D F I M D P Januory 19, 2003 Environmental Assessment Final Report E901 Volume 1 TABLE OF CONTENTS Public Disclosure Authorized I EXECUTIVE SUMMARY ...... 1 2 THE PROJECT.2 2.1 PROJECT OBJECTIVES ...... 2 2.2 PROJECT COMPONENTS ...... 2 3 POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK FOR ENVIRONMENTAL ASSESSMENTS .3 3.1 LEGAL FRAMEWORK OF THE PHILIPPINE GOVERNMENT ...... 3 3.2 GOVERNMENT ADMINISTRATIVE FRAMEWORK ...... 3 3.3 INTEGRATED PEST MANAGEMENT ...... 5 3.4 ENVIRONMENTAL SAFEGUARD POLICIES OF THE WORLD BANK ...... 5 Public Disclosure Authorized 4 YEAR 1 RURAL INFRASTRUCTURE SUB-PROJECTS COMPRISING THE INVESTMENT SUPPORT FOR LOCAL MARKET DEVELOPMENT COMPONENT .6 5 BASELINE ENVIRONMENTAL CHARACTERIZATION/PROFILING OF THE SUB-PROJECT SITES .7 5.1 PROVINCE ...... 7 5.2 BUKIDNON ...... 12 5.3 CEBU ...... 16 6 ENVIRONMENTAL IMPACT ASSESSMENT .19 6.1 "WITHOUT PROJECT" SCENARIO ...... Public Disclosure Authorized ...... 19 6.2 "WITH PROJECT" SCENARIO ...... 21 7 ENVIRONMENTAL MANAGEMENT PLAN .22 7.1 PRE-IMPLEMENTATION ...... 22 7.2 CONSTRUCTION PHASE ...... 22 7.3 OPERATION AND MAINTENANCE ...... 22 7.4 ENVIRONMENTAL MANAGEMENT PLAN FOR YEAR-1 SUBPROJECTS ...... 22 7.5 ENVIRONMENTAL GUIDELINES FOR DFIMDP SUBPROJECTS FOR YEAR 2 ONWARDS 22 8 INSTITUTIONAL ARRANGEMENTS FOR ENVIRONMENTAL MANAGEMENT ...... 22 8.1 CAPACITY BUILDING AND INSTITUTIONAL ARRANGEMENTS FOR ENVIRONMENTAL ASSESSMENTS ...... 23 Public Disclosure Authorized 8.2 PROPOSED STAFFING ARRANGEMENTS ...... 26 FILE COPY D F I M D P Environmental Assessment Final Report

LIST OF TABLES

Table 1. National Laws, Rules and Administrative Issuances Pertaining to Environmental Assessments ...... 4 Table 2. Brief Descriptions of Sub-Projects for Year 1 Implementation ...... 6 Table 3. Land Area of Benguet/CAR Focus Area (hectares) ...... 8 Table 4. Landuse Pattern in Buguias and Atok Municipalities in Benguet Province... 9 Table 5 Pest Profile in High Value Commercial Crops (HVCC) in Benguet ...... 10 Table 6 Commonly Used Pesticides and other Chemical Inputs in Benguet ...... 10 Table 7 Land Area of Northern Mindanao Focus Area and Bukidnon (hectares) ..... 13 Table 8 Commonly Used Pesticides and other Chemical Inputs in Lantapan, Bukidnon ...... 14 Table 9 Land Area of Central Visayas Focus Area and Cebu (hectares) ...... 16 Table 10 Commonly Used Pesticides and other Chemical Inputs in Lantapan, Bukidnon ...... 18 Table 11 Environmental Management Plan for all Year-1 Subprojects ...... 24

LIST OF FIGURES

Figure 1. Location Map for the DFIMDP Focus Areas ...... 7 Figure 2. Location Map of Benguet Province ...... 8 Figure 3 Location Map of DFIMDP Areas in Bukidnon ...... 12 Figure 4 Location Map of Central Visayas Focus Area and Cebu Province ...... 17 D F I M D P January 19, 2003 Environmental Assessment Final Report

1 Executive Summary The Diversified Farm Income and Market Development Project (DFIMDP) of the Department of Agriculture (DA) proposes to make the needed investments in facilities, human resources, information systems, equipment, organizational systems and research grants to raise the agency's capacity to provide essential public services for competitiveness enhancing support for the private sector-namely, regulatory services, market linkages, technology development and dissemination, and planning, policy and budgeting systems. It will also undertake market-related rural infrastructure and capacity building projects of local governments (LGUs) and grower associations at the village level.

Under its rural infrastructure component, the DFIMDP proposes to undertake six road rehabilitation subprojects for the first year of implementation. These are existing farm-to- market roads that can improve strategic connections of production areas with market outlets and trading centers. They are located in the provinces of Benguet, Bukidnon and Cebu, with proponents being the municipal governments in collaboration with the barangays (village). The subprojects all involve gravelling and drainage canal improvements with concreting work, if any, being limited to narrow tire paths along the middle of the road. No land acquisition is going to be necessary as all the sites are currently used exclusively as a public road.

Environmental impacts of the six initial subprojects are likely to occur during and after construction work-namely soil erosion, dust, traffic flow disruption and air pollution from generated traffic. These are going to be minimal, temporary and reversible with simple mitigation measures such as provision of slope protection, sprinkling of water over the work area, and management of truck schedules by the contractor of the subproject. After completion of the project, the LGUs will ensure that trucks and other vehicles are regulated to minimize pollution from emissions and overloading. The DA regional field units will monitor compliance with agreed mitigation measures.

Other related environmental impacts may arise from pre-existing risks associated with farming in slopes and areas near or within watersheds. The influence area of the subprojects are hilly and upland barangays occupied mostly by migrant-farmers who have settled there over the last 20 to 30 years using a mixture of farming practices that include shifting cultivation and planting techniques that are inappropriate for sloping areas. Some good practices are also observed in the areas, such as terracing of slopes to control soil erosion and the use of integrated pest management to reduce consumption of hazardous chemicals. In two of the subprojects (Lantapan, Bukidnon and Atok, Benguet) economic activities are governed by existing protected area management plans, hence minimizing risks of encroachment and damage to protected zones. To reinforce these measures, it is recommended that the DA regional field units renew partnerships with the Department of Environment and Natural Resources (DENR) and the LGUs and formulate local strategies to promote sustainable farming practices for upland areas and expand the areas under integrated pest management. At the national level, the DFIMDP component for regulatory services will also support environmental protection measures against hazardous chemicals by closely monitoring toxic residue levels on agricultural commodities.

Succeeding subprojects for the DFIMDP have yet to be firmed up and evaluated in the course of future implementation work. A set of environmental guidelines, incorporating relevant policies of government and the WB, will ensure that they undergo the same process of environmental impact analysis and assessment. DFIMDP Environmental Assessment Final Report

2 The Project The Diversified Farm Income and Market Development Project is a proposed activity of the Department of Agriculture (DA). The Project seeks the assistance of the World Bank for a Sector Investment and Maintenance Loan to put in place necessary investment in essential services that are in accordance with the envisioned public sector role under the Agriculture and Fisheries Modernization Act (AFMA). The goal of the Project is to stimulate rural growth and farmer incomes by enhancing competitiveness of Philippine agriculture and fisheries commodities and market-oriented private sector-led investments.

2.1 Project Objectives The objectives of the Project are as follows:

a) Arrest and reverse the declining competitiveness of Philippine commodities in domestic and foreign markets b) Greater diversification and profitability of farm enterprises c) Increased flow of private investments into market-oriented enterprises.

Under agricultural promotion policies before the enactment of the AFMA, the role of the government was to push production targets to achieve such development objectives. Current policies, as spelled out by the AFMA, seek to delimit such intervention by government so that the private sector can play out its more important role in business development and financing. Hence, the DFIMDP will concentrate on the institutional development efforts of DA towards a more focused and strategic role rather than an expanded and untargeted role in the achievement of the afore-cited objectives. With financial and technical support from the World Bank, the basic strategy for achieving the above objectives is the effective provision of public services along a few of the most critical functions that are mandated by the AFMA.

2.2 Project Components a) Component 1: Support for Market Development Services

Clients of the DA will have regular access to quality, timely and relevant information for critical business decisions through the establishment of the Agriculture and Fisheries Market Information System (AFMIS). Essential service function of providing assistance in building market linkages between growers, traders, processors and exporters will also be enhanced.

b) Component 2: Strengthening Quality Assurance Systems for Market Development

Facilities, equipment, technical assistance, training activities, and information system will be provided to improve the quality and efficiency of regulatory services. Export and import clearances and related measures to develop and enforce appropriate product standards will help to improve product quality, reduce transactions costs and minimize product rejections due to contaminants that undermine export potential. c) Component 3: Market-Linked Technology Development and Dissemination

The focus will be to support private sector demands for appropriate technology leading to better quality agriculture and fisheries products in accordance with current trends in

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consumer habits and preferences. Through the use of competitive research grants, IT- based data management systems and inter-active learning systems, funding of R&D activities will give priority to genetic material improvement, post-harvest processing, packaging and transport, and pest management methods to minimize the use of chemical inputs.

d) Component 4: Enhancing Budget Resource Allocation and Planning Systems

Support in the form of technical and policy advisory services, policy studies, HRD programs, and information systems will be extended by the Project to achieve the desired reorientation and strengthening of the management services functions in support of a more focused and strategic role of DA in line with the core functions suggested by AFMA.

e) Component 5: Investment Support for Local Market Development Subprojects

Financial and technical assistance will be extended by the DA to its local partners in the context of market development strategies of local industries and LGUs in four focus areas: Cordillera Administrative Region (CAR), Western Visayas (Region 6), Central Visayas (Region 7) and Northern Mindanao (Region 10). To complement LGU investment plans and support private sector marketing needs, the Project will support the construction and/or rehabilitation of subprojects will be comprised mostly of rural infrastructure such as farm-to-market roads, trading posts, small-scale irrigation, and capacity enhancement of grower/industry trade associations.

3 Policy, Legal and Administrative Framework for Environmental Assessments

3.1 Legal Framework of the Philippine Government The has a well-developed legal and administrative system for environmental protection. The country's overall environment policy, as embodied in the 1987 Constitution, states the right of communities to a healthful and balanced ecology.

Presidential Decree 1586 otherwise known as the Philippine Environmental Impact Assessment (EIA) Law, requires proponents of development projects to ensure that their activities do not have adverse impact on the environment and the people. A number of implementing rules and regulations govern the conduct of mandatory environmental assessments to give adequate prediction of possible environmental consequences. The EIA is a useful planning tool to ensure that environmental considerations lead to the right decisions in the selection of sites, technical options, implementation plan and operation and maintenance arrangements.

Table 1 below presents the relevant laws and rules governing environmental assessments in the Philippines.

3.2 Government Administrative Framework The burden of compliance with the government's environmental laws falls mainly on proponents and implementing agencies of development projects. However, the effective enforcement of these rules is a major responsibility of the Department of Environment and Natural Resources (DENR) which regulates and monitors activities with environmental

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impacts through its power to issue environmental clearance before any project can obtain funding and start implementation.

Table 1. National Laws, Rules and Administrative Issuances Pertaining to Environmental Assessments Title Highlights 1987 Constitution: States the right of Filipino people to a balanced and healthful ecology. Article II, Sections 15 and 16

Presidential Decree 1151 Requires any proposed development project or action to have (1978) environmental impact assessments, with corresponding control measures for adverse environmental impacts.

Presidential Decree 1586 Established the Environmental Impact Statement System based on (1979) EIA requirements under P.D. No. 1511, requiring proponents of development projects to formulate a program of environmental enhancement, protective or mitigation measures. (1979)

Department Serves as the implementing rules and regulations of PD 1586. Administrative Order (DAO) 21-1991 * Department Administrative Order Supersedes DAO 21 (DAO) 37-1996

*Department Supersedes DAO 37-1996 and rationalizes and streamlines the EIS Administrative Order system by clarifying the coverage of the system, standardizing (DAO) 30-2003 requirements, simplifying procedures for processing ECC applications (2003)

* Indigenous Peoples Recognizes and respects the rights of indigenous cultural communities Rights Act (IPRA) over their ancestral domains and provides them with the responsibility (1997) of maintaining ecological balance and restoring damaged areas within ancestral lands.

Proclamation No. 2146 Proclaims certain areas and types of projects as environmentally (1981) critical that are within the scope of the EIS system under Presidential Decree No. 1586.

National Integrated Classifiies and administers all designated protected areas to maintain Protected Areas System essential ecological processes and life support systems, to preserve (NIPAS) Law genetic diversity, to ensure sustainable use of resources found therein Republic Act 7586 (1992) and to maintain their natural conditions to the greatest extent possible.

Promoting ecological balance is as much a task of local government units (LGUs) as it is of the national government. Under the Local Government Code of 1991, provincial, municipal and barangays are responsible for the sustainable development of areas within their political jurisdictions, through local development planning, enactment of relevant ordinances and regulatory power over building and business permits. Working alongside the DENR's network of field offices that goes down to the level of municipalities, the existing

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administrative system for environmental protection is very comprehensive and operates intensively throughout the country.

3.3 Integrated Pest Management The government has been aggressively promoting the use of integrated pest management (IPM) in its sustainable agricultural and rural development programs throughout the country. IPM has been adopted since about 10 years ago with the issuance of Presidential Memorandum Order 126 of 1993 launching the "KASALIKASAN"-the National Integrated Pest Management Program for promoting and enhancing sustainable agricultural and rural development. This is the country's standard approach to crop husbandry and pest management in rice, corn and vegetable production. It enjoys wide acceptance as an alternative to synthetic chemical pesticides among growers resulting from extensive government-sponsored programs of training and research activities to strengthen the capability of local government units, non-government organizations and farmer cooperatives to carry out effective local IPM programs. So far, the levels of pesticide residue in fresh fruits and vegetables have stayed below the maximum residue limit set by the Codex Alimentarius Commission.' The lead agency for the promotion of IPM at the national level is the Department of Agriculture which disseminates information on IPM through its farmer training and extension programs.

3.4 Environmental Safeguard Policies of the World Bank

Environmental Assessment Policy (OP/BP 4.01) outlines the procedures for the environmental assessment of bank lending operations. Environment consequences should be recognized early in the project cycle and taken into account in project selection, siting, planning, and design by preventing, minimizing, mitigating, or compensating for adverse environmental impacts and enhancing positive impacts.

Natural Habitats Policy (OP/BP 4.04) states that the Bank does not support projects involving the significant conversion of natural habitats, unless there are no other feasible alternatives for the project and its siting, and comprehensive analysis demonstrates that overall benefits from the project substantially outweigh the environmental costs. If the EA indicates that a project significantly converts or degrades natural habitats, the project must include mitigation measures acceptable to the Bank.

Pest Management Policy (OP 4.09) supports safe, effective and environmentally sound pest management. It promotes the use of biological and environmental control methods. An assessment is made of the capacity of the country's regulatory framework and institutions to promote and support safe, effective, and environmentally sound pest management.

' Data was cited in Global Competitiveness Strategies for Philippine Agribusiness-Product Quality System, a report prepared for the DA by the Foundation for the Advancement of Food Science and Technology, Inc., February 29, 2000. This 1999 survey included mango, calamansi, bell pepper, tomato and lettuce and the survey area covered the Ilocos Region, Cordillera, and Cagayan Valley. D F I M D P Environmental Assessment Final Report

4 Year I Rural Infrastructure Sub-Projects Comprising the Investment Support for Local Market Development Component Through a series of regional stakeholder consultations followed by detailed discussions with prospective proponents in the four focus areas of the DFIMDP, a set of six rural infrastructure projects were lined up for possible investment and implementation support for the first year of the Project (See Table 2 below). Sub-projects were identified in only 3 of the 4 focus areas of DFIMDP, due to a number or reasons having to do with readiness to provide funding counterpart and readiness for implementation. The map in Figure 1 presents graphically the location of the DFIMDP focus areas.

Table 2. Brief Descriptions of Sub-Projects for Year 1 Implementation Focus Area Project Name Location Description Cordillera JNR-Loo-Taba- Barangay Loo, Rehabilitation of an existing farm-to-market ao-BPI- Buguias, Benguet road spanning 2.4 km long and 3 to 4 meters Barangay Road Province wide; Gravelling, concrete paving of tire paths Rehabilitation and improvement of drainage Cordillera JNR-Loo-Pan- Barangay Loo, Gravelling, concrete paving of tire paths and Ayaoan-BPI Buguias, Benguet improvement of drainage to improve the Barangay Road Province quality and extend the useful life of an existing Rehabilitation farm-to-market road spanning 3.0 km long and 3 to 4 meters wide; Cordillera Paoay-Cattubo Barangays Paoay Rehabilitation of an existing 7-km farm-to- Barangay Road and market road; Gravelling, concrete paving of Rehabilitation Cattubo, tire paths and improvement of drainage to Municipality of provide year-round post-harvest transport Atok, Benguet convenience to traders and growers of Province vegetables in the area Northern Kibangay- Kibangay, Rehabilitation of an old logging road that Mindanao Tumpagay Bukidnon serves as farm-to-market road connecting (Reg. 10) Road production areas in the buffer zone of Mt. Rehabilitation Kitanglad National Park with national arterial roads leading to major trading points in the region; Gravelling, concrete paving of tire paths and improvement of drainage along a 5 km stretch of barangay road.

Northern Impasug-Ong Impasug-Ong, Gravelling and improvement of drainage of Mindanao Road System Bukidnon farm-to-market roads connecting to the (Reg.10) National Highway, as follows: La Fortuna-SanJuan Road (15.5 km) Intavas-Tigbao Road (15.5 km) Kubayan-Kibenton-Cawayan (15.5 km) Central Mantalongon- Barangays Gravelling and improvement of drainage along Visayas Caleriohan Mantalongon and an existing farm-to-market barangay road (Reg. 7) Road Caleriohan, spanning 6.0 km long and 3 to 4 meters wide Rehabilitation Municipality of Dalaguete, Cebu I

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Figure 1. Location Map for the DFIMDP Focus Areas

1SD 20 22Z 28 228 228

DFIMP PROJECTS SITES + + + 0

MT. PROVINC t.4 (197,195 ha)

_ + + _ 100 0 100 200 _

BENGUET _ Kilometers (255,000 ha)

CAPIZ (252,000 ha)

+ 8900h4)

-ILOIL % (469,000 ha)

lk :. ^' * B~UKIDNON 55 0 +(906,000 ha) r' NEGROS ORIENTAL 15,05.000 ha), *18 120 122 128 120 12D

5 Baseline Environmental Characterization/Profiling of the Sub-Project Sites 5.1 Benguet Province Located in the Cordillera Administrative Region (CAR), one of the DFIMDP focus areas, the Province of Benguet has 13 municipalities with a total land area of 260,313 hectares, of which 19% or 49,122 hectares are agricultural land. The province borders the City of , a highly urbanized tourist destination and a major trading center for agricultural produce for CAR (See Figure 2. Location Map of Benguet Province).

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Figure 2. Location Map of Benguet Province

PROVINCE OF SENGUET AND MT. PPROVINCE - '1-01 , 3t1t1.I . -; DA-DFIMP FOCUS SITE

10 0 10 20

| L.... 1

0 _ t T t f J <;VANK;Y;Nt .'*.*-* ± -t1, <

._ L 1ll:l w \ '-1 X - tji. 'I- t. -i_. .

+ +~~~~~ +

E \ f t' + t : X< ;9Si t - ''i. '.:_.

Table 3. Land Area of Benguet/CAR Focus Area (hectares)

Cordillera Administrative Region 1,843,879 Benguet Province 265,500 Buguias Municipality 21,279 Loo Barangay 1,500 Atok Municipality 22,147 Paoay Barangay 2,176 Cattubo Barangay 2,414

The elevation of Benguet province ranges from 300 to 2,992 meters above sea level. In terms of topography, about 48% of its total land area in classified as very steep (more than 25% slope), while some 33% are moderately steep (8-25% slope) and only 19% have gently sloping /undulating terrain (less than 8% slope).

Undifferentiated/unclassified mountain soils constitute most of the mountainous areas. This type of soil is highly suitable for forest and fruit trees and vegetable crops. In Buguias, loam and clay loam are dominant, which are suitable for cultivation. In Atok, sandy, loam and clay loam are the common soil types. These soil types predominate in Paoay and in Cattubo. In the province, basaltic and andesite flows and breccias with minor interbeds of sandstone argillites and pyroclastic rocks are the most dominant formations. According to the Philippine Institute of Volcanology (PHIVOLCS), Buguias is one of the centers of volcanic activity in CAR.

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The landholdings of Benguet are generally small with each household cultivating less than a hectare on the average. Most farms are irrigated (about 75 %) while the rest are rain-fed areas (about 25 %). The land use pattern in the municipalities where the sub-projects will be located is presented in Table 4 below. In Buguias, the largest land use component is forestland, followed by agricultural land, located mostly in gently sloping portions of Loo Valley. In Cattubo and Paoay in the municipality of Atok, vegetable farms are located in the moderately steep portions of the subproject area, but most of these farms are terraced-a measure primarily for soil and water conservation.

Benguet and most of the area in the Cordillera region is located within an ancestral domain claim, which is under the jurisdiction of the National Commission on Indigenous Peoples (NCIP).

Table 4. Landuse Pattern in Buguias and Atok Municipalities in Benguet Province Buguias Atok Hectares % Dist'n Hectares % Dist'n Forest 8,912 42% 328 15% Agricultural Land 6,718 31% 1,525 70% Built-up / Settlement Areas 841 4 % 79 4 % Open/ Grass! Brushland / Pasture Land 4,808 23% 244 11% Total 21,279 100% 2,176 100%

5.1.2 Flora The dominant vegetation in the municipality of Buguias is pine or coniferous forest. Benguet pine (Pinus kesiya) is the dominant species. Associated low-growing vegetation includes Rono (Miscanthus sinensis), sunflower (Helianthus annuus), lantana/sapinit (Lantana camara), bracken fern (Pteridium aquilinum), desmodium (Desmodium intortum), napier (Pennisetum purpureum) and stylosanthes (Stylosanthes guianensis). White potato, cabbage, carrot, green onion, and celery are commonly grown in the municipality and in the vicinity of the proposed road rehabilitation project (Loo Valley).

In Atok, the major forest vegetation are composed of Benguet pine (Pinus kesiya), alnus (Alnus maritima), and anabiong (Trema orientalis). Stylosanthes spp., Desmodium spp., samsamon (Themeda trianda) and napier (Pennisetum purpureum). Among the vegetables grown in the area are cabbage, carrots, broccoli, onions, potato and lettuce, banana (Musa spp.), sweet potato (Ipomeoa batatas), gabi and chayote.

Farmers in Benguet are confronted with pest problems, as shown on Table 5. The pest profile indicates that key commercial crops of the Benguet are susceptible to many pests that cause serious damage to their stems and leaves. These include leaf miners, aphids, white flies and the diamond back moth, among others. These are being controlled through a number of practices which include some use of commercial chemical inputs. The commonly used brands, their active ingredient and WHO classification are listed in Table 6. The approach to pest management in major crops like rice, corn, and vegetables has already been institutionalized so much so that farmers' participation has been proven to be effective in implementing the IPM program. In the DFIMD project sites, the farmers' level of

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knowledge and awareness of [PM in highland vegetables is high (about 90 %). In fact, the IPM pilot projects began in 1992 in the Cordilleras. Thereafter, the projects were carried out nationwide whereby every region has adopted the IPM program. The Farmers Field School (FFS) was cited by farmers as their main source of technical assistance in upgrading the knowledge and skills particularly in farm management activities like fertilizer and soil fertility management, pest control strategies, and other cultural management practices, including soil conservation. DA should ensure that these crop protection practices are monitored well and sustained with continuous flow of information and technical guidance to farmers, LGU extension workers and other concerned groups at the local level.

Table 5 Pest Profile in High Value Commercial Crops (HVCC) in Benguet Current Pest Management Crop Pest Type of Damage Practices (Control Measures) Potatoes Leaf miners Larvae bore tunnels Use of yellow trap with grease inside leaves oil. Use of Cartap and Trigard. Aphids Suck plant sap Use of systemic insecticide. Thrips Suck plant sap Use of systemic insecticide. Cutworms Cut stems and Spraying with stomach and Leaves contact insecticide. Whiteflies Damage leaves by its Spraying of systemic sap/juice resulting to insecticide. drying-up. Crucifers Cutworms Cut the stems and Field sanitation leaves (Cabbage, Diamond Infestation is higher Use of diadegma and other Brocolli, back moth (80 %) in warmer effective chemicals. Cauliflower, months; lower (20 %) etc.) during rainy or cold months.

Table 6 Commonly Used Pesticides and other Chemical Inputs in Benguet Brand/Product Active Ingredient Name Type WHO Classification Dithane Mancozeb Fungicide - Manzate Mancozeb Fungicide - Bida Lambda Insecticide Moderately Hazardous Vancozeb Mancozeb Fungicide - Karate 2.5 EC Lambdac halothrineo25gl Insecticide Moderately Hazardous Tamaron Oraano phosphorous Insecticide - Basudin Diazinon Insecticide - Funguran Copper hydroxide Fungicide - Vertex Chlorpyriphos Insecticide - Magnum 5 EC Cypermethrin Insecticide -

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5.1.3 Fauna Insects and birds are among the faunal species that abound in the province. Ayungin (Therapon spp), eel/"igat" ( Anguilla spp.), mudfish/"dalag"(Ophiocephalus striatus), hito (Clarias spp) are the common fish species which thrive in the . Tilapia (Tilapia spp) are cultured and produced in Ambuklao and Binga lakes. Flies, ants and avian species, among others abound in Buguias and Atok.

5.1.4 Water The largest body of water in Benguet is the Agno river, which originates from Mount Data. Its tributaries are sources of water for vegetable farms in the province. Springs are also sources of water.

The Upper Agno River is classified as Class "A" freshwaters (source: DENR-EMB, CAR), which is of a quality that can be used for public water supply with minimal treatment. The total suspended solid (TSS) level within the river system is within ambient standards (1,000 mg/I) set under DAO 34 s. 1990. This means that the TSS level is within Class "A" standard. The mean monthly streamflow along the Agno River System is from 4.7 to 56.4 cm (source: National Power Corporation).

5.1.5 Air The climate and rainfall pattern of Benguet fall under Climatic Type I of the Corona classification with wet season from May to October and dry from November to April. Annual rainfall ranges from 2,294 mm to 4,177 mm with six months (May-October) experiencing rainfall. July and August are the wettest months since about 85 percent of the annual rainfall occur during these months (source: CHARMP/DA).

It has a relatively cool tropical climate with temperatures ranging from 9.6 C° in January to about 26 CO in April. The average maximum temperature is 22.80 C while the average minimum temperature is about 13.70 C. This micro-meteorological condition is very favorable for vegetable production. Farming does not impair air quality. The ongoing road rehabilitation works along the does not contribute significant amount of dust to affect air quality.

5.1.6 People The National Statistics Office (NSO) reported that the Cordillera is the least populated region in the Philippines, reaching about 1.37 million in 2000. Benguet is the most populated province in the region with a total count of 322,000 owing partly to the migration of families from the various other provinces in the Cordillera. Despite that, Benguet registered the lowest growth rate at 0.58% annually. Residents of Benguet are relatively young with half of its population below 20 years of age. About 14 % of families in Benguet province are poor or have average incomes below the poverty threshold. The main sources of income and livelihood are farming, mining and quarrying. The population of Benguet originated from the and Igorot indigenous cultural communities. While having maintained strong ties with their rich cultural and social roots, current residents of Benguet are well integrated with mainstream social and political systems. DFIMDP Environmental Assessment Final Report

5.1.7 Protected Areas, Critical Natural Habitats, Areas of Ecological and Biodiversity The farms at Loo Valley are located immediately below the plateau of the Mount Data National Park where there is vegetable farm intensification;The DENR, in cooperation with Buguias municipal and Loo barangay governments, placed restrictions on the use of the park and its resources. Further, there is a Park Development and Management Plan that is being enforced jointly by the DENR and LGUs to protect, conserve and sustain the fragile forest ecosystem.

The proposed road rehabilitation project at Cattubo and Paoay in Atok, Benguet are located on the western part of the Upper Agno River, whereas the declared National Park is on the eastern part of the river. In other words, the project site and the Mt. Pulag are separated by the Upper Agno River. Thus, the proposed road rehabilitation project and the agricultural activities in its influence area are not physically within the boundaries of the Mt. Pulag and is not to be restricted directly by the existing conservation rules being enforced there.

5.2 Bukidnon Bukidnon is one of five provinces in Northern Mindanao (Region 10). It consists of 22 municipalities and has a total land area of 829,000 hectares. The province is richly endowed with favorable climatic conditions and natural resources that make it suitable for the productions of almost any crop or livestock. Its topography is predominated by vast areas of rolling timberland with an average elevation of 915 meters. Figure 3 Location Map of DFIMDP Areas in Bukidnon

-1 I'" 12I . -1 IW, W- 1z1'17"Z. 0z-116" Z1-B'1I M..000 1-.000 ,,0000 BUKIDNON PROVINCE

CAGAYAN DE ORO Cluster Sites

6 20et App,- S-1Ie 1 600 000

Q. - ~~~~~~~~~~~~~~~~~~~~~CLUSTER1 CLUSTER 2 .- mpasug-ong Baungon r. __ Talakag C~~~_ -:4 ~~~~~~~~~~~~Libona -h ~~~~~~~~~~~Malitbogzt_ :..4 CLUSTER 3 Manolo Fortich Cabanglasan Sumilao M alaybalay +8 San, Fernanrdo "s.LEGEND' ' e Ei_ LSantapLananU - U | /\'Roads . Cluster 2 - Water 17 ~~~~~~~~~~~~~~~~~~~Cluster3 Built-up Elevation (masl) 0-100 1799-1899 - ~ ~~~~ 200~~~~~-3001999 -2099 ~~~j+ 400-5~~~~~~~~~~~~~~~002199 -2299 600-700 2399-2499 600-700 2599-2699 _ 8 + 800-900.. l fi L 2799-2899 1000-1100

.1NORrNcOTRBATO DAI/AOfl~~~~LStiR 1200-1300 .-.. . .. 1400-1500

610000o 700000 1600-1 700 710000 - 6010 , 120160 ,-12016 12611b'7" tl1-1'1* 121166'11

12 DFIMDP Environmental Assessment Final Report

Its highest peak is Mt. Kitanglad (2,379 meters above sea level) located at the center of the province and is declared as a National Park. The major water resources of the province are the navigable Pulangi River along with two other systems, Cagayan River and Tagoloan River.

5.2.1 Land The total land area of the province is 829,000 hectares. Table 7 below shows the land area of the focus area and the municipalities where the sub-projects are located. In terms of topography, about 75% (621,750 ha) of the province's total area are classified as strongly sloping to very steep slopes (exceeding 18% gradient); the remaining 25 percent (207,250 ha) are in slope gradient of below 18 %, consisting mostly of gently sloping terrain. Elevation ranges from 300 - 1500 meters above sea level.

The soil in the area consists of clay and clay loam for moderately sloping areas and sandy loam in the mountain areas. Soils are derived from fine-grained volcanic rocks, various sedimentary derivatives and pyroclastics (volcanic ashes). Volcanic flows are andesite to basaltic in composition. Rocks consist of chemicals like pyrite (FeS4) and Chalcopyrite (CuFe2), an ore Copper sphalrite and zinc.

Table 7 Land Area of Northern Mindanao Focus Area and Bukidnon (hectares)

Northern Mindanao (Region 10) 1,403,300 Bukidnon Province 829,000 Lantapan Municipality 35,996 Kibangay Barangay 5,090 lmpausg-Ong Municipality 107,167 Kibenton 2,670 La Fortuna 7,886

In terms of land classification about 40% (336,412 hectares) of Bukidnon is classified as alienable and disposable (A&D) while the remaining 60% (492,966 hectares) is classified as public forest according to DENR records. However, only about 27% (224,000 hectares) of the province is actually forested. 2

In terms of land use, agriculture is the dominant land use on 400,000 hectares or almost half of the province, followed by grass or brush land (24%), and forest (23%) and pasture land (5%). The settlements (included in the agricultural land) are predominantly upland indigenous or mixed communities practicing traditional or imported3 land use practices (borrowed technology), and accessing the forests and other natural resources of the protected area.

2 Imagery from a SPOT satellite in 1987 showed that the vegetative cover of the province included some 223,830 hectares of remaining forest with only about one-third residual or second growth forest.

3Some farmers who have migrated from Benguet to Bukidnon have introduced farming practices in sloping areas that are proving to be damaging to upland areas in Bukidnon, particularly Lantapan.

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5.2.2 Flora The most common form of vegetation is dipterocarp forest (residuals-dominated) represented by lauan species, molave forest type represented by Banaba (Lagerstroema speciosa), Tindalo (Afzelia rhomboida), Dao (Dracontomelon dao), Dapdap (Erythrina variegata), and Ficus (Ficus spp) are the dominant vegetation. Miscellaneous species like Kakauate (Gliricidia sepium), bamboo (Bambusa spp), Kahoy dalaga (Mussaendra philippica), various shrubby and herbaceous species also abound.

For the farming areas, corn, coffee, cabbage, potatoes, sugarcane and banana are the major crops. The growing season of annual crops is normally at least nine months while most perennial crops continue growing throughout the year.

Based on the interview conducted with the farmers in Lantapan, majority of them were using inorganic fertilizers, insecticides and pesticides for better and higher crop yield. It was noted that the use of such chemical inputs was being practiced without proper technical guidance from agricultural extension workers or DA field personnel. In some cases, DA technicians were known to have introduced the use of chemicals for higher yield. Table 8 shows the list of chemical pesticide brand names with their corresponding active ingredients and their environmental risk classification according to the World Health Organization. To address risks associated with unguarded use of chemical inputs, there is need for the DA RFU and the LGU to more actively promote integrated pest management practices in the influence area. There may also be a need to formulate and implement a local pest management plan which can be implemented and monitored collaboratively by the DA RFU and the LGU Municipal Agriculture Officer (MAO).

Table 8 Commonly Used Pesticides and other Chemical Inputs in Lantapan, Bukidnon Brand/Product Active Ingredient Type WHO Classification Name Dithane Mancozeb Fungicide - Manzate Mancozeb Fungicide - Karate 2.5 EC Lambdacyhalothrine (25g/1) Insecticide Moderately Hazardous Magnum 5 EC Cypermetrin Insecticide - Round Up Isopropylamin/ Herbicide - Monoammonium glyphossate

5.2.3 Fauna Mindanao forest mouse (Tarsomys spp.), Black rat (Rattus rattus), Pygmy squirrel (Nannosciurus surrutilus), Philippine green pigeon (Treron pampadera), water cock (Gallierex cinarea), among others, are the common animal species. These animals are essential predators of insects that damage the growth and production of crops. The Mt. Kitanglad National Park is one of the natural habitats of the endangered Philippine eagle (Pithecophaga jeffery,). Carpa (Cyrinos carpio), Tilapia (Tilapia nilotica), Puyo (Anabas testudineus), and Gourami spotted (Trichogaster spp), among others are some of the aquatic species.

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5.2.4 Water Alanib, Manupali, Maagnao, Kulasihan, Tugasan, and Tinago are the six major river systems found in the area, and as much as 40 creeks-tributaries traverse the area. Springs are the primary sources of water for the farms and household needs. Recent hydrologic studies that were done for a proposed water supply system for Lantapan showed that the quality of their raw water is very good. This is due mainly to the fact that no industries are located in the area.

5.2.5 Air Climatic conditions in the area are classified under type IlIl or the intermediate A of the Corona classification where dry season is not pronounced, though it is relatively dry from November to April and wet during the rest of the year. The annual rainfall in the province is in around 2,500 mm, it ranges from 1,900 mm in the driest northern portion and to a high of 3,000 mm in the central and eastern mountain ranges. The heaviest rainfall recorded was almost 0.6 meter (589.9 mm) in Malaybalay (PAG-ASA). However, at higher altitudes in mountainous headwaters even higher intensities probably occur at greater frequencies, with major implications for watershed management.

The mean maximum atmospheric temperature is 280 C and minimum is 19.60 C. The relative humidity is usually high, ranging from a minimum of around 85 percent in March to 90 percent in October. Dust and other particulates emitted due to farming and other activities have not been reported to have adverse impacts on air quality in the area.

5.2.6 People The population of Bukidnon is estimated at 844,000 in 2000, with the majority of its residents located in rural areas, but the growth of its urban population is faster than rural population. Like most of the provinces in Mindanao, Bukidnon's population is composed of migrants from and Visayas, as well as other provinces of Mindanao, who have converged and settled in the area since the late 1940's. The original settlers are called Manobos and Mananapes. There are many indigenous tribes now found in the province-Bukidnon, Tala- andig, Higa-onon, Umayamnon, Matigsalog and Monobos-with more than one tribe coexisting in one municipality. By and large, the indigenous cultural communities are mostly nomadic and engaged in crude farming practices, including "slash and burn" farming methods in land development.

5.2.7 Protected Areas, Critical Natural Habitats The proposed road rehabilitation project in Barangay Kibangay, Lantapan is located in the buffer zone of Mt. Kitanglad National Park. The perimeter of the forest is bounded by a declared buffer zone that absorbs the influx of migrants that have engaged in vegetable production through slashand burnagriculture. Part of the influence area of the Kibangay project includes the scattered patches of vegetable farms within this buffer zone. The basic strategy for development in the buffer zone is sustainable farming where farmers are encouraged to use appropriate technologies for sloping areas in order to conserve the soil and enrich its fertility. While productivity is maintained in their farms, there is less probability that the farmers would need to migrate into the forest protection zone.

The Protected Area Management Board (PAMB) of Mt. Kitanglad, a decision-making body of the park or reserve has been very active in the administration and management of the Mt. Kitanglad National Park. This Board has organized the "Kitanglad Volunteers' Brigade" and DFIMDP Environmental Assessment Final Report

almost all barangays surrounding the park are involved in the park's protection. The Lantapan Municipal Mayor, as a member of the PAMB, shares the responsibility with other stakeholders in the implementation of conservation measures. Therefore the future decisions regarding the subproject will ensure that the proposed subproject activities will not impinge on the PAMB plans for the conservation of the National Park.

Functions and Activities of the Mount Kitanglad PAMB

Resource Access in the Buffer Zone * Identifying or surveying and registration of qualified buffer zone occupants for the fast approval/issuance of their tenurial instruments, restricting entry of new occupants, and preventing land grabbing Protectionand Enforcement * Organization of multi-sectoral protection committee at the barangay level which will help in the protection and rehabilitation of denuded areas within the park. * Involvement and encouragement of communities to participate in the protection and maintenance of the park. Environmnental Education * Establishment of environmental awareness program such as bringing specialists/experts to promote development, conservation, and other related activities. * Promotion of ecotourism activities within the park like mountain hiking/trekking. * Information and education campaigns on proper land use and effects of forest loss and degradation; Community Development * Provision of training and credit support on livelihood activities of communities to avoid conflict on resource extraction and management. * Strengthen/reinforce institutional linkages of communities to service agencies that would help them in community development along with the management of their resources, and livelihood programs. * Promotion of agricultural projects like establishment of local nursery and provision of free planting materials of ecologically and commercially viable crops; Soil erosion, siltation and pollution of water bodies such as lakes, streams, and rivers found in the protected areas would be minimized if not avoided. Social Services * Rehabilitation of existing trails and roads to improve access of communities to essential services. * Promotion of the use of indigenous biomedicines

5.3 Cebu The province of Cebu is located in the Central Visayas Region, as one of the DFIMDP focus areas. It is located in a narrow strip of land in the center of the region and comprises a total of about 167 islands. The province has a total land area of 508,839 hectares, of which 315,138 hectares (62%) are being utilized for agriculture. The location map of Cebu province is shown in Figure 4.

5.3.1 Land The estimated land area for the focus area and the locality for the subproject site is shown below. Table 9 Land Area of Central Visayas Focus Area and Cebu (hectares) Central Visayas (Region 7) 1,843,879 CebuProvince 508,839 Dalaguete Municipality 15,496

The topography of the island-province is made up of rough mountains and rolling steep slopes in the highlands. Dalaguete, which is the site of the proposed road rehabilitation project, consists of gently sloping (3-8%), undulating to rolling to steeply sloping (18-50%).

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The soil is predominantly of sandy loam and silty clay loam composition in the province and even at the vicinity of the proposed subproject (Caleriohan and Mantalongon).

Copper is the main mineral of the province. Coal, dolomite, limestone, Mactan stone, blackstone, guano, silicious sand and cement are among the non-metallic minerals found in the province.

Figure 4 Location Map of Central Visayas Focus Area and Cebu Province

000000 a+00000 30000o 00000 300000 CEBU CLUSTER 6__ U^JANUG / SBNA

2 ,J0 2*t

(App-o, S..le I 30000)

8 LEGEND .. Roads Built-up Areas Corrals Elevation (masfl meters 0- I 00 600 700 + +020 200 -30 600 9000 I 400 -50 0 900 1000

8

M A Uyoc BOIIOON ~~~~~~~~~~~~~~~~~.p Sol.- DA

About 72% of Cebu's land area is classified as alienable and disposable and the balance of 28% is classified as forest land. A large portion (86%) of the A&D lands are devoted to agriculture.

Barangay Dugyan, which is the primary influence area of the proposed road rehabilitation project, is the farthest upland barangay south of Mantalongan-the vegetable market center of Dalaguete. Adjacent barangays traversed by the road include barangays Nalhub and Catalohan. The combined land area of these barangays is 1,956 hectares, of which around 157 hectares (8%) are devoted to agriculture. The farming area is limited by the rugged topography with few patches of flat lands, but they are irrigated by rich sprng sources. Most of the farms are using Sloping Agricultural Land Technology (SALT). 5.3.2 Flora Molave forest represented by Molave (Vitex parviflora), Kamagong (Diospyros philippinensis), Ficus spp., Tindalo (Afzelia rhomboida) and Cinamomum spp.are the primary vegetation in the municipality; miscellaneous forest species like Dapdap (Erythrina variegata), Kakauate (Gliricidia sepium), Hauili (Ficus hauili), Ipil-ipil (Leucaena leucocephala), among others and medicinal plants abound in the area.

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Farmers in the municipality of Dalaguete were taught scientific techniques to increase farm productivity and production efficiency of vegetables. Modern farming principles are widely known and practiced, including multiple cropping and the use of organic fertilizer and good quality seeds. According to the farmers, attacks of pests and diseases in the area are negligible because they practice mixed cropping.. However, they find it unavoidable to resort to the use of some chemical insecticides and pesticides. The commonly used chemical inputs are shown in Table 10.

Table 10 Commonly Used Pesticides and other Chemical Inputs in Lantapan, Bukidnon Product Name Active Ingredient Type WHO Classification Dithane Mancozeb Fungicide Manzate Mancozeb Fungicide Karate 2.5 EC Lambdacyhalothrine (25g/1) Insecticide Moderately Hazardous Magnum 5 EC Cypermetrin Insecticide Round Up Isopropylamin/ Herbicide Monoammonium ______glypI hossate

5.3.3 Fauna Dark-throated oriole, Cebu flower-pecker (Dicaeum quadricolor) and Black shama (siloy) are among the birds that are still existing in the remaining forest patches of Cebu. Kawasan paper kite (Idea leuconejumalon,), a butterfly species, is endemic in the site. This butterfly is vital in pollination activities.

5.3.4 Water Springs of hinterland barangays like Mantalongon (focus site), Caleriohan, Dugyan, and other hilly mountain areas are among the main sources of water supply in Dalaguete. Re- vegetation of these mountains is needed, since the forest cover is now about 28 % percent or less.

Among the water sources in the municipality are Dalaguete Water District, Casay, Lanao, Malones, Tuba, Caliongan and Langkas water systems. So far, there are no reported problems in the water quality and supply in the vicinity of the subproject site. However, DENR with the coordination of the municipality of Dalaguete continuously implement programs on watershed rehabilitation/development and protection to support or improve hydrologic conditions there.

5.3.5 Air The climate and rainfall patterns of Cebu are categorized as Type IlIl climate of the Corona classification where dry season is from November to April and the rest of the year is wet season. Atmospheric temperature ranges from 22.6 to 33.1C0. The coolest temperature is normally felt in January and the warmest in May. The mountain barangays have cool climate; Mantalongon is also known as the "little Baguio" of Cebu where high-value vegetables and cut flowers are produced. The level of air pollution or nuisances from dust due to road construction and other sources have not been reported pose any hazard or threat.

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5.3.6 People Of the more than 5 million people living in the Central Visayas Region (Region 7), 2.6 million or more than half are residents of Cebu province. The Cebu metropolis has been attracting a yearly stream of migrants from nearby Visayan provinces since the export boom in the 1970's, which brought about rapid industrialization and increased demand for labor. The population is still predominantly Cebuano-speaking and a small minority is llonggo, but virtually everybody understands Tagalog and English.

Being in one of the most economically progressive regions in the country, the magnitude of poverty in Cebu province is relatively less than most other provinces. In 2000, it had a poverty incidence estimated at 28.7 % of families having incomes below the poverty threshold. This is better than the regional poverty incidence of 32.3% and the national level of 36%.

Quite a contrast to the modern metropolis that dominates the economy of Cebu, the municipality of Dalaguete is still reliant on agriculture. It constitutes some of the province's hilly barangays that have been isolated by rugged terrain and poor quality road system. The influence area of the road rehabilitation project (Dugyan, Nalhub and Catolohan barangays) is primarily devoted to traditional livelihoods such as small-scale farming, livestock raising, trading and basket weaving.

5.3.7 Protected Areas, Critical Natural Habitats

The site of the proposed road rehabilitation project in Dalaguete Cebu, is located at the foot of the Osmenia peak and other mountain ranges. The production areas to be benefited by the road are however located in the hilly barangays which also serve as the watershed of the municipality. Measures to maintain the quality of the water resources have to be in place, including continuous assistance to farmers for proper handling of chemical inputs and expansion of areas under integrated pest management. 6 Environmental Impact Assessment 6.1 "Without Project" Scenario 6.1.1 Poor road conditions Without the project, the farms in the subproject areas will remain largely under the same inefficient farming operations as there is no active trading with large buyers or processors who generally require consistent quality and reliable supply of produce The subproject areas will remain isolated from government services and outside the scope of commercial trading operations of private trading associations in Bukidnon due to the unfavorable physical conditions. 6.1.2 Shifting Cultivation The upland areas with fragile ecosystems remain susceptible to encroachment by migrant- farmers seeking more fertile areas. Most of the sites that were selected for the market- support infrastructure subprojects for the first year of Project implementation happen to be located in remote rural barangays where landless people have migrated and settled. Some of the sites are located in mountainous terrain which have been encroached by farmers practicing "slash and burn" methods of land clearing and development for the past 20-30 years. While most of them are settled now, the mere presence of migrant farmers could pose as a long-term threat to the remaining forested areas in their vicinity. Farming

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techniques that are inappropriate for sloping terrain will continue to be widely practiced by the farmer-migrants in the upland areas of the subproject sites, as most of them are untrained to do sustainable farming operations, especially in Lantapan.

The risk of encroachment is being addressed by existing natural resource management plans that are in place for the protection of such forest resources in the protected areas near the Lantapan and the Atok subproject areas. As long as the institutional arrangements remain active and local government units continue to cooperate with each other, these measures can reduce the risk of encroachment into the protected areas.

6.1.3 Occurrence of surface runoff (SRO) and soil erosion (SE). Farming in the upland areas, if not done and managed properly, may lead to surface runoff and soil erosion in the long-term that will result in the reduction of soil fertility. Eventually they affect productivity of the farm and may cause the farmer to move to other areas. Likewise, SRO and SE can lead to siltation and sedimentation of water bodies, which are important resources in most of the subproject areas. The influence area of the Dalaguete road project is partly within the site of the municipality's watershed. The municipality of Lantapan in Bukidnon also has six major river systems found in the area, with 40 creeks- tributaries traversing the area. While there are no problems that are reported yet in the volume and quality of their water supply, unchecked erosion in the upland farming areas may cause a reduction of the volume of water in creeks and streams in the long-run.

6.1.4 Watershed Rehabilitation Efforts of farmers to increase production are made to conform with conservation plans for the upland areas. Programs and projects under the Bukidnon Environmental and Natural Resources (BENRO) include watershed rehabilitation, establishment of tree plantations, parks and wildlife management, and environment and pollution management, among others. Presently, the DA RFU is very active in providing technical assistance to farmers in the Mt. Kitanglad buffer zone with regard to sustainable farming practices. In Buguias, Benguet where the subproject area is located immediately below the plateau of the Mt. Data National Park, the DENR in cooperation with Buguias Municipal and Loo Barangay governments, has imposed restrictions on the use of the park resources and formulated a Park Development and Management Plan to protect and conserve the fragile ecosystem.

6.1.5 Chemical Residue Levels The government's capacity to monitor and report regularly the actual levels of chemical residues in the focus areas (at the municipal level) is presently very weak. Without the Project, the public remains ignorant of the environmental problems that may already be arising from unregulated and unmonitored use of agricultural chemical inputs in the subproject areas. These are lost opportunities for what could have been more effective advocacy for integrated pest management at the local and at the national levels.

6.1.6 Pest Management There is a high level of awareness of integrated pest management methods in most of the farms in the subproject areas. Its actual application is however variable and depends on the ability of the LGU and DA farmer education programs to sustain the flow of technical

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assistance and monitor activities, especially during phases of production intensification and crop diversification.

6.2"With Project" Scenario The negative environmental impacts from the civil works are generally minimal, temporary and immediately reversible with appropriate mitigation measures that can incorporated in the technical specifications of the subproject. However, since the location of the subprojects are in the upland areas, some negative environmental impacts are foreseen to arise in the long- term if farming activities are intensified. These are associated with aggravated environmental risks that are pre-existing in the area, such as the long-term effects of inappropriate planting methods in slopes, unguarded pesticide use, encroachment of remaining forests, which were observed in some of the subproject areas in varying degrees. The subproject creates an opportunity to combine the efforts of DA, DENR and the LGUs to regulate economic activities in the subproject influence areas existing plans for protection of fragile upland ecosystems are preserved.

6.2.1 Improved Road Conditions to the Inner Barangays The market support investment for the focus areas will be channeled mostly to the rehabilitation of existing farm-to-market roads that have fallen into disrepair. Minor civil works are involved such are site preparation, gravelling and rehabilitation of drainage canals. Concrete paving, if any, will be limited to tire paths along the middle of the road. As such, the subprojects will not cause significant incremental impact to the land, water, air and human components of the environment.

No land acquisition is going to be needed as areas covered by the subprojects are existingand free from any conflicting claims, current usage and legal encumbrances. Land/site clearing will be limited to minor excavation works, brushing of grasses and other shrubs on roadsides in preparation for road surfacing and installation of drainage canals. Negative impacts on vegetation in the vicinity of the subproject will be temporary and immediately reversible through regeneration.

6.2.2 Better Access to Information and Agricultural Extension Services The project will also bring about better access of farmers to government services due to the better quality of roads and the increased market transactions in the area. It is anticipated that more frequent contacts with government extension workers will lead to more effective conservation and environmental protection measures under integrated pest management programs, natural resource management plans, protected area management plans and watershed rehabilitation plans. It could also create conditions for closer collaboration between the DENR and the DA in the promotion of sustainable farming.

6.2.3 Increased Road Traffic

Any road improvement project is expected to generate an increased flow of vehicles into the area. This may have disruptive effects on the air quality from smoke-belching overloaded trucks and may also result in increased road accidents. Traffics can be regulated by the LGU with the enforcement of local ordinances that can impose limits on truck loads and schedule hauling activities.

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7 Environmental Management Plan 7.1 Pre-implementation There are no anticipated critical environmental impacts during the pre-implementation phase as there are no physical works that will be done, except surveys. 7.2 Construction Phase The activities during this phase will mainly involve site preparation that includes minor excavation, vegetation brushing, hauling of aggregates and other materials. The environmental impacts that are likely to occur are surface runoff, soil erosion and siltation and sedimentation of nearby water bodies. In order to mitigate against these impacts, the subproject will provide slope and road cut protection and construct a road drainage system for all the roads. The technical plans include riprapping, wattling, fascine installation and vegetative lining including enrichment planting. Proper construction site management, proper disposal of solid wastes and earth spoils will be observed at all time. It will also include construction of sediment traps to prevent clogging of drainage canals. These works will be incorporated in the technical specifications for compliance by LGUs and contractors.

The construction work may also generate dust and increase the noise levels in the vicinity of the road project. The contractor will be required to regularly sprinkle the work areas with water to avoid such nuisance on residents during construction. This will be enforced through the regular monitoring of construction work by the Municipal Engineer or Project Manager of the LGU.

7.30peration and Maintenance Post-completion activities include the cleaning of drainage canals, filling of potholes, clearing of overgrowth of vegetation along the sides of the road as part of the basic operation and maintenance of the farm-to-market roads. These will be the responsibility of the barangay and will be monitored by the Municipal Engineer through regular inspection. Such visits will also enable the LGU to take action on any needed road and/or drainage repair.

7.4 Environmental Management Plan for Year-1 Subprojects Table 11 presents the environmental management plan for the DFIMDP year 1 subprojects indicating the predicted/potential impacts, the relevant mitigation measures and the persons responsible for implementation. The monitoring plan for the individual subprojects will be formulated in the course of EMP formulation and will reflect agreements made among stakeholders during consultations. 7.5 Environmental Guidelines for DFIMDP Subprojects for Year 2 Onwards For DFIMDP subprojects to be implemented in year 2 and onward will adopt a set of Environmental Guidelines (attached as Annex to this report) that is consistent with the Bank's and the government's environmental assessment policies. 8 Institutional Arrangements for Environmental Management The broad range of immediate and long-term environmental impacts and the means to address them go beyond the present capacity and scope of responsibilities of the Project's lead agency, the Department of Agriculture. The focus of DA operations has traditionally been in the promotion of certain crops and introducing related farming technologies where there is potential for commercial production. Environmental screening of subprojects,

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evaluation of environmental management plans, and giving advice to proponents on environmental impact mitigation are not among the usual activities of the DA RFUs but can be integrated in its regular functions. Even as DA RFUs do not have environmental specialists who can handle very technical aspects of some complex EIA studies, they have staff with basic skills in sciences and engineering that can be harnessed for these functions. Institutional capacity to support environmental management needs of the DFIMDP focus areas can be improved significantly with a clearer delineation and definition of functions of DA and the DENR when it comes to upland farming. While some of the subproject areas are under a natural resource management plan, the specific action plans do not directly involve the DA whose concern is to support the farming activities and agricultural marketing in these areas.

The integrated pest management program of the DA needs to be revived and given more prominence in order to sustain the interest and high level of awareness of farmers. Since extension services and farmer training are now the responsibility of the local government units, the IPM information dissemination and promotional strategies should try to more actively engage LGUs, especially those in upland areas and critical watersheds. Field monitoring and follow-up technical services by the DA-RFU at the farm level are also as important to make sure that recommended IPM methods are properly applied.4

8.1 Capacity Building and Institutional Arrangements for Environmental Assessments There is a need therefore to undertake the following institutional measures in each of the RFUs, Proponent LGUs and Grower's Associations in preparation for environmental assessment functions of the Project:

• Basic orientation on the Environmental Impact Assessment System, Environmental Guidelines and familiarization with its forms, mandatory processes, technical criteria and related policies and rules. * Designate an appropriate person(s) in the DA-RFU staff who will act as environment focal person for DFIMDP subprojects and other infrastructure projects supported by DA in the region. • Revive linkages with local government units for the renewal of integrated pest management programs in the subproject areas and provide them assistance in the preparation and monitoring of a sound pest management plan. * Strengthen linkages with the DENR for better collaboration on the enforcement of rules and regulations relevant to upland farming in critical watersheds and protected areas.

4 In the Philippines, the Maximum Residue Limits (MRL) for pesticides have not yet been established limits set by Codex Alimentarius are used instead.

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Table 11 Environmental Management Plan for all Year-1 Subprojects Project Type: Construction and Rehabilitation of Farm to Market Roads

Subproject Possible Mitigating /Enhancement Responsible Cost of /Activities/ Environmental Measures Agency I Mitigation Components Effects /Impacts Unit (Php) 1.0 PRE-IMPLEMENTATION PHASE 1.I Planning and design Enhanced stakeholder LGU of road participation -Hold meeting with project rehabilitationlconstru beneficiaries and other ction stakeholders on the construction plan, operation and management plans and corresponding environmental management plan - Giving hiring preference to qualified local community

1.2 Hiring of construction Increased LGU workers/laborers employment opportunity and community income

TOTAL COST FOR PRE-IMPLEMENTATION

2.0 IMPLEMENTATION PHASE 2.1 Rehabilitation of - Accumulation of - Scrapping, removal & disposal Contractor Farm to Market Road rubbish materials of rubbish & foreign materials /LGU along the roadway to the dumpsite of the as a result of municipality. clearing & grubbing operations.

- Loosening of top - Compaction of topsoil as Contractor soil due to the required by the specifications. /LGU removal of excess earth materials along the roadway.

- Existence of - Hauling, spreading & Contractor slightly low laying compacting of filling materials /LGU areas along the road from earth cuts. sections - Hauling, spreading & compacting of filling materials Contractor/ from LGU borrow pits to fill in low laying areas.

- Muddy, soft, - Hauling, spreading and unstable road compacting sub-base & surface Contractor foundation. materials at .15mtrs. thick each /LGU from Sta. 0+000 to Sta. 6+000

- Hardly passable - Provision of PCCP with .I 5mtr. Contractor/ section along thick LGU Sta.0+260 to Sta.0+480.

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Subproject Possible Mitigating / Enhancement Responsible Cost of /Activities/ Environmental Measures Agency / Mitigation Components Effects /Impacts Unit (Php) - Over flooding of the - Provision of 40 lineS (610 dia Contractor road due to RCPC) along the roadway as /LGU excessive indicated in the plan. accumulation of rainwaters. - Provision of 40 units Junction Contractor Box and 40 Units /LGU Outfall/Headwalls to convey rainwater to RCPC and drainage

- Road Sections - Provision of 410 lin. Meters of Contractor damage due to no lined canal at strategic location /LGU defined waterways along the roadway. for rain waters

- Constricting the - Provision of traffic warning normal traffic flow signs, barricades and flagmen Contractor along the road. along the road during the entire work operations of the Contractor.

- Schedule the delivery of construction materials and hauling out of waste materials during off peak hours

- Degradation of air - Road traversed by heavy Contractor quality as a result of equipment use in the project heavy equipment shall be moist. operation

- Noise of operating -Exhaust mufflers of heavy Contractor vehicles beyond equipment must be clean & be normal levels. provided with silencers. -Ensure that all equipment are maintained in proper working condition

- Vehicular accidents - Restrict work operations Contractor as a result of heavy during daytime only. equipment - Drivers & heavy equipment operation within the operators shall operate heavy subproject & nearby equipment at reduced speed. areas. - Provide appropriate warning signs, lighting and barricades, whenever practicable - Proper information dissemination on the affected areas.

- Erosion of slopes - Provision of slope stabilization LGU measures such as planting of cover crops, trees, etc. along cut slopes.

- Occupational risk - Require all workers to strictly Contractor and health hazards to observe standards on safety construction workers construction measures TOTAL COST OF CONSTRUCTION

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Subproject Possible Mitigating / Enhancement Responsible Cost of /Activities/ Environmental Measures Agency / Mitigation Components Effects /Impacts Unit (Php) 2.2 Trainings and - Haphazard - Provide adequate trainings to DA- Seminars implementation of sub-project implementers. RFU/LGU SPs

- Low quality of - Provide adequate quality constructed control trainings to LGU & DA- infrastructure. PPO staff. RFU/LGU

- Lack or no proper - Provide adequate trainings on maintenance of O&M to LGUs and BITs. completed SPs DA-RFU/LGU TOTAL COST OF TRAINING

2.3 Monitoring and -Implementation of -Closely monitor & supervised LGU supervision of sub- sub-project not in the work of the Contractor project implementation. accordance with the using the project management approved plans, tools. specifications & quality TOTAL COST OF MONITORING

3. POST IMPLEMENTATION PHASE 3.1 Operation & Reduced farm income - LGU to ensure proper use of LGU Maintenance due to difficulty in the road & its timely transporting farm maintenance for a period of 10 goods as a result of years. deterioration of road - Provide appropriate warning signs along the route, if necessary

-Erosion of Road - Planting of Shrubs & bushes & Shoulders selected trees along the road shoulders. LGU TOTAL COST FOR OF IMPLEMENTATION

8.2 Proposed Staffing Arrangements 8.2.1 The Local Government Unit The LGU may designate either its Municipal Planning and Development Officer, Municipal Agricultural Officer or Municipal Environment and Natural Resource Officer, where present, to be the focal person on environment and other related safeguard aspects. The LGU focal person will be responsible for (1) preparing the EMP or IEE Checklist or IEE Report; (2) ensuring that measures are implemented by the contractor; (3) monitoring compliance by the contractor with EMP; and (4) reporting to the Mayor on the status of compliance and recommend remedial measures in case of deviations noted.

8.2.2 DA-RFU The DA-RFU Director will designate a focal person on safeguards among its organic staff to assist the LGU in preparing the EMP or IEE and other safeguards documents, review the adequacy of the EMP or IEE and monitor compliance by the LGU on the EMP.

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8.2.3 DENR Environment Management Bureau Arrangements will be made with EMB for the screening, review and processing of subprojects to ensure timely evaluation of ECC applications, provision of technical assistance and capacity building activities for the DA, LGU and proponent organizations such as grower associations on EIA requirements and EMP preparation.

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