1 Background The multi-billion reclamation project of a 650-hectare area off Panglao Bay of the Province of Bohol, Philippines is currently the subject of opposition from various fronts including fisherfolks, local officials, non-government organizations and local residents. The project is believed to have high environmental and economic costs as it will hasten the death of a very rich marine ecosystem in the area. Yet, two big developers are running in the race to bag the lucrative contract to develop the area despite mounting opposition. Situated in the most expensive real estate of the Panglao Island shoreline, the project has two giant developers vying for the lucrative contract with the local government. Oasis Leisure Islands Development, Inc. (OLIDI) Panglao Waterfront Development, Inc. • authorized capital: P10M (unverified) • authorized capital: P100 million (unverified) • signed a joint venture and development agreement (JVDA) • has bagged a contract with Mayor Benedicto Alcala with the provincial government of Bohol represented by authorizing the same to conduct the feasibility study then Governor Erico Aumentado and backed by provincial lawmakers • proposed reclamation site: 450 ha • proposed reclamation site: 200 ha • to be situated at the southwestern tip of Panglao Island, • the proposed reclamation area will block the vast the reclamation project, to be done by building islets in the mangrove area of Panglao Bay which is declared as area, will be developed as a commercial, entertainment and protected site with only a very narrow opening in the tourism hub with a residential community middle • offers P1M to the Provincial Government of Bohol per ha • final sharing scheme to be determined after detailed study transferred (total=P450M) The developers build on the need for more land area for the development facilities with the Panglao International Airport already in the pipeline in the current administration. Arguing that there are areas in the Panglao mainland that remain undeveloped, these however, are owned by several individuals rendering the acquisition of these lands difficult. The developers thus offer a hassle–free opportunity for their proposed commercial, tourism and even residential tourism-based communities. Panglao Oasis Islands Proposed Site Developments Planned Area to be Reclaimed by Waterfront GroupGroup Source: Panglao Oasis Islands Powerpoint Presentation, 2009 Source: Panglao Waterfront Development Powerpoint Presentation, 2009 2 ISSUES ENENENVIRONMENTEN VIRONMENT Classified as an ecologically critical area, Panglao Bay is a small bay at the southern tip of Panglao Island that encompasses the barangays of Doljo, Poblacion and Danao. Its coastline stretches to about approximately seven kilometers from Doljo Point to the tip of Danao coastline. Two small islets are situated inside the bay, which are famous tourist sites. It is part of the largely- managed area called the Bohol Marine Triangle (BMT). The BMT area covers over 1,120 square kilometers and includes the large island of Panglao, including Dauis, and small islands of Balicasag (Panglao) and Pamilacan (Baclayon). Scientific researches, including that commissioned by the UNDP/FPE funded project called the Bohol Marine Triangle Project, affirmed that the area is ecologically diverse, its species richness and ecosystem function relatively good. Among the three municipalities in the BMT area, Panglao has the biggest area of major ecosystems having 30 species of the 35 recorded species in the Philippines, nine species of seagrass out of 16 species found in the Philippines and 131 species of algae. It belongs to the 36 integrated marine conservation priorities in the country (Philippine National Biodiversity Conservation Action Plan). Hence it is prioritized for protection and effective management because of its ecological importance (provides transition zone crucial for dispersal and distribution of larvae) and global significance (migratory path of pelagic species). In the BMT area, 92 % is deep-sea or marine water. The surrounding deep-sea environment ranges from 32 to 57 meters deep and provides migratory route for whales and dolphins as well as habitat for these species and a variety of other marine life (Profile of the Bohol Marine Triangle, 2003). Eleven of the 22 known species of marine mammals in the Philippines have been reported in the area. Its richness in marine biodiversity placed Bohol as among the world’s best dive sites. Another international study conducted in the BMT area is the Panglao Marine Biodiversity Project in 2004, which recorded discovery of 6,000 new species of mollusks and 2,500 new species of crustaceans. Within the BMT area is also the area known as the Panglao Island Protected Seascape under Presidential Proclamation 426, which declares 3,856,659 square meters portion of the Panglao Island as mangrove swamp forest reserve. Key threats to the BMT resources’ health and productivity include impact of climate change, habitat destruction and damage to coral reefs, unsustainable harvesting levels, and impact from pollution as population increases. ECONOMIC Dependent on Panglao Bay are fisheries and tourism activities. About 223 hectares are utilized by seaweed growers belonging to the Panglao Seaweeds Farmers Association (PASFA), Doljo Panglao Fishermen’s Association (DOPAFIAS) and Danao United Fishermen’s Association (DUFA). This is also a traditional fishing ground used by fisherfolks coming from as far as Maribojoc Bay. This bay is also a major gleaning station of the people living along the area. It is one of the few ecosystems in the Province of Bohol that sustains a variety of gastropod species with 49 species so far collected and identified (Hermosilla et al., 2007). In fact, it has been famous as a major supplier of the seashell tiger conch in Panglao and closer municipalities. It is also a site of two marine sanctuaries of the total 9 and 15 marine protected areas in Panglao and entire BMT area, respectively. The small islet called Puntod Island situated inside the bay is a famous stop over for tourists on island-hopping tours for its pristine waters and uniquely-shaped powdery-white sandbar. Investments made both by local and foreign funding are pooled to protect and conserve the BMT area, which made all stakeholders accountable to its commitment, most especially the local government. 3 The Bohol Marine Triangle through the Silliman University Marine Laboratory (SUML) profiled the Panglao Resources as follows: Mangroves (200.38 ha); Seagrass (1,928.04 ha); Sargassum (391.15 ha); Coral Reef (281.81 ha); Mixed Coral Reef & Sargassum (29.20 ha) Algae (7.62 ha). In Panglao Bay, seagrass habitat covers the largest area. This habitat facilitates migrations of many marine species from the mangroves to the coral reefs and that loss of these habitats will have a big impact on the connectivity of mangrove to the reefs (Mumby, 2006). This area, however, is the most directly-affected area in the proposed reclamation. The disruption of the whole BMT ecosystems poses threats not only to Panglao municipalities but also to its contiguous municipalities, provinces, regions and the world. Unknown to many, seagrass habitat ranks as the most valuable ecosystem in the biosphere with a value of US $19,004 per hectare per year threefolds higher than that of the coral ecosystem (Duarte et al., 2008). Within the BMT area, seagrass ecosystem alone has an estimated total economic value for direct, indirect and option values including habitat/nursery function and biodiversity that would amount to Php 2, 380,093.53/ha (Samonte-Tan et al., 2007). Panglao Bay has the biggest seagrass area of 1,928 ha of the total 2,556 ha of seagrass in the BMT area. It has eight species of seagrass growing therein. Also, the largest area and most diverse species of mangrove forest stands in Panglao Bay in the barangays of Danao (21 species), Poblacion (12 species) and Doljo (13 species). The more diverse and larger the area, the more productive it is. The complete ecosystem of Panglao Bay also played vital function in making Balicasag Island an important dive site in the world. Mangroves and seagrass ecosystems have provided buffer or filter zones of wastes and sediments from the mainland. This system allows coral reefs to be productive and healthy. POLICY In April 2010, Provincial Government and LGU representatives met at the Philippine Reclamation Authority (PRA) Office agreeing to discuss and address the two projects. In 21 June 2010, the PRA wrote a letter to Hon. Edgardo Chatto, current Governor of the Province of Bohol, informing him of the two studies to reclaim Panglao Island. Pending any resolution against the reclamation project, the two applications for reclamation in the said area will be processed. This is despite the fact that the entire Panglao Island used to be protected under NIPAS Law (protected mangroves) under PD 2152. This decree was amended however by EO 426 by then President Gloria Arroyo in 22 July 2003. It appears that the Project has not foremostly considered environmental laws and regulations affecting reclamation as developers constantly drumbeat the yet unsubstantiated economic gains projected as a result of the project. Some of these environmental laws and regulations affecting reclamation projects include: • PD 1151 of 1977 “Philippine Environmental Policy ” which explicitly requires all public and private entities to prepare an environmental impact statement (EIS) for every action, project or undertaking that significantly affects the quality of the environment; • PD 1586 of 1978 which declared environmentally critical projects (ECPs) and projects within environmentally critical areas (ECAs) as projects which require the submission of an EIS; and • DAO (DENR) No. 37 series of 1997 which states that reclamation projects equal to or exceeding 25 has are classified as ECPs. There is also a need to revisit the provisions of the BOHOL ENVIRONMENT CODE OF 1998 to check how in line the said project is with its envisioned development. 4 LEGAL The case involves two offshore reclamation projects that cover approximately 650 hectares of the municipal waters of Panglao Bohol.