U.S. AGENCY FO0, INTEltNATIONAL DEVELOPMENT 7- 0 . k. Manila, PlI"iBppines B flamon Magsaysay Center Telephone: 521-7110 1600 Roxas Boulovard local 2444-2446 -August 2, 1989 Mr. Carlos T. Soriano Executive Director The Andres Soriano Foundation, Inc; A. Soriano Building 8776 Paseo de Roxas, Makati Metro Manila Dear Mr. Soriano: Subject: Grant No. AID 492-0419-G-SS-9079-00 Pursuant to the authority contained inthe Foreign Assistance Act of 1961, as amended, the Agency for 1.ternational Development (hereinafter referred to as "AID" or "Grantor") hereby grants to the Andres Soriano Foundation, Inc. (hereinafter referred to as "ASF" or Grantee) the sum of V2,940,000 (or $140,000) to implement the "Quiniluban Group of Islands Community Development Project", as ismore fully described in the attachment to this Grant entitled "Program of Work". The Grant iseffective and obligation ismade as of the date of this letter and shall apply to commitments made by the Grantee infurtherance of program objectives during the three-year period beginning with the effective date and ending August 1, 1992. This Grant ismade to the ASF on condition that funds will be administered in accordance with the terms and conditi6ns as set forth inAttachment 1, entitled "Schedule and Project Description", Attachmont 2, entitled "Standard Provisions" which have been agreed to by your organization. Please sign and date the original and seven (7)copies of this Grant to acknowledge your acceptance of the conditions under which these funds have been granted and return the original and six (6)copies to the undersigned. Sincerely, Malcolm Butler Di rector Attachments: 1. Attachment 1, Schedule and Project Description Annex A PVO Forms Annex B, Bank Agreement Form Annex C, Detailed Budget 2. Attachment 2, Standard Provisions ACKNOWLEDGED: THE ANDRES SORIANO FOUNDATION, INC. By: _ _ _ __ Title: Executive Director Date: FISCAL DATA Appropriation No. : 72-1191021 Budget Allowance No. : QDEA8927492KG13 PIO/T No. : 492-0419-3-90096 Project No. : 492-0419 Total Grant Amount : $140,000 RESCTLNO. : P892276 Earmark No. : P892276 Commitment Document No. : 492-0419-G-SS-9079-000 ' ATTACHMENT 1 SCHEDULE AND PROJECT DESCRIPTION QUINILUBAN GROUP OF ISLANDS COMMUNITY DEVELOPMENT PROJECT I PROJECT BACKGROUND A. Statement of the Problem There are over seven thousand islands in the Philippine Archipelago. In general, the smaller, inhabited islands are ignored by the national government as well as by the political unit of which they are a part. Private voluntary organizations (PVOs) have found it difficult to work in the smaller islands because of logistics and lack of community infrastructures. The "Small Island Development Project" implemented by Andres Soriano Foundation was a pilot project to test exactly what a PVO could do to improve the situation of people on one of the remote islands. The initial success of the "Small Island Community Development Project" of the Andres Soriano, Jr. Foundation, Inc. (ASJF), a sub-grantee, has prompted ASJF to expand its program to two other islands in the Quiniluban group. This group of islands is situated in the Sulu Sea and located in the northeastern part of the province of Palawan. The group consists of six small islands, but only the two targeted islands, Concepcion and Algeciras, have significant population concentrations. The combined land area of the six islands is about 4,000 hectares of mountainous terrain and very limited flatland. The islands sit on a shallow-reef flat of about 2,000 hectares. ASJF's attention was brought to this group of islands via a barangay resolution seeking assistance to improve their health conditions and, particularly, help in alleviating a cholera epidemic. In response to this request, a team composed of health workers from the island of Manamoc and staff from ASJF visited the two islands and observed the following: 1. Existence of poor health and sanitary conditions as indicated by the prevalence of malnutrition, PTB and waterborne diseases. Few of the households had toilet facilities. The water supply was unsafe and insufficient. Rubbish, human and animal waste and other refuse abound around the houses. The combination of unsafe and insufficient water supply and inadequate sanitation facilities constituted one of the major causes of death and disability among the poor in the islands. 492..419-G-SS-9O79-O. FOUNDATION, INC. GRANT NO. AID ,NDRES SORIANO Page 2 of 18 pages JUINILUBAN GROUP OF ISLANDS COMM4UNITY DEVELOPMENT PROJECT permanent care as exemplified by the lack of 2. Lack of health of islands. The health personnel working in either government about 2-3 hours away by boat. closest rural health unit is located were used by the islanders 3. Inappropriate and harmful technologies and product processing, i.e. burning in practi:es of farming, fishing lands for farming, dynamite and cyanide of vegetation to prepare These practices processing of fish and seaweeds. fishing, crude and damage to the ecology. resulted in low-quality finished products B. Summary Baseline Information and Concepcion have an The targeted island barangays of Algeciras (129 families) and 666 (112 families) estimated population of 528 of the people are Family ties are strong and the majority respectively. a fair degree of solidarity. related. This kinship allows for Declaration and is not titled. The Landownership is based on Tax as with crops for home consumption such farms are small and planted are planted in a few vegetables. About 60 hec:tares cassava, camote, and trees. The rice area, trees and about 45 hectares with cashew coconut only 5 hectares. which is rainfed, is estimated at local government islands' remoteness, only a minimal Due to the on the monoeconomy of exists. The islanders depend for infrastructure product (dried fish) which is traded seasonal fishing, the low-valued is limited by the (rice, fuel). Diet and nutrition high-cost commodities farming. In addition, of fishing and single crop rainfed seasonality bamboo and nipa are scarce. building materials such as lumber, islands are surrounded by resources still abound because the F~shery great economic potential is the vast shallow waters. A sector of known Eucheuma sp. (E. Spinosum and E. Cotoni), cultivation of seaweed, the peak season (January to "tambalang". Total hai-est during locally as harvest during the off-season June) is 20,000 metric tons. The monthly and About 90% of the population of Algecira is about 600 metric tons. Because of the is engaged in seaweed production. 30% of Concepcion average family income have risen high price of seaweed, monthly current seaweed does fluctuate and can range to VlO,000. However, the price of from V .00 to V6.00 per kg. From planting to cultivates an average of two hectares. A family of seaweed could yield 4,500 harvest is about seven weeks. A hectare cost of production is minimal at about kgs. in a culture period. The costs are nylon, straw and poles. Marketing V4,000 per year mainly for The total buyers are stationed in the area. negligible since permanent at 2,000 hectares of for seaweed production is estimated area suitable being utilized. which only 600 hectares are currently ANDRES SORIANO FOUNDATION, INC. GRANT NO. AID 492-0419-G-SS-9079-00 QUINILUBAN GROUP OF ISLANDS COMMUNITY Page 3 of 18 pages DEVELOPMENT PROJECT One of the most critical problems on Concepcion and Algeciras is the lack of an adequate supply of potable water. In Concepcion, there are g hand-dug open wells and one small seasonal spring. Only 4 of the wells serve as a source of drinking water. The condition on Algeciras is similar to Concepcion with only four sources of potable water. The open wells are dug through limestone to a depth of 4 to 7 meters. The water level is very low and the recharge rate is slow. In addition, the water has a high salt and chloride content. C. Administrative Capability The Andres Soriano Foundation (ASF) is a non-stock, non-profit organization established in 1973 to promote social and economic development particularly in the field of community self-reliance in rural areas. To accomplish its objectives, ASF maintains a professional staff of interdisciplinary personnel who develops, implements and reviews socio-economic projects that fall under its programs. The Foundation is closely governed by a Board of Trustees. ASF orchestrates the activities and operations of its various associated foundations engaged in multi-faceted projects such as leprosy control and rehabilitation, human resource training, scholarship grants, local resource management, etc. It Ai,) serves as a conduit for governmental and non-governmental orga'iizations having projects in Palawan. The most recent linkage is with the President's Social Fund Project involving the construction oi school buildings in Palawan Province and the Guimaras Islands. ASF has likewise developed and maintained an appreciable partnership with USAID in pursuing development priorities. It was registered with USAID in 1986 and received one sizeable grant. The "Small Island Development Project" commenced in May, 1986 and was recently completed. The project aptly demonstrated the capability of the Foundation to implement development projects in small isolated islands. ASF as grantee shall be responsible for the overall management and supervision of the project. It will act as administrator and provide technical and secretarial support to the subgrantee, the Andres Soriano, Jr. Foundation, Inc. (ASJF). ASF will submit all reports to USAID as required under the project and will ensure that the project is implemented in accordance with the condition of the grant agreement. ASJF as subgrantee shall be responsible for the implementation of the project and will submit the required financial and progress reports to ASF to form a bases for reports to USAID. ANDRES SORIANO FOUNDATION, INC. GRANT NO. AID 492-0419-G-SS-9079-00 QUINILUBAN GROUP OF ISLANDS COMMUNITY Page 4 of 18 pages DEVELOPMENT PROJECT II.