2016 Environmental and Social Assessment (ESA) Report Harnessing Agribusiness Opportunities through Robust and Vibrant Entrepreneurship Supportive of Peaceful Transformation (HARVEST) (FINAL DRAFT) The views expressed in this document are those of the authors and do not necessarily reflect the views and policies of the World Bank (WB), Japan International Cooperation Agency (JICA), Food and Agriculture Organization (FAO) and Land Bank of the Philippines (LBP). The WB, JICA, FAO and LBP do not guarantee the accuracy of the data included in this publication and accept no responsibility for any consequence of their use. Land Bank of the Philippines (LBP) Through the assistance of World Bank, JICA and FAO ESA for the Proposed Harnessing Agribusiness Opportunities through Robust and Vibrant Entrepreneurship Supportive of Peaceful Transformation (HARVEST) 2 Table of Contents ACRONYMS AND ABBREVIATIONS ..............................................................................6 EXECUTIVE SUMMARY ..................................................................................................8 I. INTRODUCTION .................................................................................................... 16 1. The Proposed Program on Economic Growth through Agribusiness Cooperation and Entrepreneurship .................................................................................................... 16 1.1 Background ............................................................................................ 16 1.2 Project Description ................................................................................. 17 1.3 Project Location ..................................................................................... 19 2. Legal and Institutional Framework .................................................................... 20 2.1 Environmental and social laws and policies ............................................ 20 2.2 Existing institutional and governance structures ..................................... 22 II. ENVIRONMENTAL AND SOCIAL ASSESSMENT (ESA) ..................................... 25 1. ESA objectives .................................................................................................. 25 2. ESA methods and scope of work ...................................................................... 25 III. ENVIRONMENTAL AND SOCIAL CONTEXT: BASELINE SETTING ................... 27 1. Geographic or Physical Context ........................................................................ 27 2. The Natural Environment Context ..................................................................... 28 2.1 Geology .................................................................................................. 28 2.2 Soils and minerals .................................................................................. 30 2.3 Climate ................................................................................................... 33 2.4 Air Quality .............................................................................................. 34 2.5 Water ..................................................................................................... 34 2.6 Biodiversity ............................................................................................. 38 2.7 Terrestrial Biota/Habitat .......................................................................... 41 2.8 Freshwater Biota/Habitat ........................................................................ 44 2.9 Marine Biota/Habitat ............................................................................... 47 3. Demographic and Tri-People Context ............................................................... 50 4. Land Tenure Context ........................................................................................ 51 5. Economic and Poverty Context ......................................................................... 56 6. Political-Economy Context ................................................................................ 63 7. Health Situation ................................................................................................ 64 8. Archaeological and Cultural Resources ............................................................ 65 9. Conflict Context ................................................................................................ 65 10. ENVIRONMENTAL RISKS AND POTENTIAL IMPACTS ...................................... 71 A. Upstream Environmental Risk ........................................................................... 71 ESA for the Proposed Harnessing Agribusiness Opportunities through Robust and Vibrant Entrepreneurship Supportive of Peaceful Transformation (HARVEST) 3 Forest/Land Conversion and Loss of Natural Habitats and Biodiversity ............ 71 Overfishing and Loss of Marine Resources ...................................................... 72 Soil Degradation and Erosion ........................................................................... 73 Lower Water Availability ................................................................................... 75 Water Pollution (Area source from fertilizers and agrochemicals) ..................... 75 Waste Management ......................................................................................... 76 Health Impacts from Exposure to Pollution ....................................................... 77 B. Downstream Environmental Risk ...................................................................... 77 Pollution ........................................................................................................... 77 Waste Management ......................................................................................... 78 C. Environmental Risk of Agribusiness Supporting Facilities ................................. 78 51. SOCIAL RISKS AND POTENTIAL IMPACTS ....................................................... 80 A. Risks and Potential Negative Impacts ............................................................... 80 Displacement of Indigenous People.................................................................. 80 Involuntary Resettlement .................................................................................. 81 Increase in Land Conflict .................................................................................. 82 Insignificant Economic Improvement due to Low Wage Rate and Land Rent ... 82 Less Participation and Benefit of Women in Agri-business ............................... 82 Further disempowerment of the poor if with No Effective System for Receiving and Redressing Grievances from the Communities .............................................. 83 B. Positive Impact ................................................................................................. 83 Generated Jobs and Increased Economic Opportunities in Poor Communities 83 Restored Productivity of Lands Abandoned because of Armed Conflicts .......... 83 Enhanced confidence in farming due to improved farming technology and sure market 84 Added Social Services Provided to Host Communities ..................................... 84 76. RECOMMENDATIONS .......................................................................................... 85 A. Environmental Safeguards ................................................................................ 85 B. Social Safeguards ............................................................................................. 87 Indigenous Peoples Policy Framework ............................................................. 87 Resettlement Policy Framework ....................................................................... 88 Grievance Redress and Social Accountability System ...................................... 88 Gender Mainstreaming Framework ................................................................... 89 General Social Management Framework: Other Recommendations ................. 90 Annex A. List of Indigenous Peoples and their Locations in ARMM Annex B. List of ARMM Natural Tourist Spots ESA for the Proposed Harnessing Agribusiness Opportunities through Robust and Vibrant Entrepreneurship Supportive of Peaceful Transformation (HARVEST) 4 Tables and Figures Table Page I-1 Triggered Safeguard Policies 19 I-2 Environmental and Social Policies of GOP, WB and JICA relevant to 20 HARVEST I-3 Implementation Structures of Environmental and Social Policies 22 III-1 Indicative List of Clan Landholdings in Maguindanao 34 III-2 Land Acquisition and Distribution Accomplishment of DAR as of December 34 2014 III-3 Crops Planted in Lands Subjected to Agrarian Reform 35 III-4 ARCs, Land Areas and Beneficiaries of Agrarian Reform as of June 30, 35 2014 III-5 List of Ancestral Domain Claims in Maguindanao 36 III-6 Reported Mineral Deposits in ARMM 39 III-7 Soil Types in ARMM 40 III-8 Suitability of Soils for Agriculture in ARMM 41 III-9 Climate in the ARMM Area 45 III-10 Groundwater Availability 48 III-11 Watershed Areas in ARMM 49 III-12 Percentage of Population with Access to Water Served 49 III-13 KBA and Candidate KBAs in ARMM 52 III-14 Threatened Species Present Globally at only one KBA 53 III-15 Conservation Priority Areas in ARMM 53 III-16 Restricted Range Bird Species in ARMM Endemic Bird Areas 54 III-17 Status of Land Classification in ARMM (2013) 56 III-18 Forest Cover in ARMM (2013) 56 III-19 Watershed Forest Reserve in ARMM (2013) 57 III-20 Forest Agreements in