LAGUNA DE BAY BASIN MASTER PLAN : 2016 AND BEYOND TOWARDS CLIMATE-RESILIENCE AND SUSTAINABLE DEVELOPMENT - FINAL REPORT – December 2015 LAGUNA LAKE DEVELOPMENT AUTHORITY Laguna de Bay Basin Master Plan: 2016 and Beyond Towards Climate Resilience and Sustainable Development EXECUTIVE SUMMARY 1. Background. Laguna Lake (or, Laguna de Bay) is the largest lake in the Philippines and one of the largest in Southeast Asia. In view of its multiplicity of uses and benefits, its basin (or region) is the most important, dynamic and among the fastest growing economic bases in the country. It has become the catch basin to Metro Manila’s population and urbanization/industrialization over-spill. As the region has developed, the lake has suffered increasing levels of agricultural, industrial and domestic wastewater pollution. The possible consequences of the rapid swelling of population include food and water shortage, worsening traffic congestion and environmental degradation, thus significantly affecting Laguna de Bay and its environs. 2. Rationale. Programs and projects under the 1995 Laguna de Bay Master Plan have been mainstreamed in the LLDA portfolio, some of which are pioneering and tested in the Laguna de Bay Region, such as the Environmental User Fee System (EUFS), Laguna de Bay Institutional Strengthening and Community Participation (LISCOP) Project, River Rehabilitation Program, Zoning and Management Plan (ZOMAP) and Laguna de Bay Carbonshed Project, among others. These have been funded by a combination of corporate funds, user fees (fishpens/fishcage fees, water abstraction fees), regulatory fees, national government funds through the General Appropriations Act (GAA), loans contracted by the National Government, and technical assistance grants. 3. Past and Recent Efforts on Plan Updating. After 20 years since the master plan was put in place, efforts to update this plan were exhibited through the following initiatives: Development of the Framework for the New Laguna de Bay Master Plan: “Laguna de Bay Basin 2020”: focus on the following tasks: (i) paradigm shift to strengthen LLDA’s regulatory mandate and intensify implementation of big- ticket programs and projects to push economic growth and sustainable development; (ii) financing new programs/projects following PPP approach; and (iii) climate proofing the lake basin. It contains initial strategies to harness the economic potentials of the Basin to ensure sustainable use of the Lake and its resources. Formulation of the Spatial Development Master Plan (SDMP) for the Laguna de Bay Basin: Land and Water Use and Physical Development Plan 2011- 2020: translates/elaborates the Framework plan consisting of spatial and non- spatial broad-based strategic policy and program directions towards the reconfiguration of the development and management of the Laguna de Bay Basin that will address existing and emerging natural resource challenges and other issues such as climate change, disaster reduction, among others. SDMP embodies several programs and projects, with project briefs to be funded through the GAA, corporate funds, loans and grants, PPP, purely private initiatives with public incentives and market-based instruments such as user fees. 4. Attributes/ Justification for Plan Updating. The three (3) attributes as rationale for the current plan updating are: (i) environment and health risks that are posed to the citizens i Laguna de Bay Basin Master Plan: 2016 and Beyond Towards Climate Resilience and Sustainable Development living in the basin particularly that segment of the population that are highly vulnerable to poor environmental quality; (ii) institutional capacity challenges in balancing the wide range of demanding interests and the supplying capacities; and (iii) lack of mechanisms and capacities for development of environmental and water-related infrastructure that are imperatives for sustainable water resources development. 5. Current Plan Updating in Relation to Previous Efforts. The current efforts represent a more strategic and cohesive approach to harmonize past and recent outputs and review, update and/or confirm the most recent (2011) spatial development plan, which was not officially adopted by LLDA, to coherently state the desired future development of the lake basin. Hence, in order to build technical capacity and ownership of the basin plan, the LLDA opted to create an in-house Technical Working Group (TWG) for the formulation of a master plan by virtue of Memorandum Order No. 2015-46 dated July 7, 2015 to produce this Laguna de Bay Basin Development Plan 2016-2026. The updated master plan will integrate basin-scale strategic policies, program/project concepts towards the development of a set of more detailed sub- basin or thematic plans in the coming year (2016 and beyond), possibly leading to a full-blown Laguna de Bay Master Plan in the medium to long-term period. 6. Planning Unit. The Laguna de Bay Basin refers to the “hydrological/geographical” boundaries with 2,920 km2 area, or simply defined by the ridges from where water flows into the Lake. The basin includes 24 river basins that contribute to the water flowing to the lake. On the other hand, Laguna de Bay Region as defined by R.A. 4580 as amended describes the administrative boundaries or the mandated jurisdiction of the LLDA with 3,880 km2, based on administrative boundaries of cities and municipalities. The administrative region is substantially larger than the basin. The LLDA has the mandate to govern land and water uses in the overall Laguna de Bay Region. Hence, the planning unit for this Master Plan updating is the Laguna de Bay Region. For purposes of this plan updating, the terminologies “basin” and “region” are used interchangeably. 7. The Laguna de Bay Basin Updated Master Plan Framework adopts the Integrated Lake Basin Management (ILBM) which is a form of Integrated Water Resource Management focused on lentic water systems (World Bank 2009, Nakamura 2007). 8. From the long list of issues and problems discussed in detail in Chapter 3, the following were prioritized as most critical for basin authorities to address given the influence and control of contributing factors, impact on the lake, and urgency: Pollution and waste primarily from domestic and agricultural sources Multiple and often conflicting water uses Vulnerability of lakeshore settlements and developments to flood hazards and related health and economic risks, and indecision over resettlement Poorly regulated developments on the shoreland, and critical watersheds inclusive of tenurial constraints, database management and monitoring Fragmented utility infrastructure developments, including siting and development regulations of these investments Absence of critical collaboration among ENR authorities on highly- stressed ecosystems within the lake basin ii Laguna de Bay Basin Master Plan: 2016 and Beyond Towards Climate Resilience and Sustainable Development Limited financing of conservation and regulatory programs/projects Need for lake-sensitive economic opportunities to expand livelihood opportunities The “WHAT? SO WHAT? IF NOT, THEN WHAT?” Matrix summarizes these key issues which are discussed in greater detail in Annex 2. 9. Recommended Medium-Term Development Directions. Based on the complexity of issues across the management continuum in Laguna de Bay Basin and sectoral concerns throughout these ecosystems, there is a need to focus interventions on these key issues in the medium term. The recommended medium-term development directions are the following: a) Intensify waste and pollution control towards through adaptive waste management systems primarily for domestic and agricultural sources; b) Rationalize water use zoning to harmonize all uses within the lake including navigation and water-related waste management infrastructure; c) Promote security of lakeshore communities from flooding, health risks and minimize d) economic displacement through effective flood control programs and appropriate resettlement plans; e) Rationalize watershed- and shoreland-specific management policies based on validated threshold and vulnerability to sustain their ecological functions focused on incentive-based regulations and adaptive co-management systems; f) Rationalize service and infrastructure-based network support for environmental management and sustainable economic uses of lake basin resources; g) Rationalize ecotourism potential as development driver and promote lake- sensitive eco-tourism developments; and h) Adopt of innovative financing schemes beyond regulatory fee collection maximizing i) Market-based instruments and PPP schemes. 10. Recommended Long-Term Development Directions. In the long-term, there is a need to expand development directions in order to: a) Improve ecosystem-based performance monitoring and data management; b) Intensify community-based and incentive-focused waste management systems for lakeshore settlements; c) Upgrade quality control for lake water suited as source of freshwater of the region and d) parts of Metro Manila; iii Laguna de Bay Basin Master Plan: 2016 and Beyond Towards Climate Resilience and Sustainable Development e) Promote adaptive co-management systems on critical areas in the shoreland consistent with rationalized water use zoning; f) Create opportunities for sustainable livelihoods through PPP schemes suited for lakeshore and upland communities; g) Intensify development and use regulations for highly extractive economic activities with primary focus on restoration costs; h) Pursue