LIST OF ACRONYMS

AO – Assisting Organization

AP – Assisting Professional

CBFM – Community-based Forest Management

CBFMA – Community-based Forest Management Agreement

CO – Community Organizing CRMF – Community Resource Management Framework CSD – Comprehensive Site Development

DAO – Department Administrative Order DA – Department of Agriculture DBM – Department of Budget and Management DENR – Department of Environment and Natural Resources DOH – Department of Health DSWD – Department of Social Welfare and Development FSP – Forestry Sector Project

GIS – Geographic Information System

GPS – Global Positioning Satellite System

ICM – Inspection Chart Mapping

IEC – Information, Education, Campaign

IGP – Income Generating Project INEC – Ilocos Norte Electric Cooperative IPBA – Institutional Project Benefit Assessment JBIC – Japan Bank for International Cooperation LGU – Local Government Unit M & E – Monitoring and Evaluation MC – Memorandum Circular MNSI - Mother Nature Savers, Inc. MOA – Memorandum of Agreement NFDO – National Forestation Development Office NGO – Non-government Organization NIA – National Irrigation Administration PO – Peoples Organization PMO – Project Management Office QCP – Quarterly Commitment Plans SEC – Security and Exchange Commission SEFI - Sustainable Ecosystem Foundation, Inc. SMP – Survey, Mapping, and Planning SSPA – Stud Seedling Producers Association SUSIMO – Subproject Site Management Office SUFAI – Samarca Upland Farmers Association, Inc. TA – Technical Assistance TREES – Tropic Resources Ecosystem and Extension Services, Inc.

TABLE OF CONTENTS

Executive Summary ------i

I. Subproject Description ------1 1. Purpose/ Objectives 2. Subproject Scope and Dimension A. Comparison of Original and Actual Scope and Dimensions B. Reasons for Revision/ Modification Of Scope and Dimensions C. Contribution of Subproject to Relevant (Sub) Sectors

II. Subproject Implementation ------14 1. Organizations for Implementing Subproject 2. Implementation Period 3. Subproject Cost 4. Comments on Performance of AO, AP, PO, M&E, and Infra Contractors 5. Other Matters Relating to Subproject Implementation

III. Action taken by the AO, AP, and PO ------28 Relating to Recommendation(s)

IV. Initial Operation and Maintenance Of the Subproject Facilities ------29 1. Present Condition of Facilities 2. Organization for Operation and Maintenance 3. Annual Budget or Actual Expenditure For Operation and Maintenance (by year) 4. Maintenance Method

V. Benefits Derived from the Project ------40 1. Indirect Effects

VI. Conclusions and Recommendations ------42

LIST OF TABLES:

Table 1 : Trainings Attended by the PO ------43

Table 2 : Subproject Performance ------45

Table 3 : Subproject Site Management Office Equipments ------46

Table 4 : Trainings Attended by the SUSIMO ------47

Table 5a : Fertilizer Lending Livelihood Project ------48

Table 5b : Sari-sari Store Livelihood Project ------49

Table 5c : Swine Dispersal Livelihood Project ------50

Table 5d : Goat Dispersal Livelihood Project ------51

Table 5e : River Resort (Videoke and Cottage Rental) Livelihood Project ------52

Table 5f : Seedling Production Livelihood Project ------53

Table 5g : Poultry Livelihood Project ------54

Table 5h : Trucking Rentals Livelihood Project ------55

Table 6 : Subproject Status Report ------56

Table 7 : SMP Cost Estimate Per Activity ------57

Table 8 : Community Organizing Cost Estimate Per Activity ------58

Table 9a : Cost Estimate for Agroforestry Plantation Per Activity ------59

Table 9b : Cost Estimate for Rattan Plantation Per Activity ------60

Table 9c : Cost Estimate for Plantation Species/Reforestation Per Activity -- 61

Table 10 : Monitoring and Evaluation Cost Estimate Per Activity ------62

Table 11a : Infrastructure Project ------63

Table 11b : Infrastructure Project ------64

Table 12 : Annual Work and Financial Plan ------65 ANNEXES:

1. Organizational Structure ------70

1a. PO 1b. M & E Contractor 1c. SUSIMO 1d. Infrastructure Contractor

2. Pictures ------74

3. CSD Accomplishment Map ------76

EXECUTIVE SUMMARY

The Community-Based Forest Management Program (CBFMP) revolutionized forest development and rehabilitation efforts of the government when it was institutionalized in 1995 by virtue of Executive Order No. 263.

Before the adoption of the CBFM approach, the sole motivating factor of contract reforestation awardees was primarily financial gains. With the implementation of the Forestry Sector Project ( FSP ) using CBFM as its main strategy to rehabilitate the upland ecosystem, it empowered beneficiary communities economically, socially, technically and politically while transforming them into environmentally responsible managers. The tenurial right to develop subproject sites alongside the various inputs from the Subproject deepened their commitment to collaborate with other stakeholders in the implementation of these subprojects.

The Laoag (Madongan) Watershed Subproject is located within two municipalities in Ilocos Norte: Marcos and Dingras covering Barangays Cacafean and San Marcelino in Marcos and Dingras, respectively.

The rehabilitation of the watershed is significant primarily because it supports an irrigation facility, the NIA Dam, that supplies the water requirements of agricultural lands of Marcos and Dingras, considered the rice granaries of Ilocos Norte. It is also important for the enhancement of ecological balance as well as the improvement of socio-economic status of the communities in the area through provision of employment and livelihood.

Of the targeted 2,447.00 hectares of open grasslands, brush lands and residual forests to be rehabilitated, only 1,869.56 hectares were accomplished by the Samarca Upland Farmers Association Inc. (SUFAI). Revision was made to consider this as the reduced target and accomplishment as well. Consequently, the comprehensive site development cost went down from PHP40,119,898.00 to PHP31,807,219.00 due to other unaccomplished activities.

Still, involvement in CSD and infrastructure activities provided employment to 114 members, 19 of whom are women and generated a total of 231,253 man days. The women were employed in the maintenance and protection of the plantations.

The Subproject definitely raised the income of its members. From an annual household income of PHP70,000.00 from off and on-farm activities, it increased to an average of PHP93,000.00.

The 2.5 km-farm-to-market road and the hanging bridge as Subproject infrastructures provided mobility for residents as well as ease in transporting their products during market days.

With the issuance of the CBFMA for the 2,699 hectares, hopes are high that the communities can very well manage the entire area having been empowered with development trainings on various aspects like administration, financial management, leadership among others.

SUBPROJECT COMPLETION REPORT

OF

LAOAG WATERSHED-MADONGAN SUBWATERSHED REHABILITATION SUBPROJECT

Forestry Sector Project Loan Agreement No. PH-P 135

I. Subproject Description

The Madongan Subwatershed covers the municipalities of Dingras and Marcos in Ilocos Norte and one of the tributaries of Laoag (Padsan) River. The Subproject lies between 18º02’ and 18º15’ latitude and 120º45’ and 120º50’ longitude. It is bounded by a reforestation project on the northwest portion, communal forest of Dingras on the northeast, and timberland in the eastern and southern parts.

The Subproject is about 2.0 kilometers from Barangay San Marcelino and 1.5 kilometers from Barangay Cacafean. It is accessible by any type of vehicle.

The entire area of the Subproject is generally mountainous with some hilly portions. Moderately steep slopes characterize the lower hills towards the west. The slopes are even steeper along rivers and creeks.

1. Purpose/Objectives

A) Original (at the time of appraisal)

1. To rehabilitate 2,447.00 hectares of open grasslands, brush lands, and residual forests 2. To uplift the socio-economic status of the communities living adjacent to the Subproject.

1 B) Modification

a. Modified purpose/objectives

To rehabilitate 1,869.56 hectares of open grasslands, brush lands, and residual forests

b. Reasons for the modification

The objective of rehabilitating vast areas of forest through reforestation, agro forestry, rattan planting, and riverbank protection was not changed. The size of area (2,447.0 ha) for development was modified/reduced because of a number of factors such as insufficient manpower, low wage rate, delayed payment of billings, unit cost of seedlings (rattan) much lower per work and financial plan than actual market price, and climatic condition experienced in the locality (long drought).

2. Subproject Scope and Dimension

A. Comparison of Original and Actual Scope & Dimensions

a.1. Please check: There has been (revision and/or modification or  no revision and/or modification) of the Subproject scope and dimensions.

a.2. If “revision and/or modification”, please complete the Table.

Original Scope & Revised/Modified Items Dimensions (Actual) 1. REFORESTATION/WATERSHED/CBFM A. Survey Mapping and Planning (SMP) March 11, 1994 – July March 1994 – September 30, 1994 1996 5,000.00 hectares 5,000.00 hectares

B. Community Organizing (CO)1 November 1997 – Nov. 1997-Feb. 2000 November 1999

2,447.00 hectares 2,447.00 hectares  IEC activities  IEC activities  Assistance to  Assistance to CSD CSD activities activities

2  Assistance on  Assistance on Networking and Networking and Linkage Linkage  Organizational  Organizational Development and Development and Capacity Building Capacity Building  Assistance on  Assistance on Livelihood Livelihood Project Project Identification and Identification Implementation and Implementation

C. Comprehensive Site Development January 1998 – June January 1998 – June (CSD) 2002 2003 2,447.00 hectares 1,869.56 hectares 1. SOIL EROSION CONTROL a. Infrastructure b. Trail and Footpath c. Plantation 2. VEGETATIVE MEASURES2 a. Agroforestry 918.00 hectares 435.15 hectares b. Assisted Natural Regeneration c. Enrichment Planting d. Tree Plantation d.1. Bamboo 8.00 hectares d.2. Rattan 473.00 hectares 298.11 hectares d.3. Mangrove d.4. Plantation Species 1,048.00 hectares 1,136.30 hectares e. Timber Stand Improvement 3. INVENTORY RESIDUAL FOREST 4. INCOME ENHANCEMENT PROJECT 5. INFRASTRUCTURE a. bunkhouse 2 units 12 units b. lookout tower 5 units 6 units c. footpath d. fire line e. graded trail 52,500.00 sq.m. D. MAJOR INFRASTRUCTURE NONE a. Rehabilitation of Farm-to- 2.50 kilometers market road

b. Hanging Bridge 50.50 meters

3 E. Monitoring & Evaluation (M & E) Inspection Chart Mapping (ICM) 1. Physical Validation Conducted in three (3) passes: 1,869.56 hectares Year 1 January 2001 – May 2001

Year 2 January 2002- May 2002

Year 3 March 2003 – May 2003

 Verification of boundaries, monuments, and block corner posts  Seedling production inventory analysis  Survival Counting with 20% sampling intensity, including mapping of developed areas  Height and diameter measurement, assessment of overall health/appearance  Inspection of physical infrastructure

2. Institutional and Project Benefit Conducted in two (2) Assessment passes: 1,869.56 hectares

Year 1 November 2001 – February 2002

Year 2 December 2002 – March 2003

 Assessment of the overall development of the PO

4  Assessment of the capability of the PO to pursue sustainable resource management and sustain its livelihood initiatives  Identification of various issues/problems/cons traints related to the development and strengthening of the PO and the relevant support systems  Identification of immediate benefits of the project and evidences that would indicate the intermediate and long- term socio-economic and environmental impacts.

2. Subproject Site Management Office NONE (SUSIMO) Equipment provided to this Office:3 . 3 units Binocular . 1 set Computer Desktop with printer . 1 unit GPS . 2 units Steel tape . 1 Lettering set . 1 unit UPS 500VA . 1 GIS (maptitude) software . 4 Steel Cabinets . 2 units Handheld Radio . 1 unit Base Radio . 4 units Brunton Compass . 4 units Abney Hand Level

5 . 3 Motorcycles (SUZUKI 125) . 1 Utility Vehicle (KIA Ceres) . 2 units Forester’s Transit . 1 unit Diameter tape . 1 unit Manual Typewriter . 1 unit Planimeter . 1 unit Generator

Researches conducted: NONE

Training attended by the SUSIMO  FSP reorientation, personnel:4 assessment & SUSIMO Action planning workshop  PO FSP re orientation & action planning workshop  On-the-job training on GIS/GPS operation

 Workshop on benefit sharing system for CBFM-POs  Workshop on Business Plan Preparation  Re-orientation course on FSP implementers  Team Building towards Moral Recovery  On-the-job training on map digitization  Orientation & planning workshop on CRMF preparation

6  Orientation on Technical Integration of the community resource map & technical map  Community-based Resource Mapping & Accounting  Biodiversity assessment training

Construction of Others: Subproject Site Management Office (SUSIMO) building: (30 square meter floor area office with GI sheets roof and manned by seven staff) 1Please refer to Table 1 for the details of training attended by the POs 2Table 2 shows details of the subproject performance in terms of area planted 3Table 3 shows details of the equipment provided to the SUSIMO 4Please refer to Table 4 for the training attended by the SUSIMO Staff

B. Reasons for Revision/Modification of scope and Dimensions

b.1. Where there has been “revision/modification” of the Subproject scope and dimensions.

Please choose the reason(s) from the following list and check.

 Revision of the superior plan (e.g. sector development plan, etc.)  Revision of the supply-and-demand estimate  Large fluctuation in the Subproject cost  Substantial revision of design due to the unpredictable physical condition at the time of the original design (e.g. poor soil condition, etc.)  Natural disaster/bad weather  Unusual circumstances beyond the control of the Executing Agency  Structural and organizational problems of the agencies concerned (e.g. lack of staff, inadequate coordination with other agencies, etc.)  Availability of funds (e.g. lack of funds, use of contingency, fluctuation of the exchange rate, etc.)  Unrealistic initial plan/Technical problems

7  Procurement problems  Performance of contractor/supplier  Performance of consultant  Change in construction period  Others (Inclusion of Infrastructure Development Component) b.2. Detailed statement of reasons

Revision of the superior plan

 On Monitoring and Evaluation

Inspection Chart Mapping has been the tool used by the DENR in the evaluation of forest development activities since 1989. A hundred percent counting of seedlings planted on sites is done using this method. However, under the Loan Agreement whereby thousands of hectares of forestlands were being developed, application of ICM was found to be impractical and expensive.

On June 02, 1999, Memorandum Circular No. 99-17 entitled “Guidelines on the Conduct of Monitoring and Evaluation of Forestry Sector Project under Loan II” was formulated and approved to efficiently verify, monitor actual accomplishments of the subproject, provide independent analysis, and provide valuable inputs and recommendations for policy formulation and project planning. This Circular was used as guide in the monitoring and evaluation of subproject accomplishments by an NGO in lieu of the old method, the ICM.

Substantial revision of design due to the unforeseeable physical condition at the time of the original design

 On Comprehensive Site Development

The construction of 12 units bunkhouses and six units lookout towers (instead of two bunkhouses and five lookout towers) was in response to the request of the PO members for shelter during peak of planting season. Also, more look out towers for the protection of the plantations during the summer months when forest fires are prevalent had to be put up.

On the other hand, a 35,000-meter long, 1.5- meter wide graded trail at a gradient ranging from 10%-20% was constructed in accordance with the actual topography of the area and the need to reach all the plantation blocks/compartments.

8 Change of species was also made especially for reforestation component based on the availability and adaptability of species found in the area. Some portions planted with mahogany have been replaced with Acacia mangium and Acacia auriculiformis.

Natural disaster/Bad weather

 On Comprehensive Site Development

The El Niño phenomenon in 1997 and 1998 directly affected the accomplishments of the Peoples Organization, particularly in the conduct of plantation establishment and maintenance and protection activities. It slowed down planting and replanting activities. The PO had established only a total of 1,869.56 hectares out of the 2,447.00 hectares original area up to CY 2000.

Others

 Inclusion of Major Infrastructure Development Project

Improvement of the living standard of the beneficiary communities is considered as the key to sustainable management of forest resources. As an additional support for the communities in developing their existing and alternative livelihood projects, the rehabilitation and construction of infrastructures were included as a major project component.

 Creation of Subproject Site Management Office (SUSIMO)

Pursuant to DAO 93-16 entitled “The Guidelines in the Implementation of the FSP”, DAO 96-29, “Rules and Regulations for the Implementation of EO 263, otherwise known as the CBFM strategy and to further improve FSP implementation in terms of supervision and provision of assistances to the participating community, the SUSIMO was created and institutionalized by virtue of DAO 2000-65.

C. Contribution of Subproject to Relevant (Sub) Sector(s)

c.1. (Sub) Sector(s) to which the Subproject belongs Electric Power and Gas  Irrigation and Flood Control  (Multi purpose) Dams  Irrigation  Power plants Flood Control  Transmission lines  Distribution systems  Transportation

9  Gas  Roads  Others  Railways  Bridges  Telecommunication  Airport  Telecommunications  Ports  Broadcasting  Marine transportation  Others

 Agriculture, Forestry & Fisheries  Mining and  Agriculture and Forestry Manufacturing  Fisheries  Mining  Manufacturing  Social Services  Water Supply  Sewerage  Education  Health  Tourism  Others (employment and economic opportunities)

C.2. Original (At the time of appraisal/Planned)

Item Description 1. Social preparation and . The target community will be organized and development subjected to trainings before they can start the CSD activities. They will be trained and educated on livelihood project implementation, project management, CSD activities, financial management, and organizational management, among others. The community will be made aware of environmental issues and concerns. They will be taught how to identify, prioritize, analyze, and provide solutions to problems that will arise during subproject implementation. Aside from the DENR, support of LGUs, other government agencies like the NIA, DOH, DSWD and DA will be tapped in order to provide additional social and technical assistances to the community, thus ensuring better implementation of the Subproject.

. Women will be tapped and utilized to

10 . spearhead livelihood project operations, financial management, records keeping, linkage, and networking. . Trainings to be implemented will increase knowledge and improve skills of residents. They will be made capable in linking with other government agencies and NGOs, even with other Peoples Organizations.

2. Project Site Development . Project site development will be made by blocks in order to provide a more efficient method of planting, replanting, and future harvesting. A total of 2,447.00 hectares will be planted with different species like bamboo, rattan, mahogany, gmelina, narra, and mango. . Re-vegetation of the site will increase ground water yield, minimize soil erosion and landslides, siltation of river, occurrence of forest fires, and influx of illegal cutters. Habitat of wildlife will be protected and further deterioration of biodiversity of flora and fauna in the area will be mitigated.

3. Environmental benefits . The Madongan River and Manayon Creek split through the Subproject draining toward west of Laoag River and support vital infrastructure for irrigation and domestic needs of Barangays Marcos and Dingras. Developmental activities will directly and indirectly affect the water quality and quantity for domestic and irrigation purposes.

. The implementation of the Project will create job opportunities thereby increasing income of the participating households. Approximately 418,439 man-days will be created during project implementation needing a total workforce of 1,568 people. The income will come from management of agro forestry areas and livelihood projects.

11 4. Employment and economic . With the increase in income, residents will opportunities have better opportunities to participate in business ventures. Improvement in economic status would affect not only residents of the participating communities but those in nearby areas as well.

C.3. Present situation and outlook for the future

Item Description 1. The community and . The participating community was organized tenurial instrument by NGO in 1998. Up to now, SUFAI is still intact, forceful, and remains united contrary to the notion that it will break up upon termination of the CSD contract. Having internalized the necessary development trainings on organizational administration, financial management, leadership, and other management aspects, their capabilities have improved a lot. The level of awareness is high, as well as the competency. It is expected that they can effectively manage the entire 2,699.00 hectares area reflected under issued CBFMA and efficiently implement another similar project in the future.

2. Project Site Development . A total of 1,869.56 hectares of grasslands, brush lands, and residual forests were rehabilitated by SUFAI. Now that the plantations are five and a half (5 ½) years old, the ground and under canopy vegetative cover of vines and grasses are becoming thinner and suppressed. Site development is evident with the well-established rows of Eucalyptus and Gmelina under reforestation component. It is expected that for the next three (3) years, the merchantable height and diameter could be attained.

12 . The future looks promising with the mango plantations expected to bear fruits in the next three to five years given the proper management and protection activities.

. Rattan plantation however has limited area thus lesser volumes of poles and splits are to be harvested considering also the need for its sustainable development and utilization.

3. Environmental benefits and . The Subproject site is more or less fully Eco-tourism potential vegetated as planned. Improvement in water yield and quality, enhancement of biodiversity, and wildlife habitat are yet to be experienced inasmuch as the plantations have not yet reached maturity. Because of its proximity to the NIA Dam,the Subproject has to be managed sustainably.

. The Subproject site has a potential for tourism with its natural vegetation, clear rivers and creeks including the presence of some wildlife species. The site is conducive for mountain climbing/trekking, hiking, and wildlife viewing. If developed and sustained, it can become another tourist spot of the region.

4. Employment and economic . The implementation of the Subproject opportunities spelled economic relief to the PO. For the last five (5) years, a great number of households gained additional income from the CSD and existing livelihood projects. Houses were either renovated, this time using concrete materials or totally tore down to make way for new structure. Purchase of more appliances and other personal belongings were also reported.

13 . Sustainability of livelihood projects is assured provided the PO enhances its managerial capabilities even more. The number of beneficiaries will surely increase, thus alleviating poverty situation in the locality.

4. Infrastructure Project  The rehabilitated farm-to-market road improved access to the plantation areas particularly the agro forestry plantation. Traders can now reach barangays while farmers can easily market their products in the town proper during market days. With assured maintenance through a signed MOA with the LGUs, the rehabilitated farm-to- market road and hanging bridge will facilitate further improvement and development of the watershed, specifically the area covered by the CBFMA.

II. Subproject Implementation

1. Organizations for Implementing Subproject

Function in the Name of Organization Reasons for Subproject (1) Original (2) Change Implementation Changed 1. Survey, Mapping Mother Nature Savers, Inc. Mother Two (2) & Planning Stud Seedling Producers Assn. Nature contractors to (SSPA) Savers, do the SMP will Inc. only cause confusion in the consolidation of survey results. 2. AO for Mother Nature Savers, Inc. Community Organizing 3. Assisting Elvie Anipew Professional 4. Peoples SAMARCA Upland Farmers Organization Assn., Inc. 5. Monitoring & Sustainable Ecosystem Evaluation Foundation, Inc., and Tropic Contractor Resources Ecosystem and Extension Services, Inc.

14 6. Infra Contractor AJ Taylan Const. Corp.

Please state:

1.1 Reasons for the change

For SMP Contractor

The coverage of the 5,000 hectares SMP area was revised to include Dingras and Marcos. Two (2) contractors to do the SMP will cause confusion in the consolidation of survey results.

1.2 Problems arising, counter measures adopted and results.

1.2.1. Contracting for SMP

Another problem besides having two (2) contractors for SMP would be the impracticality of including Solsona, Ilocos Norte (municipality reflected per SSPA contract). The regional office decided to cancel the contract of SSPA. The MNSI then took over and conducted the survey, mapping and planning of the 5,000 hectares covering the municipalities of Dingras and Marcos, Ilocos Norte.

1.2.2. CO Implementation (NGO/AO)

 Minor conflicts of the two barangays (eagerness of both to have separate contracts) stem from their differences in cultures and traditions. Constant dialogue with the officials of the two barangays, municipal officials and DENR personnel were undertaken by the DENR with the assistance of the AO that resulted in the resolution of the conflicts.

 Communication constraints. Not being able to communicate with the Project participants in their dialect (Ilocano) was a drawback for deployed field/technical staffs of the AO that resulted to the revision and delay in submitting their QCPs. To avoid further delays, the AO hired field men who can speak Ilocano. This facilitated the conduct of organizing activity, specifically the conduct of IEC, meetings, and trainings.

15 1.2.3. CSD Implementation (PO)

 The establishment of the plantation that coincided with the conduct of lowland farming resulted in shortage of workers. To increase workers, the PO hired laborers from adjacent municipalities. More workers were deployed in the plantation sites enabling the PO to plant considerable areas of forestland.

1.3 The latest organization chart (or equivalent) for the implementation of the Subproject is ( attached or  not available).

The latest organizational charts of PO, M & E contractor, Infrastructure contractor, and SUSIMO are attached as Annexes 1a, 1b, 1c, and 1d, respectively.

1.4 If the organizational chart (or equivalent) is not available, please state the reason.

Organizational charts of SMP, M&E and CO contractors were misplaced and there was difficulty in contacting them to secure another copy.

2. Implementation Period

A. Comparison of Original Schedule and Actual Period Please fill in the following blanks with actual period for each item. ITEM ORIGINAL ACTUAL PERIOD SCHEDULE 1. Contract of NGO for SMP March 11, 1994 – July March 1994 – 30, 1994 September 1996 2. Contract of AO for CO November 1997 – Nov. 1997-Feb. 2000 November 1999 3. Contract of PO for CSD January 1998 – June January 1998 – June 2002 2003 3. 4. Contract of NGO for M&E December 16, 1999 – January 2001 – May December 16, 2000 2003 5. Contract of Infrastructure Component Oct. 2002 – June October 2002 – 2003 August 2003  Completion (completion of June 2002 June 2003 Subproject)

Please refer to Table 6 for the subproject status report.

Notes: Completion of the Subproject was defined as ( completion ceremony or  final disbursement or  other than the above.

16 The completion date was scheduled for June 2002 (at the time of appraisal) and is indicated (thus ) in the above Table.

B. Reasons for Delay or Early Completion

b.1. In case of delay or early completion, please choose the reason(s) from the following list and check.

 Change in scope/dimensions  Natural disaster/ Bad weather (e.g. earthquake, typhoon, etc.)  Shortage of funds/Fluctuation of the exchange rate  Problems in procurement  Inflation  Unusual circumstances beyond the control of the Executing Agency  Structural and organizational problems of the agencies concerned (e.g. lack of staff, inadequate coordination with other agencies, etc.)  Legislative matters  Unrealistic initial plan/Technical problems  Performance of contractor/supplier  Performance of consultant  Others

b.2. Reasons and background for delay or early completion

Natural disaster/ Bad weather

 On Infrastructure Contract

Two (2) months delay was brought about by minor changes in the project design to accommodate contractor’s recommendations for repair and additional works due to damage caused by typhoons “Chedeng”, “Dodong”, and “Egay”.

Legislative matter

 On the conduct of Monitoring and Evaluation

The original schedule of the M & E (December 1999 – December 2000) contracted out for SEFI involved two (2) passes for Physical Accomplishment validation only per Memorandum Circular 99-17 entitled “Guidelines on the Conduct of Monitoring and Evaluation (M & E) of Forestry Sector Project under Loan II.” But with the inclusion of another aspect, the Institutional and Project

17 Benefit Assessment per Revised Guidelines on the Conduct of Monitoring and Evaluation of the Forestry Sector Project otherwise known as MC 2001-04, the contract schedule was revised per pass per aspect and so with the schedule of activities.

Performance of the Contractor

 On Community Organizing

Extension of CO contract is allowed to address significant gaps and to fully organize the community in preparation for the implementation of the long-term CBFM program of the agency per MC No. 99-04 entitled Extension of the Community Organizing Contract Under the Forestry Sector Project Loan II. In the case of Laoag-Madongan, the three (3) months extension is attributed to the delayed submission of some requirements in the QCPs of the Assisting Organization, the need to conduct the final turn- over and awarding of the CBFMA, and preparation and affirmation of the initial CRMF of the organized community.

Others

 Validation and contracting of SMP

There were two (2) contracts approved for the conduct of SMP in Laoag-Madongan Subproject, one for the MNSI and the other for the Stud Seedling Producers Association. The latter was not able to finish all activities stipulated in the contract because the regional office had decided to contract out the activity to only one (1) contractor. Stud Seedling Producers Association was only able to do the perimeter and contour survey. The decision was based on the result of validation made on the simultaneous activities of both contractors.

Inasmuch as the activity had to be contracted out again, it had to go through the whole process of validation, approval/acceptance, and submission of final result of the SMP activity by the MNSI causing delay in completion.

 On CSD implementation:

Priority of the participating community

The PO experienced considerable problems that caused the delay in the implementation of CSD activities. Apart from

18 lack of manpower, some PO members/laborers prioritized the planting of rice on their farmlands rather than to work in the CSD project. It had been difficult to encourage the community members to plant on the slopes as they prioritized activities in the lowlands.

Delayed billings

The unpredictable release of funds and the Quarterly Billing Scheme during the early part of the operation discouraged most laborers/PO members to work full time in the area.

Much lower cost of planting materials per DENR guidelines

The unit cost prescribed under DENR Administrative Order No. 31, Series of 1991 entitled “Revised Guidelines for Contract Reforestation” is much lower than the actual price of planting materials, especially rattan. PO laborers lost enthusiasm in pursuing planting operations.

C. Remedial Action Taken in Each Case of Delay

Natural disaster/ Bad Weather

 On Infrastructure Contract

The contractor’s claim for extension of 28 calendar days was validated in conjunction with the additional works. Adding up the extension period due to typhoon and the time that would be spent to complete remedial and additional works, the DENR-NFDO TA endorsed a total of 42-calendar days extension. With the approval of the regional office, a new expiration date was set on July 25, 2003. Final report was submitted in August 2003.

Legislative matter

 On the conduct of Monitoring and Evaluation

In compliance with MC 2001-04 and to further improve the accomplishment and organizational management of SUFAI, re- contracting was made and awarded to TREES because SEFI was no longer interested to pursue the activity based on new guidelines. There was adjustment in the schedule of the conduct of activities, per pass per component (Physical Validation and Institutional and Project Benefit Assessment Components).

19 Performance of the Contractor

 On Community Organizing

The CO contractor was granted three (3) months extension in accordance with MC No. 99-04 to complete the remaining activities stipulated in the contract. No additional cost was incurred by the DENR.

Others

 Validation and contracting of SMP

The MNSI contractor had to work on 5,000 hectares that undoubtedly could not be finished within four (4) months. The original contract, reflecting total area coverage of 2,500 hectares was revised on August 1995 and so were the duration and schedule.

 On CSD implementation

Priority of the participating community

As mentioned, there was difficulty in encouraging the PO members to prioritize the CSD activities. The hired laborers from adjacent communities with some PO members were only able to establish a total of 1,869.56 hectares from 1998 to 2000. This was considered and officially reported as the PO’s target and final accomplishment.

Delayed billings

Through constant dialogues, the SUSIMO tried to make the community understand the rigorous process involved in the release of funds and the processing of billings from the DBM to field level and that it is beyond anybody’s control.

Much lower cost of planting materials per DENR guidelines

DAO No. 31-1991 was amended. Unit costs for reforestation, agroforestry, enrichment planting, rattan, and bamboo components were updated pursuant to MC 2000-19 entitled “Guidelines Governing the Updating of Cost Estimates and Intensification of Plantation Maintenance and Protection

20 Activities for DENR-FSP Watershed Subprojects under JBIC Funding.”

A one (1) year extension was given to PO-SUFAI in order to further develop and improve the established plantations. The existing approved WFP was revised based on actual accomplishments; maintenance and protection activities were rescheduled and the frequency were increased. Replanting, ringweeding, and patrolling activities were done, especially in plantations with low survival rate.

3. Subproject Cost

A. Comparison of Original Estimated Cost and Actual Expenditure (by Component) (Unit: in Mil peso) Item Original Cost Actual Expenditures Survey, Mapping 3.375000 4.278964 and Planning

Community 3.915200 3.915200 Organization Comprehensive Site 40.119898 31.807219 Development Monitoring 1.207985 3.293732 and Evaluation

Infrastructure 13.042834 16.603997 Dev’t Subproject 1.490390 1.798037 Coordinating Office (SUSIMO)

TOTAL 63.151307 61.697150 Please refer to Tables 7-10 for details on cost of SMP, CO, CSD and M & E. List of Infra project/s with its corresponding cost is also attached as Table 11.

B. Reasons for Difference between Original Estimated Cost and Actual Expenditure

b.1. If there is any difference between Table a.1 and Table a.2 in Paragraph a, please choose the reason(s) from the following list and check.  Increase in reconstruction cost arising from natural disaster/unreasonable weather (e.g. earthquake, typhoon, etc.)

21  Increase or decrease arising from a change in construction period  Increase or decrease arising from inflation  Increase or decrease arising from fluctuation in the exchange rate  Increase or decrease arising from a change in the scope/work volume of the Subproject  Decrease arising from keen competition in tender  Unusual circumstances beyond the control of the Executing Agency  Unrealistic cost estimates/Technical problems  Others b.2. Description of the detailed reason(s) and background

Increase or decrease arising from a change in the scope/work volume of the Subproject

. On the Comprehensive Site Development Cost

The original cost amounting to PHP 40,119,898.00, which was based on 2,447.00 hectares for development, has undergone revisions due to the following: reduction of target on plantations to be established, updating of cost estimates of activities per MC 2000-19 and reduction of total FSP project cost as a result of the evaluation on the performance of all subprojects nationwide. With this, the final project cost of the Subproject amounted to PHP 34,222,211.62. Payments for the maintenance and protection activities were based on the new costing. Unit cost per activity increased but with the reduction of the area (from 2,447.00 to 1,869.56 hectares) and the total project cost, and non- accomplishments of other maintenance and protection activities, the actual disbursement amounted to PHP 31,807,219.00 only. The remaining amount was reverted to the National Treasury.

. On the Monitoring and Evaluation Cost

The difference between the original and actual disbursement was brought about by the revision of MC 99-17, change in coverage area, and number of passes per contract. The original contract covered a total area of 1,854.66 hectares to be subjected for two (2) passes only (Physical and Organizational/Institutional/Financial Analyses and Economic and Environmental Impacts) at PHP 1,045.00 cost per pass. The activity was conducted for one pass only and payment was made based on MC 99-17.

22 The remaining pass was subjected to revision based on the latest guidelines (MC 2001-04) at PHP 643.00 cost per hectare per pass for the Physical Validation component and an additional PHP 215,000.00 per pass for the Institutional and Project Benefit Assessment. Two (2) more passes for the Physical and IPBA were required per revised contract. The second and final passes then were conducted and paid based on the new guidelines.

. Variation cost on Infrastructure Development

The DENR-Region 1 has accepted the bidding amount of PHP 13,042,833.89 for the construction and completion of infrastructure works for the Subproject. However, the contractor recommended additional works not covered by the bidding amount, or an additional amount of PHP 1,989,783.64 plus repair cost for the typhoon damages on the constructed projects amounting to PHP 2,405,599.03. Variation Orders were then facilitated to accommodate the abovementioned additional costs. The total revised contract cost then, including the variation costs amounted to PHP 17,438,217.

The balance amounting to PHP 834,220.00 between the total contract cost (with variation cost) and the total amount disbursed was a result of the actual accomplishments per inspection made by the Infra Team. Said balance was reverted to the National Treasury.

Others

. Previous payments for original SMP contractor

The difference between the original and actual amount disbursed for the SMP activity was brought about by the payments made previously with the accomplishments of SSPA for verification of boundaries and other activities conducted covering the Municipality of Solsona, Ilocos Norte, which was then cancelled for technical reason. The contract was revised and re-issued to MNSI to cover Municipalities of Dingras and Marcos, Ilocos Norte.

. On SUSIMO Cost

The difference in the original and actual cost for this office is brought about by the actual amount obligated per quarter. The allotment or original cost is not necessarily the same amount that

23 was obligated for their expenditures. Request for additional funds and re-alignments were made during the SUSIMO operations.

C. Action taken in Case of Cost Overrun and Results

Cost overrun on SMP, M & E, and Infrastructure components was addressed through revision and approval of supplemental contracts. The actual disbursements did not exceed the latest revised contracts of said components.

D. Comparison of Original Estimated Expenditure and Actual Expenditure (by Year) Unit: (Mil pesos) Calendar Year Original Cost Actual Expenditures 1994 3.375000 0.253125 1995 - 1.368994 1996 - 2.656845 1997 - - 1998 20.804432 9.549913 1999 14.109429 11.289403 2000 8.886439 2.605866 2001 1.897784 3.963043 2002 0.739000 6.491332 2003 13.339224 23.518629

Total 63.151307 61.697150

Please refer to Table 12 for the details of the Annual Work and Financial Plan.

4. Comments on Performance of Assisting Organizations (AOs), Assisting Professionals (APs), Peoples Organizations (POs), M&E and Infrastructure contractors.

Please describe the performance of each organization after checking the item(s) in the relevant lists on which you have any comment.

A. Performance of Assisting Organizations & Assisting Professionals (if any) Peoples Organizations, M&E and Infrastructure contractors

a.1.  Overall performance  Design  Contract administration  Construction supervision  Expertise  Staff qualifications  Coordinating ability  Compliance with Contracts  Performance related to any other than the Subproject scope, if any.  Others

24 a.2. Description

Overall Performance

. Assisting Organization for Community Organizing

The AO succeeded in organizing the PO and registering it with the SEC; facilitated the awarding of the CBFM Agreement; assisted the PO in formulating their objectives, vision, mission and goals and provided assistance in the initial stage of CSD activities. For these, the AO had proven to be an effective community organizer.

The AO’s field manpower have sufficient qualifications in coordinating abilities and have successfully transferred the necessary knowledge, skills and abilities in community organizing, administrative, managerial, financial, technical aspects of organizational development to the PO. Though delayed, they have satisfactorily accomplished all activities in their QCPs.

. Assisting Professional

The AP for the development of the PO accomplished the provision of trainings on financial and record management, paralegal, and organizing women in the community. However, due to her short stint in the community, the PO has not internalized all her efforts although some have made notable strides in networking with other government agencies. The AP proved to be competent in assisting the PO.

. Peoples Organization for CSD activities

Despite the odds like insufficient work force, lower wage rate compared to lowland farm workers and unfavorable weather conditions, the PO had successfully accomplished the revised target of 1,869.65 hectares. The PO has exhibited tenacity and steadfastness making them a competent PO in the performance of their assigned tasks.

. NGO for M & E activity

The M & E contractors have come up with credible reports (for the successive M & E passes prior to CSD contract

25 termination) in the form of findings, observations and recommendations that greatly contributed to the improvement of FSP implementation in Laoag Subproject. These inputs have direct effects on the socio-economic aspect (the capability to manage and implement livelihood projects) of the PO and other community residents as well as to the environmental and biophysical changes as observed in the Subproject site.

. Contractor for Major Infrastructure Development

Construction of the much-needed infrastructure (project access/farm-to-market road in the case of Madongan Subproject) was delayed. The contractor, AJ Taylan Construction Corporation was strict and prudent in their implementation, strictly following the road and hanging bridge approved designs. Nevertheless, when necessary minor changes had to be made to adapt to the actual road site condition, they were willing to accommodate the recommendations of the project stakeholders.

5. Other matters relating to Subproject Implementation

Please choose the item(s) from the following list on which you have any comment, check it (them), and describe it (them) with measure and results in (B) below.

A.  Technical  Financial  Institutional  Economic  Social/Distributional  Others

B. Description (in detail)

COMMENT MEASURES RESULT/REMARK Technical 1. Inadequate This was augmented Monitoring, supervision, and capability of the through the creation validation of PO CENRO Inspection of the SUSIMO by accomplishments were made Committee (CIC) to virtue of DAO 2000- and facilitated. monitor and validate 65. accomplishments of the AO and PO - The DENR paid the accomplishment of the AO and PO as reported due to

26 lack of capability and skills of the CIC to validate the CSD activities. Some of the CIC members do not have enough knowledge and the physical condition to do the work. Some have the knowledge but are not physically fit, while others are physically fit but do not have the required knowledge. 2. Selection of Some staffs were Although replacement and SUSIMO staff to replaced and the restructuring were made at supervise the SUSIMO was the field level, still there Subproject restructured. should be proper selection  No proper process to be undertaken to selection process was ensure better performance undertaken on the and quality of assistances to staffing of the the participating SUSIMO. Some communities. project staff was selected not based on technical expertise but due to some personal reasons while some of the staff have technical expertise but no commitment to their jobs. 3. Livelihood assistance The PMO deployed Despite this measure, no and identification for Agroforestry and livelihood operation was the PO. Livelihood experts pursued due mainly to the from the NFDO-TA. management system of the Seminar was provided. PO. The existing/on-going Feasible livelihood livelihood projects of the PO projects were were not based on feasibility identified and studies but merely initiative prioritized. and trials on their part, with the assistance from the SUSIMO.

27 Financial 3. Fire fighting crews With the knowledge Fire occurred on March are not equipped gained from the 2004. The PO-SUFAI was (SUSIMO and PO training on Fire able to suppress the spread level) Prevention and of fire using the conventional - There was no record Suppression, the PO fire fighting techniques. of fire occurrence and SUSIMO are during the conducting intensive implementation period patrolling to avoid but it was observed forest fire. Purchase that the firefighting of fire equipment is crew has no yet to be made. equipment to use in case fire breaks out in the plantation site Others 4. Impassability of the A 2.5 km farm-to- Residents of barangays now road going to the market road was enjoy easy access to their project site due to rehabilitated with the farms even during rainy heavy rains and inclusion of season. typhoons hindered Infrastructure the transport of Development agricultural products component of the to the market. Project.

5. No power . Generator, among Subproject and livelihood supply/electricity at other useful operations (processing of the SUSIMO/PO equipment was billings, and other offices provided by the administrative works) were PMO facilitated. . The PO-SUFAI bought a generator out of their savings that is now being used in Videoke operations

III. Action Taken by the AOs, APs and POs relating to Recommendation(s)

1. Recommendation(s) made by SUSIMO

This article is ( applicable  not applicable. There has been no recommendation with regard to the Subproject).

28 RECOMMENDATIONS ACTION TAKEN RESULT/REMARK OF THE SUSIMO By the AP By the PO 1. Review of the Work Assisted in the The PO under the Action plan was and Financial Plan revision and guidance of the prepared and for the re-alignment finalization of AP and SUSIMO implemented. and re- the Work and revised and establishment of Financial Plan prepared action backlogs and and in the plan for the re- shortfall in the CSD preparation and establishment of area. implementation the backlogs, as of action plan. well as re-planting. 2. Creation of the Assisted in the The PO agreed Quality and composite team for smooth and complied with quantity of the the internal implementation the evaluation and accomplishments monitoring of of the strategy validation of their of PO on their accomplishment of as accomplishments CSD area was the PO for validation recommended. in the CSD area. ensured. and billing purposes. Processing of billings was further facilitated. 3. Conduct of training Facilitated and Agreed, attended Knowledge and on technical, assisted in the and cooperated in skills of the financial and conduct of the conduct of majority of PO managerial aspects training. training for members were to strengthen organizational enhanced. Roles the PO. improvement and and functions strengthening were defined. 4.Recruitment of non The PO officers The PO was able members to do discussed with the to establish the comprehensive barangay officials 1,869.56 development activities the proposal to hectares of to hasten the hire workers to forest establishment of assist in the CSD. plantations. plantation.

IV. Initial Operation and Maintenance of Subproject Facilities

1. Present Condition of Facilities

A. Please check: This article is ( applicable due to problem(s) or  not applicable. No particular problem has occurred since the initial operation started). If there have been any problems, please check the relevant space in the Table.

29 For the PO: Initial Othe Item Status Maintenance Management Operation rs

1. Office Bldg. serviceable - 2. Mini-truck serviceable 3. Water pump serviceable 4. Bunkhouses serviceable 5. Look-out serviceable towers 6. Grass unserviceable √

Cutter 7. Typewriter unserviceable √

√ 8. Computer unserviceable

9. Electric Fan unserviceable √ 10. Backpack unserviceable √

Sprayer

11. Backpack unserviceable √ Fire

Fighting

Spray

For the SUSIMO: Initial Item Status Maintenance Management Others Operation 1. Binocular Serviceable 2. Computer Serviceable Desktop with printer 3. GPS Serviceable √ √ 4. Steel tape Serviceable 5. Lettering set Serviceable 6. UPS 500VA Serviceable 7. GIS (maptitude) Serviceable software 8. Steel Cabinets Serviceable 9. Handheld Serviceable Radio 10. Base Radio Serviceable √ √ 11. Brunton Compass Serviceable 12. Abney Serviceable Hand Level 13. Motorcycles Serviceable √ (SUZUKI 125) 14. Utility Vehicle Serviceable (KIA Ceres)

30 15. Forester’s Transit Serviceable 16. Diameter tape √ 17. Manual Serviceable Typewriter Unserviceable

18. Planimeter 19. Generator Serviceable 20. Office building Serviceable Serviceable

B. Please check: The Problem(s) has arisen owing to the following reason(s).

 Technical  Financial  Institutional  Economic  Social/Distributional  Others (Quality/Serviceability)

C. Description For the PO:

 Technical problem on management

1. Grass Cutter – the blade is now covered with rust 2. Typewriter – letter keys are not functioning due to rust 3. Electric Fan – wiring/motor was damaged due to short circuit

 Technical problem during maintenance

1. Backpack Fire Fighting Spray – clogged due to soil deposits and other impurities 2. Backpack Sprayer – clogged due to soil deposits and other impurities

 Others

Computer – bogged down; memory was damaged during transport

For the SUSIMO:

 Technical problem during initial operation

1. GPS - very few of the SUSIMO and the PO staff know how to use GPS and other survey instruments. 2. Base radio – no VHF aerial/external antenna 3. Typewriter – keys not functioning due to rust

31  Technical problem during maintenance

Motorcycle – defective parts were replaced; overhauled

D. Aspect of utilizing the Subproject facilities

For the PO: Item Original Plan Actual Operation 1. Office Bldg. For PO use For PO use 2. Mini-truck For PO use For PO use 3. Water pump For PO use For PO use

4. Bunkhouses For PO use For PO use 5. Look-out towers For PO use For PO use 6. Grass Cutter For PO use For PO use 7. Typewriter 8. Computer For PO use For PO use 9. Electric Fan For PO use For PO use 10. Backpack Sprayer For PO use For PO use 11. Backpack Fire Fighting For PO use For PO use Spray

For the SUSIMO: Original PlanItem Actual Operation 1. Binocular For SUSIMO use For SUSIMO use 2. Computer desktop with printer For SUSIMO use For SUSIMO use 3. GPS 4. Steel Tape For SUSIMO use For SUSIMO use 5. Lettering set For SUSIMO use For SUSIMO use 6. UPS 500VA For SUSIMO use For SUSIMO use 7. GIS maptitude software For SUSIMO use For SUSIMO use 8. Steel Cabinets For SUSIMO use For SUSIMO use 9. Handheld radio For SUSIMO use For SUSIMO use 10. Base radio For SUSIMO use For SUSIMO use 11. Brunton compass For SUSIMO use For SUSIMO use 12. Abney Hand level For SUSIMO use For SUSIMO use 13. Motorcycles For SUSIMO use For SUSIMO use 14. Utility Vehicle (KIA) For SUSIMO use For SUSIMO use 15. Forester’s Transit For SUSIMO use For SUSIMO use 16. Diameter tape For SUSIMO use For SUSIMO use 17. Manual Typewriter For SUSIMO use For SUSIMO use 18. Planimeter For SUSIMO use For SUSIMO use 19. Generator For SUSIMO use For SUSIMO use 20.Office building For SUSIMO use For SUSIMO use For SUSIMO use For SUSIMO use

2. Organization for Operation and Maintenance

A. Name of PO and SUSIMO

32 a.1. Please give the name of PO/SUSIMO and/or Body in charge of O/M.

PO : SAMARCA Upland Farmers Association, Inc.

SUSIMO : SUSIMO Laoag-Madongan Watershed Subproject Site Management Office

a.2. Please check:

The latest organization chart (or equivalent) for O/M of the Subproject facilities is (attached or  not available).

The latest organizational charts of the PO and SUSIMO are attached as Annexes 1a and 1c, respectively.

a.3. If the organization chart (or equivalent) is not available, please state the reason.

B. Number of staff/workers of the PO or Body for Operation and Maintenance of Subproject Facilities.

PO : 15 BOTs and 4 PO Technical staff (fulltime) SUSIMO : 3 Technical staff

C. Please check and explain the following.

c.1.The number of staff is currently (sufficient or  insufficient).

If “Insufficient”, please describe your estimate of the optimum number of staff and your plan for providing them.

c.2. Average employment period of the present staff

PO : 6 years SUSIMO : 11 years

c.3.Availability of training program to promote the vocational ability of the staff, its contents and expected effects. (NONE)

There is no training program planned for the PO and SUSIMO.

33 2. Annual Budget or Actual Expenditure for Operation and Maintenance (by Year)

A. Original Expected Expenditure

For the PO: Item Maintenance Operation Total Calendar year

2002 0.10236 (PO Office budget estimates) 1. Office supplies 0.024000 2. Communication 0.003360 3. Electricity 0.007800 4. Others (representation, 0.067200 meeting/conferences)

TOTAL 0.10236 0.10236 Year 2002 was the only available data of the PO-SUFAI as regards the maintenance and operation budgetary estimates of major facilities.

For the SUSIMO: (Unit: Mil Pesos) Item Maintenance Operation Total Calendar year 2001 0.11000 1. SUSIMOffice (office 0.080000 supplies, communication) 2. Vehicles (gas and oil 0.030000 lubricants for motor, pick-up, petromax, and generator)

2002 0.23600 1. SUSIMOffice (office 0.100000 supplies, communication) 2. Vehicles ( gas and oil 0.040000 0.096000 lubricants for motorcycles, pick-up, petromax, and generator)

34 2003 0.006400 1. SUSIMOffice (office 0.006400 supplies, communication) 2. Vehicles (, gas and oil lubricants for motor, pick-up, petromax, and generator)

TOTAL 0.040000 0.3124 0.3524

B. Actual and Currently Expected Expenditure

For the PO: (Unit: Mil Pesos ) Item Maintenance Operation Total Calendar year 1998 0.100101 (PO Office actual expenditures) 1. Office supplies 0.044047 2. Communication 0.000843 3. Electricity - 4. Repairs and maintenance 0.002913 0.052298 (mini-truck, water pump) 5. Others (representation, meeting/conferences, taxes, licenses, etc. fees)

1999 0.239794 (PO Office actual expenditures) 1. Office supplies 0.040101 2. Communication 0.000556 3. Electricity - 4. Repairs and maintenance 0.020138 (mini-truck, water pump) 5. Others (representation, 0.178999 meeting/conferences, taxes, licenses, etc. fees)

2000 0.069158 (PO Office actual

35 expenditures) 1. Office supplies 0.018246 2. Communication 0.000646 3. Electricity - 4. Repairs and maintenance 0.012363 (mini-truck, water pump) 5. Others (representation, 0.037903 meeting/conferences, taxes, licenses, etc. fees)

2001 0.170164 (PO Office actual expenditures) 1. Office supplies 0.040208 2. Communication 0.001000 3. Electricity - 4. Repairs and maintenance 0.047222 (mini-truck, water pump) 5. Others (representation, 0.081734 meeting/conferences, taxes, licenses, etc. fees)

2002 0.161578 (PO Office actual expenditures) 1. Office supplies 0.021131 2. Communication 0.001690 3. Electricity 0.002000 4. Repairs and maintenance 0.015348 (mini-truck, water pump) 5. Gas and oil (mini-truck) 0.003149 6. Others (representation, 0.118260 meeting/conferences, taxes, licenses, etc. fees)

2003 0.103419 (PO Office actual expenditures) 1. Office supplies 0.018890 2. Communication 0.002020 3. Electricity 0.001000 4. Repairs and maintenance 0.024102

36 (mini-truck, water pump) 5. Gas and oil (mini-truck) 0.010139 6. Others (representation, 0.047268 meeting/conferences, taxes, licenses, etc. fees)

TOTAL 0.122086 0.722128 0.844214

The maintenance and operation cost for the expanded portion (July- December 2003 and January-March 2004) of the PO-SUFAI is not available.

For the SUSIMO: Item Maintenance Operation Maintenance Operation Total Calendar year For expanded Portion 2001 0.17914 1. SUSIMOffice 0.083973 (office supplies, communication) 2. Vehicles (gas 0.067978 0.027163 and oil lubricants for motor, pick-up, petromax, and generator)

2002 0.30308 1. SUSIMOffice 0.157468 (office supplies, communication)

2. Vehicles (, gas 0.145612 and oil lubricants for motor, pick-up, petromax, and generator)

2003 0. 50096 1. SUSIMOffice 0.157395

37 (office supplies, communication) 2. Vehicles (, gas 0.168823 0.174741 and oil lubricants for motor, pick-up, petromax, and generator)

TOTAL 0.382413 0.60074 0.983154

July –December .004400 2003 1. SUSIMOffice 0.00440 (office supplies, communication) 2. Gas and oil lubricants (for motor, pick-up, petromax, and generator)

January-March 2004 0.07500 1. SUSIMOffice (office 0.031250 supplies, communication) 2. Gas and oil lubricants 0.025000 0.018750 (for motor, pick-up, petromax, and generator)

TOTAL 0.025000 0.0544 0.0794

Note: Actual and currently expected expenditure for expansion, replacement or any other improvement purposes.

38 o Please describe the basis for the above estimate and your financing plan for the same.

The SUSIMO Budgetary and Actual expenditures are based on previous experiences of project operations. It has been part of the strategy to facilitate overall Subproject activities, specifically to efficiently monitor and extend technical assistances to the participating community and at the same time, minimize delay of processing of payments for the community engaged in CSD activities.

Upon termination of the project, the responsibility of maintaining the Subproject facilities will be turned over to CENRO-Laoag, Ilocos Norte. All expenditures will be taken/charged to regular fund of the said office.

The expenditures of the PO on the other hand were taken and based on available fund from their CSD activities and income from the livelihood projects. Upon termination of the project, all expenses will be taken from the income of existing and operational livelihood projects of SUFAI.

4. Maintenance Method

Regular maintenance of the vehicles and motorcycles of the PO and SUSIMO have been done to be able to prolong the life span of the transport vehicles. Change oil, tune-up, regular check-up of body parts and wheels rotation of the 2 ton truck will be undertaken based on the requirements of the vehicles.

For the PO: Kind of Maintenance Method Frequency Facility 1. Mini Truck Repair/replacement of As the need arises defective parts, Change oil, Every after 5,000 km Wheels rotation annually 2. Water pump Change oil Once a year

3. PO office Painting and installation Every other year of permanent electrical fixtures

39 For the SUSIMO: Kind of Maintenance Method Frequency Facility 1. KIA Repair/replacement of As the need arises defective parts, Change oil, Every after 5,000 km Wheels rotation annually 2. Motorcycle Repair/replacement of Once a year defective parts, Change oil, Every after 3,000 km 3. Office Painting and installation Every other year building of permanent electrical fixtures

V. Benefits derived from Subproject

1. Indirect Effects

A. Please choose and check the item(s) which are dealt with this Article by you.

 Technological transfer (e.g. application of technology used in the Subproject to other similar projects and subprojects)  Employment creating (e.g. during construction, contribution to the sector(s) after completion)  Income-raising (e.g. income of the residents in the region)  Other intended or unintended effects on the relevant sector(s) and/or the region concerned

B. Please give details for each of the item(s) you checked.

Employment Creation

The employment provided to the community residents is one of the most evident impacts of the Subproject. Approximately 231,253 man days were created during Subproject implementation; 114 members were employed in the CSD and infrastructure activities. In addition, 19 out of the 114 members that were employed were women active particularly in the maintenance and protection of the plantations.

40 Income Raising

The increase in income that they derived from the Project has resulted in improvement of economic status manifested by new dwelling structures made of concrete, education of the their children, acquisition of electric home appliances and leisure time for the families. Before the project, the average annual gross income of the household members engaged in off and on-farm activities was PHP 70,000.00. With the project, the annual household income of the participating members went up to an average of PHP 93,000.00 or an increase of 32.85%.

A shift in community livelihood pattern (from kaingin, illegal logging, hunting and fishing to more productive income generating activities) was also noted.

41 VI. CONCLUSIONS AND RECOMMENDATIONS

 SUSIMO intervention saved the day for the Subproject as remedial measures were undertaken to address backlogs, shortfalls and also the inadequacies of PO members in various aspects of organizational development.

 Lack of foresight as to shortfall in manpower can greatly affect the outcome of plantation target often leading to substantial revision/ reduction.

 It is recommended that a rigid and faithful evaluation of the performance of the SMP procedures while closely monitoring the performance of contractors be conducted by the DENR.

 It is recommended that a team of qualified appraisal team for an honest- to-goodness site appraisal be trained by the DENR to come up with a credible report.

 The DENR should conduct a rigid evaluation of CO contractor with emphasis on the technical and social capabilities of its staff.

 The DENR should put emphasis on the maturity of the PO prior to the conduct of CSD to ensure attainment of goals and objectives.

 The DENR should emphasize timing in the conduct or implementation of infrastructure development preferably, at the start of CSD.

 Nearby communities not involved in the project implementation should also be recipients of various trainings and other inputs such as educational and health support so as to widen the scope of project benefits.

 It is recommended that the SUSIMO be strengthened and maintained as a field office to directly oversee and assist not only the FSP Subproject but also regular reforestation projects of the agency.

42 FORESTRY SECTOR PROJECT LOAN NO. PH-P 135 Table 1. TRAINING ATTENDED BY PEOPLES ORGANIZATION

NO. OF TRAINING TRAINORS INCLUSIVES DATES PARTICIPANTS 1. CSD and nursery For. Gregorio Adriatico 31 Jan 19-22, 1998 2.establishment Oficers training For. Jun Racoma 31 May 5, 1998

3. Simple bookeeping and Mr. Mariano Eugenio 32 May 23, 1998 accounting 4. Community Revolving fund Agriculturist Rosalia 39 July 8-9, 1998 Pungtilan 5. Team building/value For. Jun Racoma 35 Dec. 1, 1998 formation 6. Officers training For Jun Racoma 32 Dec. 2 1998 7. Forest fire prevention and For. Alejandro Galleon, For. 32 Feb. 17, 1998 control Rafael Pambid, Teodoro Padamada 8. Financial management Mr. Mariano Eugenio 20 April 20, 1999 9. Team building and value For. Jun Racoma 33 April 28-29, 1999 formation 10. Officers Training/Training For. Jun Racoma 31 May 5, 1998 on Team Building and Value Formation 11. Task planning Regional Office 20 August 9, 1999 12. Community development For. Manuel Aquino and 35 Aug. 13-15, 1999 Susan Lozano 13. Trainors training For.Alejandro Galleon, For 32 Nov. 19-20, 1999 Noemi Ruadap 14. Financial Management Mr. Mariano Eugenio, CO 22 April 4, 2001 Worker BILEG Group 15. Swine Care and Mr. Crisologo Tomas 45 August 29, 2001 Management 16. State of the Philippine Ms. Elvie Anipew, Ms. Diana 10 September 4, 2001 Environment Rosqueta, Midwife-RHU 17. Swine Care and Loida V. Chee, DVM and Mr. 15 September 6, 2001 Management Crisologo Tomas 18. CBFM Re-orientation For. Rusty de Guzman 34 September 30, 2001

19. TECHNO-DEMO On DOST, MAIS, TESDA 31 December 4-5, 2001 Mushroom Production 20. Mushroom Production Amando Ganal, DOST, 18 December 12-13, Segundo Martinez, MAIS 2001 Extension Officer and Felander Madriaga, DOST 21. Planning, IEC, Livelihood COSU Head, AP 25 March 17-23, 2002 Workshop 22. Pre-membership Training COSU, AP, PO Vice- 11 April 28, 2002 President FORESTRY SECTOR PROJECT LOAN NO. PH-P 135 Table 1. TRAINING ATTENDED BY PEOPLES ORGANIZATION

NO. OF TRAINING TRAINORS INCLUSIVES DATES PARTICIPANTS 23. Livelihood Development Ms. Annie Ambrosio-TA; Mr. 14 May 28-30, 2002 Strategy for FSP Yogi Mizuguchi-TA; Ms. Elvie Anipew-AP/Facilitator

24. Leadership training For. Noemi Ruadap, For. 20 August 1, 2002 Rustico de Guzman 25. Social Technology For. Noemi Ruadap, For. 13 August 30-31, 2002 Rusty de Guzman, rev. Citadel Doctolero, Bill William Ganipes 26. Re-echo on Production and For. Rusty de Guzman, Ms. September 3-4, 2002 Marketing of NTFP/NWFP Elvie Anipew-AP data not 27. Directorship and NORLUCEDEC Training October 9-11, 2002 available Leadership Training Officers Management 28. Communication Skills and NORLUCEDEC Training 3 October 14-16, 2002 Cash Management Officers 29. Orientation on CBFM AP, Vice-President Rolly 28 October 5, 2002 Lacaba 30. Orientation on CBFM and AP, Vice-President Rolly 31 October 12, 2002 PMES to new members Lacaba, Santos Fiesta, Luciano Silvestre 31. Orientation on CBFM AP, Vice-President Rolly 17 November 9, 2002 Lacaba, Luciano Silvestre 32. Preparation of feasibility TESDA, Ilocos Norte 30 Dec. 10-11, 2002 study 33. PMES on Cooperative Mr. Inosencio Martin 50 December 17-18, 2002 34. Pre-membership Education PO/SUSIMO 5 March 23, 2003 Seminar 35. Paralegal training ARED for Legal Affairs 27 April 10-11, 2003 Atty. Allan Barcena; CENRO FMS Noemi Ruadap; Rustico De Guzman, FRDD

36. Planning Session of RUP on PO Planning Team 12 April 27-28, 2003 eco-tourism FORESTRY SECTOR PROJECT LOAN NO. PH-P 135 Table 2. Subproject Performance

Component/Species OVERALL Year Planted Planted Area Planted Survival (%) WASR (%)

1998 REFORESTATION 407.76 Eucalyptus 41.33 82.02 Acacia auri and 40.08 78.52 mangium Narra 31.15 76.07 Mahogany 86.93 85.06 Gmelina 208.27 83.04 AGROFORESTRY 231.67 Mango 136.67 80.05 Cashew 95.00 79.51 Jackfruit - 1999 REFORESTATION 728.54 Eucalyptus 86.10 89.07 Acacia auri and 59.77 81.05 mangium Narra 137.12 81.09 Mahogany 154.15 79.07 Gmelina 291.40 85.02 RATTAN 298.11 79.56 AGROFORESTRY 188.48 Mango 172.03 91.01 Cashew 9.45 80.07 Jackfruit 7.00 71.03 2000 AGROFORESTRY 81.05 Mango Cashew Jackfruit

TOTAL 1,854.56 81.05 FORESTRY SECTOR PROJECT LOAN NO. PH-P 135 Table 3. Subproject Site Management Office Equipment

Procured ITEM Specifications Qty Cost (PhP) Date/year procured 1. KIA Ceres KIA Crosstrak 4 1 9/30/2002 680,000.00 x 4 2. Power generator Engine, gasoline, 1 4/23/2001 44,096.00 GS 280, 3.5 KVA 3. Computer w/ HP Brio PC Intel 1 2/20/2001 70,850.00 software Pentium III 733 mhg 4. Printer Hp Deskjet 1 4/27/2001 5,811.52 model 840 C 5. UPS 500 VA Gamatronic 1 4/15/2001 5,720.00 Compact Model 520VA 6. GIS Software Comb software & 1 3/28/2001 44,460.00 (maptitude) geographic data

7. GPS Global positioning 1 3/28/2001 105,000.00 Promark X

8. Handheld Radio VHF, FM COM 2 1/12/2001 29,993.28 Transceiver Model IC-F3GT 9. Foresters Surveying 2 5/21/2001 65,680.00 transit compass, Ushikata, model S-27 10. Brunton Kataoke br., 4 3/28/2001 19,552.00 compass Model BCD-90 11. Steel/Nylon Tajima Br. 2 4/23/2001 2,700.00 Tape/Chain 12. Abney hand Model:OSK 17251 4 5/21/2001 9,568.00 level 13. Rain gauge Digital rainwise 1 5/28/2001 6,300.00 14. Lettering set Linemaster 2000 1 September 30,2 002 4,992.00 (Leroy Set) 15. Steel cabinet Basteel - 16. Binocular 7X50 Diastone 3 12,168.00 made in Japan 17. Motorcycle XL 125 3 From ADB Fund 18. Base Radio VHF, FM COM 1 1/12/2001 64,789.92 Model IC-F3GT 19. Manual Oliveti, 18 1 3/28/2001 3,309.50 typewriter carriage 20. Diameter tape 2 3/29/2001 2,660.40 21. Planimeter OSKK KOIZUMI 1 7,800.00

TOTAL 1,185,450.62 FORESTRY SECTOR PROJECT LOAN NO. PH-P 135 Table 4. TRAININGS ATTENDED BY SUSIMO

NO. OF INCLUSIVES TRAINING TRAINORS PARTICIPANTS DATES

1.SUSIMO Orientation Course NFDO/ TA Team 8 Jan 23-24, 2001 Plannng Workshop 2. FSP Re-Orientation Course for NFDO/ TA Team 7 Feb.26-28, 2003 SUSIMO and other Project Implementers 3. Forestry Sector Project NFDO/ TA Team 10 Oct. 15-19, 2002 Phaseout/Phase in Planning Workshop 4. Planning Assessment of FSP NFDO/ TA Team 1 May 14-16, 2003 Projects 5. On-the-job training on GIS/GPS operation 6. Workshop on benefit sharing system for CBFM POs data not available 7. Workshop on Business Plan Preparation 8. Team Building towards Moral Recovery 9. On-the-job training on Map NFDO 2 May 16-26, 2001 Digitizing 10. Orientation & planning workshop on CRMF preparation 11. Orientation on Technical Integration of the community resource map & technical map data not available 12. Community-based Resource mapping accounting 13. Biodiversity assessment training FORESTRY SECTOR PROJECT LOAN NO. PH-P 135

Table 5a. Livelihood Project Established

Name of Livelihood Project : Fertilizer Lending

Implementor : SUFAI

No. of Beneficiaries : 49

Amount of investment : PhP 122,813.20

Date of Feasibility Study : none

Date started : Sep-02

Status : Suspended

Net Income : none

CFDF : none

Linkages Developed : LGU of Dingras, Ilocos Norte, Sanjera FORESTRY SECTOR PROJECT LOAN NO. PH-P 135

Table 5b. Livelihood Project Established

Name of Livelihood Project : Sari-sari Store

Implementor : SUFAI

No. of Beneficiaries : 297

Amount of investment : PhP 20,000.00

Date of Feasibility Study : none

Date started : Sep-98

Status : On-going

Net Income : PhP 2,400.00

CFDF : PhP 148,577.38

Linkages Developed : FORESTRY SECTOR PROJECT LOAN NO. PH-P 135

Table 5c. Livelihood Project Established

Name of Livelihood Project : SWINE DISPERSAL

Implementor : SUFAI

No. of Beneficiaries : 15

Amount of investment : Program of Dept. of Agriculture in Ilocos Norte

Date of Feasibility Study : none

Date started : Dec-02

Status : On-going

Net Income : none

CFDF : PhP 148,577.38

Linkages Developed : MOA with Dept. of Agriculture, LGU of Dingras and Marcos, Ilocos Norte (provision of training) FORESTRY SECTOR PROJECT LOAN NO. PH-P 135

Table 5d. Livelihood Project Established

Name of Livelihood Project : GOAT DISPERSAL

Implementor : SUFAI

No. of Beneficiaries : 25

Amount of investment : PhP 20,000.00

Date of Feasibility Study : none

Date started : Apr-99

Status : On-going

Net Income : NONE

CFDF : PhP 148,577.38

Linkages Developed : MOA with Dept. of Agriculture, LGU of Dingras and Marcos, Ilocos Norte FORESTRY SECTOR PROJECT LOAN NO. PH-P 135

Table 5e. Livelihood Project Established

Name of Livelihood Project : RIVER RESORT -Videoke and Cottage Rental

Implementor : SUFAI

No. of Beneficiaries : 110

Amount of investment : PhP 57,000.00

Date of Feasibility Study : none

Date started : Oct-03

Status : On-going

Net Income : PhP 7,307.00

CFDF : PhP 148,577.38

Linkages Developed : FORESTRY SECTOR PROJECT LOAN NO. PH-P 135

Table 5f. Livelihood Project Established

Name of Livelihood Project : SEEDLING PRODUCTION

Implementor : SUFAI

No. of Beneficiaries : 150

Amount of investment : Materials locally available. Incurred small amount for nails, roofs, and some lumber for postings

Date of Feasibility Study : none

Date started : Oct-03

Status : On-going

Net Income : none yet

CFDF : PhP 148,577.38

Linkages Developed : FORESTRY SECTOR PROJECT LOAN NO. PH-P 135

Table 5g. Livelihood Project Established

Name of Livelihood Project : POULTRY

Implementor : SUFAI

No. of Beneficiaries : 150

Amount of investment : Materials locally available. Incurred small amount for nails, roofs, and some lumber for postings

Date of Feasibility Study : none

Date started : Feb-04

Status : Suspended

Net Income : PhP 37,131.95 (per latest accounting)

CFDF : PhP 148,577.38

Linkages Developed : FORESTRY SECTOR PROJECT LOAN NO. PH-P 135

Table 5h. Livelihood Project Established

Name of Livelihood Project : TRUCKING

Implementor : SUFAI

No. of Beneficiaries : 60

Amount of investment

:

Date of Feasibility Study : none

Date started : 1998

Status : On-going/seasonal

Net Income : PhP 432.00

CFDF : PhP 148,577.38

Linkages Developed : FORESTRY SECTOR PROJECT LOAN NO. PH-P 135 Table 6. Subproject Status Report

NAME/LOCATION STATUS OF PROGRESS PROJECT PROJECT COST Region OF THE (O:on going C: Completion) AREA (ha) (Mil peso) SUBPROJECT SMP CO CSD M & E INFRA Laoag Watershed: Madongan Subwatershed Rehabilitation Subproject/Municipal ities of Dingras and Marcos, Ilocos Norte III 1,869.56 59.899113 C C C C C

TOTAL 1,869.56 59.899113 FORESTRY SECTOR PROJECT LOAN NO. PH-P 135 Table 7. SMP Cost Estimate Per Activity

TARGET UNIT OF ACTIVITY UNIT COST TOTAL COST OUTPUT MEASURE

I. SURVEY AND MAPPING 5,000.00 hectare 377.32 1,886,585.60

a. Perimeter survey b. Contour Survey c. Identification of Non-plantable areas and foot trails d. Preparation of control and operational maps

II. SECTIONING AND BLOCKING 5,000.00 hectare 186.16 930,792.80

a. Installation of UTM monuments b. Installation of corner posts

III. PREPARATION OF TECHNICAL 1,461,585.60 REPORT AND RECOMMENDATION

a. Data gathering b. Physical/Socio-economic survey c. Community consultation d. Report writing GRAND TOTAL 5,000.00 ha 855.79 4,278,964.00 FORESTRY SECTOR PROJECT LOAN NO. PH-P 135 Table 8. Community Organizing Cost Estimate Per Activity

UNIT ACTIVITIES TARGET of UNIT COST TOTAL COST MEASURE 1. Social Investigation hectare

2. Information and Education Campaign

3. Documentation Process

4. Identification of possible CBFMA 5. Organizing Activities

6. Community Activities

7. Contingency

TOTAL 2,447.00 1,600.00 3,915,200.00 FORESTRY SECTOR PROJECT LOAN NO. PH-P 135 Table 9a. Cost Estimate for Agroforestry Plantation Per Activity

TARGET UNIT OF UNIT TOTAL MAJOR ACTIVITY/ACTIVITY OUTPUT MEASURE COST COST 1. SEEDLING PRODUCTION a. Nursery Site Preparation b. Seeds/Planting Stock c. Soil Collection d. Bagging e. Maintenance & Fertilizer SUB-TOTAL 435.15 hectare 3,628.38 1,578,891.55 2. PLANTATION ESTABLISHMENT a. Strip brushing/clearing b. Staking /hole digging c. Hauling/transport d. Planting SUB-TOTAL 435.15 hectare 1,275.91 555,210.45 3. MAINTENANCE & PROTECTION a. Ringweeding, cultivation, fertilizer 435.15 hectare 1,567.18 681,958.43 b. Replanting (including transport) 435.15 hectare 228.31 99,349.76 c. Patrol Works 435.15 hectare 810.25 352,580.78 SUB-TOTAL 1,133,888.98 4. ADMINISTRATION & SUPERVISION a. First and Second Year 239,000.38 b. Third Year 64,363.81 c. Fourth Year 21,988.69 d. Fifth Year 16,740.43 e. Sixth Year 21,016.80 SUB-TOTAL 363,110.11 TOTAL 435.15 hectare 8,344.48 3,631,101.08 FORESTRY SECTOR PROJECT LOAN NO. PH-P 135 Table 9b. Cost Estimate For Rattan Plantation Per Activity

UNIT OF TARGET MAJOR ACTIVITY / ACTIVITY Unit Cost TOTAL COST MEASURE OUTPUT

1. SEEDLING PRODUCTION hectare 298.11 5,184.19 1,545,458.41 a. Nursery Site Preparation b. Planting Stock c. Soil Collection d. Bagging of soil & seedling e. Maintenance & Fertilizer SUB-TOTAL 1,545,458.41 2. PLANTATION ESTABLISHMENT hectare 298.11 4,893.73 1,458,870.12 a. Strip brushing/clearing b. Staking /hole digging c. Hauling d. Planting SUB-TOTAL 1,458,870.12 3. MAINTENANCE & PROTECTION hectare 298.11 6,653.94 1,983,606.78 a. Ringweeding, cultivation, fertilizer 1,724,901.65 b. Replanting 34,178.72 c. Patrol Works 224,526.41 d. Tools and materials - SUB-TOTAL 1,983,606.78 4. ADMINISTRATION & SUPERVISION a. First and Second Year 364,155.70 b. Third Year 14,519.40 c. Fourth Year 8,629.00 d. Fifth Year 64,434.94 e. Sixth Year 102,475.99 SUB-TOTAL 554,215.03 TOTAL ha 298.11 18,590.96 5,542,150.34 FORESTRY SECTOR PROJECT LOAN NO. PH-P 135 Table 9c. Cost Estimate For Plantation Species/Reforestation Per Activity

UNIT OF TARGET MAJOR ACTIVITY / ACTIVITY Unit Cost TOTAL COST MEASURE OUTPUT 1. SEEDLING PRODUCTION hectare 1,136.30 3,136.29 3,563,765.15 a. Nursery Site Preparation b. Seeds/Planting Stock c. Soil Collection d. Bagging e. Maintenance & Fertilizer SUB-TOTAL 3,563,765.15 2. PLANTATION ESTABLISHMENT hectare 1,136.30 2,719.12 3,089,730.91 a. Strip brushing/clearing b. Staking /hole digging c. Hauling/transport c. Planting SUB-TOTAL 3,089,730.91 3. MAINTENANCE & PROTECTION hectare 1,136.30 7,931.46 9,012,518.47 a. Ringweeding, cultivation, fertilizer 6,980,718.40 b. Replanting(including transport) 1,151,136.72 c. Patrol Works 880,663.35 d. Tools & materials - SUB-TOTAL 9,012,518.47 4. CSD Infrastructure 3,888,196.12 a. Bunkhouse unit 12.00 75,000.00 900,000.00 b. Lookout Tower unit 6.00 50,000.00 300,000.00 c. Graded trail sqm 52,500.00 6.06 318,053.06 d. Fireline sqm 394,515.00 6.01 2,370,143.06 SUB-TOTAL 3,888,196.12 5. ADMINISTRATION & SUPERVISION a. First and Second Year 998,583.78 b. Third Year 135,702.83 c. Fourth Year 315,271.37 d. Fifth Year 363,678.15 e. Sixth Year 359,453.94 SUB-TOTAL 2,172,690.07 TOTAL hectare 1,136.30 19,120.74 21,726,900.71 FORESTRY SECTOR PROJECT LOAN NO. PH-P 135 Table 10. MONITORING and EVALUATION Cost Estimate Per Activity

Unit Target ACTIVITIES of Unit Cost Total Cost Output Measure Physical Validation Component 1. Verification of Boundaries, UTM monuments and block corner post 1,869.56 ha 50.00 93,478.00

2. Seedling Production/Inventory Analysis 1,869.56 ha 60.00 112,173.60

3. Height and diameter measurement 1,869.56 60.00 112,173.60

4. Other activities - e.g. 1,869.56 ha 503.14 940,658.08 Inspection of Infrastructures & other support activities (organization of validation team, preparation of needed instrument, equipment and materials, levelling- off meeting with PO, AP, and DENR/SUSIMO, preparation of draft report, summary tables documentation, presentation/discussion of draft report to PO, DENR, LGU and AP, finalization and submission of report) II. Systematic Sampling (10%) 1,869.56 ha 858.65 1,605,299.20

5. Mobilization Fund 1,869.56 ha -

S U B T O T A L 2,863,782.48

Institutional and Project Benefit Assessment 1. Data Collection and preliminary assessment 175,000.00

2. Formulation of findings and recommendation 1,893.00 ha 23.77 45,000.00

3. Other activities (e.g. organization of the 1,893.00 ha 110.91 209,950.00 team, leveling-off/meeting with PO ,SUSIMO, integration, preparation, presentation , finalization and submission of report to the DENR, LGU, PO) S U B T O T A L 429,950.00

III. Project Management Cost

G R A N D T O T A L 1,869.56 hectare 1,761.77 3,293,732.48 FORESTRY SECTOR PROJECT LOAN NO. PH-P 135

Table 11a. Infrastructure Project

Infrastructure Project : Rehabilitation of farm-to-market road

Location : San Marcelino Dingras, and Cacafean, Marcos, Ilocos Norte

Contractor : AJ TAYLAN Construction Corporation

Contract Cost : PhP 16,603,997.27 (Contract Packaged with Hanging Bridge)

Contract Duration : 240 days

Effectivity of Notice to proceed : October 1, 2002

Expected Completion date : July 25, 2003

Revised Completion date : August 25, 2003

Date of MOA with LGU : August 25, 2003

Description of the Infrastructure Project The all weather, farm to market road is 2.5 kms. in length starting from the road junction of the NIA Madongan Diversion Dam. It is complete with side ditch and canals, reinforced concrete pipes and box culverts with established retaining walls and rip raps. It has carriage way width of 3.0 meters and FORESTRY SECTOR PROJECT LOAN NO. PH-P 135

Table 11b. Infrastructure Component

Infrastructure Project : Hanging Bridge

Location : San Marcelino Dingras, and Cacafean, Marcos, Ilocos Norte

Contractor : AJ TAYLAN Construction Corporation

Contract Cost : PhP 16,603,997.27 (Contract Packaged with Farm-to-market Road)

Contract Duration : 240 days

Effectivity of Notice to proceed : October 1, 2002

Expected Completion date : April 1, 2002

Revised Completion date : July 25, 2003

Date of MOA with LGU : August 25, 2003

Description of the Infrastructure Project The hanging bridge has a length of 50.50 meters and 1.5 meters width, all weather type and serves as the vital link from the access road to the rest of the established plantation. FORESTRY SECTOR PROJECT LOAN NO. PH-P 135 Table 12. Annual Work and Financial Plan

Planned Actual 1994 ACTIVITIES Planned Actual Unit Cost Total Cost Unit Cost Total Cost Target Budget Target Budget

I. REFORESTATION/WATERSHED/CBFM 61,660,917.25 59,899,113.04 3,375,000.00 253,125.00 A. SMP 675.00 3,375,000.00 855.79 4,278,964.00 5,000.00 3,375,000.00 5,000.00 253,125.00 B. CO (Phase 1 & 2) 1,600.00 3,915,200.00 1,600.00 3,915,200.00 1. Old Sites - - - Year 1 - - -Year 2 - - 2. New Sites 1,600.00 3,915,200.00 1,600.00 3,915,200.00 - Year 1 1,040.00 2,544,880.00 1,741,578.84 -Year 2 560.00 1,370,320.00 2,173,621.16 C. CSD 16,395.54 40,119,898.00 17,013.21 31,807,219.29 1. Delineation, Landuse Survey & Mapping 325.19 795,751.29 370.69 907,067.16 2. Soil Erosion Control/SWC - - a. Infrastructure - - b. Trails and footpath - - c. Plantation - - - c.1. Hedgerows/Firebreaks - - - 3. Vegetative Measures (Plantation Establishment) 14,762.89 36,124,792.71 16,528.03 30,900,152.13 a. Agroforestry 18,529.13 17,009,739.36 8,344.48 3,631,101.08 b. Assisted Natural Regeneration - - - c. Enrichment Planting - - - - d. Tree Plantation 12,501.67 19,115,053.35 19,010.64 27,269,051.05 d.1. Bamboo 203,422.62 - d.2. Rattan 17,139.79 8,107,122.37 18,590.96 5,542,150.34 d.3. Mangrove - - d.4. Plantation Species 10,309.65 10,804,508.36 19,120.74 21,726,900.71 e. Timber Stand Improvement - - 4. Inventory Residual Forest - - 5. Income Enhancement Project - - Contingency 3,199,354.00 D. Major Infrastructure 13,042,833.89 16,603,997.27 E. Monitoring & Evaluation 651.32 1,207,985.36 1,761.77 3,293,732.48 -Year 1 97.70 181,197.80 245.86 459,655.40 -Year 2 553.63 1,026,787.56 757.97 1,417,077.08 -Year 3 - 757.93 1,417,000.00

2. SUSIMO 1,490,390.00 1,798,037.31 Equipment provided to the Office Researches conducted Trainings Others

GRAND TOTAL 63,151,307.25 61,697,150.35 3,375,000.00 253,125.00 FORESTRY SECTOR PROJECT LOAN NO. PH-P 135 Table 12. Annual Work and Financial Plan

1995 1996 ACTIVITIES Planned Actual Planned Actual Target Budget Target Budget Target Budget Target Budget

I. REFORESTATION/WATERSHED/CBFM - 1,368,994.25 - 2,656,844.75 A. SMP 5,000.00 1,368,994.25 5,000.00 2,656,844.75 B. CO (Phase 1 & 2) - - 1. Old Sites - Year 1 -Year 2 2. New Sites - - - Year 1 -Year 2 C. CSD - - 1. Delineation, Landuse Survey & Mapping 2. Soil Erosion Control/SWC - - a. Infrastructure b. Trails and footpath c. Plantation - - c.1. Hedgerows/Firebreaks 3. Vegetative Measures (Plantation Establishment) - - a. Agroforestry b. Assisted Natural Regeneration c. Enrichment Planting d. Tree Plantation - - d.1. Bamboo d.2. Rattan d.3. Mangrove d.4. Plantation Species e. Timber Stand Improvement 4. Inventory Residual Forest 5. Income Enhancement Project Contingency D. Major Infrastructure E. Monitoring & Evaluation - - -Year 1 -Year 2 -Year 3

2. SUSIMO Equipment provided to the Office Researches conducted Trainings Others

GRAND TOTAL - 1,368,994.25 - 2,656,844.75 FORESTRY SECTOR PROJECT LOAN NO. PH-P 135 Table 12. Annual Work and Financial Plan

1997 1998 ACTIVITIES Planned Actual Planned Actual Target Budget Target Budget Target Budget Target Budget

I. REFORESTATION/WATERSHED/CBFM - - 20,804,432.00 9,549,912.66 A. SMP B. CO (Phase 1 & 2) - - 2,447.00 2,544,880.00 1,741,578.84 1. Old Sites - Year 1 -Year 2 2. New Sites - - 2,447.00 2,544,880.00 1,741,578.84 - Year 1 2,447.00 2,544,880.00 1,741,578.84 -Year 2 C. CSD - - - 1,954.00 18,259,552.00 7,808,333.82 1. Delineation, Landuse Survey & Mapping 2,447.00 795,751.29 609,343.46 2. Soil Erosion Control/SWC - - - - - a. Infrastructure b. Trails and footpath c. Plantation - - - - c.1. Hedgerows/Firebreaks 3. Vegetative Measures (Plantation Establishment) - - 1,954.00 16,007,695.71 639.43 7,198,990.36 a. Agroforestry 918.00 9,514,687.04 231.67 1,578,202.20 b. Assisted Natural Regeneration c. Enrichment Planting d. Tree Plantation - - 1,036.00 6,493,008.67 407.76 5,620,788.16 d.1. Bamboo 8.00 116,962.51 d.2. Rattan 1,532,562.62 d.3. Mangrove d.4. Plantation Species 1,028.00 6,376,046.16 407.76 4,088,225.53 e. Timber Stand Improvement 4. Inventory Residual Forest 5. Income Enhancement Project Contingency 1,456,105.00 D. Major Infrastructure E. Monitoring & Evaluation - - - - -Year 1 -Year 2 -Year 3

2. SUSIMO Equipment provided to the Office Researches conducted Trainings Others

GRAND TOTAL - - 20,804,432.00 9,549,912.66 FORESTRY SECTOR PROJECT LOAN NO. PH-P 135 Table 12. Annual Work and Financial Plan

1999 2000 ACTIVITIES Planned Actual Planned Actual Target Budget Target Budget Target Budget Target Budget

I. REFORESTATION/WATERSHED/CBFM 14,109,428.80 11,289,403.13 8,886,438.56 2,605,865.83 A. SMP B. CO (Phase 1 & 2) 2,447.00 1,370,320.00 2,173,271.16 - 350.00 1. Old Sites - Year 1 -Year 2 2. New Sites 1,370,320.00 2,173,271.16 - 350.00 - Year 1 -Year 2 2,447.00 1,370,320.00 2,173,271.16 350.00 C. CSD 1,419.00 12,557,911.00 1,215.13 9,116,131.97 2,447.00 7,859,651.00 2,145,860.43 1. Delineation, Landuse Survey & Mapping 297,723.70 2. Soil Erosion Control/SWC - - - - a. Infrastructure b. Trails and footpath c. Plantation - - - - c.1. Hedgerows/Firebreaks 3. Vegetative Measures (Plantation Establishment) 1,419.00 11,556,483.00 1,215.13 8,818,408.27 2,447.00 7,232,885.00 1,434.41 2,145,860.43 a. Agroforestry 918.00 3,747,525.20 188.48 811,801.60 918.00 3,747,527.11 - 643,638.09 b. Assisted Natural Regeneration c. Enrichment Planting d. Tree Plantation 501.00 7,808,957.80 1,026.65 8,006,606.68 1,529.00 3,485,357.89 1,434.41 1,502,222.34 d.1. Bamboo 8.00 43,230.69 8.00 43,229.42 d.2. Rattan 473.00 5,533,936.59 298.11 2,108,994.41 473.00 1,286,592.97 298.11 145,194.01 d.3. Mangrove d.4. Plantation Species 20.00 2,231,790.52 728.54 5,897,612.27 1,048.00 2,155,535.49 1,136.30 1,357,028.33 e. Timber Stand Improvement 4. Inventory Residual Forest 5. Income Enhancement Project Contingency 1,001,428.00 626,766.00 D. Major Infrastructure E. Monitoring & Evaluation 181,197.80 - 1,026,787.56 459,655.40 -Year 1 1,854.66 181,197.80 459,655.40 -Year 2 1,854.66 1,026,787.56 -Year 3

2. SUSIMO Equipment provided to the Office Researches conducted Trainings Others

GRAND TOTAL 14,109,428.80 11,289,403.13 8,886,438.56 2,605,865.83 FORESTRY SECTOR PROJECT LOAN NO. PH-P 135 Table 12. Annual Work and Financial Plan

2001 2002 ACTIVITIES Planned Actual Planned Actual Target Budget Target Budget Target Budget Target Budget

I. REFORESTATION/WATERSHED/CBFM 1,442,784.00 3,458,890.61 - 5,865,612.22 A. SMP B. CO (Phase 1 & 2) ------1. Old Sites - Year 1 -Year 2 2. New Sites - - - - - Year 1 -Year 2 C. CSD 1,442,784.00 1,854.56 3,458,890.61 - - 1,869.56 4,448,535.14 1. Delineation, Landuse Survey & Mapping 2. Soil Erosion Control/SWC - - - - a. Infrastructure b. Trails and footpath c. Plantation - - - - c.1. Hedgerows/Firebreaks 3. Vegetative Measures (Plantation Establishment) 1,521.00 1,327,729.00 1,854.56 3,458,890.61 - 1,869.56 4,448,535.14 a. Agroforestry - 420.15 219,886.91 435.15 167,404.29 b. Assisted Natural Regeneration c. Enrichment Planting d. Tree Plantation 1,521.00 1,327,729.00 1,434.41 3,239,003.70 - 1,434.41 4,281,130.85 d.1. Bamboo d.2. Rattan 473.00 1,286,592.82 298.11 86,290.02 298.11 644,349.37 d.3. Mangrove d.4. Plantation Species 1,048.00 41,136.18 1,136.30 3,152,713.67 1,136.30 3,636,781.49 e. Timber Stand Improvement 4. Inventory Residual Forest 5. Income Enhancement Project Contingency 115,055.00 D. Major Infrastructure E. Monitoring & Evaluation - - - 1,417,077.08 -Year 1 -Year 2 1,417,077.08 -Year 3

2. SUSIMO 455,000.00 504,152.40 739,000.00 625,720.00 Equipment provided to the Office Researches conducted Trainings Others

GRAND TOTAL 1,897,784.00 3,963,043.01 739,000.00 6,491,332.22 FORESTRY SECTOR PROJECT LOAN NO. PH-P 135 Table 12. Annual Work and Financial Plan

2003 Planned (TOTAL) Actual (TOTAL) ACTIVITIES Planned Actual Target Budget Target Budget Target Budget Target Budget

I. REFORESTATION/WATERSHED/CBFM 13,042,833.89 22,850,464.59 61,660,917.25 59,899,113.04 A. SMP 5,000.00 3,375,000.00 5,000.00 4,278,964.00 B. CO (Phase 1 & 2) - - 2,447.00 3,915,200.00 2,447.00 3,915,200.00 1. Old Sites - - - Year 1 - - -Year 2 - - 2. New Sites - 2,447.00 3,915,200.00 2,447.00 3,915,200.00 - Year 1 2,447.00 2,544,880.00 2,447.00 1,741,578.84 -Year 2 2,447.00 1,370,320.00 2,447.00 2,173,621.16 C. CSD - - 1,869.56 4,829,467.32 2,447.00 40,119,898.00 1,869.56 31,807,219.29 1. Delineation, Landuse Survey & Mapping 2,447.00 795,751.29 2,447.00 907,067.16 2. Soil Erosion Control/SWC ------a. Infrastructure - - - - b. Trails and footpath - - - - c. Plantation - - - - - c.1. Hedgerows/Firebreaks - - - 3. Vegetative Measures (Plantation Establishment) - 1,869.56 4,829,467.32 2,447.00 36,124,792.71 1,869.56 30,900,152.13 a. Agroforestry 435.15 210,167.98 918.00 17,009,739.36 435.15 3,631,101.08 b. Assisted Natural Regeneration - - - - c. Enrichment Planting - - d. Tree Plantation - 1,434.41 4,619,299.34 1,529.00 19,115,053.35 1,434.41 27,269,051.05 d.1. Bamboo 8.00 203,422.62 - - d.2. Rattan 298.11 1,024,759.92 473.00 8,107,122.37 298.11 5,542,150.34 d.3. Mangrove - - - - d.4. Plantation Species 1,136.30 3,594,539.42 1,048.00 10,804,508.36 1,136.30 21,726,900.71 e. Timber Stand Improvement - - - - 4. Inventory Residual Forest - - - - 5. Income Enhancement Project - - - - Contingency 3,199,354.00 - D. Major Infrastructure 13,042,833.89 16,603,997.27 13,042,833.89 16,603,997.27 E. Monitoring & Evaluation - 1,417,000.00 1,854.66 1,207,985.36 1,869.56 3,293,732.48 -Year 1 1,854.66 181,197.80 1,869.56 459,655.40 -Year 2 1,854.66 1,026,787.56 1,869.56 1,417,077.08 -Year 3 1,417,000.00 - 1,869.56 1,417,000.00 - 2. SUSIMO 296,390.00 668,164.91 1,490,390.00 1,798,037.31 Equipment provided to the Office - Researches conducted - Trainings - Others - - GRAND TOTAL 13,339,223.89 23,518,629.50 63,151,307.25 61,697,150.35

Annex 1a ORGANIZATIONAL CHART OF THE PO-SUFAI THE GENERAL ASSEMBLY

BOARD OF TRUSTEES/LEGISLATIVE COMMITTEES

PRESIDENT

BOARD SECRETARY VICE PRESIDENT

PROJECT MANAGEMENT ADMINISTRATION

GENERAL MANAGER ADMINISTRATIVE OFFICER

PLANTATION DEVELOPMENT LIVELIHOOD

IGP MANAGER Bookkeeper Treasurer Auditor Driver CSD MANAGER Chief, Forester

Storekeeper IGP Treasurer Forester Forester Forester 1 2 3 WORKING COMMITTEES

COMMUNITY ORGANIZING & STRENGTHENING ADMINISTRATIVE SUPPORT, BILLING & VALIDATION

Training, Election, HRDM Grievance & Dispute IGP and Livelihood Budget & Internal Control, Credit & Loans education Negotiation & Resolution Finance Audit & & IEC Inventory

FOREST RESOURCES, UTILIZATION, MGT. & CSD

Internal Quality Infrastructure Plantation Maintenance, Inspection Support & Protection & Forestry System (IQIS) Development Laws Enforcement Annex 1b

ORGANIZATIONAL CHART OF THE M & E CONTRACTOR [TROPIC RESOURCE AND ENVIRONMENT EXTENSION SERVICES] (TREES, INC.)

Office of the Board of Chief Executive Directors (BODs) Officer (CEO/President)

Office of the Deputy CEO

Team Leader Biodiversity and Forest Environmental Planning, Development Management Monitoring, and - Forest Nursery, Impact Plantation and Evaluation Unit Assessment/ - Planning, Natural Forests Sustainability Review and Development/Mana Consultation gement Unit - M & E - Forest and - Community - Project Watershed Relations/Lin Mobilization Protection and kaging Maintenance - Environmental - Soil and Water Impact Conservation Assessment - Research - Land Use Development and Planning and Extension (R,D & E) Management Services - R, D & E Assistance Annex 1c

ORGANIZATIONAL CHART OF SUSIMO-LAOAG-MADONGAN WATERSHED SUBPROJECT

Site Management Officer

Administrative Support Unit

Community Site Development & Validation & Organizing & Management Unit Billing Unit Strengthening Unit Annex 1d

ORGANIZATIONAL CHART OF INFRASTRUCTURE CONTRACTOR (A.J. TAYLAN CONSTRUCTION CORPORATION)

PRESIDENT

Vice President for Operations Vice President for Administration (Authorized Managing Officer) (Authorized Managing Officer)

Project Manager

Project Engineer

Geodetic Engineer Materials Engineer

Equipment Engineer Safety Officer

Construction Foreman

Heavy Equipment Light Equipment Operator Operator/Driver

Skilled Workers Unskilled Workers Eucalyptus Plantation

SUSIMO Office

Organizational meeting of the PO.

Look-out tower of the PO. Truck for hire of the - another income generating livelihood project of the PO. Plantation protection and maintenance by the PO.

Completed Farm to Market Road Hanging Bridge

Sari-sari store - livelihood project of Hog Raising - livelihood project of the the PO. PO. TECHNICAL DESCRIPTION Laoag Mandongan Watershed Subproject

Corner BEARING DISTANCE (meter) 1-2 N 28 ° 36 ' E 264.62 2-3 N 24 ° 34 ' W 205.26 3-4 N 27 ° 57 ' W 115.84 4-5 N 56 ° 54 ' W 94.88 5-6 N 20 ° 56 ' W 102.88 6-7 N 8 ° 24 ' E 269.76 7-8 S 88 ° 17 ' E 89.03 8-9 N 73 ° 59 ' E 200.55 9-10 N 60 ° 6 ' E 109.19 10-11 S 61 ° 52 ' E 167.02 11-12 N 53 ° 39 ' E 1,230.20 12-13 N 25 ° 36 ' W 67.11 13-14 N 3 ° 54 ' W 69.47 14-15 N 46 ° 55 ' E 384.87 15-16 N 50 ° 7 ' E 434.54 16-17 N 60 ° 50 ' E 286.19 17-18 N 72 ° 26 ' E 636.72 18-19 N 48 ° 31 ' E 357.92 19-20 N 63 ° 2 ' E 283.63 20-21 N 89 ° 55 ' E 107.18 21-22 N 72 ° 56 ' E 467.97 22-23 S 11 ° 36 ' E 295.33 23-24 S 8 ° 45 ' W 508.84 24-25 S 27 ° 27 ' W 770.38 25-26 S 7 ° 20 ' W 338.90 26-27 S 6 ° 54 ' W 341.58 27-28 S 86 ° 40 ' E 1,688.35 28-29 S 13 ° 10 ' E 615.48 29-30 N 82 ° 14 ' E 537.54 30-31 S 18 ° 9 ' W 701.46 31-32 S 35 ° 18 ' W 401.48 32-33 S 29 ° 18 ' W 183.66 33-34 S 47 ° 36 ' W 350.16 34-35 S 51 ° 32 ' W 349.49 TECHNICAL DESCRIPTION Laoag Mandongan Watershed Subproject

Corner BEARING DISTANCE (meter) 35-36 S 29 ° 49 ' W 1,153.19 36-37 S 51 ° 40 ' W 529.97 37-38 S 65 ° 11 ' W 1,162.25 38-39 N 62 ° 40 ' W 371.31 39-40 S 72 ° 29 ' W 666.04 40-41 S 47 ° 21 ' W 152.18 41-42 S 38 ° 50 ' W 199.43 42-43 S 71 ° 58 ' W 748.38 43-44 S 75 ° 55 ' W 615.52 44-45 N 33 ° 29 ' W 358.61 45-46 N 68 ° 30 ' W 319.95 46-47 N 7 ° 52 ' W 475.97 47-48 N 82 ° 54 ' W 367.77 48-49 N 32 ° 54 ' W 349.76 49-50 N 23 ° 57 ' W 186.28 50-51 N 16 ° 56 ' W 888.66 51-52 N 15 ° 28 ' E 594.50 52-53 N 37 ° 7 ' E 486.04 53-54 N 38 ° 35 ' E 392.53 54-55 N 54 ° 59 ' E 83.98 55-56 S 77 ° 6 ' E 63.72 56-57 N 73 ° 23 ' E 428.87 Reference point: Corner 1: long-X 120 ° 46 ' 31 " lat-Y 18 0 ' 23 "