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Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 38670-PH PROJECT APPRAISAL DOCUMENT ON A PROPOSED LOAN IN THE AMOUNT OF US$50 MILLION Public Disclosure Authorized AND A PROPOSED GRANT FROM THE GLOBAL ENVIRONMENT FACILITY TRUST FUND IN THE AMOUNT OF US$7 MILLION TO THE REPUBLIC OF THE PHILIPPINES Public Disclosure Authorized FOR A NATIONAL PROGRAM SUPPORT TO ENVIRONMENT AND NATURAL RESOURCES MANAGEMENT PROJECT May 25,2007 Rural Development, Natural Resources and Environment Sector Unit Sustainable Development Department East Asia and Pacific Region Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS Exchange Rate Effective March 19,2007 Currency Unit = Philippines Pesos US$l = P48 FISCALYEAR January 1 - December 31 ABBREVIATIONS AND ACRONYMS 4DB Asian Development Bank 40s Administration Orders APL Adaptable Program Lending BNFI Bicol National Park Foundation ZAS Country Assistance Strategy ZBD Convention on Biological Diversity CBFM Community Based Forest Management CENRO Community Environment and Natural Resources Officer CEPF Critical Ecosystems Partnership Fund CLUP Comprehensive Land Use Plan CPPAP Conservation of Priority Protected Areas Program DA Department of Agriculture DA-BFAR Department of Agriculture - Bureau of Fisheries and Aquatic Resources DA-BSWM Department of Agriculture - Bureau of Soil and Water Management DAO Department Administrative Order DENR Department of Environment and Natural Resources DILG Department of Interior and Local Government EA Environmental Assessment EcoGov Environmental Governance EMB Environment Management Bureau ENR Environment and Natural Resources ENRU Environment and Natural Resources Unit FASPO Foreign Assisted Program Office FMB Forest Management Bureau GAA General Appropriation Act GEF Global Environment Facility GIS Geographic Information System GOP Government of the Philippines GPOA General Plan of Operations and Activities IBRD International Bank for Reconstruction and Development ICB International Competitive Bidding IEC Information, Education and Campaign IEM Integrated Ecosystem Management IFR Interim un-audited Financial Reports IPAF Integrated Protected Area Fund IPRA Indigenous Peoples’ Rights Act IUCN International Union for the Conservation of Nature FOR OFFICIAL USE ONLY JICA Japan International Cooperation Agency LGUs Local Government Units LSP Local Service Providers M&E Monitoring and Evaluation MFO Major Final Outputs MGB Mining and Geosciences Bureau MOAS Memoranda of Agreement MOOE Maintenance and other Operating Expenses MSWW Metro Manila Water and Sewage Authority MVDP Medium Term Philippine Development Plan NBSAP National Biodiversity Strategy and Action Plan NEDA National Economic Development Authority NL4 National Irrigation Administration NIPAS National Integrated Protected Areas System NPS- National Program Support to Environment and Natural Resources ENRM Management NRM Natural Resource Management PA Protected Area PAg Program Agreement PAB Project Advisory Board PAMB Protected Areas and Management Board PAW Protected Areas Wildlife Bureau PCO Project Coordination Office PENRO Provincial Environment and Natural Resources Officer PES Payments for Ecosystem Services PFEC Philippine Federation for Environmental Conservation PPSO Policy and Planning Service Office PSU Private Service Unit SIL Sector Investment Loan SIM Sector Investment and Maintenance Loan SLM Sustainable Land Management UNDP United Nations Development Program USAID United States Agency for International Development WEM Watershed and Ecosystem Management WMC Watershed Management Council Vice President: James W. Adams, EAPVP Country Manager: Joachim von Amsberg, EACPF Sector Director Christian Delvoie, EASSD Sector Manager: Rahul Raturi, EASRE Task Team Leader: Idah Pswarayi-Riddihough, EASRE This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not be otherwise disclosed without World Bank authorization. PHILIPPINES National Program-Support to Environment and Natural Resources Management TABLE OF CONTENTS Page A . STRATEGIC CONTEXT AND RATIONALE ................................................................ 1 1. Country and sector issues .......................................................................................................... 1 2 . Government Strategy ................................................................................................................ 1 3 . GEF Eligibility.......................................................................................................................... 2 4 . Rationale for Bank and GEF involvement................................................................................. 3 5 . Contributory factors to the potential for DENRs success with proposed initiative ...................3 6 . Higher level objectives to which the project contributes ............................................................ 4 7 . GEF Operational Strategy/program Objective Addressed By the Project ................................. 4 B. PROJECT DESCRIPTION .............................................................................................. 4 1. Lending Instrument .................................................................................................................. 4 2. Project development objective and key indicators ..................................................................... 5 3 . Project Components ................................................................................................................. 5 4 . Lessons learned and reflected in the project design ................................................................... 9 5 . Alternatives considered and reasons for rejection ..................................................................... -9 C. IMPLEMENTATION ..................................................................................................... 10 1. Partnership arrangements., ...................................................................................................... 10 2 . Institutional and implementation arrangements., ..................................................................... 10 3 . Monitoring and evaluation of outcomes/results ...................................................................... 11 ... 4 . Sustainability and Rephcabhty................................................................................................. 12 5 . Critical risks and possible controversial aspects (see also Annex 13) ........................................ 13 6 . Loanlaedit conditions and covenants .................................................................................... 15 D. APPRAISAL SUMMARY ................................................................................................. 16 1. Economic and financial analyses ............................................................................................. 16 2. Technical................................................................................................................................. 16 3 . Fiduciary ................................................................................................................................. 17 4 . Social ...................................................................................................................................... 18 5 . Environment Category B (Partial Assessment) ....................................................................... 19 6 . Safeguard policies .................................................................................................................... 20 7 . Policy Exceptions and Readiness: No policy exceptions were sought for this Project.............. 20 Annex 1: Country and Sector or Program Background............................................................ 21 Annex 2: Major Related Projects Financed by the Bank and/or other Agencies .................... 28 Annex 3: Results Framework and Monitoring ......................................................................... 30 Annex 4: Detailed Project Description..................................................................................... 41 Annex 5: Project Costs .............................................................................................................. 53 Annex 6: Implementation Arrangements ................................................................................. 54 Annex 7: Financial Management and Disbursement Arrangements ...................................... 58 Annex 8: Procurement Arrangements ...................................................................................... 70 Annex 9: Economic and Financial Analysis ............................................................................. 80 Annex 10: GEF Incremental Cost Analysis .............................................................................. 83 Annex 11: Sector Expenditure & Budget Review ..................................................................... 89 Annex 12: Safeguard Policy Issues ......................................................................................... 103 Annex 13: Project Governance Measures ..............................................................................
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