 for yellowfin, and 0.53 for bigeye tuna, all of which indicate heavy exploitation. The Sulu Sea is less heavily exploited (0.30 for skipjack, 0.17 for yellowfin, and 0.17 for bigeye tuna) while the Philippine Sea values are 0.56 for skipjack, 0.44 for yellowfin and 0.14 for bigeye tuna. From these estimates, it can be gleaned that the exploitation rates for the Celebes Sea and the Philippine Sea (with the exception of the bigeye in the latter area) represent a considerable risk of recruitment overfishing. An exploitation rate of 0.4 should be considered a long-term maximum, while an exploitation rate of 0.5 poses a substantial risk of recruitment overfishing. The analyses of tagging data indicate that these exploitation rates are among the highest in the world for tropical tunas.
Although the exploited nearshore areas and traditional fishing grounds are overfished, considerable potential for expansion still exists. Offshore hard/coral grounds west of Palawan in the Spratly Islands and the Pacific coast have the potential for demersal fisheries. Offshore areas in the Pacific Ocean and the South China Sea are potential expansion areas for the oceanic pelagic fisheries (Ali and others 1997). Although these are potential expansion sites for capture fisheries, prerequisites for expansion activities are availability of reliable resource assessment data and development of appropriate capture technology for the sustainable development of these areas.
2.3.2.2 Endangered species/transboundary/migratory species
2.3.2.2.1 Endangered species
Giant clams
Giant clams, which are valued for their meat and adductor muscles, are heavily fished in the Philippines and the entire South-East Asian region. Three species, Tridacna gigas, T. derasa and Hippopus porcellanus, occurring in Philippine waters are all endangered. UNEP SCS/National report Philippines Page 29
Marine turtles
Marine turtles are exposed to high predation during their life cycle. Man and other animals take their eggs from nesting grounds. The young are subjected to predation and to harsh natural conditions. In the sea, marine turtles are hunted and are caught by commercial fishing gear such as entangling nets, drift-nets, harpoons, big longlines for tuna fishing, grapnels and hooks. Some are taken as by-catch in shrimp trawls, set nets, gill nets and beach seines.
In the Philippines, the Ministry of Natural Resources (MNR) Administrative Order 12, 1979 provided for the conservation of marine turtles. Collection, gathering, utilization, possession, transport and disposal of marine turtles and turtle eggs have been banned. An inter-agency task force on Pawikan was then formed. Currently, the conservation of marine turtles is the function of the DENR-PAWB. A major breakthrough was the establishment of a Turtle Island Heritage Protected Area in Region 9 through a Memorandum of Agreement inked between Malaysia and the Philippines on 31 May 1996. The five species of marine turtles recorded in the Philippines are:
1. Caretta caretta (loggerhead). Usually confused with the olive ridley turtle in South-East Asia but its occurrence in the Philippines is confirmed by Japan-tagged individuals retrieved from the waters of Basilan and Albay.
2. Chelonia mydas (green sea turtle). Recorded in the islands of Mindoro, Antique, Samar, Romblon and Palawan. Nesting sites are in the Sulu Sea, primarily on San Miguel Islands and the Turtle Islands with some nesting reported at Tubbataha. Nesting occurs from July to August. Seagrass beds are utilized as feeding areas. Man and other animals take their eggs either from nesting grounds or from butchered turtles. They are caught by commercial fishing gear such as entangling nets. The species is widely distributed in neighbouring countries such as Indonesia, Malaysia and Thailand. A number of recovered individuals from the Turtle Islands bear Malaysian tags and some of those recovered from the Sabah Turtle Islands have Philippine tags. Although not recently observed, green sea turtles were also noted in Cambodia way back in 1941. Green sea turtles are favoured for their meat and oil. Although commercial trading is banned, capture for food and local consumption is allowed in some parts of South-East Asia.
3. Eretmochelys imbricata (hawksbill sea turtle). The species has been observed in Mindoro Occidental, Sorsogon, Negros and Antique; in certain parts of Davao, Basilan, Cotabato, Lanao del Norte, Zamboanga der Sur and Surigao, and in Cuyo Islands, Turtle Islands and the Sulu Archipelago. They are widespread in South-East Asia, in Indonesia, Malaysia and Thailand, with early (1941) records in Viet Nam and Cambodia. It is believed that migration along the islands of the Philippines, Indonesia, Java, peninsular Malaysia and Sarawak is performed by solitary or small groups of turtles. Low level nesting is recorded in the Philippines, in southern Negros and Sumilon Island, Cuyo Islands, Turtle Islands and possibly in some parts of Palawan and the Sulu Archipelago during the period May-August. These turtles are captured for their eggs, meat and shell which is used for jewellery. Juveniles are caught for stuffing and are sold as souvenir items. Large exporters of these materials in South-East Asia, such as the Philippines, Indonesia and Singapore, were already parties of the Converntion on International Trade in Endangered Species of Wild Founa and Flora (CITES) even before 1990. Thus the trade has been significantly lowered in the region. UNEP SCS/National report Philippines Page 30
4. Lepidochelys olivacea (olive ridley turtle). This is generally rare in South-East Asia but has been sighted in the Philippines. It is known to migrate along continental shelves to feed in shallow waters.
5. Dermochelys coriacea (leatherback turtles). Recorded in the Cuyo Group of Islands, Diit and Maniguin Islands. A leatherback retrieved from Cebu bore an Irian Jaya tag. Other than natural predation and capture, leatherback mortality is also caused by swallowed plastic wastes which they mistake for jellyfish, a main part of their diet.
Marine mammals
Marine mammals are protected in the Philippines by Fisheries Administrative Order (FAO) 185, 1992 which prohibits the taking, catching, sale, purchase, possession, transport and export of whales and porpoises. An amendment, FAO 185-1, 1997 was issued to cover dolphins as well. Jurisdiction of these types of marine mammals falls under the DA-BFAR. Early on, DENR Administrative Order 55, 1991 was issued to protect and conserve the sea cow, dugong, under the jurisdiction of the DENR-PAWB. Twenty-two species of marine mammals have been confirmed in Philippine waters.
2.3.2.2.2 Transboundary straddling stocks/species
These are marine life distributed in areas crossed by a common boundary between the exclusive fishing zones of two adjacent countries (Naamin 1992). A good example in the region is the Spratlys where the living resources are shared by coastal states because of overlapping boundaries. The Spratlys is an ideal "resource savings bank" as it is not over- exploited and it replenishes heavily exploited areas around it by supplying these areas with larvae of commercially important fish and invertebrates (McManus and others 1992).
2.3.2.2.3 Migratory straddling stocks/species
This includes species that migrate beyond the border of one economic exclusion zone (EEZ) and are grouped into two: (a) stocks that are restricted to sea areas which are closely within the limit of two or more adjacent EEZs; and (b) stocks which occur in one or more EEZs and also extend to the open sea/high seas beyond (i.e., large tunas, skipjacks, billfishes and seerfishes).
The country's migratory species of fish are mostly determined from catches of fishing gear for tuna. These are: (a) tunas and tuna-like - Thunnus albacares, T. obesus, T. tonggol, T. alalunga and Katsuwonus pelamis; (b) seerfishes - Scomberomorus commerson, Gymnosarda unicolor and Grammatorcynus bicarinatus; (c) billfishes - Makaira mazara and M. indica; and (d) dolphinfish - Coryphaena hippurus.
The Philippine Tuna Research Project (1991-1993) conducted by PRIMEX and the South Pacific Commission established the movement of tuna within Philippine waters and between the Philippines and adjacent areas. Local movement is significant from the Celebes Sea to the Sulu Sea. Movement to adjacent areas suggests the mixing of stocks between the Philippines and eastern Indonesia and the large purse seine fishing grounds to the east. The PTRP Phase I Final Report, December 1993 includes illustrations of movement of tuna within the Philippine waters and movement to and from adjacent areas. UNEP SCS/National report Philippines Page 31
2.3.2.3 Major problems/issues
Major problem: OVER-EXPLOITATION OF MARINE LIVING RESOURCES
Issues:
(a) Reduced fishing stock/low biomass (b) Reduced coastal productivity (c) Reduced biodiversity (d) Loss of protection of the terrestrial zone (e) Loss of commercial value (f) Low catch rates and income levels (g) Increased poverty (h) Increased conflict among resource users (i) Increased competition between municipal and commercial fishermen (j) Degradation of habitat
Transboundary consequences:
(a) Lower productivity and carrying capacity affects shared and straddling stocks; (b) Excessive by-catch (i.e., marine mammals such as the dugong and other endangered species such as marine turtles); (c) Recruitment; (d) Spawn-stocking biomass collapse.
2.3.2.4 Economic losses because of over-exploitation
The Philippines is an important fish producer in the world, ranking twelfth among the top 80 fish-producing countries in 1993. It is the second biggest tuna and tuna-like producer in the Indian Ocean and in the Association of Southeast Asian Nations(ASEAN) region. Its total fish production in 1993 reached about 2.65 million mt. valued at approximately P71 billion or US$2.73 billion (BFAR 1995). Fishery is an important sector, its contribution to the gross national product (GNP) in 1994 was 3.9 and 4.3 per cent respectively in current and constant prices. Its net foreign exchange earnings amounted to P12.52 billion, with the value of export (P15.65 billion) exceeding the value of imports (P2.92billion) by almost five times. However, during the first quarter of 1996, an apparent increase was observed in the importation of frozen fish for domestic consumption, being retailed in the wet markets at prices significantly lower than domestically caught fresh fish.
The fisheries sector also provides direct and indirect employment to over one million people representing about 5 per cent of the natural labour force. This can be broken down to 65 per cent in municipal fishing, 25 per cent in aquaculture, 5 per cent in commercial fisheries, and 5 per cent in ancillary activities (i.e., post-harvest handling, processing, transport, marketing, boat-building and repair, and manufacturing or distribution of fish-related activities.
If we are to seriously consider the above attributes of the fisheries sector, a tremendous debacle on the country's economy will ensue if the major problem of over- exploitation is not dealt with. UNEP SCS/National report Philippines Page 32
Preliminary estimates of consequent rent dissipation because of over-exploitation amount to as high as US$400 million annually for the demersal and pelagic fisheries alone (Silvestre 1989).
Another factor that contributes to economic losses in the fisheries sector is illegal fishing (for example, poaching in offshore areas, smuggling, use of prohibited gear). In comparison to the landed value of Philippine fisheries of about US$2 billion a year, harvests by illegal fishing activities have been valued at more than US$1.5 billion or P40 billion a year.
2.3.2.5 Causes including sectoral demands and failures and internal and external market demands
Population growth
Population growth causes an increased demand for fish for domestic human consumption, Filipinos being among the highest fish consumers in the world. Of the total fishery production of 2.93 million tons in 1994, 1.95 million tons (67 per cent) are allocated for domestic consumption. Between 1994 and 2010, the population is expected to increase by about 23.5 million people. This will require an additional fishery production of 719,000 tons in order to maintain the present level of per capita fish supply of 28.5 kg/yr. Based on trends in supply and demand parameters, two scenarios are possible by the year 2010 (Bernacsek 1996):
1. A sustainable scenario would be a rise in domestic food fish production to 3.2 million tons by 2010 and an import quantity of 97,000 million tons to maintain the per capita food fish supply of 24.7 kg/yr. This is assuming that all positive interventions in the fisheries sector are successful;
2. A pessimistic or unsustainable scenario assumes that no positive interventions are instituted in the fisheries sector. This will mean a food fish production of as low as 940,000 million tons by 2010 and a per capita foodfish supply of 10.5 kg/yr. In order to meet the deficit of 18.7 kg/person/yr import quantity should be 1.8 million tons of foodfish.
Alarmingly, the country's maximum sustainable yield of 1.2-2 million tons for capture fisheries has been nearly reached based on the 1993 marine production of 1.7 million tons. Moreover, nearshore catches have already exceeded sustainable levels.
Employment needs
In view of the free and open access to fisheries, marginalized labourers and migrants that have no access to land-based resources turn to the sea for a livelihood. This uncontrolled increase in the number of fishers results in the over-utilization of marine resources. Despite declining yields, the number of fishermen continues to increase as the sea is regarded as the "employer of last resort" in many coastal areas. UNEP SCS/National report Philippines Page 33
Growth and recruitment overfishing in municipal waters
This is due to the increase in the number of fishers, the use of efficient gear and the lack of and non-implementation of control measures.
Overcapitalization of the fishing industry
There is an increased world demand for seafood products, either for direct human consumption or indirectly for feeds for livestock and poultry.
International demand
There is an increased world demand for seafood products, either for direct human consumption or for feeds for livestock and poultry. The principal species exported by the Philippines are shrimps and prawns, tuna and seaweeds. The Fisheries Sector Development Project 1996 report reveals that the unit terms of international trade of the Philippine fisheries sector are very favourable as foodfish exports have exceeded imports by a factor of 1.75 in volume and 23 in value. This is because the Philippine exports high-value products (prawns and fresh-chilled tuna) while it imports lower-value frozen fish (canning-grade sardines and mackerel). It should be noted, though, that the country is still highly depended on the Japanese market for prawn exports. While the country imports significant quantities of fishmeal, which are the principal ingredients in livestock feed production, it remains the world's largest producer and exporter of dried seaweed used as raw material for the manufacture of carageenan.
In general, it is considered that fisheries resources around the world are being exploited at, or very close to, the maximum sustainable yield levels of production. Commercial catches in the world have remained almost stagnant since 1989 at a level of 100.1 million tons as against the steady increase from 3.3 million tons in 1958 to the 1989 level. For the period 1989 to 1993, Japan, the United States of America and the European Union (EU) all reported increases in their imports, which account for over 75 per cent of the value of fish imports. The value of world imports increased by 24 per cent in this period. It is expected that per capita fish consumption will further increase in developed countries as rising health consciousness appears to be causing a shift in food preference from red meat to fish and other marine products. The increase in world demand for seafood will require an increase in fish production in the face of resource depletion in major fishing grounds.
2.3.2.6 Impacts of global change
(See the previous discussion on El Ni and reduced fisheries production, section 2.3.1.6).
2.3.2.7 Proposed interventions
(a) Evaluation of current resource uses (rates of exploitation, carrying capacity of resources, users' conflicts, socio-economic aspects, political environment, existing legal and institutional framework);
(b) Alleviation of pressure on heavily exploited resources through the introduction of alternative environment-friendly livelihoods that are socially acceptable and feasible; (c) Encouragement of lightly-exploited areas including the EEZ (this calls for resource assessment, development of capability to explore offshore waters, formulation of UNEP SCS/National report Philippines Page 34
appropriate fishery and related policies, establishment of means of policing offshore waters);
(d) Development of capability for resource management at the community, municipal and regional levels through training and public education programmes;
(e) Establishment of marine reserves and provision of means for management by local communities;
(f) Policy revision and formulation to suit present resource conditions and uses;
(g) Improved enforcement of fishery laws and regulations.
2.4 MODIFICATIONS OF AQUATIC HABITATS
2.4.1 Freshwater
2.4.1.1 Freshwater and coastal wetlands
At present there has been no sufficient appreciation of the effects of changes in freshwater and coastal wetlands. In the water resources master plan some suggested criteria for evaluating the effects have been proposed (JICA 1997) but no documentation has been made on a comparative evaluation of overall effects on these habitats. Anecdotal accounts have shown that the reduction of water and impoundments of water bodies have affected the flora and fauna of areas such as the Candaba swamp and those in the Angat Dam. In addition, the location of industries around Laguna Lake and the establishment of fishpens have lowered the water quality and have modified the integrity of the lake habitat.
2.4.2 Marine habitats and resources
The major marine habitats are functionally linked and interconnected from the breeding and nursery grounds of the mangroves and seagrasses to the diverse coral reefs surrounded with soft bottom areas distributed onwards to the oceanic region. Based on the present review, the marine resources and habitats in the country have generally been over- exploited and drastically degraded. There are many factors that interplay and impact on the marine environment. Pauly and Lightfoot (1992) described a hypothetical coastal cross- section illustrating biomass and cash flows between a community of small-scale fishers, processors/intermediaries and the nearby city. Coastal conversion is one of the main concerns affecting the marine environment especially in the context of renewability and rehabilitation. The ecological importance of these coastal ecosystems as buffers which protect the land from the erosional effects of waves and the sea from the destructive activities from the land is well known. The destructive effects of upland activities, such as deforestation and dredging, result in the degradation of the marine habitats through increased sedimentation run-off. The loss of the natural protective buffers will exacerbate man-induced destructive practices especially in combination with natural stresses such as storms and floods. The destruction of the habitats will likewise effect a decline of the marine resources dependent on these habitats. Further, the high poverty rate in coastal communities forces marginalized fishermen into fishery putting additional heavy pressure and burden on the resources (Malthusian overfishing from Pauly and others 1989). The open-access nature of the marine environment has led to heavy exploitation and abuse of the resources.
Another important factor that undoubtedly influenced the rate of utilization of these resources is the Government's economic policies that have inadvertently increased the UNEP SCS/National report Philippines Page 35 pressure and burdens on the marine environment. De los Angeles and Padilla (1992) attributed the accelerated rate of degradation of coastal resources to economic policies such as subsidies, incentives, tax exemptions and lower tariff rates that resulted in increased fishing intensity, encouraged coastal conversion and decreased wild stock resources. This redounds on the economic viability of coastal industries (mariculture, tourism, fishing, and fish processing and other related industrial/agricultural ventures) and the importance of the marine environment. The case study in Bacuit Bay, Palawan by Hodgson and Dixon (1988) is the only example in the country that examined the economic benefits of logging versus tourism and marine fisheries. The study showed a reduction in gross revenue of $40 million over a 10-year period with continued logging compared with the revenue generated if a logging ban had been implemented.
2.4.2.1 Estuaries and embayments
(See Mangrove habitats and FSP bays)
2.4.2.2 Coral reefs
The Philippines holds the distinction of being the first country in the world to conduct a nationwide assessment of coral reefs (Gomez and others 1994). Coral reefs in the Philippines are the most extensively surveyed in the South-East Asian region (Ali and others 1995). Estimates on the areal extent of these coral reefs range from 25,000 square kilometres (Gomez and others 1994) to 33,500 square kilometres (Carpenter 1977) depending on the varying assumptions of the maximum depth limits of where corals can be found.
The most recent countrywide status reviews for coral reefs in the Philippines have been undertaken by Gomez and co-workers in collaboration with the group of Alcala (Alcala and others 1987; Gomez and Alcala 1979; Gomez and Yap 1985a; Gomez and others 1981, 1994a-b; UPMSI 1979, 1980, 1982). The health of the reefs was calculated on the arbitrary percentage quartile classification of live coral cover (i.e., 0.1-24.9 per cent = poor; 25-49.9 per cent = fair; 50-74.9 per cent = good; and 75-100 per cent = excellent. The overall condition of the reefs in the country has been evaluated based on samplings gleaned from over 700 transects sampled in over 14 provinces.
These nationwide surveys made in the 1970s showed 5 per cent of the reefs to be in excellent condition, 25 per cent good, 39 per cent fair and 30 per cent poor (Gomez andAlcala 1979). Further studies in the 1980s (see table 2.7) showed 70 per cent of our reefs in poor to fair condition, with less than 50 per cent living coral. Despite the ongoing debate on how to come up with a better indicator of the condition of reefs (for example, the quadrat method and percentage live cover; belt transect and coral mortality index) it is generally accepted that there is an urgent need to turn the tide against the unabated destruction of coral reefs in the country (Gomez and others 1994a; Alino and others in press). UNEP SCS/National report Philippines Page 36
Table 2.7 Status of Philippine coral reefs based on surveys by three projects
Source No. of Excellent Good Fair Poor transect (75-100%) (50-74%) (25-49%) (0-2.4.9%) s No. % No. % No. % No. % (stations ) Yap and Gomez 632 35 5.5 153 24.2 242 38.3 202 32.0 (1985) ASEAN-Australia 103 4 3.9 32 31.1 46 44.7 21 20.4 MSP LCR ASEAN-US CRMP 40 0 0.0 18 45.0 17 42.5 5 12.5
There are various natural and man-induced impacts, degradations and problems that have resulted in the decline of live coral reefs in the country. Coral reefs are natural buffers against the erosive action of waves and typhoons, yet in some areas these reefs were destroyed by strong typhoons, for example, Mactan, Cebu (Gomez 1988). In some localized areas, natural events, such as the infestations of Acanthaster planci in the Visayas and the gastropod Drupella rugosa in Mactan, destroyed the reefs (Alcala 1976; Ali and others 1981; Gomez 1988).
The most common problems are sewage and fertilizer pollution. Impacts from nearshore development, dredging, mining and industrial pollution follow. Many other factors contributing to the loss of this natural buffer are the collection of corals (for building material), pollution and mine tailings. Tourism-derived impacts compete between recreational benefits versus unregulated shore development, such as dredging and sewage pollution resulting in coastal degradation.
There are three factors that are most common and influential in affecting coral reefs in the country, namely, sedimentation, overfishing and destructive fishing (Ali and Campos 1995).
Siltation is the most important factor influencing conditions in coral reefs, either by natural processes or anthropogenic events. The eruption of Mt. Pinatubo in June 1990 dramatically changed coral cover to 10-20 per cent a week after the eruption from 60-70 per cent cover before the eruption (Atrigenio and others 1992). Anthropogenic effects of siltation are mostly in reefal areas near rivers because of upland deforestations, for example, Bacuit Bay, Palawan (Ali and Campos in press) and industrial sites, for example, Toledo City, Cebu (Ali 1984). The sediments physically smother the corals, further reduce recruitment success owing to poor larval settlement and increase post-larval mortality (Gomez and others 1994a).
Fisheries-related destruction, such as dynamite fishing and cyanide, affects coral reefs. It takes up to five years for only half of the original cover to return. Other factors causing negative impacts may prolong the recovery period (Yap and Gomez 1985).
The prevalence of the impacts of the three most common factors affecting coral reefs was determined by Ali and others (1995) based on the frequency distribution of reefs experiencing each intensity level for each type of impact per location, expressed as a percentage. To get a better picture of the impacts of these factors, the studied sites were grouped and zoned geographically and the percentages averaged. An estimate on the impact UNEP SCS/National report Philippines Page 37 of each factor in a particular geographical zone was determined. From these frequencies, the three topmost sites considered as critical areas for that particular impact were determined (table 2.8).
Table 2.8 Critical coral reef areas in terms of siltation, pollution, fishing and storm impacts
IMPACT TYPE AREAS Siltation Agricultural Palawan (PAL) Southern Mindanao (MDS) Southeast Luzon (LSE)
Industrial Southwest Luzon (LSW) Northern Mindanao (MDN) Visayas (VIS)
Pollution Agricultural Northwest Luzon (LNW) Southeast Luzon (LSE) Southwest Luzon (LSW)
Industrial Southern Mindanao (MDS) Northern Mindanao (MDN) Central Visayas (VSC)
Fishing Overfishing Palawan = Northern Mindanao Central Visayas = NE & SE Luzon
Destructive Southern Mindanao Southwest and Northeast Luzon
Palawan is the critical area for siltation damage brought about by high and medium intensity agricultural activities, followed by southern Mindanao, and south-east Luzon. The priority areas for demonstrating the effects of siltation from industrial activities are in northern Mindanao, followed by central Visayas and lastly in south-west Luzon especially in Zambales province. These areas are where most of the industrial plants in the country are located.
Interestingly, the effect of pollution from agriculture was concentrated in Luzon where agricultural activities dominate. The frequency is high in the north-west, followed by the south- east and lastly, the south-west.
Pollution from industries was found to have had a considerable effect in Mindanao and Visayas where most of the industrial zones are located. The impact is highest in Mindanao, particularly in the south and then in the north, and lastly, in the Visayas.
The effect of overfishing has been observed to be high in Luzon, both south-east and north-east, followed by northern Mindanao, and lastly, by south-west Luzon. Palawan, north- west Luzon and southern Mindanao are overfished areas, albeit of medium intensity only. Destructive fishing is very rampant in south-east Luzon, followed by central Visayas, and lastly, north-east Luzon. UNEP SCS/National report Philippines Page 38
Tropical storms that frequent the country were felt at high intensities in northern Mindanao specifically in the Siargao group of islands. Unlike in Mindanao, most of the reefal areas in north-west Luzon are strongly influenced by medium and high storm intensities. The eastern portion of Luzon followed by the north and the south showed impacts of both intensities.
The importance of coral reefs to the fisheries, the ecological well-being of the coastal habitats, recreation and tourism has been well documented in the country. Coral reefs are natural buffers against the erosive action of the waves and typhoons (Gomez 1988) and this is especially significant in the Philippines where there are on the average 20 typhoons a year (Gomez and others 1994b).
About 4,000 species of fish are associated with coral reefs in the Indo-Pacific, more than a thousand species are found in the Philippines (Na la and others in press). Coral reefs contribute significantly to the country's fisheries, 8-15 per cent of the finfish catches aside from other seaweeds and invertebrates collected in the reefs (Gomez 1988) provide subsistence livelihood to coastal dwellers.
The cottage industry heavily relies on shells and other invertebrates collected from the reefs for the curio trade (Gomez 1988). A significant part in the tourism industry benefits from the numerous diving spots that attract both local and foreign tourists which support numerous resorts and other related establishments (Gomez 1988).
In the Philippines, biogeographic zones have been proposed by the University of the Philippines Marine Science Institute to help the Government with the management of the coral reef resources, for example, representative sites for the National Integrated Protected Areas System (NIPAS) (Ali and Gomez 1990) (Figure 2.4.2.2.1). UNEP SCS/National report Philippines Page 39
Figure 2.4.2.2.1 Philippine biogeographic subdivisions based on coral reef affinities UNEP SCS/National report Philippines Page 40
Recommendations for priority national programmes on coral reef conservation and management have been proposed (Gomez 1988, Gomez and others 1994a and b). The priority government concerns in coral reef management in the Philippines were highlighted in the Subic workshop (see Ali and others in press). Intergovernmental commitments for reef management have been proposed in the International Coral Reef Initiative Workshop held in Dumaguete City (1997). Various regional workshops have also been organized to come up with an action plan for the East Asian Seas region (UNEP/COBSEA (1996) in Bali, Indonesia; UNEP COBSEA in Okinawa Japan). PhilReefs, a network of coral reef practitioners organized to follow up on the information exchange needs pointed out in the Subic Workshop (1995), have also proposed over 30 recommendations that need to be addressed.
2.4.2.3 Mangroves
Among the different habitats in the marine environment, the mangroves are the most easily perceived coastal habitat perhaps because of its more conspicuous nature in being above the water. Estimates of its coverage by different studies started in the early part of the century and continue up to the present (table 2.9).
Table 2.9 Mangrove forests in the Philippines from 1920 to 1994 (x 1000 hectares) including the geographical distribution in Luzon, Visayas, Mindanao and Palawan
YEAR TOTAL LUZON VISAYAS MINDANAO PALAWAN 1920 450 1968 448 47 228 125 47 1969 295 43 77 128 48 1970 288 42 78 124 44 1971 287 42 77 123 44 1972 284 41 77 122 44 1973 270 36 72 119 43 1974 256 30 67 117 42 1975 254 28 67 117 42 1976 252 27 67 116 41 1977 249 26 67 116 41 1978 247 25 66 116 40 1979 245 24 66 115 40 1980 242 23 66 115 39 1981 240 21 66 114 39 1982 211 17 55 107 32 1983 211 17 55 107 32 1984 236 17 65 112 37 1988 228 1994 200
Source: 1920-1984 (BFD Statistics); 1988 (Ronquillo 1988); 1994 (Calumpong 1994) UNEP SCS/National report Philippines Page 41
In the early part of the century, mangrove coverage in the country was estimated around 400,000-500,000 hectares (Brown and Fischer 1918). In 1984, only 230.000 hectares (51 per cent) of the mangrove forest remained (BFD 1984). Table 2.4.2.3.1 shows the rate of exploitation in the mid-1980s in the different regions in the country. The highest was in the Visayas at 72 per cent and Luzon at 64 per cent. Mangroves were intensively utilized in these regions compared with Mindanao (10 per cent) and Palawan (21 per cent) where the old growth stands in the country are still found (PNMC 1986). In the mid-1990s, mangrove forests were estimated to be only 200,000 hectares which indicates a loss of 60 per cent from the 1920 estimate. Although these estimates should be treated with caution since there is a high variability in the various sources of data, the data still indicate a rapid decline of the mangrove forests.
Based on the time estimates (1920-1994), it can be surmised that around 60 per cent of the mangrove habitat has been lost. The exploitation of mangroves for their forest products by the local populace is one of the significant causes for the decline in the area and volume of mangrove forests in the country (PNMC 1986; Evangelista 1992). The mangroves are economically important as sources of timber, firewood, charcoal, tannin, tanbark, nipa sap and shingles. The economic importance of mangroves has been well recognized in the Philippines and well documented, but there is as yet no quantitative estimate from these losses. Perhaps, the major cause of the reduction of mangrove forest in the country is its conversion into fishponds. As seen in figure 2.8, the increase in fishpond development over time corresponds to the decline in the coverage of the mangrove forest.
Mangrove fishpond conversion increased more than 100 per cent from 1952-1975 from 88,000 hectares to176,000 hectares. The conversion was mainly for the cultures of bangus (Chanos chanos) and sugpo (Penaeus monodon) (Datingaling 1977; NMC 1986). In 1982, brackishwater fishponds increased further to more than195,000 hectares (Gomez and others 1990). In 1988, mangrove areas converted to fishponds totalled 224,000 almost equal to the remaining mangrove swamplands of 228,000 hectares (Ronquillo 1988; Primavera 1993) (see figure 2.8).
Based on the 1920 estimate of 500,000 hectares, around 45 per cent (224,000 hectares) of these have been converted to fishponds and the rest for other purposes. Most of the fishponds in the country are located in sites where mangroves abound. Conversion to industrial and human settlements, at present, is mostly localized and minor compared with the extent of fishpond areas in the country (PNMC 1986).
The loss of mangrove swamps into fishponds corresponds to a loss of coastal productivity affecting coastal fisheries (Primavera 1993; Camacho and Bagarinao 1986; Silvestre 1989). Fishponds bring about pollution through the use of organic/inorganic fertilizers, chemical toxins, antibiotics etc. that reduce the quality of the mangrove swamps (NMC 1986; Primavera 1991). This correspondingly affects the coastal dwellers dependent on the mangrove swamps compared with the minority working in the aquaculture farms (Primavera 1991). The loss of mangrove habitats is the loss of its commercial value as an important fertile breeding, nursery and feeding grounds of economically important fish (mullet, milkfish, tilapia, eel, kitang) and invertebrates (shrimp, prawns, molluscs and sea cucumber) (see Zamora 1981; de la Paz and Aragones 1985; Alcala 1982; Calumpong 1994 and NMC Country Report 1986 for detailed listings). The fry gathered in the mangrove areas, especially of milkfish (Chanos chanos), shrimps (Penaeus monodon), and prawn (Penaeus merguiensis), contributed greatly to the country's fry gathering industry and have become important species in aquaculture (Gonzales 1977). UNEP SCS/National report Philippines Page 42
Figure 2.8 Mangrove cover and fishpond construction from 1920 to 1994
450
400 Mangrove Fishpond 350 300 250 200 150 Hectares (x 1,000) 100 50 0 1920 1968 1970 1972 1974 1976 1978 1980 1982 1984 1994
Year
The salinization of the water aquifer of the adjacent lands from the drawing of sea water for fishponds is creating stress in some areas of the country, for example in central Visayas (Borjal 1989). Heavy extraction of water lowers the water table resulting in the contamination of the water aquifer with sea water (Singh 1987). The impact of salinization from shrimp ponds is still localized in the Philippines, compared with other countries where rice production has decreased owing to the loss of soil fertility (Primavera 1993).
The mangrove resources in the country are threatened by the loss of the renewability of the resource brought about by coastal conversions especially fishponds (Hamilton and Snedaker 1981). This creates social inequity between the marginalized fishermen and the few fishpond entrepreneurs (Primavera 1993). A large percentage of the coastal populace depend on coastal fisheries for subsistence and income compared with the seasonal and undependable employment in aquaculture farms (Primavera 1991). However, the increasing contribution of aquaculture to the total fishery income in the country indicates the economic viability of this venture (BFAR Statistics; Camacho and Bagariano 1986). Hence, fishpond development has been the recipient of government support, such as loans, incentives, tax privileges, since its inception (Primavera 1993).
Yet, the most important but least appreciated value of mangroves is its role as a coastal buffer. Mangrove forests serve as a buffer to coastal erosion, protecting the terrestrial zone from the erosion effects of waves and preventing accelerated sedimentation and siltation of offshore and nearby ecosystems (Zamora 1981; Hamilton and others 1989; Singh 1987). Perhaps its importance has now been recognized and felt in the loss of property and lives in some coastal areas significantly influenced by the loss of mangrove strips as storm buffers along the coastline: in 1976, approximately 3,000 deaths in Zamboanga; 1,000 in northern Panay in 1984; and 7,000 in Ormoc and Leyte in 1991 (Primavera 1993). The valuation of mangroves, especially the true costs of mangrove loss, is very important especially in cases where mangroves are converted for national and industrial development. Before the Government used the Fishpond Lease Agreement (FLA) set to as low as PhP 50/ha/yr which encouraged conversion. Recent studies by Evangelista (1992) put the pricing as high as PhP 3,296/ha/yr. This was based on the economic or resource rent that UNEP SCS/National report Philippines Page 43 puts value on access to a valuable resource in limited supply. Nevertheless, the true value of the mangrove ecosystem requires comprehensive economic studies since it involves an accounting of the marketable (for example, forest products) and non-marketed value (for example, storm buffer), and on-site (for example, poles) and off-site (for example, nearshore fisheries) values (Dixon 1989; Hamilton and others 1989; ENRAP 1994).
Mangrove scientists, resource conservationists and aquaculturists agree that immediate measures are needed to offset the almost irreversible trend of destruction. Previous policy recommendations for the management of mangroves have been outlined by Zamora (1981) but as yet no comprehensive nationwide monitoring and evaluation has been made on these proposals. Presented below are the summary guidelines for policy considerations (see figures 2.4.2.3.2 and 2.4.2.3.3). Strategic and tactical action programmes need to be formulated and undertaken for each of these priority management options. A schedule for realistic targets to be achieved needs to be pursued consistently. Primavera (1995) has also updated the management issues to be considered in relation to the interaction of mangroves and mariculture activities. Camacho and Bagarinao (1986)presented strategies, which in brief indicates that the government should implement rules to rehabilitate and conserve the existing mangrove areas and prevent further expansions and conversion into other uses.
Figure 2.9 Alternative strategies for existing Philippine mangrove resources
Source: Zamora 1981. UNEP SCS/National report Philippines Page 44
Figure 2.10 Guidelines for the selection of mangrove areas for preservation, conservation and fishpond development
Source: Zamora 1981.
2.4.2.4 Seagrass beds
No comprehensive evaluation on the extent of seagrass habitats in the country has been undertaken. Probably this is due to the extensive depth range of seagrass communities in the intertidal and subtidal (at around 1-30 m) region. Studies conducted in the country, although more extensive compared with other Association of Southeast Asian Nations (ASEAN) members, were mainly in conjunction with environmental impact assessments (EIAs) of industries along the coast, for example, for a power plant, in ecological assessments in degraded fishing grounds and in coastal management issues. The integrity of seagrasses communities as significant ecosystems on their own has only been recently appreciated (Fortes 1994 and 1995).
The only estimate of seagrass coverage in the country was done in connection with the ASEAN-Living Coastal Resources Project on seven sites in the country using remote sensing techniques (see table 2.10) (Fortes 1995). Most of the sites have fair to good seagrass beds except in south-east Luzon where 60-100 per cent of the seagrass beds in Pagbilao, Calauag and Calancan Bays are in poor condition. UNEP SCS/National report Philippines Page 45
Table 2.10 Seagrass assessment in seven sites in the Philippines
SITE AREA STATUS (sq km) GOOD FAIR POOR Cape Bolinao 25 38% 49% 13% Calauag Bay 7.7 33% --- 67% Pagbilao Bay 1.89 ------100% Puerto 1.14 70% --- 30% Ulugan Bay 2.97 17% 51% 32% Banacon 7.81 73% 27% --- Calancan 0.07 29% --- 71%
Source: Fortes 1995.
As with the other coastal resources and ecosystems, seagrass beds are also subject to over-exploitation and conversion to other land uses. In the Philippines, seaweed farms, like Eucheuma, are mostly associated with seagrass beds (Trono 1986).
Fortes (1995) made an inventory on the conversion and uses of seagrass areas in the Philippines (table 2.11). Industrial development, ports and recreation are the major use of seagrass beds. The impacts of waste disposal and boat traffic are widespread but moderate. Aquaculture farms of fish, prawns and crabs from seagrass areas are still localized, ranging from minor to major usage. Localized but major habitat modification effects on seagrass beds are in urban development and mining, followed by conversion to solar salt, and lastly, minor use for sugar cane and airports.
Seagrass beds are also subject to unsustainable practices of collection of the other economically important invertebrates that abound in this habitat. The bed is commonly raked to collect shells for the ornamental trade, trawled to harvest shrimps and prawn, and constructed with fish corrals for the collection of rabbitfishes. Sea cucumbers are easily harvested for food, sea urchins for the gonads, and sea hares for their eggs.
The effect of land clearing and deforestation in the watershed areas and from swidden agriculture or kaingin result in the sedimentation of seagrass beds. In addition coastal eutrophication from industrial, residential and commercial facilities are additional stresses on the seagrass community.
The loss and degradation of the seagrass beds will also affect the adjacent coral reef area and mangroves. Seagrasses are functionally linked to coral reefs and mangroves (Fortes 1988, 1991, 1995). The interconnectivity of coral reefs to mangroves through seagrass beds makes the latter more sensitive to changes in the environment. This makes seagrasses a good indicator of the health of the coastal ecosystem (Fortes 1995). Seagrasses are protective buffers against sedimentation, preventing the further transfer of sediments to nearby coral reef areas. Seagrasses are effective retainers of sediments because of the thick mass of their underground systems (Fortes 1995). The root systems are anchors that bind the sediments, and without these anchors sediments become loose causing erosion and sedimentation of the habitats. They also act as a buffer to the coastal zone from strong waves and surges, especially during tropical cyclones (Fortes 1988). UNEP SCS/National report Philippines Page 46
Table 2.11 Conversion/utilization of seagrass beds in the Philippines
ACTIVITY USE RANKING Industrial development widespread Major use Ports widespread Major use Recreation widespread Major use Waste disposal widespread Moderate use Boat Traffic widespread Moderate use Aquaculture-Fish localized Major use Urban development localized Major use Mining Localized Major use Aquaculture-Prawns Localized Moderate use Solar salt Localized Moderate use Flood run-off Localized Moderate use Aquaculture-crabs Localized Minor use Sugarcane Localized Minor use Airports localized Minor use
Source : Fortes 1995.
The over-exploitation and degradation of seagrass beds will inadvertently threaten the populations of some endangered organisms such as dugongs and marine turtles found in seagrass beds (Fortes 1995). Dugongs and turtles have been hunted for subsistence and their commercial trade in the Indo-Pacific region has endangered them. CITES actually listed these species as endangered (IUCN 1983).
Human society benefits from seagrass beds which could supply around 30 per cent of the fishes caught in nearshore areas (Fortes 1994). Seagrass meadows are also fishing grounds for juveniles and small adults of the economically important rabbitfish, Siganus. Siganids dominate the fish catch in seagrass areas, for example, reaching up to 80 per cent at Cape Bolinao, Pangasinan (Fortes 1995). The composition of organisms collected from a trawl sample in the beds comprised 28.6 per cent fish and 71.4 per cent prawns (Fortes 1995). Seven species of prawns, including commercially important species were found in seagrasses (Fortes and Flores 1994).
Recommendations for the management, conservation and sustainable use of seagrasses in the country have been made by Fortes (1995), as well as for an integrated approach towards seagrass and mangrove ecosystems, focusing on the interconnections of these habitats (Fortes 1988, 1991).
2.4.3 Critical habitats, ecosystems and species of transboundary importance
Critical to the goal of sustainable development of the marine ecosystem is the aim to protect, to sustain and to enhance these resources. Understanding the impacts on the marine environment from natural and human factors is crucial in the planning and management of these resources. Information on the differential contributions of these factors and their interactive effects are important for decision makers to adapt to the changing needs of society. The status review of the various ecosystems presented earlier can provide an objective basis for the strategic prioritization of critical marine habitats.
At present, aside from looking at the condition of various habitats and resources in the marine environment, various programmatic approaches (for example, the EIA system of the UNEP SCS/National report Philippines Page 47
Environmental Management Bureau and the coastal environment programme) are being undertaken by various institutions to help understand and manage these resources.
Strategically, the protection of critical marine habitats and their biodiversity implies that the evaluation of their importance places a high priority on the significance of their integrated and multifunctional roles (for example, as a spawning and nursery ground and feeding area). The following criteria may be considered to identify and resolve the importance and significance of a particular area:
(a) Biodiversity values primarily refer to the degree of importance of the area based on the diversity of habitats, trophic levels, species and genetic pool. This also includes the appreciation of the significance of unique (for example, endemic) and endangered species;
(b) Ecological values refer to the evaluation of the role of the ecosystem as a geological buffer (for example, as in the prevention of coastal erosion) and its role in the interconnectivity of the resources, for example, as source and sink for both biotic and physical attributes (such as upstream and downstream features of pollutants);
(c) Fisheries values refer to the evaluation of the resources based on the potential for sustainable utilization (i.e., fisheries potential);
(d) Tourism values refer to the evaluation of the aesthetic values of the resources (for example, presence of scenic and recreational areas);
(e) Pragmatic considerations refer to social and economic attributes that interact with the biophysical attributes of the ecosystem which either enhance or attenuate the areas sustainable development.
In table 2.12, some management and policy considerations are proposed to highlight the possible options dealing with some priority areas and issues. Although the cases cited are not all encompassing, they provide useful lessons. The sectoral classification is based on the biogeographic areas of Ali and Gomez (1994) and is useful in a strategic sense since it is a natural ecosystem framework. If one looks in the preceding sections for importance values, two (biodiversity and ecological) of the values are primarily related to the natural ecosystem features while the other three are more related to the ecosystems value to the Philippine society and its responses to it. The significance in the international and national level illustrates the high premium placed on the natural ecological heritage and its intergenerational importance. Another emergent insight is that in aspects where sustainable utilization is a prevalent objective (for example, FSP sites and regional growth centres for possible programmatic EIA) the primary role of local government becomes critical. Nevertheless, the emergence and heightened appreciation of community-based coastal resources management, with the establishment of municipal marine reserves and fish sanctuaries, are among the primary tools for management. It is only recently that the appreciation of coastal zoning and the harmonization of multiple uses through an inter-municipality or inter-provincial undertaking (for example, as in the FSP bays) makes coordinated and larger scale management units a challenge. In these situations, the need for coordination can be facilitated by the national government agencies through technical support, networking and leveraging of funds to where it is most appropriate.
How are the assessments of the various areas matched with ongoing and other programmes? The main programmes and relevant institutions which have direct bearing are UNEP SCS/National report Philippines Page 48 the following: National Integrated Protected Areas System (NIPAS) under the PAWB, the environmental impact assessment system under the Environmental Management Bureau, the coastal environment programme, the Department of Agriculture - BFAR fisheries sector programme, and other associated programmes,for example, USAID - CRMP, UNDP- DENR- ICZM, and Monitoring, Control and Surveillance (MCS).
There is a need to evaluate the sustainable development needs of our national industrialization strategy through the integration of the regional growth centres in consideration of the programmatic EIA and the industrial environmental management programme recommendations. The usual EIA procedure is an important starting point that needs to be further integrated. The local government code appropriately provides jurisdiction for the local government units, a 15-km zone of municipal marine territorial waters. The Philippines, a signatory to UNCLOS and pursuing an archipelagic doctrine, subscribes to a 200 nautical mile exclusive economic zone. Further integration can be achieved with enhanced coordination and complementation at the various levels of government. For example, in areas of national and international significance the primary role of the national Government is crucial while more effective implementation can be achieved in the greater role of the local government units in the regional and local setting. In addition, while concerns such as the connectivities of genetic resources and transboundary issues (for example, the tuna as a straddling stock) are necessarily a national concern, on-the-ground efforts by the local communities can have an affect and these need to be coordinated.
The evaluation of these importance values should be viewed in an integrated perspective with the objective of determining how the multiple uses are harmonized to assure its sustainable development. These are also viewed according to their degree of significance in the international (for example, based on international conventions), national (for example, national heritage area) and local (regional and provincial) perspective.
If we look at table 2.12, we will notice that of all the sectors the Sulu Sea sector has two areas which are internationally significant (followed by those off the western coast of the Philippines facing the South China Sea). Can this imply a marine resource ecosystem strategic interconnectivity? This further implies that future marine affairs policy may require that these questions be addressed as a priority research gap agenda.
Perhaps one will notice that there is a north to south trend (albeit weak) superimposed with that of a north-east and south-west monsoon influence. This generalized influence of the monsoons together with the tectonic history primarily defines the objective constraints of our marine affairs. Our developmental thrust, as an archipelago should take this condition into greater consideration. It seems that despite the relatively more conducive conditions (for example, in the biophysical aspects such as high fisheries potential) for the development of the marine resources in the south and south-west sectors, relatively few government programmes have been undertaken. This highlights the great influence of the socio- economic conditions of the area (for example, the peace and order situation).
Consider also the marine resources evaluation exercise in table 2.13, which may help us qualitatively gauge the vulnerability and sensitivity of the sample cases. One can utilize the concept of the pressure-state-response model (IUCN/UNEP/WWF 1991) to elicit which areas are vulnerable or sensitive employing the importance values mentioned earlier. Going through this exercise, the vulnerable areas can be determined if one can glean which are the areas with high impacts (as in the coral reef evaluation approach of Ali and Campos 1994; Ali and others in press) and high importance values. Note that vulnerability here then implies that the type of human activities (i.e., use of the ecosystem) characterize the vulnerability of these areas. Sensitivity would refer to more objective criteria strictly based on the marine UNEP SCS/National report Philippines Page 49
ecosystems ecological value (i.e., a turtle nesting area is more sensitive than a non-turtle nesting area regardless of use). For example, the areas in the Spratlys are highly sensitive areas because of the presence of endangered species and high clusters of reef assemblages. Although it is less vulnerable in its present state, it could become more vulnerable in the future depending on the social response (for example, effectiveness of programmes on these areas and increased political conflicts) of the times.
In addition, it is also apparent that no sufficient monitoring and evaluation programmes (especially on the effect of their protection, the improvement on the marine ecosystem and their allocation of benefits to the programmed beneficiaries) are in place to provide adequate inputs on how to adapt to the changing scenario and needs of these areas. The last column of table 2.12 is a summary of some general recommendations to encapsulate the general issues mentioned above. These recommendations should be considered as an initial tool (like a straw man) which can be used to help evolve a participatory overall framework for a marine affairs policy.
Lessons learned on the exploitation of marine resources
Based on the time estimates (1920-1994) already quoted, it can be surmised that around 60 per cent of the mangrove forest in the country has been lost to coastal conversion, mainly to fishpond developments. From a 1920 estimate of 500,000 hectares, only 200,000 hectares remained (as of 1994). In the mid-1980s, 45 per cent of mangrove loss has been converted to fishponds and the rest for other purposes (for example, exploitation for its forest products: timber, firewood, tannin, nipa). Recent stock assessment of coral reefs in the country showed about 70 per cent of the coral reefs have less than 50 per cent living coral cover. Siltation, overfishing and destructive fishing have been recognized as the three main factors affecting coral reefs. Although these three are equally prevalent, sedimentation is the most important factor. Seagrass beds in the country are also converted to other uses, for example, ports, industrial developments and recreation. However, no comprehensive evaluation on the seagrass cover in the country has been undertaken to date. Pelagic and demersal fisheries have been biologically and economically overfished. The soft-bottom areas and the oceanic regions are highly overfished communities. Around 80 per cent of our marine environment comprises sandy/muddy habitats and oceanic areas, yet these two are the least appreciated. For a complete tabulated listing of the status, uses and threats of these coastal ecosystems, see Fortes (1996).
Bioeconomic studies demonstrate that the combined ecological and economic studies on the coastal zone attempt to maximize economic benefit while minimizing social and environmental costs. Policies with a sound scientific basis are advocated for the reorientation of economic policies. The concept of resource or economic rent has only just been recognized and adapted by the Government. The employment of resource/economic rent imposes on the users near the true value of the resource. This is often abused in open- access exploitation. The open-access characteristics of the marine environment can be managed with community-based management for the rational use of the resources. Existing recommendations for different marine ecosystems can be initially used to provide the conceptual framework for the conservation, management and sustainable use of these marine resources.
Table 2.12 Priority issues and possible management options in the various biogeographic sectors UNEP SCS/National report Philippines Page 50
Sector Areas and Priority Issues and Concerns Level Policy and Management Options
I. Western Palawan I.1. Spratlys and the Kalayaan Islands Group (KIG) - I I.1.a. Establish internationally recognized (e.g., proto- disputed areas, political conflicts threaten critical cols or conventions) marine protected areas (jointly- habitats (small island coral reef ecosystem) and managed or stewardship arrangements) in these associated endangered species (McManus and others 1992; areas to enhance its importance as an Asian or Ali and others 1996) world heritage site. I.1.b. Agree on stewardship arrangements (within the status quo) for the importance and establishment of strict marine conservation and protection zones w/in each base area and agree on grey zones for joint scientific and conservation efforts. I.1.c. Identify highly critical areas (e.g. seabirds and marine turtle nesting areas, marine mammal migrato- ry corridors) as objective bases for a common heritage area.
I.2. Calamianes Group - unique and threatened N I.2-I.4 a) Clarify and resolve delineation of importance coastal habitats (e.g., Coron, Calauit) for national and local jurisdiction based on its rela- I.3. Bacuit Bay - unique and threatened coastal N tive importance as national and local heritage zones. habitats (e.g., El Nido's pristine reefs and b) Emphasize and coordinate integrated activities presence of Dugongs and marine turtles) to optimize sustainable and equitable benefits at I.4. Ursula Island - endangered seabirds R/P all levels. c) Enhance the complementation of ecotourism and biodiversity protection and management as the preferred development goal to the sustainable utilization of fisheries.
I.5. Ulugan Bay - sustainable utilization of coastal R/P I.5-I.6 a) Estimate carrying capacity (e.g., fisheries and resources tourism of the bays and regulate harmonious uses I.6. Malampaya Sound - sustainable utilization of R/P accordingly (zoning and regulatory guidelines per coastal resources (esp. mangroves) zone) b) Establish sustainable local environment and resources councils (LERC) which are integrated at all hierarchical levels (e.g., barangay to the provincial level). c) Promulgate programmatic EIAs in these priority bays and/or sectors. Significance Level: I=International; N=National; R/P=Regional and Provincial (local significance). UNEP SCS/National report Philippines Page 51
Sector Areas and Priority Issues and Concerns Level Policy and Management Options
II. North of Mindoro to II.1. Scarborough Shoals - high diversity coral reef I II.1.a. Link this reef area to the more internal waters NW Luzon area together with presence of endangered (e.g., through the validation of source and sink species relationships or marine larvae and adults in the other sectors of the country). II.1.b. Establish the area as a national marine protect- ed area (MPA) for the sustainable utilization of marine resources in the coastal areas of the country.
II.2. Puerto Galera, Mindoro Oriental - UNESCO MAB N II.2.a. Coordinate with the UNESCO Man and the -need to enhance ecological protection and high- Biosphere (MAB) program, LGU and the DOT's light educational value short and long term plan and implementation for coastal management in the area. II.2.b. Establish the area as a demonstration site to highlight the education and cultural value of the area as a model for harmonious uses through tourism, ecological value appreciation and fisheries potential.
II.3. Apo Reef, Mindoro Occidental N II.3.a. Highlight Apo Reef as a critical gateway to the -need to enhance ecological protection and high- Sulu Sea (SS) and the South China Sea (SCS) and light educational value is at the intersection between sectors I, II, IV and V. II.3.b. Establish research and monitoring programs as way of evaluating the pulse of the SS and SCS. II.3.c. Since this area has no resident population, it has a high probability of success to consolidate gains of the CEP.
II.4 Batangas Bay and Balayan Bay I/N II.4-II.8 a) Consolidate gains of the area by phasing -requires improvement in the effective manage- over most internationally initiated activities to ment to assure sustainable use (for II.4 to II.8) locally implemented sustainable pursuits. II.5. Manila Bay N b) Transform CEP led coordinated programs in the II.6 Subic Bay R/P area to CEP technically assisted programs. II.7 Lingayen Gulf N c) Enhance local capabilities through international II.8. Oyon Bay R/P recognition, training and collaboration in order to assure sustained ICZM in the area. UNEP SCS/National report Philippines Page 52
Sector Areas and Priority Issues and Concerns Level Policy and Management Options
III.a. NE Luzon III.a.1. Batanes Islands (e.g. Yan-i Islands) - flyway I/N III.a.1-III.a.3 a) Due to the areas' susceptibility to the (Batanes to Casi- and seaway of many important seabirds and NE monsoon ("amihan"), these sectors' relative in- guran Peninsula) endangered species (e.g. marine turtles, turban accessibility has been afforded natural protection shells) so that no new high level development thrusts III.a.2. Fuga Island - potential ecozone, privately N should be encouraged. owned but with significant manta ray b) Ecotourism can be the development thrust but population, high diversity and tourism value sustaining these activities without upscaling the III.a.3. Palanan Wilderness Coastal Area N market demands requires innovative approaches; -downstream sensor for one of the few remaining these approaches remain to be further explored. coastlines adjacent to ultrabasic primary forests c) Increased access by land in the long term will create greater pressure on the eastern coasts (e.g., from siltation) and further infrastructure development would entail the EIAs on their socio- ecological impacts be carefully considered so as to maintain and reserve these pristine areas.
III.b. Aurora to III.b.1. Pollilio and Minasawa Island R/P III.b-III.c a) In order to facilitate the harmonious uses Catanduanes -need to harmonize biodiversity protection within through protection and regulated use - the estab- sustainable use (for III.b to III.c) lishment and institutionalization of marine protect- III.b.2. FSP Bays on the Pacific side (e.g. Calauag R/P ed areas (especially in the island ecosystems as Bay, Lagonoy Gulf, etc) municipal marine reserves and fish sanctuaries). b) Planning and implementation of coastal zoning III.c. Pacific Coasts III.c.1. Guian R/P mechanisms to be merged with the bay manage- of Samar & Leyte III.c.2. Limasawa Island R/P ment councils need to be further pursued. UNEP SCS/National report Philippines Page 53
Sector Areas and Priority Issues and Concerns Level Policy and Management Options
IV. West & Central IV.1. Taklong Island N IV. This sector by far has the most number of local Visayas; West -enhance gains of local initiatives to integrate initiatives and these gains need to be consolidated Coasts of Samar and impacts for optimal benefits to the regional and so that sustainability is assured and its benefits are Leyte and Northern national (for IV.1 to IV.5) optimized; Mindanao IV.2. Olango Island and vicinity (including MEPZ) N In order for these successes to be sustained and IV.3. Pamilacan Island - marine mammals N optimized, consolidation can be achieved by IV.4. Apo Island R/P pursuing the following mechanisms: IV.5. FSP Bays (e.g., Ormoc, Sogod, Carigara) R/P a) that highlight these successes in order to engen- der recognition of the lessons learned, b) that explore and pursue integrative value added activities to explore interconnectivities of island ecosystem clusters so as to cope with increased marine waters usage, c) where EIA programs, NIPAS and maritime activi- ties will need to adapt to these developmental transport inevitably making the fluid conditions a crucial test case for strategic planning, d) where each of the local initiatives will require the appreciation of large scale processes which can affect their Territorial Use Rights Fisheries (TURF) areas UNEP SCS/National report Philippines Page 54
Sector Areas and Priority Issues and Concerns Level Policy and Management Options
V. The Coasts and V.1. Tubbataha Reefs (including Basterra) I/N V.1 and V.2. The Sulu Sea can be considered as a Oceanic Regimes of -need to assure the sustained protection of these relatively large marginal sea (embayment vis-à-vis the Sulu Sea unique and threatened habitats; requires enhance- others in the country) which is the Philippines' ment of its national and international significance internal gateway of the Pacific Ocean to the South -high diversity China Sea. This feature affords this sector with -world heritage site other unique assets whereby in its heart and bossom -National Marine Park two significant international areas are situated (the V.2. Turtle Islands - nesting area of 80% of the marine I/N Tubbataha Reefs and Turtle Islands). In order to green turtle population (Chelonia mydas ) assure the enhancement of the national and inter- national heritage values of these areas, protection and preservation of these areas are the primary goals with the options to: a) Implement effectively the proposed management plans for the Turtle Islands and Tubbataha Reefs. b) Foster greater participation of local multisectoral stakeholders in the area. c) Assure that in the long term, greater responsibility is afforded the local governments involved with the national agencies defining their role in technical assistance, coordination, administration and funds leveraging.
V.3. Sta. Cruz Island, Zamboanga R/P V.3-V.4 a) Ecostourism activities should be harmonized -harmonize tourism and ecological value with sustainable uses by emphasizing the areas' V.4. Taytay Bay (northeastern Palawan) N ecological values aside from the pure recreational -harmonize tourism and ecological value assets. -marine mammals (Dugon dugong ) b) A sustained activity for Dugong dugong conser- vation program and other endangered species in this sector needs to be established. UNEP SCS/National report Philippines Page 55
Sector Areas and Priority Issues and Concerns Level Policy and Management Options
VI. Eastern Mindanao VI.1. Siargao Island, Surigao del Norte N VI. For the two areas of Eastern Mindanao, the range -unique coastal habitats of multiple uses are exhibited by a spectrum of high -marine crocodiles (extensive mangroves) ecological, biodiversity, tourism and fisheries values. VI.2. Pujada Bay, Davao Oriental R/P Considering these potential environmentally sensitive -habitat for endangered marine organisms values, the following options may be pursued: -start of Red Tide a) Operationalize the Siargao and Pujada Bay management plans taking into consideration the range of harmonious multiple uses of the area with- in the context of the overall national strategy. b) The degree and direction for industrial develop- ment in Siargao Island (as an Island ecosystem) should be minimal and the ecotourism push be regulated according to the carrying capacity (targets) since the area's susceptibility to the north- east monsoon can accentuate high levels of human impacts. c) On the other hand, Pujada Bay being as enclosed bay in the northern mainland of Mindanao will experience a high rate of agro-industrial activity and thus critical protection zones (e.g. Pujada Is.) should be operationalized and buffer zones within the bay heads and belly be established. UNEP SCS/National report Philippines Page 56
Sector Areas and Priority Issues and Concerns Level Policy and Management Options
VII. Southern Mindanao VII.1. Davao Gulf R/P VII. The Southern Mindanao sector is the least exposed and the Celebes -requires identification of more priority MPAs to to typhoons and has its rich fisheries potential as its Sea harmonize sustainable use objectives (for VII.1 to most significant asset. There is a need to harmonize VII.3) the likely increased utilization of on-stream programs VII.2. Moro Gulf R/P (e.g. FSP-Phase II, IDRC-MCS and the DENR-CEP VII.3. Saranggani Bay R/P at Mabini Island) that have been initiated. Since the initiatives are relatively new and the socio-political climate are quite unique, the following options can be pursued: a) Enhance participation and capacity of LGUs and NGOs in the area with the proper mixture of co- management and CB-CRM approaches in relation to sustainable fisheries utilization and marine biodiversity protection. b) Consider inter-agency bay consultative commit- tees and enhance the integration of NIPAS, CEP, FSP and EIS procedures into the economic zone (SPCPD) development agenda. c) Establish the interconnectivity of the genetic stocks in these three bays with its shared stocks of the Celebes Sea with Indonesia. UNEP SCS/National report Philippines Page 57
Table 2.13 Sample exercise (not validated) to help elicit vulnerable and sensitive areas (based on biodiversity significance level and pragmatic value)
Significance VALUE* P R O G R A M S Sector Level F E T NIPAS CEP EIA FSP Other need Programs
I.1 Spratlys 5 5 5 1 X I.2 Calamianes 3 5 3 3 X I.3 Bacuit 3 3 5 5 X H I.4 Ursula 1 5 3 3 X I.5 Ulugan 1 5 1 1 M X I.6 Malampaya 1 5 1 1 M X
II.1 Scarborough Shoals 5 5 5 1 L X II.2 Puerto Galera 3 1 3 5 X X L X II.3 Apo Reef, Mindoro 3 1 5 5 X L II.4 Batangas and Balayan Bay 4 1 3 5 X H X II.5 Manila Bay 3 5 1 3 H X II.6 Subic Bay 1 3 1 5 X H X II.7 Lingayen Gulf 3 5 3 3 X H X II.8 Oyon Bay 1 3 1 1 H X
III.a.1 Batanes 4 4 5 3 X M III.a.2 Fuga 3 1 5 4 H X III.a.3 Palanan 3 1 3 3 X M III.b.1 Pollilio 1 5 3 1 M X III.b.2 FSP Bays 1 5 1 1 H X III.c.1 Guian 1 3 1 1 X L III.c.2 Limasawa 1 3 1 1 L
IV.1 Taklong Island 3 3 5 3 X X M IV.2 Olango Island 3 3 5 5 X X H X IV.3 Pamilacan Island 3 3 5 5 X M X IV.4 Apo Island 1 3 3 5 X M X IV.5 FSP Bays 1 5 1 1 X H X X
V.1 Tubbataha 5 3 5 5 X L V.2 Turtle Islands 5 3 5 5 X L V.3 Sta. Cruz Island 1 1 1 5 X H V.4 Taytay Bay 3 1 5 5 H X
VI.1 Siargao Island 3 3 5 1 VI.2 Pujada Bay 1 3 3 3
VII.1 Davao Gulf 1 5 3 3 X H X VII.2 Moro Gulf 1 5 3 3 X M X VII.3 Saranggani Bay 1 5 3 3 X H X
*F=Fisheries; E=Ecological; T=Tourism
*Values of 5 = High value, 3 = medium and 1 = low are based on expert evaluation of the author UNEP SCS/National report Philippines Page 58
3.0 NATIONAL ANALYSIS OF THE SOCIAL AND ECONOMIC COSTS OF THE IDENTIFIED WATER-RELATED PRINCIPAL ENVIRONMENTAL ISSUES
The following sections are constrained by the paucity of information available to provide quantified estimates of social and economic costs. Despite these constraints, this report attempts to explore some possible indicators (for example, utilizing descriptive accounts from many disaggregate and discrete sources) which may help one to surmise the range and extent of the costs in the water-related issues. Moreover, we also call attention to caveats on the available information to show the need to further investigate and establish an information system for decision support on these issues. This can be developed in an adaptive management approach in which interventions do not have to be delayed but with best guess or information available, measures are implemented (utilizing precautionary principles). Adequate information feedback to adapt or adjust the management mechanisms to appropriately respond to the situation should be an inherent aspect in this adaptive management approach.
Cross-sectoral relationships in freshwater and marine, upstream and downstream effects are difficult to cost but can be estimated based on some crude indicators (for example, Hodgson and Dixon study in Palawan 1988). As mentioned, the need for a more comprehensive and ongoing national and environmental resource accounting system integrated into government policy has been pointed out by many (Cruz and Repetto 1992, de los Angeles 1994, Montes 1994 and Constanza and others 1997). In order to evaluate these socio-economic costs, the cause and effect relationships in the following areas have to be well established:
(a) The variability of effects in habitat change and resource over-exploitation; (b) The intersectoral effects of natural and environmental use changes by the stakeholders (for example, materials intensive and industry intensive industrial growth and increasing pollution); (c) The interpersonal effects of unemployment, poverty and population pressure on marginal resources (Cruz and Repetto 1992).
The stabilization mechanisms and structural adjustment policies of the Government and how they impact on the environment and the water-related issues need to be proactively examined so as to cope with the present local and global changes. Since cause and effect indicators in environmental and resources utilization together with their effects are only starting to be incorporated into government policy and management of programmes (see Mendoza and Magpantay 1997), many of the descriptive accounts outlined below can be utilized to design and quantify forthcoming data inputs.
Biodiversity losses and habitat change in water-related concerns are not well quantified especially in terms of socio-economic values. Only indirect measures are described to give an indication of the possible socio-economic costs. For example, one can describe the decline in forests as related to effects on the watershed source of water and concomitant effect of erosion and siltation on water reservoirs.
How effective is the establishment of protected areas in reducing costs to the environment? The need sustain financial resources is also very fuzzy at the moment. It is not clear how capacity-building efforts, especially in manpower and research, have an effect in solving the problems concerned with water-related issues. UNEP SCS/National report Philippines Page 59
Table 3.1 Philippine nature sector accounts, 1988 (in million pesos) INPUT Amount Pct to GDP Environmental Damages a. Air 102 b. Water 2,507 0.3 total 2,609 0.3 Net Environmental Benefit 24,214 3.0 NATURE SECTOR INPUT 26,823 3.3 Nature/Env’l Depreciation (1,949) 0.2 NET NATURE SECTOR INPUT 26,874 3.1
OUTPUT Amount Pct to GDP Final Demand for Nonmarketed Environmental Waste Disposal Services c. Air 5,149 0.6 d. Water 20,094 2.5 total 25,243 3.1 Direct Nature Services Diving 0.97 Forest Recreation 13 Coastal Beaches 1,566 0.2 Total 1,580 0.2 NATURE SECTOR OUTPUT 26,823 3.3 Nature/Env’l Depreciation (1,949) 0.2 NET NATURE SECTOR INPUT 24,874 3.1 Source: Angeles, Peskin and Bennaga 1994
3.1 SOCIAL AND ECONOMIC COSTS OF POLLUTION
Estimates of the economic costs of water-related sewage are around 2.5 per cent of GDP. While it may seem low, this can be significant considering that the Philippine foreign debt servicing is around 3.6 per cent of GDP (Montes 1994). In addition since many pollution problems and habitat modification have long-term effects on ecosystem changes, annual estimates on environmental costs as a proportion of GDP should be viewed carefully. This caveat relates to the averaging of cost estimates of environmental damage which is carried over the years (giving lowered estimates) when in reality some cumulative effects may be accrued (for example, biological accumulation and entrainment of pollutants in sink areas such as lakes and embayments).
Social costs related to the loss of employment associated with poor health and reduced fish production may eventually lead to the marginalization of the poor in the coastal areas. In many of the manufacturing coastal areas, squatter colonies aggregate to provide services to the labour population in the area including the proliferation of sex workers, drug users and criminals. UNEP SCS/National report Philippines Page 60
Ethical and cultural costs accrue from a loss of respect for the water environment because of their sense of helplessness in not being able do something about their condition. This feeling of helplessness occurs especially in areas that are located as downstream receptors of accumulated pollutants from upstream manufacturing firms.
Health costs from diseases such as diarrhoea and gastro-enteritis from ingestion of poor quality seafood affected by pollutants have not been fully estimated. Often reports of food poisoning from seafood intake are seen in newspapers. Death from paralytic shellfish poisoning has often been an indicator that a harmful red tide bloom has occurred. Other effects from biomagnification of toxic and hazardous chemicals have not been well documented but some reports have implicated potential hazards from mercury contamination.
3.2 SOCIAL AND ECONOMIC COSTS OF WATER SHORTAGE AND DEGRADATION OF ITS QUALITY
A study funded by the Japan International Cooperation Agency (JICA) for the National Water Regulatory Board that classified the country into freshwater regions based on river basins and projected simulations of trends from 1995 to 2025 showed that the National Capital Region (NCR) had the lowest (1.8 per cent) annual average growth rate from 1995 to 2025 of the water regions classified. However, it still had the highest level of per capita income (P42,962) followed by central Luzon and southern Tagalog. Judging from the gross value added projections in all sectors (industry, agriculture and services) for these water regions, it was obvious that the regions that were projected to have the highest gross value added were found in very limited water resources regions (III, IV, VII, VIII and X) and river basins (Pasig- Laguna Bay, Mindanao and Cagayan). This suggests that a more balanced development needs to be carried out in these water resources regions or they will have to contend with water constraints.
Saline water intrusion and groundwater pollution have been identified as the two main problems pointed out by the study although it did not gauge the magnitude of these problems. Despite the identified causes of over-exploitation of groundwater and pollution from increased population activities, there is as yet no national evaluation of socio-economic costs accruing from these problems. The high incidence of anecdotal and circumstantial evidence indicates that these problems may have the highest costs in Metro Manila and Metro Cebu areas.
Environmental socio-economic costs associated with flooding on land have also not been fully evaluated but have been reported to have caused major damage to life and property and to have reduced economic productivity.
The impact of the construction of dams and related engineering facilities has been well recognized, for example, the modification of freshwater habitats and species composition changes. This area is another gap that requires further investigation.
In the environmental section of the study, it identifies soil erosion as a problem in many catchment areas but the social-economic costs have not been evaluated. Furthermore, insufficient surface water classification has led to inconsistent uses and water quality problems.
In Region VII, especially for Cebu and Bohol, the catchment area has experienced water quality problems because of the increasing population. UNEP SCS/National report Philippines Page 61
Since the social and economic costs have not been elucidated, one can only speculate on the possible costs. Dependent on development trends and the distortions brought about by water shortages and pollution, employment will be affected by changes in economic activity. In addition, costs to the community from poor health and disease (for example, malnutrition, hepatitis and diarrhoea) which result from lowered and inadequate water supplies have been considered but not quantified.
3.3 SOCIAL AND ECONOMIC COSTS OF OVER-EXPLOITATION OF AQUATIC RESOURCES
Around 0.1 per cent of GDP natural resource depreciation was estimated by Angeles and others (1994) as cited by Montes (1994). But Lacanilao (1997) points out that from a peak of 1.2 million tons of fish caught by municipal fishers in 1991, this catch volume dropped to 0.9 million tons in 1996. This may be indicative of possible over-exploitation since he pointed out that 1996 saw a drop in the total fisheries catch despite an increase in aquaculture and commercial fish production. If we were to estimate the total cost of this decrease it would amount to around $30 million a year, 0.01 per cent of GDP. On the other hand, Saeger (1994) provided more detailed estimates of the annual economic and financial losses and rent dissipation from the different fisheries subsectors, as follows:
1. Demersal fisheries: rent dissipation of between US$100 million and US$160 million (with an assumed average of US$130 million) 2. Small pelagics: rent dissipation of US$242 million 3. Large pelagics: rent dissipation of US$300 million 4. Brackishwater aquaculture and destroyed mangrove areas: rent dissipation of US$ 242 million 5. Collection of aquarium fish: rent dissipation of US$242 million 6. Spoilage from improper post-harvest handling: losses of US$390 million
Based on these conservative estimates, the combined annual rent dissipation and losses in the fisheries sector total at least US$1.23 billion. To be added to this figure are the losses of fish harvests because of poaching by foreign fishing vessels, worth about P50 billion since 1989, equivalent to annual losses of approximately US$57 million. These harvest losses may be classified as lost fishing opportunities and the activities certainly contributed to the current problem of overfishing. If these losses are added to the estimates above, then the aggregate deficit will total US$1.8 billion or P50.4 billion annually.
The social and economic costs to more than 90 per cent of the total fishing population in reduced incomes and loss of possible livelihood is mind-boggling. Approximately 20 per cent of fishing may need to be reduced to restore sustainable levels. UNEP SCS/National report Philippines Page 62
3.4 SOCIAL AND ECONOMIC COSTS OF HABITAT CHANGES
As mentioned in the earlier sections it is difficult to evaluate the socio-economic costs of habitat changes since no nationwide study has been completed to draw these estimates. We utilize examples from two (the coral reef and the mangrove habitat) of the most highly productive areas in the country to show the possible magnitude of these losses. It is in these two habitats that areal cover estimates of these ecosystems have been made.
For the coral reef, areal cover estimates range from 25,000 - 33,500 square kilometres. Gomez and others 1994 estimated that only around 5 per cent are in excellent condition whereas around 20 per cent are in poor condition. Based this information, I speculate that the shift from excellent to poor may be initially equivalent to a loss of around 5 per cent of its total productive area (range: 1,250 - 1,670 square kilometres). If one utilizes an initial benchmark estimate of Constanza and others (1997) at $6,075 per hectare the loss would already be around $0.7 - 1billion. Note though, that it is difficult to gauge the loss on an annual basis and efforts to look at the recovery rates of reefs might be the approach towards resolving this concern.
On the other hand, consider the loss of mangroves of around 260,000 hectares (1994) from an original area of around 400,000 to 500,000 hectares in the early 1900s. Again utilizing a median value of around $10,000 per hectare from Constanza and others (for coral reefs at $6,075 to estuarine areas of $16,000 per hectare) we have an estimate of $2.6 billion. Again, there is a problem of how to evaluate this loss on an annual basis.
As mentioned in the introductory part of this section, the social costs may be even more difficult to evaluate.
4.0 ANALYSES OF THE ROOT CAUSES OF THE IDENTIFIED WATER-RELATED ISSUES
Aside from the specific issues, there are some cross-cutting causes which may be considered systemic in nature. De los Angeles and Padilla (1992) have diagrammatically presented some of these concerns in relation to a cross-transect approach starting from the watershed down to the offshore areas. The demographic shifts into the coastal zone, which create increasing pressures in the main population centres, may be traced to disproportionate levels of development in the urban and rural areas. Fettered by a semi-feudal history, the large chasm between the landlord and tenant farmers who have access to natural resources has created a pull towards the sea where an open access situation prevails. In addition, this is exacerbated by inadequate coastal (marine) and land use zoning in most of the municipalities of the Philippines.
The lack of coordination and integration of administrative and jurisdictional mechanisms in order to solve water-related issues may be rooted in the insufficient legal and institutional conditions in the country. It has often been said that many of the laws on environment and natural resources are in place, and that what is needed is the political will to enforce them. Although there is some truth to this, there are macroeconomic and political conditions which may need to be addressed. The appropriate mix between central controls and private access arrangements especially in areas of common property should be well thought out.
One of the root causes may also be related to the effects of the increasing rate of globalization on the economy of the Philippines and the world in general. For example, production for exports and import substitution and enticements for increased investment into UNEP SCS/National report Philippines Page 63 the country require caution. Instead of putting environmental controls and safety nets aside to be globally competitive, innovative taxation measures can be explored and other mechanisms for value added products can be undertaken (for example, improved processing and marketing and eco-labelling).
Some of these systemic root causes will be considered initially as constraints (see section 6) although it has to be emphasized that there exists a consistent lack of capacity in many of these areas (for example, economic, financial, scientific information and administrative organization).
4.1 ROOT CAUSES OF POLLUTION
4.1.1 Domestic and solid wastes
Only Metro Manila is served by a sewerage system (the Metropolitan Waterworks and Sewerage System, MWSS) which caters to around 1.2 million people of the estimated 9.45 million in the metropolis. According to Deocadiz (1997), the households of middle income families (about 4.8 million people) often have septic tanks which are adequately serviced while others utilize an "unconventional sewage system".
The implication of the inappropriate waste management system in Metro Manila is exacerbated several fold in over nearly 30 major human settlements in the country. Aside from Metro Manila, Metro Cebu and Davao City with urban populations of over one million people also experience similar conditions.
This insufficiency of sewage treatment facilities is also paralleled in the lack of a solid waste disposal system. For example, only 60-70 per cent of daily solid waste generated is collected and absorbed in dumpsites and landfills. The rest is burnt or immediately dumped as waste in tributaries and coastal waters. It is interesting to note that in the solid waste generation of 0.2 kg day, 1. 43 per cent consists of putrescible matter (i.e., included in the list of toxic and hazardous waste)(NCSO 1983).
In the Batangas Bay Region (ENROPGB 1996), solid waste is accumulated for the following reasons:
1. Inadequate dump sites; 2. Low collection efficiency; 3. Random dumping of uncollected waste; 4. Wastes from ships especially domestic passenger vessels; 5. Absence of incinerators; 6. Lack of collection fleets; 7. Narrow roads for large garbage vehicles; 8. Irregular street sweeping and open drain cleaning; 9. Lack of incentives and penalties to implement waste minimization, segregation and recycling.
The social cost of absorbing the sewage and solid waste is as yet not clearly defined. There is a need to clarify who would absorb the responsibility, either civil society or the Government for the sharing of allocations. There is a need for planning the financial allocation for the public and private sector cost sharing for the establishment of a comprehensive waste disposal system. This should include waste minimization and recycling programmes at the local, regional and national levels. UNEP SCS/National report Philippines Page 64
4.1.2 Agrochemical loading
The livestock waste as of the moment has no clear limits in terms of the stocking density of poultry and livestock. No limits in poultry and livestock density leads to excessive and unregulated livestock waste. Since there are no estimates and regulations for the cumulative effects of this agrochemical input, then an integrated system similar to the programmatic EIAs may be needed to deal proactively with these problems.
Farm inputs, fertilizers (for example, urea and NPK) and pesticides (for example, insecticides, herbicides and molluscicides) have no clear guidelines on what are the proper crop and livestock raising practices. In effect legal controls of waste from farm outputs become voluntary and may be susceptible to consumer preferences and pressure. Pesticide and nutrient inputs are considered primarily for production without sufficient controls on environmental impacts. Regulation and control of pesticide manufacture is also necessary to limit the impact of this issue.
4.1.3 Siltation/sedimentation
Natural coastal erosion and sedimentary depositional shift as well as recreational and coastal activities primarily lead to heavy siltation and sedimentation in low lying areas or depressions, rivers and coastal areas (for example, Manila Bay, Lingayen Gulf, Cebu and Marinduque). Aside from natural factors, intensified deforestation and subsequent land conversion is a major source of these problems. Strict implementation of laws regarding illegal logging activities is needed to minimize its effect. In addition, adaptation of proper and adequate soil erosion measures in the specific area of concern and land use planning should be instituted.
4.1.4 Organic pollution in terms of biological oxygen demand (BOD)
Deocadiz (1997) enumerated the five major manufacturing industries (food processing; sugar mills, refineries and distilleries; desiccated coconut and coconut oil mills; pulp and paper; and textiles) that contribute largely to the organic pollution load in rivers and streams and coastal areas. In addition, waste generated by these industries (for example, food processing) also includes effects on the COD, suspended solids and nutrients. The removal of these nutrients in the wastewater treatment facilities is not given proper care and importance and is often neglected. Significant discharges from the manufacturing process need monitoring and control to minimize organic pollution loadings.
4.1.5 Toxic and hazardous waste [THW] including heavy metals and mine tailings
Most manufacturing industries (for example, mining and processing factories) have insufficient waste disposal mechanisms and unsafe practices owing to the lack of capacity of the public and private sectors to monitor, evaluate and control these practices. For example in 1993, over 11,000 manufacturing industries existed with over half of these in Metro Manila. The major THW contributors by industry sector are chemicals, food and drink, and textiles which accounted for over 50 per cent of the total THW loading in Metro Manila, Region 3 and 4. It was observed that liquid THWs are currently discharged in an uncontrolled manner to sewers and watercourses. Moreover, chlorinated organics, trace metal, pathogens and oily wastes enter the inland water system and seas (IMO 1995). There are also toxic wastes critical to the health of humans and associated organisms being dumped at municipal landfills. This implies that the Environment Management Bureau has insufficient government resources, including manpower and time, to monitor and control industrial waste. UNEP SCS/National report Philippines Page 65
Listed below are other general observations on the generation of toxic and hazardous waste in the Philippines (IMO 1995):
1. Geothermal plants generate ash residues with very high concentrations of heavy metals; 2. Oil residues and volatile organic carbons originate from petroleum refineries, bulk depots and storage tanks in industrial plants; 3. Oxides and sulphides of arsenic and other heavy metals are produced from copper roasting and smelting processes; 4. Used polyethylene bags impregnated with pesticides from banana plantations are disposed of in an uncontrolled manner; 5. Mercury contamination originates from small-scale mining in Mindanao, and chromium wastes are produced by leather tanning and finishing operations; 6. Heavy metals such as cadmium, chromium, zinc, nickel and copper originate from metal plating and finishing plants; 7. Hospital and laboratory wastes containing pathological and infectious agents and other toxic chemicals are normally co-disposed with municipal wastes.
Moreover, mining and quarrying operations not only dump wastes which have heavy metals but also contribute significantly to problems of sedimentation and erosion. In the Batangas Bay region, the significant contributory factor to the issue of mine wastes is the unregulated environmentally destructive practices (for example, the open-pit mining method).
4.1.6 Oil pollution
The issue of oil contamination from shipping and sea transportation is critical especially in the western Luzon area. There are three major coastal refineries in the country (Bataan Refining in Limay, Bataan, Caltex South of Luzon and Pilipinas Shell in Batangas) which contribute to incidents of oil spill. There is insufficient institutional and administrative capacity to ensure environmentally responsible maritime practices. Moreover, there is improper siting and no strategic coastal development plans in the country.
In addition, oil spills caused by shipping accidents (from discharge, spillage, grounding and sinking incidents) in Philippine waters reached 14 cases in 1978 from the list of the National Operation Centre for Oil Pollution. These incidents are expected to continue because of insufficient understanding of navigational routes and inadequate contingency plans.
Increased threats of oil discharges from industries (for example, in the Batangas Bay region) is primarily due to insufficient control and lack of proactive measures (for example, readiness and effective response and active preventive management). There is also a prevalence of inadequate skills to detect, control and enhance areas of spills.
4.1.7 Harmful algal bloom (HAB)
Outbreaks of toxic and harmful red tide are caused by human and naturally induced conditions. According to Deocadiz (1997), from 1983 to 1994 there were 16 areas all over the country that had been affected by red tide and paralytic shellfish poisoning. Eutrophication from sewage, other pollutants (for example, phosphate and nitrate from fertilizers) and utilization of coastal waters from aquaculture have also been attributed to cause some of the algal blooms, which in turn sometimes lead to fish kills and paralytic shellfish poisoning. Nutrient accumulation can also be due to the inefficiency of the existing wastewater treatment UNEP SCS/National report Philippines Page 66 facilities of some of the industries to remove excess nutrients. In this regard consideration of a harmful algal bloom facility is necessary. This facility can provide monitoring control and surveillance (MCS) and at the same time provide strategic policy guidelines and proactive tactical interventions in the issues related to harmful algal bloom.
4.2 ROOT CAUSES OF WATER SHORTAGES AND QUALITY DEGRADATION
4.2.1 Surface water quantity and quality
Contamination of surface water resources (for example, groundwater and sewers) is primarily caused by improper disposal of waste including THWs, insufficient sanitary landfills for municipal waste disposal and contamination by septic tanks effluents. In Metro Manila, only two sanitary landfills have been developed and operated since the 1990s (in San Mateo, Rizal and Carmona, Cavite) (Deocadiz 1997). According to Deocadiz (1997), all surface waters in Metro Manila are highly contaminated with human wastes. Other urban centres (for example, Metro Cebu, Davao and Cagayan de Oro) are also contaminated with domestic waste in the form of sewage, solid waste and leachate from dumpsites. There were reports that contamination of drinking water in Metro Manila also originated from a local timber mill in Quezon City which improperly discharged wastewater with Cr, Ar and Cu (IMO 1995). Other toxic chemicals were also detected in the surface waters of Manila Bay, Calancan Bay, Davao and Palawan. This leads to a conflict of surface water uses. There should be effective regulation of waste disposal in tandem with the establishment of an efficient enforcement body.
4.2.2 Groundwater quantity and quality
Depletion of water in reservoirs and salt water intrusion in Metro Manila and Cebu is primarily due to unregulated water consumption or overextraction. As noted in the global waste survey by the International Maritime Organization (IMO), in the Philippines in general, there is poor pollution control and waste management around groundwater resources. Shallow groundwater resources have been contaminated by septic tank effluents and THWs, which are improperly disposed of by several manufacturing industries. Moreover, sanitary landfills for municipal waste disposal is insufficient to accommodate the waste generated by households, commercial establishments and industries.
4.2.3 Hydrological alterations
Development activities such as damming of rivers can alter the existing hydrology in an area. Changing a riverine environment to lacustrine has a high impact on the aquatic environment and hydrology of the area. Although development like this can alleviate the shortage of freshwater in the metropolis, there should be a comprehensive EIA study to minimize the adverse impact on the surrounding environment, including the socio-economic conflicts that would arise from this development.
4.2.4 Freshwater issues related to global changes (for example, El Ni effects)
Naturally occurring pollution (for example, tropical cyclones, earthquakes, volcanic eruption and El Ni effects) can affect the freshwater resources of the country. The Mt. Pinatubo eruption in 1991 obliterated the surrounding river channels and floodplains of central Luzon. Floods damaged property and crops and caused increased turbidity, high concentrations of suspended solids and silt in the streams and rivers. Deocadiz (1997) also noted that surface and groundwater in the Philippines contain natural background levels of heavy metals or elements in trace levels (for example, arsenic). UNEP SCS/National report Philippines Page 67
4.2.5 Maritime transport environment
In the marine transport environment the following issues: unregulated dumping of domestic sewage and solid waste in the coastal waters, THWs pollution (for example, deep sea dumps of radioactive wastes), and oil spill accidents from refineries or floating barges are important. In many cases, transnational ships dump waste 500 to 600 kilometres offshore before entering the country. In addition, there have been attempts to illegally dump waste, such as alkaline, petrochemical tank residues, mine tailings, dredge material from coastal reclamation zones and THWs, in Philippine territorial waters (IMO 1995). From 1986 to 1992, the Philippine Coast Guard issued ocean-dumping permits for caustic soda (IMO 1995). The Philippines is said to be a signatory of the MARPOL 73/78 but to date it has not been ratified.
4.3 ROOT CAUSES OF OVER-EXPLOITATION OF AQUATIC RESOURCES
4.3.1 Unclear access arrangements (for example, overlapping roles of stakeholders)
Resource depletion in coastal areas (i.e., mostly traditional fishing grounds) is often the product of the "open access" nature of the fishing industry. Despite legal restrictions on the access of commercial fishers into municipal water (for example, less than 7 kilometres from shore) competition exists for common fisheries and their fishing grounds. Commercial fishing boats usually encroach into the 7-15 km zones of the more productive municipal waters.
In the Philippines most of the fishing grounds experience a certain degree of resource- use conflict in terms of the area of operation and the target species. The difference lies in the availability of resources of the stakeholders. Most of the time, artisanal fishers have limited resources (i.e., not enough capital) to afford them effective and high-tech fishing gear for them to venture into areas fished by commercial fishers.
Moreover, the overlapping roles of stakeholders result from the influence of the vested interests of politicians and the elite on resource use arrangements.
Increasing offshore developments (for example, oil drilling exploration) and other nearshore coastal development have constricted access to coastal fishers and user groups. Restriction on fishing activities occurs when companies operate wharves (oil companies) or conduct oil drilling exploration activities. The exclusion zone puts some limitation to the fishing grounds especially if it is within the 15-km municipal waters. Although the municipality directly benefits from these activities (for example, tax), small-scale fishers suffer from a limited area for fishing. Provisions can be given to these fishers by most of the operators or companies of these explorations (for example, employing some of the members of the municipalities directly affected and allowing fishers to fish in areas where fully lighted boundaries are located).
4.3.2 Overpopulation, allocation and insufficient preferential access rights (for example, integrated fisheries management)
A high exploitation rate of the fisheries resources is currently being experienced by these fishing grounds (i.e., both the hard and soft bottom areas of fishing grounds). The twelve priority bays included in the Fisheries Sector programme of the Department of Agriculture were the following: Carigara Bay, Panguil Bay, Calauag Bay, San Miguel Bay, UNEP SCS/National report Philippines Page 68
Manila Bay, Ormoc Bay, Tayabas Bay, Ragay Gulf, Sorsogon Bay, Lagonoy Gulf, San Pedro Bay and Sogod Bay.
The use of destructive fishing methods such as blast fishing and cyanide fishing further exacerbates the heavy exploitation status of most of the traditional fishing grounds. The Government still has to explore incentives for the exploitation of lightly exploited areas (for example, Palawan waters, the Babuyan and Batanes group).
Overlap between coastal communities in access to the resources are also experienced by most of these traditional fishing grounds. There are cases in which one coastal municipality benefits more from the local resources of another coastal community. The increasing number of fishing vessels (including commercial fisheries) and the unregulated fishing activities by various groups complicate the situation.
The increasing problem of poverty in the country greatly affects low-income fisher families. Owing to limited access to other sources of income, there is a tendency to population growth and migration to the coast. One action that should be taken in this issue is to harmonize economic and social incentives to establish comprehensive coastal community development (for example, livelihood opportunities and a proper mix for rural and urban areas).
4.3.3 Absence of coastal zoning programmes
Upland and coastal activities that include conversion into fishponds, industrial establishments (including mining activities) and human settlements, including changes in the development thrusts of urban and rural settings, greatly affect the existing landscape of the area. The absence of coastal zoning mechanisms led to the degradation of coastal habitats and the denudation of the coastal ecosystem, eventually decreasing the effective fishing area.
One issue is the loss of coastal productivity and safe habitats for juveniles because of the destruction of mangrove swamps. An increase in nearshore activities such as the conversion of domestic ports into international ports (for example, Batangas) can result in the loss of marine biodiversity. Pollution from oil spill/discharges including unregulated waste disposal from land and water based sources could also affect the coastal areas. The absence of a harmonious land and sea use classification and guidelines lead to increased conflicts, thus hastening resource degradation and depletion.
4.3.4 Poor policies and weak law enforcement
Annex V presents some of the existing environmental legislation regarding fisheries. However, because of the poor living conditions of many of the fishing people, they tend to depend on illegal means of fishing. The Bantay Dagat and coastguards of each area should give particular attention to the increasing problem of illegal fishing. Equivalent sanctions should be properly enforced when the law is violated. The existing fishery decrees and laws are not properly enforced and there are times when these are neglected. Law enforcers are often implicated in illegal activities themselves. Supplemental strategies for enforcing laws and regulations should also be initiated.
Encroachment of commercial fishing boats in the 7-15 km zone of the municipal waters is prevalent in many parts of the country. Most of the operators of these commercial vessels belong to the elite. Instead of increasing competition (i.e., in terms of space and resource) between the small-scale and commercial fishers in traditional fishing grounds, the UNEP SCS/National report Philippines Page 69
Government should encourage joint venture arrangements in international waters. To date, many offshore areas and the exclusive economic zones are under-utilized.
4.3.5 Others
The over-exploitation of the marine resources in the country is also caused by the inadequate policy to implement realistic coastal resource economic values and rent systems. There are studies on the existing economic valuation of coastal resources in the country (for example, Evangelista 1992). Ignoring the economic loss of resources results in an underestimation of its implications for the country's GDP.
Integrated coastal management programmes of DENR mainly focus on the planning aspects of the coastal resources dealing with the management, technical skills and information needed for sustainable development. However, the issue of the over-exploitation of fisheries resources is not linked in the planning perspective of this programme. Implementation of coastal zoning should be integrated with fisheries management.
4.4 ROOT CAUSES OF THE DEGRADATION OF HABITATS AND THEIR MODIFICATION
The coastal habitat change or loss is influenced by human intervention and natural phenomena that affect the sustainable development of marine resources. Habitat degradation and modification caused by human impacts can be a result of both direct and indirect causes. The major causes include:
(a) Illegal and destructive upland activities that cause siltation and sedimentation, such as deforestation; (b) Devalued resource rents; (c) Absence or inappropriate zoning classification and negligence of acquisition of proper permits from regional growth centres and national integrated protected areas; (d) Inappropriate tenurial arrangements (human settlement, industrial zones and coastal conversion, for example, mangroves into fishponds); UNEP SCS/National report Philippines Page 70
(e) Unclear jurisdictional responsibilities (administration, ancestral domain, autonomous region and exploration); (f) Inadequate procedural mechanisms ( for example, EIAs); (g) Coastal pollution (for example, indiscriminate dumping of uncollected and untreated waste); (h) Illegal means of fishing; (i) Law enforcers are often implicated in illegal activities themselves.
Natural effects include typhoons and volcanic eruptions. The Philippines is visited annually by at least 12 tropical cyclones accompanied by floods. Aside from environmental and property damage, there are human deaths and injuries. The 1991 Mt. Pinatubo eruption caused physical and economic dislocation to about a million residents and heavy siltation in river channels and coastal waters.
For mangrove forests, there are proposed alternative management strategies that will suspend large-scale exploitation while conducting research studies with time allocated for recovery and preservation, conservation and some fish pond development. Public education on adaptive management schemes is needed to cope with the interaction of natural and human induced effects. In addition, coastal development plans should be harmonized at various levels (local, regional and national levels).
4.5 NON-MARKET OPERATIONAL ALLOCATIONS AND MARKETING BASED INTERVENTION
Pollution problems in the environmentally critical areas such as coastal areas are emphasized in the environmental impact statement (EIS) system. However, the individual EIAs of each development activity in an area is not sufficient or adequate to accommodate the environmental problems of the water-related issues of the ecosystem. Proper allocation quotas for pollution loads (i.e., taxation and financial interventions or debts swaps) should be implemented, including both the industry and the household based estimated cumulative effects of the system’s carrying capacity. The programmatic EIA by the DENR incorporates all aspects of environmental problems resulting from different causative factors or activities around the area. Quotas derived from carrying capacity estimates can include non-market preferential allocations to provide some safety nets to marginalized sectors. Co- management by the private and public sector is the primary builder of sustainable community development. With the carrying capacity principle, public responsibility in resource use and management can be appropriately accounted for while some private sector allocations can also be facilitated by market based interventions (for example, individual transferable quotas and pollution loads).
5.0 ONGOING AND PLANNED ACTIVITIES RELEVANT TO THE IDENTIFIED WATER-RELATED PRINCIPAL ENVIRONMENT ISSUES
The Philippines has formulated national programmes to prevent, minimize and control the consequences/ impacts of the water-related issues especially in the transboundary location of a body of water. The existing legal and administrative laws tackle issues on the sovereignty, allocation, regulation and protection of the natural and human resources in the Philippines. Different approaches (national programmes and projects) have been formulated and implemented to preserve and conserve freshwater and coastal ecosystems.
The major national legislation that incorporates environmental law and policies are the Philippine Constitution and Presidential Decree (PD) 1151, known as the Philippine UNEP SCS/National report Philippines Page 71
Environmental Policy. A summary of the ongoing and planned activities relevant to the identified water-related principal environmental issues can be seen in annexes IV and V.
5.1 ONGOING AND PLANNED ACTIVITIES FOR POLLUTION ABATEMENT
Deocadiz (1997) enumerated the major laws, rules, regulations and standards for pollution control and residuals management:
1. Republic Act 6969. The Toxic Substances and Hazardous Wastes Control Act of 1990. The act prohibits the entry, even in transit, of hazardous wastes and their disposal within Philippine territorial limits. It provides for the proper management of hazardous wastes by specifying the responsibilities of wastes generators, wastes transporters and wastes treaters and mandates registration of all waste generators in a prescribed form. It establishes a manifest system to be maintained, which includes waste transport records, specifications of waste storage and labelling, and the issue of permits for new waste treatment and disposal facilities.
2. Marine Pollution Decree of 1976. National Operations Centre for Oil Pollution (NOCOP) under the Philippine Coast Guard for combating marine pollution including oil spills.
3. Toxic Substance and Hazardous and Nuclear Wastes Control Act of 1990. This act controls all activities regarding chemical substances and mixtures including hazardous and nuclear wastes that present unreasonable risks and/or injury to health or the environment.
4. Presidential Decree 1586. Environmental Impact Statement System (1978) DAO 96-37, revised EIA system. This introduces a system for environmental impact assessment.
5. DENR Administrative Order 34. Revised Water Usage and Classification/ Water Quality Criteria. This incorporates the different classifications of freshwater and coastal/marine waters in terms of usage and criteria values for conventional parameters and toxic/deleterious parameters.
6. DENR Administrative Order 35. Revised Effluent Regulations of 1990. This define the effluent quality of discharge into different classifications of receiving bodies.
7. DENR Administrative Order 29. This provides for the implementing Rules and Regulations of RA 6969.
Following are the programmes and projects related to the pollution issue. They contributed to the system of pollution management assessment of priority industries highlighting the promotion of waste minimization measures (Deocadiz 1997):
1. Industrial Efficiency and Pollution Control programme funded by the World Bank/ Japan Bank;
2. Metropolitan Environmental Improvement programme funded by the World Bank; 3. Industrial Environment Management programme funded by USAID. UNEP SCS/National report Philippines Page 72
The industrial efficiency and pollution control programme was designed to prevent and reduce pollution at source by utilizing manufacturing process improvements that increase the profits of the participating companies, reclaim industrial wastes and encourage cost effective pollution abatement technologies (Jacinto and Gervacio 1997). The four components of the project were as follows: (a) pollution reduction, (b) policy studies and public/private dialogues, and (c) a capacity-building component.
Several other projects emanated from the framework of the Sewerage and Sanitation Master Plan (Year 2000 Plan) under the auspices of the Metropolitan Waterworks and Sewerage System (Deocadiz 1997):
1. Sewerage Development programme - aims to rehabilitate the central sewerage system in Metro Manila and expand the collection system, construct monitoring facilities for wastewater disposal, and monitor programmes and complementary activities;
2. Sanitation programme - aims to improve the health situation in densely populated, low income areas.
To account for the litter and solid waste problem in the country, the ntegrated national solid waste management framework was established under the leadership of the Presidential Task Force on Solid Waste Management in collaboration with the Environmental Management Bureau of DENR and the Metropolitan Manila Development Authority.
Other support projects were undertaken to alleviate the increasing problem of pollution, such as the nationwide clean-up activities during Earth Day on 22 April, the Environment Month in June, the National Clean-up Month in September and tree planting activities. Environmental quality monitoring activities are conducted in Manila Bay, Pasig River and selected river systems in various parts of the country (Deocadiz 1997).
Several other research activities are currently being undertaken to monitor and assess the behaviour and transport of land-based pollution (Deocadiz 1997). Database systems are being made at different levels of development and technology in various agencies, programmes and projects.
5.2 ONGOING AND PLANNED ACTIVITIES TO MITIGATE WATER SHORTAGES
The Philippine Environment Code (1977) prescribes management guidelines to protect and improve the quality of the environment particularly the water resources. The protection of the surface water systems takes the form of water quality classification based on DENR Administrative Order 34 in 1990. At present the National Water Regulatory Board identified 421 principal river systems, of these only 168 (40 per cent) are officially classified (Deocadiz 1997). According to Deocadiz, classification of water bodies is an important component of water quality management especially in the application of effluent standards and ambient water quality criteria.
Watershed management is one of the areas prioritized in terms of the rehabilitation activities of the Government. It basically aims to increase forest cover and reduce sediment and pollution loads downstream (Deocadiz 1997). Other areas were the appropriate management of agriculture to reduce siltation and toxic chemicals-laden runoff in the river systems (for example, Pasig River, Boac River).
The JICA (1997) study provides a comprehensive review of the status of groundwater and surface waters, including an indicative water resources master plan. Last March 1997, UNEP SCS/National report Philippines Page 73
JICA completed the master plan study on the small water impounding management (SWIM) which was developed for the following purposes:
(a) Irrigation; (b) Watershed management; (c) Inland fishery; (d) Flood control; (e) Mini-hydro power generation; (f) Domestic water supply.
Out of 501 SWIM projects, 230 projects were selected for earlier implementation based on guidelines and development scales set by the Department of Public Works and Highways, National Irrigation Authority, National Electrification Administration and the Bureau of Soils and Water Management. Candidate SWIM projects by geographic water resources region are shown in the following table.
Table 5.1 Number of qualified SWIM projects by region and agency
Region No. No. of No. of qualified SWIM projects candidate (classification by agency) projects DPWH NIA BSWM I 63 41 6 24 II 62 35 4 31 III 63 27 1 17 IV 38 11 5 4 V 55 20 1 5 VI 15 9 1 8 VII 82 35 0 9 VIII 44 14 1 8 IX 14 8 0 7 X 25 10 0 10 XI 15 10 1 9 XII 25 11 3 8 Total 501 230 23 140
Note: DPWH = Department of Public Works and Highways NIA = National Irrigation Authority BSWM = Bureau of Soils and Water Management
5.3 ONGOING AND PLANNED ACTIVITIES TO REGULATE OVER-EXPLOITATION OF AQUATIC RESOURCES
The Fisheries Decree of 1975 (PD 704) covers all existing laws regarding fishery activities and the development of the fishery industry under Philippine jurisdiction. Aside from this, there are many initiatives regarding the management of Philippine coastal areas and resources. One of the major completed government programmes under the Department of UNEP SCS/National report Philippines Page 74
Agriculture is the fisheries sector programme. This is a five-year project (1990-1995) addressing the declining productivity in the marine fisheries and the deteriorating coastal environment. Twelve priority bays in the country were included in the programme, which involved an institutional network of government agencies, non-government organizations and academic institutions.
Jacinto and Gervacio (1997) explicitly enumerated the following objectives of the fisheries sector programme (figure 5.1):
1. To regenerate coastal resources, rehabilitate the coastal environment and alleviate poverty among municipal fishermen particularly through diversification of their sources of income;
2. To intensify aquaculture production, particularly for the benefit of domestic consumption but within the limits of ecological balance;
3. To induce commercial fishing away from overfished nearshore areas into offshore waters. UNEP SCS/National report Philippines Page 75
Figure 5.1 Fisheries sector programme (FSP) and coastal environmental programme (CEP) sites UNEP SCS/National report Philippines Page 76
The following were the six components of the programme: UNEP SCS/National report Philippines Page 77
I. Resource and ecological assessment which involves the appraisal of fisheries resources and ecosystems in priority areas, the establishment of a national fisheries information system to monitor fish stocks, habitats, ecological parameters and socio- economic indicators; II. Coastal resources management which involves the encouragement of community- based initiatives in resource management and resource enhancement measures, and the development of viable alternative livelihood projects to draw fishermen into other economic activities, thus relieving the pressure in overfished coastal waters; III. Research and extension which includes the preparation of a comprehensive national fisheries research programme, including the networking and upgrading of existing research facilities, provision of scholarships and training to meet long-term research and extension staffing needs; the conduct of priority studies and expansion of fisheries extension services. IV. Law enforcement which involves the training and logistical support to community- based task forces such as the local police, government personnel and the local fishermen; V. Credit which includes the support of income diversification programmes for small- scale fishermen, intensification of aquaculture production and identification of alternative financing schemes; VI. Infrastructure and marketing support which involves the establishment of post-harvest facilities such as fish landings, cold storage and processing centres; and research to develop and promote technologies that will reduce spoilage and upgrade the quality of fishery products.
The fisheries resources management project is one of the proposed projects to continue under the second phase of the fisheries sector programme which aims to 'reverse the trend in fisheries resource depletion with its long-term goals to obtain sustainable development in the sector and to reduce poverty among municipal fisherfolks' (Jacinto and Gervacio 1997).
An example of a national ongoing project is the coastal environment programme (figure 5.1, annex V). This aims to promote community-based sustainable use of resources in coastal areas by encouraging the use of environment friendly technologies, providing livelihood opportunities to coastal communities, promoting equitable access to resources and building DENR capacities in the management of coastal areas (Jacinto and Gervacio 1997).
The programme started in 1993 with 61 sites proposed all over the country involving about 168 organizations from the government and non-government sectors. According to Jacinto and Gervacio (1997) the strategies are community organizing (i.e., involvement of communities in the protection and management of coastal ecosystems), mobilization of financial and administrative resources from public and private sectors and the use of contingent approaches in identifying issues, problems and opportunities for human and environmental details.
The coastal resources management project primarily aimed to achieve sustainable management of the fisheries resources in coastal waters in selected areas in the Philippines (in Palawan, Visayas and Mindoro) in order to offset the current trends in resource degradation (Jacinto and Gervacio 1997). It involves stakeholders, local authorities and the relevant social and economic sectors in planning, implementing and decision-making. UNEP SCS/National report Philippines Page 78
The five components of the community-based coastal resources management project are as follows:
(a) Community management of coastal resources for widespread implementation; (b) Local government capacity-building; (c) National agency policy implementation; (d) Information, education and communication; (e) Special activities to enhance local and national capacity to support implementation. Integrated coastal management takes on a planning perspective that gives a broader coverage of the coastal resources management project (for example, the framework plan for Lingayen Gulf and the strategic environmental management plan for the Batangas Bay region). For example, the strategic environmental management plan covers the following key components (Deocadiz 1997):
(a) Legal and institutional mechanisms; (b) Integrated policy and planning systems; (c) Integrated management systems and technical interventions; (d) Management and technical skills improvement; (e) Information base improvement; (f) Sustainable financing development.
5.4 ONGOING AND PLANNED ACTIVITIES FOR APPROPRIATE LAND AND COASTAL ZONING
The coastal zone environmental and resource management project is under the auspices of the ASEAN-Australia Economic Cooperation programme (Phase III). The project focuses on 'institutional strengthening through development and maintenance of a national directory of coastal and marine data; and utilization of information technology tools to resolve national priority issues in coastal zone resources management through a case study'. Lingayen Gulf in north-western Luzon was chosen as the case study for the Philippines.
Some of the government-planned programmes regarding this issue are the following:
1. Municipal coastal environmental initiatives emanating from the industrial environment management programme and the coastal resources management project aiming to combine industrial pollution reduction and coastal zone management; 2. Development of a marine environmental master plan for the Philippines; 3. Mapping and land cover assessment of mangrove areas using small format aerial photogrammetry; 4. Strengthening of marine environmental monitoring assessment and conservation programme; 5. Geosciences for coastal and environmental studies; 6. Integrated coastal zone management project of DENR; 7. Integrated coastal zone management of industrially threatened biodiversity-rich bays and river tributaries of DENR in collaboration with Silliman University, the ICLARM, concerned local government units, industries in the area and local non-governmental organizations.
6.0 CONSTRAINTS TO ACTION
In the section 4 on root causes, mention was made regarding cross-sectoral and interactive relationships of water-related issues. This interrelationship often refers to the causes, which UNEP SCS/National report Philippines Page 79 are systemic in nature or linked in the pathway of the problem. Inherent in all the issues are the following constraints in:
(a) The understanding and scientific uncertainties of experts and the public; (b) Financial and economic capacity of the stakeholders in actualizing the solutions; (c) The policy environment, legal instruments, institutional arrangements and administrative and managerial capacity.
6.1 POLLUTION ABATEMENT AND WASTE MANAGEMENT
6.1.1 Information, scientific uncertainties and public awareness
As can be derived from the evaluation of the issues, causes and possible solutions, there are many information needs especially in areas outside Metro Manila and Cebu City. Only limited endowments in terms of technical and financial capacity for research and technical expertise are present in the north-western region except for areas such as the Lingayen Gulf where a growing collaborative effort is being undertaken by the institutions around the Gulf.
Information in the western areas in Palawan is only starting to be generated, especially in the Mindoro area. Around the area in Batangas, the initiatives by UNDP-IMO have provided the initial environmental and socio-economic profile of the area. This state of patchy and insufficient information on the levels of pollution and measures for waste management is prevalent in the areas mentioned earlier.
A wide range of uncertainties exists in the understanding of pollution effects, especially in terms of evaluating the cumulative and interactive effects. In addition, the relation of water quality standards and criteria to the health and well-being of biological organisms and ecosystems is not yet well understood. This is complicated by the inadequate monitoring and infrastructure which exists in these areas, both in terms of the point and non-point sources of pollutants. In many areas conflicting uses of the water environment are occurring which leads to inadequate regulatory mechanisms to deal with pollution. This often arises because of the absence of land and water use zoning classification.
A mistaken tautology exists which says that for every development there will always be wastes and pollutants. This perspective may also be related to the lack of public awareness of options in waste management and recycling approaches and techniques. Some areas in the EIA process are unclear and compliance and environmental monitoring are inadequate in providing appropriate solutions. Only a few success stories are available in pollution abatement and waste management. UNEP SCS/National report Philippines Page 80
6.1.2 Financial and economic
Inadequate allocation of financial resources for pollution abatement and waste management is prevalent to such an extent that the prevention of pollution is considered a luxury. Insufficient revenues in most of the municipalities constrain the setting up of sewage disposal and treatment facilities for the community. Environmental taxation schemes are not in place or are insufficient to make environmental management effective. In addition, market based interventions have not been established. The Environmental Guarantee Funds (EGF) are not yet fully operational and in many areas non-existent.
6.1.3 Legal, institutional and managerial
At present the mechanisms for taking into consideration the carrying capacity of ecosystems into a legal and institutional framework are not fully in place. Some initial guidelines in the establishment of a programmatic EIA have been hampered by the inadequate capacity of personnel to undertake ecoprofiles of whole bay ecosystems or island wide ecosystems. The criteria and management rules for allocating quotas to stakeholders are hindered by the lack of financial and economic valuation and pricing mechanisms for translating these measures into fees, permits and taxation. In addition, these socio-economic instruments are based on carrying capacity assumptions which have not been fully validated as practical applications in tropical resource management systems.
This framework also assumes that administrative and technical coordination with competent Department of Agriculture and DENR personnel are available, together with strengthened regulatory powers. Most often since both personnel and technical capacity may be limited, these constraints have to be overcome by capacity-building efforts at many levels of the institutional framework (see capacity-building aspects in section 7).
The success of the programmatic EIA also requires that a high level of participation takes place among stakeholders. Ideally, the set-up needs sufficient understanding and information to be available in order to have a good basis to make informed decisions on a diverse array of choices. In multiple use areas where some protected areas are situated, the local resource management councils or committees should have enhanced capacity to incorporate and manage the ecosystem concerns of the area.
6.2 WATER SHORTAGE AND DEGRADATION OF WATER QUALITY
6.2.1 Information, scientific uncertainties and public awareness
With increased usage of water resources more detailed information of water sources are needed. At present, there is insufficient information of water bores and the extent of reservoirs in watersheds. This is needed in order to evaluate the viability of water supply and degree of contamination of the water sources. In the face of these uncertainties it is often better to be on the conservative side and remember to apply the precautionary principle in water use. This also requires that mechanisms need to be established to enhance public awareness of water conservation measures and the ongoing status and dynamics of these resources (for example, the work being done in relation to the El Ni situation). UNEP SCS/National report Philippines Page 81
6.2.2 Financial and economic
Water resources management requires adequate public awareness and political will to implement decisively the needed measures with the participation of the community. Since water resources are a basic human and social need it should be an integral quality-of-life indicator. This means that this has to be linked to how public and private investments are placed into these goods and services and how the costs and benefits are allocated to the various stakeholders.
6.2.3 Legal, institutional and managerial
Water policy in the granting of water rights and the privatization schemes are not fully implemented and may have to expand their criteria in terms of sustainability and equity principles. In effect the pricing for water services is not yet clearly established.
It also presupposes that institutional arrangements in monitoring and evaluation are in place. At the moment they are still highly inadequate.
6.3 OVER-EXPLOITATION OF FRESHWATER AND MARINE RESOURCES
6.3.1 Information, scientific uncertainties and public awareness
In order to have sufficient capacity to implement regulatory and enhancement measures, knowledge of the maximum economic and sustainable yields and carrying capacities of the ecosystem are needed. To date, in many areas there are insufficient data inputs, which creates uncertainties in estimating the carrying capacities and sustainable yields in relation to the South China Sea. It is probably only in Manila Bay where sufficient information can approximate some estimation of maximum sustainable yield and carrying capacity. Batangas Bay and Lingayen Gulf may also have approached some level of understanding regarding the level of resources exploitation. In the Palawan area, most of the information and understanding of resource exploitation is quite limited.
6.3.2 Financial and economic
Some of the recommendations to diffuse and overcome the over-exploitation of resources suggest alternative and diversified areas of exploitation so as not to deplete the resources.
One of the alternatives is to encourage offshore exploitation and joint ventures with foreign investors. These options have not yet been well implemented as there have been many constraints in stimulating offshore exploitation and joint ventures. Insufficient financial resources and the prevailing economic deflation are not conducive for its implementation. Not enough financial resources are available to improve infrastructure, such as post-harvest and processing facilities. If these are established, greater effort should be taken to provide social services to the marginal fishing communities and the poor. This is constrained because of the large gap between the rich and poor which exists in the country. This affects resource allocation and access arrangements that result from resource management interventions. UNEP SCS/National report Philippines Page 82
6.3.3 Legal, institutional and managerial
Initially, the proposed fisheries code was lobbied in order to empower the marginal fishing communities and the supporting government institutions such as the Bureau of Fisheries and Aquatic Resources. The current bill has been watered down to provide loopholes on the provisions which profess to restrict the access of commercial fisheries in municipal waters. Concern from many scientific personalities suggests that the proposed revisions of the fisheries code are inadequate and may cater to greater resources use conflict between commercial and municipal fishermen.
Institutional arrangements of provincial organizations and local government units needs to be better defined in order to emancipate access and tenurial relations among the various stakeholders in the community. Critical to the improvement of regulatory mechanisms to prevent over-exploitation is the archaic licensing and permit procedures in the various agencies. These functions for government need to be expanded and, where appropriate, shared by the private sector.
6.4 HABITAT MODIFICATION
6.4.1 Information, scientific uncertainties and public awareness
Since underwater habitats and resources are difficult to evaluate and ecosystem responses to human alterations unclear, the scientific uncertainties are often large. Nevertheless, since these systems are dynamic and some habitat modification requires urgent action then management interventions may not be as ideal and efficient in responding to the needs of the situation. It is also important that the public is aware of these constraints so that undue expectations are minimized. Public awareness and education in the Philippine setting is a balancing act between not being sensational and not being boring so that the message for improved effective action is not lost in all the statistics.
6.4.2 Financial and economic
Since ecosystem understanding and management are often complex and need to be undertaken on a sufficiently large and appropriate scale, there are often financial and technical incapacities in the development and implementation of ecosystem management strategies. Increasingly, access to ecosystem services is not equitable.
Continued economic losses from habitat modification require greater expenditures than original ecosystem values. Restoration and enhancement efforts may not necessarily benefit the present generation and thus incentives to motivate action require innovative approaches.
6.4.3 Legal, institutional and managerial
Ecosystem and habitat management systems require that the concept be integrated in policy formulation. Presently, ecosystem level management is not yet clear in the consciousness of policy makers.
In addition, institutional arrangements and proper valuation of resource rents need to be incorporated in monitoring and control systems and operations. These conditions are not as easily forthcoming in the short term but can be undertaken possibly within the next five years. UNEP SCS/National report Philippines Page 83
7.0 SPECIFIC ACTION PROPOSED FROM IDENTIFIED ISSUES AND PROBLEMS
Various general principles for the sustainable development of the Philippine environment are embodied in the Philippine Constitution and the Philippine Strategy for Sustainable Development (see annex VI-VII). A recent draft for a comprehensive marine affairs policy also reinforces the country's commitment to address land and sea interaction (DENR 1997). A cabinet committee on marine environment policy also reaffirms some strategic actions proposed by Deocadis (1997) to address land-based pollution affecting the marine environment.
In order to plan and implement the following programmes proposed below, a national coordinating advisory council could serve as a programme management body under the cabinet committee for marine environment policy. This would facilitate the integration of lessons learned and enhance quick decisions for action. In addition, a database management system needs to be established within an information network system, which is interactive among the components of the programme through, for example, the National Environment Resources Information Centre (NERIC). It could incorporate a computer-based decision analyses support system similar to those of the SIMCOAST programme (see also Luna 1993 and the CZERM 1995). Critical to making informed decisions would be the information derived from resource valuation analyses such as cost-benefit approaches and other politico-economic considerations in various site-specific scenarios. Enforcement and political will are inherent elements in the effective implementation of the programmes which has to be taken in the context of public education and participation and the inputs derived from the monitoring, evaluation and control systems for each programme.
The proposed actions outlined below, as component programmes to address the general water-related issues, are broad guidelines which have generic and interrelated strategic and tactical action agenda. Each subcomponent requires further refinements with indicative financial planning and prioritization to phase the schedules and put into context realistic timeframes to actualize the programme milestones.
7.1 POLLUTION (POLLUTION ABATEMENT AND WASTE MANAGEMENT PROGRAMME)
Goal: Sustain industrial and agricultural development in the context of environmental sensitivity and minimization of environmental costs.
Objectives: (a) To proactively mitigate for pollution effects by the various industries (b) To minimize waste disposal from the various industrial sectors
7.1.1 The legal and institutional framework
The legal and institutional framework needed to mitigate pollution in water-related issues should:
(a) Establish legal and institutional mechanisms for environmental monitoring and compliance systems which involve public and private sector participation (i.e., such as the implementation of programmatic EIAs); (b) Facilitate market and non-market based interventions utilizing user pay principles; UNEP SCS/National report Philippines Page 84
(c) Utilize precautionary principles in which the onus of proof of compliance to environmental criteria and standards rests on the potential locator or source of pollutants.
7.1.2 Policy initiatives and indicative guidelines
Various initiatives and indicative guidelines need to be reaffirmed and consolidated to actualize national policies on water-related issues:
(a) Initiate classification and standardization of programmatic quotas on waste discharges to include cumulative, interactive and ecosystem effects of pollutants; (b) Implement guidelines for toxic and hazardous waste disposal; (c) Clarify how the allocation of market and non-market based revenues from user fees can be allocated for the optimum benefit of the most disadvantaged sectors; (d) Institutionalize policy review and evaluation to respond to adaptive management strategies.
A multisectoral policy advisory committee on pollution needs to be established. This committee to be chaired by the Environment Management Bureau, can facilitate the fleshing out of general and specific concerns for policy consideration.
7.1.3 Public education and participation (especially in pollution control and abatement and waste minimization)
In order to enhance the capacity of the public to participate in actions towards pollution abatement and prevention, a public education programme is needed. Such a programme facilitates consultations, consensus and ownership of outcomes derived from public action against pollution and moves towards appropriate waste disposal. The programme can primarily target the following sectors, their possible roles and targets:
(a) Strengthen the role of consumers in preventing pollution and in minimizing waste; (b) Enhance the role of family households in reducing pollution through the establishment and subscription of appropriate sewerage and garbage disposal systems; (c) Improve the multisectoral participation of the public and private sectors in monitoring and evaluating pollution abatement programmes.
7.1.4 Monitoring, evaluation and control system
Monitoring and evaluation mechanisms are cost-effective measures which facilitate feedback and control in tackling problems such as pollution. One of the most common strategies to prevent industries and other potential polluting firms from exceeding pollution standards and classification criteria is to establish a multisectoral monitoring group in their locality. This programme may address the mechanisms which enhances the monitoring and evaluation capacities in these localities and the strategic roles they can play in the planning and regulatory processes to prevent pollution and effect appropriate waste disposal.
These mechanisms require the coordinated action of multisectoral groups with clearly defined roles and responsibilities in the monitoring, evaluation and control system (MECS). The following priority strategies are needed:
(a) An enhanced technical capacity for MECS to be implemented by establishing and/or improving strategic pollution MEC centres; UNEP SCS/National report Philippines Page 85
(b) Improved interaction between the academic and government sectors to provide technical assistance and training to various multisectoral MECS groups; (c) An increased representation of civil society in the MECS groups and an increased role in consumer education, public awareness and private sector monitoring.
7.1.5 Capacity-building
There is a limited capacity to plan and implement solutions in water-related issues in pollution prevention and appropriate waste disposal. In around at least 20 priority hotspots in the country the inadequacy of human resources and technical facilities is prevalent. A considerable allocation of the Environmental Guarantee Fund in the municipalities can be budgeted for capacity-building requirements in these areas. Infrastructure investments (waste treatment and monitoring facilities) and technical support in training and other human resources development needs can be stimulated by appropriate sourcing of financial assistance. The following capacity-building strategy needs may be considered:
(a) Enhance the technical capabilities of human resources and the infrastructure base in at least 20 priority hotspots in the country; (b) Allocate funds for capacity-building in the Environmental Guarantee Funds of each municipality; (c) Sustain financial capacity through innovative financing schemes.
Capacity-building can be further facilitated by projecting the human resources development needs for each region. At least six PhD and twelve MSc scholarships for pollution monitoring, evaluation and control systems and related fields may be needed to enhance the success of a national integrated programme to control pollution and management disposal systems. Aside from enhancing the high level of management expertise in the country, assistance should be provided in the social preparation and capacity- building of various communities into local organizations.
7.2 FRESHWATER SHORTAGE AND DEGRADATION OF WATER QUALITY (SURFACE WATER ENHANCEMENT AND GROUNDWATER REHABILITATION AND MANAGEMENT PROGRAMME)
Goal: Enhance the surface and groundwater capacity and maintain water quality for sustained use and development in the near and long term
Objectives: (a) Improve water resources use and management (b) Rehabilitate insufficient water supply and degraded water quality conditions UNEP SCS/National report Philippines Page 86
7.2.1 The legal and institutional framework
Adequate and good quality water resources are basic requirements for society. The following integrated legal and institutional arrangements have been suggested:
(a) Strengthen legal and institutional support for integrated watershed management systems; (b) Enhance the legal framework of the management of the surface and groundwater resources especially the private and public interaction in the management process; (c) Assist the strengthening of institutional arrangements that prioritize water conservation and management of the regeneration of degraded water reservoirs; (d) Improve the legal and institutional powers of the water resources development boards at the local, regional and national levels.
The National Water Resources Development Board can take the lead in the formulation of a comprehensive and responsive programme with the participation of the stakeholders in the community.
7.2.2 Policy initiatives and indicative guidelines
In a move towards a highly deregulated water resources management system an integrated and strategic watershed and water resources management policy is needed. This policy framework provides the principles for a sustained development of strategic watersheds and increased quality services and goods for a rational freshwater and groundwater usage. Coordination and sufficient implementing powers to provide the teeth to enhance coordination is crucial to consolidate the deregulated environment into an effective sustainable development agenda.
(a) Improve the implementation of the water code through the clarification of roles and responsibilities; (b) Integrate actions needed in the coordination of general and specific needs of water resources management; (c) Establish mechanisms for the prevention of contamination of critical ground and surface waters and the maintenance of improved water quality standards and criteria; (d) Improve arbitration and conflict resolution procedures.
As mentioned earlier, the realization of the interrelated concerns of the issues are especially relevant for water shortages and reduced water quality. Thus it may be important for the NWRB to consider the best and appropriate cabinet department for implementation (for example, to be transferred to DENR).
7.2.3 Public education and participation
Public education and participation in water resources conservation and management should focus on the following priority concerns:
(a) How individuals and households can contribute to water conservation measures; (b) How non-governmental organizations and provincial organizations can assist local government units in community-based interventions in integrated watershed management; (c) How alternative and complementary measures of the different stakeholders can integrate the sustained development of water resources. UNEP SCS/National report Philippines Page 87
Since water resources and their associated services are one of the basic needs of human society, programmes on public education and participation of the private and public water utilities bodies may provide mechanisms whereby the priority concerns outlined above can be pursued.
7.2.4 Monitoring, control and evaluation
Water conservation and management efforts require proper monitoring, evaluation and control systems. A biannual review of the implementation of the proposed programmes in the master plan study on water resources management in the Philippines is needed (JICA 1997). Efforts can focus on some of the priority areas:
(a) Public and private waterworks use and rates monitoring; (b) Monitoring of the effectiveness of market and non-market interventions (pricing and market forces); (c) MECs on the effectiveness of watershed management on the charge and recharge capacities of groundwater sources.
Consumers and consumer groups can be primary targets to provide the motive force to participate in the MECs to complement government and corporate management initiatives.
7.2.5 Capacity-building
Capacity-building efforts in developing human resources and institutional capacity would need to emphasize the following concerns:
(a) Enhance the understanding and capacity of water resources users in implementing water resources conservation and management; (b) Improve institutional capacity in integrating watershed management to water uses; (c) Establish capacity to sustain the development of water resources without unduly reducing water supply and maintain their appropriate use values. (d) Establish capacity in the infrastructure base to cope with water shortage problems and provide adaptive mechanisms to detect and sustain water supply and quality; (e) Sustain financial capacity for integrating watershed management and providing an adequate water supply.
The capacity-building initiatives can focus in areas where there are considerable problems of water shortage and degradation of water quality (for example, in Metro Cebu and Metro Manila).
7.3 OVER-EXPLOITATION OF LIVING AQUATIC RESOURCES (SUSTAINABLE MARINE AND AQUATIC RESOURCES UTILIZATION PROGRAMME)
Goal: Sustain fisheries resource utilization and other resource extractive uses under the aegis of the carrying capacities of the multispecies resources. UNEP SCS/National report Philippines Page 88
Objectives: (a) Regulate harvests to assure sustained harvests in perpetuity; (b) Initiate resource enhancement measures in over-exploited areas; (c) Identify and establish strategic marine protected areas which are critical in providing the sustained replenishment of genetic and biodiversity resources.
7.3.1 The legal and institutional framework
(a) Clarify jurisdictional complementation and institutional coordination;
(b) Identify areas of overlap and utilize complementary confidence-building activities to minimize accentuating turf problems and distinguish responsibilities where specific roles are more appropriate. Example: Fishing boat licensing are distinctly BFAR's responsibilities whereas the dugong and marine turtle protection and management are under the DENR's Parks and Wildlife Bureau.
(c) Institutionalize inter-agency action programmes concerning aquatic and marine resources conservation and management into a unified implementing body;
(d) Facilitate the regularization of programmes through proactive administrative, financial and management planning; Example: Bay management councils and Fisheries and Agricultural Resources Management Councils (FARMC) should be made compulsory and other MOAs be given more implementing powers through appropriate legislation.
(e) Provide mechanisms to concretize sustainable use and allocation of benefits;
(f) Stimulate private and public sector cooperation through the modernization of commercial offshore fisheries and the establishment of a common fund;
(g) Institutionalize a multisectoral council (Marginal fishermen, local government units, government organizations and commercial fishing operators) to implement regulatory measures in resource use and afford equitable access arrangement;. Example: Many consultative bodies and networks are ad hoc bodies which are issue based and thus it is crucial that strategic programmes be put in place to implement sustainable fisheries and other marine resources management.
(h) Create a national and a regional fisheries management council;
(i) Harmonize economic and social incentives to establish comprehensive coastal community development (for example, livelihood opportunities and a proper mix for rural and urban areas).
7.3.2 Policy initiatives and indicative guidelines
The Philippines as an archipelagic country found in the highest marine biodiversity region of the world requires some important policy innovations and needs to implement the following indicative guidelines:
(a) Incorporate sustainable use principles such as the concept of carrying capacity and multispecies interactions; (b) Reform existing mechanisms which do not adequately address sustainable development objectives and implement appropriate quotas, taxation, licensing and permits etc.; UNEP SCS/National report Philippines Page 89
(c) Clarify management and development goals; (d) Clarify alternative measures to minimize growth overfishing; (e) Explore incentives for the exploitation of lightly exploited areas; (f) Encourage joint venture arrangements in international waters; (g) Implement coastal zoning and integrate fisheries management; (h) Allocate municipal fishery rights for small fishers; (i) Organize private fisheries interest groups; (j) Provide incentives for the commercial fisheries sector to fish farther in the EEZ; (k) Manage and regulate the exploitation of internationally-shared tuna stocks.
7.3.3 Public education and participation
Since the exploitation of living water resources is a multi-stakeholder situation, it requires a high degree of public participation and awareness. In order to achieve these, the following actions can be pursued:
(a) Incorporate the concept of sustainable use indicators and mechanisms into formal and non-formal education venues; (b) Encourage information and education campaigns (IEC) to facilitate participatory action based on a range of legal, scientific, and managerial mechanisms (for example, harvest controls with appropriate resource rents values through licensing, permits and other tax measures); (c) Facilitate regular multisectoral consultations to tackle urgent needs and plan proactively for future decisions and actions; (d) Strengthen environmental awareness; (e) Empower local of communities to enable them to make decisions and plans on the use and conservation of living marine resources and the provision as to how they may take part in implementing the plan.
7.3.4 Monitoring, Evaluation, Control and Surveillance (MECS) System
(a) Explore ways of viably reducing fishing effort through the licening and social pressure modes ; (b) Explore supplemental strategies for enforcing laws and regulations (for example, market and non-market incentive strategies); (c) Strengthen fisheries conservation through law enforcement and non-regulatory measures (for example, education); (d) Establish adaptive management mechanisms in the monitoring of resource uses and enhancement interventions; (e) Identify appropriate indicators to measure the impact or effectiveness of harvest regulations and other management interventions through question oriented research and applications for resource management; (f) Clarify management decisions based on monitoring and evaluation feedback and act accordingly at the right time, at the right degree and level. UNEP SCS/National report Philippines Page 90
7.3.5 Capacity-building
(a) Improve the personnel of the various levels of government organizations and local government units to implement the regulation of harvest controls and resource extraction through apprenticeship programmes and formal scholarship grants; (b) Enhance the absorptive capacity of institutions to efficiently utilize funds and sustain financial capacity after programme phase-out; (c) Allocate funds for human resources development in the various common funds for resource management and appropriate incentives for improved performance of harvest controls and resource extraction. (d) Establish and maintain infrastructure (for example, ships and equipment) to modernize government capacity to manage water-related resources.
7.4 HABITAT MODIFICATION (LAND CARE AND INTEGRATED COASTAL MANAGEMENT PROGRAMME)
Goal: To harmonize the land and coastal zoning and management measures in order to facilitate the sustainable development of the land and water ecosystems without undue stress from habitat modification
Objectives: (a) Establish land care measures (such as zoning and resource extraction regulations) which assure soil conservation and watershed management; (b) Initiate and establish a national functional zonation scheme for the country in order to harmonize multiple use sustainable development needs; (c) Integrate land and coastal zone development plans and implement appropriate management at various hierarchical levels.
7.4.1 The legal and institutional framework
DENR as the government institution that is in the strategic position and has the mandate to safeguard and manage our natural ecosystem can take the lead in pursuing the following actions:
Integrate land care (for example, agriculture and watershed management) and integrated coastal management through legislative enactment and other paralegal measures; (b) Enact appropriate land use and coastal zonation plans for all municipalities.
7.4.2 Policy initiatives and indicative guidelines
Policies and their appropriate guidelines, which tend to facilitate the integration of management initiatives, should be undertaken to be more effective. In this regard, the following principles can be initiated:
(a) Incorporate considerations of land and sea interactions into all land and coastal uses; (b) Effectively implement the principles of ecosystem carrying capacities and connectivities in zoning plans, together with doable implementing guidelines
7.4.3 Public education and participation
There is insufficient understanding and appreciation of the ecosystem values and services that are provided. Public education and participatory action researches are needed UNEP SCS/National report Philippines Page 91 in order to overcome inappropriate habitat and resource uses and transform these into actions that lead to their wise utilization. The following actions can be considered:
(a) Facilitate the awareness of the community into joint land care and ICM practices in the individual, household, village and municipality levels; (b) Enhance provincial, regional, national and global mechanisms for assistance, support and coordination; (c) Incorporate participatory education and action researches into the land care and ICM programmes.
Owing to the large extent of the needs for protecting critical habitat and ecosystem needs, enforcement measures through direct regulatory means and police action, though necessary, will be very expensive. Public education and participation in sustainable land and coastal zoning development and protected area management are cost effective alternatives and complementary to enforcement, surveillance, research and monitoring.
7.4.4 Monitoring, control and evaluation
(a) Improve the monitoring and evaluation of the impacts of land care and coastal management especially in soil conservation of agriculture practices and land and coastal conversions; (b) Sustain research into better agricultural and forest management measures to facilitate better control of erosion and minimize coastal conversion; (c) Incorporate adaptive and proactive feedback into research, monitoring and evaluation of land care and integrated coastal zone management programmes.
7.4.5 Capacity-building
There is an insufficient number of integrated coastal managers who appreciate the land and water interaction so as to adequately plan and manage these strategically important life support ecosystems. In order to address the capacity-building needs to assure the sustainable development of ecosystem services of the country, the following concerns have been proposed:
(a) Expand and strengthen the cadre of watershed managers who relate with farmers’ organizations to integrate and harmonize zoning with coastal zone planning and management to meet sustainable development goals; (b) Enhance the capacity of networks and coordinating institutions to facilitate the effectiveness of actions at all hierarchical levels (local, regional, national and global); (c) Sustain the financial viability of land care and integrate coastal management through the appropriate valuation of ecosystem services, inputs and outputs effects of these ecosystems, and implement a comprehensive revenue system for these values in order to sustain the use and equitable allocation of ecosystem benefits.
The priority action criteria are to assure the protection of strategic watersheds and critical ecosystem habitats which integrate land to sea water-related ecosystems. The need to consolidate and sustain a representative system of network integrated protected areas should be a priority agenda (i.e., at least one, large enough to be of national significance, in each of the ten marine biogeographic zones).
8.0 IMPLICATIONS OF THE PROPOSED ACTION BY SECTOR UNEP SCS/National report Philippines Page 92
The proposed actions will require adjustments both philosophically and pragmatically in various sectors. The priority sectors concerned in relation to the effective implementation of the programmes of actions to address the major water-related issues can be related to the cause and the solution to the problems outlined previously. In this regard, the actions should not be considered as separate sectors but as multisectoral and interactive with each other (see table 8.1 and figure 8.1). For example, the implications to the financial sector require that the economic sector pave the way to be able to sustain the capacity to implement the proposed actions. In addition, industries in the forestry, fisheries and agriculture sector require that regulations and harmonized programmes recognize and deal with their inherent and inter-sectoral water-related concerns (for example, the downstream effects of deforestation on agriculture and fisheries). The following are the possible conflicting policy imperatives in the socio-economic environment and the sustainable development needs:
1. Fisheries production needs for food as compared with the "carrying" capacity of fisheries and the conservation needs for the ecological integrity of the life-giving attributes of the coastal and marine ecosystems; 2. Pollution may be expected to increase and habitats change with the industrial trajectory of the nation (for example, the regional industrial centres and programmatic EIA, the mining act and tourism master plan); 3. Freshwater needs and habitat change together with increases in population create a greater demand at all levels of resource use and the governance which accrues from it (for example, the forestry master plan, the national integrated protected areas system act, and the water master plan). 4. Transboundary concerns in terms of living and non-living resources, together with the demands of global liberalization and breakage of trade barriers (for example, maritime and transboundary concerns).
Looking at the first area of possible policy conflicts listed above, the following concerns need to be addressed. One of the strategic issues which faces difficulty in achieving a consistent sustainable development trajectory is the concern for food security and the need to increase fish production in situations of dwindling resources. The national agencies concerned such as BFAR, PFDA and DENR, need to:
(a) Monitor and evaluate their production targets and the concomitant programmes; (b) Harmonize policies towards a common sustainable development agenda; (c) Coordinate the short- and long-term implementation of its action. UNEP SCS/National report Philippines Page 93
Table 8.1. Matrix of past and present policies affecting the use of coastal resources (see also figure 8.1)
Economic policies Coastal activities affected Environmental impacts A. Applicable incentives from Preferred areas of investment Board of Investments which vary yearly, for 1989; (Executive Order 226) - Income-tax holidays Ø Capture fisheries Ø Increases fishing - Tax and duty (upgrading and intensity/ and stock exemption from imported modernization of vessels) depletion capital - Tax credits on Ø Fry production for sea Ø Decreases pressure on imported capital, feeds bass, grouper, milkfish and wild fry but may put for grow-out and raw spiny lobster pressure on culture materials environment
Ø Seaweed production Ø Decreases pressure on wild stocks; widespread seaweed farming may disturb coral reef ecosystems
B. Interest rate subsidies Activities financed such as pond Encourages mangrove (through, e.g., Biyayang construction and improvement, conversion into fishponds; Dagat Programme) and shrimp farming, among others encourages capital guarantee schemes intensive production technologies; provides alternative employment to fishers which may reduce fishing pressure C. Tax exemption and Fishing in international waters Reduces fishing pressure drawback schemes for fuel on the country’s EEZ (Executive Order 1047)
D. Subsidy on diesel fuel Nearshore and offshore fishing Increases fishing pressure operations on offshore and nearshore stocks
E. Subsidy on inorganic Fishpond aquaculture Promotes intensive culture fertilizers methods; possibly slows down mangrove conversion to ponds
F. Reduced import duties on Commercial fishing operations Increases fishing pressure (used) fishing vessels, (presumably on offshore fish on offshore stocks factory ships etc. (Executive stocks) Order 364)
Source: Padilla and de los Angeles 1992. UNEP SCS/National report Philippines Page 94
Figure 8.1 A coastal cross-section documenting major interrelationships between economic policies and the utilization of coastal resources in the Philippines (Padilla and de los Angeles 1992)
Some of the possible mechanisms to facilitate the monitoring and evaluation of the targets and programmes are through the following:
(a) Enhance the sharing of resource information on the status and use of the marine and freshwater resources and habitats through the a national environmental information system (for example through the National Environment Resources Information Centre); (b) Foster participation of stakeholders in monitoring and evaluation, as partners in public education and in the feedback process of adaptive management; (c) Restore and enhance the life-support functions of critical ecosystems through the development of more marine protected areas and sustainable types of aquaculture which considers equitable access of other stakeholders in the longer term perspective.
In addition, the harmonization of goals and the coordination of the implementation of the action programmes require that the Philippine Agenda 21 be consonant with the proposed PLAN 21. Greater emphasis should be made on establishing an archipelagic focus in national policy (i.e., in PLAN 21). This sustainable development strategy implies the delicate harmony of use and development takes into consideration the ecosystem conservation needs of development. Appropriate matching of production targets needs to be clearly defined with adequate environmental safeguards (for example, aquaculture proliferation) through resources conservation (for example, establishment of marine protected areas) and management (for example, fisheries regulation and management). The present state of marine affairs in the country is still wanting in these concerns.
The second possible conflict concerned pollution and industrial development. Pollution may be expected to increase and habitats change with the industrial trajectory of the nation. One of the strategic mechanisms which requires urgent implementation is the UNEP SCS/National report Philippines Page 95 establishment of integrated coastal and land-use zoning. The establishment of functional zones (i.e., tourism zones, marine protected areas, and regional agro-industrial zones) which are harmonized with ecological and sustainable perspectives needs more comprehensive guidelines and an effective EIA system. Pollution loading and conversion of habitats, which threaten the existence of adequate ecosystem services, require the incorporation of improved procedures. Improvement should incorporate the projection of cumulative human impacts on the environment in appropriate spatio-temporal scales, and the cost and benefits of ecosystem services vis-à-vis conversion and other uses.
The proliferation of strategic master plans in the various sectors (such as tourism, forestry and mining) shows an inadequacy and lack of appreciation of the coastal and marine impacts of these developmental thrusts. Since more and more of these plans are being implemented by government programmes, then the involvement of the public and private sector should be enhanced. In order to obviate increased wastes and minimize pollution and coastal conversion, the following can be of priority concern:
(a) Minimize siltation and pollution from the various human settlements, industrial growth areas and poor agricultural practices. This necessitates the development of coastal and marine development plans which facilitate coordination of the hierarchical concerns of local (barangay and municipal levels), provincial, regional, national and global responsibilities and commitments;
(b) Utilize innovative market and non-market interventions among the various stakeholders;
(c) Incorporate precautionary and user-pay principles into the EIA system and include this consciousness in most urban and rural activities in the various sectors.
The third area of conflict concerned freshwater needs and habitat change together with increases in the population. An inadequacy in the present manifestations of the strategic policies of the forestry master plan, and the national integrated protected areas system act is apparent. An appreciation of the holistic attributes of the ecosystem services is lacking in the evaluation of their implications to natural resources management decisions.
This can be illustrated in the following examples:
(a) Emphasis on the amount of sustainable timber utilization is the prevalent basis for much of the area targets for the maintenance of forest areas in the country instead of determining the area needed to maintain a sufficient water supply in the watersheds and minimize soil erosion and siltation of downstream receptors;
(b) Representative sites within the NIPAs needs to be improved from that based on mammalian biogeographic distribution to a network of protected areas which does not only consider the corridors of dispersal of organisms but also the ecosystem connectivities of habitats and human societal needs;
(c) The appropriate mix of surface water uses in industrial, municipal and agricultural sectors does not adequately consider the cumulative ecosystem impacts, for example, dams for hydroelectric power and cooling water. These constraints require that the seemingly disjointed localized and fragmented impacts at the different sectors be evaluated in an integrated manner. For example, the emerging technologies in UNEP SCS/National report Philippines Page 96
alternative energy generation and the rates of consumption and production levels should wisely balance the short-term needs with those of the next generation.
The fourth area of conflict concerned living and non-living resources, together with the demands of global liberalization and breakage of trade barriers. With quantum leaps in the information age, decisions are made faster without adequate information inputs of ecosystem values. Decisions to open shorter maritime routes may lead to the extinction of the last populations of migratory birds and marine turtles which move from the South China Sea to the Turtle Islands. The interference of reproductive events, larval dispersal and tuna migratory patterns from increased transport activity (for example, ballast water introduction of exotic species and higher probability for oil spills) causes recruitment collapse. The cluster of coralline islands and shoals in the Spratlys is not only one of the richest marine biodiversity centres in the world but is increasingly gaining a wide variety of uses from military reservations, tourism, fishing, and mining.
In addition, increased tension from conflicting claims in the South China Sea may potentially cause environmental disasters if there is military conflict. A military engagement may cause greater navigational hazards, ship sinkings and the destruction of offshore oil wells in Brunei or from the offshore oil and natural gas development of the western coasts of Palawan. The proposal for stewardship arrangements for marine biodiversity conservation to be fostered among claimants in the South China Sea area may be an important honourable mechanism for the countries in the region. The establishment of a transboundary marine protected area for all to preserve in perpetuity may be a worthwhile lasting legacy of this TDA project.
8.1 FINANCE
8.1.1 Financial planning and sustainability
The recognition of the need to incorporate environmental costs in water-related issues, as in all other environmental concerns, requires that appropriate mechanisms on how to provide funding sources and rationalize areas in the national budgetary framework be established. In order to sustain development without unduly jeopardizing the future generation’s access to these ecosystem services and benefits, at the very least the allocation of the country's financial resources should at be the level of $9 billion (assuming 3 per cent environmental cost of GDP, de los Angeles and others 1993).
The present EIA system has incorporated the concept of an Environmental Guarantee Fund (EGF) as a mechanism for applicants seeking an environmental compliance certificate. How effective and how best to utilize these instruments should be made a major component of the action agenda of the Government.
At present, in addition to establishing some degree of environmental investment indices as a step towards estimating the allocation of the municipal development fund, internal revenue allocations and other taxation and fees schemes might be considered. Other innovative mechanisms can also be elicited from the private sector and international financial institutions (for example, environment credits and productivity based indicators) and the public sector (for example, debt for nature swap). Moreover, it is important to explore the means to actualize and expand the coverage of implementing the user-pay principles into both financing and investment mechanisms.
8.2 ECONOMIC DEVELOPMENT UNEP SCS/National report Philippines Page 97
8.2.1 Sustainable healthy environment integral to development
As indicated in many environmental and natural resource accounting initiatives, the costs to the environment of development projects and other ongoing human activities should be an integral consideration in the evaluation and eventual implementation of control mechanisms.
More comprehensive ongoing investigations need to be undertaken to determine whether incorporating considerations of environmental costs into many or all economic activities has a direct impact on economic growth (Cruz and Repetto 1992, de los Angeles and others 1994 and Montes 1994). The combined effects of the present economic crisis and stabilization policies (for example, exchange and interest rates) which have led to unemployment and income decline needs to be met with adequate safety nets to prevent increased pollution, over-exploitation and habitat degradation.
At least this lack of information did not deter President Fidel V. Ramos from espousing the goal of becoming an Asian green tiger (AsiaWeek 1996). These attempts are also seen in some of the national policy statements especially in the Philippine Agenda 21 known as the Philippine Strategy for Sustainable Development (PSSD) which the National Economic and Development Authority (NEDA) serving as chair through the Philippine Council for Sustainable Development (PCSD). The quest for economic growth by becoming a newly industrializing economy within a highly competitive global economy has both positive and negative aspects in relation to the environment.
Enhanced recognition of the importance of a sustainable environment and natural resources has positively affected economic activity. Increasingly these factors are incorporated into annual projections of how they may affect expected targets of annual growth and diversification of economic activities (for example, the El Ni phenomenon, water shortages affecting food production). In addition, the appreciation of questions on the allocation of costs and benefits as a crucial concern in evaluating environmental and natural resources and services as a corollary to the criteria of economic growth per se is encouraging. The consideration of rates of change and the proper timing and allocation will be important determinants in dealing with the positive (sustained use and development) and negative (increasing costs from environmental degradation and depletion and unsustainable development) effects of the nation's development trajectory.
8.2.2 Sustainability and equity
As mentioned earlier, the implications of decisions and actions which consider the sustainability of water-related environmental goods and services should also integrate the implications on how the costs and benefits are allocated. These considerations in principle have a basis in the Social Reform Agenda. For example, embodied in the agenda are the concerns for preferential use rights for marginal fishing and indigenous communities. More often capacity-building mechanisms are required in order to pave the way for the appropriate manifestation and concrete pursuit of the sustainable development of the marginalized or disenfranchized sectors in society.
Cruz and Repetto (1992) have suggested that there is a need to strengthen resource rent and property taxation. On the other hand, Montes (1994) further cautions that not all environmental outcomes can be understood in terms of the impact of pricing policies; for example, the distribution of income and asset control and regulatory capability are also important. Safety nets are needed for an increasing number of poor Filipinos who are UNEP SCS/National report Philippines Page 98 suffering from economic contraction and reduced access to dwindling resources and unfair competition with the elite. Provision of credit for livelihood activities through cooperatives and people’s organizations should be expanded through greater contributions (for example, taxes) from the elite.
Montes (1994) has suggested that barring significant social restructuring (for example, sufficient access control through agrarian reform and controlling the entitlement of the elite to water-related resources), increasing the technical ability of the bureaucracy, strengthening groups outside the formal state apparatus and reorienting external assistance (for example, debt for nature swaps) can be second best interventions.
8.3 FISHERIES
8.3.1 Food security and sustainable fisheries
An often repeated dilemma is how to attain food and cash security and at the same time control pressures resulting from the increased over-exploitation of the water-related environment and resources. Reducing fishing effort through alternative livelihood activities has been proposed, activities that are not solely based on extraction or harvests from the fisheries sector. However, this does not deal with the question of the possibility of food shortages. At the moment, no creative strategic food supply projections have been explored in terms of their carrying capacities and other scenarios for alternative production and feeding modes.
For example:
1. Since many of the water-related habitats are downstream receptors constrained by light and nutrient conditions, only a certain carrying capacity can be sustainably accessed by a population; the appreciation of limits to growth, especially in the water ecosystem, requires that in the long term both the supply and demand side (for example, family planning) capacities should be appropriately addressed.
2. The dietary preference of the population and a re-examination of the mixture of production targets of high value and low cost protein sources such as fish should also consider the impacts on the ecosystem.
3. Food security projections should be rationalized with sustaining the supply side of fisheries (both in the wild harvests and aquaculture).
8.4 AGRICULTURE
The importance of fisheries as a critical food source has guaranteed that it be considered primarily as a concern of agriculture despite its specific ecosystem characteristics which are different from a terrestrial ecosystem. This misconception of the water environment has been transposed to the idea that the water ecosystem's carrying capacity can be enhanced in the same way as agriculture approaches such as nutrient enrichment and predation control. In some mariculture systems these similarities can exist only to a limited extent especially because of the different thresholds of light and nutrient constraints. Moreover, the fluid nature of how light and nutrients are utilized as mediated by hydrography and topographic attributes are different.
Human society's increased appreciation of the water world's specific uniqueness can pave the way to the emancipation of agriculture systems into a more integrated and UNEP SCS/National report Philippines Page 99 ecologically based perspective. Increasingly polyculture and integrated farming systems are incorporating ecologically sound approaches to food production and trade. Will it be possible to set ecozones and buffers and agriculture and productive centres which may pave the way to demarcating areas for agriculture zones while still maintaining critical watershed areas and meeting food security production targets?
In the short term, the urgency of some concerns are deflected from the root causes. For example, the shortage in rice production may be linked to the reduction of rice lands because of conversion into subdivisions and industrial zones. In addition, watershed and irrigation areas are being converted to other functional uses such as golf courses thus changing the food production and ecological capacities of these ecosystems.
Cruz and Repetto (1992) have aptly noted that structural adjustments could eliminate bias against agricultural activities that are environmentally friendly. In addition, improved access to agricultural resources by the poor would have favourable economic, social and environmental effects.
8.5 FORESTRY
8.5.1 Watershed management and silviculture
As in the agriculture sector, an increasing appreciation of the ecological functions of the forests, separate from the timber industry, has changed the perspective for the sustainable development of the forestry sector. The problem of erosion and the conversion into agriculture areas have been tactically approached through integrated agroforestry schemes (OECF 1997). Replanting and reforestation are becoming more integrated, rehabilitating and enhancing its hydrologic and erosion buffer value. The problem of the degradation of forests in watershed areas despite their proclaimed priority use and value as a source of water and erosion and nutrient buffer is starting to be afforded high protection status. If this positive trajectory is to be expanded and consolidated, an even greater capacity in this sector is needed so that it can absorb proposed programmes that are introduced. There have been some initiatives at providing cross-sectoral programmes in order to address these water-related issues such as the central Visayas resources programme and the OECF-ICZM programme in southern Mindanao. It is important to note that the modalities and mechanisms for coordination within these sectors can be improved especially in the following areas:
(a) Minimize the turf and jurisdictional concerns of the Department of Agriculture and DENR though coordinated efforts at enhancing technical assistance to local governments;
(b) Clarify the roles and responsibilities of local government units and the participation of the stakeholders;
(c) Enhance the capacity-building of concerned stakeholders to implement the desired programmes.
8.6 MANUFACTURING
8.6.1 Industrial zones UNEP SCS/National report Philippines Page 100
Increased pollution loads and social pressure have facilitated a slow realization especially for the bigger manufacturing industries that in future it cannot be business as usual. In the past, when the business climate was bad the environment was the first to suffer. A paradigm shift is very slowly emerging among emancipated industrialists that has facilitated their willingness to pay the environmental costs for the use of environmental goods and services. The sharing of environmental and resources costs can be facilitated by government and civil society. Some examples can be seen in how the environmental guarantee funds are established and implemented. The allocation of sharing the costs and benefits is critical in order to sustain the harmonious relationships of the different users. It is critical that the cost sharing responsibilities arrive at some equitable arrangements to harmonize their goal for sustainable development. These concerns refer to how taxation and incentives, together with in-kind contributions (for example, environmental monitoring services) actually affect big and small manufacturing companies. Some investigations by the industrial environment management programme with assistance from USAID provide important guidelines to evaluate and respond to the implications of water-related programmes to the sector. Important are the market and non-market instruments which are proposed to overcome the resistance to change in the monitoring, control and evaluation of environmental cost sharing mechanisms.
8.6.2 International maritime areas
The transport of goods and services and the utilization of maritime areas both domestically and internationally will have increasing importance especially in transboundary concerns. Despite the ratification by the Philippines of many international protocols and conventions the commitment can be found wanting in the actual implementation of these agreements. Harnessing the political will and capacity requires that the sector is provided sufficient support in exchange for specific roles and responsibilities for such assistance. In order to facilitate programmes such as pollution abatement and waste minimization in the transport sector, the concessionary credit facilities necessary to stimulate infrastructure investment needs to be established. Initiatives need to be taken together with technical assistance in human resources and curricular development to enhance the technical skills and knowledge of the transport sector (especially maritime).
In addition to the water based transport facilities, land and transport infrastructure (for example, roads and ports) have made considerable habitat changes, which both directly and indirectly relate to water utilization. Directly, road construction (including reclamation for coastal roads) and development of communication facilities (underwater cables) have profound effects on habitat integrity. Development in these sectors should seriously consider how erosion can be minimized and siltation impacts on the water environment reduced. Indirectly, the profound effects in increasing access to watersheds, forest areas, coastal and marine habitats are often not adequately considered. In the programmes of action mentioned above careful consideration in the transport and maritime industry and the linkages to transboundary areas should be given in the planning and implementation of integrated coastal and land use plans.
8.7 MINING AND ENERGY
The stimulus for increased investments in the mining sector and the implications of how the action programmes can provide for a environmentally friendly mining industry is a difficult but important task. The programmes to deal with habitat modification and extraction of resources, together with the responsibility for pollution abatement and waste management, require the following considerations: UNEP SCS/National report Philippines Page 101
(a) Identification of strategic mining areas and energy development and the setting of industry quotas as targets to evaluate the effectiveness of waste treatment;
(b) Agreement on a sustainable development rate that considers the recovery and regeneration rates affected by habitat modification and extraction activities;
(c) Safety and environment planning will be integrated as part of an integrated management practice.
(d) Classification of strategic areas to be identified so as to harmonize priority uses for mining zones, which should not contradict strategic national and local protected areas and other land and water use classifications.
8.8 Urban and rural development regimes
The criteria for choosing priority areas for programme implementation and the process of producing the most effective impact ranges from highly urbanized areas to the least developed rural areas. To evaluate the effectiveness of water-related issues, replicate samples are needed from a hierarchical and nested representation of a gradient of high to low gravity of the problems and causes. The prioritized list derived from the set of decision criteria provides some decision rules whereby adaptive management mechanisms can be learned and practised at the same time. In effect the implementation of the action programmes have the following expected outputs for representative human settlement and development regimes:
(a) Representative zoning master plans of inland waters and coastal zones which implement integrated waste management systems, pollution abatement and sustainable fisheries management;
(b) Implementation of participatory action research, development interventions and adaptive management based on the plans and guidelines;
(c) Evaluation of the effectiveness of management measures at the different stages of implementation, including process documentation of lessons learned and analytical instruments.
National and local government counterparts may need to be identified in conjunction with the participation of concerned stakeholders in the civil society.
8.9 LABOUR
The effect of the programmes will most likely expand employment opportunities so that a new labour force may emerge to provide for sustainable environmental goods and services. At present, the specific and general role of the labour sector is not well recognized and thus not as well developed in the Philippines. Only in the recent decade have environmental issues been incorporated into labour and management collective bargaining agreements. Urban and rural workers will have varying manifestations of how they will relate to the various water-related issues. Their strategic role in the production process makes them crucial in the effective implementation of solutions to water-related issues. In addition, the heavy dependence of the nation on remittances from overseas Filipino workers may in fact further facilitate interventions in the transboundary concerns of water-related issues (for example, those in the maritime and mining industries). UNEP SCS/National report Philippines Page 102
The interrelated concerns of unemployment, poverty, and population pressure have a profound effect on the marginal resources such as the watersheds and coastal areas. A failure in economic expansion produces net upland and coastal migration into open access areas. These tend to increase the degradation and depletion of upland watersheds and coastal zones and fisheries resources.
8.10 CONSUMERS
Consumers are an important sector in the pursuit of market and non-market instruments as part of the solutions to water-related issues. A comprehensive approach at the individual and institutional level is required. Responsible and proactive consumerism can be a potent force especially in public awareness and education campaigns. Sustaining the consciousness of consumer protection as linked to environmental action will require considerable capacity-building (for example, organizing consumer groups) and social preparation. The recognition and actual effect on prices of value added products, which are environmentally friendly, are highly dependent on consumer sensitivity and social pressure.
9.0 SUMMARY
This country report aims to facilitate the establishment of a "report card" system on water-related issues of the Philippines which can be compared with information from other countries in the UNEP-East Asian Seas region. The attempt to identify transboundary concerns within the South China Sea is important especially to the coastal States bordering it. The Philippines is one of the countries occupying the eastern border of the South China Sea and is dependent on the South China Sea as an important life support system. In addition, the Philippines is one of the claimants to the Spratly islands, wherein the Kalayaan Island Group occupies a portion of the contested area. Despite the conflicting claims the transboundary concerns of the water-related issues, pollution, water supply, over-exploitation and habitat modification, are concerns of all the coastal states. Highlighting the gravity of these concerns are attempts to estimate the socio-economic losses that may be accrued from these stresses. A wide indicative range of around $0.3 - 9 billion annually has been suggested.
As an archipelago, the major concerns of the Philippines focus primarily in the western part of the country from the northern area in the Batanes region and north-western Luzon to the southern sections of Mindoro and Palawan.
Regarding pollution the highest concern is around the Metro Manila area, and of intermediate concern is the Lingayen Gulf and Batangas-Verde Island Passage area and to a lesser degree the area in north-west Palawan. Water shortages and contamination of freshwater supplies follow a similar pattern of concern as both are related to population growth and urban development. Over-exploitation of living resources and habitat changes are also associated with these development trends, although understanding the natural variability of ecosystems and natural populations cautions us not to trivialize and make broad generalizations. The reiteration of the need to incorporate the concept of carrying capacity and sustainable yields in good management practice is also necessary.
Inversely, the importance of establishing protected areas can focus on a network of large national representative sites of highly sensitive areas such those in western Palawan (including the Kalayaan Island Group) and the Batanes region. UNEP SCS/National report Philippines Page 103
Understanding and action leading to adaptive management approaches also has to be pursued in the context of the proposed social-economic options available in the areas concerned. Since the issues are caused primarily by human activities interacting with the environment, then interventions have to deal with the holistic nature (i.e., natural and man induced) of the problem. Specific actions are proposed for each issue ranging from: (a) the policy concerns and guidelines for action, (b) legal and institutional arrangements, (c) monitoring, evaluation and control mechanisms, (d) public education and participation and (e) capacity-building needs.
Although all the concerns are interrelated in a geographic and issue perspective, treatments per topic are made only for emphasis. But time and again, mention is made of the need to consider the interconnected nature of transboundary issues (for example. pollution and endangered species and habitats). In addition, the context of how they are going to be solved requires an appreciation of the necessary complementary action from the local, national, regional and global setting. Intersectoral coordination will facilitate integrated action in a multidimensional regime. UNEP SCS/National report Philippines Page 104
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