Document of The World Bank For Official Use Only Public Disclosure Authorized Report No: ICR0000723 IMPLEMENTATION COMPLETION AND RESULTS REPORT (IBRD-42990) ON A LOAN Public Disclosure Authorized IN THE AMOUNT OF US$50 MILLION EQUIVALENT TO THE REPUBLIC OF THE PHILIPPINES FOR THE COMMUNITY-BASED RESOURCES MANAGEMENT PROJECT Public Disclosure Authorized April 15, 2008 Rural Development, Natural Resources and Environment Sector Unit Sustainable Development Department East Asia and Pacific Region Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective January 14, 2008) Currency Unit: Philippine Peso (PhP) PhP 1.00 = US$0.0246 US$1.00 = PhP 40.65 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS BFAR Bureau of Fisheries and Aquatic Resources BLGF Bureau of Local Government Finance CBFMA Community-based Forest Management Agreement CBRMO Community Based Resource Management Office CDD Community-Driven Development DA Department of Agriculture DENR Department of Environment and Natural Resources DoF Department of Finance EIRR Economic Internal Rate of Return FIRR Financial Internal Rate of Return GAD Gender and Development IE Impact Evaluation ICR Implementation Completion and Results Report KPI Key Performance Indicators LGC Local Government Code LGU Local Government Unit (provinces and municipalities) MAENRO Municipal Agriculture, Environment and Natural Resources Office MAO Municipal Agriculture Office MENRO Municipal Environment and Natural Resources Management Office MDF Municipal Development Fund MDFO Municipal Development Fund Office M&E Monitoring and Evaluation MTR Mid-Term Review NPV Net Present Value NRM Natural Resource Management PAD Project Appraisal Document PDO Project Development Objective PO People’s Organization SECAL Philippines Environment and Natural Resource Sector Adjustment Program (SECAL) Project QAG Quality Assurance Group Vice President: James W. Adams, EAPVP Country Director: Bert Hofman, EACPF Sector Manager: Rahul Raturi, EASRE Task Team Leader: Idah Pswarayi-Riddihough, EASRE Republic of the Philippines The Community-Based Resources Management Project Implementation Completion and Results Report Contents Page No. Data Sheet i Section 1. Project Context, Development Objectives and Design ......................................................... 1 2. Key Factors Affecting Implementation and Outcomes......................................................... 5 3. Assessment of Outcomes ...................................................................................................... 9 4. Assessment of Risk to Development Outcome................................................................... 16 5. Assessment of Bank and Borrower Performance................................................................ 16 6. Lessons Learned.................................................................................................................. 19 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners..................... 20 Annex 1. Project Costs and Financing.................................................................................... 22 Annex 2. Outputs by Component............................................................................................ 23 Annex 3. Economic and Financial Analysis ........................................................................... 27 Annex 4. Beneficiary Survey Results ..................................................................................... 31 Annex 5. Bank Lending and Implementation Support/Supervision Processes....................... 32 Annex 6. Stakeholder Workshop Report and Results............................................................. 35 Annex 7. Summary of Borrower's ICR and/or Comments on Draft ICR ............................... 37 Annex 8. Comments of Co-financiers and Other Partners/Stakeholders................................ 39 Annex 9. List of Supporting Documents................................................................................. 40 Map : IBRD # 29354 DATA SHEET A. Basic Information The Community-Based Country Philippines Project Name Resources Management Project Project ID P004595 Loan Number IBRD-42990 ICR Date 04/15/2008 ICR Type Core ICR Lending Instrument SIL Borrower Government of the Philippines Original Total Disbursed US$50.0 million US$34.7 million Commitment Amount Environmental Category B Implementing Agency Department of Finance Co-financiers & Other External Partners None B. Key Dates Process Date Process Original Dates Actual Dates Concept Review August 27, 1993 Effectiveness October 6, 1998 October 6, 1998 June 6, 2001 Appraisal January 26, 1998 Restructurings - June 6, 2002 Approval March 24, 1998 Mid-term Review - April 11, 2001 Closing June 30, 2004 June 30, 2007 C. Ratings Summary C.1 Performance Rating by ICR Outcome Satisfactory Risk to Development Outcome Moderate Bank Performance Satisfactory Borrower Performance Satisfactory C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Quality at Entry MS Government S Quality of Supervision S Implementing Agency S Overall Bank Performance S Overall Borrower Performance S i C.3 Quality at Entry and Implementation Performance Indicators Implementation Performance Indicators QAG Assessments (if any) Rating Potential Problem Project at Yes Quality at Entry (QEA) None any time? Problem Project at any time? Yes Quality of Supervision (QSA) Satisfactory DO rating before Closing Satisfactory D. Sector and Theme Codes Original Actual Sector Code (as percentage of total Bank financing) General agriculture, fishing and forestry sector 45 35 Other social services 7 12 Roads and highways 20 24 Sub-national government administration 8 17 Water supply 20 12 Theme Code (Primary/Secondary) Decentralization Secondary Secondary Environmental policies and institutions Primary Secondary Land administration and management Primary Primary Rural services and infrastructure Secondary Primary E. Bank Staff Positions At ICR At Approval Vice President James W. Adams Jean-Michel Severino Country Director Bert Hofman Vinay Bhargava Sector Manager Rahul Raturi Geoffrey Fox Project Team Leader Idah Z. Pswarayi-Riddihough Frank Fulgence K. Byamugisha ICR Team Leader Felizardo K. Virtucio - ICR Primary Author Dorothy Lucks - ii F. Results Framework Analysis Project Development Objective The main project development objective (PDO) was to reduce rural poverty and environmental degradation through support for locally generated and implemented natural resource management sub-projects. The project aimed at: (a) enhancing the capacity of low-income rural local government units (LGUs) and communities to plan, implement and sustain priority natural resource management projects; (b) strengthening central government systems to transfer finance (as financial intermediaries) and environmental technology, and improve the implementation of environmental policies; and (c) providing resources to local government units to finance natural resource management projects. Revised Project Development Objective The PDO remained unchanged throughout the life of the project. Project Development Objective Indicators Baseline Original Target Formally Actual Values Value Values Revised Achieved (from approval (from approval Target at Completion or documents) documents) Values Target Years PDO Indicator 1 Household incomes are increased. Value None stated Incomes of 25 percent - Incomes of 65 percent of beneficiary of households have households are been increased. increased. Date achieved - - - December 2006 Comments The project exceeded the PDO target. A higher proportion of households were able to achieve an increase in income as a result of the active participation of People’s Organizations (POs) through a community-driven development (CDD) process. The extent to which incomes were increased varied widely across the households from short-term labor opportunities to sustained and substantial income increases. PDO Indicator 2 Management of natural resources is improved. Value None stated To be measured in - All Key Indicators were terms of the outcome achieved. indicators (below). Date achieved - - - December 2006 Comments The management of natural resources was improved in 100 percent of the sites, apart from the 30 sites that were dropped during the initial restructuring where implementation had not commenced. An additional 18 sites were included later in the project and reached comparable levels of performance. Varying degrees of improvement were seen depending on the nature of the local resources, the capacity of the LGU and the community, and the level of support available through the partner agencies. iii Intermediate Outcome (IO) Indicators Baseline Value Original Target Formally Actual Values (from approval Values Revised Achieved documents) (from approval Target at Completion or documents) Values Target Years IO Indicator 1 Upland and forestry practices are improved. Value None stated • Increase in - 1,825 ha reforestation • Increase in vegetation - 16,013 ha (agro- cover forestry) • Area with other soil - 1,517 ha (micro- erosion control watersheds) measures increased 822 ha (river bank stabilization) • Increase in perennial - 7,171ha crops Date achieved - - - December 2006 Comments Targets for upland