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Republic of the Philippines Conservation F Priority Protected GLOBAL ENVIRONMENT FACILITY 1(309T Public Disclosure Authorized Republicof thePhilippines Conservationof Priority Protected Areas Project Public Disclosure Authorized Public Disclosure Authorized ProjectDocument April 1994 Public Disclosure Authorized THEWORLD BANK GEF Documentation The Global Environment Facility (GEF) assistsdeveloping countries to protect the globalenvironment in four areas:global warming, pollution of internationalwaters, destructionof biodiversity,and depletion of the ozone layer. The GEF is jointlyimplemented bytheUnited NationsDevelopmentProgramme,the UnitedNationsEnvironmentProgramme, andthe World Bank. GEF Project Documents - identifiedby a greenband provideextended project- specificinformation. The implementing agency responsible for eachproject is identifiedby its logoon the cover of thedocument. GlobalEnvironment CoordinationDivision EnvironmentDepartment WorldBank 1818H Street.NW Washington,DC 20433 Telephone:(202) 473-1816 Fax:(202) 522-3256 Document of The World, Bank FOR OFFICIAL USE ONLY Report No. 11309-PH GLOBAL ENVIRONMENT FACILITY MEMORANDUM AND RECOMMENDATION OF THE DIRECTOR EAST ASIA & PACIFIC COUNTRY DEPARTMENT I OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE REGIONAL VICE PRESIDENT ON PROPOSED GRANTS FROM THE GLOBAL ENVIRONMENT TRUST FUND IN AMOUNTS EQUIVALENT TO SDR 2.0 MILLION (US$2.9 MILLION) TO THE REPUBLIC OF THE PHILIPPINES AND SDR 12.1 MILLION (US$17.1 MILLION) TO THE NGOS FOR INTEGRATED PROTECTED AREAS, INC. FOR A CONSERVATION OF PRIORITY PROTECTED AREAS PROJECT PART I: MEMORANDUM AND RECOMMENDATION April 15, 1994 Agriculture and Natural Resources Operations Division Country Department I East Asia and Pacific Region Thisdocument has a restricteddistribution and may be used by recipientsonly in the performanceof theirofficiaL duties. Its contentsmay not otherwisebe disclosedwithout World Bank authorization. Currency Eauivalents (As of March 1994) US$1.00 = P28 P1.0 = US$0.036 FISCAL YEAR July 1 - June 30 ABBREVIATIONS AND ACRONYMS asl Above Sea Level CVRP Central Visayas Regional Project DENR Department of Environment and Natural Resources DOF Department of Finance EIAs Environmental Impact Assessments GEF Global Environment Facility GET Global Environment Trust Fund GOP Government of the Philippines IPAF Integrated Protected Areas Fund LBP Land Bank of the Philippines LCB Local Competitive Bidding NGO Nongovernmental Organization NIPA NGOs for Integrated Protected Areas, Incorporated NIPAS National Integrated Protected Areas System PAs Protected Areas PAMB Protected Areas Management Board PAs Protected Areas Superintendent PAWB Protected Areas Wildlife Bureau SECAL Sector Adjustment Loan PHILIPPINES CONSERVATION OF PRIORITY PROTECTED AREAS PROJECT GRANT AND PROJECT SUMMARY Source of Grant: Global Environment Trust Fund Grant Recipients: Republic of the Philippines NGOs for Integrated Protected Areas, Inc. Amount: SDR 14.16 million (US$20.0 million equivalent) total, of which: SDR 2.031 million (US$2.87 million equivalent) to the Republic of the Philippines SDR 12.129 million (US$17.13 million equivalent) to the NGOs for Integrated Protected Areas, Inc. Terms: Grant Obiectives: The project supports the Government's policies for the design and development of a protected area system to conserve the nation's biodiversity heritage. The project would protect ten areas of high biodiversity value; improve protected area management through strengthening DENR, incorporating local people into the management structure, and establishing permanent funding mechanisms; confirm the tenure of indigenous cultural communities; and develop sustainable farms of livelihood consistent with biodiversity protection. Financing Plan Local ForeigTn Total uS$ '000 -- Government 2,856 0 2,856 GET 15.442 4.558 20.000 TOTAL 18,298 4,558 22,856 Economic Rate of Return: Not applicable Povertv Category: Program of targeted interventions. Map: IBRD 23920R his documenthas a restricteddistribution and may be used by recipients only in the performanceof I theirofficial duities. its contents may not otherwisebe discLosedwithout world Bank authorization. PHILIPPINES CONSERVATION OF PRIORITY PROTECTED AREAS PROJECT 1. Background. The Philippines includes, within its moist tropical forest, wetlands, and marine environments, an exceptionally rich assemblage of both terrestrial and marine life forms, specifically about 12,000 plant species (3,800 endemic), 170,000 species of fauna, including 960 terrestrial vertebrates (43% endemic), and about 500 species of coral. The present system of protected areas (PAs), including over 61 national parks, wildlife sanctuaries, or equivalent reserves, exists mainly on paper, for lack of resources, funds, personnel and political will. On the basis of scientific and sociological studies, a new legal framework for a "National Integrated Protected Areas System" (NIPAS) has been developed, passed Congress, and signed into law by the President; the priority areas for biodiversity conservation have been identified, and preliminary management plans for an initial core of ten priority areas have been drafted. However, the benefits of biodiversity protection primarily accrue to the international community as a whole, and the Government is unwilling to borrow externally at market rates of interest for such conservation activities. 2. This project supports the Government's policies for the design and development of a protected area system to conserve the nation's biodiversity heritage. It is an outgrowth of the recommendations of a World Bank study of environmental and natural resource management issues in the Philippines completed in 1989,/1 and a Congressional resolution the same year mandating the Government to define and develop a National Integrated Protected Areas System. The program was given high priority in the Government's environmental policy framework, the "Philippine Strategy for Sustainable Development", which was formally endorsed by the Cabinet in October 1990. Congress has passed and the President has signed into law new enabling legislation providing a secure foundation consistent with international standards for protected area designation and management. Implementing guidelines for this law, reviewed and found satisfactory by the Bank, have been issued by the Secretary of the Department of Environment and Natural Resources (DENR). 3. On paper, the NIPAS legislation and implementing guidelines have already broken new ground by embodying in law principles and approaches which elsewhere are the subject of recommendations and small-scale demonstrations. The Global Environment Facility (GEF) operation would provide a full-scale demonstration that such approaches can be successfully implemented. These features include: (a) selection of PAs based on scientific principles and studies, and categorization based on an internationally-recognized system; (b) /1 The Forestry. Fisheries and Agricultural Resource Management (ffarm) Studv (Report No. 7388-PH, January 17, 1989), later republished as a World Bank Country Study under the title Philippines Agriculture and Natural Resource Management Studv. -2- requirement that NIPAS sites be managed according to scientifically-based management plans; (c) decentralization of management authority to the PA level, with a Management Board composed mainly of community representatives having direct planning and administrative authority; (d) recognition of tenure rights of indigenous cultural communities, and inclusion of their representatives on the Management Board; (e) use of zoning within PAs and buffer zones outside PAs to provide legal opportunities for sustainable livelihood activities for tenured residents; (f) legal authorization of a national endowment fund to receive both PA revenues and external contributions to provide a sustained means of support; and (g) promotion of an assisting role for NGOs at the national and local levels in PA management, including their representation on Management Boards and exercising management powers under contract. 4. The DENR in collaboration with local non-governmental organizations (NGOs) and research institutions selected the ten areas for early inclusion in NIPAS to represent six of the most important bio-geographic zones (out of a total of 15 such zones distinguished in the Philippine Islands). The selected areas constitute a mix of terrestrial, marine and wetland environments with high endemism; and they include six existing/candidate national parks. The sites cover a total of about 1.25 million ha of land, wetland, and water area, of which terrestrial area is 746,000 ha (Map IBRD 23920). 5. A team of international and local experts was engaged in October 1990 to develop preliminary management plans for these ten protected areas. The plans were based on review and analysis of existing bio-physical data and field collection and analysis of geographic, demographic, socio-economic, legal, and other data on the areas. The plans include preliminary delineation (based on aerial mapping of existing land uses) of the scope and boundaries of the areas and any buffer zones; and draft designs for conservation and development plans for each area, which identify monitorable objectives and goals for management of the PAs. 6. These preparatory activities were financed by a Japan-World Bank Technical Assistance Grant, as part of the Bank/IDA Environment and Natural Resources Sector Adjustment Loan./2 The SECAL has addressed policy issues of sustainable resource management affecting PAs, particularly
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