Philippines: Cordillera Highland Agricultural Resource Management Project

Completion Report Project Number: 26517 Loan Numbers: 1421/1422-PHI(SF) May 2006 Philippines: Cordillera Highland Agricultural Resource Management Project CURRENCY EQUIVALENTS Currency Unit – peso (P) At Appraisal At Project Completion (31 October 1995) (9 December 2005) P1.00 = $0.0385 $0.01875 $1.00 = P26.00 P54.12 ABBREVIATIONS ADB – Asian Development Bank ASS – agricultural support services ADF – Asian Development Fund BME – benefit monitoring and evaluation BNRMP – Barangay Natural Resource Management Plan CADT – certificate of ancestral domain title CAR – Cordillera Administrative Region CHARM – Cordillera Highland Agricultural Resource Management Project CIS – communal irrigation system DA – Department of Agriculture DA-CAR – Department of Agriculture-Cordillera Administrative Region DAR – Department of Agrarian Reform DENR – Department of Environment and Natural Resources DWS – domestic water supply system EIRR – economic internal rate of return FIES – Family Income and Expenditures Survey FMR – farm-to-market road HADP – Highland Agricultural Development Project ICC – indigenous cultural community IFAD – International Fund for Agricultural Development IPM – integrated pest management LGU – local government unit NCIP – National Commission on Indigenous Peoples NGO – nongovernment organization NIA National Irrigation Administration OCR – ordinary capital resources O&M – operation and maintenance PEO – Provincial Engineering Office PMO – project management office PSO – project support office RISC – Regional Interagency Steering Committee SSCG – Small Savings and Credit Group GLOSSARY barangay – The lowest local government administrative unit lapat – Forest management practice by the indigenous people NOTES (i) The fiscal year (FY) of the Government ends on 31 December. (ii) In this report, "$" refers to US dollars. Vice President C. Lawrence Greenwood, Jr., Operations Group 2 Director General R. M. Nag, Southeast Asia Department (SERD) Director U. Malik, Agriculture, Environment and Natural Resources Division, SERD Team leader T. Miyazato, Senior Water Resources Specialist, CWRD (formerly with SERD) Team member E. Tayao-Castro, Assistant Project Analyst, SERD CONTENTS Page BASIC DATA i MAP vii I. PROJECT DESCRIPTION 1 II. EVALUATION OF DESIGN AND IMPLEMENTATION 2 A. Relevance of Design and Formulation 2 B. Project Outputs 4 C. Project Costs 6 D. Disbursements 6 E. Project Schedule 6 F. Implementation Arrangements 6 G. Conditions and Covenants 7 H. Consultant Recruitment and Procurement 7 I. Performance of Consultants, Contractors, and Suppliers 8 J. Performance of the Borrower and the Executing Agency 8 K. Performance of the Asian Development Bank 8 III. EVALUATION OF PERFORMANCE 9 A. Relevance 9 B. Effectiveness in Achieving the Outcome 9 C. Efficiency in Achieving Outcomes and Outputs 10 D. Preliminary Assessment of Sustainability 11 E. Impact 12 IV. OVERALL ASSESSMENT AND RECOMMENDATIONS 13 A. Overall Assessment 13 B. Lessons 13 C. Recommendations 14 APPENDIXES 1. Project Framework 16 2. Summary of Training Programs 28 3. Organization Chart 29 4. Actual Annual Project Cost 32 5. Project Implementation Schedule 35 6. Status of Compliance with Loan Covenants 38 7. Staffing Schedule of Consultants 42 8. List of Equipment 44 9. Economic Analysis 48 BASIC DATA A. Loan Identification 1. Country Philippines 2. Loan Number 1421/1422(SF) 3. Project Title Cordillera Highland Agricultural Resource Management Project 4. Borrower Republic of the Philippines 5. Executing Agency Department of Agriculture; Department of Environment and Natural Resources 6. Amount of Loan L1421: $9,500,000 L1422: SDR6,357,000 ($9,500,000) L397-IFAD: $9,200,000 7. Project Completion Report Number PCR:PHI 942 B. Loan Data 1. Appraisal – Date Started 17 May 1995 – Date Completed 8 June 1995 2. Loan Negotiations – Date Started 19 October 1995 – Date Completed 19 October 1995 3. Date of Board Approval 11 January 1996 4. Date of Loan Agreement 8 May 1996 (signing date) 5. Date of Loan Effectiveness – In Loan Agreement 30 September 1996 – Actual 3 June 1997 – Number of Extensions 4 6. Closing Date – In Loan Agreement 30 September 2003 – Actual L1421: 16 May 2005; L1422: 10 June 2005 – Number of Extensions 1 (for L1421) 2 (for L1422) 7. Terms of Loan – Interest Rate Pool-based variable rates – Maturity (number of years) 27 years for ordinary capital resources 35 years for Asian Development Fund – Grace Period (number of years) 7 years for ordinary capital resources 10 years for Asian Development Fund ii 8. Disbursements a. Dates Initial Disbursement Final Time Interval Disbursement L1421: 15 September L1421: 16 May 92 months 1997 2005 L1422: 26 November L1422: 10 June 92 months 1997 to BCEOM 2005 Effective Date Original Closing Time Interval Date 3 June 1997 30 September 2003 75 months b. Amount Loan No. 1421-PHI (in $) Last Category Original Revised Amount Amount Undisbursed No. Description AllocationAllocation Cancelled Disbursed Balance 01 Civil Works 3,862,000 6,522,565 (2,660,565) 6,522,565 0 Equipment and 02 Vehicles 455,000 231,040 223,960 231,040 0 Interest and 03 Commitment Charges 1,707,000 1,546,395 160,605 1,546,395 0 04 Unallocated 416,000 0 416,000 0 0 Local Expenditure 3,060,000 0 3,060,000 0 0 Total 9,500,000 8,300,000 1,200,000 8,300,000 0 Loan No. 1422-PHI(SF) (in $) Last Cat Original Revised Amount Amount Undisbursed No. Description AllocationAllocation Cancelled Disbursed Balance Equipment and 01 Vehicles 1,273,242 1,506,036 (232,794) 1,506,036 0 02 Training 40,349 652,650 (612,301) 652,650 0 03 Consulting Services 532,012 2,046,291 (1,514,279) 2,046,291 0 Surveys and Special 04 Studies 53,799 1,883,156 (1,829,357) 1,883,156 0 05 Recurrent Costs 321,299 109,932 211,367 109,932 0 Service Charge During 06 Construction 639,610 229,889 409,721 229,889 0 07 Unallocated 200,252 0 200,252 0 0 Local Expenditure 6,439,437 0 6,439,437 0 0 Total 9,500,000 6,427,954 3,072,046 6,427,954 0 iii Loan No. 1422-PHI(SF) (in SDR) Last Cat Original Revised Amount Amount Undisbursed No. Description AllocationAllocation Cancelled Disbursed Balance Equipment and 01 Vehicles 852,000 1,148,743 (296,743) 1,148,743 0 02 Training 27,000 490,496 (463,496) 490,496 0 03 Consulting Services 356,000 1,530,498 (1,174,498) 1,530,498 0 Surveys and Special 04 Studies 36,000 1,410,912 (1,374,912) 1,410,912 0 05 Recurrent Costs 215,000 82,060 132,940 82,060 0 Service Charge During 06 Construction 428,000 170,370 257,630 170,370 0 07 Unallocated 134,000 0 134,000 0 0 Local Expenditure 4,309,000 0 4,309,000 0 0 Total 6,357,000 4,833,079 1,523,921 4,833,079 0 9. Local Costs (Financed: ADB+IFAD) - Amount ($’000) 12,165 - Percent of Local Costs (Actual) 51.19% - Percent of Total Cost (Actual) 38.16% C. Project Data 1. Project Cost ($’000) Cost Appraisal Estimate Actual Foreign Exchange Cost 9,532 8,111 Local Currency Cost 31,968 23,764 Total 41,500 31,875 2. Financing Plan ($’000) Cost Appraisal Estimate Actual Implementation Costs Borrower-Financeda 13,194 11,599 IFAD-Financed 9,243 5,318 ADB-Financed 16,717 13,182 Total 39,154 30,099 IDC Costs and Service Charge Borrower-Financed ADB-Financed 2,346 1,776 Total 41,500 31,875 ADB = Asian Development Bank, IDC = interest during construction. a Including beneficiaries’ in-kind contribution of about $2.4 million. iv 3. Cost Breakdown by Project Component ($’000) Appraisal Component Estimate Actual A. Community Mobilization and Resource Management 13,484 13,181 Community Mobilization and Participatory Planning 3,365 1,395 Natural Resource Management 10,119 11,786 B. Rural Infrastructure Development 14,709 11,174 Farm-to-Market Access 6,130 4,799 Community Irrigation 7,104 5,415 Domestic Water Supply 1,476 960 C. Agricultural Support Services 3,407 4,700 Agribusiness Service 1,009 2,303 Extension Services 1,021 987 Adaptive Research Service 862 893 Integrated Pest Management 438 423 Rural Financial Services 78 94 D. Project Management and Coordination 1,421 1,044 Physical Contingenciesa 3,098 Price Contingenciesb 3,035 Total Project Cost before Service Charge 39,154 30,099 Service Charge and IDC on the Loan 2,346 1,776 Total Project Cost 41,500 31,875 a At 10% for civil works, vehicles and equipment; and 5% for other items. b Annual factor of 2.2% for foreign exchange costs and 8% for local currency costs. 4. Project Schedule Item Appraisal Estimate Actual Date of Contract with Consultants Project Consultants: Project Consultants: Q3 1996 29 Dec 1997 NGO: Q4 1996 NGO:3 May 1999 Completion of Engineering Designs Q4 2000 31 December 2003 Civil Works Contract Date of Award Q4 1996 Project Consultants: 21 January 1998 NGO: 14 June 1999 Completion of Work Q4 2002 September 2003 Equipment and Supplies Dates First Procurement Q3 1996 1997 Last Procurement Q4 1997 2003 Start of Operations Beginning of Start-Up Q3 1998 11 November 1996 Other Milestones First Partial Cancellation 26 April 2000 (L1421/1422) Second Partial Cancellation 12 March 2004 (L1422) Third Partial Cancellation 23 June 2005 (L1422) v 5. Project Performance Report Ratings Ratings Implementation Implementation Period Development Objectives Progress From 1 August 1998 to 30 November 1998 Satisfactory Satisfactory From 1 December 1998 to 30 June 2000 Partly Satisfactory Partly Satisfactory From 1 July 2000 to 30 June 2004 Satisfactory Satisfactory From 1 July 2004 to 30 June 2005 Satisfactory Satisfactory D. Data on Asian Development Bank Missions No. of No. of Person- Specialization of Name of Mission Date Persons Days Members Fact-Finding 17 August– 9 162 Livestock Specialist,

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