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The World Bank Document of The World Bank FOR OFFICIAL USE ONLY X Public Disclosure Authorized Report No. 3 3 8 7 -PH STAFF APPRAISAL REPORT Public Disclosure Authorized PHILIPPINES NATIONAL FISHERIES DEVELOPMENT PROJECT Public Disclosure Authorized April 19, 1982 Projects Department Public Disclosure Authorized East Asia and Pacific Regional Office 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. CURRENCYEQUIVALENTS Peso (P) 1.00 = US$0.123 P 8.10 = US$1.00 WEIGHTS AND MEASURES 1 meter (m) = 3.28 feet 1 kilometer (km) = 0.62 miles 1 sq km = 0.386 square miles 1 kilogram (kg) = 2.205 lb 1 ton = 1,000 kg = 2,205 lb 1 hectare (ha) = 10,000 sq m = 2.47 acres 4? ABBREVIATIONS ADB - Asian Development Bank MNR - Ministry of Natural Resources BFAR - Bureau of Fisheries and Aquatic Resources PFDA - Philippine Fisheries Development Authority FIDC - Fishery Industry Development Council FAO/CP - Food and Agriculture Organization/Cooperative Program DBP - Development Bank of the Philippines PU - Project Unit GOVER1,1MENTOF THE PHILIPPINES FISCAL YEAR January 1 - December 31 FOR OFFICIAL USE ONLY PHILIPPINES NATIONAL FISHERIES DEVELOPMENT PROJECT Table of Contents Page No. 1. PROJECT BACKGROUND . 1 A. Introduction . 1 B. Fisheries Sector . I C. Past Bank Lending for Fisheries Development. 8 2. FISHERIES AGENCIES OF THE MINISTRY OF NATURAL RESOURCES . 10 A. General . 10 B. Bureau of Fisheries and Aquatic Resources . .. 11 C. Philippine Fish Marketing Authority. 15 D. Fishery Industry Development Council .. 21 E. Proposed Reorganization .. 23 3. THE PROJECT . 24 A. Objectives . 24 B. Description . 24 C. Detailed Features. 25 D. Cost Estimates . 29 E. Financing . 31 F. Implementation Schedule. 31 G. Procurement . 33 H. Disbursements. 34 4. PROJECT IMPLEMENTATION AND EXECUTING AGENCIES . 35 A. Area Development Subproject . 35 B. Institutional Strengthening . 38 C. Lending Terms and Conditions . 38 D. Accounts, Audit, Monitoring and Evaluation . 38 5. PRODUCTION, MARKETING AND PRICES . 39 6. BENEFITS AND JUSTIFICATION . 42 7. RECOMMENDATIONS AND LOAN CONDITIONS . 45 This project was appraised in October 1980 by Messrs. Khoo, MacGregor, Kada (Bank), Gunawardena (FAO) and Mornement (Consultant). Messrs. MacGregor and Hindle updated the Appraisal Report. This document has a restricteddistribution 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. - ii - ANNEXES 1. Present Organization - Bureau of Fisheries and Aquatic Resources 2. Proposed Organization - Bureau of Fisheries and Aquatic Resources 3. Present Organization - Philippine Fisheries Development Authority 4. Proposed Organization - Philippine Fisheries Development Authority 5. Main Features of the Area Development Subproject 6. Tables 1. Area Development Subproject - Total Estimated Costs 2. Institutional Strengthening - Cost Estimates for FIDC 3. Institutional Strengthening - Cost Estimates for PFDA 4. Institutional Strengthening - Cost Estimates for BFAR 7. Area Development Subproject - Implementation Schedule 8. Area Development Subproject - Proposed Organization for the Corporation 9. Area Development Subproject - New Pump Boat Financial Analysis (Table 1) - New Pump Boat Cash Flow Summary (Table 2) 10. Area Development Subproject - Corporation Cash Flow and Financial Analysis 11. Estimated Disbursement Schedule 12. Additional Documents and Data in the Project File Charts Layout of Proposed Facilities at Cataingan - IBRD 15436 Layout of Proposed Facilities at Catbalogan - IBRD 15437 ayout of Proposed Facilities at Miaga - IBRD 15438 G.neral Layout of Proposed Site at Placer - IBRD 15439 Layout of Proposed Facilities at Placer - IBRD 15440 Layout of Proposed Facilities at San Jacinto - IBRD 15441 Layout of Proposed Facilities at Santo Nino - IBRD 15442 General Layout of Proposed Site at Bulan - IBRD 15443 Layout of Proposed Facilities at Bulan - IBRD 15444 Design of Pump Boat - IBRD 22247 IBRD 15435 PHILIPPINES NATIONAL FISHERIES DEVELOPMENT PROJECT 1. PROJECT BACKGROUND A. Introduction 1.01 The Government of the Philippines has requested the Bank-s assis- tance in financing a National Fisheries Development Project. The project forms part of a Government program to expand fish production and improve marketing efficiency mainly for the benefit of municipal fishermen, who belong to the lowest income group in the country. The project would also strengthen the operations of the Government-s fisheries agencies. Prepared by the FAO/CP, the project was appraised in October 1980 by Messrs. S.J. Khoo, J. Macgregor, F. Kada (Bank), H. Gunawardena (FAO), and P. Mornement (consultant). This report, based on the findings of the appraisal mission, has been updated by Messrs. Macgregor and Hindle. B. Fisheries Sector Resource Base 1.02 A nation of 7,107 islands, the Philippines with its long coastline of about 18,400 km and extensive marine and inland waters, is well-endowed for fisheries production. The extent and distribution of marine waters under its jurisdiction and inland waters suitable for fisheries production through fish ponds and fish pens are given in Table 1.1 below. Table 1.1: TYPE AND SIZE OF WATER BODIES Body of water Area (sq km) x Marine oceanic /a 1,216,570 81.48 Marine coastal 7H 266,000 17.81 Freshwater swamps 1,275 0.25) Brackishwater swamps 2,475 ) Freshwater fishponds 60 0.12) Brackishwater fishponds 1,760 ) Lakes, reservoirs and rivers 5,000 0.33 Total 1,493,140 100.00 /c /a Areas beyond the coastal waters which are generally 200 m deep. 7i Generally up to 200 m deep. 7Y Percentages do not add to 100 due to rounding. Source: Ministry of Natural Resources. -2- 1.03 Despite marine waters totaling about 1,482,600 sq km, fishing operations have been concentrated in coastal waters (266,000 sq km) because these are easily accessible and are the traditional fishing grounds of municipal fishermen (para. 1.07). However, the concentration of fishing in coastal waters has resulted in overexploitation of available resource6 in some of the areas. On the other hand, the larger areas beyond the coastal waters have been to some extent left untapped, signifying that the greater proportion of any significant expansion of marine fisheries production in the future would need to come from this area. The extent of the potential expansion is indicated by rough estimates of maximum sustainable yields ranging from 1.7-2.5 million tons a year. Comprehensive data on assessment of fish stocks and their sustainable levels of production are not available although some work on this is underway. It is essential that the Government push ahead with the collection of such data, beginning in areas which have reportedly been overfished. Systematic resource surveys are vital for proper management and conservation of the fisheries resource in the country and also for the fisheries industry. 1.04 Production from marine waters can also be expanded through mari- culture which is already being practiced on a limited scale. Its potential in production of mussels and other mollusces, crustaceans (shrimps) and seaweed is significant but largely unexploited. 1.05 Inland fisheries have considerable potential for expanding production. Of the approximately 10,600 sq km of areas suitable for fishponds and fish pens, only about 1,820 sq km have been developed for fishpond production (see Table 1.1 above). In addition to the large area available for development, significant increases in yields from the existing fishponds can be achieved through improved technology and other inputs. The extent of the increases that can be obtained is indicated by current yields ranging from the national average of less than 1 ton per ha/year to 6-10 tons for the technologically advanced ponds. Contribution to the Economy 1.06 Fisheries production in 1979 valued at some P 10.5 billion (US$1.3 billion) accounted for 4.8% of the GNP. Most of the fish is consumed locally as it is a staple and major source of animal protein in the Filipino diet. Per capita consumption of fish amounted to an estimated 34 kg in 1978 which accounted for about 60% of all the meat consumed. Tuna, shrimp, squid and other higher value species worth US$92 million and accounting for about 5% of total fisheries production were exported in 1979. Although exports comprising essentially high value species have been increasing significantly in recent years, they have been partly offset in value terms by imports of cheaper fish consisting mainly of canned sardine and mackeral. In terms of quantity, imports have been well in excess of exports during the 1970s, reflecting the rising domestic demand for fish. -3- 1.07 Some 500,000 artisanal or municipal fishermen, 42,000 commercial fishermen, and 194,000 people in aquaculture are engaged in fisheries production. An additional 55,000 persons are employed in fish processing. Municipal fishermen are officially defined as subsistence and other small scale producers who fish from boats of 3 gross tons or less or without boats in inland and coastal waters. Commercial fishermen are larger-scale producers using boats of more than 3 gross tons who are legally required to fish only in waters deeper than 13 m (7 fathoms) and beyond 3 km from the coast. Production 1.08 Increasing at an average annual rate of about 5% during the 1970s, fisheries production amounted to an estimated 1.6 million tons in 1979. Marine fisheries accounted for about 80%, inland fisheries 12%, and aquacul- ture the remaining 8% of total production during 1977-79. Table 1.2: FISHERIES PRODUCTION 1970 AND 1976-79 Marine Inland Aquaculture Total '000 tons % '000 tons % 000 tons % -000 tons % 1970 989 100 1976 1,127 81 153 11 113 8 1,393 100 1977 1,231 82 163 11 116 7 1,509 100 1978 1,282 81 180 11 118 8 1,580 100 1979 1,239 78 209 13 133 8 1,581 100 Source: Bureau of Fisheries and Aquatic Resources (BFAR).
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