HARVEST ESA.pdf

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.

2016

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



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



Tables and Figures

Table Page

I-1 Triggered Safeguard Policies 19

I-2 Environmental and Social Policies of GOP, WB and JICA relevant to HARVEST

20

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 2014

34

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, 2014

35

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 ARMM (2013) 57

III-21 Major Inland Water Resources in ARMM 58

III-22 Marine Conservation Areas in ARMM 60

III-23 Endangered Species in the Philippines 62

III-24 First Semester Per Capita Poverty Threshold and Poverty Incidence among Families: 2006, 2009, 2012

62

III-25 Human Development Index of ARMM Provinces, 2009 63

III-26 Gender-related Development Index of ARMM Provinces, 2009 63

III-27 Gross Domestic Product (in Thousand Pesos at Current Prices) 64

III-28 Production in ARMM (2013) 66

III-29 Sources of credit in the Bangsamoro 68

III-30 Health Statistics 70

III-31 List of Rido Cases in ARMM as of December 2012 72

Figure Page

I-1 Map of the proposed Bangsamoro core territory 16

I-2 Map of the proposed Bangsamoro core territory 20

III-1 Topography in the Proposed Bangsamoro Area 30

III-2 Geological Map of the Philippines 38

III-3 Volcanoes in the Philippines 38

III-4 Active Faults and Trenches in the Philippines 39



III-5 Earthquake-triggered Landslide Susceptibility Map 40

III-6 Soil and Soil Suitability in the Philippines: Generalized Soil 42

III-7 Suitability of Soils for Agriculture: Generalized Agro-Edaphic Zones 43

III-8 Liquefaction Susceptibility Map 44

III-9 Climate Map of the Philippines 45

III-10 Environmental Health Risk from Air Pollution in the Philippines 46

III-11 Water Resources Map 47

III-12 Groundwater Map of Mindanao 47

III-13 Watersheds in ARMM Mainland Provinces 48

III-14 Key Biodiversity Areas 51

III-15 Annual Real GRDP Growth Rates (1996-2012) 64

III-16 ARMM Agriculture GRDP (2013) 65

III-17 Nominal Value of Production of Top Ten Major Crops in ARMM: 5-year average, 2008-2012

65

III-18 Bank Density in the Bangsamoro, 2006-2012 67

III-19 Banked and unbanked municipalities and cities in Bangsamoro, as of end of September 2011

67

III-20 Total deposits in ARMM, as of end of June 2013 68

III-21 Total loans in ARMM, as of end of June 2013 68

III-22 Mapping for Potential Horizontal Conflicts and Consequences for Agribusiness Investments

71



ACRONYMS AND ABBREVIATIONS

AFF Agriculture, Fishery and Forestry AHFF Agriculture, Hunting, Forestry and Fishing ARC Agrarian Reform Council ARMM Autonomous Region in Muslim Mindanao BARC Barangay Agrarian Reform Committee BBL Bangsamoro Basic Law BCT Bangsamoro Core Territory BIFF Bangsamoro Islamic Freedom Fighters BHNR Bangsamoro Human Rights Network BOD Biological Oxygen Demand BP Bank Procedure CAB Comprehensive Agreement on the Bangsamoro CADT Certificate of Ancestral Domain Titles CARP Comprehensive Agrarian Reform Program CLOA Certificate of Land Ownership Award DA Department of Agriculture DAR Department of Agrarian Reform DENR Department of Environment and Natural Resources DTI Department of Trade and Industry EBA Endemic Bird Area ECC Environmental Compliance Certificate ECOGOV Philippines Environmental Governance Project EGWS Electricity, Gas and Water Supply EO Executive Order ESIA Environmental and Social Impact Assessment FAB Framework Agreement on the Bangsamoro FAO Food and Agriculture Organization of the United Nations FDA US Food and Drug Administration FGD Focus Group Discussion FLUP Forest Land Use Plan GAD Gender and Development GDP Gross Domestic Product GOP Government of the Philippines GRDP Gross Regional Domestic Product HACCP Hazard Analysis and Critical Control Points HDI Human Development Index HDN Human Development Network ICC Indigenous Cultural Communities IDP Internally Displaced Persons IOM International Organization for Migration IP Indigenous Peoples ISO International Organization for Standardization JICA Japan International Cooperation Agency KBA Key Biodiversity Area LAD Local Agricultural Development LBP Land Bank of the Philippines LCE Municipal/City Local Chief Executive LDC Local Development Council LGU Local Government Unit



MFARMC Municipal Fisheries and Aquatic Resource Management Council MILF Moro Islamic Liberation Front MW Mega Watt MMAA Muslim Mindanao Autonomy Act NAMRIA National Mapping and Resource Information Authority NCIP National Commission on Indigenous Peoples NGO Non-Government Organization OP Operational Policy OSCC Office of Southern Cultural Communities PAD Public Administration and Defense PAMB Protected Area Management Board PARAD Provincial Agrarian Reform Adjudicator PARCOM Provincial Agrarian Reform Committee PCIJ Philippine Center for Investigative Journalism PD Presidential Decree PDO Project Development Objective RA Republic Act RBFAR Regional Bureau of Fisheries and Aquatic resources RBOI ARMM Regional Board of Investment RERBA Real Estate, Renting and Business Activities RPDO Regional Planning and Development Office RRUC Regional Reconciliation and Unification Commission TBD To be determined TSC Transport, Storage and Communication USDA United States Department of Agriculture WB World Bank WDR World Development Report



EXECUTIVE SUMMARY An assessment of the potential impacts of the proposed Harnessing Agribusiness Opportunities through Robust and Vibrant Entrepreneurship Supportive of Peaceful Transformation (HARVEST) was carried out by the Land Bank of the Philippines (LBP), a financing facility for agribusiness and agribusiness-related investors in the Bangsamoro territory. The basis of the assessment is the consolidated data gathered during the joint safeguards scoping mission of the World Bank and the Japan International Co-operation Agency (JICA) in August 2014 and consultations with stakeholders from the government, civil society and business sectors in mainland and island provinces of the Autonomous Region in Muslim Mindanao (ARMM) from January 26-31, 2015.

The ESA considers the potential environmental and social impacts (positive or negative) from the projects that will be supported by the financing facility. The assessment of impacts covers the farming and production systems, post-production activities such as extraction, refining and processing, and the associated agribusiness support facilities. This ESA has been undertaken with directions provided by the World Bank, JICA, and the Land Bank of the Philippines (LBP). The assessment takes off from the initial scoping of issues and risks conducted in August 2014 jointly by the World Bank, JICA and LBP. The assessment has been carried out guided by all relevant policies, guidelines, and standards of the World Bank, JICA and the Government of the Philippines.

This ESA aims at assessing the risks and potential impacts (positive and negative) of the proposed financing facility and offering recommendations to avoid and mitigate adverse impacts particularly on the poor and most vulnerable sectors and to enhance inclusion and ownership of the proposed development interventions. The results shall be used as inputs to the preparation of the proposed environmental and social management framework and other applicable safeguards instruments. The assessment will specifically look into the risks and potential impacts of the proposed financing facility on the built and natural environment as well as in the areas of involuntary resettlement and indigenous peoples.

In identifying potential risks and impacts on and potential changes to the communities and the environment, the existing environmental and social conditions were established through:

Detailed reviews of all available secondary data sources (i.e. existing documentation and literature);

Key informant interviews and focus group discussions on potential agribusiness ventures;

Key informant interviews with key national and regional government agencies;

Focus group discussions with farmers, contract growers, and large-scale producers; and

Visits to and documentation of communities and production facilities including environmental infrastructure such as waste treatment and other facilities and operations that may pose environmental risks and impacts.

Project description

In summary, the proposed program is envisaged to be a lending facility for agribusiness and agribusiness-related investors in the Bangsamoro territory. It will provide a line of credit to Land Bank of the Philippines at a concessional rate to on-lend to eligible sub-borrowers directly or through accredited conduits. The proposed project loan is US$265 million. The project period is expected to be five years. The financing facility aims to generate investment and create



sustainable jobs and income generation opportunities in Bangsamoro territory. As a project, it has two components: (1) Investment Development Fund with cost estimated at US$265 million; and (2) Capacity Building and Institutional Development, Monitoring and Evaluation.

Under Component 1, Investment Development Fund, HARVEST will provide a line of

credit at a concessional rate and terms to eligible sub-borrowers. Sub-loans would be demand-driven and made to end-borrowers meeting a set of eligibility criteria. Three main potential categories of sub-borrowers are: (i) large private corporations; (ii) co-operatives (producers‟ organizations) and private anchor firms; and (iii) micro, small and medium enterprises.

The Component 2 on the other hand is a technical assistance directed to LBP to assist

build the capacities of cooperatives, deepen outreach and dissemination, support monitoring and evaluation, and strengthen safeguards capacity.

This report is a concise presentation of the results of the assessment, describing the prevailing environmental and socio-economic and cultural conditions of the proposed Bangsamoro region as setting for identifying potential risks and impacts from projects that may be supported by the financing facility. The report also provides recommendations that will be the basis of the environmental and social management framework as well as other applicable safeguard instruments. Prevailing environmental and social conditions The proposed Bangsamoro region shares many similar physical and environmental characteristics of those in Mindanao and the country. The region is endowed with rich natural resources characterized by river basins, wetlands, and forest lands, production areas, settlements and coastal and marine areas. Terrestrial and marine biodiversity in the region is still considered rich although there are habitats that are threatened by exploitation and degradation. Within the region there are declared (local, national, and internationally recognized) conservation and protection areas. One distinguishing feature of the communities in the region is its demography and tri-people context – with the population consisting of Moros or Muslims, lumads or indigenous peoples, and Christian settlers from Luzon and Visayas and has influenced the social structure and aggregation of communities. The region has for many years undergone tumultuous conflicts that have sustained poverty and resulted to instability. Details of the baseline conditions are presented in the report. Environmental and Social Risks and Potential Impacts

The summary of the environmental and social risks and potential impacts that may arise from agribusiness activities in the Bangsamoro Region were identified and described.

The environmental risks and potential impacts of agribusinesses vary according to the

type of project, practices and the absorbing capacity of the environment. To facilitate the assessment of environmental risk and potential impacts, agribusinesses were subdivided into farming and production systems, post-harvest processing including extraction and purification, and agribusiness support facilities.



The upstream environmental risks and potential impacts related to farming and other crop production systems include:

Forest/land conversion and loss of natural habitats and biodiversity;

Overfishing and loss of marine resources;

Soil degradation and erosion;

Lower water availability;

Water pollution (application of fertilizers and agrochemicals);

Waste management, and

Health impacts from exposure to agrochemicals and other pollutants.

The downstream environmental risks and impacts related to post-harvest processing, extraction and purification include:

Pollution (point sources such as emission to air and discharge of effluent), and

Waste management.

The environmental risks and impacts related to agribusiness supporting facilities, such as power plants, waste treatment facilities, irrigation systems, fishing boats, etc.:

Forest/land conversion and loss of natural habitats and biodiversity;

Overfishing and loss of marine resources;

Soil degradation and erosion;

Less water availability and poorer quality;

Pollution (point sources such as emission to air and discharge of effluent), and

Waste management.

The social risks and potential impacts of especially large agribusinesses are caused by three main factors: problematic land administration system resulting into insecure land tenure and many land conflicts; remote location of many poor people, especially the indigenous peoples (IPs), and poor road system; and lack or inadequate access to basic services, including education. Given these factors, identified social risks and potential impacts are:

Displacement of indigenous people;

Involuntary resettlement given the need for land of large agribusiness;

Increase in land conflicts;

Insignificant economic improvement due to low wage rate and land rent;

Less participation and benefit of women and other vulnerable people; and

Further disempowerment of the poor if without an effective system for receiving and redressing grievances from the communities.

Positive social impacts identified were:

Generated jobs and increased economic opportunities in poor communities;

Restored productivity of lands abandoned because of armed conflicts;

Enhanced confidence in farming due to improved farming technology and sure market introduced by large agri-business companies; and

Added social services provided to host communities

In view of the above, the HARVEST is assessed to trigger four safeguards policies of the World Bank – Environmental Assessment (WB OP/BP 4.01); Pest Management (OP 4.09); Natural Habitats (OP/BP 4.04); Forests (OP/BP 4.36); Indigenous Peoples (OP/BP 4.10); and Involuntary Resettlement (OP/BP 4.12) – and related policies of Japan International Cooperation Agency (JICA) and the Government of the Philippines (GOP).



Recommendations Given the identified environmental and social risks and potential impacts and based on the recommendations of the stakeholders, the ESA team recommends the following safeguards guidelines and instruments for HARVEST. A. Environmental Safeguards 1. Environmental and social management framework (ESMF) as the safeguard instrument. The

HARVEST will finance projects and activities that have yet to be identified and therefore the predicted impacts cannot be determined at this stage. As the appropriate safeguard instrument in this circumstance, the ESMF sets out the principles, rules, guidelines and procedures to assess the environmental and social impacts. The ESMF will contain measures and plans to reduce, mitigate and/or offset adverse impacts and enhance positive impacts, provisions for estimating and budgeting the costs of such measures, and information on the agency or agencies responsible for addressing project impacts.

2. Each sub-project to be funded by the HARVEST needs to go through a screening process,

consistent with the World Bank, JICA, and LBP procedures, as may be defined in the environmental and social management framework (ESMF). If the proposed projects are required to undertake an EIA as permit conditions of the Government, the project proponent needs to provide sufficient details to meet these requirements according to the Government and LBP Due Diligence process. In particular, the project‟s impact on natural habitat, forest and physical cultural resources needs to be included.

3. Pest Management. For projects anticipated to have pest management issues typical of

mono-culture cropping systems, the requirements of the Bank‟s on Pest Management (OP 4.09) will need to be met. The policy on Pest Management highlights the need to promote integrated approaches in pest management particularly on Bank-financed projects. If the projects are known to promote the increased use of pesticides as well as the health and environmental risks, maintain unsustainable pest management practices, or will procure pesticides and application equipment, the proponents will be required to include pest management issues in the EA, develop a pest management plan (PMP), and the list and details of pesticides that are authorized for procurement under the project. It also becomes strategic for the project to avail, if feasible the Department of Agriculture‟s (DA) Integrated Pest Management program, KASAKALIKASAN. The program trains, empowers and develops farmers‟ skills in making critical and informed decisions towards a more productive, profitable and sustainable crop production system. It employs an experiential learning approach through the Farmer Field Schools (FFSs) to enable farmers to practice IPM.

4. Forests. For projects that are expected to have impacts on the health and quality of forests

as well as the rights and welfare of its dependent communities and may bring about changes in the management practices of forests, the Bank‟s Policy on Forest (OP/BP 4.36) applies. Further assessments may be required from the project proponent including adequacy of land allocation for the management, conservation, and sustainable development of forests, including any additional allocations needed to protect critical forest areas. Other safeguards policies related to the protection of the welfare of communities including involuntary resettlement (OP/BP 4.12) and Indigenous Peoples (OP/BP 4.10) will also be applied.



5. Natural habitats. Projects involving establishment of plantations have potential to cause

conversion of natural habitats in the region. Identified during the scoping, there are 10 protected areas in the region with specific legal declarations totaling an approximate area of 184,000 hectares. Some of the biggest watershed reservations and wetlands are located in this region. Where conversion is predicted, the requirements of the Bank‟s policy on Natural Habitat (OP 4.04) will need to be complied with including acceptable mitigation measures and the conservation of compensatory natural habitats.

6. Each project to be funded by the HARVEST needs to include a management plan, with the

level of detail suited to the project‟s impacts. The management plan may include among others specific environmental mitigation measures such as soil and water conservation, waste management, and pollution control and minimization, where applicable and appropriate to the scale of the project and applicable pollution control standards. The mitigation measures will cover the various phases of the project including pre-construction, construction, and operation if the project involves infrastructure development.

7. The projects will need to comply with applicable legislations and regulations including

fertilizer and pesticide use, water use rights and permits, environmental clearance certificate and its approval conditions, licenses to operate fishing vessel/gear, fishing bans, etc. Where appropriate and feasible, proponents may need to take advantage of the benefits provided by environmental management systems (EMS) and certifications. Appropriate EMS and certifications provide companies with a systematic approach to compliance and a structured way to manage their environmental aspects and impacts. These provide companies with benefits that range from operational efficiency, management of risks, and improved compliance. For large scale projects, environmental management systems consistent with international certification such as ISO 14001, Rainforest Alliance, HACCP, FDA, Dolphin Safe and others can be considered.

8. Projects to be funded by the HARVEST need to consider and avoid areas that are known to

have geological hazards (topographical and soil) as outlined in the baseline conditions, such as: steep slopes and potential soil liquefaction. If that is not possible, additional mitigation measures should be implemented to avoid/minimize potential environmental impacts.

9. Indigenous Peoples (IP). Indigenous Peoples Policy Framework will be needed as part of

the safeguards instrument for the HARVEST. For subprojects located in IP ancestral lands/domain or subprojects affecting IPs (See Annex A for locations of IPs in ARMM) 1:

The Bank‟s Policy on Indigenous Peoples (OP 4.10) requires the following from sub borrowers before approval or release of loans:

Compliance with the provision of the Indigenous People‟s Rights Act of 1997 and ARMM Tribal People‟s Rights Act of 2008 on seeking free, prior, informed consent (FPIC) of indigenous peoples through securing a certification from the Office of Southern Cultural Communities (OSCC) for indigenous peoples (IPs) in Maguindanao, Lanao del Sur, Sulu and Tawi-tawi and from the National Commission on Indigenous People (NCIP) for IPs in Basilan that the affected IPs in covered area(s) agree in consensus with a proposed sub-project; and

1 Based on data provided by the Office of Southern Cultural Communities (OSCC) and National Commission on

Indigenous People (NCIP) – Basilan.



Provide measures, such as representation of IPs in multi-stakeholder structures that will be established for the HARVEST that will ensure that the IPs in covered areas will benefit rather than be disadvantaged by the agribusiness.

On the Component 2, Capacity Building and Institutional Development, Monitoring and Evaluation, the integration of the following:

Development of capabilities of selected groups or associations or co-operatives of IPs in agri-business development and operations, and marketing (e.g., value/supply chain analysis). Consult IPs, through the assistance of OSCC and NCIP-Basilan, in the development of criteria for the selection of these groups.

Coordination with civil society organizations and other government agencies operating in areas of sub-borrowers for convergence of services to IPs;

Setting up of multi-stakeholder monitoring and evaluation structure in municipalities where large agribusiness companies and co-operatives will be supported to oversee the progress of agri-business and provide quick and appropriate interventions on problems or conflicts affecting the IPs.

10. Involuntary Resettlement. The Resettlement Policy Framework will be prepared in case

land acquisition for agri-business will require transfer or resettlement of landholder(s) or occupants. This social safeguard instrument shall ensure that:

Resettlement is voluntary and necessary;

Affected landholders or occupants, regardless of their land tenure situation (informal or formal; with or without land titles) are consulted and agree with the terms of the resettlement (e.g., fair land lease/rental cost, just compensation and assistance, and others); the guiding principle is informed choice especially on the part of the small landholders or poor occupants;

Multi-stakeholder structure is established to ensure compliance with fair and proper guidelines and procedures for land acquisition and resettlement, and to prevent exacerbation of existing land conflicts in affected areas; members of this structure shall be determined in consultation with the local government unit (LGU), and may include representatives of the LGU, civil society organizations (e.g., NGOs operating in the area or assisting affected small landholders and/or occupants, and people‟s organizations), concerned government line agencies (e.g., DENR, DAR, NHA, and/or others that have jurisdiction over or programs/projects related to affected land) and other groups or individuals (e.g., datu, respected elders, mediators, etc.) with knowledge of land situation and conflicts, if any, in the area;

A sub-borrower submits a resettlement action plan, which reflects the above guidelines, and properly implements this plan prior to loan approval.

11. Grievance Redress and Social Accountability System. The purpose of installing a

grievance redress and social accountability system is to prevent emergence of new conflicts or exacerbation of existing conflicts by ensuring responsiveness of the Land Bank of the Philippines to grievances and concerns of stakeholders and fostering social accountability. This system may include:

Proactive guidelines or measures to prevent conflicts, such as:



Peace and Conflict Analysis (PCA) during the social preparation phase of an agribusiness. In doing PCA, selected stakeholders: (i) assess if and how a proposed agribusiness can be conflict-creating or peace-enhancing; and (ii) propose measures to transform the agri-business into a peace-enhancing endeavor. The social safeguards team of the Land Bank should thus be trained in conducting the PCA.

Identification and consultation with respected individuals (e.g., datu, elders, mediators) and groups/organizations (e.g., LGUs, NGOs, POs) that have knowledge of the social condition in the location of proposed agribusiness;

Policy requiring compliance with minimum wage rate for agribusiness workers and observance of informed choice in entering into a lease agreement and resettlement arrangements;

Information dissemination on this grievance redress system;

Procedures and mechanisms for filing, receiving and responding to complaints and grievances against HARVEST in general and against each supported agri-business;

Procedures for helping illiterate complainants; and

Grievance redress or conflict resolution/management structures and procedures.

12. Gender Mainstreaming Framework and Strategy. In compliance with Republic Act (RA) 9710 or the Magna Carta of Women of 2009, and RA 7192 or the Women in Development and Nation Building Act of 1992, the Land Bank of the Philippines shall formulate its gender mainstreaming framework and strategy for HARVEST. The general objective is to promote meaningful participation and equitable benefit of women and men from the HARVEST and from supported agri-business subprojects. The promotion of women‟s participation in HARVEST shall be in accordance with Muslim Mindanao Autonomy Act 280 or the ARMM GAD Code, RA 9710 or the Magna Carta of Women (MCW) and RA 7192 or the Women in Development and Nation Building Act. The gender mainstreaming framework and strategy will push for the integration of gender in the manual of operations of the Land Bank of the Philippines for HARVEST. This will include, among others, the:

Collection and analysis of sex-disaggregated data and gender-related information, including barriers (if any) to participation of women in agribusiness;

Development of a Gender and Development (GAD) plan for HARVEST that may include, among others: The formulation of policy that will require lending centers of Land Bank to support

the gender mainstreaming strategy of HARVEST; Capability development in gender sensitivity and gender mainstreaming

especially in a tri-people (Moro, Lumad, Christian) setting; Ensuring participation of both women and men in multi-stakeholder structures

that will be established for the HARVEST; Allocation of at least 5% of the total budget of HARVEST for promoting gender

equality and women‟s empowerment in agribusiness through supporting agri-business projects of selected/qualified women‟s associations (as part of Component 1) and training of staff of lending centers of LBP and agri-business operators in gender sensitivity and gender mainstreaming (as part of Component 2).

Inclusion of gender sensitive indicators (e.g., number of women and men who participate and benefit from the supported agribusiness subproject) in monitoring and evaluating supported agribusiness subprojects.



To ensure effective and coordinated implementation of this gender mainstreaming framework, the HARVEST is proposed to: Have a gender specialist or form a gender focal team for HARVEST; Tap Mindanao CSOs with expertise in Gender and Development in orienting

sub-borrowers on how to promote gender equity in agribusiness located in tri-people communities; and

Put up a reward system for most gender-sensitive agribusiness subproject. 13. General Social Management Framework: Other recommendations. In view of the

history of poverty and conflict situation in ARMM and given their apprehensions of large agribusiness companies, many participants from civil society organizations proposed the following:

Prioritization of social enterprises that are: primarily beneficial to the poor, respectful of the culture of the tri-people of ARMM (e.g., halal and Islamic culture, indigenous people‟s culture), conflict-sensitive, peace-enhancing, environment-friendly, promoting diversified model of agriculture, and climate-resilient;

Development of the capacity of small sub-borrowers(e.g., small landholders or fishers associations or co-operatives; contract growers) in enterprise development, negotiating for fair contracts, and marketing -- this may be incorporated in Component 2 of HARVEST;

Inclusion of measures to help potential small sub-borrowers comply with the lending requirements of Land Bank;

Tapping the services of civil society organizations in assisting small sub-borrowers in the areas of capacity development, provision of legal assistance when needed, and others; and

Mobilization of other government agencies in the provision of support services, such as infrastructure development, access to water and electricity, marketing, and others that will make social enterprises more viable.

14. In compliance with the government‟s Full Disclosure Policy as prescribed in DILG

Memorandum Circular 2012-141, the annual accomplishment report, including gender accomplishment report, will be posted in publicly accessible and conspicuous places in lending centers of Land Bank, as well as in the website of the Land Bank not later than the end of January of the ensuing year.



I. INTRODUCTION 1. The Proposed Program on Economic Growth through Agribusiness Cooperation

and Entrepreneurship 1.1 Background 1.1.1 On September 10, 2014 President Benigno Simeon C. Aquino III submitted to the

Philippine Congress a draft Bangsamoro Basic Law (BBL) for enactment to supersede Republic Act (RA) 9054 or the Autonomous Region in Muslim Mindanao (ARMM) Organic Law. The draft BBL is based on the Comprehensive Agreement on the Bangsamoro (CAB) signed by the Government of the Philippines (GOP) and the Moro Islamic Liberation Front (MILF) on March 27, 2014 after years of peace negotiation. The Congress has committed to prioritize the BBL and targets to submit it to the people of the proposed Bangsamoro territory in a plebiscite by mid-2015. With this progress, hopes are high that the decades-old armed conflict in Mindanao, which have brought massive displacements and kept the region in the vicious cycle of poverty, will finally come to an end.

1.1.2 The positive developments on the peace process have generated varied reactions on

the ground. The most pronounced and commonly held view across sectors is that this peace agreement will change the social, economic and political landscape of the region for the better with the eventual installation of a governance system that is more attuned to the peculiar demographic (tri-people) and cultural context of the region and to the Bangsamoro‟s quest for self-determination.

1.1.3 There is consensus among Mindanao policy makers and the private sector that a key factor that has discouraged more investments to the region is the armed conflict. Thus, the signing of the peace accord has been widely supported by various Mindanao stakeholders as expectations are high that it will trigger investors' interest particularly in the Bangsamoro area. In fact, recent data from the ARMM Regional Board of Investments (RBOI) have shown a significant increase in the amount of new investments in the region.

1.1.4 It is in this context that the Government has approached the World Bank and JICA with a proposal to establish an agribusiness line-of-credit through the Land Bank of Philippines. The scheme aims to serve as incentive to agribusiness and agribusiness-related investors and is expected to generate more jobs and more economic activities in the area.

1.1.5 The HARVEST intends to help address one of the key pillars of the GOP-MILF peace accord – the socio-economic reconstruction and development of the Bangsamoro area. Private sector investments are critical in promoting growth and generating jobs, so badly needed in the region. Their engagement is consistent with the employment creation agenda and Peace and Security Intermediate Outcome 2, specifically “improved livelihood, entrepreneur and employment status of adult population in conflict-affected areas” of the Philippine Development Plan, 2011-2016. The World Development Report (WDR) 2011 similarly recognizes that the creation of "citizens‟ jobs" is a key stabilization and normalization measure in communities emerging from conflict.



1.2 Project Description 1.2.1 The proposed Harnessing Agribusiness Opportunities through Robust and Vibrant

Entrepreneurship Supportive of Peaceful Transformation (HARVEST) is envisaged to be a lending facility for agribusiness and agribusiness-related investors in the Bangsamoro territory. The facility will provide a line of credit to Land Bank of the Philippines (LBP) at a concessional rate to on-lend to eligible sub-borrowers directly or through accredited conduits. The proposed project loan is US$265 million. The project period is expected to be five years (expected implementation commencement in October 2015 and completion in December 2020), with project closing in June 2021. The Project Development Objective (PDO) is to generate investment and create sustainable jobs and income generation opportunities in Bangsamoro territory. It has two components: (i) Investment Development Fund with cost estimated at US$265 million; and (ii) Capacity Building and Institutional Development, Monitoring and Evaluation.

1.2.2 Under Component 1, Investment Development Fund, HARVEST will provide a line of credit at a concessional rate and terms to eligible sub-borrowers. Sub-loans would be demand-driven and made to end-borrowers meeting a set of eligibility criteria. Three main potential categories of sub-borrowers are: (i) large private corporations; (ii) co-operatives (producers‟ organizations) and private anchor firms; and (iii) micro, small and medium enterprises.

1.2.2.1 Large private corporations include nucleus estate type projects – private entities leasing in land from local owners for an extended period (15-20 years under some present arrangements), carrying out land preparation and planting activity, deploying local community members as labor in accordance with local labor and wage laws. This would also include in-estate infrastructure development such as access roads, captive power generation, etc. for new or expansion investment. LBP will lend directly to the large private corporations.

1.2.2.2 Financing of organized smallholders, particularly cooperatives (producers‟

organizations) and private anchor firms, is required for inclusiveness, reaching a larger proportion of the population, and widening the basis for economic growth. Sourcing directly from smallholders will increase the likelihood of attracting large private firms willing to support contract farming or out-grower schemes. LBP will lend directly to cooperatives (producers‟ organizations) for direct investment or for on-lending to member farmers for existing or newly formed cooperatives. LBP will also lend directly to private firms which propose to source produce through contract farming or out-grower schemes. The loan will be at the concessional rate, for a maximum of 15 years, including grace period based on the maturity period of the specific commodity being produced, reflecting sub-project cash flow generation potential (to be determined during preparation).

1.2.2.3 The inclusion of micro, small and medium enterprises as potential sub-borrowers will offer income generation opportunities to those who have no access to land or do not propose to engage in agriculture. This would support agriculture or agri-business by providing ancillary or tertiary services along the value chain (cold storage, post-harvest facilities, farm inputs and supplies, repairs and maintenance, connectivity to markets, among other interventions). Two options will be explored during preparation: (i) LBP lending directly to these enterprises; or (ii) LBP providing whole-sale funding to microfinance providers for the purposes of on-lending to these enterprises. The



loan will be at the concessional rate, for a maximum of 7 years, including grace period reflecting sub-project cash flow generation potential (to be determined during preparation).

1.2.3 Component 2, Capacity Building and Institutional Development, Monitoring and

Evaluation, is technical assistance to LBP from JICA. This component would cover the following activities:

1.2.3.1 Capacity building of cooperatives (producers’ associations/organizations). This would

be done through promotion, training and technical assistance to: (i) promote partnerships between smallholders and private sector buyers; (ii) help associations and purchasers enter into fair and feasible marketing agreements; and (iii) ensure producer associations deliver on commitments under marketing agreements (by organizing investments and TA in production systems, and by facilitating operations). This would be based on deepening and operationalizing the knowledge that LBP already has (Food Supply Chain Program, Grassroots Development Program, and others) in the context of the project-supported cooperatives and anchor firms.

1.2.3.2 Deepening outreach and access to financial services. This would be done through capacity development of lending centers to market the project line of credit, and through dissemination programs by Cooperative Development Authority, Local Government Units, etc. to publicize the concessional loans offered under the project. This sub-component will also support coordination with other local partners in the Bangsamoro region, such as the Regional Board of Investments (RBOI), Department of Trade and Industry (DTI), and Department of Agriculture (DA) in the Autonomous Region in Muslim Mindanao (ARMM).

1.2.3.3 Monitoring and Evaluation. This would support mid-term and final project completion assessments.

1.2.3.4 Strengthening the capacity of the Environmental Program Management Department (EPMD) of the LBP particularly in environmental and social safeguards.

1.2.4 Projects financed will be subject to compliance with requirements under the World

Bank‟s and JICA‟s safeguard policies, and related policies of the Government of the Philippines. During a joint safeguards scoping mission, LBP, WB and JICA identified four safeguard policies triggered by HARVEST. This was later amended to reflect the recommendations of the Regional Safeguards Secretariat, shown in Table I-1. The complexity of environmental and social issues in the Bangsamoro requires this comprehensive environmental and social impact assessment before project appraisal.

Table I-1. Triggered safeguard policies

Safeguard policies Yes No TBD

Environmental Assessment (WB OP/BP 4.01) X



Natural Habitats (OP/BP 4.04) X

Forests (OP/BP 4.36) X

Pest Management (OP 4.09) X

Physical Cultural Resources (OP/BP 4.11) X

Indigenous Peoples (OP/BP 4.10) X

Involuntary Resettlement (OP/BP 4.12) X

Safety of Dams (OP/BP 4.37) X

Projects on International Waterways (OP/BP 7.50) X

Projects in Disputed Areas (OP/BP 7.60) X

1.3 Project Location 1.3.1 The HARVEST will be implemented in the Bangsamoro region, which is located in the

southwestern part of the Philippines. The proposed core territory is composed of the following:

Autonomous Region in Muslim Mindanao (ARMM) consisting of five provinces (Basilan, Lanao del Sur, Maguindanao, Sulu and Tawi-tawi) and one city (Marawi City);

The municipalities of Baloi, Munai, Nunungan, Pantar, Tagoloan, and Tangkal in the province of Lanao del Norte;

The thirty nine (39) barangays in the municipalities of Kabacan, Carmen, Aleosan, Pigkawayan, Pikit, and Midsayap in the province of North Cotabato who voted for inclusion in the ARMM in 2001 plebiscite;

The cities of Lamitan and Isabela in the province of Basilan; and

Other contiguous areas that may opt to be included in the Bangsamoro region.

Figure I-1. Map of the proposed Bangsamoro core territory/region.



2. Legal and Institutional Framework 2.1 Environmental and social laws and policies 2.1.1 Table I-2 below provides a comprehensive list of major environmental, social and related

policies of the Government of the Philippines (GOP), World Bank and JICA that are to be considered in assessing the potential environmental and social impacts of HARVEST subprojects, as well as in formulating measures to ensure compliance by sub-borrowers.

Table I-2. Environmental and social policies of GOP, WB and JICA relevant to HARVEST

Government of the Philippines

A. Environmental Policies/Regulations

RA 9275 Clean Water Act of 2004

RA 10121 Philippine Disaster Risk Reduction Management Act of 2010

RA 9147 Wildlife Resources Conservation and Protection Act (2001)

RA 9003 Ecological Solid Waste Management Act of 2000

RA 8749 Clean Air Act of 1999

RA 7942 Philippine Mining Act (1995)

RA 7586 National Integrated Protected Areas System (NIPAS) Act of 1992

RA 6969 Toxic Substances and Hazardous and Nuclear Wastes Control Act of 1990

PD 1144 Fertilizer and Pesticide Act

RA 8550 Philippine Fisheries Code

PD 1067 Water Code of the Philippines (1976)

PD 984 Pollution Control Law (1976)

PD 705 Revised Forestry Code (1975)

PD 1586 Philippine Environmental Impact Assessment (EIA) System

DAF AO1, s 2006 Implementing Rules and Regulations of Muslim Mindanao Autonomy Act (MMMA) 86 or the ARMM Aquatic and Fisheries Code of 1999

B. Social Safeguard Policies

RA 8371 Indigenous Peoples Rights Act of 1997

MMAA 241 Tribal People‟s Rights Act of 2008

EO 1035 Acquisition by the Government of Private Real Property or Rights (1985)

RA 8974 Facilitating the Acquisition of Right-of-Way Sites for Infrastructure Subprojects

RA 7279 Urban Development and Housing Act – as it pertains to rights against forced demolition and resettlement

PD 442 as amended Labor Code of the Philippines

Wage Order ARMM 15 Rules Implementing Wage Order No. ARMM 15

PD 260 Declaring (various places) as National Shrines, Monuments, and/or Landmarks, defining the implementing agencies and providing funds therefore (1975)

PD 1505 Amending Presidential Decree No. 260, as amended, by Prohibiting the Unauthorized Modification, Alteration, Repair and Destruction of Original Features of all National Shrines, Monuments, Landmarks and Others Important Historic Edifices (1978)

RA 7192 Women in Development and Nation Building Act of 1992

RA 9710 Magna Carta of Women

MMAA 280 ARMM Gender and Development (GAD) Code

C. Other Related Regulations

RA 7160 Local Government Code of the Philippines



PD 856 Sanitation Code of the Philippines

RA 9054 ARMM Law of 20012

World Bank

OP/BP 4.01 Environmental Assessment

OP/BP 4.12 Involuntary Resettlement

OP/BP 4.04 Natural Habitats

OP/BP 4.36 Forests

OP/BP 4.10 Indigenous People

OP/BP 4.11 Physical and Cultural Resources

OP 4.09 Pest Management

JICA

JICA Guidelines for Environmental and Social Considerations (April 2010), as confirmed with Department of Risk Analysis and Environmental Assessment, JICA

2.1.2 The overall guiding principles of the social safeguard policies are:

No person in the autonomous region shall be subjected to any form of discrimination on account of creed, religion, ethnic origin, parentage or sex.

Development projects should fully respect the dignity, human rights, economies, and cultures of indigenous peoples.

Involuntary resettlement should be avoided where feasible; o Where population displacement is unavoidable, it should be minimized by

exploring all viable options; o People unavoidably displaced should be provided just compensation and

assisted so that their economic and social future would be as favorable as it would have been in the absence of the project; and

o People affected should be fully informed and consulted, and agree on resettlement and compensation options.

Grievance redress mechanisms must be available.

Promotion and protection of the health of the people is a fundamental concern.

Women and men should have equal access to all government and private sector programs granting agricultural credit, loans and nonmaterial resources and shall enjoy equal treatment in agrarian reform and land resettlement programs; and their equal rights to the use and management of land, water and other natural resources should be promoted.

It is unlawful for any person to modify, alter, repair or destroy the original features of any national shrine, monument, landmark and other important historic edifices declared and classified by the National Historical Institute as such without the prior written permission from the Chairperson of said Institute.

2.1.3 The overall guiding principles of the environmental policies, regulations and safeguard

policies are to:

Ensure sustainable development through a rational balance between socio-economic development and environmental protection for the benefit of present and future generations.

2 The ARMM Law of 2001 will be replaced by the Bangsamoro Basic Law after ratification in a plebiscite. Laws

and policies promulgated by the ARMM Regional Assembly, titled Muslim Mindanao Autonomy Act (MMMA)

may be repealed/amended/replaced when the Bangsamoro Government has been established.



Conform to environmental protection regulations and requirements.

Counteract causes of biodiversity loss.

Ensure conversion of natural habitat triggers a comprehensive environmental assessment process commensurate with the screened ecological impacts.

Promote management, conservation, and sustainable development of forest ecosystems.

Promote and support safe, effective, and environmentally sound pest management. 2.2 Existing institutional and governance structures 2.2.1 Table I-3 lists the major institutional mechanisms/structures for the implementation of the

above-mentioned environmental and social policies. Table I-3. Implementation structures of environmental and social policies

Institutions/ Structures Tasks related to HARVEST

ARMM Regional Government (RA 9054 or ARMM Law) This will be replaced by the Bangsamoro Transition Authority upon ratification of the Bangsamoro Basic Law and by the Bangsamoro Government after election of its officials

Adopt and implement a comprehensive urban land reform and land and water use program, to ensure the conservation, protection and just utilization of lands and waters within its jurisdiction.

Provide training programs, create livelihood and job opportunities, allocate equitable preferential rights to its inhabitants, and adopt laws that will safeguard the rights of workers.

Recognize, promote, and protect the rights and welfare of farmers, farm-workers, fisherfolk, and fish-workers, as well as cooperatives and associations of farmers and fish-workers.

Uphold and protect the fundamental rights of women and children including the right of women to engage in lawful employment. Women and children, especially orphans of tender age, shall be protected from exploitation, abuse or discrimination.

Promote the preferential use of local labor and locally produced goods and materials by adopting measures to increase their competitiveness.

Recognize, respect, protect, preserve, revive, develop, promote, and enhance the culture, customs, traditions, beliefs, and practices of the tri-people of the autonomous region.

Regional Economic and Development Planning Board (RA 9054)

Serve as the planning, monitoring, and coordinating agency for all development plans, projects, and programs intended for the autonomous region.

Local Development Council (LDC) at the barangay, municipal/city and provincial levels Secretariat of an LDC is the corresponding provincial/ municipal/city planning and development office (RA 7160 or the Local Government Code of 1991)

Assist the corresponding Sanggunian (legislative body at the local government level) in setting the direction of economic and social development, and coordinating development efforts within its territorial jurisdiction.

Integrate and coordinate all plans and studies undertaken by the local government unit's various functional groups or agencies.

Monitor and evaluate the implementation of the different development programs, projects and activities in the local government unit concerned in accordance with the approved development plan.

Provincial Local Chief Executive (RA 7160)

Adopt adequate measures to safeguard and conserve land, mineral, marine, forest and other resources of the province, in coordination with the mayors of component cities and municipalities.

Municipal/City Local Chief Executive (LCE) (RA 7160)

Adopt adequate measures to safeguard and conserve land, mineral, marine, forest, and other resources of the municipality.

Exclusive authority to grant fishery privileges in the municipal




waters and impose rentals, fees or charges; and issue licenses for the operation of fishing vessels of three (3) tons or less based on the rules and regulations promulgated by the sangguniang bayan.

Sangguniang bayan/ panlunsod/panlalawigan (RA 7160)

Issue ordinances for the protection of the environment and imposition of appropriate penalties for acts which endanger the environment, such as dynamite fishing and other forms of destructive fishing, illegal logging and smuggling of logs, smuggling of natural resources products and of endangered species of flora and fauna, slash and burn farming, and such other activities which result in pollution, acceleration of eutrophication of rivers and lakes, or of ecological imbalance.

Department of Environment and Natural Resources

Performs the services related to: (i) Land management (including handling of conflicts concerning public lands after failed mediation attempts by the Lupong Tagapamayapa); (ii) Biodiversity management; (iii) Ecosystems research and development; (iv) Environmental management; (v) Forest management; and (vi)Mines and geo-sciences.

National Housing Authority (RA 7279 or the Urban Development and Housing Act)

In coordination with local government units, provide: (i) resettlement; (ii) emergency housing assistance for calamity victims; (iii) settlements upgrading; (iv) sites and services development; (v) core housing; and (vi) other housing assistance for informal settlers‟ communities (ISFs) residing along danger areas.

Office of Southern Cultural Communities (OSCC) for ARMM provinces, except Basilan (Executive Order 462, 1991)

Formulate, coordinate, implement, and monitor policies, plans, programs and projects affecting the southern cultural communities within ARMM.

Coordinate the enforcement of policies and laws protecting the rights of the southern cultural communities to their ancestral lands, including the applications of customary laws governing property rights and relations, in determining the ownership and extent of ancestral lands, subject to procedures and standards established by the legislature or any other duly constituted authority.

Provide legal and technical services for the survey, adjudication, titling and development of tribal ancestral lands as well as settlements proclaimed by the government for the southern cultural communities within the ARMM.

National Commission on Indigenous People (NCIP) for Basilan (RA 8271 or the Indigenous People‟s Rights Act

Formulate and implement policies, plans and programs to recognize, protect and promote the rights of ICCs/ IPs.

Delineate ancestral domain and disposition of Certificate of Ancestral Domain Titles (CADTs).

Department of Agriculture and Bureau of Fisheries and Aquatic Resources (BFAR) DA AO1, s 2006

Provide capacity development for farmers in climate-smart agriculture through field schools

Provide tools, information and training related to integrated pest management

Formulate and implement a Fishery Research and Development Program, such as, but not limited to, sea farming ranching, tropical/ornamental fish and seaweed culture, aimed at increasing resources productivity and ensuring sustainability of the region‟s fisheries and aquatic resources.

Coordinate with LGUs and other concerned agencies for the establishment of productivity enhancing and market development programs in fishing communities.

Enforce all fishery laws, rules and regulations and settle conflicts or resource use and allocation in coordination with the LGU,




RFARMC, IFARMC and M/CFARMC.

Assist the LGUs in developing their technical capability in the development, management, conservation, and protection of the fishery/aquatic resources.

Issue license for the operation of commercial fishing vessels and authorize the movement of trade of fishery/aquatic products and collect fees prescribed by the law and regulations.

Perform such other related functions which shall promote the development, management, protection and conservation of fisheries and aquatic resources.

Municipal Fisheries and Aquatic Resource Management Council (RA 8550 or the Philippine Fisheries Code)

Assist in the preparation of the Municipal Fishery Development Plan and submit such plan to the Municipal Development Council; (ii) recommend the enactment of municipal fishery ordinances to the sangguniang bayan/sangguniang panlungsod through its Committee on Fisheries; (iii) assist in the enforcement of fishery laws, rules and regulations in municipal waters; (iv) advise the sangguniang bayan/panlungsod on fishery matters through its Committee on Fisheries, if such has been organized.

Department of Agrarian Reform Related structures are:

Provincial Agrarian Reform Committee (PARCOM)

Provincial Agrarian Reform Adjudicator (PARAD)

Barangay Agrarian Reform Committee (BARC)

Issue Certificates of Land Ownership Awards (CLOAs) to qualified farmers for lands covered by the land acquisition and distribution component of the agrarian reform program and leasehold contracts to farmers in areas not covered by agrarian reform.

Provide support services to agrarian reform beneficiaries in coordination with other government agencies.

Mediate/adjudicate conflicts between tenants and landowners, and between and among agrarian reform beneficiaries.



II. ENVIRONMENTAL AND SOCIAL ASSESSMENT (ESA) 1. ESA objectives

1.1 This Environmental and Social Assessment of the Harnessing Agribusiness

Opportunities through Robust and Vibrant Entrepreneurship Supportive of Peaceful Transformation (HARVEST) aims at assessing the risks, issues and potential impacts (both positive and negative) of the envisaged financing facility and offering recommendations to avoid and mitigate adverse impacts particularly on the poor and most vulnerable sectors and to enhance inclusion and ownership of the proposed development interventions. The assessment provides an opportunity to identify potential environmental and social issues at an early stage allowing appropriate design of safeguards instruments to be made. The results shall be used as inputs to the proposed environmental and social management framework and safeguards instruments. The framework ensures that identified environmental and social issues and risks are considered in the individual projects to be funded by the facility.

1.2 The social component of the assessment specifically looks into the risks and potential impacts of the proposed project especially in the areas of involuntary resettlement and indigenouspeoples. The environmental component, on the other hand, seeks to identify the risks, issues and potential impacts particularly related to key environmental aspects of agribusiness operations such as pest management, waste and pollution control, forest and habitats, marine and coastal ecosystems, etc.

2. ESA methods and scope of work 2.1 This ESA report is a consolidation of the results of the HARVEST safeguards scoping

mission held in August 2014 and ESA field data gathering held in January 2015. In both field visits, qualitative research method with a mixture of four data collection methods was employed Specifically, the following activities were undertaken:

2.1.1 Review of literature and secondary data to: (i) provide a description of the typologies,

drivers and impact of conflict and the affected communities in the Bangsamoro areas; (ii) inventory current agribusiness enterprises and large ventures in ARMM; (iii) review land-related issues with specific focus on land tenure arrangements, ancestral domain claims, and land reform status in the Bangsamoro area; and (iv) characterize the biophysical profile of the region;

2.1.2 Key informant interviews with officials of government line agencies in ARMM (i.e.,

Department of Agrarian Reform, Department of Environment and Natural Resources, Department of Trade and Industry, Cooperative Development Authority, Department of Agriculture and Fisheries, Regional Commission on the Bangsamoro Women, Office of Southern Cultural Communities, and National Commission on Indigenous People);

2.1.3 Focus group discussions (FGDs) with: (i) indigenous people, farmers‟ cooperatives and

associations, academe, non-governmental organizations and local government officials in the mainland and island provinces; and (ii) Mindanao Coalition of Development NGO Networks (MINCODE), MASS-SPECC, and Federation of Co-operatives in Mindanao;

2.1.4 Field visit to three agribusiness companies during the safeguard scoping mission, i.e.,

La Frutera, Inc. and Agumil, Inc. in Buluan, Maguindanao; and Matling Corp. in



Malabang, Lanao del Sur, Unifrutti Corp. in Bukidnon; and interviews with former and current contract growers of Dole South Cotabato, Stanfilco in General Santos City and Pioneer Hi-Bred Phils. The visited agribusiness companies represent medium and large-scale enterprises working under various tenurial arrangements (nucleus plantation, contract-growing, cooperatives-managed, etc.) across the ARMM provinces. Interviews with their senior managers and key personnel were undertaken during the visits to gain insights on the unique challenges (e.g. land, security, support facilities and infrastructures, availability of skilled personnel, local, regional and national government regulatory practices, etc.) that they face in working in conflict areas pertinent to the location where their firm is situated and how they were able to successfully address these challenges. A review of the firms‟ environmental and social management practices was also an important agenda of the field visit.

2.1.5 Visit to Permex Producer and Exporter Corporation in Zamboanga City, a producer and

exporter of canned sardines and tuna products, and with workers coming from the island provinces among others. No company was visited in the island provinces due to security concern; and

2.1.6 A review of the safeguards policies, procedures, practices and capacity of the Land

Bank of the Philippines.



III. ENVIRONMENTAL AND SOCIAL CONTEXT OF HARVEST: BASELINE SETTING

1. Geographic or Physical Context 1.1 The proposed Bangsamoro region is located in the southwestern part of the Philippines

with the proposed core territory composed of the following:

Autonomous Region in Muslim Mindanao (ARMM) consisting of five provinces and one city;

The municipalities of Baloi, Munai, Nunungan, Pantar, Tagoloan, and Tangkal in the province of Lanao del Norte;

The thirty nine (39) barangays in the municipalities of Kabacan, Carmen, Aleosan, Pigkawayan, Pikit, and Midsayap in the province of North Cotabato who voted for inclusion in the ARMM in 2001 plebiscite;

The cities of Lamitan and Isabela in the province of Basilan; and

Other contiguous areas that may opt to be included in the Bangsamoro region.

A map of the proposed Bangsomoro Territory is provided in Figure I-2. 1.2 The region can be grouped into the mainland and the island provinces. The mainland

provinces are located in the central parts of Mindanao and consist of the provinces of Maguindanao, Lanao del Sur, portions of Lanao del Norte and North Cotabato and the City of Marawi. The island provinces on the other hand are composed of the provinces of Sulu, Tawi-Tawi and Basilan including the cities of Lamitan and Isabela that extend between the southwestern tip of the Zamboanga peninsula to north of Borneo3.

1.3 The total land area of the region is estimated to be 1,488,353 hectares with Maguindanao and Lanao del Sur having the biggest land areas. ARMM constitutes the largest area of the Bangsamoro at 87% of the total area of the region. Each of the island provinces has a land area of over 100,000 hectares. There are four urban areas in the Bangsamoro region consisting of the cities of Marawi in Lanao del Sur, Lamitan and Isabela in Basilan, and Cotabato City in Maguindanao. The population of these urban areas account for 18% of the Bangsamoro region with an average density of 1,070 per square kilometer5.

Table III-1. Land area of the proposed region disaggregated by province

Basilan 132,723

Lanao del Sur 387,289

Maguindanao 504,760

Sulu 160,040

Tawi-Tawi 108,740

Total ARMM 1,293,552

6 municipalities of Lanao del Norte

108,048

39 barangays in North Cotabato

45,780*

Cities of Lamitan and Isabela 40,973

*estimated using proportion of barangays to the total

3 Environmental and Social Safeguards Scoping Report for the Bangsomoro Fund Facility, draft 2014. Prepared by

joint World Bank-JICA Environmental and Social Safeguards Scoping Team.



1.4 The topography of the mainland provinces varies (Figure III-1). Lanao del Sur has 40%

plain and 60% sloping areas with the Bukidnon-Lanao highland area, highland basins, undulating hills and volcanoes. Lanao del Sur has many water bodies; the biggest rivers are: Masiu River, Taraka River, Rugnan River, Ramain River and Lalabuan River. Maguindanao has 45% plain and 55% sloping areas with mountains in the southwest. The southwest mountain cluster consists of the Binica and Blit Mountains. The biggest and longest river is the Rio Grande de Mindanao and flows through Liguasan Marsh before it flows into the Moro Gulf. The river meanders and during the rainy season develops an extensive delta. Several smaller streams and creeks are perennial, while the rest are seasonal4.

Mainland Provinces Island Provinces

Source: http://www.rms-gs.de/phileng/mape.html

Figure III-1. Topography in the Proposed Bangsamoro Area

1.5 The island provinces have a mixture of sloping and plain areas. Basilan is an island

with several islets bounded by the Basilan Strait in the north (about 27 km to the Mindanao mainland at its narrowest point), Moro Gulf in the east and Sulu Sea in the west. The topography varies from 42% plain (nearly level and undulating to rolling) to 58% rolling. The Sulu archipelago has more plain areas than Basilan: 65% plain (nearly level to undulating to rolling) and 35% rolling. A number of mountain ranges traverse the mid-section of Jolo Island from east to west. Other islands are also hilly (Siasi Island), while others are coral formation with low, swampy, flat and forested areas. Many islands are volcanic in origin4.

2. The Natural Environment Context 2.1 Geology 2.1.1 Mindanao, the largest island in the southern Philippine archipelago, is a composite of at

least two terranes; one with Eurasian affinity (western Mindanao) and the other belonging to the Philippine Mobile Belt (eastern Mindanao), of Philippine Sea plate affinity. The island is surrounded by three subduction zones that have been installed only in the past 4 million years. Prior to this, the two terranes were separated by an

4 Regional Physical Framework Plan: 2000-2030. Regional Economic and Development Planning Board. ARMM.

2005.

http://www.rms-gs.de/phileng/mape.html



ocean that disappeared continuously by subduction of its two edges beneath western and eastern Mindanao. The suturing of the two terrains occurred at ca. 5 Million years. Following this major structural reorganization, abrupt changes are recorded in the old magmatism of the island.5 The geological map of the Philippines indicates Quaternary sediments and Tertiary sediments and volcanic formations in the region.

2.1.2 Ancient magmatic arcs in the Mobile Belt are characterized by thick volcanic flows with pyroclastic and sedimentary rocks and intrusions. The sedimentary Cotabato basin is located between arcs6. Several active and inactive volcanoes are found within or close to the Bangsamoro area. Data from the Department of Science and Technology (DOST) identified some of the active volcanoes as Mount Makaturing and Mount Ragang in Lanao del Sur and Mount Bud Dajo in Jolo (Figure III-2). There are also several volcanic formations classified as potentially active (morphologically young volcanoes but with no historical record of eruption) and inactive volcanoes within the proposed Bangsamoro region.

Source: http://www.maps.nfo.ph/philippines-distribution-of-volcanoes/distribution-of-volvanos-2008/ (Red markers showing volcanoes classified as active, yellow as potentially active, and green as inactive volvanoes)

Figure III-2. Volcanoes in the Philippines

2.1.3 Many active faults are present in the Philippines, including the Bangsamoro area (Figure III-3). The Mindanao fault line traverses the region with northwest-southeast orientation. Two major fault zones are also present in the region – the Sulu Trench and the Cotabato Trench considered to have moderate to high seismicity based on the historical catalog of earthquakes by the Philippine Institute of Volcanology and Seismology ((PHILVOLCS). The recent earthquake in 2002 in Southern Mindanao is considered to have originated from the Cotabato Trench. There are also some areas in the Bangsamoro region that are susceptible to earthquake triggered landslide.

5 Sajona et al. 1994. Tectonophysics 237:47-72.

http://www.sciencedirect.com/science/article/pii/0040195194901589 6 http://kalibo.tukcedo.nl/geol_minerals.pdf

http://www.maps.nfo.ph/philippines-distribution-of-volcanoes/distribution-of-volvanos-2008/

http://kalibo.tukcedo.nl/geol_minerals.pdf



Source: http://www.maps.nfo.ph/active-faults-and-liquefaction-susceptibility-map/

Figure III-3. Active Faults and Trenches in the Philippines 2.2 Soils and minerals

2.2.1 The soil types present in the Bangsamoro area are presented in Table III-2. Table III-2. Soil Types in ARMM

Province Soil Location

Basilan Alfisols, Inceptisols, Utisols

Magindanao Mountain soil, hydrosol, faraun soil, timaga clay loam, parang clay loam, longkon sandy, banga sandy loam, silty clay loam

Sandy and clay loam in southeastern and western municipalities. Silty clay, sandy and clay loam in northeastern and western municipalities

Lanao del Sur

Mountain soil, adtuyan clay loam, sinidayan silt loam, sandy, La Cartellana complex

Clay loam in Ramain, Bubong, Buadi Puso, Mulondo, Taraka, Tamparan, Poona Bayabao, Lumba Bayabo, Maguing. Adtuyan clay loam in Marawi City, municipalities of Saguiaran, Piagapo, Tugaya, Wao, Balindong, Bacolod Grande

Sulu Alfisols, Inceptisols, Utisols

Tawi-Tawi Alfisols, Inceptisols, Utisols Bongoa igneous rock of volcanic origin; smaller islands limestone

Source: Regional Physical Framework Plan: 2000-2030. Regional Economic and Development Planning Board. ARMM. 2005.

2.2.2 The definition of the Philippine soil orders is based on FAO and associated USDA

(United States Department of Agriculture) classification. The soils are then grouped according to functional criteria:

http://www.maps.nfo.ph/active-faults-and-liquefaction-susceptibility-map/



Soils good for agriculture: o Cambisols and Luvisols o Fluvisols, Gleysols and Vertisols

Soils problematic for agriculture, which means that they require careful management and adaptation practices: o Acrisols and Arenosols o Andosols and Nitosols

2.2.3 ARMM has many natural resources, including clay for making bricks, pottery and

ceramics, limestone for brassware making and other mineral potential resources (Error! eference source not found. III-3).

Table III-3. Reported Mineral Deposits in ARMM

Province Location Metallic Non-Metallic

Maguindanao Buluan Copper, Manganese, Gold, Silver, Iron -

Ampatuan Iron, Copper Silver, Lead Sand & Gravel

Dinaig Gold, Silver Guano, Clay

Parang Gold, Copper, Silver, Nickel

Upi Gold, Iron, Copper, Zinc Limestone

Sultan Kudarat Sand, Gravel, Limestone

Datu Paglas Sand & Gravel

Sulu Jolo Sand & Gravel

Patikul Sand & Gravel

Tawi-Tawi Maraning Copper, Chromite

Languyan Copper, Chromite


2.2.4 The generalised soil order map using the FAO classification is shown in Figure III-4. In ARMM, soils may be problematic for agriculture based on elevation/slope, low moisture or low growing degree days. The classification of suitability for agriculture is presented in Table III-4 and Figure III-5.

2.2.5 Earthquakes have the potential to cause soil liquefaction in areas which were known to have high potential to liquefaction - former river channels, abandoned meanders, wetlands, and ponds. These areas are characterized by the presence of loose saturated sandy deposits, which are susceptible to liquefaction. Liquefaction can cause extensive damage to residential houses and other infrastructures through lateral spreading, ground subsidence, and differential settlements. The areas susceptible to liquefaction are presented in Source:DOST/PHIVOLCS Liquuefaction Susceptability Map of the Philippines, http://www.maps.nfo.ph/wp-content/uploads/2011/02/Liquefaction-Susceptibility-Map-of-the-Philippines.gif

2.2.6 Figure III-6. Data from the DOST‟s PHIVOLCS suggest that a few small localized areas in ARMM particularly in some portions of Maguindanao, North Cotabato, and Sultan Kudarat may be susceptible to liquefaction.

Table III-4. Suitability of Soils for Agriculture in ARMM

Province Suitable for Agriculture

Very Suitable for Agriculture

Careful Management

Very Careful Management

Basilan 0 0 1,040.0366 0

Lanao del 519.7599 0 3,295.7625 38.5367



Sur

Maguindanao 3,048.959 0 1,038.1437 544.1955

Sulu 126.752 0 586.274 0

Tawi-Tawi 0 0 406.6048 24.3105

Source: http://hdn.org.ph/wp-content/uploads/DP_14_MO.pdf

Figure III-4. Soils Order

http://hdn.org.ph/wp-content/uploads/DP_14_MO.pdf



Source: http://hdn.org.ph/wp-content/uploads/DP_14_MO.pdf

Figure III-5. Suitability of Soils for Agriculture

Source:DOST/PHIVOLCS Liquuefaction Susceptability Map of the Philippines, http://www.maps.nfo.ph/wp-content/uploads/2011/02/Liquefaction-Susceptibility-Map-of-the-Philippines.gif Figure III-6. Liquefaction Susceptibility Map

2.3 Climate 2.3.1 The ARMM area is generally characterized by moderate and even distribution of rainfall

throughout the year, although there is a dry and wet season. Typhoons generally do not occur in the region. The Bangsamoro area falls within Climate Type II and IV of the Modified Coronas Climate Classification System (

2.3.2 Table III-5). The characteristics of the two Climate Types are: 2.3.2.1 Type III. Seasons are not very pronounced: relatively dry from November to April and

wet during the rest of the year. Regions of this type are western parts of Cagayan, Isabela, and Nueva Viscaya; eastern parts of Mountain Province, southern Luzon, Masbate, Romblon, Panay, eastern Negros, central and southern Cebu; part of northern Mindanao; and most of eastern Palawan.

2.3.2.2 Type IV. Rainfall more or less evenly distributed throughout the year. Affects Batanes

province, northeastern Luzon, southwestern part of Camarines Norte, western parts of Camarines Sur and Albay, Bondoc Peninsula, eastern Mindoro, Marinduque, western Leyte, northern Cebu, Bohol, and most of central, eastern, and southern Mindanao.

Table III-5. Climate in the Bangsamoro Area

Province Climate Average Remarks Annual Rain

http://hdn.org.ph/wp-content/uploads/DP_14_MO.pdf

http://www.maps.nfo.ph/wp-content/uploads/2011/02/Liquefaction-Susceptibility-Map-of-the-Philippines.gif

http://www.maps.nfo.ph/wp-content/uploads/2011/02/Liquefaction-Susceptibility-Map-of-the-Philippines.gif



Type Temp

Basilan III >70 mm avg monthly, Prevalent wind SE 3-4 knots

Lanao del Sur

IV 21 Dry season Jan-Mar; Max rain May-Oct

115 mm avg monthly

Maguindanao IV 25.9-26.5 Hottest March-June; Coldest months Nov-Jan

>230 mm avg monthly

Sulu III 18-30 Coldest month Feb >70 mm avg monthly, Prevalent wind SE 3-4 knots

Tawi-Tawi III 23-24 Max rainfall May-Aug >70 mm avg monthly, Prevalent wind SE 3-4 knots

Marawi City IV/III


2.3.2.3 The projected seasonal changes in the climate of the region by PAGASA for 2020 and

2050 under medium-range emission scenario indicate that the ARMM region will have an average increase of 1.1 ºC in surface temperature in 2020 and further 2.1 ºC by 2050. In terms of precipitation, the region will receive more rainfall in the months of December to February and relatively drier in most parts of the year. Compared to other eastern regions in Mindanao, the ARMM is expected to experience fewer extreme events particularly number of days with precipitation over 300 mm. Other extreme events such as number of dry days and temperature over 35 ºC reflect the average changes in the Mindanao island.

2.4 Air Quality 2.4.1 There are no national air quality monitoring stations established in the ARMM region

based on the 2010 National Air Quality Status report.7 The ambient air quality conditions of the region therefore can not be ascertained however it is expected that the concentration of air pollutants would be mostly in urban or urbanizing centers. With the expected increase in the level of agribusiness activities such as plantations and processing plants, emissions are likely to increase as well particularly from emission stacks, vehicles, open area waste burning, and even forest fires. There were also indications of poor indoor air quality conditions in rural areas including the Bangsamoro region. Use of fuel wood for cooking is indicated as a potential environmental health risk in the region.

2.5 Water 2.5.1 An important geographic feature of the Bangsamoro region is the river basins that

encompass the area. River basins are composed of watersheds that collect and provide water to streams and rivers eventually draining to receiving bodies like lakes, marshes or the sea. The mainland provinces of the Bangsamoro region are located mostly within the Mindanao River Basin with some portions in the Agus River Basin, two of the major rivers basins in the country that cover four regions in Central and Southern Mindanao

7 The 2010-2011 National Air Quality Status Report is prepared and published by the Department of Environment

and Natural Resources Environmental Management Bureau (EMB). The monitoring stations nearest to

ARMM/Bangsamoro area is in Isulan, Sultan Kudarat and Cotabato City. The report can be accessed at

http://emb.gov.ph/portal/air/Home.aspx

http://emb.gov.ph/portal/air/Home.aspx



including the Bangsamoro region. The river basins are the catchment areas of several river systems in region that include the Ambal-Simuay River System originating from Lanao del Sur and the Buluan-Malungon River, originating from the far southeastern portion of Mindanao. Figure III-7 shows the water resources within the Mindanao River basin where most of the proposed Bangsamoro region is located.

Source: Woodfields Consultants, Mindanao River Basin Master Plan

Figure III-7. Water Resources Map

2.5.2 The River baisn master Plan for the Mindanao River Basin indicated the characteristics

of the available permeable layers or water-bearing formations in the region. These include the moderately thick cyclic layers of sand, silt and minor gravel deposits. The primary aquifer system of the tuffaceous rock units may indicate lesser degree of permeability due to clay and silt interbeds in the entire sequence. The degree of



permeability to transmit water into pumping may be limited due to the tight conglomeration of the clastics. There have been investigations on the alluvium in the southern section of the basin with reported thickness of more than 100 meters. In coastal areas, saline intrusion was observed and therefore needing careful abstraction of groundwater. The potential groundwater availability in the river basin was estimated at 4,956 MCM/year representing about two-third of the groundwater potential of Mindanao or around a third of the country. Groundwater in the region has varying degree of availability across the mainland areas of the proposed Bangsamoro region. Except for few areas, for the most part of the region, groundwater extraction is at varying depths. The region‟s groundwater resources in Mindanao are shown in Figure III-8.

Source: Woodfields Consultants, Mindanao River Basin Master Plan

Figure III-8. Groundwater Availability Map of Mindanao River Basin including the proposed Bangsamoro Region



2.5.3 The mainland provinces of the Bangsamoro region are located mostly within the Mindanao

River Basin and the Agus River Basin, two of the major rivers basins in Central and Southern Mindanao. The river basins are composed of watersheds that serves as the catchment areas of several river systems in region that include the Ambal-Simuay River System originating from Lanao del Sur and the Buluan-Malungon River, originating from the far southeastern portion of Mindanao (Figure III-9 and Table III-6).

Source: http://mpmc.minda.gov.ph:32906/SitePages/KP_Maps_Watershed.aspx

Figure III-9. Watersheds in ARMM Mainland Provinces

Table III-6. Watershed Areas in ARMM

Watershed Area Area (ha)

Location Potential/Use

Lake Lanao Watershed 180,000 Marawi City & Lanao del Sur

Source of power generation of Maria Christina Hydroelectric Plants

Maganoy-Kabulnan Watershed

4,726 Maganoy, Mag. Source of irrigation system for KIDP

South Upi Watershed Forest Reserve

1,894 Upu, Mag.

Malitubog-Maridagao Watershed

57,000 Maguidanao&Region XII Irrigation for Pagalungan & Pagagawan

Dimapatuy Watershed 3,765 D.O.S. Maguindanao Source of water system for Maguindanao & Region XII


2.5.4 Watershed forest reserves are designated to rehabilitate watersheds in the country as they

are the major sources of water for domestic use and for irrigation. As of 2009, there are 134 proclaimed watershed forest reserves covering an area of 1.56 million ha. The two largest are in ARMM:

Lake Lanao Watershed Reservation covering 180,460 ha in Marawi City, Lanao del Sur.

http://mpmc.minda.gov.ph:32906/SitePages/KP_Maps_Watershed.aspx



Kabulnan River Watershed Forest Reserve covering 116,452 ha spanning the provinces of Sultan Kudarat, Maguindanao and South Cotabato8.

2.5.5 Some of the watersheds have been proclaimed as protected areas: the Lake Lanao

Watershed Reservation with a total area of 180,460 hectares and the South Upi Watershed Forest Reserve with 1,894 hectares (Table III-7). There are also other proclaimed watershed reservations that are not included in the protected areas system such as the Kabulnan Watershed and the Dimapatoy Watershed in Maguidanao.

Table III-7. Watershed Forest Reserve in ARMM (2013)

Province Name of Reservation Area (ha) Proclamation Date

Lanao del Sur Lake Lanao Watershed Reservation 180,460 2/26/1992

Maguindanao South Upi Watershed Forest Reserve 1,894 2/20/1987

Source: http://forestry.denr.gov.ph/PFS2013.pdf

2.5.6 Even though there are abundant water sources in Mindanao, the percentage of population with access to water served is low, particularly in the ARMM region (Table III-III-8). The population, especially in ARMM, is heavily dependent on other water supply sources, such as: informal water providers; Level I or II water systems, hand pumps, community artesian wells; natural sources, springs, streams or harvested rain9.

Table III-8. Percentage of Population with Access to Water Served

Region Total (% served)

IX 35.05

X 36.14

XI 39.18

XII 20.3

ARMM 9.9

Nationwide Total 42.9 Source: http://hdn.org.ph/wp-content/uploads/DP_10_Naz.pdf

2.5.7 Water quality monitoring for nutrients, heavy metals and pesticide residues was done in

the course of preparing the Mindanao River Basin Master Plan in 2013. The results of the tests for nutrients and heavy metals showed that the water samples met the DENR standards while pesticide residues were not detected. Survey of literature also did not yield any reported notable incident of pollution events in bodies of water in the Bangsamoro region – whether eutrophication or consequent fish kill events.10

2.5.8 Another characteristic feature of the Bangsamoro region and associated with the Mindanao River Basin is the extensive wetlands such as marshes, swamps, lakes, and riparian areas.

2.6 Biodiversity

8 http://hdn.org.ph/wp-content/uploads/DP_10_Naz.pdf

9 http://hdn.org.ph/wp-content/uploads/DP_10_Naz.pdf

10 Environmental and Social Safeguards Scoping Report for the Bangsomoro Fund Facility, draft 2014. Prepared by


http://forestry.denr.gov.ph/PFS2013.pdf

http://hdn.org.ph/wp-content/uploads/DP_10_Naz.pdf





2.6.1 The Philippines is one of 18 megadiverse countries in the world, containing 2/3 of the earth‟s biodiversity and about 70-80% of the world‟s plant and animal species11. According to ECOGOV 2, the Philippines has more than 52,170 species, with about half endemic to the Philippines12.

2.6.2 The Philippines is also located within the coral triangle, at the center of the highest marine

diversity including coral reefs, seagrass beds, mangrove and beach forests, fisheries, invertebrates, seaweeds, marine mammals and many others. Marine and coastal species diversity include 468 scleractinian corals, 1,755 reef-associates fishes, 648 species of mollusks, 19 species of seagrass, and 820 species of algae11. The biodiversity status in the Bangsamoro region is considered similar to the rest of the country13.

A two stage process was implemented to determine Key Biodiversity Areas in the

Philippines. From this process, 128 terrestrial and freshwater KBAs were identified in 2006 and 123 marine KBAs were identified in 2009. A total of 228 KBAs resulted from the integration of the terrestrial, freshwater and marine KBAs. These KBAs represent the known habitat of 855 globally important species of plants, corals, mollusks, elasmobranchs, fishes, amphibians, reptiles, birds and mammals in the country14. The location of the KBAs is depicted in Figure III-10.Error! Reference source not found.Source:

ttp://threatenedtaxa.org/ZooPrintJournal/2012/August/o299506viii122788-2796.pdf

Figure III-10. Key Biodiversity Areas

2.6.3 These 128 terrestrial KBAs have been identified for 209 globally threatened and 419

endemic species of freshwater fishes, amphibians, reptiles, birds and mammals, and 62 congregatory bird species.

2.6.4 Ten of the total 128 identified biodiversity rich areas known as Key Biodiversity Areas (KBAs) are found in the Bangsamoro region and mostly classified as protected areas or watershed reservations (

2.6.5 Table III-I9).15 In the Bangsamoro region, forty-four species are identified as threatened including the Philippine eagle, Sulu hornbill, and hawksbill turtle. Threats to these species include land cover change, exploitation, and habitat destruction. Table III-I9. KBA and Candidate KBAs in ARMM

No. Name of KBA* Province Area (ha)

CR En Vu RR Conservation Measure*

Threats

108 Munai/Tambo Lanao del Norte/Lanao del Sur

69,836 1 1 4 1 IBA (PH096), CPA 132

Land conversion to agriculture

109 Lake Lanao Lanao del Sur 36,351 14 1 7 9 IBA (PH097), CPA 133

Illegal logging, exotic fish, overfishing, pollution (domestic, fertilizer)

110 Mt. Piagayungan

Lanao del Sur, North Cotabato. Maguindanao

154,340 1 2 7 IBA (PH098&99), CPA 135&136

Illegal logging, small scale mining, forest conversion to agriculture

11

Fourth National Report to the Convention on Biological Diversity. Republic of the Philippines. 2009.

www.cbd.int/doc/world/ph/ph-nr-04-en.pdf 12

http://pdf.usaid.gov/pdf_docs/PNADL681.pdf 13

Environmental and Social Safeguards Scoping Report for the Bangsomoro Fund Facility, draft 2014 14

http://threatenedtaxa.org/ZooPrintJournal/2012/August/o299506viii122788-2796.pdf 15

Undated. Priority Sites for Conservation in the Philippines: Key Biodiversity Areas. Conservation International

Philippines, Haribon Foundation, DENR accessed at

http://www.conservation.org/global/philippines/publications/Documents/KBA_Booklet.pdf on 14 August 2014

http://www.conservation.org/global/philippines/publications/Documents/KBA_Booklet.pdf



No. Name of KBA* Province Area (ha)

CR En Vu RR Conservation Measure*

Threats

113 Ligawasan Marsh

North Cotabato, Maguindanao, Sultan Kudarat

39,424 2 1 3 IBA (PH0102), CPA 144

Illegal logging, land conversion

114 Mt. Daguma Maguindanao, Sultan Kudarat

32,360 1 1 5 IBA (PH0103), CPA 145

Logging, human encroachment, land conversion, wildlife hunting

124 Basilan Natural Biotic Area

Basilan 4,497 1 3 18 77 IBA (PH0113), CPA 159, Basilan Natural Biotic Area (Proc #321)

Illegal logging, land conversion, human encroachment, collecting non-timber forest products, wildlife hunting

125 Mt. Dajo National Park

Sulu 3,304 3 3 12 IBA (PH0114), CPA 163&164

126 Tawi-Tawi Island

Tawi-Tawi 5,851 4 2 6 33 IBA (PH0115), CPA 165, AZE*

Illegal logging, land conversion, wildlife hunting

127 Simunul and Manuk Manukan Islands

Tawi-Tawi 19,402 2 1 6 IBA (PH0116), CPA 166

128 Sibutu and Tumindao Islands

Tawi-Tawi 116,763 1 2 4 16 IBA (PH0117), CPA 167

Candidate KBAs

C47

Pulangi River Bukidnon, Maguindanao, North Cotabato

131,002 Overlaps with CPA 137

C49 Olangui River Lanao del Norte, Lanao del Sur

4,674 Overlaps with CPA 131

C51 Cagayan de Sulu

Tawi-Tawi 7,550 Overlaps with CPA 170

*KBA Key Biodiversity Area; IBA Important Bird Area; CPA Conservation Priority Area; AZE Alliance for Zero Extinction; CR Critically Endangered; En Endangered; Vu Vulnerable; RR Restricted Range Source: http://www.conservation.org/global/philippines/publications/Documents/KBA_Booklet.pdf

2.6.6 Two of these sites, Lake Lanao and Tawi-Tawi Island, are home to species only occurring

at that site ( 2.6.7 Table III-II10).

Table III-II10: Threatened Species present globally at only one KBA

KBA Species IUCN Red List Category

Lake Lanao Cephalakompsus pachycheilus Mandibularca resinus Ospatulus truncatulus Puntius amarus Puntius baoulan Puntius clemensi Puntius disa Puntius flavifuscus Puntius herrei Puntius katolo Puntius lanaoensis Puntius manalak Puntius tras Spratellicypris palata Ospatulus palaemophagus Puntius lindog Puntius sirang Puntius tumba

CR CR CR CR CR CR CR CR CR CR CR CR CR CR EN VU VU VU

http://www.conservation.org/global/philippines/publications/Documents/KBA_Booklet.pdf



Tawi-Tawi Island Anthracoceros montani Gallicolumba menagei Phapitreron cinereiceps

CR CR EN

Source: http://threatenedtaxa.org/ZooPrintJournal/2012/August/o299506viii122788-2796.pdf

2.6.8 However, a proper baseline of biodiversity resources in the Bangsamoro area is not

available16. 2.7 Terrestrial Biota/Habitat

2.7.1 The ARMM area contains several Conservation Priority Areas ( 2.7.2 Table III- 11).

Table III- 11. Conservation Priority Areas in ARMM

Conservation Priority Area

Priority Level Estimated Area (ha)

Province

Ligawasan Marsh Extremely High critical

213,982.1 North Cotabato, Maguindanao, South Cotabato, Sultan Kudurat

Mt Daguma Very High 115,606.44 Maguindanao, South Cotabato, Sultan Kudurat

Basilan Extremely High urgent

19,094.16 Basilan

Sulu Extremely High critical

132,181.88 Sulu, Tawi-Tawi

Mt Dajo National Park Very High 19,077.60 Sulu

Tawi-Tawi Island Extremely High critical

86,111.06 Tawi-Tawi

Manuk-manka Islands Insufficient data 5,832.71 Tawi-Tawi

Sibutu and Tumindao Islands

Very High 12,755.25 Tawi-Tawi

Cagayan de Sulu Extremely High critical

7,569.18 Tawi-Tawi

Source: http://www.chm.ph/index.php?option=com_docman&Itemid=94

2.7.3 The ARMM area also contains two endemic bird areas (EBA): Mindanao and the nearby

Eastern Visayas (containing lowlands and the mountains of Mindanao) and the Sulu Archipelago (

2.7.4 Table III- 12). All the restricted-range species of these two EBAs are forest birds. Although some have been recorded from degraded or selectively logged or secondary forest, the long-term survival of all is likely to depend on proximity to primary habitat, i.e. forest17. Table III- 12: Restricted Range Bird Species in ARMM Endemic Bird Areas

IUCN Category* Mindanao and Eastern Visayas Sulu Archipelago

CR Sulu Bleeding-heart (Gallicolumba menagei) Sulu Racquet-tail (Prioniturus verticalis) Sulu Hornbill (Anthracoceros montani)

EN Tawitawi Brown-dove (Phapitreron cinereiceps)

VU Mindanao Bleeding-heart (Gallicolumba crinigera) Dark-eared Brown-dove (Phapitreron brunneiceps)

Grey Imperial-pigeon (Ducula pickeringii)

16

The Environment Chapter of the Bangsamoro Development Plan. Final Report on Coastal, Marine, and

Freshwater Biodiversity Sub-Theme. 17

http://www.birdlife.org/datazone/ebafactsheet.php?id=155

http://threatenedtaxa.org/ZooPrintJournal/2012/August/o299506viii122788-2796.pdf

http://www.chm.ph/index.php?option=com_docman&Itemid=94

http://www.birdlife.org/datazone/species/factsheet/22691005














IUCN Category* Mindanao and Eastern Visayas Sulu Archipelago

Giant Scops-owl (Otus gurneyi) Blue-capped Kingfisher (Actenoides hombroni) Mindanao Broadbill (Eurylaimus steerii) Visayan Broadbill (Eurylaimus samarensis) Azure-breasted Pitta (Pitta steerii) Celestial Monarch (Hypothymis coelestis) Little Slaty Flycatcher (Ficedula basilanica) Philippine Leafbird (Chloropsis flavipennis)

Celestial Monarch (Hypothymis coelestis)

NT Mindanao Lorikeet (Trichoglossus johnstoniae) Mindanao Racquet-tail (Prioniturus waterstradti) Mindanao Highland Scops-owl (Otus mirus) Philippine Spinetail (Mearnsia picina) Writhed Hornbill (Rhabdotorrhinus leucocephalus) McGregor's Cuckooshrike (Coracina mcgregori) Mountain Shrike (Lanius validirostris) Short-crested Monarch (Hypothymis helenae) White-fronted Tit (Parus semilarvatus) Zamboanga Bulbul (Ixos rufigularis) Yellow-breasted Tailorbird (Orthotomus samarensis) Apo Myna (Basilornis mirandus) Slaty-backed Jungle-flycatcher (Rhinomyias goodfellowi) Whiskered Flowerpecker (Dicaeum proprium) Flame-crowned Flowerpecker (Dicaeum anthonyi) Grey-hooded Sunbird (Aethopyga primigenia) Apo Sunbird (Aethopyga boltoni) Lina's Sunbird (Aethopyga linaraborae) Red-eared Parrotfinch (Erythroughra coloria)

Mantanani Scops-owl (Otus mantananensis) Philippine Spinetail (Mearnsia picina)

DD Brown-banded Rail (Lewinia mirifica) Whitehead's Swiftlet (Aerodramus whiteheadi)

LC Black-and-cinnamon Fantail (Rhipidura nigrocinnamomea) Yellowish Bulbul (Ixos everetti) Rufous-headed Tailorbird (Orthotomus heterolaemus) Black-headed Tailorbird (Orthotomus nigriceps) White-eared Tailorbird (Orthotomus cinereiceps) Long-tailed Bush-warbler (Bradypterus caudatus) Bagobo Babbler (Leonardina woodi) Striated Wren-babbler (Ptilocichla mindanensis) Rusty-crowned Babbler (Stachyris capitalis) Black-masked White-eye (Lophozosterops goodfellowi) Cinnamon Ibon (Hypocryptadius cinnamomeus) Cryptic Flycatcher (Ficedula crypta) Olive-capped Flowerpecker (Dicaeum nigrilore) Mountain Serin (Serinus estherae) White-cheeked Bullfinch (Pyrrhula leucogenis)

Yellowish Bulbul (Ixos everetti)

NR (Alcedo argentata) (Penelopides samarensis) (Penelopides affinis) (Stachyris plateni) (Micromacronus leytensis)

*CR Critically Endangered; EN Endangered; VU Vulnerable; NT Near Threatened; DD Data Deficient; LC Least Concern; NR Not Reported Source: http://www.birdlife.org/datazone/ebafactsheet.php?id=155

2.7.5 Forest ecosystems are critical to soil and water conservation and major ecological

services. Forest ecosystems in the Philippines directly support about 30% percent of the
























































http://www.birdlife.org/datazone/ebafactsheet.php?id=155



population, including some 12 to 15 million indigenous peoples. In addition, the cultures of the indigenous people revolve around their interactions with the natural environment18.

2.7.6 The Philippine forests consist of patches of primary (old growth) and secondary growth forests. The 2013 Report of the DENR-ARMM estimated that the forest area is over half the total land area in ARMM, most of it classified as “established timberland” (Table III-13)19.

2.7.7 The largest remaining forest patches in the Philippines are found in northern and southern Luzon (especially the Sierra Madre mountain range), Palawan, Mindanao, and Eastern Visayas. Of the total land area and the remaining forest cover, 12% are dipterocarp/ lowland rainforest and 3.5% mossy/montane/cloud forest. Only 0.4% are coastal and mangrove forest. There are also patches of beach forests, current data for which are still being generated. Mindanao has the largest remaining mangrove forest area in the country (112,745 ha, Table III-14)20.

2.7.8 The DENR-ARMM has limited manpower complement to monitor the forestland such that the ratio of forest ranger to area patrolled is 1:1,820 hectares.21 There are ten (10) protected areas in the region with specific legal declarations and totaling approximately 184,000 hectares. The biggest of these are the Lake Lanao Watershed Reservation with a total area of 180,460 hectares and the South Upi Watershed Forest Reserve with 1,894 hectares (Table III-7). There are also other proclaimed watershed reservations that are not included in the protected areas system such as the Kabulnan Watershed and the Dimapatoy Watershed in Maguidanao.

2.7.9 Threats to the forest ecosystem can be categorized into: habitat fragmentation (logging,

slash and burn farming, reforestation with exotic species), anthropogenic pressures (population growth, housing development, agriculture expansion, grazing, wildfire, pollution) and invasive alien species (plants, insects and pathogens) and other emerging issues (industrial development of mining and logging, poor management), including conflicting roles and mandates22. Table III-13. Status of Land Classification in ARMM (2013)

Total Area (ha)

Certified A&D (ha)

Total Forest

(ha)

Unclassified Forest Land

(ha)

Total Classified

Forest Land (ha)

Established Forest

Reserve (ha)

Established Timberland

(ha)

National Parks

GBRS/WA (ha)

Fish Pond (ha)

Basilan 132,723 85,574 47,149 5,953 41,196 18,397 18,153 2,597 2,094

Lanao del Sur

387,289 133,135 254,154 - 254,154 11,844 240,628 1,682 -

Maguin-danao

504,760 306,622 198,138 3,525 194,613 12,515 152,050 30,048 -

Sulu 160,040 47,687 112,353 66,284 46,069 - 44,898 213 958

Tawi- 108,740 55,383 53,357 24,864 28,493 - 28,108 - 385

18



http://forestry.denr.gov.ph/PFS2013.pdf 20



This was confirmed by DENR-ARMM FMS Director Mabaning during discussion on 19 August 2014 at the

DENR-ARMM office 22


www.cbd.int/doc/world/ph/ph-nr-04-en.pdf



Tawi

ARMM 1,293,552 628,401 665,151 100,626 564,525 42,756 483,837 34,540 3,392

Source: http://forestry.denr.gov.ph/PFS2013.pd

Table III-14. Forest Cover in ARMM (2013)

Land Type Province Total Forest (ha)

Closed Forest (ha)

Open Forest (ha)

Mangrove (ha)

Forest Cover Basilan 21,320 11,442 1,003 8,875

Lanao del Sur 150,151 80,245 69,442 464

Maguindanao 52,351 8,202 43,087 1,061

Sulu 30,839 - 757 30,083

Tawi-Tawi 47,233 - 32,142 15,091

ARMM 301,894 99,889 146,431 55,574

Forest Land Basilan 12,720 5,373 524 6,823

Lanao del Sur 136,599 77,055 59,372 172

Maguindanao 44,794 6,278 38,297 219

Sulu 21,680 - 752 20,928

Tawi-Tawi 33,348 - 21,996 11,352

ARMM 249,141 88,706 120,941 39,494

Alienable and Disposable Land

Basilan 8,600 6,069 479 2,052

Lanao del Sur 13,552 3,190 10,070 292

Maguindanao 7,557 1,924 4,790 842

Sulu 9,159 - 5 9,155

Tawi-Tawi 13,885 - 10,146 3,739

ARMM 52,753 11,183 25,490 16,080


2.7.10 An Integrated Forest Management Agreement is a production sharing contract wherein the

DENR grants to a qualified applicant the exclusive right to develop, manage, protect and utilize a specified area of forestland and forest resources therein for a period of 25 years, which may be renewed for another 25-year period, consistent with the principle of sustainable development.23 Ten Integrated Forest Management Agreements were in effect in ARMM in 2013 (Table III-15).

2.7.11 A Forest Land Grazing Management Agreement is a production sharing agreement to

develop, manage and utilize grazing lands.24 One Forest Land Grazing Agreement was in effect in ARMM in 2013 (Table III-15).

Table III-15. Forest Agreements in ARMM (2013)

Agreements Province No. Area (ha)

Integrated Forest Management Agreements Lanao del Sur 6 18,157

Maguindanao 4 24,907

Forest Land Grazing Management Agreements Maguindanao 1 1,120


2.8 Freshwater Biota/Habitat

2.8.1 Inland waters in the Philippines are home to more than 316 fish species, many are endemic (112) and threatened (76). In addition to fish, waterbirds, semi-aquatic species, plants and a majority of amphibians depend on the inland waters25.

23

http://forestry.denr.gov.ph/reqifma.htm 24

http://forestry.denr.gov.ph/primer.htm 25


www.cbd.int/doc/world/ph/ph-nr-04-en.pdf

http://forestry.denr.gov.ph/PFS2013.pd





2.8.2 The major inland freshwater resources in ARMM are listed in Table III-16. There has been

an extreme loss in quantity and quality of wetlands over the years. Direct causes of wetlands loss include: habitat loss and deterioration (conversion of wetlands, diversion of rivers); resource use and exploitation; pollution and climate change; introduction of exotic species and disease.26 The loss of wetlands results in a loss of biodiversity. Except for Ligawasan Marsh which was the subject of a study on an Integrated Ecosystem Management Framework (2013), there is limited data that deals specifically with biodiversity for the whole of Bangsamoro area.27

2.8.3 Lakes are important aquatic ecosystems in the Bangsamoro region. The largest of these are Lake Lanao and Lake Buluan with areas of 34,000 and 6,134 hectares respectively. These lakes are considered to be major lakes in the Philippines ranked as third and sixth largest in the country.

Table III-16. Major Inland Water Resources in ARMM

Inland Resource Area (ha) Location

Swamp Ligawasan Marsh 68,801 Maguindanao

Butelin Marsh >1 Datu Piang, Maguindanao

Lakes Lake Lanao 34,700 Lanao del Sur

Lake Dapo 1,000 Pualas, Lanao del Sur

Lake Buluan 6,500 Buluan, Manguindanao

Lake Darapanan 9 Sultan Kudarat, Maguindanao

Lake Balut 206 Sultan Mastura, Maguindanao

Seit Lake 206 Panamao, Sulu

Major Rivers Rio Grande de Mindanao Maguindanao

Agus River Lanao del Sur

Source: The Environment Chapter of the Bangsamoro Development Plan. Final Report on Coastal, Marine, and Freshwater Biodiversity Sub-Theme

2.8.4 Lake Lanao is one of 17 ancient lakes in the world28. The lake fauna includes many

species of fish and invertebrates which are endemic to the lake, including eighteen species of Cyprinidae29. Other fishes occurring in the lake include species of Silurid, Anabantid, Anguillid, Ophiocephalid, Centrarchid and Chanid, but many of these have been introduced. Many of the native fish species are under threat by the introduction of predatory marine species such as white goby.

2.8.5 Lake Lanao watershed does not have a good baseline data for biodiversity. However, a survey in two barangays for the preparation of an Integrated Development Plan reported 27 species of trees, shrubs and vines and 41 medicinal plant species.28

2.8.6 Six bird species have been observed in the Lake Lanao watershed, among them: Halikyon chloris (white collared kingfisher), Corvus enea (slender bird crow), and the Dubulens ibis coromandus (cattle egret). The lake supports large numbers of waterfowl, particularly Ardeidae, Anatidae and Rallidae, including over bitterns, egrets, purple heron, purple

26

DENR-PAWB. 2005. Philippines National Report on Wetlands. UNEP/GEF Project. 27

http://minda.gov.ph/resources/Publications/Mindanao_2020/m2020_full_doc_for_web.pdf

Unpublished. The Environment Chapter of the Bangsamoro Development Plan. Final Report on Coastal, Marine,

and Freshwater Biodiversity Sub-Theme. 28

http://wldb.ilec.or.jp/data/ilec/WLC13_Papers/S17/s17-14.pdf

http://minda.gov.ph/resources/Publications/Mindanao_2020/m2020_full_doc_for_web.pdf



swanhen, Eurasian coot, Gallinago spp and smaller numbers of water cock and common moorhen. Mammals occurring in the area include the wild pig and deer.29

2.8.7 Lake Lanao also provides hydroelectric power with combined installed capacity of 727 MW through the Agus Power Plant Complex. The Agus Power Plant Complex consists of six cascading power plants snaking from the mouth of Lake Lanao in Marawi City down to Maria Cristina Falls in Iligan City30. Altogether, the Agus grid provides about 60% of the total electricity needs of the people of Mindanao. Massive algal contamination was reported by the Mindanao State University, ultimately attributed to indiscriminate logging, extensive land use and farming31. Soil erosion, sewage and agricultural run-off have also contributed greatly to the deterioration of water quality in the lake. Several endemic fish species in the lake have already disappeared32.

2.8.8 Lake Buluan is the third largest lake in Mindanao with a total area of 6,314 ha. It is a shallow eutrophic lake, deteriorating by erosion from deforestation in the catchment area. Plains around the lake are used for agriculture cultivation, mainly rice but also corn. Water in upstream rivers and creeks are diverted for irrigation of rice fields33. Lake Buluan is a major source of livelihood to thousands of fishermen producing fish such as: Climbing gourami (Anabas testudineus), Snakehead murrel (Channa striata), Milkfish (Chanos chanos), Walking catfish (Clarias batrachus), Spotted barb (Puntius binotatus), Common carp (Cyprinus carpio), Sundari bele (Glossogobius giuris), Mozambique tilapia (Oreochromis mossambicus), and Gourami (Trichopodus pectoralis)34.

2.8.9 Ligawasan Marsh is the largest marsh with a total area of 220,000 hectares. It is a conglomeration of three marshes: Ligawasan, Libungan and Ebpanan. It spans the provinces of Sultan Kudarat and North Cotabato in Central Mindanao and Maguindanao in the Autonomous Region in Muslim Mindanao (ARMM). It is home to Maguindanaon families whose primary means of livelihood are fishing when water levels are high and agriculture when water levels are low. Ligawasan Marsh is an important bird area and is rich in biodiversity. About 30,000 hectares of the Marsh is a game refuge and bird sanctuary35.

2.8.10 Ligawasan Marsh supports a rich wildlife. In an inventory of wildlife and vegetation in 1999, a total of 218 species of flora and fauna were identified. It is known to be the home to the rare oriental darter (Anhinga melanogaster), purple swamp hen (Porphyrio porphyrio), the threatened Philippine hawk eagle, spotted imperial pigeon, and the rufous-lored kingfisher. It is believed to be the last home of the endangered Philippine crocodile (Crocodylus mindorensis)36.

29

http://rcse.edu.shiga-u.ac.jp/gov-pro/plan/2010list/10/philippine_lakes/lake_lanao_brief_27102010.pdf 30

http://www.napocor.gov.ph/index.php/mindanao-gen 31

http://rcse.edu.shiga-u.ac.jp/gov-pro/plan/2010list/10/philippine_lakes/lake_lanao_brief_27102010.pdf 32

Naga. Lake Lanao: An Ancient Lake in Distress. http://wldb.ilec.or.jp/data/ilec/WLC13_Papers/S17/s17-14.pdf 33

Palma. 1994. Lake Buluan (Mindanao, Philippines) Fisheries under Stress from Multiple Uses. Indo-Pacific

Fishery Commission. Regional Symposium on Sustainable Development of Inland Fisheries under Environmental

Constraints. FAO Fisheries Report No. 512 Supplement. 34

https://ph.news.yahoo.com/maguindanao-backs-lake-buluan-dev-t-114412345.html 35



http://www.prb.org/pdf08/pheregionalprofiles_armm.pdf



2.9 Marine Biota/Habitat

2.9.1 The Mindanao region consist of a variety of tropical ecosystems in an extremely diverse array of biological life, including marine fisheries, coral reefs, seaweed and sea grass beds, mangroves, sandy beaches, rocky headlands, sand dunes, wetlands, estuaries and lagoons37.

2.9.2 Mindanao accounts for about one-third of the 36,289 kilometres of coastline of the country38. The Bangsamoro area, excluding the territories for inclusion from the 2001 plebiscite, accounted for the highest fisheries production among all regions in 2012 with 18 per cent of the share or 0.9 million metric tons of the national fisheries production39.

2.9.3 The Bangsamoro area has 18,426,613 hectares or 8 per cent of the country‟s territorial ocean waters amounting to approximate 220 million hectares, a shelf area of approximately 2,811,141.07 hectares and a coastline of approximately 3,232.29 km40. The Bangsamoro area has several Marine Conservation Areas (

2.9.4 2.9.5 Table III-17).

Table III-17. Marine Conservation Areas in ARMM

Conservation Priority Area

Priority Level

Biogeographic Region

Estimated Area (ha)

Province

Cagayan de Tawi-Tawi – Turtle Islands

Extremely High

Sulu Sea 1,035,136.17 Tawi-Tawi

Sulu Archipelago Very High Sulu/Celebes Sea 2,615,002.97 Tawi-Tawi, Sulu, Basilan, Zamboanga del Sur

Moro Gulf Very High Celebes Sea 1,526,341.41 Zamboanga del Sur, Lano del Norte, Lanao del Sur, Maguindanao

Source: http://www.chm.ph/index.php?option=com_docman&Itemid=94

2.9.6 The Sulu-Sulawesi Ecoregion is known as a global center of marine biodiversity with coral

reefs, seagrass beds and mangrove forests. Its marine biodiversity includes more than 400 species of corals, over 2,000 species of fish, including the prehistoric coelacanth, 5 species of marine turtles, at least 22 species of marine mammals including endangered marine mammals such as the dugong, whales and many dolphins, and more than 400 species of algae, 16 species of seagrass and 33 species of mangroves.41

2.9.7 The ecoregion also is an important source of food and livelihood for subsistence and commercial fishermen, including the economically important yellow fin tuna, skip jack tuna, and big eye tuna, as well as shrimp.40

37

Mindanao Development Authority. Mindanao 2020. http://minda.gov.ph/index.php/planning/mindanao-2020-

peace-and-development-framework# 38



http://pcid.org/wp-content/uploads/2013/12/Baseline-studies-10-FINAL-Natural-Resources-Sector-Baseline-

Profile_11Oct.pdf 40



www.panda.org/downloads/marine/wwfssme2.pdf

http://www.chm.ph/index.php?option=com_docman&Itemid=94

http://pcid.org/wp-content/uploads/2013/12/Baseline-studies-10-FINAL-Natural-Resources-Sector-Baseline-Profile_11Oct.pdf

http://pcid.org/wp-content/uploads/2013/12/Baseline-studies-10-FINAL-Natural-Resources-Sector-Baseline-Profile_11Oct.pdf



2.9.8 Sulu-Sulawesi Sea is among the richest fishing grounds in the country. According to the

Environment Chapter of the Bangsamoro Development Plan (2012): “Mindanao accounts for more than half of the total commercial fish catch nationwide, and seaweed production in Mindanao contributes in making the Philippines the largest producer of aquaculture products in Southeast Asia.”

2.9.9 According to the Environment Chapter of the Bangsamoro Development Plan (2012): “Coastal and marine genetic stock are present in marine fisheries, coral reefs, seaweed and sea grass beds, man-groves, sandy beaches, rocky headlands, sand dunes, wetlands, estuaries and lagoons. The most important municipal species of fish based on fish catches are the Round Scad (Galungong), Big-eyed Scad (Matangbaka), Frigate Tuna (Tulingan), Yellow fin Tuna (Bariles), Indian Mackerel (Alumahan), Indian Sardines (Tamban), Skipjack (Gulyasan), Fimbriated Sardines (Tunsoy), Eastern Little Tuna (Bonito), and Cavalla (Talakitok). The most important commercial species of fish based on fish catches are Roundscad (Galungong), Frigate Tuna (Tulingan), Eastern Little Tuna (Bonito), Big-eyed Scad (Matangbaka), Indian Sardines (Tamban), Skipjack (Gulyasan), Yellow fin Tuna (Bariles), Indian Mackerel (Alumahan), Fimbriated Sardines (Tunsoy), and Anchovies (Dilis). The major variety of seaweed cultivates is Eucheuma cotonii sp.”

2.9.10 Threats to the marine and coastal environment are: chemical pollution and eutrophication, fisheries operations, habitat alteration, invasion of alien species, and global climate change. Habitat alteration and loss due to destructive resource use, development activities and human population pressure are primary threats. Mining, logging, hazardous and solid waste disposal, pollution, land conversion for industrial, agriculture and urban development, coastal erosion and storm surges associated with climate change are specific threats to marine and coastal environment42.

2.9.11 Fisheries in the Philippines are important: they supply food for the whole country and provide livelihood for millions of people. Evidence of declining fish catch, size and species composition around the Philippines poses a bleak picture. A combination of fewer fisheries resources (caused by overfishing, illegal fishing and habitat destruction) and increased demand (population growth) poses further problems to fisheries production.43

2.9.12 Coral reefs in the Philippines cover an estimated area of 27,000 sq. km. The majority (over 70%) is in poor or fair condition. Only 5% are in excellent condition. Coral Reefs in Sulu-Sulawesi Sea are stated to be in better condition than the rest of coral reefs in the country. The Philippine Clearing House Mechanism for Biodiversity recommends that marine protected areas be established to avert the decline in coral cover, fish abundance, and biomass. Only one marine protected site in the Bangsamoro territorial waters includes hard corals – in the Sulu Sea which is seeing a stable outlook in coral reef but a decreasing trend in fish abundance. Fish abundance in Sulawesi Sea is also seeing a decreasing trend in fish abundance44.

2.9.13 Coral reefs in the Bangsamoro area are identified as areas to be protected. The objective of the Ecosystem Improved for Sustainable Fisheries (ECOFISH) Project is to conserve

42

http://www.chm.ph/index.php?option=com_content&view=article&id=91&Itemid=129 43

http://www.oneocean.org/fish/the_philippine_fisheries_situation.html 44

http://www.chm.ph/index.php?option=com_content&view=article&id=92%3Acoastal-marine-and-island-

biodiversity-coral-reefs-&catid=36%3Abiodiversity-in-the-philippines&Itemid=129



biological diversity, enhance ecosystem productivity and restore profitability of fisheries in select marine key biodiversity areas using ecosystem-based approaches to fisheries management.45

2.9.14 The Philippines is ranked the second highest seagrass diversity in the world with 19 species or about 55 per cent of the number of species in East Asia46. Seagrasses are among the least studied tropical coastal ecosystems. Observations are therefore the result of unsystematic studies and incidental collections47.

2.9.15 Threats to seagrass communities include siltation or sedimentation, pollution, eutrophication, nutrient loading, dredging, unsustainable fishing practices, oil pollution, tourism development, and boat scour48.

2.9.16 Five species of marine turtles are found in the Philippines: green, hawksbill, olive ridley, loggerhead and leatherback. Three turtle species (green, hawksbill and olive ridley) nest in the Philippines and the other forage in Philippine waters. Green and hawksbill turtles nest throughout the Philippines year round, while olive ridley turtles nest mostly in Zambales, Bataan and Batangas Provinces Mainly In August and September64.

2.9.17 The Turtle Islands Heritage Protected Area (TIHPA) is the first trans-boundary protected area in the world spanning the waters of Malaysia and the Philippines. It is the major nesting ground of the green sea turtle (Chelonia mydas).63 Each year, over 2,000 nester turtles lay hundreds of thousands of eggs in the TIHPA. While majority of the hawksbill turtle (Eretmochelys imbricata) nests in the Gulisaan Island, Malaysia, they are also found in the TIHPA. The biodiversity of the TIHPA include 34 bird species, fruit and field bats, a variety of reptiles (snakes, green sea and hawksbill turtles, monitor lizards), 15 arborescent species, 24 to 27 genera of corals, 76 to 128 fish species, and 62 species of marine flora. The entire municipality of the Turtle Islands was declared as the Turtle Islands Wildlife Sanctuary (TIWS), managed by the Department of Environment and Natural Resources‟ (DENR) Protected Area Management Board.49

2.9.18 The endangered species in the Philippines are listed in 2.9.19 Table III-18.

Table III-18. Endangered Species in the Philippines

Critically Endangered

Endangered Vulnerable Other Threatened Species*

Total

Plants 99 187 176 64 526

Mammals 8 12 17 5 42

Birds 15 59 53 127

Reptiles 5 11 4 4 24

45


and Freshwater Biodiversity Sub-Theme 46



http://www.chm.ph/index.php?option=com_content&view=article&id=92%3Acoastal-marine-and-

island-biodiversity-coral-reefs-&catid=36%3Abiodiversity-in-the-philippines&Itemid=129 48




and Freshwater Biodiversity Sub-Theme



Amphibians 4 10 14

* refers to species or subspecies not critically endangered nor endangered but is under threat from adverse factors throughout their range and is likely to Source: http://www.chm.ph/index.php?option=com_content&view=article&id=53&Itemid=84

3. Demographic and Tri-People Context

3.1 In 2010 ARMM registered a total population of 3,248,787.50 The people have been

generally described to include the: (i) Moros or Muslims, (ii) Lumads or indigenous peoples, and (iii) settlers who are mostly Christians from Luzon and the Visayas. The Muslims comprise the overwhelming majority. Based on the combined databases of the Office of Southern Cultural Communities (OSCC) in ARMM and the National Commission on Indigenous People (NCIP) in Basilan, the total population of indigenous people in ARMM in 2010 was 606,452 or 18.6% of the total population in the same year. By common knowledge, many of those classified as settlers are children of families who migrated to Mindanao in the 1950s to 1970s under government resettlement programs; and consider themselves, being born in Mindanao, as Mindanaoan.

3.2 ARMM was one of only two regions in the country – the other region was the National Capital Region – that posted a larger number of female than male population (99 males per 100 females) or a sex ratio of lower than 100 (i.e., 98.8) in 2010.51 Of its total population, 1,634,189 or 50.3% were females.

3.3 Overall, ARMM registered the highest dependency ratio of 80.5 across regions in 2010.52 This means that for every 100 working-age population (with ages 15 to 64 years old), there were 80 dependents (with ages 0 to 14 years old and 65 and over). In the same year, ARMM had more male dependents than female dependents at 729,651 and 714,799 respectively.

3.4 In 2013 ARMM had a total of 2,300,000 total working-age population, with greater female working-age population at 50.6%.53 Only 54.1% (the lowest in the country) or approximately 1,252,000 were in the labor force, of whom 72.2% were males and 27.8% were females. Of this number, 95.7% or approximately 1,198,000 were employed; 73.2% were males and 26.8% were females. Not in the labor force were approximately 1,064,000 or 45.9% (highest in the country) of the working age population, of whom 77.4% were females and 22.6% were males. Women thus continued to be less represented in employment even if they comprise a larger proportion, at 50.6%, of the total working age population.

3.5 In 2012 according to the Philippine Statistics Authority, of the total 1,220,000 employed persons in ARMM, 70% or 861,000 persons were in agriculture, of whom 75.38% or

50

National Statistics Office (2011). Demography: Philippine Yearbook 2011. Retrieved February 23, 2014 from

http://www.census.gov.ph/sites/default/files/2011%20PY_ Demography.pdf#page=77&zoom=150,0,728 51

National Statistics Office (2011). 52

National Statistics Officer (2011). 53

National Statistics Office (2013). July 2013 Labor Force Survey. Retrieved February 23, 2014 from http://www.census.gov.ph/sites/default/files/attachments/hsd/article/TABLE% 202B%20Percent%20Distribution%20of%20Population%2015%20Years%20Old%20and%20Over%20by%20Employment%20Status%2C%20by%20Region%20and%20Sex%20July%202013_0.pdf.

http://www.chm.ph/index.php?option=com_content&view=article&id=53&Itemid=84

http://www.census.gov.ph/sites/default/files/2011%20PY_%20Demography.pdf#page=77&zoom=150,0,728

http://www.census.gov.ph/sites/default/files/attachments/hsd/article/TABLE%25



649,000 were males. 54 Female agricultural workers numbered 212,000 or 24.62% of the total agricultural workforce.

4. Land Tenure Context

4.1 Land Administration Systems

4.1.1 Government agencies have different estimations of the total land area of ARMM, and therefore of the whole proposed Bangsamoro territory. The National Mapping and Resource Information Authority (NAMRIA) of the Department of Environment and Natural Resources (DENR) estimated the total land area of ARMM at 1,293,552 hectares as of 2011, with 628,401 hectares or 49% of the total land area classified as alienable and disposable and 665,151 hectares or 51% as forest land. The Philippine Statistics Authority placed the region at 3,351,129 hectares with 533,410 hectares devoted to agriculture, including 2,407 hectares of forest land.55 The Regional Planning and Development Office (RPDO) of ARMM, on the other hand, pegged it at 27,581.79 square kilometers or 2,758,179 hectares as of 2007.56 The data of the Mindanao Development Authority is consistent with that of NAMRIA.57 Data of DENR-ARMM are slightly different from NAMRIA‟s and set the proportion of titled lands at 89% of the total alienable and disposable lands.

4.1.2 Consistent in all land data on ARMM however is the mention of a large area for agriculture. According to the ARMM Regional Planning and Development Office, most of the land in ARMM is devoted to agriculture.58

4.1.3 These conflicting land records are primarily due to the incomplete cadastral survey of the whole region as well as to multiplicity of agencies maintaining and providing land records in the country. ARMM was initially excluded from the cadastral survey target of the DENR because of the inability of DENR personnel to conduct cadastral survey in the area due to peace and order problem.59 The Cadastral Survey Program of DENR-ARMM is nonetheless now ongoing, and set to be completed by 2015.

4.1.4 The Philippines not only has multiple agencies maintaining and providing land data, but also has multiple forms of titles or tenure instruments for agricultural lands. It has two general systems for disposing land titles: judicial and administrative. Judicial land titling is done through the judicial courts, whereas administrative land titling is done by government line agencies (e.g., DAR, DENR, NCIP). These dual systems of disposing land titles and the presence of multiple agencies with authority to issue land titles have also been cited as among the causes of overlapping land claims and land conflicts not only in Mindanao but also in many parts of the country.60

54

http://countrystat.bas.gov.ph/?cont=16&r=15. 55

http://countrystat.bas.gov.ph/?cont=16&r=15. 56

http://www.rpdoarmmgov.ph/redpb/The%20Autonomous%20Region.htm. 57

http://www.minda.gov.ph/site/Mindanao/statistics/Demography---Land-Area-Classification- 58

http://www.rpdoarmmgov.ph/redpb/The%20Autonomous%20Region.htm. 59

Land Management Bureau (2011). DENR gears up for full implementation of Land Management System, cadastral survey. Retrieved August 11 from http://new.lmb.gov.ph/index.php?option=com_content&view=article&id=10:denr-gears-up-for-full-implementation-of-land-management-system-cadastral-survey&catid=8:news&Itemid=107.

60 Antonio, D. (2006). Instituting good governance in the land administration system – the Philippines‟ perspective.

FAO Land Reform, Land Settlement and Cooperatives (2) 73-83; Bangsal, N. & Lebrilla, M. L. (2008). Land administration system: Functional and efficiency implications. House of

Representatives Policy Advisory No. 2008-05.

http://ww/



4.1.5 A land conflict scoping mission report of the World Bank and International Organization for

Migration (IOM) in March 2013 similarly states that addressing land conflict is made more complicated by the existing institutional limitations of land administration and land dispute resolution mechanisms. There are five government line agencies involved in issuing and managing titles. Vested interests across these agencies have stalled previous reform efforts. At the same time, a lack of coordination has increased the prevalence of conflict through the issuance of multiple title instruments on individual plots of land, in the process reducing the legitimacy of existing titles. In addition, poor document management, as well as the cycle of conflict, has led to the loss or destruction of many land records. A national cadastral survey project currently under way will document cases of multiple titles, but will not identify competing claims without documentary supporting evidence.61

4.2 Statutory versus Customary Land Administration Systems

4.2.1 The complexity and inefficiency of the statutory land administration system is not the sole reason of land conflicts in Mindanao. The more stark reason is the contrast of this statutory system, which promotes the formalization of private land ownership through issuance of land titles, with the traditional or customary land ownership concepts and land use practices of the Moros and indigenous people in Mindanao.

4.2.2 The customary system or indigenous concept of ownership views land as belonging to all generations of a clan, and therefore cannot be sold, disposed or destroyed. 62 A formal land title is therefore a weak basis of property rights. The more important evidences are ancestors‟ burial grounds, genealogies or salsila, and land occupation by the clan since time immemorial. Inheritance is considered as the main basis of one‟s right over land; and only the produce of the land, and not the land itself, can truly be possessed (Fianza, 1999).

4.2.3 Under customary practice, most members of the community enjoy access to land. However, its regulation is a prerogative of individuals with rank or title (e.g., sultans, datus, village/clan leaders). Big Moro tribes/groups, such as the Maranaos, Maguindanaos, and Tausugs consider the sultans and datus as the titular ultimate owners or administrators of all communal lands and their fruits (Briones, 2012). Thus, to them, though individuals may have rights to unused sites through inheritance and kinship, they have to ask the permission of their clan elders. The sultan and datu decide on the allocation of communally owned land for individual use, and also personally supervise land production and distribution of harvests according to the needs of their constituents. They also resolve land disputes and other types of disputes. The followers reciprocate in terms of material support, such as a portion of produce, taxes, labor as required by the datu. Among the smaller Moro groups (i.e., Yakan, Samal, Sanguil, Kalagan and Kalibugan), the village or community elders are more relied upon for decisions on land-related issues. According to Briones (2012), though this practice of deferring to the ownership claims or power of a

61

Land Disputes in Conflict-Affected Areas of Mindanao: Report of the Joint World Bank-International Organization for Migration Scoping Mission, May 2013.

62 Briones, R. (2012). Mindanao Economic Policy Papers: Land tenure and agribusiness investment in Muslim

Mindanao. Pasig City: Brain Trust: Knowledge and Options for Sustainable Development, Inc. Dumarpa, J. (1984). How Maranao possess land. Salsilah, A Journal of Philippine Ethnic Studies, 4 (2), pp 34-42. Fianza, M. (1999). Conflicting land use and ownership patterns and the “Moro problem” in Southern Philippines. In

M. Coronel-Ferrer (1999). Sama-sama: Facets of ethnic relations in South East Asia. Quezon City, Philippines: Third World Studies Center, University of the Philippines.



datu or clan leader is observed throughout ARMM, it is more prevalent in the mainland provinces (Maguindanao and Lanao del Sur) where land consolidation has been associated with their economic and political power. An indicative listing of clan landholdings in Maguindanao is shown in Table III-19.

Table III-19. Indicative List of Clan Landholdings in Maguindanao

Clan Area Description of landholdings

Ampatuan Ampatuan, Datu Piang, Usay, Hofer, Datu Sangki, Datu Saudi Ampatuan, Sharif Aguak

Covers thousands of hectares; in Shariff Aguak, consolidation was through pressured land sale

Sinsuat Odin Sinsuat Covers thousands of hectares Sema Odin Sinsuat About 500 hectares Paglas Datu Paglas Several hundreds of hectares; consolidated

under lease agreement by plantation Candao Sultan Mastura About 50 hectares Others: Matalam (Pagulangan), Pendatuan (Pendatun), Mastura (Sultan Mastura)

Source: Briones (2012)

4.2.4 Experiences on the ground show two implications of the dominance of datus and clan leaders in administering land rights and land use among members of the communities or clans. On one hand, the dominance of datus can facilitate the entry of economic development opportunities and the mobilization of the support of the whole community. On the other hand, the dominance of datus can cause the displacement and further disempowerment of many small farmers, including indigenous people. A cited example is the amassing of large tracts of land by Datu Andal Ampatuan and his children in Maguindanao where even the judicial courts could not intervene.

4.2.5 The contrasts between statutory and customary land administration practices have resulted in three major problems: (1) competing land claims between those who hold land titles – though many who hold titles are Christian settlers, there are also Moros who also have secured land titles for their occupied lands – and other Moros and indigenous groups in Mindanao who claim land rights by virtue of their ancestral lineage; (2) relegation of the status of many members of communities to the status of tenants of Moro landowners and datus who were able to secure land documents for vast tracts of land under their supervision; (3) displacement of many poor Moros, as well as Christian and Lumad peasants, with the expansion of local big agribusiness and transnational corporations who have gained control of Mindanao‟s land resources through the government land administration system (Fianza, 1999).

4.3 Agrarian Reform

4.3.1 The total coverage of the Land Acquisition and Distribution (LAD) component of the Comprehensive Agrarian Reform Program (CARP) in ARMM is 376,213 hectares, which represents 29% of the total land area of the region (based on total land area estimate of NAMRIA). As of December 31, 2014, of this total LAD coverage, 72.3% or 272,045.63 hectares have been distributed to 86,854 agrarian reform beneficiaries or ARBs (See Table III-20).

Table III-20. Land Acquisition and Distribution Accomplishment of DAR as of December 2014

Provinces Total LAD Scope (hectares)

Accomplishment (hectares)

Balance (hectares)

No. of ARBs

Basilan 37,026.00 25,164.00 11,861.5640 8,110



Lanao del Sur 165,403.00 134,235.07 31,168.2929 34,000

Maguindanao 124,735.00 82,733.56 42,001.1911 33,275

Sulu 17,387.00 9,287.00 8,100.0000 3,220

Tawi-tawi 31,662.00 20,626.00 11,036.3748 8,249

Total/ ARMM 376,213.00 272,045.63 104,167.4228 86,854

Source: DAR-ARMM, 2015

4.3.2 Lands subjected to CARP are generally used for agricultural purposes. Table III-21 presents the major crops planted in each province.

Table III-21. Crops Planted in Lands Subjected to Agrarian Reform

Province Crops

Basilan Rubber, coconut, coffee and cacao Lanao del Sur Rice, corn, coconut, root crops and fruit trees Maguindanao Rice, corn, coconut, banana and root crops Sulu Cassava, coffee and fruit trees Tawi-tawi Cassava and coconut


4.3.3 There are a total of 97 agrarian reform communities covering a total of 224,726.17

hectares in 85 municipalities in five provinces of ARMM (See Table III-22). Of these ARCs, eleven have approved or ongoing agro-enterprise development (AED) projects under the Agrarian Reform Communities Connectivity and Economic Support Services (ARCCESS) Program. Examples of AED projects are common service facilities for: rice and corn production; integrated rice-duck enterprise; rubber production and trucking facility; cassava production and marketing; and coffee production and marketing. Other projects are mechanized rice and corn production and marketing; provision of farm tractor; and integrated organic farming of cassava.

Table III-22. ARCs, Land Areas and Beneficiaries of Agrarian Reform as of June 30, 2014

Province Number of

Municipalities with ARCs

Number of ARCs

Total LAD Scope (in hectares)

Total LAD area distributed as of June 30, 2014

(hectares)

Beneficiaries63

Male Female Total

Basilan 6 11 18,676.55 18,676.55 5,121 527 5,648

Lanao del Sur 33 34 83,740.88 67,912.16 15,237 3,398 24,756

Mag‟danao 23 23 72,695.74 41,485.02 9,601 4,317 14,772

Sulu 11 12 10,289.00 7,247.58 3,814 1,769 5,583

Tawi-tawi 12 17 39,324.00 21,673.00 1,538 936 7,074

Total/ ARMM 85 97 224,726.17 156,994.31 35,311 10,947 57,833


4.3.4 According to the interviewed DAR-ARMM official, the implementation of agrarian reform is

beset with problems related to land tenure and program beneficiaries‟ development. Land tenure issues include: (i) abandonment of awarded lands due to boundary disputes arising from erroneous survey; and natural and human-induced disasters; (ii) un-subdivided Mother Certificate of Land Ownership Award (CLOA), which discourages individual

63

Totals do not tally with sums of numbers of males and females because some ARCs lack sex-disaggregated data.



farmers from developing their farm lots because of uncertainty on the exact locations of their respective awarded lands; and (iii) unpaid land owners. Problems related to the development of agrarian reform beneficiaries (ARBs) include: (i) weak organizations of ARBs; (ii) lack of access to farming technology, capital and credit; (iii) unstable selling price of agriculture commodities; (iv) lack of technical knowledge on value chain, and lack of skills on value adding; (v) dilapidated road network and bridges, which have resulted to high transportation cost; (vi) inadequate irrigation system and services; (vii) lack of post-harvest facilities; and (viii) lack of potable water systems.

4.3.5 Nonetheless, in support of the proposed HARVEST as a potential source of additional assistance to the ARBs, DAR-ARMM recommended a list of ARCs that are possible areas for agri-business investment. These are those belonging to the Unayan cluster of ARCs in Lanao del Sur and Iranun cluster in Maguindanao.

4.4 Ancestral Domain Claim of Indigenous People

4.4.1 The implementation of the Indigenous People‟s Rights Act (IPRA) in ARMM has been slow

due to the absence or contested jurisdiction of the National Commission on Indigenous People (NCIP) in the region (except in Basilan), the lack of power of the Office of Southern Cultural Communities (OSCC) in ARMM to identify and delineate ancestral domains and issue Certificate of Ancestral Domain Titles (CADTs), and the divide between Moro and non-Moro indigenous peoples (IPs).

4.4.2 Thus, from 2002 to 2008, only one CADT (R09-LAN-0206-043) of Sama Bangingi tribe was issued in ARMM.64 This covers 2,673.2682 hectares in the Municipality of Lantawan, Province of Basilan. For the IPs in Maguindanao, the NCIP of Region XII submitted, based on applications mostly from non-Moro IPs, a list of ancestral domain claims for delineation and recognition (See Table III-23). This list is, however, contested by the OSCC because of alleged lack of consultation. Also, the total claimed ancestral domain is more than 50% of the total land area of Maguindanao. Same areas are being claimed by Maguindanaoan Moros.

Table III-23. List of Ancestral Domain Claims in Maguindanao

Location Est. Area (Hectares)

ICC/IP Claimant/s

1. Direct CADT Application, PC Hill, Cotabato City, Maguindanao

500 IP Community

2. North Upi, Maguindanao 48,722 Teduray

3. First Complex, Shariff Aguak, Maguindanao 97,500 Teduray

4. Dinaig, Datu Odin Sinsuat, Maguindanao 32,000 Teduray

5. Crossing, Barurao, Sultan Barongis, Maguindanao

10 Datu Norodina A. Camsa & Haji Mustapha Abdul Salam Mamasalagay

6. Upi, South Upi, Southern portions of the municipalities of datu Odin Sinsuat, Talayan, Guindulongan, Datu Unsay, Shariff Aguak and Ampatuan, Maguindanao

201,880 Teduray/ Lambangian & Dulagan Manobo

Subtotal 380,612

64

Source: National Commission on Indigenous People (NCIP)



Source: National Commission on Indigenous People, 2014

4.4.3 To assist the Moro and non-Moro IPs address their disagreements, the Bangsamoro

Transition Commission has formed a Task Force Mamalu-Tabunaway that will facilitate dialogues on, among others, the demarcation of the claimed lands of the Tedurays and Maguindanaons.

4.5 Land Tenure Arrangements

4.5.1 Given the complex land administration situation and issues, different land tenure

arrangements exist in ARMM similar to other regions of the country. There are small owner-cultivators holding different types of land tenure instruments, such as free patents (FPs), certificate of land ownership award (CLOAs), homestead patents and original/transfer certificate of title, or mere tax declaration certificate as proxy document of ownership of untitled private agricultural land (UPAL). Many, especially the indigenous people, do not have documented proof of land ownership except for signs of their long occupation of the land, such as their ancestors‟ burial grounds and attestation of the whole community. There are also share tenants and leaseholders of small and large landowners, as well as hired agricultural workers. The government cannot provide reliable data on their numbers because of lack of unified land information system. There are also no data on land titleholders claiming same parcels of land.

4.5.2 The problematic land administration system – conflicting land records, complexity and multiplicity of land titling processes, sensitivity of ancestral domain claims, and the contrast between the formal and customary land administration systems in ARMM – and the resulting land conflicts and insecure property rights can serve not only as a major challenge to agribusiness investments but also as a potential ground for further marginalization of poor small farmers and indigenous peoples.

5. Economic and Poverty Context

5.1 In 2012 the region posted the highest poverty incidence among families across all regions in the country.65 As of first semester of 2012, poverty incidence is at 46.9 and subsistence incidence is at 20.4, which means that about 46.9% of every 100 families are poor, with their income incapable of providing the basic food requirements. Among the five provinces, Lanao del Sur had the highest poverty incidence of 68.9, followed by Maguindanao at 57.8 (See Table III-24).

Table III-24. First Semester per Capita Poverty Threshold and Poverty Incidence among Families: 2006, 2009 and 2012

Region

First Semester Per Capita Poverty Threshold (in Php)

First Semester Poverty Incidence among Families (%)

2006 2009 2012 2006 2009 2012

Philippines 6,703 8,448 9,385 23.4 22.9 22.3

ARMM 6,319 8,257 10,027 43.0 42.0 46.9

Basilan 6,347 8,191 9,541 31.2 37.4 32.5

Lanao del Sur 6,443 8,309 10,970 38.1 51.4 68.9

Maguindanao 6,241 8,048 9,530 47.7 37.6 57.8

65

http://www.nscb.gov.ph/poverty/defaultnew.asp.



Sulu 6,860 8,837 9,996 42.9 37.9 30.3

Tawi-tawi 5,691 7,289 8,244 50.6 48.3 20.8

Source: National Statistical Coordination Board

5.2 Three of the five provinces of ARMM had the lowest Human Development Index (HDI)

across provinces in the whole country in 2009, as shown in Table III-25. The computation of HDI is based on three basic dimensions of human development (HDN, 2013). These are longevity or a long and healthy life, access to knowledge, and a decent standard of living. The indicator of longevity is life expectancy at birth, which measures how many years a new-born baby is expected to live on average given current age-specific mortality rates. Access to knowledge is a measure of years of schooling, i.e., mean years of schooling of people ages 25 years and above and expected years of schooling of children (ages 6-24) in adulthood if enrolment rates stay at current levels. Standard of living is measured by real per capita income. Table III-25. Human Development Index of ARMM Provinces 2009

Province HDI Rank* Life

Expectancy Index

Education Index

Income Index

Basilan

.460

62

.676

.790

.182

Lanao del Sur .416 70 .628 .782 .146 Maguindanao .300 78 .610 .667 .066 Sulu .266 79 .582 .601 .054 Tawi-tawi .310 77 .532 .716 .078

* Rank: Of 79 provinces. Source: Human Development Network 2013

5.3 On the comparative human development situation of men and women, in 2009 three provinces of ARMM (i.e., Basilan, Sulu and Maguindanao; no data for Tawi-tawi) belonged to the five provinces with lowest Gender-related Development Index (GDI) in the country. The GDIs of Basilan, Maguindanao and Sulu, as shown in Table III-26, suggest that the disparity between men and women was mainly in income, rather than in health and education. This means that both men and women in these provinces equally need help in the areas of health (if life expectancy is used as health indicator) and education, but women need more assistance in income generation.

Table III-26. Gender-related Development Index of ARMM Provinces 2009*

Province GDI

2009

Rank

**

Life

Expectancy

at birth

2009

Mean years of

schooling 2008

(ages 25 and

above)

Expected Years

of Schooling

2008 (ages 6-24)

Estimated earned

income (Phil Pesos)

2009

M F M F M F M F

Basilan

.313

69

72

74.7

7.6

7.0

12.6

12.0

53,438

13,907

Lanao del Sur .545 56 55.9 63.2 7.0 6.8 12.5 12.9 29,075 32,381

Maguindanao .348 66 66.7 60.6 6.3 6.3 9.8 10.5 29,663 17,781

Sulu .337 67 58.8 57.8 4.7 4.5 10.9 11.6 23,890 21,431

Source: Human Development Network 2013 * No data for Tawi-tawi ** Rank: Of 69 provinces



5.4 Economic performance has been consistently lower in ARMM compared to the rest of Mindanao and the Philippines over the past decade (see FigureIII-11). In 2012, ARMM's Gross Regional Domestic Product (GRDP) grew by only 1.2% compared to 7.4% in the Mindanao "growth areas" of Regions 10 and 11.

5.5 The average annual nominal GRDP of ARMM was only P38.0 billion over the period 1996-2008 (and P83.8 billion over 2009-2012),66 equivalent to only 0.9-1.0% of the country's GDP for approximately 3.5% of the Philippine population.67 With an average annual GRDP growth rate of 3.1% (1996-2008) and 2.5% (2009-2012), and a population growth of around 2.3% (as of 2010), the region's growth performance hardly meets the expanding needs of its residents.

Source: NCSB Figure III-11. Annual Real GRDP Growth Rates (1996 - 2012)

68

Table III-27. Gross Domestic Product (in Thousand Pesos at Current Prices)

Year Philippines ARMM

2011 9,708,331,799 88,078,989

2012 10,567,335,915 93,338,128

2013 11,548,191,402 101,091,392

Source: http://www.nscb.gov.ph/grdp/2013/data/2011-2013_GRDP_July2014.pdf.

5.6 ARMM‟s regional economy was the region with the second lowest growth rate at 3.6

percent in 2013, accounting for the lowest share of GDP (0.7%). The major sectors contributing ARMM‟s domestic output in 2013 were: Agriculture, Hunting, Forestry and Fishing (AHFF) (61.3%), Services (33.6%) and Industry (5.1%).69

5.7 The per capita GRDP in ARMM was the lowest in the country at P14,566. Inflation was the highest in ARMM, 4.6 % in 2013.70

5.8 Agriculture

66

The NSCB adopted a new methodology that updates the computation of the gross regional income accounts

beginning 2009. Hence, caution should be exercised in comparing the levels and growth rates of the GRDP time

series pre-2009 and post-2009. 67

The population of ARMM was estimated at 3.3 million as of August 2010. The population of the Bangsamoro is

estimated at approximately 3.7 million (or, about 4.0% of the Philippines population). 68

Notes: Statistical series break beginning 2009. Also, at 1985 prices (1996-2009 series) and 2000 prices (2009-

2012 series). As a result, regional income accounts data prior to 2009 cannot be compared with figures post 2009. 69

http://www.nscb.gov.ph/grdp/2013/data/2011-2013_GRDP_July2014.pdf

Philippines, 2012, 6.8

Mindanao, 2012, 8.2

ARMM, 2012, 1.2

%

Philippines Mindanao ARMM



5.8.1 Of the total 3.3 million hectares of land in ARMM, 533,410 or 16% is agricultural in nature.

Agricultural output in ARMM is presented in Figure III-12: it is primarily crop based (71.5%), followed by fisheries (22.4), livestock (4.2%) and poultry (1.9%).70

Source: http://countrystat.bas.gov.ph/?cont=16&r=15

Figure III-12. ARMM Agriculture GRDP (2013).

5.8.2 The major agricultural products of the ARMM provinces are:

Lanao del Sur: corn, rice, cassava, sweet potato, abaca and coffee

Maguindanao: rice, corn, banana, palm oil, coconut, cassava, fish and marine resources

Basilan: coconut, coffee, corn, banana and cassava

Sulu: exotic fruits such as marang, mangosteen, and durian

Tawi-tawi: seaweed, octopus, ornamental shells, sea cucumber, bangus fry, grouper, round scad, crustaceans, sharks, abalone, prawns, crabs, squid, and sea turtle eggs.71

5.8.3 The 2013 production figures ion ARMM are presentd in Table III-28. In 2013, Agriculture and Forestry grew 2.5% and fishing grew 2.4% from 2012.72 The principal agricultural commodities grown in ARMM in 2013 were cassava, corn, coconut, palay and seaweed, generally low value crops73, as in previous years (Figure III-13).74

70

http://countrystat.bas.gov.ph/?cont=16&r=15 71

ARMM Regional Development Plan Midterm Update 2013-2016. http://rpdoarmmgov.ph/rpdo/ 72

http://www.nscb.gov.ph/grdp/2013/data/2011-2013_GRDP_July2014.pdf 73

http://countrystat.bas.gov.ph/?cont=16&r=15 74

Environmental and Social Safeguards Scoping Report for the Bangsomoro Fund Facility, draft 2014. Prepared by


Crops

Fisheries

Livestock

Poultry

http://countrystat.bas.gov.ph/?cont=16&r=15



Source: DA-BAS

Figure III-13: Nominal value of production of top ten major crops in ARMM: 5- year average, 2008-2012

Table III-28. Production in ARMM (2013)

Value (Millions Pesos)

Volume of Production (metric tons)

Area Harvested (ha)

Palay 17,393.61 612,083 226,700

Corn 8,365.43 667,104 275,964

Other Crops Coconut 3,550,491 Banana 445,935 Cassava 217,143 Rubber 185,476 Abaca 138,369 Coffee 116,459 Oil Palm 53,849 Tobacco 34,451 Cacao 9,431

Livestock 3,205.74 7,764 Carabao 10,440 Cattle 11,424 Hog 4,495 Goat

Poultry 1,180.19 5,851 Chicken 1,021 Duck 3,505 Chicken Eggs 1,854 Duck Eggs

Commercial Fisheries 3,404.63 95,440.821

2009-2012, Sugarcane, 105

2009-2012, Mongo, 121

2009-2012, Abaca, 183

2009-2012, Coffee, 596

2009-2012, Rubber, 1,993

2009-2012, Banana, 3,452

2009-2012, Palay, 8,249

2009-2012, Coconut, 8,648

2009-2012, Corn, 9,368

2009-2012, Cassava, 10,100

million pesos (nominal)



Municipal Fisheries Marine

5,056.16 86,838.141

Municipal Fisheries Freshwater

2,040.37 24,401.231

Aquaculture 4,640.68 638,551.711

1 2012 data; Source: http://countrystat.bas.gov.ph/?cont=10&pageid=1&ma=C60PNCFP

5.9 Services

5.9.1 The services sector ranks second to Agriculture, Fishing and Forestry (AFF) and increased its contribution to GRDP by 6.6% from 2012 to 2013.75 However, most jobs available in this sector are low paying. Tourism, which has the potential to provide significantly higher revenues to the region and offer higher compensation for workers, has not taken off due to security concerns and poor infrastructure despite the natural beauties and amenities that the region can offer.76

5.9.2 The subsectors of the service sector varied in their growth pattern:

Financial Intermediation grew from 10.7 % to 18.5 %

Trade and Repair grew from 4.0 % to 5.7 %

Public Administration and Defense (PAD) grew from 5.5 % in 2012 to 5.9 %

Transport, Storage and Communication (TSC) shrank from 8.4 percent 7.9 percent

Other Services shrank from 6.7 % in 2012 to 6.2 % in 2013

Real Estate, Renting and Business Activities (RERBA) maintained its growth of 3.6 percent.77

5.10 Industry

5.10.1 Manufacturing only comprises 5% of the regional economy and is dominated by micro and

small-scale industries (refer to JICA 2011). This is primarily due to the uncertain peace and order situation and the ability of small and micro-industries to adapt to changing circumstances making them a form of survival or coping mechanism. However, most of them are part of the "shadow economy" and do not contribute to the government‟s ability to raise revenues.78 There are only a few medium and large-scale enterprises that can generate a significant number of jobs, primarily because large and successful enterprises in the ARMM region can be subjected to extortion threats and security challenges.

5.10.2 The Industry sector posted a decline by 2.1 percent in 2013 from a growth of 0.4 percent in 2012, mainly due to Electricity, Gas and Water Supply (EGWS) decreasing from 0.7 percent in 2012 to negative 6.2 percent in 2013.78

5.10.3 Accelerated growth was observed in:

Mining and Quarrying grew from 2.3 % to 2.6 %

Manufacturing grew from 3.0 % to 3.9 %

Construction rebounded from negative 3.1 % in 2012 to 1.2 % in 2013.78

75

http://www.nscb.gov.ph/grdp/2013/data/2011-2013_GRDP_July2014.pdf 76


joint World Bank-JICA Environmental and Social Safeguards Scoping Team. 77

http://www.nscb.gov.ph/grdp/2013/reglHighlights.asp 78

Refer to WFP and WB (2011); and Lara and Schoofs (2013)

http://countrystat.bas.gov.ph/?cont=10&pageid=1&ma=C60PNCFP



5.11 Finance and credit

5.11.1 As outlined in the scoping report for this project, limited access to capital and credit is one of the binding constraints to higher productivity and growth in ARMM. Inherent market failures in rural areas, combined with conflict risks, result in minimal extent of financial inclusion in ARMM. On average, ARMM has only 0.6 number of bank offices per thousand square kilometer of land area compared to Mindanao's 9.7 and the country's 28.2 in 2013 (refer to Figure III-14). ARMM also has the highest percentage of unbanked municipalities and cities with only 7% serviced by banks while 48% in Mindanao and 63% in the Philippines are served by banks (refer to Figure III-15). Moreover, there is very limited access to Islamic financing and credit in the region given the heavy debt burden of the Al-Amanah Islamic Bank, the only bank in the Philippines allowed to engage in Islamic financing and credit.79

Figure III-14 (left): Bank density in the Bangsamoro, 2006-2012 Figure III-15 (right): Banked and unbanked (lighter shade) municipalities and cities in Bangsamoro, as of end of September 2011 Notes: No available disaggregated data to calculate bank density in the Bangsamoro area in 2006 and 2009. Figures are as of end of the year (except figures for 2013 which refer to end of the third quarter). Sources: BDP core team estimate, BSP, NSCB.

5.11.2 Figure III-16 and Figure III-17 below show that total deposits and loans in ARMM and in

fact in Mindanao on the whole are insignificant over the last decade compared to the rest of the country. Operations of micro-finance institutions are also limited which account for the prevalence of the informal lending sector. In a survey conducted on the credit sources of residents in the conflict areas, 79 of the respondents answered that they borrowed from their relatives and friends (WFP and WB 2011) (refer to Table III-29 below).

79





Figure III-16: Total deposits in ARMM, as of end of June 2013

Figure III-17: Total loans in ARMM, as of end of June 2013

Notes: No available data from 1996 to 2000. Sources: BSP

Table III-29. Sources of Credit in the Bangsamoro

Sources of Credit LdS Mag Cotabato

City Tawi-Tawi

Basilan

No access 1% 4% 32% 19%

Relatives / friends 97% 84% 81% 48% 79%

Charities / NGOs 0% 0% 0% 0%

Local lender / pawn shop 1% 1% 13% 23% 0%

Bank 1% 9% 0% 0%

Co-operatives 1% 1% 15% 0% 0%

Local Govt Units (LDUs) 0% 0% 2% 0% 1%

Store 5% 14% 12% 0% 0%

Other 2% 2% 2% 11% 2%

Source: WFP and WB 2011

6. Political-Economy Context

6.1 In many LGUs in the region, the most prominent businesses are those owned or controlled by the families that are also the elected LGU leaders. This intertwining of politics and business presents multiple risks for investors. Some existing investors have adapted to this marriage by entering into arrangements that further consolidate local control of political and security controls together with their business investments - for example inviting local LGU leaders to become partners in a new business can be a form of insurance. However there are risks associated with this strategy, including the political, security and business implications when elections bring about a change in local leadership. There is also a risk that strengthening local political and business control of one family may impact on transparency and accountability at the local level, and may ultimate curb democratic principles.

6.2 Aligning with one political grouping or another at a local level is a threat to other groups, given that sources of income are limited at the local level, and any successful business that produces a return has the potential to shift the balance of power at election time in favor of one group over another.

ARMM, 2013, 6.2

Mindanao, 2013, 369.2

Philippines, 2013, 6,316.1

bill

ion

pes

os

ARMM Mindanao Philippines

ARMM, 2013, 1.0

Mindanao, 2013, 115.7

Philippines, 2013, 3,779.4

bill

ion

pes

os

ARMM Mindanao Philippines



6.3 Some investors have managed to remain removed from local politics, by maintaining

relationships with all political groups. Businesses that require access to large tracts of land find this more difficult to achieve than those that don‟t, given that local political leaders exert control over large areas and tend to veto powers over new investments in their area. There tends to be less risk for investments that focus on processing rather than production.

6.4 That the clan is a mechanism within the Bangsamoro society of dispensing opportunities, providing social protection and bestowing privileges to family and community members has been well documented in the literature (Lara 2007; and Abinales 2000). Important economic and political matters that affect the life of the community will have to pass the approval of the dominant clan before their introduction and implementation in the community. While the system affords an unconventional social protection mechanism particularly for the very poor members of the community, it also has its negative aspect in the form of elite capture of most of the benefits of development assistance (refer to Adriano and Parks). Because of their monopoly control of both economic and political powers in their respective communities, these clans have become virtual gatekeepers in their respective communities. Violence often occurs when the control over a territory by a dominant clan is challenged by another rival clan in the area.

7. Health Situation

7.1 Vital statistics for the Philippines (2010) indicate the population is 94,013,000, with 1,782,981 live births and 488,265 deaths, resulting in a natural increase of 13.8 per 1000 mid-year population. For 2010, maternal mortality was 96.4 per 1,000 births, fetal death was 4.5 per 1,000 births, and under 5 mortality was 17.8 per 1,000 births80.

7.2 The Autonomous Region of Muslim Mindanao (ARMM) has the highest reported incidence of water pollution, sanitation and hygiene-related diseases in the country. The proportion of the population in the ARMM with access to improved sanitation (38 %) is just over half the national average. Similarly, the proportion of the population in the ARMM with access to improved water sources is lowest in the country (60 %) and 15 % lower than in any other region. The disparity across income levels in the country is also striking. The proportion of low income families with access to basic sanitation is 22 % lower than high income families and the proportion with access to water sources that can provide improved drinking water and basic hygiene is 17 % lower. 81.

7.3 Top causes of death in ARMM in 2010 were: Cerebro-vascular diseases (103); malignant neoplasm (71); TB (65); Pneumonia (55); Diabetes mellitus (49).82

7.4 Eight of ten leading causes of morbidity in the Philippines in 2010 are due to infectious diseases. Acute respiratory infection, pneumonia and bronchitis are the top 3 causes of morbidity; no regional data are provided83.

80

http://web0.psa.gov.ph/sites/default/files/attachments/crd/article/SUMMARY%20OF%20PRINCIPAL%20VITAL

%20STATISTICS.pdf 81

siteresources.worldbank.org/INTPHILIPPINES/.../PEM06-fullreport.pdf 82

http://www.doh.gov.ph/kp/statistics/selected_death.html 83

http://www.doh.gov.ph/sites/default/files/3%20Chapter1.pdf



7.5 The number of health workers in ARMM is provided in 7.6 Table III-. The number of beds relative to population size in ARMM is the lowest in the

country. ARMM has the highest poverty threshold, highest poverty incidence and very low savings. ARMM is also low with respect to the human development index: life expectancy, years of schooling and per capita income is much lower in ARMM compared to national averages (

7.7 Table III-30).

Table III-30. Health Statistics

Indicator National ARMM

Government health Workers

55 Doctors Dentists Nurses Midwives

2838 1891 4576 17,437

76 58 114 615

Health Service Availability (2008)

54 Number of beds 94,199 586

Number of beds per 1000 population

1.04 0.17 (lowest)

Poverty84

Annual Per Capita Poverty Threshold (PhP) 2012

18,935 20,517 (highest)

Poverty Incidence among Families (%) 2012

19.7 48.7 (highest)

Average Income of families 2009

206,000 113,000

Average Expenditures of families 2009

176,000 98,000

Human Development Index

85

HDI 2009 0.609 0.266 (Sulu) – 0.46 (Basilan)

Life expectancy at birth (yr.)

72 53.6 (Tawi-Tawi) -62.7 (Basilan)

Mean Years of schooling 12.0 4.6 (Sulu) – 7.3 (Basilan)

Real per capita income 46,135 22,636 (Sulu) – 33,891 (Basilan)

8. Archaeological and Cultural Resources

8.1 Tourism

8.1.1 Tourism has great potential in Mindanao given its rich and varied array of tourist

attractions for various interests, including history and culture, natural beauty and adventure. List of ARMM natural tourist spots is Annex B.

9. Conflict Context

9.1 Due to its protracted nature, the conflict in the Bangsamoro area has mutated in various forms. Vertical conflict (state versus rebel groups) is primarily between the government and the MILF, but other armed groups such as the remnants of the Moro National Liberation Front (MNLF), the Bangsamoro Islamic Freedom Fighters (BIFF), and elements of the Abu Sayyaf Group pose challenges to state authority. Horizontal conflicts abound such as political elites competing for key electoral positions in the government or control

84

http://www.nscb.gov.ph/secstat/d_income.asp 85

http://www.nscb.gov.ph/hdi/2009/2009%20Human%20Development%20Index.pdf



over scarce resource in the area, inter-ethnic competition (IPs versus Moros, Maranaos versus Maguindanaoans), or inter-communal conflict (Christians versus Moros, MILF versus MNLF). Many of these horizontal conflicts are lumped together under the phenomenon of "rido" (clan wars). International Alert and WB (2014) noted that the incidences of horizontal conflicts outnumber those of vertical conflicts particularly when the peace negotiations occurred between GOP and the MILF and after the signing of the FAB in October 2012. However, they admonished that the decline in the incidence of vertical conflict and a rise in horizontal conflict should similarly be a cause of concern because the latter can easily transform into vertical conflicts given the interwoven nature of personal relationships in the Bangsamoro. The "feudalistic nature" of its society enables a prominent clan members who hold political power to use state resources against their enemies who will conveniently form an alliance with rebel groups to counter the overwhelming force of their rivals. The diagram below (Figure III-18) presents the types of horizontal conflicts, their likely scenarios, and potential consequences for agribusiness investments.

Figure III-18. Mapping for Potential Horizontal Conflicts and Consequences for Agribusiness Investments

9.2 Conflict between Fronts

9.2.1 There has been sporadic fighting between MILF and MNLF fighters in recent years, usually triggered by factors not related to the broader peace process, such as land disputes, historical grievances, or shifting allegiances in local politics. The impact of these conflicts is often significant, but tends to be relatively short-lived. These conflicts are restricted to specific geographic areas that can be mapped for risk profiling of potential investments. Its likelihood is low but could yield devastating results if occurred.

9.3 Political conflicts

9.3.1 This type of conflict results from contestation of political and economic powers among elites and influential clans at the regional and local government level. Implications on the



envisaged HARVEST are discussed under the “Political Economy Context.” Its likelihood is low and but could create medium impact.

9.4 Religious Conflicts

9.4.1 There is a limited history of religious conflict in the proposed Bangsamoro areas. The Moro fronts (MILF and MNLF) characterize their struggles in terms that are based on historical injustice, exclusion and oppression rather than on religious differences. There are cases of specific religious attacks, particularly at the community level, but these tend to be isolated and small in scale. All the successful agribusiness investments to date in ARMM work with all religious communities. In some cases (e.g. Matling) those differences are openly recognized and addressed in company policy. In others there is no specific policy response other than to buy inputs from any grower, regardless of affiliation (e.g. Agumil). Likelihood and impact of this type of horizontal conflict is low.

9.5 Rido

9.5.1 The most common cause of local conflict is usually attributed to rido (typically defined as „feuding between families and clans‟). Ridos can be long-running, can escalate to involve an increasing number of families, and each rido tends to require a specific, tailored solution given that the origins are affected primarily by local factors. Any size of external investment in an area affected by rido can aggravate existing tensions, and companies involved can become easy de facto targets if aligned with one side or another in a rido conflict. Risk mitigation strategies will involve appropriate social impact analysis prior to investment, briefings from the local security forces on existing conflicts, and discussions with a full range of local political actors. Its likelihood is high, its impact medium.

9.5.2 In 2012, the ARMM Regional Reconciliation and Unification Commission (RRUC) identified a total of 228 rido cases in the five provinces, most of which were caused by land conflicts.86

Table III-31. List of Rido Cases in ARMM as of December 2012

Provinces Active Unresolved Cases Resolved Cases Total

Maguindanao 44 61 105

Lanao del Sur 60 9 69

Basilan 22 6 28

Sulu 15 4 19

Tawi-tawi 6 1 7

TOTAL 147 81 228

Source: ARMM Regional Reconciliation and Unification Commission (RRUC), 2013

9.6 Land conflicts

9.6.1 The list of potential conflict triggers from land are numerous, including land grabbing, illegal land occupation, selling of land without titles, multiple claims over single plots, claims of historical usage against current titles, and others. There are land conflicts

86 Regional Reconciliation and Unification Commission (2014). Strengthening peacebuilding in ARMM: 2013 annual

report. Cotabato City: Autonomous Region in Muslim Mindanao.



between Moros and Christian settlers, Moros and indigenous people, and Moros and Moros (LGSPA, 2009).87

9.6.2 The complexity of land tenure situation is one of the major sources of these conflicts. A big number of armed encounters between government and rebel forces, as well as between Moro groups or between Moro and IP groups, trace their roots to competing land claims. The World Bank and the International Organization for Migration (IOM) conducted a Joint Scoping Mission on Land Conflict in Mindanao in March 2013 and found that the signing of the Framework Agreement on Bangsamoro (FAB) has created new dynamics in the region. According to unverified stories on the ground, many Moros are expressing a desire to return to land from which they had been forcibly displaced, sometimes decades ago because of wars; and there are also those who started to threaten settlers of eviction after the signing of the BBL. The ensuing movement of people could bring latent claims to the fore in the absence of an effective institutional framework to deal with rising tensions. In addition, various stakeholders are positioning themselves based on their expectations of how the land related provisions of the FAB would be implemented, creating further tensions amongst neighboring communities. It is clear that a significant proportion of both the active and latent competing land claims have a considerable potential to trigger renewed violence and forced displacement.88

9.6.3 Disputes over land use are the most significant risk for agri-business investments in the future Bangsamoro. The proposed „core territories‟ of the Bangsamoro include a number of areas within the current ARMM and neighboring municipalities and provinces where conflicts over land have occurred regularly. It is likely that any portfolio of agri-business investments in the Bangsamoro will run into land disputes at some point. Both its likelihood and impact is very high.

9.7 Internally Displaced Persons

9.7.1 The different types of conflicts gave rise to the large number of internally displaced persons (IDPs) in the region. The Bangsamoro Human Rights Network (BHRN) recorded 265,898 IDPs in Maguindanao, 67,144 IDPs in Lanao del Sur, and 20,248 IDPs in Basilan since January 2012 (PCIJ, 2013). The Internal Displacement Monitoring Center (2013) estimated nearly 200,000 people to have fled their homes since January 2013 because of conflicts between the government and rebel groups and clan-related violence. This includes an estimated 120,000 people who were affected by the fighting in Zamboanga City last September 2013. Of these people affected, at least 72,000 are still displaced. The estimated direct income loss due to these forcible displacements was PhP 258.5 million; and 1.9 million in cumulative schooldays lost by displaced children (PCIJ, 2013). According to the BHRN, in the last two years, the top cause of displacement was natural disasters; the second was fighting between the government and communist rebels; and the third was rido or blood feuds between and within powerful and influential clans in Mindanao. The armed conflict has also resulted in a huge number of children (i.e., 5,249 in 2009) involved in armed groups.

9.8 Local Conflict Resolution/Management Mechanisms

87

Land Governance Support Program in ARMM (2009). Land tenure stories in Central Mindanao. Davao City: LGSPA, Kadtuntaya Foundation, Inc., and Mediators Network for Sustainable Peace (MedNet), Inc.

88 Land Disputes in Conflict-Affected Areas of Mindanao: Report of the Joint World Bank-International Organization

for Migration Scoping Mission, May 2013.



9.8.1 As part of their peace initiatives, people in the Bangsamoro region and Mindanao have

created various mechanisms for conflict resolution/management and maintaining peace and order in the region. For vertical conflicts such as what happened in the gunfight between the Philippine National Force Special Action Force and MILF in Mamasapano, Maguindanao on January 25, 2015, the MILF and GOP have joint ceasefire mechanisms. The Coordinating Committee on Cessation of Hostilities (CCCH) of both sides created a Joint Ceasefire Crisis Team “to negotiate for ceasefire, separate the two contending forces, assist in the evacuation of casualties, assess the situation of internally displaced persons (IDPs), and help stabilize the situation”.89

9.8.2 For horizontal conflicts, including land conflicts, local conflict resolution/management mechanisms include:

Agama Arbitration Council, which under Presidential Decree 1083 or the Code of Muslim Personal Laws can be constituted by the Shari‟ah District Court or the Shari‟ah Circuit Court to amicably settle disputes arising from marriages and divorces among Muslim parties, including their disputes concerning their community properties.

Indigenous dispute resolution system where a council of elders, or sultan or datu or timuay mediate disputes between and among members of the tribe or community to reach settlement;

Katarungang Pambarangay or Barangay Justice System, in which an individual can submit a complaint against another individual, who is not a public entity, to the Lupong Tagapamayapa headed by the Barangay Local Chief Executive for mediation or arbitration in accordance with the Katarungang Pambarangay Rules;

Agrarian dispute resolution structures of DAR-ARMM, such as the Barangay Agrarian Reform Committee (BARC) at the barangay level, Provincial Agrarian Reform Adjudication Board (PARAD) and Regional Agrarian Reform Adjudication Board (RARAD) for conflicts related to the implementation of agrarian reform, conflicts between landowner and tenants or leaseholders, and land-related conflicts between and among farmer beneficiaries;

Mediation by land investigators and hearing officers of the DENR-ARMM for conflicts involving untitled or unpatented alienable and disposable lands after failed mediation attempts by the Lupong Tagapamayapa in accordance with DENR Lands Office Circular 68; according to DENR-ARMM, their land investigators are trained in mediation by the Philippine Justice Academy (PhilJA);

Civil society-organized groups of mediators, such as the Tumikang Sama-Sama Mediator assisted by the Center for Humanitarian Dialogue in Sulu; the Salday ko sa Genoket in five municipalities (Upi, Parang, Buldon, Barira and Kapatagan) in Maguindanao; Lumpingan, which is an aggrupation of Moro professionals from Datu Piang and operating in three municipalities (Datu Piang, Datu Saudi Ampatuan and Mamasapano) in Maguindanao; and Organization of Teduray Lambangian Conference

89

Gov‟t, MILF ceasefire mechanisms worked hard to effect ceasefire in Mamasapano. Retrieved Feb 10, 2015 from http://www.opapp.gov.ph/milf/news/gov%E2%80%99t-milf-ceasefire-mechanisms-worked-hard-effect-ceasefire-

mamasapano



(OTLAC) in Upi, Maguindanao. These groups of mediators were trained in mediation by the Mediators Network for Sustainable Peace (MedNet), Inc.

Committees of the MNLF and MILF that assist in dispute resolution, including rido; and I. II. Mediation interventions of local chief executives and other high ranking government III.

officials when conflicts cannot be resolved at the community level.



ENVIRONMENTAL RISKS AND POTENTIAL IMPACTS IV.

1. The environmental risks and potential impacts of agribusinesses vary according to the type of project, practices and the absorbing capacity of the environment. While agriculture and aquaculture provide food, biofuels, and other products, unsustainable agricultural practices can also become significant drivers of environmental degradation. The qualitative description of the potential risks and impacts of agricultural expansion and intensification in the Bangsamoro region are presented in this section.

2. The upstream environmental risks and potential impacts related to farming and other

agricultural production systems include the following:

Forest/land conversion and loss of natural habitats and biodiversity; Overfishing and loss of marine resources; Soil degradation and erosion; Lower water availability; Water pollution (application of fertilizers and agrochemicals); Waste management, and Health impacts from exposure to agrochemicals and other pollutants.

3. The downstream environmental risks and impacts related to post-harvest processing,

extraction and purification include:

Pollution (point sources such as emission to air and discharge of effluent), and Waste management.

4. The environmental risks and impacts related to agribusiness supporting facilities, such as power plants, waste treatment facilities, irrigation systems, fishing boats, etc.:

Forest/land conversion and loss of natural habitats and biodiversity; Overfishing and loss of marine resources; Soil degradation and erosion; Less water availability and poorer quality; Pollution (point sources such as emission to air and discharge of effluent), and Waste management.

A. Upstream Environmental Risk Forest/Land Conversion and Loss of Natural Habitats and Biodiversity 5. Agriculture, in particular plantations, is a specific land use that competes with natural

habitats such as forests and other terrestrial ecosystems. The establishment of plantations has been identified as a major driver of land use changes as natural ecosystems are cleared for agricultural production. This land use change and the corresponding forest loss and fragmentation of natural habitats are identified as key environmental issues brought about by agricultural expansion and intensification.



Clearing of trees to give way to palm oil, Malabang, Lanao del Sur

Land use conversion for palm oil plantation in Carmen, North Cotabato

6. Establishment of downstream processing facilities such as palm oil mills in Malabang

(Lanao del Sur) and in Carmen (North Cotabato) has spurned the development of palm oil plantations in these provinces. As in the case in Lanao del Sur, the palm oil mill company engages in a production, technical, and marketing agreement (PTMA) with land owners in the area however it also sources palm oil fruits from individual growers in the area. This type of sourcing arrangements can promote further conversion of forestlands, resulting in further loss of natural habitat and biodiversity.

7. The Bangsamoro area has several key biodiverse areas (KBAs). Several of these areas

are currently already under stress (Ligawasan Marsh, Lake Lanao). Furthermore, many protected and endemic species are present in the Bangsamoro area. Forest conversion may add further stress to the KBAs and protected species.

8. Land conversion can cause the fragmentation of natural habitats and is more pronounced

in forest ecosystems. Some of the critical habitats in the river basins are considered biodiversity rich and endemic to the area. The clearing of forests and replacing the natural vegetation with single plantation crop can have significant adverse impacts on the habitats of endemic species in the area. Within the Bangsamoro region are identified critical habitats and conservation areas that include protected areas and key biodiversity areas with an aggregate area of over 600,000 hectares (

9. Table III- ).

10. Agricultural companies will need to align their development plans to local land use plans. In the case of protected areas, a multi-stakeholder Protected Area Management Board (PAMB) sets the management plan of the protected area including the land use plans. For other forestlands, the DENR-ARMM collaborates with the LGUs in formulating the Forest Land Use Plan (FLUP). These protected area management plans and FLUPs provide a land use framework which agribusiness firms can use to align their development plans.

Overfishing and Loss of Marine Resources 11. Fisheries operations, habitat alteration and introduction of alien species have been

identified as a threat in the Bangsamoro area. In addition, illegal fishing with explosives and toxic chemicals occurs in the Bangsamoro area according to the Focus Group Discussions for the HARVEST project in Zamboanga (Jan 2015).



12. More than 85 percent of the world's fisheries have been pushed to or beyond their biological limits and are in need of strict management plans to restore them. Several important commercial fish populations (such as Atlantic bluefin tuna) have declined to the point where their survival as a species is threatened. The fisheries situation in the Philippines is no exception.

13. Targeted fishing of top predators (such as billfish, sharks and tuna) eventually disrupts

marine communities, causing increased abundance of smaller marine animals at the bottom of the food chain (sardines, anchovies). This in turn has impacts on the rest of the marine ecosystem, such as the increased growth of algae and threats to coral reef health.

14. Overfishing is also closely tied to bycatch, another serious marine threat that causes the

needless loss of billions of fish, along with marine turtles and cetaceans.

15. Smaller fishing/harvesting operations in municipal waters may result in habitat deterioration, loss of critical or biodiverse habitats (spawning grounds, coral reef), replacement of native species.

16. Coastal communities in the Bangsamoro area depend on fish as their primary source of

protein. Overfishing threatens their long-term food security. Soil Degradation and Erosion 17. Soil degradation and erosion is another major environmental issue that affects not only

agricultural productivity but also marine productivity. The National Action Plan to combat desertification, land degradation, drought, and poverty for 2004-2010 indicates that about 5.2 million hectares of agricultural lands are seriously degraded resulting to 30 - 50% reduction in soil productivity and water retention capacity90. Without measures to protect the top soil, sediments are carried by water flow and deposited in receiving bodies of water such as the rivers, lakes, other wetlands, and the sea. Agricultural lands that have been used for intensive monocrop plantations also face potential issues related to: (1) depletion of nutrients due to removal of top soil, and (2) introduction of persistent pollutants from pesticides and other agrochemicals.

18. Land conversion and soil erosion may reduce the ability of the environment to cope with

climate change. For instance, siltation may limit drainage of watershed, potentially compounding effects from climate change. NGOs present at the FGD in Davao, February1 2015 stated that any development should determine whether climate change may be affected by the project or vice versa and mitigation measures should be included in the project.

19. Because of its extensive root system, oil palm grows well on uneven, leached soils that

are generally less well suited for growing annual crops such as cereals; there is thus less

90

Asio, V. et al. (2004) A review of soil degradation in the Philippines. Annals of Tropical Research 31[2]:69-

94(2009) accessed from http://annalsoftropicalresearch.com/pdf%20file/full%20papers/Asio%20et%20al.pdf on 24

August 2014

http://annalsoftropicalresearch.com/pdf%20file/full%20papers/Asio%20et%20al.pdf



direct competition with these crops91. Clearing of large tracts of land on uneven and leached soils could result in large scale erosion and downstream siltation problems.

20. In the Focus Group Discussions, residents of areas near the banana plantations in

Maguindanao have shared their observations on the siltation of the river and tributaries and identified the plantations to have aggravated the situation. There were also observations that in downstream areas such as parts of the Ligawasan Marsh are already extensively silted. The Mindanao River Basin Masterplan indicated that the ability of the Ligawasan Marsh as a natural retention basin preventing occurrences of flash floods in low lying areas has been reduced due to increased siltation.92

21. The clearing of forests to give way to plantations and the resulting increase in

sedimentation are considered as some of the factors that have caused heavy damages from flooding during typhoons and heavy rainfall events such as during Typhoon “Sendong” and “Pablo”. Rainwater infiltration into groundwater decreases as vegetation is removed, resulting in larger amounts of runoff overall and larger fluctuations of discharge93. Environmental NGOs have claimed that the continuing forest denudation due to the establishment of industrial plantations and the siltation of the rivers and wetlands have exacerbated the flooding in Mindanao.94

22. Water erosion is not the only form of soil loss. Clearing of vegetation can also increase

wind erosion.

Typical soil surface of banana plantation without erosion control Photograph courtesy of E. Panti, Unifrutti Philippines

Use of cover crops to limit soil erosion, Bukidnon

91

http://www.ifc.org/wps/wcm/connect/159dce004ea3bd0fb359f71dc0e8434d/WBG+Framework+and+IFC+Strategy

_FINAL_FOR+WEB.pdf?MOD=AJPERES 92

Woodfield Consultants (2013). Mindanao River Basin Integrated Management and Development Master Plan.

Situational Analysis Report Volume VIII 93

Jermar. Water Resources and Water Management. Developments in Water Science: 28. 1987. 94

http://newsinfo.inquirer.net/351665/green-groups-blame-palm-plantations

http://newsinfo.inquirer.net/351665/green-groups-blame-palm-plantations



Maintenance of native vegetation of the area, Bukidnon Maintenance of vegetation strips and buffer as erosion barrier, Bukidnon

Lower Water Availability 23. Water is an important production factor in industrial plantations. While some of the

plantations are rain-fed (palm oil and cassava), other crop production systems require irrigation. The sources of irrigation can be from groundwater abstraction or from surface water. The Mindanao River Basin Master Plan (2013) cited a study done by JICA in 1998 indicating that the projected water demand for 2025 is still far below the water resources potential of the Mindanao River Basin due to good rainfall within the region. However, the clearing of the upper catchments of the river basins, the conversion of forestlands, and the siltation of wetlands may have affected the recharge potential of the groundwater reservoirs and watersheds affecting the water availability in the near-term. In addition, the establishment of agribusiness ventures in the region may increase the demand for water.

24. DAF-ARMM has identified high value crops, including rubber, palm, coconut, cocoa,

coffee, banana, seaweed, mangosteen, durian, cassava. At this stage it is unclear how different crops would affect water availability.

Water Pollution (Area source from fertilizers and agrochemicals) 25. Excess fertilizers and other agrochemicals such as pesticides, herbicides, fungicides and

nematicides can become significant pollution risks particularly in a monocrop plantation. The contaminants may infiltrate into groundwater aquifers. In addition, run-off from a plantation especially during extreme precipitation events may carry residues of agrochemicals including excess nutrients such as nitrogen and phosphorous into downstream water bodies as well as adjacent lands.



Manual removal of weeds in Bukidnon banana plantation. Photograph courtesy of E. Pantu, Unifrutti Philippines

26. The most recent baseline on water quality was done in the course of preparing the

Mindanao River Basin Master Plan in 2013. A total of 12 sampling sites were established, of which seven (7) were within or very proximate to the Bangsamoro region. Thirteen quality parameters were tested including nutrients, heavy metals and pesticide residues. The results of tests for nutrients and heavy metals showed that the water samples were within the DENR standards while pesticide residues were not detected. Survey of literature also did not yield any reported notable incident of pollution events in bodies of water in the Bangsamoro region – whether eutrophication or consequent fish kill events. The test undertaken as part of the river basin master planning however is a one-off testing (capturing water quality data at one particular time only) and therefore cannot make any conclusions on water quality impacts from fertilizer and agrochemical use.

27. Fertilizer and pesticide use varies with the type of crop. Oil palm is at least five times more

productive in terms of vegetable oil per hectare than other oil bearing crops and has the lowest requirement for inputs of fuel, fertilizers and pesticides per tonne of production55.

Waste Management 28. The challenge in managing waste from farming operations is due to the nature of the

waste stream: mostly biomass and in large quantities. Companies are faced with problems related to where and how to dispose this waste stream. An added layer of complexity in the management and disposal of waste is the presence of toxic materials that are mixed with the waste stream. These materials can have pesticide residues posing significant concerns on contamination and exposure. One issue that was presented during the focus group discussion was poor management of the waste disposal facility where waste biomass was mixed with other materials containing pesticides. Access to the disposal facility was not restricted to the residents increasing the chances of exposure. There are some good practices in waste management such as the use of waste biomass for mulching. Waste plant materials are also retained in the field as additional organic content of the soil during fallow period.



Plant materials are left in the field during fallow period, Bukidnon Waste plant materials used as mulch to control weeds, Bukidnon

Health Impacts from Exposure to Pollution 29. One of the controversial issues related to plantations is the aerial spraying of pesticides.

This mode of application of pesticides is considered as having adverse effects on the health of residents near plantations due to increased exposure to toxic substances such as pesticides and other agrochemicals. Various interest groups including NGOs, the media, and communities have claimed the causal relationship between aerial spraying and cases of morbidity in the plantation areas. During FGDs with NGOs and communities in Maguindanao, there were allegations of aerial spraying that has caused skin diseases among the residents (In one of the discussions, there was even an insinuation linking possible exposure to pesticides due to aerial spraying to incidences of breast cancer in a Barangay).

30. There were landmark cases filed on the use of aerial spraying particularly in the

Compostela Valley that has further heightened the tension between the industry and the environmental advocacy groups. So far, the local governments of Bukidnon, North Cotabato, and Davao City have passed ordinances banning aerial spraying. The crop production systems in these areas present a viable way of controlling pest population without the use of aerial spraying. A notable case is the banana plantations in these areas where pesticides are applied (if necessary) through ground spraying – reducing the exposure of communities to the chemicals.

B. Downstream Environmental Risk Pollution 31. Pollution from secondary processing facilities consists of air pollution and wastewater

pollution.

32. The palm oil mill of Agusan Plantation Inc (Agumil) in Malabang, Agusan del Sur generates air emissions from boilers and incinerators, and wastewater effluent. Anaerobic digestion of oil mill effluent resulting to generation of methane. The captured methane is used as fuel for its boilers however during down time, the methane is flared. Wastewater treatment system uses activated sludge and the treated wastewater is reused for fruit washing



33. Similar waste management program has been observed in Matling Corporation in Lanao del Sur, La Frutera in Maguindanao and Unifrutti Philippines operations in Bukidnon. Notable practices in these organizations are the re-use of treated waste water for washing operations.

34. The sardine and tuna canning plants of Permex in Zamboanga also generate air emissions and wastewater. Permex uses local coal with low sulfur content to generate power. A gas flare operates at night to burn off methane. Wastewater is treated in a wastewater treatment plant (anaerobic treatment): BOD is reduced from 1,000 mg/L BOD in influent water to 100 mg/L in effluent water. The treated wastewater is discharged in the sea. The visit of the plant was during down time: the receiving water looked clean with fish. This indicates that any impacts from the operating plant on water quality and marine biota are likely short-term.

Waste Management 35. Another significant aspect of waste management in agribusiness is the generation of

waste in the downstream processing such as washing, milling and extraction, and purification.

36. The palm oil mill of Agusan Plantation Inc (Agumil) in Malabang, Agusan del Sur

generates several waste streams such as solid waste from empty fruit bunch and boiler fly ash. Agumil implements several measures to reduce the waste generated by the milling operations including the following:

The empty fruit bunch waste is an area of concern in terms of its disposal as it has high moisture content to be used as biomass fuel and has residual oil that maybe harmful as soil mulch.

Other solid wastes such as milled biomass are used as fuel for the boilers. Similar fuel will be used for the power plant that will be constructed.

37. Similar waste management program has been observed in Matling Corporation in Lanao

del Sur, La Frutera in Maguindanao and Unifrutti Philippines operations in Bukidnon. Notable practices in these organizations are the production of organic fertilizers by composting (in the case of La Frutera, vermicomposting).

38. Waste at the sardine and tuna cannery Permex consists of fish waste. This waste is used

to make fish meal and is sold in the market. Therefore no solid waste is produced.

C. Environmental Risk of Agribusiness Supporting Facilities

39. Agribusiness supporting facilities either expand primary production (such as irrigation systems, fish farming facilities, fishing boats) or provide utilities for primary production and facilitate secondary processing (power plants, wastewater treatment plants, waste treatment facilities, slaughterhouse).

40. Agribusiness supporting facilities that expand primary production have the same impacts as listed above under Upstream Environmental Risk.



41. Agribusiness supporting facilities that provide utilities for primary production and facilitate secondary processing have similar impacts to those listed above under Downstream Environmental Risk.



SOCIAL RISKS AND POTENTIAL IMPACTS V.

42. The social assessment surfaces both positive and negative potential social impacts of

agribusiness in the Bangsamoro territory.

43. The social risks and potential adverse impacts of especially large agribusinesses are caused by three main factors: problematic land administration system resulting into insecure land tenure and many land conflicts; remote location of many people, especially the IPs, and poor road system; and lack/inadequate access to basic services, including education.

A. Risks and Potential Negative Impacts Displacement of Indigenous People 44. The significant presence of indigenous people in all provinces of ARMM triggers World

Bank OP/BP 4.10 Indigenous People Safeguard Policy and the government‟s RA 8371 or the Indigenous People‟s Rights Act (IPRA) of 1997 and Muslim Mindanao Autonomy Act (MMAA) 241 or Tribal People‟s Rights Act of 2008 of ARMM. While the WB IP Safeguard Policy requires mere free, prior and informed consultation; IPRA and the Tribal People‟s Rights Act mandate free, prior and informed consent of indigenous people for any projects that would affect them. These safeguard policies seek to ensure that development interventions fully respect the dignity, human rights, economies and cultures of indigenous people.

45. Three situations of the IPs in ARMM put them at risk of being adversely affected especially

by large agri-business investments, namely: (i) insecure land tenure due to the non-implementation of IPRA in ARMM – except for Sama Bangingi in Basilan, IPs in other areas of ARMM do not possess legal instrument of their land tenure rights – and conflicting ancestral domain claims between Moro and non-Moro IPs in Maguindanao ; (ii) remote location from center of governance and market coupled with poor road infrastructures to/from their communities; and (iii) lack or inadequate access to basic services, including education, health, production development, market and legal assistance.

46. According to the IPs who participated in the focus group discussion for this ESIA, the

industrial tree plantation of Consunji‟s Magsaysay and Sons Company in Esperanza, Sultan Kudarat, which covered Barangay Tubak, Ampatuan, Maguindanao, is an example of how large agribusiness can displace them from their ancestral lands. The area was acquired by the company through an Industrial Forest Management Agreement (IFMA) granted by the DENR. Barangay Tubak is occupied and being claimed as ancestral domain by the Dulangan Manobo tribe. In the first years of the plantation, the IPs were prohibited from planting and harvesting in areas covered by the plantation. Their way to and out of their barangay was also blocked by the plantation such that they had to befriend the guards to get in and out of their area. In a report, the Human Rights Watch (1996) said:95

95

Human Rights Watch (1996). The Philippines human rights and forest management in the 1990s. Vol 8, No. 3

(C), April 1996. Retrieved February 10, 2015 from http://www.hrw.org/reports/1996/Philippi.htm.



“In June 1995, members of the Tiruray tribe complained to members of the press that guards hired by timber tycoon Victor Consunji had been trying to force them off their ancestral lands in Maguindanao. A tribal leader told a correspondent for the Manila-based newspaper Today that Consunji's Integrated Tree Products Incorporated (ITPI), which had applied for an IFMA for that area, wanted them to leave "so they can prove to the DENR that this is a no-man's land." Members of the tribe also alleged that guards for ITPI and for Cotabato Timberland Company Incorporated, another Consunji holding, had destroyed farmlands and strafed houses in the area to intimidate residents into leaving. The DENR office for the Autonomous Region of Muslim Mindanao decided in June 1995 not to act on the application, but only to forward it to Manila for consideration.

Guards working for Consunji operations have been linked to numerous abuses against indigenous populations in the late 1980s and 1990. During the late 1980s, a 3,000-man private army maintained by Consunji's Magsaysay and Sons company on an industrial tree plantation in Esperanza, Sultan Kudarat, was responsible for a three-month reign of terror against Teduay, Dulangan Manobo, and Lamabangian peoples who resisted the company's tree-planting activities. A series of fact-finding missions to the area in late 1989 and early 1990 documented widespread instances of extrajudicial killing, destruction of property, and forced evacuation of residents who refused to plant trees for the company.In one case, a resident of sitio Balatian, who returned to his village shortly after it was evacuated in late 1989, was captured by Magsaysay and Sons guards, tied hand and foot, beaten, and beheaded. In November of that year, Magsaysay and Sons' application to convert its ITPLA to an IFMA was granted by the DENR. Consunji was also granted other IFMAs for lands in Zamboanga City in 1991 and Sultan Kudarat in April 1993.”

Today, according to OSCC Director Fatima Kanakan, the situation of the IPs is better because Consunji‟s company has allowed the IPs to plant inside the plantation (in their claimed ancestral land) and their community has been selected by the ARMM Regional Government as an area of their convergence programs.

47. Moreover, their insecure land tenure, remote location, lack of education, poor organization,

and lack of track record in business operations may disqualify them from acquiring loans from Land Bank and lead to their further exclusion and marginalization.

48. In case they succeed to get loans, the expressed fear of the IPs is being left heavily in

debt because of: (i) business failure due to lack of support services as what happened to their planting of fruit trees under the National Greening Program of the DENR and lack of access to market due to poor road infrastructure; and (ii) capture of the benefits by a few due to poor organization and lack of education of many.

Involuntary Resettlement 49. The increase in demand for land may lead to land grabbing, displacement and increase in

land-based conflict. Large agribusiness may: seek for reconsolidation of lands distributed to small farmers under CARP; enter lands claimed by indigenous peoples; pressure small landholders with the help of traditional leaders to lease their lands at low cost; or deceive small landholders into entering unfair contracts that may lead to land dispossession. Some participants shared anecdotal evidences supporting these apprehensions, but cautioned



the ESAteam from mentioning names of companies and individuals due to need for verification.

Increase in Land Conflict 50. Entry of large agribusiness may exacerbate land conflicts; and intensified land conflict may

bring losses to agribusiness companies. According to DTI-ARMM, one example is the banana plantation of Del Monte Fresh Produce, Inc. (through its subsidiary Delinanas Development Corp.) in the Municipality of Datu Abdullah Sangki in Maguindanao. The agribusiness, which was expected to develop 3,000 hectares of banana plantations and generate 4,500 jobs, was suspended due to land conflict.

Insignificant Economic Improvement due to Low Wage Rate and Land Rent 51. Though large agribusiness has been cited for their contribution to job generation and

peace and development in their host communities, this improvement is insufficient to uplift the poor from poverty. One possible reason, which needs to be verified, is the wage rate of workers. A worker of La Frutera banana plantation in Buluan, Maguindanao said that daily paid workers of the plantation earn around PhP 127 to PhP 150 for an eight-hour work a day. This is way below the daily minimum wage rate of PhP 250 in ARMM set by the Regional Tripartite Wages and Productivity Board effective February 1, 2014. In the assessment of non-governmental organizations, the conditions of many people in the host communities of La Frutera, though undeniably better with the entry of the company, are generally still poor.

52. Furthermore, the banana plantation stands on more than 1000 hectare land, around 576 hectares of which are owned by the family of Datu Paglas and the rest by more than 200 landholders. These lands are leased to La Frutera for 10 to 20 years. The land rent at the start of the plantation in 1997 was Phil Pesos 3,500 per hectare per year. Today, the rent has increased to PhP12,000 to PhP15,000 per hectare per year or PhP 1,250 per hectare per month.

53. According to interviewed former contract growers of Dole South Cotabato, a worker in the company-managed asparagus farm earns a minimum wage of PhP 150 a day; while under contract growership, a worker, due to limited funds of the contract grower, earns only PhP 70 a day. Still, people accept the work due to lack of alternative jobs. Because of Dole‟s grading/classification system for harvested asparagus, contract growers end up earning less because most of their produce is given low grades and others rejected. With this system, in the analysis of the contract growers, the company in the end earns 90% of the whole income.

Less Participation and Benefit of Women in Agri-business 54. Females comprised the majority of the total population and working age population in

ARMM in 2010. In 2013, females continued to compose the majority of the working-age population. Yet, of those employed in ARMM in 2013, only 26.8% were females. Females also compose only 24.62% of the total agricultural workforce in 2012. Given these figures, gender-related development index in ARMM provinces expectedly show that the main area of gender disparity, using the framework of the Human Development Network as lens, in ARMM is in income generation. This problem may continue in HARVEST if with no proactive intervention.



Further disempowerment of the poor if with No Effective System for Receiving and Redressing Grievances from the Communities 55. When asked for empirical studies on the adverse effects of large agribusiness,

representatives of NGOs said that there have been no such initiative and people are afraid to air their complaints because of the general fear of earning the ire of dominant or powerful individuals and groups supporting these companies.

56. A group of participants in Basilan mentioned a problem where a former employee of Land Bank forced a borrower to sell produce to him/her as a condition of loan approval. Though this employee is no longer with Land Bank, the group suggested the inclusion of measures to avoid or immediately redress this kind of problem if encountered.

B. Positive Impact 57. In spite the risks and adverse impacts, positive contributions of agribusiness companies

were mentioned by interviewed stakeholders and those who participated in the focus group discussions for this ESIA.

Generated Jobs and Increased Economic Opportunities in Poor Communities

58. The stakeholders – management, workers, landowners, and civil society organizations in communities – of La Frutera, Inc. in Buluan, Maguindanao were one in saying that the economic situation of the people in the area as well as the revenue of the local government units improved with the banana plantation. Prior to the start of the agribusiness, the host communities were war-torn due to the armed conflict between government forces and Moro rebel groups and unsafe due to high incidence of crimes. The interviewed representatives of stakeholders agreed that the presence of the banana plantation diverted the attention of the people to productive economic activities. Thus, the case of La Frutera in Buluan, Maguindanao has been cited as a proof that the introduction of economic activities can help bring peace in conflict-affected communities.

59. The agribusiness of Matling Corp in Malabang, Lanao del Sur provides sure income to three types of workers: (i) daily paid workers of Matling Corp who each receives around P250 a day; (ii) workers for land preparation and planting who can be anyone in the barangay and are paid by hectare of land planted (the scoping team found most of these workers to be women; they said that they earn around PhP 200 to PhP 300 a day); and (iii) contract growers. The contract growers, on top of their earnings from contract growership, can also choose to work for the company during land preparation and planting.

60. Permex Producer and Exporter Corporation, a producer and exporter of canned sardines

and tuna, in Zamboanga City is able to provide sure income not only to small fishers (sources of fish) but also jobs to 975 to 1,500 workers, 75% of whom are women.

Restored Productivity of Lands Abandoned because of Armed Conflicts

61. According to the leaders of the Moro Returnees Farmers Multi-Purpose Cooperative, which is a partner contract grower of Agumil Philippines, Inc. in Buluan, Maguindanao, the 230 hectares of land that their 55 members have planted with palm oil were formerly abandoned due to armed conflict. The offer of Agumil to act as guarantor of the co-



operative‟s agricultural loan from Land Bank as well as to provide production assistance and sure market under a Production Technical Marketing Agreement (PTMA) drove them back to their lands in 2008. Today, the formerly abandoned area – located at Sitio Tukay Baluin of Barangay Lomoyon, Colombio, Sultan Kudarat – has become a productive and peaceful community again.

Enhanced confidence in farming due to improved farming technology and sure market

62. The major crop in the plantations of Matling Corp is cassava. Their partner is the Matling Multi-Purpose Co-operative (MPC), whose majority of members are 667 agrarian reform beneficiaries owning 1,716 hectares of the plantation. The agribusiness arrangement is that the Matling Corp is responsible for land preparation, planting, and marketing of processed products (i.e., starch); while the contract growers, many of whom are the members of the co-operative, are in-charge of plant maintenance, harvesting and transporting the produce to the processing plant of Matling Corp. The cassava plantation uses natural farming methods, such as, among others, resting the soil for a certain period of time and planting legumes as a means for improving the nitrogen content of the soil.

63. Interviewed former and present contract growers of Agumil Philippines, Inc.; Matling Corp. in Malabang, Lanao del Sur; Stanfilco, General Santos City; DOLE South Cotabato; and Pioneer Hi-Bred Phils., Inc. all mentioned exposure to farming technology for high value crops and the presence of sure market of produce as among the advantages of contract growership with agribusiness companies.

64. Contract growers in Polomolok shared that if farming is self-financed and the farmer has no loans from the company or banks, then the earning from agribusiness can be huge. An interviewed farmer said that he bought a car out of his earnings from papaya contract growership with Dole.

Added Social Services Provided to Host Communities

65. Some agribusiness companies, such as the La Frutera Inc. and Matling Corp., provide non-economic assistance to their host communities. For instance, community assistance of La Frutera includes, among others, the repair of school buildings, donation of water pumps and toilet bowls, and community health services. Matling Corp. runs feeding centers for children and community hospital, and supports public schools, among others. Matling Corp. also assists the barangay council of Matling to implement a barangay ordinance obliging young people 18 years of age and above to either study or work in the plantation. Thus, the barangay chair said that they have zero unemployment rate because those who cannot comply are asked to leave the barangay.



RECOMMENDATIONS VI.

A. Environmental Safeguards

1. Environmental and social management framework (ESMF) as the safeguard instrument. The HARVEST will finance projects and activities that have yet to be identified and therefore the predicted impacts cannot be determined at this stage. As the appropriate safeguard instrument in this circumstance, the ESMF sets out the principles, rules, guidelines and procedures to assess the environmental and social impacts. The ESMF will contain measures and plans to reduce, mitigate and/or offset adverse impacts and enhance positive impacts, provisions for estimating and budgeting the costs of such measures, and information on the agency or agencies responsible for addressing project impacts.

2. Each sub-project to be funded by the HARVEST needs to go through a screening process,

consistent with the World Bank, JICA, and LBP procedures, as may be defined in the environmental and social management framework (ESMF). If the proposed projects are required to undertake an EIA as permit conditions of the Government, the project proponent needs to provide sufficient details to meet these requirements according to the Government and LBP Due Diligence process. In particular, the project‟s impact on natural habitat, forest and physical cultural resources needs to be included.

3. Pest Management. For projects anticipated to have pest management issues typical of

mono-culture cropping systems, the requirements of the Bank‟s on Pest Management (OP 4.09) will need to be met. The policy on Pest Management highlights the need to promote integrated approaches in pest management particularly on Bank-financed projects. If the projects are known to promote the increased use of pesticides as well as the health and environmental risks, maintain unsustainable pest management practices, or will procure pesticides and application equipment, the proponents will be required to include pest management issues in the EA, develop a pest management plan (PMP), and the list and details of pesticides that are authorized for procurement under the project. It also becomes strategic for the project to avail, if feasible the Department of Agriculture‟s (DA) Integrated Pest Management (IPM) program, KASAKALIKASAN. The program trains, empowers and develops farmers‟ skills in making critical and informed decisions towards a more productive, profitable and sustainable crop production system. It employs an experiential learning approach through the Farmer Field Schools (FFSs) to enable farmers to practice IPM.

4. Forests. For projects that are expected to have impacts on the health and quality of forests

as well as the rights and welfare of its dependent communities and may bring about changes in the management practices of forests, the Bank‟s Policy on Forest (OP/BP 4.36) applies. Further assessments may be required from the project proponent including adequacy of land allocation for the management, conservation, and sustainable development of forests, including any additional allocations needed to protect critical forest areas. Other safeguards policies related to the protection of the welfare of communities including involuntary resettlement (OP/BP 4.12) and Indigenous Peoples (OP/BP 4.10) will also be applied.

5. Natural habitats. Projects involving establishment of plantations have potential to cause

conversion of natural habitats in the region. Identified during the scoping, there are 10 protected areas in the region with specific legal declarations totaling an approximate area



of 184,000 hectares. Some of the biggest watershed reservations and wetlands are located in this region. Where conversion is predicted, the requirements of the Bank‟s policy on Natural Habitat (OP 4.04) will need to be complied with including acceptable mitigation measures and the conservation of compensatory natural habitats.

6. Each project to be funded by the HARVEST needs to include a management plan, with the

level of detail appropriate to manage the identified impacts of the project. The management plan may include among others specific environmental mitigation measures such as soil and water conservation, waste management, and pollution control and minimization, where applicable and appropriate to the scale of the project and applicable pollution control standards. The mitigation measures will cover the various phases of the project including pre-construction, construction, and operation if the project involves infrastructure development.

7. The projects will need to comply with applicable legislations and regulations including

fertilizer and pesticide use, water use rights and permits, environmental clearance certificate and its approval conditions, licenses to operate fishing vessel/gear, fishing bans, etc. Where appropriate and feasible, proponents may need to take advantage of the benefits provided by environmental management systems (EMS) and certifications. Appropriate EMS and certifications provide companies with a systematic approach to compliance and a structured way to manage their environmental aspects and impacts. These provide companies with benefits that range from operational efficiency, management of risks, and improved compliance. For large scale projects, environmental management systems consistent with international certification such as ISO 14001, Rainforest Alliance, HACCP, FDA, Dolphin Safe and others can be considered.

8. Projects to be funded by the HARVEST need to consider and avoid areas that are known

to have geological hazards (topographical and soil) as outlined in the baseline conditions, such as: steep slopes and potential soil liquefaction. If that is not possible, additional mitigation measures should be implemented to avoid/minimize potential environmental impacts.

9. The experiences of the agribusiness companies that were studied for the HARVEST

project suggest the need to foster a keen sense of environmental responsibility at all scales. This entails creating an enabling environment that will incentivize good corporate citizenship, promote self -regulation and reporting. Promoting the adoption of environmental management systems can be a good platform to achieve greater sense of environmental responsibility among the enterprises.

10. The national and the regional government units may need to identify in detail the extent of

delegation of responsibilities and authorities related to environmental management. For example, the lack of clarity in the present set-up on the issuance of Environmental Compliance Certificates (ECCs) by the ARMM presents a significant hindrance in ensuring that the adverse environmental impacts of developments in the ARMM are managed and mitigated.

11. There are observed inconsistencies and deficiencies in the set of information that make up

the environmental baselines of the region – for example, the forestry and land statistics, biodiversity, and air and water quality. Adequate environmental baselines can support a robust monitoring and evaluation system that is critical for any safeguard mechanism.



12. The DENR-ARMM is faced with capacity issues as manifested by the implementation deficit of environmental laws and regulations. While it becomes imperative to strengthen the capacity of the DENR to enforce and implement environmental policies, the LGUs and private sector including the civil society will also have to be trained and empowered in environmental policies and safeguards. The LGUs are in the front-line in addressing the environmental impacts of development and at the same time tasked with the responsibility of mainstreaming environment and the local development.

B. Social Safeguards Given the cited social risks and potential impacts of HARVEST, the participants of the ESAactivities and the ESAteam recommend the development of the following social safeguard instruments: Indigenous Peoples Policy Framework 13. For subprojects located in IP ancestral lands/domains or projects affecting IPs (See Annex

A for locations of IPs in ARMM):

13.1 Require the following from sub-borrowers before approval or release of loans:

Compliance with the provision of the Indigenous People‟s Rights Act of 1997 and ARMM Tribal People‟s Rights Act of 2008 on seeking free, prior, informed consent of indigenous peoples (IPs) through securing a certification from the Office of Southern Cultural Communities (OSCC) for IPs in Maguindanao, Lanao del Sur, Sulu and Tawi-tawi and from the National Commission on Indigenous People (NCIP) for IPs in Basilan that the affected IPs in covered area(s) agree in consensus with a proposed sub-project; and

Provide measures, such as representation of IPs in multi-stakeholder structures that will be established for the HARVEST, that will ensure that the IPs in covered areas will benefit rather than be disadvantaged by the agribusiness;

13.2 Integrate in Component 2 of HARVEST, Capacity Building and Institutional

Development, Monitoring and Evaluation, the:

Development of capabilities of selected groups or associations or co-operatives of IPs in agri-business development and operations, and marketing (e.g., value/supply chain analysis). Conduct a consultation with IPs in the development of criteria for the selection of these groups.

Coordination with civil society organizations and other government agencies operating in areas of sub-borrowers for convergence of services to IPs;

Setting up of multi-stakeholder monitoring and evaluation structure in municipalities where large agribusiness companies and co-operatives will be supported to oversee the progress of agri-business and provide quick and appropriate interventions on problems or conflicts affecting the IPs.



Resettlement Policy Framework 14. The Resettlement Policy Framework will be prepared in case land acquisition for agri-

business will require transfer or resettlement of landholder(s) or occupants. This social safeguard instrument shall ensure that:

Resettlement is voluntary and necessary;

Affected landholders or occupants, regardless of their land tenure situation (informal or formal; with or without land titles) are consulted and agree with the terms of the resettlement (e.g., fair land lease/rental cost, just compensation and assistance, and others); the guiding principle is informed choice of affected landholders or occupants;

Multi-stakeholder structure is established to ensure compliance with fair and proper guidelines and procedures for land acquisition and resettlement, and to prevent exacerbation of existing land conflicts in affected areas; members of this structure shall be determined in consultation with the local government unit (LGU), and may include representatives of the LGU, civil society organizations (e.g., NGOs operating in the area or assisting affected small landholders and/or occupants, and people‟s organizations), concerned government line agencies (e.g., DENR, DAR, NHA, and/or others that have jurisdiction over or programs/projects related to affected land) and other groups or individuals (e.g., datu, respected elders, mediators, etc.) with knowledge of land conflicts in the area;

A sub-borrower submits a resettlement action plan, which reflects the above guidelines, and properly implements this plan prior to loan approval.

Grievance Redress and Social Accountability System 15. The purpose of installing a grievance redress and social accountability system is to

prevent emergence of new conflicts or exacerbation of existing conflicts by ensuring responsiveness of the Land Bank of the Philippines to grievances and concerns of stakeholders and fostering social accountability. This system may include:

Proactive guidelines or measures to prevent conflicts, such as: o Peace and Conflict Analysis (PCA) during the social preparation phase of an

agribusiness. In doing PCA, selected stakeholders: (i) assess if and how a proposed agribusiness can be conflict-creating or peace-enhancing; and (ii) propose measures to transform the agri-business into a peace-enhancing endeavour. The social safeguards team of the Land Bank should thus be trained in conducting the PCA.

o Identification and consultation with respected individuals (e.g., datu, elders, mediators) and groups/organizations (e.g., LGUs, NGOs, POs) that have knowledge of the social condition in the location of proposed agribusiness;

o Policy requiring compliance with minimum wage rate for agribusiness workers and observance of informed choice in entering into a lease agreement and resettlement arrangements;

o Information dissemination on this grievance redress system;



Procedures and mechanisms for filing, receiving and responding to complaints and grievances against HARVEST in general and against each supported agri-business;

Procedures for helping illiterate complainants; and

Grievance redress or conflict resolution/management structures and procedures. Gender Mainstreaming Framework 16. In compliance with Republic Act (RA) 9710 or the Magna Carta of Women of 2009, and

RA 7192 or the Women in Development and Nation Building Act of 1992, the Land Bank of the Philippines shall formulate its gender mainstreaming framework and strategy for HARVEST. The general objective is to promote meaningful participation and equitable benefit of women and men from the HARVEST and from supported agri-business subprojects.

17. Promotion of women‟s participation in HARVEST shall be in accordance with Muslim Mindanao Autonomy Act 280 or the ARMM GAD Code, RA 9710 or the Magna Carta of Women (MCW) and RA 7192 or the Women in Development and Nation Building Act.

18. The gender mainstreaming framework and strategy will push for the integration of gender

in the manual of operations of the Land Bank of the Philippines for HARVEST. This will include, among others, the:

Collection and analysis of sex-disaggregated data and gender-related information, including barriers (if any) to participation of women in agribusiness;

Development of a Gender and Development (GAD) plan for HARVEST that may include, among others: o The formulation of policy that will require lending centers of Land Bank to support

the gender mainstreaming strategy of HARVEST; o Capability development in gender sensitivity and gender mainstreaming

especially in a tri-people (Moro, Lumad, Christian) setting; o Ensuring participation of both women and men in multi-stakeholder structures for

consultation, and subproject monitoring and evaluation that will be established under the HARVEST;

o Allocation of at least 5% of the total budget of HARVEST for promoting gender equality and women‟s empowerment in agribusiness through supporting agri-business projects of selected/qualified women‟s associations (as part of Component 1) and training of agri-business operators in gender sensitivity and gender mainstreaming (as part of Component 2).

Inclusion of gender sensitive indicators (e.g., number of women and men who participate and benefit from the supported agribusiness subproject) in monitoring and evaluating supported agribusiness subprojects.

19. To ensure effective and coordinated implementation of this gender mainstreaming

framework, the HARVEST is proposed to:

Have a gender specialist or form a gender focal team for HARVEST;



Tap Mindanao CSOs with expertise in Gender and Development in orienting sub-borrowers on how to promote gender equity in agribusiness located in tri-people communities; and

Put up a reward system for most gender-sensitive agribusiness subproject. General Social Management Framework: Other Recommendations 20. In view of the history of poverty and conflict situation in ARMM and given their

apprehensions of large agribusiness companies, many participants from civil society organizations proposed the following:

Prioritization of social enterprises that are: primarily beneficial to the poor, respectful of the culture of the tri-people of ARMM (e.g., halal and Islamic culture, indigenous people‟s culture), conflict-sensitive, peace-enhancing, environment-friendly, promotive of diversified model of agriculture, and climate-resilient;

Development of the capacity of small sub-borrowers(e.g., small landholders or fishers associations or co-operatives; contract growers) in enterprise development, negotiating for fair contracts and marketing -- this may be incorporated in Component 2 of HARVEST;

Inclusion of measures to help potential small sub-borrowers comply with the lending requirements of Land Bank;

Tapping the services of civil society organizations in assisting small sub-borrowers in the areas of capacity development, provision of legal assistance when needed, and others;

Mobilization of other government agencies in the provision of support services, such as infrastructure development, access to water and electricity, marketing, and others that will make social enterprises more viable;

21. In compliance with the government‟s Full Disclosure Policy as prescribed in DILG

Memorandum Circular 2012-141, the annual accomplishment report, including gender accomplishment report, will be posted in publicly accessible and conspicuous places in lending centers of Land Bank, as well as in the website of the Land Bank not later than the end of January of the ensuing year.

Annex A. Locations and Population of Indigenous People in ARMM I. Tawi-tawi A. Municipality of Sibutu

BARANGAY ETHNO-TRIBE TOTAL OF POPULATION

2010 2011 2012

1. Ambutong Sapal Sama 1,460 1,478 1,496

2. Datu Amilhaja Jaafar Sama 1,130 1,144 1,158

3. Hadji Iman Bidin Sama 2,054 2,079 2,104

4. Hadji Moktal Sulayman Badjao-Sama 1,420 1,437 1,455

5. Hadji Taha Sama 1,182 1,196 1,211

6. Hadji Mohammad Gaya Sama 1,403 1,420 1,437

7. Ligayan Badjao-Sama 1,204 1,218 1,233

8. Nunukan Badjao-Sama 1,779 1,801 1,823

9. Sheik Makdum Sama 1,213 1,228 1,243

10. Sibutu (Poblacion) Sama 1,524 1,542 1,561



11. Talisay Sama 1,598 1,617 1,637

12. Tandubanak Sama 1,382 1,399 1,416

13. Taungoh Sama 1,275 1,290 1,306

14. Tongehat Badjao-Sama 1,063 1,076 1,089

15. Tongsibalo Badjao-Sama 1,090 1,103 1,117

16. Ungus-Ungus Sama 1,125 1,139 1,153

Sub-Total:

21,902 22,167 22,439

B. Municipality of Simunul


2010 2011 2012

1. Bakong Sama 2,509 2,540 2,571

2.Manuk Mangkaw Sama 4,158 4,209 4,261

3. Mongkay Sama 1,863 1,886 1,909

4. Tampakan Sama 2,584 2,616 2,648

5. tonggosong Badjao-Sama 1,387 1,404 1,421

6. Tubig Indangan Badjao-Sama 3,543 3,586 3,630

7. Ubol Sama 1,652 1,672 1,692

8. Doh tong Sama 1,695 1,716 1,737

9. Luuk Datan Sama 2,463 2,493 2,524

10. Maruwa Sama 758 767 776

11. Pagasinan Sama 1,279 1,294 1,310

12. Panglima Mastal Sama 1,698 1,719 1,740

13. Sukah Bulan Sama 1,592 1,611 1,631

14. Timundun Sama 4,586 4,642 4,699

15. Bagid Sama 795 804 814

Sub-Total: 32,562 32,959 33,363

C. Municipality of Sitangkai


2010 2011 2012

1. South Larap Sama 1,481 1,499 1,517

2.Sitangkai (Poblacion) Badjao and Sama 1,630 1,650 1,670

3. Tongmageng Sama 1,245 1,260 1,276

4. Tongusung Sama 1,832 1,854 1,877

5. Datu Baguinda Putih Badjao and Sama 2,065 2,090 2,116

6. Imam Sapie Badjao and Sama 1,680 1,700 1,721

7. North Larap Sama 2,134 2,160 2,184

8. Panglima Alari Badjao and Sama 4,312 4,365 4,419

9. Sipangkot Badjao and Sama 1,284 1,300 1,316

Sub-Total: 17,663 17,878 18,096

D. Municipality of South Ubian


2010 2011 2012

1. Babagan Sama 760 769 779

2. Bengkol Sama 824 834 844

3. Bintawlan Sama 1,205 1,220 1,235



4. Bohe Sama 914 925 936

5. Bubuan Sama 547 553 560

6. Bunay-Bunay Tong Sama 714 722 731

7. Bunay-Bunay Lookan Sama 1,350 1,366 1,383

8. Bunay-Bunay Center Sama 720 729 738

9. Lahad Dampong Sama 1,358 1,374 1,391

10. East Talisay Sama 709 717 726

11. Nunuk Sama 863 873 884

12. Laitan Sama 742 751 760

13. Lambi-Lambian Sama 986 998 1,010

14. Laud Badjao and Sama 729 738 747

15. Likud Tabawan Badjao and Sama 1,027 1,039 1,064

16. Nusa-Nusa Badjao and Sama 385 389 394

17. Nusa Sama 781 790 800

18. Pampang Sama 724 732 741

19. Putau Sama 369 374 379

20. Sollogan Sama 926 937 949

21. Talisay Sama 786 796 805

22.Tampakan Dampong Sama 1,011 1,023 1,036

23. Tinda-Tindahan Sama 1,017 1,029 1,042

24. Tong Tampakan Sama 981 993 1,005

25. Tubig Dayang Center Sama 1,024 1,036 1,049

26. Tubig Dayang Riverside Sama 1,057 1,070 1,083

27. Tubig Dayang Sama 1,139 1,153 1,167

28. Tukkal Sama 981 993 1,005

29. Unas-Unas Sama 671 679 687

30. Likud Dampong Sama 589 596 603

31. Tangngah Sama 812 822 832

Sub-Total: 26,701 27,020 27,365

E. Municipality of Tandubas


2010 2011 2012

1. Baliungan Sama 528 534 541

2. Kakoong Sama 1,420 1,437 1,455

3. Kepeng Sama 1,102 1,115 1,129

4. Lahay-Lahay Sama 718 726 735

5. Naungan Sama 985 997 1,009

6. Sailangan Sama 1,329 1,345 1,361

7. Sapa Sama 2,132 2,158 2,185

8. Silantup Sama 2921 2,957 2,993

9. Tapian Sama 1228 1,243 1,258

10. Tongbangkaw Sama 1527 1,545 1,563

11. Tangngah (Tang. Un. Ma.) Sama 1757 1,779 1,801

12. Ballak Sama 712 720 729

13. Butun Sama 1319 1,335 1,351

14. Himbah Sama 270 273 276

15. Kalang-Kalang Badjao and Sama 700 708 717

16. Salamat Sama 739 748 757

17. Sibakloon Sama 1014 1,026 1,039

18. Tandubato Sama 813 824 833




2010 2011 2012

19. Tapian Sukah Sama 924 935 947

20. Turuk Sama 928 939 951

Sub-Total: 23,066 23,344 23,630

F. Municipality of Sapa-Sapa


2010 2011 2012

1. Baldatal Islam Sama 1,142 1,156 1,170

2. Lookan Bannaran Badjao and Sama 1,589 1,608 1,628

3. Tonggusung Bannaran Badjao and Sama 4,683 4,741 4,799

4. Butun Sama 930 941 953

5. Dalo-Dalo Sama 1,352 1,369 1,386

6. Palate Gadjaminah Sama 996 1,008 1,020

7. Kohek Sama 357 361 366

8. Latuan (Suasang) Sama 879 890 901

9. Lakit-Lakit Sama 1,321 1,332 1,353

10. Tangah (Laum Sikubung) Sama 1,021 1,046 1,072

11. Tabunan Likod Sikubung Sama 640 649 659

12. Malanta Sama 1,381 1,398 1,415

13. Mantabuan Tabunan Sama 952 964 976

14. Sapa-Sapa (Poblacion) Sama 1,765 1,787 1,809

15. Tapian Bohe Sama 824 834 844

16. Look Natoh Sama 652 660 668

17. Lookan Latuan Sama 1,127 1,141 1,155

18. Nunuk Likud Sikubung Sama 800 811 820

19. Pamasan Sama 618 625 633

20. Sapaat Sama 620 627 635

21. Sukah-Sukah Sama 785 794 804

22. Tapian Bohe South Sama 687 696 704

23. Tup-Tup Banaran Sama 782 791 804

Sub-Total: 25,903 26,229 26,574

G. Municipality of Mapun (CDT)


2010 2011 2012

1. Boki Jama- Mapun 1,998 2,023 2,048

2. Duhul Batu Jama- Mapun 1,352 1,369 1,386

3. Kompang Jama- Mapun 1,012 1,024 1,037

4. Lupa Pula (Poblacion) Badjao and Sama 1,342 1,359 1,375

5. Guppah Jama- Mapun 1,985 2,009 2,034

6. Mahalo Jama- Mapun 2,147 2,174 2,200

7. Pawan Jama- Mapun 1,154 1,168 1,183

8. Sikub Jama- Mapun 1,328 1,345 1,361

9. Tabulian Jama- Mapun 1,072 1,086 1,099

10. Tanduan Jama- Mapun 1,121 1,135 1,149

11. Umus Mataha Jama- Mapun 2,095 2,121 2,147

12. Erok-Erok Jama- Mapun 813 823 833

13. Liyubud Jama- Mapun 2,547 2,574 2,610




2010 2011 2012

14. Lubuk Parang Jama- Mapun 874 884 895

15. Sapa Jama- Mapun 1,436 1,453 1,471

Sub-Total: 22,276 22,547 22,828

H. Municipality of Languyan


2010 2011 2012

1. Languyan Proper Badjao 540 546 553

2. Bas- Bas Proper Sama 980 992 1,004

3. Marang- Marang Badjao 380 384 389

Sub-Total: 1900 1,922 1,946

I. Municipality of Panglima Sugala


2010 2011 2012

1. Dundon Badjao 1,300 1,316 1,332

2. Tong Bangkaw Badjao 1,800 1,822 1,844

3. Buan Sama 1,500 1,518 1,537

4. Luuk Puntal Badjao 800 809 819

5. Bilatan Halu Badjao 1,289 1,305 1,321

Sub-Total: 6,689 6,770 6,853

J. Municipality of Turtle Island


2010 2011 2012

1. Taganak ( Pob) Jama- Mapun 1,200 1,214 1,229

2. Likud Bakkao Jama- Mapun 800 810 820

Sub-Total: 2,000 2,024 2,049

K. Municipality of Bongao


2010 2011 2012

1. Lakit - Lakit Sama 985 997 1,009

2. Lamion Badjao 2,128 2,154 2,180

3. Lato - Lato Sama 310 313 317

4. Luuk Tulay Badjao 126 127 129

5. Mandulan Sama 921 932 944

6. Pagasinan Badjao 240 243 246

7. Pakias Badjao 130 131 133

8. Pag- Asa Badjao 2,983 3,020 3,057

9. Tubig Tanah Badjao 1,500 1,518 1,537

10. Simandaguit Badjao 2,312 2,340 2,369

Sub-Total: 11,635 11,775 11,921

GRAND TOTAL (11 municipalities 149 barangays) 192,297 194,635 197,064

II. Sulu

MUNICIPALITIES/BARANGAY ETHNO-TRIBE TOTAL OF POPULATION




2012

A. Jolo

1. Takut-Takut Badjao 1,215

2. Bus-Bus Badjao 1,680

3. Tulay Badjao 742

Sub-total: 3,637

B. Indanan

1. Bato-Bato Badjao 537

2. Tanjung Badjao 480

3. Siongan Badjao 179

Sub-total: 1,196

C. Parang

1. Kannaway Badjao 210

2. Alulayag Badjao 136

3. Butun Badjao 250

4. Bawisan Badjao 90

5. Parang Proper Badjao 207

6. Silangkan Badjao 120

Sub-total: 1,013

D. Panglima Estino

1. Punay Badjao 652

Sub-total: 652

E. Panamao

1. Suuh Badjao 503

2. Siet Badjao 147

Sub-total: 650

F. Luuk

1. Sukuban Badjao 650

2. Tando Bato Badjao 435

Sub-total: 1,085

G. Kalinggalan Caluang

1. Pitogo Badjao 543

Sub-total: 543

H. Talipao

1. Tuyang Badjao 489

Sub-total: 489

I. Maimbung

1.Laud Kulasi Badjao & Sama 1,750

2. Maimbung Proper Badjao & Sama 635

Sub-total: 2,385

J. Pata

1. Saimbangun Badjao 680

Sub-total: 680

K. Omar

1. Capual Badjao 362

2. Lahing-Lahing Badjao 144

Sub-total: 506

L. Pandami

1. Manubol Sama 915




2. Sibaud Sama 830

3. Pandami Proper Badjao 535

Sub-total: 2,280

M. Patikul

1. Igasan Badjao 321

2. Litayon Badjao 140

3. Tanduh Badjao 170

Sub-total: 631

N. Panglima Tahil

1. Kabukan Badjao 750

2. Subah Bangas Badjao 433

3. Pangasinan Badjao 400

Sub-total: 1,583

O. Tapul

1. Kabingaan Sama 805

2. Kalang Badjao 278

Sub-total: 1,083

P. Lugus

1. Alu Duyong Badjao 350

2. Lugus Proper Badjao 258

Sub-total: 608

Q. Siasi

1. Tuhug-Tuhog Badjao 700

2. South Laud Sama 550

3. Punduhan Badjao 620

4. Laminusa Sama 2,200

5. Musu Badjao 645

6. Bulikullul Badjao 600

Sub-total: 5,315

R. Banguingui

1. Bakkaan Sama 525

2. Bangalaw Sama 470

3. Danao Sama 480

4. Dungon Sama 1,863

5. Kahikukuk Sama 347

6. Luuk Poblacion Sama 504

7. North Paarul badjao 261

8. Sigumbal Sama 345

9. South Paarul Sama 295

10. Tabialan Sama 510

11. Taingan Bakkao Sama 756

12. Tambun Bubu Sama 450

13. Tattalan Sama 307

14. Tinutungan badjao 400

Sub-total: 7,513

S. Pangutaran

1. Tonggasang Sama 587

2. Pandukan Badjao 413




3. Alubuna Sama 106

4.Suangbuna Badjao 470

5. Siipang Sama 450

6. Patotol Sama 300

7. Panitikan Sama 250

8. Keke Niog Sama 470

9. Pangdan Niog Sama 310

10. Bangkilay Sama 260

11. Lumadapdap Sama 315

12. Kawitan Sama 280

13. Simbahan Poblacion Sama & Badjao 1,400

14. Tubig Sallang Sama 158

15. Tubig Manok Sama 250

16. Lantong Babag Sama 190

Sub-total: 6,209

GRAND TOTAL (18 municipalities, 1 city, 73 brgys): 36,321

III. Maguindanao

MUNICIPALITY/BARANGAY ETHNO-TRIBE TOTAL POPULATION

2010 2011 2012

A. North Upi Sub-total: 26,736 27,067 27,399

1. Nuro ( Pob) Teduray

2. Darugao Teduray

3. Kaba- Kaba Teduray

4. Rempes Teduray

5. Bantek Teduray

6. Kibukay Teduray

7. Kibleg Teduray

8. Borongotan Teduray

9. Tinungkaan Teduray

10. Kinitaan Teduray

11. Mirab Teduray

12. Renti Teduray

13. Bayabas Teduray

14. Rifao Teduray

15. Sefegefen Teduray

16. Nangi Teduray

17. Bugabungan Teduray

18. Renede Teduray

19. Blensong Teduray

20. Ranao Teduray

21. Bungcog Teduray

22. Kiga Teduray

23. Ganasi Teduray

B. South Upi Sub-total: 23,952 24,249 24,546

1. Romongaob Teduray/Lambangian-

Manobo

2. Looy Teduray/Lambangian-

Manobo




2010 2011 2012

3. Kuya Teduray/Lambangian-

Manobo

4. Pandan Teduray/Lambangian-

Manobo

5. Pilar Teduray/Lambangian-

Manobo

6. San Jose Teduray/Lambangian-

Manobo

7. Lamud Teduray/Lambangian-

Manobo

8. Biarong Teduray/Lambangian-

Manobo

9. Bongo Teduray/Lambangian-

Manobo

10. Kigan Teduray/Lambangian-

Manobo

11. Itaw Teduray/Lambangian-

Manobo

C. Datu Odin Sinsuat Sub-total: 10,972 11,108 11,244

1. Tapian Teduray

2. Kusiong Teduray

3. Badak Teduray

4. Sibuto Teduray

5. Mompong Teduray

6. Broce Teduray

7. Awang Teduray

8. Labungan Teduray

9. Sifaran Teduray

10. Kinebaka Teduray

D. Datu Blah Sinsuat Sub-total: 6,352 6,431 6,510

1. Matuber Teduray

2. Tubuan Teduray

3. Nalkan Teduray

4. Tambak Teduray

5. Kinimi Teduray

6. Sedem Teduray

7. Sinipak Teduray

E. Ampatuan Sub-total: 8,381 8,485 8,590

1. Tomicor Teduray/Manobo-

Dulangan

2. Saniag Teduray/Manobo-

Dulangan

3. Kauran Teduray/Manobo-

Dulangan

4. Upper Malating Teduray/Manobo-

Dulangan

5. Tubak Teduray/Manobo-




2010 2011 2012

Dulangan

F. Datu Saudi

1. Kabinge Hill 224 Teduray 353

G. Datu Unsay

1. Kyamko Teduray 348

H. Datu Hoffer Sub-total: 7,976 8,076 8,174

1. Limpongo Teduray/Manobo-

Dulangan

2. Mahantao Teduray/Manobo-

Dulangan

3. Sayap Teduray/Manobo-

Dulangan

4. Talibadok Teduray/Manobo-

Dulangan

5. Tuayan Teduray/Manobo-

Dulangan

I. Guindulungan Sub-total: 1,329 1,340 1,369

1. Ahan Teduray

2. Datal Pandan Teduray

3. Fokol Teduray

J. Datu Paglas Sub-total: 200 255 252

1. Bunawan B'laan

K. Datu Abdullah Sangki Sub-total: 752 800

1. Talisawa Teduray

2. Mao Teduray

GRAND TOTAL (11 municipalities, 69 brgys): 85,898 87,763 88,884

IV. Lanao del Sur BARANGAY

ETHNO-TRIBE

TOTAL POPULATION

2010 2011 2012

A. Wao Sub-total: 26,736 27,067 27,399

1. Pagalongan Ivatan/Manobo/Higaonon/Teduray/Sangil

2. Buntongan

3. Christian Village

4. Buot

B. Balabagan Sub-total: 209 217

1. Igabay Teduray

2. Itil Teduray

GRAND TOTAL: 26,945 27,067 27,616

V. Basilan: (no data on municipalities and barangays; see separate paper on IPs in Basilan)



ETHNO-TRIBE 2010

1. Yakan 205,057

2. Sama Bangingi 50,000



Annex B : List of ARMM Natural Tourist Spots Maguindanao o Barurao Springs – Balabagan o Blue Lagoon (Margues Lagoon), Datu Odin Sinsuat o Bongo Diving Spot – Parang o Hot Spring – Benolen, Datu Odin Sinsuat o Iga-Bai Waterfalls – Balabagan o Kanapnapan Falls – Marogong o Kiga Falls, Sapalan Falls and Tubuan Falls – North Upi o Lake Balut - Sultan Kudarat o Lake Dapao – Pualas o Limpongo Hotspring - Shariff Aguak o Mabul Beach – Malabang o Maputi na Lupa – Masiu o Mt. Magaturing – Butig o Punta Beach - Parang o Sapalan Waterfalls Hotspring – Sapalan, Datu Odin Sinsuat o Sumpitan Falls – Balindong o Tumingay Lake - Sultan Kudarat Lanao del Sur o Agus River - Marawi City o Angoyao Hills o Bagang Beach - Marawi City o Barurao Springs - Balabagan o Iga-Bai Waterfalls - Balabagan o Islets Balindong, Tugaya, B.Kalawi and Binidayan in Lake Lanao o Kanapnapan Falls - Marawi City o Lake Dapao - Pualas o Sacred Mountain National Park - Marawi City o Signal Hill, Arumpac Hill & Mt. Mupo - Marawi City o Sumpitan Falls - Balindong o The Sleeping Lady Basilan o Balagtasan Falls – Malawani Island o Balas Beach - Lamitan o Block 35 Falls – Menzi Plantation o Bulingan Falls - Lamitan o Kumalarang Waterfall – Maluso o Malamaui Island – Malamawi Island o Palm Beach – Lamitan o Tabiawan and Busay Waterfalls – Malawani Island o White Beach – Malamaw Island Sulu o Bangas Island – Panglima Tahil o Jikiri Cave – Patian Island, Pata o Kabingaan Island - Siasi o Lahat-Lahat Island - Jolo



o Lake Panamao - Talipao o Lake Seit - Talipao o Laminusa Island - Siasi o Maubuh Beach - Jolo o Mount Datu – Indanan o Mt. Bud Daho - Patikul o Mt. Bud Tumantangi - Jolo o Pala River – Talipao o Quezon Beach o Tandu Beach - Patikul o Tapaan Island – Pandami o Tara Island - Siasi Tawi-Tawi o Biraddali Waterfalls – Languyan o Bolobok Cave - Bongao o Bongao Peak – Bongao o Gusong Reef - Cagayan de Tawi-Tawi (Mapun) o Kaban-Kaban Natural Swimming Pool – Simunul o La Island Beach - La Island o La Island Beach – Tubig, Indangan o Manuk – Mangkaw (Floating Island) – Manuk-Mangkaw o Marlboro Beach - Cagayan de Tawi-Tawi (Mapun) o Panampangan Island Beach - Sapa-sapa o Pearl Farm – Languyan o Salaug Island Beach – Sitangkai o Sangay Siapo Island – Simunul o Sibutu Natural Wildlife Sanctuary – Sibutu o Sikulan Island Beach – Sitangkai o Sukarno Beach - Simunul o Tahing-Tahing Beach - South Ubian o Tai-Tai Beach - Simunul, Sibutu o Tangu Beach - Panglima Sugala o Tawi-Tawi Beach (Sandbar) – Bongao o Turtle Islands – Taganak

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