PHILIPPINES COUNTRY ENVIRONMENTAL ANALYSIS 2008 PHILIPPINES © 2009 Asian Development Bank

COUNTRY ENVIRONMENTAL ANALYSIS 2008

Publication Stock No. RPT090189 ISBN 978-971-561-807-6

Cataloging-in-Publication Data

Asian Development Bank. Country Environmental Analysis 2008—Philippines. Mandaluyong City, Phil.: Asian Development Bank, 2008.

1. Environmental analysis. 2. Philippines. I. Asian Development Bank.

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List of Figures vi List of Tables vi List of Text Boxes vii Abbreviations viii Acknowledgments xii Executive Summary xiii Chapter 1: Introduction 1 Chapter 2: Background 3 Country Overview 3 Role of the environment and natural resources in the economy 8 Socioeconomic overview 8 Medium-Term Philippine Development Plan 10 Millennium Development Goals 11 Main Environmental Concerns 15 Forest resources 15 Agriculture resources 18 Fishery resources 18 Biodiversity resources 22 Water resources 28 Air quality 46 Land resources 52 Mining and mineral resources 53 Urban environment 54 Environmental spatial planning 56 Hazardous and solid wastes 57 Climate change 61 Renewable energy 62 Environmental emergencies 64 Regional environmental concerns 68 Regulatory and Institutional Framework 69 Policy and regulatory framework 69 Institutional framework 77 Donor agencies 93 iv Country Environmental Analysis 2008: Philippines

Chapter 3: Challenges and Opportunities 99 DENR Institutional Rebuilding 99 Insufficient government budget for ENR 99 Need for DENR restructuring to fulfill expanding mandate 101 Major capacity building requirement for better ENR regulation 104 Need for integrated and improved information and communication management system 106 Resolution of mandate overlaps and gaps 106 Passage of other important legislation 108 Improvement of the Environmental Impact Statement System 108 Incomplete Devolution of ENR Functions to LGUs 109 From Sector-Based to Integrated, Ecosystem-Based Planning and Management 111 Need for Increased Efforts in Forest Management and Biodiversity Conservation 112 Climate Change Mainstreaming in the Government Program 113 Need for Increased Financing for Environmental Projects 114 Need to Improve and Widen the Use of Market-Based Instruments 115 ENR Concerns and Poverty Reduction 117 Chapter 4: Strategic Priorities 121 Extensive Institutional Rebuilding and Strengthening of DENR 121 Better Management of ENR Data and Information 122 Restructuring and Refocusing of the Philippine Environmental Impact Statement System 123 Genuine Devolution and Decentralization of ENR Functions 123 Continued Application of Integrated Approach to Planning and Management 123 Adoption and Application of Spatial Development Plans 124 Increased Financing for Environmental Infrastructure Programs and Projects 124 Use of Market-Based Instruments to Promote ENR Programs and Projects 125 Integration of ENR Principles into Poverty Reduction Programs 125 Chapter 5: Implications for the Country Partnership Strategy 127 ADB’s Long‑Term Strategic Framework 127 Environmental Components of Key ADB Strategies for the Philippines 128 Philippine country partnership strategy 128 Government-ADB poverty partnership agreement 128 Philippine urban infrastructure road map 129 ADB’s environment policy 129 Contents v

Environmental Considerations in the Philippine Lending Portfolio 129 Current portfolio 130 Portfolio in CPS 2005–2007, COBP 2007–2008, and COBP 2009–2010 130 Strategic issues 131 Possible ADB Interventions 132 Mainstreaming of environment considerations in government policies and investment programs 132 Environment as a core area of operation 133 Strategic Environmental Evaluation of Proposed Pipeline Projects in COBP 2009–2010 and CPS 2011–2015 136 Summary of Strategic Environmental Evaluation of Proposed Pipeline Projects in COBP 2009–2010 and CPS 2011–2015 136 Appendixes 159 1 Water Quantity Scorecard for Major Rivers and Basins and Hot Spots Rating for Water Quantity 160 2 Major Environment and Natural Resources Laws and Regulations 162 3 Official Development Assistance to the Environment and Natural Resources Sector, as of November 2007 171 4 Senate and House Bills on Environment and Natural Resources Filed at the 14th Congress of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August 2007 (ADB Country Strategy and Program 2005–2007) 198 6 Summary of Results of the Consultative Meeting on the 2008 Philippine Country Environmental Analysis Report 202 7 Participants at the Consultative Meeting on the 2008 Philippine Country Environmental Analysis Report 215 References 223 vi Country Environmental Analysis 2008: Philippines

List of Figures 1 Land Classification, 2005 16 2 Forest Cover, 2003 17 3 Protected Areas, 2004 25 4 Annual Consumption of ODS and Alternatives, 2001–2006 47 5 CDM Projects with Letters of Approval, February 2008 63 6 CFC Consumption, 1995–2005 75 List of Tables 1 Country Economic Indicators 4 2 Country Poverty and Social Indicators 6 3 Value of Fish Production, by Subsector, 2003–2005 9 4 Philippines Millennium Development Goal Indicators 13 5 Country Environment Indicators 19 6 Level of Endemism and Status of Vertebrate Fauna in the Philippines 23 7 Number of Rare, Threatened, and Endangered Wildlife Species, 1996–2006 24 8 Classification of Water Bodies in the Philippines 29 9 Water Demand in Major Cities of the Philippines 30 10 Change in Dissolved Oxygen in Priority Rivers, 2003–2005 31 11 Groundwater Quality Scorecard 33 12 Water Quality Scorecard for Surface Water (Rivers, Lakes, Bays) 36 13 Sewerage Services in Metro Manila, 2001–2005 43 14 Sewerage and Sanitation Systems outside Metro Manila 44 15 Philippine, US-EPA, and WHO Ambient Air Quality Guidelines for Common Pollutants 46 16 Annual Mean Roadside TSP Levels in Major Cities and Urban Centers in the Philippines, 2003–2004 48 17 Total Mass Emissions in Metro Manila, 2005 51 18 Urbanization Forecast for the Philippines 56 19 Chemical Waste Generation and Trade 58 20 Strategic Environmental Evaluation of Proposed Pipeline Projects in COBP 2009–2010 and CPS 2011–2015 137 Contents vii

List of Text Boxes 1 Strategies for Potable Water in the Medium-Term Philippine Development Plan 2004–2010 45 2 Strategies for the Mining Sector in the Medium-Term Philippine Development Plan 2004–2010 55 3 Strategies for Hazardous Waste in the Medium-Term Philippine Development Plan 2004–2010 60 4 Strategies for Environmental Emergencies in the Medium-Term Philippine Development Plan 2004–2010 65 5 Policy Agenda of the Minerals Action Plan 66 6 Elements of Philippine Agenda 21 69 7 International and Regional Environmental Agreements 73 8 Bureaus, Attached Agencies, and Offices of the Department of Environment and Natural Resources 78 9 FY2008 Programs and Projects of the Department of Environment and Natural Resources 86 10 Nongovernment Organizations in Environmental Protection 91 11 Guiding Principles for the Rationalization Plan of the Department of Environment and Natural Resources 103 Abbreviations

ADB – Asian Development Bank AFMA – Agriculture and Fisheries Modernization Act (1997) (Republic Act 8435) APIS – Annual Poverty Indicators Survey AQMF – Air Quality Management Fund ARMM – Autonomous Region in Muslim Mindanao ASEAN – Association of Southeast Asian Nations BIMP-EAGA – Brunei Darussalam–Indonesia–Malaysia– Philippines East ASEAN Growth Area BOD – biochemical oxygen demand CAA – Clean Air Act (1999) (Republic Act 8749) CAC – command and control CARP – Comprehensive Agrarian Reform Program CDM – Clean Development Mechanism CENRO – community environment and natural resources officer CITES – Convention on International Trade of Endangered Species of Wild Fauna and Flora CLUP – comprehensive land‑use plan

CO2 – carbon dioxide COBP – country operations business plan CPS – country partnership strategy CTI – Coral Triangle Initiative CWA – Clean Water Act (2004) (Republic Act 9275) DA – Department of Agriculture DAO – Department of Environment and Natural Resources administrative order DAR – Department of Agrarian Reform DBM – Department of Budget and Management DBP – Development Bank of the Philippines DENR – Department of Environment and Natural Resources DILG – Department of Interior and Local Government DMC – developing member country DOE – Department of Energy DPWH – Department of Public Works and Highways Abbreviations ix

ECC – environmental compliance certificate EGF – environmental guarantee fund EIA – environmental impact assessment EIS – environmental impact statement EMB – Environmental Management Bureau ENR – environment and natural resources EO – executive order ESWMA – Ecological Solid Waste Management Act (2000) (Republic Act 9003) EU – European Union EUFS – environmental user fee system FAO – Food and Agriculture Organization FMB – Forest Management Bureau GDP – gross domestic product GEF – Global Environment Facility GHG – greenhouse gas GVA – gross value added ha – hectare ICRMP – Integrated Coastal Resources Management Project ICT – information and communication technology IEC – information, education, and communication IPAF – integrated protected area fund ISO – International Standards Organization IUCN – International Union for Conservation of Nature IWQMF – integrated water quality management framework IWRM – integrated water resources management IWRMF – integrated water resources management framework JBIC – Japan Bank for International Cooperation JICA – Japan International Cooperation Agency km2 – square kilometer LAMP II – Land Administration and Management Project, Phase II LBP – Land Bank of the Philippines LDBR – Laguna de Bay Region LGC – Local Government Code of the Philippines (1991) (Republic Act 7160) LGU – local government unit LLDA – Laguna Lake Development Authority LUCF – land-use change and forestry M&E – monitoring and evaluation Country Environmental Analysis 2008: Philippines

MBI – market-based instrument MDFO – Municipal Development Fund Office MDG – Millennium Development Goal MFO – major final output MGB – Mines and Geosciences Bureau MLD – million liters per day MOA – memorandum of agreement MT – metric ton MTPDP – Medium-Term Philippine Development Plan MTPIP – Medium-Term Public Investment Program MTSP – Manila Third Sewerage Project MW – megawatt MWSS – Metropolitan Waterworks and Sewerage System NAAQ – national ambient air quality NAMRIA – National Mapping and Resource Information Authority NBSAP – National Biodiversity Strategy and Action Plan NCIP – National Commission on Indigenous Peoples NCR – National Capital Region NEDA – National Economic and Development Authority NGO – nongovernment organization NIPAS – National Integrated Protected Areas System NRDC – National Resources Development Corporation NSCB – National Statistical Coordination Board NSSMP – National Sewerage and Septage Management Program NSWMC – National Solid Waste Management Commission NSWMF – National Solid Waste Management Fund NWQMF – National Water Quality Management Fund NWRB – National Water Resources Board ODA – official development assistance ODS – ozone‑depleting substances PAMB – Protected Area Management Board PAWB – Protected Areas and Wildlife Bureau PBE – Philippine Business for the Environment PCB – polychlorinated biphenyl PD – presidential decree PEENRA – Philippine Economic‑Environmental and Natural Resources Accounting PEISS – Philippine Environmental Impact Statement System Abbreviations xi

PEMSEA – Partnerships in Environmental Management for the Seas of East Asia PENRO – provincial environment and natural resources officer

PM10 – particulate matter RA – republic act RBCO – River Basin Control Office SBMA – Subic Bay Metropolitan Authority SFM – sustainable forest management SWAPP – Solid Waste Management Association of the Philippines TA – technical assistance tCO2e – tonnes of carbon dioxide equivalent TSP – total suspended particulates UNCED – United Nations Conference on Environment and Development UNDP – United Nations Development Programme UNEP – United Nations Environment Programme UNFCCC – United Nations Framework Convention on Climate Change US – United States USAID – United States Agency for International Development WQMA – water quality management area WWF – World Wide Fund for Nature Acknowledgments

his report was prepared by M. Nasimul Islam, environmental engineer, Agriculture, Environment and Natural Resource Division, T Southeast Asia Department (SERD), and Marissa V. David, staff consultant, with the guidance of Urooj S. Malik, division director. It was edited by Mary Ann Asico, consultant. Executive Summary

his update of the Asian Development Bank’s (ADB’s) country environmental analysis for the Philippines identifies priority constraints, T needs, and opportunities in the country’s environmental and natural resources (ENR) sectors, including those that have a direct bearing on poverty partnership agreements, and discusses strategic areas of intervention that will reduce the constraints and heighten the opportunities.

Role of the Environment and Natural Resources in the Economy

The ENR sectors (agriculture, marine resources, and forestry) depend primarily on the country’s land, water, and soil resources and contribute substantially to national gross domestic product (GDP). In 2006, these sectors generated 18.8% of GDP and employed about 36.6% of the total labor force of 32.4 million. Sustainable growth in these sectors depends on a healthy environment and natural resources, including clean water supply for industry and urban uses, and good air quality for the rapidly growing number of urban residents.

Medium-Term Philippine Development Plan

The socioeconomic development plan for the Philippines is laid out in the Medium-Term Philippine Development Plan (MTPDP) 2004–2010. The broad aims are job creation through agribusiness development, sustainable management of the environment, natural resources, and biodiversity, and decongestion of Metro Manila.

Millennium Development Goals

The Millennium Development Goals (MDGs) provide the framework for meeting the social commitments under the MTPDP and for identifying programs and projects for the Medium-Term Public Investment Program. xiv Country Environmental Analysis 2008: Philippines

Forest cover has increased, as have protected areas in the National Integrated Protected Areas System (NIPAS) and access to safe drinking water. But while there has been continuing progress in meeting environmental sustainability goals, much remains to be done. The lives of slum dwellers also have to undergo significant improvement. The number of informal set- tler families is rising and is expected to rise further with rural–urban migra- tion, population growth, and new household formation, given the inadequacy of formal housing programs. Security of land tenure and urban renewal are major concerns of the Government.

Main Environmental Concerns

Environmental issues with cumulative impact include loss of watershed integrity, inappropriate and unsustainable land use and agricultural practices in upland areas, degradation of forestland, and extensive road building; rapid population increase and rapid industrialization, causing increased congestion and pollution particularly in urban areas; environmental degradation of near‑shore coastal areas due to sedimentation from upstream sources; and overexploitation of fisheries and permanent loss of coastal ecosystems from changes in land use due to urbanization and industrialization, including aquaculture. Various ENR assessments of the Philippines place responsibility for the loss of biodiversity (terrestrial, coastal and marine, and freshwater) on these factors and on ineffective management, lack of awareness of biodiversity, and poor enforcement of regulations. Philippine biodiversity is globally significant. More than 65% of the described species are found here and new endemic species are discovered yearly. In addition, the Philippines has been identified as a biodiversity “hotspot,” that is, an area where the Earth’s biological wealth is most distinctive and rich but where losses could also be severe if conservation efforts do not succeed. The reforestation program of the Government cannot keep up with the rate of destruction of forest resources, with profound consequences for faunal biodiversity, aside from the downstream flooding and pollution caused. Almost all Philippine coral reefs are at risk from human activities. More than 70% of mangrove forests have been converted to aquaculture, logged, or reclaimed for other uses. Half of the sea-grass beds have been lost or severely degraded, and the rate of degradation is increasing. Rapid urbanization—the urban population grows by more than 2 million yearly, mostly in low‑density peri-urban areas outside the capital region—is constricting the provision of adequate infrastructure and services to deal with water supply and water quality problems. Water quality is worsening. Executive Summary xv

Domestic pollution, from the discharge of inadequately treated domestic sewage into surface waters, is the leading cause. Water availability per capita is the second lowest among all Southeast Asian countries. Sewerage and sanitation programs and investments are also woefully inadequate. Investments in urban sanitation are only 1.5% of investments in urban water supply. Some improvements have been made in air quality. Lead concentration has dropped since the complete phaseout of lead in gasoline throughout the country. The closure of several coal- and oil-fired thermal generating stations in the Metro Manila air-shed has greatly reduced sulfur dioxide concentrations. Ozone-depleting substances are consumed much less. But air quality in urban areas is poor or worsening for pollutants such as nitrogen dioxide

(NO2), sulfur dioxide (SO2), total suspended particulates (TSP), and particulate matter (PM10). Overall, the Philippines lags behind other Asian countries in air‑quality improvements. The country’s contribution to global warming is a key concern. The combined greenhouse-gas (GHG) emissions from the energy, industry, agriculture, and wastes sectors, and from the net uptake (sink) of GHGs from land-use change and forestry, were conservatively projected to increase by almost 94% between 1994 and 2008, to 195,091 kilotons of carbon dioxide

(CO2) equivalent.

Regulatory and Institutional Framework

The Government’s commitment to environmental protection and natural resource management is expressed through a comprehensive legal and regulatory regime for the sector. ENR management is mandated by the Philippine Environmental Policy and the Philippine Environment Code of 1977, the Philippine Strategy for Sustainable Development of 1989, and the National Action Plan for Sustainable Development of 1996. The Local Government Code of 1991 also has provisions with major impact on devolution and the implementation of ENR laws and regulations. Major ENR laws signed in the past 7 years include the Ecological Solid Waste Management Act of 2000, the Wildlife Resources Conservation and Protection Act of 2001, the Public Land Act of 2002, the Philippine Clean Water Act of 2004, and the Bio-fuels Act of 2006. The priorities of the Department of Environment and Natural Resources (DENR) relate to major government planning frameworks including the MTPDP and the MDGs. Other government departments and agencies that support the DENR in the implementation of ENR-related laws, regulations, policies, plans, and programs are the Departments of Agriculture, Health, xvi Country Environmental Analysis 2008: Philippines

Agrarian Reform, Energy, Interior and Local Government, Science and Technology, Tourism, and Public Works and Highways, and the National Economic and Development Authority (NEDA). Recognizing the importance of international cooperation in achieving its national development goals (MTPDP), the Philippines has signed international and regional environmental agreements on biodiversity, hazardous chemicals and wastes, ozone-depleting substances, persistent organic pollutants, and climate change.

Challenges, Opportunities, and Strategic Priorities

The main factors that affect the implementation of the various ENR laws and regulations by the DENR, and the corresponding strategic priorities that are consistent with ADB’s and the Government’s medium- to long-term strategic framework, are as follows.

DENR Restructuring and Capacity Building to Fulfill a Broader Mandate. Many ENR laws have been passed in recent years, but the DENR structure has yet to adapt to the expanded mandate. Overlaps and gaps in mandates also still have to be resolved. While DENR has opted to decentralize, devolve its functions (in phases), and reduce its direct role in ENR program and project implementation, its rationalization plan has not yet been approved and implemented. Devolution, despite having begun more than 17 years ago, is incomplete. Extensive institutional assessment and rebuilding are priorities. Skilled personnel, equipment, and other facilities should be provided to the local government units to enable them to perform the devolved functions.

Promulgation of Other Important Legislation. Some very important ENR laws need to be promulgated, strengthened, or updated. The Public Lands Act, for one, is 70 years old and has not been revised or amended. Major pending bills that should be pursued include the Philippine Environmental Protection Authority, Bio-organic Farming Promotion, Philippine Climate Change, Renewable Energy, Land Administration Reform, Water Resources Management, Sustainable Forest Management, and Free Patent acts.

Improvement of ENR Data and Information Management. With external support, DENR should integrate and upgrade its information system to be able to collect, analyze, coordinate, and manage data, make sound decisions based on the data, and deliver its mandates more efficiently and effectively. Executive Summary xvii

Restructuring and Refocusing of the Environmental Assessment System. The current environmental impact statement system is in need of restructuring and improvement, for use in planning. Various studies have recommended decentralizing environmental impact assessment, improving the quality of the assessment and simplifying the requirements, concentrating on environmentally critical projects and areas, moving toward sector and regional assessment, improving monitoring and enforcement, building institutional capacity (national and local), and subjecting proposed new laws and regulations in this regard to cost-benefit and impact study.

Institutional Mechanisms for Integrated Ecosystem-Based Planning and Management. To achieve environmentally sustainable development, the Philippines needs to shift from sector‑based to integrated ecosystem-based planning and management and develop an integrated sustainable management plan for priority ecosystems. The DENR could identify geographic priorities for investments and interventions in such areas as forest and biodiversity conservation, protection of water resources in river basins, and protection of environmental quality in air-sheds, as well as priority activities that will help in the attainment of key MDG and MTPDP targets in an integrated manner.

Forest Management and Biodiversity Conservation. Increases in forest cover are strongly correlated with greater public awareness of the value of forests. Comprehensive and specific strategies and action plans to be implemented by the DENR are outlined in the National Biodiversity Strategy and Action Plan of 2002 (NBSAP). DENR is expected to need substantial assistance (technical and financial) to meet the NBSAP objectives and targets.

Adoption and Application of Spatial Development Plans. To improve the use, allocation, and management of the country’s land and physical resources, spatial development plans linked to the national and regional physical framework plan will have to be prepared and implemented in all the local government units to guide ENR development decisions.

Integration of Climate Change into Government Programs. The country ranks eighth globally in the number of Clean Development Mechanism (CDM) projects registered, yet efforts to adapt to and mitigate climate change have yet to become part of major government policies, programs, and projects. xviii Country Environmental Analysis 2008: Philippines

ENR Funding. A number of ENR laws—among them, the Clean Air Act of 1999, the Ecological Solid Waste Management Act of 2000, and the Clean Water Act of 2004—have been approved in the past 10 years, but appropriate funds for their implementation have not yet been secured. Until its regular budget is substantially increased, the DENR should lay out a workable structure, with complete guidelines and procedures, for making the various earmarked environmental funds of the Government (such as the Air Quality Management, National Solid Waste Management, National Water Quality Management, Integrated Protected Area, and Wildlife Management funds) operational. The Government should also promote private sector interest in ENR projects, besides pursuing other sustainable sources of funding.

Use of Market-Based Instruments to Promote ENR Programs and Projects. The formulation and implementation of policies for MBIs has been hindered by regulators’ perception of a concomitant loss of control or greater unpredictability of environmental outcomes, legislative restrictions, insufficient evidence of effectiveness of past MBI use, and lack of information for MBI portfolio management. But there have been successes, especially in waste minimization, deposit refund and environmental guarantee fund establishment, environmental management systems, and the application of environmental user fees. Future project interventions should maximize the use of MBIs for environmental sustainability and cost‑effective economic growth.

Integration of ENR Issues into Poverty Reduction Programs. Environmental problems hit the poor hardest and are a major cause of poverty and vulnerability. Better environmental management can enhance the livelihood opportunities and income security of people living in poverty. A better understanding of environment-poverty links can lead to informed and effective local, national, and global policies for fighting both poverty and environmental problems.

Possible ADB Interventions ADB interventions in the Philippines will intersect with its Strategy 2020 and address the ENR priorities expressed in national development plans and programs.

Incorporating Environmental Considerations into Development. Together, ADB and the Government should draft policies and procedures that will fully integrate environmental considerations into the Government’s development policies, programs, and projects. The Government should receive continued support in harmonizing its ENR and climate change laws Executive Summary xix and policies, resolving institutional conflicts and gaps, strengthening institutional capacity, and removing constraints on ENR planning, implementation, and enforcement.

Environment as a Core Area of Operation. ADB intends to promote and invest in sustainable environmental management on a larger scale, while capitalizing on its operational strengths, such as infrastructure development and finance, through programs and projects in these areas:

• Infrastructure and climate change. To increase the supply of clean water, protect biological diversity, and help sequester atmospheric carbon dioxide to offset GHG emissions, ADB will nudge the Philippine economy onto low‑carbon growth paths, “climate‑proof ” projects, and support the sustainable management of forest and natural resources. Assistance will be provided to help prevent the loss of forest cover, institute integrated river basin management, and develop irrigation, agriculture, agribusiness, and rural infrastructure, with emphasis on security of land tenure and the progress of upland and poor communities. Projects must not adversely affect forest capital and biodiversity resources. They will incorporate economic instruments (payments for environmental services, CDM, etc.) that take into account biological diversity and climate change concerns (through global funds like the Global Environment Facility and regional initiatives like the Coral Triangle Initiative) and environment-poverty links. ADB will assist the Government in implementing its water resource and water quality management framework. Investments in water supply and sanitation infrastructure will fully support the Clean Water Act and the MDGs. • Livable cities. ADB will help reduce the country’s carbon footprint and assist municipalities in reducing air and water pollution, introducing cleaner modes of transport, improving solid waste management, and reducing urban waste. Lessons learned from investments in major cities will be applied in secondary cities. These interventions will support ADB’s Strategy 2020 and help create a healthier environment for the people (an MTPDP objective) and ensure environmental sustainability (an MDG). • Complementary actions. With ADB’s help, environmental concerns will be built into Philippine policies and investment programs, and national and local ENR institutions will acquire stronger regulatory and enforcement capacity. The effective implementation of environmental safeguards will continue to be emphasized, and support for regional cooperation in ENR management will be sustained. xx Country Environmental Analysis 2008: Philippines

Interventions will incorporate economic instruments and policies (e.g., waste minimization, pollution prevention, environmental management, MBIs, public disclosure systems) and environment‑poverty links into development. Spatial planning, environmental and natural resource data and information management, and environmental capacity building will all receive ADB technical assistance and project support.

With a country partnership strategy for the Philippines (2011–2015) and an updated MTPDP on hand in 2011, ADB and the Government will continue to work together to develop other projects and technical assistance that respond to the environmental concerns, challenges, opportunities, and priorities identified in this analysis. Chapter 1 Introduction

his document updates the country environmental analysis prepared by the Asian Development Bank (ADB) for the Philippines in 2004. T An update is called for in view of ADB’s intention to return to a 5-year planning cycle for its country partnership strategy (CPS). The country strategy and program (CSP) 2005–2007 covered only 3 years because of the economic uncertainties foreseen in 2005 when it was prepared (ADB 2007d). A country operations business plan (COBP) for 2007–2008, which extended the CSP by 1 year, was agreed on between ADB and the Government. COBP 2009–2010 will ease the transition to the CPS 2011–2015. The CPS will be in line with the next Medium‑Term Philippine Development Plan (MTPDP). This 2008 report provides the information needed for informed decisions on environmental constraints, needs, and opportunities, including those that impinge on poverty partnership agreements. The focus is on adding value to development initiatives by reducing the constraints and exploring the opportunities. Current environment and natural resources (ENR) issues in the Philippines are discussed, as are the institutional, policy, and regulatory framework for the ENR sectors; the challenges and opportunities for improving the country’s environmental situation that the framework provides; the strategic priorities; and possible ADB assistance in implementing these strategic priorities.

Chapter 2 Background

Country Overview

he Philippines has over 7,000 islands, about 300,000 square kilometers (km2) in total area. With 2.2 million km2 of contiguous ter- T ritorial waters and exclusive economic zone (almost 90% of the total area), the Philippines is a leading archipelagic country in Southeast Asia. Geography, terrain, and climate determine human settlement patterns, socioeconomic opportunities and constraints, and their intricate relationship with ENR conditions. The climate is tropical marine and monsoonal, with a dry season from January to June and a wet season from July to December. Annual rainfall varies widely across the country in amount (1,000–4,000 mil- limeters) and distribution (from pronounced dry and wet seasons to more or less even rainfall). There are 421 river basins, 41–25,469 km2 in area. The rivers in these basins are short and steep, running very fast from the source to narrow coastal plains. Heavy rainfall in the wet season causes many of these rivers to overflow. The Philippines is vulnerable to natural disasters, primarily volcanic eruptions and typhoons. Twenty‑two volcanoes are active, and there have been several destructive eruptions in recent times. In addition, about 20–30 typhoons hit the country yearly, between June and November. These natural disasters damage crops and properties; they also take lives. The Philippines is the world’s 12th‑most‑populous country (World Bank 2007c), with 88.6 million people (NSO 2008), and the 39th‑largest economy (see Table 1), with a gross domestic product (GDP) of over $145 billion (2007) (World Bank 2007b). By 2010, the population is expected to be 94.0 million, and by 2040, 141.6 million. The population grew by an average of 2.3% from 1990 to 2000 (see Table 2), the fastest rate in East Asia, before decelerating to 2.0% in 2007 and a projected 0.92% by 2040 (NSCB website). Population increase has severely strained access to basic social services, energy, drinking water, sanitation, and education, and considerably affected economic growth. Country Environmental Analysis 2008: Philippines 7.2 5.1 6.6 8.7 2.8 9.0 (0.2) (5.7) 15.3 20.9 17.1 17.1 continued 2007 1,626.0 4.4 3.3 3.7 5.4 3.1 9.5 (5.2) (0.5) 18.1 23.1 14.1 19.3 969.3 2002 3.0 3.7 0.9 4.3 6.1 6.8 (4.0) (1.0) 19.4 21.1 15.3 19.3 916.7 2001 4.4 3.4 4.9 4.4 4.4 4.6 5.1 (4.1) 19.9 27.2 15.6 19.6 954.8 2000 3.4 6.5 0.9 4.0 6.7 6.5 (3.8) 17.8 26.1 19.3 16.1 19.8 991.9 1999 3.5 9.7 7.4 0.0 (0.6) (6.4) (2.1) (1.9) 19.3 21.6 17.4 19.2 867.0 1998 (current and market prices) and market (current (% of GDP) (annual % change) Country Indicators Economic Agriculture Industry Services GDP per capita ($, current) GDP per capita ($, Item Income and Growth prices) in constant (%, GDP growth Saving and Investment (% of GNP) investment domestic Gross savings domestic Gross Money and Inflation priceConsumer index Total liquidity (M3) Total Government Finance Revenue and grants and onlending Expenditure Overall fiscal surplus (deficit) Balance of Payments trade Merchandise balance (% of GDP) Table 1: Table Chapter 2: Background 5

4.0 6.9 29.7 18.2 41.81 17.2 46.15 88.71 Economic (2006) (2006) 2007 6,648.2 33,751 4.7 5.4 6.2 10.1 69.1 21.1 51.6 80.4 ); ); Bureau of the Treasury 2002 h 4,022.7 16,179 1.8 4.6 (4.5) 72.7 21.2 51.0 78.6 (16.2) www.bsp.gov.p 2001 3,673.7 ( 15,658 8.4 9.0 4.2 14.5 69.5 14.3 44.2 78.4 2000 15,024 3,308.3 ; ; National Statistical Coordination Board (NSCB), Key Statistical Indicators 9.5 4.4 (0.9) 16.0 68.6 14.1 39.1 76.8 1999 2,976.9 15,107 2.4 3.1 2006 Socioeconomic Report 16.9 73.4 14.0 40.9 75.2 (18.8) 1998 2,665.1 10,806 ); ); Bangko Sentral ng Pilipinas, h (www.hdrstats.undp.org). www.nscb.gov.p

(

Human Development Reports Development Human ), ), h continued Item account balance (% of GDP) Current exportMerchandise ($) growth (annual % change) importMerchandise ($) growth (annual % change) External Payments reserves official Gross $ million) (including gold, imports and of goods year’s of current Months services External debt service (% of exports and of goods services) external debt (% of GDP) Total Memorandum Items ₱ billion) prices, GDP (current average) Exchange rate (₱/$, (million) Population www.treasury.gov.p GDP = gross domestic product, GNP = gross national product, M3 = money supply. product, national GNP = gross product, domestic GDP = gross Sources: National Economic and Development Authority (NEDA), and Financial Data on the Philippines ( Table 1 Table Country Environmental Analysis 2008: Philippines

Table 2: Country Poverty and Social Indicators

Item 1990 1995 2000 Latest Year Population Indicators Total population 60.7 68.6 76.5 88.7 (millions) (2007) Annual population 2.4 2.3 2.4 2.0 growth rate (2007) (% change) Social Indicators Total fertility rate 4.1 3.8 3.2 3.2 (births per woman) (2002) (2006) Maternal mortality 209 180 172 162 rate (per 100,000 live (1998) (2006) births) Infant mortality rate 57 49 35 24 (below 1 year, per (1998) (2006) 1,000 live births) Life expectancy at birth (years) Female 68.8 70.1 72.5 73.6 (2003) (2006) Male 63.6 64.8 67.2 69.2 (2003) (2006) Adult literacy (%) Female 91.2 93.8 94.8 93.7 (2006) Male 92.2 93.2 95.1 93.1 (2006) Primary school gross 111.8 114.0 113.4 107.4 enrollment (%) (1992–1993) (1995–1996) (2000–2001) (2004) Secondary school 76.0 77.1 79.5 79.5 gross enrollment (%) (1992–1993) (1995–1996) (2000–2001) (2001) Child malnutrition 34.5 30.8 30.6 24.6 (below age 5, %) (1996) (2001) (2006) Population below — — 14.6 poverty line (2001) (international, %)

continued Chapter 2: Background 7

Table 2 continued Item 1990 1995 2000 Latest Year Families with access 73.7 76.9 78.5 82.0 to safe water (%) (1991) (1997) (2000) (2004) Population with access 74.0 — 83.0 80.0 to sanitation (%) (2000) (2004) Public education 2.9 3.3 2.7 expenditure (2002) (% of GDP) Human Development Index 0.713 0.731 0.751 0.771 Rank 68 67 85 90 (2001) (2005) Gender-Related Development Index — 0.661 0.748 Rank — 82 (2001) 66 Poverty Indicators Poverty incidence 39.9 28.1 28.4 32.9 (1991) (1997) (2006) Percent of poor to 45.3 33.0 34.0 33.0 total population (1991) (1997) (2006) Poverty gap 13.0 10.0 10.7 (1991) (1997) Poverty Severity Index — 3.5 3.4 3.4 (%) (1997) (2003) Inequality (Gini 0.4680 0.4881 0.4814 0.4410 coefficient) (1991) (1997) (2006) Human Poverty Index — 17.7 14.8 (2001) Rank — 19 28 — = no data, GDP = gross domestic product. Source: National Statistics Office, NSCB, Human Development Reports (http://hdrstats.undp .org); US Energy Information Administration, Philippine Country Analysis Brief (www.eia.doe.gov); Asian Development Bank (adb.org), Key Indicators for Asia and Pacific, 2008. Country Environmental Analysis 2008: Philippines

In 2006, the Philippines ranked 90th of 177 countries on the Human Development Index (UNDP 2007); in 2005, it ranked 84th. In 2006, 32.9% of the total population lived below the annual poverty threshold of $294, about 3% more than in 2003. Poverty is about 25% in the urban areas but is most acute and widespread in the rural areas, averaging about 54%.

Role of the environment and natural resources in the economy

Socioeconomic overview

Rural sector The primary sector (agriculture, fisheries, and forestry) depends on the environment and natural resources (land, water, and soils) and contributes substantially to national GDP. In 2006, the sector generated $12.9 billion (at constant 1985 prices), 18.8% of GDP ($68.6 billion at constant 1985 prices) (NSCB 2007). Although the sector grew 24.6% faster between 2000 and 2006, it contributed 1.0% less to GDP than its share of 19.8% in 2000 because of larger increases in GDP contribution from other major sectors (industry, including mining, and services). Philippine agriculture grew by 4.1% in 2006, slightly below the 4.2% MTPDP target. Agribusiness lands were not developed fast enough to meet MTPDP targets. Jobs in the sector decreased slightly (by less than 1%). Moreover, retail prices continued to soar even with increased production because of infrastructure and marketing constraints. In 2006, agriculture, fisheries, and forestry combined produced $12.9 billion (in gross value added [GVA], at constant 1985 prices (NSCB 2007). Agricultural crops contributed 49.9%, livestock and poultry 22.3%, agricultural activities and services 4.4%, fisheries 22.9%, and forestry 0.6%. By the end of 2006, agriculture, hunting, forestry, and fishing activities employed about 12 million, roughly 36.6% of the total labor force of 32.4 million. Municipal fisheries generated 68% of the total employment in fisheries, followed by aquaculture (26%) and commercial fisheries (6%). In 2006, fisheries contributed 4.3% (at constant 1985 prices) of GDP. That same year, the GVA of fisheries was $2,946 million (at constant 1985 prices), 22.9% of the overall GVA of agriculture and the largest share next to that of agricultural crops (BFAR 2006). The Department of Agriculture (DA) places aquaculture among Philippine agriculture’s main drivers, with a 10.4% growth rate in 2006. That year, aquaculture accounted for 47.5% of the total fishery production of 4.41 million metric tons (NSCB 2007), compared with 45.5% of 4.2 million

National Statistical Coordination Board (NSCB) website, www.nscb.gov.ph. Chapter 2: Background 9

Table 3: Value of Fish Production, by Subsector, 2003–2005

2003 2004 2005 Subsector ($ million, at current prices) Total 2,216.0 2,478.2 2,651.1 Commercial 776.5 863.0 856.1 Municipal 751.8 815.2 904.6 Marine 685.6 734.8 820.7 Inland 66.2 80.5 83.9 Aquaculture 687.7 800.0 890.4

Source: NSCB, 2006 Selected Statistics on Agriculture. metric tons in 2005 (BFAR 2006). Income from aquaculture in 2006 was $3 billion (at constant 1985 prices). Aquaculture farms are found mostly on the islands of Mindanao and Luzon, and have their highest production share in region 4B in Luzon and the Autonomous Region in Muslim Mindanao (ARMM) in Mindanao. Table 3 shows the value of fish production in the commercial, marine, inland, and aquaculture subsectors. About 44,000 families derive their incomes mainly from forestry and hunting. About 23% of these families are in the $545–$726 income class, and only 7% have incomes of $1,453–$1,816 (NSO 2005). Forest product exports in 2005 amounted to $33 million, free on board (FOB), about 3% less than in 2004. This is about 1.4% of the value of Philippine exports in 2005, which was $41.3 billion, FOB. Between 1988 and 1994, the Philippines lost $2.6 billion (at constant 1985 prices) in forest resources to harvesting and other logging activities, $1.1 billion to the conversion of forestland to non-forest uses, $23.6 million to forest fires, and $317 billion to the natural death of trees (NSCB n.d.[b]). Poverty is most intense among those working in agriculture. Agriculture‑dependent households account for two thirds of the rural poor. The sector continues to suffer from inadequate research in high‑value products, poor market information, and weak institutions. Poor rural infrastructure raises production and transportation costs and discourages the private sector from participating in agribusiness ventures. ENR degradation heightens rural poverty, inequality, loss of livelihood, and the unsustainability of economic ventures. It severely affects the rural population that depends on upland agriculture and subsistence fishing along coastal areas. On the other hand, high population growth, lack of secure access to land and to capital and social services, poor governance, unemployment,

Region 4B is composed of the islands of Occidental Mindoro, Oriental Mindoro, Marinduque, Romblon, and Palawan, and is also called the MIMAROPA region. 10 Country Environmental Analysis 2008: Philippines inequity, and slow economic growth all contribute to high rural poverty and concomitant degradation of the environment.

Urban and Industrial Sectors The relationship between ENR and the urban and industrial sectors is an often‑overlooked but important one that affects ENR use and management. The Philippines is urbanizing at 5% or more yearly, and the industrial sector (mining, manufacturing, trade, construction, and energy generation) collec- tively grew by an average of 3.6% (at constant 1985 prices) between 1992 and 2006. Industrial sector GDP during the same period grew by 67.7%, from $13.3 billion to $22.3 billion (at constant 1985 prices). The urban and industrial sectors are important components of socioeconomic development, but their environmental impact can also be considerable. Most urban growth in the Philippines is occurring in low‑density peri- urban areas (particularly outside the capital city of Metro Manila, in Cavite and Laguna provinces, and in major secondary cities). The three dominant urban centers—Metro Manila, Metro Cebu, and Davao—each have a population of more than 1 million. Urban areas are the centers of economic growth. Sustainable growth in the urban and industrial sectors rests on a healthy ENR, including clean water and better air quality for industry and for the growing number of urban residents.

Energy and Transport Sector The energy and transport sector has significant impact on the ENR, mostly from air pollution. According to the Environmental Management Bureau (EMB) of the Department of Environment and Natural Resources (DENR), much air pollution comes from mobile sources. Between 2000 and 2005, records from the Land Transportation Office (LTO) showed that motor vehicle registration increased by 6.5% on average yearly. This continuing increase, plus the inadequacy of the mass transit system and poor maintenance of roads and traffic facilities, increases air pollution. According to an ADB study (ADB 2002a), until the Clean Air Act (CAA) and its implementing rules and regulations were passed in 1999, setting emission standards for different classes of vehicles, the control of pollution from mobile sources received low priority in environmental regulation. All new vehicles must now comply with these standards for registration. Air pollution monitoring results in Metro Manila and other major cities have improved as a result.

Medium-Term Philippine Development Plan

MTPDP 2004–2010 integrates the planning and policy approaches of the Government with the basic objective of building prosperity for the greatest number of Filipinos. With the President’s 10-Point Agenda, the MTPDP Chapter 2: Background 11 seeks to create 6–10 million jobs by developing 1–2 million hectares (ha) of land for agribusiness; improve ENR and biodiversity through sustainable management; and decentralize and decongest Metro Manila. Five major objectives, consistent with the 10-Point Agenda of the President, were identified for the ENR sector: sustainable and more productive use of natural resources, responsible mining, protection of vulnerable and ecologically fragile areas, a healthier environment, and disaster mitigation. The goals, strategies, action plans, and targets for attaining the ENR objectives in potable water supply, mining, hazardous waste disposal, and disaster mitigation are in Boxes 1–4. The Medium-Term Public Investment Program (MTPIP) 2006–2010 translates the MTPDP into a rolling core set of priority programs and projects to be implemented by the national Government in the medium term. The MTPIP is an instrument for monitoring government targets, commitments, and resources over the plan period, and a critical input to the annual budget. It also sets the tone for resource programming by the Government’s Investment Coordination Committee. MTPIP 2006–2010 investments total about $156.6 billion (at constant 1985 prices), $10.3 billion (6.5%) of this for ENR plans and programs to help attain the five objectives mentioned above. The national Government will provide $5.1 billion (49.9%), government–owned and controlled corporations and government financial institutions $2.1 billion (20%), local government units (LGUs) $1.7 million (0.1%), the private sector $1.2 billion (12%), and international agencies (through loans and grants) and other sources, $1.9 billion (18%).

Millennium Development Goals

The Millennium Development Goals (MDGs) set the framework for the MTPDP’s social commitments and the MTPIP’s programs and projects. According to its midterm progress report in 2007, the Philippines has made considerable headway in achieving the MDGs, particularly the targets for poverty reduction, nutrition, gender equality, child mortality reduction, the fight against HIV/AIDS and malaria as well as other diseases, and access to safe drinking water and sanitary toilet facilities (NEDA 2007b). Poverty incidence among households and the population had declined by about 1.2% each year from 1991 (the baseline year) to 2006 (see Table 2). In 2006, poverty incidence was 26.9% among households (versus 39.9% in 1991) and 32.9% for the general population (45.3% in 1991). At these rates of decline, the 2015 MDG targets for poverty incidence are likely to be met. But poverty incidence has regional variations. Household poverty incidence is below the national average of 26.9% (2006) in five regions—the National Capital Region (NCR) and regions 1, 2, 3, and 4A—but above the national average 12 Country Environmental Analysis 2008: Philippines in the other 12 regions, with Caraga (region 13) at 45.5%, ARMM at 55.3%, and region 4B at 43.7% (Social Watch Philippines 2007). Subsistence incidence rates also vary widely between regions. In 2006, the rates exceeded the national average of 14.6% in 12 of the 17 regions. Only four regions—the NCR (1.2%), region 2 (8.9%), region 3 (4.6%), and region 4A (5.7%)—had single-digit rates (Social Watch Philippines 2007). More attention and better development assistance must be given to regions where poverty incidence exceeds the national average. MDG7 (environmental sustainability) has three major targets: implementing national strategies for sustainable development by 2005, and reversing the loss of environmental resources by 2015; halving by 2015 the proportion of people with no access to safe drinking water and basic sanitation or those who cannot afford it; and significantly improving the lives of at least 100 million slum dwellers by 2020. (Table 4 is a summary of the MDG7 indicators for the country.) For the sustainable development target, the 2007 MDG progress report showed an increase of about 11% in forest cover between 1998 (6.5 million ha) and 2004 (7.2 million ha). Protected areas under the National Integrated Protected Areas System (NIPAS) increased in number from 83 in 2000 to 103 in 2006. There was also a significant increase in confiscated flora (from 58 pieces in 2002 to 600 in 2005) and confiscated fauna (from 175 heads in 2002 to 2,944 in 2004). But pollution persists in the major urban centers. The volume of air pollutants is projected to increase further as industrial activity increases and vehicles, many of them smoke‑belching public‑utility vehicles, clog the streets. Solid waste management will also continue to be a problem in most urban centers. Access to safe drinking water increased slightly, from 80% in 2002 to 80.2% in 2004 (NSO 2006). The proportion was lower for those in the lowest 30% income group (65.4%) than for families in the highest 70% income group (86.5%). According to the Annual Poverty Indicators Survey (APIS) in 2004, the MDG target of 83.8% for access to sanitary toilet facilities had been achieved. These figures may, however, need to be validated. For slum dwellers, the Government has adopted the dual strategy of securing tenure for settlers through the Community Mortgage Program and setting up the Social Housing Finance Corporation for the bottom 30% of the population. It has also formed partnerships with private organizations to ease the plight of informal settlers. From 2001 to 2006, the national Government and the private sector provided security of tenure or shelter to

The MTPDP 2004–2010 targets (92%–96% for safe drinking water and 86%–91% for sanitary toilet facilities) are higher than the 2015 MDG targets. Chapter 2: Background 13 — 681 52.6 12.7 2006 continued — — 12.7 2005 1,050 — 52.8 12.1 2004 1,516 23.9 12.2 42.1 2003 1,422 — 23.9 10.4 2002 1,644 — — 11.2 2001 2,049 — 12.1 42.1 2000 2,905 — — 11.7 1999 2,088 — — 10.8 1998 2,130 9.6 — 18.0 1997 2,747 9.6 — 18.3 1996 3,039 9.3 — 18.6 1995 3,382 9.2 — 19.0 1994 3,959 8.5 — 19.3 1993 3,779 8.5 — 19.7 1992 3,520 8.5 — 20.1 1991 2,023 8.5 20.5 66.2 1990 2,981 Implement national strategies by 2015 resources to reverse loss of environmental for sustainable development by 2005,

Philippines Millennium Development Goal Indicators Goal Development Millennium Philippines Ensure Environmental Sustainability Environmental Ensure Proportion of Proportion covered land area (%) by forest of Proportion protected area to maintain biological diversity to land (%) area of Consumption ozone-depleting substances (ODP tons) of Proportion households using solid fuels (%) (for cooking) Target 10: Target Table 4: Table 7: Goal 14 Country Environmental Analysis 2008: Philippines — — — 2006

— — — 2005 — 80.2 86.2 2004 — — — 2003 — 80.0 86.1 2002 — — — 2001 81.2 79.1 79.3 2000 — 81.4 85.8 1999 — — 78.1 1998 — — — 1997 — — — 1996 (http://www.nscb.gov.ph/stats/mdg/goal7.asp). — — — 1995 — — — 1994 — — — 1993 — — — 1992 — — — 1991 91.0 67.6 73 1990 Philippine Millennium Development Goals Indicators Philippine Millennium Development it by 2015 Halve the proportion of people with no access to safe drinking water and basic sanitation or those who cannot afford Achieve a significant in the lives of at least 100 million improvement slum dwellers by 2020

continued Proportion of Proportion households with access to safe water supply (%) of Proportion households with sanitary toilet facility (%) of Proportion households with access to secure (owned tenure (%) and rented) Target 11: Target Target 12: Target Table 4 Table ODP = ozone-depleting potential. — = no data, NSCB, Sources: Chapter 2: Background 15 more than 710,000 households. Foreign-assisted projects that are improving the plight of slum dwellers include the $52.4 million Development of Poor Urban Communities Sector Project with ADB funding; the $1.89 million World Bank and Japan Social Development Fund–assisted Upscaling Urban Poor Community Renewal Scheme Project being implemented by a nongovernment organization (NGO) in the cities of San Fernando, Naga, Quezon, Mandaue, and Iligan; and the Strategic Private Sector Partnerships for Urban Poverty Reduction Program, in which ADB is collaborating with the Philippine Business for Social Progress (NEDA 2007b). Much remains to be done to meet environmental sustainability goals. According to the MDG progress report, to meet the 2015 target for MDG7 the Philippines has to update environmental data; support environmental laws; prevent or mitigate disasters and minimize the damage they cause; continue addressing poverty and population problems; build the environmental management capacity of LGUs and other key partners; integrate sustainable development into the programs and performance assessment of government departments, and the operations of LGUs and business entities; set national targets for environmental sustainability; monitor groundwater; provide safe, low-cost drinking water; conserve water; build low-cost sanitation facilities; intensify efforts to meet the housing needs of informal settlers; expand the urban asset reform program; promote sustainable sources of housing finance; expand private participation in socialized housing finance and construction; rationalize coordination for housing and urban development; and strengthen housing regulation.

Main Environmental Concerns

Forest Resources

The country’s total land area of about 30 million ha is made up of classified forestland (15 million ha), unclassified forestland (0.7 million ha), and alienable and disposable land (14.2 million ha) (FMB 2006). Classified forestland, exclusively for forestland use, comprises 10.1 million ha (67%) of established timberland and 3.2 million ha (21.4%) of established forest reserves, as well as national parks, game refuges and bird sanctuaries, and wilderness areas (1.3 million ha), military and naval reservations (0.13 million ha), civil reservations (0.17 million ha), and fishponds (0.1 million ha). Unclassified forestland is for still‑unspecified forest use. Alienable and disposable land is suitable for agricultural, residential, commercial, industrial, institutional, recreational and other non-forest uses. Figure 1 shows the various types of land in the Philippines and their share of the total land area. 16 Country Environmental Analysis 2008: Philippines

Figure 1: Land Classification, 2005 (total area: 30 million hectares)

NP/GRBS/WA Military and Naval 4.48% Reservations 0.42%

Established Timberland 33.64%

Certified A&D 47.36%

Civil Reservations 0.55% Unclassified 2.51% Established Forest Fishponds Reserves 0.30% 10.74%

A&D = alienable and disposable land; NP/GRBS/WA = national parks, game refuges and bird sanctuaries, and wilderness areas. Source: Philippine Forestry Statistics, 2005.

Forest cover (Figure 2) declined from about 21 million ha, or 70% of the total land area, in 1900 to only 5.4 million ha, or 18.3%, by 1988. But recent official estimates, based on satellite images of the country in 2002, show that forest cover had increased to 7.2 million ha, or 24% of the land area—2.5 million ha of closed‑canopy forest, 4.0 million ha of open‑canopy forest, 247,362 ha of mangroves, and 329,578 ha of plantations. The Forest Management Bureau (FMB) says that 91% of this forest cover area has been validated. The Food and Agriculture Organization of the United Nations (FAO) published a similar estimate of forest cover area based on a global assessment in 2005 and using the following categories: primary (0.8 million ha), modified Chapter 2: Background 17

Figure 2: Forest Cover, 2003 (hectares)

Forest Cover in Forestland

Mangrove 2% 153,577 Mangrove 3.45% Closed Open 247,362 39% 55% 2,480,644 3,515,645

Plantation Closed 4% 35.72% 281,764 2,560,872 Forest Cover in Alienable and Disposable Land

Mangrove Open 13% Plantation 56.23% 93,785 5% 4,030,588 Closed 329,578 Open 11% 70% 80,228 514,943 Plantation 6% 47,814

Note: Incomplete plantation data. Source: Philippine Forestry Statistics, 2005. natural (5.7 million ha), productive plantation (0.3 million ha), and protective plantation (0.3 million ha). In 2005, the Government reported that 16,498 ha had been reforested, 7,187 ha (43.5%) of this total by the Government and 9,311 ha (56.5%) by the private sector, through community‑based forest management programs and socialized industrial forest management agreements, among others (NSCB 2007). The reforestation achieved in 2005, however, was lower by 20% than the 20,338 ha reforested in 2004. Whether these values have been validated is unknown.

FAO. Forestry Country Profiles. Available: www.fao.org/forestry/32185/en/phl/. The natural ability of forests to regenerate was also a factor, according to FMB. 18 Country Environmental Analysis 2008: Philippines

In 2005, DENR approved 1,781 community-based forest management projects on about 1.6 million ha by specific tenure instrument. Holders of tenure instruments reforested 6,678 ha, or 71.7% of the reforested area. By December 2005, the number of industrial forest management agreements and industrial tree plantation lease agreements had decreased to 178, with a combined coverage area of 713,749 ha. In contrast, tree farm and agroforestry farm leases had increased to 222, over an area of 107,194 ha. The harvested logs are mostly exported. The decline in forest cover over the past three decades is quite alarming (Table 5). The Philippines ranks 11th among 89 tropical countries where per capita forest area is lowest. Compared with the global average of 0.62 ha per capita, the Philippines has 0.085 ha (FAO 2005). Most of the watersheds are degraded. Land conversion is a major cause of deforestation; other causes are slash-and‑burn farming (kaingin), illegal logging, forest fires, pest infestations, and typhoons. According to DENR, the worst forest disruption (121,326 ha) took place in 1983, when fire did away with 117,951 ha, kaingin 2,241 ha, illegal cutting 1,015 ha, and infestation, typhoons, and other causes 119 ha.

Agriculture Resources

The performance of agriculture and fisheries is severely constrained by low productivity, underused lands, environmentally unsustainable use of land and marine resources, lax enforcement of laws, insufficient credit, inefficient marketing, and limited sector diversification. Poverty is deepening as a result. Section 26, Declaration of Policy, of the Agriculture and Fisheries Modernization Act (AFMA) (1997) states that, in keeping with its policy of rational and equitable resource use, the State “shall prevent further destruction of watersheds, rehabilitate…irrigation systems and promote the development of irrigation systems that are effective, affordable, appropriate and efficient.” Yet little effort has been exerted to protect and rehabilitate critical watersheds and aquifers (Center for Research and Communication Foundation, Inc. 2007). The conversion of agricultural land to other uses has also had a considerable effect on agriculture resources. Between 1988 and 2000, 34,207 ha of alienable and disposable land, or 2,631 ha per year on average, was converted from agriculture to other uses.

Fishery Resources

The Philippines ranked 11th among the top fish‑producing countries in the world in 2006, producing 2.9 million metric tons (MT) of fish, crustaceans, mollusks, and aquatic plants (including seaweeds), or 2% of the world’s total of 143.6 million MT. It is also the second‑largest producer of aquatic plants Chapter 2: Background 19

Table 5: Country Environment Indicators

Indicator 1990 1997–2002 Latest Year Energy Efficiency of Emissions GDP per unit of energy 6.9 7.0 5.6 use (PPP$/kgoe) (2001) (2006) Traditional fuel use 37.0 61.0 47.0 (% of total energy use) (1980) (1997) (2006) Carbon dioxide emissions 0.72 0.99 1.0 (million metric tons per (2004) capita) Water Pollution: Water and Sanitation % of urban population 93.0 91.0 96.0 with access to safe water (2000) (2006) % of rural population with 82.0 79.0 88.0 access to safe water (2000) (2006) % of urban population 85.0 93.0 81.0 with access to sanitation (2000) (2006) Land Use and Deforestation Forest area (million 6.7 5.8 7.2 hectares) (2000) (2003) Average annual deforestation Million hectares 0.0887 % change 1.4 (1990–2000) Rural population density 570.6 572.3 (people per km2 of arable (2000) land) Arable land (% of total 18.4 18.6 36.0 land) (2000) (2001) Permanent cropland (% of 14.8 15.1 total land) (2000) continued 20 Country Environmental Analysis 2008: Philippines

Table 5 continued Indicator 1990 1997–2002 Latest Year Biodiversity and Protected Areas Proportion of terrestrial 4.0 4.9 6.5 and marine area protected (1999) (2005) (%) Mammals (number of 49 50 50 threatened species) (1996) (2002) (2002) Birds (number of 86 67 67 threatened species) (1986) (2002) (2002) Higher plants (number of — 360 193 threatened species) (1997) (2002) Reptiles (number of 7 8 8 threatened species) (1996) (2002) (2002) Amphibians (number of 2 23 23 threatened species) (1996) (2002) (2002) Urban Areas Urban population Million 29.8 48.1 (2002) % of total population 48.8 60.1 (2002) Per capita water use (cubic — 377 meters) (2000) Wastewater treated (%) — — Solid waste generated per — 0.7 0.4 capita (kg per day) (2001) (2004) — = no data, GDP = gross domestic product, kg = kilogram, kgoe = kilograms of oil equivalent, km2 = square kilometer, PPP = purchasing power parity. Source: FMB, 2005 Forestry Statistics Yearbook; FAO Country Profile. (www.countrystat .bas.gov.ph); Biodiversity and Protected Areas, 2006 World Resources Institute; Philippine Brown Environment Quality, Senate Economic Planning Office. Asian Development Bank (adb.org/water/indicators).

(including seaweeds); of 16.2 million MT produced worldwide in 2006, it contributed 1.5 million MT, or 9.1% (FAO 2006b). Fish catch leveled off at around 1.65 million tons in the early 1990s, despite the continued expansion of the commercial fishing fleet. The country Chapter 2: Background 21 reached its maximum economic yield from demersal fish stocks in the late 1960s, except in offshore areas around Palawan, Southern Sulu Sea, and the central part of the Pacific coast. Studies on pelagic fisheries point to the causes as overfishing and declining fish catch per unit effort. These findings are supported by observed changes in species composition. For instance, anchovies have partially replaced sardines, scads, and mackerels in the catch, indicating a gradual collapse in stocks (FAO 2006a). In some areas, not only the volume but also the quality and diversity of the catch has been reduced. In Central Visayas, catch composition has shifted overall from coastal pelagic to oceanic pelagic species, and from demersal to pelagic species. In the Visayan Sea, which was one of the most productive fishing grounds of the country, coastal pelagics replaced demersals as the most abundant catch in the 1980s, and invertebrate species became squid rather than shrimp dominant, reflecting a change in ecosystem health due to fishing pressure, and in fishing method from trawling to purse seine and ring net (FAO 2006a). Inland water bodies inherently lack ichthyodiversity because of the geologic origin and isolation of the archipelago. New fish species have been introduced, but whether they were entirely appropriate is unclear (FAO 2006a). Inland water resources management should minimize heavy siltation from deforested catchments into inland waters, allow multiple use of inland waters with minimum conflicts, prevent further deterioration of inland water environments and water quality, and sustain maximum sustainable yield from freshwater natural resources. Each inland water body should also be managed as an ecosystem under a single management umbrella, stakeholders should be involved in government planning and management, and the socioeconomic condition of rural-poor stakeholders should improve. Laws protecting the marine environment are in place. But the following issues still have to be dealt with: resource depletion, degradation of the coastal environment and critical fisheries habitats, low catch and incomes and dissipated resource rents, physical losses and reduced value of catch due to improper postharvest practices and inefficient marketing, inequitable distribution of benefits from resource use, conflicts between and within sectors, poverty of small‑scale fisherfolk, and inadequate systems and structures for fisheries management. As required in the Fisheries Code (1998) (Republic Act [RA] 8550), a comprehensive national fisheries industry development plan setting strategic directions for the next 20 years and key interventions for the first 5 years has been proposed and is being reviewed by the Bureau of Fisheries and Aquatic Resources.

One Ocean website, www.oneocean.org. 22 Country Environmental Analysis 2008: Philippines

Aquaculture has a major role in the economy but has had adverse effects on the environment. Unsound practices—overuse of artificial fish feed, dumping of waste, and direct discharge of harmful substances—pollute water bodies. Eutrophication of lakes has reportedly resulted in fish kill in Lingayen Gulf, Laguna Lake, Pangasinan, and other water bodies. Invasive alien species can also take over natural environments and affect endemic species, and the conversion of wetlands into other uses can worsen aquatic pollution. To reduce the impact on the environment, the Government is looking to adopt an integrated approach to aquaculture nationwide that will involve cultivating aquatic species in controlled environments. DA, DENR, and the Department of Interior and Local Government (DILG) issued Joint Administrative Order 1 (2007) defining areas where they can collaborate in promoting responsible aquaculture. The expected result is a set of guidelines for aquaculture, as provided in Fisheries Administrative Order 214 (2001), that will keep source water safe through proper waste management, sustainable practices, and consistent enforcement.

Biodiversity Resources

The Philippines has over 50,000 documented species; more than 65% are found nowhere else on Earth, and new species, more than in any other country, are being discovered every year. The Philippines supports more endemic species (Table 6) than Madagascar, with only a third of its land area. Madagascar is one of the most endemically biodiverse countries in the world and has top conservation priority. Conservation International has named the Philippines one of 17 mega‑biodiverse countries, with about 80% of the world’s biodiversity (in number of species). Key biodiversity areas—128 in all, with an estimated area of 6 million ha, about 20% of the land area—have been identified (CI- Philippines 2006). The country is in the Central Indo‑Pacific Eco-region, one of the 200 priority eco‑regions of the World Wide Fund for Nature (WWF). The Philippines is a biodiversity “hot spot.” Here the Earth’s biological wealth is most distinctive and rich, but its loss, if conservation efforts fail, will also significantly affect global biodiversity. The coastal and marine waters contain one of the world’s richest ecosystems, with extensive coral reefs, sea-grass beds, and mangrove forests. Hard stony coral species (scleractinians) in Philippine coral reefs (about 488) far outnumber those in the Caribbean (about 70). Philippine species diversity of sea grasses (about 16) is second only to Western Australia’s (17 species). The total diversity of all marine life in the Philippines is not yet known, but estimates of species numbers are extremely high (World Bank 2005b). The Verde Island passage was described by some scientists as “Center of the Center” of marine biodiversity in the world.

More information may be found at www.conservation.org. Chapter 2: Background 23

Table 6: Level of Endemism and Status of Vertebrate Fauna in the Philippines

% No. of % No. of Threatened No. of Endemic Endemic Threatened Endemic Class Species Species Species Species Species Amphibians 101 79 78 24 30 Reptiles 258 170 66 8 6 Birds 576 195 34 74 30 Mammals 204 111 54 51 37 Total 1,139 555 49 157 23 Source: Ong, Afuang, and Rosell-Ambal (2002).

However, the Philippines also ranks third globally for threatened birds and eighth for threatened mammals (PAWB 2004). Its threatened species numbered 695 plants and 223 animals in 2007. The Convention on International Trade in Endangered Species of Wild Flora and Fauna (CITES), which the country ratified in 1981, lists 25 wildlife species in the Philippines (24 animal and one plant) that are threatened with extinction, and an additional 116 species (100 animal and 16 plant including orchids and tree ferns) that, while not under immediate threat of extinction, could become extinct if their trade is not strictly regulated. (Table 7 shows the number of rare, threatened, and endangered species in the country, according to the Protected Areas and Wildlife Bureau of the DENR.) The common causes of the loss of biodiversity (terrestrial, coastal and marine, and freshwater), cited in various ENR assessments, are unsustainable land‑use practices, hunting and wildlife trade, ineffective capacity for natural resource management, low awareness of biodiversity, and poor enforcement of regulations. The NIPAS Act (1992) was passed to maintain essential ecological processes and life‑support systems, preserve genetic diversity, ensure the sustainable use of resources, and keep their natural conditions as far as possible. The act defined various categories of protected areas (Figure 3) including strict nature reserves, natural parks, natural monuments, wildlife sanctuaries, protected landscapes and seascapes, resource reserves, natural biotic areas, and other categories established by laws, conventions, and international agreements signed by the Philippine Government. As of June 2008, 107 protected areas, 3.3 million ha in aggregate, had been proclaimed by the President of the Philippines under the NIPAS Act. Of this total, 1.3 million ha (39.4%) is

Information provided by PAWB during consultation meeting; based on DAO 2007-01 and 2004-15. 24 Country Environmental Analysis 2008: Philippines 5 61 26 15 116 223 2006 5 61 26 15 116 223 2005 5 61 26 15 115 222 2004 99 16 — — 215 330 2003 99 16 — — 216 331 2002 99 16 — — 205 320 2001 2 4 16 108 192 322 2000 4 98 18 — 149 269 1999 94 15 — — 173 282 1998 95 15 — — 174 284 1997 94 15 — — 176 285 1996 Number of Rare, Threatened, and Endangered Wildlife Species, 1996–2006 Species, Wildlife and Endangered of Rare, Threatened, Number Type Mammals Birds Reptiles Amphibians Insects TOTAL Table 7: Table — = no data. indeterminate, risk, lower at concern, least of dependent, conservation vulnerable, extinct, threatened, near criticallyendangered, are that species Includes Note: and Flora SpeciesWild in Endangered of Fauna I and II. (CITES) Trade International on in the Convention 2004-15. DAO based on Wildlife and Areas Bureau, Protected Source: Chapter 2: Background 25

Figure 3: Protected Areas, 2004

Marine reserves 46,983.48 Other categories Natural biotic areas 11,456.72 22.70

Wildlife sanctuaries National parks/National 287,869.91 marine parks /National Resource reserves marine reserves 167,489.50 524,117.00

Natural monuments/ Game refuge landmarks and bird 23,741.50 sanctuaries 918,585.35

Protected Wilderness landscapes/ areas seascapes 3,297.00 1,671,775.11

Watershed forest reserves 1,153,629.41

Natural parks Mangrove swamps 971,579.46 (undetermined)

Source: Philippine Protected Areas and Wildlife Resources Statistics, 2004. marine area, and the rest is terrestrial. Ten of the protected areas (0.786 million ha in total) have been officially proclaimed through legislation. The management of 39 wetlands, while part of the MTPDP action agenda, lacks a national policy. The National Wetlands Action Plan is a decade old and needs updating. There are four Ramsar sites with a total area

The Ramsar Convention on Wetlands is an intergovernmental treaty whose original emphasis was on the conservation and wise use of wetlands, primarily as habitat for waterbirds. Over the years, its mission has evolved to cover “the conservation and wise use of all wetlands through local, regional and national actions and international cooperation, as a contribution towards achieving sustainable development throughout the world.” 26 Country Environmental Analysis 2008: Philippines of 68,404 ha: Agusan Marsh Wildlife Sanctuary, Naujan Lake National Park, Olango Island Wildlife Sanctuary, and Tubbataha Reefs National Marine Park. The first two are inland waters. Candaba Swamp is another possible Ramsar site. Aside from Laguna de Bay, the major inland waters with management plans are Lake Naujan, Agusan Marsh, Ligawasan Marsh, and Pasig River. River basin management plans are also in place for the Bicol river basin and a few others. Unfortunately, however, there is not enough information for a full assessment of biodiversity in the inland waters of the country. Biological diversity conservation in the Philippines is supported by international agencies and NGO communities. The United Nations Development Programme (UNDP) has been active in protected areas throughout the country.10 Conservation International (preservation of forested areas), WWF (marine conservation), and Flora and Fauna International (FFI) are building the capacity of local NGOs to plan, finance, implement, and sustain integrated long‑term conservation programs. The Protected Areas and Wildlife Bureau (PAWB) of DENR, in partnership with NGOs, has recently completed a major Global Environment Facility (GEF) project involving the protection of the 10 largest and most pristine sites, more than 1.5 million ha in total area. With World Bank and GEF funding, DENR-PAWB has been working to protect the Ligwasan Marsh (through its Biodiversity Conservation Project in the Balang River Basin) and coastal and marine biodiversity (under the Mindanao Rural Development Project). NGOs are also committed participants in the fight against the illegal trade in endangered species, and in breeding programs for critically endangered species, public awareness building, biodiversity monitoring, and species‑specific wildlife research.

Terrestrial Biodiversity Because of its global significance and generally degraded condition, and the continuing threats to its survival, Philippine biodiversity requires considerable attention. The loss of forest resources, with their attendant rich biodiversity, has resulted in a large number of important threatened species, many of which can now be found only in the remaining fragments of lowland forest. The decline in forest cover has also devastated adjacent ecosystems. Fifty percent of the declared protected areas under NIPAS, or about 1.6 million ha, are predominantly forestlands.

10 These include: the Samar Island Biodiversity Project, Conservation of the Tubbataha Reef National Marine Park and World Heritage Site, Cebu Endemic Forest Biodiversity Restoration, Conservation and Sustainable Development Project, Biodiversity Conservation and Management of the Bohol Islands Marine Triangle, Integrated Biodiversity Conservation and Sustainable Management of Ancestral Domains in the Zambales Mountain Range, and Sustainable Management of Mt. Isarog’s Territories (SUMMIT). Chapter 2: Background 27

Biodiversity concerns were left out of forest management in its early stages. Only in 1992, under the NIPAS Act, was logging or the commercial exploitation of old‑growth forests, watersheds, and other areas specifically prohibited. Protected areas had to have biodiversity management plans. In 2004, the Philippines made sustainable forest management (SFM) a primary policy objective.

Coastal and Marine Biodiversity Marine biodiversity in the Philippines is one of the world’s richest. The marine waters hold more than 500 of the 800 known coral reef species, in addition to more than 2,000 species of marine fish, more than 40 species of mangrove, and 16 species of sea grass.11 To some scientists, the global importance of that biodiversity and the threats to it make the country the top marine biodiversity hot spot in the world. About 98% of all Philippine coral reefs are at risk from human activities, and 70% are at high or very high risk. One exception is the Visayan Seas area, where coastal resource management programs created protected areas in recent years, have helped curtail illegal fishing and encouraged sustainable management. More than 70% of the mangrove forests have been converted to aquaculture, logged, or reclaimed for other uses. A recent reading of 2002 satellite images by the National Mapping and Resource Information Authority (NAMRIA) and FMB indicated a total mangrove area of 248,813 ha. This estimate, however, has not been validated. Half of the sea-grass beds have been lost or severely degraded, and the degradation is accelerating. Beaches and foreshore areas are under increasing pressure from rapid population growth and uncontrolled development, leading to erosion, sedimentation, and water quality problems (World Bank 2005b). As a whole, coastal and marine ecosystems in the Philippines are in decline, the 2005 Philippine Report of the Biodiversity Indicators for National Use showed. The report added that the lack of comprehensive data and information on the state of biological resources and their habitats was affecting conservation and management (PAWB 2005). The economic costs are significant. Overfishing leads to lost fish catch of about $125 million per year. In the 1990s red tides, harmful algal blooms caused by increasing pollution, resulted in yearly losses in exports of around $30 million. A sustainable archipelagic framework, which seeks to transform land‑based development planning and take a more rational and integrated approach to coastal and marine resource use, was prepared in 2004 but has not been acted on so far.

11 This makes the Philippines the second-ranked country in the world in species richness of sea grass. 28 Country Environmental Analysis 2008: Philippines

Water Resources

The Philippines has abundant water resources. It has 421 principal rivers, about 79 natural lakes, and 36,289 kilometers of coastline. As of 2005, EMB had classified 62% of the 421 principal rivers according to their intended beneficial use (see Table 8). Only five were class AA, intended for public water supply; most were class C, intended only for fishery, recreation, and manufacturing (EMB 2007a). Two major policy frameworks for water resources management—the integrated water resources management framework ((IWRMF) and the integrated water quality management framework (IWQMF)—were drafted by the Government in 2007. The National Water Resources Board (NWRB) is leading the development and implementation of the IWRMF with initial support from the United Nations Environment Programme (UNEP), while EMB, with assistance from a Japan International Cooperation Agency ( JICA) project, is in charge of developing and implementing the IWQMF. The IWRMF, a country commitment at the World Summit on Sustainable Development in Johannesburg in 2002, has its sights on greater effectiveness, accountability, and synergy among institutions and stakeholders; effective protection and regulation; resource sustainability; and adaptive and proactive response to challenges. Among its strategies are participatory water governance, capacity building for IWRM, efficient and ecologically sustainable allocation of water, more effective groundwater management, climate-change and disaster-risk mitigation, water stewardship, more accessible and available water supply and sanitation services, and innovations in water‑sensitive design and water rights trading. The IWQMF is a requirement of the Clean Water Act (CWA). Its struc- tured approach to sustainable water quality management involves using source control to minimize the impact of waste generation, managing water resources as an ecosystem and not just as a commodity, and reviving and rehabilitating degraded resources and non-attainment areas to support beneficial uses. Neither water framework has been finalized.

Water Supply Water is important for economic development. Yet the reported water availability per capita of 1,907 cubic meters is the second lowest in Southeast Asia (DENR 2007b). As of September 2007, NWRB had granted 19,694 water permits totaling about 6.0 million liters per second (lps) to domestic (municipal), agriculture, power, and commercial users. The biggest water user is irrigation, at about 2.1 million lps. These figures represent only legal users and exclude unregistered or illegal abstractors. APIS shows that access to safe drinking water declined from 81.4% in 1999 to 80.2% in 2004, largely because of competing demand from the grow- Chapter 2: Background 29

Table 8: Classification of Water Bodies in the Philippines

Classification Number Surface Water Class AA Intended as public water supply requiring only approved 5 disinfection to meet the PNSDW Class A Suitable as water supply requiring conventional treatment 203 to meet PNSDW Class B Intended for primary contact recreation (bathing, swimming, 149 skin diving, etc.) Class C For fishery, recreation/boating, and supply for manufacturing 231 processes after treatment Class D 23 Intended for agriculture, irrigation, livestock watering, etc. Coastal and Marine Waters Class SA Suitable for fishery production, tourism, marine parks, 4 coral reef parks, and reserves Class SB Intended for recreation (bathing, swimming, skin diving, etc.) 20 and as spawning areas for bangus and similar species Class SC Intended for recreation/boating, fishery, and as mangrove areas 27 for fish and wildlife sanctuaries Class SD 3 Used for industrial purposes such as cooling PNSDW = Philippine National Standard for Drinking Water. Note: There are 133 water bodies with two or more classifications. Source: Environmental Management Bureau, DENR, National Water Quality Status Report 2001–2005. ing population. (Table 9 compares water demand in 1995 in major cities with the forecast demand in 2095 in relation to groundwater availability. See also Appendix 1.) In Metro Manila, the center of commerce, science, technology, and political governance, the delivery of safe drinking water to consumers is increasingly constrained by the low capacity of water sources in relation to demand and the poor efficiency of water infrastructure. Current source capacity is estimated at 4,090 million liters per day (MLD)—4,000 MLD 30 Country Environmental Analysis 2008: Philippines

Table 9: Water Demand in Major Cities of the Philippines (m3/year)

Groundwater Surplus/(Deficit) (%) City 1995 2025 Availability 1995 2025 Metro Manila 1,068 2,883 191 (82) (93) Metro Cebu 59 342 60 2 (82) Davao 50 153 84 69 (45) Baguio City 12 87 15 21 (83) Angeles City 11 31 137 1,148 343 Bacolod City 37 111 103 179 (7) Iloilo City 9 47 80 788 70 Cagayan de 29 98 34 18 (65) Oro City Zamboanga City 28 203 54 92 (73) m3 = cubic meter. Source: National Water Resources Board. from the Angat–Ipo–La Mesa Dam system and 90 MLD from groundwater wells (MWSS 2005). Potential demand already exceeds this capacity. Water pressure is very low in parts of the Metropolitan Waterworks and Sewerage System (MWSS) service area. In extreme cases, supply is intermittent or even nonexistent. MWSS is taking the lead in strategic planning for large sources development. It estimates that water demand in the Metro Manila service area will increase to more than 5,000 MLD by 2010, and to 8,000 MLD by 2025. The development of a water source is now critical, given the typical lead time of 5–10 years.

Water Quality Between 2001 and 2005, EMB monitored 238 water bodies through its regional offices. About 47% had annual average dissolved oxygen and biochemical oxygen demand (BOD) levels within the prescribed criteria. Seven priority rivers showed improved levels of dissolved oxygen (Table 10). But of the water bodies meant to be sources of drinking water, only 20% met the criterion for total suspended solids, confirming the effects of sand and gravel quarrying and runoff of sediments from denuded forests and agricultural lands. Forty‑one of the 57 priority bathing beaches were monitored during the period; 61% passed the fecal coliform criterion of 200 MPN/100 mL for Chapter 2: Background 31

Bicol River Pasig River Pasig River Pasig Iloilo Strait Manila Bay Manila Bay Manila Bay Manila Bay Manila Bay Manila Bay Manila Bay Tanon Strait Tanon Calapan Bay Malaguit Bay Calancan Bay Macajalar Bay Coastal waters Balawing Cove Naguilian River Naguilian of Carmen, Cebu of Carmen, Receiving Water Body Water Receiving Status 3% increase 2% increase 7% increase 4% decrease 7% decrease 4% decrease 1% decrease 9% decrease 17% increase 45% increase 12% increase 45% increase 77% increase 11% decrease 62% decrease 31% decrease 20% decrease 31% decrease 34% decrease 7.1 8.1 4.9 7.6 5.7 6.3 5.6 2.8 4.6 7.1 2.0 5.3 1.0 4.9 1.2 1.5 2.4 2.4 3.4 2005 7.6 8.5 4.2 7.9 5.5 3.9 5.6 4.9 3.2 3.0 4.5 2.9 1.5 2.6 4.6 2.2 3.5 3.7 2.4 2003 Water Body Water Sapangdaku River River de Oro Cagayan Iloilo River Luyang River Panique River Panique Anayan River Anayan Malaguit River Calapan River Ylang-Ylang River Mogpog River Bocaue River River Imus Marilao River Balili River RiverMeycauayan Paranaque River Paranaque River Pasig San Juan River Marikina River Change in Dissolved Oxygen in Priority Rivers, 2003–2005 Rivers, Oxygen in Priority Change in Dissolved Within the 5 mg/l dissolved criterion. oxygen 10 7 6 5 4B 4A CAR 3 Region NCR Capital Region. NCR = National = Cordillera Region, Administrative CAR Quality Status Report 2001–2005. Water National Source: Table 10: Table 32 Country Environmental Analysis 2008: Philippines class SB waters. Significantly, the coastal waters of Boracay had improved since 1997. Between 2003 and 2005, all the beaches on Boracay Island that were monitored met the fecal and total coliform criteria. Table 11 shows the results of groundwater testing for a World Bank project. A rapid inventory of pollution sources (EMB 2007a) revealed that domestic wastes are a major source of pollution (33%), followed by agriculture including livestock (29%) and industrial sources (27%). Nonpoint sources of pollution account for 11% of the organic load in water bodies. Pollution leaching out from solid waste disposal sites into major water bodies is high, according to several studies. But there are no estimates of the full contribution of solid waste to water quality degradation. One study in Metro Manila found solid waste to contribute about 30% of the total organic (BOD) loading in surface waters (Table 12). The annual average economic losses from water pollution are estimated at $1.3 billion (World Bank 2003a)—$58 million for avoidable costs to health, $330 million for avoidable costs to fisheries production, and $912 million for avoidable losses to tourism. The 5-year Manila Third Sewerage Project (MTSP) is now being implemented at an estimated cost of $64 million. About 367,000 families (3.3 million people) in the cities of Quezon, Marikina, Pasig, Mandaluyong, and Makati, and the municipalities of Taguig and Taytay, are expected to benefit as sewer coverage in the East Zone improves to 30% by the end of the project in 2010 (versus about 8% in 2004). Full coverage of the MWSS service area by the end of the concession period (2021) is envisioned in the wastewater master plan completed in November 2005. The master plan proposes a combined sewerage-drainage strategy, deemed to be the most economical approach to sewerage expansion. Huge investments—and higher tariff rates—will be required to meet the target. LGUs and the national Government must show commitment, particularly when it comes to sewage treatment plant site availability, drainage maintenance arrangements, and permits and clearances. Mandatory connections, and a massive information and education campaign, will also be necessary (MWSS 2005). Other key challenges in water quality management are monitoring, land‑use planning, protection of water bodies from contamination by domestic waste, management of nonpoint sources of pollution and of solid and hazardous wastes, coastal area management to avert impact on the coastal ecosystem, protection of groundwater quality, and rehabilitation of rivers. Chapter 2: Background 33 b S S U U U U U U U U continued Rating c 4 0 0 40 33 78 100 100 100 100 (%) That Wells Wells Failed Failed Criteria c

Coliform 2 1 3 1 1 7 3 0 5 0 That Wells Wells (no.) Failed Failed Criteria 5 3 3 1 9 3 7 5 6 — 23 — — — — — — — — (no.) Wells Wells Tested b S S S S S S S S S U U U U U U U U Rating a

7 0 0 0 0 0 3 9 0 10 50 15 40 17 20 100 100 (%) That Wells Wells Failed Failed Criteria a 5 3 1 1 3 0 0 1 0 0 2 1 0 1 6 0 1 That Wells Wells (no.) Failed Failed Criteria Total Dissolved Solids Dissolved Total 3 2 1 1 5 6 1 5 49 — — 15 20 20 14 12 15 31 69 (no.) Wells Wells Tested Province Metro Manila Metro Benguet Ilocos Norte Ilocos Sur La Union Pangasinan Isabela Quirino Bataan Bulacan Nueva Ecija Pampanga Tarlac Zambales Batangas Cavite Laguna Palawan Rizal Groundwater Quality Scorecard Quality Groundwater Valley) Luzon) Tagalog) (Central (Cagayan (Cagayan (Southern Region NCR (Metro Manila) CAR 1 (Ilocos) 3 2 4 Table 11: Table 34 Country Environmental Analysis 2008: Philippines b S S S U U U U continued Rating c 0 0 0 67 100 100 100 (%) That Wells Wells Failed Failed Criteria c

Coliform 4 0 0 0 2 2 44 That Wells Wells (no.) Failed Failed Criteria 6 2 5 3 2 2 — — — — — — — — 44 (no.) Wells Wells Tested b S S S U U U U U U U U U U U Rating a

0 0 0 29 20 79 65 40 47 11 38 11 26 100 (%) That Wells Wells Failed Failed Criteria a 2 0 1 0 2 7 1 3 2 0 3 11 11 12 That Wells Wells (no.) Failed Failed Criteria Total Dissolved Solids Dissolved Total 7 3 5 3 5 9 8 2 4 14 — 17 15 27 46 (no.) Wells Wells Tested Province Albay Camarines Norte Camarines Sur Masbate Sorsogon Iloilo Occidental Negros Bohol Cebu Oriental Negros Leyte Samar Western Zamboanga del Norte Zamboanga del Sur Misamis Oriental continued Mindanao) (Northern Visayas) Visayas) Visayas) Mindanao) (Central (Eastern (Western (Western (Western (Western Region 5 (Bicol) 10 7 8 6 9 Table 11 Table Chapter 2: Background 35 b Rating c (%) That Wells Wells Failed Failed Criteria c

Coliform That Wells Wells (no.) Failed Failed Criteria — — — — (no.) Wells Wells Tested b S Rating a

0 (%) That Wells Wells Failed Failed Criteria

a 0 That Wells Wells (no.) Failed Failed Criteria (National Water Resources Information (National Board–National Water Water Network data Project; compiled Total Dissolved Solids Dissolved Total

2 — — — (no.) Wells Wells

Tested Province Philippine Environment Monitor 2003 Davao del Sur continued Mindanao) (Central (Southern Mindanao) Wells tested found positive for coliform. Wells Only provinces with data were included with data were Only in the rating. provinces S = no wells found positive for coliform (0%) U = wells tested found positive for coliform (>0%) Wells tested did not meet the 500 mg/l standard for drinking tested did not meet the 500 mg/l standard water. Wells 10% of wells tested did not meet standard S = below of wells tested did not meet standard U = 10% and above Region 11 Caraga ARMM 12

Table 11 Table Capital Region. NCR = National = Cordillera Region, Administrative CAR in Muslim Mindanao, Region ARMM = Autonomous — = no data, a b Bank, Source: World 2003). variousLWUA, feasibilityfrom studies of water districts, c 36 Country Environmental Analysis 2008: Philippines

Table 12: Water Quality Scorecard for Surface Water (Rivers, Lakes, Bays)

DO BOD Name of (mg/1) a (mg/1) a River/ Location Average Average Region Lake/Bay (Province) Class (Range) (Range) Rating NCR Parañaque Metro C 3.07 25.62 U River Manila (0–9.50) (97.00–54.00) San Juan Metro C 3.0 34.81 U River Manila (0–8.0) (8.00–72.00) NMTT River Metro C 2.8 25.23 U Manila (0–7.5) (7.00–54.00) Marikina R. Metro C 5.03 12.11 U Manila (0–8.0) (1.00–42.00) Pasig River b Metro C 3.67 17.07 U Manila (0–6.5) (2.00–59.00) Manila Bay Metro C 4.77 3.23 S Manila/ (3.90–5.48) (2.50–4.18) reg. 3/reg. 4 Laguna de Metro C 7.86 1.8 S Bay c Manila/ (6.1–14.0) (0.20–7.00) reg. 4 CAR — 1 (Ilocos) Laoag River Ilocos Norte A 6.69 — S (4.03–7.80) Amburayan Benguet/ C 8.35 — S River Ilocos Sur (6.00–11.0) La Union — Dagupan Pangasinan A/C 5.96 — M River (2.00–11.82) Agno River b Benguet/ A/C 6.78 — S Pangasinan (1.46–11.10) 2 (Cagayan — — Valley) 3 (Central Pampanga Nueva Ecija/ C 5.86 3.78 M Luzon) River b Pampanga (4.85–7.21) (1.00–15.00)

continued Chapter 2: Background 37

Table 12 continued DO BOD Name of (mg/1) a (mg/1) a River/ Location Average Average Region Lake/Bay (Province) Class (Range) (Range) Rating Marilao River Bulacan C 1.75 34.64 U (0–5.75) (10.00–147.00) Meycauayan Bulacan C 1.35 54.94 U River (0–5.55) (11.00–170.00) Bocaue River Bulacan C 6.19 11.13 S (0.30–9.07) (6.00–20.00) Labangan Bulacan — 5.33 18.48 M River (2.50–7.30) (3.30–50.00) Sta. Maria Bulacan — 3.10 33.57 U River (0.10–5.20) Guiguinto Bulacan C 3.03 14.81 U River (1.50–3.80) San Fernando Pampanga C 2.86 29.40 U River (1.90–3.80) (27.00–32.00) 4 (Southern Mogpong Marinduque C 5.72 6.03 M Tagalog) River (3.45–7.80) (4.73–8.01) Pagbilao Quezon — 5.28 6.26 M River (4.00–6.50) (4.00–8.61) Bacoor River Cavite — 6.10 — S (5.30–7.40) Taal Lake Batangas B 7.40 1.50 S (7.00–8.20) (1.00–2.00) Palico River Batangas C 6.95 1.11 S (4.80–8.30) (1.00–1.50) Pagbilao Quezon — 7.75 2.10 S River (6.20–10.20) (1.00–5.00) Pagbilao Bay Quezon — 6.65 — S (4.77–7.10) Boac River Marinduque C 10.42 — S (6.24–17.13)

continued 38 Country Environmental Analysis 2008: Philippines

Table 12 continued DO BOD Name of (mg/1) a (mg/1) a River/ Location Average Average Region Lake/Bay (Province) Class (Range) (Range) Rating Calancan Bay Marinduque — 7.14 — S (4.80–8.50) Cajimos Bay Romblon — 6.89 — S (6.00–9.00) Puerto Galera Mindoro SA 7.67 — S Bay Oriental (6.75–10.00) Naujan Lake Mindoro B 8.00 12.3 S Oriental (1.00–9.60) Calapan Mindoro — 1.46 30.00 U River Oriental (0–7.00) (2.00–225.00) 5 (Bicol) Bicol River b Camarines A 5.28 — M Sur (2.36–10.74) 6 (Western Jaro–Aganan Iloilo C 8.79 3.45 S Visayas) River (0.90–14.50) (0.06–15.60) Panay Iloilo A 7.58 4.63 S River b (1.40–12.80) (0.40–52.00) Jalaur River Iloilo C 8.30 6.40 S (0.50–12.90) Iloilo River Iloilo 5.64 6.67 M (1.70–10.40) (0.80–265.00) Panay Iloilo A 7.69 — S River b (1.40–23.20) Iloilo Coasts Iloilo — 8.34 — S (7.40–10.00) 7 (Central Guindarohan Cebu A 7.21 1.53 S Visayas) River (6.50–8.30) (0.40–4.00) Guadalupe Cebu C 4.32 1.90 U River (0.50–7.50) continued Chapter 2: Background 39

Table 12 continued DO BOD Name of (mg/1) a (mg/1) a River/ Location Average Average Region Lake/Bay (Province) Class (Range) (Range) Rating Dalaguete– Cebu A/B 7.85 1.07 S Argao River (6.90–10.10) (0.30–2.60) Guinhulngan Cebu A/B 7.74 1.13 S River (7.10–8.40) (0.60–2.40) Luyang Cebu A/B/ 7.17 1.10 S River C (5.70–8.40) (0.90–1.30) Cotcot Cebu A 6.56 3.06 U River (1.40–7.90) (0.60–2.40) Basak River Cebu — 8.30 0.50 S (0.20–2.53) Mananga Cebu A 5.50 7.10 M River (5.00–6.00) (5.30–7.80) Balamban Cebu A/B 7.35 1.07 S River (6.30–8.70) (0.20–2.53) Guinabasan Cebu A 8.05 2.13 S River (5.10–11.10) (0.40–9.8) Minglanilla Cebu — 6.25 — S (2.10–9.70) Mandaue to Cebu — 5.27 — M Consolacion (0.0–14.00) Liloan to Cebu — 7.15 — S Compostela (4.10–14.0) Inabanga Bohol A/C 6.40 1.20 S River (5.40–7.40) (0.80–1.60) Inabanga Bohol — 6.93 S Beach (5.50–7.90)

continued 40 Country Environmental Analysis 2008: Philippines

Table 12 continued DO BOD Name of (mg/1) a (mg/1) a River/ Location Average Average Region Lake/Bay (Province) Class (Range) (Range) Rating Ipil River Bohol A 4.15 2.48 M (2.80–5.20) (1.20–4.00) Manaba Bohol B/C 7.65 — S River (4.50–16.90) Matul-id Bohol A 5.77 1.20 S River (5.70–5.90) (1.20–1.20) Canaway Negros A 7.25 1.20 S River Oriental (6.90–7.40) (0.60–1.80) Cawitan Negros A 7.73 0.50 S River Oriental (7.50–7.90) (0.20–1.00) La Libertad Negros A 8.55 1.25 S River Oriental (7.90–9.20) (0.10–6.60) Siaton River Negros A 7.67 0.57 S Oriental (7.30–7.90) (0.10–1.30) Sicopong Negros A/B 3.21 40.73 U River Oriental (0.25–7.50) (0.40–100.00) Tanjay River Negros A/B 7.05 0.85 S Oriental (6.83–7.30) (0.70–1.00) 8 (Eastern Danao Lake Leyte — 7.20 S Visayas) (6.30–7.90) 9 (Western Mercedes Zamboanga B/C 5.16 4.72 M Mindanao) River del Sur (1.50–8.30) (0.40–17.00) Saaz River Zamboanga A/B 4.85 — U del Sur (1.70–7.80) Manicahan Zamboanga — 5.92 2.76 M River del Sur (2.50–9.40) (0.10–8.00)

continued Chapter 2: Background 41

Table 12 continued DO BOD Name of (mg/1) a (mg/1) a River/ Location Average Average Region Lake/Bay (Province) Class (Range) (Range) Rating Vista del Zamboanga — 6.77 2.03 S Mar del Sur (4.90–8.80) (0.10–5.40) Cawacawa Zamboanga — 5.40 — M Beach del Sur (2.10–8.50) 10 (Northern Cagayan de Misamis A 8.08 — S Mindanao) Oro River b Oriental (5.70–9.90) Iponan Misamis A 7.51 3.59 S River Oriental (2.10–8.50) (0.70–17.00) 11 (Southern Silway River South — 8.22 — S Mindanao) Cotabato (5.60–73.00) Malalag Bay Davao del — 6.30 — S Sur (5.70–7.00) Digos River Davao del B/C 7.33 1.55 S Sur (5.80–9.00) (0.10–7.80) Hijo River Davao del D 7.35 0.94 S Norte (5.80–9.00) (0.30–4.00) Sibulan Davao del A/B 7.69 1.68 S River Sur (6.50–8.60) (0.10–4.00) Pujada Bay Davao — 6.11 — S Oriental (3.20–6.80) Talomo Davao City B 7.47 2.73 S River (6.40–8.30) (0.50–12.20) Padada Davao del D 5.85 1.84 U River Sur (0–7.40) (0.30–18.00) Tuganay Davao del B 6.02 1.37 U River Norte (0.20–8.00) (0.30–4.70) Agusan Agusan del C 7.01 1.01 U River b Norte (2.60–8.10) (0.10–5.60)

continued 42 Country Environmental Analysis 2008: Philippines

Table 12 continued DO BOD Name of (mg/1) a (mg/1) a River/ Location Average Average Region Lake/Bay (Province) Class (Range) (Range) Rating Ilang River Davao City C 6.69 2.29 S (4.40–8.40) (0.70–9.00) Lasang Davao City B 7.57 1.36 S River (6.30–8.50) (0.40–3.00) Lipadas Davao City AA/A 7.29 1.88 S River (5.30–8.50) (0.30–8.70) Davao Davao City A/B 7.46 1.06 S River b (5.80–8.60) (0.10–2.40) Tagum Davao del A 6.46 1.71 S River b Norte (4.80–7.80) (0.30–36.00) 12 (Central — Mindanao) Caraga Agusan Agusan del A/B/ 5.94 — M River b Norte/ C (2.60–8.00) Agusan del Sur Magallanes Agusan del A/B/ 7.75 — S River Norte C ARMM —

— = no data, ARMM = Autonomous Region in Muslim Mindanao, BOD = biochemical oxygen demand, CAR = Cordillera Administrative Region, DO = dissolved oxygen, mg = milligram, NCR = National Capital Region, ND = no data, NMTT = Navotas-Malabon-Tenejeros-Tullahan. Notes: DO criteria: Class A, SB = 5 mg/l BOD criteria: Class A, SB = 5 mg/l a Monitored for at least 3 years in 1996–2001 for annual mean DO and BOD levels. b Major river, according to NWRB classification. c Not yet officially classified but generally maintains class C water. Source: World Bank, Philippine Environment Monitor 2003 (Environmental Management Bureau, DENR, 2003; Laguna Lake Development Authority data for Laguna de Bay, 1999). Chapter 2: Background 43

Sanitation Water supply and sewerage systems must complement each other to reduce the impact on the quality of ground and surface water. Investments in urban sewerage and sanitation programs, however, total only 1.5% of investments in urban water supply. More than 27 million Filipinos do not have sanitary toilets. Thirteen million do not have clean water sources, and only 3.3% of households are connected to sewers leading to treatment facilities. More than 95% of wastewater in urban areas is discharged untreated into groundwater, canals, and waterways. Water supplies are therefore commonly contaminated, and people in urban slums, and illegal settlers living near the rivers, are exposed directly to raw sewage. More than 31 persons, mostly children, die every day from illnesses like diarrhea arising from poor sanitation. Metro Manila (see Table 13) ranks 16th among key cities in Asia in percentage of the population with access to sewerage (12%). The rest of the people rely on septic tanks or pit latrines, or have no access to any sanitation system. The 2.2 million or so septic tanks in Metro Manila are not regularly cleaned, and many are inappropriately designed with minimal treatment, contributing to the pollution of waterways and to public‑health risks. Outside Metro Manila, only three of the 1,500 cities and towns have functional public sewerage systems (Baguio, Zamboanga, and Vigan cities) (Table 14). These systems, built by the Americans in the late 1920s and early 1930s, are in the downtown business districts and serve only a small portion of the urban population. Aside from a few communal toilets in low‑income urban areas, no other public sanitation services are in evidence. The two

Table 13: Sewerage Services in Metro Manila, 2001–2005

Item 2001 2005 Population with sewer connection, as % of total population East Metro Manila (Manila Water Company Inc.) 8.3% 11% West Metro Manila (Maynilad Water Services Inc.) 14.5% 12.4% Amount of septage safely disposed of (cu m per day) East Metro Manila 100 200 West Metro Manila 74 500 Population with septic tanks cleaned East Metro Manila 0.7% 4.7% West Metro Manila 1.9% 6% cu m = cubic meter. Source: World Bank, Manila Water Supply and Sewerage, Report 35539-PHI, 16 May 2006. 44 Country Environmental Analysis 2008: Philippines

Table 14: Sewerage and Sanitation Systems outside Metro Manila

Urban Population Location Population System Management Served Coverage Baguio City 252,000 Public LGU 5,300 2.0% sewerage Zamboanga 402,000 Public Water district 3,700 1.0% City sewerage Vigan City 45,100 Public Water district 1,360 3.0% sewerage Bacolod 429,000 Independent LGU 1,030 0.2% City sewerage Independent LGU 990 0.2% sewerage Dagupan 130,000 Communal LGU 308 0.2% City toilet Communal LGU 204 0.2% toilet LGU = local government unit. Source: World Bank Water and Sanitation Program–East Asia and the Pacific, 2003. independent sewerage systems in Bacolod City serve housing developments, each with fewer than 200 households, while the communal toilets in Dagupan City are used by only 40–60 households. The country incurs economic losses of about $1.5 billion per year from premature death, health‑care costs, lost wages, and other effects of poor sanitation, according to a study cofinanced by the World Bank and the United States Agency for International Development (USAID) under its Environmental Cooperation–Asia Program. The study recommended increasing the budget for sanitation, especially for sewage treatment plants; intensifying the education and information drive in schools and households in partnership with the media; developing policies and regulations to protect the environment and health; and studying further the effects of poor sanitation on the economy and public welfare in local governments. The World Bank has financed three sewerage projects in Metro Manila, including MTSP. Instead of a central sewerage system (which would be unaffordable and tough to implement in the traffic‑congested city), several small wastewater treatment plants connected to nearby houses are being built. ADB financed the construction of a sludge treatment plant under the Pasig River Environmental Management and Rehabilitation Sector Development Program, and a package treatment plant for a public market in Liloan, Cebu, as a pilot and demonstration activity. The proposed Water Chapter 2: Background 45

District Development Sector Project will also have a sanitation component. The project will help improve the living conditions of the urban population outside Metro Manila, enhance competitiveness by developing water supply infrastructure, and build the capacity of water utilities. It will also support the institutional development of LWUA and contribute to much‑needed sector reform. The sanitation system component will consider low‑cost solutions (e.g., septic tanks and septage management, package treatment plants), and wastewater quality monitoring. Seven septage treatment facilities (STFs) have been put up in the municipalities of Alabel, Malapatan, Glan, Maasim, Kiamba, and Maitum in Sarangani Province, and in Malalag, Davao del Sur, under the Southern Mindanao Integrated Coastal Zone Management Project funded by the Japan Bank for International Development. These STFs have been operating since March 2008. The municipal LGUs operate and maintain the facilities. MTPDP 2004–2010 seeks 92%–96% coverage for safe drinking water (see MTPDP strategies in Box 1) and 86%–91% for sanitary toilet

Box 1: Strategies for Potable Water in the Medium-Term Philippine Development Plan 2004–2010 • Provide potable water to the entire country by 2010, with priority given to at least 200 waterless barangays (areas with less than 50% water supply coverage) in Metro Manila and 200 waterless municipalities outside Metro Manila through private sector or public investment. • Ensure that all barangays and municipalities that will be provided with water supply services have the corresponding sanitation facilities for the proper disposal of wastewater and septage. • Continue to provide capacity building programs and technical assistance in water supply and sanitation planning, management, and project implementation to all water service providers needing assistance. • Develop technology options for water supply (e.g., solar desalination for isolated islands, windmill technology). • Promote private sector or public investment in the provision of water to waterless barangays and municipalities. • Assess groundwater resources and vulnerability in 310 priority local government units. • Monitor the drinking water of selected poor communities through the Tap Watch Program. • Complete the groundwater resource inventory and assessment in major urban areas and surface water in rural areas, control extraction through moratorium/stringent requirements in the grant of water permits in water- deficient areas, and complete the registration of all water pumps, the metering of water pumps, etc. 46 Country Environmental Analysis 2008: Philippines

Table 15: Philippine, US-EPA, and WHO Ambient Air Quality Guidelines for Common Pollutants

Time WHO US-EPA Philippines Pollutant (averaging) (µg/m3) (µg/m3) (µg/m3) Total suspended Daily 230 particulates (TSP) Annual 90 Particulate matter Daily 150 150 up to 10 microns Annual 50 80

(PM10)

Sulfur dioxide (SO2) Daily 125 365 180 Annual 50 80 80 Nitrogen dioxide Daily 40 — 150

(NO2) Annual 100

Ozone (O3) 1 hour 120 230 140 8 hours 15 60 Carbon monoxide 1 hour 30 mg/m3 40 mg/m3 35 mg/m3 (CO) 8 hours 10 mg/m3 10 mg/m3 10 mg/m3 Lead (Pb) 3 months 0.5 — 1.5 Annual 1.0

— = no data, µg/m3 = one millionth of a gram of pollutant per cubic meter of air, mg/m3 = milligrams per cubic meter, US-EPA = US Environmental Protection Agency, WHO = World Health Organization. Notes: “Guideline” refers to the safe level of a pollutant for the given averaging time to protect the public from acute health effects. “Annual Average” is the average of daily measurements taken over a year. WHO no longer recommends air quality guidelines for particulate matter because there is no safe lower limit. US‑EPA values are for primary standards. Source: Clean Air Act of 1999; WHO/SDE/OEH/00.02 Geneva 2000. facilities. These goals exceed the 2015 MDG targets. The MTPDP urges strong commitment to cost recovery, commercial principles (including private sector involvement), and decentralization of operation and maintenance responsibilities to local governments.

Air Quality

Air quality is mixed and varies between regions.12 Despite a recent decline in concentration in some cities, particulates regularly exceed annual ambient

12 No study has been conducted to value trans-boundary and global air pollution impact including acid rain, global warming, and damage to stratospheric ozone in the Philippines. This section is taken from World Bank (2002). Chapter 2: Background 47

Figure 4: Annual Consumption of ODS and Alternatives, 2001–2006

4,000.00

3,500.00

3,000.00

2,500.00

2,000.00

1,500.00

1,000.00

500.00

0.00 2001 2002 2003 2004 2005 2006 Year chlorofluorocarbons hydrochlorofluorocarbons hydrofluorocarbons

ODS = ozone-depleting substances. Source: Philippine Ozone Desk, Environmental Management Bureau, Department of Environment and Natural Resources. standards (Table 15) at 70% of monitoring sites, and particulate matter

(PM10) levels are very high. Sulfur dioxide (SO2) concentrations have gone down since the closure of a number of coal- and oil-fired thermal generating stations, the largest source of this pollutant in the country. Carbon monoxide emissions, monitored mostly in Metro Manila, almost always exceed 8-hour standards but normally never exceed 1-hour standards. Ground‑level ozone in Metro Manila is almost always higher than national standards. By 2000, concentrations of lead had dropped after the complete phaseout of the sub- stance in gasoline; ambient monitoring has also been phased out. National greenhouse gas (GHG) emissions are 0.8 MT per capita (including land‑use conversions), 50% of this from energy and transport, 33% from agriculture, 10% from industry, and 7% from solid waste (2000 estimates). The implementation of Montreal Protocol commitments has substantially reduced the consumption of ozone-depleting substances (ODS). No trends in nitrogen oxide (NOx) emissions are discernible from air quality monitoring information. Figure 4 shows the annual consumption of ODS and alternatives.

The high levels of total suspended particulates (TSP) and PM10 in major urban cities can be attributed to suspended dust and vehicle emissions (Table 16). Motor vehicles are required to pass emission tests before they can be registered in NCR and must be tested periodically. But private motor 48 Country Environmental Analysis 2008: Philippines a c c c c a a a — — — — 79 — continued 141 204 198 110 110 130 117 101 127 Mean Annual — — — — — 287 190 346 514 604 711 336 358 444 473 Max 2004 5 5 7 — — 78 21 — — 21 10 — 34 104 118 Min b b b d c c c a a b d 84 87 59 — — — 148 102 108 859 229 183 214 144 312 Mean Annual — — — 658 673 294 136 450 225 334 268 424 714 Max 2003 1,238 1,266 84 77 44 — 15 — — 14 24 11 35 38 14 19 236 Min Location Session Road Jolibee Bldg. City Plaza Bldg. Heroes Tanza San Jose Meycauayan Iba, Saluysoy, Meycauayan Bocaue Wakas, Martires Trece Alangilang Isabel Sta. Barriada San Nicolas

) 3 City/Province g/Nm Baguio City Alaminos City City San Fernando Laoag City City Tuguegarao City San Fernando Bulacan Bulacan Cabanatuan City Bulacan Cavite City Batangas Calapan City Legaspi City Iriga City µ Annual Mean Roadside TSP Levels in Major Cities and Urban Centersin the Philippines, 200–2004 Centersin the Philippines, and Urban Cities Roadside in Major Levels Annual Mean TSP ( Region CAR 1 1 1 2 3 3 3 3 3 4A 4A 4B 5 5 Table 16: Table Chapter 2: Background 49 c c c d a a a c c c a a a a c 13 92 72 93 39 47 97 — continued 185 335 100 237 226 227 117 177 Mean Annual 94 — 731 530 374 232 646 395 198 376 299 301 101 249 285 680 Max 2004 8 70 17 12 15 11 47 14 22 39 — 154 167 175 120 194 Min c c c a b c a a b b 84 92 56 64 — — — — — — 97 212 182 221 220 104 Mean Annual — — — — — — 95 198 394 317 334 336 288 175 262 272 Max 2003 14 55 16 — — — — — — 27 30 42 47 110 125 120 Min Location Panganiban Drive Panganiban Stn. Police Jaro PlazaLa Paz Oportos Residence Baricuatros Res. Canos Residence P & M Bldg. ZCMC Buenavista St. San Jose Rd. Z. Zamboanga E. Complex Fish Port Sasa 3, Purok Laurel P. J. Bangkerohan Agdao City/Province Naga CityNaga lloilo City lloilo City Cebu City Cebu City Cebu City City Tacloban Zamboanga City Zamboanga City Zamboanga City Zamboanga City Zamboanga City Davao City Davao City Davao City Davao City continued Region 5 6 6 7 7 7 8 9 9 9 9 9 11 11 11 11 Table 16 Table 50 Country Environmental Analysis 2008: Philippines c a a a a a 39 99 93 95 96 42 — — — 249 Mean Annual 88 92 — — — 602 151 109 114 185 Max 2004 22 18 — — 87 80 83 — 45 133 Min a b b b — — — — — — 83 92 91 135 Mean Annual — — — — — — 99 190 101 152 Max 2003 — — — 82 — — — 83 45 104 Min Location Nova Tierra Subd. Nova Quirino Ave. 10 Kabantan Km. Inc. Cargil (Phils.), Banga Polomolok Suralla Makilala New Asia = micrograms per normal = micrograms cubic meter. 3 3 City/Province 3 3 Davao City Davao City Davao City General Santos South Cotabato South Cotabato South Cotabato South Cotabato North Cotabato Butuan City 3 continued above 270 µg/Nm above 91–180 µg/Nm 0–99 µg/Nm 181–270 µg/Nm Region 11 11 11 12 12 12 12 12 12 13

— = no data, µg/Nm — = no data, a b c d Air Quality National 2003–3004. Status Report, EMB, Source: Table 16 Table Chapter 2: Background 51

Table 17: Total Mass Emissions in Metro Manila, 2005 (tons per year)

Source TSP PM10 SOx NOx CO Total Stationarya 185.74 — 32.35 12.65 2.60 233.34 Mobile — 32,630.58 2,387.96 12,5918.50 1,165,439.00 1,326,376.04 Area — 95,649.24 113.10 2,345.83 1,304.01 98,412.18

— = no data, CO = carbon monoxide, NOx = nitrogen oxides, PM10 = particulate matter of up to 10 microns, SOx = sulfur oxides, TSP = total suspended particulates. a 2006 data on 1,585 air pollution sources from 3,304 air pollutive firms and establishments. Source: EMB-NCR. vehicle testing centers have not effectively implemented the emission testing procedures. About 20% of the centers have been found to violate government guidelines (EMB 2006). About 233.3 tons per year in total mass emissions from these stationary sources (including TSP, oxides of sulfur and nitrogen, and carbon monoxide) were found in an EMB emission inventory of more than 3,300 establishments in Metro Manila in 2006. According to an emission inventory in Metro Manila in 2005 (Table 17), mobile sources generated around 1.3 million tons/year, and area sources, about 98,400 tons/year. An initial analysis in 2005 showed that the health costs of exposure to

PM10 reduce per capita incomes in Metro Manila, Davao, Cebu, and Baguio by 2.5%–6.1%, or over $430 million in total, yearly—about $140 million from over 2,000 premature deaths, about $120 million from over 9,000 cases of chronic bronchitis, and about $170 million from nearly 51 million cases of respiratory symptom-days in Metro Manila. These costs are 70% higher than those estimated in a similar study for Metro Manila in 1992. But while the impact of pollution on health is no doubt the most com- pelling reason to take action, the non‑health costs—from congestion, loss of productivity, and damage to ecosystems and physical infrastructure—are also significant. One study estimates that in six cities, including Metro Manila, the non-health costs of NOX and SO2 outweigh the health costs. In the case of particulate pollution, however, the health costs are higher. The Metro Manila Air Quality Improvement Sector Development Program (ADB Loan 1663-PHI) in 1998–2007, enabled the Government to implement air quality improvement programs throughout the country (EMB 2006). It designated 15 air-sheds, four of them geothermal; revised emission standards for gasoline-fed and diesel vehicles, and set standards for hydro- carbon emissions from motorcycles and tricycles; and reduced the proportion of aromatics in gasoline from 45% to 35% and benzene from 4% to 2%, 52 Country Environmental Analysis 2008: Philippines both by volume, and the sulfur content of automotive diesel fuel to 0.05% by weight. The improved standards, as well as the phaseout of leaded gasoline, have achieved a modest reduction in ambient TSP concentration in the NCR despite the growing number of motor vehicles. A technical committee created by the Department of Energy (DOE) set standard specifications for diesel and two‑stroke lubricating oil, and for coco‑methyl esters as alternative fuel for diesel or for blending with diesel. The Biofuels Act (2007) (RA 9367) requires at least a 1% blend of bio-diesel in all diesel engine fuels, and at least 5% bio-ethanol (by volume) in all gasoline fuel sold in the country. Other CAA provisions mandate control of pollution from mobile, stationary, and area sources. A considerable number of taxis operating in Metro Manila now use liquefied petroleum gas, and industries are shifting from bunker C oil to low‑sulfur fuel or diesel oil.

Land Resources

Much of the land is susceptible to erosion. While almost half of the land is low‑lying, large areas of the main islands are at higher altitudes. There is substantial soil loss from agricultural practices in the upland areas. Soil loss from annual crop cultivation in the lowlands may also be extensive (ADB 2004a). In addition, intense rainfall can cause severe erosion. Other causes of soil erosion are mining, insufficient cover in degraded forest areas, and road construction.13 Mining industry activities continue to find low acceptance from communities because of the environmental havoc and the displacement of people they cause. Twenty-one percent of the country’s agricultural lands and 36% of non- agricultural lands are moderately or severely eroded. There are regional variations: 38% of Mindanao’s agricultural lands, for example, were moderately or severely eroded in the mid-1990s. Soil erosion has affected the productivity of land,14 limited the rehabilitation or restoration of degraded lands, lowered the quality of surface water, and modified hydrologic conditions by changing land resources and land management. Apart from the opportunity cost of lost earnings from well-managed land, soil erosion has imposed high costs on downstream sectors—roads, bridges, agricultural production areas, settlements, water districts, and others. For example, foregone valued added from rice production was estimated to have increased from $59,000 in 1988 to $64 million in 1997 (both at con-

13 Soil erosion from roads is sometimes ignored in estimates of soil loss and declining watershed integrity in the Philippines. Attention is focused on deforestation. Soil loss from unpaved roads is considered quite high. While there are no data on soil erosion and soil loss in the country, the level of road construction in the country is quite substantial (ADB 2004a). 14 Many of these effects are described in World Bank (2000b, appendix 13). Chapter 2: Background 53 stant 1985 prices). Silting of rivers and lake systems has shortened the life of reservoirs, affecting both hydroelectric power and water supply. Erosion as a primary cause of sedimentation was estimated to cause half of the pollution in Philippine irrigation systems. Soil loss from forestland varies with forest type and status. Unit soil loss from an area subjected to kaingin is 250 times greater than the loss in a primary forest; soil loss in a secondary, degraded forest is about 3.5 times greater. A complete analysis of changes in the composition of forestland and consequent soil erosion through the Philippine Economic, Environmental, and Natural Resource Accounting (PEENRA) System (NSCB 2003) concluded that forestland soil erosion declined by 4% yearly between 1988 and 1997. This decline was attributed to the compensatory effects of reforestation and a drastic stop in the conversion of primary forest to other forestland types because of the logging ban. On the other hand, road building and mining in rural Philippines have increased in the past decade and have had major impact on watershed integrity (ADB 2004a). In the absence of definitive assessments of the impact of changes in forest cover on soil erosion and watershed integrity, whether watershed degradation is worsening is not known for certain. While the rural population has remained relatively constant, land used for agriculture has decreased,15 resulting in little expansion of agriculture land in upland areas. But the negative impact of inappropriate agricultural practices in upland areas on soil erosion is unlikely to have changed much.

Mining and Mineral Resources

Philippine mineral resources, by government estimates, are the fifth richest in the world.16 In 1994, the country had about 7 billion metric tons in metallic mineral reserves and 50 billion metric tons in non-metallic reserves. Copper made up about 72% of metallic mineral resources, and nickel, about 16%. Among the non-metallic minerals, limestone accounted for about 39%, and marble, 29%. The Philippines is also one of the best endowed in chromite resources. Its refractory chromite resource in Zambales province is considered one of the largest in the world (NSCB n.d.[b]). As of mid‑2008, the country had 39 operating mines and more than 2,000 small-scale mines and quarries.

15 As of September 2008, 1.9 million hectares of agricultural public lands (alienable and disposable) all over the country were covered by free patents and homestead patents issued under the DENR–Comprehensive Agrarian Reform Program (CARP). Holders are registering these patents at the Register of Deeds to obtain certificates of title. Through this titling program the DENR aims to provide secure tenure to farmers and landowners to improve their socioeconomic welfare. 16 Philippine Business Leaders Forum Inc. website, www.philippinesforum.com. 54 Country Environmental Analysis 2008: Philippines

For the most part, these mineral resources are still to be fully tapped. Of the 9 million ha of mineral resources (about 30% of the total land area of 30 million ha), less than 0.5 million ha are under exploration or development. The Philippine mineral industry has annual sales of around $1 billion, similar to Malaysia’s and Papua New Guinea’s but lagging behind Indonesia’s $3.6 billion, Chile’s $13 billion, and Western Australia’s $26 billion (MGB 2004). Metals have steadily increased their contribution to total mineral production in peso value, from 44% in 1998 to 73.3% in 2005. Gold had the highest share, at 33.8% in 1998 and 59% in 2005. In 2002, the mineral industry contributed 1.5% of total Philippine exports; by 2005, the contribution had increased to 2.0%. In 2006, the mining sector employed 136,000 employees, 0.4% of total employment in the country. From 2001 to 2005, the mining and quarrying sector contributed between 1.0% (2001) and 1.7% (2005) of GDP. In 2006, its overall contribution to GDP slipped to 1.5%. Sector growth surged in 2002 (51%) and 2003 (16.8%) behind increases in crude oil and natural gas production from the Malampaya Oil Rim Project. (Excluding this project, the sector grew by 21% in 2002 and 13% in 2003.) But from 2005 to 2006, the sector had negative growth, from $1.1 billion to $967 million (both at constant 1985 prices). The mining industry has not picked up despite attractive mineral prospects because of a wide range of factors particularly perceived policy inconsis- tencies and instabilities, especially land‑use conflicts and foreign ownership issues, strong opposition to mining because of its environmental impact, and the lack of domestic capital. The promotion of sustainable mineral resources development, under the DENR Mines and Geosciences Bureau (MGB), nonetheless continues. See Box 2 for a summary discussion of the MTPDP strategies in the mining sector, and Box 5 for the policy agenda of the action plan drawn up by DENR to infuse new vigor into the sector.

Urban Environment

The Philippines is one of the fastest‑urbanizing countries in the world. A World Bank sector analysis17 notes that most urban growth is occurring in low‑density peri-urban areas outside Metro Manila, such as Cavite and Laguna provinces, and in major secondary cities (Metro Cebu and Metro Davao). The urban population is 64% of the total population of 88.6 million (2007). The high population growth rate (2.04 yearly from 2000 to 2007) is not matched by growth in employment opportunities; urban poverty, unemployment, and underemployment are therefore high.

17 www.bln0018.worldbank.org/External/Urban. Chapter 2: Background 55

Box 2: Strategies for the Mining Sector in the Medium-Term Philippine Development Plan 2004–2010 Promote responsible mining that adheres to the principles of sustainable development: economic growth, environmental protection, and social equity. Responsible mining reduces poverty and benefits local and indigenous communities. Launch a major program to revive the mining industry that will revitalize the mining industry and pursue the implementation of responsible mining through the Minerals Action Plan. • Pursue and assist in the development of 18–23 large‑scale mining projects that will bring an estimated $4.0–$6.0 billion in investments, and about 210,000 in direct and indirect employment. • Resolve the issues involving mining accidents in abandoned and idle mine areas. – Address the remaining issues pertaining to the Marcopper Mine Tailing Spill accident. – Construct the final Mabatas tailings dam, covering some 30 hectares. – Assess seven abandoned mines and implement stop-gap measures and rehabilitation of three abandoned mines. • Develop incentive schemes to attract international and local investors in Mt. Diwalwal. – Conduct core drilling within 1.5–2 years to determine the mineable resources of Diwalwal. – Mobilize international and local investors to develop the underground wealth of gold, and employ the tens of thousands of miners who might be given additional incentives of partnership or profit-sharing arrangements.

The population is projected to reach 94 million (60% urban) by 2010, and 128 million (75% urban) by 2030 (Table 18). More than 2 million will be added to the urban population every year. This means that three out of every four individuals will be living in the cities less than 25 years from now. The total population is distributed as follows: 56% in Luzon, 24% in Mindanao, and the remaining 20% in central Philippines (ADB 2007g). Urban population growth, fanned by industrialization,18 exerts pressure on urban infrastructure. According to an ADB study (ADB 2004b), Metro Manila generates 6,700 tons of solid waste daily, only 720 tons of which (11%) is recycled or composted. The rest is hauled to dumpsites,

18 Manufacturing, trade, construction, and energy generation together grew by about 3.6% yearly (at constant 1985 prices) between 1992 and 2006. 56 Country Environmental Analysis 2008: Philippines

Table 18: Urbanization Forecast for the Philippines

Population/Year 2010 2020 2030 Total population (millions) 94.0 111.8 128.1 Urban population (millions) 56.4 76.0 96.1 Rural population (millions) 37.6 35.8 32.0 Level of urbanization (%) 60.0 68.0 75.0 Source: NSCB, Manila, 2006.

illegally dumped on private land or into rivers, creeks, or bays, or burned in the open, adding to water and air pollution. Urban growth is also straining water and sanitation services. Twenty- five million people lack basic sanitation and 13 million lack potable water sources. In the last 15 years, population with access to safe drinking water increased from 57% to 72%. Household water supply connections increased as well, from 26% to 40% nationwide, and are now 58% in urban areas (World Bank 2005b). Annual economic losses from water pollution are estimated at $1.3 billion (World Bank 2003a).

Environmental Spatial Planning

The National Physical Framework Plan (2001–2030), prescribed in the Philippine Constitution of 1987 (sec. 14, art. X) and completed in 2002, has not been used effectively for orderly spatial development. Regional physical framework plans are still largely separate, and even these are not adequately taken into account in regional investment programming. The Local Government Code (1991) (LGC) requires LGUs to prepare and adopt provincial and regional physical framework plans. But LGU capacity for such planning is quite limited. Under the CWA, programmatic environmental impact assessment (EIA) may be made part of local physical framework plans, by agreement between LGUs and the DENR. Compliance would be guided by carrying capacity, based on environmental constraints and opportunities in programmatic areas. Years after the approval of the CWA, however, the role of programmatic EIA in physical framework planning has yet to receive due recognition. An ongoing ADB technical assistance (TA) project through the National Economic and Development Authority (NEDA), now in its second phase, is developing LGU capacity for provincial development and physical framework planning. A European Commission TA is mainstreaming disaster risk reduction in development and physical framework plans. Chapter 2: Background 57

Two spatial planning projects are also ongoing. A $57.2 million loan from the Japan Bank for International Cooperation ( JBIC) under one of those projects is funding the establishment of a national database and a geo-spatial information network, now undergoing review and approval by the Government. The Integrated Geo-Spatial Referencing Facility project ($6.8 million), also supported by JBIC, will provide a common, consistent, and cost‑effective geographic database for DENR, DA, LGUs, and all other users (European Commission 2005). To remedy institutional weaknesses in the coordination of planning through the Housing and Urban Development Coordinating Council (HUDCC) and deal with economic inefficiencies caused by the failure of basic urban services to keep up with demand,19 the MTPDP proposed elevat- ing HUDCC into a Department of Housing and Urban Development to take charge of urban planning, development, and renewal, land-use zoning, housing provision, regulation and finance, and marginal settlement.

Hazardous and Solid Wastes

Hazardous Wastes The Philippines imports various chemicals, primarily for use in production. Initial research yielded limited information about types and quantities, scattered over several government departments. The top three hazardous wastes generated are inorganic, alkali, and organic wastes (Table 19). Fifty percent is exported for disposal (or treatment)20 and the rest is either treated locally or temporarily stored on‑site. Hazardous waste in Metro Manila is projected to rise from 232,000 tons/year in 1995 to 659,000 tons/year by 2010. Industrial firms, lacking proper facilities for segregating or storing hazardous wastes, often commingle these with solid wastes. The Philippines has registered treatment, storage, and disposal facilities for hazardous wastes (19 in or near Metro Manila, 7 in Mindanao, 17 in Northern Luzon, and 43 in Southern Tagalog) (EMB 2008). Other urban and industrialized cities have limited capacity to treat hazardous wastes. Illegal disposal is rampant.

19 The fast-growing housing backlog was projected to be 3.75 million units between 2005 and 2010 (NEDA 2004). 20 The current practice (approved by the DENR) is to export PCB wastes and PCB‑contaminated equipment at a relatively high cost ($4–$9 per kilo, or $4,000–$9,000 per ton) to the United Kingdom or other European countries for treatment through incineration. 58 Country Environmental Analysis 2008: Philippines

Table 19: Chemical Waste Generation and Trade

Generation Export (metric (metric Type of Chemical Waste1 tons/year) tons/year) Plating waste with cyanide 11,233 1,661 Acid wastes 26,900 1,146 Alkali wastes 56,099 43,470 Inorganic chemical wastes 67,756 32,447 Reactive chemical wastes 347 249 Paints, resins, lattices, dyes, adhesives, organic sludge 14,769 12,602 Organic solvent 2,175 1,204 Putrescible/Organic wastes 30,588 12,429 Textile 81 71 Oil 22,549 8,632 Containers 3,499 2,097 Immobilized wastes 516 391 Organic chemicals 16,226 1,426 Pathological/Infectious wastes 15,467 12,526 Asbestos 10,145 9,984 Drug wastes, medicines 1 1 Pesticides 1 1 Total 278,351 140,336 Source: JICA-DENR Study on Hazardous Waste Management in the Republic of the Philippines (Phase 1), Final Report, June 2001.

Not enough research has been done on chemical use and contamination in agriculture, drinking water, soil, and groundwater in the Philippines to identify hot spots and to support stricter waste management policies. A study by Weston International at the former Clark Air Base in Pampanga in August 1997 detected concentrations of the pesticide dieldrin above the drinking‑water quality standard of 0.00003 milligrams per liter at four operational wells and two back-up wells. The dieldrin could not be definitely traced to its source. But it was thought to be a breakdown product of the related pesticide aldrin, which may have been used to control insects on the golf course. The wells containing dieldrin were near or down‑gradient of the golf course. Chapter 2: Background 59

Proof of soil contamination is also limited in the Philippines. Available studies are mostly from the former US military bases. The Asian Regional Research Program on Environmental Technology of De La Salle University unearthed evidence of polychlorinated biphenyl (PCB) releases in soil in certain areas of Clark Air Base. UNDP, the United Nations Industrial Development Organization, and GEF plan to set up a demonstration project for the destruction of waste PCB stockpiles using non-combustion technology. Private companies among the country’s top 1,000 are increasingly adopting voluntary environmental guidelines such as the Philippine Business Charter for Sustainable Development, Responsible Care®,21 or the International Standards Organization (ISO) 14000. Electronic manufacturers in particular, mostly subsidiaries of leading electronic companies in developed countries where environmental laws are strictly enforced, receive regular training from their parent companies in environmental conservation and cost‑effective compliance with environmental requirements. Others are prompted to adopt the guidelines by foreign and locally funded projects like the Metropolitan Environmental Improvement Project and the Industrial Environmental Management Project. These projects showed that environmental improvement is not just a cost factor but also beneficial to the bottom line. Box 3 sums up the MTPDP strategies for dealing with toxic and hazardous wastes.

Solid Wastes The Ecological Solid Waste Management Act (ESWMA) (RA 9003) was approved in 2001 but its implementation has been slow, despite the creation of the National Solid Waste Management Commission (NSWMC) to oversee its implementation. LGUs are primarily responsible for implementing the ESWMA. According to the national solid waste management framework prepared in 2004 by the NSWMC, the country generated about 19,700 tons per day of garbage in 2000, or about 7.2 million tons per year. An increase to more than 10 million tons per year is expected by 2010. The NSWMC reported in 2007 that Metro Manila produces about 7,100 tons/day of waste, about 6% more than estimated in the ADB-funded Metro Manila Solid Waste Management study in 2002 (TA 3848-PHI). The

21 A global chemical industry program of cooperation for the continuous improvement of the health, safety, and environmental performance of chemical products and processes. The Samahan sa Pilipinas ng mga Industriyang Kimika (Chemical Industries Association of the Philippines) subscribes to the Responsible Care doctrine and commits the whole organization to promote, monitor, and support its members in implementing its initiatives. 60 Country Environmental Analysis 2008: Philippines

Box 3: Strategies for Hazardous Waste in the Medium-Term Philippine Development Plan 2004–2010 • Establish a management system and facilities for toxic and hazardous wastes. • Complete the inventory of toxic and hazardous wastes. • Complete the registration of all establishments using toxic and hazardous wastes and closely monitor 500 companies using cyanide, mercury, asbestos, and other highly toxic chemicals like the polychlorinated biphenyls (PCBs). • Initiate the establishment of the first facility for the treatment of toxic and hazardous wastes, especially for those located in economic zones. • Establish a mechanism for the retrieval and disposal of millions of cell‑phone batteries by 2007. • Pursue efficient health‑care waste collection in 197 accredited hospitals in Metro Manila and increase health‑care waste collection and treatment outside Metro Manila by 40%. • Conduct clean-up of former military bases in region 3 (about 50% of identified contaminated sites).

waste is collected by the city in only 3 of the 17 LGUs (Valenzuela, Pateros, and Marikina); in the other LGUs waste collection is contracted out to the private sector. Metro Manila has no open dumpsites.22 The rehabilitated Payatas (Quezon City) controlled disposal facility, a registered project under the Clean Development Mechanism (CDM), is now recovering methane and produces about 116,339 tonnes of carbon dioxide equivalent (tCO2e) in certified emission reductions per year. The country has 16 sanitary landfills and is building an additional 19. These landfills have a capacity of about 9,300 tons per day. Two hundred eleven more sanitary landfills are proposed and are expected to be operating by 2010. A JICA-funded study on the recycling industry in the Philippines was done in 2007 for the Department of Trade and Industry–Board of Investments. The department is mandated under the ESWMA to develop the market for recyclable materials. A master plan was developed for disseminating information about domestic recyclable materials and recycling industries to stakeholders, establishing proper segregation at source and strong, sustainable links between the source and the final receiver, and introducing incentives (financial and nonfinancial) to promote recycling and other support activities.

22 But there are 713 open dumpsites and 271 controlled dumpsites elsewhere in the country, most of them in region 7 (Central Visayas). Chapter 2: Background 61

The study also produced recycling guidelines for waste generators, dealers of recyclable materials, and recyclers, to maximize the domestic use of recyclable materials. Creative recycling programs are in operation around the country. The Philippine Business for the Environment (PBE), with a leading commercial mall and the DENR, has organized a once-a-month “trash‑to‑cash” recycling market in branches of the mall. A residential subdivision south of Manila offers discount stubs in exchange for waste plastic and paper. The stubs can be used at a nearby McDonald’s or to pay the monthly association dues of residents. Information about recycling technologies is available on the website of the Solid Waste Management Association of the Philippines, a nonprofit membership organization of solid waste practitioners from LGUs, national government agencies, NGOs, and the academe. The association also assists LGUs in particular in the technical aspects of solid waste management through training, the preparation of solid waste management programs, and waste analysis and characterization.

Climate Change

The Philippines was among the first countries to respond to the challenges posed by climate change. The Inter-Agency Committee on Climate Change, created by the Government in May 1991, coordinates activities and proposes policies related to climate change, and prepares the Philippine position at United Nations Framework Convention on Climate Change (UNFCCC) negotiations. In March 2000, the Philippines submitted to the UNFCCC its Initial National Communication on Climate Change, containing comprehensive information about the country’s compliance with its commitments and its vulnerability to climate change.23 According to the report, the Philippines released 100,738 kilotons of CO2 equivalent into the atmosphere in 1994. This total represented the combined GHG emissions from the energy (49% of the total), agriculture (33%), industry (11%), and wastes (7%) sectors, and from the net uptake (sink) of GHGs from the land-use change and forestry (LUCF) sector.24 GHG emissions were projected to increase by almost 94% to 195,091 kilotons of CO2 equivalent by 2008, for an annual growth rate of

23 The Government is now preparing the Second National Communication, with the assistance of UNDP. 24 The national GHG total minus the LUCF contribution is 100,864 kilotons of CO2 equivalent. Activities and processes associated with the LUCF sector are estimated to sequester about

126 kilotons of CO2, a measly 0.1% of the national total. 62 Country Environmental Analysis 2008: Philippines about 4.8%. Because various subsectors were held constant at 1994 levels, this projection may be a conservative one (DENR 2000). Several studies in the Philippines on a wide range of climate‑change topics—epidemiological studies, sea-level changes, tropical cyclone intensity changes, and vulnerability assessments, among others—have been completed, are ongoing, or are being planned. The Government’s Philippine Atmospheric Geophysical and Astronomical Services Administration is in the forefront of systematic observation of climate and weather patterns in the country. The Government also continuously provides the policy framework and road map to guide the fulfillment of its Kyoto Protocol commitments. Plans and programs in this regard, as stated in the Initial National Communication on Climate Change, include sustainable development programs; systematic observation and research projects; education, training, and public awareness programs; vulnerability assessment of major sectors and other sectors; adaptation strategies; and mitigation strategies. After the Kyoto Protocol was ratified in 2003, DENR was designated as the national authority for CDM, responsible for approving the country’s CDM projects. By February 2008, 37 projects with total estimated certified emission reductions of 995,940 tCO2e per year had been approved (Figure 5). Twenty-eight were biogas projects (animal waste, wastewater treatment, rice husk), two were hydropower and composting projects, and the rest were wind power, geothermal power, waste/gas/heat use, landfill gas recovery and use, and blended cement projects. Sixteen projects, with 481,863 tCO2e per year in certified emission reductions, had been registered with the CDM executive board. As of March 2008, the country ranked eighth globally in the number of projects registered.

Renewable Energy

As of December 2007, the country’s total installed generating capacity was 15,937 megawatts (MW). Coal-fired power plants, the majority of them in the Luzon grid, had the largest share at 26.4% (4,213 MW). Oil-based power plants accounted for 22.7% (3,616 MW); hydroelectric power plants, the main source of electricity in the Mindanao grid, for 20.6% (3,289 MW); natural gas–fired power plants in the Luzon grid, for 17.8% (2,834 MW); geothermal power plants, mostly in the Visayas grid, for 12.3% (1,958 MW); and other forms of renewable energy such as wind and solar, for only 0.2%.25 Aggregate dependable capacity in 2005 was 13,595 MW. This total was expected to reach 13,805 MW by 2006 and to add 3,917 MW by 2015—

25 www.doe.gov.ph/EP/Powerstat.htm. Chapter 2: Background 63

Figure 5: CDM Projects with Letters of Approval, February 2008

Methane avoidance Landfill gas recovery (composting), 2 (5%) and utilization, 1 (3%) Blended cement, 1 (3%) Waste gas/Heat utilization, 1 (3%) Biogas (animal Hydropower, 2 (5%) waste), 16 (43%)

Geothermal power, 1 (3%)

Wind power, 1 (3%)

Biomass (rice husk), 2 (5%)

Biomass (bagasse), 2 (5%)

Biogas (wastewater treatment), 8 (22%)

CDM = Clean Development Mechanism. Source: www.cdmdna.emb.gov.ph

517 MW from committed power projects, and 3,400 MW from indicative power projects—to meet power requirements. The committed power projects include renewable energy projects like the Northern Luzon Wind Power Project, Phases I and II, which has a combined capacity of 38.3 MW; the 49 MW Northern Negros Geothermal Project; and the 20 MW Nasulo Geothermal Project. The indicative power projects include Talisay Bioenergy, Cabalian Geothermal, Dauin Geothermal, Villasiga Hydropower, Tagoloan Hydropower, Sibulan Hydropower, and Mindanao 3 Geothermal Project (Department of Energy 2006). DOE foresees renewable energy growing by an average of 2.4% yearly in absolute terms in 2003–2013 and providing up to 40% of the country’s primary energy requirements. Biomass, micro-hydro, solar, and wind are expected to be the largest contributors, with an average share of 27.5%. Hydro and geothermal will make up the balance and continue to be a significant source of electric power.26

26 www.doe.gov.ph/ER/Renergy.htm. 64 Country Environmental Analysis 2008: Philippines

An alternative scenario sets higher targets for renewable energy’s contribution to installed generating capacity. These targets assume improved programs and strategies, higher production, market-based industrial compe- tition, and the availability of new international financing schemes like CDM. Renewable energy–based capacity is expected to double to 9,147 MW by 2013. This means that more renewable energy–fueled power plants must be commissioned by 2013 to make up the difference.27

Environmental Emergencies

The Philippines has experienced major environmental emergencies in the past 5 years, some with long-term effects. Efficient implementation and enforcement of related laws could have prevented or mitigated these natural disasters.

Guimaras Oil Spill. The worst oil spill in the country’s history occurred in August 2006, when a motor tanker sank in Panay Gulf off Guimaras province, spilling more than 50,000 gallons of oil into the sea and polluting more than 1,000 ha of mangroves and 26 ha of the Taclong Island Marine Reserve. The environmental disaster affected 239 kilometers of coastline and dam- aged mangrove swamps, seaweed plantations, and coral reefs with important diversities. Marine scientists recorded a 65% drop in fish abundance in the surrounding waters.28 The incident not only created a major environmental disaster but also revealed the weakness of the country’s response to environmental emergencies because of lack of equipment, technical expertise, coherent policies, and institutional capacity and coordination.

Flooding and Landslides. In November 2004, flooding and landslides caused by typhoon in the provinces of Quezon, Aurora, and Nueva Ecija, killed nearly 1,000 persons and affected about 3 million others. Another typhoon in December 2004 triggered massive floods in northern and central Philippines, affecting an estimated 240,000 persons. Then in February 2006, after days of heavy rainfall, a landslide struck the village of Guinsaugon near the town of St. Bernard in Southern Leyte province, in the eastern Visayas. More than 1,000 went missing and 139 died. The landslide, estimated to be up to 9 meters deep in some areas and covering about 3 km2 (1.15 square miles), blocked the tributaries of a major river and caused flooding in nearby areas.

27 www.doe.gov.ph/ER/Renergy.htm. 28 Philippine Daily Inquirer, 3 November 2007. Chapter 2: Background 65

The nationwide forest program launched by the Development Bank of the Philippines (DBP) in April 2005, in partnership with people’s organizations, state universities and colleges, and provincial and municipal LGUs, should make such catastrophic events less likely. The program supports and encourages the reforestation of open areas by planting high‑value fruit trees and other useful plant species, rehabilitates coastal areas by planting mangroves, and establishes tree parks to offset air pollution. In less than 2 years, the program had started 18 forest projects and planted useful plant and tree species on about 4,000 ha, providing better livelihood opportunities for some 2,500 poor families. A TA project of the Government of Japan in September 2006 studied selected priority flood‑risk areas throughout the Philippines and prepared flood mitigation plans. Multi-hazard mapping has also been started by the Government with UNDP funding, to guide planning and evacuation in high‑risk areas, and measures to prevent non-structural disasters have been initiated by communities in the province of Camiguin. MTPDP strategies for forestalling such natural disasters and coping with their occurrence are summarized in Box 4.

Box 4: Strategies for Environmental Emergencies in the Medium-Term Philippine Development Plan 2004–2010 Mitigate the occurrence of natural disasters to prevent the loss of lives and properties.

Nonstructural measures • Complete the geo-hazard mapping of the remaining 13 regions. • Conduct soil stability measures (e.g., reforestation and planting in river banks) for landslide‑vulnerable areas. • Ensure integration of disaster preparedness and management strategy in the development planning process at all levels of governance. This will be done through the following activities, among others: periodic risk assessments, updating of land-use policy based on the assessment, conduct of disaster management orientation and training among officials of local government units (LGUs) and concerned local bodies, institutionalization of community-based mechanisms for disaster management (e.g., inclusion of legitimate disaster management organization in disaster coordinating councils), and advocacy for the Strengthening the Philippine Disaster Management Capability bill.

continued 66 Country Environmental Analysis 2008: Philippines

Box 4 continued

Structural measures

• Keep at the optimum the conveyance capacities of river channel floodways, drainage canals, esteros through riverbank protection, dredging or desilting, observance of river easements, relocation of informal settlers, proper disposal of garbage, and efficient maintenance in coordination with LGUs. • Provide adequate flood control and drainage facilities in all flood and sediment disaster–prone areas to mitigate flooding, and rehabilitate and improve facilities. The priority flood management projects are as follows: – Mt. Pinatubo Hazard Urgent Mitigation II – Mt. Pinatubo Hazard Urgent Mitigation III – Iloilo Flood Control – Lower Agusan Flood Control Project Stage 1, Phase 2 – Bicol River Basin and Watershed Management – Agno and Allied Rivers Flood Control – Kalookan-Malabon-Navotas-Valenzuela (KAMANAVA) Flood Control – Metro Manila Flood Control Project–West of Manggahan Floodway – Pasig–Marikina River Channel Improvement Project Phase II – Cagayan River Flood Control Project – Panay River Flood Control Project – Lower Cotabato River Flood Control Project

Box 5: Policy Agenda of the Minerals Action Plan • In recognition of the critical role of investments in the minerals industry for national development and poverty reduction, provide support mechanisms for a sustained mineral exploration program (including simplified procedures for the grant of mining tenements, responsive research and development priorities, and capability building for industry manpower). • Institute clear, stable, and predictable investment and regulatory policies to facilitate investments in mining, leading to a prosperous minerals industry. • Pursue value addition as a means of optimizing benefits from minerals by developing downstream industries to achieve greater productivity and efficiency. • Promote small‑scale mining as a formal sector of the minerals industry and as part of the development initiative for both downstream and upstream industries.

continued Chapter 2: Background 67

Box 5 continued

• Adopt efficient technologies to ensure the judicious extraction and optimum use of nonrenewable mineral resources to enhance sustainability. • Make the protection of the environment a paramount consideration in mining operations, and include mitigation and progressive rehabilitation measures as integral components. Support decommissioning and final mine rehabilitation with the most appropriate environmental surety. • Safeguard the ecological environmental sustainability of areas affected by mining operations (including biodiversity resources and small island ecosystems) to protect public welfare, safety, and environmental quality. Protect the rights of affected communities (including the rights of indigenous cultural communities, especially the requirement to obtain free and prior informed consent). • Pursue mining operations within the framework of multiple land use and sustainable use of mineralized areas. • Accord top priority to the remediation and rehabilitation of abandoned mines and sites to address the negative impact of past mining projects. • Equitably share the economic and social benefits derived from mining among the various units of government as well as the affected communities. • Vigorously pursue sustained information, education, and communication campaigns for the minerals industry, jointly with industry stakeholders, to enhance public awareness and respect for the rights of communities, and reach informed decisions on mining and related projects at both the national and the local levels.

Chemical Spills. A hazardous waste transporter and the plastic manufacturing company whose chemical waste it was dumping into the Marilao River in Bulacan province were charged for violating the Toxic Substances and Hazardous and Nuclear Wastes Act (RA 6969) and Provincial Environmental Ordinance PO 95-01. Untreated domestic and industrial wastes from refin- eries, jewelry makers, tanneries, piggeries, and other manufacturing plants make the Marilao River one of the country’s dirtiest rivers, according to EMB monitoring reports. ADB is supporting a pilot activity to monitor water quality along the river and to minimize pollution by working with the municipalities of Marilao, Meycauayan, and Obando and the provincial government of Bulacan. With JICA funding, EMB is also working to demarcate the Marilao–Meycauayan River as a water quality management area (WQMA) under the CWA. In February 2006, a chemical spill occurred in a school in Parañaque City when a student accidentally opened a beaker containing mercury, 68 Country Environmental Analysis 2008: Philippines exposing about 35 other students to toxic vapor. The problem pointed to the inadequacy of the emergency response, and the lack of capacity to monitor mercury and to clean up and decontaminate the site. School authorities were also largely unaware of the hazards of mercury and other toxic chemicals. The clean-up was costly and required the help of the United States Environmental Protection Agency.

Fish Kill. In 2002, the largest fish kill reported in the country occurred in Pangasinan. Total damage was estimated at $8.2 million. Before the incident, there were recorded increases in ammonia (by 110%), nitrite (30%), nitrate (25%), phosphate (400%), TSS (222%), and chlorophyll A (140%) in area surface waters, as a result of the expansion of mariculture activities. Another fish‑kill incident took place in Dalipuga, Iligan, that same year. In 2003, fish kill in Ilagan, Isabela, resulted in about $106,000 in damage (EMB 2007a). These incidents showed the Government’s institutional weaknesses in responding to environmental emergencies. Besides being short of manpower and financial resources, it lacks proper response and coordination procedures.

Regional Environmental Concerns

Even as the country continues to focus on local environmental issues and problems, it is also active in regional environmental initiatives through the Association of Southeast Asian Nations (ASEAN), the Brunei Darussalam– Indonesia–Malaysia–Philippines East ASEAN Growth Area (BIMP- EAGA), and initiatives like the Sulu-Sulawesi marine eco-region, the Heart of Borneo, and the Coral Triangle Initiative. In February 2001, the ASEAN Working Group on Multilateral Environmental Agreements collaborated with the United Nations University, the Global Environment Information Centre, and UNEP on a case study to look into the possibility of synergies and coordination among multilateral environmental agreements. The countries are sharing experiences in preparing national implementation plans, adopting appropriate technologies for risk management and emergency response, establishing a proper institutional and legal framework for enforcement, increasing public awareness, and identifying capacity building needs. The BIMP-EAGA cluster on natural resources is promoting cooperation in ecotourism; environmental awareness, and environmental resources development and conservation; forest development and conservation; forest fire management; policy development and implementation; research and development, and information and technical exchange; and human resources development. Chapter 2: Background 69

Regulatory and Institutional Framework

Policy and Regulatory Framework

The Government’s activities in ENR management are guided by the Philippine Environmental Policy (1977) (Presidential Decree [PD] 1151), the Philippine Environment Code (1977) (PD 1152), the Philippine National Strategy for Sustainable Development (1989), and the National Action Plan for Sustainable Development (1996) (Philippine Agenda 21). The elements of Philippine Agenda 21 are summarized in Box 6.

Box 6: Elements of Philippine Agenda 21 Philippine Agenda 21 (PA 21) is the country’s blueprint for sustainable development. It describes a path for individuals, families, households, and communities, and an action plan for each ecosystem (coastal/marine, freshwater, upland, lowland, and urban) and across ecosystems in consideration of the interaction of the various lifescapes and landscapes found in them. The path is grounded on respect and active advocacy for the empowerment of various groups in the society to manage the economy, critical resources, society and culture, politics and governance, and foreign relations. PA 21 departs from traditional development thinking that emphasizes sector- based and macro concerns. It promotes harmony and achieves sustainability by emphasizing: • A scale of intervention that is primarily area-based; • Integrated island development approaches where applicable, in recognition of the archipelagic character of the Philippines; and • People and the integrity of nature. Because basic sectors have an important role to play in achieving equity and managing the ecosystems that sustain life, PA 21 promotes the strengthening of the roles, relationships, and interactions between and among stakeholders in government, civil society, labor, and business. PA 21 envisions a better quality of life for all Filipinos through the development of a just, moral and creative, spiritual, economically vibrant, caring, diverse yet cohesive society characterized by appropriate productivity, participatory, and democratic processes, and living in harmony and within the limits of the carrying capacity of nature and the integrity of creation. PA 21 was adopted on 26 September 1996, with the issuance of Memorandum Order 399 which identified the roles of the Philippine Council for Sustainable Development and each sector in the operationalization of PA 21. The action agenda is based on the imperatives of the current national situation and emerging landscape for sustainable development.

continued 70 Country Environmental Analysis 2008: Philippines

Box 6 continued

PA 21 is a dynamic document that will continue to evolve as new challenges and opportunities emerge. Local Agenda 21. PA 21 emphasizes the importance of localization— the formulation of a local sustainable development action agenda, and the establishment of local sustainable development councils to implement the agenda—as a strategy for its implementation. PA 21 sees that localization will ensure that sustainable development takes root in each region, province, city, and municipality. On 25 January 1999, Memorandum Order No. 47 was issued by the Office of the President to strengthen the operationalization and localization of PA 21 and to monitor its implementation. A number of regions have already formulated their own Local Agenda 21, serving as the region’s guide and springboard for the formulation by the local governments, regional line agencies, and all other entities of their respective sustainable development agendas. Business Agenda 21. In 1998, the Philippine Business for Environment was commissioned to consolidate the various medium‑ and long-term initiatives of industry associations into an integrated plan, to be called Philippine Business Agenda 21 (BA 21). This was under the Private Sector Participation in Managing the Environment (PRIME) project of the Philippine Government. BA 21 was completed and released in May 2000. Source: http://pcsd.neda.gov.ph.

Major Legal Instruments The commitment of the Government to environmental protection and ENR management is expressed in a comprehensive legal and regulatory regime for the sector.29 The following major ENR laws were passed in previous decades: the Fisheries Code (1998), the Forestry Code (1975), the Water Code (1976), the Pollution Control Law (1976), the Philippine Environmental Impact Statement System (1978), the Toxic Substances and Hazardous and

29 Environmental laws passed in the 1970s (under martial law) took the form of presidential decrees (PDs). After martial law, other laws, mostly in the form of republic acts (RAs), were passed. Government departments issue procedures and policies as authorized under department administrative orders (DAOs). The President’s Office also issues policy directions and administrative orders through executive orders (EOs). Chapter 2: Background 71

Nuclear Wastes Control Act (1990) (RA 6969), the NIPAS Act (1992), the Comprehensive Agrarian Reform Law (1987), the Indigenous Peoples Rights Act (1997), the Clean Air Act (1999) (RA 8749), the Agriculture and Fisheries Modernization Act (1997), and the Philippine Mining Act (1995). Major ENR laws in the past 10 years include the Ecological Solid Waste Management Act (2000) (RA 9003), the Wildlife Resources Conservation and Protection Act (2001) (RA 9147), the National Caves and Cave Resources Act (2001) (RA 9072), the Public Land Act (2002) (RA 9176), the Clean Water Act (2004) (RA 9275), and the Biofuels Act (2006) (RA 9367). Major ENR laws and regulations are listed in Appendix 2. The Local Government Code (LGC) (RA 7160), although not an ENR law, has provisions pertinent to ENR laws and regulations. It delegates to provincial and municipal LGUs certain environmental protection functions of DENR including the adoption of forestland conservation measures, the preparation and approval of environmental protection ordinances and codes, the review of land-use plans and zoning ordinances, and the creation of ENR offices. The LGC also requires all municipalities to rationalize their land management plans and integrate them into the comprehensive land‑use plan (CLUP) for their locality. In 1992, DENR issued Administrative Order 30 prescribing guidelines for the transfer and implementation of DENR forest management functions. Six years later, DENR, DILG, and the LGUs jointly released a manual of procedures for the devolution of forest management functions and stronger partnership between the LGUs and the DENR.

Major Environmental and Natural Resources Plans and Programs The sector or agency strategies and plans for ENR management and protection include the National Biodiversity Strategy and Action Plan (1997) and its 2002 update, the Philippine Biodiversity Conservation Priority-Setting Program (2001), the Key Biodiversity Areas approach, the National Forestry Action Plan (1995), the Master Plan for Water Resources Management (1998), the National Air Quality Improvement Framework and Action Plan as part of the implementing rules and regulations of CAA (1999), the Renewable Energy Policy Framework (2003), the National Implementation Plan for the Stockholm Convention on Persistent Organic Pollutants (2006), the National Integrated Coastal Management Program (2006), and the River Basin Management and Development Master Plan (2008). Other sector or agency strategies and plans are the IWRMF and the IWQMF, CWA requirements slated for adoption; the medium-term Integrated Archipelagic Development Plan to be prepared as part of the implementation of the Philippine sustainable archipelagic development framework; and the Framework Plan for Environment and Natural Resources 72 Country Environmental Analysis 2008: Philippines

Management. The CWA requires two other major programs: a National Sewerage and Septage Management Program (NSSMP), and a National Research and Development Program for the Prevention and Control of Water Pollution. NSSMP preparation was initiated by the Department of Public Works and Highways (DPWH), through an interagency committee under the Local Waterworks Utilities Administration (LWUA), but the research and development program has not been started. Executive orders (EOs) signed by the President include EO 318 (Promoting Sustainable Forest Management in the Philippines) (2004), updating the Revised Forestry Code of 1975;30 EO 533 (2006), providing for the adoption of integrated coastal management (ICM) as a national strategy and the development of a national ICM program; EO 510 (2006), creating the River Basin Control Office (RBCO) under the DENR; EO 578 (2006), establishing the national policy on biodiversity; and EO 406 (1997), creating the PEENRA system. DENR priorities follow the major government frameworks, particularly MTPDP, the Philippine Strategy for Sustainable Development the President’s 10-Point Agenda, and the MDGs.

International and Regional Commitments The Philippines has signed international and regional environmental agreements on biodiversity, hazardous chemicals and pesticides, ODS, persistent organic pollutants, hazardous wastes, climate change, trade, and the environment (Box 7) and has fulfilled its initial obligations through donor financing. The DENR is the focal point for these international commitments: the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal (1989), the Montreal Protocol on Substances that Deplete the Ozone Layer (1987), UNFCCC (1994), the Rotterdam Convention on Prior Informed Consent (2004), the International Tropical Timber Agreement (1983), the Convention on Biological Diversity (1992), CITES (1973), the Convention on the Conservation of Migratory Species of Wild Animals (1983), the Ramsar Convention on Wetlands of International Importance (1971), and the Convention Concerning the Protection of the World Cultural and Natural Heritage (World Heritage Convention) (1972).

30 EO 318 cites the following guiding principles: delineation, classification, and demarcation of stateland forests; holistic, sustainable, and integrated development of forestry resources; community-based forest conservation and development; incentives to enhance private investments, economic contribution, and global competitiveness of forest-based industries; proper valuation and pricing of forestry resources and financing of SFM; and institutional support for SFM. Chapter 2: Background 73

Box 7: International and Regional Environmental Agreements

Convention Date Ratified Biodiversity 1972 World Heritage Convention 1972 1992 Convention on Biological Diversity (CBD) October 1993 1973 Convention on International Trade in Endangered August 1981 Species of Wild Fauna and Flora (CITES) 1979 Convention on the Conservation of Migratory March 1993 Species of Wild Animals (CMS) 1971 Convention on Wetlands (Ramsar Convention) November 1994 2000 Cartagena Protocol on Biosafety May 2000 2004 Sulu-Sulawesi Marine Eco-region (SSME) 2004 Conservation Plan Marine Affairs 1982 United Nations Convention on the Law May 1984 of the Sea (UNCLOS) International Convention for the Prevention 1973, 1978 of Pollution from Ships (MARPOL) Global Climate Montreal Protocol for Phaseout of Ozone-Depleting March 1991 Substances Vienna Convention 17 July 1991 London Amendment August 1993 United Nations Framework Convention on Climate August 1994 Change Kyoto Protocol April 1998 United Nations Convention to Combat Desertification 10 February 2000 Hazardous Wastes and Materials Basel Convention on the Control of Transboundary October 1993 Movement of Hazardous Wastes and their Disposal Stockholm Convention on Persistent Organic May 2001 Pollutants Rotterdam Convention on the Prior Informed Consent September 1998 Procedure for Certain Hazardous Chemicals and Pesticides in International Trade International Cultural and Historical Resources Convention Concerning the Protection of the World May 1985 Cultural and Natural Heritage

continued 74 Country Environmental Analysis 2008: Philippines

Box 7 continued

Convention Date Ratified Forestry International Tropical Timber Agreement November 1983 ASEAN Regional Agreements on Transnational Issues Cebu Resolution on Sustainable Development 2006 Yangon Resolution on Sustainable Development 2003 ASEAN Agreement on Transboundary Haze Pollution 2002 Jakarta Declaration on Environment and Development 1997 Bandar Seri Begawan Resolution on Environment and 1994 Development Singapore Resolution on Environment and 1992 Development The Kuala Lumpur Accord on Environment and 1990 Development Jakarta Resolution on Sustainable Development 1987 Agreement on the Conservation of Nature and Natural 1985 Resources ASEAN Heritage Parks and Reserves 1984 (reiterated in 2003) Bangkok Declaration on the ASEAN Environment 1984 Manila Declaration on the ASEAN Environment 1981 ASEAN Working Groups on Environment Working Group on Multilateral Environmental Agreements Working Group on Nature Conservation and Biodiversity Working Group on Coastal and Marine Environment Working Group on Environmentally Sustainable Cities

The Basel Convention recognizes that the transport of hazardous wastes should conform to relevant international conventions. It also requires “environmentally sound disposal” of hazardous wastes (RA 6969, RA 8749). As of 2007, the EMB had registered about 6,929 industries and 825 hospitals as hazardous waste generators (HWGs). The Montreal Protocol calls for a 50% reduction in chloroflourocarbons (CFCs) by 2000 and a complete phaseout by 2010 (Figure 6 shows the pattern of CFC consumption in the country). It also imposes measures to control the manufacture, export, and import of ODS. Compliance with this international commitment is prescribed in RA 6969 and RA 8749. As of 2006, imports of Chapter 2: Background 75

Figure 6: CFC Consumption, 1995–2005

4,000

3,500 3,424.92 2,906.31 3,000 3,029.37 3018 3018 3018 3018 3018 3018 2,637.63 2,500 2,090.79 2,049.3 2,036.59 2,000 1,485.34 1,500 1,422.4 1509 1509 1,263.39

1,000 1,049.5

500 453 453 453

0 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Total CFCs Montreal Protocol CFC = chlorofluorocarbon. Source: Environmental Management Bureau, Department of Environment and Natural Resources. substances with ozone-depleting potential (ODP) had been reduced by 55% of the baseline level to 1,509 ODP MT. UNFCCC hopes to “stabiliz[e]…greenhouse gas concentrations in the atmosphere [to] prevent dangerous anthropogenic interference with the climate system.” In the Philippines this objective is being managed through RA 8749. CDM, established under article 12 of the Kyoto Protocol, is being implemented in the Philippines through the DENR. The Philippines, a founding member of ASEAN, helped formulate the ASEAN Institutional Framework for Environmental Cooperation. It is also a member of the ASEAN Senior Officers on Environment, which meets yearly to plan, implement, and monitor regional environmental programs and activities. Participants at the 10th ASEAN Ministerial Meeting on the Environment in November 2006, among other things, launched the Third ASEAN State of the Environment Report 2006; expressed full support for the promotion of biodiversity conservation by the ASEAN Centre for Biodiversity, hosted by the Philippines; agreed to speed up the signing of the ASEAN Framework Agreement regarding access to biological and genetic resources and equitable sharing of the benefits from their use; and recognized the importance of strengthening national and regional efforts to enforce environmental laws against the illegal trade in wildlife, illegal logging, and other issues. 76 Country Environmental Analysis 2008: Philippines

The Philippines, through the DENR, also hosts the UNDP regional program Partnerships in Environmental Management for the Seas of East Asia (PEMSEA), which has evolved from a regional project into a regional operating mechanism since it started in 1994. Another regional cooperation network, BIMP-EAGA, was launched in Davao City in March 1994 to realize socially acceptable and sustainable economic development leading to full participation in ASEAN growth. To increase trade, investments, and tourism in the subregion—its immediate goal—it is facilitating the movement of people, goods, and services and the development of vital infrastructure, and coordinating the management of ecosystems and common resources for sustainable development. An ADB investigative study in 1996 identified a wide range of economic complementation opportunities, which could transform BIMP-EAGA into a major des- tination in ASEAN for investments in agro-industry, natural resource–based manufacturing, and tourism. The study produced a development strategy with more than 150 policy, program, and project initiatives to enable the subregion to achieve its full potential. The Coral Triangle Initiative (CTI) addresses concerns related to the sustainable development of coastal and marine resources and food security in six countries—Indonesia, Malaysia, Papua New Guinea, the Philippines, the Solomon Islands, and Timor-Leste. Comprising areas with 500 or more species of coral,31 53% of the world’s coral reefs, 3,000 fish species, and the greatest extent of mangrove forests of any region in the world, the Coral Triangle, sometimes referred to as the “Amazon of the Seas,” is the epicenter of marine life abundance and diversity on the planet. The CTI plan of action was approved by the six countries in May 2009 in Manado, Indonesia. As executing agency for the Global Environment Facility (GEF) ADB is supporting CTI national and regional action plans by providing regional TA ($12.1 million for Coastal and Marine Resources Management in the Coral Triangle, and $1.2 million for Enhancing Regional Cooperation and Knowledge Sharing) and by mainstreaming biodiversity concerns aligned with CTI objectives in the forthcoming Integrated Natural Resource Management Project (GEF grant of $3.5 million) and Agusan River Integrated Basin Management Project (GEF grant of $3.5 million). Poor donor coordination and replication of successful donor-driven projects are long‑standing concerns despite all these high-level engagements.

31 Some areas have 600 species, or more than 75% of all known coral species. Chapter 2: Background 77

Institutional Framework

Department of Environment and Natural Resources DENR, through EO 192, the 1987 act reorganizing the department, is the primary government agency responsible for the conservation, management, development, and proper use of the country’s biological resources, natural physical endowments, and major natural assets. Among other functions, it licenses and regulates all natural resources use; manages protected areas; assesses environmental impact; controls pollution and decides pollution cases; manages toxic chemicals and hazardous wastes; settles mining conflicts; conducts ecosystems research and technology transfer; carries out information, education, and communication campaigns; and implements international and regional ENR agreements. The various laws on ENR management (see Policy and Regulatory Framework section above), including international agreements, are the legal sources of the DENR mandate. Four DENR bureaus—FMB, the Land Management Bureau, the Ecosystems Research and Development Bureau, and PAWB—draft policies, set standards, and provide technical services. EMB was made a line bureau under the CAA (1999), while the Mines and Geosciences Bureau (MGB) became a line bureau through the Philippine Mining Act (1995).32 The agencies attached to DENR are the Laguna Lake Development Authority (LLDA), NAMRIA, the National Resources Development Corporation, the Natural Resources Mining Development Corporation, NWRB, and the Philippine Forest Corporation. DENR also has two specialized offices, the Coastal and Marine Management Office and RBCO. Sixteen regional offices, one for each of the 16 administrative regions except ARMM implement ENR laws, policies, plans, programs, projects, rules, and regulations. Provincial ENR officers (PENROs) in the capital towns of all provinces and the community ENR officers (CENROs) under them (except in ARMM, which has its own PENROs) are part of the DENR regional offices. There are 73 PENROs, one for almost every province, and 180 CENROs, each covering several municipalities in provinces with PENROs.

32 The passage of the Mining Code in 1995 gave MGB direct charge of the administration and disposition of mineral lands and mineral resources, and the conduct of geological, mining, metallurgical, chemical, and other research as well as geological and mineral exploration surveys. MGB regional directors gained exclusive jurisdiction over the safety inspection of all mining installations. EMB, on the other hand, far from being transformed into a line bureau, continues to implement the same laws and regulations, and has undergone little change in structure and staffing pattern. 78 Country Environmental Analysis 2008: Philippines

Box 8 presents the mandates and broad functions of the DENR bureaus, attached agencies, and offices;Box 9, the programs and projects of DENR in FY2008; and Appendix 3, the official development assistance (ODA) projects in the ENR sector handled by DENR and its agencies and bureaus.

Box 8: Bureaus, Attached Agencies, and Offices of the Department of Environment and Natural Resources

Mines and Geosciences Bureau (MGB)

MGB is one of two line bureaus of the Department of Environment and Natural Resources (DENR). It is mandated to advise the DENR secretary on matters pertaining to geology and mineral resources exploration, development, and conservation. Under Executive Order (EO) 192, it recommends policies, regulations, and programs pertaining to mineral resources development and geology; it oversees the development and exploitation of mineral resources in the seas within the country’s jurisdiction; it advises the DENR secretary on the granting of mining rights and contracts over areas with metallic and nonmetallic resources; it advises the regional offices on the effective implementation of mineral development and conservation programs and geological surveys; and it develops and promulgates standards and operating procedures for mineral resources development and geology. Under the Philippine Mining Act of 1995 (Republic Act [RA] 7942): it is directly in charge of the administration and disposition of the country’s mineral lands and mineral resources; it undertakes geoscientific surveys and researches in land and marine geology, mining, mine environment, metallurgy, mineral economics, and mine geodetic surveys; it recommends to the secretary the granting of mineral agreements and endorses to the secretary, for the President’s approval, the granting of financial or technical assistance agreements; it provides laboratory and other technical services to the public and other government entities; it provides technical assistance to local government units in their devolved functions of small-scale mining and quarry/sand and gravel mining; it provides staff support and technical advice to the office of the secretary on mining and geology matters; and it acts as secretariat to the Mines Adjudication Board.

Environmental Management Bureau (EMB)

The core mandate of EMB is to advise the DENR secretary on matters relating to environmental management, conservation, and pollution control.

continued Chapter 2: Background 79

Box 8 continued

It recommends possible legislation, policies, and programs for environmental management and pollution control; advises the regional offices in the efficient and effective implementation of policies, programs, and projects for effective and efficient environmental management and pollution control; formulates environmental quality standards; recommends rules and regulations for environmental impact assessments and provides technical assistance in their implementation and monitoring; formulates rules and regulations for the proper disposition of solid wastes and toxic and hazardous substances; advises the secretary on the legal aspects of environmental management and pollution control, and assists in the conduct of public hearings in pollution cases; provides secretariat assistance to the Pollution Adjudication Board; coordinates interagency committees that prepare the State of the Philippine Environment Report and the National Conservation Strategy; and assists the regional offices in the formulation and dissemination to the public of information on environmental and pollution matters. Under the Ecological Solid Waste Management Law (RA 9003), EMB is tasked to provide secretariat support to the National Solid Waste Management Commission. The Clean Air Act (RA 8749) made EMB into another line bureau of the DENR, tasked to implement the law on behalf of the DENR. Among its functions in this regard are to prepare an annual National Air Quality Status Report; formulate the Integrated Air Quality Improvement Framework; formulate and implement an air quality control action plan; designate airsheds; designate areas where specific pollutants have already exceeded ambient standards as non‑attainment areas; review, revise, and publish annually a list of hazardous air pollutants with corresponding ambient guideline values and standards; design, impose, and collect regular emission fees from dischargers as part of the emission permitting system; administer the Air Quality Management Fund; issue permits for the prevention and abatement of air pollution; review, revise, and publish emission standards to further improve the emission standards for stationary sources of air pollution; and phase out ozone-depleting substances. Under the Clean Water Act of 2004 (RA 9275) (CWA), EMB provides staff support to DENR in the implementation of the CWA; develops procedures to relate current or projected water quality guidelines for the receiving water bodies with total pollution loadings from various sources; identifies sources of water pollutants in designated non-attainment areas, including pollutants that are naturally occurring in the area; coordinates with and provides technical assistance to local government units (LGUs) in incorporating programmatic environmental impact assessments (EIAs) in local land use plans and area development plans; coordinates with the National Water Resources Board (NWRB) and other relevant agencies in the classification of groundwater

continued 80 Country Environmental Analysis 2008: Philippines

Box 8 continued

sources; in coordination with the NWRB and other government agencies, and upon prior public hearing, reviews, revises, and publishes every 10 years the classification or reclassification of Philippine waters according to their potential beneficial use; heads the task force that is drafting appropriate incentives for the reduction or elimination of wastewater discharge; and, through its regional offices, decides on motions for reconsideration regarding the granting of effluent discharge permit for agricultural purposes, adopts a system of scheduling for the expiration and renewal of discharge permits, evaluates proposed measures (including self‑monitoring reports) submitted by permittees that cannot comply with conditions of the wastewater discharge permit so that they can comply with the conditions, and validates the self-monitoring reports. With regard to the Philippine Environmental Impact Statement (EIS) System (Presidential Decree 1586), the EIS‑related functions of EMB are to determine whether a project or a program is covered by the Philippine EIS System and should thus be covered by an environmental compliance certificate (ECC) before implementation; determine the scope of the EIS study to be required for a specific type of project in a specific location as a requirement forthe processing of ECC applications; recommend whether to issue or to deny the issuance of the ECCs or certificates of noncoverage after review and assessment; monitor compliance of projects with ECCs, environmental management plans, and the project design; and formulate policies for the improvement of the implementation of the Philippine EIS system. EMB also acts as the implementing arm of DENR in the exercise of its functions, powers, and responsibilities in the implementation of the Toxic Substances and Hazardous and Nuclear Wastes Control Act of 1990 (RA 6969). Its functions in this regard include maintaining an updated Philippine Inventory of Chemicals and Chemical Substances that are being manufactured or used in the country; requiring the testing of chemical substances and mixtures that present unreasonable risk or injury to health or to the environment before they are manufactured or imported for the first time; requiring the testing of chemical substances and mixtures that are being manufactured or processed if there is reason to believe that they pose unreasonable risk or injury to health and the environment; evaluating the characteristics of chemicals that have been tested to determine their toxicity and the extent of their effects on health and the environment; inspecting any establishment in which chemicals are manufactured, processed, stored, or held before or after their commercial distribution and making recommendations to the authorities; confiscating or impounding chemicals that do not fall within the standards set in these rules and regulations; monitoring and preventing the entry into the country, even in transit, of hazardous and nuclear wastes; and issuing permits or authorization before the transport, storage, or disposal of hazardous wastes.

continued Chapter 2: Background 81

Box 8 continued

Forest Management Bureau (FMB)

FMB recommends to the DENR the policies and programs for the effective protection, development, occupancy, management, and conservation of forest lands and watersheds. Its specific functions are to recommend policies and programs for the effective protection, development, occupancy, management, and conservation of forestlands and watersheds (including grazing and mangrove areas), the reforestation and rehabilitation of critically denuded and degraded forest reservations, the improvement of water resource use and development, the protection of ancestral lands as well as wilderness areas and other natural reserves, the development of forest plantations (including those for rattan, bamboo, and other valuable non‑timber forest resources), the rationalization of the wood-based industries, and the regulation of the use and exploitation of forest resources (including wildlife) to ensure continued supply of forest goods and services; advise the regional offices in the implementation of the above policies and programs; develop plans, programs, operating standards, and administrative measures to promote the FMB’s objectives and functions; assist in the monitoring and evaluation of forestry and watershed development projects to ensure efficiency and effectiveness; and undertake studies on the economics of forest-based industries, including local, national, and international supply and demand trends, identifying investment problems and opportunities in various areas.

Land Management Bureau (LMB) LMB is mandated to advise the DENR secretary on matters pertaining to rational land classification, management, and disposition. Its main functions are to recommend policies and programs for the efficient and effective administration, survey, management, and disposition of alienable and disposable lands of the public domain and other lands outside the responsibilities of other government agencies, such as reclaimed areas and other areas not needed for or are not being used for the purposes for which they have been established; issue standards, guidelines, regulations, and orders to enforce policies for the maximization of land use and development; and assist the secretary as executive officer charged with carrying out the provisions of the Public Land Act, with direct executive control over the survey, classification, lease, sale, or any other forms of concessions or disposition and management of the lands of the public domain.

continued 82 Country Environmental Analysis 2008: Philippines

Box 8 continued

DENR, through LMB and the DENR regional offices, is also mandated to administer, survey, manage, and dispose of alienable and disposable lands and other government lands not placed under the jurisdiction of other government agencies.

Ecosystems Research and Development Bureau The bureau formulates and recommends an integrated research program relating to Philippine ecosystems and natural resources; generates technologies and provides scientific assistance in research and development for technologies relevant to the sustainable use of Philippine ecosystems and natural resources; and coordinates all technological researches undertaken by the field offices, assesses and translates recommendable findings, and disseminates the findings.

Protected Areas and Wildlife Bureau (PAWB) PAWB formulates and recommends policies, guidelines, and rules and regulations for the establishment and management of integrated protected area systems (IPAS) such as national parks, wildlife sanctuaries and refuges, marine parks, and biospheric reserves; prepares up‑to‑date listings of endangered Philippine flora and fauna and recommends a program of conservation and propagation for these; recommends policies, guidelines, and rules and regulations for the preservation of biological diversity, genetic resources, and endangered Philippine flora and fauna; assists the DENR secretary in monitoring and assessing the management of the IPAS; and provides technical assistance to the DENR regional offices in the implementation of programs for these areas.

National Mapping and Resource Information Authority (NAMRIA) This central mapping agency is mandated to serve the needs of the line services of the DENR and other government offices with regard to information and researches. It is tasked to expand its capability in the production and maintenance of maps, charts, and similar photogrammetry and cartography materials. NAMRIA conducts research on remote sensing technologies such as satellite imagery analysis, airborne multi-spectral scanning systems, and side- looking airborne radar; provides remote sensing services and vital data on the environment, water resources, and agriculture and other information needed by other government agencies and the private sector; integrates all techniques of producing maps from ground surveys to various combinations of remote sensing techniques in a cost-effective and acceptable manner; and integrates geographic and related information to facilitate access to and analysis of data and their transformation into useful information for resource policy formulation, planning, and management.

continued Chapter 2: Background 83

Box 8 continued

As the central depository and distribution facility for natural resources data in various forms, such as maps, statistics, text, and charts, it is likewise mandated to operate information services and networks to facilitate natural resource information transfer, sharing, access, and dissemination in all regions and provinces of the country; establish a nationwide geodetic network of control points that serves as a common reference system for all surveys in the country, and conduct hydrographic and coastal surveys to produce the hydrographic and nautical charts vital to sea and water travel as well as the exploitation of our marine resources; formulate and implement a nationwide development program in aerial photography, cartography, and remote sensing mapping activities; establish and implement technical standards and quality specifications for map production and reproduction; and provide photogrammetry, cartographic, and remote sensing mapping services to accelerate the development of a comprehensive data bank and information systems for base maps and charts.

Natural Resources Development Corporation (NRDC) NRDC is the corporate arm of the DENR. It is responsible primarily for promoting natural resource development and conservation. As provided in EO 192, NRDC promotes the enhancement of the forest renewal rate through intensified industrial tree plantation promotion including the provision of incidental services such as assistance with capital, credit facilities, marketing, and management. Specifically, NRDC is directly involved in pioneering but potentially viable production, use, and marketing ventures or projects using new and innovative technologies, systems, and strategies such as but not limited to stumpage sales systems, industrial forest plantations or logging operations, and rattan tissue culture, while avoiding activities that compete with the private sector except in specific cases where the revenues of NRDC are earmarked for a specific local developmental or social service; and it finances natural resource development projects undertaken by the private sector such as industrial tree plantations, agro-forestry, small-scale mining, and retooling of the natural resource–based processing industries to improve their efficiency and competitiveness, and to discharge these functions effectively, it is authorized to generate funds through debt instruments from various sources, and innovative income-generating strategies.

National Water Resources Board (NWRB) In 2002, under EO 123, NWRB was transferred to DENR after its reorganization. NWRB is mandated to regulate the extraction and use of freshwater resources.

continued 84 Country Environmental Analysis 2008: Philippines

Box 8 continued

NWRB implements the provisions of the Water Code of the Philippines (PD 1067). It regulates and controls the use, exploitation, development, conservation, and protection of all water resources. More specifically, the NWRB issues, suspends, revokes, and approves the transfer of water permits for the appropriation and use of waters; declares waters not previously appropriated exempt from appropriation; promulgates rules and declares the existence of control areas for the coordinated development, protection, and use of ground and surface waters; establishes minimum stream flows for rivers and streams and minimum water levels for lakes toprotect the environment, control pollution, facilitate navigation, prevent salt damage, and promote general public use; issues permits for the development of streams, lakes, and springs for recreational purposes; issues permits for the drilling of wells; issues rules and regulations for reservoir operations; approves the transfer of water between river basins; coordinates data collection, research, and manpower development; imposes penalties for administrative violations; imposes and collects reasonable fees or charges for water resource development; approves rules and regulations prescribed by other government agencies for the use, exploitation, development, control, conservation, and protection of water resources; and adjudicates all related disputes. The NWRB is also mandated, under the Clean Water Act (RA 9275), to designate water quality management areas, in coordination with DENR.

Laguna Lake Development Authority (LLDA) Attached to the DENR for policy and program coordination, LLDA establishes and enforces water quality standards for industrial, agricultural, and municipal use; issues and revokes permits for the use of surface waters within the lake region; approves development plans proposed by LGUs, private persons, or enterprises; collects fees for all beneficial use of Laguna Lake resources; and compels compliance with water quality standards.

Natural Resources Mining Development Corporation (NRMDC) NRMDC is primarily tasked to do business, particularly the business of exploring, developing, mining, smelting, producing, transporting, storing, distributing, exchanging, selling, disposing of, importing, exporting, trading, and promoting gold, silver, copper, iron, and all kinds of mineral deposits and substances.

Philippine Forest Corporation The Philippine Forest Corporation was created in late 2004 to handle special reforestation projects such as the planting of jatropha, a species that can be used to produce bio-diesel.

continued Chapter 2: Background 85

Box 8 continued

River Basin Control Office (RBCO) Through EO 510 signed on 5 March 2006, RBCO was created to prepare an Integrated River Management and Development Master Plan; promote equitable access to potable water, efficient distribution of water resources (through a reduction in water losses in irrigation), and effective use of water resources (through increased hydropower efficiency and lower flood incidence); rationalize the various river basin projects such as the Mt. Pinatubo Hazard Urgent Mitigation, Iloilo Flood Control, Lower Agusan River Flood Control, Bicol River Basin and Watershed Management, Agno River and Allied Rivers Flood Control, Kalookan‑Malabon-Navotas-Valenzuela (KAMANAVA) Flood Control, and the Pasig River Rehabilitation Commission; develop a master plan for flood control for the river basin projects; and rationalize and prioritize reforestation in watersheds.

DENR Regional Offices The regional offices are expected to implement laws, policies, plans, programs, projects, and rules and regulations of DENR to promote the sustainability and productivity of natural resources, social equity in natural resource utilization, and environmental protection; deliver efficient and effective services; coordinate with regional offices of other departments, offices, agencies in the region, and local government units in the enforcement of natural resource conservation laws and regulations, and in the formulation and implementation of natural resources programs and projects; recommend and implement approved programs and projects for forestry, minerals, and land management and disposition; conduct a comprehensive inventory of natural resources in the region and formulate regional short‑ and long-term development plans for the conservation, use, and replacement of natural resources; prepare a regional budget in conformity with the priorities established by the regional development councils; supervise the processing of natural resources products, grade and inspect minerals as well as lumber and other wood processed products, and monitor the movement of these products; and conduct field researches for appropriate technologies for various projects. 86 Country Environmental Analysis 2008: Philippines

Box 9: Fy2008 Programs and Projects of the Department of Environment and Natural Resources

Forest Management

Management of forestlands and forest resources; forest restoration and rehabilitation in 140 priority watersheds; forest protection; community- based forestry program; soil conservation and watershed management; forest boundary delineation and use allocation; Project on Forestland Management (ProFORM), Community-Based Mangrove Forest Management Project.

Land Management Management, administration, and disposition of alienable and disposable lands and other lands not placed under the jurisdiction of other government agencies; land surveys; survey of foreshore areas, reservations, patrimonial properties, and other lands covered by the Comprehensive Agrarian Reform Program; field network survey using global positioning system to establish new geodetic control network; Land Administration and Management Project II.

Protected Areas and Wildlife Management Identification, delineation, and management of areas under the National Integrated Protected Areas System; operation and maintenance of the Ninoy Aquino Parks and Wildlife Center in Quezon City; development and rehabilitation of Hinulugang Taktak National Park in Antipolo, Rizal; development and rehabilitation of the Mt. Apo National Park; Philippine Eagle Conservation Project; Pawikan Conservation Project; Tamaraw Conservation Project; operation and maintenance of the Crocodile Farm Institute in Irawan, Palawan; biodiversity conservation; tarsier conservation.

Ecosystems Research and Development Coordination, monitoring, and evaluation of environmental and natural resources–related programs; pilot plantation and establishment of selected forest species; management of coastal and marine resources; Integrated Coastal Resources Management Project.

Environmental Management Rationalization of environmental standards and environmental compliance certificate coverage; implementation of comprehensive air pollution control policy; implementation of the Clean Water Act; technical assistance to local

continued Chapter 2: Background 87

Box 9 continued

government units (LGUs) nationwide in the implementation of the Ecological Solid Waste Management Act; expansion of recycling of waste products; encouragement of LGU disposal of residuals in sanitary landfills with materials recovery facilities; regulation of priority chemicals; inventory and formulation of a national implementation plan for the 12 persistent organic pollutants; technical assistance to hospitals nationwide in the proper handling and disposal of health‑care wastes; negotiations with the private sector in preparations for the development of a model integrated treatment facility.

Mineral Lands Administration Mining industry development; mineral investment promotion; assessment and clean-up of abandoned or inactive mines; communication plan for mineral development.

Geoscience Development Geohazard survey and assessment; geologic mapping.

National Mapping and Resource Information Authority (NAMRIA) Operations Hydrographic surveys and nautical charting program; national mapping program; national spatial data infrastructure development program.

Laguna Lake Development Authority LLDA was created in 1966 as a quasi‑government agency to direct and promote sustainable development in the Laguna de Bay Region (LDBR). Its regulatory and law enforcement functions cover environmental management, particularly water quality monitoring, natural resources conservation, and community-based natural resources management. LLDA implements the environmental user fee system (EUFS), manages the lake zone and its shore, and rehabilitates rivers. Though attached to DENR for policy coordination, the agency funds its programs and activities from its own revenues. In water pollution control and CWA enforcement, LLDA has jurisdiction over Laguna and Rizal provinces; Tagaytay City and the towns of Carmona, Gen. Mariano Alvarez, and Silang in Cavite; Tanauan City and the towns of Malvar and Sto. Tomas in Batangas; Lukban in Quezon; and several cities and municipalities in Metro Manila (Caloocan, Manila, Marikina, Muntinlupa, Pasay, Pasig, Pateros, Quezon, and Taguig cities). 88 Country Environmental Analysis 2008: Philippines

In 2004, LLDA was authorized by the DENR secretary to accept and process applications for environmental compliance certificates (ECCs) for selected projects in the LDBR, subject to confirmation by the secretary.

Subic Bay Metropolitan Authority The Subic Bay Metropolitan Authority (SBMA) was created under the Bases Conversion and Development Act (1992) (RA 7227) to protect, maintain, and develop virgin forests within the Subic Bay Freeport Zone that had been proclaimed national parks and were subject to a permanent total log ban, and to adopt and enforce pollution control measures in all areas within its territory. SBMA was to implement the rules and regulations of the DENR and other government agencies directly involved in the above functions and create an Ecology Center for that purpose.33 Years of continuing conflict between DENR and SBMA in the implementation of environmental laws and regulations came to an end in 2005, when the Court of Appeals upheld DENR’s authority to exercise its regulatory powers within the Subic Bay Freeport Zone. DENR and SBMA signed a memorandum of agreement (MOA) empowering the DENR to visit all industrial establishments, or “locators,” operating within the zone and compel them to meet its environmental standards. DENR was given the lead role in processing and approving ECC applications for new locators at the zone, at SBMA’s recommendation. DENR would also review and validate the 300 or so ECCs issued earlier by the SBMA Ecology Center. SBMA, for its part, agreed to adopt DENR rules, regulations, and orders for processing EIS applications and to monitor compliance with DENR environmental standards through its Ecology Center.

Local Government Units LGUs are tasked with formulating municipal environment codes and forest and coastal management plans for implementing environment‑related programs and activities. The most recent environmental law, CWA, also made LGUs jointly responsible, together with the national Government, for managing and improving water quality within their territorial jurisdictions. The DENR was to devolve some aspects of water quality management and regulation, including permit issuance, monitoring, and imposition of administrative penalties, “when the LGU has demonstrated its readiness and technical capability to undertake such functions.”

33 Implementing Rules and Regulations, RA 7227, the Bases Conversion and Development Act (1992). The freeport zone is within the 6,332 ha Subic Watershed and Forest Reserve, which was declared a protected area by Presidential Proclamation 926 (1992) and therefore automatically placed under DENR’s jurisdiction by virtue of the NIPAS Act (1992) (RA 7586). Chapter 2: Background 89

Philippine Council for Sustainable Development The Philippine Council for Sustainable Development reviews Philippine commitments to sustainable development principles made at the United Nations Conference on Environment and Development and ensures their implementation in cooperation with the Department of Foreign Affairs, the Office of the United Nations Commission on Sustainable Development, and other international organizations; sets guidelines and mechanisms for the practical use, particularly in the MTPDP, of the sustainable development principles embodied in the Rio Declaration and the Philippine Agenda 21; directs through policy reforms, programs, and new legislation the response to issues and the course of future actions on the environment and sustainable development; and develops national sustainability plans.34

Other National Government Agencies Among the environment-related tasks of other national government agencies, the Department of Agriculture is concerned with coastal and marine management, soil and water use and protection, and fertilizer and pesticide use; the Department of Health, with environmental effects on health; the Department of Agrarian Reform, with sustainable farming, to improve land tenure; the Department of Energy, with the reduction of air pollution from fossil fuels; the Department of Interior and Local Government, with the ability of LGUs to fulfill their growing role in environmental management and protection; and the Department of Science and Technology, with environmental research. The Department of Tourism works for the ecological preservation of tourist attrac- tions; the Department of Public Works and Highways prepares a national program for sewerage and septage management; the National Economic and Development Authority plans for growth with equity and, through the Investment Coordination Committee, reviews and approves the environmental compliance of government programs and projects; and the National Commission for Indigenous Peoples protects the rights and well‑being of indigenous peoples including their rights to their ancestral domains.

Interagency Coordinating Committees Interagency committees and technical working groups are commonly created to harmonize the implementation of major ENR laws, policies, and programs, given the large number of agencies involved. Some laws specifically require their creation. Policy directions, targets, implementation activities, schedules,

34 The Philippine Council for Sustainable Development is headed by the director-general of NEDA as chair, and the DENR secretary as vice-chair. It draws its members from various government departments and civil society groups. National government agencies, civil society, NGOs, and people’s organizations are represented in committees and subcommittees of the council. 90 Country Environmental Analysis 2008: Philippines and roles and responsibilities are discussed and agreed on in these committees and working groups. Sector and group representation (government, NGOs, industry, and the academe) in committee membership is considered, to engage the regulators and the regulated, as well as the affected communities.

Government Financial Institutions Government financial institutions, particularly DBP, the Land Bank of the Philippines (LBP), and the Municipal Development Fund Office (MDFO), have been providing loans for environmental projects. Leading the banking sector in promoting, encouraging, and financing environmental projects in the country for more than 15 years, DBP pio- neered in the funding of waste treatment facilities for water and air, cleaner production, energy conservation, and cleaner energy. A special DBP lending facility handles the environmental requirements of small and medium‑sized enterprises (SMEs). Since 1989, DBP has mobilized about $700 million (at constant 1985 prices) in ODA loans for environment initiatives. These environmental lending facilities are ongoing: Credit Facility for Environmental Management Project (AB Svensk Exportkredit of Sweden); Credit Line for Solid Waste Management Project and Industrial Pollution Control Loan Program, Phase II (KfW of Germany); and LGU Urban Water and Sanitation Project (Adaptable Program Loan 2) and Rural Power Project (World Bank). As of December 2006, these projects had a net commitment of $69.53 million. As of 2006, 36% of the total LBP portfolio was provided to agribusiness, agri‑infrastructure, and agro‑ and environment-related loan projects. LBP has five ongoing lending facilities with an ENR component: Third Rural Finance Project (World Bank), Mindanao Basic Urban Services Sector Project (ADB), LGU Investment Program (KfW), MTSP (World Bank), and Support for Strategic Local Development and Investment Project (World Bank). These loan facilities total about $450 million. MDFO was created as an office under the Department of Finance in 1998 to finance environment-related projects of LGUs through the Municipal Development Fund. The fund is supported by foreign loans, assistance, and grants.

Nongovernment Organizations and People’s Organizations NGOs as advocacy groups play a major role in bringing environmental benefits to communities. The NGO communities and people’s organizations in the Philippines are among the most developed in Asia and Pacific. Local environment NGOs have become more active since the 1980s, helping to shape environmental policy in agrarian reform and against illegal logging and environmental damage from irresponsible mining. Several NGOs have been successful innovators. Box 10 lists the major environmental NGOs in the country. Chapter 2: Background 91

Box 10: Nongovernment Organizations in Environmental Protection Conservation International, one of the world’s largest nongovernment organizations (NGOs) in biodiversity conservation, works in 44 countries including the Philippines. In the Philippines it is a partner of the Department of Environment and Natural Resources (DENR) in several initiatives for the conservation of Philippine biodiversity including the Sulu-Sulawesi Seascape and biodiversity hotspots. The Environmental Legal Assistance Center was formed in 1990 as a special project of the Protestant Lawyers’ League of the Philippines to mobilize human rights lawyers on behalf of communities besieged by environmental problems. The Foundation for the Philippine Environment, incorporated in 1992, aims to reverse the rapid destruction of the Philippines’ natural resources by initiating programs and activities that strengthen the role of NGOs, people’s organizations, and local communities in responsible ecosystem management. The initial financial base of the foundation is an endowment fund established through debt‑for-nature swaps. Haribon Foundation is a leading conservation NGO in the Philippines with more than 25 years of experience in addressing critical environmental problems at policy and community levels. Haribon has been at the forefront of finding workable environmental strategies for implementing sustainable development in the Philippines. It has made a significant contribution to pioneering initiatives such as the National Integrated Protected Areas System, community-based coastal resource management, and environmental law education and practice. It bases its conservation work on the best‑quality biodiversity research in the Philippines. The foundation has a staff of over 40 professionals, with varied specializations, and has been the recipient of various grants. KALIKASAN–People’s Network for the Environment is a network of NGOs established to enable greater coordination and complementation in addressing the environmental issues that continue to worsen the lives of already marginalized people. LRC-KSK/Friends of the Earth, established in 1987 with the aim of empowering the marginalized directly dependent on natural resources, has developed expertise in indigenous people’s rights, environmental management, forestry issues, energy efficiency, and community and local initiatives. It is the official Philippine affiliate of Friends of the Earth International. The Non‑Timber Forest Products Task Force is a collaborative network of Philippine grassroots NGOs established to address emerging livelihood needs of upland forest dwellers in the context of sustainable forest management. It is a beneficiary of the Small Grants Fund of the European Commission.

continued 92 Country Environmental Analysis 2008: Philippines

Box 10 continued

The Philippine Rural Reconstruction Movement (PRRM) designs and implements community and habitat development programs across the archipelago. Founded in 1952, it is one of the country’s longest-serving NGOs. The World Wide Fund for Nature (WWF)–Philippines began with the desire to save the Philippine marine environment. Through the years, WWF programs have grown to include work in freshwater and forest ecosystems and pioneering projects in toxics and climate change while maintaining WWF’s strong emphasis on oceans, coasts, and marine species. WWF-Philippines implements conservation and development projects in 11 provinces and at least 28 towns. Nationwide, WWF advocates appropriate environmental policies, engages corporations in sustainable business, and conducts environmental education activities in Metro Manila and other key cities and towns. The field projects of WWF-Philippines support local efforts in coastal resource management, community-based ecotourism, management of protected areas, and environmental law enforcement, among others. WWF’s projects in species protection serve as catalytic platforms for broader coastal management and conservation in a number of areas. These include the Irrawaddy dolphin in Malampaya Sound, Palawan; the whaleshark in Donsol, Sorsogon; whales and dolphins in Tanon Strait, Negros Oriental; sea turtles in the Turtle Islands, Tawi-Tawi; the dugong in Roxas, Palawan; and the humpback whale in Babuyan Islands. WWF draws support for its projects from various partners including multilateral agencies. Other relevant environmental organizations are the Philippine Federa- tion for Environmental Concerns (www.psdn.org.ph/pfec), the Environ mental Broadcast Circle (www.ebc.org.ph), the Tambuyog Development Center, the Soil and Water Conservation Foundation (financially supported by the European Commission), the Center for Empowerment and Resource Development, and the Asia Forest Network. Business and industry organizations have their own environment groups, the more active of which are the following. The Philippine Business for the Environment (PBE) is a non-stock, nonprofit organization incorporated in January 1992 to assist Philippine business in addressing environmental issues and concerns. Currently it has 37 charter members and 5 regular members. PBE spearheaded and continues to operate the Industrial Waste Exchange Program, which maintains a database of waste generators and waste buyers and recyclers that can be potentially matched. The Pollution Control Association of the Philippines, Inc. is a non-stock, nonprofit, and nongovernment organization formed in June 1980 by various industries to work with the Government in the protection of the environment, and the prevention, abatement, and control of land, air, and water pollution. All industries are required by law to have their own pollution control officers;

continued Chapter 2: Background 93

Box 10 continued

therefore, this NGO is one of the biggest associations in the country. It represents the industry in the Pollution Adjudication Board and in most environmental interagency committees requiring industry representation. The Air and Waste Management Association–Philippine Section (AWMA- PS) was organized about 10 years ago as an international chapter of the US- based AWMA. The Solid Waste Management Association of the Philippines (SWAPP) is another nonprofit membership organization composed of solid waste practitioners from local government units (LGUs), national government agencies, NGOs, and the academe. It was established in May 2000. Through funds from its members and international organizations, it is quite active in assisting LGUs, including barangays, in developing solid waste management plans. It has been the recipient of various grants from donor agencies like the United States Agency for International Development (USAID), World Bank, German technical cooperation (GTZ), and others. Locally, SWAPP has affiliations with the Local Government Academy, PLAN-Philippines, Solid Waste Contractors of the Philippines, Earth Day Network, and Philippine EcoSan Network. SWAPP is also allied with international organizations like the Collaborative Working Group for Low and Middle Income Countries (Switzerland) and the Southeast Asia Urban Environment Management Network (Asian Institute of Technology, Thailand).

Communities have been participating, to varying degrees, in natural resource management for at least 15 years. Some participate in natural resource management because of conflicts with central government agencies. Relations between people’s organizations and LGUs are similarly mixed. While some LGUs are supportive, others view people’s organizations as competitors and are wary or even hostile. Community groups need more assistance in developing collective interests and building the capacity to implement sustainable and long‑term programs.

Donor Agencies

The Philippines has long been a recipient of ODA resources for national development. Donor support for environment-related projects is increasing in response to growing demand and the need to sustain economic growth. Besides ADB, international financing institutions and multilateral - agen cies that are active in the Philippines are the World Bank/GEF, UNDP, and the European Union (EU). Bilateral sources include Australia, Canada, People’s Republic of China, Germany, Japan, New Zealand, Spain, the 94 Country Environmental Analysis 2008: Philippines

United Kingdom, and the United States of America. The 29 ODA projects at DENR have a total value of $365,384.07, including government coun- terpart funds. Two of these are environment-related loan projects of ADB (the Metro Manila Air Quality Improvement Development Project and the Integrated Coastal Resources Management Project among them); four others are World Bank and JBIC projects. The World Bank’s country assistance strategy until 2009,35 has been shifting toward more programmatic engagement with key agencies and sectors with the active involvement of the national and local governments, and the private sector. At the national level, the World Bank is working with agencies that are strongly committed to reform, helping to strengthen governance, and financing improvements in systems and processes. Locally, there is an integrated, cross-sector focus on LGUs to make better outcomes more likely across all services delivered. In the private sector, the World Bank promotes private investment by helping to strengthen regulatory agencies, reducing the cost of doing business, improving financial intermediation, and financing projects in cooperation with private entities particularly in sectors with high growth potential. The 2007 Philippine lending portfolio of the World Bank had 23 active projects (21 loans and two stand-alone GEF projects) totaling $1.3 billion. Rural development and environment projects accounted for 38% ($485.9 million) of the lending portfolio, and 42% ($40.3 million) of the $95.5 million trust fund portfolio. Jumbo trust funds (such as the Mindanao Trust Fund), linked to the World Bank’s investment operations and administered by the World Bank on behalf of bilateral development partners, are a significant new business line that is benefiting the lending program overall and harmonizing World Bank operations with the operations of development partners. The World Bank is supporting DENR in improving credibility and transparency, and moving away from regulation toward effective conservation. Its National Program Support for Environment and Natural Resources Management Project is helping to promote growth and reduce poverty while ensuring responsible and sustainable ENR use and management. The Land Administration and Management Project, now in its second phase (LAMP II), is improving the security of land tenure through efficient land titling and administration. LAMP II is cofinanced with the Australian Government. Funding for the Program for Sustainable Sanitation in East Asia, managed by the World Bank on behalf of the Swedish International Development Cooperation Agency, is helping to make sustainable sanitation more accessible to the poor.

35 World Bank website, www.worldbank.org. Chapter 2: Background 95

Environment sustainability is one of four interrelated program interventions of UNDP in the Philippines.36 Balancing production needs with ecological carrying capacity for long-term, sustained growth is a priority goal. UNDP supports national efforts to develop the capacity of stakeholders to manage natural resources in critical ecosystems by strengthening the productivity of SMEs and the sustainable development of communities. It is also working for the widespread use of cleaner, more sustainable forms of energy and the promotion of energy efficiency. Ongoing projects funded directly by UNDP or GEF or from bilateral sources include the Community-Based Ecological Solid Waste Management Project, the Small Grants Program for Operations to Promote Tropical Forests, the Clean Development Mechanism, and the Samal Island Biodiversity Project. The EU is providing budget support and sector-wide approaches to decentralized development through LGUs, to reduce poverty by making access to social services more equitable. Its indicative allocation for the Philippines for 2007–2013, under the Development Cooperation Instrument, is about $180 million. EU support for environment‑related projects is centered on the sustainable use of natural resources through demand‑driven thematic and regional budget lines. These funding facilities include the urban-related Asia Pro Eco Program, Phase II; the Environment and Tropical Forests in Tropical Countries Program; and Asia Invest Program, which promotes environmental protection within an economic and commercial framework. The ASEAN Centre for Biodiversity, hosted by the Philippines, is supported by the EU. Japan’s ODA makes up the largest portion of foreign assistance to the Philippines—49% in 2006. It takes the form of bilateral grants (grant aid and technical cooperation), bilateral loans (yen loans), and contributions and subscriptions to multilateral donors. Bilateral grants, such as those for DENR Capability Building for Water Quality Management and for the Introduction of Suitable Solid Waste Management System in Three Model Cities in the Philippines, are provided mainly by JICA. Bilateral loans, for the Southern Mindanao Integrated Coastal Zone Management Project, among others, come from JBIC. JBIC, through DBP, provided loan facility of about $180 million for the environmental investments of industries, while the LGU Support Credit Program implemented by LBP funded water supply, flood control, and sanitation facilities. Both projects ended in 2006 but second‑generation funds are expected. Another $180 million lending facility at DBP for environmental projects, the Environmental Development Program, was in JBIC’s

36 The other three are empowerment of the poor, good governance, and conflict prevention and peace building. Source: UNDP website, www.undp.org. 96 Country Environmental Analysis 2008: Philippines

2008 pipeline. Aside from various environmental projects, it will support the Philippine Water Revolving Fund, a financing mechanism for water supply and sanitation projects cofinanced by private banks and being implemented by DBP, JBIC, MDFO, USAID, and the LGU Guarantee Corporation. Australia, through the Australian Agency for International Development (AusAID), is one of the top three bilateral grant aid donors to the Philippines along with the United States and Japan. The environmental governance objective of Australian aid is strengthened institutional capacity and improved enabling mechanisms for environmental management. AusAID is currently funding LAMP II, a $48.0 million project cofinanced by the World Bank, which is contributing $18.9 million. Canada is helping to reduce poverty in the Philippines through equitable, sustainable development. The objectives of the Canadian International Development Agency in the Philippines are efficient, responsive, transparent, and accountable governance at all levels, and the development of sustainable small and medium-sized enterprises that create more and better jobs. About one third of Canada’s development assistance goes to multilateral organizations. USAID is helping the Government to formulate policies and promote the use of indigenous and clean fuels by developing the country’s extensive natural gas reserves and renewable energy. A USAID project being carried out with private sector participation is providing electricity powered by renewable energy to thousands of households in remote conflict areas in Mindanao. USAID is also helping DENR to implement the second phase of the Philippine Environmental Governance Project to make the governance of natural resources more transparent, accountable, and responsive. Fisheries Improved for Sustainable Harvest, a 5-year USAID project that ended in 2008, was aimed at conserving biological diversity in at least four biologically and economically important marine ecosystems. USAID is providing technical assistance as well in the implementation of the Philippine Water Revolving Fund. GTZ, the German international cooperation program, is assisting the DENR with municipal forest and coastal zone management, particularly in the Visayan Sea region, and DAR with agrarian reform and rural development. The New Zealand Agency for International Development (NZAID) is working with the DENR to implement the Camiguin Coastal Resource Management Project. It is helping to develop ecotourism, and is supporting the United Nations Children’s Fund (UNICEF)–led initiative to improve basic education, health, and nutrition for indigenous peoples in the Mountain Province in northern Luzon and the UNDP initiative to protect the ancestral domains of indigenous communities. Another NZAID project is strengthen- Chapter 2: Background 97 ing the program and project management capabilities of LGUs in the Caraga region of Mindanao. ODA‑assisted programs and projects in the environment sector cover almost all the important issues. Coordinating their implementation, however, is still a challenge, as is replicating good practices.

Chapter 3 Challenges and Opportunities

DENR Institutional Rebuilding

he ENR subsectors are wide ranging and encompass the entire geography of the country. These subsectors have laws that are just T as varied—the Public Lands Act, the Forestry Code, NIPAS, and the Pollution Control Law, among others—and are implemented mainly by DENR. In addition, there are the regional and international commitments of the country in ENR protection and management. On top of these is EO 192 (1987), the main law that created the DENR and defines its goals, functions, responsibilities, organization, and authorities. Several assessments indicate that DENR has not fulfilled all of its mandated tasks, primarily because of its meager resources, its outdated institutional structure, and the low capability of its staff to cope with the technical knowledge requirements. Overlaps in responsibilities with other government agencies, as well as gaps in implementation, also hamper DENR effectiveness. These factors are discussed further below.

Insufficient Government Budget for ENR

The DENR budget in 1998 was $103 million (World Bank 2000b), about 0.8% of the national budget. In 2001, it increased substantially to $137 million, 1.8% of the national budget. The budget decreased to an annual average of $116 million in 2002–2005 before increasing once more to $150 million in 2006, 1.5% of the government budget (similar to the proportion allocated for the environment in Thailand). The budget must be increased to cover the new responsibilities of the department. DENR started (in 1987) with outmoded equipment and resources, which were not upgraded because of budget limitations. As in any other government department, there were years when the budget went mostly 100 Country Environmental Analysis 2008: Philippines to personnel services, with no increase in maintenance and other operating expenditures (MOOE), and practically no budget for capital outlay. World Bank studies have mentioned that 75% of the DENR’s appropriations go to salaries and other emoluments and that only 5% are for capital outlay. For 2007, personnel services were about 58% of the total DENR budget, MOOE took up 31%, and capital outlay 11%. Only 5 of the 16 regional offices have equipment for source‑emission stack sampling and ambient air quality monitoring. Most regional offices are ill equipped for water sampling and analysis. There are also not enough vehicles to allow DENR staff to monitor the more than 10,000 industrial establishments nationwide. Some new laws provide for substantial appropriations for their initial implementation. The ESWMA (2000) provided for $450,000 for the initial operating expenses of the NSWMC and the National Ecology Center, as well as the expenses incurred by LGUs in carrying out the ESWMA mandate. For the CAA (1999), $19 million was to be divided among DENR, the Department of Trade and Industry, and DOE, and there was to be an initial appropriation of $2.6 million for the CWA. None of these appropriations have materialized. Furthermore, no portion of the Air Quality Management Fund (AQMF) has been released to EMB and the governing boards, and the National Solid Waste Management Fund (NSWMF) is yet to be set up, 9 years after the ESWMA, which provides for its establishment, took effect. The National Water Quality Management Fund (NWQMF) is to be established under the CWA to finance water pollution containment and clean-up operations, ecosystems rehabilitation, and supporting activities. It is to come from fines imposed and damages awarded, proceeds of permits issued under the law, and donations, endowments and grants to the Government. Unless the Government comes up with more definite measures for collecting and using the funds appropriately, the NWQMF could suffer the same fate as the AQMF and NSWMF. DENR has therefore had to rely on foreign assistance. The Metro Manila Air Quality Improvement Sector Development Program (ADB Loan 1663- PHI) made the EMB’s substantial accomplishments under the CAA possible. EMB also receives support from JICA, through the Capacity Development Project on Water Quality Management, for most of the major tasks stated in the CWA. For protected area management, despite about $59 million in externally funded support for protected areas in the Philippines since the mid-1990s, the budget for PAWB declined from $2.3 million in 1998 to about $1.2 million in 2002. In 2002, budgetary support for protected area management per year in 432 protected area sites totaled $124,000, or an average of $286 per site per year. If budgetary support does not increase, the protected areas will have to be reduced in number to only a few sites. Protected areas like Chapter 3: Challenges and Opportunities 101

Mt. Kitanglad, Mt. Apo, Mt. Kanlaon, and Sierra Madre National Parks will need about $35,000–$90,000 yearly just to finance their fixed costs and recurring cost of protection and management (USAID 2004). The NIPAS Act, which was approved in 1992, has no budgetary provision under law to support its immediate implementation. As of March 2008, there were 148 protected areas with integrated protected area funds (IPAFs). Access to the IPAFs is very tedious and has to be simplified. IPAFs are deposited at the National Treasury, which retains 25% to support non‑income‑generating protected areas. For years, DENR has been asking DBM and both houses of Congress to amend the law or include a special provision in the General Appropriations Act that would allow the IPAFs to be used directly for the protected areas. This proposal has so far not been considered.37 The Wildlife Resources Conservation and Protection Act (RA 9147) also set up another fund, the Wildlife Management Fund, for the rehabilitation or restoration of habitats affected by violations of RA 9147 and to support scientific research, enforcement, and monitoring. Contributions to the fund are tax exempt. As a substantial increase in its regular budget seems unlikely. DENR should concentrate instead on laying out a workable structure, complete with guidelines and procedures, for putting these various funds (AQMF, NSWMF, NWQMF, IPAFs, and others) into operation.

Need for DENR Restructuring to Fulfill Expanding Mandate

Despite all the ENR laws that have been passed since 1987, when Executive Order 192 creating the DENR was issued, the institutional structure of the agency has not changed and has been lagging behind its expanding responsibility.38 EMB, in particular, despite its broader mandate and conversion to a line bureau, still implements all five major environmental laws (for EIA, air and water quality, and hazardous waste and solid waste management) through its Pollution Control Division. EMB has 26 key positions including six director III positions. These six are those of the assistant director and five regional technical directors, which were transferred by DENR to EMB when the latter became a line bureau. EMB has 16 regional offices, and therefore needs 11 more regional director positions. Besides the regular positions, EMB has hired casual and contrac- tual employees out of its regular budget or the environmental revolving fund

37 Information provided by PAWB, 4 July 2008. 38 There is also a shortage of personnel. Of the 21,981 itemized positions at DENR, according to the General Appropriations Act (2007), 1,404 are vacant. 102 Country Environmental Analysis 2008: Philippines

(from fines and collections, among others) to fill highly technical positions. EMB has been working for the creation of more technical positions since 2002 but with little success. The implementation of RA 8749 alone requires a manpower complement of 1,558 (ADB 2003d). DENR has transferred 223 employees to EMB to boost the staff of 558 that is assigned to implement the CAA; 777 more are needed, only for this function. In September 2005, 251 unfilled DENR positions (salary grades 1–15, 85% of which were clerical positions) were transferred to EMB. These positions have been collapsed into 95 technical positions in EMB. The internal movement of personnel within DENR has not helped much, particularly because those who are transferred often do not fit the requirements. Foresters transferred to EMB, for example, were expected to implement pollution control laws. Moreover, PENRO and CENRO positions have been “politicized,” especially in regions where local officials insist on appointing their own men. EMB has kept its staffing pattern and structure and does not appear to have been transformed into a line bureau as required in the CAA. At any rate, it has neither the resources nor the abilities for such a change at this time. Section 34 of the CAA set a maximum period of 2 years for EMB’s conversion into a line bureau “unless a separate, comprehensive environmental management agency is created.” Since no such agency was created in those 2 years, the bureau, by implication, has reverted to its staff bureau status ( JICA 2005). In the case of protected area management, the management of the 14,540 km2 of protected areas is assigned to a staff of only 1,246, or about nine for every 1,000 km2 of protected area, compared with the worldwide average of 27 (according to UNEP) (European Commission 2005). In the case of forest management, certain staffing positions may no longer be relevant. The position of tree marker was needed in places where there were timber licensees; there are now very few of those. Plant propagation and nursery jobs have also become unnecessary with the shift in the reforestation program from program administration to contracting. There are 742 tree marker and 194 nursery worker positions in the DENR. The Coastal and Marine Management Office and RBCO have not been assigned permanent positions despite their huge responsibilities. Their staffs are on temporary detail and may not continue to work in these offices if DENR does not approve the staffing structures under its rationalization plan. In 2004, all government agencies were directed through Executive Order 366 to prepare sectoral rationalization plans. The DENR rationalization plan reengineers the DENR central units into “thinkers” rather than “doers,” “steering” rather than taking a direct role (“rowing”) in ENR programs, projects, and activities. Box 11 shows the DENR rationalization framework. Chapter 3: Challenges and Opportunities 103

Box 11: Guiding Principles for the Rationalization Plan of the Department of Environment and Natural Resources

From To “Doer” (in the central office) “Thinker” Program implementer Knowledge manager Regulator Technical assistance provider Development catalyst (e.g., development of a strategic environmental plan to guide local government units, development of standards to improve service delivery, and reduction of bottlenecks in the processing of resource use permits Conservator: Fragmented/ Integrated ecosystems approach Uncoordinated approach Regulator: Concentrated at Deconcentration the central office Phased/Selective devolution Manager: “Rowing” “Steering” (enabler) Direct role in administering Reduced direct role in programs, projects, the use of natural resources in and activities related to utilization wealth production Enhanced services related to promoting ecosystems Emphasis on program Emphasis on policy formulation, standard implementation (production/ setting, monitoring and evaluation, delivery) enforcement and coordination.

A policy note issued by DENR for the rationalization plan, “to ensure that its core mandates as conservator and manager of ENR are fully asserted in future development policies and programs,” directs the department to “cut some operations where the DENR has less comparative advantage and prioritize those that have greatest impact and value-added.” The intent is to create a more holistic organization with fewer bureaucratic layers, strengthen planning and budgeting, and establish career paths and career development for officials and employees to professionalize the ranks. These principal goals are identified for the department: integrated watershed management, integrated water resource management, protected area management and biodiversity conservation, integrated coastal resource management, and clean air, water and solid waste management. 104 Country Environmental Analysis 2008: Philippines

Even after repeated revisions, however, the rationalization plan is yet to be approved by DBM.39 The plan should be approved and implemented as soon as possible. An implementation timetable and action plan, with the necessary financial resources, is needed for smooth implementation.

Major Capacity Building Requirement for Better ENR Regulation

The report on the TA project Strengthening Environmental Enforcement and Compliance Capacity (2003) concluded that, despite time and human and financial resource constraints, EMB has implemented about 79% of its 239 directives40—83% in enforcement, 85% in policy and planning, 81% in education, 71% in research, and 55% in fund generation and management. As the report showed, EMB has limited capacity to implement all of the directives. Anyhow, given the austerity measures taken by the Government, not all may be implemented. The JICA-funded Capacity Development Project on Water Quality Management mentioned the following weaknesses in enforcement in the EMB regional offices: identification of hot spots and prioritization of monitoring and inspection, groundwater assessment, water‑body classification, scientific analysis and water pollution modeling, field monitoring and inspection, estimation of pollution load or allocation of pollution quotas, and assessment and collection of pollution charges. Most of these weaknesses are explained by the lack of procedural and technical guides or manuals, laboratory facilities and equipment, water quality monitoring personnel, a regional water quality database to support decision making, well‑defined water quality monitoring functions, a database of pollution sources for regulatory enforcement, equipment and vehicles for water quality monitoring, and guidance in integrating the CWA with the Philippine Environmental Partnership Program, the Philippine Environmental Impact Statement System (PEISS), and other policies.41 CWA implementation in particular lacks the following, according to the JICA study: an integrated policy framework and procedures for water quality management, EMB central office capability to lead and support the regional offices in integrated water quality monitoring and CWA implementation, experience and capability among the regional offices to support the establishment and operation of water quality monitoring areas and the associated

39 The revisions are expected to continue until the plan is finally approved. Therefore, no details of the plan are presented and discussed in this document. 40 The activities straddle the five environmental laws (PD 984, PD 1586, RA 9003, RA 6969, and RA 8749), from which the EMB derives its mandate. 41 The IWQMF also identifies the major capacity building needs of EMB and of the other key implementers of the CWA mandate, including the LGUs. Chapter 3: Challenges and Opportunities 105 participatory mechanisms and institutions, and technical and management capability for water quality monitoring among the regional offices, specifically for the new regulatory mandates under the CWA system of discharge permits and wastewater charges. In solid waste management, while the ESWMA (2000) specifically makes the LGUs primarily responsible for its implementation and enforcement, capacity building of both LGU and DENR field personnel (PENROs and CENROs) in ecological waste management is important, to facilitate compliance with the law. The Strengthening Environmental Performance Monitoring and Evaluation System of the PEISS Project funded by the World Bank found that not all projects with ECCs are monitored and compliance with ECC requirements is unrecorded. No concerted effort is made to prepare and conduct training in monitoring and evaluation (M&E). There are not enough incentives and disincentives for project proponents to monitor and report on their own activities, for DENR to perform its M&E duties consistently, and for stakeholders to be vigilant. M&E is just one of many responsibilities of DENR staff, one on which their performance rating does not depend. Government agencies, moreover, are not as interconnected as they should be for a functional monitoring and evaluation system. Training could solve problems in the M&E system by improving the knowledge, skills, and attitudes of stakeholders, particularly EMB and the members of the multipartite monitoring team (MMT). It would strengthen performance, efficiency, and productivity, and sustain trust and partnership between the regulator, the regulated entities, and the MMT members. EMB personnel and MMT members, however, lack the necessary focus to attend to the substantive concerns of training and to apply the new learning. EMB is trying to make the PEISS more straightforward by accepting online applications for noncoverage and for initial environmental examination, simplifying the requirements, changing the ECC format, and preparing a manual for the review of EIAs, among other means. Improving its capacity development programs in EIA as a planning and risk evaluation tool would also end the EMB’s dependence on outside reviewers and experts. A number of projects have capacity building components. JICA’s Capa city Development Project on Water Quality Management) provided experts and resources to enable EMB to prepare the various guidelines, but, as in other projects with capacity building components, the capacity building was mostly for staff from the pilot regions (in this case, regions 3, 6, and 12, aside from the EMB central office). EMB needs continuous capacity building to implement all of the activities. A major capacity building program should be developed and implemented throughout the bureaucracy when the DENR rationalization plan is finally approved and implemented. 106 Country Environmental Analysis 2008: Philippines

Need for Integrated and Improved Information and Communication Management System

The use of information and communication technology (ICT) to improve the delivery of services of DENR to the public is making slow progress. The 5-year ICT master plan drawn up in 2006 foresees the establishment of an integrated, secure, and reliable enterprise-wide information system by 2010. Phased implementation of the master plan using the regular budget has mark- edly improved the form and content of the agency website, making it easy to navigate, but the updating of content and links with the bureaus still needs improvement. Full implementation of the master plan requires an investment of about $136 million.42 Some completed ODA-funded projects of DENR have developed database systems to improve decision making. The systems (e.g., PEMSEA Integrated Information Management System, USAID-funded Coastal Resource Management Program database of technical and scientific information) work separately, however, and are not actively provided on the DENR website. Moreover, NAMRIA, an attached agency of DENR for mapping, photogrammetry, and cartography, does not automatically share its databases and maps with other DENR bureaus and agencies. The computerization of land records to restore the integrity of land titles is another major database project that can be considered for possible assistance. DENR will need external support to speed up the development of an integrated and improved information and communication system, and provide better, more efficient, and effective services.

Resolution of Mandate Overlaps and Gaps

While significant environmental laws have been passed by the Government in the last four decades, there have been resulting overlaps in agency mandates and gaps in implementation. Among the more prominent conflicts was that between DENR and SBMA regarding the implementation of ENR laws within the territorial jurisdiction of SBMA (see under Regulatory and Institutional Framework above). The Guimaras oil spill (see Environmental Emergencies, under Main Environmental Concerns above) brought up the question of jurisdiction over the case and the lead agency that should see to the clean-up and the penalties for those responsible. The CWA has also given rise to conflicts and issues in implementation, particularly in the preparation of the NSSMP, a task assigned to DPWH. DPWH itself is not involved in water supply and sanitation, but LWUA and MWSS are both attached agencies of DPWH. LLDA for its part, invoking

42 DENR website, www.denr.gov.ph. Chapter 3: Challenges and Opportunities 107 its mandate under RA 4850, wants to be involved in the preparation and approval of the NSSMP, specifically as it concerns the LDBR. LLDA has had conflicts with EMB as well. CWA proclaimed LDBR as a water quality management area and LLDA as water quality governing board. To implement the CWA in the region according to its charter, without having to wait for guidelines from EMB, LLDA wanted to take immediate steps to harmonize the implementing rules and regulations of CWA with the pertinent provisions of the LLDA Law, RA 4850, as amended. Among the issues were LLDA’s proposed use of other significant pollution parameters appropriate to the Laguna de Bay that had been subjected to technical research, adoption of more stringent effluent standards than DENR’s, continued imposition and use of fines and penalties as provided in the LLDA Act, and continued issuance of cease‑and‑desist orders and other legal orders against erring establishments. It has been more than a year since LLDA requested such harmonization efforts, yet DENR has not released the supplemental DENR administrative order (DAO) for the harmonization. LLDA has constituted the water quality governing board and continues to impose and use fines and to issue cease‑and‑desist orders under the LLDA charter. The question of which framework—IWRMF or IWQMF—has supremacy over the other has been raised several times with varying responses. IWQMF, unlike the IWRMF, is backed by a specific national law. Under the CWA, EMB is assigned the task of integrating the water quality frameworks prepared by all government agencies into the IWQMF. The intent is to have a holistic national program of water quality management that does not treat water quality management issues separately from concerns about water sources, ecological protection, water supply, public health, and quality of life. On the other hand, NWRB’s IWRMF promotes the coordinated development and management of water, land, and related resources, to maximize economic and social welfare without compromising the sustainability of vital ecosystems. An “integrated integrated framework” may be considered in the future. Another brewing conflict is that between DPWH and the RBCO under DENR. RBCO is tasked with rationalizing the various river basin projects, developing a master plan for flood control for these projects, and rationalizing and prioritizing reforestation in watersheds. Natural resistance is expected from DPWH, the lead agency for flood control projects, although RBCO has been directed to coordinate with it. Besides, DPWH derives its mandate from a republic act, while RBCO was created only by executive order. Overlaps and conflicts of institutional mandates to grant permits for resource use, set environmental requirements, collect fees, develop land, and enforce compliance continue between the LGC, the Indigenous Peoples Rights Act (IPRA) (1997), the Mining Law, and the NIPAS Act. Solutions to these conflicts must consider community property rights in buffer and multiple‑use zones, natural resource sharing arrangements, and social infrastructure support from LGUs. Memorandum Circular 2007-01 on ancestral domains in 108 Country Environmental Analysis 2008: Philippines protected areas, issued jointly by DENR and the National Commission on Indigenous Peoples (NCIP), has tried to harmonize the implementation of the NIPAS Act and the IPRA. Still another issue is the conflict between mining and biodiversity conservation objectives. National and local governments, NGOs, the private sector, and other stakeholders must agree on environmental standards and acceptable trade-offs to conserve biological diversity while generating jobs and income. Simple, clear guidelines are needed for the free, prior, and informed consent procedures of the NCIP, for DENR resource‑use rights and permits, for the issue of ECCs within protected areas, and for bioprospecting requirements, to minimize illegal entry, harvesting, and bioprospecting, as well as collu- sion. National and local incentives and disincentives for upland communities, fisherfolk, private investors, and DENR protected area superintendents and their staff must also be harmonized.

Passage of Other Important Legislation

Some major ENR laws need to be strengthened or updated. The Public Lands Act (1936) (Commonwealth Act 141), for one, has never been revised or amended. A list of environment-related bills that have been submitted for delibera- tion in the Senate and the House is in Appendix 4. Of the 1,987 bills filed in the Senate about 143 are on ENR; in the House, only about 24 of the 2,283 bills filed are on ENR. Some bills submitted separately to the Senate and the House are on the same topic. Quite a number are area specific. The following major bills should be pursued: Philippine Environmental Protection Authority Act, Bioorganic Farming Promotion Act, Philippine Climate Change Act, Renewable Energy Act, Land Administration Reform Act, Water Resources Management Act, and Free Patent Act. Congress has held hearings and technical working group meetings on the Sustainable Forest Management and Land Use bills. In 2007, the Senate Committee on Environment had its first public hearing on the Unified Land Use Policy Bill.

Improvement of the Environmental Impact Statement System

A 2007 study on the PEISS (World Bank 2007a) pointed out that the system applies to a wide range of business undertakings, a majority of them small scale; is administered by a central government agency, with LGUs in a very limited role; is highly regulatory and control oriented in implementation; Chapter 3: Challenges and Opportunities 109 pays relatively less attention to technical aspects, resulting in generally poor environmental assessment, and critical analyses lacking in focus and depth; has many overlaps with laws handled by other agencies; and has complex but poor follow‑up and monitoring procedures and virtually no evaluation. The PEISS, according to the study, is effective in forcing action and compel- ling proponents to disclose the environmental impact of their projects and undertakings, but not as a planning tool. Most environmental assessments are still applied downstream of key feasibility decisions. The planning contribution was achieved in programmatic environmental assessments introduced in 1995 but was not implemented. Moreover, the EIA framework does not require consideration of cumulative effects. Government plans and programs that could have significant environmental effects therefore escape scrutiny of their environmental consequences. Whether the MTPDP, for example, underwent environmental assessment is doubtful. If it had, it would not have stipulated annual growth of 3.1%–3.6% in commercial fisheries, because overexploitation has rendered such growth almost impossible. Similarly, the targeted 7.6% yearly increase in aquaculture may not have considered the consequences for coastal ecosystems (ADB 2004a). Moreover, although the projects under many of the plans are not large enough to require a formal environmental assessment and an associated environmental management and monitoring plan, their cumulative impact may be significant. The various small projects that escape environmental scrutiny could be nibbling away at important watershed functions and environmental resources. Perhaps the most serious of these unexamined projects is the extensive road building that often accompanies rural development. While the positive socioeconomic benefits are many, road building makes areas with high biodiversity much more accessible and can also cause significant soil erosion. In 1996, a policy study under the USAID-funded Industrial Environ mental Management Project recommended that government programs undergo environmental assessments similar to ADB’s, instead of the EIS requirements under PD 1586, which apply to project-specific assessments. The recommendation, however, was not adopted.

Incomplete Devolution of ENR Functions to LGUs

A review in 2003 of the progress of devolution and decentralization in the Philippines (Government of the Philippines, World Bank, and Asian Development Bank 2003) concluded that LGC implementation is still constrained by lack of coordination between national and LGU plans; institutional arrangements for service delivery; local capacity to produce revenues to finance activities; and technical and managerial capability to design, 110 Country Environmental Analysis 2008: Philippines implement, maintain, and evaluate programs. DENR has been devolving its functions to LGUs for the past 15 years, without much success. Many LGUs do not actively assume the new functions because they are not ready for them, were not properly told about their new functions or trained to carry them out, do not have the benefit of follow‑up by DENR regional offices after devolution, cannot fund the devolved functions, or do not earn revenue from the devolved projects and hence do not give them much attention. A DILG-commissioned study in 2005 called the state of ENR devolution “partial and at worst, minuscule and insignificant.” The devolved functions were mainly peripheral, with low private sector investment interests, or those that were costly to perform. Among these functions were watershed regulation, greenbelt and tree‑park development, farmer-level integrated social forestry, and small‑scale mining, all of which do not attract significant investments from the private sector or are limited to certain LGUs. The control of smoke-belching vehicles, the management of solid wastes, and coastal zone regulation and protection are devolved functions that require substantial investments from LGUs. In 2007, ADB also commissioned a study on the devolution of DENR functions, to help identify responsibilities in the Integrated Coastal Resources Management Project (ICRMP). The study pointed out the institutional weaknesses in most of the 206 Protected Area Management Boards (PAMBs) revealed by a 2003 UNDP study; only five were fully constituted boards backed by specific laws, while the rest were still interim boards. In forest management, personnel devolved to the provincial governments to implement the Integrated Social Forestry Program could not carry out their functions for lack of financial resources and were eventually given other work to do. Similarly, LGUs had neither the technical staff nor the funds for the land management and environmental management functions that had been devolved to them. In mines and geosciences, although only the issue of small‑scale mining permits was devolved, LGUs did not have the capability for comprehensive assessments of the resources and environmental impact of the mining projects. Moreover, the function was allegedly being used to reward political cronies. The ADB study also noted that very few DENR and LGU officials knew about the manuals on devolved functions, and fewer still were implementing them.43 A system that called for DENR to monitor the progress of devolution, included in the manuals, was never put into operation.

43 In the mid-1990s, the DENR developed five operating manuals to guide the transfer of functions and responsibilities to LGUs. One manual contained general, administrative, and financial guidelines. The four others were specific to forest management, land management, protected areas and wildlife, and environmental management. Chapter 3: Challenges and Opportunities 111

Although devolution has yet to succeed, and LGUs show little capability for fully technical roles, the CWA also makes them share the responsibility for managing and improving water quality within their jurisdictions. Each LGU has to prepare a compliance scheme within 6 months of the establishment of the water quality management area action plan and have the scheme reviewed and approved by the governing board. Through its ENR office, each LGU has to monitor water quality, prepare and carry out emergency responses, comply with the IWQMF, participate actively in water quality protection and rehabilitation, and coordinate with other government agencies, civil society, and the concerned sectors in the prevention and control of water pollution. A stronger approach is needed and particular attention must be given to realizing the objectives of devolution and making it sustainable. For DENR, devolution should mean not only complying with the law but also improving ENR protection and management. LGUs, on the other hand, should accept responsibility for managing the environment in their localities and fulfill it.

From Sector-Based to Integrated, Ecosystem-Based Planning and Management

The continued development of institutional mechanisms for ecosystem- based planning and management presents a major institutional challenge as well as an opportunity. Sectoral approaches, which dominate planning in the Philippines, do not effectively consider effects, constraints, or opportunities in other sectors or administrative jurisdictions. Important ENR trade‑offs are manifested only during implementation, creating inter-sectoral conflicts. Among recent attempts to apply integrated, ecosystem-based planning and management to major ENR programs and policies, a national watershed management strategy has been completed with the support of the Danish International Development Agency and the World Bank (as part of its Country Water Resources Assistance Strategy). An investment project in the Bicol River Basin, together with a basin master plan, has been prepared, and three priority watersheds within the river basin have been identified. The investment project will involve the formation of the Bicol River Basin board, initially with representatives of the central government departments that sit on the NWRB, and eventually also LGUs; watershed management planning and implementation by the LGUs in the three priority watersheds; and the provision of irrigation and flood control infrastructure that extends across several LGUs. Together with these initiatives, the Government is taking steps to consolidate and rationalize key ENR management functions. The NWRB 112 Country Environmental Analysis 2008: Philippines has been transferred under DENR to further consolidate in one agency the responsibility for water resources planning, management, and protection. The National Integrated Coastal Management Program is adopting integrated coastal management as a national strategy for sustainable development to preserve ecological integrity while achieving food security, sustainable livelihood, poverty reduction, and less vulnerability to natural hazards.44 NWRB has been working to produce an IWRMF to promote the coordinated development and management of water, land, and related resources and thus maximize economic and social welfare in an equitable manner, without compromising the sustainability of vital ecosystems. The CWA’s integrated approach to the designation of WQMAs requires using appropriate physiographic units (such as watersheds, river basins, or water resources regions) where similar hydrologic, hydrogeologic, meteo- rologic, or geographic conditions affect the physicochemical, biologic, and bacteriologic reactions and diffusion of pollutants, or where there are common or similar development problems or prospects. EMB is drafting the procedural guidelines and facilitating WQMA action planning, through the JICA Capacity Development Project on Water Quality. The IWQMF will also allow the synchronized implementation of CWA activities by several implementers and key stakeholders.

Need for Increased Efforts in Forest Management and Biodiversity Conservation DENR attributes the rise in forest cover to stronger public awareness of the value of forests. Massive reforestation was also undertaken under the donor-supported National Forestation Program and forestry sector program loans. The overall success of these programs compared with past reforestation efforts is due to the following factors: a shift in government policy from reforestation,by upland settlers employed as daily workers by the Government, to contract reforestation by upland settlers; private sector initiative (645,000 ha of the forest cover is on privately titled lands); and stricter enforcement of the reforestation requirements for DENR licensees and les- sees. The 3-year contracts to plant and maintain an area give communities a greater incentive to ensure the survival of what they plant, since they may eventually receive a grant to manage these planted areas for 25 years. The National Biodiversity Strategy and Action Plan (NBSAP) (2002) prepared by DENR and financed in part by ADB identified priority- ter restrial and marine conservation areas on the basis of biological priority and

44 Executive Order 533, 6 June 2006, Office of the President of the Philippines, Manila. Chapter 3: Challenges and Opportunities 113 socioeconomic pressures. The analytical work supporting the NBSAP found the system of terrestrial protected areas biologically inadequate. Only about 8% of the land base of the Philippines is protected, versus the international minimum coverage of 12% fixed by the International Union for Conservation of Nature (IUCN). Degraded and converted habitats make up a high percentage of the terrestrial system; about half of the national parks are no longer biologically important. Not all of the remaining original forest is protected. The coverage of the terrestrial system is biased toward the biologically poorer highland areas. The main gaps in the terrestrial system are the Luzon and Mindanao lowlands, the Sulu islands, Negros, Basilan, Dinagat, Camiguin Sur, and Samar. Protected‑area boundaries also often show little relation to appropriate forest boundaries. The NBSAP recommended applying the internationally recognized IUCN classification system of protected areas to these priority conservation areas once they become part of NIPAS. Some conservation categories in the IUCN system allow for sustainable human use. The NBSAP also recommended enlarging and redesigning the terrestrial portion of the Philippine protected area system to free up land with no residual biodiversity value and being used for agriculture or some other purpose, including all remaining natural forestland in NIPAS, and extending the logging ban to areas of degraded habitats that contain significant biodiversity and including these areas in NIPAS. The NBSAP outlined strategies and action plans to be implemented by DENR. DENR is, however, expected to need substantial assistance (technical and financial) to meet NBSAP objectives and targets. The Conservation Priority‑Setting Program (Ong et al. 2002) and Key Biodiversity Areas, NBSAP iterations that are being jointly undertaken by DENR-PAWB, Conservation International and the University of the Philippines–Center for Integrative Development Studies, give details of areas in the Philippines that are important for the conservation of biodiversity and are the basis for the proclamation of areas under the NIPAS.

Climate Change Mainstreaming in the Government Program

Many factors make it difficult for the Philippines to fulfill its UNFCCC commitments. In the national inventory of GHG emissions, the availability, reliability, and variability of activity data and local emission factors, coupled with institutionalization and links among government agencies involved in the inventory, are still major concerns. Another important issue is the afford- ability and availability of GHG mitigation technologies (e.g., use of renewable resources in power production). The country needs help in overcoming market barriers to the widespread use of renewable resources. 114 Country Environmental Analysis 2008: Philippines

Adaptation measures for coping with the impact of climate change were initially identified following vulnerability assessments in the various sectors. More in-depth studies must be undertaken to enable the country to develop appropriate measures. Given the economic condition of the country, outside assistance is imperative. A working paper produced by the World Agroforestry Center in 2008 came to the conclusion that climate change has not been integrated into major government plans and programs, particularly the MTPDP, the Philippine MDG report, and the Philippine Agenda 21 (Lasco et al. 2008). Climate change is mentioned only once in the MTPDP and the Philippine Agenda 21, and not at all in the MDG progress report. The MTPDP mentions climate change in the context of opportunities presented under the CDM to develop indigenous energy resources. The focus is on income‑earning potential. Moreover, because of the geographic location of the country, there is much emphasis on adapting to risks of variable or extreme weather. Destructive natural disasters, particularly typhoons, happen every year, and policy- makers are understandably more concerned with immediate needs than with the long‑term effects of climate change. On the other hand, many of these short-term measures, while not sufficient, could become a strong foundation for building adaptation to climate change. For example, flood control projects, into which massive investments are being poured, should consider climate‑change scenarios, such as precipi- tation. The fact that many infrastructure projects in the country are funded by foreign donors offers another opportunity. More and more, these donors are exploring how they can integrate climate change adaptation into their project portfolio.

Need for Increased Financing for Environmental Projects

Adequate funding for ENR protection and management is a marked need in the Philippines. The degraded condition of natural resources and the worsening state of environmental resources (water quality), coupled with the generally free access to natural resources, are serious issues that must be addressed. Their resolution is complicated by the inadequacy of government budgets and policies for the participation of stakeholders in ENR management. Considerable financial support has come from the international development community, but it has generally not addressed the question of financial sustainability directly. Long-term sustainable funding of ENR protection and management must involve other sources, including the private sector and civil society. The MTPIP contains information on possible sources of funding for ENR plans and programs. The national Government provides half of the funds, government–owned and controlled corporations and government Chapter 3: Challenges and Opportunities 115 financial institutions about 20%, donor agencies 18%, and the private sector 12%. Even LGUs are providing funds. Private sector investment in environmental management has considerably increased, particularly for regulatory compliance. DBP has mobilized about $282 million in ODA loans for environment initiatives and has approved $70 million in loans for various environment initiatives, $108 million of this amount for 49 water projects.45 Environmental projects funded with loans from DBP include facilities for the treatment of wastewater and hazardous waste, solid waste management projects, cleaner‑production projects, biogas digesters, desulfurization plants, plant relocation projects, water supply systems, and the purchase of CAA-compliant buses. Investments in biofuel projects and in CDM projects have also dramati- cally increased. A number of foreign companies with local partners plan to set up and operate 15 biofuel refining facilities with an investment of about $450 million, and at least four applications for biodiesel feedstock plantations are pending with the DOE.46 The Government should be able to maintain and increase private sector interest to support the Government in ENR protection and management.

Need to Improve and Widen the Use of Market-Based Instruments

The development and use of market-based instruments (MBIs) continues to be modest. Policy formulation and implementation for MBIs has been hindered by several factors, including government regulators’ perceptions of loss of control or greater unpredictability of environmental outcomes from the implementation of an emission or effluent charge; legislative restrictions on the imposition of a pollution tax; lack of concrete evidence that MBIs have actually worked; and lack of information needed to formulate and implement a large MBI portfolio, and monitor its management. But there have been successes, especially in waste minimization, deposit refund and environmental guarantee fund (EGF) establishment, and the application of a EUFS in the Laguna de Bay Region. Waste minimization and cleaner‑production technologies were earnestly promoted by the Government in the 1990s, particularly through the USAID-funded Industrial Environmental Management Project and the World Bank–funded Metropolitan Environmental Improvement Project. Both projects docu mented success stories nationwide. But the efforts were apparently not sustained after the projects.

45 Development Bank of the Philippines website, www.devbankphil.com.ph. 46 Manila Times, 30 January 2008. 116 Country Environmental Analysis 2008: Philippines

Waste minimization and cleaner‑production technologies have since been integrated by most industries into their business operations as a requirement of their mother companies, as a goal for ISO 14001 certification, or merely as part of corporate social responsibility. In 2004, DBP signed an MOA with the Cebu Chamber of Commerce and Industry, the Metro Cebu Environmental Initiatives Council, and the Pollution Control Association of the Philippines and EMB in region 7 to promote cleaner‑production technologies in the region. The highlight of the agreement was the selection of five companies out of more than 70 to receive citations for outstanding cleaner‑production practices. The five winners were also granted 5-year continuous validity of their permits by EMB. Again, however, there was no follow-up after that. EGF is considered a form of MBI created under the PEISS (PD 1586). An EGF is set up by proponents for projects that pose significant public risk or require rehabilitation or restoration as a direct consequence. It is also used to compensate those affected by the negative impact of the projects and to fund community-based environment-related projects including information, education, and communication (IEC) activities and emergency preparedness programs. The fund should be readily accessible and is managed by a committee composed of representatives from the EMB central and regional offices, affected communities, concerned LGUs, and government agencies identified by EMB. Recycling and reuse of materials is another MBI worth pursuing. The Metro Manila Solid Waste Management Study (ADB TA-3848 PHI) estimated that Metro Manila alone generated 2 million tons of potentially recyclable materials in 2001. In 2002, only about 25% was recovered by the recycling NGO Linis-Ganda. According to the study, reducing solid waste by 10% can save about $7.7 million in solid waste management cost. This clearly shows the positive impact of recycling on national and local government budgets. The study added that local supply of recyclable materials does not appear to match the demand. One large paper company alone could buy all the recyclable paper in Metro Manila, but only 10% of its requirements can currently be supplied. The Philippine Business for the Environment (PBE), created in mid- 1990, spearheaded and still operates the Industrial Waste Exchange Program (IWEP). IWEP used to be funded by USAID, but after the project and IWEP’s evident success, PBE decided to take over the program and all the expenses related to its operation. IWEP maintains a database of waste generators and waste buyers and recyclers, and has brought about several successful matches between these two groups. The 2007–2008 JICA study on the recycling industry in the Philippines mentioned the uneven quantity and quality of domestic supply among the factors affecting the sustainability of the industry. Insufficient quantity Chapter 3: Challenges and Opportunities 117 causes dependence on imported materials and disrupts business operations. Unbalanced quality makes the recycling industries less productive and efficient in their use of resources. Having to remove and treat impurities and residues also increases the total operating cost and reduces the profitability of the business as a whole. Other issues affecting the development of the recycling industry in relation to the existing infrastructure are the high cost of electricity, inefficient collection, and transportation of recyclable materials. LLDA’s environmental user fee system, begun in January 1997, is the most successful MBI instrument so far. It integrates command-and-control (CAC) and MBI mechanisms to improve environmental enforcement and compliance in the LBDR. The EUFS is now an integral part of LLDA’s Environmental Management Program. To reduce pollutant load in the bay it makes companies that discharge into the bay directly accountable for the environmental damage they cause. Environmental degradation and improvement costs thus figure in business decisions and actions. Regulated companies have a strong incentive to reduce the BOD concentration of their wastewater discharges, although some have been known to dilute their discharges to avoid higher fees. Input water must be properly priced to avoid perverse responses to the EUFS.47 The CWA has institutionalized the EUFS, including the wastewater discharge fees first implemented by LLDA, nationwide.

ENR Concerns and Poverty Reduction

Environmental degradation is both a cause and an effect of poverty. It deprives the poor of natural resources and therefore livelihoods, affects their health, and increases their vulnerability. On the other hand, poverty forces overexploitation of natural resources. Poverty reduction in the Philippines has been slow and income inequality is high. In 2003, about 25% of Philippine families and 30% of the population were poor, and in 2006 the Gini coefficient of per capita income, at slightly over 0.45, was among Southeast Asia’s highest (ADB 2007e). Access to land, a key determinant of welfare in the rural areas of the Philippines, is highly inequitable and the inequity is worsening. Between 1960 and 2002, the Gini coefficient of land distribution increased from about 0.5 to about 0.57; in East Asia and the Pacific as a whole, it declined from 0.47 to 0.41 (ADB 2007e). Poverty reduction programs in the rural sector are improving productivity and the income of the majority of the population. Farmers and fishermen

47 International Lake Environment Committee Foundation (ILEC). Laguna de Bay: Experience and Lessons Learned Brief. Available: www.ilec.or.jp/eg/lbmi/reports/. 118 Country Environmental Analysis 2008: Philippines are the target beneficiaries. While agriculture is the largest employer, it is also the sector where poverty is most intense. Most programs have been going on for a long time, but, for lack of resources, the positive results are too slow in coming. Agriculture has not yet reached its agronomic limits. Despite limitations imposed by soil loss and declining watershed integrity, yield and cropping intensity can be increased. An important factor behind the relatively low agricultural productivity may be the suitability mismatch between agricultural land and its use. Much of the country’s agriculture is practiced on marginal land. Intensifying agriculture-based enterprises in new or marginally productive land, as indicated in the MTPDP 2004–2010, can improve rural incomes and ultimately reduce poverty. Considering the fragile state of agricultural lands, however, planned agribusiness ventures must incorporate environmental safeguards. In the urban areas, informal settlers are contributing to the congestion. In 2004, for the bottom decile of the population, access to electricity was about 35%; to safe drinking water, 25%; and to safe sanitation, a little over 40%. For the top two deciles, the corresponding figures were 100%, 80%, and 100%. Access to electricity and potable water across regions is also highly unequal, with the NCR far better served than ARMM (ADB 2007e). The 2002 APIS shows that only 70% of the poorest had access to safe drinking water, defined as an own-use or shared faucet or an own-use or shared tubed or piped well. Among the poorest, only 12.1% have faucets for their own use. The largest proportion of families using unsafe water sources—dug wells, rivers and streams, rainwater, water from peddlers—is in ARMM, where more than 35% of the poor rely on dug wells, and 26% on rivers and streams. Shared tubed or piped wells, while considered a safe water source, are not always convenient. People, especially women, often spend a good deal of time fetching water for their families’ daily use. This is a drain on productivity (ADB 2005). Poor water and sanitation services have pushed up infant and child mor- bidity in the secondary cities of the country. Some improvements in urban infrastructure have been achieved with ODA assistance, but the financing needed to narrow the gap is growing and is not likely to be met from traditional sources. Better environmental management can create more, and better, livelihood opportunities and improve security for people living in poverty. Better understanding of the links between poverty and the environment can lead to informed and effective local, national, and global policies to fight both poverty and environmental problems. Chapter 3: Challenges and Opportunities 119

Property rights are especially significant, as they lay the foundation for natural resource use. Incentives in the form of regulated prices, taxes, and subsidies can send important signals to resource users about economic opportunities. Natural resource use should be seen not only in the context of limiting access and exploitation, but also from the perspective of sustainable opportunities for poverty reduction (ADB 2005).

Chapter 4 Strategic Priorities

he following strategic priorities are areas of intervention where the Philippine Government may need assistance in responding to the T challenges and opportunities in ENR management. These priorities take into consideration the environmental concerns of the country, as well as the country’s current regulatory and institutional framework. Also included are regional and global ENR concerns. These priorities support the MTPDP and MDG targets of the Government and ADB’s long-term strategic framework.

Extensive Institutional Rebuilding and Strengthening of DENR

The ENR sector is perhaps the most heterogeneous sector in the bureaucracy. It involves several subsectors, concerns, and disciplines. The DENR and its attached agencies have overextended mandates and limited capacity. Extensive institutional assessment and rebuilding are priorities. The assessment would support DENR’s rationalization plan, and lead to better plan and program priorities and to a stronger organization. The resulting master plan for DENR will make the agency more robust and able to withstand changes in leadership. The rationalization plan is expected to be considered soon and DENR should be able to reorganize once it is approved. Capacity building, both in the technical aspects and in good governance, should be properly planned and carried out, together with equipment and technological improvements, for the effective implementation of the DENR mandate. Policies, guidelines, standards, and other directives should be harmonized and disseminated at all levels of the institution and the Government (central, regional, and local). At the same time, DENR should communicate and engage with Congress to secure the passage of other important environmental laws. The environmental trust funds supporting the various parts of the DENR mandate (e.g., CAA, CWA, ESWMA) should be made operational. The ICT Master Plan should be finalized and implemented. The DENR 122 Country Environmental Analysis 2008: Philippines mandate to educate and disclose environmental information to the public requires a comprehensive, sustainable, and effective IEC program. Other institutional support systems should be identified and included in the overall master plan. Such extensive institutional assessment and rebuilding will need the support of international donors and fund providers like ADB. The rebuilding program is expected to take several phases, and a number of years, to implement.

Better Management of ENR Data and Information

Data and information related to ENR management in the Philippines can be improved in two main areas: adequacy of basic data and information used in planning, management, and decision making; and management and dissemination of the data and information. The Framework Plan for Environment and Natural Resources Management identifies the DENR’s basic data and information needs related to forest cover, extent and definition of protected areas, and property boundaries. Data and information about the status of ENR in the Philippines are scattered over several organizations, and unreli- able in quality and format because of the fragmented responsibility for data collection and management, limited information sharing, and often-incon- sistent methods of data collection, among other reasons. Without good‑ quality data that allow comparisons between provinces and regions, and between the urban and rural sectors, the country’s progress toward the MDG targets cannot be assessed with any certainty (Government of the Philippines and UNDP 2003). ENR concerns in the Philippines would be better understood if watershed assessments also analyzed the relative importance of the causes of declining watershed integrity; the national land classification system reflected ENR management needs rather than historical requirements for resource extraction, and became the basis for land resources monitoring; coastal ecosystems were monitored; the viability and coverage of the marine component of the protected area system were assessed; fishery data were collected and analyzed to support the required policy shift toward fisheries management and conservation, and away from fisheries exploitation; the monitoring of compliance with water and air quality regulations could be made more robust; ambient urban environmental quality (water and air resources) could be monitored more widely; and knowledge could be increased, renewed, shared, and improved to build intellectual capital in water quality management, including online monitoring and compliance databases. In particular, DENR should make the establishment of a decision support system and a computer-based communication system a priority. Chapter 4: Strategic Priorities 123

Restructuring and Refocusing of the Philippine Environmental Impact Statement System

Priority should be given to restructuring and refocusing the PEISS. An ADB and World Bank study recommended decentralizing and deconcentrating environmental assessment, improving its quality, simplifying the requirements, focusing environmental assessment resources on environmentally critical projects and prioritizing ECA mapping, moving toward sector and regional assessment, and studying the costs and benefits or impact of new regulations. Follow‑on assistance from ADB may be needed to implement these recommendations.

Genuine Devolution and Decentralization of ENR Functions

More, and better, resources and stronger coordination between DENR and the LGUs will be needed to complete the devolution of ENR functions. DENR should be proactive, but LGUs should also be willing and able to accept ENR management responsibilities. LGU capacity can be validated through screening. This process will improve understanding of devolution and affirm commitment to sustainable ENR management as a collective responsibility.

Continued Application of Integrated Approach to Planning and Management

The DENR has adopted an integrated approach in many of its plans and programs. This ecosystem-based geographic focus should continue. DENR should develop an integrated sustainable management plan for priority ecosystems. In deciding on priority ecosystems, the DENR could set geographic priorities for investments and interventions that will help the country achieve key MDG and MTPDP targets in an integrated manner. The PAMBs and the management boards overseeing air and water quality are all geared toward community-based resource management. In these boards, local communities and LGUs have significant roles in implementing specific ENR mandates, while DENR provides overall guidance, direction, and management. In the context of integrated ecosystems management, strengthening the integration of these boards across sectors will help in minimizing conflicts and managing the local environment effectively. Communities will need extensive capacity building to manage area-wide 124 Country Environmental Analysis 2008: Philippines environments. DENR and the LGUs must be creative in developing simpler, more localized, and more innovative approaches for integrated ENR management and monitoring.

Adoption and Application of Spatial Development Plans

Various ODA agencies are assisting the Government in improving national and regional physical framework planning. As of December 2007, about 1,381 LGUs had approved CLUPs. These CLUPs are, however, backed by too little spatial data and information to integrate environmental concerns meaningfully. LGU must become better able to develop and use spatial information in local development plans. But even when these plans are well integrated with ENR data and information and respond well to the MTPDP requirements, local, regional, and national implementation remains a challenge. A case in point is the current state of infrastructure development in the LDBR. Most LGUs in the region have approved CLUPs, which presumably include land‑use plans. But illegal structures—barangay halls, schools, community gymnasiums, slaughter- houses—some of them owned by the LGUs themselves, are in full view along the coastline. LLDA, which is responsible for managing and protecting the use of the bay, must engage the cooperation of these LGUs in implementing the master plan for the sustainable use of the bay. To improve the environmental sustainability of land and natural resource allocation, use, and management, spatial development plans linked to national and regional physical framework plans must be in operation in the provinces and municipal levels. Not only will environmental concerns become an integral part of development decisions, but disaster‑prone areas will also be easier to identify and the design of mitigation measures more straightforward.

Increased Financing for Environmental Infrastructure Programs and Projects

Lack of access to safe water supply and sanitation facilities, combined with poor drainage, poses health risks, especially to the urban poor. According to a World Bank estimate, a 10-year program (2005–2015) for treating domestic wastewater in rural areas (costing $1.0 billion) and a piped system in urban areas (costing $3.1 billion) would require $350 million per year in operating costs aside from the capital costs of $4.1 billion. The Government’s current budget deficit and the high cost of providing sanitation and sewerage services would not allow these investments to be recouped within 10 years. Private Chapter 4: Strategic Priorities 125 sector participation and investment should therefore be encouraged, and users should pay the appropriate user fees (World Bank 2003a). Industries will also need substantial investments in wastewater treatment facilities, air pollution control devices, and hazardous waste treatment facilities to comply with CAA and CWA requirements, and cities and industries must put up solid waste management facilities. Pollution prevention and reduce‑reuse‑recycle programs should accompany these investments. Environmental financing must be made more accessible to private industry, LGUs, water districts, and research institutions for their infrastructure and research and development needs.

Use of Market-Based Instruments to Promote ENR Programs and Projects

With the success of EUFS in the Laguna de Bay and the explicit requirement for its use under the CWA, the nationwide implementation of the fee system for the sustainable financing of environmental programs and economically efficient pollution control will be a priority. This approach will encourage pollution prevention (reduce-reuse-recycle) approaches and incentive‑based environmental policy tools like trading and environmental management systems. To implement the EUFS and other MBIs EMB will need to shift from a purely CAC to a combined CAC-MBI approach. MBI-based programs should be promoted and improved. New MBIs (e.g., point‑nonpoint source trading programs, incentive regulation, environmental management systems, public disclosure systems), particularly those that are applicable to the ENR subsectors, may be studied. User fees (payment for environmental services), for example, may be suitable for water districts and water concessionaires that get their water from specific watersheds. The fees may be used to protect and maintain these watersheds. Any one or a combination of these MBI approaches can be used in the context of an integrated ENR management project.

Integration of ENR Principles into Poverty Reduction Programs

Investments in the implementation of the Comprehensive Agrarian Reform Program (CARP) are important for reducing rural poverty, but they have to incorporate ENR principles to be environmentally and economically sustainable and viable. Upland agriculture, for example, is contributing to top- soil loss with long-term negative consequences for agricultural productivity 126 Country Environmental Analysis 2008: Philippines on‑site, and to off-site sedimentation, with impact on downstream irrigation, livelihood activities, and water supply to communities. It is not known how much of the 2 million hectares of agriculture land in upland areas has been formalized through CARP investments and is practicing sloping agricultural land technology. Institutional capacity for urban water quality management in Metro Manila is being strengthened through the ADB-funded Pasig River Environmental Management and Rehabilitation Sector Development Program. But in secondary cities water supply and sanitation systems continue to deteriorate for lack of maintenance and investment. The immediate priority is to integrate basic sanitation into targeted poverty reduction programs in slum areas and regions that are lagging behind. Deforestation, poor agricultural practices and consequent land degradation and loss of productivity, pollution of water bodies affecting aquaculture, and destruction of coastal and marine ecosystems exemplify the link between environment and poverty that is costing the livelihoods of the most vulnerable and the poor. New projects and programs should take this connection between ENR and poverty into account. Chapter 5 Implications for the Country Partnership Strategy

ADB’s Long‑Term Strategic Framework48

The long-term strategic framework for 2008–2020 (Strategy 2020), replac- ing the long‑term strategic framework for 2001–2015, gives ADB a more relevant and innovative role in shaping the region’s future. ADB’s corporate vision under Strategy 2020 continues to be “an Asia and Pacific free of poverty,” and its mission is to help its developing member countries (DMCs) reduce poverty and improve their lives. ADB will direct its efforts at three complementary strategic agendas: inclusive growth, environmentally sustainable growth, and regional integration. To better mobilize resources and to maximize returns on its unique regional experience and comparative strengths, ADB will apply itself to five drivers of change: private sector development and private sector operations, good governance and capacity development, gender equity, knowledge solutions, and partnerships. Its operations will have five core specializations—infrastructure, environment including climate change, regional cooperation and integration, financial sector development, and education—that best support its chosen agendas, reflect the DMCs’ needs and ADB’s comparative strengths, and complement the efforts of development partners. In other areas, ADB operations will selectively continue on the basis of country priorities and needs and other partners’ undertakings.

48 Taken from ADB (2008b). 128 Country Environmental Analysis 2008: Philippines

Environmental49 Components of Key ADB Strategies for the Philippines

Philippine Country Partnership Strategy

CPS 2005–2007 covered only 3 years because of the economic uncertainties foreseen in 2005. After 2007, ADB and the Government agreed on a country operations business plan (COBP) for 2007–2008, which extended the CPS till 2008, and ADB prepared another COBP for 2009–2010 to extend the CPS further and to smooth the transition to CPS 2011–2015. CPS 2011–2015 will be aligned with the new MTPDP, which starts in 2011. CPS 2005–2007 assigned priority to binding constraints on more rapid, more inclusive growth and swifter poverty reduction. Deviating somewhat from ADB’s past model of engaging with the Philippines, it paid greater attention to the sustained quality of the portfolio, to thematic, rather than sector-based, strategies (fiscal consolidation, improved investment climate, and accelerated attainment of the MDGs), and to greater project selectiv- ity. CPS 2005–2007 set no annual lending targets, accommodated political and economic uncertainties, and emphasized results-based partnerships with high lending contingent on macroeconomic performance. It pursued sector- specific reforms, wider partnerships, and, most importantly, explicit align- ment with Philippine national priorities. Substantial policy-based operations gained prominence in support of reforms. ADB released COBP 2007–2008 in September 2007 and finalized COBP 2009–2010 in 2008. Both COBPs retain the priorities of CPS 2005–2007 (e.g., infrastructure, environment, and financial sector development) with pipelines of new lending and nonlending products. The emphasis on investments in MDG-related programs, infrastructure, and the environment is expected to intensify in CPS 2011–2015 as the country strives to become more competitive, to achieve environmental sustainability, and to reduce poverty.

Government-ADB Poverty Partnership Agreement

The Government-ADB Poverty Partnership Agreement (PPA) signed in October 2001 expressed ADB’s strategic support for the Government’s efforts to meet the major goals of MTPDP 2001–2004: macroeconomic stability and equitable growth, agricultural modernization with social equity, compre-

49 Unless otherwise specified, the term “environmental,” as used in this section of the report, is taken to include natural resources. Chapter 5: Implications for Country Partnership Strategy 129 hensive human development and protection of the vulnerable, and promotion of good governance and the rule of law. MTPDP 2004–2010 embraces these same goals. Strategic support for the ENR sector, as spelled out in the PPA, takes the form of “community‑based natural resource management and environmental protection as elements of comprehensive rural development.”

Philippine Urban Infrastructure Road Map

The ADB Urban Infrastructure Sector Roadmap (2008) for the Philippines is a tool for information management, planning, and performance monitoring. It provides a snapshot of the state of urbanization, and identifies and pri- oritizes future urban infrastructure needs in response to urbanization trends. The road map supports strategic decisions regarding investment priorities of the Government and ADB, and the allocation of TA resources for the preparation of new investment projects, or grant funding for pilot projects, through mechanisms like the Japan Fund for Poverty Reduction ( JFPR). It deals in particular with the country’s actions toward the attainment of the MDGs. The road map will become part of the CPS, and will be updated each time the CPS is updated.

ADB’s Environment Policy

ADB’s Environment Policy (2002) sets the direction for the inclusion of environmental considerations in the Philippine lending program. The policy, as applied to the Philippines, enjoins ADB to help ensure that environmental resources on which the poor depend are managed sustainably and that environmental quality is improved, to make economic development more sustainable by correcting market and policy failures and bringing about institutional change to speed up the flow of resources for environmental improvement, to help maintain global life support systems and address regional trans‑boundary issues relevant to the country, and to engage a wide range of stakeholders in tackling environmental problems effectively.

Environmental Considerations in the Philippine Lending Portfolio

The recent lending portfolio for the Philippines had declining investment in projects with significant ENR components, an increasing proportion of environmental lending to the rural sector; a small percentage (less than 10%) of proposed lending fulfilling the environmental objectives of the 130 Country Environmental Analysis 2008: Philippines

PPA, and a modest percentage (10%–20%) of proposed lending fulfilling the environmental objectives of the most recent CPS (and therefore the corresponding MTPDP in general).

Current Portfolio

Since ADB started lending to the Philippines in 1969, it has approved 196 loans totaling $9.2 billion. Of these, 46 loans were for agriculture and natural resources (16.63% of the total) and 20 loans were for water supply, sanitation, and waste management (7.90%). Multi-sector loans, which included environment-related activities, were 12.71% of the total amount (ADB 2007c). From one of ADB’s weakest, the Philippine portfolio has been transformed into one of its best portfolios, thereby enhancing development impact and providing a solid platform for new operations. Project components that were unlikely to deliver expected outcomes were redesigned or canceled, policy reforms were accelerated to facilitate program loan disburse- ments, implementation oversight was strengthened, portfolio reviews were enhanced, and more attention was given to quality at entry for new activities. Project outputs could thus be delivered faster and better to stakeholders. ADB’s disbursement of $836.6 million in 2006, its highest ever, resulted in the first positive net resource transfer of $268.5 million from ADB to the Philippines since 1997. The agriculture and natural resources sector had a 39.1% success rate for 23 projects that were rated and a 46.2% success rate for 13 water supply, sanitation, and waste management projects rated (ADB 2007c). COBP 2009–2010 and the upcoming CPS 2011–2015 are likely to have a higher proportion of project lending than CPS 2005–2007 because of the national Government’s improved budget position, the renewed priority assigned by the Government to the public infrastructure and social sectors, new modes of ADB lending, and more liberal cost sharing for project lending by ADB.

Portfolio in CPS 2005–2007, COBP 2007–2008, and COBP 2009–2010

Since January 2005, ADB has approved six public sector loans totaling $1.109 billion (74% of the high case scenario), $1.055 billion (95%) of which was for policy-based operations, and $13.7 million for six TA- and grant-financed projects; generated $559 million in cofinancing; approved $24.4 million for private sector operations; and made two peso bond issues Chapter 5: Implications for Country Partnership Strategy 131 totaling $136 million, to finance local currency operations. Among the public sector loans was an environmental project loan, the Integrated Coastal Resource Management Project (ICRMP) worth $38.8 million, and an advisory TA project, Sustainable Aquaculture Development for Poverty Reduction ($0.7 million). Lined up for 2008 was the Agrarian Reform Communities II Project ($85 million), and for 2009 the Integrated Natural Resources and Environmental Management Project ($80 million). Much is expected from these environmental projects, particularly in increasing participatory and local management of natural resources and integrating poverty reduction and environmental management. ADB is also planning project preparatory TA (2009), followed by a loan project (2010), for environmental improvement in the Agusan River Basin in Mindanao. An objective will be to bring the integrated basin management approach into the project development mainstream. Another loan project slated for 2010 is the Irrigation Systems Operations Efficiency Improvement Project ($50 million). In the 2009–2010 pipeline are the Metro Manila Urban Services for the Poor and Water District Development projects. The 2005–2007 lending program was processed largely as planned. But alternative financing was sought for the Angat Water Utilization and Aqueduct Improvement Project, and the Agrarian Reform Communities II Project was moved to the 2008 pipline and the Irrigation Systems Operations Efficiency Improvement Project ($50 million) to 2010. Appendix 5 shows the status of public sector lending and private sector operations and nonlending operations.

Strategic Issues

Largely sectoral approaches to socioeconomic development in general and ENR management in particular impede environmentally sustainable economic growth. ADB is therefore promoting integrated approaches in ongoing projects like ICRMP, which seeks to improve the protection and management of productive natural resources in the coastal areas. Similar approaches were taken in the advisory TA for the Master Plan for Agusan River System, which is slated to be a loan project in 2010. Through these integrated projects, as well as stand‑alone water supply, sanitation, and waste management projects, ADB will support MDG targets and improve the environment and well-being of the people. ADB has provided assistance in implementing the ARC approach. The Agrarian Reform Communities Project (ARCP) was implemented with ADB support, and its second phase is undergoing approval by ADB. ADB’s water portfolio in the Philippines has been reduced over the years. Advisory TA supported the preparation of a master plan for the Agusan 132 Country Environmental Analysis 2008: Philippines river basin, one of the priority river basins being considered for a river basin organization under the RBCO of DENR. The ADB‑financed analytical and planning framework is providing the basis for further substantive discussion and partnership with RBCO. Support for irrigation and agriculture has centered on rehabilitating infrastructure, extending the command area, and developing institutions. While the infrastructure interventions have generally been successful, the transfer of operation and maintenance responsibilities and the introduction of higher‑value cropping strategies have encountered difficulties. According to an ADB case study on environmental safeguards in the Philippines (part of a four‑country study in 2006), the Philippines’ and ADB’s project environmental categorization systems have similar environmental assessment requirements and recognize the need for open and proactive consultations to promote project acceptability and participatory development. A unique aspect of the Philippine system is the separate category for environmental improvement (ADB 2007b). Institutional capacity (in the national and local governments) and the ENR legal and policy framework have significant limitations. Ineffective spatial planning and gaps in data and information management, requiring, among others, public awareness building through IEC activities in projects and DENR’s comprehensive master plan implementation, are strategic areas on which ADB can focus its attention.

Possible ADB Interventions Mainstreaming of Environment Considerations in Government Policies and Investment Programs

The ADB case study on environmental safeguards in the Philippines recommended that ADB’s environmental assistance to the Philippines focus particularly on improving local capacity to implement and monitor compliance with environmental protection policies and laws. Such assistance can be at the project level (through the monitoring of ADB-funded projects), at the sector level (through technical and other assistance), or at national and local government levels. Many environmental assessments in ADB-financed projects must comply with the environmental policies and procedures of both the Government and ADB, and duplication sometimes results. Although ADB’s Environment Policy (2002) sees the need for integration with national procedures, this harmonization is yet to be fully achieved (ADB 2006c). The need to strengthen country safeguard systems is recognized in ADB’s safeguard policy update. ADB should work with the Government Chapter 5: Implications for Country Partnership Strategy 133 to develop policies and procedures that will fully integrate environmental considerations into the development policies, programs, and projects of the Government; help harmonize its ENR and climate change laws and policies, and resolve institutional conflicts and gaps; and strengthen capacity and remove constraints on planning, implementation, and enforcement of ENR laws, regulations, and policies.

Environment as a Core Area of Operation

ADB intends to promote and invest in more sustainable environmental management projects while capitalizing on its operational strengths. The emphasis will be in the core areas of climate change, livable cities, and complementary actions. Projects initially identified for the Philippines that respond to both ADB’s and the Government’s priorities are grouped below under ADB’s focal areas.

Infrastructure and Climate Change ADB will help DMCs move their economies into low-carbon growth paths by improving energy efficiency, expanding the use of clean energy, - reduc ing fugitive GHG emissions such as methane from landfills, modernizing public transport, and arresting deforestation. ADB will also help DMCs adapt to the unavoidable impact of climate change through planning, defen- sive measures, insurance and other risk-sharing instruments, and “climate- proof ” projects. Disaster risk management will be a vital part of development. Sustainable management of forest and other natural resources for the provision of clean water supplies, biodiversity protection, and carbon sequestration to offset GHG emissions will be part of ADB’s response to climate change (ADB 2008c). The objectives of the Philippine Government in the energy sector are secure, accessible, and reasonably priced energy supply; cleaner and more efficient energy; strong partnership and collaboration with key partners and stakeholders; and empowered and protected energy publics. ADB should help the Government more directly to meet these objectives while seeing to it that the power projects conform to the Power Sector Development Program (Loan 2282-PHI) and ADB’s climate change programs. The $200 million private sector loan for the acquisition and rehabilitation of the Masinloc coal-fired thermal power plant is fully in line with ADB’s country and energy sector strategies and the Power Sector Development Program. But a remedial action plan is needed to rectify significant environmental issues related to air emissions, wastewater, stormwater and drainage, materials handling and storage, waste management, marine ecological impact, and contaminated groundmass. Rehabilitation should restore the plant to its 134 Country Environmental Analysis 2008: Philippines original operating and environmental performance with no expansion or addition, improve operating efficiency, reduce environmental emissions, and increase the health and safety standards of the plant. The Renewable Energy and Livelihood Development for the Poor in Negros Occidental project (grant; PHI37267-01) responds to this type of intervention and at the same time, to ADB’s ultimate goal of poverty reduction. This JFPR project is promoting the efficient use of renewable energy to sustain the livelihood of poor local communities in off-grid areas in partnership with the private sector and civil society. With respect to “green” environment issues, investments to create or enhance forest capital have consistently been much less than disinvestments (caused by deforestation and forest degradation). ADB should help contain the loss of forest cover, using a river basin or landscape approach, and support projects that do not adversely affect forest capital and biodiversity resources (ADB 2006b). Economic instruments (payments for environmental services, CDM, etc.) that incorporate biological diversity and climate change mitigation or adaptation concerns (through global funds like GEF, regional initiatives like the CTI) and poverty‑environment links will be integrated into projects. Interventions that help the Government to realize its water resource and water quality management frameworks in the context of river basin planning likewise complement ADB’s ICRMP. Investments in water supply and sanitation infrastructure fully support the CWA and the MDG. ADB projects that will promote interventions in this area are the Integrated Natural Resources and Environmental Management Program, the Agusan River Basin Master Plan project, the Irrigation Systems Operation Efficiency Improvement Project, and the Agrarian Reform Communities II Project. ADB should consider a project that would improve upland rural livelihood through environmentally appropriate crop diversification in priority upland areas. Candidate priority areas would be watersheds with significant problems of inappropriate agricultural cultivation in sloping upland areas, an approved watershed management plan, no other constraints (land titling, CARP completion, rural infrastructure, transportation for inputs and for products), and beneficiaries already participating in community-based forest management.

Livable Cities To reduce the carbon footprint of Asia’s cities, ADB will assist DMCs and their municipalities in addressing a range of environmental problems resulting from rapid urbanization. These concerns include air and water pollution, pollution-causing transport, solid waste management, and urban waste. Chapter 5: Implications for Country Partnership Strategy 135

Another area needing urgent attention in the wake of rapid urbanization is water supply, sanitation, and waste management. Opportunities for partnerships between the public and private sectors should be pursued, particularly in efficient urban transport systems, to contain air pollution. The main cities of the Philippines have received significant lending assistance from ADB, the World Bank, and JBIC for urban environmental infrastructure to ensure that urban environmental quality keeps pace as much as possible with the rapidly growing urban population. But similar investments in many secondary cities are still needed. Two projects being developed by ADB to provide urban environment infrastructure for Manila and secondary cities are the multitranche Metro Manila Services for the Urban Poor and the Water District Development Project. ADB will continue to help achieve the MTPDP objective of “creating [a] healthier environment for the population” by improving air and water quality, urban infrastructure, and marine and coastal resource management.

Complementary Actions ADB will help bring environmental concerns into the DMC policy and investment program mainstream, while strengthening the capacity of public institutions for ENR regulation and enforcement. In its operations and country systems, ADB will continue to reinforce environmental safeguards and to promote and support regional cooperation in ENR management (e.g., CTI, use of GEF funds and CDM to respond to regional and global concerns). Interventions that integrate economic instruments (e.g., reduce‑reuse-recycle, pollution prevention, environmental management systems, pollution charges, trading, payment for environmental services, public disclosure systems) and poverty‑environment links will be prioritized. These initiatives and interventions will also provide effective approaches to the sharing of environmental public goods and facilitate the transfer of knowledge in environmental management and new technologies. ADB should give priority to the institutional rebuilding of DENR, perhaps in cooperation with other funding agencies, and as a component of other projects or as a separate major project. Supporting the devolution of ENR management will be a crucial aspect of this assistance. Effective spatial planning laws, plans, institutions, and implementation mechanisms, as well as ENR data and information management and support for environmental awareness building through IEC activities will need to be made part of the development mainstream through ADB’s TA and project intervention activities. With a CPS 2011–2015 for the Philippines and a new MTPDP expected by 2011, ADB and the Government will continue to develop other projects 136 Country Environmental Analysis 2008: Philippines and technical assistance for the environmental priorities and concerns identified in this analysis that will also be consistent with ADB’s Strategy 2020 and the Government’s new MTPDP.

Strategic Environmental Evaluation of Proposed Pipeline Projects in COBP 2009–2010 and CPS 2011–2015

The projects lined up for COBP 2009–2010 and anticipated in the upcoming CPS 2011–2015, will undergo environmental evaluation based on ADB’s Environment Policy (2002). At least some of these projects should deal with the environmental issues and priorities discussed here, consistent with ADB’s Strategy 2020 and the Government’s MTPDP and MDG targets.

Summary of Strategic Environmental Evaluation of Proposed Pipeline Projects in COBP 2009–2010 and CPS 2011–2015

The strategic environmental assessment in Table 20 suggests ways of bringing environmental assessment criteria into ADB’s project mainstream, in the light of the challenges and priorities identified in this analysis. Appendixes 6 and 7, after the table, present a summary of the results of the consultative meetings on this report and a list of the participants at the meetings. Chapter 5: Implications for Country Partnership Strategy 137 continued Measures Environmental Environmental Risk Reduction Risk Reduction Take into account Take learned lessons earlierfrom initiatives to sustainable ensure management of natural resources

Project PPTA will PPTA explore possibility of facilitating resource generation by LGUs will Options be for considered mainstreaming a mechanism similar to that used in Rewarding for Upland Poor Environmental Services project to Strengthen Opportunities • • Assessment Mainstream Mainstream integrated watershed management concepts Mainstream related concepts to payment for environmental services Strengthen local environmental institutions Adopt ‑ impact low and proven indigenous technologies Improve environmental services by investigating opportunities for CDM • • • • •

in CSPU Fragile Fragile ecosystem of potential project sites Sensitivity of indigenous cultures, technologies, and practices Watershed context Environmental Issues Identified Issues • • • Preparation of Preparation updated strategy for integrated ENR management of watersheds and investment phased for program of implementation the strategy Baseline studies for detailed design and feasibility study for integrated natural resources and environmental management Detailed design and feasibility study for project investment of Confirmation appropriateness and acceptability of feasibility study of project investment Proposed Activities Proposed Phase I • Phase II • • • Type/Cost CPI, ENV; ENV; CPI, PPTA, loan project $0.850 million Strategic Environmental Evaluation of Proposed Pipeline Projects in COBP 2009–2010 and CPS 2011–2015 Projects Pipeline of Proposed Evaluation Environmental Strategic

Project/ Program Name Integrated Natural and Resources Environmental Management Program Table 20: Table 138 Country Environmental Analysis 2008: Philippines continued Measures Environmental Environmental Risk Reduction Risk Reduction

Project to Strengthen Opportunities Assessment Consider Consider and regional global impact like climate change Consider downstream impact on and streams habitats including coastal areas Implement environmental management and monitoring measures adequate to safeguard unique biophysical and cultural features sites of project • • •

in CSPU Environmental Issues Identified Issues Proposed Activities Proposed Type/Cost

continued Project/ Program Name Table 20 Table Chapter 5: Implications for Country Partnership Strategy 139 continued Measures Environmental Environmental Risk Reduction Risk Reduction Should provide Should provide for capacity building for regional environmental agencies

Project to Strengthen Opportunities Consider lessons lessons Consider learned from watershed related and projects demonstration activities, especially findings ongoing from demonstration activity involving water pollution in Meycauayan Bulacan, River, artisanal from gold metal and precious industries refining Assessment Strengthen local environmental institutions Improve environmental services by studying opportunities for CDM Consider and regional global impact like climate change in design project Consider downstream impact on and streams habitats including coastal areas • • • •

in CSPU Projects poised Projects to achieve significant environmental benefits project No potential shows to cause highly problematic residual environmental impact that will be beyond or mitigation will negate the environmental benefits Environmental Issues Identified Issues • •

RBO formation and development quality Water management Flooding and risk water-related management resources Water development Watershed management Indigenous peoples development Agusan marsh wildlife sanctuary management Proposed Activities Proposed 271 projects to be 271 projects implemented under 7 programs: • • • • • • • Type/Cost CPI, ENV; ENV; CPI, loan project $0.970 million

continued Project/ Program Name Agusan River Basin Master Plan Project Table 20 Table 140 Country Environmental Analysis 2008: Philippines continued Measures Build mitigation into measures design project for Provide capacity building for regional environmental agencies Environmental Environmental Risk Reduction Risk Reduction • •

Project to Strengthen Opportunities Emphasize ‑ sector multi coordination Assessment Emphasize resources natural (land and water) management in the context of river basins for sustainable irrigation services Build integrated pest management concepts into project environmental design Investigate harmful subsidies for fertilizers and pesticides • • •

in CSPU Project will Project strengthen integrated water resources management in river basins irrigation where systems will be rehabilitated About 32,000 of land hectares will benefit improved from irrigation services Environmental Issues Identified Issues • • Construction of Saug River multipurpose system of Rehabilitation irrigation systems Irrigation management transfer Sector development (policyprogram reform) and supplyMarket chain development Proposed Activities Proposed • • • • • lion, lion,

Type/Cost NC, ENV; ENV; NC, PPTA loan $30.0 million $0.550 mi l

continued Project/ Program Name Irrigation Systems Operation Efficiency Improvement Project Table 20 Table Chapter 5: Implications for Country Partnership Strategy 141 continued Measures Environmental Environmental assessment should be the required, level and details of which shall depend on the types of projects recommended for financing Program and project environmental performance should be monitored Environmental Environmental Risk Reduction Risk Reduction • •

Project to Strengthen Opportunities Assessment LGU infrastructure LGU would have projects varying degrees of environmental impact

in CSPU Environmental Issues Identified Issues Consider water Consider supply and systemssanitation for resettlement sites

a structure natural resources, natural resources, and socioeconomic in the conditions including land area, use and zoning plans and development constraints; needed to support social services and livelihood programs for families in areas; depressed technical (iii) LGUs’ and administrative capacity to plan, operate, implement, and maintain infrastructure and facilities; (ii) infr physical, Assess (i) physical, Proposed Activities Proposed • Type/Cost NC, ECO; ECO; NC, PPTA $0.650 million

continued Project/ Program Name Philippines Basic Urban Services Sector Project Table 20 Table 142 Country Environmental Analysis 2008: Philippines continued Measures Environmental Environmental Risk Reduction Risk Reduction

Project to Strengthen Opportunities Assessment

in CSPU Environmental Issues Identified Issues e hensive medium- and long- term infrastructure development planning and capacityinstitutional development for in the project LGUs area. Identify representative sample of six cities and municipalities, basis to provide and criteria for evaluating other seeking LGUs access to financial facility the through project. (iv) compr Proposed Activities Proposed • Type/Cost

continued Project/ Program Name Table 20 Table Chapter 5: Implications for Country Partnership Strategy 143 continued Measures Environmental Environmental Risk Reduction Risk Reduction To be identified To

Project to Strengthen Opportunities To be identified To Assessment To be identified To be identified To

in CSPU Environmental Issues Identified Issues Environmental Environmental management systems should be emphasized be identified To Proposed Activities Proposed Strengthen local expenditure government in management, investment planning, revenue programming, and generation, budgeting be identified To Type/Cost NC, ECO; ECO; NC, AOTA $0.65 million sector; Private $18.4 million continued Project/ Program Name Strengthening Provincial/ Local Planning and Expenditure Management, Phase II SME Development Support (Financing Access Improvement Project) Table 20 Table 144 Country Environmental Analysis 2008: Philippines continued Measures Environmental Environmental Risk Reduction Risk Reduction To be identified To

Project Opportunity to link project with river basin planning assistance from ADB to develop institutional mechanisms for including coastal resource issues in river basin plans. During loan fact-finding and assess appraisal, appropriateness of including as a Butuan Bay area subproject if possible and, and appropriate, link subproject with Agusan River systems master plan. to Strengthen Opportunities • Assessment Environmental Environmental issues and concerns identified in CSPU paper are concept appropriate and valid

in CSPU Environmental Issues Identified Issues Will social address and environmental issues in marine and coastal sector Institutional Institutional and strengthening management project Community-based coastal resource management Coastal pollution control Coastal community and livelihood development Proposed Activities Proposed • • • • Type/Cost CPI, ENV; ENV; CPI, loan 35 project

continued Project/ Program Name Integrated Coastal Resources Management Project Table 20 Table Chapter 5: Implications for Country Partnership Strategy 145 continued Measures Environmental Environmental Risk Reduction Risk Reduction

Project Assess viability and coverage of marine component of protected system, area as was done for terrestrial in component 2002 NBSAP preparation. Costs would be modest, grant donor financing could and be found, study could be implemented by an international NGO active in the in sector this Philippines. to Strengthen Opportunities • Assessment

in CSPU Environmental Issues Identified Issues Proposed Activities Proposed Type/Cost

continued Project/ Program Name Table 20 Table 146 Country Environmental Analysis 2008: Philippines continued Measures Environmental Environmental Risk Reduction Risk Reduction In accordance In accordance with ADB’s Environmental Assessment Guidelines, a policyconduct as part of EIA and the project include results of in preparation slum eradication and upgrading and program, policy agenda

Project to Strengthen Opportunities To be identified To Assessment Project must must Project conform to Philippine environmental rules and regulations and ADB’s Environment (2002); Policy is a if there discrepancy between the ADB’s two, policy will prevail Contractors implement must environmental mitigation stated measures in IEEs • •

in CSPU No significant No environmental impact that needed further study was and identified, no adverse environmental impact is anticipated If required, and ECCs IEEs for project activities will be processed Environmental Issues Identified Issues • • Address needs of Address urban poor families in slums and informal settlements Manila; in Metro designed as pilot in two cities project replication for future in other cities Long-term goal: living improve and conditions quality of life of urban poor families by providing infrastructure better services, decent environment, and affordable housing with secure in existing or tenure and new settlements, informal improved settlements Proposed Activities Proposed • • lion l mi Type/Cost ENV, CPI, CPI, ENV, TA HD; GG, $1.2 million, loan, $765.74

continued Project/ Program Name Manila Metro Urban Services for the Poor (multi-tranch) Table 20 Table Chapter 5: Implications for Country Partnership Strategy 147 continued Measures Environmental Environmental Risk Reduction Risk Reduction

Project to Strengthen Opportunities Assessment

in CSPU Environmental Issues Identified Issues

Major outputs: outputs: Major development site infrastructure, and housing affordable poor, the for for microfinance and neighborhood improvements, home development, capacity policy supporting and reforms. sector and two first of part As poor urban outputs, receive will families through tenure secure agreements. usufruct Infrastructure include will services neighborhood water like services sanitation, supply, roads access footpaths, and flood and drainage waste solid control, and management, lighting. street Proposed Activities Proposed • Type/Cost

continued Project/ Program Name Table 20 Table 148 Country Environmental Analysis 2008: Philippines continued Measures Environmental Environmental Risk Reduction Risk Reduction To be identified To be included in To PPTA

Project to Strengthen Opportunities To be identified To be identified To Assessment Will policy require under new EIA environmental assessment guidelines be identified To

in CSPU Environmental Issues Identified Issues To be identified To Environmental issues to be identified in PPTA - - - transmission sys transmission ‑ Renewable energy energy Renewable and development energy of use efficient Energy-based livelihood development management Project impact poverty and assessment and Consolidate technical strengthen capacity financial and coopera electric of good, provide to tives in service affordable areas rural for financing Provide system distribution includ upgrading, of acquisition ing sub Transco, from tems enable will which cooperatives electric the in participate to WESM Proposed Activities Proposed • • • • •

Type/Cost ENV, CPI, CPI, ENV, grant HD; $1.5 million PPTA ECO; $0.550 million, loan $60.0 million

continued Project/ Program Name Renewable Energy and Livelihood Development for the Poor in Negros Occidental Strengthening of Electric Cooperatives Table 20 Table Chapter 5: Implications for Country Partnership Strategy 149 continued Measures Ensure Ensure environmental assessments include assessment of cumulative effects, according to ADB guidelines, of increased accessibility due to rural road improvements, and effects of project priorityon conservation identified areas in 2002 NBSAP Environmental Environmental Risk Reduction Risk Reduction •

Project As part of design, project assess land suitability to identify environmentally sustainable land ‑ use and practices, design and include project components to promote such land ‑ use practices that will maintain watershed integrity to Strengthen Opportunities • Assessment Possible Possible negative environmental consequences of land ‑ use practices as promoted of a result agrarian reform in uplands of effect Indirect upgrading road and extension is increased accessibility to productive or protected natural resources, and decreased watershed integrity soil through erosion • •

in CSPU Environmental Issues Identified Issues Will require assurance that benefits project all and not only the elite in and communities, agriculture new that technologies do not use excessive to lead of agrochemicals Proposed Activities Proposed Project components components Project similar to those of (i) provision I: ARCP of rural infrastructure, (ii) land titling, (iii) development support services, and (iv) project management and capacity building of and ARC LGU, DAR, organizations Type/Cost CPI, ECO, ECO, CPI, PPTA PSD; $0.200 million, loan project $110 million

continued Project/ Program Name Agrarian Reform Communities II (ARCP) Table 20 Table 150 Country Environmental Analysis 2008: Philippines continued Measures Address Address cumulative effects in environmental management plan Environmental Environmental Risk Reduction Risk Reduction •

Project Consider Consider supporting protection of priority conservation in project areas evenarea if environmental assessment concludes that will project have no impact those areas; on costs would be relatively modest and grant financing could be found to Strengthen Opportunities • Assessment

in CSPU Environmental Issues Identified Issues Proposed Activities Proposed Type/Cost

continued Project/ Program Name Table 20 Table Chapter 5: Implications for Country Partnership Strategy 151 continued Measures Environmental Environmental Risk Reduction Risk Reduction Prepare a Prepare programmatic environmental safeguards framework for sector investment component

Project As part of design: project (i) identify factors behind that soil erosion possibly add to O&M costs of irrigation and system; (ii) design and cost remedial to measures make project sustainable more the long over term to Strengthen Opportunities •

Assessment Likely to be a category B project. Environmental assessment should include effects of project priorityon conservation identified areas in 2002 NBSAP. watershed Poor integrity caused by soil from erosion uplands due to inappropriate land use practices may be increasing O&M costs of irrigation systems • •

in CSPU Environmental Issues Identified Issues NIA is in financial difficulties because irrigation of low service fee collection ratio and management higher cost of O&M irrigation facilities. Beneficiaries unwilling to are fees pay because irrigation water is not always available. Proposed Activities Proposed For efficient and For sustainable water national management, irrigation systems should be rehabilitated participatorythrough irrigation management and transfer of facilities to completed and water user groups, should be financially will PPTA sustainable. help the Government to project formulate water and improve management efficiency in irrigation systems.

Type/Cost PI, ECO; ECO; PI, PPTA $0.9 million, sector loan $30 million

continued Project/ Program Name Irrigation Sector II Table 20 Table 152 Country Environmental Analysis 2008: Philippines continued Measures Environmental Environmental Risk Reduction Risk Reduction

Project Consider Consider supporting protection of priority conservation in the areas even area project if environmental assessment concludes that will project have no impact those areas. on Costs would be relatively modest and grant financing could be found. to Strengthen Opportunities • Assessment Will require programmatic under new EIA environmental assessment guidelines •

in CSPU Environmental Issues Identified Issues Proposed Activities Proposed Type/Cost

continued Project/ Program Name Table 20 Table Chapter 5: Implications for Country Partnership Strategy 153 continued Measures Ensure Ensure environmental assessments include assessment of cumulative effects, according to ADB guidelines, of increased accessibility ruralfrom road improvements, and effects of project priorityon conservation identified areas in 2002 NBSAP Address cumulative effects in EMP Environmental Environmental Risk Reduction Risk Reduction • •

Project to Strengthen Opportunities Consider Consider supporting protection of priority conservation in the areas even area project if environmental assessment concludes that the will haveproject those no impact on The costs areas. would be relatively modest and grant financing could be found. Assessment An indirect effect indirect An upgrading of road and extension is increased accessibility to or productive natural protected This resources. be a particularmay issue in that part that of the project the will improve hinterland.

in CSPU Environmental Issues Identified Issues To be identified To improving improving

attracting attracting improving transport transport improving

improving improving

Proposed Activities Proposed Will improve access to to access improve Will southern of areas remote (particularly Philippines and Sulu, Mindanao, more a through Palawan) complementary, efficient, and sea, (air, intermodal system. transport land) will issues Critical (i) include and infrastructure and inter- on services links, intra-island on particularly routes, noncommercial sustainable through mechanisms; funding (ii) and intermodal connections; hinterland (iii) sector private increased and participation; (iv) safety. Type/Cost NC, ECO, ECO, NC, PPTA PSD; $1.0 million, loan project $100 million

continued Project/ Program Name Intermodal Transport Development Table 20 Table 154 Country Environmental Analysis 2008: Philippines continued Measures Environmental Environmental Risk Reduction Risk Reduction Ensure PPTA PPTA Ensure of includes EIA project be identified To

Project to Strengthen Opportunities None TA that Ensure paper objectives and and scope, the consultant’s terms of reference, include the need to incorporate environmental considerations into planning development guidelines Assessment Environmental Environmental issues and concerns identified in CSPU paper are concept appropriate and valid Environmental issues and concerns identified in CSPU paper are concept appropriate and valid

in CSPU Environmental Issues Identified Issues Environmental Environmental concerns and issues to be determined by PPTA Provincial development guidelines should social and address environmental issues

to develop, develop, to

to formulate planning planning formulate to

Proposed Activities Proposed Will prepare develop prepare Will small for plan ment gas marsh and field gas feasibility and resources, sector private for study in ADB with financing, role catalytic to objective: General provincial strengthen planning, development for particularly and growth economic reduction. poverty objectives: Specific provincial for guidelines planning, development (ii) and training, through for capacity provincial planning, development prioritization, strategic allocation, resource investment and programming. (i) Type/Cost PI, ECO, ECO, PI, PPTA PSD; $0.95 million GG; ECO, ADTA $0.20 million

continued Project/ Program Name Development of Small-Scale Gas Field and Marsh Gas in the Philippines Strengthening Provincial Planning Table 20 Table Chapter 5: Implications for Country Partnership Strategy 155 continued Measures Environmental Environmental Risk Reduction Risk Reduction None

Project to Strengthen Opportunities None Assessment Environmental Environmental issues and concerns identified in CSPU paper are concept appropriate and valid

in CSPU Environmental Issues Identified Issues Will improve in environment cities. regional social or No environmental issues. Proposed Activities Proposed (i) Review and evaluate air quality in selected including cities, regional sources, emission status, and institutional arrangements; air quality (ii) prepare management plan for each city; (iii) identify needed investment to implement (iv) design plans; packagesinvestment and for ADB funding; training (v) conduct to institutional strengthen capacity for air quality management in regional cities Type/Cost ENV; PPTA PPTA ENV; $0.70 million

continued Project/ Program Name Regional Cities Air Quality Improvement Table 20 Table 156 Country Environmental Analysis 2008: Philippines continued Measures Environmental Environmental Risk Reduction Risk Reduction None

Project to Strengthen Opportunities None Assessment Environmental Environmental issues and concerns identified in CSPU paper are concept appropriate and valid

in CSPU Environmental Issues Identified Issues Address social Address and unrest environment degradation caused by poverty Proposed Activities Proposed Poverty reduction reduction Poverty upland among through communities community-based, ecologically sustainable watershed and natural management. resources Components: (i) agroforestry and improvement, livelihood (ii) infrastructure and social development, and (iii) watershed Outputs: management. in improvements (i) infrastructure, (ii) land productivity, (iii) watershed and management, (iv) community skills. Type/Cost CPI, ECO, ECO, CPI, 30 GG; ENV,

continued Project/ Program Name Mindanao Upland Communities Development Project Table 20 Table Chapter 5: Implications for Country Partnership Strategy 157 continued Measures Ensure that Ensure aquaculture expansion does not occur in important coastal ecosystems and protected areas Evaluate carrying capacity of the system Environmental Environmental Risk Reduction Risk Reduction • •

Project to Strengthen Opportunities Build on lessons lessons Build on past learned from coastal and marine projects resource in the Philippines, particularly regarding community group credit formation, and provision, of strengthening local rules and regulations Assessment Build LGU Build LGU capacity to provide technical guidance to operators in feed management carryingUse capacity as basis for zoning Determine number and spacing of cages the basis on of carrying capacity water Monitor quality • • • •

in CSPU Issues affecting the communities, including dwindling fish stock in coastal and inland waters due to overfishing, degradation of natural fish and habitats, water pollution, and pond management Water pollution from aquaculture pollution Water industrial from activities and waste improper management Environmental Issues Identified Issues • • • Aquaculture Aquaculture development particularly development and of improvement brackish- freshwater, and marine water, farmingfish systems, and aquatic species eels, tilapia, (carp, groupers, turtles, prawns, sea bass, aquarium milkfish, seaweeds, fish, seahorses, shellfish, etc.) wrasses, Development of supportproduction particularlyservices, postharvest, and processing, facilities, marketing and extension services Proposed Activities Proposed • • Type/Cost CPI, ECO, ECO, CPI, 30 GG; HD,

continued Project/ Program Name Aquaculture Development Table 20 Table 158 Country Environmental Analysis 2008: Philippines

Measures Environmental Environmental Risk Reduction Risk Reduction

Project to Strengthen Opportunities Assessment Strengthen BFAR’s, LGU’s, and DENR’s capacity and resolve duplicative responsibilities Consider based approach integrated on watershed management • •

in CSPU Low LGU capacity Lack of technical and know-how enforcement localamong governments Environmental Issues Identified Issues • • Institutional Institutional and strengthening management, project specifically development of policyaquaculture and regulation, and aquaculture and production information market system Proposed Activities Proposed • Type/Cost

continued Project/ Program Name ADB = Asian compliance environmental Development = Bank, ECC ADTA = Resources, advisory Natural and technical Environment = BFAR Bureau of assistance, of Fisheriescommunity, and Department= AOTA Aquatic CDM Resources, = = Clean advisoryDevelopment Mechanism, CPI DENR = core poverty and Reform, intervention, CSPU = Agrarian operational country of technicalDepartment = assistance, DAR ARC = update, program agrarian strategy reform certificate, ECO = economicEMP growth, = environmental management plan,ENR = environment and naturalENVresources, = environmental protection, operation = O&M Administration, GG Irrigation = National good = governance, HD NIA = human organization, development, IEE nongovernment = = initial NGO environmental examination, LGU = paper, local concept government in unit, NBSAP classified = not national = biodiversityNC plan, action and strategy organization, basin river = RBO development, sector private = PSD preparatoryassistance, technical project = PPTA povertyintervention, = PI maintenance, and SME = small and medium-sized enterprises, TA = technical assistance, Transco = National market. Transmission Corporation, WESM = wholesale electricity spot Table 20 Table Appendixes 160 Country Environmental Analysis 2008: Philippines S S S S U U U U U U M M Score continued Weighted Weighted

U U U U M M M M M M M M bility Availa Water Rating Water S S S U U U U U U U M M Potential 0.09 0.13 0.20 0.21 0.36 0.38 0.42 0.50 0.60 0.61 0.62 0.64 Score Weighted 0.04 0.06 0.26 0.29 0.55 0.49 0.45 0.55 0.62 0.56 0.59 0.58 Rating b 0.07 0.13 0.52 0.57 1.26 0.97 0.90 1.08 2.98 1.39 2.14 2.03 Ratio Availability Yearly Water Yearly

/ 3 124 218 888 972 m 2,143 1,657 1,533 1,843 5,070 2,368 3,646 3,449 person 0.15 0.19 0.13 0.14 0.16 0.27 0.39 0.46 0.57 0.66 0.65 0.69 Rating Potential a

0.61 0.76 0.52 0.56 0.64 1.08 1.54 1.84 2.18 4.97 4.65 6.08 Ratio Potential 932 665 297 473 412 2,977 9.015 4.063 1,797 1,251 1,388 2,987 (in MCM) in 2005 Demand Yearly Water Requirement Water Yearly 708 1,816 4,688 2,275 1,150 1,351 2,138 5,496 1,449 1,476 2,200 2,504 Potential Region Water Quantity Scorecard for Major Rivers and Basins Hot Spots Rating Water for Water Quantity Water for

Water Resources Resources Water 4 (Southern Tagalog) 7 (Central Visayas) 3 (Central Luzon) 3 (Central Luzon) Valley) 2 (Cagayan 6 (Western Visayas) 5 (Bicol) 6 (Western Visayas) 12 (Southern Mindanao) 11 (Southeastern Mindanao) 10 (Northern Mindanao) 11 (Southeastern Mindanao) c Major River Basin Pasig-Laguna Pampanga Agno Cagayan Jalaur Bicol Ilog- Hilabangan Agus Davao Tagoloan Tagum- Libuganon Cebu Island Appendix 1: Appendixes 161 S S S S S S S Score Weighted Weighted S S S S S S S bility Availa Water Rating Water S S S S S S S Potential 0.64 0.65 0.66 0.69 0.80 0.86 0.91 Score Weighted 0.67 0.64 0.62 0.67 0.73 0.97 0.84 Rating b 4.13 3.33 2.91 3.99 5.48 8.08 11.31 Ratio Availability Yearly Water Yearly

/ 3 m 7,027 5,656 4,954 6,782 9,321 19,228 13,732 person 0.61 0.66 0.70 0.72 0.88 0.74 0.98 Rating Potential a

3.59 5.24 6.55 7.13 7.72 Ratio 12.18 15.41 Potential (National Water Resources Board–National Water Information Network Project; data compiled from 701 378 609 355 237 6,923 1,037 (in MCM) in 2005 Demand Yearly Water Requirement Water Yearly 3,672 2,479 4,340 4,326 1,827 24,854 15,984 Potential Region Philippine Environment Monitor 2003 Water Resources Resources Water 11 (Southern Mindanao) 11 (Southeastern Mindanao) 1 (Ilocos) 6 (Western Visayas) 10 ( Northern Mindanao) Valley) 2 (Cagayan 10 (Northern Mindanao) continued Amount of annual renewable water resources per capita ( JICA-NWRB Master Plan Study on Water Resources Management of the Philippines, 1998). Areas where where Areas 1998). Philippines, the of Management Resources (capitaWater per on PlanStudyresources Master water renewable JICA-NWRB annual of Amount 2000). Institute, experiencing(World per capitaResources 1,700 m3/year are water stress water supply below drops At 80% dependability of surface water availability using low flow and adopting low economic growth scenario ( JICA-NWRB Master Plan Study on Water Resources Resources Water on Study scenario Plan Master growth economic ( JICA-NWRB low adopting and flow low using availability water surface of dependability 80% At Ratio of 2 or less is an indication of a shortfall water shortage. that would create 1998). Management of the Philippines, Cebu Island is included significance. because only Manila in economic it is second to Metro

Major River Basin Mindanao Buayan Malungon Abra Panay de Cagayan Oro Abulog Agusan S = satisfactory. M = marginal, U = unsatisfactory, a b c Source: World Bank, 2003. various LWUA, feasibility studies of water districts, Appendix 1 162 Country Environmental Analysis 2008: Philippines continued 1997 1987 1977 1977 1976 2004 2002 1995 1987 1985 1984 Year Issued Year Major Environment and Natural Resources Laws and Regulations and Natural Resources Major Environment

Title/Description and Natural Resources General Environment System (PEENRA) Accounting Resource and Natural Philippine Economic-Environmental EO 406: Resources and Natural Reorganizing the Department of Environment EO 192: declaring the people with a policy it a continuous of the state to provide Policy, Philippine Environmental PD 1151: environment healthy outlining the state policy for the management of air and water quality and land Code, Philippine Environmental PD 1152: etc. waste management, management and conservation, natural resource use, and Commission Control Pollution of the National mandating the creation Law of 1976, Control Pollution PD 984: effective use for more and land, air, the pollution of water, and controlling abating, policysetting a national of preventing, of resources Forestry Management in the Philippines Sustainable Forest Promoting EO 318: and use of chainsaws and importation, sale, possession, the ownership, regulating Chain Saw of 2002, Act 9175: RA penalizing violations their trees, of the cutting coconut for the regulation providing of 1995, Preservation Act Coconut 8048: RA and other purposes replenishment, chargestimber and other forest on the forest Code PD 705 by increasing the Revised Amending Forestry EO 277: products Code Revised Forestry PD 705: Code (PD 705) 36 of the Revised section Amending Forestry BP 701: Appendix 2: Appendixes 163 continued 1981 1929 2005 1998 1997 1995 1995 1995 1988 1987 1972 1972 Year Issued Year continued and providing the instruments and mechanism and providing therefor Title/Description or injuring of destroying, the cutting, Code (PD 705) prohibiting 80 of the Revised section Amending Forestry PD 1775: schools parks, in plazas, roads, public or plants of scenic value along plants and shrubs, flowering trees, planted or growing ground other public pleasure or any premises, and penalizing violations under certain and molave trees conditions, akle, the cutting of tindalo, Prohibiting 3572: RA Agriculture and developing organic agriculture in the Philippines Promoting EO 481: Law6657), of 1988 (RA (CARP) Agrarian 63 of the Comprehensive Reform section Program Amending 8532: RA fund for the program an augmentation providing to modernize prescribing urgent measures Agriculture and Fisheriesthe agriculture 8435: Modernizationof 1997, RA Act them for the challenges adequate, prepare of globalization through and profitable, make them more and fishery sectors, and rational delivery and appropriating of services, focused, funds for that purpose as amended the Code of Agrarian Amending Reform in the Philippines 3844), (RA 7907: RA Agrarian of the Comprehensive Reform certain Law6657) Amending of 1988 (RA provisions 7881: RA and for other purposes Agrarian Strengtheningof the Comprehensive Reform the implementation Program, 7905: RA Agrarian Comprehensive Reform Law of 1988 6657: RA country the entire Proclaiming area a land reform PD 2: transferring of the land ownership the them to soil, the of bondage the from tenants of emancipation the Decreeing 27: PD they till, Comprehensive Agrarian for the mechanismof Comprehensive Reform for the implementation Program Providing EO 229: Appendix 2 164 Country Environmental Analysis 2008: Philippines continued 1998 1998 1997 1980 1976 1974 2007 2005 2005 2000 Year Issued Year ) (RA ) (RA ipon ( Gobiidae continued Title/Description Fisheries and conservation of fisheries management, for the development, Philippine providing Fisheries 8550: RA Code of 1998, and for other purposes integrating all laws pertinent thereto, and aquatic resources, for the Philippine Implementing rules Fisheries and regulations 1998: 8550) Code of 1998 (RA s. 03, DAO Agriculture and Fisheries 8435: Modernization RA Act of the fish species or purchase offer to sell, sale, the catching, the law prohibiting Amending BP 58: 6145 as amended by RA 5474), of 1974 (PD 600) Decree of the Marine for the revision Pollution Providing PD 979: Revised Coast Guard Law PD 601: Mining back to the the PhilippinePresident Mining Development Corporation the Office of from Transferring EO 689: Resources and Natural Department of Environment and for other purposes mineral exploration, 96-40) for the chapter (DAO Amending XVIII of the revised implementing rules and regulations 2005: s. 07, DAO for the establishment of a Final providing Mine Rehabilitation as amended, 7942), Philippine of 1995 (RA Mining Act Fund and Decommissioning 99-57]) 96-40 [DAO to DAO (Amendment the revised implementing rules Amending and regulations 2000: s. 61, DAO 7942) for the Philippine of 1995 (RA Mining Act 96-40) for the Philippine Mining Act (DAO the revised implementing rules Amending and regulations 2005: s. 16, DAO for exploration permits for financial or technical of providing assistance in the conduct as amended, 7942), of 1995 (RA Appendix 2 Appendixes 165 continued 1996 1996 1995 1995 1992 1991 1990 2007 2006 2004 2002 Year Issued Year continued Title/Description for the Philippine 257 of the implementing rules of section Amending Mining Act and regulations 1996: s. 25, DAO 7942) 1995 (RA Revised 7942) for the Philippine implementing rules of 1995 (RA Mining Act and regulations 1996: s. 40, DAO 7942) for the Philippine Implementing rules of 1995 (RA Mining Act and regulations 1995: s. 23, DAO and use, development, instituting a new exploration, system of mineral resources Philippine of 1995, Mining Act 7942: RA conservation Small-Scale Mining Act People’s 7076: RA as Damage Law (PD 1251), Tailings Waste Revised for the Mine implementing rules and regulations 1990: s. 85, DAO for damages to private imposing mine waste and tailings feesoperatingto compensate on mining companies amended, and for other purposes landowners, Coastal and Marine the through within the DENR Management Project Environmental the Manila Bay Institutionalizing 2007-28: DAO Coastal Strategy of the operational plan for Manila Bay implementation the Integrated Coastal Management Strategy Adopting EO 533: lands Revised for the administration and management of foreshore rules and regulations 2004-24: DAO establishing the Coastal and Marine Management Office as the national Program, Coastal Environment 2002-08: DAO activities office for all coordinating coastal and marine environment DAO 34, s. 1992: Implementing rules and regulations for the People’s Small 7076) ‑ Scale of 1991 (RA Mining Act for the People’s Implementing rules and regulations 1992: s. 34, DAO Appendix 2 166 Country Environmental Analysis 2008: Philippines continued 1999 2006 2001 2001 2000 1996 1996 1995 1992 1992 Year Issued Year

continued Title/Description Ecotourism Ecotourism and requiring Development the National Council (NEDC) creating Ecotourism Strategy, National EO 111: Ecotourism Strategy of a National the preparation to guide the development of ecotourism (NES) in the country and Biodiversity Areas Protected the country, throughout prescribing its implementation Biological on Diversity, Policy Establishing the National EO 578: Marine Corridor Island Passage particularly in the Sulu-Sulawesi MarineVerde Ecosystem and the for the conservation providing of wildlife and protection Wildlife Act, Conservation 9147: Resources RA and Protection and for other purposes appropriating funds therefor, and their habitats, resources and for caves to manage and protect and cave resources, Management Act, Caves and Cave Resources National 9072: RA other purposes specific guidelines for the Establishment and 96-29 and providing of DAO certain Amending provisions 2000: s. 44, DAO Areas within Protected Management of Community-Based Projects of biological for the prospecting Implementing rules and genetic resources and regulations 1996: s. 20, DAO 1992) for the National s. 25, (DAO 61 of the implementing rules section Amending and regulations 1996: s. 31, DAO 7586) of 1992 (RA Act Areas Integrated Protected guidelines and establishing a regulatory Prescribing framework of biological for the prospecting and genetic EO 247: and for other purposes purposes, for scientific and commercial and derivatives, their by-products resources, System Areas of 1992 Act Integrated Protected for the National Implementing rules and regulations 1992: s. 25, DAO 7586) (RA System Areas of 1992 Act Integrated Protected National 7586: RA Appendix 2 Appendixes 167 continued 1991 1977 2006 2005 2004 2004 2004 1995 1976 1976 1975 1973 Year Issued Year continued Title/Description and insufficiently indeterminate, vulnerable, threatened, endangered, list of rare, Establishing a national 1991: s. 48, DAO and reptiles mammals, species of Philippineknown wild birds, Development Coral and Conservation Resources as amended by PD 1698 (1980); Decree PD 1219, Resources Water Office the River Basin Control Creating EO 510: Act Water for the Clean the implementing rules and regulations Prescribing 2005-10: DAO to the DepartmentPresident of the Office of from Administration Utilities the LocalWater Transferring EO 387: and Sewerage the supervision and Highways (DPWH) and strengthening Waterworks of the Metropolitan Works Public System by the DPWH secretary management office and defining its scope of authority the Bicol River Basin project Creating EO 359: of 2004 Act Water Clean 9275: RA Crisisof 1995 Act Water National 8041: RA of 1976 Decree Marine Pollution PD 979: Code of the Philippines Water PD 1067: activities in managing sewerage and corresponding setting the required Sanitation Code of the Philippines, PD 856: systems for the providing Pasig River, and gainful use of the improvement, beautification, to the preservation, Pertaining PD 274: of pollution the river usefulness and control and its banks to enhance socioeconomic regulation Appendix 2 168 Country Environmental Analysis 2008: Philippines continued 1966 2000 1999 2007 2004 2001 2005 2004 1992 Year Issued Year continued Title/Description the Laguna Creating Lake Development Authority to accelerate EO 927: the as amended by PD 813, 4850, RA for environmental and adequate provisions with due regard development of the Laguna region and balanced growth de Bay management Air Quality 8749) of 1999 (RA for the Clean Air Act Implementing rules and regulations 2000-81: DAO expanded the of PD 984; air pollution control on 57–66 provisions amending sections of 1999, Clean Air Act 8749: RA of the Integrated Air Quality by mandating the formulation scope of activity Framework of DENR Improvement Energy for this purpose, establishing the biofuels program the use of biofuels, directing of 2006, Biofuels Act 9367: RA and for other purposes appropriating funds therefor, Transport for Public Program Vehicle Gas Implementing the Natural EO 290: the development and use of indigenous renewable stressing Industry (EPIRA), Reform Act Electric Power 9136: RA energy the country’s to reduce imported generation dependence on oil and coal for power resources Climate Change for EO 320 the implementing rules and regulations Prescribing 2005-17: DAO authority as the national for the Clean Development Designating the DENR Mechanism (CDM ) EO 320: SubstancesWastes and Hazardous Toxic of Act Control Substances and HazardousWastes and Nuclear Toxic for the Implementing rules and regulations 29: DAO 6969) 1990 (RA Appendix 2 Appendixes 169 continued 1990 2007 2003 2002 1978 2001 2000 Year Issued Year continued Title/Description the importation, regulating of 1990, Act Control Substances and HazardousWastes and Nuclear Toxic 6969: RA unreasonable and disposal of chemical that present substances and mixtures use, distribution, sale, manufacture, processing, risk to public health and the environment Oil Pollution of the 1992 of the provisions for the implementation providing of 2007, Act Compensation Oil Pollution 9483: RA the on Damage and the 1992 International Convention Civil Liability on for Oil Pollution International Convention penalties for violations providing Damage, for Oil Pollution for Compensation Establishment of an International Fund and for other purposes thereof, Impact StatementEnvironmental further clarifying System, for the EIS the implementing rules the coverage and regulations Prescribing 2003-30: DAO namely: (i) System, two criteria in determining the scope of EIS and providing to be considered System, of the EIS and (ii) the sensitivity or and its potential to cause of the project impact, significantthe nature negative environmental area. in the project vulnerability resources of environmental authority, approving by specifying the endorsing official, and approval application processing Streamlining ECC 42: AO System by the EIS not covered and projects within ECAs, projects timeframe for ECPs, and processing to environmentally critical in or projects limiting the application projects of EIA System EIS Law, PD 1586: environmentally critical areas Management SolidWaste 9003) of 2000 (RA Management Act for the Ecological Implementing rules SolidWaste and regulations 2001-34: DAO establishing local to develop solid waste management boards of 2000, Management Act Ecological SolidWaste 9003: RA and calling for the institutionalization of a their implementation, 10-year solid waste management plans and oversee and disposal of solid waste in the country processing, transport, to manage the transfer, program national Appendix 2 170 Country Environmental Analysis 2008: Philippines 1995 1991 2007 1992 1936 Year Issued Year continued Title/Description Local Government and coordinate monitor, mandating it to plan for, Manila Development the Metropolitan Authority, Creating 7924: RA services and to provide that can be delivered of jurisdiction, in its area of the local units (LGUs) the work government efficiently more rather than at the local at the metropolitan levelgovernment the central to LGUs, Government from devolving and responsibilities Local powers 7160: Code, Government RA management system and services for an environmental and providing autonomy, them to operate with far greater allowing and infrastructure facilities including drainage and sewerage and sanitation, or facilities for general hygiene Land Management the Land the Department Registration Authority from of Justice to the Department of Environment Transferring EO 690: Resources and Natural urban and continuing for a comprehensive providing of 1992, Urban Development and Housing Act 7279: RA and establishing the mechanism for its implementation development and housing program, Public Lands Act 141: CA AO AO = administrativeBP = order, batas pambansa (national law), CA = commonwealth = act, DAO Department of Environment and Natural Resources DENR = administrative Department order, of Environment and Natural ECC Resources, = environmental compliance certificate, EO = executive order, act. = republic RA = local unit, government LGU decree, PD = presidential Appendix 2 Appendixes 171

continued

Project Location Regions 11 (Malalag Regions Watershed, Bay–Balasiao Davao del Sur) and 12 (Sarangani Bay– Matutum Mt. General Watershed, Sarangani, Santos City, and South Cotabato) 4 Region (Laguna de Bay)

7 years Project Project April 2004– March 2009 March (1999–2007) Duration Total 30,340.17 12,200.00 138,759.61 Gov’t 7,144.51 2,200.00 11,751.86 Grant 5,000.00 48,812.10 Total Project Cost ($’000) Project Total Loan 5,000.00 23,195.65 78,195.65 evelopment Assistance to the Environment and Natural Resources Sector, Sector, evelopment and Natural Resources Assistance to the Environment WB/ D JBIC Gov’t Agency Funding Netherlands Official as of November 2007 as of November

Project Project Title and Natural Environment Management Resource Southern Mindanao Integrated Coastal Zone Management Project Laguna de Bay Institutional Strengthening and Community Participation Appendix 3: 172 Country Environmental Analysis 2008: Philippines continued Project Location Regions 2 (Nueva Regions Isabela, Viscaya, 3 (Aurora), Quirino), Negros Cebu, 7 (Bohol, 9 (Zamboanga Oriental), Zamboanga del Sur, 11 (Davao Sibugay), and 12 (North City), South Cotabato, Sarangani, Cotabato, and Sultan Kudarat), ARMM (Maguindanao, Basilan) Lanao del Sur, 6 (Iloilo)Regions and 8 (Leyte and Southern Leyte) Navotas, NCR (Manila, Las Piñas), Parañaque, 3 (Pampanga, Regions Nueva Bataan, Bulacan, 4 (Rizal, Tarlac) Ecija, Cavite) Laguna,

2007) 5 years June 2009 July 2005– 2000–2006 Project Project (Oct. 2004– (Oct. period up to Duration October 2009) down (winding ‑ down Total 7,858.81 19,000.00 12,025.00 Gov’t 2,407.35 Grant 5,451.47 19,000.00 12,025.00 Total Project Cost ($’000) Project Total Loan GEF GTZ Agency USAID UNDP/ Funding continued Project Project Title II Eco-Governance Environment, Resource Natural Management and Rural Development Program (EnRD) in Partnership Environmental Management for the Seas of East Asia Appendix 3 Appendixes 173

continued Project Location Regions 1, 3, and 4 3, 1, Regions and NCR (SIM); Nationwide 3 Regions sites: GEF 4A (Rizal, (Nueva Ecija), 5 (CamarinesQuezon), Camarines Norte), Sur, and 12 (Maguindanao, Sultan North Cotabato, Kudarat) (barangays of CAR Dalupirip, Ampucao, Loacan, Gumatdang, Tinongdan, Poblacion, Virac and Ucap, Tuding, in the municipality of Benguet) Itogon, 7 years 2002–2007 2007–2012 Project Project (2001–2007) Duration 335.63 Total 57,000.00 14,900.68 19,352.13 in kind Gov’t 14,900.68 15,240.68 335.63 Grant 7,000.00 4,111.45 Total Project Cost ($’000) Project Total

Loan 50,000.00 Gov’t Agency Funding WB/GEF UNEP/GEF

continued Project Project Title Reversing Environmental Trends Degradation in the South China Sea and Gulf of Thailand Programme National Support– and Environment Resources Natural Management Project WB ($50 million loan under a budget support arrangement Forestry San Roque Multi-purpose (Itogon Project Watershed Integrated Management Project)–DENR Component Appendix 3 174 Country Environmental Analysis 2008: Philippines continued Project Location Region 3 (Pampanga, 3 (Pampanga, Region Bataan, Bulacan, Tarlac, Nueva Ecija) 4 (LagunaRegion de Bay) and 11 7, 3, Region 8 (SamarRegion Island) June 2008 June 2008 2003–2015 2000–2010 June 2004– June 2006– Project Project Duration 358.45 253.00 Total 3,840.00 12,882.89 13,730.11 Tax Tax 340.00 Gov’t payment 4,251.60 4,332.00 358.45 253.00 Grant 3,500.00 8,631.29 9,398.11 Total Project Cost ($’000) Project Total Loan FAO JICA Japan GEF/ TRAC Agency UNDP- Funding Gov’t thru Gov’t SPCCI/WB continued Project Project Title for the Project Enhancement of Community-Based Management Forest in the Program Philippines Laguna de Bay Community Carbon Finance Project the Advancing Application of ANR for Effective Low-Cost Forest Restoration Biodiversity Samar Island Biodiversity Project Appendix 3 Appendixes 175

continued

Project Location Regions 1 (Hundred 1 (Hundred Regions Park, Islands National 5 (Mayon Pangasinan), Park, Natural Volcano 7 (Rajah Albay), Sikatuna Protected Bohol), Landscape, and 12 (Lake Sebu Reserve, Forest South Cotabato) 3 and 4 Regions NCR, Nationwide 7 years years 7 17 years 2004–2008 Project Project (1993–2010) Duration 2006), extended extended 2006), up to Dec. 2007 Dec. to up (1999–December (1999–December 847.22 Total 25,666.00 30,000.00 77,848.52 80.4 in kind Gov’t 5,454.00 12,478.02 766.82 Grant 30,000.00 45,158.50 Total Project Cost ($’000) Project Total Loan 20,212.00 20,212.00 ADB Agency Protocol NZAID Funding Montreal Montreal Fund of the Fund Multilateral continued Project Project Title Mainstreaming Ecotourism in the Community-Based Resources Natural Management Ecotourism (National Programme–Phase II) Project Environment Manila Metro Air Quality SectorImprovement Development Project (MMAQISDP)– Component DENR Ozone Depleting Substances Phase- Out Investment Phase II Program, Appendix 3 176 Country Environmental Analysis 2008: Philippines continued Project Location Regions 3, 6, and 12 6, 3, Regions 6 (IloiloRegions City Iloilo; City, and Passi Guimaras), Buenavista, 7 (Mandaue City, City, Tagbilaran Cebu; Dumaguete Bohol; City, and Oriental), Negros City and 8 (Tagloban Leyte) Maasin City, Manila) NCR (Metro 2010 6 years December December 2006–2010 Project Project (2005–2010) Duration January 2006– 400.00 Total 5,011.64 5,000.00 11.64 in kind Gov’t 400.00 Grant 5,000.00 5,000.00 Total Project Cost ($’000) Project Total Loan JICA GTZ Agency Funding WB/GEF continued Project Project Title Capacity Development Project Quality Water on Management Support Program for SolidWaste Management for Visayas in the LGUs Third Manila Sewerage Project (MTSP) Appendix 3 Appendixes 177 continued Project Location Nationwide Nationwide

June 2011 2007– June 2007 September September April 2007 Project Project 2005–2006, 2005–2006, Duration January 2006– extended up to 285.00 378.45 Total 11,770.88 65,158.33 Gov’t 7,012.38 20,056.59 650.00 285.00 378.45 Grant 4,108.50 11,301.74 Total Project Cost ($’000) Project Total Loan 33,800.00 Sida GEF Agency UNIDO Funding NORAD continued Project Project Title to Global program demonstrate the viability and removal of barriers that impede adoption and successful implementation of available non-combustion technologies for persistent destroying organic pollutants Coastal/Marine Bridging Consultancy (Support to Philippines Maritime Claims under UNCLOS) Coastal Hazard Management Program Appendix 3 178 Country Environmental Analysis 2008: Philippines continued Project Location Regions 2 (Cagayan), 2 (Cagayan), Regions 3 (Zambales), 7 (Cebu, 5 (Masbate), and 11 (Davao Siquijor), Oriental) 10 (Camiguin) Region Nationwide June 2007–2012 2005–2009 Project Project Duration July2007–2012 Total 2,174.88 1,333.74 1,333.74 62,320.00 536.59 Gov’t 19,520.00 Grant 9,000.00 1,638.29 1,333.74 1,333.74 Total Project Cost ($’000) Project Total Loan 33,800.00 UNDP Agency NZAID Funding ADB/GEF continued Project Project Title Integrated Coastal Resources Management Project Camiguin Coastal Resource Management Project (CCRMP) Capacity Building Environment and Natural CapacityResources and Operations Enhancement Programme (ENR-CORE) Appendix 3 Appendixes 179

continued Project Location NAMRIA, nationwide; nationwide; NAMRIA, 3 Region pilot sites: Bulacan, (Pampanga, and Nueva Ecija) Tarlac, NCR NAMRIA, Regions (Manila Bay), 4A (Batangas Bay) in ASEAN countries; Regions the Philippines: 5 (Camarines Sur) and 12 (North Cotabato) (Cebu Bay) and 7 (Cebu Bay)

2009 2005– November November November Project Project March 2008 March Duration Febuary 2008 Febuary March 2006– March February 2006– 4,690 700.00 899.87 Total 5,390.00 1,085.43 610.00 270.00 610.00 339.30 Gov’t 700.00 629.87 746.13 Grant 4,080.00 4,780.00 Total Project Cost ($’000) Project Total Loan JICA JICA ITTO Agency Funding continued Project Project Title Mapping Study of Mapping and Policy Topographic Mapping for Integrated National Development Plan in the Republic of Philippines Enhancement of Hydrographic Capabilities for SafetyNavigational Ecosystem Research and Development Demonstration and Application of Production and Utilization for Technologies Rattan Sustainable Development in the ASEAN Member-Countries Appendix 3 180 Country Environmental Analysis 2008: Philippines

continued

Project Location Region 8 (LeyteRegion Island) 7 (Bohol) Regions and 8 (Leyte and to be identified) Caraga 11 and Region other provinces 2 other provinces 2007 5 years 5 years December Project Project (2005–2010) Duration January 2005– 185.56 Total 1,390.00 2,133.00 40,593.20 40,593.20 69.30 420.00 515.00 Gov’t 2,284.90 2,284.90 116.26 970.00 Grant 1,618.00 19,313.00 19,313.00 Total Project Cost ($’000) Project Total Loan 18,995.30 18,995.30 WB/ ADB Agency AusAID Funding Australian Australian Government continued Project Project Title and Research Development Improving Project: Financial Returns to Smallholder in the Farmers Tree Philippines (ACIAR/ ASEM/2003/052) Lands Land Administration and Management II Program and Preparation Project Development Master Plan Study Integrated on Resources Water Management for Agusan River Basin Appendix 3 Appendixes 181

Project Location CAR 2005–2007 Project Project Duration 15.00 283.00 445.00 Total 365,384.07 95.00 Gov’t 67,608.35 15.00 283.00 350.00 Grant 146,572.77 Total Project Cost ($’000) Project Total Loan 151,202.95 Agency Funding WB/GEF WB/GEF WB/GEF GEF/FAO continued Project Project Title Globally Important Agricultural Heritage System–PDF-B Climate Change (Phase I) Adaptation Project Contaminated Sites Remediation Strategy–Persistent Organic Pollutants TOTAL GRAND ADB = Asian Development Bank, ANR = assisted natural ASEAN regeneration, = Association of Southeast Asian AusAID Nations, = Australian Agency for International Development, CAR = Cordillera GTZ Facility, = Administrative German technical Region, Development, cooperation, International ITTO FAO for = = Agency International Timber Tropical Zealand Food Organization, New JBIC and = = NZAID Japan Agriculture Bank Cooperation, JICA for Development = Organization, International for Cooperation, Japan Agency GEF Norwegian International = = Cooperation NORAD Agency, Global LGU Region, Capital = Environment National local = government NCR unit, NAMRIA = National Mapping and Resource Information Authority, Sida = Swedish International Development Cooperation SPCCI Agency, = Special Program on Climate Change TRAC Initiatives, = for Target Resource Assignment from the Core, UNCLOS = Bank. World WB = International DevelopmentUNIDO United Organization, = United Nations Nations Convention on the LawNatural Resources. and Department of Environment Office, Assisted and Special Projects Foreign Source: of the Sea, UNDP = United Nations Development Programme, Appendix 3 182 Country Environmental Analysis 2008: Philippines

Appendix 4: Senate and House Bills on Environment and Natural Resources Filed at the 14th Congress of the Philippines

Note: CA = commonwealth act, DENR = Department of Environment and Natural Resources, HB = House bill, PD = presidential decree, SBN = Senate bill no., RA = republic act

Forest Management

• SBN‑1952: Arbor Day Act of 2007, authorizing local government units to declare a day dedicated to tree planting to be known as Arbor Day, appropriating funds therefor and for other purposes • SBN‑1714: La Mesa Watershed Reservation Act of 2007, establishing the La Mesa watershed in the cities of Quezon and Caloocan and in the municipality of Rodriguez, province of Rizal, as a watershed reservation and for other purposes • SBN-1492: Forest Preservation and Rehabilitation Act of 2007, to preserve and rehabilitate forests by banning all logging operations in primary‑ and secondary‑growth forests and rain forests, and creating a task force for the purpose • SBN-1391: Mount Isarog Special Ecological Tourism Zone, declaring Mount Isarog Natural Park in the province of Camarines Sur a special ecological tourism zone, and for other purposes • SBN-1092: Palawan as Ecological Tourism Capital of the Philippines, declaring the province of Palawan as the ecological tourism capital of the Philippines, and for other purposes • SBN-991: National Ecotourism Policy Act, providing for a national ecotourism policy, establishing a framework for its institutionalization, creating a mechanism for its implementation, and for other purposes • SBN-990: Forest Management, establishing forest management, utilization, conservation, and preservation centers in provinces inhabited predominantly by members of indigenous cultural communities and upland families • SBN-989: National Protection and Preservation of Mangrove Forest Act, providing for the preservation, reforestation, afforestation, and sustainable development of mangrove forests in the Philippines, providing penalties therefor, and for other purposes • SBN-872: Philippine Agroforestry Act of 2007, standardizing and enhancing the practice of agroforestry in the country, creating the Board Appendixes 183

of Agroforestry under the Professional Regulations Commission, and appropriating funds therefor, and for other purposes • SBN-852: National Protection and Preservation of Mangrove Forest Act of 2007, providing for the preservation, reforestation, afforestation, and sustainable development of mangrove forests in the Philippines, providing penalties therefor, and for other purposes • SBN-785: Greening of Philippine Highways Act, requiring local governments to plant trees along national and local highways within their territorial boundaries, and for other purposes • SBN-783: Anti-Logging in Watersheds and Protected Areas, defining the offense of illegal logging in watersheds and other protected areas, and providing penalties therefor • SBN-29: National Log Ban of 2007, establishing a ban on all logging operations in the country to ensure the protection, preservation, and rehabilitation of the Philippine environment, and providing for citizens’ rights • SBN-480: National Ecotourism Policy Act of 2007, providing for a national ecotourism policy, establishing a framework for its institutionalization, providing the mechanisms for its appropriate implementation, and for other purposes • SBN-477: Greening Act of 2007, promoting the urban and coun- tryside greening of the Philippines • SBN-443: Illegal Logging in Watersheds and Other Protected Areas, defining the offense of illegal logging in watersheds and other protected areas, and providing penalties therefor • SBN-240: Revised Forestry Code of the Philippines (Sec. 78, PD 705), amending section 78 of the Revised Forestry Code of the Philippines (PD 705), as amended • SBN-224: Billion Trees Act of 2007, to spur the planting of a billion trees through complementary tree planting programs of DENR and various other government agencies, local government units and communities, schools and universities, and civic and nongovernment organizations, protecting the remaining natural forests and forest plantations, and creating a fund therefor, and for other purposes • SBN-222: Greening Act of 2007, providing for the urban and coun- tryside greening of the Philippines • SBN-80: Sustainable Forest Management Act of 2007, providing for sustainable forest management • SBN-73: Total Log Ban, totally banning logging operations for the next 25 years, and for other purposes • HB00043: Urging the President and the officials of the Department of Environment and Natural Resources to declare a total log ban in 184 Country Environmental Analysis 2008: Philippines

the third district in the province of Negros Occidental, appropriating funds therefor, and for other purposes • HB00137: Instituting a self-sustaining forest management program, by providing incentives to tree planters on private lands, forest lands, and other public lands, and for other purposes

Land Management

• SBN‑1931: Public Land Act (Amendments), reforming the administrative titling process by amending certain provisions of the Public Land Act (CA 141), as amended • SBN‑1796: Land Administration Reform Act of 2007, instituting reforms in the land administration system, creating the Land Administration Authority, and for other purposes • SBN-1451: Land Administration Reform Act of 2007, instituting reforms in land administration • SBN-1418: Land Administration Reform Act of 2007, instituting reforms in land administration • SBN-1376: Organic Agriculture Promotion Act of 2007, providing for the promotion of organic agriculture in the Philippines, and appropriating funds therefor • SBN-1304: Land Administration Reform Act of 2007, instituting reforms in land administration • SBN-988: Public Recreational Parks, establishing public recreational parks in major urban areas, appropriating funds therefor, and for other purposes • SBN-913: Tree Legacy Act of 2007, instituting a self-sustaining forest management program, by providing incentives to tree planters on private lands, forest lands, and other public lands, and for other purposes • SBN-843: National Land Use Act of the Philippines, instituting a national land use policy, providing the implementing mechanisms therefor, and for other purposes • SBN-814: Revised Public Land Act of the Philippines • SBN-68: Land Administration Reform Act of 2007, institutionalizing reforms in land administration, creating for the purpose the Land Administration Authority, and for other purposes • SBN-641: National Land Use Act of the Philippines, instituting a national land use policy, providing the implementing mechanisms therefor, and for other purposes • SBN-584: Land Administration Reform Act of 2007, instituting reforms in land administration Appendixes 185

• SBN-193: Land Administration Reform Act of 2007, instituting reforms in land administration • SBN-82: National Land Use Act of the Philippines, instituting a national land use policy, providing the implementing mechanisms therefor, and for other purposes • SBN-76: National Land Use Act of the Philippines, instituting a national land use policy, providing the implementing mechanisms therefor, and for other purposes • HB00057: An act mandating that at least 10% of government-owned lands to be sold, alienated, or otherwise encumbered for development purposes, be segregated for socialized housing projects • HB00064: An act instituting a national land use policy, providing the implementing mechanisms therefor, and for other purposes

Protected Areas and Wildlife Management

• SBN‑1655: Aurora Integrated Protected Landscape Act of 2007, establishing the Aurora Integrated Protected Landscape, providing for its management, and for other purposes • SBN‑1985: Tubbataha Reefs Natural Park (TRNP) Act of 2007, establishing the Tubbataha Reefs Natural Park in the province of Palawan under the NIPAS Act (RA 7586) and the Strategic Environmental Plan for Palawan Act (RA 7611), providing for its management, and for other purposes • SBN-1080: Malampaya Sound Protected Landscape and Seascape (MSPLAS) Act of 2007, establishing the Malampaya Sound in the municipalities of Taytay and San Vicente, province of Palawan, as a protected area under the category of protected landscape and seascape, providing for its management, and for other purposes • SBN-1079: El Nido–Taytay Managed Resource Protected Area (ENTMRPA) Act of 2007, establishing the El Nido–Taytay Managed Resource Protected Area in the municipalities of El Nido and Taytay, province of Palawan, as a protected area under the category of protected landscape, providing for its management, and for other purposes • SBN-1078: Turtle Islands Wildlife Sanctuary Act of 2007, establishing the Turtle Islands Wildlife Sanctuary in the province of Tawi-Tawi as a protected area, providing for its management, and for other purposes • SBN-1077: Mt. Balatukan Range Natural Park Act of 2007, establishing the Mt. Balatukan Range in the city of Gingoog and in the municipalities of Claveria, Medina, and Balingasag, all in the 186 Country Environmental Analysis 2008: Philippines

province of Misamis Oriental, as a protected area, under the category of protected landscape, providing for its management, and for other purposes • SBN-1076: Northern Negros Natural Park (NNNP) Act of 2007, establishing the area covered by the Northern Negros Forest Reserve in the cities of Talisay, Silay, Victorias, Cadiz, Sagay, and San Carlos and the municipalities of E. B. Magalona, Murcia, Toboso, Calatrava, and Don Salvador Benedicto, province of Negros Occidental, as a protected area, providing for its management pursuant to the NIPAS Act of 1992 (RA 7586), to be known as the Northern Negros Natural Park • SBN-1075: Lidlidda-Banayoyo Protected Landscape Act of 2007, establishing the Lidlidda‑Banayoyo Protected Landscape in the municipalities of Lidlidda and Banayoyo, province of Ilocos Sur, as a protected area, providing for its management, and for other purposes • SBN-1074: Agoo-Damortis Protected Seascape and Landscape Act of 2007, establishing the Agoo-Damortis Protected Seascape and Landscape in the municipalities of Agoo, Sto. Tomas, and Rosario, in the province of La Union, as a protected area, providing for its management, and for other purposes • SBN-1072: Siargao Islands Protected Landscape and Seascape (SIPLAS) Act of 2007, establishing the Siargao Group of Islands in the municipalities of Burgos, Dapa, Del Carmen, Gen. Luna, Pilar, San Benito, San Isidro, Sta. Monica, and Socorro, province of Surigao del Norte, as a protected landscape and seascape, providing for its management, and for other purposes, pursuant to the NIPAS Act of 1992 (RA 7586) • SBN-1071: Agusan Marsh Wildlife Sanctuary Act of 2007, establishing the Agusan Marsh within the municipalities of San Francisco, Bunawan, Veruela, Loreto, and Lapaz, in the province of Agusan Del Sur, as a wildlife sanctuary, providing for its management, and for other purposes, pursuant to the NIPAS Act of 1992 (RA 7586) • SBN-1070: Sinarapan Sanctuary (SS) Act of 2007, establishing Lakes Manapao, Katugday, Danao, and Makuao within the municipality of Buhi, Camarines Sur, and the municipalities of Polangui and Malinao, Albay, as a protected area to be known as the Sinarapan Sanctuary, providing for its management, and for other purposes • SBN-1069: Aliwagwag Falls Protected Landscape (AFPL) Act of 2007, establishing the Aliwagwag Falls in the municipalities of Boston and Cateel, province of Davao Oriental, and the municipality of Compostela, province of Compostela Valley, as a protected area Appendixes 187

under the category of protected landscape and its peripheral areas as buffer zone, providing for its management, and for other purposes • SBN-1068: Apo Reef Natural Park (ARNP) Act of 2007, establishing the Apo Reef in Sablayan, Occidental Mindoro, as a protected area under the category of natural park and its peripheral waters as buffer ones, providing for its management, and for other purposes • SBN-1067: Balinsasayao Twin Lakes Natural Park Act of 2007, establishing the Balinsasayao Twin Lakes in the municipalities of Valencia, Sibulan, and San Jose, province of Negros Oriental, as a protected area under the category of natural park, providing for its management, and for other purposes • SBN-1066: Mt. Hilong-Hilong Range Protected Landscape Act of 2007, establishing the Mt. Hilong-Hilong Range in the city of Butuan and the municipalities of Remedios T. Romualdez, Cabadbaran, and Santiago, in the province of Agusan del Norte, as a protect area under the category of protected landscape, providing for its management, and for other purposes • SBN-1065: Mts. Banahaw–San Cristobal Protected Landscape (MBSCPL) Act of 2007, establishing the mountains of Banahaw and San Cristobal, in the provinces of Laguna and Quezon, as a protected area under the category of protected landscape, providing for its management, and for other purposes • SBN-994: Wildlife Resources Conservation and Protection Act, providing for the conservation and protection of wildlife resources and their habitats, appropriating funds therefor, and for other purposes • SBN-901: Subic-Bataan Natural Park Act of 2007, establishing the Bataan Natural Park and the Subic Watershed Forest Reserve in the municipalities of Hermosa, Orani, Samal, Abucay, Bagac, and Morong, in the province of Bataan, and a portion of the Subic Bay Special Economic Zone on the island of Luzon as protected area under the category of natural park, providing for its management, and for other purposes • SBN-868: Casecnan Protected Landscape (CPL) Act of 2007, establishing the Casecnan Protected Landscape within the municipalities of Dupax del Norte, Dupax del Sur, and Alfonso Castañeda, province of Nueva Vizcaya, the municipality of Nagtipunan, province of Quirino, and municipalities of Maria Aurora and Dipaculao, province of Aurora, as a protected area under the catgory of protected landscape, providing for its management, and for other purposes • SBN-30: Samar Island Natural Park (SINP) Act of 2007, declaring the Samar Island Natural Park (SINP), in the provinces of Samar, 188 Country Environmental Analysis 2008: Philippines

Northern Samar, and Eastern Samar, as a protected area and its peripheral areas as buffer zone, providing for its management, and for other purposes • SBN-178: Malampaya Sound Protected Landscape and Seascape Act, establishing the Malampaya Sound in the municipalities of Taytay and San Vicente, province of Palawan, as a protected area pursuant to the NIPAS Act (RA 7586), providing for its management, and for other purposes • SBN-177: Apo Reef Act of 2007, establishing Apo Reef in Sablayan, Occidental Mindoro, as a protected area and its peripheral waters as buffer zones, providing for its management and funds, and for other purposes • SBN-176: Agusan Marsh Protected Area Act of 2007, declaring the Agusan Marsh in the province of Agusan del Sur as a protected area, and for other purposes • SBN-175: Balinsasayao Twin Lakes Natural Park, declaring the Balinsasayao Twin Lakes in the municipalities of Sibulan and San Jose, province of Negros Oriental, as a protected area under the category of natural park, and for other purposes • SBN-174: Mts. Banahaw–San Cristobal Protected Area Act of 2007, declaring the mountains of Banahaw and San Cristobal, in the provinces of Laguna and Quezon, as a protected area under the category of protected landscape, and for other purposes • SBN-173: Mt. Balatukan Range Natural Park Act, declaring the Mt. Balatukan Range in the city of Gingoog and the municipalities of Claveria, Medina, and Balingasag, all in the province of Misamis Oriental, as a protect area and its peripheral areas as buffer zone, providing for its management, and for other purposes • SBN-172: Siargao Islands Protected Landscapes and Seascapes Act of 2007, declaring the islands of Siargao and Bucas Grande as a protected area under the category of protected landscapes and seascapes • SBN-171: Tubbataha Reefs National Park Act of 2007, establishing the Tubbataha Reef National Marine Park in the province of Palawan as a natural park under the NIPAS Act (RA 7586) and the Strategic Environmental Plan for Palawan Act (RA 7611), providing for its management, and for other purposes

Coastal and Marine

• SBN-1506: Beaches Environmental Assessment, Closure and Health Act, to improve the quality of beaches and coastal recreation water Appendixes 189

• SBN-1419: Philippine Coast Guard Law of 2007, transferring the Philippine Coast Guard to the Department of Transportation and Communications as a separate and distinct armed uniformed commissioned service, further amending RA 5173 (which created the Phillippine Coast Guard), as amended, and for other purposes • SBN-1412: Philippine Coast Guard Act of 2007, to promote maritime safety, enhance maritime security, and safeguard and protect the marine environment by strengthening the Philippine Coast Guard • SBN-1238: Philippine Coast Guard Act of 2007, reorganizing the Philippine Coast Guard as a separate and distinct commissioned service under the Department of Transportation and Communications, and for other purposes • SBN-1142: Philippine Coast Guard, strengthening the Philippine Coast Guard and vesting in it the primary responsibility of enforcing maritime safety rules and regulations as well as any other matters related to the performance of safety of life and property function within Philippine territorial waters, and for other purposes • SBN-993: Beaches Environmental Assessment, Closure and Health Act, to improve the quality of beaches and coastal recreation water • SBN-992: Coastal Environment Program (CEP) Act, establishing the Coastal Environment Program, appropriating funds therefor, and for other purposes • SBN-885: Guidelines under Which the Philippine Coast Guard Allows Dumping of Waste Materials in Navigable Water, amending certain sections of the Marine Pollution Decree of 1974 (PD 600) • SBN-796: Coastal Environment Program (CEP) of 2007, establishing the Coastal Environment Program, appropriating funds therefor, and for other purposes • SBN-636: Shore Protection Act, regulating shipping vessels coast- ing in Philippine waters, for the protection of shores • SBN-586: Sea Dumping Ban Act, banning the dumping of sewage sludge and industrial waste into the sea • SBN-541: Philippine Coast Guard Act of 2007, establishing the Philippine Coast Guard as an agency attached to the Department of Transportation and Communications, further amending RA 5173 (which created the Philippine Coast Guard) and the Revised Coast Guard Law of 1974 (PD 601), and for other purposes • SBN-438: Coral Reefs Protection and Preservation Act of 2007, providing for the creation of reservation areas for the preservation and protection of coral reefs, providing penalties therefor, and for other purposes 190 Country Environmental Analysis 2008: Philippines

• SBN-294: Shore Protection Act, regulating shipping vessels coast- ing in Philippine waters, for the protection of shores • SBN-229: Lake Lanao Development Authority of 2007, creating the Lake Lanao Development Authority, defining its powers, functions, and duties, and for other purposes • SBN-186: Philippine Coast Guard Law of 2007, transferring the Philippine Coast Guard to the Department of National Defense as a separate and distinct service under the Philippine Navy, further amending RA 5173 (which created the Philippine Coast Guard) • HB00078: Increasing the penalty imposed against polluters of navigable waters by amending section 7 of PD 979 providing for the revision of PD 600 governing marine pollution • HB00117: Amending certain sections of the Marine Pollution Decree of 1974 (PD 600) • HB00133: Establishing an international compensation fund for oil pollution damage, providing penalties therefor, and for other purposes • HB00606: Requiring coastal provinces, coastal cities, and first‑class coastal municipalities to have a marine reserve for aquatic resources and a fisheries officer to supervise the same, and appropriating funds therefor • HB01803: Establishing marine protected areas in all coastal municipalities, amending for the purpose the Philippine Fisheries Code of 1998 (RA 8550), and for other purposes

Water Resources

• SBN-1140: Department of Fisheries and Aquatic Resources Act of 2007 (DFAR), creating a Department of Fisheries and Aquatic Resources, providing for its powers and functions, and for other purposes • SBN-981: 3-Year Program for the Construction of Potable Water Supply System in Every Barangay, promoting rural health by providing for an accelerated program for the construction of a potable water supply system in every barangay in the country within 3 years • SBN-799: Water Resources Management Act, addressing the national water crisis, providing for comprehensive water resources management, and for other purposes • SBN-777: Rivers and Waterways Ecological Zones of 2007, declaring and establishing rivers, river systems, beaches, shores, and waterways as ecological zones, and for other purposes Appendixes 191

• SBN-461: River Systems and Waterways Ecological Zones Act of 2007, declaring and establishing rivers, river systems, beaches, shores, and waterways as ecological zones, and for other purposes • SBN-359: Barangay Potable Water Supply System, promoting rural health by providing for an accelerated program for the construction of a potable water supply system in every barangay in the country within 3 years

Environmental Management

• SBN‑1968: Use of Sewage Sludge Fertilizer in Food Awareness Act of 2007, requiring the proper labeling of food produced with the use of fertilizer made from recycled sewage sludge • SBN‑1939: Philippine Environmental Protection Authority Act, creating the Philippine Environmental Protection Authority, defining its powers and functions, and for other purposes • SBN‑1896: The New Sanitary and Environmental Engineering Law of 2007, ordaining a new sanitary and environmental engineering law for the Philippines • SBN‑1890: Philippine Climate Change Act of 2007, establishing the framework program for climate change, creating the Climate Change Commission, appropriating funds therefor, and for other purposes • SBN‑1802: Requiring Malls/Stores to Use Environment-Friendly Shopping Bags instead of Plastic Bags, promoting sound waste management by requiring all department stores, malls, and commercial establishments to use reusable environment-friendly shopping bags and provide them free of charge to customers and patrons, and for other purposes • SBN‑1571: Toxic and Hazardous Substances Control Act of 2007, regulating the sale, purchase, and possession of toxic and hazardous substances, including sodium cyanide, providing penalties for violation thereof, and for other purposes • SBN‑1509: Right to Know About Airport Pollution Act, requiring the Department of Environment and Natural Resources to conduct a feasibility study on the use of airport bubbles to identify, assess, and reduce the adverse environmental impact of airport ground and flight operations and improve the overall quality of the environment • SBN-1443: Plastic Bag Recycling Act of 2007, requiring retail stores that provide plastic bags to consumers to implement a plastic bag collection and recycling program 192 Country Environmental Analysis 2008: Philippines

• SBN-1395: Philippine Economic Environmental and Natural Resources Accounting Act of 2007, institutionalizing the environmental and natural resources accounting system, designating the agencies responsible for its implementation, providing institutional arrangements among responsible agencies, and appropriating funds therefor, and for other purposes • SBN-1232: Used Motor Vehicles Regulation Act of 2007, regulating the importation of used motor vehicles • SBN-1089: Ozone Layer Protection Law of 2007, regulating the importation of substances that deplete the ozone layer, providing penalties for violations thereof, and for other purposes • SBN-995: Recyclable or Biodegradable Materials for Packaging, mandating the use of recyclable or biodegradable materials for the packaging of consumer products • SBN-815: Philippine Environmental Protection Authority Act of 2007, creating the Philippine Environmental Protection Authority, defining its powers and functions, and for other purposes • SBN-741: Ban Asbestos Act of 2007, banning the importation, manufacture, processing, or commercial distribution of asbestos‑ containing products • SBN-690: Environmental Health Research Act of 2007, establishing multidisciplinary centers for to conduct research on women’s health and disease prevention, and a hormone disruption research program, and for other purposes • SBN-406: Bureau on Hazardous Waste, Environmental Spills and Disease Registry, establishing a Bureau on Hazardous Wastes and Environmental Spills and Disease Registry, and for other purposes • SBN-357: Recyclable or Biodegradable Materials, mandating the use of recyclable or biodegradable materials for the packaging of consumer products • HB00165: Providing mechanisms for the reduction of the distribution of mercury-added products and the proper disposal thereof, to reduce the introduction of mercury into the environment • HB00397: Prohibiting the production of incandescent light bulbs completely within 5 years, to cut down on the amount of greenhouse gases, implicated in global warming, that is released to the atmosphere • HB00490: Amending section 21(b) of the Clean Air Act of 1999 (RA 8749), to empower local government units to conduct smoke emission testing Appendixes 193

• HB00817: Banning the importation and dumping of all kinds of toxic wastes and materials into the country, and for other purposes • HB00960: Enhancing the Philippine Environmental Impact Assessment (EIA) System, to strengthen public participation therein, and for related purposes • HB01404: Automatically assigning to the Government the insurance proceeds of corporations undertaking industrial projects when- ever a major accident, disaster, or catastrophic event involving their industrial project occurs, causing damage to persons, property, and the environment • HB01648: Regulating noise and its sources and providing penalties for its violation, and for other purposes • HB01775: Creating a special task force on global warming under the Department of Environment and Natural Resources • HB01966: Reducing the use of plastic bags, Styrofoam containers, disposable plastic utensils, and similar items in all establishments in the country

Mapping

• SBN-1447: NAMRIA Modernization Act of 2007, providing for the modernization of the National Mapping and Resource Information Authority (NAMRIA) • SBN-470: NAMRIA Modernization Act, providing for the modernization of the National Mapping and Resource Information Authority (NAMRIA)

Mining and Geosciences

• SBN-27: Philippine Mining Act of 1995 (Repealing), repealing the Philippine Mining Act of 1995 (RA 7942) • SBN‑1627: Topographical Map of Low-lying Areas in the Philippines Act of 2007, directing the Department of Environment and Natural Resources, through the National Mapping and Resource Information Authority, to identify the low-lying areas of the Philippine territory vulnerable to rising sea levels as a result of global warming • SBN-767: Environmental Assessment for Mining Projects, instituting independent health and environmental assessment for all mining projects, amending for the purpose the Philippine Mining Act of 1995 194 Country Environmental Analysis 2008: Philippines

Renewable Energy

• SBN‑1821: Renewable Energy Act of 2007, further promoting the development, use, and commercialization of renewable energy resources, and for other purposes • SBN‑1711: Renewable Energy Act of 2007, promoting the development, use, and commercialization of renewable energy sources, and for other purposes • SBN‑1608: Renewable Energy Act of 2007, promoting and enhancing the exploration, development, use, and commercialization of renewable energy resources • SBN-1423: Renewable Energy Act of 2007, promoting and enhancing the development, use, and commercialization of renewable energy resources • SBN-1303: Renewable Energy Act of 2007, promoting the development, use, and commercialization of renewable energy resources, and for other purposes • SBN-1221: Renewable Energy Act of 2007, promoting and enhancing the development, use, and commercialization of renewable energy resources • SBN-1058: Marine and Hydrokinetic Renewable Energy Promotion Act of 2007, promoting the development and use of marine and hydrokinetic renewable energy technologies • SBN-588: Renewable Energy Act of 2007, promoting and enhancing the development, use, and commercialization of renewable energy resources • SBN-211: Renewable Energy Resources Act of 2007, strengthening the Philippine Energy Plan for the exploration, development, and use of new and renewable energy systems using indigenous resources, and for other purposes

Environmental Education

• SBN‑1699: Environmental Awareness and Education Act of 2007, promoting environmental awareness through environmental education, strengthening for this purpose section 53 of the Philippine Environment Code (PD 1152), and for other purposes • SBN‑1603: Ecology Teaching in Elementary and Secondary Levels, providing for the teaching of ecology in all elementary and secondary levels, whether public or private, throughout the country, and providing funds therefor Appendixes 195

• SBN-1197: Environmental Protection for Children Act, protecting children against environmental pollutants • SBN-987: Community Environmental Information Program Act, requiring industries, factories, companies, or any institution, firm, or establishment using chemicals and their by-products in production, to develop and promote a community environmental information program • SBN-986: National Environmental Education Act, creating the Office of Environmental Education, defining its functions, and appropriating funds therefor, and for Other Purposes • SBN-766: Environmental Awareness and Education Act of 2007, promoting environmental awareness by declaring 5 June of every year as World Environment Day and prescribing environmental education for elementary and high school students • SBN-482: Children’s Environmental Protection Act, to protect children and other vulnerable subpopulations from exposure to certain environmental pollutants, and for other purposes • SBN-476: National Environmental Education Act of 2007, Creating the Office of Environmental Education, defining its functions and responsibilities, appropriating funds therefor, and for other purposes • SBN-343: Philippine Society and Environment (Curricula), to integrate in the curricula of all educational institutions, including nonformal, indigenous learning and out-of-school-youth programs, a course on Philippine society and the environment

Local Government

• SBN‑1547: Local Initiative on Environmental Protection and Conservation of Natural Resources Act, empowering local government units (LGUs) to monitor the enforcement of laws, rules, and regulations on environmental protection and conservation of natural resources • SBN-540: New Local Government Code of the Philippines, providing for a new Local Government Code of the Philippines • SBN-487: Committee on Environmental Protection (Local Government Legislative Council), mandating the creation of a committee on environmental protection in each local government legislative council • SBN-475: Local Environment Prote ction, to strengthen local environment protection by making the appointment of an environment and natural resources officer mandatory for provincial, city, and 196 Country Environmental Analysis 2008: Philippines

municipal governments, amending for this purpose 484(a) of the Local Government Code of 1991 (RA 7160) • SBN-474: Environmental Protection Program (SK), amending section 426 of the Local Government Code of 1991 (RA 7160) by mandating the Sangguniang Kabataan to implement an environmental protection program in their respective barangays, providing the mechanism for the effective implementation thereof, and for other purposes • SBN-472: Integrated Solid Waste Collection and Disposal Act, institutionalizing the basic service of integrated solid waste collection and disposal in all local government units, amending for this purpose the Local Government Code of 1991 (RA 7160)

Agriculture and Fisheries

• SBN-830: Bio-organic Farming, providing for the promotion of bio-organic farming in the Philippines • SBN-829: Sloping Agricultural Land Technology (SALT) Act of 2007, establishing the Sloping Agricultural Land Technology Farming Program, appropriating funds therefor, and for other purposes • SBN‑1898: Bio-organic Farming Promotion Act of 2007, providing for the promotion of bio‑organic farming in the Philippines, and appropriating funds therefor • SBN-828: Magna Carta for Agricultural Development Workers, providing for a Magna Carta for Agricultural Development Workers • SBN-774: Department of Fisheries and Aquatic Resources Act of 2007, creating a Department of Fisheries and Aquatic Resources, providing for its powers and functions, and for other purposes • SBN-371: Bio-organic Farming, Providing for the promotion of bio-organic farming in the Philippines • SBN-219: Agricultural and Fisheries Modernization Act (AFMA), amending the Agricultural and Fisheries Modernization Act (AFMA) (RA 8435) by providing for the exemption of all enumer- ated agricultural inputs from value-added tax • HB00227: Creating a Department of Aquaculture and Fisheries Resources, providing for its powers and functions, and for other purposes Appendixes 197

• HB00323: Amending section 4 (para. 58) and providing an additional section on municipal fisheries, chapter 2, article 1, of the Fisheries Code of 1998 (RA 8550), and for other purposes • HB00659: Amending section 97 of the Fisheries Code of 1998 (RA 8550) • HB00962: Amending section 4 (para. 58) and providing an additional section on municipal fisheries, chapter 2, article 1, of the Fisheries Code of 1998 (RA 8550), and for other purposes • HB01151: Amending section 4 (para. 58) and providing an additional section on municipal fisheries, chapter 2, article 1, of the Fisheries Code of 1998 (RA 8550), and for other purposes • HB01267: Amending section 4 (para. 58) and providing an additional section on municipal fisheries, chapter 2, article 1, of the Fisheries Code of 1998 (RA 8550), and for other purposes 198 Country Environmental Analysis 2008: Philippines continued

Comment Cofinanced with Global Environment Cofinanced with Global Environment ($9 million) Fund afterAdded clearance concept by Management Cofinanced with Japan Bank for International Cooperation ($300 million) Discussed in CSP but not Added. included because in program of uncertain schedule. January 2007 October 2005 February 2007 December 2006 December 2005 December 2006 Approval Date Approval Processing for 2007 Processing 38.8 25 (85) 450 150 200 250 Actual 36 25 450 150 300 CSP Amount ($ million)

Status of Public and Private Sector Lending, and Nonlending Operations, As of 15 August 2007 As of 15 August Status Operations, of Publicand Nonlending and Private Sector Lending, (Country Strategy and Program 2005–2007)

Intermediation Program Project Public Sector Lending Sector Public Agriculture and Natural Resources Management Integrated Coastal Resources Agrarian II Project Reform Communities Energy Sector Development Program Power Finance Program DevelopmentMicrofinance Financial and Regulation Market IndustryTrade and Small and Medium Enterprise Development Economic Management, Law, and Public Policy Support Program Development Policy Appendix 5: Appendixes 199 continued Type of Operation Type Comment Loan Guarantee Equity investment Cofinanced with World Bank ($250 Cofinanced with million) and Judicial Governance Formerly Reform Program Multitranche financing facility: $490 million Removed switched Government when Removed to alternative financing 2005 2005 2005 Date Approval 5.0 1.0 18.4 Amount Approval Date Approval ($ million) Processing for 2007 Processing for 2008 Processing for 2007 Processing (40) (300) (300) Actual 7 80 65 300 300 CSP Amount ($ million) continued Public Sector Lending Sector Public Local Financing Government and Budget Reform Program Justice Reform Program Comprehensive Multi-sector Manila Urban ServicesMetro for the Poor and Communications Transport Readiness Rural Roads Development Project Project TA Waste and Sanitation, Supply, Water Management Utilization and Aqueduct Water Angat Project Improvement Operation Sector Private of Portfolio Purchase of Equitable PCI Bank’s and Resolution Nonperforming Loans and Assets SME Development Support–Financing Project Improvement Access SME Development Support–Credit Information Bureau Appendix 5 200 Country Environmental Analysis 2008: Philippines continued Type of Operation Type PP. Formerly Strategy Formerly for PP. Development of Upland in SouthernCommunities Phil Rehabilitation Irrigation Formerly PP. Project AO. AO Financial Formerly Market AO. Reform Regulation AO AO AO 200 2005 2005 2006 2005 2005 For 2008 For 2007 For Approval Date Approval 500 500 800 700 400 (850) (550) 1,000 Actual Actual 500 700 600 500 800 700 400 CSP Amount ($’000)

continued Resource Management Resource Project Reduction Poverty Program Development Results Regime Phase 2 Nonlending Operation Nonlending ASSISTANCE TECHNICAL Agriculture and Natural Resources Highland Agriculture Comprehensive SystemsIrrigation Operational Efficiency DevelopmentSustainable for Aquaculture Finance DevelopmentImplementing the Microfinance Strengthening and Governance Regulation and Social Nutrition, Protection Health, Support for Health Sector Reform Economic Management and Public Law, Policy Harmonization and Managing for Strengthening Laundering Anti-Money Appendix 5 Appendixes 201 Type of Operation Type AO. Formerly Strengthening LGU Strengthening LGU Formerly AO. Management and Administration Risk Improving Formerly AO. Management of Public Sector Debt of Government at request Added AO. AO PP PP savings TA from Reprogrammed AO. to SME Development Anchored Support Project to PhilippinesAnchored Governance LocalAssessment (2005); FinanceGovernment and Budget Justice (2007); program reform (2008) Reform Program 2006 2005 2006 2007 2005 2006 2006 2005 2006 2006 Approval Date Approval 720 750 800 700 500 350 700 500 3000 1,800 Actual Actual 250 CSP Amount ($’000) 1,000 a a a continued Corporations Reform and Growth Economic Competitiveness, Reduction Poverty Poor(supplementary) ( JFICT) Civil Servantsamong ( JFICT) ( JFPR) Nonlending Operation Nonlending Local and Fiscal Governance Management Debt and Risk Management OwnedGovernment and Controlled Strengthening for Improved Institutions Multi-sector Manila Urban ServicesMetro for the Poor Manila Urban ServicesMetro for the Southern Leyte Landslide Disaster GRANTS Developing the Philippine Business Registry Supporting Information Sharing and Exchange Southern Leyte Landslide Disaster Assistance These trust in the CSP. not programmed fund grant operations are AO = advisory technical assistance, CSP = country strategy and program, JFICT = Japan Fund for Information and Communications Technology, JFPR = Japan = JFPR Technology, Communications and Information for Fund Japan = JFICT program, and strategycountry = CSP assistance, technicaladvisory = AO = technical assistance. TA SMEs = small preparatory and medium-sized = project enterprises, technical assistance, PPTA Reduction, for Poverty Fund a ADB CountrySource: Operations Business Plan 2007–2008. Appendix 5 202 Country Environmental Analysis 2008: Philippines

Appendix 6: Summary of Results of the Consultative Meeting on the 2008 Philippine Country Environmental Analysis Report

Major Concerns

• Weakness of the lead environment and natural resources (ENR) agency (DENR) and other directly concerned agencies (LLDA, LGUs) because of lack of budget, technical capability, resources (tools, etc.) • Conflicting government policies • Lack of financing for environmental projects • Fragmented resource management (sectoral instead of integrated), resulting in conflicts, overlaps, or gaps in ENR management • Poor implementation of certain laws • “Politicized” management

Other Comments and Concerns

• Rebuilding the lead ENR agency – All groups agreed that the DENR has been left behind by the growing mandates given to it. There should be a major rebuilding of DENR. – The budget is still not enough, considering the expectations from the various sectors for DENR to fulfill its growing mandate. This concern however is true of most government entities. – The rationalization plan has been revised several times, with the latest version submitted to the Department of Budget and Management only in June 2008. The plan has gone through several changes in the past 4 years, owing to changes in DENR leadership (a new secretary and therefore new priorities and new directions). DENR expected the plan to be finally approved within 2008, giving hope for a better distribution of personnel and resources in the DENR. – Capacity building will be needed once the rationalization plan is approved. Under the rationalization plan, EMB will have more technical staff. These will come from other bureaus within the DENR and will need extensive training to fulfill their responsibilities. Appendixes 203

– Mandate overlaps were likewise recognized; in most cases these have caused conflicts between government agencies, resulting in flawed implementation of laws. Memorandums of agreement and other forms of cooperation among government agencies were still seen as the best solution, although there were concerns that MOAs usually become ineffective when the signatories change. – The participants agreed that, while there are already many laws, other laws like the Sustainable Forest Management Act and the National Land Use Act still need to be passed. – A holistic and more comprehensive study of all the environmental and natural resources laws and regulations should be conducted to come up with an integrated and non-conflicting approach to improve implementation of the laws. – Graft and corruption within the agencies, political patronage and favoritism, and lack of political will and governance are perceived to be the main causes of the poor implementation of the laws. • Improving the Environmental Impact Statement (EIS) System – All groups agreed that EIS implementation continues to be flawed. DENR group mentioned the recently completed World Bank and ADB studies as a good jump-off point. ADB or the World Bank may be tapped to provide assistance to implement the recommendations of these studies. • Completing the devolution of ENR functions to LGUs – According to DENR group, the Local Government Code has gaps that prevent the full devolution of ENR responsibilities to the LGUs. The law may need to be amended for this. – In the meantime, LGUs will need to be ready when DENR turns over responsibilities. Certain functions transferred by DENR to LGUs (e.g., cadastral surveys) were taken back because the LGUs were unable to fulfill their duties. – There is no provision for sanctions to any party involved if the devolution is not done, therefore there is no motivation for anyone to really go through the devolution process. A recent DENR survey of the implementation of devolved functions by LGUs showed that not even half of the expected functions had been devolved. – NGO/Industry groups felt that the LGUs should also be asked to give their side of the story. 204 Country Environmental Analysis 2008: Philippines

– Devolution should undergo a comprehensive third‑party (not DENR- and LGU-led) assessment to determine the status of implementation and recommend a better plan for a successful devolution of functions. • Shifting from sector-based to integrated, ecosystem-based planning and management – All groups agreed that government planners and managers must now go in this direction. Again the idea of reviewing all the laws and using an integrated approach to reformulate these laws were suggested • Sustaining forest management and biodiversity conservation efforts – Forest and biodiversity management efforts should not simply be sustained but increased. – The issue of ancestral domain of the indigenous peoples should be given importance in these efforts. • Increasing financing for environmental projects – Considering their low budget, the government agencies have to depend on (meager) assistance from donor agencies to implement regulations. – The Government realizes that other priority programs (particularly development programs) need financial assistance in the form of loans. Providing grants and other non-loan facilities for environmental programs and projects of the Government is therefore worth considering, since these programs and projects do not necessarily have returns on investments. – The Government should have clear and investment-friendly policies to encourage private sectors to invest in environmental projects. – Government financial institutions have available environmental financing facilities (DBP said at least $1.2 billion for the year) but there are no takers, probably because of poor marketing, as well as encouraging steps for industries and other groups to invest in environmental projects – Industries felt that there should be incentives for them to invest in environmental projects; MSMEs that need technical and financial support are usually not creditworthyto go to bank financing. Thus, there is a certain disconnect between the banks (government financial institutions) and the potential fund users. • Improving and expanding the use of market-based instruments – It was also agreed that the use of MBIs should be strongly pursued; however, clear-cut policies must be put in place and implemented throughout the country. – New types of MBIs should also be considered. Appendixes 205

• ENR concerns and poverty reduction – This is a cyclical concern that is common in most underdevel- oped and developing countries. ENR concerns are mentioned in passing in most poverty reduction plans but are not really given importance unless the donor agencies (such as ADB) insist on compliance. – This is a major concern, but the responsibility is not DENR’s alone.

Solution Matrix

Problem/Issue/ Probable Proposed Proposed Concern Causes Solutions Solution Mix General Environmental Concerns Fragmented Sectoral Ecosystem-based NGAs, NGOs, resource management forest resource people’s management Some policies management organizations, not consistent Integrated donors, LGUs, with sustainable coastal resource academe development management Harmonized policies Reviewed and revised laws Too much Uncontrolled Population policies DOH, DENR population population growth Urban and rural (land use) stress on natural Disorganized Planning resources urban growth Indiscriminate Lack of policies Strict protection DA, LGUs, land use; and regulators and regulations for regional field conversion of for land use land conversion units, prime agricultural conversion Sustained IEC Bureau of lands devoted Lack of campaign for Postharvest to rice and corn government landowners and Research and production credit support for farmers Extention, farmers: very low Improved DAR, Municipal palay‑buying price cooperatives Planning and Weak security of Postharvest Development land tenure facilities Offices Lack of Faster issuance of infrastructure, land titles e.g., Farmers’ farm‑to‑market organizations and roads cooperatives continued 206 Country Environmental Analysis 2008: Philippines

Solution Matrix continued Problem/Issue/ Probable Proposed Proposed Concern Causes Solutions Solution Mix Low volume of Inadequate tourist Adequate business Public sector tourists in the infrastructure and incentives for (Department of Philippines facilities accommodation Tourism, DPWH, Poor facilities Department of peace‑and‑order Adequate Transportation and situation in some marketing to create Communications, parts of the strong awareness LGUs, police, country in strategic and Technical Inaccessibility of major source Education major international markets and Skills markets Adequate Development Limited tourism support Authority), Center promotional infrastructure, for Culinary campaign airports, seaports, Arts, Hotel Inadequate air, road network and Restaurant sea, and land Regular Association of the transportation institutional and Philippines system private sector–led Limited number of tourism training tourism front liners workshops Degrading ENR Overlapping or Integrated Concerned NGAs, base (e.g. forest/ uncoordinated policy, e.g., legislature, NGOs, biodiversity loss), policies Environmental private sector, coastal resources Policy gaps Policy Act donors, depletion, air and Weak capacity Tools (e.g., LGUs water pollution (e.g., lack of guidelines, tools, inadequate models) skills, inadequate Capacity systems and development (e.g., procedures) training) Increasing - do - vulnerability of environment and natural resources stakeholders (e.g., upland and coastal poor becoming poorer, increasing health problems and economic losses from environmental emergencies) continued Appendixes 207

Solution Matrix continued Problem/Issue/ Probable Proposed Proposed Concern Causes Solutions Solution Mix Environmental Watershed Watershed DENR, degradation degradation rehabilitation stakeholders, DA, Insufficient food Unregulated use with emphasis on LGUs production (e.g., of farm inputs sub‑watershed rice shortage) (pesticides, support fertilizers) IEC (farming Climate change systems) Climate change adaptation measures Slow movement Insufficient Reorganization Concerned of environmental technical capacity of or organizational agencies, donors, investment funds financial institutions strengthening DOF, NEDA Lack of funds for Cheaper TA funds technical experts or grants Voluminous technical and reporting requirements Poor enforcement of environmental laws Non-enterprise‑ Insufficient study Policy makers Donors (build this friendly and consultation better able to base condition into environment in the formulation laws on sufficient their program policies of many study and research requirements); environmental and to engage industry groups; policies the private DTI, DENR, (propensity to sector (especially Department adopt policies of micro/SMEs) in of Science and other countries, consultation Technology which may not Incentives (provide apply to the for private continuing Philippines) investments in education Lack of awareness environmental programs); and appreciation technologies development (especially by Better agencies and micro/SMEs) dissemination of government of the costs environmental financial and benefits of policies and institutions environmental technologies (evaluate improvements (e.g., More and improve short‑term view) environmental environmental financing facilities financing facilities)

continued 208 Country Environmental Analysis 2008: Philippines

Solution Matrix continued Problem/Issue/ Probable Proposed Proposed Concern Causes Solutions Solution Mix Lack of incentives or access to financing for environmental technologies and equipment Lack of participation (especially by micro/SMEs) in consultations for policy formulation Lack of technical expertise among policy makers Lack of incentives for private investments in environmental technologies (e.g., treatment of hazardous waste) Low public Insufficient Enough resources LGUs, Philippine awareness resources to to expand Information expand education education and Agency, private and awareness awareness sector, NGOs programs programs (social marketing Low priority campaigns) (especially at the local level) Weak protection Market-based of ecosystems incentives for services the protection of ecosystem services Inadequate Overpopulation; Education carrying capacity Catholic Active advocacy of Philippine church stand Passage of law resources on population on population management management continued Appendixes 209

Solution Matrix continued Problem/Issue/ Probable Proposed Proposed Concern Causes Solutions Solution Mix MTPDP not Mind-set that Policy reform Government crafted as a development is Participatory offices and sustainable mainly about planning and non‑state actors development plan; economic growth budgeting does not deliver on Education for poverty reduction sustainability and environmental Human protection development (education, livelihood, etc.) Governance Overlapping Partial devolution Rationalized LGU, DILG, jurisdiction and Unfunded budget support Department uncoordinated mandates for unfunded of Budget and implementation devolved LGU Management, of conservation mandates DENR programs Co-management (fisheries, DENR arrangements and DA‑BFAR institutionalized local level, between NGA forests, DENR and LGUs and and PNOC local private sector level) - Memorandums of agreement proven to be a good solution in some cases - Laws (source of conflict) Poor Limited resources Better DENR, DOF, environmental for environment coordination NEDA, DA, governance protection among agencies DAR, LGUs, Gap between Bigger budget private sector, legislation and Legislative review NGOs, etc. practice and simplification Erratic policies Better salaries for (mining, tourism) DENR staff Coherent land-use policies continued 210 Country Environmental Analysis 2008: Philippines

Solution Matrix continued Problem/Issue/ Probable Proposed Proposed Concern Causes Solutions Solution Mix Corruption; no Low salaries Better salaries Supreme Court, prosecution of Inequity (political for enforcement Office of the environmental elitism) agencies Ombudsman, offenses Poor justice/ Political will PNP, AFP, DENR enforcement Full application of system the law to everyone Graft and Distorted public Leadership by Executive dept., corruption in service values example (executive DENR, the environment (e.g., utang na dept. and line Civil Service sector loob [obligation agencies) Commission to repay a favor Effective, strict, NGOs (for received]) and consistent monitoring and Poor enforcement of advocacy) implementation environmental of civil service rules and standards, code of regulations ethics Values formation Lack of political programs for will (intertwined officials and vested interests enforcers and public interests); political patronage Lack of transparent and efficient system of policy formulation and implementation Poor or non- No budget Review and NGOs, academe, implementation of consolidation of legislature policies all environmental Too many laws but laws little enforcement Institutional/Organizational Inadequate Lack of expertise Consultants technical Lack of manpower know-how Lengthy Time-consuming Procurement Manila Water procurement procurement by private Company, Maynila process for procedures for company (e.g., Water Services, infrastructure gov’t projects concessionaire) concessionaires

continued Appendixes 211

Solution Matrix continued Problem/Issue/ Probable Proposed Proposed Concern Causes Solutions Solution Mix Insufficient Additional budget External funding Donors, NGAs, budgetary for NGAs and (grants) legislature allocation LGUs Insufficient policy Insufficient funds More funding Donors, concerned development, for capacity from government NGAs, planning, and development and donors legislature programming capacities of NGAs Inadequate data Lack of hardware More funds Donors, and management and relevant skills for hardware concerned NGAs, information acquisition and legislature systems skills development Poor knowledge management (use of technical expertise in policy development) Biodiversity Unabated loss of Illegal destructive Better Various agencies biodiversity fishing enforcement of led by PNP Illegal logging environmental (DENR, LGUs, Unregulated land laws DA) conversion Stronger Jointly operated Compartmen interagency structure and talized programs cooperation training program Wildlife trafficking to combat Poaching by big environmental commercial fleets crimes in municipal waters Biodiversity loss Poor law Harmonized plans LGUs, NGOs, Habitat enforcement and policies at the DENR, NEDA, degradation Poverty local level church sector, Forest conversion Conflicting IEC campaign private sector Overextraction, development goals Enforcement of depletion of between levels of regulatory policies resources government Enabling Lack of tenurial environment security Stronger CBFM New strategic plan for CBFM continued 212 Country Environmental Analysis 2008: Philippines

Solution Matrix continued Problem/Issue/ Probable Proposed Proposed Concern Causes Solutions Solution Mix Water Resources and Water Quality Management Inadequate clean Lack of financing Assistance to DENR, MWSS, water supply and from national Local Water NWRB, DBP, sewerage system Government Utilities LBP, LGUs, Administration donors and water districts, MWSS, LGUs; multilateral agencies to extend loans Need for new Lack of funding Funding from WB, ADB water sources from the government including sources Government financial of funds institutions, lending institutions Depletion/ Illegal settlers Tighter watershed AFP/LGU, Deterioration Illegal logging security DENR, Housing of watersheds Kaingin (slash- Strict enforcement and Land Use for new water and-burn farming) of laws against Regulatory Board resources Conversion of illegal logging lands Strict enforcement Right-of-way of policies Lack of safe Limited sources Extraction and NWRB, DPWH, drinking water Limited financial construction of DILG, DBP, LBP, support new water sources ADB, WB, JICA, LGUs’ lack of Assistance UNDP, WHO, technical expertise from local and DOH, and other foreign financial stakeholders institutions TA for LGUs Poor sanitation Limited Advocacy and DOH and knowledge of IEC activities partners, DBP, effects of poor Assistance LBP, ADB, WB, sanitation from local and JICA, UNDP, Limited financial foreign financial WHO, DPWH, support institutions DILG, NWRB Lack of Communal community toilets sanitation facilities continued Appendixes 213

Solution Matrix continued Problem/Issue/ Probable Proposed Proposed Concern Causes Solutions Solution Mix Air Quality Management Enforcement of Poor enforcement, DENR to DENR, Clean Air Act political unit follow up regional offices, institutionalization recommendation LTO, LGUs, of ADB loan enforcement with LGUs, LTO, agencies and enforcement agencies Waste Management Inadequate Lack of LGU Assistance in Donor community, solid waste capacity to comply preparation of National management with SWM act; master plan; Solid Waste lack of technical template for 10-yr Management and financial SWM Commission capacity Assistance in design of sanitary landfill Improper Limited Advocacy and DOH/DENR, health‑care waste knowledge of IEC activities LGUs, private management health-care waste Treatment sector management facilities Lack of treatment Sanitary landfills facilities Lack of approved disposal sites Climate Change Climate change Lack of integrated Integrated Office of the • Mitigation approach to approach/ President to • Adaptation addressing planning require integrated environmental to address planning approach problems caused environmental Multistakeholder by human activities problems caused approach to (urban, forestry, by human preparation of coastal, biodiversity, activities (urban, a road map for etc.) forestry, coastal, climate change Low public biodiversity, etc.) awareness of More resources impact of climate for climate change change mitigation and Consumptive adaptation lifestyle of Filipinos continued 214 Country Environmental Analysis 2008: Philippines

Solution Matrix continued Problem/Issue/ Probable Proposed Proposed Concern Causes Solutions Solution Mix Disaster Risk Mitigation and Management Disaster risk Philippines Community‑based National Disaster reduction prone to various disaster risk Coordinating disasters; lack management Council and its of capacity and coordinating response from agencies national and local government Poverty as a Consequence Worsening Depletion of Credit facility DTI, LGUs, poverty in coastal marine resources, to promote financial communities destruction of marine resource institutions, marine ecosystem management BFAR, DENR Overfishing, Gradual shift in illegal methods of fisheries from fishing, growing capture to culture population Technical of coastal assistance for communities capacity building ADB = Asian Development Bank; AFP = Armed Forces of the Philippines; BFAR = Bureau of Fisheries and Aquatic Resources; CBFM = community-based forest management; DA = Department of Agriculture; DAR = Department of Agrarian Reform; DBP = Development Bank of the Philippines; DENR = Department of Environment and Natural Resources; DILG = Department of the Interior and Local Government; DOF = Department of Finance; DOH = Department of Health; DPWH = Department of Public Works and Highways; DTI = Department of Trade and Industry; IEC = information, education, and communication; JICA = Japan International Cooperation Agency; LBP = Land Bank of the Philippines; LGU = local government unit; LTO = Land Transportation Office; MWSS = Metropolitan Waterworks and Sewerage System; NEDA = National Economic and Development Authority; NGA = national government agency; NGO = nongovernment organization; NWRB = National Water Resources Board; PNP = Philippine National Police; SMEs = small and medium-sized enterprises; SWM = solid waste management; TA = technical assistance; UNDP = United Nations Development Programme; WB = World Bank; WHO = World Health Organization. Appendixes 215

Appendix 7: Participants at the Consultative Meeting on the 2008 Philippine Country Environmental Analysis Report

DENR-FASPO Conference Room Department of Environment and Natural Resources Quezon City 4 June 2008

1. Cesar R. Quintos and Resource Information Division Chief Authority Laguna Lake Development Lawton Avenue, Fort Authority BonifacioTaguig City, 70 Rafael St., AsiaPro Building Philippines 1638 Bgy. Kapitolyo, Pasig City [email protected] [email protected] 6. Godofredo Villapando, Jr. 2. Frank B. Hilarie Program Development ECO III Unit Manager National Water Resources Board Foundation for the Philippine 8th Floor, NIA Building, Environment EDSADiliman, Quezon City 77 Matahimik St., Teacher’s [email protected] Village Diliman, Quezon City [email protected] 3. Susan P. Abano Engineer IV 7. Orly Cariato National Water Resources Board Supervising Forest 8th Floor, NIA Building, Management Specialist EDSADiliman, Quezon City Forest Management Bureau [email protected] Visayas Avenue, Diliman, Quezon City 4. Marcial C. Amaro, Jr. [email protected] Ecosystems Research and Development Bureau 8. Emy Aguinaldo Visayas Avenue, Diliman, Deputy Executive Director Quezon City National Solid Waste [email protected] Management Commission HRD Bldg. DENR 5. Ruel D. M. Belen CompoundVisayas Avenue, Engineer V Diliman, Quezon City National Mapping [email protected] 216 Country Environmental Analysis 2008: Philippines

9. Ma. Delia Valdez 14. Teresita T. Blaztigue Supervising Environmental Senior Environmental Development Specialist Management Specialist National Solid Waste Protected Areas Management Commission and Wildlife Bureau HRD Bldg. DENR Compound Parks and Wildlife Nature Visayas Avenue, Diliman, Center Quezon City Diliman, Quezon City [email protected] [email protected]

10. Anabelle E. Plantilla 15. Ma. Lourdes Ferrer Chief Operating Officer OIC-Director Haribon Foundation Foreign Assisted and Special 2nd Floor, Santos Sisons Projects Office, DENR Bldg.973 Aurora Blvd., Visayas Avenue, Diliman, Quezon City Quezon City Ondet_ferrer@ [email protected] yahoo.com

11. Marietta Tan 16. Joel Caparas Project Officer IV River Basin Control Office Mines and Geosciences Bureau Department of Environment 2/F J. Fernandez Bldg., and Natural Resources MGB Comp. North Avenue, Visayas Avenue, Diliman, Diliman Quezon City Quezon City [email protected] [email protected]

12. Estella M. Bucoy 17. Mary Ann Lucille Sering Administrative Officer V Undersecretary Land and Management Bureau Department of Environment Plaza Cervantes, and Natural Resources Binondo, Manila Visayas Avenue, Diliman, [email protected] Quezon City

13. Meriden Marawan 18. Eriberto C. Argete Chief Planning Staff DirectorPlanning and Policy Protected Areas Studies Office Department and Wildlife Bureau of Environment and Natural Parks and Wildlife Nature Resources Center Visayas Avenue, Diliman, Diliman, Quezon City Quezon City [email protected] Appendixes 217

19. Cristina Regunay Amorsolo St., Makati City Division Chief [email protected] MIPD, Foreign Assisted and Special Projects Office 25. Evelyn M. Juanilli Visayas Avenue, Diliman, PEO III Quezon City MIPP, FASPO [email protected] Department of Environment and Natural Resources 20. Josie Q. Natividad Visayas Avenue, Project Assistant Diliman, Quezon City MIPD, Foreign Assisted [email protected] and Special Projects Office Visayas Avenue, Diliman, 26. M. Nasimul Islam Quezon City Environmental Specialist SERD/SEAE 21. Marivic Abrera Asian Development Bank Chief, ERPD ADB Avenue, Environmental Management Mandaluyong City Bureau [email protected] Visayas Avenue, Diliman, Quezon City 27. Marissa V. David [email protected] ADB Consultant Managing Director 22. Rica Tumubangan Center for Environmental Planning Staff Studies and Management Environmental Management Suite 210, Quadstar Building Bureau Ortigas Avenue, Greenhills Visayas Avenue, San Juan, MM Diliman, Quezon City [email protected] [email protected] 28. Norma Llemit 23. Teresita J. Reyes Senior Training Specialist Asst. Chief, Research Center for Environmental Land and Management Bureau Studies and Management Plaza Cervantes, Suite 210, Quadstar Building Binondo, Manila Ortigas Avenue, Greenhills [email protected] San Juan, MM [email protected] 24. Jocelyn S. Esguerra National Coordinator 29. Aldwin Camance United Nations Development Center for Environmental Programme–GEF-SGP Studies and Management NEDA Makati Bldg. Suite 210, Quadstar Building 218 Country Environmental Analysis 2008: Philippines

Ortigas Avenue, Greenhills 31. Bethela Castro-DelNero San Juan, MM Center for Environmental [email protected] Studies and Management Suite 210, Quadstar Building 30. Alex Guintu Ortigas Avenue, Greenhills Center for Environmental San Juan, MM Studies and Management [email protected] Suite 210, Quadstar Building Ortigas Avenue, Greenhills San Juan, MM [email protected]

ADB Conference Room 6417/6418 West Asian Development Bank 5 June 2008

1. Elmer Benedictos Department of Agriculture Officer-in-Charge DA Building, Elliptical Road Department of Health Diliman, Quezon City 1100 San Lazaro Compound, Rizal Avenue 5. Minnie Dacanay Santa Cruz, Manila Consultant [email protected] Japan International Cooperation Agency 2. Erwin F. Balane 40th Floor, Yuchenco Tower Chief Tourism Operations RCBC Plaza, Ayala Avenue Officer Makati City Department of Tourism [email protected] T. M. Kalaw, Malate, Manila 6. Aldwin Christian B. Yam 3. Amelia Dulce Supetran Assistant Manager Sustainable Development Development Bank of the Adviser Philippines United Nations Development Sen. Gil Puyat Avenue, Programme Makati City NEDA Makati Bldg. [email protected] Amorsolo St., Makati City [email protected] 7. Reynaldo Baloloy Principal Engineer A 4. Wilfredo B. Sanidad National Irrigation Supervisor, Agriculture Administration Appendixes 219

Visayas Avenue, Quezon City 8th Floor, PNB Financial Center [email protected] Roxas Boulevard, Pasay City [email protected] 8. Rudolf Fravendoreor Senior Urban Development 13. Neeraj K. Jain Asian Development Bank Country Director ADB Avenue, Philippine Country Office Mandaluyong City Asian Development Bank [email protected] ADB Avenue, Mandaluyong City 9. Lerma Rosario [email protected] Division Manager Metropolitan Waterworks and 14. M. Nasimul Islam Sewerage System Environmental Specialist 4th Floor, Administration SERD/SEAE Building Asian Development Bank MWSS Complex, ADB Avenue, 489 Katipunan Road Mandaluyong City Balara, Quezon City [email protected]

10. Juan Echanove 15. Marissa V. David Programme Officer ADB Consultant Environment Programme Office Managing Director Delegation of the European Center for Environmental Commission to the Philippines Studies and Management 30th Floor, RCBC Plaza Suite 210, Quadstar Building Ayala Avenue, Makati City Ortigas Avenue, Greenhills Juan-Jose.ECHANOVE@ San Juan, MM ec.eu.int [email protected]

11. Aurora C. Maghirang 16. Elvira Ramos-Balinang Senior Assistant Vice President Training and Organization Development Bank of the Development Consultant Philippines [email protected] Sen. Gil J. Puyat Avenue, Makati City 17. Alex Guintu acmaghirang@devbankphil. Center for Environmental com.ph Studies and Management Suite 210, Quadstar Building 12. Renerio B. Acosta Ortigas Avenue, Greenhills Development Assistant San Juan, MM USAID/Philippines [email protected] 220 Country Environmental Analysis 2008: Philippines

18. Bethela Castro-DelNero Center for Environmental Studies and Management Suite 210, Quadstar Building Ortigas Avenue, Greenhills San Juan, MM [email protected]

ADB Conference Room 6417/6418 West Asian Development Bank 6 June 2008

1. Benjamin T. Gregorio GMA Complex President EDSA corner Timog Avenue Pollution Control Association Diliman, Quezon City of the Philippines, Inc. [email protected] Rm. 245–247, Cityland Pioneer St., Mandaluyong City 5. Grace Morella [email protected] Manager Philippine Chamber of 2. Syarifah Aman-Wooster Commerce and Industry Senior Civil Society and (PCCI) Participation Specialist, 3rd Floor, ECOP Bldg., Regional and Sustainable Makati City Development Department Asian Development Bank 6. Liza C. Antonio ADB Avenue, Executive Director Mandaluyong City Philippine Business for the [email protected] Environment (PBE) 2nd Floor, DAP Bldg. 3. Isagani Serrano San Miguel Avenue, Senior Vice President Pasig City Philippine Rural [email protected] Reconstruction Movement 56 Mother Ignacia Avenue, 7. Dallay Annawi Quezon City Researcher [email protected] Environmental Science for Social Change 4. Carmencita G. Arce Ateneo de Manila Campus, Vice President Quezon City GMA Network, Inc., [email protected] Appendixes 221

8. M. J. Rahman 13. Marissa V. David OIC, Southeast Asia ADB Consultant Agriculture, Environment, Managing Director and Natural Resources Division Center for Environmental Asian Development Bank Studies and Management ADB Avenue, Suite 210, Quadstar Building Mandaluyong City Ortigas Avenue, Greenhills [email protected] San Juan, MM [email protected] 9. Marion Daclan Executive Technical 14. Elvira Ramos-Balinang Coordinator Training and Organization Conservation International Development Consultant No. 6 Maalalahanin St. [email protected] Teacher’s Village, Diliman, Quezon City 15. Alex Guintu Center for Environmental 10. Rowena Boquiren Studies and Management Socio-Economic and Policy Suite 210, Quadstar Building Unit Leader Ortigas Avenue, Greenhills Conservation International San Juan, MM No. 6 Maalalahanin St. [email protected] Teacher’s Village, Diliman, Quezon City 16. Bethela Castro-DelNero Center for Environmental 11. Maria Teresa Vinluan Studies and Management Vice Chairman Suite 210, Quadstar Building Air and Water Management Ortigas Avenue, Greenhills Association–Philippine Section San Juan, MM 12D Bellamaja Townhouses [email protected] 411 Rev. Aglipay St., Bgy. Old Zaniga Mandaluyong City [email protected]

12. M. Nasimul Islam Environmental Specialist SERD/SEAE Asian Development Bank ADB Avenue, Mandaluyong City [email protected]

References

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This report updates the 2004 document and was prepared by the Asian Development Bank (ADB) to better understand environment and natural resources management in the country, and to assess the relevance of its lending and technical assistance. ADB and the Government will use this analysis to identify the priority constraints, needs, and opportunities, and respond with strategic interventions that will reduce the constraints and make the most of the opportunities.

About the Asian Development Bank

ADB's vision is an Asia and Pacific region free of poverty. Its mission is to help its developing member countries substantially reduce poverty and improve the quality of life of their people. Despite the region's many successes, it remains home to two-thirds of the world's poor: 1.8 billion people who live on less than $2 a day, with 903 million struggling on less than $1.25 a day. ADB is committed to reducing poverty through inclusive economic growth, environmentally sustainable growth, and regional integration. Based in Manila, ADB is owned by 67 members, including 48 from the region. Its main instruments for helping its developing member countries are policy dialogue, loans, equity investments, guarantees, grants, and technical assistance.

Asian Development Bank 6 ADB Avenue Mandaluyong City 1550 Metro Manila Philippines www.adb.org ISBN 978-971-561-807-6 Publication Stock No. RPT090189 Printed in the Philippines