ANNUAL PROJECT REPORT

Project Title: GEF/UNDP/Scaling Up the Implementation of the Sustainable Development Strategy for the Seas of East (SDS-SEA)

Project Start: September 1, 2014

Project Completion Date: August 30, 2019 with approved one (1) year extension until August 31, 2020

Funding Agency: Global Environment Facility

Loan/Grant No. Project ID/Output ID 0087725

1

A. Executive Summary

Overall, the implementation of the GEF/UNDP/PEMSEA Project on Scaling Up the Implementation of the Sustainable Development Strategy for the Seas of East Asia (SDS-SEA) of East Asia (SDS-SEA) in the is on track in meeting the required outcomes until project completion in August 2020.

Some of the notable achievements in 2019 include:

 Component 1: completion of the National State of Oceans and Coasts of the Philippines: Blue Economy Growth. The NSOC of the Philippines, which is currently undergoing final technical review of relevant national agencies, presents an assessment of the contribution of the coastal and marine areas to the national economy, the status of ocean health, as well as highlighting the country’s initiatives towards sustainable blue economy. The NSOC highlights the significant contribution of ocean-based and ocean-related industries and economic activities, which in 2016 alone was placed at US$ 11.9 billion of total gross value added.

 Component 2: ICM scaling up target for the Philippines fully achieved. The ICM scaling up target of the Project, which is 20% of the country’s coastline covered by ICM program implementation has been exceeded, i.e., 26.85% of the Philippines’ coastline is covered by ICM based on the results of the Third Party Assessment. The 10% increase from baseline target for management effectiveness has also been achieved in the Province of based on METT ratings for 2016, 2017 and 2018 and analyzed in 2019.

 Component 3: web-based RB-IIMS completed. In partnership with DENR, the development of web-based river basin integrated information management system (RB- IIMS), including training of trainers and roll-out trainings for Regions 1, 3, 10 and CAR were completed this year. The web-based RB-IIMS will be implemented as the national database platform for priority river basins across the country.

The delivery of required outputs for the project was facilitated through the engagement and collaborations with national government agencies (e.g., DENR for NSOC publication and web- based RBIIMS development, BFAR for Macajalar Bay EAFM Plan) and academic institutions (e.g., UP for habitat assessment in Guimaras, State University for habitat assessment in and SOC report preparation; UP-Marine Science Institute for nutrient load model application in Bay watershed; State University and De La Salle Dasmariñas for the Joint Cavite Water and Solid Waste Summit).

Some of the challenges encountered for this year’s implementation include the slow down of activities in the ICM sites as a result of the election ban and the changes in leadership after the election. The limitations in the number of local personnel, and data availability and accessibility (e.g., Romblon) also resulted in some delays in the delivery of project outputs. Consultation

2 meetings with the local government to identify strategies and engagement of relevant partners have been undertaken to speed up project implementation.

B. Accomplishments by Project Outputs/Components/Activities

B.1 Component 1: Partnerships in Ocean and Coastal Governance

Component 1: Partnerships in Ocean and Coastal Governance focuses on:

a. organizing and conducting consultations, awareness building and collaborative planning forums at the national and local levels involving decision-makers, planners, public and private sector stakeholders and coastal communities;

b. improving understanding and building consensus on the importance of coastal and ocean policy;

c. promoting the integration of relevant targets into medium term development plans and regulatory frameworks, including policy/regulations aimed at reducing vulnerability of coastal communities and resources to climate change and severe weather conditions; and

d. delineating and initiating programs at the national and local levels to transform policy into actions and investments.

B.1.1 Outcome 1: A self-sustaining, country-owned, regional mechanism governing and managing large marine ecosystems (LMEs) and coastal waters, rebuilding and sustaining ecosystems services and reducing the impacts of climate change on coastal populations in the East Asian Seas region.

Activities under Outcome 1 are designed to facilitate the collaborative and joint planning with PEMSEA Partners and regional and subregional organizations, resulting in signed agreements in support of sustaining PEMSEA and SDS-SEA implementation. It also supports the periodic assessment of the SDS-SEA taking into consideration indicators and priorities that have been adopted at the national, LME, regional and global levels related to sustainable development of coasts and oceans (e.g., Sustainable Development Goals (SDG)) and building an ocean-based blue economy in the East Asian region.

In support of PEMSEA’s sustainability, PEMSEA Partner Countries continue to facilitate in- country discussions to secure voluntary contributions to PEMSEA. To date, Japan, RO Korea, and Timor-Leste have signed the 2019 cost-sharing agreements with PEMSEA and have transferred the funds to the PEMSEA Resource Facility (PRF). Annual voluntary contribution of Cambodia had been confirmed and currently being processed for transfer to the PRF. Consultation meeting with the Ministry of Natural Resources of China was conducted to discuss the continuing operation of China-PEMSEA Sustainable Coastal Management Cooperation Center and the utilization of China’s contribution to PEMSEA to demonstrate outputs and outcomes through

3

project-based approach and nature-based solutions, sharing of blue economy experience and approaches, and ICM scaling up beyond 2019.

The Government of the Philippines through the Department of Environment and Natural Resources (DENR) continues to support PEMSEA by hosting the PRF, including utilities, maintenance and repair of the office building. This year, the Philippines provided additional funding support by engaging PEMSEA’s monitoring and evaluation services. DENR also financially supported the conduct of the 23rd PEMSEA’s Executive Committee (EC) Meeting held on October 17-18, 2019 at Seda Hotel in City.

Other options to support PEMSEA’s sustainability are also being explored. During the 23rd PEMSEA’s EC meeting in October 2019, an option for protocol instrument that establishes obligations to Partner countries to provide support PEMSEA was discussed.

In terms of the periodic assessment of the SDS-SEA, the preparation of the regional State of the Coasts (SOC) report is well underway. The SOC reporting system aims to monitor the progress, impacts and benefits, and to continually improve the planning and management of SDS-SEA implementation. A regional SOC report has been drafted and is currently undergoing technical review to incorporate inputs from participating countries, partner organizations and regional programmes.

B.1.2 Outcome 2: National and local governments adopt and initiate ocean policy and institutional improvements

Actions under this specific Output support: 1) the review and assessment of national policy and legislation to identify institutional, technical and investment gaps and needs, in order to integrate and align sector-based regulatory and economic instruments with national ocean policy; 2) the re- filing of the ICM Bill at the 18th Congress; and 3) the publication and dissemination of the National State of Oceans and Coasts report.

The consultative processes conducted for the GEF/UNDP/PEMSEA Project on Scaling up the Implementation of the SDS-SEA with national counterparts and stakeholders identified gaps and barriers in policy, institutional and individual capacities. At the national and local levels, common challenges impede the realization of the SDS-SEA, as well as the ultimate goal of a sustainable ocean-based blue economy. These include lack of intersectoral, inter-regional and interagency coordinating mechanisms and national coastal and ocean policies and strategies are not yet in place,

4 or are not fully understood and promoted across sectoral agencies and programs at the central level, and sub-nationally, resulting in continuing misalignment, conflict and duplication of effort

In the Philippines, the National Marine Policy (1994) and Archipelagic Development Agenda (2004) were earlier initiatives to consolidate policies and actions on coastal and marine management, and were developed after extensive consultations, especially among government agencies responsible for activities in the coastal and marine area. However, both failed to provide the commitment or legal compulsion for stakeholder conformance. In addition, neither policy had a mechanism to ensure integration of coastal and marine priorities into the regular planning and budgeting process of sectoral national agencies and local governments. Executive Order 533 issued in 2006, adopting integrated coastal management (ICM) as the national strategy to ensure the sustainable development of the Philippines’ coastal and marine environment and resources, is an attempt to set the framework for integration, and develop a work program for implementation. An ICM Bill filed at the 17th Congress, which captures the provisions of the EO, aims to institutionalize ICM through the enactment of the Bill into ICM Act.

To date, a report on the review of existing policies, legislation, institutional mechanisms and strategies and major programs for the sustainable development of coastal and marine areas, including gaps, conflicts and overlaps, as well as complementarity with the SDS-SEA and EO 533 have been drafted. A national consultation workshop will be organized in early 2020 to present the results of the review and gather consensus among relevant stakeholders for the recommendations and next steps on strengthening and harmonizing policies and institutional mechanisms, as well as aligning major programs and projects in support of the implementation of the SDS-SEA and EO 533.

The ICM Bill, which was filed during the 17th Congress has not been enacted. Although the Project can provide technical support in the review and refinement of the ICM Bill, its re-filing in the current 18th Congress is dependent on the facilitation of the relevant Committee in the House of Representatives and in the Senate.

The Philippines’ National State of Oceans and Coasts report has been completed and is currently being layouted for printing and publication. The DENR through the Foreign Assisted Project Services has provided funding support in the printing and publication of the report. The NSOC report with blue economy theme presents an assessment of the contribution of the coastal and marine areas to the national economy, the status of ocean health, as well as highlighting the country’s initiatives towards sustainable blue economy.

5

B.1.3 Outcome 3: Innovative financing mechanisms in place for sustained operation of the country-owned regional coordinating mechanism

To support PEMSEA’s sustainability, innovative financing mechanisms need be explored and adopted. Among these options include: 1) the promotion of the suite of PEMSEA’s products and services; 2) innovative funding mechanisms in collaboration with partners, sponsoring organizations, donors, private sectors and business communities; and 3) development of pipeline projects, in collaboration with bilateral and multilateral organizations.

Some of the major accomplishments include the completion of the Post-2020 Sustainability Plan, which has been presented to the PEMSEA’s Executive Committee (EC) and the East Asian Seas Partnership Council (EAS PC) in April and July 2019, respectively. Both the EC and the EAS PC welcomed the development of the Post-2020 Sustainability Plan and recommended for its further development into a practical and operational strategy.

In terms of promoting PEMSEA’s products and services, a Consultant is currently being recruited to develop a Business Plan/Strategy for the ICM Certification and the Port Safety Health and Environmental Management System (PSHEMS). The ICM System certification is being promoted to local governments on a cost-sharing basis, i.e., the local government shoulders the cost of the certification process and PEMSEA’s services.

The setting up of an East Asia Ocean Investment Facility (EAOIF) is being explored as an innovative financing mechanism of engaging the private sectors/business communities in investments for the sustainable development of the coastal and marine areas. The EAOIF has been tabled for discussions at several EC and EAS PC meetings, which recommended to further review the initiative and ensure that the initiative will not cause conflict with the intergovernmental nature of PEMSEA. The creation of an Ad Hoc Working Group that will provide in-depth review of PEMSEA’s sustainability was presented in the EAS PC meeting in July 2019. The Meeting however recommended that the creation of an Ad Hoc Working Group may not be necessary and that PEMSEA’s sustainability may be discussed in existing PEMSEA functions and mechanisms.

In terms of new projects, the following are on the pipeline: o IKI Project on Blue Solutions for Reducing Maritime Transport GHG Emission in partnership with IMO under the Project Preparation Grant stage. o PIF developed for the Project on MPA Networking in LMEs in the ASEAN Region in coordination with UNDP and ACB; PEMSEA identified as executing partner o GEF/UNDP IRBM Project Document further updated incorporating additional queries from GEF. Project Document resubmitted to UNDP for final approval. o ATSEA Phase 2 Project Document signed by participating countries; PEMSEA pre- selected as Project Implementing Partner for regional and Papua New Guinea components; Project Cooperation Agreement between UNDP Indonesia and PEMSEA drafted and signed (Aug 2019) PNG MOA with PRF under review by PNG. Regional inception workshop for the ATSEA Phase 2 Project scheduled in November 2019. o ASEANO Project work planning meeting conducted; 27 September 2019, Bangkok, Thailand; roles and responsibilities of NIVA, CSEA and PEMSEA discussed, including

6

the immediate next steps for the conduct of project inception workshop on the first week of December 2019. o Approved project grant on plastic recycling project in Cavite Province developed in collaboration with Diocese of Foundation and PGENRO Cavite by Coca- Cola Foundation.

B.2 Component 2: Healthy and Resilient Marine and Coastal Ecosystems

Component 2: Healthy and Resilient Marine and Coastal Ecosystems aims to help participating countries achieve the 20% ICM target, by identifying priority coastal and watershed areas and major challenges to rehabilitating and/or sustaining coastal and marine ecosystems. It will use the ICM approach to strengthen local governance of and services provided by coastal and marine areas and resources and build partnerships to leverage apply skills, technologies tools, and leverage investments in on-the-ground interventions. The project will focus on:

a. habitat conservation and management in biodiversity hotspots, including improvement in the management effectiveness of new and existing MPAs and MPA networks;

b. sustainable management in threatened fishing grounds, including strengthening local applications of marine spatial planning, ecosystem-based approaches to fisheries management, and supplemental livelihood opportunities for fishers;

c. pollution reduction in priority river basins and coastal areas through the application of total allowable pollutant loading and the preparation and promotion of good practices and investments in efficient use of fertilizers as well as reductions in priority pollutants from domestic, industrial and agricultural sources;

d. building resilience to climate change and other natural and manmade hazards in vulnerable coastal communities through vulnerability assessments, disaster risk reduction and preparedness at the community level and investments in hard and soft engineering solutions to natural and manmade hazards; and

e. demonstrating innovative financial and economic instruments and other incentives designed to drive positive changes in behavior at ICM sites (e.g., revolving funds, Public Private Partnerships (PPPs), Payment for Environmental Services (PES), markets for carbon credits, Corporate Social responsibility (CSR) and certification programs (e.g., Port Safety, Health and Environmental Management Code; ICM Code).

B.2.1 Outcome 4. Increased areal extent of healthy, resilient habitats, including , coral reefs, sea grass and other coastal habitats

Activities under this Outcome include the validation of the length of coastline coverage of ICM implementation in the Philippines, the preparation of state of the coasts reports of ICM sites, capacity strengthening of ICM personnel and demonstrating the enhancement of the management

7 of marine protected areas through ICM in an ICM Learning Site. The SDS-SEA Project supports the strengthening of the governance mechanisms in the ICM sites, as well as demonstrating how addressing a particular sustainable development aspect can be enhanced through the broader framework of ICM. Figure below shows the ICM Learning Sites in the Philippines and the focused areas being demonstrated.

8

An independent Third Party Assessment (TPA) was conducted in the Philippines to validate the coastline coverage of ICM program in the country. Following the requirements of PEMSEA’s ICM Code, the Assessment evaluated ICM program implementation in 12 regions, 32 provinces and 73 municipalities and cities covering an estimated 9,747 km or 26.85% of the Philippine coastline. To TPA date, the Philippines has already achieved the target set for this Component, which is 20% of the national coastline covered by ICM program. Discussions with the Biodiversity Management Bureau (BMB) is well underway to expand the coverage of the TPA and evaluate coastal management programs in other regions, provinces, cities and municipalities of the country. Results of the TPA will also be considered in the updating of the National ICM Program (NICMP), which was developed based on the requirements of EO 533, 2006 adopting ICM as a National Strategy for the sustainable development of coastal and marine areas and resources. The conduct of a National ICM Forum to disseminate the results of the TPA and discuss the updating of the NICMP is targeted in 2020.

Continuous capacity strengthening of ICM sites on the application of various tools and methodologies were also undertaken. Among the regional trainings that were attended by representatives from ICM sites and ICM Learning Centers in the Philippines are as follows:

o Regional Training Workshop on Risk and Vulnerability Assessment conducted on 4-5 March 2019 in , Philippines and attended by representatives from , , Guimaras and Oriental o Regional Training on Coastal Use Zoning, which was co-organized with the Coastal and Ocean Management Institute Xiamen University (XMU-COMI) was conducted on 17-21 June 2019 in Xiamen, China and attended by representatives from Guimaras and the University of the Philippines-Visayas o International Symposium on Marine Microplastics conducted on 19-20 September 2019 in Busan, RO Korea and attended by representative from DENR

9

o Study Tour for Sustainable Coastal Development for PNLG members held in Xiamen, China on October – November 2019 was attended by representatives from Batangas, Bataan and Guimaras provinces.

At the local level, an ICM Refresher Training Course was organized by the Provincial Government of Guimaras on September 27-28, 2019 to orient new ICM focal persons at the municipal level, relevant provincial and national agencies, Chairs on Environment of the and Sangguniang Bayan, private sector and academe on ICM concepts, framework and principles and its application in Guimaras Province.

The provinces of Bataan, Batangas, Cavite and Guimaras, alongside 46 other member local governments and 2 associate members in 10 countries, are members of the PEMSEA Network of Local Governments for Sustainable Coastal Development (PNLG). The PNLG meets annually to discuss and share experiences in coastal and marine management. This year, the Annual PNLG Forum was held in Xiamen, China on November 1-2, 2019 back-to-back with the Xiamen World Ocean Week and attended by representatives from Bataan, Batangas, Cavite and Guimaras, including the Governors of Batangas and Guimaras.

The State of the Coasts reporting system is an indicator-based monitoring, evaluation and reporting mechanism for local government’s ICM program implementation. The provinces of Bataan, Batangas and Cavite had published their 1st SOC reports while Guimaras Province had published its 2nd SOC report in 2018. Macajalar Bay has drafted its SOC report while the province of Batangas is in

10 the process of developing its 2nd SOC report. On October 22-25, the consolidation and validation workshop for the preparation of the SOC report of Romblon Province. The province of had also published its SOC report following the format of the MPA Support Network (MSN).

In order to evaluate the increased areal extent of healthy habitats, good baseline information upon which changes can be compared is important. Insufficient if not the lack of data is however the most common situation among local governments. The Province of Batangas had a well-established MPA Network, which include 51 MPAs (i.e., 46 coral reef areas; 5 and seagrass areas) covering 1,969.934 hectares of the province’s coastal area. In 2018, the province in collaboration with the Malampaya Foundation completed the baseline habitat surveys of 21 out of the 46 marine/mangrove PAs while biophysical assessments of the remaining 30 marine/mangrove PAs were completed in 2019. With support from the SDS-SEA Project, a second cycle biophysical assessment/habitat survey will be undertaken in 2020.

Assessment and mapping of coral reefs in Tablas Island, Romblon was conducted in April 2018 by the Romblon State University with financial support from DENR. The assessment covered 24 sampling sites in 9 municipalities validating the status of about 1,795 hectares of coral reef. The results of the assessment will be included in the baseline SOC report of Romblon Province, which is currently being developed.

With support from the SDS-SEA Project and technical support of UP-Visayas, periodic assessment and monitoring of 2 MPAs (i.e., Pamanculan and Tumalintinan Point) were undertaken in 2018 and 2019. In 2018, assessments in May September 2018 revealed that the observed mean live coral cover (LCC) outside and inside the core zone of Tumalintinan Point is relatively higher (overall mean: 19.74%) than the previous survey (overall mean: 13.62%) conducted in the same sites of the MPA; same observation was obtained for Pamanculan MPA where a slight difference was observed between the two periods -overall LCC observed in May was slightly lower (66.35%) than in September (67.86%). Coral reef assessment and monitoring of the 2 MPAs in Guimaras Province was conducted on April and September 2019 and results are currently being processed by UP Visayas with monitoring results to be compared to that in 2018.

The effective management of Pamanculan and Tumalintinan Point MPAs in Guimaras Province was also evident in the results of Management Effectiveness Tracking Tool (METT) assessments conducted in 2016, 2017 and 2018 and analyzed in 2019, which showed more than 10% improvements in METT ratings.

In the Philippines, the effectiveness of MPA management was also determined using the MPA Management Effectiveness Assessment Tool (MEAT) developed by the MPA Support Network

11 through the CTI Support Project. MEAT assessments for Laguindingan, Tubajon and Agutayan MPAs in Macajalar Bay were conducted. In Romblon, METT/MEAT assessments of the 38 MPAs/fish sanctuaries in the province were conducted in 2012. The consultation meeting conducted in June and October 2019 agreed that through the support of the SDSSEA Project, the MEAT assessment of the 38 MPAs/fish sanctuaries will be undertaken in 1st quarter of 2020 to determine changes from baseline results.

B.2.2 Outcome 5. Increased proportion of fishing grounds with reductions in overexploitation of fisheries and improved incomes for fishers’ households

The targets for this year under this Output includes the publication and dissemination of the SOC report of Macajalar Bay, the drafting of the Macajalar Bay ICM Plan incorporating ecosystem approach to fisheries management (EAFM), and the updating of Macajalar Bay’s Ecological and Fisheries Profile.

To date, the SOC report of Macajalar Bay has been drafted. The updating of Macajalar Bay’s Ecological profile has also been initiated.

The Macajalar Bay ICM Plan has been developed and adopted by the Macajalar Bay Development Alliance (MBDA). Activity proposal for the formulation of the Macajalar Bay EAFM plan was submitted to BFAR Region X as part of the bay wide fund of the Bureau.

In an effort to strengthen fisheries management in Macajalar Bay, the MBDA with the support of BFAR Region X and the Balaod MINDANAW lobbied for the adoption of the Macajalar Bay harmonized Fisheries Ordinance.

In terms of livelihood management, the conduct of social assessment/social preparation is currently being undertaken in Macajalar Bay.

12

B.2.3 Outcome 6. Reduced discharge of pollutants from land-based activities and improved water use efficiency/conservation in priority river basins and coastal areas

Activities under this Outcome focus on the development of the State of the Batangas Bay Watershed report, the application of nutrient load model in the watershed, the development of rehabilitation and investment plan and the identification of strategies to strengthen the water quality monitoring program of the Batangas Environment Laboratory.

To date, the State of the Batangas Bay Watershed report has been drafted and stakeholders’ consultation was held on February 7, 2019 in Batangas Province to validate the contents of the report. The State of the Batangas Bay Watershed report is currently being reviewed and refined for publication in the 1st quarter of 2020.

For the preparation of nutrient load model (NLM) for the Batangas Bay watershed, an orientation on the application of the NLM was conducted in collaboration with the UP-Marine Science Institute on June 26, 2019 involving representatives from the 8 municipal LGUs (i.e., , Lobo, , Cuenca, Rosario, , Lipa City and ) comprising the Batangas Bay watershed, relevant provincial agencies and partner academic institutions (i.e., Batangas State University, De La Salle Lipa and University of Batangas). While data/information from the State of Batangas Bay Watershed Report will be used for the NLM, additional data requirements are currently being gathered for the application of the NLM in the watershed.

13

Consultation meeting with PGENRO Batangas conducted on June 27, 2019 agreed that the development of rehabilitation and investment plan for the Batangas Bay watershed will commenced once results from the NLM will be available. Results of the NLM will serve as basis for the development of rehabilitation and investment plan for the watershed.

Other achievements relevant to this Outcome include the approval of two projects (i.e., ASEANO and Coca-Cola Foundation) that will be implemented in Cavite Province to address solid waste and plastic pollution. The ASEAN- Norwegian Project on Capacity Building for Reducing Plastic Pollution (ASEANO), which was approved in September 2019 will be implemented for 2019-2022 and aims to strengthen the knowledge base and build local capacity to tackle plastic pollution from key industries and government sector. The ASEANO project will be implemented in the Imus-Ylang Ylang watershed particularly in Dasmariñas as the case study location for the project. In November 2019, the Coca Cola Foundation approved a grant to implement the project on Ecological Solid Waste Management in Cavite Province (Plastic Wastes Recycling Project), which will be implemented in 5 communities located in 5 LGUs (, , General Mariano Alvarez, City and ) and the municipality of Amadeo in Cavite Province. The plastic wastes recycling project will be implemented from January 2020 to June 2021 in partnership with the Caritas Diocese of Imus Foundation, Inc., and the Provincial Government of Cavite through the Provincial Government-Environment and Natural Resources Office (PGENRO).

Recently, Cavite Province held the Joint Cavite Water and Solid Waste Summit on November 19- 20, 2019 in Dasmariñas gathering relevant partners, sectors and all the LGUs to discuss two priority concerns in the province, i.e., water security and solid wastes. This year’s Summit carries the theme, “Towards a Science-Based Governance in Water Resources and Solid Waste Management. The Water Summit is the 3rd iteration, which was initially held in 2015 and 2 years thereafter. As an important partner of the local government, the consortium of universities and colleges in Cavite Province pledged their commitment to support the LGUs’ in water and solid waste management.

14

PEMSEA has also shared its plans and programs on pollution reduction and waste management in a Forum on marine plastics, which was organized by World Bank and the Royal Norwegian Embassy on April 4, 2019 in Manila.

B.2.4 Outcome 7. Increased preparedness and capability of coastal communities to respond to natural and manmade hazards

Activities under this Outcome focus on the possible replication of the application of the LGU Resilience Scorecard in Cavite and Pampanga. The LGU Resilience Card is being implemented by the National Resilience Council in 8 pilot local governments in the Philippines (i.e. Province of Bataan, de Oro City, City, Iriga City, Naga City, Ormoc City, Valenzuela City and City). An initial meeting with the Executive Director of NRC was conducted on February 14, 2019 to discuss the possible application of the Scorecard in Cavite and Pampanga.

Another planned activity under this Outcome is the development and of Mangrove Conservation and Business Plan for the Sasmuan Bangcung Mapalad Critical Habitat and Ecotourism Area in Pampanga. An initial meeting with the PGENRO of Pampanga was conducted on March 4, 2019.

Apart from initial discussions with the planned activities under this Outcome, there has not been much progress due to scheduling conflicts.

B.2.5 Outcome 8. Innovative economic and investment instruments generate funds to rehabilitate and sustain coastal and marine ecosystem services

This Outcome targets the application of innovative economic and investment instruments that will support the protection, rehabilitation and management of coastal and marine resources to sustain the ecosystem services derived from them. In the Philippines, the potential of establishing partnership between the Province of Oriental Mindoro and Blue Finance is being explored. Blue

15 finance is a specialist international NGO with expertise and a track record in establishing blended finance solutions for management and sustainable financing of Marine Protected Areas (MPAs). Initial consultations and coordination with the Provincial Government of Oriental Mindoro were undertaken. Further discussions to clarify the expectations, roles and responsibilities between and among the Province, Blue Finance, PEMSEA and other partners will need to be undertaken to move forward this initiative.

At the regional level, the recognition of private companies which are actively supporting the sustainable development and management of coastal and marine areas is one of the targets under this Output. To date, the Handbook for Sustainable Business Award has been drafted and currently being reviewed and refined. The process for the Sustainable Business Award was presented during the Executive Committee meeting of the PNLG held in June 2019 in Xiamen, China. The PNLG members are being considered to be the selection panel for the Sustainable Business Award.

A knowledge product on ‘Enabling Blue Economy for Sustainable Development in the Seas of East Asia: Lessons on Engaging the Private Sector for Partnership and Investment has been developed and will be disseminated upon completion of review and refinements to share PEMSEA’s experiences and lessons learned in blue economy investments.

B.3 Knowledge Platform for Building a Sustainable-Based Blue Economy

Component 3: Knowledge platform for building a sustainable ocean-based blue economy places emphasis on resource allocations to ICM, SAP/NAP implementation, climate change adaptation and disaster risk reduction, which are expected to increase as a result of national coastal and ocean policy adoption and mainstreaming related objectives and targets into national and local government medium-term development plans. Major component activities to be implemented include:

a. establishing accredited ICM and special skills training courses and programs at the regional and country levels;

b. enabling ICM Learning Centers, Regional Centers of Excellence and educational institutions to train, educate and build awareness in coastal and ocean governance;

c. increasing public and private sector awareness and promoting investments in enterprises, technologies, practices and services that contribute to a sustainable ocean-based blue economy;

16

d. mobilizing donors, domestic and foreign investors and other concessional sources of funding to help address program gaps in means and capacity; and

e. promoting the replication of innovative financial and economic instruments and other incentives designed to drive positive changes in behavior.

B.3.1 Outcome 9. Regional knowledge sharing platform for ecosystem management established and enabling decision makers to translate policies and strategies into actions

The main targets for the Philippines under this Outcome include the operationalization of an integrated information management system (IIMS) and the publication and dissemination of SOC reports of ICM sites in the Philippines.

To date, the IIMS databases of Guimaras Province and Macajalar Bay are continually updated to serve as repository of relevant data/information that can be utilized in planning and decision making for coastal, marine and riverbasin management. A series of meeting with the Cavite PGENRO and the was conducted in January 10 and August 8 to discuss the status and agree on actions to operationalize the IIMS database of Cavite Province.

In partnership with DENR, particularly with KISS-ISD and RBCO, the desktop version of the IIMS has been converted into a web-based version that will serve as the database platform for priority river basins across the country. A training of trainers for the application of the web-based river basin IIMS (RB-IIMS) was conducted on June 19-21, 2019 involving representatives from DENR’s RBCO, KISS-ISD and 15 regional offices, and 3 LGUs. The roll-out of the web-based RB-IIMS were conducted on August 26-30, 2019 in Subic, for the application of the web-based RB- IIMS in riverbasins in Regions 1, 3 and Cordillera Administrative Region while the roll-out training for riverbasin in Region 10 was conducted on September 30-October 4, 2019 in City. Roll-out trainings for riverbasins in other regions will be conducted in 2020.

At the regional level, a PNLG tracking system which monitors the progress of PNLG-member local governments in meeting their SDG (sustainable development goals) commitments have been operationalized. The PNLG tracking system is lodged at the Seas of East Asia Knowledge Bank (SEAKnowledgeBank; seaknowledgebank.net). The 4 PNLG members in the Philippines (i.e.,

17

Bataan, Batangas, Cavite and Guimaras) had endeavored to accomplish the PNLG tracking system and reports on their plans, programs and accomplishments in meeting their commitments for SDG 6 (clean water & sanitation); 11 (sustainable cities); 13 (climate action) and 14 (life below water). As part of the capacity development component of the project, the designation of additional Regional Centers of Excellence (RCoEs) are being considered, which can be tapped to provide technical and scientific support to partner Countries and ICM sites. Discussions are well underway for the designation of: 1) the Institute for Global Environmental Strategies as RCoE in Climate Change Adaptation and Disaster Risk Reduction; 2) Coastal and Ocean Management Institute, Xiamen University (XMU-COMI) as RCoE for Sustainable Coastal Development; and 3) re- designation of State Key Lab for Marine Pollution (SKLMP) as RCoE in Marine Pollution following the end of term of the Centre for Marine Environmental Research and Innovative Technology (MERIT).

In order to create a pool of ICM practitioners in the region, the development of certification process for ICM Managers are well underway. An ICM Manager Certification Handbook has been drafted and is currently undergoing technical review and refinements. The ICM Manager Certification process was presented to the PNLG Executive Committee meeting held in June in Xiamen, China.

As part of the regional platform, i.e., the SEA Knowledge Bank, an E-learning page and the training and resources pages in the Capacity Development microsite have been completed. User experience has been improved for the microsite and the PEMSEA Network of Learning Centers (PNLC) pages.

18

C. Project Implementation (Issues and Problems Encountered)

Some of the challenges encountered this year causing some delays in project implementation are summarized as follows:  Delays in the conduct of further consultation with the National Research Council for the application of LGU Resilience Program in the provinces of Cavite and Pampanga due to scheduling conflict. The project will endeavor further to reach out to the Head of NRC to initiate the application of the LGU Resilience Scorecard in the 2 provinces in early 2020.

 The election ban and the changes in political leadership after the May 2019 election had caused some delays in project implementation at the local level. Consultation meeting with Romblon PGENRO was undertaken in June 2019 to discuss strategies in facilitating project implementation in the province, including the engagement of Romblon State University (RSU) and national government agencies (e.g., BFAR) to assist the province in the implementation of ICM-related activities.

 The limited number of staff or changes of staff assigned to coordinate the project at the local level (e.g., Romblon). The limited access to data and information also resulted to delays in preparation of outputs for Romblon (e.g., State of the Coasts report). To facilitate the preparation of the SOC report of Romblon Province, RSU will be actively engaged across the various stages of SOC report preparation. D. Achievement of Project Outcomes/Objectives/Project Purpose

Overall, the Project is on track in meeting the required outcomes per Component upon completion of the Project in 2020. Despite delays in achieving targeted outputs for 2019 (e.g., Outcome 7), strategies to facilitate delivery of outputs will be discussed with the LGUs and other partners. Below summarizes the delivery of relevant outcomes per Component of the Project.  Component 1; Outcomes 1 and 2 – All deliverables will be completed in 2020; except for the re-filing of the ICM Bill, which is beyond the control of the Project and highly dependent on the facilitation of relevant Committee at the House of Representatives. Notable achievement under this component for 2019 is the publication and dissemination of the National State of Oceans and Coasts of the Philippines: Blue Economy Growth.

 Component 2; Outcomes 4-8 – All deliverables will be completed in 2020. The LGU Resilience Scorecard application may only be initiated in Cavite and Pampanga. The ICM scaling up target of the Project, which is 20% of the country’s coastline covered by ICM program implementation has been exceeded, i.e., 26.85% of the Philippines’ coastline is covered by ICM based on the results of the Third Party Assessment. The 10% increase from baseline target for management effectiveness has also been achieved in the Province of Guimaras based on METT ratings for 2016, 2017 and 2018 and analyzed in 2019.

19

 Component 3; Outcome 9 – All deliverables will be completed in 2020. The preparation of the SOC reports of Romblon and Batangas (2nd SOC report) are currently ongoing and will be published and disseminated in 2020. For the operationalization of an information management system, the development of web-based river basin integrated information management system (RB-IIMS), including training of trainers and roll-out trainings for Regions 1, 3, 10 and CAR were completed this year, in partnership with DENR. The web- based RB-IIMS will be implemented as the national database platform for priority river basins across the country.

E. Facilitating Factors

The partnerships and collaboration with universities, academic institutions and national agencies had facilitated the delivery of required outputs for specific project activities. The following summarizes the collaborative activities undertaken with various partners.  Collaboration with universities and academic institutions for the delivery of required outputs in ICM sites (e.g., partnership with UP-Visayas for the conduct of periodic assessment of habitats in Guimaras; Cavite State University for the implementation of ICM-related activities in Cavite; Romblon State University for the conduct of coral reef assessment in Tablas Island and the preparation of SOC report of Romblon Province).

 Collaboration and partnership with national agencies (e.g., DENR for the development and implementation of web-based RB-IIMS; BFAR Region 10 for EAFM implementation in Macajalar Bay). F. Sustainability for the Completed Outputs/Project Results

To ensure sustainability, mainstreaming of SDS-SEA Project’s outputs, good practices, tools and approaches into DENR particularly the Biodiversity Management Bureau’s (BMB) relevant priority programs is important. On one hand, the Technical Bulletins issued and being drafted (see list below) by BMB support ICM implementation and scaling up.

a. MPA Networking b. Foreshore Areas and Intertidal Flats c. Marine Spatial Planning d. Social Marketing e. CMEMP Database f. ICM M&E Tool g. Citizen Science Framework h. Best Practices on CME Management

Advocating the passage of the ICM Bill at the 18th Congress should be continued to further support scaling up and sustainability of ICM efforts in the Philippines.

20

At the local level, the sustainability of project results is ensured as most of the ICM sites (e.g., Bataan, Batangas, Cavite, Guimaras) have coastal management integrated into local governments’ development, investment and annual work plans.

G. Financial Performance

Table below reflects the total budget allocation for the Philippines for 2014-2020, as well as the allocation and expenditures for 2019. Some of the planned activities for 2019 (e.g., Component 1: conduct of national ICM Forum, Component 2: habitat assessment in Batangas Province, application of LGU resilience scorecard and publication of SOC reports) will be undertaken in 2020 thus the unutilized budget for 2019. Components Project Total Remainin Total Total Remainin /Fund Type Life Expenditu g Budget Allocation Expenditu g Budget (2014- re (2014- (2019- for 2019 re for for 2019 2020) 2018) 2020) US$ 2019 US$ US$ US$ US$ Total 1,000,000 713,619 286,381 200,700 70,690 130,010 Component 1 41,000 4,504 36,496 Component 2 153,700 62,967 90,733 Component 3 6,000 3,219 2,781

H. Conclusions

Some major conclusions for project implementation this year are as follows:  End of project target for length of coastline coverage (20%) for ICM implementation (Outcome 4) achieved and exceeds target (26.5% of Philippines’ coastline covered under ICM);  10% increase in METT rating from baseline achieved in Guimaras Province;  Despite delays in implementation of some activities at the national and local levels (e.g., Outcome 2 & 7), all required outputs from the Project will be completed in 2020;  Implementations were facilitated in collaboration with different partners (e.g., universities and national government agencies);  Some notable good practices: political commitment, continuing capacity development and networking, available baseline data/reports; strengthened monitoring capability; engagement of local universities and other partners; and  Sustainability of project outputs is assured through mainstreaming in national and local governments’ plans and programs.

21

I. Recommendations

To facilitate the delivery of remaining deliverables for the Project, the following needs to be undertaken:  Strengthen collaboration with different partners (national government agencies, academic institutions and other sectors) to facilitate the delivery of remaining outputs for the Project; and  Closely engage DENR and other national government partners in project implementation to ensure mainstreaming of project outputs into the national framework plans and programs for sustainability. J. Next steps for 2020 and Remaining Project Life

Table below lists the remaining deliverables per component/outcome of the SDS-SEA Project until project completion in August 2020.

Component 1 Outcome 2 • Conduct of National ICM Forum • Updating of National ICM Program • Review of policies, sectoral legislations completed and submitted to DENR • Project consolidation and consolidation of good practices • Documentation of good practices Component 2 Outcome 4 • Completion of SOC reports (Batangas and Romblon) • Habitat monitoring (Batangas and Guimaras) • METT assessments (Batangas, Guimaras, Romblon) Outcome 5 • Feasibility study on biodiversity friendly enterprise (Macajalar Bay) Outcome 6 • Application of NLM in Batangas Bay watershed • Pre-feasibility study on pollutant reduction strategies Outcome 7 • LGU Resilience Scorecard application initiated in Cavite and Pampanga • Mangrove conservation and business plan for Sasmuan-Bangcung Mapalad Critical Habitat Outcome 8 Component 3 Outcome 9 • Publication and dissemination of SOC reports • IIMS operationalization in ICM sites (Cavite, Guimaras, Oriental Mindoro, Macajalar Bay)

22

K. Success Areas

Notable success areas from this year’s SDS-SEA project implementation are as follows:

1. ICM coverage validated through Third Party Assessment; ICM scaling up target for the Philippines fully achieved. 2. Monitoring, evaluation and reporting mechanism in place (national and local SOC reports; habitat and MPA management effectiveness; PNLG tracking system). 3. Strengthened capacities through local, national and regional trainings. 4. Engagement of universities and academic institutions for scientific support in ICM program implementation. 5. Partnerships and collaboration with national government agencies and other relevant partners.

23