Integrated Natural Resources and Environmental Management Project (RRP PHI 41220) Environmental Assessment and Review Framework October 2012 PHI: Integrated Natural Resources and Environmental Management Project Prepared by the Department of Environment and Natural Resources for the Asian Development Bank. CURRENCY EQUIVALENTS (as of 8 October 2012) Currency unit – peso/s (P) P1.00 = $0.024 $1.00 = P41.635 ABBREVIATIONS AP – Affected person ANR – Assisted Natural Regeneration ADB – Asian Development Bank ARMM – Autonomous Region of Muslim Mindanao BAWASA – Barangay Waterworks and Sanitation Association BOD – Biological Oxygen Demand CADC – Certificate of Ancestral Domain Claim CAR – Cordillera Administrative Region CNC – Certificate of Non-Coverage DENR – Department of Environment and Natural Resources EA – Executing Agency EARF – Environmental Assessment and Review Framework EIA – Environmental Impact Assessment EMB – Environmental Management Bureau EMP – Environmental Management Plan EMU – Environmental Management Unit DSS – decision support system GRM – Grievance Redress Mechanism GPP – Grievance Point Person (GPP) IA – Irrigators’ Association IEE – Initial Environmental Examination IEECs – Initial Environmental Examination Checklists IEERs – Initial Environmental Examination Reports INREMP – Integrated Natural Resources And Environmental Management Project IP – Indigenous People IPM – Integrated Pest Management M&E – monitoring and evaluation LGU – Local Government Unit NCIP – National Commission on Indigenous Peoples NIA – National Irrigation Administration NGAs – National Government Agencies NGOs – nongovernment organizations NWRB – National Water Resource Board PAMB – Projected Area Management Board PDRs – Project Description Reports PINREM-C – Provincial INREM Council PIU – project implementation unit PPMOs – Provincial Project Management Offices PSO – Project Support Unit REA – Rapid Environment Assessment RPCO – Regional Project Coordination Office (at the respective DENR Regional Office) SIEE – Summary Initial Environmental Examination SPS – Safeguard Policy Statement SPRSS – Summary Poverty Reduction and Social Strategy TE-IEC – technical extension and information, education and communication TOR – Terms of Reference TSS – Total Suspended Solids URB – Upper River Basin NOTE In this report, "$" refers to US dollars. This environmental assessment and review framework is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “terms of use” section of this website. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. TABLE OF CONTENTS I. INTRODUCTION ............................................................................................................1 II. DESCRIPTION OF THE PROJECT ...............................................................................1 III. ANTICIPATED ENVIRONMENTAL IMPACTS ...............................................................2 IV. GRIEVANCE REDRESS MECHANISM ......................................................................... 3 V. IEEs PREPARED FOR SAMPLE SUBPROJECTS ........................................................ 4 VI. ENVIRONMENTAL CRITERIA OF SUBPROJECT SELECTION ................................. 5 VII. INSTITUTIONAL ARRANGEMENTS AND RESPONSIBILITIES ................................... 6 VIII. PROCEDURES FOR ENVIRONMENTAL ASSESSMENT OF SUBPROJECTS ........... 7 IX. PUBLIC CONSULTATION AND INFORMATION DISCLOSURES ................................ 9 X. REVIEWS BY DENR AND ADB .....................................................................................9 XI. STAFFING REQUIREMENTS AND BUDGET ...............................................................9 ANNEX 1: BAUKO SUBPROJECT, CHICO RIVER BASIN, MOUNTAIN PROVINCE .......... 11 ANNEX 2: WAHIG-PAMACSALAN SUBPROJECT, SIERRA BULLONES, BOHOL ............ 24 ANNEX 3: MANUPALI-KITANGLAD SUBPROJECT, UPPER BUKIDNON RIVER BASIN, BUKIDNON ..............................................................................................37 ANNEX 4: BUBONG SUBPROJECT, LAKE LANAO RIVER BASIN, LANAO DEL SUR ......................................................................................................................49 ANNEX 5: RAPID ENVIRONMENTAL ASSESSMENT (REA) CHECKLIST ......................... 61 ANNEX 6: ENVIRONMENT CATEGORIZATION FORM ......................................................65 ANNEX 7: PROPOSED TERMS OF REFERENCE OF PROJECT ENVIRONMENTAL MANAGEMENT SPECIALIST ............................ 67 I. INTRODUCTION 1. The purpose of this report is: (i) to present a summary of the results of the environmental assessment for the Integrated Natural Resources and Environmental Management Project (the Project), and (ii) to provide the procedures for environmental assessment and review of component activities that are to be proposed in each subproject selected. This report was prepared in accordance with the 2009 ADB Safeguard Policy Statement (SPS) and the Government’s environmental rules and regulations as embodied in the “Revised Procedural Manual of DAO 2003-03”. It is developed based on the Initial Environmental Examination (IEE) reports of sample subprojects, and the review of the IEEs and EARFs of other projects and the 2005 Country Environmental Analysis for the Republic of the Philippines. 2. 23 watersheds or subprojects will be selected in the Project. In each river basin, the four INREMP components that may be applied include: (a) Establishment of river basin watershed management and investment plans; (b) Smallholder and institutional investments in conservation increased and URB productivity enhanced in the forestry, agriculture and rural sectors; (c) River basin and watershed management capacity and related governance mechanisms strengthened; and (d) Project Management and Support Services. 3. An IEE of a sample subproject per river basin was prepared to assess the impacts of these component activities. These four IEEs of sample subprojects (Bauko in Chico River Basin, Wahig-Pamacsalan in Wahig-Inabanga River Basin, Manupali-Kitanglad in Upper Bukidnon River Basin, and Bubong in Lake Lanao River Basin) also serve as a guide for the preparation of environmental compliance requirement for the rest of the prospective proposals in a given river basin, as identified by the proponent (Local Government Units (LGUs) or the private sector) in the course of project implementation. II. DESCRIPTION OF THE PROJECT 4. The Project impact will be improved condition of watersheds generating livelihood benefits in the four Upper River Basins (URBs). The Project outcome will be increased rural household incomes and Local Government Unit (LGU) revenues in selected watersheds in the 4 URBs. 5. The Project area comprises four river basins that are widely dispersed and have an aggregate area of over one million ha. These are: (i) Chico River Basin in the Cordillera Administrative Region (CAR) with an area of about 455,000 ha (40%); (ii) Wahig-Inabanga in Bohol, 63,000 ha (6%); (iii) Upper Bukidnon River Basin in Bukidnon, including some portion in Misamis Oriental, 480,000 ha (42%); and (iv) Lake Lanao River Basin in Lanao del Sur, 141,000 ha (12%). Spanning through nine provinces, 81 cities and municipalities, and 1,332 barangays, the river basins are home to some 2.7 million people, 73.6% of whom are indigenous peoples (IPs), and have a poverty incidence among population (as of 2011) that ranges from 25.17% in Chico to as high as 41% in Bohol. 6. Of the total aggregate area, 65% is classified as forest land while 35% is alienable and disposable (A&D) lands. The terrain is mostly steep to critical slope with 53% of the area having an average slope higher than 30%, 14% with a slope of 18%-30% and 33% with less than 18% slope. The elevation ranges from sea level in the coastal areas to as high as 2,900 meters above sea level at the head waters. Despite the unfavourable terrain, the dominant land use is agriculture, with 37% of the total area cultivated and planted to annual crops and another 4% planted to perennial crops. This is followed by forestry, with 30% of the area under tree cover, shrubs covering 18%, wooded grassland at 8% and the rest are grassland and built-up areas. 2 Out of the 30% forest cover, 54% is closed canopy forest, 44% open canopy and 2% plantations. It may be noted that almost one-third (29%) of the area planted to annual crops is located on slopes over 30%. 7. The Project interventions or major activities that may have potential for environmental impacts are forest protection, reforestation, assisted natural regeneration (ANR), and demonstration sites for sustainable forest management, agroforestry, commercial tree plantations under the URB field investment component, and rehabilitation/improvement of rural access infrastructure, communal irrigation schemes, level II potable water supply, under the URB livelihood enhancement component. 8. The Project is proposed to be implemented from 2013 to 2020 by the Department of Environment and Natural Resources (DENR) as the lead executing agency, with the participation of relevant LGUs, and community organizations within the river basins. The rural