Project Administration Manual -...

Project Number: 41220 Loan and/or Grant Number(s): October 2012

Republic of the Philippines: Integrated Natural Resources and Environmental Management Project

Project Administration Manual

Contents ABBREVIATIONS

I. PROJECT DESCRIPTION 1

II. IMPLEMENTATION PLANS 2

A. Project Readiness Activities 2 B. Overall Project Implementation Plan 7

III. PROJECT MANAGEMENT ARRANGEMENTS 11

A. Project Implementation Organizations – Roles and Responsibilities 11 B. Key Persons Involved in Implementation 15 C. Project Organization Structure 16

IV. COSTS AND FINANCING 19

A. Detailed Cost Estimates by Expenditure Category 21 B. Allocation and Withdrawal of Loan and Grant Proceeds 23 C. Detailed Cost Estimates by Financier 26 D. Detailed Cost Estimates by Outputs/Components 28 E. Detailed Cost Estimates by Year 30 F. Contract and Disbursement S-curve 31 G. Fund Flow Diagram 32

V. FINANCIAL MANAGEMENT 33

A. Financial Management Assessment 33 B. Disbursement 37 C. Accounting 40 D. Auditing 41

VI. PROCUREMENT AND CONSULTING SERVICES 42

A. Assessment of Procurement Capacity 42 B. Advance Contracting 42 C. Procurement of Goods, Works and Consulting Services 43 D. Procurement Plan 44 E. Consultant's Terms of Reference 49

VII. SAFEGUARDS 52

VIII. GENDER AND SOCIAL DIMENSIONS 64

IX. PERFORMANCE MONITORING, EVALUATION, REPORTING AND COMMUNICATION 66

A. Project Design and Monitoring Framework 66 B. Monitoring 69 C. Evaluation 69 D. Reporting 69 E. Stakeholder Communication Strategy 70

X. ANTICORRUPTION POLICY 72

XI. ACCOUNTABILITY MECHANISM 76

XII. RECORD OF PAM CHANGES 76

APPENDIXES 1. Implementation Arrangements 2. Detailed Cost Tables (Per Subcomponent) 3. INREMP Performance Based Grant System: Conceptual Framework 4. Implementation Arrangements and Funds Administration/Flow 5. Eligibility Criteria for Block Grant 6. National Government Accounting System for LGUs 7. Procurement Guidelines 8. Procurement of Goods and Services Checklist 9. Terms of Reference of Key Disciplines 10. Gender Action Plan 11. Suggested Report Formats 12. Suggested Formats for Progress, Status and Completion Reports 13. Sample Form of Auditor’s Opinion 14. Matrix of INREM Communication Plan

Project Administration Manual Purpose and Process

The project administration manual (PAM) describes the essential administrative and management requirements to implement the project on time, within budget, and in accordance with Government and Asian Development Bank (ADB) policies and procedures. The PAM should include references to all available templates and instructions either through linkages to relevant URLs or directly incorporated in the PAM. The Department of Environment and Natural Resources (DENR) is wholly responsible for the implementation of ADB financed projects, as agreed jointly between the borrower and ADB, and in accordance with Government and ADB’s policies and procedures. ADB staff is responsible to support implementation including compliance by DENR of their obligations and responsibilities for project implementation in accordance with ADB’s policies and procedures. At Loan Negotiations the borrower and ADB shall agree to the PAM and ensure consistency with the Financing and Grant agreements. Such agreement shall be reflected in the minutes of the Loan Negotiations. In the event of any discrepancy or contradiction between the PAM and the Financing and Grant Agreements, the provisions of the Financing and Grant Agreements shall prevail.

After ADB Board approval of the project's report and recommendations of the President (RRP) changes in implementation arrangements are subject to agreement and approval pursuant to relevant Government and ADB administrative procedures (including the Project Administration Instructions) and upon such approval they will be subsequently incorporated in the PAM.

Abbreviations

ADB = Asian Development Bank ADF = Asian Development Fund AFS = audited financial statements CHARMP = Cordillera highlands agricultural resources management project CQS = consultant qualification selection DBM = Department of Budget and Management DENR = Department of Environment and Natural Resources DMF = design and monitoring framework EA = executing agency EARF = environmental assessment and review framework EIA = environmental impact assessment EMP = environmental management plan ESMS = environmental and social management system GACAP = governance and anticorruption action plan GDP = gross domestic product IA = implementing agency ICB = international competitive bidding IEE = initial environmental examination IFAD = International Fund for Agricultural Development INREMP = integrated natural resources and environmental management project IPP = indigenous people plan IPPF = indigenous people planning framework LAR = land acquisition and resettlement LIBOR = London interbank offered rate LGU = local government unit NCB = national competitive bidding NGOs = nongovernment organizations PAI = project administration instructions PAM = project administration manual PIU = project implementation unit QBS = quality based selection QCBS = quality- and cost based selection RRP = report and recommendation of the President to the Board SBD = standard bidding documents SFM = sustainable forest management SGIA = second generation imprest accounts SOE = statement of expenditure SPS = Safeguard Policy Statement SPRSS = summary poverty reduction and social strategy TOR = terms of reference WA = withdrawal application

1

I. PROJECT DESCRIPTION

1. The Integrated Natural Resources and Environmental Management (INREM)1 Project (hereinafter referred to as Project) will address unsustainable watershed management in four priority river basins: (i) the Chico River Basin in the Cordillera Administrative Region, Northern Luzon; (ii) the Wahig–Inabanga River Basin on the island of Bohol; (iii) the Lake Lanao Basin in the Autonomous Region of Muslim Mindanao; and (iv) the Upper Bukidnon River Basin in Bukidnon, Northern Mindanao. With particular focus on indigenous peoples and resource-poor communities, the project will reduce and reverse degradation of watersheds and associated environmental services caused by forest denudation and unsustainable farming practices. It will also provide incentives to local communities, local government units (LGUs), and the Department of Environment and Natural Resources (DENR) for improving natural resource management by generating sufficient and tangible economic benefits. Mechanisms to achieve these project objectives include (i) payments for environmental services (PES) including water regulation, soil conservation, carbon offsets, and biodiversity; (ii) income generation from sustainable use and management and value-added processing of timber and non-timber forest products; (iii) improved natural resource productivity; and (iv) improved climate resilience in project watersheds.

2. Impact and Outcome. The Project impact will be improved condition of watersheds generating livelihood benefits in the four URBs. The project outcome will be increased rural household incomes and LGU revenues in selected watersheds in the four URBs.

3. Outputs. The Project outputs are consolidated based on extensive consultations with stakeholders and beneficiaries.

a. Output 1: River basin and watershed management and investment plans established. Indicative development plans (IDPs) will be developed for the four URBs to be adopted by regional development councils and/or provincial legislative councils. IDPs will be based on land capability assessments and participatory land use classification to identify appropriate management zones, and will be drawn up by the regional and provincial offices of the DENR in coordination with national agencies and LGUs.2 Watershed management plans (WMPs) will be prepared for the selected watersheds based on the IDPs. The WMPs will define and prioritize subprojects and establish a work program for implementation by LGU clusters and municipal development councils. The WMPs will take account of existing tenurial arrangements and treat ancestral domains as management subunits.3 A geographical information system (GIS) based database for performance monitoring will be established.

b. Output 2: Smallholder and institutional investments in conservation increased and URB productivity enhanced in the forestry, agriculture and rural sectors. Subproject investments will be undertaken within the 23 project watersheds based on outputs from river basin-wide planning (output 1). Interventions for watershed restoration and rehabilitation covering more than 325,590 ha will be implemented by the DENR to include community-based protection, reforestation and/or assisted natural regeneration, production forestry

1 ADB. 2009. Technical Assistance to the Republic of the Philippines for the Integrated Natural Resources and

Environmental Management Project. Manila. (TA 7109-PHI). 2 Integrated ecosystem management will be made operational within the priority watershed by assimilating science-

based land management regimes with local indigenous knowledge and practices. 3 As defined in the Indigenous Peoples Right Act, 1997.

2

including demonstrations on agroforestry and commercial plantations, and conservation farming. Livelihood improvement investments to be undertaken by municipal LGUs include (i) 645 kilometers of rural access roads and foot trails; (ii) communal irrigation systems servicing 3,040 ha; (iii) 275 units of potable community water facilities; (iv) a provincial trading and processing center supporting farming communities; and (v) seed funds for replication and/or expansion of tested and mature farming technologies.

c. Output 3: River basin and watershed management capacity and related governance mechanisms strengthened. The project will (i) assist LGUs to establish operational clusters at watershed and river basin levels; (ii) train LGUs and local community organizations on land resource assessments, land use planning, and watershed management and monitoring; (iii) provide support for technical extension-information, education and communication (TE-IEC); (iv) capacitate LGUs in carbon stock enhancement and land management practices to reduce carbon dioxide emissions and land-based pollution, and (v) support the establishment of community watershed protection brigades.

d. Output 4: Project management and support services delivered. The project will support the establishment of a national project coordination office (NPCO), regional project coordinating offices (RPCO), provincial project management offices (PPMO) and watershed management and project coordination offices (WMPCO) at the DENR. The NPCO will (i) coordinate consultant recruitment and supervision; (ii) conduct procurement of materials, equipment, and vehicles during project implementation; (iii) operationalize the project monitoring and evaluation system; (iv) mobilize resources for capacity building of DENR’s regional and provincial units and the LGUs; (v) consolidate the annual program and budgets received from provincial and regional levels; and (vi) conduct gender and safeguard monitoring and reporting.

II. IMPLEMENTATION PLANS

A. Project Readiness Activities

4. The Project readiness and its filters are shown in the tables below. Months Indicative Activities 3-4 6 7 8 9 10 11 12 Who responsible

Advance contracting actions √ DENR

Establish project implementation arrangements √ DENR, ADB

ADB Board approval √ ADB

Loan signing √ ADB, DOF

Government legal opinion provided √ DOF

Government budget inclusion √ DBM, DENR

Loan effectiveness √ ADB

3

Project Readiness Filters (As of Loan Negotiations)

Item Key Project Readiness Indicators

Stage of Project Preparation Remarks

Identification/ Conceptualization

Factfinding/Appraisal

Negotiations Within 1 month of Effectiveness

1 Project is consistent with MTPDP/MTPIP and CPS, and IS included into CIIP (for infrastructure project loans)

Confirmed

2 EA/IA-Related Assessments: a. Sector’s Institutional and

Political Economy Context b. Stakeholder Analysis c. Procurement Capacity

Assessment d. Financial management

capacity assessment e. Governance risk assessment

Done Done Done Done Done

3 Feasibility Study and/or Preliminary Design

Completed

4 Project Location Map Done 5 Safeguards:

a. Environmental Assessment b. Involuntary Resettlement

Assessment - Right-of-way (ROW) acquisition and Resettlement action plan (at least for 1st year) with specific attention to (i) sufficient budget or payment of ROW acquisition; (ii) availability of legal staff in ROW issues; and (iii) coordination with National Housing Authority on people relocation

c. Indigenous Peoples Assessment

Draft EARF reflected in PAM Draft RF reflected in PAM Draft IPPF reflected in PAM

6 Co-financing in Place Commitment letters received

7 Design and Monitoring Framework

4






a. Project M&E (cost, EA staff, consultants’ TOR, timing) arrangements

b. Baseline data

Done; reflected in RRP’s Appendix 1 Confirmed by EA Collected

8 Project Implementation Mechanism a. Analysis whether a PIU is

needed b. Identification of Project Director

and EA/IA project management team to be responsible for project implementation; definition go their project-related ToR, accountability mechanisms, and back-up arrangements to ensure continuity

c. Office, equipment, and other facilities for project implementation

Done

Confirmed and reflected in PAM

Identified; EA administrative orders issued

9 Procurement Issues a. Advance contracting of

goods, works and services b. Procurement plan (at least

first 18 months) with details on each contract’s schedule and approval flow chart

c. TORs and RFPs for consultancy contracts (including Project Management Consultants, if needed)

d. Bidding documents for all contracts on works and goods to be procured in the first 18 months

Included in Procurement Plan Included in Procurement Plan

Finalized and agreed with EA

10 Project Administration Manual Agreed

5






11 Counterpart Funding DBM certification of budget cover availability received

12 Philippines Authorities’ Approvals in Place a. Latest mission’s MoU signed

by DOF (with agreed policy matrix)

b. LGU-level projects: Regional Development Committee/MMDA (NCR projects), ARMM-RPDO (ARMM projects) endorsement

c. Projects or Bureaus or attached agencies: Endorsement from mother agency/ department level

d. GOCC/GFI projects: DOF-CAG review

e. For non-GFI relending projects: NCC review

In LGU-involved projects (for pre-identified LGUs): a. Approvals of city (Sangguniang

Panlungsod), municipality (Sangguiniang Bayan), and provincial (Sangguniang Panlalawigan) legislatures obtained

b. Sufficient budget allocation and clearly defined implementation schedule to be paid specific attention

c. Certificates of credit-worthiness obtained from BLGF (if MDFO/GFIs act as conduits

d. Fact-finding mission (or latest

Done Done Done n.a. n.a. Done Done

6






mission’s ) MoU signed by EA/DOF

e. Forward obligatory authority issued

f. NEDA Board confirmation of ICC approval

g. Monetary Board’s “in principle” approval

h. Special Presidential Authority to negotiate and sign loan agreement

i. Monetary Board’s final approval

j. Legal Opinion

Done Done Cleared by DBM Cleared by NEDA Cleared by BSP Cleared by DOF/OP Cleared by BSP

MTPDP=Medium Term Philippine Development Plan; MTPIP=Midterm Public Investment Program; CPS=Country Programming Strategy; IS= Investment Strategy; CIIP=Comprehensive and Integrated Infrastructure Program; EA/IA=Executing Agency/Implementing Agency; EARF=Environmental Assessment and Review Framework; RF/RP=Resettlement Framework/Resettlement Plan; IPPF/IPP=Indigenous People Planning Framework/Indigenous Peoples Plan; PIU=Project Implementation Unit; DBM=Department of Budget and Management; DOF=Department of Finance; MoU=Memorandum of Understanding; MMDA=Metro Manila Development Authority; NCR=National Capital Region; ARMM-RDPO=Autonomous Region of Muslim Mindanao-Regional Planning and Development Office; GOCC=Government Owned of Controlled Corporations; GFI=Government Financial Institutions; DOF-CAG=Department of Finance’s Corporate Affairs Group’ NCC=National Credit Council; LGU-Local Government Unit; BLGF=Bureau of Local Government Finance under Department of Finance; NEDA=National Economic and Development Authority; BSP=Bangko Sentral ng Pilipinas; OP=Office of the President

7

B. Overall Project Implementation Plan

Activities

1. River basin and watershed management plans established

1. NPCO design and establish GIS-based database for performance monitoring, including the training of DENR regional and prov incial and LGU staff in the four selected riv er basins by end month 24

→ → → → → → → →

2. NPCO acquires remote sensing data and completes baseline assessment of land uses in URBs including ground truthing by end of month 24

→ → → → → → → →

3 NPCO prepares detailed v ulnerability and adaptation assessment plans in the four selected riv er basins by month 18.

→ → → → → →

4 NPCO, through the PPMO and WMPCO, assesses land use capability and participatory land use classification, zoning, and adoption in four selected riv er basins by month 24.

→ → → → → → → →

5 NPCO, dev elops and implements carbon stock baseline assessments in the four selected riv er basins by month 24.

→ → → → → →

6. PPMO delineates and demarcates forest boundaries in consultation w ith local communities from month 18 to month 80.

→ → → → → → → → → → → → → → → → → → → → →

7 LGUs issue enabling legislativ e instruments as prescribed in the URBMPs, including appropriate tenure and PES, for local community participation in INREM in the four selected riv er basins by month 60.

→ → → → → → → → → → → → → → → → →

2. Smallholder and institutional investments for conservation increased and livelihoods improved in the URBs 1. RPCO, prepares project plans including inv estment strategies for priv ate sector participation, based on inv entories and analy ses for conserv ation areas and buffer zones to support dow nstream inv estments in the four selected riv er basins by month 24.

→ → → → → →

2 WMPCO implements project plans in selected riv er basins by subprojects in accordance w ith agreed land use classification and zoning from month 18 to month 84

→ → → → → → → → → → → → → → → → → → → → → →

and management of protected areas w ith community participation; and forest-based sustainable liv elihoods and rural infrastructure rehabilitation and improv ements in production forest areas and agricultural land from month 18 to month 84.

→ → → → → → → → → → → → → → → → → → → → → →

4 PPMO, based on the agreed criteria, selects additional subprojects, undertake necessary assessment for preparation of subproject feasibility studies consistent w ith prescriptions in the URBMPs in four selected riv er basins, from month 18 to month 48.

→ → → → → → → → → →

5 Participating LGUs prov ide infrastructure maintenance funding and carry out routine O&M starting from month 49 (one y ear after completion of infra projects).

→ → → → → → → → → → → →

A. DMF

Yr 0 2012

Year 7 2019

Yr 8 2020

Year 1 2013

Year 2 2014

Year 3 2015

Year 4 2016

Year 5 2017

Year 6 2018

8

Activities3. River basin and watershed management capacity and related governance mechanisms strengthened

1 NPCO assesses capacity building needs in the project area, and complete training for staff concerned by end of month 18 → → → → → →

2 NPCO dev elops TE-IEC program for each selected riv er basin by end of 18 → → → →3 PPMO undertakes field implementation of TE-IEC in the four selected riv er basins from month 18 to month 84 (including aw areness raising)

→ → → → → → → → → → → → → → → → → → → → →

4 NPCO implements capacity building and skills transfer training ev ents cov ering natural resource management, climate change, mainstreaming of biodiv ersity , PES, and REDD

→ → → → → → → → → → → → → → → → → → → → → →

4. Project Management and Support Serv ices deliv ered1 WMPCO enforces regular and effectiv e rules and regulations required for effectiv e implementation of URBMP through field v isits and patrolling in the four selected riv er basins from month 19 to month 84.

→ → → → → → → → → → → → → → → → → → → → → →

2. NPCO carries out regular M&E and integrates results in the 6-monthly and annual project progress reports

→ → → → → → → → → → → →

3 NPCO formulates terms of reference and carries out relev ant studies required for project deliv ery ; feeds in results for project improv ement and enhancement by end of month 3

→ →

4 NPCO carries out and documents gender- and indigenous-peoples-related safeguard studies (including monitoring of inv oluntary resettlements) and prepare annual reports for dissemination and inclusion in project annual progress reports

→ → → → → → → → → → →

B. Management Activities

→ →

1. Official designation of Project officers and staff; definition of functions and delineation of responsibilities of the v arious play ers from central office dow n to the PENRO/CENRO lev el. (Issuance of Department Adminstrativ e Order)

→

2. Orientation and planning w orkshops: national, regional and PENRO/CENRO -LGU lev el

→ → → →

3. Recruitment of Project assisting professionals (7 NPCO based); 12 ex tension w orkers, 3 per URB)

→ → → →

2. Procurement of satellite imagery ; aerial photography ; equipment and serv ices: → → → → →

1 Inv entory of sattelite data already av ailable at and in the process of procurement by DENR, NAMRIA, DA and other gov ernment agencies.

→ →

2 Preparation of the list and specfications of sattelite imagery and aerial photography

→

3. Preparation/finalization of TORs and Specifications for Consulting Serv ices, and procurement documents & announcements

→ →

4. Inv entory of GIS softw are and hardw are av ailable at DENR(FMB), Regional/Prov incial Offices and NAMRIA

→

Year 6 2018

Year 7 2019

Yr 8 2020

Year 1 2013

Year 2 2014

Year 3 2015

Year 4 2016

Year 5 2017

1. Mobilization of staff & consultants, setting up Project organization at national, regional, prov incial & municipal lev els

Yr 0 2012

9

Activities5. Preparation of list of equipment, its specifications and procurement documents & announcements

→ →

6. Procurement of sattelite imagery ; aerial photography → → →

7. Procurement of Consultancy Serv ices → → → →

8. Procurement of equipment (GIS, ICT, v ehicles and other office equipment for Regional/prov incial DENR offices and participating LGUs)

→ → → → → → → → →

9 Preparation of TORs/specifications for the conduct of training or capacity building activ ities for: (a) conserv ation farming; (b) fund administration (project, grant, and liv elihood funds); (c) IEC for technical ex tension

→ → → →

10. Procurement of v ehicles and computers for the participating LGUs → → → → → → → → →

→ → → →

1 Manual for Riv er basin/w atershed management to guide the WMCs on land capability & participatory land use classification, zoning, approv al and adoption (including criteria/standards and guidelines for preparation and acceptability of URBMPs/WMPs)

→ → → →

2 Criteria for selection, assessment and approv al for subprojects for Component 2 of INREMP, Smallholder/imstitutional inv estments; namely :

→ → → →

a. community -based protection b. afforestatioon/ reforestation c. assisted natural regeneration d. sustainable forest management e. demo commercial forest plantation f. agro forestry (w ith community participation) g. rehabilitation or improv ement of rural access roads /foot trail h. communal irrigation sy stems i. potable community w ater facilities j. trading center (in Chico URB) k. conserv ation farming training and liv elihood support3 Criteria and procedures for LGU participation → → → →4 Dev elopment and adoption of mechanism for the use of block grant for forest protection and funding support for community liv elihood through conserv ation farming

→ → → → → →

4. Dev elopment of training/capacity building acitv ities → → → → → →

Counduct of training courses: → → → → ∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞→

5. Env ironmental management plan activ ities1.Capacity building → → → → → → → →2. Monitoring → → → →

3. Preparation/finalization (formulation or adaption) and adoption, through administrativ e issuances, manuals, criteria, standards, guidelines and/or procedures for approv al and undertaking of sub-projects, activ ities, funds/grants administration, particularly for but not limited, to the follow ing:

Yr 0 2012

Year 1 2013

Year 2 2014

Year 3 2015

Year 4 2016

Year 5 2017

Year 6 2018

Year 7 2019

Yr 8 2020

10

Activities6. Gender action plan kety activ ities

1. Participation on establishment of committees → → → → → → → → → →2. Capacity building → → → → → → → → →

7. Communication strategy key activ ities1. Internal communication → → → → ∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞→

2. Technical communication → → → → ∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞→

3. Adv ocacy and public communication → → → → ∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞→

4. Dev elopment support communication → → → → ∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞→

8. Annual/Mid term rev iew → → → → → → → → → → → →1. Assessment of project progress in the selected riv er basin → → → → →2. Assessment of PBGS implementation → → → →

Project Completion1. Upon termination/completion of Project, turnov er of Project assets to LGUs or DENR as appropriate or as agreed upon.

→ → → →

2. Preparation & submission of Project Completion Report → → →

3. Final Accounting & Auditing of funds/disbursements → → → →

4. Ev aluation of Project results and impacts → → →

Year 5 2017

Year 6 2018

Year 7 2019

Yr 8 2020

Yr 0 2012

Year 1 2013

Year 2 2014

Year 3 2015

Year 4 2016

11

III. PROJECT MANAGEMENT ARRANGEMENTS

A. Project Implementation Organizations – Roles and Responsibilities

Project implementation

organizations Management Roles and Responsibilities

Executing agency –

Department of Environment & Natural Resources (DENR)

Supervision and responsibility for over-all administration and management of the Project. Administer imprest accounts for proceeds from ADB loan, IFAD loan, GEF grant and CCF grant.

Project specific

management body (either stand-alone or within the executing agency) – INREMP National Project Coordinating Office (NPCO)/DENR-FMB

The NPCO will be based at the DENR-Forest Management Bureau (FMB) and shall be headed by the FMB Director, to be assisted by a Deputy Project Manager. The FMB Director will facilitate coordination across the technical bureaus. NPCO will be staffed with seconded DENR personnel with appropriate skills and expertise related to INREM.

The NPCO will lead and oversee Project implementation in collaboration with various operating units of the DENR and Local Governments concerned, and in close coordination with oversight agencies and ADB.

Ensure timely provision of logistics for all aspects of Project implementation;

Lead the conduct of necessary policy analyses and policy adjustments to support INREM;

Mobilize resources for capacity-building requirements of LGUs for URB planning and implementation;

In terms of project components, responsible for Component D: Project Management and Support Services, with the assistance of consultants, other government agencies, and non-government institutions/organizations;

Coordinate with DENR-FASPO and FMS in the consolidation of expenditure reports and preparation of Statement of Expenditures (SOEs).

Project Steering

Committee – National Project Steering Committee (NPSC)

NPSC will provide policy guidance for the smooth implementation of the Project.

Chaired by a DENR Undersecretary, with membership composed of Undersecretaries of oversight and relevant Departments and senior

12

Project implementation organizations

Management Roles and Responsibilities

representatives from concerned agencies and chairmen of leagues of LGUs.

Membership: Undersecretaries of the Department of Agriculture (DA), Department of Agrarian Reform (DAR), Department of Budget and Management (DBM), Department of Interior and Local Government (DILG), senior representative from National Economic and Development Authority (NEDA), Chairman of the National Commission on Indigenous Peoples (NCIP), Chairmen of the Leagues of Provinces, Municipalities and Cities within the INREMP regions.

Interagency Technical

Working Group (TWG) Provide support the NPSC/NPCO.

Coordinate their respective agencies’ work to support Project implementation, and the necessary interagency linkages and coordination.

The TWG shall be chaired by the NPCO Deputy Project Manager and co-chaired by the member-representative from Protected Areas and Wildlife Bureau (DENR-PAWB). Members shall be designated technical staff from concerned departments and other operational agencies/units of the DENR.

Review the Consultants’ outputs.

Regional Project Coordination Office (at DENR Regional Offices)

Coordinate with national government agencies at regional level. The RPCO will be based at the DENR-Regional Office and shall be headed by the Regional Executive Director, to be assisted by the RTD (FMS or PAWS concerned).

With NAMRIA technical guidance, lead the conduct of land use assessment and URB management planning

Administer project subaccounts for each of the sources of funds received for undertaking project activities.

Responsible for the full supporting documentation of disbursements made from their project subaccounts and submitting the original to NPCO/DENR-FMB and safekeeping copies of such documents.

13



DENR - Foreign

Assisted and Special Projects Office (FASPO) and Financial Management Services (FMS)

Administer the Project funds/accounts;

FMS shall download funds to FMB (NPCO), DENR Regional and Provincial offices and other implementing units, upon recommendation by the NPCO;

FASPO, through its Accounts Management Division, shall consolidate reports of expenditures; prepare and submit Statement of Expenditures (SOE) and Withdrawal Applications (WAs) to ADB;

Prepare and submit proposals, reports and requests for the annual appropriation, budget allotment advices and notices of cash allocations for the Project to DBM;

Coordinate and liaise with oversight national government agencies and funding institutions (ADB, IFAD and GEF) regarding the administration of the Project Funds.

FASPO, through its Procurement Unit, will be responsible for undertaking procurement activities of the project.

Provincial Project

Management Offices (PPMO) in each of the participating provinces under the DENR Provincial Environment and Natural Resources Office (PENRO)

Provide guidance and technical support to implementing provincial LGUs;

Coordinate and undertake liaison works among agencies at the provincial level;

Coordinate the implementation of URB forest conservation, protection and rehabilitation, and the execution of technical extension and IEC.

Watershed

Management and Project Coordination Offices (WMPCO) covering project sites/municipalities under the DENR- Community Environment and Natural Resources Office (CENRO)

Coordinate the implementation of rural rehabilitation and improvement works by municipal LGUs;

Coordinate the implementation of models for forest-based investments by communities, POs and IPOs, and private investors: agroforestry, conservation farming, forest plantations, sustainable forest management, including REDD and climate change adaptation activities.

14



Implementing agency 1

- Municipal Development Fund Office, Department of Finance

Coordinate with DENR/NPCO on the implementation of LGU projects qualified to be funded from the INREMP loan proceeds.

Act as conduit for funding projects to be implemented by the LGUs.

Administer the imprest accounts for loan proceeds from ADB and IFAD.

Prepare and submit withdrawal applications; consolidate expenditure reports and prepare and submit SOEs.

Implementing agency

2- Department of Agriculture

Coordinate with DENR/NPCO on the implementation of LGU projects in CHARM 2 Project areas within Chico River Basin qualified to be funded INREMP loan proceeds.

Release funds to participating LGUs.

Administer the imprest account for loan proceeds from ADB.

Prepare and submit withdrawal applications; consolidate expenditure reports and prepare and submit SOEs.

ADB Provide guidance to EA and oversee

implementation.

Orientation to EA and Implementing Agencies

Disbursement of ADB Loan and Grant Proceeds

Administer ADB and IFAD Loan and GEF and CCF Grants

IFAD Providing co-financing for INREMP.

Supervision of the implementation of the ADB-provided co-financing for CHAMRP2.

Participation in the ADB supervision missions for INREMP.

15

B. Key Persons Involved in Implementation

Executing Agency Agency Name Atty. Analiza Teh

Undersecretary/ Chief of Staff 929 66 26 local 2249 Visayas Avenue, Diliman, 1100 Quezon City, Philippines [email protected]; [email protected]

ADB

Environment, Natural Resources and Agriculture Division Southeast Asia Department

Javed H. Mir Director Environment, Natural Resources and Agriculture Division Southeast Asia Department Tel. No. +632 632 6234 [email protected]

Mission Leader Pavit Ramachandran Environment Specialist Tel. No. +632 632 50 54 [email protected]

IFAD Asia and the Pacific Division Programme Management Department

Youqiong Wang Country Programme Manager Asia and the Pacific Division Programme Management Department IFAD Via Paolo di Dono 44 00142 Rome, Italy Tel. +39 06 5459-2076 Fax + 39 06 5459-3076 E-Mail Address: [email protected] Yolando C. Arban Country Programme Officer, Philippines International Fund for Agricultural Development (IFAD) Philippines IFAD Country Office 30th Flr., Yuchengco Tower 1 RCBC Plaza, 6819 Ayala Avenue Makati, Metro Manila, Philippines Tel. +632.9010230 Fax. +6329010200/8897177 E-Mail: [email protected]

16

C. Project Organization Structure

IMPLEMENTATION ORGANIZATION CHART

National

DENR Secretary Undersecretary (PSC Chair)

National ProjectSteering Committee

(NPSC)

Forest Management Bureau

National Project Coordination Office (NPCO)

Interagency Technical Working Group

(TWG)

Regional

DENR Regional OfficeRegional Executive Director

Regional Project Coordination Office

Regional Development Council (RDC)

DENR PENROProvincial Project

Management Office (PPMO)

Provincial INREM Councils (PINREM‐C)

Project

Consultants

Provincial Governments(P/LGU)

DENR CENRO

Watershed Management & Project Coordination Office

Municipal Governments(M/LGU)

Watershed Management Councils

Communities and Organizations(CBOs, IPs, POs, NGOs, Private Sectors,

Institutions) Implementation of Project sub‐

components and activities

Provincial

Watershed

Municipal Cluster

Sub‐project/ site level

Technical A

dvice and Capacity‐Building

DENR‐ FASPO andFMS

Line Function Technical Assistance, Advisory & Coordination

17

5. The Department of Environment and Natural Resources (DENR) will be the Executing Agency (EA) and will assume full supervision and responsibility in the administration and management of the Project. An interagency National Project Steering Committee (NPSC), chaired by a DENR Undersecretary, will be established at the DENR Central Office (CO) to provide policy guidance for the smooth implementation of the Project. A National Project Coordination Office (NPCO)4 will be the main Project implementing unit of the DENR as Executing Agency. The NPCO shall be assisted by an inter-agency Technical Working Group (TWG). A pool of Project Consultants5 commissioned by the Project shall provide services for: (a) developing the technical expertise in DENR, other NGA, and LGU staff to scientifically guide policy-makers and ENR stakeholders in managing river basin and watershed resources; (b) establishing the knowledge-based decision-support systems and Information infrastructure for environment and natural resources management in river basin context.

6. Other implementing agencies will be Municipal Development Fund Office (MDFO) and Department of Agriculture (DA). MDFO will administer the funds for rural infrastructure improvements which will be implemented by the municipal LGUs except for those covered by the Cordillera Highland Agricultural and Resources Management (CHARM) Project which will be administered by DA.

7. Foreign Assisted and Special Projects Office (FASPO) and the Financial Management Service (FMS) of the DENR shall coordinately administer the Project funds and accounts. FASPO, through its Accounts Management Division, shall be responsible for the preparation and/or consolidation and submission of Withdrawal Applications (WAs) and SOEs to ADB. FMS, in coordination with FASPO, shall be responsible for the preparation and submission of the Project’s annual/3 or 5 year budget proposals and requests for release of Allotment Advices and Notices of Cash Allocations to DBM. FASPO, through its Procurement Unit, shall be responsible for the timely procurement of goods, works and services, including consultancy services, for the Project. FASPO shall initiate preparatory activities indicated in the more detailed description of the implementation arrangements presented in Appendix 1. FMB shall assign a counterpart staff in the FASPO, Procurement Unit to coordinate INREMP’s procurement requirements with NPCO.

8. At the regional level, there shall be a Regional Project Coordination Office. The Regional Development Councils shall provide policy guidance for the Land Use Assessment, Land Capability Analysis, and Management Planning work by ensuring (a) that the analyses and land management planning processes are consistent with the regional development objectives; (b) the process and the outputs are legitimized by RDC supporting decisions.

9. At the municipal level, the following situations exist: (1) a watershed is under the full administrative jurisdiction of a single municipality; (2) a watershed straddles across administrative boundaries of several municipalities. In both cases, a multi-sectoral Watershed Management Council (WMC) shall be established. The WMC shall be the forum for arriving at consensus on land-use and natural-resource-based investments within their watershed. The legitimacy of these WMCs would be strengthened if the municipal governments concede to the advisory ‘authorities’ of these WMCs; a national legislation or Presidential Executive Order would strengthen the participatory governance influence of these WMCs.

4 All DENR Project units at all levels shall be composed of seconded regular staff of appropriate expertise. Depending on the needed workloads and expertise as identified by the respective project coordinators at various levels, these staff may be seconded as full-time or part-time. This is to ensure institutionalization of Project skills and expertise that will be developed. Additional contractual staff may be engaged only if the skills required are not available within the DENR.

5 Refer to Section VI.E. Consultants’ Terms of Reference

18

10. The administrative and technical focal point for the project at the watershed level is the Watershed Management and Project Coordination Office based at the DENR-CENRO. This office will oversee the implementation of project activities and demonstration projects by Communities and Organizations (CBOs, IPs, POs, NGOs, Private Sectors, and Institutions). Its administrative operations shall be guided by the DENR functional rules regarding INREMP. In terms of prioritizing projects, locating project investments sites and similar concerns, the WMPCO shall closely coordinate with the M/LGUs in the watershed, and the Watershed Management Council, particularly in cases where conflicts among stakeholders occur.

11. The technical resources of the P/LGUs and the M/LGUs (e.g., LGU planning and development offices, provincial and municipal agriculture offices, LGU environmental management offices, engineering departments, etc.) are expected to be mobilized by the respective LGUs in support of on-ground INREM project implementation. The Project will support incremental operating requirements of these LGUs in this regard.

1. Lake Lanao and ARMM 12. As a protected area, Lake Lanao River Basin (LLRB) falls within the jurisdiction of DENR -Region X. However, its geographic location falls entirely within the province of Lanao del Sur which within the jurisdiction of the Autonomous Region of Muslim Mindanao (ARMM). With the overlapping jurisdiction over the area, DENR Region X shall coordinate the implementation of the Project with DENR-ARMM and the LGUs. The details of the implementation arrangements for LLRB shall be described in a Memorandum of Agreement (MOA) between/among DENR- Region X and DENR-ARMM and the Province of Lanao del Sur. The duties and responsibilities of each entity involved shall be specified in the said MOA. 13. For LLRB, INREMP’s PPMO shall be based at Lanao del Sur Provincial government, Environmental and Natural Resources Office (ENRO). The Provincial Government, through its designated PPMO, shall coordinate and orchestrate on the ground activities and investments that shall be undertaken by the participating municipal LGUs. 14. Prior discussions have been conducted and as preparatory activity, the details of the implementation arrangements shall be further discussed and finalized in a MOA. The MOA shall include, among others, (i) the requirement of the commitment, participative preparation and adoption of the INREMP watershed management and investment plans by all concerned LGUs within the watershed prior to any investment under Component 2, Smallholder and institutional investments; and (ii) option of the DENR (Region X) to terminate MOA and prioritize another river basin in case of more than a year delay in the undertaking of initial activities in LLRB.

2. Phased Implementation 15. At the Watershed level and investment stage, the project approach shall be phased: (i) Implementation within Core Watersheds and (ii) upscaling to other Watersheds within the River Basins. Project implementation after river basin-wide planning shall initially be limited to the four core watersheds assessed during the Feasibility Study. These core watersheds were: (i) scoped out for subprojects; (ii) assessed to have watershed management plans in place and/or in an advanced preparation stage; (iii) the focus of detailed stakeholder sensitization and orientation and capacity needs assessments, including LGU implementation and fiscal capacities. (See Appendix 1. Implementation Arrangements).

19

IV. COSTS AND FINANCING

16. Cost Estimates. The Project is estimated to cost US$154.13 million equivalent, including contingencies, taxes and duties.6 The cost estimates for the Project outputs namely: (i) River Basin and Watershed Management and Investment Plans; (ii) Smallholder/Commercial/ Institutional Investment; (iii) Enhanced Capacity for River Basin and Watershed Management; and (iv) Project Management and Support Services are shown in details in Table 1. Detailed cost tables per sub component are presented in Appendix 2.

Table 1: Project Investment Plan

($ million) Item Amounta

A. Base Costb 1. Output 1: River basin and watershed planning 11.72 2. Output 2: Smallholder and institutional investments 115.85 3. Output 3: Capacity building 2.11 4. Output 4: Project management and support services 14.04 Subtotal (A) 143.72B. Contingenciesc 1. Physical contingencies 1.47 2. Price contingencies 1.79 Subtotal (B) 3.26C. Financial Charges During Implementationd 7.15 Total (A+B+C) 154.13 a Includes taxes and duties of $8.5 million. b In mid-2011 prices. c Physical contingencies computed at 0, or 3%–5% for most expenditure categories. On foreign exchange costs, price

contingencies are computed at 0.3% for 2013 and 0.5% for 2014–2019; on local currency costs, price contingencies are computed at 4% for 2013–2019; costing includes provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate.

d Includes interest and commitment charges financed by ADB. Source: Asian Development Bank estimates.

17. Financing Plan. The financing plan is in Table 2. The Government of the Philippines (GOP), through DENR, has requested a loan of $100 million equivalent from ADB’s ordinary capital resources to help finance the Project. The ADB loan will have a 20-year term, including a grace period of 8 years and annuity-type repayment method, an interest rate determined in accordance with ADB’s London interbank offered rate (LIBOR)-based lending facility, a commitment charge of 0.15% per annum and other such terms and conditions set forth in the draft loan agreement. Based on these loan terms and repayment method, the average loan maturity is 20 years and the maturity premium to ADB is 0.10% per annum. Financial charges and interest during implementation will be capitalized.

18. IFAD is expected to provide a $20 million loan (approximately equivalent to SDR13,250,000) subject to intermediate terms and conditions for middle-income countries, which currently includes a 20-year term and a grace period of five years. The IFAD loan will be partially administered by ADB as a parallel co-financing agreement. IFAD funds are expected to finance participatory management planning in Lake Lanao and Upper Bukidnon river basins; all other project activities within selected watersheds in Upper Bukidnon river basin (except for SFM, agroforestry and commercial forest plantation); and Project support staff consultants at the NPCO and regional/provincial project offices.

6 The taxes and duties are to be financed by the Government.

20

Table 2: Financing Plan Source Amount ($ million) Share of Total (%)Asian Development Bank 100.00 64.90 International Fund for Agricultural Developmenta 20.00 13.00 Climate Change Funda 1.41 0.90 Global Environmental Funda 2.50 1.60 National government 15.31 9.90 Local government units (with in-kind contribution) 8.49 5.50 Beneficiaries (in-kind contribution) 6.42 4.20

Total 154.13 100.00a To be administered by the Asian Development Bank. Funds administered by the Asian Development Bank may

finance transportation and insurance costs. Source: Asian Development Bank estimates.

19. GEF has committed to provide grant co financing of $2.5 million equivalent and the Climate Change Fund has committed to provide $1.41 million, both to be administered by ADB. GEF grant will be used to provide substantial support for (i) the preparation of URB and watershed management plans (Output 1); (ii) in investment in watershed conservation and management (Output 2); (iii) in capacity building (Output 3); and (iv) for Project management (Output 4). CCF grant will support (i) forest conservation and watershed management; (ii) river basin and watershed management plans; and (iv) capacity building.

20. GOP will provide funding equivalent of $15.305 million through taxes and duties ($7.604 million) and project staff, facilities, management and other recurrent costs ($7.601 million); local government units will provide $8.49 million, including taxes and duties ($0.92 million), in equity and in-kind contribution; and $6.426 million in-kind contribution will be provided by beneficiaries.

21

A. Detailed Cost Estimates by Expenditure Category

Expenditure Accounts Project Cost Summary (P '000) ($ '000) % Total

Local Foreign Total Local Foreign Total Costs Base

I. Investment Costs

A. Civil Works

ADB-funded Civil Works 859,582 318,959 1,178,541 20,646 7,661 28,306 20

IFAD-funded Civil Works (Bukidnon only) 163,269 57,214 220,483 3,921 1,374 5,296 4

LGU_Counterpart Civil Works 218,949 93,835 312,785 5,259 2,254 7,513 5

Subtotal Civil Works 1,241,800 470,008 1,711,809 29,826 11,289 41,115 29

B. Equipment

Vehicles 11,365 17,048 28,413 273 409 682 -

Vehicles (IFAD) 3,699 5,548 9,247 89 133 222 -

GIS Netw ork-Computer Package 11,557 17,336 28,893 278 416 694 -

IFAD_GIS Netw ork-Computer Package 3,143 4,714 7,857 75 113 189 -

GEF-Funded Computer Packages 765 1,148 1,914 18 28 46 -

Subtotal Equipment 30,529 45,794 76,323 733 1,100 1,833 1

C. Satellite Images & Data Acquisition 17,420 26,130 43,550 418 628 1,046 1

D. Conservation Forestry

Protection & Monitoring (Block Grant) 143,605 - 143,605 3,449 - 3,449 2

IFAD_Protection & Monitoring (Block Grant) 75,241 - 75,241 1,807 - 1,807 1

CCF-Funded Protection & Monitoring (Block Grant) 13,256 - 13,256 318 - 318 -

Establishment & Maintenance Costs 1,402,876 - 1,402,876 33,695 - 33,695 23

IFAD_Establishment & Maintenance Costs 140,043 - 140,043 3,364 - 3,364 2

GEF-Funded Conservation Forestry 15,056 - 15,056 362 - 362 -

Subtotal Conservation Forestry 1,790,076 - 1,790,076 42,994 - 42,994 30

E. Commercial Forestry

CCF-Funded Sustainable Management 23,249 613 23,862 558 15 573 -

Establishment & Maintenance Costs 574,337 17,763 592,100 13,795 427 14,221 10

Beneficiary Contribution to Costs 246,108 7,612 253,719 5,911 183 6,094 4

Subtotal Commercial Forestry 843,693 25,987 869,681 20,264 624 20,888 15

F. Livelihood Inputs

Livelihood Inputs (except Bukidnon) 122,339 6,439 128,778 2,938 155 3,093 2

Livelihood Inputs (Bukidnon only) 262,811 13,832 276,643 6,312 332 6,644 5

GEF-Funded Livelihood Inputs (Block Grant) 6,329 333 6,662 152 8 160 -

Subtotal Livelihood Inputs 391,478 20,604 412,083 9,403 495 9,898 7

22

Expenditure Accounts Project Cost Summary (P '000) ($ '000) % Total

Local Foreign Total Local Foreign Total Costs Base

I. Investment Costs

G. Consultants

Consultants - ADB 162,703 - 162,703 3,908 - 3,908 3

Consultants - IFAD 58,960 - 58,960 1,416 - 1,416 1

GEF-Funded Consultants 28,542 17,444 45,985 686 419 1,104 1

CCF-Funded Consultants 6,202 5,984 12,186 149 144 293 -

Subtotal Consultants 256,407 23,428 279,835 6,158 563 6,721 5

H. Locally Contracted Services

Locally Contracted Services 44,563 2,345 46,908 1,070 56 1,127 1

GEF_Locally Contracted Services 11,191 - 11,191 269 - 269 -

Subtotal Locally Contracted Services 55,754 2,345 58,100 1,339 56 1,395 1

I. Capacity Building, Studies and Surveys

Capacity Building, Studies and Surveys 106,721 5,617 112,338 2,563 135 2,698 2

Capacity Building, Studies and Surveys_IFAD 30,446 1,602 32,049 731 38 770 1

GEF-Funded Capacity Building, Studies & Surveys 15,149 797 15,946 364 19 383 -

CCF-Funded Capacity Building, Studies & Surveys 12,074 984 13,058 290 24 314 -

Subtotal Capacity Building, Studies and Surveys 164,390 9,001 173,391 3,948 216 4,165 3

J. Incremental Operating Costs

1. Incremental Operating Costs 148,166 7,798 155,964 3,559 187 3,746 3

2. IFAD_Incremental Operating Costs 50,375 2,651 53,026 1,210 64 1,274 1

3. GEF_Incremental Operating Costs 16,578 873 17,451 398 21 419 -

Subtotal ncremental Operating Costs 215,119 11,322 226,441 5,167 272 5,439 4

Total Investment Costs 5,006,667 634,620 5,641,288 120,251 15,242 135,494 94

II. Recurrent Costs

A. Recurrent Government Expenditure 316,634 - 316,634 7,605 - 7,605 5

B. O&M Community Infrastructure 9,055 - 9,055 217 - 217 -

C. O&M LGU Infrastructure 16,640 - 16,640 400 - 400 -

Total Recurrent Costs 342,329 - 342,329 8,222 - 8,222 6

Total BASELINE COSTS 5,348,997 634,620 5,983,617 128,474 15,242 143,716 100

Physical Contingencies 57,961 3,544 61,504 1,392 85 1,477 1

Price Contingencies 604,128 102,742 706,869 1,528 260 1,788 1

Total PROJECT COSTS 6,011,085 740,905 6,751,990 131,394 15,588 146,982 102

Interest During Implementation - 290,331 290,331 - 6,518 6,518 5

Commitment Charges - 28,972 28,972 - 632 632 -

Total Costs to be Financed 6,011,085 1,060,208 7,071,293 131,394 22,738 154,132 107

23

B. Allocation and Withdrawal of Loan and Grant Proceeds

ALLOCATION AND WITHDRAWAL OF LOAN PROCEEDS (Integrated Natural Resources and Environmental Management Project)

CATEGORY ADB FINANCING BASIS

Total Amount Allocated for ADB Financing

($)

Percentage of ADB Financing from the

Loan Account Number Item Category Subcategory

1 Works 25,694,000 89 percent of total expenditure claimed

2 Equipment 1,126,000 2A Vehicles 495,000 70 percent of total expenditure

claimed 2B Equipment 631,000 88 percent of total expenditure

claimed 3 Satellite Images & Data

Acquisition 946,000 88 percent of total expenditure

claimed 4 Conservation forestry 37,232,000

4A Protection & Monitoring (Block Grant)

3,540,000 100 percent of total expenditure claimed*

4B Establishment & Maintenance Cost

33,692,000 100 percent of total expenditure claimed*

5 Commercial forestry 14,475,000 100 percent of total expenditure claimed*

6 Livelihood Inputs 2,803,000 89 percent of total expenditure claimed

7 Consulting Services 3,662,000 88 percent of total expenditure claimed

8 Locally contracted services

1,032,000 88 percent of total expenditure claimed

9 Capacity Building 2,477,000 88 percent of total expenditure claimed

10 Incremental Operating Costs


11 Interest and Commitment Charge

7,150,000 100 percent of amounts due

Total 100,000,000 * Exclusive of taxes & duties within the territory of the Philippines.

24

ALLOCATION AND WITHDRAWAL OF LOAN PROCEEDS (Integrated Natural Resources and Environmental Management Project)


Number

Total Amount Allocated for IFAD Financing ($)

Percentage of IFAD Financing from the

Loan Account Item Category Subcategory 1 IFAD-Civil Works 4,812,000 90 percent of total

expenditure claimed 2 Equipment (IFAD) 336,000

2.a Vehicle (IFAD) 162,000 70 percent of total expenditure claimed

2.b IFAD –GIS Network Computer

174,000 88 percent of total expenditure claimed

3 Conservation forestry - IFAD

5,306,000

3 a IFAD–Protection & Monitoring (Block Grant)

1,942,000 100 percent of total expenditure claimed *

3 b IFAD Establishment & Maintenance Costs

3,364,000 100 percent of total expenditure claimed *

4 Livelihood Inputs (Bukidnon only)


5 Consulting Services -IFAD 1,323,000 88 percent of total expenditure claimed

6 Capacity Building -IFAD 713,000 88 percent of total expenditure claimed

7 IFAD Incremental operating costs


Total 20,000,000 *No taxes and duties.

ALLOCATION AND WITHDRAWAL OF GRANT PROCEEDS

(Integrated Natural Resources and Environmental Management Project)


Number Total Amount Allocated for GEF

Financing ($)

Percentage of GEF Financing from the

Grant Account Item Category

1 Computer Packages 41,000 88 percent of total expenditure claimed 2 Funded Conservation

Forestry 370,000 100 percent of total expenditure

claimed* 3 Livelihood Inputs (Block

Grant) 160,000 100 percent of total expenditure

claimed* 4 Consulting Services 980,000 88 percent of total expenditure claimed 5 Locally Contracted Services 243,000 88 percent of total expenditure claimed 6 Capacity Building 337,000 88 percent of total expenditure claimed 7 Incremental Operating Costs 369,000 88 percent of total expenditure claimed

Total 2,500,000 * Exclusive of taxes and duties imposed within the territory of the Recipeint.

25

ALLOCATION AND WITHDRAWAL OF GRANT PROCEEDS (Integrated Natural Resources and Environmental Management Project)

CATEGORY ADB FINANCING

Amount Allocated for CCF Financing ($)

Category

Percentage and Basis for Withdrawal from the Grant

Account Number Item

1 Protection and Monitoring 326,000 100 percent of total expenditure claimed*

2 Sustainable Management 526,000 89 percent of total expenditure claimed

3 Consulting Services 274,000 88 percent of total expenditure claimed

4 Capacity Building 284,000 88 percent of total expenditure claimed

Total 1,410,000 * Exclusive of taxes & duties within the territory of the Philippines.

26

C. Detailed Cost Estimates by Financier

Expenditure Accounts by Financiers ADB % of IFAD % of GEF % of CCF % of Base Duties Total % of Base Duties Total % of BENEs % of Total % of($ '000) Amount Category Amount Category Amount Category Amount Category Cost & Taxes Amount Category Cost & Taxes Amount Category Amount Category Amount Total

I. Investment Costs

A. Civil WorksADB-funded Civil Works 25,694 89.2 - - - - - - 3,126 3,126 10.8 - - - - 28,820 18.7IFAD-funded Civil Works (Bukidnon only) - - 4,812 89.6 - - - - 559 559 10.4 - - - - 5,370 3.5LGU_Counterpart Civil Works - - - - - - - - 0 0 - 6,738 919 7,656 100.0 - - 7,656 5.0

Subtotal Civil Works 25,694 61.4 4,812 11.5 - - - - 3,685 3,685 8.8 6,738 919 7,656 18.3 - - 41,846 27.1B. Equipment

Vehicles 495 70.0 - - - - - - 212 212 30.0 - - - - 707 0.5Vehicles (IFAD) - - 162 70.0 - - - - 69 69 30.0 - - - - 231 0.1GIS Netw ork-Computer Package 631 88.0 - - - - - - 86 86 12.0 - - - - 717 0.5IFAD_GIS Netw ork-Computer Package - - 174 88.0 - - - - 24 24 12.0 - - - - 198 0.1GEF-Funded Computer Packages - - - - 41 88.0 - - 6 6 12.0 - - - - 46 -

Subtotal Equipment 1,126 59.3 336 17.7 41 2.1 - - 397 397 20.9 - - - - 1,900 1.2C. Satellite Images & Data Acquisition 946 88.0 - - - - - - 129 129 12.0 - - - - 1,074 0.7D. Conservation Forestry

Protection & Monitoring (Block Grant) 3,537 100.0 - - - - - - - - - - - - - 3,537 2.3IFAD_Protection & Monitoring (Block Grant) - - 1,942 100.0 - - - - - - - - - - - 1,942 1.3CCF-Funded Protection & Monitoring (Block Grant) - - - - - - 326 100.0 - - - - - - - 326 0.2Establishment & Maintenance Costs 33,695 100.0 - - - - - - - - - - - - - 33,695 21.9IFAD_Establishment & Maintenance Costs - - 3,364 100.0 - - - - - - - - - - - 3,364 2.2GEF-Funded Conservation Forestry - - - - 370 100.0 - - - - - - - - - 370 0.2

Subtotal Conservation Forestry 37,231 86.1 5,306 12.3 370 0.9 326 0.8 - - - - - - - 43,232 28.0E. Commercial Forestry

CCF-Funded Sustainable Management - - - - - - 526 89.0 65 65 11.0 - - - - 591 0.4Establishment & Maintenance Costs 14,475 100.0 - - - - - - - 0 - - - - - 14,475 9.4Beneficiary Contribution to Costs - - - - - - - - 0 0 - - - 6,203 100.0 6,203 4.0

Subtotal Commercial Forestry 14,475 68.1 - - - - 526 2.5 65 65 0.3 - - 6,203 29.2 21,269 13.8F. Livelihood Inputs

Livelihood Inputs (except Bukidnon) 2,803 89.2 - - - - - - 340 340 10.8 - - - - 3,143 2.0Livelihood Inputs (Bukidnon only) - - 6,322 89.2 - - - - 767 767 10.8 - - - - 7,089 4.6GEF-Funded Livelihood Inputs (Block Grant) - - - - 160 100.0 - - - - - - - - - 160 0.1

Subtotal Livelihood Inputs 2,803 27.0 6,322 60.8 160 1.5 - - 1,107 1,107 10.7 - - - - 10,392 6.7

Government LGUs

27

C. Detailed Cost Estimates by Financier (1/2)

Expenditure Accounts by Financiers ADB % of IFAD % of GEF % of CCF % of Base Duties Total % of Base Duties Total % of BENEs % of Total % of($ '000) Amount Category Amount Category Amount Category Amount Category Cost & Taxes Amount Category Cost & Taxes Amount Category Amount Category Amount Total

I. Investment CostsG. Consultants

Consultants - ADB 3,662 88.0 - - - - - - 499 499 12.0 - - - - 4,162 2.7Consultants - IFAD - - 1,323 88.0 - - - - 180 180 12.0 - - - - 1,503 1.0GEF-Funded Consultants - - - - 980 88.0 - - 134 134 12.0 - - - - 1,113 0.7CCF-Funded Consultants - - - - - - 274 88.0 37 37 12.0 - - - - 312 0.2

Subtotal Consultants 3,662 51.7 1,323 18.7 980 13.8 274 3.9 851 851 12.0 - - - - 7,091 4.6H. Locally Contracted Services

Locally Contracted Services 1,032 88.0 - - - - - - 141 141 12.0 - - - - 1,173 0.8GEF_Locally Contracted Services - - - - 244 88.0 - - 33 33 12.0 - - - - 277 0.2

Subtotal Locally Contracted Services 1,032 71.2 - - 244 16.8 - - 174 174 12.0 - - - - 1,450 0.9I. Capacity Building, Studies and Surveys

Capacity Building, Studies and Surveys 2,477 88.0 - - - - - - 338 338 12.0 - - - - 2,815 1.8Capacity Building, Studies and Surveys_IFAD - - 713 88.0 - - - - 97 97 12.0 - - - - 811 0.5GEF-Funded Capacity Building, Studies & Surveys - - - - 337 88.0 - - 46 46 12.0 - - - - 383 0.2CCF-Funded Capacity Building, Studies & Surveys - - - - - - 284 88.0 39 39 12.0 - - - - 323 0.2

Subtotal Capacity Building, Studies and Surveys 2,477 57.2 713 16.5 337 7.8 284 6.6 520 520 12.0 - - - - 4,331 2.8J. Incremental Operating Costs

1. Incremental Operating Costs 3,403 88.0 - - - - - - 464 464 12.0 - - - - 3,867 2.52. IFAD_Incremental Operating Costs - - 1,189 88.0 - - - - 162 162 12.0 - - - - 1,351 0.93. GEF_Incremental Operating Costs - - - - 369 88.0 - - 50 50 12.0 - - - - 420 0.3

Subtotal ncremental Operating Costs 3,403 60.4 1,189 21.1 369 6.6 - - 676 676 12.0 - - - - 5,637 3.7Total Investment Costs 92,849 67.2 20,000 14.5 2,500 1.8 1,410 1.0 - 7,604 7,604 5.5 6,738 919 7,656 5.5 6,202.72 4.5 138,223 89.7II. Recurrent Costs

A. Recurrent Government Expenditure - - - - - - - - 7,698 3 7,701 94.8 423 \a 423 5.2 - - 8,124 5.3B. O&M Community Infrastructure - - - - - - - - - - - - - 223.43 \a 100.0 223 0.1C. O&M LGU Infrastructure - - - - - - - - - - - 411 \a 411 100.0 - - 411 0.3

Total Recurrent Costs - - - - - - - - 7,698 3 7,701 87.9 834 833 9.5 223.43 2.6 8,758 5.7Total PROJECT COSTS 92,849 63.2 20,000 13.6 2,500 1.7 1,410 1.0 7,698 7,607 15,305 10.4 834 8,490 5.8 6,426.15 4.4 146,982 95.4

Interest During Implementation 6,518 100.0 - - - - - - - - - - - - - 6,518 4.2Commitment Charges 632 100.0 - - - - - - - - - - - - - 632 0.4

Total Disbursement 100,000 64.9 20,000 13.00 2,500 1.6 1,410 0.90 7,698 7,607 15,305 9.90 7,571 919 8,490 5.5 6,426.15 4.2 154,132 100.00

\a - In kind Contribution

Government LGUs

28

D. Detailed Cost Estimates by Outputs/Components

Enhanced

River CapacityBasin and for River

Expenditure Accounts by Components Watershed Basin and Project - Base Costs Management % of % of Watershed % of Management % of % of

($ '000) Plans Category Category Management Category Support Category Total Total

I. Investment CostsA. Civil Works

ADB-funded Civil Works - 28,306 100.0 - - 28,306 19.3 IFAD-funded Civil Works (Bukidnon only) - 5,296 100.0 - - 5,296 3.6 LGU_Counterpart Civil Works - 7,513 100.0 - - 7,513 5.1

Subtotal Civil Works - 41,115 100.0 - - 41,115 28.0

B. EquipmentVehicles - - - - 682 100.0 682 0.5 Vehicles (IFAD) - - - - 222 100.0 222 0.2 GIS Netw ork-Computer Package 517 74.4 - - - 177 25.6 694 0.5 IFAD_GIS Netw ork-Computer Package 123 65.2 - - - 66 34.8 189 0.1 GEF-Funded Computer Packages - - - - - 46 100.0 46 0.0

Subtotal Equipment 640 34.9 - - - 1,194 65.1 1,833 1.2 C. Satellite Images & Data Acquisition 1,046 100.0 - - - - - 1,046 0.7

D. Conservation ForestryProtection & Monitoring (Block Grant) - - 3,449 100.0 - - - 3,449 2.3 IFAD_Protection & Monitoring (Block Grant) - - 1,807 100.0 - - - 1,807 1.2 CCF-Funded Protection & Monitoring (Block Grant) - - 318 100.0 - - - 318 0.2 Establishment & Maintenance Costs - - 33,695 100.0 - - - 33,695 22.9 IFAD_Establishment & Maintenance Costs - - 3,364 100.0 - - - 3,364 2.3 GEF-Funded Conservation Forestry - - 362 100.0 - - - 362 0.2

Subtotal Conservation Forestry - - 42,994 100.0 - - - 42,994 29.3

E. Commercial ForestryCCF-Funded Sustainable Management - - 573 100.0 - - - 573 0.4 Establishment & Maintenance Costs - - 14,221 100.0 - - - 14,221 9.7 Beneficiary Contribution to Costs - - 6,094 100.0 - - - 6,094 4.1

Subtotal Commercial Forestry - - 20,888 100.0 - - - 20,888 14.2

F. Livelihood InputsLivelihood Inputs (except Bukidnon) - - 3,093 100.0 - - - 3,093 2.1 Livelihood Inputs (Bukidnon only) - - 6,644 100.0 - - - 6,644 4.5 GEF-Funded Livelihood Inputs (Block Grant) - - 160 100.0 - - - 160 0.1

Subtotal Livelihood Inputs - - 9,898 100.0 - - - 9,898 6.7

G. ConsultantsConsultants - ADB 706 18.1 239 6.1 134 3.4 2,829 72.4 3,908 2.7 Consultants - IFAD - - - - 393 27.8 1,023 72.2 1,416 1.0 GEF-Funded Consultants 877 79.4 - - 149 13.5 78 7.1 1,104 0.8 CCF-Funded Consultants 293 100.0 - - - - - - 293 0.2

Subtotal Consultants 1,875 27.9 239 3.5 677 10.1 3,931 58.5 6,721 4.6

H. Locally Contracted ServicesLocally Contracted Services 1,127 100.0 - - - - - - 1,127 0.8 GEF_Locally Contracted Services 269 100.0 - - - - - - 269 0.2

Subtotal Locally Contracted Services 1,395 100.0 - - - - - - 1,395 0.9

I. Capacity Building, Studies and SurveysCapacity Building, Studies and Surveys 1,353 50.1 - - 657 24.3 688 25.5 2,698 1.8 Capacity Building, Studies and Surveys_IFAD 361 46.8 - - 328 42.5 82 10.6 770 0.5 GEF-Funded Capacity Building, Studies & Surveys 150 39.2 - - 233 60.8 - - 383 0.3 CCF-Funded Capacity Building, Studies & Surveys - - 100 31.9 214 68.1 - - 314 0.2

Subtotal Capacity Building, Studies and Surveys 1,864 44.7 100 2.4 1,431 34.4 770 18.5 4,165 2.8

J. Incremental Operating Costs1. Incremental Operating Costs 3,583 95.6 - - - - 163 4.4 3,746 2.5 2. IFAD_Incremental Operating Costs 933 73.2 - - - - 341 26.8 1,274 0.9 3. GEF_Incremental Operating Costs 381 91.0 - - - - 38 9.0 419 0.3

Subtotal ncremental Operating Costs 4,897 90.0 - - - - 542 10.0 5,439 3.7

Total Investment Costs 11,717 8.6 115,233 85.0 2,108 1.6 6,436 4.7 135,494 92.2

II. Recurrent CostsA. Recurrent Government Expenditure - - - - - - 7,605 100.0 7,605 5.2 B. O&M Community Infrastructure - - 217 100.0 - - - - 217 0.1 C. O&M LGU Infrastructure - - 400 100.0 - - - - 400 0.3

Total Recurrent Costs - - 617 7.5 - - 7,605 92.5 8,222 5.6

Total BASELINE COSTS 11,717 8.2 115,851 80.6 2,108 1.5 14,041 9.8 143,716 97.8 Physical Contingencies 299 20.2 471 31.9 55 3.7 652 44.1 1,477 1.0

Price Contingencies 120 6.7 1,405 78.6 25 1.4 238 13.3 1,788 1.2

Total PROJECT COSTS 12,136 8.3 117,727 80.1 2,188 1.5 14,931 10.2 146,982 100.0

Smallholder/ Commercial/ Institutional Investments

29

Enhanced

River CapacityBasin and for River

Expenditure Accounts by Components Watershed Basin and Project- Totals Including Contingencies Management % of % of Watershed % of Management % of % of ($ '000) Plans Category Category Management Category Support Category Total Total

I. Investment CostsA. Civil Works

ADB-funded Civil Works - 28,820 100.0 - - 28,820 19.6 IFAD-funded Civil Works (Bukidnon only) - 5,370 100.0 - - 5,370 3.7 LGU_Counterpart Civil Works - 7,656 100.0 - - 7,656 5.2

Subtotal Civil Works - 41,846 100.0 - - 41,846 28.5 B. Equipment

Vehicles - - - - 707 100.0 707 0.5 Vehicles (IFAD) - - - - 231 100.0 231 0.2 GIS Netw ork-Computer Package 532 74.2 - - - 185 25.8 717 0.5 IFAD_GIS Netw ork-Computer Package 130 65.5 - - - 68 34.5 198 0.1 GEF-Funded Computer Packages - - - - - 46 100.0 46 0.0

Subtotal Equipment 662 34.8 - - - 1,238 65.2 1,900 1.3 C. Satellite Images & Data Acquisition 1,074 100.0 - - - - - 1,074 0.7 D. Conservation Forestry

Protection & Monitoring (Block Grant) - 3,537 100.0 - - - 3,537 2.4 IFAD_Protection & Monitoring (Block Grant) - 1,942 100.0 - - - 1,942 1.3 CCF-Funded Protection & Monitoring (Block Grant) - 326 100.0 - - - 326 0.2 Establishment & Maintenance Costs - 33,695 100.0 - - - 33,695 22.9 IFAD_Establishment & Maintenance Costs - 3,364 100.0 - - - 3,364 2.3 GEF-Funded Conservation Forestry - 370 100.0 - - - 370 0.3

Subtotal Conservation Forestry - 43,232 100.0 - - - 43,232 29.4 E. Commercial Forestry -

CCF-Funded Sustainable Management - 591 100.0 - - - 591 0.4 Establishment & Maintenance Costs - 14,475 100.0 - - - 14,475 9.8 Beneficiary Contribution to Costs - 6,203 100.0 - - - 6,203 4.2

Subtotal Commercial Forestry - 21,269 100.0 - - - 21,269 14.5 F. Livelihood Inputs -

Livelihood Inputs (except Bukidnon) - 3,143 100.0 - - - 3,143 2.1 Livelihood Inputs (Bukidnon only) - 7,089 100.0 - - - 7,089 4.8 GEF-Funded Livelihood Inputs (Block Grant) - 160 100.0 - - - 160 0.1

Subtotal Livelihood Inputs - 10,392 100.0 - - - 10,392 7.1 G. Consultants -

Consultants - ADB 751 18.0 253 6.1 142 3.4 3,016 72.5 4,162 2.8 Consultants - IFAD - - - - 412 27.4 1,092 72.6 1,503 1.0 GEF-Funded Consultants 881 79.2 - - 149 13.4 83 7.5 1,113 0.8 CCF-Funded Consultants 312 100.0 - - - - - - 312 0.2

Subtotal Consultants 1,944 27.4 253 3.6 703 9.9 4,191 59.1 7,091 4.8 H. Locally Contracted Services -

Locally Contracted Services 1,173 100.0 - - - - - - 1,173 0.8 GEF_Locally Contracted Services 277 100.0 - - - - - - 277 0.2

Subtotal Locally Contracted Services 1,450 100.0 - - - - - - 1,450 1.0 I. Capacity Building, Studies and Surveys -

Capacity Building, Studies and Surveys 1,409 50.1 - - 687 24.4 718 25.5 2,815 1.9 Capacity Building, Studies and Surveys_IFAD 382 47.2 - - 341 42.1 87 10.8 811 0.6 GEF-Funded Capacity Building, Studies & Surveys 150 39.2 - - 233 60.8 - - 383 0.3 CCF-Funded Capacity Building, Studies & Surveys - - 100 31.0 223 69.0 - - 323 0.2

Subtotal Capacity Building, Studies and Surveys 1,941 44.8 100 2.3 1,485 34.3 806 18.6 4,331 2.9 J. Incremental Operating Costs -

1. Incremental Operating Costs 3,695 95.6 - - - - 172 4.4 3,867 2.6 2. IFAD_Incremental Operating Costs 988 73.1 - - - - 363 26.9 1,351 0.9 3. GEF_Incremental Operating Costs 381 90.9 - - - - 38 9.1 420 0.3

Subtotal ncremental Operating Costs 5,064 89.8 - - - - 573 10.2 5,637 3.8 Total Investment Costs 12,136 8.8 117,093 84.7 2,188 1.6 6,807 4.9 138,223 94.0 II. Recurrent Costs -

A. Recurrent Government Expenditure - - - - - - 8,124 100.0 8,124 5.5 B. O&M Community Infrastructure - - 223 100.0 - - - - 223 0.2 C. O&M LGU Infrastructure - - 411 100.0 - - - - 411 0.3

Total Recurrent Costs - - 634 7.2 - - 8,124 92.8 8,758 6.0 Total PROJECT COSTS 12,136 8.3 117,727 80.1 2,188 1.5 14,931 10.2 146,982 100.0

Smallholder/ Commercial/ Institutional Investments

30

E. Detailed Cost Estimates by Year

Expenditure Accounts by Years Base Cost ($ '000)

-- Base Costs Total 2013 2014 2015 2016 2017 2018 2019

I. Investment Costs

A. Civil Works

ADB-funded Civil Works 28,306 - 1,375 3,628 5,804 8,273 7,032 2,195

IFAD-funded Civil Works (Bukidnon only) 5,296 - 427 1,396 1,560 1,366 547 -

LGU_Counterpart Civil Works 7,513 - 441 1,033 1,611 2,207 1,712 509

Subtotal Civil Works 41,115 - 2,243 6,057 8,974 11,846 9,290 2,704

B. Equipment

Vehicles 682 - 243 206 234 - - -

Vehicles (IFAD) 222 - 82 66 75 - - -

GIS Netw ork-Computer Package 694 - 232 237 225 - - -

IFAD_GIS Netw ork-Computer Package 189 - 149 11 29 - - -

GEF-Funded Computer Packages 46 23 - - 23 - - -

Subtotal Equipment 1,833 23 705 519 586 - - -

C. Satellite Images & Data Acquisition 1,046 - 716 330 - - - -

D. Conservation Forestry

Protection & Monitoring (Block Grant) 3,449 - 72 206 516 782 867 1,005

IFAD_Protection & Monitoring (Block Grant) 1,807 - 31 90 278 417 464 526

CCF-Funded Protection & Monitoring (Block Grant) 318 - 5 13 50 76 84 91

Establishment & Maintenance Costs 33,695 - 3,140 6,374 11,956 4,936 4,294 2,995

IFAD_Establishment & Maintenance Costs 3,364 - 336 757 925 505 505 336

GEF-Funded Conservation Forestry 362 - 65 100 121 56 20 -

Subtotal Conservation Forestry 42,994 - 3,650 7,539 13,846 6,772 6,234 4,954

E. Commercial Forestry

CCF-Funded Sustainable Management 573 - 84 185 209 94 - -

Establishment & Maintenance Costs 14,221 - 1,072 2,495 4,838 2,240 2,029 1,546

Beneficiary Contribution to Costs 6,094 - 460 1,069 2,073 960 869 662

Subtotal Commercial Forestry 20,888 - 1,616 3,750 7,121 3,295 2,898 2,208

F. Livelihood Inputs

Livelihood Inputs (except Bukidnon) 3,093 - 558 618 618 618 618 62

Livelihood Inputs (Bukidnon only) 6,644 - 1,199 1,328 1,328 1,328 1,328 133

GEF-Funded Livelihood Inputs (Block Grant) 160 - 20 50 60 30 - -

Subtotal Livelihood Inputs 9,898 - 1,776 1,997 2,007 1,977 1,947 195

G. Consultants

Consultants - ADB 3,908 422 785 756 637 514 419 374

Consultants - IFAD 1,416 117 234 222 210 210 210 210

GEF-Funded Consultants 1,104 224 453 221 83 38 24 62

CCF-Funded Consultants 293 - 73 73 - 73 73 -

Subtotal Consultants 6,721 763 1,546 1,273 930 836 727 647

H. Locally Contracted Services

Locally Contracted Services 1,127 - - 114 214 342 457 -

GEF_Locally Contracted Services 269 - 67 67 - 67 67 -

Subtotal Locally Contracted Services 1,395 - 67 181 214 410 524 -

I. Capacity Building, Studies and Surveys

Capacity Building, Studies and Surveys 2,698 164 705 769 343 370 256 91

Capacity Building, Studies and Surveys_IFAD 770 62 223 232 114 93 46 -

GEF-Funded Capacity Building, Studies & Surveys 383 52 87 90 65 65 24 -

CCF-Funded Capacity Building, Studies & Surveys 314 29 75 72 82 55 - -

Subtotal Capacity Building, Studies and Surveys 4,165 307 1,091 1,164 603 583 325 91

J. Incremental Operating Costs

1. Incremental Operating Costs 3,746 86 806 1,463 1,215 59 59 59

2. IFAD_Incremental Operating Costs 1,274 111 372 469 154 56 56 56

3. GEF_Incremental Operating Costs 419 36 143 154 74 - - 13

Subtotal ncremental Operating Costs 5,439 232 1,321 2,087 1,443 115 115 127

Total Investment Costs 135,494 1,325 14,731 24,896 35,724 25,832 22,060 10,926

II. Recurrent Costs

A. Recurrent Government Expenditure 7,605 521 1,034 1,149 1,211 1,230 1,230 1,230

B. O&M Community Infrastructure 217 - - - - 43 67 108

C. O&M LGU Infrastructure 400 - - - - 77 135 188

Total Recurrent Costs 8,222 521 1,034 1,149 1,211 1,350 1,432 1,526

Total BASELINE COSTS 143,716 1,846 15,765 26,045 36,935 27,182 23,492 12,451

Physical Contingencies 1,477 69 275 300 261 226 213 133

Price Contingencies 1,788 2 65 186 357 434 466 277

Total PROJECT COSTS 146,982 1,918 16,105 26,530 37,554 27,842 24,171 12,861

% of Total 100.0 1.3 11.0 18.0 25.6 18.9 16.4 8.8

31

F. Contract and Disbursement S-curve

*Disbursements of ADB and IFAD loans and GEF and CCF grants only.

32

G. Fund Flow Diagram

$10 million ADB Loan ($15.8 ADB loan, $4.8 IFAD loan)

$20.6 million $93.31 million ($74.2 ADB loan,

$15.2 IFAD loan, $2.5 mil GEF grant, $1.41 mil CCF grant)

Certification of block grantbudget and work plan

Source: Asian Development Bank

ADB (loan), IFAD (loan), GEF (grant) CCF (grant)

Government of the Philippines

Department of Finance (Treasury)

Department of Budget and Management (DBM)

Department of Agriculture (DA)

(1 Imprest Account)

Municipal Development Fund Office (MDFO)

(2 Imprest Accounts)

Department of Environment and NaturalResources (DENR)

(4 Imprest Accounts - 1 for ADB loan, 1 for IFAD loan, 1 for GEF grant, 1 for CCF

grant)

Participating LGUs covered by

CHARM Project in support of INREMP sub-projects

(Sub-accounts)

Participating LGUsnot covered by CHARM Project

(Sub-accounts)

DENR Regional Office(DENR-RO)

DENR Provincial Office (PENRO)(Sub-accounts)

Rehabilitation and Improvement of Rural Infrastructure

Agro forestry &Commercial Forest Plantation and SFM

URB Forest Conservationand Protection

Land Use Planning; Capacity Building;

and ProjectManagement

ADB - Asian Development Bank; CCF - Climate Change Fund; DBM - Department of Budget and Management; DENR - Department of Environment and NaturalResources; DENR-RO - DENR Regional Office; GEF - Global Environmental Facility; IA - imprest account; IFAD - International Fund for Agricultural Development; and URB-Upper River Basin

Livelihood Activities, Biodiversity conser-vation, protection and rehabilitation

blockgrants tobeneficiary groups

33

V. FINANCIAL MANAGEMENT

A. Financial Management Assessment

1. Assessment of Executing Agencies and LGUs

21. DENR has considerable experience in managing and implementing foreign assisted projects (FAPs). As of November 2011, DENR-FASPO has 35 on-going foreign assisted and special projects, of which 4 are loans/loans with grants. National Expenditure Program (NEP) showed actual expenditure level of P 643 million for 2010, P420 million estimated for 2011 and P552 million programmed for 2012.

22. The financial management system of the DENR and its field offices follow the National Government Accounting System (NGAS) and auditing rules and regulations in so far as internal control, accounting and reporting are concerned. Budgeting, accounting and cashiering functions are segregated and performed by different persons/divisions. The NGAS/ eNGAS has adequate processing and reporting features to facilitate effective financial management.

23. At the Central Office, the Financial Management Service (FMS) has a Management Division in addition to the Accounting and Budget Division. Cashiering falls within the Administrative Services, under the General Services Division. Except for the Internal Audit Service, the Finance and Administrative Services are replicated in the DENR ROs and PENROs in lesser scale. The CENROs are under the PENROs and do not have separate financial support services.

24. Foreign Assisted and Special Projects Office (FASPO) is responsible for planning, programming, operations and management of foreign assisted and special projects (FASPs) of the DENR. FASPO coordinates with funding and oversight agencies in programming, monitoring and evaluation of FASPs. Among its divisions/units are Procurement Unit and Project Accounts Management Division (PAMD) which are responsible for the procurement requirements and administration of funds of foreign assisted projects. FASPO (PAMD) is responsible for timely processing of Project disbursements, preparation and audit of Statement of Expenditures (SOEs) of FASPs. The FMS assigns counterpart personnel to FASPO to ensure the integration of FASPs in the Central Office’s budgeting and accounting systems and processes. Contractual personnel are hired by job order to complement FASPO and FMS regular staff in the management of Projects and administration of funds.

25. For the ROs, support services include: Planning & Management Division; Administrative Division and Finance Division among others. While the PENROs, with lesser number of staff, have Planning, Administrative and Accounting and Finance Services.

26. The DENR has taken efforts to address audits findings particularly those for 2008 and prior. It has made progress in minimizing its outstanding receivable and payable accounts. Such effort, which is part of strengthening internal control under Internal Audit Service, should be continued and applied consistently for foreign assisted projects like INREMP. Review of 2005-20010 Audit reports on the DENR and on the Official Development Assistance (ODA) showed common findings on unliquidated cash advances/fund transfers and outstanding accounts payables for more than two (2) years.

27. Department of Agriculture (DA) has been implementing projects funded by ADB and other funding institutions. It is the Executing Agency of the ADB-funded Cordillera Highland

34

Agricultural Resources Management (CHARM) Project 1 and 2, among a number of foreign-assisted projects.

28. The Municipal Development Fund Office (MDFO) is the office that manages the special revolving fund (Municipal Development Fund) that serves as the mechanism to enable LGUs to avail funds of local and international assistance for the implementation of livelihood interventions, including rural infrastructure support. MDFO has managed the fund for the last 25 years. However, staffing constraints and volume of LGU submissions have often impeded timely liquidation and replenishment of cash advances and imprest account turnover.

29. The Local Government Units that may participate in the Project belong to different income classes and accordingly have different levels of financial resources and capabilities. However, all of them follow the New Government Accounting for LGUs that requires the basic segregation of financial management functions. As specified in the Local Government Code (LGC) of 1991 and government accounting and auditing rules and regulations, cashiering and treasury functions are performed by the Local Treasurer (appointed by the Secretary of the Department of Finance) who is also responsible for collecting revenues. The Local Accountant performs the internal control/audit functions, in addition to the basic accounting functions of recording, summarizing and reporting of financial transactions. Budgeting activities are under the Budget Division.

30. The income classification of the LGUs, which is based on the average regular income for at least four consecutive years, is indicative of LGU capacities in terms of human and financial resources. The amount the LGU can allocate for salaries and wages as well as the salary grade-rates that it can use are determined according to its income class. (Personal Services should not exceed 45% of regular income for the preceding year for 1st to 3rd class and 55% for 4th to 6th class.)

31. Of the 5 cities, 2 cities are classified as 1st class, the three others are 3rd, 4th and 5th

classes. The 81 municipalities are classified as follows: 7 (8.6%) – 1st class; 4 (5%) – 2nd; 15 (18.5%) - 3rd; 30 (37%) – 4th; 19 (23.5%) – 5th; 6 (7.4%) – 6th class. Those classified as 4th to 6th class compose 67.9% of municipalities/cities in the 4 river basins.7

32. Based on the income classification of the LGUs in the different river basins, it can be concluded that Lake Lanao River Basin will pose the most challenges not only because of its low financial and human capacities but also because of its security conditions. Next challenging area is the Chico River Basin because of its size, location and capacities of many of its LGUs. Upper Bukidnon River Basin may have the highest probability of success based on the financial capacities of the provinces (especially Bukidnon Province) and municipalities. Bohol may be the most manageable because of its relatively small size and average capacities of its municipalities (most belong to 4th income class).

2. Mitigating Measures

33. To facilitate efficient utilization of loans and grants proceeds, officers and personnel who will be involved in the administration of the funds will be oriented/trained to the Project’s organization, implementation arrangements, activities, requirements, particularly to ADB and local procurement procedures (RA 9184 and its IRR) and the ADB’s disbursement procedures before the start or at the beginning of Project implementation. DENR will undertake advance contracting for capacity building, including tailor-made training and refresher packages on

7 As of 2009 status.

35

financial management, disbursement and procurement of subprojects.

34. Full-time staff shall be assigned for project and financial management and contract administration at DENR- CO, RO and PENRO.

35. Senior level staff from the Budget and Accounting Divisions of the FMS, Administrative and Internal Audit Services shall be designated to assist NPCO in the administration of the Project funds. These concerned staff will attend and ensure compliance to procedural, administrative, documentary and other requirements of their respective divisions/services from the Project.

36. A staff or two of FASPO/NPCO, RPCO and PPMO staff shall be assigned to manage or administer contracts and/or MOAs entered into in relation to the implementation of the Project. Such staff, in coordination with the DENR Legal Office, shall be responsible for ensuring that contracts/MOAs are legal and in order; and for monitoring that milestones or outputs, goods and services are delivered on time, in quality and quantity specified in their respective contracts/MOAs. He/she shall bring to the attention of the Project management and/or officers concerned of any deviation from what is expected as indicated in the plans or terms and conditions of the contracts/MOAs.

37. Two to three staff consultants will be assigned at the MDFO to (i) assist in coordinating/processing and monitoring LGU submissions; and (ii) coordinate with the regional and provincial Commission’s on Audit (COAs) for timely submission of audited financial statements. The initial number of 2- 3 staff consultants will be increased to as many as 5 as LGU participation in the Project increases.

38. Based on reviewed financial information of LGUs, maintenance of rural infrastructure projects can be financed through their regular revenues (all the LGUs reflect positive net income ranging from 5%-30%). The Project will also strengthen O&M capacity for rural infrastructure in selected LGUs.

39. The Project will undertake information dissemination, education and communication (IEC) among LGUs regarding commercial financing opportunities.

40. Portion of ADB and IFAD loan proceeds for rural infrastructure rehabilitation shall be used for INREMP Performance Based Grant System (PBGS) for LGUs’ participation in the river basin management and investment in rural infrastructure. $3.5 million (around 11% of the loan amount allocated to rural infrastructure) is programmed for the implementation of the INREMP PBGS. Qualified participating LGUs will be entitled to: (i) 30% of the PBGS capital grant upon completion of governance conditions (including, establishment of BACs, and State of Local Governance reports); and (ii) 70% upon confirmation of LGUs accomplishment of performance indicators specified in the INREMP PBGS guidelines that will be developed with and approved by the MDFO-PBGS Technical Committee and Steering Committee during the first year of project implementation and considered acceptable by ADB. Performance indicators will include those related to land use planning and zoning, forest conservation, protection and rehabilitation, availment of more than 50% of the MDFO-INREM funded rural infrastructure subproject and development of supporting ordinances. (See Appendix 3 for the conceptual framework of INREMP PBGS) By the end of the 4th year of project implementation, the rate of availment of the PBGS shall be assessed and the allocated funds for PBGS shall be reprogrammed as deemed appropriate by the DENR, in consultation with MDFO, and acceptable to ADB.

36

3. Eligibility criteria of subprojects for Project financing

41. Subprojects will be located in the four river basins as stated in para 1, and in the Cordillera triboundary of Chico-Agno-Magat river basins for the GEF biodiversity subprojects. By the middle of the second year of project implementation, the DENR shall assess its progress in each of the selected river basins. The DENR may choose to prioritize other river basin(s), in view of overriding reasons or circumstances, such as peace or security situation or LGU willingness to participate, that hinder immediate or effective execution of the project in the selected river basin. Such change should, however, be made prior to undertaking any land use and capability assessments, ensuring the effective use of project funds is not sacrificed, the integrity of the watershed ecosystem is preserved, and the INREM Project Impacts and Outcomes are achieved. Any change in river basin will also need to be endorsed by ADB.

42. Subprojects, to be designed during implementation, will be selected according to the need for remedial measures to reduce watershed degradation and an assessment of the magnitude of the socio-economic benefits that can be achieved. Subprojects will need to be aligned with provincial/national development strategies, particularly their impacts on rural poverty reduction. The ecological significance of the subprojects will be assessed in terms of biodiversity and carbon sequestration potential and the potential for reducing soil erosion. Post-investment financial sustainability of the subprojects will also be carefully examined.

43. Watersheds and LGUs will be prioritized for implementation based on their willingness and organizational and institutional capacity/preparedness to participate in URB/watershed management planning, and ability to share in the costs of local infrastructure projects as required under the NG-LGU cost sharing scheme Policy (LGU share of 20% of the Project costs per the NEDA recommended policy, Nov 2011 and as provided in the loan agreement). In addition, institutional criteria that will impact on implementation include (i) LGUs' willingness to carry out the necessary surveys and safeguards assessments for individual subproject feasibility studies; (ii) social acceptability of the design and implementation arrangements; (iiii) willingness of LGUs to abide by ADB and government procurement, disbursement and anticorruption policies, and to enforce proper financial due diligence and fiduciary management; (iv) commitment of LGUs to facilitate resolution of any social or environmental problems; (v) willingness of LGUs and concerned regional and national agencies to support and facilitate operations and maintenance of facilities supported by the Project.

44. As far as practicable, there shall be no financing overlap of proposed subprojects from any other ODA source, which implement projects or activities of similar nature as INREM in that subproject watershed. Subproject packages should also constitute a complete watershed.

45. To facilitate efficient fund utilization, preparatory/approval activities for subproject(s) for infrastructure and forestry projects shall be allowed to be undertaken by the concerned LGU even if the pertinent watershed management/investment plans are not yet completed and officially approved; provided that (i) development of watershed management plan under INREMP has been initiated; (ii) in an existing physical or URB or watershed management framework approved by the DENR, the proposed subproject is allowed or not prohibited; (iii) based on land use assessment (even if preliminary), such subproject(s) is fully justified; and (iv) the WMC ensures and certifies that the sub-project(s) will be included in the final watershed management/investment plans. The justifications and certification that the subproject will eventually become part of the watershed management plan/investment plan will be attested to by the DENR and Project officer in-charge of the area of the subproject based on the above stated conditions. The concerned LGU will justify the undertaking of the subproject(s) and

37

commit to participate in the completion of the Watershed Management/Investment Plan and include the subproject’s requirements (establishment, operations and maintenance) in its own (LGU’s) annual investment plans and appropriations.

46. Funding/disbursement for subprojects approved in accordance with the preceding paragraph will comply with all other relevant prescribed processes and procedures.

B. Disbursement

47. The ADB and IFAD loans and GEF & CCF grants proceeds will be disbursed in accordance with ADB’s Loan Disbursement Handbook (2012, as amended from time to time),8 and detailed arrangements agreed upon between the Government and ADB. For IFAD disbursements, the EA/IA will submit the WAs to ADB, who will review the WAs and advise IFAD to make the disbursement to EA/IA’s Imprest Account for IFAD.

48. Pursuant to ADB's Safeguard Policy Statement (2009) (SPS),9 ADB funds may not be applied to the activities described on the ADB Prohibited Investment Activities List set forth at Appendix 5 of the SPS. All financial institutions will ensure that their investments are in compliance with applicable national laws and regulations and will apply the prohibited investment activities list (Appendix 5 - SPS) to subprojects financed by ADB.

49. Loan proceeds for the Sub Component on Rehabilitation and Improvement of Rural Infrastructures (total amount of $30.6 million, $25.8 from ADB and $4.8 from IFAD) will be released to the LGUs through the MDFO ($20.6 million, $15.8 from ADB and $4.8 from IFAD) and through DA ($10 million from ADB for the CHARM 2 areas within Chico River Basin). (See Section IV.G. INREM Project Funds Flow Diagram) The LGUs will access funds for rural infrastructure projects specifically included in the indicative URB Management Zoning or in the LGU’s approved Watershed Management Plan through the MDFO or DA, or as qualified for priority implementation by the NPCO and PPMO at the beginning of implementation when management zoning/plans are still being prepared. The LGUs may be allowed to use force account up to a maximum amount of $100,000 per sub project in undertaking infrastructure projects subject to conditions set in para 105. The use of force account requires the borrower to submit certifications on the project’s (i) physical and (ii) financial progress. The release of loan disbursements will be based on the rate of progress of the works as certified by the project engineer or authorized representative of the EA/IA.

50. Infrastructure projects will be funded following the “NG-LGU Cost-Sharing Scheme” provided in the Loan Agreement. The project may fund as much as 80% of the subproject cost as National Government grant to the LGU, with the LGU, providing a maximum of 20% of the project cost, based on its income class.

51. If an LGU lacks the funds to fully finance its share, it may source its requirements from any other source including the MDFO. Lending operation, if required by any LGU, will be most efficiently effected by MDFO because the grant funding, which covers about 80 percent of project cost, will be coursed through MDFO. Following a process of financial capacity evaluation and approval by the MDFO Policy Governing Board (PGB)10, the financing agreement will be embodied in a sub loan agreement between the MDFO and the LGUs

8 Available at: http://www.adb.org/Documents/Handbooks/Loan_Disbursement/loan-disbursement-final.pdf 9 Available at: http://www.adb.org/Documents/Policies/Safeguards/Safeguard-Policy-Statement-June2009.pdf 10 The scope of this financial evaluation and a delineation of responsibilities will be agreed upon in a memorandum of

agreement (MOA) to be completed between DENR and DOF.

38

concerned. The subloan agreement will contain the terms and conditions for the subloan to the LGU including the maturity period and interest rate, and provision of internal revenue allotment if the LGU does not pay promptly. The PGB, which determines on lending terms on an annual basis, will be requested to make these terms as competitive as possible.

52. Prior to approval of LGU projects to be funded from the loan (ADB and IFAD) proceeds, specific cost items will be identified and segregated for funding from specific sources of funds, that is, (i) from the NG-Grant, which will be funded from the ADB and IFAD loan proceeds; (ii) from the loan portion- share of the LGU, if any, which may come from other sources such as other financial institutions, including the MDFO; and (iii) from the equity portion of the LGU share, which comes from the LGU’s own fund and in the form of cash contribution. The conclusion of an implementation agreement between the LGU and the MDFO/DA on the cost-sharing responsibilities will be a precondition of support to any subproject.

53. The LGUs will access the Performance-Based Grants (PBGs) through the MDFO. Details regarding the mechanics of implementing the PBGs will be developed for INREM to provide incentives for improvement in the area of environment and natural resources management by the LGUs. This will be presented for approval by the PBGS Technical and Steering Committee and acceptable to ADB during the first year of implementation.

54. Imprest Account (IA). To expedite project implementation through the timely release of funds for eligible expenditures, an imprest fund procedure will also be applied. Under this procedure, Bureau of Treasury will channel the loan and grant proceeds directly to seven (7) imprest accounts11 (IAs) which will be established by the Executing and Implementing Agencies at a bank acceptable to the ADB immediately after loan effectiveness for exclusive use of ADB and IFAD loan proceeds and the GEF and CCF grant funds. These IAs will include: one (1) for DA (for ADB loan), two (2) for MDFO (one for ADB loan and one for IFAD loan), and four (4) for the DENR (one for ADB loan, one for IFAD loan, one for GEF grant, and one for CCF grant). In this same bank, peso current accounts will also be opened by the EA and Implementing Agencies for actual disbursements. These pesos current accounts will be funded by dollar accounts with the GOP bearing the gain or loss on foreign exchange. The IAs will be used to facilitate day-to-day expenditures of the INREM Project to ensure speedy implementation, following detailed arrangements and actions agreed upon by the Government and ADB in accordance with ADB’s Loan Disbursement Handbook (2012) as amended from time to time.

55. The DA's IA will be administered by the DA to finance rehabilitation and improvement of rural infrastructure in the Chico River Basin areas covered by the CHARM Project. The maximum ceiling for this IA will be 6 months of estimated expenditures to be funded from the IA, or $1.0 million (10% of $10.0 million), whichever is lower.

56. The MDFO's IAs will be administered by the MDFO to finance rehabilitation and improvement of rural infrastructure in areas not being covered by the CHARM Project. The maximum ceiling for the IAs will be 6 months of estimated expenditures to be funded from the IAs, or $1.58 million (10% of $15.8 million) for ADB loan, and $0.48 million (10% of $4.8 million) for IFAD loan, whichever is lower.

57. The four DENR's IAs (one for ADB loan, one for IFAD loan, one for GEF grant, and one for CCF grant) will be administered by the DENR to finance agro forestry and commercial forest plantation, URB forest conservation and protection, sustainable forest management, livelihood activities, land use planning, capacity building, and project management. The maximum ceiling

11 Bank Charges will be financed from the ADB and ADB administered funds.

39

for the ADB loan fund IA will be 6 months of estimated expenditures to be funded from the IA, or $7.4 million (10% of $74 million) and for the IFAD loan fund IA, the ceiling will be 6 months of estimated expenditures to be funded from the IA or $1.52 million (10% of $15.2 million), whichever is lower. The maximum ceiling of the IA for the GEF grant will be 6 months of estimated expenditures to be funded from the IA, or $0.25 million (10% of $2.5 million), whereas the maximum ceiling of the IA for the CCF grant will be 6 months of estimated expenditures to be funded from the IA, or $0.14 million (10% of $1.41 million), whichever is lower.

58. Each participating LGU, DENR regional office (DENR-RO), and DENR provincial office (PENRO) will establish a subaccount for each funding source in a bank acceptable to the government and ADB for project expenditures. Loan and grant proceeds will be made available from the IAs to the subaccounts subject to the work plans approved by NPCO/MDFO/DA to finance locally purchased equipment and materials, contractual services, and small-scale training activities at geographically dispersed locations in the project provinces. These subaccounts will be managed by the recipient-participating LGUs, DENR-ROs, and PENROs. The liquidation and replenishment of funds in the subaccounts will be based on the submission of full supporting documentation of project expenditures to DA/MDFO/DENR-CO, who will be responsible for consolidating the liquidation reports and submitting the SOEs to the ADB for their respective IAs as well as for the safekeeping of the supporting documents.

59. The request for initial advance to the imprest account should be accompanied by an Estimate of Expenditure Sheet12 setting out the estimated expenditures for the first six (6) months of project implementation, and submission of evidence satisfactory to ADB that the imprest account has been duly opened. For every liquidation and replenishment request of the imprest account, the borrower will furnish to ADB (a) Statement of Account (Bank Statement) where the imprest account is maintained, and (b) the Imprest Account Reconciliation Statement (IARS) reconciling the above mentioned bank statement against the EA’s and Implementing Agencies’ records.13

60. The ADB SOE procedures will be used for reimbursement and liquidation and replenishment of the imprest accounts. Each individual payment reimbursed or liquidated using the SOE procedures will not exceed $100,000 equivalent, otherwise full supporting documentation for those individual payments in excess of $100,000 should be submitted to ADB.

61. Payments can be made from the imprest accounts for all eligible goods and services and will include payments to contractors and suppliers of materials. For expenditures exceeding US$100,000 equivalent per transaction, direct payment method shall be used whenever possible. SOE records should be maintained and made readily available for review by ADB's disbursement and review mission or upon ADB's request for submission of supporting documents on a sampling basis, and for independent audit.14

62. Funds shall be transferred to offices within the DENR through Sub-allotment Advice, which shall be the basis of the concerned office to incur obligation. Funding checks/bank transfers will be issued by the DENR CO, upon recommendation by NPCO to transfer cash from the EA’s IA to the participating Regional/Provincial Offices’ subaccounts.

12 Available in Appendix 10B of the Loan Disbursement Handbook. 13 Follow the format provided in Appendix 10C of the Loan Disbursement Handbook. 14 Checklist for SOE procedures and formats are available at:

http://www.adb.org/documents/handbooks/loan_disbursement/chap-09.pdf

40

63. DENR will transfer fund to other government agencies or LGUs for undertaking specific activities of the project (other than rehabilitation and improvement of local infrastructures), by executing Memorandum of Agreement with the concerned party, specifying the terms and conditions of the release of funds and the corresponding duties and responsibilities. (See Appendix 4. Fund Administration)

64. Community-based protection and monitoring will be implemented through the voluntary undertaking and commitment of participating communities who will be given block grants. Block grants, amounting to not more than $20,000 each, are provided in tranches based on work and financial plan and performance indicators agreed upon with the beneficiary group. Indicators must relate to physical conditions of the protected forest rather than to labor or materials inputs. For IPOs identified for the implementation of “PES” or payment for environmental services, the block grants will be used for the establishment of revolving fund which will eventually receive ‘PES’ revenues for sustainably managing their area in the watershed. The DENR-CENROs will validate and certify the completion/performance of the specified indicator(s) for each beneficiary group and submit to the DENR- NPCO for approval. Funds, amount per tranche, will be transferred from appropriate imprest accounts to the beneficiaries’ bank accounts, as a block grant. Liquidation of the amounts provided as block grants will be done against the Memorandum of Agreement between the EA/IA and the IPO/PO on the grant and the related bank statement of the respective PO/IPO. Eligibility criteria for block grant and monitoring mechanism are presented in Appendix 5.

65. Before the submission of the first withdrawal application, the borrower should submit to ADB sufficient evidence of the authority of the person(s) who will sign the withdrawal applications on behalf of the borrower, together with the authenticated specimen signatures of each authorized person. The minimum value per withdrawal application is US$100,000, unless otherwise approved by ADB. The NPCO/Implementing Agencies are to consolidate claims to meet this limit for reimbursement and imprest account claims. Withdrawal applications and supporting documents will demonstrate, among other things that the goods, and/or services were produced in or from ADB members, and are eligible for ADB financing.

C. Accounting

66. The DENR, DA and MDFO will maintain separate project accounts and records by funding source for all expenditures incurred on the Project. Project accounts will follow National Government Accounting System (NGAS) principles and practices.15 67. The participating LGUs will likewise follow the NGAS for accounting Project funds that will be transferred to them from DENR, DA or MDFO. Project funds that may be transferred by the DENR to the LGU through Memorandum of Agreement for undertaking specific activities shall be treated as Trust Fund by the LGU. Funds transferred through the DA/MDFO for rural infrastructure requiring counterpart funding or contribution from the LGU shall not be recorded as Trust Fund but as Special Account in the General Fund of the LGU. Separate bank account for each funding source will be maintained for the Trust Fund, MDFO Special Account and LGU contribution or counterpart funds.

68. The LGU asset (including bank accounts), liability and equity accounts for the Trust fund, MDFO Special Account and counterpart fund must be closed upon project completion, with all the balances transferred to the appropriate accounts in General Fund of the LGU. (See

15 National Government Accounting System as updated through COA issuances.

41

Appendix 6 for pertinent excerpts of NGAS for LGUs. Trust Fund and Special Funds for Accounting for the Project Funds) D. Auditing

69. The Executing Agency will cause the detailed consolidated financial statements to be audited in accordance with COA's audit regulations by an auditor acceptable to ADB. The audited financial statements will be submitted in the English language to ADB within 9 months of the end of the fiscal year by the executing agency in view of the decentralized nature of the project and difficulty of LGUs in submission of documents. The annual audited financial statements will include a separate audit opinion on the use of the imprest accounts and the SOE procedures. The Government and the Executing Agency have been made aware of ADB’s policy on delayed submission, and the requirements for satisfactory and acceptable quality of the audited financial statements. ADB reserves the right to verify the project's financial statements to confirm that the share of ADB’s financing is used in accordance with ADB’s policies and procedures.

42

VI. PROCUREMENT AND CONSULTING SERVICES

A. Assessment of Procurement Capacity

70. DENR adopted a Customized Manuals of Procurement, which was approved by the Government Procurement Policy Board (GPPB) in its Resolution No. 31-2007. The Manual is consistent with the local procurement procedures and with ADB Procurement Guidelines. In adopting the Customized Manuals of Procurement, DENR has maintained in its FASPO, a separate Bids and Awards Committee (BAC) and institutionalized the ad-hoc BAC Secretariat into a Procurement Unit within FASPO.

71. Improved procurement capacity of the DENR is apparent in the improved disbursement rate, a measure of financial performance used in the ODA Portfolio Review together with availment rate. NEDA’s ODA Portfolio Review for 2009 to 2011 used a 70% benchmark on the availment and disbursement to measure annual and historical financial performance of the IA16. For 2009, DENR was not able to achieve the 70% benchmark for disbursement; for 2010, its disbursement rate improved rising above 70%. However, for 2011, disbursement rate again fell below the 70% benchmark, mainly due to Integrated Coastal Resources Management Project (ICRMP). Its availment rate was below the benchmark for the 3 years under review.

72. For 2010 & 11, prolonged procurement was experienced by 2 of 4 DENR projects, (1 for each year) evaluated for ODA Portfolio Review; ICRMP in 2010 and National Program Support for Environment and Natural Resources Management Program (NPSENRMP) in 2011, Prolonged procurement in 2011 was attributed to “poor bid evaluation practices of some Regional Offices” of cadastral bidding documents. It should be noted that this procurement issue concerns Regional offices rather than the CO, highlighting the improved CO capacities and the need for further enhancement at the Regional Offices. Procurement is prolonged as compared to the timeline prescribed in the guidelines of Development Partner or RA 9184 (GPPB).

73. DENR also approved in March 2010 and is piloting the CDD Procurement Manual for Community-Based Watershed/Ecosystem Management. The Manual is in the process of GPPB approval.

74. To prevent delays in project implementation due to procurement, advance contracting will be undertaken under this project. 75. Advisory and consultancy services on procurement will be made available before and during project implementation by the ADB. B. Advance Contracting

76. All advance contracting will be undertaken in conformity with ADB’s Procurement Guidelines (April 2010, as amended from time to time) (ADB’s Procurement Guidelines)17 and

16 The indicative performance benchmark is based on historical disbursement and availment fogures, where

availment and disbursement rates averages for the last 10 years do not fall below 70 percent. (From 2011 ODA Portfolio Review)

17 Available at: http://www.adb.org/Documents/Guidelines/Procurement/Guidelines-Procurement.pdf; http://csrn.adb. org; http://csrn.adb.org:8080/csrn/login.jsp; http://wwwadb.org/Consulting/loan-rfp.asp; http://adb.org/Consulting/all-

43

ADB’s Guidelines on the Use of Consultants (2010, as amended from time to time) (ADB’s Guidelines on the Use of Consultants).18 The issuance of invitations to bid under advance contracting will be subject to ADB approval. The Executing and Implementing Agencies have been advised that approval of advance contracting does not commit ADB to finance the Project.

77. The Project will undertake advance contracting for Project related eligible expenditures. Such expenditures must be related to enabling the Executing and Implementing Agencies/Units to immediately operate and undertake Project activities upon effectiveness of the loan. These expenditures include procurement of office facilities, equipment, satellite data, communication, consultancy and other services necessary for the NPCO and participating DENR Field Offices to readily operate at the start of the Project period and reduce lag time during implementation. Details of these advance procurement must be in accordance with pertinent ADB Guidelines. C. Procurement of Goods, Works and Consulting Services

78. All procurement of goods and works will be undertaken in accordance with ADB’s Procurement Guidelines.

79. Procurement of civil works and goods will be carried out in accordance with ADB's Procurement Guidelines (2010, as amended from time to time). Since the amounts of the contracts are not large enough to attract foreign suppliers and contractors, majority of the contracts will be tendered using National competitive bidding (NCB). Smaller contracts (below $100,000) will be procured using Shopping or Force Account. Purchases of small or off-the shelf items for amount less than US$500.00 equivalent will be undertaken by the NPCO without consultation with Executing Agency and ADB but will be included in its monthly financial report.

80. Before the start of any procurement ADB and the GOP will review the public procurement law and IRR to ensure consistency with ADB’s Procurement Guidelines and updated National Competitive Bidding Annex.

81. An 18-month procurement plan indicating threshold and review procedures, goods, works, and consulting service contract packages and national competitive bidding guidelines is in Section D.

82. Relevant excerpts from the ADB’s Guidelines for Procurement are summarized in Appendix 7. A checklist for procurement of goods and services is provided in Appendix 8. 83. All consultants including nongovernment organizations (NGOs) will be recruited according to ADB’s Guidelines on the Use of Consultants (April 2010, as amended from time to time).19 Procurement of consulting packages shall be advertised through the Consulting Services Recruitment Notice (CSRN) at www.adb.org and in the Philippine Government Electronic Procurement System (PhilGEPS). The terms of reference for all consulting services are detailed in Section VI.E.

methods-loan.asp; http://www.adb.org/Consulting/ICS-Contract-Loan.pdf; http://www.adb.org/Documents/Manuals/ Consulting-Services-Operations-Manual/CSOM.pdf; http://www.adb.org/Consulting/toolkit-template.asp

18 Available at: http://www.adb.org/Documents/Guidelines/Consulting/Guidelines-Consultants.pdf 19 Checklists for actions required to contract consultants by method available in e-Handbook on Project

Implementation at: http://www.adb.org/documents/handbooks/project-implementation/

44

D. Procurement Plan

Basic Data Project Name: PHI: Integrated Natural Resources and Environmental Management Project

Country: PHI Executing Agency: Department of Environment and Natural Resources

Loan and Grant Amounts: $100 million loan from ADB Ordinary Capital Resources, $20 million loan from IFAD, $2.5 million grant from GEF and $1.41 million grant from CCF Loan (Grant) Number: XXXX

Date of First Procurement Plan: 21 June 2012 Date of this Procurement Plan: 21 June 2012

1. Process Thresholds, Review and 18-Month Procurement Plan

a. Project Procurement Thresholds

84. Except as the Asian Development Bank (ADB) may otherwise agree, the following process thresholds shall apply to procurement of goods and works:

Procurement of Goods and WorksMethod ThresholdInternational Competitive Bidding (ICB) for Works Above $5,000,000 International Competitive Bidding (ICB) for Goods Above $1,000,000 National Competitive Bidding (NCB) for Works Beneath that stated for ICB, Works National Competitive Bidding for Goods Beneath that stated for ICB, Goods Shopping for Works Below $100,000 Shopping for Goods Below $100,000 Force Account for Works Below $100,000 Community Participation Works Below $50,000

b. ADB Prior or Post Review

85. Except as ADB may otherwise agree, the following prior or post review requirements apply to the various procurement and consultant recruitment methods used for the project.

Procurement Method Prior or Post Comments

Procurement of Goods and Works NCB Works Prior The first NCB procurement for Goods and

the first NCB procurement for Works shall be submitted for ADB prior review and approval; subsequent NCB procurements shall be subject to post reviews

NCB Goods

Prior

Shopping for Works Post Shopping for Goods Post Force Account Prior Prior review of first document Community Participation Works Post Prior review of first document

Recruitment of Consulting Firms Quality- and Cost-Based Selection (QCBS) Prior Quality-cost weighting ratio

of 80:20 Consultants Qualifications Selection (CQS) Post

Recruitment of Individual Consultants Individual Consultants Prior Applied in accordance with the

Guidelines on the Use of Consultants (2010, as amended from time to time)

45

c. Goods and Works Contracts Estimated to Cost More Than $1 Million

86. The following table lists goods and works contracts for which procurement activity is either ongoing or expected to commence within the next 18 months.

General Description

Contract Value ('$000)

Procurement

Method Prequalification of Bidders (y/n)

Advertisement Date (quarter/year) Comments

None

d. Consulting Services Contracts Estimated to Cost More Than

$100,000

87. The following table lists consulting services contracts for which procurement activity is either ongoing or expected to commence within the next 18 months.

General Description

Contract Value ('$000)

Recruitment Method

Advertisement Date

(quarter/year)

International or National

Assignment Comments

Consulting services for Watershed Management, Biodiversity and Investment Plans

877.0 QCBS (80:20) - STP

QIV/2012/ QI 2013

International and National

GEF Funded

Consulting Services: Project Management Office – assisting Professionals and Technical Extension Staff

1,416.1 Individual QIV 2012/Q1 2013 National Advance contracting to be done by NPCO; IFAD Funded

Consulting services for Project Management and implementation

4,473 QCBS (80:20) FTP

Q1/2013 International/ National

ADB Funded

Carbon Baseline Survey 268.8

QCBS (80:20) – STP

QII/2013 International and National

Advance contracting; to be done by NPCO

QCBS - quality and cost based selection; FTP - full technical proposal; STP - simplified technical proposal

e. Goods and Works Contracts Estimated to Cost Less than $1 Million and Consulting Services Contracts Less than $100,000

88. The following table groups smaller-value goods, works and consulting services contracts for which procurement activity is either ongoing or expected to commence within the next 18 months.

General Description

Value of Contracts

('$000, cumulative) Number of Contracts

Procurement / Recruitment

Method1 Comments

Satellite Images & Data Acquisition

716.0 2 NCB

GIS Data Base Installation

476.0 5 NCB

46

General Description

Value of Contracts

('$000, cumulative) Number of Contracts

Procurement / Recruitment

Method1 Comments 4-wheel double cab pickup, for regional offices

127.7 4 Shopping

Motorcycles for Municipal Offices

196.6 4 Shopping

Computers/printers for provinces

68.9 4 Shopping

Computers/printers for Municipal Government Units

31.5 4 Shopping

Equipment for Project Performance, Monitoring & Evaluation (computer, software and peripherals)

23 1 Shopping

2. Indicative List of Packages Required Under the Project

89. The following table provides an indicative list of all procurement (goods, works and consulting services) over the life of the project. Contracts financed by the Borrower and others should also be indicated, with an appropriate notation in the comments section.

Indicative List of Packages Required Under the ProjectEstimated Value

($'000, cumulative)

Estimated No. of Contracts Procurement methods Comments

1.1 Sattelite Images & Data Acquisition (4 packages) 1,046.0 4 NCB1.2 Carbon Baseline Survey 268.8 1 QCBS (80:20) - STP

1.3 GIS Data Base Installation- URB GDSS Central Operations Center- URB GDSS Nodes

1.4 Consulting services for Watershed Management, Biodiversity and Investment Plans

877.0 2 QCBS (80:20) - STP

2.121,629.2 Multiple NCB

16,000.0 Multiple FA

2.2 Conservation Forestry 42,630.9 Multiple CPW

2.3 Commercial Forestry 16,562.7 Multiple CPWExclusive of beneficiary

contribtion in kind

2.4 Conservation Farming 8,785.5 Multiple CQS (national)

3.1 Land use assessment and URB/WS Management Planning 937.5 5 CQS (national)

3.2 Institutional and policy support for LGUs 465.7 4 CQS (national)

3.3 REDD 140.8 1 CQS (national)

3.4 Watershed Management 454.8 3 CQS (national)

4.1 4-wheel double cab pickup, for regional offices 127.7 4 Shopping4.2 Computers/printers for provinces 68.9 4 Shopping4.3 Motorcycles for Municipal Offices 776.9 4 Shopping4.4 Computers/printers for Municipal Government Units 174.3 4 Shopping4.5 Consulting Services: Technical Extension Implementation (Staff 393.1 12 Individual (National)4.6 Consulting services for Project Management and Implementation 4,473.6 4 QCBS (80:20) - FTP4.7 Consulting Services: Project Assisting Professionals 1,023.0 7 Individual (National)4.8 Consulting service for Project Performance, Monitoring & 116.1 3 CQS (national)4.9 Equipment for Project Performance, Monitoring & Evaluation

(computer, software and peripherals) 46.0 2 Shopping

Total packages 117,638.0

FTP - full technical proposal; STP - simplified technical proposal; FA Force AccountCPW - Community participation

NCB - national competitive bidding; QCBS - quality and cost based selection; CQS - Consultants' qualification selection

Component 4: Project Management & Support Services

Component 3: Capacity Building

Component 2: URB Field InvestmentsCivil Works (rural roads, small-scale irrigation, water supply, trading centers, and others to be determined at the detailed subproject feasibility phase)

NCB

With 20% LGU financing

General Description

639.5 5

Component 1: Land Use Assessment & Planning

47

3. National Competitive Bidding

a. General

90. The procedures to be followed for national competitive bidding shall be those provisions referring to open competitive bidding procedures set forth in Republic Act 9184 the Republic of the Philippines, effective 26 January 2003, and its Revised Implementing Rules and Regulations, effective 2 September 2009, with the clarifications and modifications described in the following paragraphs required for compliance with the provisions of the Procurement Guidelines, Section I and paras. 3.3 and 3.4 of Section III.

b. Eligibility

(i) Eligibility screening shall not be applied. However, bids that do not contain any of the following documents will not pass the documentary compliance check: (i) evidence of the required financial, technical or production capability; (ii) audited financial statements; (iii) credit line, or cash deposit certificate; (iv) bid security; and (v) authority of the bid signatory.

(ii) National sanction lists may be applied only with prior approval of ADB

c. Advertising

91. Bidding of NCB contracts estimated at $500,000 or more for goods and related services or $1,000,000 or more for civil works shall be advertised concurrently with the general procurement notices on ADB’s website.

d. Price of Bidding Document

92. The price of bidding documents should be nominal, covering only reproduction and mailing/courier costs.

e. Price Ceiling

93. The approved budget for the contract (ABC) may be published, but it shall not be stated or implied that bid prices may not exceed the ABC, or that bid evaluation will in any way take into account the ABC. The ABC, budgetary allocation, ceiling price, or similar estimates of contract value may not be used to reject bids without prior concurrence of ADB.

f. Preferences

(i) No preference of any kind shall be given to domestic bidders or for domestically manufactured goods.

(ii) Suppliers and contractors shall not be required to purchase local goods or supplies or materials.

(iii) Foreign suppliers and contractors from ADB member countries shall be allowed to participate, if interested, without first being required to associate with, or enter into joint venture with, local firms.

(iv) Foreign suppliers and contractors from ADB member countries shall be allowed to bid, without registration, licensing, and other government authorizations, leaving compliance with these requirements for after award and before signing of

48

contract.

g. Experience Qualification

94. For works contract, the experience qualification requirement shall be: (i) at least one previous contract at 80% of the estimated cost of the contract being procured; and (ii) an annual turnover from all works averaged over the last three years equal to 100% of the estimated cost of the contract being procured.

h. Anticorruption Provisions in Bidding Documents

95. Anticorruption provisions in the Instructions to Bidders section of ADB standard bidding documents (SBDs) shall be incorporated into NCB bidding documents including those under “Corrupt Practices” and “Eligible Bidders” clauses of the SBDs.

i. Bidding Period

96. Bidders shall be given a minimum period to prepare and submit bids of 4 weeks, counted from the date of invitation to bid or the date of availability of bidding documents, whichever is later.

j. Single Bid Submission

97. When a lone bidder obtains a bidding document and submits a bid at the deadline for bid submission under a post qualification bidding, bid opening and evaluation shall not proceed but it shall be considered a failure of bidding. Before taking any alternative procurement action, a proper assessment of the cause of lack of participation shall be made and ADB prior approval shall be sought for any proposed subsequent action.

k. Shopping Method

98. If included as a procurement method in the Procurement Plan, “Shopping” shall be undertaken in accordance with the ADB Procurement Guidelines (April 2010, as amended from time to time).

l. Contract Amendment

99. In case of contracts for prior review, modifications exceeding 15% of contract amount and material changes in the conditions during implementation require prior ADB concurrence.

m. Member Country Restrictions

100. Bidders must be nationals of member countries of ADB, and offered goods must be produced in member countries of ADB.

101. Most, if not all, rural infrastructure projects that will be funded from loan proceeds are relatively small and unlikely to attract international contractors.

102. In accordance to ADB procurement guidelines, contracts costing less than US$5,000,000 equivalent will be awarded through National Competitive Bidding (NCB) and will be guided by R.A. 9184 otherwise known as the “Government Procurement Reform Act” as long as the provisions are consistent with ADB Procurement Guidelines for civil works.

49

103. LGUs signifying intention to implement by “Force Account” will be evaluated by the NPCO, through the DENR Regional/Provincial Offices or the PPMO for technical and equipment capability and will secure authorization from this office. Procurement of “Goods” under “Force Account” works will also be guided by R.A. 9184 consistent with ADB Procurement Guidelines for goods.

104. Procurement of “Civil Works” and “Goods” will be the main responsibility of the municipal LGU through its duly constituted Bids and Awards Committee (BAC) in accordance with the provisions of R.A. 9184.

105. In support to the national government’s employment generation program and in consideration that majority of the sub-components are small scale. Labor Based–Equipment Supported (LB/ES) methods of construction shall be adopted whenever possible. This should also allow communities to be engaged as “pakyaw” labor contractors to ensure full involvement as well as help in the process of people empowerment and in building up a sense of ownership and responsibility.

106. Regardless of whether implementation is carried out by contract or by LGU “Force Account,” pursuant to R.A. 5635 dated December 12, 1988, at least fifty (50) percent of the unskilled and thirty (30) percent of the skilled labor requirement shall be taken from the beneficiary community. Hence, beneficiaries within the community shall be the first priority in the selection of labor force. The women shall be given equal opportunity to join the labor force.

107. In involving community participation in undertaking Project activities, particularly in forestry protections, conservation, rehabilitation and reforestation, the NPCO shall propose procedures, specifications and contract packaging for the Project that are acceptable to ADB for approval by the Government Procurement Policy Board (GPPB) or apply the recently adopted DENR’s CDD Procurement Manual for Community-Based Watershed/Ecosystem Management. Local community participation in service delivery is allowed under Sec 53.12 the IRR of RA 9184 if it will ensure project sustainability and meet social objectives, with the procedures subject to approval by the GPPB Community participation is also allowed under ADB Procurement Guidelines, para 3.17 and will be followed.

108. Where community, PO/IPO, private entity, NGO, or local government participation is in the nature of partner-implementer, the DENR can, directly or indirectly through its participating Regional or Provincial Offices, execute partnership agreements with the particular community or LGU for specific undertaking in their area with terms and conditions acceptable to ADB.

109. DENR/NPCO and Project Implementing Agencies/Units will monitor and inspect all contractors’ activities related to fund withdrawals and financial settlements. The NPCO will further ensure that all contracts financed by the Loan proceeds include provisions specifying the ADB’s right to audit and examine the records and accounts of contractors, suppliers, consultants and other service providers as they relate to the Project.

E. Consultant's Terms of Reference

110. A total of 778 person months (PM) of international (30 PM) national (748 PM) consultants (breakdown presented below) would be assigned to various coordination offices at the national and at the provincial level to provide assistance in implementation of the Project with concurrent support in capacity building including preparation of INREM Indicative Development Plans for each River Basin, Watershed Management Plans for each watershed

50

and associated subproject level feasibility studies, including various environmental and social safeguards documents to be approved for financing under the Project. In addition, 1,464 person-months of contractual personnel, composed 492 Assisting Professionals (7) to staff the NPCO and 936 person-months of (12) field staff to assist in the implementation of Technical Extension will be contracted. SUMMARY OF CONSULTING SERVICES Unit 2013 2014 2015 2016 2017 2018 2019 Total

Component 1. River Basin and Watershed Management Plans

Internatioinal Consultants

Biodiversity Specialist - Int'l Consultant p-m 1.0 2.0 - - - - - 3

Climate Change and REDD, Intl p-m - 2.0 2.0 - 2.0 2.0 - 8

Carbon Stock Assessment Specialist p-m 3.0 6.0 3.0 - - - - 12

Watershed Management Specialist- Int'l p-m 2.0 3.5 - - - - - 5.5

National Consultants p-m

Biodiversity Specialist - National p-m 3.0 7.0 4.0 2.0 - - - 16

Climate change and REDD, Natl p-m - 4.0 4.0 - 4.0 4.0 - 16

Environmental Safeguards and Cumulative Environmental Assessment p-m 3.0 4.0 4.0 4.0 4.0 4.0 4.0 27

Geographical Information Systems & Mapping p-m 2.0 2.0 2.0 2.0 - - - 8

Information, Education and Communication and Public Participation p-m 3.0 4.0 4.0 4.0 4.0 - - 19

Land Use and Land Capability Assessment, Planning and Management p-m 3.0 5.0 4.0 - - - - 12

Legal and Institutional Specialist p-m 3.0 3.0 3.0 3.0 3.0 - - 15

Market Specialist /w p-m 3.0 12.0 12.0 3.0 - - - 30

Planning and Regulatory Specialist p-m 3.0 5.0 4.0 - - - - 12

Policy, Institutions and Legislation p-m 3.0 8.0 8.0 8.0 6.0 4.0 3.0 40

Resource Economist p-m - 4.0 4.0 4.0 - - - 12

Social Safeguards (incl. IPs and Resettlement), Poverty and Gender p-m 2.0 8.0 8.0 8.0 4.0 2.0 - 32

Strategic Environmental Assessment p-m 2.0 6.0 6.0 2.0 - - - 16

Watershed Management Specialist p-m 3.0 12.0 8.0 3.0 - - - 26

Unallocated p-m - 7.0 9.0 9.0 10.0 9.0 - 44

Resettlement Specialist

Component 2 Smallholder/Commercial/institutional Investments

National Consultants

Conservation Farming/Technical Extension p-m 3.0 12.0 12.0 12.0 - - - 39

Rural infrastructure engineer p-m - 4.0 4.0 4.0 4.0 - - 16

Rural Infrastructure Economist p-m - 4.0 4.0 4.0 4.0 - - 16

Component 3 Enhanced Capacity for River Basin and Watershed Management


GIS Training for Participatoy Planning/Monitoring -GIS Specialist p-m 3.0 6.0 6.0 6.0 6.0 6.0 - 33

Institutional Assessment and Capacity Building p-m 3.0 9.0 6.0 - - - - 18

Training of Tainers/Community Based Info Sharing p-m 2.0 1.0 1.0 1.0 - - - 5

Training Specialist p-m 3.0 9.0 6.0 4.0 - - - 22

Component 4. Project Management & Support Services

International Consultant

Project Performance Evaluation Specialist- Int'l p-m - - - - - - 1.5 1.50


Lead Consultant, Ntrl Rsrcs & Frstry p-m 3.0 10.0 10.0 6.0 6.0 6.0 6.0 47

River Basin Based, Ntrl Rsrcs & Frstry p-m 24.0 36.0 36.0 36.0 28.0 20.0 18.0 198

Financial Management, Procurement and PBGS p-m 2.0 6.0 4.0 - - - - 12

GIS-based Database development for Project performance Monitoring and E p-m 3.0 2.0 2.0 - 2.0 1.0 - 10

Project Performance Evaluation Specialist p-m - - - - - - 2.0 2

Project Performance, Monitoring & Evaluation Specialist p-m 1.0 - - 2.0 - - 2.0 5

51

SummaryComponent 1. River Basin and Watershed Management Plans

International Consultants p-m 6.0 13.5 5.0 - 2.0 2.0 - 28.50

National Consultants p-m 33.0 91.0 84.0 52.0 35.0 23.0 7.0 325.00

Component 2. Smallholder/Commercial/institutional Investments

International Consultants p-m - - - - - - - -

National Consultants p-m 3.0 20.0 20.0 20.0 8.0 - - 71.00


International Consultants p-m - - - - - - - -

National Consultants p-m 11.0 25.0 19.0 11.0 6.0 6.0 - 78.00


International Consultants p-m - - - - - - 1.5 1.50


TOTAL

International Consultants p-m 6.0 13.5 5.0 - 2.0 2.0 1.5 30.00


TOTAL CONSULTANTS - PERSON-MONTHS 86.0 203.5 180.0 127.0 87.0 58.0 36.5 778.00

Contracted Project Staff (NPCO)


Support Staff: Technical Extension Implementation p-m 72.0 144.0 144.0 144.0 144.0 144.0 144.0 936

Project Assisting Professionals


Project Manager (Deputy Project Director) p-m 6.0 12.0 12.0 12.0 12.0 12.0 12.0 78

Social Development Specialist p-m 6.0 12.0 12.0 12.0 12.0 12.0 12.0 78

Development Communications Specialist p-m 6.0 12.0 12.0 12.0 12.0 12.0 12.0 78

Monitoring and Evaluation Specialist p-m 6.0 12.0 12.0 12.0 12.0 12.0 12.0 78

Finance and Procurement Specialist p-m 6.0 12.0 12.0 12.0 12.0 12.0 12.0 78

Investment and Marketing Specialist p-m 6.0 12.0 12.0 12.0 12.0 12.0 12.0 78

GIS Specialist p-m 6.0 12.0 6.0 - - - - 24

Total Contracted Project Staff 114.0 228.0 222.0 216.0 216.0 216.0 216.0 1,428 111. Detailed Terms of Reference for key disciplines are presented in Appendix 9.

52

VII. SAFEGUARDS

112. Project activities, including those under subprojects, will comply with (a) applicable laws and regulations of the Philippines; (b) ADB and IFAD environment policies and regulations, specifically ADB's Environment Policy 2002; (c) environmental assessment and review procedures framework as prepared and agreed for the Project; and (d) the environmental monitoring plan as set out in the SIEE, including preparing IEE reports for subprojects. The Government will report compliance with ADB's Environment Policy in DENR's quarterly progress reports.

113. The following table summarizes the anticipated environmental impacts under the Project as well as the respective mitigation measures and institutional arrangements to address the same. Summary of Environmental Impacts, Mitigation Measures and Institutional Arrangement

Stage/Component/ Environmental Impacts

Mitigation Measures Institutional Arrangements

Project Location/Design Stage URB Field Investment Component through Forest Protection, ANR and Demonstration Farms:

No significant impact Nothing to mitigate but additional environmental safeguards are recommended

PPMO, with PTFCF and ICRAF technical assistance, to coordinate and supervise the implementation of additional environmental safeguards

URB Livelihood Enhancement Component through Rural Infrastructure Rehabilitation and Improvement:


PPMO and municipalities of Bauko, Sagada and Sabangan to coordinate and supervise the implementation of additional environmental safeguards

Construction/Establishment Stage URB Field Investment Component through Forest Protection, ANR and Demonstration Farms:


PPMO, with PTFCF and ICRAF support, to coordinate and supervise the implementation of additional environmental safeguards



PPMO and the municipalities of Bauko, Sagada and Sabangan to coordinate and supervise the implementation of additional environmental safeguards

Operation/Maintenance Stage URB Field Investment Component through Forest Protection, ANR and Demonstration Farms:

Reduce access to forest resources consultation with the affected people PPMO to conduct consultation in

53

Stage/Component/ Environmental Impacts

Mitigation Measures Institutional Arrangements

due to effective forest protection or group coordination with DENR field office and municipalities of Bauko, Sagada and Sabangan

conduct of technical extension and information, education and communication (TE-IEC),

PPMO with support from DENR field offices and relevant NGAs, to undertake this activity with target community/group

provision of appropriate property right or tenurial instruments,

DENR to provide appropriate tenurial instrument

land use zoning DENR Regional Office, in coordination with National Project Coordinating Office (NPCO) and municipalities of Bauko, Sagada and Sabangan

establishment of agroforestry and commercial tree plantation

ICRAF to provide technical assistance to farmers/private sectors interested in agroforestry and commercial tree plantation


For road access rehabilitation and Level 2 potable water supply— No significant impact

For road access and potable water supply, there is nothing to mitigate but additional environmental safeguards are recommended for this component;

PPMO and the municipalities of Bauko, Sagada and Sabangan to coordinate and supervise the implementation of additional environmental safeguards

For CIS: Excessive use of irrigation water, which could lead to increase leaching of soil nutrients, change/degrade soil characteristics of farms, induce scouring of irrigation canals and reduce downstream water supply

regulate the application of irrigation water

Farmers-irrigators association to regulate the use of irrigation water, with technical assistance from National Irrigation Administration (NIA) and the municipalities of Bauko, Sagada and Sabangan

training, monitoring and supervision of farmers-irrigators on proper use of irrigation system.

The municipalities of Bauko, Sagada and Sabangan to conduct training, monitoring and supervision of farmers-irrigators, with technical assistance from NIA

114. The Project and its subprojects and components will be governed by the RF and IPPF to be approved by the government and ADB. Where involuntary resettlement will occur (e.g., acquisition of assets and sources of livelihood and incomes, and/or restriction to hitherto held/occupied land or resources) in any Project subproject or component, a RP will be prepared and submitted to ADB for approval prior to actual displacement. Where the Project subproject or component is located in areas occupied by IP communities, an IPP will be prepared and submitted to ADB for approval as a precondition to the appraisal (and inclusion in the Project) of that subproject or component. Both plans will include a strategy for addressing gender concerns and ensuring the meaningful participation of women in the project.

115. There are two social safeguards critical for monitoring: IP and IR safeguards. It is recommended that in project sites where there are IPs, project M&E for the IPP and RP will be conducted as one joint activity to avoid redundancy, save on resources, and lessen disturbance on affected households. As separate undertakings though, the key monitoring considerations are presented in the subsequent sections of this document.

54

116. Grievance Redress Mechanism. The grievance redress mechanism (GRM) is meant for people seeking satisfactory resolution of their complaints on the environmental performance of the project. The mechanism will ensure that (i) the basic rights and interests of every affected person by poor environmental performance of the project are protected, and (ii) their concerns arising from the poor environmental performance of the project during the phases of design, construction and operation activities are effectively and timely addressed.

117. The NPCO, the Regional Project Coordination Office (at the respective DENR Regional Office) and the PPMO will make the public aware of the GRM through public awareness campaigns, training and capacity building. The contact details of the people in charge of grievance handling in the respective PPMO, the Regional Project Coordination Office, and the NPCO will be placed on notice boards outside their offices.

118. Grievances will be handled following the procedures outlined below:

(i) The grievance shall be filed by the affected person with the PPMO who will act within 15 days upon receipt thereof;

(ii) If no understanding or amicable solution can be reached, or if the AP does not receive a response from the PPMO within 15 days of registry of the complaint, he/she can appeal to the concerned Regional Project Coordination Office, which will act on the complaint/grievance within 15 days from the day of its filing;

(iii) If the affected person is not satisfied with the decision of the Regional Project Coordination Office, he/she can appeal to NPCO within 15 days of receiving the decision of the Regional Project Coordination Office.

(iv) If the affected person is not satisfied with the decision of the NPCO, he/she as the last resort can submit the complaint to any court of law.

119. Affected persons shall be exempted from all administrative and legal fees incurred pursuant to the grievance redress procedures. All complaints received in writing from affected persons will be documented and shall be acted upon immediately according to the procedures detailed above.

A. IP Safeguards Monitoring

120. There will be two monitoring mechanisms for the IPP/ADSDPP: internal monitoring and external monitoring that will determine if the IPP/ADSDPP is being carried out in accordance with the IPPF. The NPCO shall conduct the supervision and in-house monitoring of implementation of the IPP/ADSDPP. The procedure for monitoring will be guided by the monitoring, evaluation, and reporting arrangements set forth in the IPP/ADSDPP. The external monitoring agency (EMA) will verify internal monitoring reports. Prescribed indicators for internal monitoring as well as guidance for measuring each indicator are presented below.

55

IP Safeguards Internal Monitoring Indicators

Monitoring Indicators Basis for Indicators

1. Budget and timeframe

Have capacity building and training activities been completed on schedule? Are IPP and MOA activities being implemented and targets achieved against the agreed time

frame? Are funds for the implementation of the IPP/ADSDPP allocated to the proper agencies on time? Have agencies responsible for the implementation of the IPP/ADSDPP received the scheduled

funds? Have funds been disbursed according to the IPP/ADSDPP? Has social preparation phase taken place as scheduled? Have all clearance been obtained from the NCIP? Have the consent of the IP community in the affected ancestral domain been obtained?

2. Public Participation and Consultation

Have consultations taken place as scheduled including meetings, groups, and community activities? Have appropriate leaflets been prepared and distributed?

Have any APs used the grievance redress procedures? What were the outcomes? Have conflicts been resolved? Was the social preparation phase implemented? Were separate consultations done for Indigenous Peoples? Was the conduct of these consultations inter-generationally exclusive, gender fair, free from

external coercion and manipulation, done in a manner appropriate to the language and customs of the affected IP community and with proper disclosure?

How was the participation of IP women and children? Were they adequately represented? 3. Benefit Monitoring

What changes have occurred in patterns of occupation, production and resources use compared to the pre-project situation?

What changes have occurred in income and expenditure patterns compared to pre-project situation? What have been the changes in cost of living compared to pre-project situation? Have APs’ incomes kept pace with these changes?

What changes have taken place in key social and cultural parameters relating to living standards? What changes have occurred for IPs? Has the situation of the IPs improved, or at least maintained, as a result of the project? Are IP women reaping the same benefits as IP men? Are negative impacts proportionally shared by IP men and women?

Adapted from ADB’s Handbook on Resettlement: A Guide to Good Practice. 1998.

121. External Monitoring Agency. External Monitoring will be commissioned by the NPCO to undertake independent external monitoring and evaluation. The EMA for the Project will be either a qualified individual or a consultancy firm with qualified and experienced staff.

122. The Terms of Reference for the EMA shall be prepared by the NPCO and shall be acceptable to ADB prior to engagement. NPCO is responsible for the engagement of the EMA; ensures that funds are available for monitoring activities; and submits monitoring reports to the ADB.

123. Specifically, the activities of the EMA are as follows:

(i) Verify results of internal monitoring; (ii) Coordinate with the NCIP regarding the monitoring and evaluation of the situation

of affected IP communities, whether inside (covered by ADSDPP) or outside ancestral domains (covered by the IPP);

(iii) Verify and assess the results of the Project IEC for IPs and non-IPs; (iv) Assess efficiency, effectiveness, impact and sustainability of IPP/ADSDPP

56

implementation; (v) Suggest modification in the implementation procedures of the IPP/ADSDPP, if

necessary, to achieve the principles and objectives of the IP Framework; (vi) Review of the handling of compliance and grievances cases.

124. Indicators and guide measures for external monitoring are presented in the table below.

IP Safeguards External Monitoring Indicators

Monitoring Indicators

Basis for Indicators

1. Basic information on AP households

Location Composition and structures, ages, education and skill levels Gender of household head Ethnic group Access to health, education, utilities and other social services Housing type Land use and other resource ownership and patterns Occupation and employment patterns Income sources and levels Agricultural production data (for rural households) Participation in neighborhood or community groups Access to cultural sites and events Value of all assets forming entitlements and resettlement entitlements

2. Levels of AP Satisfaction

How much do IPs know about grievance procedures and conflict resolution procedures? How satisfied are those who have used said mechanism?

How much do the affected IP communities know about the IP framework? Do they know their rights under the IP framework? How much do they know about the grievance procedures available to them? Do they know how to access to it? How do they assess the implementation of the IPP/ADSDPP?

3. Other Impacts Were there unintended environmental impacts? Were there unintended impacts on employment or incomes?

4. IP Indicators Are special measures to protect IP culture, traditional resource rights, and resources in place? How are these being implemented? Are complaints and grievances of affected IPs being documented? Are these being addressed? Did the project proponent respect customary law in the conduct of public consultation, in IPP/ADSDPP

implementation, in dispute resolution? Did the project proponent properly document the conduct of public consultations, the formulation and

implementation of the IPP/ADSDPP? Were the public consultations inter-generationally inclusive? Were women and children proportionally represented? Were representatives of the NCIP present in the public consultations? During the monitoring of

IPP/ADSDPP implementation? Adapted from ADB’s Handbook on Resettlement: A Guide to Good Practice. 1998.

125. Schedule of Monitoring and Reporting. The NPCO shall establish a schedule for the implementation of MOAs and IPPs taking into account the project’s implementation schedule. It is expected that one month prior to the start of subproject implementation, internal and external monitoring key actors shall have determined all IPP activities.

57

126. Internal monitoring will be done by NPCO, while external monitoring will be carried out by an External Monitoring Agency to be commissioned by the Project.

127. Compliance Monitoring. This is the first activity that both internal and external monitoring entities shall undertake to determine whether or not IPPs and MOAs were carried out as planned and according to this policy. The EMA will submit an Inception Report and Compliance Monitoring Report one month after receipt of Notice to Proceed for the engagement. The engagement of the EMA is scheduled to meet the Policy’s requirement of concluding MOA and IPP implementation activities at least one (1) month prior to the start of zoning and/or civil works. 128. Quarterly Monitoring. The EMA will be required to conduct quarterly monitoring of MOA and IPP implementation activities.

129. Final Evaluation. Final evaluation of the implementation of the IPP will be three months after its completion. The EMA shall coordinate with the NCIP and the affected IP community on the dates of the final evaluation for both the IPP and the MOA.

130. Post-Evaluation. This activity will be undertaken one year after the completion of a project/subproject in order to determine whether the social and economic conditions of the affected IPs have improved or have been restored to their pre-project levels.

131. Internal and external monitoring reports will be made available to all implementing units, including the IP communities. The EMA is accountable to the NPCO. The NPCO submits copies of internal and external monitoring reports to ADB.

B. IR Safeguards Monitoring

132. Internal Monitoring. The main objective of monitoring the implementation of the RPs, MOA with IPs in ADs, and IPPs is to determine if these RPs, MOA, and IPPs are being carried out in accordance with this RF.

133. The NPCO shall conduct the supervision and in-house monitoring of implementation of the RPs and the IPPs. The procedure for monitoring the MOA that the project proponent enters into with affected IPs inside ADs will be guided by the monitoring, evaluation, and reporting arrangements set forth in that MOA. The monitoring of the IPP for affected ICCs/IPs living outside ancestral domains will fall under IM in coordination with the NCIP. EM will verify IM Reports. IM indicators and guidance for measures per indicator are presented in the table below. IM reports will be made available to all implementing units, including the APs. The NPCO submits copies of IM Reports to ADB.

IR Safeguards Internal Monitoring Indicators Monitoring Indicators Basis for Indicators

1. Budget and timeframe Have all land acquisition and resettlement staff been appointed and mobilized for the field and office work on schedule?

Have capacity building and training activities been completed on schedule? Are resettlement implementation activities being achieved against the agreed implementation plan? Are IPP and MOA activities being implemented and targets achieved against the agreed time frame? Are funds for resettlement being allocated to resettlement agencies on time? Are funds for the implementation of the IPP and MOA allocated to the proper agencies on time? Have resettlement offices received the scheduled funds? Have agencies responsible for the implementation of the IPPs and MOA received the scheduled

58

Monitoring Indicators Basis for Indicators funds?

Have funds been disbursed according to the RP? Have funds been disbursed according to the IPPs and MOA? Has the social preparation phase taken place as scheduled? Has all land been acquired and occupied in time for project implementation? Have all clearance been obtained from the NCIP? Have the consent of the IP community in the affected ancestral domain been obtained?

2. Delivery of Compensation and Entitlements

Have all APs received entitlements according to numbers and categories of loss set out in the entitlement matrix?

Have APs received payments for affected structures and lands on time? Have APs losing from temporary land been compensated? Have all received the agreed transport costs, relocation costs, income substitution support and any

resettlement allowances, according to schedule? Have all replacement land plots or contracts been provided? Was the land developed as specified?

Are measures in train to provide land titles to APs? How many APs opted to donate their land to the government? How many APs did not receive payment? How many APs opted to donate their lands to the government? How many landholdings were subjected to quit claim? Easement? How many APs accepted the first offer at zonal valuation? How many APs rejected the first offer and accepted the second offer? How many APs resorted to expropriation? How many AP households have received land titles? How many APs have received housing as per relocation options in the RP? Does house quality meet the standards agreed? Have relocation sites been selected and developed as per agreed standards? Are the APs occupying the new houses? Are assistance measures being implemented as planned for host communities? Is restoration proceeding for social infrastructure and services? Are the APs able to access schools, health services, cultural sites and activities at the level of

accessibility prior to resettlement? Are income and livelihood restoration activities being implemented as set out in income restoration

Plan? For example utilizing replacement land, commencement of production, numbers of APs trained and provided with jobs, micro-credit disbursed, number of income generating activities assisted?

Have affected businesses received entitlements including transfer and payments for net losses resulting from lost business and stoppage of production?

3. Public Participation and Consultation

Have consultations taken place as scheduled including meetings, groups, and community activities? Have appropriate resettlement leaflets been prepared and distributed?

How many APs know their entitlements? How many know if they have been received? Have any APs used the grievance redress procedures? What were the outcomes? Have conflicts been resolved? Was the social preparation phase implemented? Were separate consultations done for Indigenous Peoples? Was the conduct of these consultations intergenerationally exclusive, gender fair, free from external

coercion and manipulation, done in a manner appropriate to the language and customs of the affected IP community and with proper disclosure?

How was the participation of IP women and children? Were they adequately represented? 4. Benefit Monitoring What changes have occurred in patterns of occupation, production and resources use compared to

the pre-project situation? What changes have occurred in income and expenditure patterns compared to pre-project situation?

What have been the changes in cost of living compared to pre-project situation? Have APs’ incomes kept pace with these changes?

59

Monitoring Indicators Basis for Indicators What changes have taken place in key social and cultural parameters relating to living standards? What changes have occurred for vulnerable groups? Has the situation of ICCs/IPs improved, or at least maintained, as a result of the project? Are IP women reaping the same benefits as IP men? Are negative impacts proportionally shared by IP men and women?

Derived from ADB Handbook on Resettlement: A Guide to Good Practice. 1998.

134. External Monitoring and Evaluation. External monitoring, to be carried out on a quarterly basis, will be commissioned by the NPCO as an independent external exercise. The EM for the Project will be either a qualified individual or a consultancy firm with qualified and experienced staff. The Terms of Reference for the EM shall be prepared by the NPCO and shall be acceptable to the Bank prior to the engagement. NPCO will be responsible for the engagement of EM; ensuring that funds are available for monitoring activities both for the EM and IM; and submitting EM and IM Monitoring Reports to the ADB. The NPCO shall provide copies of RPs, IDPs, MOA and other related documents of the monitoring activities for EM. Specifically, EM activities are as follows:

135. Verify results of internal monitoring;

136. Coordinate with the NCIP regarding the monitoring and evaluation of the situation of affected IP communities, whether inside (covered by the MOA) or outside ancestral domains (covered by the IPP);

a. Verify and assess the results of the information campaign for APs rights and entitlements, including the consultation with affected IPs living outside ancestral domain; b. Verify that the compensation process has been carried out with the procedures communicated with the APs and affected IPs during the consultations; c. Assess whether resettlement, MOA, and IPP objectives have been met; specifically, whether livelihoods and living standards have been restored or enhanced; d. Assess efficiency, effectiveness, impact and sustainability of resettlement, IPP, and MOA implementation, drawing lessons as a guide to future resettlement and indigenous peoples’ policy making and planning; e. Ascertain whether the resettlement, MOA, and IPP entitlements were appropriate to meet the objectives, and whether the objectives were suited to AP and IP conditions; f. Suggest modification in the implementation procedures of the RPs, MOA, and IPP, if necessary, to achieve the principles and objectives of the Resettlement Policy and IP Framework; g. Review on how compensation rates were evaluated; and h. Review of the handling of compliance and grievances cases.

137. EM reports will be made available to all implementing units, including the APs. The EM contractor is accountable to the NPCO and reports to the NPCO. The NPCO submits copies of EM Reports to ADB. Monitoring indicators and guidance for measures of listed indicators are shown below.

60

IR Safeguards External Monitoring Indicators Monitoring Indicators Basis for Indicators

1. Basic information on AP households

Location Composition and structures, ages, education and skill levels Gender of household head Ethnic group Access to health, education, utilities and other social services Housing type Land use and other resource ownership and patterns Occupation and employment patterns Income sources and levels Agricultural production data (for rural households) Participation in neighborhood or community groups Access to cultural sites and events Value of all assets forming entitlements and resettlement entitlements

2. Restoration of living standards

Were house compensation payments made free of depreciation, fees or transfer costs to APs? Have APs adopted the housing options developed? Have perceptions of “community” been restored Have APs achieved replacement of key social cultural elements? Have affected IP communities at least maintained their living standards prior to the project? Have proper measures been undertaken to protect their customs, indigenous structures?

3. Restoration of Livelihoods

Were compensation payments free of deduction for depreciation, fees or transfer costs to the APs? Were compensation payments sufficient to replace lost assets? Was sufficient replacement land available of suitable standard? Did transfer and relocation payments cover these costs? Did income substitution allow for re-establishment of enterprises and production? Have enterprises affected received sufficient assistance to re-establish themselves? Have vulnerable groups been provided income-earning opportunities? Are these effective and

sustainable? Do jobs provided restore pre-project income levels and living standards?

4. Levels of AP Satisfaction

How much do APs know about resettlement procedures and entitlements? Do APs know their entitlements?

Do they know if these have been met? How do APs assess the extent to which their own living standards and livelihood been restored? How much do APs know about grievance procedures and conflict resolution procedures? How

satisfied are those who have used said mechanism? How much do the affected IP communities know about the IP framework in the RP? Do they know their rights under the IP framework? How much do they know about the grievance procedures available to them? Do they know how to access to it? How do they assess the implementation of the MOA and the RPs?

5. Effectiveness of Resettlement Planning

Were the APs and their assets correctly enumerated? Was any land speculators assisted? Was the time frame and budget sufficient to meet objectives? Were entitlements too generous? Were vulnerable groups identified and assisted? How did resettlement implementers deal with unforeseen problems?

6. Other Impacts Were there unintended environmental impacts? Were there unintended impacts on employment or incomes?

7. IP Indicators Are special measures to protect IP culture, traditional resource rights, and resources in place? How are these being implemented?

61

Monitoring Indicators Basis for Indicators Are complaints and grievances of affected IPs/ICCs being documented? Are these being addressed? Did the project proponent respect customary law in the conduct of public consultation, in RP and

MOA implementation, in dispute resolution? Did the project proponent properly document the conduct of public consultations, the formulation and

implementation of the RP and the MOA? Were the public consultations inter-generationally inclusive? Were women and children proportionally represented? Were representatives of the NCIP present in the public consultations? During the monitoring of RP

and/or MOA implementation? Derived from ADB Handbook on Resettlement: A Guide to Good Practice. 1998

138. Compliance Monitoring. This is the first activity that both IMA and EMA shall undertake to determine whether or not the RPs, IPPs, and MOA were carried out as planned and according to this policy. The EMA will submit an Inception Report and Compliance Monitoring Report one month after receipt of Notice to Proceed for the engagement. The engagement of the EMA is scheduled to meet the Policy’s requirement of concluding RP, MOA, and IPP implementation activities at least one (1) month prior to the start of zoning and/or civil works. 139. Quarterly Monitoring - The EMA will be required to conduct quarterly monitoring of RP, MOA, and IPP implementation activities.

140. Final Evaluation. Final evaluation of the implementation of RPs will be conducted three months after the completion of payments of compensation to APs and three months after the completion of the IPP. The EMA shall coordinate with the NCIP and the affected IP community on the dates of the final evaluation for the MOA.

141. Post-Evaluation. This activity will be undertaken a year after the completion of resettlement in a particular subproject in order to determine whether the social and economic conditions of the APs and the affected IPs have improved or have been restored to their pre-project levels.

1. Disclosure of Information 142. For IP communities, pertinent information for disclosure are: (i) notices of meetings/ consultation, (ii) INREM concept and implementation arrangements, (iii) results/minutes/ agreements made during meetings/consultations, grievance redress mechanisms, results of assessment studies, IPPs, and M&E results.

143. Disclosure modalities will be in accordance with prevailing customs and traditions and shall be written in English or Pilipino and in the IP language and authorized by community elders/leaders shall be delivered and posted in conspicuous places or if lengthy, copies provided to community elders/leaders and IPO organizations. Popular forms of printed materials include: fact sheets, flyers, newsletters, brochures, issues papers, reports, surveys etc. Popularized materials aim to provide easily read information. These materials may be in the local dialect enhanced with drawings, to inform a wide range of IPs about the planning and assessment processes and activities.

144. Aside from those discussed in the previous paragraphs, disclosure of the following documents is strongly indicated in the new ADB SPS:

62

(i) Draft IP and resettlement plans and/or IP/IR framework endorsed by the borrower/client before project appraisal;

(ii) The final IP/IR plan endorsed by the borrower/client after the census of affected persons has been completed;

(iii) A new IP/IR plan or an updated IP/IR plan, and a corrective action plan prepared during project implementation, if any; and

(iv) The IP and IR monitoring reports.

145. IEC materials will be produced in popularized form for all APs across implementation levels. The ADB SPS requirements (SR 2 & 3) as well as the ADB Public Communication Policy will serve as guide. The documents listed above will be uploaded in the INREM management information system for interconnectivity as well as the ADB website.

2. Grievance Redress Mechanisms

146. A mechanism made known to IPs and other affected persons to receive and facilitate resolution of concerns, complaints, and grievances will be crafted in a manner that it is culturally appropriate, gender responsive, and timely, at no cost and without retribution to the concerned parties. Inasmuch as IPs cross over project concerns in terms of purely IP and IR safeguards, the two modalities of grievance redress will have to be observed, based on the concern.

a. IP Safeguards Grievance Redress Mechanism

147. A grievance redress mechanism shall be generated through a participatory process and describe how redress procedures are accessible to IPs in a culturally appropriate and gender sensitive fashion. Complaints of any member of the IP communities regarding the project will be addressed within the community itself in the context of its customary law and customary dispute resolution processes and mechanisms, in the presence of the relevant staff of the NCIP office with jurisdiction over the area. Inter-community conflicts will be addressed between the communities themselves, according to their customary or agreed upon dispute resolution processes and mechanisms. If an outside facilitator, mediator, or arbiter is required or requested for, the National Project Coordinating Office (NPCO) and the implementing agency (IA) will request the NCIP to act as facilitator, mediator, or arbiter.

148. The NCIP/IP focal person will document the proceedings of the discussion or negotiations. If no satisfaction is obtained or an impasse results, the IP communities can elevate their complaints and grievances to the next higher level of the INREM structure, whichever is most logical; depending on the IA for that particular activity. Should an impasse persist, the complaint/grievance can be elevated to the NCIP legal unit (Region / Central) for the necessary action/decision.

b. IR Safeguards Grievance Redress Mechanism

149. It is recognized that IR safeguards can cover both IP and non-IP groups within INREM areas. For IP groups, concerns may be within ancestral domains and outside ancestral domains, hence variations of approaches are provided in this section.

150. For Non-IP Affected Persons. Grievances related to any aspect of the project or subproject will be handled through negotiations and are aimed at achieving consensus following the procedures outlined below:

63

(ii) The grievance shall be filed by the AP with the RIC who will act within 15 days upon receipt thereof;

(iii) If no understanding or amicable solution can be reached, or if the AP does not receive a response from the RIC within 15 days of registry of the complaint, he/she can appeal to the concerned DENR Regional Office, which will act on the complaint/grievance within 15 days from the day of its filing;

(iv) It the AP is not satisfied with the decision of the Regional Office, he/she, as a last resort, can submit the complaint to any court of law.

151. APs shall be exempted from all administrative and legal fees incurred pursuant to the grievance redress procedures. All complaints received in writing from APs will be documented and shall be acted upon immediately according to the procedures detailed above.

152. For IPs inside Ancestral Domains. Conflicts within the affected IP/ICC will be addressed within the community itself in the context of its customary law and customary dispute resolution processes and mechanisms, in the presence of the relevant staff of the NCIP office with jurisdiction over the area. Inter-community conflicts will be addressed between the communities themselves, according to their customary or agreed upon dispute resolution processes and mechanisms. If an outside facilitator, mediator, or arbiter is required or requested for, the NPCO and IAs will seek the intervention of the NCIP to act as facilitator, mediator, or arbiter. The RP focal person at the IA unit with the assistance of NPCO and RIC shall document the proceedings of the discussion or negotiations. The IP/ICC may have their own documentation. If no satisfaction is obtained or an impasse results, the IP communities can elevate their complaints and grievances to the next higher level of the INREM structure, whichever is most logical; depending on who the IA is for that particular activity.

153. The grievance procedure established herein in no way substitutes for or replaces the grievance procedure set forth in FPIC Guidelines of 2006. At their choosing, IPs may avail of the grievance procedure and mechanisms spelled out in Section 47 of the FPIC Guidelines of 2006 for complaints regarding the MOA.

154. For IPs outside Ancestral Domains. Affected ICCs/IPs living outside ancestral domains can file their grievance or complaint with the RIC. Procedures applicable to non-IPs shall apply to affected ICCs/IPs living outside ancestral domains especially if they are not members of another domain, or the same tribe as the affected ICC. In settling complaints and grievances, the first option is to use customary dispute resolution processes. Conflicts should be resolved at the ICC/IP level first before elevating it to the RIC. A representative of the NCIP should be present during the community dispute resolution process to serve as witness or translator. With the concurrence or at the request of both the project proponent and the ICC/IPs, the NCIP may facilitate the dispute resolution process.

155. Pertinent to the GAP, project M&E will have to ensure that the targets reflected in the table below are incorporated and that all activities and data collection will reflect gender disaggregated data:

64

Community Level Project Management Level Women’s representation during consultations (30%).

Gender Specialist included in production of training modules and establishment of trainers’ pool.

Committees to be established at least are 30% women.

Gender sensitive training material in local dialects to be prepared in close consultation with beneficiaries.

Hands-on attendees and beneficiaries of training activities at least 30% women.

GAP implementation and reporting on gender related achievements reflected in quarterly progress reports to ADB.

For infrastructure construction and local labor, at least 35% of local labor reserved for local rural women, particularly the poorer and more vulnerable.

Implementing agencies to appoint project staff as gender focal point responsible for monitoring GAP implementation.

50% beneficiaries of subsidized inputs will be women.

The terms of reference of all consultants will include responsibilities to ensure GAP implementation as related to their work.

Gender-sensitization training carried out as part of project orientation, for all levels of staff, consultants, contractors, and facilitators.

Both female and male staff given equal opportunity to participate in non-gender related training and capacity development programs.

A national social development/gender consultant recruited to (i) build capacity of project management units on gender responsive design and analysis; (ii) preparation of gender sensitive indicators; and (iii) preparation of checklists for evaluation of gender responsiveness of proposed subprojects.

Sex-disaggregated indicators to be established for project performance monitoring and evaluation.

Mid-term view Mission to assess gender related achievements and constraints to GAP implementation and propose adjustments for better project performance.

VIII. GENDER AND SOCIAL DIMENSIONS

156. The Project’s gender classification is “effective gender mainstreaming” (EGM). A Gender Action Plan (GAP), details of which are presented in Appendix 10, has been prepared based on findings from Social Assessment using the Asian Development Bank (ADB) Handbook for Social Assessment, in close consultation with stakeholders that significantly include women and women leaders. This GAP is designed to address three key issues: empowerment for participation and decision-making on natural resource management, improved access to services which will in the end redound to decreased time and effort for performing household reproductive activities.

157. A gender specialist will be included in the Loan Implementation Consultant team to support the implementation of GAP. An awareness raising campaign will be undertaken for each subproject on issues identified during the consultation process.

158. The GAP includes the following target and design features/activities:

65

DENR = Department of Environment and Natural Resources; GAP = gender action plan; LGU = local government unit; M&E= monitoring and evaluation; NCIP = National Commission on Indigenous Peoples; NPCO = National Project Coordination Office; NGO= nongovernment organization; PES = payment for environment services; TOR= terms of reference; URB = upper river basin.

Output Gender Design Features/Activities Output 1: River Basin and watershed management and investment plans established

At least 30% women’s representation during consultations and assessment for developing watershed management plans and river basin indicative development plans.

At least 30% women participated in the watershed management activities and land use planning.

At least 30% women in the water management committees to be established by the Project.

At least 30% of women trained and involved in PES mechanisms and at least 3 related NGOs can support and/or facilitate participation of women in the river basin management.

Component 2: Smallholder and institutional investments in conservation increased and URB productivity enhanced in the forestry, agriculture and rural sectors

At least 30% of women in the committees to be established and/or consolidated by the Project.

50% of beneficiaries of subsidized inputs (i.e., seedlings/fertilizers) will be women.

Where infrastructure construction involves the employment of local labor at least 35% of this local labor will be reserved for local rural women with priority for the poorer and more vulnerable women.

At least 40% of women are trained in commercial plantation, conservation farming, agro-forestry and sustainable forest management.

Components 3 & 4: River basin and watershed management capacity and related governance mechanisms strengthened and Project management and support services delivered

Gender Specialist included in production of training modules and establishing trainers’ pool.

Gender sensitive training material in local dialects to be prepared in close consultation with beneficiaries (avoiding gender stereotype materials)

NPCO and Project Director responsible for overseeing GAP implementation and reporting on gender related achievements in quarterly progress reports to ADB.

Implementing agencies to appoint project staff as gender focal point responsible for monitoring GAP implementation and report gender related achievements and constraints to NPCO.

TOR of all consultants will include responsibilities to ensure GAP implementation as related to their work.



A national social development/gender consultant to be recruited to (i) build capacity of project management units across levels, project staff and facilitators in gender responsive design and analysis; (ii) preparation of gender sensitive indicators; and (ii) preparation of checklists for evaluation of gender responsiveness of proposed subprojects.

Facilitate access to health, sanitation and credit facilities for women through cooperation with other agencies.

Sex-disaggregated indicators to be established for project performance M&E system; monitoring will be on-going to ensure activities are effectively carried out and targets reached; progress reports to include gender-related achievements and constraints.

Mid-term review Mission to assess gender related achievements and constraints to GAP implementation and propose adjustments for better project performance.

66

IX. PERFORMANCE MONITORING, EVALUATION, REPORTING AND COMMUNICATION

A. Project Design and Monitoring Framework

Design Summary Performance Targets and Indicators with

Baselines

Data Sources and Reporting

Mechanisms Assumptions and Risks Impact Improved condition of watersheds generating livelihood benefits in the four URBs

By 2025: Forest loss reversed and forest cover in URBs increased by at least 10% (2010 baseline)a

220,000 household beneficiaries, 73.5% of which are indigenous peoples, with diversified and increased incomes (2009 baseline)

DENR and NAMRIA updates on forest cover NSO and NSCB census and poverty data

DENR-RBCO reports on adoption of INREM approach in management of other watersheds

Assumption Economic growth of the country remains steady and government continues to place priority on the economic development of the project areas

Risk Political instability or partisan rivalry in subproject sites

Outcome Increased rural household incomes and LGU revenues in selected watersheds in the four URBs

By 2020: Rural household incomes in project areas increased by 30% from 2009 levels (P60,000–P90,000 per annum)

Poverty incidence rate in the project areas decreased to 25% from 47% (2009 baseline)

Revenues of participating municipalities in the URBs increased by 10% from 2010 income levels (ranging from 30 to 105 million pesos) through project investments in livelihood, biodiversity protection and conservation, and PES.

Income class ranking of river basin LGUs and households in IPO areas

BLGF’s income classification of LGUs (every 4 years)

NSO and NSCB census and poverty data

DENR-RBCO and NEDA annual reports

Project monitoring reports generated under RBCO management system

Assumptions The government’s timely approval of land use assessments and zoning plans

Appropriate government directives enabling convergence of respective institutional mandates

Risks Delays in approval of management plans for selected URBs

Revenue streams from REDD and local PES mechanisms not realized

Extreme weather events impact negatively on ecosystem services

Outputs 1. River basin and watershed management and investment plans established

By 2015, river basin indicative development plans and watershed management plans adopted in four project sites covering 1.13 million ha

By 2016, four updated URB land use plans delineated and mapped with effective zoning ordinances

By 2016, 81 watershed management and investment plans adopted by the LGUs

By 2015, A GIS based database, including remote sensing information for performance monitoring established

At least 30% of watershed management committees and/or council members are women.

DENR and NEDA annual reports Satellite imagery/maps from NAMRIA LGU comprehensive/forest land use plans and investment plans DENR watershed reports and management plans River basin development and management plans Project baseline surveys and project results monitoring and evaluation reports

Assumptions Government counterpart inputs are provided on time and are adequate

Target LCO and IPO beneficiaries are able to effectively participate in training programs

Potential negative climate change impacts are appropriately addressed and can be mitigated

Communities see sufficient incentives in diversification of agricultural techniques Delays in government procurement can be minimized

67

Design Summary Performance Targets and Indicators with

Baselines

Data Sources and Reporting

Mechanisms Assumptions and Risks

2. Smallholder and institutional investments in conservation increased and URB productivity enhanced in the forestry, agriculture and rural sectors

By 2017, over 200,000 ha effectively protected through community based monitoring in the four URBs

By 2018, 94,010 ha of natural forestland rehabilitated through reforestation and assisted natural regeneration

By 2018, establishment of pilot demonstrations of 5,370 ha for sustainable forest management By 2018, 24,450 ha of agroforestry with community participation, and 5,950 ha of

Review mission reportsProject progress reports Project completion report

Risks High staff turnover Government budgetary support dwindles Armed conflict (political and tribal) persists LCOs ban access of surveyors and officials to CAD-T areas

commercial plantation

By 2017, 14,350 ha of conservation farming demonstration established

By 2016, income-enhancing small scale infrastructure improvements including 560 km of rural access, 85 km of foot trails, and 1 provincial trading center; communal irrigation systems for about 3,040 ha; and 275 units of potable water supply (level II – spring development) schemes At least 35% of local labor for infrastructure construction will be reserved for local rural women.

3. River basin and watershed management capacity and related governance mechanisms strengthened

By 2017, 9,000 local beneficiaries trained on (i) land use assessment and URBMP; (ii) land use planning, watershed management and monitoring and REDD and (iii) TE-IEC

By 2018, 1,332 barangays b capacitated in developing land management systems to reduce carbon dioxide emissions

By 2018, 23 community watershed protection brigades organized with at least 30% female membership

4. Project management and support services delivered

By March 2013, 1 NPCO, 4 RPCOs and at least 4 PPMOs established

By June 2013, Project implementation consultants recruited

By 2014, Project M&E, including GIS-based database, established at the NPCO and provincial and watershed units of DENR

Gender action plan implementation and reporting reflected in quarterly progress reports to ADB

Activities with Milestones Inputs 1. River basin and watershed management and investment

plans established 1.1 NPCO designs and establishes GIS-based database for

performance monitoring, including the training of DENR regional and provincial and LGU staff in the four selected river basins by end month 24.

1.2 NPCO acquires remote sensing data and completes baseline

Loan ADB: $100 million

Item Amount ($ million)

Civil works 25.70 Equipment 1.13 Data acquisition 0.95 Conservation forestry 37.23

68

Activities with Milestones Inputs assessment of land uses in URBs including ground truthing by end of month 24.

1.3 NPCO prepares detailed vulnerability and adaptation assessment plans in the four selected river basins by month 18.

1.4 NPCO, through the PPMOs and WMPCOs, assesses land use capability and participatory land use classification, zoning, and adoption in four selected river basins by month 24.

1.5 NPCO develops and implements carbon stock baseline assessments in the four selected river basins by month 24.

1.6 PPMOs delineate and demarcate forest boundaries in consultation with local communities from month 18 to month 80.

1.7 LGUs issue enabling legislative instruments as prescribed in the URBMPs, including appropriate tenure and PES, for local community participation in INREM in the four selected river basins by month 60.

2. Smallholder and institutional investments in conservation increased and URB productivity enhanced in the forestry, agriculture and rural sectors

2.1 RPCOs prepare project plans including investment strategies for private sector participation, based on inventories and analyses for conservation areas and buffer zones to support downstream investments in the four selected river basins by month 24.

2.2 WMPCOs implement project plans in selected river basins by subprojects in accordance with agreed land use classification and zoning from month 18 to month 84

2.3 PPMOs undertake field activities of URBMP including rehabilitation, protection, and management of protected areas with community participation; and forest-based sustainable livelihoods and rural infrastructure rehabilitation and improvements in production forest areas and agricultural land from month 18 to month 84.

2.4 PPMOs, based on the agreed criteria, select additional subprojects, undertakes necessary assessment for preparation of subproject feasibility studies consistent with prescriptions in the URBMPs in four selected river basins, from month 18 to month 36.

2.5 Participating LGUs provide infrastructure maintenance funding and carry out routine O&M starting from month 49 (one year after completion of infra projects).

3. River basin and watershed management capacity and related governance mechanisms strengthened

3.1 NPCO assess capacity building needs in the project area, and complete training for staff concerned by end of month 18

3.2 NPCO develops TE-IEC program for each selected river basin by end of 18 months

3.3 PPMOs undertake field implementation of TE-IEC in the four selected river basins from month 18 to month 84 (including awareness raising)

3.4 NPCO implements capacity building and skills transfer training events covering natural resource management, climate change, mainstreaming of biodiversity, PES, and REDD

4. Project management and support services delivered 4.1 WMPCOs enforce regular and effective rules and regulations

required for effective implementation of URBMP through field visits and patrolling in the four selected river basins from month 19 to month 84.

Commercial forestry 14.48 Livelihood inputs 2.80 Consultants 3.66 Locally contracted services

1.03

Capacity building, studies

2.47

Incremental operating costs

3.40

Interest and charges 7.15

Government: $15.31 million Item Amount ($ million) Taxes and duties 7.61 Recurrent expenditure 7.70

International Fund for Agricultural Development: Loan $20 million

Item Amount ($ million)

Civil works 4.81 Equipment 0.34 Conservation forestry 5.31 Livelihood inputs 6.32 Consultants 1.32 Capacity building, studies

0.71

Incremental operating costs

1.19

Global Environment Fund grant: $2.5 million Item Amount ($ million) Equipment 0.04 Conservation forestry 0.37 Livelihood inputs 0.16 Consultants 0.98 Locally contracted services

0.24

Capacity buildings studies

0.34

Incremental operating expense

0.37

Climate Change Fund grant: $1.41 million Item Amount ($ million)Conservation forestry 0.33 Commercial forestry 0.53 Consultants 0.27

Capacity building, studies 0.28

Local government units: $8.49 million

Item Amount ($ million) Civil works 6.74 Recurrent expenditure 0.42

O&M LGU infrastructure 0.41 Taxes and duties 0.92

69

Activities with Milestones Inputs 4.2 NPCO carries out regular M&E and integrates results in the 6-

monthly and annual project progress reports 4.3 NPCO formulates terms of reference and carries out relevant

studies required for project delivery; feeds in results for project improvement and enhancement by end month 3

4.4 NPCO carries out and documents gender- and indigenous-peoples-related safeguard studies (including monitoring of involuntary resettlements) and prepares annual reports for dissemination and inclusion in project annual progress reports

Beneficiaries: $6.42 million (in kind)

Item Amount ($ million) Commercial forestry 6.20

O&M community infrastructure

0.22

ADB = Asian Development Bank; BLGF = Bureau of Local Government Finance; CAD-T = Certificate of Ancestral Domain Title; DENR = Department of Environment and Natural Resources; GIS = geographic information system; ha = hectare; IPO = indigenous peoples organization; km = kilometer; LCO = local community organization; LGU = local government unit; M&E = monitoring and evaluation; NAMRIA = National Mapping and Resource Information Authority; NEDA = National Economic Development Authority; NPCO = National Project Coordination Office; NSCB = National Statistical Coordination Board; NSO = National Statistics Office; O&M = operation and maintenance; PES = payments for environmental services; PPMO = Provincial Project Management Office; REDD = reduced emissions from deforestation and degradation; RPCO = Regional Project Coordination Office; TE-IEC = technical extension, information, education, and communication; URB = upper river basin; URBMP = upper river basin management plan, WMPCO = Watershed Management and Project Coordination Office. a The 2010 forest cover data will be based on the National Mapping and Resources Information Authority assessment report which will be

officially released by the end of 2012. b Smallest administration region in the Philippines. Source: Asian Development Bank.

B. Monitoring

159. Project performance monitoring. Monitoring and evaluation of sub-components implementation will be the main responsibility of the M and E unit at all levels. ADB at anytime will send supervision mission to selected sites to monitor and evaluate the progress and status of the implementation and management of the Project. The findings of the mission will be embodied in an aide memoire and will be submitted to the NPSC copies of which will be furnished all concerned stakeholders and Project implementors. NPCO will be responsible for the overall coordination and will actively participate in the conduct of all ADB supervision missions. DENR RO and PPMO will likewise participate in said missions.

C. Evaluation

160. Within 6 months of physical completion of the Project the Executing Agency will submit a project completion report to ADB.20

D. Reporting

161. The Executing Agency will provide ADB with (i) quarterly progress reports in a format consistent with ADB's project performance reporting system; (ii) consolidated annual reports including (a) progress achieved by output as measured through the indicator's performance targets, (b) key implementation issues and solutions; (c) updated procurement plan and (d) updated implementation plan for next 12 months; and (iii) a project completion report within 6 months of physical completion of the Project. To ensure projects continue to be both viable and sustainable, project accounts and the executing agency AFSs, together with the associated auditor's report, should be adequately reviewed.

162. The NPCO will maintain monthly financial reports in order to regularly monitor the loan status. Such reports will be consolidated by the Executing Agency in the preparation of quarter,

20 Project completion report format is available at: http://www.adb.org/Consulting/consultants-toolkits/PCR-Public-

Sector-Landscape.rar.

70

semi-annual and annual reports for auditing and submission to the DBM, ADB, with copies to the NPSC. A suggested format for the preparation of Loan Status Report is in Appendix 11.

163. An inception report will be submitted upon completion of site validation, which is within 6 months after the project mobilization. Regular quarterly progress reports will be submitted by the Executing Agency to the ADB for the entire duration of the project. In the first year of implementation, semi-annual project review reports will be submitted indicating the physical and financial performances on the implementation of Project components. In the following years, annual project review reports will be submitted. The progress and review reports shall contain project achievements for a specific period, description of problems encountered and the corresponding actions that were taken to resolve them. Other required reports include a project completion report and a poverty reduction impact report. Suggested formats for progress, review and completion reports are in Appendix 12.

164. In cases where some project sub-components will be taken in partnership with the academe, research institutions and/or NGOs, the NPCO shall require such partners to submit quarterly progress to monitor their performance. Such reports, however, will be internally maintained by the NPCO while summary and/or highlights of the same shall be incorporated in the preparation of the project’s progress and review reports.

165. Annual audit reports will be prepared by the Executing Agency and submitted to the DBM and ADB, with copies to the NPSC. The Project will abide by the General Accounting Procedures, which shall be the basis for the Internal Audit and Evaluation of the Internal Control System. Indicators that have been established will be examined during the auditing process. The Project shall retain the services of the Commission on Audit (COA) to examine its accounts, records and financial statements. The records of the NPCO shall be audited annually in accordance with sound auditing principles by auditors whose qualifications and terms of reference are acceptable to ADB. Nine months after the close of the Project, ADB shall be furnished with the auditor’s report on the consolidated Project accounts and financial statements, which will include the auditor’s opinion on the use of the loan, compliance with financial covenants and the provision of counterpart funds.

166. The audit report shall contain certified copies of audited accounts and financial statements and the report of the auditors relating to these including their opinion on the use of the loan proceeds as well as on the use of the procedures for imprest account in English language. A sample form of auditor’s opinion is in Appendix 13.

E. Stakeholder Communication Strategy

167. Results of the poverty reduction and social assessment underscore the need for a Consultation and Participation plan. C&P increases the level of support for an ADB-assisted activity from a range of stakeholders, which can speed up processing and reduce challenges during implementation. More generally, C&P improves the effectiveness, relevance, and sustainability of development activities. It contributes to good governance, economic growth, and the empowerment and social inclusion of disadvantaged groups. ADB recognizes that C&P is a process through which stakeholders influence and share control over development initiatives, and the decisions and resources that affect them. ADB works on four different levels of C&P to engage groups that have an interest or stake in its operations. It has been determined through this assessment that the identified vulnerable stakeholders require a C&P plan that will in the end empower them even beyond INREM for sustainability.

71

168. It is in this context that a C&P plan is proposed highlighting the need to transpose such a plan into a more operable Communications Plan. The very basic tenets of natural resource management and poverty reduction have to be addressed. The assessment shows for instance that there are information gaps in the mental constructs of stakeholders, made evident in their mapping of root-cause analysis of their plight and problems they are faced with. The C&P/Communications Plan intends to tackle these basic elements prior to the conduct of investment activities across stakeholder groups; the institutional stakeholders on to the vulnerable.

1. Rationale for a Communication Plan

169. The ADB Public Communications Policy seeks to encourage the participation and understanding of people and other stakeholders affected by ADB-assisted activities. Information on ADB-funded projects should start early in the preparation phase and continue throughout all stages of project development, in order to facilitate dialogue with affected people and other stakeholders. The EA should, as necessary, develop a project communications plan and designate a focal point to maintain contact with affected people. With respect to land acquisition, compensation and resettlement, information should be distributed to affected peoples (APs) and publicly in the following manner: (i) prior to loan appraisal, the draft Resettlement Plan (RP); (ii) following completion of the final RP, the final RP; and, (iii) following any revisions, the revised RP. This information can be in the form of brochures, leaflets or booklets, in the local language(s) as well as English, the working language of the ADB. When APs include non-literate people, other appropriate methods of communications will be used.

170. Communication therefore is central enable meaningful participation that can lead to stakeholder empowerment, which INREM aspires for. Without a well-planned course of action, communication is fragmented, unfocused and highly reactive and results in waste of efforts and resources. INREM therefore requires a coherent communication strategy as it engages in different consultation and participation activities necessary to operationalize Project components. There are also Project imperatives like the IP Plan (IPP), LARP, Gender Action Plan (GAP), and Environmental Management Plans (EMP) that prescribe corresponding consultation and participation strategies. All these would have to be consolidated into one plan: the INREM Communication Plan.

171. General messages have to be communicated related to INREM overall objectives directed to stakeholders at large. It is necessary for INREM to create its “corporate identity” that makes it different from other initiatives especially with efforts convert watershed management units into corporate entities taking charge of investments. Specific messages will likewise be directed towards different and specific stakeholder groups as required by the LARP and IPP in particular. At times, messages may emanate from within, as when the NPCO and its line-implementing units have to be synchronized in its actions and understanding. For these reasons, a communication plan is necessary.

2. The INREM Communications Plan

172. Objectives. The Project intends to: (i) Build the base of the Project implementers and be effective partners in the management of watershed resources in the Upper River Basin (URB); (ii) Support policies that enable smooth INREM implementation; (iii) Enhance awareness of stakeholders/target audiences of the Project and to envision it as a source of authoritative information in resource management; (iv) Increase appreciation of the Project’s priority activities, policies and modalities in resource and land use management regimes; and (v)

72

Provide the appropriate IEC for desired behavioral change thus the need - to inform, to convince, and to educate.

173. Based on Project components and demands, the communication modalities that are needed fall under the following major classes:

a. Internal Communication – This aims to address communication requirements within the Project implementing units at all levels to enhance the quality of work and enable them to interact effectively with people outside the Project/institution on the basis of a shared foundation about INREM;

b. Technical Communication – As INREM provides the required technical inputs to land and resource management using advanced technologies and methods, these have to be communicated to local stakeholders for their appreciation in order to rationalize and harmonize land use classification and zoning for instance. Such an undertaking should not compromise technical merits nor should local knowledge be overlooked. Technical communication therefore focuses on technical and policy information dissemination between Project experts and their counterparts in local governments, intergovernmental organizations, NGOs-POs-IPOs, and research and academic institutions.

c. Advocacy and Public Communication – It is desired that at Project implementation greater understanding of, and build up support for INREM activities and policies, especially among the common public, decision-makers and potential partners will be generated.

d. Development Support Communication – Transfer of technology, for example conservation farming and PES, are focused on delivering technologies and information to the vulnerable sectors for them to fully participate in Project activities. The development of IEC would have to emanate from stakeholder-preferred modalities.

174. Lastly, leeway should be provided for the development of new tools, especially in: (i) Communication audit to evaluate current communications as an input for succeeding annual communication planning; (ii) URB communication M&E as the tool that will measure the results delivered through various communication strategies and channels by the different implementers vis-à-vis the national plan, and (iii) for public disclosure. All communication activities and products developed by the participating groups will have to be reviewed at the URB level and holistically at the NPCO level in order to evaluate the objectives and determine the best strategy to be used. The Communications Plan should provide quality control to ensure a sharp and unified focus in the dissemination of information, thus preventing conflicting, confusing and fragmented messages to all stakeholders. Details of the Plan are presented in Appendix 14.

X. ANTICORRUPTION POLICY

175. ADB reserves the right to investigate, directly or through its agents, any violations of the Anticorruption Policy relating to the Project.21 All contracts financed by ADB shall include provisions specifying the right of ADB to audit and examine the records and accounts of the executing agency and all Project contractors, suppliers, consultants and other service providers. Individuals/entities on ADB’s anticorruption debarment list are ineligible to participate in ADB-financed activity and may not be awarded any contracts under the Project.22

21 Available at: http://www.adb.org/Documents/Policies/Anticorruption-Integrity/Policies-Strategies.pdf 22 Available at: http://www.adb.org/Documents/Policies/Anticorruption-Integrity/Policies-Strategies.pdf

73

176. The project design and implementation arrangements provide for mitigating corruption risks. Risks associated with project management, including procurement and funds flow, will be mitigated by using national, local, and field participatory management to improve transparency and accountability in project administration. The proposed cost-sharing arrangement will motivate LGUs to strive for economy and efficiency in project implementation. Specific risks and the corresponding proposed ADB actions and indicators as presented in the Table below.

Risk Assessment and Risk Management Plan

Risks

Assessment Without

Mitigation Management Plan

Assessment with

Mitigation Mainstreaming institutional convergence under a decentralized natural resource management framework might encounter resistance from the national government, particularly the DENR, and potentially also from local communities

Medium (i) The project will pursue alignment with the government’s Rationalization Plan expressed in the Republic Act 7160, the Local Government Code (1991) and the Joint DENR-DILG Memorandum Circular 2003-01. (ii) LGU management of production areas under co-management regimes with the DENR will be pursued as part of the phased devolution under the project, with DENR shifting from the role of primary implementer to a facilitation and mentoring role with LGUs. LGU stewardship of production areas, as part of phased devolution, will ensure that local communities and IPs are not displaced by outside investors. Investment contracts will be tailored to ensure that investors partner with local people for production activities in these areas. (iii) Project activities will be integrated with the planning, budgeting and performance management system of DENR's major final outputs under the Organizational Performance Indicator Framework (OPIF) established by the Department of Budget and Management (DBM) as part of the government’s results-based management framework for sectors. (iv) Business development capacities of LGUs to establish livelihood enterprises and capacities for land use planning as part of LGUs comprehensive land use plans will be strengthened during project implementation.

Low

Budgetary support from the national and local government might dwindle over time

Medium Budgetary allocations from the DBM will be secured, including tagging of funds. Municipal resolutions (Sanggunian Bayan) will be secured to serve as binding agreements on counterpart commitments and allow for internal revenue allotment guarantee (or ‘intercept’) from the DBM to LGUs.

Low

Political situation in some subproject sites may worsen as a result of May 2010 election

High In areas where peace and order instability persists, project activities will be suspended until peace prevails. Activities in other sites will continue as scheduled to optimize project outcomes in other areas. In parallel, the

Medium

74

Risks

Assessment Without


Assessment with

Mitigation project will pursue enhanced delivery of

services through policy dialogue, conflict mediation, and coordination with local government authorities and development partners through the Philippine Development Forum working group on rural development. If political uncertainty persists and/or conditions worsen, alternate watersheds may be considered consistent with subproject identification criteria. Such changes will be made prior to undertaking any land use and capability assessments. Any change in river basin will need to be endorsed by ADB.

Revenue streams from local PES mechanisms are not realized

Medium (i) Revolving funds will be established to provide seed capital requirements. The revolving funds will have flexible financing schemes for project beneficiaries and will consider their repayment capacities. The implementation of PES will be institutionalized through local ordinances or agreement of parties. (ii) An economic survey will be conducted to estimate the demand for ecosystems services provided by the river basins. The results of the economic studies will be presented to (a) various stakeholders of the watersheds, including the local government councils, for the possible issuance of council resolution and ordinance to institutionalize PES in their jurisdiction; or (b) the beneficiaries of ecosystem services (including hydropower plant operators, irrigation system associations, water districts, and ecotourism operators) for possible agreement on PES schemes.

Low

Governance. Poor governance and corruption may distort the process of development and have a disproportionate impact on the poor.

Medium ADB’s Anticorruption Policy (1998, as amended to date) will be explained and discussed with the DENR central, regional and provincial offices (as part of its responsibility as executing agency) and with DA, and MDFO (as implementing agencies). The project design and implementation arrangements include provisions for mitigating corruption risks. Risks associated with project management, including procurement and funds flow, will be mitigated by using national, local, and field-level participatory management to improve transparency and accountability in project administration. The proposed cost-sharing arrangement will motivate LGUs to strive for economy and efficiency in project implementation. ADB will closely review the

Low

75

Risks

Assessment Without


Assessment with

Mitigation performance of the executing agency and implementing agencies in terms of governance through project monitoring , including during review missions.

Procurement and Financial Management Capacities at DENR, MDFO. Insufficient capacity and/or inefficiencies in DENR and LGU procurement and liquidation processes delay implementation

High (i) Advance contracting for capacity building, including tailor-made training and refresher packages on financial management, disbursement and procurement of subprojects will be provided during pre-implementation and project start-up ; (ii) Full-time staff shall be assigned for (ii)

financial management and contract administration at the DENR Central, Regional and Provincial Office;

(iii) Two to three consultants will be assigned at the MDFO to assist in coordinating/processing and monitoring LGU submissions; and coordinate with the regional and provincial Commission’s on Audit (COAs) for timely submission of audited financial statements

(iv) Standard National Competitive Bidding (NCB) documents for works and goods will be drafted during pre-implementation and will be approved by ADB.

(v) Procurement will be aligned with processes prescribed under the Republic Act 9184 and the customized Procurement Manual adopted under DENR AO 2007-08 and integrated within the DENR’s Bids and Awards Committee at all government levels.

Low

Physical Risks. Extreme weather events (excessive rainfall or extended periods of drought) impact negatively on natural regrowth of vegetation and consolidation of biodiversity and ecosystem services (nonstabilization of water flows downstream)

Medium Project investments in forest management, reforestation, and conservation farming address potential climate impacts. GEF and ADB’s Climate Change Fund (CCF) investments address climate change adaptation and mitigation in project watersheds, including (i) demonstration activities for carbon emission reductions related to REDD, including forest protection, agricultural intensification, community forest management, and commercial forest management; (ii) pilot application of more efficient technology for private sector charcoal production in Bukidnon (based on sustainably managed tree plantations for a continuous retort process) to mitigate the production of greenhouse gases; and (iii) installing stream flow instrumentation within upper river basin river systems to monitor changes in hydrological flows and proactively implementing mitigation measures.

Low

76

Risks

Assessment Without


Assessment with

Mitigation Overall Medium Low

ADB = Asian Development Bank, DA = Department of Agriculture, DBM = Department of Budget Management, DENR = Department of Environment and Natural Resources, DILG = Department of the Interior and the Local Government, GEF= Global Environment Facility, LGU = local government unit, MDFO= Municipal Development Fund Office, PES = payment for environmental services, REDD = Reduced Emissions from Deforestation and Degradation.

177. ADB’s Anticorruption Policy (1998, as amended to date) will be explained to and discuss with the EA and IAs. Following ADB’s governance and anticorruption policies and Second Governance and Anticorruption Action Plan (2006), EA and IAs shall mitigate governance and corruption risk by improving financial management, strengthening procurement systems, and combating corruption through preventative enforcement and investigative measures, throughout project implementation. ADB will review EA and IAs’ performance in terms of governance through project administration including review missions

XI. ACCOUNTABILITY MECHANISM

178. People who are, or may in the future be, adversely affected by the project may address complaints to ADB, or request the review of ADB's compliance under the Accountability Mechanism.23

XII. RECORD OF PAM CHANGES

179. All revisions/updates during course of implementation should be retained in this Section to provide a chronological history of changes to implemented arrangements recorded in the PAM.

23 For further information see: http://compliance.adb.org/.

Appendix 1

APPENDIX 1. IMPLEMENTATION ARRANGEMENTS

I. Implementation Arrangements

A. National and Regional Implementation Arrangements

1. The Department of Environment and Natural Resources (DENR) will be the Executing Agency (EA) and assume full supervision and responsibility in the administration and management of the Project. An interagency National Project Steering Committee (NPSC), chaired by a DENR Undersecretary, will be established at the DENR Central Office (CO) to provide policy guidance for the smooth implementation of the Project. It will be composed of Undersecretaries from the Department of Agriculture (DA), Department of Agrarian Reform (DAR), Department of Budget and Management (DBM), Department of Interior and Local Government (DILG), senior-level representatives from the National Economic and Development Authority (NEDA), National Commission on Indigenous Peoples (NCIP), Chairmen of the League of Provinces and representatives of Leagues of, Municipalities and Cities within the project regions.

2. Other implementing agencies will be Municipal Development Fund Office (MDFO) and Department of Agriculture (DA). MDFO will administer the funds for rural infrastructure improvements which will be implemented by the municipal LGUs except for those covered by the Cordillera Highland Agricultural and Resources Management (CHARM) Project which will be administered by DA.

3. A National Project Coordination Office (NPCO)1 will be the main Project implementing unit of the DENR as Executing Agency. It shall lead and oversee implementation of all Project components in collaboration with various operating units within the DENR and its attached agencies, the Local Governments concerned, Peoples’ Organizations (POs), Civil Society Organizations CSOs and Indigenous Peoples’ Organizations (IPOs), and in close coordination with the oversight agencies and the ADB on matters relating to loan/grant reviews and disbursement of loan/grant proceeds. It will act as Secretariat to the NSPC. NPCO shall be based the DENR- Forest Management Bureau (FMB). The DENR- FMB Director shall be designated as Project Manager to head the NPCO. The Project Manager may be part-time, in which case a full-time Deputy Project Manager of at least Director III or equivalent grade shall be designated or a full time staff consultant shall be hired as NPCO Deputy Project Manager.

4. The NPCO, being the lead Project Manager in behalf of DENR, shall (i) have overall coordination functions for the Project; (ii) ensure the timely provision of logistics for all aspects of Project implementation; (iii) lead the conduct of necessary policy analysis and policy adjustments; and (iv) mobilize resources for the capacity-building requirements of LGUs for URB planning and implementation.

5. The NPCO shall be assisted by an inter-agency Technical Working Group (TWG) of senior staff from relevant agencies who will coordinate their respective agencies’ work in support of INREM implementation, and to provide the necessary interagency linkages and coordination. The TWG will be chaired by the NPCO (Deputy) Project Manager and; co-chaired by the member-representative from Protected Areas and Wildlife Bureau (PAWB). The inter-agency TWG shall be composed of designated senior staff from National Economic and Development Authority (NEDA), Department of Agriculture (DA), Department of Agrarian Reform (DAR), National Commission on Indigenous Peoples (NCIP), Municipal Development

1 All DENR Project units at all levels shall be composed of seconded regular staff of appropriate expertise. Depending on the

needed workloads and expertise as identified by the respective project coordinators at various levels, these staff may be seconded as full-time or part-time. This is to ensure institutionalization of Project skills and expertise that will be developed. Additional contractual staff may be engaged only if the skills required are not available within the DENR.

Appendix 1

78

Finance (MDFO-DOF), Department of Budget and Management (DBM), Department of Interior and Local Government (DILG), National Irrigation Administration (NIA), Watershed Management Department of the National Power Corporation, National Water Resources Board (NWRB), Remote Sensing and Resources Data Analysis Department (NAMRIA), and other DENR Offices concerned (EMB, PAWB, LMB, MGB, ERDB, FASPO, Field Operations Office, Finance Management Service, Planning and Policy Service Office, DENR-CARP Secretariat, and RBCO).

6. A pool of Project Consultants2 commissioned by the Project shall provide services for: (a) developing the technical expertise in DENR, other NGA, and LGU staff to scientifically guide policy-makers and ENR stakeholders in managing river basin and watershed resources; (b) establishing the knowledge-based decision-support systems and Information infrastructure for environment and natural resources management in river basin context. The Project Consultants shall be nominally based at the NPCO and shall be under the administrative supervision of the Project Manager. They may be deployed to assist the various project coordinating units at the regional, provincial and municipal levels, as well as at the project-site levels, as necessary.

7. The NPCO shall lead in implementing Project Component 1: River Basin and Watershed Planning. In the conduct of Land Use Assessment, Land Capability Analysis, and Management Planning for River Basin and Watershed, the NPCO, with inputs from the TWG and the Consultants, shall provide the technical parameters and guidance to NAMRIA, the DENR Regional Offices, and the LGUs and other stakeholders, to undertake this Project component. The NPCO shall mobilize and deploy the technical expertise of the various DENR bureaus and offices in support of the Regional Offices and LGUs. (Illustrated in Appendix 1 Section II)

8. Foreign Assisted and Special Projects Office (FASPO) and the Financial Management Service (FMS) of the DENR shall coordinately administer the Project funds and accounts. FASPO, through its Accounts Management Division, shall be responsible for the preparation and/or consolidation and submission of Withdrawal Applications (WAs) and SOEs to ADB. Through its Procurement Unit, FASPO shall be responsible for the timely procurement of goods, works and services, including consultancy services, for the Project. FMB shall assign counterpart staff in FASPO, Procurement Unit to coordinate INREMP’s procurement requirements with NPCO.

9. FASPO shall initiate preparatory activities, including those indicated in para 13. It shall coordinate with FMB for the identification and designation of staff to compose the NPCO and cause the issuance of the appropriate department orders.

10. FMS, in coordination with FASPO and NPCO, shall be responsible for the preparation and submission of the Project’s annual, multi-year budget proposals and requests for release of Allotment Advices and Notices of Cash Allocations to DBM. FMS shall download funds to FMB (NPCO), DENR Regional and Provincial offices and other implementing units, upon recommendation by the NPCO.

11. At the level of the Regional Project Coordination Office, the DENR sectoral services (Forestry, Protected areas, wildlife and coastal zone management, Ecosystems research and development, Lands management) and the line bureaus – Environmental Management and Mines and Geosciences – together with the DENR Regional Planning and Management Office, Regional GIS Unit, and Regional Forest Information Systems Unit shall undertake Land Use Assessment, Land Capability Analysis, and Management Planning for the Project river basins and watersheds (WP 6: Land Use Assessment, Land Capability Classification, Zoning and Delineation, see Appendix 1 Section III). The Regional Forest Management Service Office will

2 See Appendix 9. (Or refer to INREMP PPTA reports for recommended consultant and expert requirements.)

Appendix 1

79

be the focal point for coordinating all related work of the various DENR regional office units and the PENROs and CENROs concerned in this regard.

12. The Regional Development Councils shall provide policy guidance for the Land Use Assessment, Land Capability Analysis, and Management Planning work by ensuring (i) that the analyses and land management planning processes are consistent with the regional development objectives; and (ii) the process and the outputs are legitimized by RDC supporting decisions.

13. NAMRIA shall define the specifications of the satellite imageries and other data requirements for proper procurement. It shall analyze satellite imageries, compile and analyze relevant GIS data for the river basins and watersheds, prepare maps, and develop the necessary resource information databases for the Project. The DENR Regional Offices, through their Forest Land Evaluation Parties (LEPs) shall undertake the necessary ground surveys, resource inventories and validation based on guidelines and standards provided by NAMRIA. In case the technical resources of NAMRIA and the Regional Offices are insufficient to provide the required analyses and information in a timely manner, other technical or professional organizations with like expertise shall be contracted to augment and complement the expertise pool required. The Project will provide technical consultants and experts to guide this process.

14. Preparatory Activities. The Project will therefore support establishment of the NPCO at DENR tasked to implement key preparatory activities to ensure that capacities of the implementing units are in place prior to project start. The NPCO, together with the FASPO, will mobilize the project staff, initiate consultant recruitment, setup Project organization at national, regional, provincial and municipal levels, as well as start the procurement of materials, satellite data, office equipment, facilities and consulting services. Enabling mechanisms will have to be established with active participation of the NPSC/TWG/NPCO, FASPO, NAMRIA and RO focal persons. A Project Operations/ Administrative Manual will be prepared.

15. Aside from administrative operational concerns, an URB/Watershed Management Manual will be prepared. Said manual recognizes the need to formulate and adopt standards and guidelines to ensure consistent and effective implementation of INREMP processes and procedures. Enabling mechanisms include but are not limited to (i) Project goals and objectives; (ii) target outputs and accomplishments; (iii) criteria/standards, specifications and guidelines for land use and land capability assessment; (iv) criteria and procedures for LGU participation; (v) criteria for acceptability of Upper River Basin Management Plans (URBMPs) and Watershed Management Plans (WMPs), (vi) criteria for selection of consultancy services, service providers and partners; and (vi) guidelines for the establishment and operation of PINREM-Cs, PPMOs and WMPCOs, including minimum criteria for evaluation of subprojects).

B. Implementation Arrangements at the River Basin Level

16. Selection of the four river basins was based on their representative biophysical conditions, socioeconomic and conservation values, taking account of installed water management infrastructure, the state of land and forest degradation. Final selection of the four river basins was largely anchored on availability of river basin-wide data. All four river basins have existing river basin-wide and comprehensive management plans currently requiring updates and refinement with tools and methods the project has to offer. In the case of Bukidnon, the provincial government implements all investments as generated through each watershed, which has management plans as managed by its respective watershed management councils. Further, unique to Bukidnon is the ongoing ADB Capacity Development Technical Assistance that technically and socially prepares the province for INREMP implementation.

Appendix 1

80

17. River Basin-Wide Activities. Upper River Basin Management Plans (URBMPs) will be developed for the four URBs to be adopted by Regional Development Councils (RDCs) and/or Provincial Legislative Councils. Provincial LGUs (P/LGUs), as coordinated by their respective Provincial INREM Councils (PINREM-C) shall spearhead URB management planning. The Provincial Project Management Office (PENRO-PPMO) at the DENR PENRO shall be the technical arm of the P/LGU and the PINREM-C. It is the repository of the data generated in the land use assessment and land capability analysis; it shall manage these data through the provincial node of the INREMP GIS database, which is based at the PENRO-PPMO. (See Appendix 1. Section V. GIS Mapping, Modeling and Database Development) The technical inputs to this river basin and watershed management planning process are the resulting analyses and information generated in the Land Use Assessment and Land Capability Analysis. The URB management planning process shall be fully participatory in nature, involving all river basin stakeholder sectors (communities, barangay and municipal governments, peoples’ organizations, relevant CSOs, indigenous peoples’ groups and councils, etc.) and relevant government agencies. Where necessary, participatory planning facilitators shall be contracted by the Project to assist the PLGUs. Technical consultants will also be provided by the Project.

18. The URB Management Planning process shall lead to the development of river basin and watershed management plans that are consistent with the government’s Integrated Watershed Ecosystems Management Framework as operationalized by the INREM Strategy, which is at the core of this Project. All local governments concerned and the necessary local legislations shall formally adopt the management plans and ordinances shall be enacted by the LGUs to enforce the management plans.

19. Specific river basin-wide activities related to the development of URBMPs are: (i) Baseline survey/assessment for the Project; (ii) Capacity building needs assessment in the PA, and initiation and completion of concerned staff enhanced through capacity building programs; (iii) Development of geographical information system-based database including the training of staff and operations manual for the DENR Central and Regional staff and Provincial local government unit staff; (iv) Development of TE-IEC program for each selected RB; (v) Remote sensing data acquisition and analysis for natural resources for land use assessment and groundtruthing for field verification; (vi) Land capability and participatory land use classification, zoning, approval, and adoption; (vii) Design and commissioning of research and studies on various aspects of INREM including climate change related aspects; (viii) Development and adoption of Guides and Manuals on climate change mitigation and adaptation; (ix) Development and operation of Monitoring and Evaluation system linked to GIS database to monitor Project progress; and (x) Preparation of URBMPs including private sector participation, based on inventories and analyses for conservation areas and buffer zones to support downstream investments, taking into account results of analyses and studies

20. Further, project implementers and other key stakeholders, on a river basin-wide scale, shall be trained/capacitated as regards land use assessments and watershed management/planning and livelihood enhancement through conservation farming. Box 1 shows the capacity building program.

BOX 1. INREMP Capacity Building I. Preparatory Orientation and Workshops

A. Institutional and policy support: national - Institutional and policy support: national/regional levels 1. Orientation (includes safeguards) - for central,

regions, and Provinces (Bukidnon, Misamis Oriental, Lanao del Sur, Bohol, Apayao,

B. Institutional and policy support: local - Institutional and policy support: national and local levels (province-based) 1. Orientation on INREM - Provincial venues, for LGUs

and stakeholders 2. Consensus building and dispute resolution: Consensus

Appendix 1

81

BOX 1. INREMP Capacity Building Banguet, Ifugao, Kalinga, and Mt. Province)

2. Trainers training on phased implementation - Trainers training on phased implementation of INREM

3. Legislative agenda and policy adjustment - for DENR/DA

building and alternative dispute resolution for DENR/DA, and LGUs

3. Enforcement program and local legislation for LGUs 4. LGU enterprise management - Local government

enterprise management

C. Preparation for LUA and URB Management Planning - Land use assessment and upper river basin management planning 1. Use of GIS for ENR A, M&E - Basic and

advanced GIS and applications to environment and natural resources assessment, monitoring, and evaluation for each of the 23 watersheds

2. Land use planning for LGUs - Land use planning for LGUs held for each of the 23 watersheds

3. Community mapping and land use zoning - Community mapping and land use zoning (watershed level) for LGUs held for each of the 23 watersheds

4. Assistance for IP planning - Assistance for IPs in planning and INREM integration, held for each of the 23 watersheds

5. Assistance for social assessment for or each of the 23 watersheds

D. Assistance in project financial management and procurement 1. Project disbursement and procurement for (i) DENR

national and regional; DENR national and regional staff and (ii) LGU level workshops: Provincial and municipal staff

2. Project planning and budgeting management for (i) DENR national and regional; DENR national and regional staff, and (ii) LGU level workshops; Provincial and municipal staff

3. Project mid-term workshop: Taking stock of project implementation progress: problems and proposed solutions and changes -- prior to midterm evaluation review; (i) DENR national and regional staff, and (ii) LGU level workshops: Provincial and municipal staff

E. Technical extension and IEC - Presentation/review of site-specific technical studies for dissemination at the local level 1. National level - Site-specific studies and

applications 2. River Basin level - Site-specific studies and

applications

G. Capacity Building in Watershed Management - GEF- Funded Capacity Building on Watershed Management 1. Awareness raising /Info Campaigns for PES 2. Technical Training on ANR/ Enrichment Planting for

Biodiversity 3. PES Training - For Chico and other URBs 4. IPO Revolving Fund 5. Financial Management Training for IPOs Revolving

Fund 6. GIS Training for Participatory Planning/ Monitoring 7. Training of Trainers/Community Based Information

Sharing 8. LULUCF Capacity Building Activities: Climate Change

and LULUCF Sustainable energy production

F. REDD Capacity Building

II. Livelihood Enhancement thru conservation farming: Chico, Wahig-Inabanga, Upper Bukidnon, and Lake Lanao

A. Hands-on Training cum practicum 1. Natural Vegetative Strips 2. Bio-Intensive Gardening/Organic Vegetable

Farming 3. Masipag Rice Technology 4. Agro-forestry (intercropped with cash crops):

Agro-forestry with 70:30 ratio (70% fruit trees and 30% perennial trees)

5. Community nursery establishment

B. Training on compost making and vermiculture

C. Provision of Inputs for technology replication/upscaling for deserving vulnerable farming households

Appendix 1

82

C. Implementation Arrangements and Phased Approach at the Watershed Level

21. At the Watershed level and investment stage, the project approach shall be phased: (i) Implementation within Core Watersheds and (ii) Upscaling to other Watersheds within the River Basins. Project implementation after river basin-wide planning shall initially be limited to the four core watersheds assessed during the Feasibility Study. These core watersheds were: (i) scoped out for subprojects; (ii) assessed to have watershed management plans in place and/or in an advanced preparation stage; (iii) the focus of detailed stakeholder sensitization and orientation and capacity needs assessments, including LGU implementation and fiscal capacities.

22. Table A1.1 shows the core watersheds per river basin along with the covered municipalities.

Table A1.1 Core Watersheds and Covered LGUs River Basin/Sub-Watershed (SWS)

Estimated Area (ha)

Region Province Covered

Municipality / City BUKIDNON Manupali-Kitanglad 50,957 3 X Bukidnon Lantapan Bukidnon Talakag Bukidnon Valencia City CHICO Bauko 30,111 6 CAR Mt. Province Sabangan Mt. Province Bauko Mt. Province Sagada Mt. Province Bontoc CAR Ifugao Tinoc Ifugao Hungduan CAR Benguet (Buguias) LAKE LANAO Bubong 19,546 6 ARMM Lanao del Sur Bubong Lanao del Sur Ditsaan Ramain Lanao del Sur Maguing Lanao del Sur Marawi City Lanao del Sur Mulondo Lanao del Sur Taraka WAHIG-INABANGA Wahig-Pamacsalan 13,889 5 VII Bohol Duero

Bohol G. Hernandez Bohol Jagna Bohol Pilar Bohol Sierra Bullones

TOTAL 114,503 4 6 20

Phase 1. Implementation within Core Watersheds

23. At the municipal level, the four core watersheds straddle across administrative boundaries of several municipalities. A multi-sectoral Watershed Management Council (WMC) shall be established in each core watershed. The WMC shall be the forum for arriving at consensus on land use and natural resource-based investments within their watershed.

Appendix 1

83

24. The administrative and technical focal point for the project at the watershed level is the Watershed Management and Project Coordination Office (WMPCO) based at the DENR-CENRO. This office will oversee the implementation of project activities and demonstration projects by Communities and Organizations (CBOs, IPs, POs, NGOs, Private Sectors, and Institutions). Its administrative operations shall be guided by the DENR functional rules regarding INREMP. In terms of prioritizing projects, locating project investments sites and similar concerns, the WMPCO shall closely coordinate with the M/LGUs in the watershed, and the Watershed Management Council, particularly in cases where conflicts among stakeholders occur.

25. LGUs shall mobilize technical resources at the provincial and municipal levels (e.g., LGU planning and development offices, provincial and municipal agriculture offices, LGU environmental management offices, engineering departments, etc.) in support of on-ground INREM project implementation. The Project will support incremental operating requirements of these LGUs in this regard.

26. Core-Watershed Management and Planning Activities. Watershed Management Plans (WMPs) will be prepared for the four core watersheds based on the URBMPs. WMPs will define and prioritize subprojects and establish a work program for implementation by LGU clusters and Municipal Development Councils. WMPs will take account of existing tenurial arrangements and treat Ancestral Domains (AD) as management sub-units.3

27. Activities under watershed management planning may commence at the start of URB management planning. Specifically, the setting up of LGU level organizations may be done since initial mobilization shall have been included at preparatory stage. Key activities under watershed management planning within the four core watersheds are:

(i) Land capability and participatory land use classification, zoning, approval, and adoption

(ii) NPCO, DENR Field Offices and LGUs to set up LGU level organizations; (iii) Enabling legislative instruments as prescribed in the URBMPs shall be issued,

including appropriate tenure and payment for environmental services, for local community participation in INREM;

(iv) Delineation and demarcation of forest boundaries, buffer zones, and land management zones based on URBMP prescriptions and zoning in the four core watersheds; and,

(v) Implementation of TE-IEC in the four core watersheds.

Core Watershed On-Ground Investments.

28. Subproject investments will be undertaken within the four core watersheds based on outputs from river basin-wide planning. Interventions for watershed restoration and rehabilitation will be implemented by DENR to include community based protection, reforestation and/or assisted natural regeneration, production forestry including demonstrations on agroforestry and commercial plantations, and conservation farming (refer to Appendix 1 Section VI for the details of conservation farming).

29. Livelihood enhancement investments to be undertaken by Municipal LGUs include rural access roads and foot trails, communal irrigation systems, potable community water facilities, and provincial trading/processing center supporting farming communities. Detailed description of the Implementation Arrangements for Rural Infrastructure is presented in Appendix 1 Section

30. The menu of possible INREMP subprojects are:

3 As defined in the Indigenous Peoples Right Act (IPRA) 1997.

Appendix 1

84

(i) Forest rehabilitation and protection (ii) Sustainable forest management (iii) Agroforestry (iv) Commercial plantation (v) Conservation farming (vi) Rural access infrastructure, foot trails, and 1 provincial trading center (vii) Improved Communal Irrigation Systems (viii) Potable Water Supply units

31. Prior to subproject implementation, the following conditions will have been satisfied:

(i) LGUs within the core watersheds are clustered evidenced through a memorandum of agreement;

(ii) Site identification for the subproject is consistent with prescriptions in the URBMPs and the WMP;

(iii) Social mobilization and capacity building related to the subproject being proposed have been conducted at the community level and the necessary community organization is in place;

(iv) While it is not necessary that the WMP is already approved and adopted, subproject feasibility studies are prepared, submitted, assessed and approved;

(v) Proof that the MLGU, Barangay Officials and communities were actively involved in the selection and approval process and in the case of rural infrastructure, willing to put up the required equity contribution and agree to maintain the completed facilities; and

(vi) Investment sites must be free from social and environmental problems and issues, or alternatively feasible mitigating measures will have to be provided.

Phase 2. Upscaling to Other Watersheds

32. Scaling up and/or replication into additional watersheds will depend on (i) demonstration of progress in the 4 watersheds provide the necessary learning’s for scaling up. In particular, completion of the core watershed management plan and conduct of social mobilization and capacity building within the core watershed have been completed; (ii) Should several LGUs constitute a watershed, these LGUs agree to cluster through a memorandum of agreement and individually, their respective Chief Local Executives are signatories to the adoption of the URBMP; If there is only one LGU within a watershed, that LGU must have been a signatory to the URBMP adoption; (iii) Capacity building and social preparedness activities have been conducted in the target watersheds; and (iv) other implementation considerations, including subproject conditionalities stipulated for the core watersheds.

33. In particular, the following triggers should be met during the implementation of the initial phase before expansion and/or scaling up into additional watersheds shall have been completed:

(i) LGU adoption of URBMP (ii) Completion of the core WMP (iii) WMC created and functional; LGUs clustered (iv) PO/IPO accreditation and organizational capacity development (v) Capacity building for watershed management and planning and livelihood

development conducted (vi) LGUs that constitute core watersheds cluster through a memorandum of

agreement (vii) Chief Local Executives of core watershed LGUs are signatories to the adoption of

the URBMP

Appendix 1

85

(viii) Capacity building and social preparedness activities on livelihood and FS development

(ix) Subprojects are compliant to prescriptions and siting with respect to URBMPs (x) LGUs and communities actively involved in subproject FS preparation, selection

and approval (xi) LGU willingness to put up required equity contribution and agree to maintain

completed facilities (xii) Compliance to safeguards (Environment/subproject siting, resettlement, and

indigenous peoples)

34. Arrangement and criteria for review. Inasmuch as the administrative and technical focal point for the project at the watershed level is the Watershed Management and Project Coordination Office based at the DENR-CENRO, it has to closely coordinate with the M/LGUs in the watershed, and the Watershed Management Council. These bodies will work towards compliance of project progress.

35. The technical resources of the P/LGUs and the M/LGUs (e.g., LGU planning and development offices, provincial and municipal agriculture offices, LGU environmental management offices, engineering departments, etc.) are expected to be mobilized by the respective LGUs in support of on-ground INREM project implementation.

36. The regional office in close coordination with the provincial project office will lead the review on the implementation progress. NPCO/consultants & other GAs will act as oversight to provide the necessary objectivity.

37. The following review criteria will be used at the end of the initial phase to assess implementation progress and compliance with the pre-determined triggers for expansion and/or scaling up into additional watersheds:

(i) LGU clustering and adoption of URBMP (ii) Level of WMP development (iii) Organizational development of WMC and IP/IPO (iv) Extent of social marketing/ Consultations (v) Trainings conducted (vi) Subproject FS prepared, approved and implemented/ Compliance to URBMP (vii) Subprojects free from social and environmental problems/issues, or feasible

mitigating measures be provided

38. Field implementation of subproject activities as detailed in the URBMPs will be continued and more specifically identified in subproject feasibility studies following the same procedure and timing as in the subprojects in the four core watersheds.

D. Implementation Schedule

39. All preparatory activities shall be completed by Year 1 inasmuch as all river basins have existing river basin-wide management plans and that the INREMP feasibility study already developed indicative management prescriptions that will be subject to updating and refinement. River basin management planning activities shall commence on Year 1, for completion by Year 2.

40. Watershed management planning of the four core watersheds as well as the other non-core watersheds may start simultaneously with the URBMP preparation given that these watersheds constitute the URBs. It is however acknowledged that DENR and LGU capacities in different URBs may vary: some may be proactive, while others may have constraints and issues to resolve that may take time. As this is a demand driven project, watershed-specific activities

Appendix 1

86

within the four core watersheds may start simultaneous with the URBMP preparation especially for those that are already prepared. For investment replication and/or upscaling to other watersheds, these may commence as early as 6 months after core watershed start up.

41. However, all activities, whether core or non-core will have a project duration until project ends as it is anticipated that such activities like protection and legislation may last beyond project life.

Appendix 1

87

IMPLEMENTATION ORGANIZATION CHART

National

DENR Secretary Undersecretary (PSC Chair)

National Project Steering Committee

(NPSC)

Forest Management Bureau

National Project Coordination Office (NPCO)

Interagency Technical Working Group

(TWG)

Regional

DENR Regional OfficeRegional Executive Director

Regional Project Coordination Office

Regional Development Council (RDC)

DENR PENROProvincial Project

Management Office (PPMO)

Provincial INREM Councils (PINREM‐C)

Project

Consultants

Provincial Governments(P/LGU)

DENR CENRO

Watershed Management & Project Coordination Office

Municipal Governments(M/LGU)

Watershed Management Councils

Communities and Organizations(CBOs, IPs, POs, NGOs, Private Sectors,

Institutions) Implementation of Project sub‐

components and activities

Provincial

Watershed

Municipal Cluster

Sub‐project/ site level

Technical A

dvice and Capacity‐Building

DENR‐ FASPO and FMS

Line Function Technical Assistance, Advisory & Coordination

Appendix 1

88

II. FLOWCHARTS: IMPLEMENTATION OF LAND USE/CAPABILITY ASSESSMENT AND SMALLHOLDER/ COMMERCIAL/ INSTITUTIONAL INVESTMENTS

Figure II.1 Implementation of Land Use Assessment, Land Capability Assessment, and Management Planning

Appendix 1

89

Figure II.2. Implementation of Smallholder/Commercial/Institutional Investments

Appendix 1

90

III. Land Use Asssessment, LandCapability Classification, Zoning and Delineation

A. Introduction 42. The Integrated Natural Resources and Environmental Management Project (the Project) is envisioned to improve the quality of life of rural communities in the Upper River Basins (URBs) by sustainably managing natural resources with stakeholder participation, and ensuring that local institutions will effectively govern river basin resources as an enterprise that generates revenue for conservation and livelihood. The Project has four major components, namely: a) River Basin and Watershed Planning; b) Small Holder/Institutional Investments; c) Capacity Building; and d) Project Management and Support Services. B. Objectives 43. The overall objective of this component is to establish baseline information on the 23 watersheds within the four river basins initially included in the Project. This baseline provides a picture of the subproject sites in terms of a) land use and land use cover; b) legal classification (forestlands and A&D lands); c) inventory of bio-physical resources; (d) biodiversity potential; e) climate change vulnerability, f) land ownership and tenure; g) physical attributes such as slope and topography, geology and soils, h) socio-economic attributes; and i) land capability and suitability. All these information will form part of the inputs to the preparation of the natural resources management plans.

44. Apart from providing basic inputs for the preparation of URB Management Plans, the output will also provide baseline information for the proposed GIS-based database development for M&E (DDM&E) that will be developed in this Project. This will help decision and policy makers in arriving at more optimal land use allocation decisions, sound investment decision for potential investors, better conservation and management strategies and climate change mitigation and adaptation measures. Moreover, the results from this component will also help in rational zoning LGUs within these river basins and provide information to stakeholders that will enable them to be more proactive and participate intelligently in activities related to the management of these river basins. C. Expected Outputs 45. The following are the major outputs: a) Comprehensive reports/maps on vegetation/land cover, physical-ecological and socio-economic profile of project area; b) land capability classification and land use suitability maps/reports; and c) maps/reports of zoning and delineation. D. Scope 46. This component will cover the entire Project area comprising four river basins with an aggregate area of 1,138,553 ha. traversing nine (9) provinces from Luzon, Visayas and Mindanao. These river basins and their respective area in ha and location are (Table A1.2): a) Chico River Basin (454,552 ha) traversing the provinces of Ifugao, Mt. Province, Kalinga, Benguet, and Apayao in the Cordillera Administrative Region (CAR); b) Wahig-Inabanga (62,793 ha) in Bohol, Region 7; c) Upper Bukidnon River Basin (479,870 ha) in Bukidnon and including some portion in Misamis Oriental of Region 10; and , d) Lake Lanao River Basin

Appendix 1

91

(141,339 ha) in Lanao del Sur of ARMM. Out of the four river basins, twenty-three (23) watersheds have been identified. Consequently, the reports and maps that will be prepared as output of this component will be for each watershed (subproject) and aggregated by river basin.

Table A1.2 Extent and Location of River Basins

River Basin (No. of

Watershed)

Estimated Relative Proportion

(%)

Provinces Municipalities/

Cities Barangays

Area (ha) (Region) No. % of Total

No. % of Total

Chico (8) 454,552 39.9%

Apayao, Benguet, Ifugao, Kalinga, Mountain Province, (CAR)

20 24.7% 259 19.4%

Wahig-Inabanga (4)

62,793 5.5% Bohol (R-7) 15 18.5% 130 9.8%

Upper Bukidnon (6)

479,870 42.1% Bukidnon, Misamis Oriental (R-10)

19 23.5% 212 15.9%

Lake Lanao (5)

141,339 12.4% Lanao del Sur (ARMM)

27 33.3% 731 54.9%

Total (23) 1,138,554 100.0% 9 Provinces (in 4

Regions) 81 100.0% 1,332 100.0%

E. Tasks/Activities

47. Remote Sensing, ground truthing. This task will involve satellite imagery acquisition, and image processing and interpretation. Satellite images, available maps both in analogue and in digital formats shall be collected. It is expected that not all data collected will be digital or GIS format and thus require extensive GIS processing. For the purpose of the feasibility study preparation, GIS data were collected from DENR Forest Management Bureau (FMB) and River Basin Control Office (RBCO). Likewise, maps were also procured from NAMRIA indicating topography, drainage network and roads which were used in combination with GIS data in characterizing the watersheds. Ground truthing is undertaken to validate interpretation of satellite imageries and thus increase accuracy of results. 48. Baseline establishment. This includes: a) collection of secondary and primary data and existing maps and b) consolidation and analysis of data and preparation of reports and maps. The following are categories of data that will be collected:

i. Location – this refers to administrative boundaries: Region, District, Province, Municipality/City, Barangay; Point Locator, Line/Polygon Locators, NAMRIA Map Sheet Number

ii. Physical – this refers to natural features such as slope, elevation, aspect, geology, soils and man-made infrastructure such as roads, bridges, buildings

iii. Hydrometeorology – this includes meteorological data such as rainfall, temperature,

and humidity and hydrologic data like water sources, discharge rates, water quality

iv. Environmental - this category includes presence of environmental hazards (e.g.

Appendix 1

92

landslide, flood, earthquake, seismicity, and pollution), presence of threatened, endangered and vanishing species, and the presence of encroachment on forest territory.

v. Biological – refers to vegetative description (e.g. forest cover, shrubs, grassland) or

biodiversity importance value; this may involve the conduct of resource inventory in order to ascertain the potential economic and environmental value of resources. In particular, this should include species of flora and fauna and estimated quantity. For timber resources, this should result in the production of stand and stock table for forest areas and an estimate of carbon stock.

vi. Socio-economic and cultural – this includes land use description (i.e. agriculture,

industry, etc.), livelihood opportunities, economic data, and social data about included and adjacent human settlements especially IPs, legal land classification, tenure (Forest, IPRAS, NIPAS, Ancestral domains – CADT/CALT, A&D), land use, boundary conflicts

vii. Issues and concerns – this includes a description of major issues and concerns

obtaining within the watershed such as land use conversion to undesirable use, forest or grass fire; slash and burn farming, illegal timber harvesting; and lack of market or credit access among local communities.

49. The data enumerated above shall be consolidated and analyzed and comprehensive reports shall be prepared for each watershed (subproject) and summarized by river basin. The reports shall consist of both written reports and maps. 50. Land Capability and land use suitability analysis. Land capability classification and land use suitability analysis will be determined following the model presented in the report on database development for M&E (See Appendix 1. Section V. GIS Mapping, Modeling and Database Development). This will involve determination of physical capacity of a location to support a specific land use, which will result in minimum adverse impacts and will also take into account susceptibility of the sites to accelerated erosion (Anderson (1987) as cited by Bantayan (2009). The susceptibility may be expressed in terms of erosion potential estimate (EPE) which is a function of current biophysical and climatic parameter like rainfall, soil propertied, topography, vegetation cover and land management practices. 4 51. Zoning and delineation. The purpose of zoning is to identify and separate areas having similar potentials and constraints for development. Consequently, each zone has similar combination of constraints and potential for land use, and provides focus for formulation of appropriate interventions or recommendations designed to improve the existing land use situation. Such interventions should aim at increasing production or limiting land degradation or both. Zones will be defined on the basis of combinations of soil, land form and climatic characteristics. The parameters used in the definition shall focus attention on the climatic and edaphic requirements of crops and on the management systems under which the crops shall be grown. Finalization of zoning for the basin will involve iterative process of subjecting one zoning option after another to an assessment of the potential outcomes and impacts particularly on but not limited to water quality and quantity, biodiversity, carbon footprint, livelihood opportunities, equity and food security to guarantee that the final zoning configuration of the basin will have outcomes and impacts within the desired range.

4 Report on Forest Boundary Delineation Study, DENR’s Land Administration Management Program (LAMP)

Appendix 1

93

52. For the purpose of this project, stakeholders’ participation to establish consensus on the final zoning shall be undertaken during the preparation of the management plans and not at the assessment stage. Moreover, the delineation of the different zones shall be done on the map for the all river basins and watersheds. In cases where the area under consideration is classified as forest land, ground delineation shall also be carried out. This will help in ascertaining boundary of each zone and facilitate implementation of the different ground interventions.

F. Assessment of the Project Area and Sample Subprojects

53. Preparation of the Feasibility Study. For the purpose of designing the Project and preparing its feasibility study, the procedure discussed previously was applied to characterize the project area as well as the watersheds selected, using mostly secondary data and GIS approach. The characterization include the geographic location, physical description such as slope, rivers and water bodies, man-made infrastructures, and built-up areas, land cover and other land uses, and legal land classification. (The results of the characterization for the project area are provided in Appendices 1. Sections IV and V - Project Area Description and GIS-based database development for M&E.) 54. Briefly, the characterization shows that of the aggregate area of 1,139,000 ha, 720,000 ha or 63% are classified as forest land while 419,000 ha or 37% are alienable and disposable (A & D) lands. Of the 720,000 ha of forestland, only 313,029 ha or 43% have forest cover, the remaining 407,000 ha or 57% are either cultivated, grasslands, shrubs, wooded grassland or built-up areas. On the other hand, of the 419,000 ha of A& D lands, 314,000 ha or 76% are cultivated and planted to annual crops and the rest are shrubland or cultivated land planted to perennial crops or grassland or built-up areas. Overall, although the project area has 720,000 ha of forest land, its current forest cover is only 319,000 ha or 28% of the entire project area, out of which 98% is in legally classified forest land. Of the total forest cover, 170,124 ha or 54% are closed forest5, 143,000 ha or 45% open forest, and 5,000 ha or 2% plantation forests. The details of the Project Area description in provided in a separate report. 55. The four watersheds (sample subprojects), one from each river basin, were selected for detailed study for the project design based on their biophysical conditions, socioeconomic and conservation values, and the state of their degradation. These watersheds are: a) Bauko watershed in Chico river basin; Wahig-Pamacsalan watershed in Wahig-Inabanga; the Manupali-Kitanglad watershed in Upper Bukidnon; and Bubong watershed in Lake Lanao. 56. The results of the characterization6 done on the sample watersheds are detailed in Appendix 1. Section IV. – Subproject Area Description. Briefly the results show that the estimated total area of the four watersheds (subprojects) is 114,500 ha spread over 24 cities and municipalities and 218 barangays. Largest of these is Manupali-Kitanglad watershed in Upper Bukidnon with almost 51,000 ha and traversing Lantapan, Talakag, and Valencia City.

5 Closed canopy forest – formation where trees in various storey and undergrowth cover a high proportion (>40

percent) of the ground and do not have a continuous dense grass layer. They are either managed or unmanaged forests, in advance state of succession and may have been logged over one or more times, having kept their characteristics of forest stands, possibly with modified structure and composition; Open-canopy forest – formations with discontinuous tree layer with coverage of at least 10% and less than 40%. They are either managed or unmanaged forests, in initial state of succession.

6 A more detailed description of the four subproject areas is provided in a separate report titled “Project Area Description”

Appendix 1

94

This is followed by Bauko in Chico River with 30,000 ha and spanning Bauko, Sabangan, Sagada and Bontoc in Mt. Province and Hungduan and Banaue in Ifugao; Bubong in Lake Lanao with 20,000 ha and cutting across Bubong, Ditsaan Ramain, Maguing, Marawi City, Mulundo, Kapai, and Taraka in Lanao del Sur; and Wahig-Pamacsalan in Wahig Inabanga with 14,000 ha and covering Sierra Bullones, Pilar, Garcia-Hernandez, Jagna, Duero and Guindulman in Bohol. 57. In addition, sixty-six percent of the total area are classified as forest lands. Bauko has the highest proportion of legally classified forest land at 95%, followed by Bubong at 74%, Manupali-Kitanglad at 54% and Wahig-Pamacsalan at 34%. The average forest cover of the subprojects is about 42%, with Bubong having the highest forest cover at 72%, followed by Bauko at 49%, and Wahig-Pamacsalan and Manupali-Kitanglad at 30% each. Thirty nine percent of the subproject area are cultivated and planted to annual crops, of which, Wahig-Pamacsalan has the highest proportion at 60%, followed by Manupali-Kitanglad at 58%, Bubong at 25% and Bauko at only 5%. 58. The characterization was used as basis for determining and identifying the management regimes7 appropriate for a given land use category under each river basin and each subproject. The different management regimes are as follows:

Above 30% Slope o Conservation and protection of natural forests o Reinforced protection of conservation and protected areas o Reforestation/afforestation o Assisted natural regeneration o Smallholder Agroforestry or Other Appropriate Livelihood

30% Slope and Below o Sustainable forest management o Commercial plantations with community o Smallholder agroforestry (Forestland) o Other categories: Conservation farming, organic farming and infrastructure Conservation farming, agroforestry extension/demonstration Includes inland waters, marshlands, mangroves, barren lands

59. The results of the analysis for the Project area and the subprojects are given in Tables A1.3 and A1.4, respectively. 60. Project Implementation. At project implementation, a more detailed study of each of the 23 subprojects will be undertaken following the same procedure above. Data gathered during the preparation of the feasibility study will be updated and augmented with primary data derived from interpretation of the most recent satellite images, groundtruthing, resource inventory, data on soils and other physical and hydrological data, and participatory community mapping.

61. The land use assessment, land capability classification, land capability classification and suitability and zoning and delineation will be carried out during the first two years of project implementation. The outputs from these tasks include among others a comprehensive report/map in terms of geographic and administrative location, biophysical features, hydro-

7 The detailed procedure for determining the appropriate management regimes for each land use category in both the project area

and sample watersheds is provided in a separate report, Supplementary Appendix F GIS-based database development for M&E.

Appendix 1

95

meteorological, environmental and socio-economic and cultural characterization of each watershed, land capability classification and land suitability, and zoning and delineation on maps. These outputs will serve as input to the preparation of management plan for each river basin and the prescription or intervention in each of the watersheds. Moreover, these outputs will also serve as basis for identifying and packaging potential investments in the project area and as baseline information for the proposed URB GIS-based database development for M&E.

G. Implementation arrangements and Resource Requirements

62. The implementation of this component of the Project will follow the implementation arrangement of INREM detailed in the River Basin and Watershed Planning Component. It is envisioned that the primary data gathering and the detailed land capability and suitability analysis and zoning will be contracted at the rate of about P200/ha or approximately USD4.7million at the rate of PhP48/USD for the entire Project Area.

Table A1.3. Management regime for the Project area (Indicative)

Management regime

By River Basin Project

Area Chico Wahig-

Inabanga Upper

Bukidnon Lake Lanao

ABOVE 30% SLOPE

Conservation and Protection of Natural Forests

116,691

6,652

66,193

11,942

201,478

Reforestation/ Afforestation 18,934 2,236 14,839 1,742 37,751

Assisted Natural Regeneration 159,957 5,825 66,510 6,979 239,271

Smallholder Agroforestry or Other Appropriate Livelihood [A&D]

16,329 7,107 65,524 1,957 90,917

Sub Total 311,911 21,820 213,066 22,619 569,417

30% SLOPE AND BELOW

Sustainable Forest Management 13,179 1,282 6,529 61,777 82,767

Commercial Plantations with Community Participation

57,482 1,034 22,459 5,102 86,077

Smallholder Agroforestry [Forestland] 9,545 2,675 44,839 14,199 71,258

Other Categories: conservation farming, organic farming and infrastructure improvement

52,295 31,069 143,431 32,669 259,464

Other Categories: conservation farming, agroforestry extension/demonstration

9,997 4,389 49,177 4,625 68,188

Other Categories: include all forestlands below 30% slope that are inland waters, barren land, marshlands, mangroves, settlements

143 523 371 346 1,383

Sub Total 142,641 40,972 266,806 118,718 569,137

Total 454,552 62,792 479,872 141,338 1,138,554

Appendix 1

96

Table A1.4. Management regime for the Core Subproject Areas

Management regime

By Watershed Subproject

Total Bauko, Chico River

Basin

Wahig-Pamaksalan,

Wahig-Inabanga

River Basin

Manupali-Kitanglad,

Upper Bukidnon

River Basin

Bubong, Lake

Lanao River Basin

ABOVE 30% SLOPE

Conservation and Protection of Natural Forests 9,680 696 4,444 747 15,566

Reforestation/ Afforestation

- 391 1,460 1,851

Assisted Natural Regeneration 12,597 2,202 17,968 412 33,179

Smallholder Agroforestry or Other Appropriate Livelihood [A&D]

889 1,183 5,258 7,331

Sub Total 23,166 4,472 29,130 1,159 57,927

30% SLOPE AND BELOW

Sustainable Forest Management 3,185 900 642 12,230 16,957

commercial Plantations with Community Participation

3,016 215 157 3,389

Smallholder Agroforestry [Forestland] - 355 2,604 1,106 4,065

Other Categories: conservation farming, organic farming and infrastructure improvement

473 6,292 14,340 4,391 25,495

Other Categories: conservation farming, agroforestry extension/demonstration

225 1,654 4,084 518 6,481

Other Categories: Includes inland waters, marshlands, mangroves, barren lands, settlements

47 143 190

Sub Total 6,945 9,417 21,827 18,387 56,576

Total 30,111 13,889 50,957 19,546 114,503

REFERENCES ADB. 2009. INREM Concept Paper. DENR. 2008. DENR Administrative Order No. 2008-24. Guidelines for the Assessment and Delineation of Boundaries Between Forestlands, national Parks and Agricultural Lands. Visayas Avenue, Diliman, Quezon City. Project Area Description. INREM Report Report on Forest Boundary Delineation Study, DENR’s Land Administration Management Program (LAMP) Subproject Area Description, INREM Report Verburg. P. H. and A. Veldkamp. 2004. Projecting land use transitions at forest fringes in the Philippines at two spatial scales. http://www.springerlink.com/content/w3n22087568138x4/fulltext.pdf?bcsi_scan_D4A612CF62FE9576=P

Appendix 1

97

2kDfDGPQhNbqFXngv6pvBwAAAAm9Jgb&bcsi_scan_filename=fulltext.pdf Accessed on July 6, 2009. Yongyuan Yin And J. T. Pierce. 2004. Integrated Resource Assessment and Sustainable Land Use. http://www.springerlink.com/content/f485185042552672/fulltext.pdf, Accessed on July 7, 2009.

IV. Detailed Description of Study Sites

A. Introduction

63. Project site selection was guided by the interagency Technical Working Group (TWG) chaired by the Department of Environment and Natural Resources (DENR), after consultations with different sectors and agencies. The TWG recommended study of four representative river basins that encompass the entire range of river basin issues ensuring that lessons learned can be replicated across the country. The location of Project sites are: (i) Chico River Basin in the Cordillera Administrative Region (CAR), (ii) Wahig-Inabanga River Basin in Bohol Province, Visayas, (iii) Bukidnon River Basin, Bukidnon Province, Mindanao, and (iv) Lake Lanao River Basin of Lanao del Sur, Autonomous Region in Muslim Mindanao (ARMM)

64. The Project sites are comprised of 23 watersheds extending to over 11,385.55 km2 (Table A1.5) with an estimated population of around 1.8 million. Approximately 223,000 household beneficiaries are targeted under the Project covering 9 provinces, 81 cities and municipalities, and some 1,332 barangays. Main beneficiaries are marginal households with small landholdings. Indigenous peoples (IP) and other ethnic minorities8 (EM) constitute around 75% of the total beneficiaries that reside in headwaters of the river basins (See Working Paper #1).

Table A1.5. INREMP Coverage Area River Basin/

Region/Province Component watershed Area (km2) % of River Basin Population* Population

Density (km2) No of

Municipalities* No of

Barangays No of

HouseholdsChico 1 Tabuk 605.39 13 73,327 121.12 4 41 9,166 CAR: 1. Apayao 2 Conner 568.48 13 42,170 74.18 3 20 5,271

2. Benguet 3 Tuao 796.81 18 120,655** 151.42 7 8 1,078 3. Ifugao 4 Balbalan 776.75 17 24,583 31.65 5 42 3,073 4. Kalinga 5 Lubuagan 729.24 16 38,167 52.34 6 50 4,771 5. Mt. Province 6 Bontoc 411.88 9 28,731 69.76 8 23 3,591 7 Barlig-Tanudan 355.86 8 8,345 23.45 6 21 1,043

8 Bauko 301.11 7 43,735 1.45 6 54 5,467 SubTotal Area 4,545.52 100 379,713 83.54 45 259 33,460 % from Total INREMP Area 40

Wahig-Inabanga 1 Wahig-Pamaksalan 138.89 22 41,174 296.45 5 36 5,147 Region 7: Bohol 2 Danao 133.39 21 14,616 109.57 5 18 1,827

3 Dagohoy 216.37 35 46,370 214.31 7 32 5,796 4 Inabanga 139.28 22 37,618 270.09 4 44 4,702

SubTotal Area 627.93 100 139,778 222.6 21 130 17,472 % from Total INREMP Area 6

Upper Bukidnon 1 Manupali 509.57 11 59,299 116.37 3 16 8,471 Region 10: 2 Talakag 650.07 14 31,801 48.92 1 21 4,543

1. Bukidnon 3 Sumilao-MF-Malitbog 1,326.05 28 91,264 68.82 4 32 13,038 2. Misamis Oriental 4 Malaybalay-Impasugong 525.85 11 178,614 339.67 4 45 25,516

5 Baungon-Libona 948.21 20 91,887 96.91 5 34 13,127 6 Kalatungan-Muleta 838.96 17 118,874*** 141.69 10 64 17,340

SubTotal Area 4,798.70 100 571,739 119.14 27 212 82,035 % from Total INREMP Area 42

8 EM of Lake Lanao known as Meranao, generally of Muslim affiliation; prefer to be identified as EM.

Appendix 1

98

River Basin/ Region/Province Component watershed Area (km2) % of River

Basin Population* Population Density (km2)

No of Municipalities*

No of Barangays

No of Households

Lake Lanao 1 Bubong 195.46 14 73,743 377.28 6 89 9,218 ARMM: Lanao del Sur 2 Malaig 354.03 25 94,875 267.99 7 87 11,859

3 Taraka Gata 547.89 39 170,007 310.29 7 199 21,251 4 Saguiaran-Marawi 141.05 10 222,633 1,578.40 3 153 27,829 5 West 174.96 12 159,391 911.01 11 203 19,924

SubTotal Area 1,413.39 100 720,649 509.87 34 731 90,081 % from Total INREMP Area 12

Grand Total Area 11,385.55 100 1,811,879 159.14 127/81* 1,332 223,048 *The total 81 avoids double counting as some municipalities straddle more than 1 watershed.

65. Chico River Basin has the most number (08) of component watersheds or subwatersheds, followed by Upper Bukidnon (06), Lake Lanao (05) and Wahig-Inabanga (04). In terms of area, Upper Bukidnond is the largest, which constitutes 42% of the total INREMP sites, followed by Chico (40%), Lake Lanao (12%) and Wahig-Inabanga at 6%. 66. Of the aggregate Project area 63% are classified as forest land while 37% are alienable and disposable (A & D) lands. Of the 719,985 ha of forestland, only 312,585 ha or 43% have forest cover, the remaining 407,400 ha or 57% are either cultivated, grasslands, shrubs, wooded grassland or built-up areas. On the other hand, of the 418,570 ha of A& D lands, 314,193 ha or 76% are cultivated and planted to annual crops and the rest are shrubland or cultivated land planted to perennial crops or grassland or built-up areas.

B. Upper Chico River Basin

1. Geographic Location and Importance to the Philippines

67. The Chico River Watershed9 was established by virtue of Proclamation No. 573, signed by President Ferdinand E. Marcos on June 26, 1969. Part of Proclamation 573 is Parcel No. 2, which comprises the Chico Forest Reserve. It covers areas extending from Mt. Province down to Ifugao, Kalinga and Apayao. The basin lies between 16 49’28” to 17 57’58” north latitude and 120 50’37” to 120 33’14” east longitude.

68. Chico River Watershed has vast potentials for development. Being one of the major river systems in CAR, it has potentials for electric power, irrigation and domestic purposes, recreation, and other varied uses. The river harnesses the major irrigation systems to water its vast rice lands. As a result, Kalinga has been promoted as a rice granary of the region on account of its fertile plains and valleys. On the other hand, Mt. Province being the upper catchment area of the watershed, has become the home to high value crops yielding legumes/beans, carrots, root crops and other cash crops. White water rafting along the Chico River is another potential attracting local as well as foreign tourists. As regards mineral resources, these are still untapped with prospects that include gold, sulfur, copper, gypsum, clay and gravel and other quarry resources. While some of these have been extensively assessed particularly in the Kalinga side, the volume of deposits cannot be quantified since no actual drilling has ever been conducted.

69. Issues and concerns surrounding the watershed include: (i) land use conversion to inappropriate uses such as the conversion of mossy forest in Mt. Data to vegetable gardens; (ii) decreasing water discharge as a result of drying up of water sources; (iii) diminishing biodiversity that may be attributed to anthropogenic activities of man such as kaingin making, illegal cutting, forest fires and chemical pollution; (iv) river siltation due to soil erosion and

9 Master Plan for the Management and Development of the Chico River Watershed. Regional Development Council-Cordillera

Administrative Region. 2009.

Appendix 1

99

landslides in upstream areas; (v) water pollution attributed to household and industrial wastes from municipalities in Mt Province dumped into the main river or its main tributaries. The watershed is thus beset with various problems such as decreasing water discharge, diminishing biodiversity, river siltation, and river pollution. Built-up areas lined along headwaters increased solid waste concerns. Potability is highly reduced in some areas. Soil cover is depleted which impacts on water-holding capacity.

2. URB Coverage: Area, Geopolitical and Demograpgic Characteristics

70. An initial site assessment10 of the Chico River Basin was conducted which builds on data generated through the CAR Regional Development Council (RDC)-TWG. To facilitate the assessment process, the whole river basin was divided into inherent sub-watersheds (SWS) as shown in Table A1.6 for a total of eight SWS management units. In maintaining the integrity of the river basin, the PPTA identified the lower portion to cover parts of Cagayan Province in Region II. The Chico River Basin therefore technically includes two regions: CAR and Region II.

Table A1.6. Sub-Watersheds and Coverage within the Chico River Basin No SWS Area (km2) % From Total URB Municipalities No. of Barangays

1 Tabuk 60,539 13.32 4 41 Pinukpuk 6 Tabuk 33 Tanudan 1 Balbalan 1

2 Conner 56,848 12.51 3 20 Pinukpuk 2 Conner 17 Kabugao 1

3 Tuao 79,681 17.53 7 8 Pinukpuk 4 Rizal (Liwan) 1 Conner 3

4 Balbalan 77,675 17.09 5 42 Balbalan 14 Pasil 1 Pinukpuk 11 Tabuk 1 Conner 15

5 Lubuagan 72,924 16.04 6 50 Bontoc 1 Sadanga 5 Balbalan 1 Lubuagan 9 Pasil 14 Tinglayan 20

6 Bontoc 41,188 9.06 8 23 Barlig 3 Bontoc 12 Sadanga 3 Banaue 1 Hungduan 1 Lubuagan 1 Tanudan 1 Tinglayan 1

7 Barlig-Tanudan 35,586 7.83 6 21 Barlig 7 Bontoc 1 Natonin 1 Banaue 1

10 INREM-PPTA, 2009.

Appendix 1

100

Tabuk 1 Tanudan 10

8 Bauko 30,111 6.62 6 54 Bauko 15 Bontoc 3 Sabangan 15 Sagada 19 Hungduan 1 Tinoc 1

8 TOTAL 454,553 100.00 45/20 259

71. The peripheral areas of Abra were tentatively deleted since the geopolitical boundaries within the river basin were at the time contentious. Benguet though with minimal land area covered, was included under the Global Environmental Facility (GEF), though not reflected in the loan component of INREMP, as it is contiguous with the shared headwaters of the Chico River Basin and the Agno River Basin. In the end, Cagayan Province of Region II was likewise excluded as the very concept of INREMP is to work more intensely in upper river basins, Cagayan being located much more downstream of the river basin.

72. Thus a total of five provinces (Apayao, Benguet, Ifugao, Kalinga, Mt. Province) are included, all from CAR, specifically covering 20 municipalities (note double counting in Table 3 as a result of municipalities that straddle more than one SWS) and 259 barangays.

73. Population density within the river basin is computed at 84 persons per km2 considered relatively low as the 2007 national figure is 258 persons per km2. Poverty incidence ranges from a low of 11.1% in Benguet to a high of 63.1% in Apayao, much higher than the 2006 national figure of 32.9%. Indigenous peoples (IP) abound within the river basin, estimated at 95%. These IPs generally are characterized as homogenous and dominant within the socioeconomic and political landscape.

3. Biophysical Characteristics of Project Area

74. Climate and Rainfall. The Chico River basin has two types of climate based on the modified Coronas’ classification of climate for the Philippines. The headwaters in Mt. Province and the southwestern part of the Kalinga area have Type I Climate. The remaining parts of the watershed are Type II. Type I climate has two pronounced seasons, namely dry from November to April and wet for the rest of the year while for Type II climate, the seasons are not very pronounced; relatively dry from November to April and wet for the rest of the year. The mean annual rainfall in the area is 2,390 mm and the mean surface run-off is 7,237 million cum11

(mcm). The highest rainfall on record at the DENR for a given year and month is 6,693.7 mm in 1974.

75. Topography and Slope. The terrain on the Mt. Province side ranges from level on its outlet north, gradually rising to high mountains at its headwaters on the south. Slopes on the southern headwaters reach as high as 70 degrees. Elevation range is from 20 meters above sea level (masl), where the river joins Cagayan River to 2,714 masl. Sharp ridges, deep v-shaped gullies and ravines particularly on the southern and central portion of the watershed and its tributaries characterize the river basin.

76. In the province of Kalinga, the topography of the Chico River watershed area is rugged and sloping with mountain peaks ranging from 300 to 2,500 meters above sea level. The feature consist a north-south trending assemblage of mountain chains, which is a prominent regional geographic feature of the Central Cordillera. Sharp crested interlinking peaks and valleys characterize the western part of the province. A peculiar feature in this part is the

11 Master Plan for the Management and Development of the Chico River Watershed (2007)

Appendix 1

101

presence of isolated plateaus and mesas of tuffaceaus rocks. Gradually sloping foothills and rolling terrain characterize the northern portion. Some slopes simulate homoclinal ridges generally trending north-south dipping moderately to the east towards the Cagayan basin.

77. Only about 15% fall under 0-18 degrees and the rest are above 18 degrees, which is 85% of the total watershed area. Under the present land classification, areas up to 18 degrees slope are classified as A&D lands and above 18 degrees as forestlands. The figure indicates limited areas intended for agricultural purposes and the larger portion for forestry and agro-forestry.

78. The combined steep slopes and high topography of the watershed render it vulnerable to soil erosion and landslides aggravated when there are land use changes such as inappropriate kaingin making and road construction.

79. Water Resources. The Chico River Watershed has its headwaters coming from Mt. Data, Bauko, Mt. Province and empties into the Cagayan River. In Mt. Province, the major tributaries include the Bauko/Sabangan River, Betwagan River, Bayudan River, Malanas River, Aguyo River, Agodong River, Malitep River, Tanudan River, Amlosong River and the Talubin River. Main tributaries in the Kalinga Province include the Pasil River, the Tanudan River and the Saltan River.

80. The Chico River is rich with aquatic resources with most of the residents dependent on the river for additional income and sustenance. However, the introduction of exotic species like the Golden Kohol, Gurami and others, disturbed the population of endemic species like mudfish, native snails, etc.

81. This river is the main source of irrigation for all agricultural areas (both wet and dry) along the river. At Mt. Data, competition exists in regard the use of the water coming from a single small source, either for domestic or agricultural use. On the Mountain Province side, not a single tributary has been tapped for its potential as a power source as it is mainly used to supply agricultural lands, both wet and dry. As regards Kalinga, the river basin is the main source of irrigation water for agricultural lands and partly supplies the irrigation needs of the neighboring province of Isabela.

82. Forest and Vegetation Types. A total of 165,524 hectares of forest resources are found in the Chico River Basin. Five vegetative characteristics are noted in the watershed, each occupying a distinct ecozone starting from the riverbanks to the summit of the mountain ranges: (i) Mixed vegetation of grass and scattered shrubs and small or medium sized trees are usually found along or near river/stream banks and on grass ecosystems; (ii) A belt of forest dominated by Benguet pine, between elevations 1,000 to 2,200 masl; (iii) Mixed dipterocarp forests usually are found in the low-lying areas of Kalinga and Apayao, although some are found in Mountain Province, particularly along Tanudan River; (iv) Mossy forests extending from the upper limits of the pine formation to the mountaintops, which have not been invaded by the pine forests; and (v) Grasslands, interspersed in the open canopy pine forests or appearing as islands between forests. Grasslands found in the mossy forests are dominated by the dwarf bamboo (Yushania niitakayamensus).

83. The present vegetative cover found in the province, particularly Benguet Pine indicates that most of the pine forest areas are second growth and even aged. These are either established plantations or natural regeneration on logged over areas. These natural regeneration areas are slowly being converted into vegetable gardens as has happened to the mossy forests, particularly in the southern headwaters. It is estimated that as much as 1,500 hectares of pine and mossy forest in the southern headwaters of the watershed have been converted to vegetable gardens starting from 1960.

Appendix 1

102

84. Biodiversity Assets. There are several faunal species12 within the Chico River Watershed area of which 28 are considered endemic, nine are resident-species, two are migrants, and one insufficiently known. The skeleton of an eagle in Barlig has been verified to be that of a Philippine Eagle, though no sightings of this bird has been made as of the moment. Seven (7) are listed under CITES II13, two under CITES I14, two (2) considered endangered – with a population extinction and whose survival is unlikely if the causal factors continue operating. Several fish species are also found in rivers/creek.

85. The Balbalasang-Balbalan National Park is rich in faunal species such as deer, wild pig, monkey and bats. Other local wildlife includes parrot, owl, kalaw, labuyo, bolog, saysayapat , takka, ugachiw, tiktik, snakes, eels, motit and others. Some wildlife species found at Mt. Data National Park are shack shrike, pygmy wood pecker, red button quail, wild pigeon, Philippine bulbul, and mountain rats. These wildlife are considered endangered and threatened due to hunting by the local residents for food, pet and sold for additional income. The method of hunting are done through indigenous practices such as silo, lasag, balais, bito and other means.

86. Floral species include gymnosperms and other non-dipterocarp species that are dominant in western Mt. Province, while mixed dipterocarp species appear to dominate the eastern and northern part of the watershed. The Balbalasang-Balbalan National Park in Kalinga shows that the area is still thickly forested but there are areas encroached and devoted to kaingin making. Dominant forest species are mossy, dipterocarps and some Benguet Pine stand.

4. Land Tenure and Ancestral Domains

87. Inasmuch as 85% of the total URB area is 18 degrees and above, present land classification in said areas is forestland and only the remaining 15% are considered A&D. Present residential/built-up areas far exceed the official classification and tax declarations are made with respective LGUs.

88. As regards ancestral domains (AD) Certificates for Ancestral Domain Titles (CADT) are issued to IP communities as well as individual land titles in the form of Certificate for Ancestral Land Titles (CALT) in accordance with customary laws of the IP community as espoused in the Indigenous Peoples Rights Act (IPRA) of 1997. In the case of CAR, 95% of the land area are considered as ancestral domains, except Abra Province where 92 % are ancestral domains and Baguio City (there is no application for CADT, but many applications for CALT).15 Table A1.7 shows the distribution of CADCs/CALTs within the river basin as of July 2010 with a total of 239,893 ha or 60 parcels either awarded or under processing. Table A1.8 on the other hand reveal that only seven ADSDPPs have been officially processed/accepted with NCIP as of April 2009. There is a lag in plan formulation.

Table A1.7. Status of Ancestral Domain Processing in INREM URBs Status No Hectares Beneficiaries

AD under social preparation/ boundary conflict 7 66,060.0 - Completed survey (AD/AL) 1 1,672.1 - Approved CADTs 4 55,115.1 64,633.0 AD ready for survey 3 115,896.5 - Approved CALTs 45 1,149.9 642 Total 60 239,893.6 65,275

Source: ADO-NCIP 2009 Note: ADs are partially or wholly within URB.

12 Biological Profile of the Chico River Basin prepared by the Protected Areas and Wildlife Services (PAWS) of the DENR-CAR. 13 Trade of species and sub-species are strictly regulated. 14 Trade strictly prohibited except for educational or scientific research and study purposes. 15 Cordillera Administrative Region Development Plan 2004 – 2010 p. 44

Appendix 1

103

Table A1.8. ADs with ADSDPPs in INREM URBs Location of ADs with

ADSDPPs Tribe Funding Total ADSDPPs in Region Comment

Buguias, Benguet Kankanaey-Ibaloi NAPOCOR 7

Hungduan, Ifugao Tuwali LGU, PANCORDI, OPAPP Tinoc, Ifugao Kalanguya LGU, PANCORDI, OPAPP, ESSC Upper Bauko, Mt. Province Kankanaey NCIP & PAGCOR Bauko not in NCIP list but

ADSDPP draft completed for NCIP review

Kadaclan, Mt. Province Ikacharay ADB/IFAD-CHARMP/DA, LGU Sabangan, Mt. Province Kankanaey ADB/IFAD-CHARMP/DA, LGU Sagada, Mt. Province Kankanaey ADB/IFAD-CHARMP/DA, NCIP

Sources: ADO-NCIP 2009 and INREM Field visits, February – April 2009.

5. Investments, Trade and Indistry Within the URB

89. Infrastructure. The Halsema Highway is the main access to the river basin from Baguio City going to the provinces of Ifugao and Mt. Province. On the other hand, on the northeastern side of the basin, the Maharlika Highway provides access to Kalinga, Apayao and Cagayan. Of the total national and provincial road network within the river basin, only about 15% is paved with either concrete or asphalt, while 55% is gravel and the rest are earth roads. Majority of those classified as barangay and farm to market roads are unpaved and are impassable during rainy season.

90. There are about 74,250 hectares of potential agricultural areas for irrigation in the Chico River Basin of which only 37% are irrigated largely serviced by the communal type of irrigation facilities (71%).

91. Agriculture. CAR has a strong agro-ecological advantage in the production of highland vegetables like cabbage, white potato, pechay, carrot, and cauliflower accounting for 50%-90% of the national production in 2004. In terms of area, 62% is used for paddy, the number one crop produced in CAR in terms of its volume, and 9% are for vegetables. While paddy accounted for the largest production volume among crops and vegetables in CAR, its share accounted for only 2.5% of national paddy production in 2004.

92. In 2003, agriculture still accounted for 58% of total employment in CAR, as well as fulfilling subsistence requirements of the rural community. Agriculture development initiatives in CAR focus on strengthening of the existing vegetable production sub-sector. Other high value items such as cutflowers, forest products and organic products are gaining ground.

93. Livestock production in the region consists mostly of backyard operations involving a few heads of assorted animals such as hogs, cattle, carabao, goats and poultry, providing a ready source of cash for farmers. Fish production in the region takes the forms of inland and aquaculture fishing, which accounted for 0.6% and 0.1% of national production respectively in 2004.16

94. Mining. Mountain Province is endowed with the mineral resources such as gold and copper ores extracted through small scale mining and sand and gravel quarrying. Mineralization is confined along the western part of the province. The volume of deposits cannot be quantified since no actual drilling has ever been conducted. Kalinga has vast potentials of mineral deposits still untapped. It has been extensively prospected for gold, copper, and other important metallic and non-metallic minerals.

95. Tourism. Chico River Watershed is a land of natural charm blessed with numerous tourist attractions, both natural and man-made. Many of these were validated and documented as potential tourist attractions including the festivals and events that are regularly conducted in the area as part of the tourism industry. In support to these tourism activities and in response to the

16 Ibid.

Appendix 1

104

need of the positively increasing number of tourists arriving in the area, private sectors established accommodations and transport facilities although majority are located in Tabuk and Bontoc. Homestays are also available and maybe arranged in select municipalities.

96. The most promising and recent eco-tourism attraction in the area is the white water rafting in Kalinga, managed by a private entity. The hanging coffins and caves in Sagada, Mt. Province is still a primary tourist attraction in the watershed.

C. Wahig-Inabanga River Basin


97. The Wahig-Inabanga is located between 123°43’0” and 124°37’0” East longitude, and between 9°33’0” to 10°12’0” North latitude. On September 26, 1994 it was proclaimed as a Watershed Reservation under Proclamation No. 468. It is characterized with level to moderately rolling agricultural lands and rolling to mountainous timberlands and a coastal influenced area of 31,325 ha. From the Northwest bay of the island, the river basin dissects the central part of the Island, embracing a total land area of 628 km2 or 15.3% of the total land area of the Province.

98. Wahig-Inabanga has been considered as the largest and most important river within Region VII due to its high potentials as source of surface water for agricultural, household, commercial, industrial and recreational uses, its significant physical features and biological resources, and its strategic location. It encompasses the large agricultural valley within the municipalities of Sierra Bullones, Pilar, Dagohoy and San Miquel. The National Irrigation Administration (NIA) in the Municipality of Pilar constructed an irrigation dam to service about 5,000 ha of agricultural lands17.

99. The river originates from the municipalities of Sierra Bullones and Pilar and empties into the municipality of Inabanga discharging a daily average of 1.975 million cum of water into the Cebu Strait that separates the Islands of Bohol and Cebu. This volume is enough to supply the domestic daily needs of about 637,097 households18.

100. Some of the issues and concerns prevailing in the area are19: a) human settlement and land cultivation; b) forest and grass fire; c) illegal timber cutting; d) unclear resource use rights; e) sustainability of the watershed; f) lack of or inadequate technical/financial assistance on farmers re: agroforestry and other livelihood system; g) access to credit or financial services and social and health services; and h) provision of all-weather farm to market roads.

2. URB Coverage: Area, Geopolitical and Demographic Characteristics

101. The river basin is composed of four watersheds, namely: Wahig-Pamacsalan with an area of 138.89 km2, Inabanga with 139.28 km2, Dagohoy with 216.37 km2 and Danao, 133.39 km2 (Table A1.9). It is the smallest river basin under INREMP. The river basin traverses 15 municipalities that comprise around 130 barangays with a potential 22,366 beneficiary households and land coverage of 628 km2 ha covering about 15% of the Province in terms of land area. Population density within the river basin is 222 persons per km2, much lower than the provincial population density of 299 persons per km2.

Table A1.9. Sub-Watersheds and Coverage within the Wahig-Inabanga River Basin No SWS Area (km2) % From Total URB Municipalities No of Barangays

1 Wahig-Pamaksalan 138.89 22 5 36 Duero 1

17 Management Plan for Wahig-Inabanga Watershed, Province of Bohol. 2000. 18 Based on recorded family domestic water consumption of 3.1 cum/day 19 Op cit

Appendix 1

105

No SWS Area (km2) % From Total URB Municipalities No of Barangays G. Hernandez 1 Jagna 1 Pilar 13 Sierra Bullones 20

2 Danao 133.39 21 5 18 Buenavista 5 Danao 10 San Miguel 1 Trinidad 1 Talibon 1

3 Dagohoy 216.37 35 7 32 Carmen 2 Dagohoy 15 Danao 2 Pilar 5 San Miguel 2 Sierra Bullones 3 Ubay 3

4 Inabanga 139.28 22 4 44 Carmen 2 Danao 5 Inabanga 30 Sagbayan 7

4 TOTALS 627.93 100 21/15* 130 * Avoided double counting of covered municipalities and barangays.

102. The river basin has a computed poverty incidence of 46.9%, which is much higher than the national 32.9%. Within the province, the top five poorest municipalities include Danao, Buenavista, and Ubay that are covered under INREM.20


103. Topography and Slope. The elevation of the watershed ranges from 0 at the coastal area to 860 masl at the headwaters in Sierra Bullones. About 53% of the area have slopes of less than 18% (flat to rolling) while 12% have 18-30% slope (steep) and 35% have over 30% slope (very steep to critical slope). Of the areas classified as forest lands, 12% have slopes of less than 18%, while 88% have slopes of 18% or higher. For A & D lands, 73% have 0-18% slope while 27% have slope over 18%. It may be noted that 12,000 ha of cultivated area planted to annual crops constituting 19% of the total basin area are located in slopes of over 30%.

104. Climate and Rainfall. The area falls under the 4th climatic type (Coronas), where rainfall is more or less evenly distributed throughout the year. Rainfall is deemed more than sufficient to meet the moisture requirement of most plants. The annual average rainfall is 4,598 mm (4,614 mm in Pilar, 6,485 mm in Dagohoy, and 2,682 mm in Danao). The monthly average is 383 mm while daily average is 12.6 mm.

105. Land Use and Land Classification. Out of the 62,793 ha of basin area, 20,227 ha or 32% have been classified as forestland, while 42,566 ha or 68% are A&D lands. Of the 20,227 ha of forest land, only 5,880 ha or 29% are with forest cover, 9,171 ha or 45% are cultivated and planted to annual crops, 11% are grassland, 10% have shrubs and the remainder have perennial crops or wooded grassland. On the other hand, of the 42,566 ha of A & D lands, 2,919 ha or 7% are with forest cover, 35,999 ha or 85% are cultivated and planted to annual crops, 1,242 ha or 3% are cultivated and planted to perennial crops and the remaining 5% have either shrubs or wooded grassland.

20 2003 City and Municipal Level Poverty Estimates

Appendix 1

106

106. The river basin has only 14% forest cover or 8,799 ha out of 62,793 ha, of which 67% are legally classified forestlands and 33% are A & D lands. The forest cover is composed of 4,164 ha or 47% open canopy forest, 4,280 ha or 49% plantation forest and 355 ha or 4% mangrove. It is interesting to note that of the total plantation forests, 53% are in A & D lands.

107. Water Resources. The whole watershed has a nine order stream which has a total of 712 streams. The total stream length of subcatchments is 657.5 km. with an average length of 0.92 km. The Inabanga subcatchment has the longest stream length with 160 km while Mas-ing River subcatchment has the shortest with 47.5 km. The average discharge of tributaries range from as low as 36,146 m3/day in Sagnap to as high as 203,564 m3/day in Malitbog. Based on the water quality standards for surface freshwater, the discharge of major streams inside the Watershed are considered suitable for domestic, irrigation and industrial uses.

108. The Municipality of Inabanga has approximately 20 km of coastline from Tubigon to the Baluarte River mouth in northwest Bohol. Only a strip of mangroves are found along the estuary of Inabanga and along this strip are areas which have been converted into aquaculture ponds and utilized by the locals for nipa plantation and harvesting. The intertidal zone is characterized predominantly of mudflats with a high density of fish pens and islands with mangroves, rocky outcrops and coral reefs. The marine benthic community is characterized by a diverse yet disturbed reef affected by several factors: siltation, fishing activities of adjacent reef and a possible outbreak of crown-of-thorns. The extent of siltation in Inabanga River is observed in almost all coastal barangays. Sediments have covered the vast shallow reef flat area. In general, all sites are under the category of fair coral cover having a good potential for resource rehabilitation if properly managed.

109. The Inabanga estuary provides productive habitat for invertebrates, fish, and birds including endangered species as well as spawning and nursery grounds for many species of fish, supports seagrass vegetation, shellfish beds, and nesting grounds for a variety of birds. Presently, it is also subjected to intense pressures (with the presence of fish pens, oyster farms and fish ponds), recreational uses (bathing), and non-point source pollution (laundry) from changing and intensifying land uses.

110. Tree Species/Vegetation. Wahig-Inabanga River Basin is almost all farmlands with patches of grasslands, thickets and secondary forests save for some hilly areas. On the hilly portion as well as flat lands are small patches of coconut plantations where in some cases small trees, brushes and weeds are left to grow among the coconuts. Other areas such as along feeder roads, boundaries of adjoining properties, and land not being used for planting short-term crops such as rice and corn are planted to fast growing species like Gmelina arborea, Acacia mangium, Acacia auriculiformis.

111. Biodiversity Assets. The watershed contains about 14%21 of the Rajah Sikatuna Protected Landscape, one of the priority sites for conservation in the Philippines (KBA 92). In a factsheet prepared by Bird International (2009), it is reported that this protected landscape has most of the significant forest of Bohol and characterized by rolling hills with remnant natural forest on steep limestone terrain surrounded by plantation forests, deforested hills and grassland. Among the bird species found in the park are three species endemic to Eastern Visayas: the Samar hornbill (Penelopides samarensis), Visayan hornbill (Penelopides panini), and yellow-breasted tailorbird (Orthotomus samarensis). Furthermore, it is also reported that 10% of the park has been converted to agriculture land. Current threat to the park includes land conversion (kaingin), collection of non-timber forest products, and hunting.

21 Personal Communication with Forester Ven Taer, PENRO, Bohol

Appendix 1

107

4. Land Tenure and Ancestral Domains

112. Tenure. Based on the assessment towards the preparation of the Management Plan, it was established that the modal tenurial system across all Barangays is owner cultivatorship with an aggregate proportion of about 59%. Amortizing owners only account for less than a percent (0.8%). Claimant-cultivators account for roughly 1.6% of the total respondents. Close to 40% of the respondents are either leaseholders or share tenants. In particular, the extent of share tenancy is about 20%.

113. The average size of agricultural landholdings is only about 0.6 ha. The actual values range from as low as less than 500 m2 to 5 ha. Across tenure, the lowest is about 0.4 ha exhibited by amortizing owners and the highest is about 0.7 ha for leaseholders. Farm households in the river basin are generally subsistence farmers. By tenure, owner cultivators, amortizing owners, and claimant cultivators tend to be more subsistent than tenants as the system is more secure. These are the sectors of the community with relatively broader access to resources that they can afford to produce only for home consumption. In contrast, tenants are the tenurial group with very limited opportunities. They have to sell more of their produce in order to generate cash income to pay for the other subsistence requirements of the household.

114. Ancestral Domain. The Eskaya Tribe is the only indigenous community in Bohol and part of its ancestral domain lies within the Wahig-Inabanga river basin reserve. The Ancestral Domain Claim has an area of 3,173 ha, of which 700 ha are A&D land and 2,473 ha are timberland. They were awarded a Certificate of Ancestral Domain Claim (CADC) in 1996 (CADC No. R7-CADC-14) by President Fidel V. Ramos through the DENR prior to institutionalization of NCIP. Certification is still being processed with the NCIP to date. The ancestral domain of the Eskaya tribe is located within the barangays of Biabas, Guindulman, Taytay, Duero, Canta-ob, Sierra Bullones, a portion of San Vicente, Pilar, a portion of Cadapdapan, Candijay, and a portion of Bayong, Pilar. The area already has an approved Ancestral Domain Management Plan (ADMP) based on DENR Administrative Order of 1992 that has to be enhanced based on prescriptions of IPRA (1997). Geographically, it is 9º 45’ 28.4” longitude and 124º 21’ 12.2” latitude.

5. Investments, Trade and Industry Within the URB

115. Infrastructure. The Province has a good network of national, provincial, and municipal roads. All towns or even the farthest are accessible by land transportation. Wahig-Inabanga is linked to the rest of Bohol through the national highway that originates from Tagbilaran and is paved at different segments with concrete and gravel. The highway branches into the river basin and connects all the Municipalities within the river basin reserve. Villages are accessible by barangay roads and trails through motorcycles only, thereby contributing problems in transport of materials, agricultural inputs and outputs during rainy seasons.

116. Two major road sections, Tagbilaran North Road (TNR) and Tagbilaran East Road (TER) are also being improved under the Arterial Road Links Development Project. This would traverse through several municipalities including those within the Wahig – Inabanga River Basin.

117. NIA 2006 data shows that Bohol’s potential irrigable area is about 30,090 hectares with a total service area of 14,388 hectares equivalent to 48% irrigation development rate. The biggest national scheme in the province is the Bohol Irrigation Project (BIP) covering the 6 municipalities of Alicia, Dagohoy, Pilar, San Miguel, Ubay and Trinidad all within the river basin with main source of irrigation water supply from Wahig and Pamacsalan Rivers at the municipality of Sierra Bullones. Aside from BIP, the river basin area also has an existing NIA assisted communal irrigation schemes with an aggregate service area of about 2,363 hectares with

Appendix 1

108

several schemes proposed for rehabilitation and improvement under the NIA development program.

118. In the municipality of Pilar, the Lumbay Hagdanan Irrigators Association has obtained water rights for Bagon-an Creek to be used for communal irrigation system (CIS) in barangay Lumbay. Communal Irrigation Systems are similarly present in other municipalities.

119. About 61% of the province’s total HHs is currently provided with safe drinking water from Levels I, II and III systems. Levels I draw its source from sealed open dug wells while Levels II and III are from natural spring development and deep well sources. However, based on the 1993 Philippine National Standards for Drinking Water, some of the water coming from springs and deep wells are. Cadmium and lead contents of the water far exceed standard values.

120. Agriculture. The most common problem as regards agriculture revolve around the issues of small farm parcels, barren soil, unfavorable climatic conditions, the cost of production inputs, pest and diseases and soil degradation among others. In terms of marketing, the most glaring problem is farm to market roads. The only regular transport towards the inner barangays in the river basin is through the ‘habal-habal’ or motorcycle. Products are damaged during the travel. Low product prices and price fluctuations similarly are identified constraints.

121. Quarrying. It is estimated that 65% of the province is covered with limestone of which Garcia-Hernandez, one of the municipalities within the watershed, has the biggest quarry site.

122. Tourism. Tourism and recreation is alive within the river basin. Recreational activities at present are confined to cave exploration and nature appreciation. The water reservoir in Pilar is a growing attraction to both local and visiting tourists for picnic and boating. It is also known to contain significant natural geological features, such as caves and chocolate-shaped hills that are highly potential for ecotourism attractions. Also, the Watershed still contains significant forests that are productive habitat for a good number of significant wildlife species in the Island, such as the tarsier, flying lemur, fruit bats, tariktik, and others.

D. Upper Bukidon River Basins


123. Bukidnon22 is the only province in Mindanao that does not have a coastline. The whole eastern and southwestern border adjoining Agusan, Davao and Cotabato are lofty mountains and densely forested mountains. The greater part of the province is gently rolling grassland plateau with deep and wide canyons of the Cagayan, Pulangui and Tagoloan Rivers.

124. The Mt. Kitanglad Range lies in between 8°7′42″N and 124°55′30″E. The importance of Mt. Kitanglad extends to neighboring provinces. In terms of watershed, Mt. Kitanglad is the headwater source of several major river systems draining North and Central Mindanao (Pulangi, Manupali, Cagayan and Tagoloan rivers). It is also the homeland of the indigenous peoples (Bukidnon, Higaonon and Talaandig tribes) who recognize Mt. Kitanglad as the wellspring of their tradition. There is high floral and faunal diversity found only in Mt. Kitanglad where 168 birds (62% endemic), 58 families and 185 species of trees and other woody vegetations, 63 mammals (27% endemic) and 57% constitute amphibians and reptiles (about half of it are endemic). Potentials for ecotourism in the Mt. Kitanglad Range Natural Park (MKRNP) is currently being assessed as it is the second highest mountain next to Mt. Apo in Mindanao.23 Although MKRNP is a protected area, it is experiencing severe effects brought about by habitat destruction or loss, decline and loss of wildlife species, reduction of water quality and quantity,

22 Bukidnon Socioeconomic Profile, 2008. 23 Mt. Kitanglad Range Natural Park handout, 2006.

Appendix 1

109

lower agricultural productivity and limited financial resources, agricultural development, and cultural loss of indigenous people (Mirasol, 2003).

125. The Kalatungan Mountain Range is a mountain range located in the central portion of the province of Bukidnon. It is one of the few areas in the province covered with old growth or mossy forests. It covers an area of approximately 213.0134 km² (82.24493 mi²), with about 113.7175 km² (43.90657 mi²) identified as part of the critical watershed area declared under Presidential Decree 127, issued on June 29, 1987 (Muleta-Manupali Watershed). The water from these two rivers (Muleta and Manupali Rivers) is presently supporting the multimillion dam project of the National Irrigation Administration (NIA) of the Philippines. They then ultimately drained into the Pulangi River, which is the site of the hydroelectric dam of the National Power Corporation. The mountain range is located in the central section of the province of Bukidnon. It lies between the coordinates 8°00’ and 8°60’ latitude and between 124°35’ and 124°60’ longitude. It is bounded on the north by the municipality of Talakag, on the west by the municipality of Lantapan and the city of Valencia, and on the south by the municipality of Pangantucan. Its eastern side is bordered by both Talakag and Pangantucan.24

126. Among the issues and concerns are25: a) soil acidity and soil erosion especially in steeply sloping farmlands; b) kaingin farming for high value crop production; c) pest infestation; d) intensive use of chemicals and insecticide in vegetable farming; e) low potability of water supply; f) occasional flash flooding; g) weak enforcement of forestry laws; and h) conflicting laws particularly against tribal customs and traditions.


127. The Upper Bukidnon River Basin under INREMP covers the provinces of Bukidnon and Misamis Oriental, though technically, it extends to North Cotabato at its lower reaches. The headwaters of Upper Bukidnon River Basin is in Mt. Kitanglad Protected Area and drains into several places. Clockwise from the north, it drains to the municipalities of Manolo Fortich, Sumilao, Malaybalay City, Lantapan, Talakag, Baungon, and Libona. The river basin is divided into six SWS (Table A1.10), of which the largest is Sumilao-Manolo Fortich-Malitbog with an area of 1,326 km2 or 28% of the total basin area and the smallest is Kitanglad-Manupali with 510 km2 (11%).

Table A1.10. Sub-Watersheds and Coverage within the Upper Bukidnon River Basins No SWS Area (km2) % from Total URB Municipality No of Barangays

1 Kitanglad-Manupali 509.57 10.6 3 16 Lantapan 14 Talakag 1 Valencia City 1

2 Talakag 650.07 13.5 1 21 Talakag 21

3 Sumilao-MF-Malitbog 1,326.05 27.6 4 32 Impasugong 1 Malitbog 5 Manolo Fortich 16 Sumilao 10

4 Malaybalay-Impasugong 525.85 11.0 4 45 Impasugong 6 Lantapan 5 Malaybalay 33 Valencia City 1

5 Baungon-Libona 948.21 19.8 5 34

24 Community Environment and Natural Resources Office (CENRO)-Malaybalay, Bukidnon (1987). "Assessment on the Vegetative

Cover of Mt. Kalatungan Range". 25 Based on issues and constraints presented in the Watershed Management Plan for Manupali Watershed.

Appendix 1

110

No SWS Area (km2) % from Total URB Municipality No of Barangays Baungon 16 Libona 11 Manolo Fortich 0 Talakag 1 CDO 6

6 Kalatungan-Muleta 838.96 17.5 10 64 Damulog 6 Dangcagan 10 Don Carlos 11 Kadingilan 10 Kitaotao 6 Kibawe 11 Maramag 1 Pangantucan 9

6 TOTAL 4,798.70 100.0 27/19* 212 * Counting of covered municipalities avoided double counts.

128. The river basin covers 19 municipalities and cities and 212 barangays. The total population of the watershed is estimated at 571,739 with population density of 120 persons per km2. There is no estimate of poverty incidence in the river basin. However, for Bukidnon, the poverty incidence in 2006 is 37.2%26.

129. The different indigenous people living within the watershed are Bukidnon, Talaandig, Higaonon, Manobo, and Matigsalog. The indigenous inhabitants around Mt. Kitanglad are known collectively as Bukidnon; but ethnolinguistically identified as Higaonon for those indigenous communities north of Malaybalay down to the province of Misamis Oriental. Southward from Malaybalay, specifically those communities around Lantapan and Talakag they refer to themselves as Talaandig. These two groups speak the Binukid language, which is a northern branch of the Manobo language stock. There are some minor dialectal variations among these communities, especially in the inflections and lexicons.


130. Climate and Rainfall. The northern part falls under the third climatic type, where there is no very pronounced maximum rain period with a short dry season lasting only for one to three months. The southern part, beginning from Malaybalay, falls under the fourth climatic type where there is no very pronounced maximum rain period and no dry seasons. Rains are very frequent, almost daily for the rest of the year. The average annual rainfall is 2,447 mm based from 2003-2007 PAGASA data in Malaybalay. The maximum rainfall occurs during September. The rainy season generally starts in May and lasts until October.

131. Topography and Slope. The elevation of the watershed ranges from 0 masl at the coastal area to 2,900 masl at the headwaters in Mt. Kitanglad. About 32% of the area have slopes of less than 18% (flat to rolling), 19% have 18-30% slope (steep) and 49% have over 30% slope (very steep to critical slope). Of the areas classified as forest lands, 9% have slopes of 0-18%, while 91% have slopes of 18% or higher. For A & D lands, 52% have 0-18% slope while 48% have slopes over 18%. It may be noted that of the total cultivated area planted to annual crops and perennial crops, 60% are in areas with slopes of greater than 30%.

132. Water Resources. The river basin has an estimated 1,725 km of rivers and major tributaries. However, owing to its mountainous area, it has the least of inland waters with only 83 ha. From its headwaters in Mt. Kitanglad National Park, it drains to several municipalities, namely: Manolo Fortich, Sumilao, Malaybalay City, Lantapan, Talakag, Baungon, and Libona. The estimated stream flow ranges from 6.024 m3/sec to as high as 9.099 m3/sec.

26 Philippine Statistical Yearbook 2008.

Appendix 1

111

133. Forest and Vegetation Types. Out of the 479,871 ha of basin area, 221,739 ha or 46% have been classified as forestland, while 258,131 ha or 54% are A&D lands. Of the 221,739 ha of forest land, only 64,779 ha or 29% are with forest cover, 103,884 ha or 47% are cultivated and planted to annual or perennial crops, and the rest are grassland, shrubs or wooded grassland. On the other hand, of the 258,131 ha of A & D lands, 1,148 ha or 0.4% are with forest cover, 222,812 ha or 86% are cultivated and planted to annual or perennial crops, and the rest are shrubs, grassland, wooded grassland or built-up areas.

134. The River Basin has few remaining forest as a result of wanton logging activities in the early 60s up to early 80s. The remaining forest cover is mostly in Mt. Kitanglad and Mt. Kalatungan. At the lower portion of Mt. Kitanglad are minor forest species and residual dipterocarp forest. Plant families include Fabacae, Lauraceae, Myrtaceae, Podocarpaceae, and Clusiaceae.

135. Biodiversity Assets. The river basin includes Mt. Kitanglad Range Natural Park (MKNRP) which has a unique and immense natural diversity of its flora and fauna and contributes to national heritage27. Consequently, it is a priority area for biodiversity conservation of the Philippines (KBA 106). Among the wild life species in this park are the Mindanao Lorikeet, Mindanao Racquet-tail, Mindanao Scops-owl, Slaty-backed Jungle-flycatcher, Red-eared Parrotfinch, Apo Myna, Philippine Duck, Philippine Eagle, Philippine Hawk-eagle, Mindanao Brown-dove, Spotted Imperial-pigeon, Giant Scops-owl, Philippine Eagle-owl, Blue-capped Kingfisher, Mindanao Broadbill, Shrew Mice, Kaguang, Monkeys, Philippine Pygmy Squirrel, Mindanao Flying Squirrel, Bearded Pig, Philippine Deer and Philippine Leafbird.

136. Minerals Resources. The area is underlained by Quarternary volcanic flows and pyroclastic materials. The volcanic flows are andesitic to basaltic in composition. Chemicals have been observed within this rock suite to include pyrite (FeS4) and Chalcopythe (Cu2 Fe2), and ore or copper, sphalrite and zinc. DENR data show that there are no mining claims on record.

4. Ancestral Domains

137. Table A1.11 shows that of the four INREMP sites, Bukidnon has the largest area (738,628.00 ha) with ADs partially or wholly covered by the Project.

Table A1.11. Ancestral Domains within the Upper Bukidnon River Basins Status No Hectares Beneficiaries

AD under social preparation/ boundary conflict 4 33,514.50 41,448 Completed survey (AD/AL) 5 539,279.90 - Approved CADTs 7 146,067.10 18,611 AD ready for survey 2 17,893.50 - Approved CALTs 4 1,872.90 1,679 Total 22 738,628.00 61,738

138. Conflicting Claims for Ancestral Domain. At present, there are three prominent stakeholders within Mount Kitanglad. The immediate and culturally important stakeholders are the Hiagaonon-Talaandig tribe, who are the indigenous cultural communities collectively referred to as the Bukidnons. The various municipal governments and the dumagats constitute the second set of stakeholders. Mt. Kitanglad is geopolitically connected to eight municipalities surrounding it, namely: Malaybalay, Lantapan, Talakag, Baungon, Libona, Manolo Fortich,

27 Office of the Protected Area Superintendent, Mount Kitanglad Range Natural Park, DENR,

www.philcom.ph/gov/kitanglad/index.html, Accessed 28 June 2009.

Appendix 1

112

Sumilao, and Impasugong. The DENR represented by its regional units, is the third major stakeholder. Since being declared as a protected area, Mt. Kitanglad is currently managed by the Protected Area Management Board (PAMB) with the DENR and the LGU representatives playing significant roles. Because of the various stakeholders and multiple policies governing Mt. Kitanglad, there emerged two competing models for proposing an ancestral domain claim application in the area. The first model is called the “Unified Claim” with the prominent leaders of theTalaandig-Higaonon tribe as proponents. The second model is “by municipal claim” proposed by the municipal mayors who are members of the PAMB.

139. Unified Claim. Prior to 1995, twelve (12) Higaonon-Talaandig tribes individually filed a Certificate of Ancestral Domain Claim (CADC) with the Provincial Environment and Natural Resources Office (PENRO) of Bukidnon. However, the processing of the individual claims was delayed due to overlapping boundaries. To resolve the issue and simplify the application process, the concerned tribal leaders held a consultative meeting and decided to unify their claims by submitting only one application covering the entire Mt. Kitanglad Range Natural Park. In simple terms, the “unified claim” implies a collective CADC application of multiple claimants. The Higaonon-Talaandig Tribe submitted the unified ancestral domain claim to the PENRO of Bukidnon on May 17, 1995, following the guidelines set forth by DAO 3-93. Consequently, the unified claim covered a total land area of over 40,000 hectares, which included the entire Mt. Kitanglad.

140. The tribal elders in Mt. Kitanglad consider the ‘unified claim’ as a cultural claim. The elders averred that the cultural integrity of the tribe is centered on granting them security of tenure over the land they consider as their ‘source of livelihood, place of worship, and their living pharmacy’. While there are sub-groups among the tribes, they affirm that their common language, history and ancestry bind them together. They contend subdividing their claims according to municipal boundaries is tantamount to ‘dividing their culture, their oral history, their spiritual beliefs, and their cultural integrity’.

141. Municipal Claim. Under NIPAS Law, the PAMB is the policy and management body within a protected area. Eight PAMB members who are the current mayors of the municipalities surrounding Mt. Kitanglad are against the ‘unified claim’ because they want the ancestral claim to be done by municipality. The alternative to the Unified Claim proposes that indigenous cultural community members can individually or collectively apply for CADC provided that the land area claimed is not already titled to private individuals and within the boundary of the municipality they reside. Municipal mayors are apprehensive that the selected IP leader under the ‘unified claim’ would consequently exercise political jurisdiction of large areas of the affected municipalities. Tribal leaders contend that a unified claim would provide an opportunity to subscribe to a unified policy of sound environmental management and non-destructive livelihood as may be specified in both the protected area and ADSDPPs. Lastly, local chief executives believe that the indigenous cultural communities do not possess the capability and resources to administer a vast land area with diverse natural resources.

5. Investments, Trade and Industry Within the URB

142. Infrastructure. The provinces of Bukidnon and Misamis Oriental have extensive road connections via the national highway from any point in Mindanao and could be reached using all modes of land transportation. About 57% of the national road in Bukidnon is paved with either concrete or asphalt and the rest is gravel surface. Provincial road is only 3% paved and 97% gravel, municipal roads 11% paved, 57% gravel and 32% earth while barangay roads are mostly gravel and about 60% earth.

143. As of December 2006, estimated total irrigable area of the province is 87,700 hectares and the total service area is 31,328 hectares equivalent to an irrigation development rate of

Appendix 1

113

36%. Within the river basin, the existing area under the communal scheme is about 2,180 hectares. The bigger area developed under irrigation covering the basin municipalities are those that are under the Pulangui and Manupali RIS with a combined service area of about 14,941 ha.

144. Agriculture. Agriculture is the primary source of livelihood of the people in the basin with 64% of its area cultivated and planted to annual crops in addition to 6% that is planted to perennial crops. Corn, palay and sugar are the three major crops produced although banana, pineapple, coffee, cassava, rubber and abaca are also produced in commercial quantity. Due to its unique agroecological characteristics quite similar o the Chico URB, Bukidnon is also engaged in the production of priority and high value vegetable crops, such as asparagus, lettuce, broccoli, and cauliflower. The province registered 1,355 farms with 5.66 million animal heads in 2006. The establishment and operations of multi-national fruit plantations such as DOLE Philippines, Inc. Mt. Kitanglad Agri-ventures, Inc. (MKAVI), Celebrate Life and Antonio M. Soriano (AMS) group of companies also provide the impetus for economic development.

145. Tourism. Mt. Kitanglad has been regarded as one of the favorite trekking destinations by local and foreign mountain enthusiasts. Records show that at least 1,400 individual visit the park per year, of which 6% are foreigners. Nature trekking, camping, birdwatching, educational tour and nature photography are among the existing ecotourism activities usually undertaken by the visitors within the park. Complimentary to these activities (and planned for the future) are butterfly garden/boardwalk, caving, canopy and waterfall adventure, rock climbing, botanical gardens, horse trail riding, mountain biking, wildlife rescue station and medico-ecotourism. Another tourist attraction is the so-called Asia’s longest Dual Cable Zipline housed at the Dahilayan Adventure Park in Manolo Fortich, Bukidnon. Total length of cables is 2,460 meters and elevation drop is 100 meters with estimated speed ranging from 60-100 kph.

146. A main tourism event within the province is the Kaamulan, a festival by tribal groups who trek down from their traditional mountain dwellings to gather in unity, wearing their intricately woven costumes studded with trinkets, anklets, earrings, necklaces, leg lets, headdresses and amulets. The hill tribe’s members dance, chat, compete in indigenous sports and perform ancient rituals. Each activity is a meaningful ceremony that reflects the richness and diversity of their culture.

E. Lake Lanao Watersheds


147. Lake Lanao28 is located in the province of Lanao del Sur of the Autonomous Region of Muslim Mindanao (ARMM). It is a proclaimed watershed reserve by virtue of Proclamation No.871 issued on February 26, 1992 and is included in the initial components of the National Protected Areas System (NIPAS) governed under NIPAS Act of 1992 (Republic Act No. 7586). ARMM was created in August 1, 1989 by virtue of Republic Act No. 6734 or known as the Organic Act of Autonomous Region of Muslim Mindanao. The province is located south of Lanao del Norte province. On the east is Bukidnon province, and on the south, the provinces of Maguindanao and North Cotabato. To the southwest is Illana Bay, part of the Moro Gulf.

148. Lake Lanao is the largest lake in Mindanao, the second largest in the Philippines and is considered as one of the 15 ancient lakes in the world29. It has five watersheds with rivers and major tributaries totaling 431 km. The waters from these rivers and tributaries drain into the lake and goes out through only one outlet, the Agus River in Lanao del Norte that flows southwest into Iligan Bay via two channels; Maria Cristina Falls, the largest waterfall in the country and

28 Lanao del Sur Socioeconomic Profile, 2007. 29 Samira Gutoc. http/www/maranao.org

Appendix 1

114

Linamon Falls. The total area of its inland water is 336 ha. Lake Lanao has a surface area of about 36,300 ha.

149. A hydroelectric plant installed along Lanao Lake and Agus River generates 70% of the electricity used by the people of Mindanao. Agus River supports seven (7) hydroelectric power plants of the National Power Corporation (NPC) with a combined capacity of 727 megawatts.

150. Among the issues and concerns in this river basin are30: a) changes in climatological conditions as manifested by i) rainfall irregularity, intensity and erosivity; and ii) reduction in annual rainfall and rainy days; b) land degradation attributed to: i) slope and terrain of watershed; ii) dislocation of timberlands in flatlands and A &D lands in slopes above 18%; iii) deforestation; iv) agricultural activities encroachment into fragile ecosystems; and iv) sand and gravel quarrying that is encroaching critical zones; and c) water utilization as exhibited by: i) lake has lot of water for electric generation while most localities in the lake area do not have water for drinking or irrigation; ii) most agricultural areas are rainfed; iii) serious siltation of the littoral zones of Lake Lanao; iv) overdrawing of water from the lake; and v) unutilized aquifer in Lumba-a Bayabo.


151. Lake Lanao, with an area of 36,274 ha, is the second largest lake in the Philippines. Its water comes from five (5) watersheds around it. These are (Table A1.12): Taraka-Gata with an area of about 548 km2 or 39% of the basin area, Malaig with 354 km2 (25%), Bubong with 195 km2 (14%), West with 175 km2 (12%) and Saguiaran-Marawi with 141 km2 (10%) for a total river basin area of 1,413.39 km2. Its outlet, Agus River, with a total length of 36.5 km, cuts across the municipalities of Saguiran, Pantar and Baloi and drains into Iligan Bay. The river basin covers 27 municipalities and city and 731 barangays.

152. The total population of the watershed is estimated at 720,649 or an average density of 510 persons per km2. There is no estimate of poverty incidence in the river basin. However, for Lanao del Sur, the poverty incidence in 2006 is 58.5%31. It is the most populated INREMP site though only third in terms of land area. Clustering of settlements is most discernible around the lake.

Table A1.12. Sub-Watersheds and Coverage within the Lake Lanao River Basin

No SWS Area (km2) % From Total URB Municipality No of Barangays

1 Bubong 195.46 13.83 6 89 Bubong 31 Ditsaan Ramain 34 Maguing 4 Marawi City 12 Mulondo 7 Taraka 1

2 Malaig 354.03 25.05 7 87 Bayang 7

Butig 16 Lumba-Bayabao 6 Lumbatan 15 Lumbayanague 22 Masiu 19 S. Dumalondong 2

3 Taraka Gata 547.89 38.76 7 199 Lumba-Bayabao 32 Maguing 29

30 Integrated Development Plan: Lake Lanao-Agus River Watershed and its Environs 31 Philippine Statistical Yearbook 2008

Appendix 1

115

No SWS Area (km2) % From Total URB Municipality No of Barangays

Masiu 9 Mulondo 18 Poona Bayabao 25 Tamparan 43 Taraka 43

4 Saguiaran-Marawi 141.05 9.98 3 153 Saguiaran 30 Marawi City 86 Piagapo 37

5 West 174.96 12.38 11 203 Bacolod Grande 25 Balindong 34 Bayang 14 Binidayan 16 Ganassi 16 Madalum 37 Madamba 13 Marantao 15 Pagayawan 3 Pualas 13 Tugaya 17

5 TOTALS 1,413.39 100 34/27* 731 * Counting of covered municipalities avoided double counts.

153. Although only 21% of the area is cultivated and planted to annual crops, agriculture remains the primary source of livelihood of the people. Rice, corn, coconut, root crops and vegetables are cultivated but the agricultural production is not sufficient to meet the need of the province. This is due to inadequate irrigation, inefficient farming methods, poor agricultural facilities and post-harvest facilities. Other sources of income include handicrafts and timber harvesting activities.

154. The Maranaos and External Relations. The indigenous peoples in the river basin are the Maranaos, with pockets of Higaonon, Kolibugan and Iranon. Together, they constitute about 91% of the population of the province of Lanao del Sur. To many Filipinos, Mindanao is noted for its Muslim secessionist movements and the so-called Mindanao problem. But unknown to many, inter-marriage has found its way among the two major groups in Mindanao which had a long history of prejudice and conflict - the Muslims and the Christians.32

155. The Maranao has to contend with layers of identity: tribal culture with attendant parochial characteristics; identification with Bangsamoroness and struggle for self-determination; passport affiliation as part of being Filipino;and part of the global Ummah. Any of these identities can clash manifested in dilemmas such as: to use taritib or court system when dealing with murder or rido; choosing to get married to mestizo or pure-bred Maranao. Solutions are being provided in part on, “Towards a Culture of Peace.” Ongoing initiatives are directed towards: a culture of dialogue that fosters interfaith and inter-tribal communications; a culture of life that denounces killing as if one kills the whole of humanity; and Tawheed, or submission to the will of Allah.33


156. Climate and Rainfall. The basin area falls under the 4th climatic type (Corona’s Classification) where there are no pronounced dry or wet seasons. The area is outside the typhoon belt. The average annual rainfall is about 2,440 mm. The highest recorded annual rainfall is 5,235 mm at Lumba-Bayabo station in 1992.

32 Myrma Jean Aban Mendoza. "Ethnic Identity Among Marginal Maranaos in Iligan City." 21 October 2004. 33 Samira Ali Gutoc. Critique Of The Meranao Peace Module. Undated.

Appendix 1

116

157. Topography and Slope. The elevation of the river basin ranges from 700 m at Lake Lanao to 2,600 masl in the municipalities of Lumba-Bayabao. An estimated 62% of the total area have slopes of 0-18% (flat to rolling), 22% have 18-30% slope (steep) and 16% have over 30% slope (very steep to critical slope). Of the areas classified as forest lands, 54% have slopes of 0-18%, while 46% have slopes of 18% or higher. For A & D lands, 83% have 0-18% slope while 17% have slopes over 18%. Of the total cultivated area planted to annual crops and perennial crops, only 4% are in areas with slopes of greater than 30%.

158. Forest and Vegetation Types. Out of the 141,000 ha of basin area, 102,088 ha or 72% have been classified as forestland, while 39,251 ha or 28% are A&D lands. Of the 102,088 ha of forest land, 78,826 ha or 77% are with forest cover, while the remaining 23% are distributed among other land uses such as built-up area, annual and perennial crops, shrubs and grasslands.

159. On the other hand, of the 39,251 ha of A&D lands, 2,186 ha or 6% are with forest cover, 37,065 ha or 94% are currently under other land uses, most of which are cultivated and planted to annual or perennial crops, and the rest are shrubs, grassland, wooded grassland or built-up areas. About 81,012 ha or 58% of the basin have forest cover, of which 97% are legally classified forest lands and 3% are A&D lands. The forest cover is composed of 46,220 ha or 57% closed canopy forest, 34,792 ha or 43% open canopy forest.

160. Based on the Lake Lanao Integrated Development Plan, there exist about 40,000 ha of old growth dipterocarp forests, 35,000 ha of residual dipterocarp forests, 5,500 ha of sub-marginal forests and 2,200 ha of mossy forests in the watersheds. There are also some 1,300 ha of residual dipterocarp forests within A&D areas. The old growth dipterocarp forest is composed of 44% common hardwoods, 40% construction and furniture wood, and 16% other species. Among the common hardwoods are Almon (Shorea almon), Bagtikan (Parashorea plicata) Kalunti (Shorea kalunti), Mayapis (Shorea squamata), Nato (Palaqium luzoniensis), Red lauan (Shorea negrosensis), Tanguile (Shorea philippinensis) and White lauan (Pentacme contorta). The furniture and construction wood species are Apitong (Dipterocarpus grandiflorus), Bangkal (Antocephalus cadamba), Batikuling (Litsea leytensis), Bolong-eta (Diospyrus pilosanthera), Dalingdingan (Hopea foxworthii), Ipil (Instia bijuga), Kalumpit (Terminalia microcarpa), Kamagong (Diospyrus philippinensis) and Katmon (Dillenia philippinensis).

161. Biodiversity Assets. Lake Lanao Watershed is an important biodiversity site in the Philippines that is of global significance and is therefore one of the priority sites for conservation (KBA 109). The lake is home to 18 endemic species of freshwater fish and supports a large number of waterfowls. Among other species, the lake is home to the native cyprinids consisting of 20 species of the genus Barbodes and several genera – Mandibularca, Spratellicypris, Cepahlokompsus and Capatulus. These species are accordingly under threat by the introduction of predatory marine species such as white goby. Though the watershed does not have a good baseline data for biodiversity, it was reported that in two barangays that were surveyed during the preparation of the Integrated Development Plan of the Watershed, 27 species of trees, shrubs, and vines were observed while 41 medicinal plant species were recorded. Likewise, available information also shows that there are six (6) bird species in the watershed. Among them are the Halikyon chloris (white collared kingfisher), Corvus enea (slender bird crow), and the Dubulens ibis coromandus (cattle egret).

162. Mineral Resources. Metallic minerals are mostly found along the boundary of the watershed with Lanao del Norte and North Cotabato. These include copper, gold, chromium, manganese and silver. Non-metallic minerals are found in the North-eastern side of the watershed. These are clay, gypsum, phosphate, bentonite sand, gravel and feldspar.

Appendix 1

117

4. Land Tenure

163. For lack of tenure data within INREMP sites, a case study was conducted in two municipalities of the Lake Lanao River Basin. Based on interviews34, the following were determined as regards land ownership and farming:

(i) Most of the attendees do not own the land, which they are farming but are instead renting. The rent per hectare is equivalent to 30% of the harvest or about 14 sacks of palay (paddy rice) on the average per harvest. They do not earn much from farming but they engage in it since in the absence of a more financially rewarding alternative. Even if they want to get into business, they do not have the needed capital. They usually avail of loan from loan sharks outside of the community although there are also money-lenders within the community. Even if they know that what the loan sharks are doing is a sin, they still borrow money because if not they will go hungry. Sometimes, the lenders are also Maranaoans. Although there are government banks providing loan, they are not able to avail of it because they cannot meet the bank requirements.

(ii) Most of them take out loans for farm inputs such as fertilizer. They usually take out a loan equivalent to P10,000 per hectare of the land they farm. Of that amount, P3,000 is spent for land preparation. Payment terms would be in the form of palay. For example, if a farmer borrows two thousand, that amount is paid back with 10 bags of palay with each bag costing at least P500 if the palay is dry.

(iii) The cost of fertilizer is: P1,050 for 14-14; P1,100 for Urea; and P600 for 21-00. They use 8 bags of fertilizer per hectare in irrigated land. If hybrid fertilizer is used 20 kilos is needed. Each 40 kg-bag of hybrid fertilizer costs P800.

(iv) Land is not enough for the farmers. To compensate for the size of the farms, the participants suggested to INREMP to provide them with farm inputs, including farm machineries, carabaos, and fertilizers. With additional inputs, they estimated that they could increase the yield from 50 sacks to 200 sacks per ha.

(v) The yield per hectare if hybrid fertilizer is used is 80 bags while a non-hybrid fertilizer will have a yield of 60 bags.

(vi) The farmers commonly grow rice, which yields them 50 sacks or 40 kilos per harvest. Thirty percent of their harvest goes to the rent for the land that they are farming. A sack of palay is valued at P350 during rainy season and P500 during dry season. What they earn from farming is not even enough to pay the debts they have incurred. Most of the time, there is no profit left for them after harvesting.

5. Infrastructure Investments Within the URB

164. Entry to the province is via the concrete paved national highway from Cotabato City or Iligan City. All municipalities within the province are accessible during all weather condition by any means of land transportation. Within the river basin, the national road is about 122 kilometers, majority of which is the Lake Lanao circumferential road connecting all the lakeshore municipalities. Provincial road within the basin is about 374 km and municipal road is 344 km. Of these total road length, 71 km are paved, 290 km gravel and 479 km are classified as earth road.

165. The potential irrigable area within the basin is 15,116 ha with 9,300 classified as national scheme and 5,816 ha as communal. Irrigated area within the basin to date is about 6,320 ha equivalent to a development rate of 41.8%. Of these existing area, the 3,000 ha under Rugnan RIS and 1,200 under Masiu IS are undergoing rehabilitation works under the ADB funded

34 PPTA fielding in Bubong, Lanao del Sur on 8 April 2009. Notes from Roberto Rapera.

Appendix 1

118

SPISP and CARP-IC, respectively, while about 1,963 ha of the existing communal scheme is proposed for rehabilitation and improvement.

166. There is no disaggregated distribution of access to potable water supply by municipality but the provincial figure shows that 68% of the total households have access to potable water supply. The residents in barangays drawing potable water from Lake Lanao declare that these sources are safe but looking at the health statistics of the province, the top two causes of morbidity is diarrhea and skin diseases.

Appendix 1

119

V. GIS Mapping, Modeling and Database Development

Definition of Terms

Advanced Land Observing Satellite (ALOS) follows the Japanese Earth Resources Satellite-1 (JERS-1) and Advanced Earth Observing Satellite (ADEOS) and will utilize advanced land-observing technology. ALOS will be used for cartography, regional observation, disaster monitoring, and resource surveying

Barren lands (also bare area) – land not covered by (semi-) natural or artificial cover. This includes among others, sand dunes, river wash, lahar-laden areas and rocky or stony areas.

Broadleaved forest – Forest with a predominance (more than 75 percent of tree crown cover) of trees of broadleaved species.

Built-up areas – composed of areas of intensive use with much of the land covered by structures. It includes cities, towns, villages, strip developments along highways, transportation, power, and communication facilities, and areas occupied by malls, shopping centers, industrial and commercial complexes, and institutions that may, in some instances, be isolated from urban areas.

Closed canopy forest – formation where trees in various storey and undergrowth cover a high proportion (>40 percent) of the ground and do not have a continuous dense grass layer. They are either managed or unmanaged forests, in advance state of succession and may have been logged over one or more times, having kept their characteristics of forest stands, possibly with modified structure and composition.

Conifer (coniferous) forest – Forest with predominance (more than 75 percent of tree crown cover) of trees of coniferous species

Cultivated lands – land not classified as forest or other wooded land used by man for agriculture or pasture

Cultivated lands planted to annual crops (also annual cropland) – land cultivated with crops with a growing cycle of up to one year, which must be newly sown or planted for further production after harvesting

Cultivated lands planted to perennial crops (also perennial cropland) – land cultivated with long term crops that do not have to be replanted for several year after harvest. Harvesting components are not timber but fruits, latex and other products that do not significantly harm the growth of the planted trees or shrubs.

Decision support system - a computer-based system that helps decision-makers confront ill-structured problems through direct interaction with data and analysis models

Forest plantations (also Plantation forest) – forest stands established by planting or seeding in the process of afforestation or reforestation

Geographic Information System (GIS) - an organized collection of computer hardware, software, geographic data, and personnel designed to efficiently capture, store, update, manipulate, analyze and display all forms of geographically-referenced data and information

Grasslands – areas predominantly vegetated with grasses such as Imperata, Theneda, Saccharum spp., among others.

Appendix 1

120

Inland waters, including fishponds, lakes and water reservoirs – the bodies of water surrounded by land (e.g. rivers, lakes, streams, mudflats, pods/fishponds, dams and reservoirs)

Mangrove forests – forested wetlands growing along tidal mudflats and along shallow water coastal areas extending inland along rivers, streams and their tributaries where the water is generally brackish and composed mainly of Rhizopora, Bruguiera, Ceriops, Avicenia, Aegiceras and Nipa (Nipa) species.

Marshlands – a natural area usually dominated by grass-like plants such as cattails and sedges that are rooted in bottom sediments but emerge above the surface of the water. It contains emergence vegetation and usually develop in zones progressing from terrestrial habitat to open water.

Open-canopy forest – formations with discontinuous tree layer with coverage of at least 10% and less than 40%. They are either managed or unmanaged forests, in initial state of succession.

Phased Array type L-band Synthetic Aperture Radar (PALSAR) is an active microwave sensor using L-band frequency to achieve cloud-free and day-and-night land observation

Shrublands – land where the dominant woody vegetation are shrubs, generally of more than 0.5 meter and less than 5 meters in height and maturity and without a definite crown. The growth habit can be erect, spreading or prostate. The height limits for trees and shrubs should be interpreted with flexibility, particularly the minimum tree and maximum shrub height, which may vary between 5 to 7 meters approximately.

Wooded grasslands – areas predominantly vegetated with grasses, such as Imperata, Themeda, Saccharum and where the trees cover between 5 to 10% of the area and their height may reach 5 meters at maturity.

Appendix 1

121

A. Summary of the Report

167. This working paper describes the area to be included within the scope of Integrated Natural Resources and Environmental Management Project (INREMP) from a spatial perspective. Geographic information systems (GIS) played a major role in mapping and modeling of the project area (i.e. four river basins and the twenty-three subwatershed subprojects). The report is divided into three parts: Part I describes the process in characterizing the individual river basins on the basis of administrative boundaries, land cover, land use, legal classification, slope and other biophysical descriptors. GIS was also used in watershed analysis specifically in delineating the subwatersheds in each river basin. The resulting spatially explicit information was used in the preparation of the INREM project feasibility study. Part II discusses the same process as it should be applied during project implementation with particular focus on the role of GIS in land capability classification, land use suitability analysis and zoning. Part III describes the features of the Upper River Basin GIS database development for monitoring and evaluation (DDM&E) of the project area. In addition, the DDM&E will provide a unified and standard geodatabase design containing the characteristics of the natural resources and environment in the project area. In both Part II and Part III processes and systems, the Project shall involve community stakeholders in the land capability classification, land use suitability analysis and zoning and in the in the DDME.

168. Participatory GIS Mapping, Modelling and Database Management as applied would entail the participation of local people/community stakeholders in the form of information sharing like eliciting local people’s knowledge; consultation as undertaken in participatory resource assessment; decision making to include analyses and finding solutions and community action where community initiates activities or sub-projects. INREMP shall endeavour for community participation in the GIS process as an indicator of empowering the local project stakeholders.

169. While the GIS exercise and other scientific tools like Erosion Potential Estimate (EPE) be used by the project for data analysis and modelling, INREM project should be sensitive and include in the whole process indigenous spatial knowledge (ISK) which has proven to be effective as it embodies practical knowledge of generations. Furthermore, the project has to be cautious and make the GIS tools accessible to the local people especially to the indigenous peoples who largely populate targeted URBs. 170. The project area, which comprise the river basins of Chico in Luzon, Wahig-Inabanga in the Visayas, Upper Bukidnon and Lake Lanao in Mindanao total an estimated 1,138,555 ha. These are located in nine provinces, 81 municipalities and cities, and 1,332 barangays around the country. Characterization was undertaken using data from various sources and organized according to distribution and extent among the different local government units but more importantly, among the different subwatersheds that were delineated in each river basin. A spatial combination of land cover, land classification and slope categories was undertaken to generate management prescriptions on a subwatershed basis. After careful processing, a total of 23 subwatersheds were delineated for the project area: eight (8) in Chico river basin, four (4) in Wahig-Inabanga river basin, and six (6) in Upper Bukidnon and five (5) Lake Lanao. 171. The total cost for GIS-based land capability classification, land use assessment and zoning, including the construction, installation and operation of the DDM&E is estimated at Thirty Seven Million Two Hundred Thirty Thousand Pesos (Php 37,230,000).

Appendix 1

122

B. GIS mapping, modeling and database development

1. Introduction

172. The INREM project approach recognizes that land use can only be sustainable if the natural boundaries of ecosystems are used as basis for delineation and zoning. Government, thru national agencies like the DENR, Department of Agriculture, among others and local executives (i.e. in the provinces, municipalities/cities and barangays) should take cognizance of this requirement for success. Thus, natural boundaries and legal boundaries should be consequently visualized on maps in order to enhance understanding and allow for a targeted and objective delineation of land use zones. On this premise, geographic information systems (GIS) was used in mapping, analysis and modeling of the characteristics of the project area and expressing these in terms of the administrative boundaries as well as the watershed boundaries.

173. This report consists of three parts. Part I describes the GIS process in characterizing the individual river basins on the basis of land cover, land use, legal classification, slope and other biophysical descriptors and their distribution along the administrative boundaries. GIS was also used in watershed analysis specifically in delineating the subwatersheds in each river basin. The resulting spatially explicit information was used in the preparation of the INREM project feasibility study. Part II discusses the same process as it should be applied during project implementation with particular focus on the role of GIS in land capability classification, land use suitability analysis and zoning. Part III describes the features of the Upper River Basin GIS-based decision support system (RBMIMDSS) for monitoring and evaluation (M&E) of the project area. In addition, the DDM&E will provide a unified and standard geodatabase design containing the characteristics of the natural resources and environment in the project area.

174. For the INREM process, GIS mapping, analysis and modeling provide the foundation for the targeting of interventions and the identification of management regimes in the context of the INREM project. The values are expressed spatially thus enabling estimation of cost of interventions on a per hectare basis and more importantly, their relative distribution and estimated extent among the different affected local government units (ie. provincial, municipal/city and barangay).

175. Available secondary data including those that were gathered from local sources during fieldwork were collected, collated, georeferenced, digitized and converted into GIS format to enable spatial analysis and modeling.

2. Brief Project Description

176. The project area encompasses four river basins totalling an estimated 1,138,555 ha. located in nine provinces around the country (Table A1.13). These river basins are: Chico River Basin located in the provinces of Apayao, Benguet, Ifugao, Kalinga, and Mt. Province (454,552 ha); Wahig-Inabanga in Bohol (62,793 ha); Lake Lanao in Lanao del Sur (141,339 ha); Upper Bukidnon River Basin in Bukidnon and Misamis Oriental (479,870 ha).

Appendix 1

123

Table A1.13 INREM River Basins

River Basin Estimated Area (ha) Provinces

Chico 454,552 Apayao, Benguet, Ifugao, Kalinga, Mt. Province

Wahig-inabanga 62,793 Bohol

Lake Lanao 141,339 Lanao del Sur

Upper Bukidnon 479,870 Bukidnon, Misamis Oriental,

Total 1,138,554 9

3. Data Collection Methods

177. Data collection methods included review of satellite images, available maps both in analog (ie. printed) and digital formats. Expectedly, not all the data collected were in digital even GIS format, thus, requiring extensive GIS processing. Fortunately, the river basins collected from the river basin control office (RBCO) were expressed in GIS format and thus facilitated GIS processing. Other available secondary data from national agencies particularly the DENR line agencies and field offices were collected. These data were consequently mapped according to the boundaries of the four core river basins: Chico River Basin, Wahig-Inabanga River Basin, Upper Bukidnon River Basin and Lake Lanao River Basin. The maps were refined from data collected at local sources (i.e. DENR field offices, provincial and municipal offices as well as the NGOs operating in the area). 178. In particular, GIS data were collected from the DENR Forest Management Bureau, which manages a substantial archive of digital data on forest cover. At the same time, the NAMRIA produces general purpose maps at 1:50,000 scale showing topography, drainage network, roads. All maps were projected to UTM Zone 51N with datum WGS84. During project implementation, the Philippine Referencing System of 1992 (PRS92) should henceforth be used as the datum. NAMRIA is currently conducting densification of ground control points (GCPs) in the country for the full implementation of PRS92.

4. Characterization of the Project Area

179. The characterization of the project area, river basins and subwatersheds was undertaken mostly on the basis of secondary data and limited field visits to the subwatershed subprojects. The results of the analysis provide sufficient basis for identifying the management regimes for each river basin. a. Baseline Data and Information

180. The data and information on the project area are described in terms of site descriptors, which fully capture and characterize the resources in the project area, whenever such data and information are available and which form an integral part of project implementation. These include location parameters (e.g. administrative boundaries from region, province, city/municipality, barangay), physical description (physical features like river systems and water bodies, slope, topography and physical infrastructure like roads, builtup areas) including legal land classification (i.e. forestland, alienable and disposable land (A&D); biological description (e.g. forest and other vegetation cover); socio-economic description (e.g. population, presence/absence of indigenous peoples). In any case, the full characterization of the project area which will include hydrometeorology (e.g. meteorological data such as rainfall, temperature, and humidity including hydrologic data like water sources, discharge rates, water

Appendix 1

124

quality, among others) and environment (e.g. environmental hazards (e.g. landslide, flood, earthquake, seismicity, pollution), presence of threatened, endangered and vanishing species, and the presence of encroachment on forest territory, among others) will be done during project implementation, more specifically, during the first two years when land classification and land use zoning will be undertaken. 181. Consistent with the INREM35 (integrated natural resources and environmental management) approach, the subwatershed boundaries as defined by the ridges (i.e. topographic divide) and river system were delineated and used in geographically expressing the extent and distribution of the project area in terms of administrative boundaries, land cover, legal land classification and slope categories. This process is explained in detail in the following sections. b. Location

182. As mentioned earlier, the project area, which comprise the river basins of Chico in Luzon, Wahig-Inabanga in the Visayas, Upper Bukidnon, and Lake Lanao in Mindanao, transcend nine provinces. In terms of distribution of the river basins among the municipalities and cities. For Chico River Basin, the municipalities Balbalan, Banaue, Barlig, Bauko, Bontoc, Conner, Hungduan, Kabugao, Lubuagan, Natonin, Pasil, Pinukpuk, Rizal (Liwan), Sabangan, Sadanga, Sagada, Tabuk, Tanudan, Tinglayan and Tinoc. For Wahig-Inabanga in Bohol province, the municipalities are: Buenavista, Carmen, Dagohoy, Danao, Duero, G. Hernandez, Inabanga, Jagna, Pilar, Sagbayan, San Miguel, Sierra Bullones, Talibon, Trinidad, Ubay. For Lake Lanao River Basin, the municipalities are: Bacolod Grande, Balindong, Bayang, Binidayan, Bubong, Butig, Ditsaan Ramain, Ganassi, Lumba-Bayabao, Lumbatan, Lumbayanague, Madalum, Madamba, Maguing, Marantao, Marawi City, Masiu, Mulondo, Pagayawan, Piagapo, Poona Bayabao, Pualas, S. Dumalondong, Saguiaran, Tamparan, Taraka, Tugaya (Table A1.14). Lastly, for Upper Bukidnon, the municipalities and cities include: Baungon, Cagayan de Oro, Damulog, Dangcagan, Don Carlos, Impasugong, Kadingilan, Kibawe, Kitaotao, Lantapan, Libona, Malaybalay, Malitbog, Manolo Fortich, Maramag, Pangantucan, Sumilao, Talakag, Valencia. There is an estimated total of 1,322 barangays encompassing the project area. More than half of these are located in Lake Lanao while the least number is in Wahig-Inabanga. Table A1.14 Administrative boundaries in the project area

River Basin Estimated Area (ha)

No. of Provinces %

No. of Munici-

palities and Cities %

No. of Baran- gays %

Chico 454,552 5 56 20 25 259 19

Wahig-Inabanga 62,793 1 11 15 19 130 10

Upper Bukidnon 479,870 2 22 19 23 212 16

Lake Lanao 141,339 1 11 27 33 731 55

Total 1,138,554 9 100 81 100 1,332 100

c. Physical description

183. The information contained in this section (natural features such as slope, rivers, water bodies, elevation, and man-made infrastructure such as roads, builtup areas) were largely gathered from secondary data sources particularly from the digital archives of the Forest Management Bureau and NAMRIA. Data on the boundaries of the river basins were provided by

35 Also IEM (integrated ecosystem management) approach

Appendix 1

125

the river basin control office (RBCO) of DENR. The fieldwork during the month of April 2009 enabled the team to refine the data based on what were, at the time of the visit, available and accessible from local sources. These sources included, among others, the regional offices of DENR, the provincial offices and NGOs working in the area. In this section, the physical descriptors include topography, slope, river system, and water bodies.

d. Topography and Slope

184. In terms of topography, Upper Bukidnon river basin reaches up to 2,900 m followed closely by Chico river basin which reaches up to 2,700 m. Lake Lanao, which is just west of Upper Bukidnon goes as high as 2,600 in the municipality of Lumba-Bayabao. For Wahig-Inabanga and Upper Bukidnon, whose outlets reach the coast, the minimum altitude recorded for Chico and Lake Lanao are 100 m and 500 m, respectively (Table A1.15).

185. The slope categories, already available in GIS format from FMB, were generated using NAMRIA topographic maps36, at the following categories: 0 – 3%; 3 – 8%; 8 - 18%; 18 to 30%; 30 to 50%; and above 50%. Table A1.15 shows the distribution of the slope categories in the four river basins. For Chico river basin, 55.8% ( 253,415 ha) have slopes greater than 50% along with Upper Bukidnon river basin with 32.8% (130,295 ha). For Wahig-Inabanga river basin , 31.6% (19,854 ha) belong to slopes between 30% and 50%. Meanwhile, for Lake Lanao river basin 47.2% (66,655 ha) have slopes 18 – 30%.

Table A1.15. Topography and slope categories in the project area. Total 0-3 %

(% of RB)

18-30%

(% of RB)

> 50

(% of RB)

Altitude (m)

Min Max

Chico 454,553 102,937

(23) 39,704

(9) 311,912

(69) 100 2700

Wahig-Inabanga 62,793 33,574

(53) 7,399 (12)

21,820 (35)

0 860

Upper Bukidnon 479,870 173,740

(36) 93,065

(19) 213,066

(44) 0 2900

Lake Lanao 141,339 88,290

(62) 22,619

(16) 30,430

(22) 500 2600

Total 1,138,555 398,540 170,598 569,417 % of Project

Area 35 15 50

e. River System and Water Bodies

186. In terms of river systems and water bodies, there is an estimated 4,556 km of rivers and major tributaries in the project area with the longest in Chico river basin (2,142 km) followed by Upper Bukidnon river basin (1,725 km). Lake Lanao river basin has 431 km while Wahig-Inabanga has 258 km. We delineated eight subwatersheds in Chico river basin while there are five in Upper Bukidnon and Lake Lanao and four in Wahig-Inabanga. (Table A1.16). Chico river basin has the most extensive inland waters with about 1,940 ha while Upper Bukidnon river basin has the least (83 ha), owing to its highly mountainous landscape.

36 Slopes in percent is the ratio of “rise” over “run”, i.e., a 10% slope represents a 10- meter vertical rise over a 100-

meter horizontal distance. Note that a 100% slope is NOT vertical (90 degrees), but rather a 45-degree slope; also, the 18% threshold slope generally used to define the boundaries between “forestlands” and “alienable and disposable lands” is approximately 10 degrees.

Appendix 1

126

187. The headwaters of Chico river basin start at Bauko subwatershed and drain to the outlet in Cagayan is about 170 km. For Wahig-Inabanga, it is about 68 km, starting from the municipalities of Sierra Bullones and Pilar down to the municipality of Inabanga . It is a different case for Upper Bukidnon which drains to several places from the headwaters of Mt Kitanglad protected area. Clockwise from the north, it drains to the municipalities of Manolo Fortich, Sumilao, Malaybalay City, Lantapan, Talakag, Baungon, and Libona. For Lake Lanao, all water drains to the lake before it goes out to Agus River in Lanao del Norte.

Table A1.16. Rivers and Water Bodies Estimated

Area (ha) Estimated length of rivers and major tributaries (km)

No. of watersheds

Marshland Inland water

Chico 454,553 2,142 8 0 1,940

Wahig-Inabanga 62,793 258 4 0 182

Upper Bukidnon 479,870 1,975 6 0 316

Lake Lanao* 141,339 431 5 336 836

Total 1,138,555 4,556 23 336 3,042

*Note: Lanao lake has an estimated area of 36,300 ha;

5. Forest Cover and Other Land Uses

a. Forest Cover

188. In this report, two categories are used, namely: natural forests and plantations. Under natural forests, these can either be coniferous or broadleaved forests. Further, such forests, can either be closed canopy or open canopy. Closed canopy forests are formations where trees in various storey and undergrowth cover a high proportion (>40 percent) of the ground and do not have a continuous dense grass layer. On the other hand, open canopy forests are formations with a discontinuous tree layer and coverage of at least 10% but less than 40%. Additionally, when more than 75% of tree crown cover is composed of broadleaved species, it is considered a broadleaved forest. The same goes for a coniferous forest - when more than 75% of tree crown cover is composed of coniferous species. Forest plantations are forest stands that were established either by planting or seeding thru reforestation or afforestation.

189. For the project area, about 30% or more than 315,000 ha are forests broken down into broadleaved, coniferous, plantations and mangrove forests (Table A1.17). Among the river basins, Chico contains the highest amount of forest, estimated at more than 163,000 hectares (or about 52%). Wahig-Inabanga contains the least amount with less than 9,000 hectares (or 2.8%) of forest cover. Interestingly, Wahig-Inabanga contains the highest amount of forest plantations, at almost 4,300 hectares. Chico River Basin has less than 1,000 hectares of forest plantations. In terms of mangrove forest, only Wahig-Inabanga and Upper Bukidnon river basins exhibit some amount. Understandably, Lake Lanao and Chico river basins do not contain mangrove forest. The former is an inland lake while the latter’s outlet does not extend to the coast. A majority of the forests in the project area are composed of broadleaved species, which stands at almost 80%. This is followed by coniferous species (almost 20%) with small amounts of plantations (1.6%) and mangroves (0.1%).

Appendix 1

127

Table A1.17. Forest cover in the project area.

Forest Cover

Broadleaved (ha)

Coniferous (ha)

Plantations(ha)

Mangrove (ha)

Total (ha)

%

Closed canopy

Open canopy

Closed canopy

Open canopy

Chico 70,597 29,283 45,673 16,869 903 - 163,324 52

Wahig-Inabanga

- 4,164 - - 4,280 355 8,799 3

Upper Bukidnon

7,635 58,187 - - - 106 62,371 20

Lake Lanao 46,175 34,703 - - - - 80,878 26

Total 124,406 122,779 45,673 16,869 5,183 461 315,371 100

% 39 39 15 5 2 0.1

b. Other Land Uses

190. Approximately 70% (735,775 ha; Table A1.18) of the project area is devoted to other land uses. In Chico river basin, 55.4% (160,323 ha) is composed of wooded shrubs while in the other three river basins, cultivated annual crops dominate, 83.9% (45,170 ha) in Wahig-Inabanga, 76.2% (254,125 ha) in Upper Bukidnon, and 49.9% (29,530 ha) in Lake Lanao. In fact, in Lake Lanao, an estimated 15,820 ha (26.7%) is devoted to cultivated perennial crops totaling 76.6% (45,350 ha) of cultivated lands.

Table A1.18 Other Land Uses in the Project Area

Other Land cover* Natural Barren

Annual Perennial Shrubs Grassland Grassland land

65,066 188 160,323 56,748 6,180 23 760

22 0 55 20 2 0 0

45,170 1,398 2,950 1,760 2,282 - 252 53,812

84 3 5 3 4 0 0

295,452 31,244 44,013 27,702 10,547 - 4,576

89 9 13 8 3 0 1

29,530 15,820 4,030 4,438 4,205 - 1,132

50 27 7 8 7 0 2

Total 393,891 40,578 190,620 80,706 23,215 23 6,743 735,775

289,288

Lake Lanao59,155

Wahig-Inabanga

Upper Bukidnon333,521

Cultivated Wooded land Builtup areas

Total

Chico

Note: *values in ( ) are %

6. Legal Land classification 191. Of the Philippines’ total land area of 30 million hectares, 15.05 million hectares is classified as forestlands, 14.195 million hectares is alienable and disposable (A&D) lands, and 0.755 million hectares remain to be classified37. The latter category of unclassified lands is, by default, regarded as forestland unless classified otherwise, i.e. A&D38. The maps and technical descriptions of these forestlands and A&D lands are in the official archives of NAMRIA.

37 FMB. Forestry Statistics in http://forestry.denr.gov.ph/statglance.htm accessed 13 May 2009 38 Ibid.

Appendix 1

128

192. For the project area, 63% are forestlands while the other 37% are A&D (Table A1.19;). Comparatively, forestlands dominate in Chico and Lake Lanao river basins (i.e. 83% and 72%, respectively) while in the other two river basins, A&D lands dominate (i.e. 54% in Upper Bukidnon and 32% in Wahig-Inabanga). Consequently, Chico has the longest perimeter length (approximately 1,308 km) of its forestland, while Upper Bukidnon closely follows with an estimated length of almost 1,300 km. These perimeter values will have a consequence to the cost of establishing markers during project implementation.

Table A1.19. Legal land classification in the project area

River Basin

Forestland Alienable and Disposable

Estimated Area (ha)

% of river basin

Estimated Perimeter

Length (km)

Estimated Area (ha)

% of river basin

Estimated Perimeter

Length (km)

Chico 375,931 83 1308 78,621 17 944

Wahig-Inabanga 20,227 32 256 42,566 68 281

Upper Bukidnon 222,000 46 1294 258,100 54 1225

Lake Lanao 102,088 72 294 39,251 28 290

Total 684,217 370,442

% of Project Area 65% 35%

a. Mapping and Analysis

193. As mentioned earlier, most of the data used in this report came from those existing at the national offices of the DENR Forest Management Bureau as well as the NAMRIA. These were refined as much as possible at the field offices of DENR and provincial and other local governments at each of the river basins (e.g. DENR regional offices in Baguio (Region II), Cebu (Region VI), DENR ARMM, provincial offices of Bukidnon in Malaybalay City, NGOs working in the area, among others). An important part of the analysis took careful consideration of existing information on land cover and land use in the project area. These were based on processed satellite images (i.e. Landsat) published in 2003 by DENR. The project considered using the official maps and statistics of DENR, specifically those from FMB and NAMRIA.

b. Land Cover

194. Land cover and land use in the project area (Table A1.20) consist of broadleaved and/or coniferous canopy forests (closed or open canopy), mangrove forests, forest plantations, wooded shrubs and grasslands, natural grasslands, barren lands, builtup areas, cultivated lands (annual and/or perennial), fishponds, and inland water.

195. About 37.3% (393,891 ha) of the project area is devoted to cultivated annual cwhile 23.5% (247,321 ha) is composed of broadleaved forests (closed canopy is 11.8% or 124,452 ha and open canopy is 11.7% or 122,869 ha).

c. Legal Land Classification

196. Cross tabulating the land cover with the legal land classification (Table A1.21) reveals a number of insights across the river basins as well as the occurrences inside the individual river basins. On the average, forestlands account for 59% of the project area with a maximum of 83%

Appendix 1

129

in Chico river basin and a low of 32% in Wahig-Inabanga river basin. On the other hand, A&D lands average 41% across the project area correspondingly with a high of 68% and a low of 17% in Wahig-Inabanga river basin and Chico river basin, respectively.

197. As expected, forests occur inside forestlands with patches in A&D particularly in Lake Lanao and Upper Bukidnon river basins with 524 ha and 253 ha of closed canopy broadleaved forest, respectively. There are also open canopy broadleaved forest inside A&D in Lake Lanao, Upper Bukidnon, Wahig-Inabanga and Chico river basins amounting to 1,662 ha, 813 ha, 642 ha and 141 ha, respectively.

198. On the other hand, there are more than 127,000 hectares of cultivated areas (i.e. annual crops about 110,000 ha, perennial crops more than 17,000 ha) inside forestlands. Annual crops are planted inside forestlands in almost 73,000 hectares in Upper Bukidnon, almost 16,000 ha in Chico, about 12,000 ha in Lake Lanao, and more than 9,000 ha in Wahig-Inabanga. At this level of analysis, it can be shown that non-conforming uses pervade in the project area and interventions need to be introduced to address further environmental degradation.

Table A1.20 Land cover/land use in the project area

Land Cover Estimated Area (ha) Total Chico Wahig-

Inabanga Upper Bukidnon

Lake Lanao

Closed forest, broadleaved 70,597 - 7,635 46,220 124,452Closed forest, coniferous 45,673 - - - 45,673Open forest, broadleaved 29,283 4,164 58,187 34,792 122,869Open forest, coniferous 16,869 - - - 16,869Forest plantations, broadleaved 903 4,280 - - 5,183Other land, built-up area 760 95 4,576 1,132 6,494Other land, cultivated, annual crop

65,066 45,170 295,452 29,530 393,891

Other land, cultivated, perennial crop

188 1,398 31,244 15,820 40,579

Other land, natural, marshland - - - 336 336Other lands, grassland 6,180 2,282 10,547 4,205 23,214Other wooded land, shrubs 160,323 2,950 44,013 4,030 190,620Other wooded land, wooded grassland

56,748 1,760 27,702 4,438 80,705

Inland water 1,940 182 316 836 3,041Other land, natural, fishponds - 157 93 - 250Other land, natural, barren land 23 - - - 23Other land, mangrove forest - 355 105 - 461Total 454,553 62,793 479,871 141,339 1,138,5

55% Of River Basin 40 6 42 12

Appendix 1

130

Table A1.21 Crosstabulation of land cover with land classification in the project area

Land Classification

Land Cover

Chico Wahig- Inabanga Upper Bukidnon Lake Lanao

Forest- land (ha)

A & D

(ha)

Forest- land (ha)

A & D (ha)

Forest- land (ha)

A & D (ha)

Forest- land (ha)

A & D (ha)

Closed forest, broadleaved

70,594 3 - - 7,381 253 45,696 524

Closed forest, coniferous 45,639 34 - - - - - -

Open forest, broadleaved

29,142 141 3,522 642 57,373 813 33,130 1,662

Open forest, coniferous 16,835 35 - - - - - -

Forest plantations, broadleaved

891 12 2,017 2,263 - - - -

Other land, built-up area 212 547 12 83 74 4,502 11 1,121

Other land, cultivated, annual crop

15,815 49,251

9,171 35,999 84,028 211,424

12,011 17,519


188 - 156 1,242 19,856 11,388 3,206 12,614

Other land, natural, marshland

- - - - - - 336 -

Other lands, grassland 5,786 394 2,225 57 5,015 5,532 1,342 2,863

Other wooded land, shrubs

146,639 13,684

1,967 983 29,031 14,982 2,785 1,246

Other wooded land, wooded grassland

44,100 12,648

647 1,114 18,681 9,021 3,572 866

Inland water 91 1,849

37 145 222 94 - 836

Other land, natural, fishponds

- - 133 24 53 40 - -

Other land, natural, barren land

- 23 - - - - - -

Other land, mangrove forest

- - 341 14 24 81 - -

Total 375,931 78,621

20,227 42,566 221,739

258,131

102,088

39,251

% 83 17 32 68 46 54 72 28

7. Slope Categories 199. In combination with land cover/land use and legal land classification, slope was also included to show which land cover/land use that belong to either the state or privately-owned. For one, intensive uses like agriculture should avoid steep slopes to avoid the danger of accelerated soil erosion, and even mass soil movements (i.e. landslides). Table A1.22 shows a three-dimensional crosstabulation of land cover, legal land classification and slope.

a. Analysis of the Sub-watersheds

200. The next step in the process is to determine the occurrences of these three site descriptor parameters: land cover, legal land classification, and slope along the subwatersheds in each of the individual river basins.

Appendix 1

131

b. GIS processing and analysis of sub-watersheds

201. Delineation of the subwatersheds proceeded with the use of digital elevation models (DEM). With the DEM showing the ridges and the directional flow of water, GIS functionalities were used in delineating the subwatershed boundaries. Since the resulting subwatersheds were in raster form, these were consequently vectorized39 and fitted onto the rest of the thematic layers of the project area. Table A1.23 shows the subwatersheds for each of the river basins in the project area.

202. After careful analysis, a total of 23 watesheds were delineated for the project area: eight (8) in Chico river basin, four (4) in Wahig-Inabanga river basin, and five (5) each in Upper Bukidnon and Lake Lanao. In Chico river basin, Tuao subwatershed located downstream, is the largest with an estimated size of 80,000 ha or 17.5%. It is also the biggest river basin. For Wahig-Inabanga, the largest is Dagohoy subwatershed with an approximate size of 22,000 ha. The other three subwatersheds are more or less evenly-sized. In the case of Upper Bukidnon, the Sumilao-MFortich-Malitbog subwatershed is the largest at more than 132,000 ha (or 33.5%) while the Taraka-Gata subwatershed in Lake Lanao stands at almost 55,000 ha (38.8%).

203. For the purpose of this study, the assignment of the names of the subwatersheds follows the name of the major river or major tributary in the area. Also, naming is based on the most prominent municipality or city encompassing the subwatershed.

c. Description of the sub-watershed subprojects

204. Representative subwatersheds have also been identified in each river basin (Table A1.24), namely: Bauko subwatershed subproject in Chico river basin; Wahig-Pamaksalan subwatershed subproject in Wahig-Inabanga river basin; the Manupali-Kitanglad subwatershed subproject in Upper Bukidnon; and Bubong subwatershed subproject in Lake Lanao. These subwatershed subprojects represent a cross-section of the biophysical characteristics, issues and problems in the project area. For instance, Bauko, Wahig-Pamaksalan and Manupali-Kitangald are located in the headwaters; illegal logging is rampant right in the middle of Bubong subwatershed; intensive vegetable farming is being practiced in Bauko subwatershed. In addition, Mt Data National Park and portions of Ambuklao-Binga protected subwatershed (approximately 1,500 ha) intersect with Bauko subwatershed subproject. For Wahig-Pamaksalan, an estimated 1,700 ha of Rajah Sikatuna National Park and Alijawan-Cansuhay-Anibongan Watershed Forest Reserve are inside the subwatershed subproject.

205. There is an estimated total of about 114,500 hectares spread over 24 cities and municipalities and 218 barangays (Table A1.24). Largest of these is Manupali-Kitanglad subwatershed subproject with almost 51,000 ha while the smallest is Wahig-Pamaksalan subwatershed subproject with almost 14,000 ha. There are 117 barangays encompassing Bubong subwatershed subproject. Meanwhile, there are only 17 barangays in Manupali-Kitanglad subwatershed subproject.

206. In Bauko subwatershed, 77% or 23,167 ha (19.6% or 5,898 ha with slopes of 30%-50% plus 57.4% or 17,269 ha with slopes above 50%) are rugged and mountainous (Table A1.25). Similarly in Manupali-Kitanglad component watershed, 57.2% or 29,160 ha (11% or 5,595 ha with slopes of 30%-50% plus 46.2% or 23,565 ha with slopes above 50%) have steep slopes. On the other hand, in Wahig-Pamaksalan and Bubong component watersheds, 5,639 ha

39 GIS analytical procedure that transforms raster datasets into vector polygons and polylines.

Appendix 1

132

(40.6%) and 9,972 ha (51%), respectively are moderately sloping (i.e. 8-18%). In terms of drainage network, Manupali-Kitanglad component watershed subproject has 228 km of rivers and major tributaries followed by 96 km, 58 km, and 45 km in Bauko, Bubong, and Wahig-Pamaksalan component watersheds, respectively (Table A1.26).

207. In Bauko component watershed, 39.8% (11,793 ha) were recorded as having closed canopy coniferous forest with 44.6% (13,416 ha) of wooded shrubs. For Bubong component watershed, 72.4% (14,143 ha) were recorded as closed canopy forest (33.3% or 6,508 ha of broadleaves and 39.1% or 7,635 ha coniferous). On the other hand, there are 71.9% (45,170 ha) and 58.7 (29,932 ha) of cultivated annual crops in Wahig-Pamaksalan and Manupali-Kitanglad component watersheds respectively.

Appendix 1

133

Table A1.22 Spatial analysis in the project area LAND COVER LAND CLASSI‐

< 18% % 18‐30% % >30% % Total (Ha) %

Forest Cover Forestland 48,978 16 34,469 11 229,139 73 312,585 43

A&D 2,729 42 1,659 26 2,089 32 6,477 2

Closed forest, broadleaved Forestland 23,478 19 13,188 11 87,005 70 123,671 40

A&D 184 24 340 44 256 33 780 12

Closed forest, coniferous Forestland 2,893 6 1,609 4 41,137 90 45,639 15

A&D 1 3 ‐ ‐ 33 97 34 1

Open foerst, broadleaved Forestland 20,968 17 18,061 15 84,138 68 123,167 39

A&D 980 30 1,120 34 1,158 36 3,258 50

Open forest, coniferous Forestland 1,135 7 1,435 9 14,264 85 16,835 5

A&D 17 50 ‐ ‐ 17 50 35 1

Forest plantations, broadleave Forestland 138 5 175 6 2,595 89 2,908 1

A&D 1,451 64 199 9 625 27 2,275 35

Mangrove forest Forestland 365 ‐ ‐ ‐ ‐ ‐ 365 0

A&D 96 ‐ ‐ ‐ ‐ ‐ 96 1

Other Land Uses Forestland 90,098 42 67,941 32 249,361 117 407,400 57

A&D 256,735 327 66,529 85 88,828 113 412,093 98

Other land, builtup area Forestland 147 1 ‐ ‐ 163 1 310 0

A&D 5,899 28 258 1 95 0 6,253 2

Other land, cultivated annual c Forestland 35,532 167 24,703 116 60,791 286 121,025 30

A&D 207,126 975 44,697 210 62,369 294 314,193 76

Other land, cultivated perennia Forestland 5,234 25 5,790 27 12,381 58 23,405 6

A&D 13,417 63 7,321 34 4,507 ‐ 25,245 6

Other land, natural, grassland Forestland 284 1 52 0 ‐ ‐ 336 0

A&D ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

Other lands, grassland Forestland 5,428 26 3,534 17 5,406 25 14,368 4

A&D 5,102 24 1,718 8 2,027 ‐ 8,847 2

Other wooded land, shrubs Forestland 22,855 108 19,292 91 138,274 ‐ 180,421 44

A&D 11,241 53 6,984 33 12,670 60 30,894 7

Other wooded land, wooded g Forestland 20,084 95 14,571 69 32,345 152 66,999 16

A&D 10,960 52 5,551 26 7,139 34 23,650 6

Inland water Forestland 349 2 ‐ ‐ 1 0 350 0

A&D 2,924 14 ‐ ‐ 0 0 2,925 1

Other land, fishponds Forestland 186 1 ‐ ‐ ‐ ‐ 186 0

A&D 64 0 ‐ ‐ ‐ ‐ 64 0

Other land, natural, barren lan Forestland ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

A&D 1 0 ‐ ‐ 21 0 23 0

Total Forestland 139,075 37 102,410 27 478,500 127 719,985 63

A&D 259,465 330 68,188 87 90,917 116 418,570 37

1,138,555

Appendix 1

134

Table A1.23. Component watersheds in the project area

River Basin Component watershed Area (ha) % of River Basin

Chico 1 Tabuk 60,539 13 2 Conner 56,848 13 3 Tuao 79,681 18 4 Balbalan 77,675 17 5 Lubuagan 72,924 16 6 Bontoc 41,188 9 7 Barlig-Tanudan 35,586 8 8 Bauko 30,111 7 Total Area 454,552 Wahig-Inabanga 1 Wahig-Pamaksalan 13,889 22 2 Danao 13,339 21 3 Dagohoy 21,637 35 4 Inabanga 13,928 22 Total Area 62,793 Upper Bukidnon 1 Manupali 50,957 11 2 Talakag 65,007 14 3 Sumilao-MF-Malitbog 132,605 28 4 Malaybalay-Impasugong 52,585 11 5 Baungon-Libona 94,821 20 6 Kalatungan-Muleta 83,896 17 Total Area 479,870 Lake Lanao 1 Bubong 19,546 14 2 Malaig 35,403 25 3 Taraka Gata 54,789 34 4 Saguiaran-Marawi 14,105 10 5 West 17,496 12 Total Area 141,339 Grand Total Area 1,138,554

Table A1.24 Administrative boundaries in the component watershed subprojects (core)

Component watershed Subproject

Estimated Area (ha) Municipalities and Cities

No. of Barangays

Bauko 30,111 Bauko, Sadangan, Sagada, portions of Bontoc, Hungduan, Banaue

54

Wahig-Pamaksalan

13,889 Sierra Bullones, Pilar, portions of G.Hernandez, Jagna, Duero,

36

Manupali-Kitanglad

50,957 Lantapan, Talakag, portions of Valencia city

16

Bubong 19,546 Bubong, Ditsaan Ramain, Maguing, portions of Marawi City, Mulondo, and Taraka

89

Total 114,503 20 195

Appendix 1

135

Table A1.25. Topography and slope* in the component watershed subprojects Component watershed Subproject

Estimated Area

(ha)

0-3%

3-8 %

8-18%

18-30%

30-50%

> 50%

Min

Max

Bauko 30,111 - (0.0)

4,077 (13.5)

210 (0.7)

2,658 (8.8)

5,898 (19.6)

17,269 (57.4)

900 2,700

Wahig-Pamaksalan

13,889 - (0.0)

1,152 (8.3)

5,639 (40.6)

2,626 (18.9)

3,056 (22.0)

1,416 (10.2)

140 660

Manupali-Kitanglad

50,957 3,764 (7.4)

8,686 (17.0)

4,041 (7.9)

5,306 (10.4)

5,595 (11.0)

23,565 (46.2)

400 2900

Bubong 19,546 4,031 (20.6)

1 (0.0)

9,972 (51.0)

4,383 (22.4)

1,159 (5.9)

- (0.0)

800 1400

Total 114,503 7,795 13,916 19,861 14,973 15,708 42,250

% of total 6.8 12.2 17.3 13.1 13.7 36.9

Note: *values in brackets are % of component watershed area

Table A1.26. Rivers and water bodies in the component watershed subprojects Component watershed Subproject

Estimated length of Rivers and tributaries (km)

Inland water (ha)

Bauko 96 -

Wahig-Pamaksalan 45 182

Manupali-Kitanglad 228 -

Bubong 58 163

Total 427 345

Table A1.27 Forest cover and other land uses in the component watershed subprojects


Bauko Wahig-Pamaksalan

Manupali-Kitanglad

Bubong Total %

Closed forest, broadleaved - - - 6,508 (33.3)

6,508 4.0

Closed forest, coniferous 11,973 (39.8)

- - - 11,973 7.3

Open forest, broadleaved 62 (0.2)

3,440 (24.8)

15,290 (30)

7,635 (39.1)

27,150 16.6

Open forest, coniferous 2,900 (9.6)

- - - 2,900 1.8

Forest plantations, broadleaved

- 735 (5.3)

- - 4,280 2.6

Other land, built-up area 160 (0.5)

- - 11 (0.1)

266 0.2

Other land, cultivated, annual crop

1,601 (5.3)

8,302 (59.8)

29,932 (58.7)

4,979 (25.5)

81,682 50.0


- - - 142 (0.7)

1,540 0.9

Other land, natural, marshland - - - - - -

Other lands, grassland - - - - 2,282 1.4

Other wooded land, shrubs 13,416 (44.6)

- 4,204 (8.2)

- 20,569 12.6

Appendix 1

136


Bauko Wahig-Pamaksalan

Manupali-Kitanglad

Bubong Total %

Other wooded land, wooded grassland

- 1,411 (10.2)

1,531 (3)

108 (0.6)

3,399 2.1

Inland water - - - 163 (0.8)

346 0.2

Other land, natural, fishponds - - - - 157 0.1

Other land, natural, barren land

- - - - - -

Other land, mangrove forest - - - - 355 0.2

Total 30,111 13,889 50,957 19,546 163,407

Note: *values in brackets are % of component watershed area

Table A1.28 Legal land classification in the component watershed subprojects Forestland Alienable and Disposable


Estimated Area

(ha)

% of sub-watershed subproject

Estimated Perimeter

Length (km)

Estimated Area

(ha)

% of sub-watershed subproject

Estimated Perimeter

Length (km)

Bauko 28,522 94.7 205 1,589 5.3 98

Wahig-Pamaksalan 20,227 34.3 117 42,566 65.7 134

Manupali-Kitanglad 27,360 53.7 154 23,597 46.3 120

Bubong 14,433 73.8 86 5,113 26.2 53

Total 90,542 100.0 562 72,865 100.0 405

d. Delineation of the Proposed Management Regimes

i. Rationale for Delineation

208. For the purpose of delineating the management regimes of the project area, current land cover and land use, legal land classification and slope categories were used. Land cover and land use as derived from satellite imagery are classified according to the following: closed canopy forest (broadleaved or coniferous); open canopy forest (broadleaved or coniferous); forest plantations; other lands (builtup, cultivated crops (annual or perennial), natural marshland, natural grassland, barren land, fishponds); other wooded lands (shrubs, wooded grassland); mangrove forest and inland water.

209. Legal land classification was summarized into forestlands and A&D while the slope was categorized into: level to rolling terrain (0-18%); rolling to moderately steep (18 – 30%); steep (30 – 50%); and very steep (above 50%).

210. Assignment of management regimes follow an iterative process wherein the basic criteria on land cover/land use, legal land classification and slope are progressively cross-referenced against each other via pair-wise comparison. During project implementation, when the land use zoning will be developed, additional criteria may include: ecological sensitivity which refers to whether the area falls under NIPAS40, heritage site/geologic/natural monument, a critical

40 National Integrated Protected Areas System.

Appendix 1

137

watershed (i.e. watershed forest reserve), or a biodiversity hotspot (i.e. presence of rare, endangered, or threatened flora and/or fauna), soil characteristics, rainfall pattern, soil erosion, hazard and risk to climate change, among others.

ii. GIS Processing of Management Regimes

211. GIS played a critical role in the delineation of the proposed management regime. The basic assumption is that steeper slopes (e.g. above 30%) are more appropriate for conservation or protection purposes. The presence of forest cover is important for hydrology which ensures that watershed functions are maintained. In addition, soils, microclimate and biodiversity are also conserved. At lower slopes (e.g. at and below 30%), more intensive uses like agriculture and settlements can be allowed. In terms of legal land classification, areas above 18% fall under the jurisdiction of government (i.e. DENR) while areas below 18% are privately owned. As a rule of thumb, contiguity and minimum area are important to ensure the viability of species if the objective is biodiversity, or ensure cost-effectiveness if the objective is commercial production.

212. The management regimes can be summarized into seven major components (see Tables A1.29 and A1.30), namely: [areas above 30% slope] conservation and protection of natural forests, reforestation/afforestation, assisted natural regeneration; [areas at/below 30% slope] sustainable forest management, commercial plantations with community participation; smallholder agroforestry (inside forestlands for areas at/below 30% slope; inside A&D for areas above 30% slope), and other categories. The management regimes are shown below:

Appendix 1

138

Table A1.29 Management regime for the Project area

Chico Wahig‐Inabanga Upper Bukidnon Lake Lanao

ABOVE 30% SLOPE

Conservation and Protection of Natural

Forests

Reinforced protection of conservation

and protected areas

116,690.70 6,652.08 66,193.30 11,941.55 201,477.63

Reforestation/ Afforestation 18,934.42 2,235.72 14,838.69 1,742.12 37,750.95

Assisted Natural Regeneration 159,957.19 5,824.82 66,510.37 6,978.97 239,271.35

Smallholder Agroforestry or Other

Appropriate Livelihood [A&D]

16,329.29 7,107.56 65,523.67 1,956.59 90,917.11

Sub Total 311,911.60 21,820.17 213,066.04 22,619.24 569,417.05 30% SLOPE AND BELOW ‐

Sustainable Forest Management 13,179.43 1,282.50 6,528.68 61,777.46 82,768.08

commercial Plantations with Community

Participation

57,481.74 1,034.53 22,458.74 5,101.71 86,076.72

Smallholder Agroforestry [Forestland] 9,545.03 2,674.59 44,838.96 14,199.40 71,257.98

Other Categories: conservation farming,

organic farming and infrastructure

improvement

52,295.44 31,069.43 143,430.62 32,669.05 259,464.54

Other Categories: conservation farming,

agroforestry extension/demonstration

9,996.68 4,388.98 49,177.01 4,625.32 68,188.00

Other Categories: Includes inland waters,

marshlands, mangroves, barren lands,

settlements

142.79 522.72 370.66 346.56 1,382.74

Sub Total 142,641.11 40,972.75 266,804.69 118,719.50 569,138.05

By River BasinManagement regime Project Area

Appendix 1

139

Table A1.30: Management regime for the Subproject areas (Upper Bukidnon)

Management regime By Watershed KITANGLAD‐

MANUPALI TALAKAG

SUMILAO‐MF‐

MALIBOG

MALAYBALAY‐

IMPASUGONG

BAUNGON‐

LIBONA

KALATUNGAN‐

MULETA TOTAL

ABOVE 30% SLOPE


Reinforced protection of conservation and protected

areas 4,453 8,043 33,760 7,704 6,523 5,710 66,193

Reforestation/ Afforestation 1,460 84 3,211 6,166 3,061 857 14,839

Assisted Natural Regeneration 18,002 16,215 9,687 3,574 14,112 4,919 66,510

Smallholder Agroforestry or Other Appropriate

Livelihood [A&D] 5,245 11,967 27,693 2,717 13,125 4,776 65,524

Sub Total 29,160 36,311 74,351 20,161 36,821 16,262 213,066

30% SLOPE AND BELOW

Sustainable Forest Management 642 1,917 2,099 577 1,183 111 6,529

commercial Plantations with Community Participation 158 2,822 638 2,325 4,049 12,468 22,459

Smallholder Agroforestry [Forestland] 2,645 7,738 10,446 3,664 8,791 11,556 44,839

Other Categories: conservation farming, organic

farming and infrastructure improvement 14,245 9,604 32,214 19,092 33,271 35,005 143,431

Other Categories: conservation farming, agroforestry

extension/demonstration 4,108 6,615 12,857 6,764 10,486 8,347 49,177

Other Categories: Includes inland waters, marshlands,

mangroves, barren lands, settlements ‐ ‐ ‐ 2 221 147 371

Sub Total 21,797 28,696 58,254 32,424 58,001 67,634 266,805

Total 50,957 65,007 132,605 52,585 94,821 83,896 479,871

Appendix 1

140

Table A1.30 continued….(Chico) Management regime By Watershed

Bauko Tabuk Conner Tuao Balbalan Lubuagan Bontoc

Barlig‐

tanidan TOTAL

ABOVE 30% SLOPE


Reinforced protection of conservation and protected are 10,379 264 20,230 1,708 36,145 25,119 13,983 8,862 116,691

Reforestation/ Afforestation ‐ 2,393 6,256 10,009 ‐ ‐ 268 8 18,934

Assisted Natural Regeneration 11,897 12,293 20,158 1,525 30,791 39,808 19,924 23,560 159,957

Smallholder Agroforestry or Other Appropriate Liveliho 890 5,337 642 4,039 2,442 1,973 512 494 16,329

Sub Total 23,167 20,288 47,286 17,281 69,378 66,900 34,687 32,925 311,912

30% SLOPE AND BELOW ‐

Sustainable Forest Management 3,094 107 679 607 2,932 1,292 3,333 1,134 13,179

commercial Plantations with Community Participation 2,851 19,505 7,426 14,324 4,597 4,446 2,806 1,526 57,482

Smallholder Agroforestry [Forestland] 261 1,562 ‐ 7,053 611 ‐ 57 ‐ 9,545

Other Categories: conservation farming, organic

farming and infrastructure improvement 474 15,375 1,329 34,738 47 41 290 1 52,295

Other Categories: conservation farming, agroforestry

extension/demonstration 225 3,702 128 5,589 108 244 ‐ ‐ 9,997

Other Categories: Includes inland waters, marshlands,

mangroves, barren lands, settlements 39 ‐ 0 90 ‐ ‐ 14 ‐ 143

Sub Total 6,944 40,252 9,562 62,400 8,297 6,024 6,501 2,661 142,641

Total 30,111 60,539 56,848 79,681 77,675 72,924 41,188 35,586 454,553

Appendix 1

141

Table A1.30 .continued….(Wahig-Inabanga)

Management regimes for WAHIG INBANGA By Watershed

Dagohoy Danao Inabanga

Wahig-Pamaksalan Total

ABOVE 30% SLOPEConservation and Protection of Natural ForestsReinforced protection of conservation and protected areas 2,100 3,706 150 696 6,652

Reforestation/ Afforestation 4 1,841 ‐ 391 2,236

Assisted Natural Regeneration 693 2,142 787 2,202 5,825

Smallholder Agroforestry or Other Appropriate Livelihood [A&D] 1,934 897 3,094 1,183 7,108

Sub Total 4,731 8,586 4,031 4,472

30% SLOPE AND BELOW ‐

Sustainable Forest Management 382 ‐ ‐ 900 1,282

commercial Plantations with Community Participation 135 598 86 215 1,035

Smallholder Agroforestry [Forestland] 402 1,307 610 355 2,675

Other Categories: conservation farming, organic farming and infrastructure improvement 15,563 1,904 7,309 6,293 31,069

extension/demonstration 411 943 1,381 1,654 4,389

Other Categories: Includes inland waters, marshlands, mangroves, barren lands, settlements 13 ‐ 510 ‐ 523

Sub Total 16,906 4,753 9,897 9,417

Total 21,637 13,339 13,928 13,889 62,793

Appendix 1

142

Table A1.30 continued….(Lake Lanao) Management regime By Watershed

WEST SubProj

BUBONG SubProj

MALAIG SubProj

TARAKA-GATA

SubProj

SAGUIRAN-MARAWI SubProj

TOTAL

ABOVE 30% SLOPEConservation and Protection of Natural ForestsReinforced protection of conservation and protected areas 998 747 2,454 7,735 44 11,979 Reforestation/ Afforestation - - 1,709 33 - 1,742 Assisted Natural Regeneration 705 412 1,777 4,054 22 6,971 Smallholder Agroforestry or Other Appropriate Livelihood [A&D] 1,489 - 70 - 370 1,930 Sub Total 3,193 1,159 6,011 11,823 437 22,622 30% SLOPE AND BELOWSustainable Forest Management 435 12,230 18,815 28,911 1,122 61,513 commercial Plantations with Community Participation - - 2,340 2,708 220 5,268 Smallholder Agroforestry [Forestland] 1,256 1,033 7,574 1,089 5,018 15,970

Other Categories: conservation farming, organic farming and infrastructure improvement 10,426 4,595 665 9,066 6,327 31,078 Other Categories: conservation farming, agroforestry extension/demonstration 2,187 518 - 856 981 4,543 Other Categories: Includes inland waters, marshlands, mangroves, barren lands, settlements - 11 - 336 - 347 Sub Total 14,303 18,387 29,393 42,966 13,669 118,718 Total 17,496 19,546 35,403 54,789 14,106 141,339

B. Participatory GIS-based land capability classification, land use suitability analysis and zoning 1. Process of Participatory GIS-based Land Capability Classification, Land Use Suitability Analysis and Zoning

213. The process that was followed in the preparation of the feasibility study will also be the same process that will be followed during project implementation. During implementation, however, a more detailed study (Figure A1.3) will be undertaken for each of the 23 component watersheds. While part I depended on secondary data, part II will make use of primary data derived from interpretation of the most recent satellite images, ground truthing and participatory community-mapping. The results of part I will be the basic input to part II. As described in Part I of this report, the process involves data encoding and processing, data analysis and modeling, and data output and display. It is expected that local people should participate in the whole process. The degree of community participation would depend on the capability of the project to make accessible to the local people the GIS tools used. Thus, the project should complement the GIS with other methodologies to generate participation on the level of: information sharing, consultation and decision making.

Appendix 1

143

Figure A1.3 Analytical procedure for Participatory GIS-based land capability classification, land use suitability analysis and zoning

2. Data Encoding and Processing:

214. During data encoding and processing, the data produced during the preparation of the feasibility study (F/S) will form the baseline for each of the 23 component watersheds. This baseline will be updated and refined with the results of the resource assessment which will be carried out during the first two years of Project implementation. Resource assessment will include acquisition and interpretation of satellite images and groundtruthing. The groundtruthing activities will have the participation of community stakeholders. The National Integrated Protected Areas Programme (NIPAP) of the Protected Areas and Wildlife Bureau (PAWB), DENR had experience in participatory processes and techniques by using the Participatory 3-Dimensional Modelling for natural resource management41. INREMP can adopt the lessons learned from NIPAP and apply them in the groundtruthing stage

. 215. Image analysis and groundtruthing will be conducted to produce land cover maps showing forest areas (classified in terms of closed/open canopy cover and coniferous/ broadleaved species), shrublands, grasslands, barelands, water bodies and river networks, builtup areas/settlements, roads and other infrastructure, and agriculture, among others, . The baseline maps will also include topography, geology, slope, soils, administrative boundaries (down to barangay), legal land classification, tenure, socio-economic features of the area. Individual GIS databases for each of the 23 component watersheds will be constructed corresponding to the baseline maps. 41 RAMBALDI G., CALLOSA J. 2000. Manual on Participatory3-Dimensional Modeling for Natural Resource Management.Essentials of Protected Area Management in the Philippines, Vol. 7NIPAP, PAWB-DENR, Philippines.

Appendix 1

144

3. Data Analysis and Modeling:

216. For GIS analysis and modeling, land capability classification and land use suitability analysis will be conducted. Land capability classification42 involves determination of the physical capacity of a location to support a specific land use, which will result in minimum adverse impacts and will also take into account susceptibility of the sites to accelerated soil erosion. This susceptibility can be expressed in terms of the Erosion Potential Estimate43 (EPE). EPE is a function of current biophysical and climatic parameters like rainfall, soil properties, topography, vegetation cover and land management practices. In equation form:

EPE = modified version of Wischmeier’s universal soil loss equation with localized (i.e. Philippine conditions) coefficients; in tons/ha/yr

= R x K x LS x VM where R = rainfall erosivity K = soil erodibility LS = topographic factor VM = vegetation management

R or rainfall erosivity is the potential ability of rain to cause soil erosion under a given set of conditions. According to Wischmeier (1975), amount and duration of rainfall are important considerations. Specifically, a 30-minuute rainfall (I30) is used to estimate rainfall or storm erosivity based on all significant rainfall events (from 25 mm (David, 1988) or up to 127 mm (Brooks, et al., 1992)). In the absence of rainfall duration, Bayotlang (1986) developed a parabolic mathematical equation from 41 sites in the Philippines. K or soil erodibility is defined in terms of soil pH, organic matter content and percentage amounts of Sand, silt and Clay. The topographic factor or LS can be derived from slope steepness and slope length. The basic assumption is that the steeper the slope, the more susceptible is the area to soil erosion. The susceptibility is aggravated by slope length where longer lengths accelerate soil erosion.

Vegetation management (VM) factor is a combination of vegetation cover and conservation practice. The value is derived from approximations of percentages of canopy cover and ground cover. Values range from 0.001 to 0.45. The VM values were derived from empirical studies done in Mt Makiling, Philippines. Other values can be derived from Brooks, et al., et al (1992) showing the relationships of forest canopy cover, ground cover and fine roots in the topsoil.

217. Furthermore, land capability is derived from an EPE value of 12.544 where any value above this threshold leads to lowered agricultural productivity. Below this value, soil erosion rates are considered acceptable. GIS maps of land capability classification will be produced for each of the 23 component watersheds.

218. On the other hand, land use suitability analysis involves the determination of a particular location for a specific land use. For instance, a land unit may be suitable to more than one land 42 Anderson, 1987 43 Based on the report of the Forest Boundary Delineation Study of DENR’s Land Administration Management Programme (LAMP); see also Bantayan, 2006. 44 According to Brooks, et al. (1992), the maximum rate of soil erosion that will still permit a high level of productivity

to be sustained economically and ecologically usually fall within the range of 2.5 to 12.5 tons•ha-1•yr-1.

Appendix 1

145

use alternative. The analysis will produce a ranked order of suitabilities for the land units. GIS maps of land use suitability will be produced for the 23 component watersheds.

219. The land capability maps and the land use suitability maps will be used to generate land use zoning for the 23 component watersheds. The zoning exercises will be done thru participatory community mapping. Community mapping engenders the participation of stakeholders and allows them to explicitly visualize onto the maps their experiences and perceptions on what is the best land use zoning for the area. GIS and associated data analysis will be used to map the land use zones for the 23 component watersheds.

220. INREM Project has to take note and to respect local knowledge on resource management. While using scientific knowledge generated from the GIS exercise and the use of other scientific tools like EPE, the project which is working in generally IP areas, has to consider indigenous spatial knowledge (ISK) which has proven to be effective for generations in land capability classification and management. The Cordillera Highland Agricultural Resource Management Project has documented indigenous NRM practices in the Cordilleras which can be applied to INREM. INREM has to be cautious and sensitive in dealing with ISK which might be considered more accurate because it embodies generations of practical knowledge and is working in interactive, holistic systems.45

221. In all the activities relating to land capability classification, land suitability analysis and land use zoning, GIS will play an important role in data organization, processing, analysis and layout. Monitoring of the land use zones will include establishment of a GIS based decision support system to monitor implementation at various levels of management. This is discussed in detail in Part III of this report.

45 McCall 2004.

Appendix 1

146

D. GIS-based Monitoring of the Project Area

1. The River Basin Management Information, Monitoring and Decision Support System

222. In 2000, a comprehensive database system (known as SusDev database or SUSDEVDb) for development planning, field operations and monitoring at the watershed level was developed for DENR by the team of Dr. Adolfo V. Revilla, Jr.46 This was later enhanced in a GIS database (or geodatabase) and applied to the forest boundary delineation study in 200247 and produced the forest boundary database (FBDb). The FBDb divides the Philippines into 25-ha grids and fully describes each grid in terms of site descriptors as: location, physical, hydrometeorology, environmental, biological and socio-economic description. In 2006, the geodatabase system was further refined to provide detailed spatial units of regular-shaped polygons down to 100 square meters48. Hierarchically, the polygons are grid, quadrant, cell, square and granule with the sizes equivalent to 100 ha, 25 ha, 1 ha, 0.04 ha, and 0.01 ha49, respectively.

223. INREMP proposes to use GIS in monitoring the resulting land use zones consistent with the concept of the forest boundary database. Thus, the geodatabase shall be known henceforth as the Upper River Basin database or URBDb. The methodology to be adopted forms an integral part of the River Basin Database Development for Monitoring and Evaluation.

224. The DDM&E will provide a unified and standard geodatabase design containing the general characteristics of the natural resources and environment in the project area (URBs) (e.g. land cover, land use, settlement, agricultural production areas, infrastructure, etc.). Every polygon in the geodatabase is unique and defined by the following:

Grid_code is a 3-digit number from 00150 up to a possible and maximum 999 Quadrant_code refers to A, B, C or D quadrant51. Each grid is divided into quadrants Cell_code refers to a 2-digit number where the first digit corresponds to the row

position52 and the second digit corresponds to the column position53. Each quadrant contains 25 cells

Square_code refers to a 2-digit number where the first digit corresponds to the row position54 and the second digit corresponds to the column position55. Each cell contains 25 squares

Granule_code refers to a, b, c or d section56. Each square is divided into four (4) granules.

46 Former professor and dean, UPLB College of Forestry and Natural Resources. 47 See Annex A. SUSDEV database system description. 48 After Bantayan, 2006. 49 Bantayan, et al. 2008. 50 Counting starts from the southwesternmost part of the Philippine territory moving to the right and returning leftward

in an S-manner until the northeasternmost part of the Philippine territory is reached. Further, the coding is divided into three major parts: Luzon, Visayas, and Mindanao.

51 Clockwise starting from the lower left quadrant. 52 Row designation is bottom up. 53 Column designation is left to right. 54 Similar to row designation for cells. 55 Similar to column designation for cells. 56 Similar to quadrant.

Appendix 1

147

225. The site descriptors in the URBDb are: location parameters, physical description, hydro-meteorology; environmental description, biological description, and socio-economic description.

Location descriptor Refers to Administrative Boundaries: Region, District, Province, Municipality/City, Barangay; Point Locator, Line/Polygon Locators, NAMRIA Map Sheet Number Physical description Refers to natural features such as slope, elevation, aspect, geology, soils and man-made infrastructure such as roads, bridges, buildings Hydrometeorology Refers to meteorological data such as rainfall, temperature, and humidity and hydrologic data like water sources, discharge rates, water quality Environmental description This category includes presence of environmental hazards (e.g. landslide, flood, earthquake, seismicity, pollution), presence of threatened, endangered and vanishing species, and the presence of encroachment on forest territory. Biological description Refers to vegetative description (e.g. forest cover, shrubs, grassland) or biodiversity importance value Socio-economic description This data category includes land use description (i.e. agriculture, industry, etc.), economic data, and social data about included and adjacent human settlements, legal land classification, tenure (Forest, IPRAS, NIPAS, A&D), land use, boundary conflicts, among others

2. Implementation Arrangements

226. The DDM&E will be consistent with the INREM project implementation arrangement. It will be placed at the monitoring and evaluation (M&E) units at each level (i.e. NPCO M&E, DENR RO M&E, PPMO M&E, MUNICIPAL M&E). Thus, the infrastructure (Figure A1.4) for the DDM&E will be a fully-equipped central operations center at the NPCO office, 4 nodes at the DENR ROs (i.e. CAR, Region 7, ARMM, and Region 10), 4 nodes at the PPMO (i.e. Mountain Province, Bohol, Lanao del Sur and Bukidnon), and 23 nodes at the component watershed clusters, located in the municipal office which has the greater jurisdiction over that watershed.

Appendix 1

148

Figure A1.4 DDM&E infrastructure

227. Municipal level M&E units will tap community-based organizations, people’s organizations or barangay councils to participate in the operation of the DDME. Community-based DDME committees with membership between 3-5 people will be organized. Their main function is to assist the municipal M&E in the collection, validation and communication of data/ information. This community-based DDME

228. The benefits of an operational DDM&E are many. These include:

R10M&E

ARMMM&E

R7M&E

CARM&E

NPCOPPMO Bukidnon

SWS

SWS

SWS

SWS

SWS

SWS

SWS

SWS

SWS

SWS

SWS

SWS

SWS

SWS

SWS

SWS

SWS

SWS

SWS

SWS

SWS

PPMOMt

Province

PPMOLanao del

Sur

PPMO Bohol

Appendix 1

149

A comprehensively characterized river basin using a standard and unified database and mapping system

The ability to communicate with stakeholders (i.e. decision-makers, businessmen, farmers, researchers, scientists, among others)

The ability to accommodate data in different spatial dimensions – i.e. sattelite images, soil analysis, biodiversity surveys, cadastal surveys, irrigation service areas.

The ability to predict the impact of a land use interventions on

o biodiversity

o hazards, risks and vulnerabilities due to climate change

o socio-cultural aspects like ancestral domain, historical significance

Model land capability and land use potential for mining, agriculture, commercial forestry, and other extractive uses

Model the social impact brought about by migration, displacement of existing settlers, indirect disturbance of nearby areas

Model the impact of proposed land uses in terms of soil erosion, introduction of invasive alien species (flora and fauna), among others.

229. Other benefits of the DDM&E are also listed in the NSDI57 plan of NAMRIA58. These include:

Check land ownership e.g. for the preparation of the environmental protection decision

of a coastline. The authority retrieves the information with a single query saving a week of work in the archives59.

Model via visualization and spatial analysis tools the environmental impact analysis of e.g. a hydroelectric dam project.

Estimate the total value of agriculture and other property losses after a strong typhoon and flooding event in a rural district as geographic information on farms and properties are integrated and fused with PAGASA information on the typhoon, facilitating faster relief and rehabilitation activities and resource provisioning.

Equip the agriculture extension worker with informationi to provide advise to farmer customers on best crops to plant in a season, after accessing the agriculture information database that provides a visualization of technical information related to farm lots in his service area, as well as market conditions around the country.

View cadastral records of the DENR and match these with the Land Titles Records of the Land Registration Authority (LRA), making possible the speedy review and examination of land transactions.

Allow a municipal land use planner regularly update the municipal socio-economic and physical profile of his town in a visual way by being able to link transactional and statistical data to maps of the municipality that is available in the NSDI clearinghouse.

Allow a real estate buyer connect to the NSDI clearinghouse node on land parcels to search for property that is for sale in town A in Barangay X giving search parameters such as distance to the city/municipal hall or church, within the Central District, along a national road and finds out the market value of that property, its assessed value, owner,

57 National Spatial Data Infrastructure. 58 National Mapping and Resources Information Authority.

Appendix 1

150

and other legal documents on ownership and survey documentation. Considering the need for a comprehensive design including the hardware, software and technical staff requirements, the most feasible option is to house the central operations office (NPCO) with NAMRIA. Also, preparations are underway to install a NAMRIA-wide spatial data infrastructure (nSDI) with support from AusAID60. This is a prelude to the establishment of the NSDI that has been on hold for 10 years due to lack of funding. AusAID is expected to complete the preparation of a strategic and implementation plan for NAMRIA’s spatial data infrastructure by June 2010.

3. Materials and Equipment

230. The materials and equipment required to install the M&E system thru the DDM&E consist of satellite images, hardware and software for remote sensing and GIS. The hardware include desktop computers, laptops, satellite-based navigation systems (GPS) receivers, handheld GIS/GPS units, printers, scanners. The software include remote sensing and desktop GIS including proprietary operating systems; antivirus, database management; application software for text editing, spreadsheets, presentations, graphics; among others. These materials and equipment should complement what can be found at the existing M&E units at DENR and at the LGUs.

231. There should be at least three sets of satellite images during the implementation period of 7 years, that is, every three years, a new set of satellite images should be acquired and processed to monitor change in land use and land cover specifically compliance with the land use zoning. The first set (ALOS-PALSAR, 2008 series) is already available at NAMRIA and undergoing processing. However, these need to be complemented with high resolution satellite images covering the Project area and may cost up to P6 million pesos. The next two sets, during the 4th and 7th years are estimated to cost P4 million pesos each61 for a total of P14 million pesos for the cost of satellite images. When necessary, other satellite images like SPOT5 may be used to allow for the use of existing models for canopy density classification (e.g. Forest Canopy Density software).

232. The cost for hardware, software at the DDM&E central operations center is estimated at P2.11 million. Two units of workstations (desktop PCs) will be installed with appropriate remote sensing software, storage media and other peripherals (Table A1.31). Other requirements include desktop PCs (2 units), laptops (2 units), GPS receivers (4 units), A3 scanner (1 unit), A3 printer (1 unit), and supplies worth P30,000/year.

59 May be a mix of digital and analog files. 60 Australian Agency for International Development. 61 Based on discussions with NAMRIA technical staff led by For. Jo Cabanayan.

Appendix 1

151

Table A1.31 Estimated cost for materials and equipment for the DDM&E central operations center

Specifications Cost (PhP) Advanced GIS software for editing, mapping, data integration and analysis; Database management software [MSSQL]; Workstation for high-end computing bundled with licensed operating system, application softwares for text editing, spreadsheet, graphics, presentations, antivirus bundled with branded PC workstation

900,000

Remote sensing software: reads imagery types gathered from numerous satellite and airborne sensors; provides automated pre-processing tools; includes a comprehensive suite of data analysis tools bundled with branded PC workstation

600,000

Desktop PC for data processing and encoding (2 units) 80,000 Desktop PC for field data processing and encoding (2 units) 120,000 GPS receivers (4 untis) 120,000 A3 scanner 40,000 A3 printer 40,000 Supplies (P30,000/yr X 7 yrs) 210,000 Total 2,110,000 Each of the DDM&E node (4 ROs + 4 PPMOs + 23 component watersheds) should have the materials and equipment, as indicated in Table 20. Table A1.32 Estimated cost for materials and equipment for 30 DDM&Enodes Specifications Unit Cost

(Php) Total Cost (Php)

Workstation for high-end computing bundled with licensed operating system, application softwares for text editing, spreadsheet, graphics, presentations, antivirus; desktop GIS software for mapping, data integration and analysis

150,000 3,450,000

GPS receivers 30,000 930,000

Mobile GIS/GPS 250,000 7,750,000

A3 scanner 40,000 1,240,000

A3 colour printer 40,000 1,240,000

Supplies (P30,000/yr X 7 yrs) 210,000 6,510,000

Total 21,120,000

Appendix 1

152

The total cost of P37.23 Million for the DDM&E is summarized below: Cost of satellite images Php 14 Million Cost of DDM&E central operations center 2.11 Million Cost of 30 DDM&E nodes 21.12 Million

The technical assistance required to construct and operationalize the DDM&E is discussed in section 9 of this report. 4. Capacity Building and Training

i. Capacity Constraints

233. For resource assessment, there will be three major modules for capacity building. These include: Module I on basic and advanced GIS for resource assessment; biodiversity conservation and watershed management; Module II on land use planning for LGUs specifically for 10 provinces; and Module III on community mapping delivered to 23 watersheds.

234. The participants will come from the municipalities where the component watersheds are located. These participants are not expected to have sufficient knowledge on these modules especially when the topics are contextualized along the concepts and principles of integrated natural resources and environmental management. Planning officers of LGUs are usually engineers who do not have sufficient background on forestry, watershed management, biodiversity and integrated ecosystem management. Description of the Modules

235. The first module on GIS focuses on concepts, principles but more importantly on applications to resource management. Resource managers should be aware of this technology and integrate its use in day-to-day management. Moreover, resource managers need to have an operational understanding of watershed management and biodiversity conservation in order to make informed decisions. For the second module, the focus will be on the principles for sound planning. The suitability of a certain land use alternative is based on important environmental, technical and social factors. Knowledge on methods and techniques to generate land capability classes and land use suitability categories is vital to sustainable management. During this module, the factors that lead to accelerated soil erosion, especially inappropriate land uses will be discussed.

236. The third module is on community mapping. Communities should be recognized for their experiences in managing their environment. Their mental maps are important inputs to community mapping. Thus, a combination of GIS and land use planning principles, and implemented in a community mapping exercise will result to sustainable and practicable land use zones.

ii. Details of the training modules

237. Details of the indicative training modules62 are shown below:

62 The 3 modules will be elaborated during project implementation. They serve only as guide.

Appendix 1

153

Module I: Basic and advanced GIS and applications to environment and natural resources assessment, monitoring and evaluation Objectives: At the end of the training, the participants are expected to:

Understand the concepts and principles of geographic information system (GIS); spatial analysis for environment and natural resources;

Apply the concept of watershed management and techniques for characterization;

Conduct rapid assessment techniques for flora and fauna; evaluation of biodiversity conservation values of flora and fauna

Apply the concepts and principles of satellite-based positioning systems (i.e. GPS); field inventory techniques using GPS

Table A1.33 Details of module I Basic and advanced GIS and applications to environment and natural resources assessment, monitoring and evaluation

No. of Participants

Venue Duration Cost of Training Materials

Cost for Venue

Cost for trainor/s

Unit cost of training

Total for 23 watersheds

15 to 30 pax per

component watershed

School PC lab/ Internet Café1

5 days 100,0002 15,0003 157,5004 272,500 6,160,000

Note: 1 An internet café will be rented for the duration of the training since the desktop computers will be readily available. It is not expected that an LGU will have a computer center with at least 15 PCs; 2 A training manual should be prepared beforehand for distribution during the training. Technical assistance will be required to handle this; 3 Cost of rental of 15 PCs for 5 days at P300/day/PC; 4 Cost of 3 trainors for the 5-day training Total number of participants is 660

Module II: Landuse Planning (for LGUs) Objectives: At the end of the training, the participants are expected to:

Understand the principles of land evaluation, land capability classification and land use suitability assessment;

Table A1.34 Details of module II Landuse Planning No. of Participants

Venue Duration Cost of Training Materials

Cost for Venue

Cost for trainor/s



15 to 30 pax per watershed

Province or Municipality

5 days 100,000 - 157,500 257,500 6,000,000

Note: A training manual should be prepared beforehand for distribution during the training. Technical assistance will be required to handle this; Cost of 3 trainors for the 5-day training is P157,500; Total number of participants is 660

Module III: Participatory Community Mapping and Land use Zoning (watershed level) Objective: At the end of the training, the participants are expected to appreciate

Appendix 1

154

participatory techniques for resource assessment, mapping and land use zoning

Table A1.35. Details of module III Community Mapping and Land use Zoning

No. of Participants

Venue Duration

Cost of Training Materials

Cost for

Venue

Cost for trainor/s



15 to 30 pax per component watershed

Province or Municipality

5 days

100,000 - 157,500 257,500 8,910,000

The summary of the cost is shown below:

Table A1.36 Estimated cost for capacity building

Module I: Basic & Advanced GIS, GIS-assisted Resource Assessment, Biodiversity Conservation, Watershed Management

6,160,000

Module II: Land use planning 6,000,000 Module III: Community mapping 8,910,000 Total 20,735,000

5. Consulting Services

238. Expert technical assistance will be necessary to ensure the design, installation and smooth operation of the DDM&Eat the URB COC and the other 30 nodes and undertake land capability classification, land use assessment and zoning of the Project area. This requires the services of a Geographic Information Systems/Mapping/Modeling and Decision Support System Specialist.

239. Scope of Work: In close consultation with the team leader and other members of the team, the Geographic Information Systems/Mapping/Modeling and Decision Support System Specialist will undertake the tasks below:

240. Detailed Tasks:

a) Review and analyze data and information produced for the Project area covering the river basins of Chico in Northern Luzon, Wahig-Inabanga in Bohol province, Upper Bukidnon and Lake Lanao in Mindanao. Focus should be on the documents and GIS files produced during project preparation.

b) Collect secondary and primary data and information on the biophysical, socio-economic and political characteristics of the Project area, including but not limited to land cover, land use, watersheds and component watersheds, administrative boundaries down to barangay level, social and economic data including settlements, agriculture and other social infrastructure, climate data including hazards, risks and vulnerabilities, rainfall, geology and soil characteristics, topography and slope, biodiversity and other environmental parameters, proclamations (in map form) affecting the area including but not limited to watershed reserves, heritage sites, natural geologic monument, NIPAS, CADC/CADT, mining permits and other relevant policies.

c) Lead in the design, development and operationalization of the DDM&E taking into consideration the initiatives undertaken by NAMRIA in the establishment of the national spatial data infrastructure. Study the advantages and disadvantages of NAMRIA hosting

Appendix 1

155

the DDM&E looking into its internal staff capacity and hardware and software infrastructure.

d) Oversee the acquisition of satellite images, digital image processing, groundtruthing, and interpretation towards the production of the vegetation and land cover data for the project area. Processing should focus on delineating canopy cover of forests in percentages using acceptable algorithms for canopy cover mapping. To this end, cause the development of a system for canopy cover mapping to improve existing methodologies and produce outputs useful for climate change studies and carbon stock assessment

e) Prepare and produce land capability and land use suitability maps. Undertake GIS modeling to produce soil erosion susceptibility maps as input to land use suitability mapping.

f) Conduct capacity building sessions on basic and advanced GIS, at each of the 31 nodes. To this end, produce training manuals for delivery and dissemination to the identified participants.

g) Assist the Team Leader in any other tasks relevant to the expertise of the consultant including preparing various reports and other documents required by ADB and concerned government institutions

241. Required level of input is 4 PM/year for 3 years. The Geographic Information Systems/Mapping/Modeling and Decision Support System Specialist should have at least a Masters Degree in related field (remote sensing and GIS or information technology/computer science/MIS) with at least 10 years of experience in planning, designing/developing and implementation of GIS including geodatabases with specific applications in agriculture, forestry and natural resource management. Background in forestry or natural resources management is an advantage.

Appendix 1

156

References

Anderson, Larz T. 1987. Seven methods for calculating land capability/suitability. American

Planning Association. Chicago. pp. 20. __________. Forest Boundary Delineation Study of DENR’s Land Administration Management

Programme (LAMP) Bantayan, Nathaniel C. 2006. GIS in the Philippines – Principles and Applications in Forestry

and Natural Resources. PARRFI and AKECU-AKECOP. Los Banos. 173 p. Bantayan, N.C., E.R.G. Abraham, and E.S. Fernando. 2008. Geodatabase Development for

Forest Restoration and Biodiversity Conservation in the Mt. Makiling Forest Reserve. In: The Philippine Agricultural Scientist Vol. 91 No. 4 (December 2008).

Bantayan, Nathaniel C. 1997. GIS-based estimation of soil loss. In: Pterocarpus. Bayotlang, EL. 1986. Evaluation of erosivity, erodibility and crop management factors of the

universal soil loss equation. PhD thesis (unpublished), University of the Philippines. McCall, Michael K, Can Participatory-GIS Strengthen Local-Level Spatial Planning?

Suggestions for Better Practice? Suggestions for Better Practice, A paper prepared for GISDECO 2004 Sudaii, Johor, Malysia, 10-13 May 2004

Wischmeier. 1975. Estimating the soil loss equation's cover and management factor for undisturbed areas. Paper read at Present and ProspectiveTechnology for Predicting Sediment Yields and Sources, at Oxford, Mississippi November 28-30, 1972

http://www.eorc.jaxa.jp/ALOS/en/about/about_index.htm http://srtm.csi.cgiar.org/

Appendix 1

157

VI. Conservation Farming

A. Introduction

242. Watershed degradation in the upper river basins (URBs), with its consequent impacts on agricultural productivity reflects a vicious cycle of poverty63. In rural areas where economic production is largely based on land and natural resources, poverty and environmental degradation form a vicious cycle. From 2000 to 200464, the production of both rice and corn, which accounts for more than half of the Philippine’s planted area, rose at an annual rate of 3.6 and 3.8% respectively. Despite an overall growth in gross value, the share of agriculture to the national economy continued its long-term decline. Agriculture is more and more commonly being practiced on marginal lands using environmentally unsustainable land use practices, often resulting in alarming rates of soil erosion. About 16.3 million ha of the country’s total land area of 30 million ha have slopes greater than 18% (BSWM, 1993). Approximately 13.63 million ha of land in the country are classified as moderately and severely eroded, while about 7.25 million ha of land with potential for agricultural development have soils with relatively low fertility (Concepción, 1995).

243. Similar to watersheds, the agriculture sector continues to be associated with poverty. Significant poverty reduction in rural areas remains a challenge unless there are substantial changes in farming methods, and these changes in turn, will depend on similarly fundamental changes in the ways that farming is promoted and regulated65.

B. URB Stakeholders and Farming Communities

1. INREMP Stakeholders

244. The ADB Handbook for Social Assessment served as guide for the INREMP social assessment (SA), which was participatory, consultative and transparent in all facets of said undertaking. Multi-stakeholder consultations were conducted in Luzon, Visayas, and Mindanao (February 2009) to officially commence the stakeholder assessment. Three rounds of site visits and consultations in the four URBs were conducted from region to province, municipal and village levels.

245. Key Institutional Stakeholders. The multi-stakeholder consultations enabled the identification of URB stakeholders. Institutional stakeholders for INREMP are (i) DENR, (ii) NCIP, (iii) Local Government Units, (iv) Department of Agriculture-National Irrigation Administration (DA-NIA), (v) Department of Agrarian Reform (DAR), and the National Power Corporation (NPC).

246. Perceptions on Performance of Institutions. On the average, the highest perceived effectiveness in delivering innovations is largely attributed to the institutions’ clear understanding of their well-defined missions and mandates. Among the partner institutions, DA has the highest rating and the DENR obtained the lowest rating. Although DA was rated as the partner institution with the clearest understanding of missions and mandate, it was also rated as the one with the least defined responsibilities. Meanwhile, DENR was identified to be the institution with the most defined responsibilities and most aware of public accountability. Finally, in terms of

63

ADB. 2008. Country Environmental Analysis (draft) 2008. 64

Bureau of Agricultural Statistics, 2006. 65

DO Manzanilla, et. Al., Conservation Agriculture in the Philippines: Perspective, RD&E programs, Issues, Gaps and Potentials. 2007.

Appendix 1

158

interaction with other national and local government units, private entities, and the civil society, the highest rating was given to DENR. The lowest rating was given to NIA.

247. Institutionally, LGUs are consistently perceived to be at the forefront of natural resources and environmental management, over and above the DENR across all sites. With comparatively low ratings, Project measures have to be crafted to give credence to the DENR mandate as regards natural resource management.

248. Vulnerable Stakeholders. The Social Assessment was able to identify vulnerable stakeholders within the INREMP URBs: indigenous peoples (IPs), women, poor farmers, internally displaced persons of Muslim Mindanao, and affected persons brought about by involuntary resettlement.

249. Such stakeholder types require the design of a special participation plan that will enable them to access project benefits. Stakeholders with high influence and low importance may not be the targets of the project but may oppose interventions. They will need, as appropriate, to be kept informed and their views acknowledged in order to gain support and to avoid disruption or conflict.

2. URB Farmers: Characteristics, Issues and Concerns

250. The farming communities described below are the result of a Social Assessment across the INREMP URBs, sampled by watershed section, upstream, midstream, and downstream. These sections all within upper portions of INREMP river basins thus even those in downstream communities strictly still fall within the upland category but are located closer to the delta or confluence of a major river system, much closer to lowland ecosystems. Table A1.37 shows the location of the sampled farming communities.

Table A1.37 Farming Communities under Social Assessment

URB Upstream Communities Midstream

Communities Downstream Communities

Chico River Basin 1. Monamon Sur, Bauko, Mt. Province 2. Ahin, Tinoc, Ifugao 3. Lamayan, Buguias, Benguet

Tinglayan, Kalinga

Tabuk, Kalinga

Lake Lanao River Basin

Bubong, Lanao del Sur Taraka, Lanao del Sur

Marawi City, Lanao del Sur

Upper Bukidnon River Basin

Lantapan, Bukidnon Valencia City, Bukidnon

Wahig-Inabanga River Basin

Pilar and Sierra Bullones, Bohol

Danao, Bohol Inabanga, Bohol

251. Highland Upstream Farmers. Upstream farming households on the average have eight household members, with average annual income of PhP60,000. Average size of farm lots amongst upland farmers is 2.1 ha planted to mixed and alternate crops. These farm lots generally are owned, followed by leasehold and as sharecroppers, though ownership is mostly in terms of tax declarations or ADs. These areas generally are in forest reserves or protected areas and thus cannot be titled.

Appendix 1

159

252. Across all sites, dominant crops based on production are vegetable crops, followed by upland rice, and corn. The highest production is sub-temperate vegetables with approximately 20 tons per annum and average parcel for production is one hectare. The dominant primary crop is rice, followed by corn. Other crops are vegetables, banana and cut flowers. Financial services for agricultural production mostly are through relatives and small formal lending institutions since these services are hard to come by in upstream areas. Farm suppliers and middlemen proliferate in Chico upstream areas.

253. Most cited problems are mostly on forest denudation and poor rural infrastructure. Forest denudation is greatly attributed to poverty manifested through illegal logging/timber poaching/indiscriminate cutting of trees, tree cutting for charcoal making, banana plantation, forest fires, loose soil due to frequent ploughing, and small scale mining. Poor rural infrastructure, on the other hand, is deemed inevitable due to the topography, a major cause for low production/income, limited access to government services, credit and marketing.

254. Midstream farming households on the average have 6.7 household members, with average annual income of PhP43,333.00, average size of farm lots amongst upland farmers is 1.3 ha planted to mixed and alternate crops. These farm lots generally are leasehold except for Chico which are within ADs. All these attributes are lower than those from highland-upland farming households.

255. Across all sites, dominant crops based on production are rice and vegetables. Highest production is vegetables with 5 MT per annum, followed by rice with 4.7 MT and corn (3 MT). Financial services for agricultural production mostly are through relatives and small formal lending institutions. In Chico however, there are no such services, formal or informal in midstream areas (Tinglayan, Kalinga).

256. Midstream farming households cite forest denudation, poor rural infrastructure, and heavy use of chemicals for farming to be paramount problems affecting farm productivity. With respect to chemical use, these are believed to result to barren soil, polluted water system, and destruction of living resources like fresh water fish and shrimps affecting livelihood activities.

257. URB Midstream Farmers - average annual income of PhP43,333.00, average size of farm lots amongst upland farmers is 1.3 ha planted to mixed and alternate crops. These farm lots generally are leasehold except for Chico which are within ADs. All these attributes are lower than those from highland-upland farming households.

258. Across all sites, dominant crops based on production are rice and vegetables. Highest production is vegetables with five MT per annum, followed by rice with 4.7 MT and corn (3 MT). Financial services for agricultural production mostly are through relatives and small formal lending institutions. In Chico however, there are no such services, formal or informal in midstream areas (Tinglayan, Kalinga).

259. Midstream farming households cite forest denudation, poor rural infrastructure, and heavy use of chemicals for farming to be paramount problems affecting farm productivity. With respect to chemical use, these are believed to result to barren soil, polluted water system, and destruction of living resources like fresh water fish and shrimps affecting livelihood activities.

260. URB Downstream Farmers - Downstream farming households on the average have 6.8 household members with average annual income of PhP71,250.00. Average size of farm lots amongst upland farmers is 1.4 ha planted to mixed and alternate crops. These farm lots generally are owned or leasehold and ownership is mostly in terms of tax declarations or ancestral domains. Areas generally are agricultural in terms of land use classification but still with A&D, AD, and forestlands.

Appendix 1

160

261. Across all sites, dominant crops based on production are rice and vegetables, followed by corn and forest trees. Highest production is vegetables with approximately 4.7 tons per annum followed by corn (3 tons) and rice (2.7 tons). Dominant primary crop is rice, followed by corn. Other crops are vegetables, banana and cut flowers. Financial services for agricultural production mostly are through formal lending institutions and pawnshops.

262. Downstream farming communities frequently cite erosion, poor rural infrastructure, and chemical use to be key environmental issues resulting in barren soil, polluted water system, and destruction of living resources like fresh water fish and shrimps.

263. Synthesis. Table A1.38 shows the summary characteristics of the three types of farming communities in the INREMP-URBs. Household size is greater in the upstream section of the river basin. Average income is estimated to be higher in downstream farming communities with those along midstream as having the lowest as in the case of respondents from Tinglayan, Kalinga, Taraka, Lanao del Sur and Danao, Bohol.

264. While upstream communities are more concerned about the forest denudation the most pressing issue raised by downstream farmers is soil erosion. An issue common to all three farming communities is poor rural infrastructure affecting access to social and financial services as well as markets for produce.

Table A1.38 Summary Description of Farming Communities in INREMP-URBs

Parameters Highland-Upstream Midstream Downstream HH size 8 6.7 6.8 Income PhP 60,000 PhP 43,333 PhP 71,250 Farm size 2.1 1.3 1.4 Tenure Owned, leasehold, &

sharecropper. Leasehold Owned & leasehold

Tenure modality TD66 & AD67 TD & AD A&D, TD & AD Land classification Forest lands A&D, AD, & forestlands Agricultural, A&D, AD, &

forestlands Dominant crops Sub-temperate vegetables, rice,

& corn Rice & vegetables Rice, vegetables, corn & forest

trees Production Vegetables – 20T68 Vegetables – 5T Vegetables 4.7T Financial services Relatives & small formal lending

institutions Relatives & small formal lending institutions

Formal lending institutions & pawnshops

Environmental problems Forest denudation & poor rural infrastructure

Forest denudation, poor rural infrastructure, & chemical use

Erosion, poor rural infrastructure, & chemical use

3. Local Farming Organizations within INREMP URBs

265. All farming communities assessed are replete with non-government/local/peoples’ organizations (NGO-PO), to wit: (i) Irrigators Association, (ii) White Water Rafters [operators of ecotourism], (iii) Farmers Associations, (iv) Fisher folks Associations, (v) Small scale miners Associations, (vi) IP Organizations and Provincial Consultation Body, (vii) Multi-purpose Cooperatives, (viii) Women’s Associations, (ix) NGO Groups, (x) Youth Associations, (xi) Livestock Raisers Associations, (xii) Religious Organizations, (xiii) Maranao POs, and (xiv) Out of School Youth Associations.

266. Village level analysis69 shows that INREMP would require capacitating efforts to empower vulnerable stakeholders and enable meaningful participation to natural resources management. Similarly, much has to done as regards capacitating local organizations. In IFAD-CHARM

66 Tax declared 67 Alienable and disposable 68 Tons 69 See INREMP Main Social Report.

Appendix 1

161

projects across the Cordilleras, an assessment of POs reveal that while these POs are rated low, there are good practices that can provide the impetus for INREMP partnership given more organizational strengthening. Most Reforestation POs were existent prior to CHARM and the basics in organizational management are still practiced70. The trend for these POs to access and focus on current initiatives is a manifestation for organizational longevity to better access services and benefits.

C. Opportunities for Conservation Farming, Livelihoods for the Poor

1. Conservation Farming Technologies: Menu of Options

267. Concerns on sustainable agricultural development include71: increasing soil erosion, low soil fertility due to improper land use practices, decreasing availability of farm labor, and unavailability of farm capital. The sloping agricultural land technology (SALT) is one technology developed to address said concerns. It is a diversified farming system, which can be considered agroforestry72. Rows of permanent shrubs are dispersed throughout farm lots, planted alternately to cash crops and may include trees for timber and firewood. SALT was developed in 197173 in efforts to arrest the then growing problems of environmental degradation. Salient characteristics of SALT are as follows: (i) adequately control soil erosion, (ii) help restore soil structure and fertility, (iii) be efficient in food crop production, (iv) be applicable to at least 50 percent of hillside farms, (v) be easily duplicated by upland farmers with the use of local resources and preferably without making loans, (vi) be culturally acceptable, (vii) have the small farmer as the focus and food production as the top priority, (viii) be workable in a relatively short time, (ix) require minimal labor, and (x) be economically feasible.

268. The National Agriculture and Resources Research and Development Network (NARRDN) conducted 129 projects dealing with conservation agriculture from 1990-2005. Results of the NARRDN initiatives identified gaps and weaknesses in popularizing conservation farming technologies throughout the country. These gaps are summarized by Manzanilla, et al (2007) as follows: (i) Holistic approach to assessment of package of technologies, (ii) Lack of production resources and limited labor input, (iii) Proper matching of technologies to farmers’ resource base, (iv) Establishing the profitability and other measure of benefits of conservation measures, and (v) Farmers’ participation in research and documentation of their success stories. Validation and institutionalization of indigenous technologies. Inclusion of other key players in the conservation agriculture networking: a) Conflicting roles of key people, b) Lack of incentives for the farmer-volunteers and change agents, c) Land not their own, and d) Lack of political support.

269. Based on results of all these studies, a menu of conservation farming technologies in the Philippines is made available as shown in Table A1.39.

Table A1.39 Menu of Conservation Farming Technologies

TECHNOLOGY COMMENT Contour Farming Generally classified into vegetative barriers, physical barriers, canals and soil traps,

and farming systems in sloping lands Structural produce fewer amounts of surface runoff and sedimentation than contour

hedgerows but require higher establishment and maintenance cost. Contour canal Bench terrace

70 IFAD-CHARM Evaluation, 2006. 71 DO Manzanilla, et. Al., Conservation Agriculture in the Philippines: Perspective, RD&E programs, Issues, Gaps and Potentials.

2007. 72 DOST Agroforestry Information Network. http://www.pcarrd.dost.gov.ph 73

Mindanao Baptist Rural Life Center (MBRLC)

Appendix 1

162

TECHNOLOGY COMMENT Live Fences Trees planted in a row formation to make a natural barrier. Alley cropping

Classified under vegetative barrier, is becoming popular for sloping lands in the country

Hedgerows Trees, shrubs, or grasses are established along the contours of an area.

Natural vegetative strips Naturally occurring vegetation like grasses and herbs are left in narrow strips to serve as barriers.

Sloping agricultural land technology Variation of alley cropping using A-frames to estimate appropriate slope set-up. Home Gardens Trees in intimate association with annual and perennial agricultural crops and small

livestock within house compounds

Green Manure Suitability of non-grain green manure crops

Rapid composting Use of Trichoderma, a cellulose decomposer fungus

Cover crops Example is using Vetiver grass

Conservation tillage Crops developed with agricultural biotechnology reduce the need for tillage or ploughing

Machinery for Minimum Tillage Development of appropriate machinery for minimum or zero tillage

Extension and Promotion Modality Technology promoted together with multi-stakeholders, partnerships at the local communities

Conservation farming village Modality for enhancing the transfer of conservation farming technologies and practices anchored on participatory planning, monitoring, and evaluation processes at the community level.

Landcare Movement Farmer-led organizations supported by local governments with backstopping from technical service providers

a. Livelihood Support for the Poor

270. Introduction of the packages will require the Project to provide a combination of training and extension inputs, some credit support and assurance of appropriate post-harvest management and marketing conditions; the three main critical milestones will therefore be: extension and training; micro, small, medium-sized agro-agribusiness and post-harvest management; business advisory, market linkages and linking to micro-credit/finance institutions.

271. The socio-economic absorptive capacity of the IPs and upland farming communities in URBs will be among the defining measures in providing interventions. Provision of assistance shall be categorized as follows:

i. Micro and small agro/agri-enterprise development for the productive poor

272. The productive poor will be provided with technology assistance, business advisory, value chain and market linkages; and, linking them to micro-finance institutions/credit facilities to support the capital requirements of the up-scaled technology and/or for value addition, specifically on the following:

i. Enhancement/improvement or development of the farm holdings to changes of farm systems to intercropping, diversification, integrated and multi-cropping systems through the adoption of soil and water conservation technologies;

ii. Working capital for agro-agri-based micro and small enterprises of the farmers and their organizations; and

iii. Primary production, processing, manufacturing and other strategic technology and livelihood development endeavours (e.g. charcoal making, village-level food processing, handicraft making, etc.).

Appendix 1

163

ii. Agricultural assistance for the vulnerable farming households

273. Livelihood assistance packages may be in the form of technology transfer-related training with corresponding farm inputs (e.g. seeds and seedlings, organic fertilizer, farm implements, small machinery/ equipment) through setting up demonstration farms.

iii. Setting up of seed fund for the replication/up-scaling/expansion of tested and mature technologies adopted by the non-bank eligible/vulnerable households

274. In the Project area about 58% are living below the poverty line, of which many are severely poor. These households are among the target beneficiaries who will participate in the technology training cum practicum and integral to it are the establishment of pilot demonstrations/trials. Based on the experience of past IFAD-assisted projects, most beneficiaries were constrained to replicate or scale-up the tested technology due to financial limitations. Although credit windows were made available for those who are in need of credit, the requirements are so stringent that most loan applicants could not access the credit fund.

275. To enable non-bankable or non-bank eligible household to replicate or scale-up mature technologies, the Project will set aside funds for this purpose. The Project management will provide the necessary assistance in kind, in the form of seeds, seedlings, organic fertilizers and/or farm implements or small machinery, and market linkages. As the capacity and credit worthiness of these stakeholders improves, either individually or organizationally, the Project will link them to financial institution/s for their working capital requirements in agro-agri-based micro and small enterprises that they may venture.

276. Scoping of vulnerable farming household. The Project management may use the wealth ranking tool in identifying vulnerable households. IFAD characterized vulnerability using parameters, which WMCIP (in the Kapitbahayan “neighborhood” Program) and NMCIREMP (in Poverty Alleviation Fund) also adopted, in scoping the vulnerable households, as follows:

(i) Landlessness or limited access to land (ii) Larger families with higher dependency ratio (iii) Low educational attainment (iv) Under employed or unemployment (v) Lack of basic amenities such as water supply, sanitation and electricity (vi) Limited or no access to credit, inputs and technology (vii) Lack of market information, business and negotiate experience and collective

organization (viii) Low level of social and physical improvements (ix) Expose to famine and disease (x) Prone to disaster, conflict and violence (xi) Living in social seclusion and remoteness (xii) Deprived of infrastructure.

277. Delivery Support Scheme. A seed fund in the amount of 50,000 pesos or less, depending on the evaluation of the proposed technology-based farming enterprise to be upscaled/replicated or expanded, will be provided to an existing organization comprising 15-20 vulnerable households. The assistance will be in kind. The Project management will formulate operating guidelines for the seed fund program. A trust receipt/covenant or memorandum of

Appendix 1

164

agreement will be an instrument used in defining the accountability and sustainability of the assistance received by the organizations.

2. Strategies for Conservation Farming Technology Adoption: Technical Extension and Technology Promotion 278. The ADB Public Communications Policy seeks to encourage the participation and understanding of people and other stakeholders affected by ADB-assisted activities. Initiatives to address poverty reduction are useless if not communicated properly for synchronized efforts of all key development actors. INREMP takes on poverty reduction undertakings, which greatly demand behavioural change, specifically among the vulnerable stakeholders.

279. The Project is so designed that Component 2: URB field investments envisions the following outputs: Field investments based on approved URB Management Plans will result in the conservation and protection of the 478,000 hectares of natural forests through (i) community-based protection and monitoring; (ii) rehabilitation of 74,000 ha out of a potential area of about 280,000 ha through reforestation and assisted natural regeneration (that will be prioritized during the management planning stage); (iii) establishment of pilot demonstrations of forest and land management models; (iv) introduction of sustainable forest management over 10,000 ha of natural forest on areas with slopes less than 30%; (v) establishment of pilot demonstrations of commercial plantations over 2,300 ha and agro-forestry over 2,300 ha to address the imbalance between supply and demand for timber and charcoal and facilitate participatory private sector investments in a further 80,000 ha. of managed natural forests, (75,000 ha of commercial plantations, and 60,000 ha of AF); (vi) TE-IEC program implementation to promote improved and more profitable farming systems and enhance awareness regarding appropriate land use, protection and conservation, climate change adaptation and mitigation, and conservation farming.

280. Aside from conservation and protection of the natural forest, the Project will implement livelihood enhancement through rehabilitation and improvement of rural infrastructure and livelihood support for the poor. Rural infrastructures will include an estimated (a) 560 km of rural access roads; (b) about 3,040 ha of communal irrigation schemes; (c) 275 units of potable water supply schemes (Level II – Spring Development); and (d) TE-IEC program implementation to improve effectiveness of technical extension services.

281. Another sub-component is the livelihood support for the poor, which is designed to encourage farming communities to participate in forest protection and farming conservation efforts and at the same time address the issue of food insecurity.

282. Existing local POs have to be strengthened to be the arena for participation especially among early adopters. Local NGOs on the other hand can likewise provide the technical expertise and form the pool of trainers, or engage in M&E activities to ensure that farmers adopt the conservation farming technologies and that farm inputs and information are received in a timely manner.

283. Several modalities for extension can be crafted similar to those developed by LANDCARE under the Western Mindanao Community Initiatives Project (WMCIP) of the Department of Agrarian Reform-IFAD, where the following were conducted: (i) on-farm researches, (ii) cross farm visits, and (iii) farmers forums. While not all of these were successful in the course of WIMCIP implementation, key lessons learned were that the identification of sustainability indicators at project start as well as formulation of project-exit plans is imperative.

284. Lastly, IEC materials will be prepared as part of the development support communication provided in the C&P plan in order to enhance the informed decision-making process among the

Appendix 1

165

vulnerable stakeholders. Materials will be developed according to the needs and preferences of the community. For instance, some IP groups still prefer interpersonal communication as the most effective way of informing and educating farmers, especially when role-paying is included. For other stakeholders, print and audiovisual materials are more than enough. Along with site-specific matching of conservation farming technology is the need to match the appropriate and preferred IEC modalities. These have to be included in the Social Assessment to be conducted immediately before investments are made.

a. Community-Based Technical Extension Processes

285. The enhancement of productivity systems in order to mitigate the downward trend of its resource-use functions rests upon the foundations of a strong, persistent and improved quality and coverage of extension services.

286. A participatory field appraisal focusing on farmers’ demands will allow the selection of packages and determine the training/demonstration trials needed for implementation, which will include:

(i) Specific farmer group training at the barangay level (ii) On-farm trials to test, verify and adapt the technologies for local use (iii) Appropriate field practical work to develop on farm training based on results of

trials (iv) Assistance to implementing farmers that apply the adapted package and (v) Participatory evaluation and updating/upgrading of developed packages

287. Extension delivery will build on existing staff principally in the service providers, either the municipal agriculture office, NGO or academe. Where necessary, they will be provided with a professional training scheme; and specialist consultancy inputs will be provided, particularly in less favoured CADC/IP areas.

288. A Farming Systems Development approach will be utilized where all the relevant National Agencies, LGUs and NGOs will be involved during program orientation. Technical training and field studies will be undertaken. Training in environmental conservation, perennial crop production, and integrated pest management, utilizing the Farmers Field School Systems, will also be done.

289. Every extensionist/technologist will assist in setting up an on-farm participatory trial plot in a specified barangay or cluster of barangays with the participation of the LGUs, concerned National Agencies, and the farmer leaders representing the farmers’ organization and the women’s group.

290. The Project will develop community para-technicians as champions for technology transfer. They will serve as farmer to farmer educators and assist the Project management in mobilizing farmers and in monitoring technology adoption.

291. The Project will set up improved information and communication and monitoring and evaluation systems. The latter will cover: human resources and training per staff and farmer leader involved; the technical monitoring of every ongoing on-farm trial and of demonstration/adaptive research activities developed by partners; and periodic reassessment of constraints identified by farmers in the area. It will feed the reassessment and updating process.

b. Technology Promotion for Conservation/Upland Farming

292. There are two major farming systems that can be promoted in the river basins: (a) a diversified farming system (multi-cropping system) and (b) an integrated upland farming system (crops+animals+ fishery).

Appendix 1

166

293. The principal opportunities for farming systems improvement for the upland and undulating land areas are: to target fruit tree micro-plantations, timber-diversified planting and replanting of coconut with hybrid varieties on a wide row base to facilitate inter-planting to coffee or any market-driven crops; and to support sedentarization of slash and burn farmers with development of timber, intercropped banana, and livestock fattening.

294. In every upland barangay, at least one five-hectare agro-forestry system will be established. Tree plantations can be 70:30 ratio (70% fruit trees+ permanent/perennial trees), and plant cash crops in between alleys as practicable. This will be supported by setting up nurseries to complement the seedling requirements of the potential adopters.

295. At the farm level, risk aversion that arises from poverty drives decision-making and is a major constraint. The first focus is on food security through diversified cropping; second is cash generation, at least 40% of production has to be market-oriented. Aside from introduction of agro-forestry systems it will include soil and water conservation technologies in slopes, such as establishing hedgerows along vegetable gardens; contour farming; slope agricultural land technology, natural vegetative strips. In addition, the farmers will be trained on organic fertilizer production, such as: vermin-culture, green manuring, composting, and the like.

296. Effective raising of farm HH productivity and incomes requires specific interventions for which the following adapted production packages are proposed:

i. Chico River Basin

(i) No more expansion of production area for vegetable growing but instead intensify production of the existing vegetable plots through greenhouse farming (vegetable and cut flowers) adopting the bio-intensive gardening or applying organic fertilizer/pesticides and with established hedge rows along slopes;

(ii) Agro-forestry (fruit trees+ perennial trees), and plant cash crops in between alleys until practicable. Tree plantation can be 70:30 ratio (70% fruit trees) or depending on the farmer’s best option. There may be an integration of fast growing trees for firewood or charcoal making;

(iii) Generate business-oriented sustainable timber tree planting of mahogany, teak, ipil and any indigenous species;

(iv) Setting up community nurseries to support the seedling requirements of the agro-forestry system adopters. This will also be the learning site or farmer field school of interested farmers;

(v) Complementary livestock fattening in cereal-based systems and vegetable feeds; (vi) Rice production in irrigated areas applying the Masipag Rice Technology; and (vii) Support for mung bean in mixed cropping or in post-cereal cropping.

ii. Wahig-Inabanga River Basin

(i) Replacing of old mono-crop with wide row hybrid coconut intercropped with rice, corn and perennials;

(ii) Enhance the existing backyard vegetable garden applying the bio-intensive/organic farming

(iii) Developing micro-plantations of banana, mango and pineapple for which marketing facilities/trade post and technical knowledge are best in the area;

(iv) Generate business-oriented sustainable timber tree planting, of mahogany, teak, ipil and any indigenous species;

(v) Agro-forestry (fruit trees+perennial trees), and plant cash crops in between alleys as practicable. Tree plantation can be 70:30 ratio (70% fruit trees) or depending on

Appendix 1

167

the farmer’s best option. Fast growing trees can be integrated for firewood/charcoal;

(vi) Setting up a community nursery to support the seedling requirements of the agro-forestry system adopters. This shall also be the learning site or farmer field school of interested farmers;

(vii) Complementary livestock fattening in cereal-based systems with paddy husk and coconut cake feeds;

(viii) Rice production in irrigated areas applying the Masipag Rice Technology; and (ix) Support for mung bean in mixed cropping or in post-cereal cropping.

iii. Bukidnon River Basin

(i) Planting of abaca or rubber micro-plantations - with complementary activities in order to avoid mono-cropping;

(ii) Generate business-oriented sustainable timber tree planting of mahogany, teak, ipil and any indigenous species; or any fast growing trees for firewood/charcoal. Silicor is potential market for charcoal;

(iii) Smallholder coffee micro-plantations, especially for experienced, cooperative member farmers;

(iv) Agro-forestry (fruit trees+perennial trees), and plant cash crops in between alleys as practicable. Tree plantations can be 70:30 ratio (70% fruit trees) or depending on the farmer’s best option. Fast growing trees can be integrated for firewood/charcoal. Silicor is a potential market for charcoal;

(v) No expansion of area for vegetable growing but instead intensify production of existing vegetable plots through greenhouse farming (vegetable and cut flowers) adopting the bio-intensive gardening or applying organic fertilizers with established hedge rows along slopes;

(vi) Developing micro-plantations of banana, mango and pineapple for which marketing facilities/trade post and technical knowledge are best in the area;

(vii) Setting up a community nursery to support the seedling requirements of the agro-forestry system adopters. This shall also be the learning site or farmer field school of interested farmers;

(viii) Complementary livestock fattening in cereal-based systems with paddy husk and vegetable feeds;

(ix) Rice production in irrigated areas applying the Masipag Rice Technology; and (x) Support for mung bean in mixed cropping or in post-cereal cropping.

iv. Lanao Lake Basin

(i) Replacing of old mono-crop with wide row hybrid coconut intercropped with rice, corn and perennials;

(ii) Enhance existing backyard vegetable garden applying the bio-intensive/organic farming

(iii) Developing micro-plantations of banana, mango and pineapple for which marketing facilities/trade post and technical knowledge are best in the area;

(iv) Generate business-oriented sustainable timber tree planting of mahogany, teak, ipil, any indigenous species, and/ or fast growing species for charcoal making. Silicor is a potential market for charcoal.

(v) Agro-forestry (fruit trees+perennial trees), and plant cash crops in between alleys as practicable. Tree plantations can be 70:30 ratio (70% fruit trees) or depending on the farmer’s best option. Fast growing trees can be integrated for firewood/charcoal;

Appendix 1

168

(vi) Setting up a community nursery to support the seedling requirements of the agro-forestry system adopters. This shall also be the learning site or farmer field school of interested farmers;

(vii) Complementary livestock fattening in cereal-based systems with paddy husk and coconut cake feeds;

(viii) Rice production in irrigated areas applying the Masipag Rice Technology; and (ix) Support for mung bean in mixed cropping or in post-cereal cropping.

D. Implementation Arrangements

297. The URBs, except in Wahig-Inabanga, cover more than one province. The Chico River Basin covers CAR and Cagayan provinces; municipalities of Lanao del Norte are located in both Lake Lanao and Bukidnon River Basins. Bukidnon River Basin covers the provinces of Misamis Oriental, Lanao Norte, and Bukidnon. To ensure coherence and consistency in implementing sub-projects across municipalities within the river basin, a Provincial Project Coordinating Office will be set up taking into consideration the geographical coverage and not by political boundaries. To complement the PPMO, an office shall be established in each watershed, which will be called Watershed Project Coordination Office (WPCO) to be lodged at the concerned DENR-CENRO.

298. The NPCO/PPMO in coordination with the Municipal Agriculture Offices (MAOs) and Municipal Environment and Natural Resource Officers (MENROs) will engage service providers through competitive bidding or through a memorandum of agreement for the implementation of the livelihood enhancement, including livelihood support for the poor.

299. The seed fund for replication/expansion of matured technologies will be managed by DENR.

300. Discussions were held during the Fact Finding Mission with international and national NGOs, academe, and R&D institutions with relevant experience and specialized technical capacity within the project areas, such as the Philippine Tropical Forest Conservation Foundation (PTFCF) and the World Agroforestry Center (ICRAF). It is proposed that NPCO shall establish prequalification criteria and interested service providers will submit proposals/bids for the implementation of specific activities in particular locations.

E. Sustainability Mechanisms

301. DENR, through the NPCO, in coordination with the concerned LGUs, will put in place sustainability mechanisms at the outset of project implementation to ensure that the IPs/farmers and community-based organizations continue to sustain the operationalization of their programs and projects.

302. The PPMO has to ensure that community members and their organizations are actively involved in the selection, prioritization, design, implementation, monitoring and evaluation of programs/ projects/services in order for them to inculcate the sense of ownership and accountability even after the end of assistance.

303. The management plans of the URBs will be integrated into the development plans of the concerned LGUs to ensure a smooth transition of roles from DENR to the LGUs when the INREMP ends. The LGUs should maintain the facilitation role: providing technical guidance and linking communities to relevant agencies. Working with existing structures and enhancing such systems will enable communities and LGU field personnel to work efficiently and effectively.

Appendix 1

169

VII. IMPLEMENTATION ARRANGEMENT FOR RURAL INFRASTRUCTURE

304. Appraisal and approval of INREMP financed rural infrastructure sub-components proposed by partner communities through the MLGUs shall be the responsibility of the Provincial INREM Council (PINREM-C). This will be an inter-agency group the composition of which will be technical representatives from relevant oversight and national government agencies at the provincial level.

305. The Project will utilize the existing supporting units of the municipal LGU like the accounting and budgeting offices and the Bids and Awards Committee (BAC) for the procurement of works and goods in accordance with R.A. 9184 as harmonized with the ADB Procurement Guidelines.

306. A Monitoring and Evaluation (M and E) unit will also be established for INREMP utilizing existing M and E units of the MLGUs. The monitoring and evaluation specialists of these units will assist the NPCO in the design and implementation of the INREMP M and E systems including the preparation and consolidation of regular quarterly and annual progress reports required by the Project.

A. Rehabilitation And Improvement

307. Implementation Processes and Procedures. Implementation of the rural infrastructure sub-components will be according to the following processes and procedures:

308. Sub-Component Identification, Prioritization and Validation. The community will have the sole responsibility of identifying and prioritizing rural infrastructure sub-components during the conduct of participatory planning and consultations. Technical assistance and guidance will be provided by the MLGU.

309. Identified and prioritized sub-components shall be subject to field validation by the PPMO with support from the technical consultants prior to the preparation of the individual Feasibility Study (FS) and Detailed Engineering (DE) Documents.

310. The Municipal Planning and Development Office (MPDO) will ensure that all sub-components identified and prioritized by the community will be endorsed by the Barangay Development Council (BDC) to the Municipal Development Council (MDC) for integration to the Municipal Development Plan (MDP) and concurred by the Sangguniang Bayan (SB).

311. Sub-Component Preparation. Sub-component preparation will cover activities necessary to conduct the feasibility analysis, detailed survey, engineering design and preparation of detailed engineering plans, specifications and Programs of Work (POW). The preparation of Feasibility Study (FS) of each individual proposed sub-component will be the main responsibility of the MPDO while the conduct of field surveys and preparation of detailed engineering documents will be through the MEO. Completed FS and DE documents will be reviewed by the PPMO with support from the technical consultants and endorsed to the PINREM-C for final appraisal and approval.

312. During sub-component preparation, clearances and certifications from government regulatory agencies will be worked out by the MLGU. The basic geometric and design specifications to be adopted by INREMP for each type of rural infrastructure sub-component are attached.

313. Sub-Component Technical Review, Appraisal and Approval. Initial technical review of sub-component documents prepared by the MLGU will be done by the PPMO with support from the technical consultants and endorsed to the PINREM-C for final review, appraisal and approval.

Appendix 1

170

314. Prior to PINREM-C approval, PPMO will conduct field pre-appraisal of sub-components proposed for funding. A pre-appraisal report will be prepared by PPMO as basis for PINREM-C decision during sub-component deliberation. All documents necessary for PINREM-C deliberation will be prepared by PPMO as the designated PINREM-C secretariat.

315. Procurement Methods and ADB Guidelines. Majority if not all rural infrastructure sub-components under INREMP financing are expected to be relatively small involving small work contracts and are unlikely to attract international contractors.

316. In accordance to ADB procurement guidelines, contracts costing less than US$5,000,000 equivalent will be awarded through Local Competitive Bidding (LCB) and will be guided by R.A. 9184 otherwise known as the “Government Procurement Reform Act” as long as the provisions are consistent with ADB Procurement Guidelines for civil works.

317. However, individual sub-components costing less than US$100,000 may be implemented by LGUs through “Force Account” or by administration as long as the total value of all civil works carried out on “Force Account” basis for INREMP will not exceed in total of US$16,000,000.

318. LGUs signifying intention to implement by “Force Account” will be evaluated by the PPMO for technical and equipment capability and will secure authorization from this office. Procurement of “Goods” under “Force Account” works will also be guided by R.A. 9184 consistent with ADB Procurement Guidelines for goods.

319. Procurement of “Civil Works” and “Goods” will be the main responsibility of the municipal LGU through its duly constituted Bids and Awards Committee (BAC) in accordance with the provisions of R.A. 9184.

320. Conditions for Fund Release. Upon PINREM-C approval of rural infrastructure sub-components and completion of procurement activities, the releases of Certificate of Availability of Funds (CAF) and corresponding funding support will be according to the procedures and conditions in the PAM.

321. Implementation Mode. In support to the national government’s employment generation program and in consideration that majority of the sub-components are small scale. Labor Based–Equipment Supported (LB/ES) methods of construction shall be adopted whenever possible. This should also allow communities to be engaged as “Pakyaw” labor contractors to ensure full involvement as well as help in the process of people empowerment and in building up a sense of ownership and responsibility.

322. Regardless of whether implementation is carried out by contract or by LGU “Force Account” and pursuant to R.A. 5635 dated December 12, 1988, at least fifty (50) percent of the unskilled and thirty (30) percent of the skilled labor requirement shall be taken from the beneficiary community. Hence, beneficiaries within the community shall be the first priority in the selection of labor force. The women shall be given equal opportunity to join the labor force.

323. Sub-Component Execution and Supervision. Implementation of rural infrastructure sub-components under INREMP will require full attention from the MLGUs as the executing units. The MLGU through the designated technical staff will be the main responsible office for the execution and daily supervision of sub-components implementation regardless of whether implemented by contract or force account. The PPMO will provide overall supervision to MLGUs within its respective jurisdiction with the full involvement of the communities.

324. Monitoring and Evaluation. Monitoring and evaluation of sub-components implementation will be the main responsibility of the M and E unit at all levels.

Appendix 1

171

325. ADB at any time will send supervision mission to selected sites to monitor and evaluate the progress and status of the implementation and management of the Project. The findings of the mission will be embodied in an aide memoire and will be submitted to the NPSC copies of which will be furnished all concerned stakeholders and Project implementors.

326. NPCO will be responsible for the overall coordination and will actively participate in the conduct of all ADB supervision missions. DENR RO and PPMO will likewise participate in said missions.

327. Completed Sub-Component Turn-Over. All completed rural infrastructure sub-components will be turned over to the MLGU represented by the Municipal Mayor. However, there will be instances where completed facilities like communal irrigation schemes and post harvest facilities will be placed under a Memorandum of Agreement (MOA) with the farmers’ association or people’s organizations (FA or PO) for appropriate operation and maintenance to ensure that responsibility is clearly delineated for sustainability.

328. The NPCO will have the sole responsibility to turn over the completed facilities after the conduct of final inspection and after it has determined that the sub-component has been completed to the satisfaction of the Project. Turn-over documents may include but not limited to: i) Implementation Completion Report (ICR); ii) Pictorials taken before, during and after construction of specific segments of civil works; iii) Final inspection reports; and iv) As built plans reflecting actual deviations from the approved documents.

329. Sub-Component Operation and Maintenance Arrangement. Basically, each type of completed facility will require a specific unit or organization to operate and maintain the completed facility. This will be dependent on who will be the direct or end users or beneficiaries of the facility. The type of infrastructure facilities to be provided by INREMP can be appropriately operated and maintained either by the municipal LGU or People’s Organizations.

B. Basic Geometric and Design Specifications (Rural Infrastructure)

RURAL ACCESS Sub-Component Type Basic Geometrical and Design Specifications

Barangay/Farm to Market Roads, Tire Tracks, Tramlines, Foot Paths, Connecting Bridges Standard Gravel Road 4.00m wide carriageway with 1.00m shoulder and trapezoidal drainage ditch on both sides; 15cms

aggregate base course of Item 201 on top of 10cms sub-base course of Item 200 with well graded gravel surface course (armouring)

Tire Tracks (for road gradients of 12% and above)

2 – 60cms wide x 20cms thick 3,000psi concrete tire tracks on 10cms gravel base course with grass “creeps” along center gap of 0.90meter and shoulders of 1.00m wide on both sides

Trails and Foot Paths 1.00m wide carriageway with triangular drainage ditch on both sides; 10cms aggregate base course of Item 201 with no sub-base course; 0.60m x .10m un-reinforced concrete block pavement for steep slopes of 12% and above

RCDG type (for traffic volume of 20 vehicles per day or more up to 30.00 meters span)

4.00m. wide (single lane) of 3,000psi concrete pavement on Reinforced Concrete Deck Girder (RCDG)

Rock Causeway and Spillways (where appropriate in lieu of bridge)

4.00m wide concrete paved carriageway on piled boulders with provision of reinforced concrete pipe culverts (RCPC) with sufficient number and diameter; 15cms concrete upstream and downstream aprons with energy dissipators and cut-of walls of sufficient design depths with temperature bars

Tramlines 0.90m x 1.20m carriage of ga. #16 HRS checkered plate with 18mm diameter Schedule 40 G.I. pipe frame and twin rollers on 20mm diameter cable wires with 12mm diameter cable tag lines and gas driven engine prime mover

Hanging foot bridges 1.20m wide walkway with 50mm x 150mm floor planks or ga. #16 HRS checkered steel mats on 25mm diameter cable suspensions and concrete abutments

SMALL SCALE COMMUNAL IRRIGATION SCHEMES and POST HARVEST FACILITIES Category and Sub-Component Type Geometrical and Design Specifications Communal Irrigation Schemes

Appendix 1

172

Diversion or Intake Type for CIS (for areas of 25 has and above with streams or creeks of sufficient and dependable flow adopting NIA specifications)

Diversion Works: Run-of-river type adopting ogee or trapezoidal sections and check gate or teruvian intake

schemes as deemed appropriate by NIA design engineers.

Main Canal, laterals and sub-laterals: Trapezoidal section with slide slopes (SS) of 1½:1 for most earth canals and 1:1 or 0:1

(rectangular) for lined canals Earth canals shall have a permissible velocity of not less than 0.30 m/sec. and not more than

1.00 m/sec. Canal freeboard shall be a minimum of 0.30m or 40% of designed water depth Canal top berm width shall be 0.40m

e: canal concrete lining shall not be allowed unless highly justified thru actual measurement of losses to seepage or other valid reasons.

Structures: Water level and distribution control devices as needed Thresher Crossing – one (1) unit for every 500m in the absence of road crossings along main

canals, laterals and sub-laterals Road and Drainage Crossings as dictated by actual canal alignment and terrain

Drip or Sprinkler Irrigation (in upland areas for high value crops with spring sources of sufficient head over irrigable area)

Spring intake box shall be of 3,000psi concrete mixed with water proofing compound Polyethylene (PE) pipe main line of 25-50mm diameter provided with 60-100mesh or 250 –

5micron filters at the intake side Lateral and sub-lateral PE pipes of 12-20mm diameter with 1mm orifice emitters May be used in combination with transferable sprinklers on poles attached to lateral PE pipes in

lieu of orifice emitters Post Harvest Facilities

Warehouses, Trading Centers and Solar Driers

All floors (including solar driers) shall be 10cms. thick of 3,000 psi concrete provided with gravel base and temperature bars of 10mm diameter spaced at 40 cms. on center both ways

All walls shall be of 10cms. thk. concrete hollow blocks Roofing shall be of ga. #26 corrugated G.I. sheets while gutters shall be of ga. #24 plain G.I.

sheets Warehouses shall have a floor area of 50 sq m, trading centers 500sqm and solar drier 100 sq m

POTABLE WATER SUPPLY Sub-Component Type Basic Geometrical and Design Specifications

Level I Jetmatic Pumps (Point Source)

Located at least 25m. from any potential sources of pollution Farthest user is not more than 250m. from point source Designed to deliver at least 20 liters per capita per day (lpcd) To serve an average of 15 households per unit Adopt 100mm diameter of steel casing with 50mm diameter of G.I. intake pipe with suction rod,

100mm diameter of low carbon steel screen and 10mm diameter gravel packing materials; all G.I. pipes shall have a minimum strength equivalent to schedule 40

Level II Spring Development (note: design provisions for Level III to be incorporated if LGU or community decides to upgrade in the future)

Farthest house shall not be more than 25m. from the nearest communal faucet Designed to deliver at least 50 liters per capita per day Communal faucet to serve an average of 10 households Spring box shall be made of 3000 psi reinforced concrete mixed with water proofing compound Ground distribution reservoir shall be located on high ground and made of 3000 psi reinforced

concrete mixed with water proofing compound Main pipeline shall be a combination of 50 – 100mm diameter G.I., UPVC and polyethylene (P.E.)

pipe of sufficient strength Intermediate distribution lines shall be of ½” – ¾” diameter of P.E. pipe All pipes shall be rated for use of water at 23 oC and at a minimum working pressure of 1.10Mpa

or as dictated by actual hydrostatic head All pipes shall be embedded at a minimum of 50cms. below natural ground Communal faucets shall be of heavy duty brass type provided with concrete apron and tub of

appropriate size and design

Appendix 1

173

C. General Operation and Maintenance (O&M) Arrangement

Type of Sub-project O and M Responsibility Strategy and Support Mechanism

Rural Access (roads, bridges, spillways, footpaths)

The Municipal and Barangay LGU and community thru the establishment of an O and M Committee (OMC)

PPMO and Municipal LGU to assist in organizing, training and operationalization of community O and M Committee

Municipal LGU to provide regular annual routine maintenance fund Maintenance fund to be augmented thru the imposition of road users' fee if feasible OMC to formulate an annual maintenance program Municipal LGU to involve community thru commissioning of "pakyaw" groups to

undertake maintenance adopting the "length man" system Periodic maintenance to make use of the "Bayanihan System"

Potable Water Supply

The Community thru the establishment of a Barangay Waterworks and Sanitation Association (BAWASA)

PPMO and Municipal LGU to organize, train and operationalize the BAWASA DILG to assist in organizing the BAWASA BAWASA to develop systems and procedures for levying water charges to cover

maintenance and operating cost Local Water Districts to provide technical assistance to BAWASA through a MOA with

the LGU Post-Harvest Facilities including Tramlines

The identified proponent community PO

Community PO to undertake regular maintenance of facilities through its members Community PO to develop systems and procedures for collecting users fee if facility is

income generating to cover maintenance and operating cost

Communal Irrigation Schemes

The Farmers thru the establishment of Irrigators’ Association (IA)

Municipal LGU through a MOA with and under the technical guidance of NIA to organize, train and operationalize the IA

Municipal LGU with technical assistance from NIA to develop O and M manual to include the policies, systems and procedures to be adopted by the IA in collecting irrigation service fees (ISF) from members for operation and maintenance use

Provincial Trading Center

The Provincial Government Provincial LGU to develop systems and procedures for collecting users’ fee Provincial LGU to include regular O and M budget in its annual provincial expenditures

Appendix 2

174

APPENDIX 2. DETAILED COST TABLES (PER SUBCOMPONENT)

($ 1 = P 41.635) (P 1= US$ 0.24)

175

Appe

ndix 2

Table 1. River basin and w atershed management plan ODetailed Costs Quantities Unit Cost Unit Cost Base Cost ($ '000)

Unit 2013 2014 2015 2016 2017 2018 2019 Total (P '000) ($ '000) 2013 2014 2015 2016 2017 Fin. Rule

I. Investment Costs (100%) Exclusive

of Taxes

A. Assessment of Current Land Uses 1. Assessment & Mapping of Current Land Uses /a ha 57 171 455 455 - - - 1,138 62.45 1.500 85.5 256.5 682.5 682.5 - ADB ( 100% )2. Data Acquisition /b

Aerial Photography /c sheet - 40 44 - - - - 84 208.18 5.000 - 200.0 220.0 - - ADB ( 100% )Satellite Imagery -1:50,000 /d scenes - 29 - - - - - 29 582.89 14.000 - 406.0 - - - ADB ( 100% )Satellite Imagery -1:10,000 /e scenes - 22 22 - - - - 44 208.18 5.000 - 110.0 110.0 - - ADB ( 100% )

Subtotal Data Acquisition - 716.0 330.0 - - Subtotal Assessment of Current Land Uses 85.5 972.5 1,012.5 682.5 -

B. Land Use Capability Assessment & River Basin Zoning 1. Land Use Capability Assessment & URB Zoning

Satellite Image Analysis /f Scenes - 20 30 25 - - - 75 204.01 4.900 - 98.0 147.0 122.5 - ADB (100% )Compilation, Validation, Modelling & Mapping /g Sheet - 32 60 70 - - - 162 83.27 2.000 - 64.0 120.0 140.0 - ADB (100% )

Subtotal Land Use Capability Assessment & URB Zoning - 162.0 267.0 262.5 - 2. Carbon Baseline Assessment & Changes Monitoring /h ha - 140 140 - 140 140 - 560 19.98 0.480 - 67.2 67.2 - 67.2 GEF ( 100% )3. Boundary Demarcation /i km - - 326 610 978 1,305 - 3,219 14.57 0.350 - - 114.1 213.5 342.3 ADB ( 100% )

Subtotal Land Use Capability Assessment & River Basin Zoning - 229.2 448.3 476.0 409.5

C. Participatory Management Planning /j 1. Participatory Management Planning ha - 212 272 121 - - - 605 72.86 1.750 - 371.0 476.0 211.8 - ADB ( 100% )2. Participatory Management Planning_IFAD ha 51 186 240 56 - - - 533 72.86 1.750 89.3 325.5 420.0 98.0 - IFAD ( 100% )3. Participatory Management Planning_ GEF (Ancestral Domains in Chico) /k no - 1 1 1 - - - 3 2,539.74 61.000 - 61.0 61.0 61.0 - GEF ( 100% )

Subtotal Participatory Management Planning 89.3 757.5 957.0 370.8 -

D. GIS Data Base Installation 1. URB GDSS central operations center /l no. - 1 - - - - - 1 1,020.06 24.500 - 24.5 - - - ADB ( 100% )2. CO URB GDSS Operating Expenses /m /yr - 1 1 1 1 1 1 6 74.94 1.800 - 1.8 1.8 1.8 1.8 ADB ( 100% )

3. URB GDSS nodes /n URB_GDSS Nodes no. - 8 8 8 - - - 24 853.52 20.500 - 164.0 164.0 164.0 - ADB ( 100% )URB GDSS Nodes_IFAD no. - 6 - - - - - 6 853.52 20.500 - 123.0 - - - IFAD ( 100% )

Subtotal URB GDSS nodes - 287.0 164.0 164.0 - 4. Nodal URB GDSS Operating Expenses /o /yr - 7 22 30 30 30 30 149 32.06 0.770 - 5.4 16.9 23.1 23.1 ADB ( 100% )

Subtotal GIS Data Base Installation - 318.7 182.7 188.9 24.9 E. Watershed Management, Biodiversity Conservation and Corridor P

1. Consultants Biodiversity Specialist - Int'l Consultant /q Person-Month 1 2 - - - - - 3 839.36 20.160 20.2 40.3 - - - GEF (100% )Biodiversity Specialist - National /r Person-Month 3 7 4 2 - - - 16 139.89 3.360 10.1 23.5 13.4 6.7 - GEF (100% )Watershed Management Specialist- Int'l /s Person-Month 2 3.5 - - - - - 5.5 839.36 20.160 40.3 70.6 - - - GEF (100% )Watershed Management Specialist /t Person-Month 3 12 8 3 - - - 26 139.89 3.360 10.1 40.3 26.9 10.1 - GEF (100% )Carbon Stock Assessment Specialist /u Person-Month 3 6 3 - - - - 12 839.36 20.160 60.5 121.0 60.5 - - GEF (100% )Planning and Regulatory Specialist /v Person-Month 3 5 4 - - - - 12 139.89 3.360 10.1 16.8 13.4 - - GEF (100% )Market Specialist /w Person-Month 3 12 12 3 - - - 30 186.52 4.480 13.4 53.8 53.8 13.4 - GEF (100% )Legal and Institutional Specialist /x Person-Month 3 3 3 3 3 - - 15 186.52 4.480 13.4 13.4 13.4 13.4 13.4 GEF (100% )

Subtotal Consultants 178.1 379.7 181.4 43.7 13.4 2. Support- Watershed Management Planning /y

International Air Travel Trip 1 2 - - - - - 3 249.81 6.000 6.0 12.0 - - - GEF (100% )Domestic Air Travel Trip 2 6 6 - - - - 14 8.33 0.200 0.4 1.2 1.2 - - GEF (100% )Domestic Ground Travel Trip 2 12 12 2 2 2 - 32 8.33 0.200 0.4 2.4 2.4 0.4 0.4 GEF (100% )Per Diem - Consultants & Staff Trip 2 12 12 2 2 2 - 32 24.98 0.600 1.2 7.2 7.2 1.2 1.2 GEF (100% )Per Diem - International Consultants Mon 3 5.5 - - - - - 8.5 167.87 4.032 12.1 22.2 - - - GEF (100% )

Subtotal Support- Watershed Management Planning 20.1 45.0 10.8 1.6 1.6 3. Biodiversity Inventory, Habitat Mapping, Corridor Planning & GIS Database ha 10 35 40 - - - - 85 97.22 2.335 23.4 81.7 93.4 - - GEF (100% )4. Market Studies And Feasibility Analyses Lump Sum - 0.25 0.25 0.25 0.25 - - 1 6,245.25 150.000 - 37.5 37.5 37.5 37.5 GEF (100% )

Subtotal Watershed Management, Biodiversity Conservation and Cor 221.5 543.9 323.1 82.8 52.5 Total 396.3 2,821.8 2,923.7 1,800.9 486.9 _________________________________\a Includes ground control survey, IFSAR - DEM for Minadanao, digital conversion of contour maps and map updating (including biological resources)\b Purchase of satellite images; conduct aerial photography\c For high-resolution satellite; for Luzon & Bohol coverage\d 1:50,000 scale\e 1:10,000 scale for use in management planning\f SPOT Image Analysis\g GIS Compilation & Analysis, Land Use Modelling, Ground Validaton and Mapping\h Development & Implementation of carbon stock & CO2 emissions baseline assessments & monitoring of changes\i Delineation - forest and non forest areas and physical demarcation on the ground\j With the participation of stakeholders; including assistance for ADSDPP formulation enhancement\k GEF support to community-based planning w ithin ancestral domain lands (3)\l Central Office Set of : GIS Work Station, laptops, GPS receivers, A3 Scanner/Printer\m Operations center URB GDSS annual supplies\n 30 nodes: Set of GIS w ork stations, laptops, GPS receivers, mobile GIS, A3 Scanner/printer\o URB GDSS node (30) annual supplies\p Biodiversity Assessment & Mapping; Corridor planning in Chico RIver Basin (GEF Funded)\q Assessment of Biodiversity Assets/Mapping\r Assessment of Biodiversity Assets/Mapping - National\s Biodiversity Corridor Planning & Zoning - Planning/Reg. Specialist_ Int'l\t Biodiversity Corridor Planning & Zoning - Planning/Reg. Specialist (Local)\u Bukidnon & Chico RBs - Climate Change-LULUCF - Carbon Stock Assessment Specialist (Int'l)\v Prod. Landscapes:Protection Regulatory Framew ork - Planning/Reg. Specialist\w PES - Chico RB: PES Specialist for market surveys/implementation\x With Contract Experience: PES Legal/Institutional Specialist\y Travel Fare and Expenses for BD & PES\z GEF land use planning

176

Appe

ndix 2

Table 2. Conservation, rehabilitation, and protection of URB State forests Unit Unit OthDetailed Costs Quantities Cost (P Cost ($ Base Cost ($ '000)

Unit 2013 2014 2015 2016 2017 2018 2019 Total '000) '000) 2013 2014 2015 2016 2017 2018 2019 Total Fin. Rule


of Taxes

A. Community-based protection and monitoring /a Chico River Basin ha - 9,600 27,000 70,014 105,022 116,691 135,931 464,258 0.29 0.007 - 67.27 189.19 490.59 735.89 817.65 952.47 3,253.06 ADB ( 100% )Wahig-Inabanga ha - 696 2,328 3,659 6,652 7,100 7,548 27,983 0.29 0.007 - 4.88 16.31 25.64 46.61 49.75 52.89 196.08 ADB ( 100% )Upper Bukidnon ha - 4,444 12,858 39,716 59,574 66,193 75,121 257,906 0.29 0.007 - 31.14 90.10 278.29 417.44 463.81 526.37 1,807.15 IFAD ( 100% )Lake Lanao ha - 747 1,797 7,187 10,781 11,942 12,983 45,437 0.29 0.007 - 5.23 12.59 50.36 75.54 83.68 90.97 318.38 CCF ( 100% )

Subtotal Community-based protection and monitoring - 108.52 308.19 844.88 1,275.48 1,414.90 1,622.70 5,574.66

B. Afforestation and Reforestation (Establishment & 3 years maintenance) /b Chico River Basin /c ha - - 1,400 2,750 950 1,300 1,200 7,600 23.34 0.561 - - 784.84 1,541.65 532.57 728.78 672.72 4,260.56 ADB ( 100% )Wahig-Inabanga River Basin ha - 80 145 246.25 120 111.25 97.5 800 23.34 0.561 - 44.85 81.29 138.05 67.27 62.37 54.66 448.48 ADB ( 100% )Upper Bukidnon River Basin ha - 600 1,350 1,650 900 900 600 6,000 23.34 0.561 - 336.36 756.81 924.99 504.54 504.54 336.36 3,363.60 IFAD ( 100% )Lake Lanao ha - - 75 343.75 100 118.75 162.5 800 23.34 0.561 - - 42.05 192.71 56.06 66.57 91.10 448.48 ADB ( 100% )

Subtotal Afforestation and Reforestation (Establishment & 3 years maintenance) - 381.21 1,664.98 2,797.39 1,160.44 1,362.26 1,154.84 8,521.12

C. Assisted natural regeneration (ANR) - Support for 4 years /d Chico River Basin /e ha - 5,808 9,834 18,816 7,920 6,336 4,086 52,800 15.08 0.362 - 2,103.08 3,560.89 6,813.27 2,867.83 2,294.27 1,479.54 19,118.88 ADB ( 100% )Wahig-Inabanga ha - 198 450 558 270 216 108 1,800 15.08 0.362 - 71.70 162.95 202.05 97.77 78.21 39.11 651.78 ADB ( 100% )Upper Bukidnon ha - 2,432.1 4,427.5 7,654.1 3,316.5 2,653.2 1,626.6 22,110 15.08 0.362 - 880.66 1,603.20 2,771.55 1,200.90 960.72 588.99 8,006.03 ADB ( 100% )Lake Lanao ha - 110 382 819 315 285 189 2,100 15.08 0.362 - 39.83 138.32 296.56 114.06 103.20 68.44 760.41 ADB ( 100% )

Total - 3,584.99 7,438.53 13,725.70 6,716.48 6,213.55 4,953.61 42,632.88 _________________________________\a Through voluntary undertaking & commitment of participating communities/POs/IPOs; involves monitoring, forest patrols & protection against intrusion & unauthorized land conversion w ithin conservation areas; no labor payments but "block grants" to POs/IPOs\b Areas for afforestation and reforestation w ill be conserved & protected after 4 years of support.\c Phase: 1st yr - 50%, 2nd & 3rd yr @ 12.5%; 4th yr - 25%\d Target areas are degraded natural forest and brushland, soil depth >0.5 m. Areas covered for assisted natural regeneration w ill be conserved and protected after 4 years of ANR activities.\e Phase: 1st yr 55%, next 3 yrs @ 15%

177

Appe

ndix 2

Table 3. Sustainable forest management, agroforestry and commercial forest plantation w ith community participation Unit Unit ODetailed Costs Quantities Cost (P Cost ($ Base Cost ($ '000)

Unit 2013 2014 2015 2016 2017 2018 2019 Total '000) '000) 2013 2014 2015 2016 2017 2018 2019 Total Fin. Rule

I. Investment Costs (100%) Exclusive of

Taxes

A. Sustainable Forest Management /a (<100%>FT) Inclusive

of TaxesChico River Basin ha - 650 1,300 1,300 650 - - 3,900 1.08 0.026 - 16.9 33.7 33.7 16.9 - - 101.2 CCF ( 100% )Wahig-Inabanga ha - 65 130 130 65 - - 390 1.08 0.026 - 1.7 3.4 3.4 1.7 - - 10.1 CCF ( 100% )Upper Bukidnon ha - 325 650 650 325 - - 1,950 1.08 0.026 - 8.4 16.9 16.9 8.4 - - 50.6 CCF ( 100% )Lake Lanao ha - 750 1,500 1,500 750 - - 4,500 1.08 0.026 - 19.5 38.9 38.9 19.5 - - 116.8 CCF ( 100% )

Subtotal Sustainable Forest Management - 46.5 92.9 92.9 46.5 - - 278.7 B. Agro-forestry with community participation /b

1. Agro-forestry- establishment and 3 years maintenance: ADB Share /c Chico River Basin - Agroforestry (establishment & 3 yrs maintenance) ha - 105 381.5 1,046.5 420 413 364 2,730 28.20 0.677 - 71.1 258.4 708.9 284.5 279.8 246.6 1,849.3 ADB ( 100% )Wahig-Inabanga - Agroforestry ha - 105 241.5 304.5 168 147 84 1,050 28.20 0.677 - 71.1 163.6 206.3 113.8 99.6 56.9 711.3 ADB ( 100% )Upper Bukidnon - Agroforestry ha - 875 2,012.5 3,990 1,835.75 1,660.75 1,281 11,655 28.20 0.677 - 592.7 1,363.3 2,702.8 1,243.5 1,125.0 867.7 7,895.1 ADB ( 100% )Lake Lanao - Agroforestry ha - 168 260.4 575.4 268.8 222.6 184.8 1,680 28.20 0.677 - 113.8 176.4 389.8 182.1 150.8 125.2 1,138.0 ADB ( 100% )

Subtotal Agro-forestry- establishment and 3 years maintenance: ADB Share - 848.8 1,961.7 4,007.8 1,823.9 1,655.1 1,296.4 11,593.7 2. Agro-forestry -establishment & 3 years maintenance: Beneficiary Contribution /d

Chico River Basin - Agroforestry ha - 45 163.5 448.5 180 177 156 1,170 28.20 0.677 - 30.5 110.8 303.8 121.9 119.9 105.7 792.6 BEN ( < 100% >, FT )Wahig-Inabanga - Agroforestry ha - 45 103.5 130.5 72 63 36 450 28.20 0.677 - 30.5 70.1 88.4 48.8 42.7 24.4 304.8 BEN ( < 100% >, FT )Upper Bukidnon - Agroforestry ha - 375 862.5 1,710 786.75 711.75 549 4,995 28.20 0.677 - 254.0 584.3 1,158.4 532.9 482.1 371.9 3,383.6 BEN ( < 100% >, FT )Lake Lanao - Agroforestry ha - 72 111.6 246.6 115.2 95.4 79.2 720 28.20 0.677 - 48.8 75.6 167.0 78.0 64.6 53.7 487.7 BEN ( < 100% >, FT )

Subtotal Agro-forestry -establishment & 3 years maintenance: Beneficiary Contribution - 363.8 840.7 1,717.6 781.7 709.3 555.6 4,968.7 Subtotal Agro-forestry with community participation - 1,212.5 2,802.4 5,725.4 2,605.6 2,364.5 1,852.0 16,562.4 C. Commercial forest plantation with community participation /e

1. Commercial forest plantation_ Establishment & 3 years maintenance: ADB Share /f Chico River Basin: CPF-CP ha - 279.5 642.35 809.9 446.9 390.95 223.4 2,793 26.26 0.631 - 176.3 405.1 510.8 281.9 246.6 140.9 1,761.5 ADB ( 100% )Wahig-Inabanga - CPF-CP ha - 5 11.5 14.5 8 7 4 50 26.26 0.631 - 3.2 7.3 9.1 5.0 4.4 2.5 31.5 ADB ( 100% )Upper Bukidnon - CFP-CP ha - 52.5 138.25 416.5 166.95 158.2 145.6 1,078 26.26 0.631 - 33.1 87.2 262.7 105.3 99.8 91.8 679.9 ADB ( 100% )Lake Lanao - CFP-CP ha - 17.5 54.25 75.95 38.5 36.4 22.4 245 26.26 0.631 - 11.0 34.2 47.9 24.3 23.0 14.1 154.5 ADB ( 100% )

Subtotal Commercial forest plantation_ Establishment & 3 years maintenance: ADB Share - 223.6 533.8 830.5 416.5 373.7 249.4 2,627.5 2. Commercial forest plantation _Establishment & 3 years maintenance: Beneficiary share /g

Chico River Basin - CPF-CP ha - 119.5 275.35 347.2 191.5 167.65 95.8 1,197 26.26 0.631 - 75.4 173.7 219.0 120.8 105.7 60.4 754.9 BEN ( <100% >, FT )Wahig-Inabanga - CPF-CP ha - 2.5 4.25 5.8 3.25 2.6 1.6 20 26.26 0.631 - 1.6 2.7 3.7 2.0 1.6 1.0 12.6 BEN ( <100% >, FT )Upper Bukidnon - CFP-CP ha - 22.5 59.25 178.5 71.55 67.8 62.4 462 26.26 0.631 - 14.2 37.4 112.6 45.1 42.8 39.4 291.4 BEN ( <100% >, FT )Lake Lanao - CFP-CP ha - 7.5 23.25 32.55 16.5 15.6 9.6 105 26.26 0.631 - 4.7 14.7 20.5 10.4 9.8 6.1 66.2 BEN ( <100% >, FT )

Subtotal Commercial forest plantation _Establishment & 3 years maintenance: Beneficiary share - 95.9 228.4 355.7 178.4 160.0 106.8 1,125.2 Total - 1,578.4 3,657.5 7,004.6 3,246.9 2,898.2 2,208.2 20,593.8 _________________________________\a SFM: includes Preharvest planning, supervision & w orkers' training. Demo areas w ill be managed/covered for 2 years., w ith unit cost of P1,000/ha for 1 year\b Agro-foresty projects are cost-shared w ith the beneficiary-communities (shoulder equivalent to 30% of the project area/cost)\c Phase: 1st yr - 50%, 2 & 3 yrs @ 15%, 4 yr - 20%\d Beneficiary share - equivalent to 30% of agro-foresty project area\e Phase- 1 yr 50%, 2 & 3 yrs @ 15%. 4 yr - 20%\f Project (ADB) Share - 70%\g Beneficiary share: Commercial forest plantation (30% of project area/cost)

178

Appe

ndix 2

Table 4. Rehabilitation and improvement of rural infrastructure Detailed Costs Quantities Unit Cost Unit Cost Base Cost ($ '000)

Unit 2013 2014 2015 2016 2017 2018 2019 Total (P'000) ($ '000) 2013 2014 2015 2016 2017 2018 2019 Total Fin. Rule

I. Investment Costs (100%) Exclusive of

Taxes

A. Rural Infrastructure (<100%>FT) Inclusive of

Taxes1. Chico rural infrastructure /b

Rural access km - 13.2 23.2 25.8 34.8 53.8 25.2 176 1,750.60 42.046 - 555.0 975.5 1,084.8 1,463.2 2,262.1 1,059.6 7,400.1 ADB ( 100% )Small-scale irrigation improvement ha - 48.6 102.6 214.2 303 322 129.6 1,120 97.26 2.336 - 113.5 239.7 500.3 707.8 752.2 302.7 2,616.2 ADB ( 100% )Potable w ater supply (level II) no. - 6 16 26 36 16 - 100 972.55 23.359 - 140.2 373.7 607.3 840.9 373.7 - 2,335.9 ADB ( 100% )Provincial trading center /c center - - 0.6 0.4 - - - 1 3,890.21 93.436 - - 56.1 37.4 - - - 93.4 ADB ( 100% )

Subtotal Chico rural infrastructure - 808.7 1,644.9 2,229.9 3,011.9 3,388.0 1,362.3 12,445.7 2. Wahig-Inabanga rural infrastructure /d

Rural access km - 4.2 10.6 13.6 23.6 12 - 64 1,750.60 42.046 - 176.6 445.7 571.8 992.3 504.6 - 2,691.0 ADB ( 100% )Small-scale irrigation improvement ha - 16.2 37.8 50.4 66 29.6 - 200 97.26 2.336 - 37.8 88.3 117.7 154.2 69.1 - 467.2 ADB ( 100% )Potable w ater supply (level II) no. - 1.8 3.6 7 3.6 - - 16 972.55 23.359 - 42.0 84.1 163.5 84.1 - - 373.7 ADB ( 100% )

Subtotal Wahig-Inabanga rural infrastructure - 256.5 618.1 853.1 1,230.6 573.7 - 3,531.9 3. Upper Bukidnon rural infrastructure /e

Rural access km - 4.8 15.2 22.4 26.4 11.2 - 80 1,750.60 42.046 - 201.8 639.1 941.8 1,110.0 470.9 - 3,363.7 IFAD ( 100% )Foot trail km - 40.8 27.2 - - - - 68 70.03 1.682 - 68.6 45.7 - - - - 114.4 IFAD ( 100% )Small-scale irrigation improvement ha - 19.2 41 62 77.4 32.4 - 232 97.26 2.336 - 44.8 95.8 144.8 180.8 75.7 - 541.9 IFAD ( 100% )Potable w ater supply (level II) no. - 4.8 8 8 3.2 - - 24 972.55 23.359 - 112.1 186.9 186.9 74.7 - - 560.6 IFAD ( 100% )

Subtotal Upper Bukidnon rural infrastructure - 427.4 967.5 1,273.5 1,365.6 546.6 - 4,580.6 4. Lake Lanao rural infrastructure

Rural access km - 4.2 13.6 31.2 53.8 25.2 - 128 1,750.60 42.046 - 176.6 571.8 1,311.8 2,262.1 1,059.6 - 5,381.9 ADB ( 100% )Small-scale irrigation improvement ha - 27 72 154.8 218.4 281.8 126 880 97.26 2.336 - 63.1 168.2 361.6 510.2 658.3 294.3 2,055.6 ADB ( 100% )Potable w ater supply (level II) no. - 3 6.8 11.6 20.6 26.8 11.2 80 972.55 23.359 - 70.1 158.8 271.0 481.2 626.0 261.6 1,868.7 ADB ( 100% )

Subtotal Lake Lanao rural infrastructure - 309.7 898.9 1,944.4 3,253.4 2,343.8 555.9 9,306.2 5. Other Infrastructures LS - - 0.6 1 1 0.4 - 3 3,501.19 84.093 - - 50.5 84.1 84.1 33.6 - 252.3 ADB ( 100% )6. Performance Based Grants

ADB_ Performance Based Grants LS - - 0.6 1 1 1 0.4 4 28,836.40 692.600 - - 415.6 692.6 692.6 692.6 277.0 2,770.4 ADB ( 100% )IFAD Performance Based Grants LS - - 0.6 0.4 - - - 1 29,769.03 715.000 - - 429.0 286.0 - - - 715.0 IFAD ( 100% )

Subtotal Performance Based Grants - - 844.6 978.6 692.6 692.6 277.0 3,485.4 Subtotal Rural Infrastructure - 1,802.3 5,024.4 7,363.6 9,638.2 7,578.4 2,195.3 33,602.1 B. Rural Infrastructure_LGU Counterpart

1. Chico rural infrastructure /f Rural access km - 3 5.6 6.6 8.8 13.6 6.4 44 1,750.60 42.046 - 126.1 235.5 277.5 370.0 571.8 269.1 1,850.0 LGUS ( < 100% >, FT )Small-scale irrigation improvement ha - 12 25.4 53.6 76 80.6 32.4 280 97.26 2.336 - 28.0 59.3 125.2 177.5 188.3 75.7 654.1 LGUS ( < 100% >, FT )Potable w ater supply (level II) no. - 1.2 3.8 6.8 9.2 4 - 25 972.55 23.359 - 28.0 88.8 158.8 214.9 93.4 - 584.0 LGUS ( < 100% >, FT )Provincial trading center /g center - - 0.6 0.4 - - - 1 972.55 23.359 - - 14.0 9.3 - - - 23.4 LGUS ( < 100% >, FT )

Subtotal Chico rural infrastructure - 182.2 397.6 570.9 762.4 853.5 344.8 3,111.4 2. Wahig-Inabanga rural infrastructure /h

Rural access km - 1.2 2.6 3.6 5.8 2.8 - 16 1,750.60 42.046 - 50.5 109.3 151.4 243.9 117.7 - 672.7 LGUS ( < 100% >, FT )Small-scale irrigation improvement ha - 3.6 9 12.8 17 7.6 - 50 97.26 2.336 - 8.4 21.0 29.9 39.7 17.8 - 116.8 LGUS ( < 100% >, FT )Potable w ater supply (level II) no. - 0.6 1 1.6 0.8 - - 4 972.55 23.359 - 14.0 23.4 37.4 18.7 - - 93.4 LGUS ( < 100% >, FT )

Subtotal Wahig-Inabanga rural infrastructure - 72.9 153.7 218.6 302.3 135.5 - 883.0 3. Upper Bukidnon rural infrastructure /i

Rural access km - 1.2 3.8 5.6 6.6 2.8 - 20 1,750.60 42.046 - 50.5 159.8 235.5 277.5 117.7 - 840.9 LGUS ( < 100% >, FT )Foot trail km - 10.2 6.8 - - - - 17 72.94 1.752 - 17.9 11.9 - - - - 29.8 LGUS ( < 100% >, FT )Small-scale irrigation improvement ha - 4.8 10.4 15.6 19.2 8 - 58 97.26 2.336 - 11.2 24.3 36.4 44.8 18.7 - 135.5 LGUS ( < 100% >, FT )Potable w ater supply (level II) no. - 1.2 2 2 0.8 - - 6 972.55 23.359 - 28.0 46.7 46.7 18.7 - - 140.2 LGUS ( < 100% >, FT )

Subtotal Upper Bukidnon rural infrastructure - 107.6 242.7 318.6 341.0 136.4 - 1,146.3 4. Lake Lanao rural infrastructure

Rural access km - 1.2 3.8 8 13 6 - 32 1,750.60 42.046 - 50.5 159.8 336.4 546.6 252.3 - 1,345.5 LGUS ( < 100% >, FT )Small-scale irrigation improvement ha - 6 17.8 39.2 54.8 70.6 31.6 220 97.26 2.336 - 14.0 41.6 91.6 128.0 164.9 73.8 513.9 LGUS ( < 100% >, FT )Potable w ater supply (level II) no. - 0.6 1.6 3.2 5.2 6.6 2.8 20 972.55 23.359 - 14.0 37.4 74.7 121.5 154.2 65.4 467.2 LGUS ( < 100% >, FT )

Subtotal Lake Lanao rural infrastructure - 78.5 238.7 502.7 796.1 571.4 139.2 2,326.6 5. Other Infrastructures LS - - - - 0.6 1.6 2.6 4.8 392.43 9.425 - - - - 5.7 15.1 24.5 45.2 LGUS ( < 100% >, FT )

Total Investment Costs - 2,243.5 6,057.1 8,974.4 11,845.7 9,290.3 2,703.8 41,114.7 II. Recurrent Costs

A. Rural Infrastructure O&M Rural roads routine /j km - - - - 55 94 132 281 58.35 1.402 - - - - 77.1 131.7 185.0 393.8 LGUS ( < 100% >, FT )Small-Scale irrigation improvement ha - - - - 229 374 755 1,358 0.97 0.023 - - - - 5.4 8.8 17.7 31.8 BEN ( < 100% >, FT )Potable w ater supply no. - - - - 32 50 77 159 48.63 1.168 - - - - 37.4 58.4 89.9 185.7 BEN ( < 100% >, FT )Trading center center - - - - - 1 1 2 121.57 2.920 - - - - - 2.9 2.9 5.8 LGUS ( < 100% >, FT )

Total - 2,243.5 6,057.1 8,974.4 11,965.5 9,492.1 2,999.3 41,731.8 _________________________________\a Rehabilitation and improvement of rural infrastructure to support investments in production areas\b Through DA for areas w ithin CHARM project ($10 Million)\c For Mtn Province w here the existing trading center of La Trinidad, Benguet is too distant.\d Wahig-Inabanga river basin\e Upper Bukidnon river basin\f Chico w atershed\g For Mt Province w here the existing trading center of La Trinidad, Benguet is too distant.\h Wahig-Inabanga river basin\i Upper Bukidnon river basin\j LGU responsibility

179

Appe

ndix 2

Table 5. Livelihood Enhancement thru conservation farming Unit UnitDetailed Costs Quantities Cost Cost Base Cost ($ '000)

Unit 2013 2014 2015 2016 2017 2018 2019 Total (P '000) ($ '000) 2013 2014 2015 2016 2017 2018 2019 Total Fin. Rule

I. Investment Costs A. Chico

1. Hands-on Training cum practicum Natural Vegetative Strips - meals /a batch - 13 13 13 13 13 - 65 4.90 0.118 - 1.5 1.5 1.5 1.5 1.5 - 7.7 ADB ( 100% )Natural Vegetative Strips - materials (seeds, seedlings, organic fertilizers, and ruminant) /b ha - 390 390 390 390 390 - 1,950 16.34 0.392 - 153.0 153.0 153.0 153.0 153.0 - 765.2 ADB ( 100% )Bio-Intensive Gardening/Organic Vegetable Farming - Meals batch - 13 13 13 13 13 - 65 4.90 0.118 - 1.5 1.5 1.5 1.5 1.5 - 7.7 ADB ( 100% )Bio-Intensive Gardening/Organic Vegetable Farming - materials/inputs (seeds, organic fertilizers, insect repellant) /c batch - 13 13 13 13 13 - 65 10.89 0.262 - 3.4 3.4 3.4 3.4 3.4 - 17.0 ADB ( 100% )Bio-Intensive Gardening/Organic Vegetable Farming - Installation of Green House /d pc - 26 26 26 26 26 - 130 87.14 2.093 - 54.4 54.4 54.4 54.4 54.4 - 272.1 ADB ( 100% )Masipag Rice Technology - meals /e batch - 3 3 3 3 3 3 18 4.90 0.118 - 0.4 0.4 0.4 0.4 0.4 0.4 2.1 ADB ( 100% )Masipag Rice Technology - materials/inputs (seeds, organic fertilizers, insect repellant) /f batch - 3 3 3 3 3 3 18 5.61 0.135 - 0.4 0.4 0.4 0.4 0.4 0.4 2.4 ADB ( 100% )Agro-forestry (intercropped w ith cash crops) - meals /g batch - 13 13 13 13 13 - 65 4.90 0.118 - 1.5 1.5 1.5 1.5 1.5 - 7.7 ADB ( 100% )Agro-forestry (intercropped w ith cash crops) - materials/inputs (seeds, organic fertilizers, insect repellant) ha - 65 65 65 65 65 - 325 32.68 0.785 - 51.0 51.0 51.0 51.0 51.0 - 255.1 ADB ( 100% )Community nursery establishment module - 13 13 13 13 13 - 65 16.34 0.392 - 5.1 5.1 5.1 5.1 5.1 - 25.5 ADB ( 100% )

Subtotal Hands-on Training cum practicum - 272.3 272.3 272.3 272.3 272.3 0.8 1,362.4 2. Training on compost making & vermi-culture

Meals batch - 26 26 26 26 26 - 130 4.90 0.118 - 3.1 3.1 3.1 3.1 3.1 - 15.3 ADB ( 100% )Materials/ Inputs (w orms, shading materials) batch - 26 26 26 26 26 - 130 5.45 0.131 - 3.4 3.4 3.4 3.4 3.4 - 17.0 ADB ( 100% )

Subtotal Training on compost making & vermi-culture - 6.5 6.5 6.5 6.5 6.5 - 32.3 3. Provision of Inputs for technology replication/upscaling for deserving vulnerable farming households /h group - - 26 26 26 26 26 130 48.63 1.168 - - 30.4 30.4 30.4 30.4 30.4 151.8 ADB ( 100% )

Subtotal Chico - 278.8 309.2 309.2 309.2 309.2 31.1 1,546.5

B. Wahig-Inabanga 1. Hands-on Training cum practicum

Natural Vegetative Strips - meals batch - 5 5 5 5 5 - 25 4.90 0.118 - 0.6 0.6 0.6 0.6 0.6 - 2.9 ADB ( 100% )Natural Vegetative Strips - materials (seeds, seedlings, organic fertilizers, and ruminant) ha - 150 150 150 150 150 - 750 16.34 0.392 - 58.9 58.9 58.9 58.9 58.9 - 294.3 ADB ( 100% )Bio-Intensive Gardening/Organic Vegetable Farming - Meals batch - 5 5 5 5 5 - 25 4.90 0.118 - 0.6 0.6 0.6 0.6 0.6 - 2.9 ADB ( 100% )Bio-Intensive Gardening/Organic Vegetable Farming - materials/inputs (seeds, organic fertilizers, insect repellant) batch - 5 5 5 5 5 - 25 10.89 0.262 - 1.3 1.3 1.3 1.3 1.3 - 6.5 ADB ( 100% )Bio-Intensive Gardening/Organic Vegetable Farming - Installation of Green House pc - 10 10 10 10 10 - 50 87.14 2.093 - 20.9 20.9 20.9 20.9 20.9 - 104.7 ADB ( 100% )Masipag Rice Technology - meals batch - 1 1 1 1 1 1 6 4.90 0.118 - 0.1 0.1 0.1 0.1 0.1 0.1 0.7 ADB ( 100% )Masipag Rice Technology - materials/inputs (seeds, organic fertilizers, insect repellant) batch - 1 1 1 1 1 1 6 5.61 0.135 - 0.1 0.1 0.1 0.1 0.1 0.1 0.8 ADB ( 100% )Agro-forestry (intercropped w ith cash crops) - meals batch - 5 5 5 5 5 - 25 4.90 0.118 - 0.6 0.6 0.6 0.6 0.6 - 2.9 ADB ( 100% )Agro-forestry (intercropped w ith cash crops) - materials/inputs (seeds, organic fertilizers, insect repellant) ha - 25 25 25 25 25 - 125 32.68 0.785 - 19.6 19.6 19.6 19.6 19.6 - 98.1 ADB ( 100% )Community nursery establishment module - 5 5 5 5 5 - 25 16.34 0.392 - 2.0 2.0 2.0 2.0 2.0 - 9.8 ADB ( 100% )

Subtotal Hands-on Training cum practicum - 104.7 104.7 104.7 104.7 104.7 0.3 523.8 2. Training on compost making & vermi-culture

Meals batch - 10 10 10 10 10 - 50 4.90 0.118 - 1.2 1.2 1.2 1.2 1.2 - 5.9 ADB ( 100% )Materials/ Inputs (w orms, shading materials) batch - 10 10 10 10 10 - 50 5.45 0.131 - 1.3 1.3 1.3 1.3 1.3 - 6.5 ADB ( 100% )

Subtotal Training on compost making & vermi-culture - 2.5 2.5 2.5 2.5 2.5 - 12.4 3. Provision of Inputs for technology replication/upscaling for deserving vulneable farming households group - - 10 10 10 10 10 50 48.63 1.168 - - 11.7 11.7 11.7 11.7 11.7 58.4 ADB ( 100% )

Subtotal Wahig-Inabanga - 107.2 118.9 118.9 118.9 118.9 11.9 594.6

C. Upper Bukidnon 1. Hands-on Training cum practicum

Natural Vegetative Strips - meals batch - 56 56 56 56 56 - 280 4.90 0.118 - 6.6 6.6 6.6 6.6 6.6 - 33.0 IFAD ( 100% )Natural Vegetative Strips - materials (seeds, seedlings, organic fertilizers, and ruminant) ha - 1,680 1,680 1,680 1,680 1,680 - 8,400 16.34 0.392 - 659.2 659.2 659.2 659.2 659.2 - 3,296.2 IFAD ( 100% )Bio-Intensive Gardening/Organic Vegetable Farming - Meals batch - 56 56 56 56 56 - 280 4.90 0.118 - 6.6 6.6 6.6 6.6 6.6 - 33.0 IFAD ( 100% )Bio-Intensive Gardening/Organic Vegetable Farming - materials/inputs (seeds, organic fertilizers, insect repellant) batch - 56 56 56 56 56 - 280 10.89 0.262 - 14.6 14.6 14.6 14.6 14.6 - 73.2 IFAD ( 100% )Bio-Intensive Gardening/Organic Vegetable Farming - Installation of Green House pc - 111 111 111 111 111 - 555 87.14 2.093 - 232.3 232.3 232.3 232.3 232.3 - 1,161.6 IFAD ( 100% )Masipag Rice Technology - meals batch - 13 13 13 13 13 13 78 4.90 0.118 - 1.5 1.5 1.5 1.5 1.5 1.5 9.2 IFAD ( 100% )Masipag Rice Technology - materials/inputs (seeds, organic fertilizers, insect repellant) batch - 13 13 13 13 13 13 78 5.61 0.135 - 1.8 1.8 1.8 1.8 1.8 1.8 10.5 IFAD ( 100% )Agro-forestry (intercropped w ith cash crops) - meals batch - 56 56 56 56 56 - 280 4.90 0.118 - 6.6 6.6 6.6 6.6 6.6 - 33.0 IFAD ( 100% )Agro-forestry (intercropped w ith cash crops) - materials/inputs (seeds, organic fertilizers, insect repellant) ha - 280 280 280 280 280 - 1,400 32.68 0.785 - 219.8 219.8 219.8 219.8 219.8 - 1,098.9 IFAD ( 100% )Community nursery establishment module - 56 56 56 56 56 - 280 16.34 0.392 - 22.0 22.0 22.0 22.0 22.0 - 109.9 IFAD ( 100% )

Subtotal Hands-on Training cum practicum - 1,171.0 1,171.0 1,171.0 1,171.0 1,171.0 3.3 5,858.3

2. Training on compost making & vermi-culture Meals batch - 111 111 111 111 111 - 555 4.90 0.118 - 13.1 13.1 13.1 13.1 13.1 - 65.3 IFAD ( 100% )Materials/ Inputs (w orms, shading materials) batch - 111 111 111 111 111 - 555 5.45 0.131 - 14.5 14.5 14.5 14.5 14.5 - 72.6 IFAD ( 100% )

Subtotal Training on compost making & vermi-culture - 27.6 27.6 27.6 27.6 27.6 - 137.9 3. Provision of Inputs for technology replication/upscaling for deserving vulneable farming households group - - 111 111 111 111 111 555 48.63 1.168 - - 129.6 129.6 129.6 129.6 129.6 648.2 IFAD ( 100% )

Subtotal Upper Bukidnon - 1,198.6 1,328.2 1,328.2 1,328.2 1,328.2 132.9 6,644.5 D. Lake Lanao

1. Hands-on Training cum practicum Natural Vegetative Strips - meals batch - 8 8 8 8 8 - 40 4.90 0.118 - 0.9 0.9 0.9 0.9 0.9 - 4.7 ADB ( 100% )Natural Vegetative Strips - materials (seeds, seedlings, organic fertilizers, and ruminant) ha - 240 240 240 240 240 - 1,200 16.34 0.392 - 94.2 94.2 94.2 94.2 94.2 - 470.9 ADB ( 100% )Bio-Intensive Gardening/Organic Vegetable Farming - Meals batch - 8 8 8 8 8 - 40 4.90 0.118 - 0.9 0.9 0.9 0.9 0.9 - 4.7 ADB ( 100% )Bio-Intensive Gardening/Organic Vegetable Farming - materials/inputs (seeds, organic fertilizers, insect repellant) batch - 8 8 8 8 8 - 40 10.89 0.262 - 2.1 2.1 2.1 2.1 2.1 - 10.5 ADB ( 100% )Bio-Intensive Gardening/Organic Vegetable Farming - Installation of Green House pc - 16 16 16 16 16 - 80 87.14 2.093 - 33.5 33.5 33.5 33.5 33.5 - 167.4 ADB ( 100% )Masipag Rice Technology - meals batch - 2 2 2 2 2 2 12 4.90 0.118 - 0.2 0.2 0.2 0.2 0.2 0.2 1.4 ADB ( 100% )Masipag Rice Technology - materials/inputs (seeds, organic fertilizers, insect repellant) batch - 2 2 2 2 2 2 12 5.61 0.135 - 0.3 0.3 0.3 0.3 0.3 0.3 1.6 ADB ( 100% )Agro-forestry (intercropped w ith cash crops) - meals batch - 8 8 8 8 8 - 40 4.90 0.118 - 0.9 0.9 0.9 0.9 0.9 - 4.7 ADB ( 100% )Agro-forestry (intercropped w ith cash crops) - materials/inputs (seeds, organic fertilizers, insect repellant) ha - 40 40 40 40 40 - 200 32.68 0.785 - 31.4 31.4 31.4 31.4 31.4 - 157.0 ADB ( 100% )Community nursery establishment module - 8 8 8 8 8 - 40 16.34 0.392 - 3.1 3.1 3.1 3.1 3.1 - 15.7 ADB ( 100% )

Subtotal Hands-on Training cum practicum - 167.6 167.6 167.6 167.6 167.6 0.5 838.6

2. Training on compost making & vermi-culture Meals batch - 16 16 16 16 16 - 80 4.90 0.118 - 1.9 1.9 1.9 1.9 1.9 - 9.4 ADB ( 100% )Materials/ Inputs (w orms, shading materials) batch - 16 16 16 16 16 - 80 5.45 0.131 - 2.1 2.1 2.1 2.1 2.1 - 10.5 ADB ( 100% )

Subtotal Training on compost making & vermi-culture - 4.0 4.0 4.0 4.0 4.0 - 19.9 3. Provision of Inputs for technology replication/upscaling for deserving vulneable farming households group - - 16 16 16 16 16 80 48.63 1.168 - - 18.7 18.7 18.7 18.7 18.7 93.4 ADB ( 100% )

Total - 1,756.2 1,946.5 1,946.5 1,946.5 1,946.5 195.2 9,737.5 _________________________________\a Conduct 1 batch/course per barangay (Max:30 person per batch)\b P 15,000/ha for materials such as seed, seedling, organic fertilizers and ruminant\c Materials/inputs such as seeds, organic fertilizers, inset repellant @ P10,000 per batch\d Demonstration farms shall serve as farmers' f ield school\e Trials shall be done w ithin CIS service area. - irrigated agriculture; average - 25 ha per barangay\f Materials/inputs - seeds, organic fertilizers, insect repellant\g Agro-forestry w ith 70:30 ratio (70% fruit trees and 30% perennial trees); at least 5 ha per barangay\h P50,000 per Self help Group/Org per barangay

(100%) Exclusive of Taxes

180

Appe

ndix 2

Table 6. Invesment in Watershed Management /a Detailed Costs Quantities Unit Cost Unit Cost Base Cost ($ '000)


I. Investment Costs /b (100%) Exclusive

of TaxesNurseries for Mossy Forest- Indigenous Spp /c unit - 1 1 1 - - - 3 241.48 5.800 - 5.8 5.8 5.8 - - - 17.4 GEF ( 100% )Assisted Natural Regeneration /d ha - 12 20 20 8 - - 60 14.57 0.350 - 4.2 7.0 7.0 2.8 - - 21.0 GEF ( 100% )Buffers w ith Mixed Vegetation Cover /e ha - 12 20 20 8 - - 60 14.57 0.350 - 4.2 7.0 7.0 2.8 - - 21.0 GEF ( 100% )IPO - Revolving Fund Establishment (Seed Capital) /f IPO - 1 2.5 3 1.5 - - 8 832.70 20.000 - 20.0 50.0 60.0 30.0 - - 160.0 GEF ( 100% )Pilot demonstration activities for emissions reduction /g no - 0.5 0.8 1 0.5 0.2 - 3 4,194.31 100.740 - 50.4 80.6 100.7 50.4 20.1 - 302.2 GEF ( 100% )Bioenergy Plantation In Bukidnon /h ha - 54 132 166 68 - - 420 29.19 0.701 - 37.9 92.5 116.4 47.7 - - 294.4 CCF ( 100% )Study on establishment of Charcoal Retort w ith the private sector /i unit - - 0.5 0.3 0.2 - - 1 4,163.50 100.000 - - 50.0 30.0 20.0 - - 100.0 CCF ( 100% )

Total - 122.4 292.9 326.9 153.6 20.1 - 916.0 _________________________________\a GEF & CCF Investments in Watershed Management\b GEF Investment in w atershed management\c Nursery - for Mossy Forest Species\d ANR in Chico RB\e Creating Buffers -Biodiversity\f Indigenous People's Groups for PES: to be released through Block Grants\g Climate Change (1) -GEF funded (Phase of implementation - 50%, 30%, 20%)\h Identif ication & demarcation & establishment of biomass enegy plantations - Bukidnon\i Feasibility study on Government's participation in pilot charcoal retort investment w ith the Private Sector, in Bukidnon or Misamis Or. (completion - 50%, 30%, 20%)%

181

Appe

ndix 2

Table 7. Preparatory Orientation and Workshops Unit ODetailed Costs Quantities Unit Cost Cost ($ Base Cost ($ '000)

Unit 2013 2014 2015 2016 2017 2018 2019 Total (P '000) '000) 2013 2014 2015 2016 2017 2018 2019 Total Fin. Rule

I. Investment Costs A. Institutional & policy support: national /a

1. Orientation /bCentral off ice venue/materials LS 1 1 1 - - - - 3 9.81 0.236 0.2 0.2 0.2 - - - - 0.7 ADB ( 100% )Central off ice trainers/facilitators LS 1 1 1 - - - - 3 27.23 0.654 0.7 0.7 0.7 - - - - 2.0 ADB ( 100% )Region 10 venue/materials /c LS 1 1 1 - - - - 3 22.87 0.549 0.5 0.5 0.5 - - - - 1.6 IFAD ( 100% )Region 10 trainers/facilitators LS 1 1 1 - - - - 3 65.35 1.570 1.6 1.6 1.6 - - - - 4.7 IFAD ( 100% )Region 10 travel/accommodation /d LS 1 1 1 - - - - 3 65.35 1.570 1.6 1.6 1.6 - - - - 4.7 IFAD ( 100% )Region 7 venue/materials /e LS 1 1 - - - - - 2 11.44 0.275 0.3 0.3 - - - - - 0.5 ADB ( 100% )Region 7 trainers/facilitators LS 1 1 - - - - - 2 54.46 1.308 1.3 1.3 - - - - - 2.6 ADB ( 100% )Region 7 travel/accommodation LS 1 1 - - - - - 2 35.40 0.850 0.9 0.9 - - - - - 1.7 ADB ( 100% )CAR (Chico) venue/materials LS 1 1 1 - - - - 3 15.25 0.366 0.4 0.4 0.4 - - - - 1.1 ADB ( 100% )CAR (Chico) trainers/facilitators LS 1 1 1 - - - - 3 54.46 1.308 1.3 1.3 1.3 - - - - 3.9 ADB ( 100% )CAR travel/accommodation LS 1 1 1 - - - - 3 43.57 1.047 1.0 1.0 1.0 - - - - 3.1 ADB ( 100% )

Subtotal Orientation 9.7 9.7 7.3 - - - - 26.8 2. Trainers training on phased implementation. /f

Venue/materials LS 1 2 2 - 2 - - 7 32.68 0.785 0.8 1.6 1.6 - 1.6 - - 5.5 ADB ( 100% )Travel/accommodation /g LS 1 2 2 - 2 - - 7 163.39 3.924 3.9 7.8 7.8 - 7.8 - - 27.5 ADB ( 100% )Trainers/facilitators LS 1 2 2 - 2 - - 7 108.93 2.616 2.6 5.2 5.2 - 5.2 - - 18.3 ADB ( 100% )

Subtotal Trainers training on phased implementation. 7.3 14.7 14.7 - 14.7 - - 51.3

3. Legislative agenda and policy adjustment /h Venue/materials LS - 6 6 - 6 6 - 24 54.46 1.308 - 7.8 7.8 - 7.8 7.8 - 31.4 ADB ( 100% )Travel/accommodation /i LS - 6 6 - 6 6 - 24 163.39 3.924 - 23.5 23.5 - 23.5 23.5 - 94.2 ADB ( 100% )Trainers/facilitators LS - 6 6 - 6 6 - 24 185.18 4.448 - 26.7 26.7 - 26.7 26.7 - 106.7 ADB ( 100% )

Subtotal Legislative agenda and policy adjustment - 58.1 58.1 - 58.1 58.1 - 232.3 Subtotal Institutional & policy support: national 17.1 82.5 80.0 - 72.7 58.1 - 310.4

B. Institutional & policy support: local /j

1. Orientation on INREM /k Venue/materials Province 4 9 2 - 2 - - 17 14.10 0.339 1.4 3.0 0.7 - 0.7 - - 5.8 ADB ( 100% )Travel/accommodation /l Province 4 9 2 - 2 - - 17 10.89 0.262 1.0 2.4 0.5 - 0.5 - - 4.4 ADB ( 100% )Trainers/facilitators Province 4 9 2 - 2 - - 17 54.46 1.308 5.2 11.8 2.6 - 2.6 - - 22.2 ADB ( 100% )

Subtotal Orientation on INREM 7.6 17.2 3.8 - 3.8 - - 32.4

2. Consensus building&dispute resolution /m Venue/materials Province - 4 5 - 5 - - 14 32.68 0.785 - 3.1 3.9 - 3.9 - - 11.0 ADB ( 100% )Travel/accommodation Province - 4 5 - 5 - - 14 32.68 0.785 - 3.1 3.9 - 3.9 - - 11.0 ADB ( 100% )Trainers/facilitators Province - 4 5 - 5 - - 14 326.78 7.849 - 31.4 39.2 - 39.2 - - 109.9 ADB ( 100% )

Subtotal Consensus building&dispute resolution - 37.7 47.1 - 47.1 - - 131.9

3. Enforcement program & local legislation /n Venue/materials Province - 4 5 - 5 4 - 18 32.68 0.785 - 3.1 3.9 - 3.9 3.1 - 14.1 ADB ( 100% )Travel/accommodation Province - 4 5 - 5 4 - 18 32.68 0.785 - 3.1 3.9 - 3.9 3.1 - 14.1 ADB ( 100% )Trainers/facilitators Province - 4 5 - 5 4 - 18 326.78 7.849 - 31.4 39.2 - 39.2 31.4 - 141.3 ADB ( 100% )

Subtotal Enforcement program & local legislation - 37.7 47.1 - 47.1 37.7 - 169.5

4. LGU enterprise management /o Venue/materials Province - 4 5 - 5 - - 14 32.68 0.785 - 3.1 3.9 - 3.9 - - 11.0 IFAD ( 100% )Travel/accommodation Province - 4 5 - 5 - - 14 32.68 0.785 - 3.1 3.9 - 3.9 - - 11.0 IFAD ( 100% )Trainers/facilitators Province - 4 5 - 5 - - 14 326.78 7.849 - 31.4 39.2 - 39.2 - - 109.9 IFAD ( 100% )

Subtotal LGU enterprise management - 37.7 47.1 - 47.1 - - 131.9

Subtotal Institutional & policy support: local 7.6 130.2 145.1 - 145.1 37.7 - 465.7 C. Preparation for LUA & URB Management Planning /p

1. Use of GIS for ENR A, M&E /q no. 3 8 8 4 - - - 23 265.02 6.365 19.1 50.9 50.9 25.5 - - - 146.4 ADB ( 100% )2. Land use planning for LGUs /r no. 3 8 8 4 - - - 23 250.43 6.015 18.0 48.1 48.1 24.1 - - - 138.3 ADB ( 100% )3. Community mapping and land use zoning /s no. 3 8 8 4 - - - 23 393.88 9.460 28.4 75.7 75.7 37.8 - - - 217.6 ADB ( 100% )4. Assistance for IP planning /t no. 3 8 8 4 - - - 23 393.88 9.460 28.4 75.7 75.7 37.8 - - - 217.6 IFAD ( 100% )5. Assistance for social assessment /u no. 3 8 8 4 - - - 23 393.88 9.460 28.4 75.7 75.7 37.8 - - - 217.6 ADB ( 100% )

Subtotal Preparation for LUA & URB Management Planning 122.3 326.1 326.1 163.0 - - - 937.5 D. Assistance in project financial managment and procurement

1. Project disbursement and procurement DENR national and regional /v batch 1 1 - - - - - 2 277.76 6.671 6.7 6.7 - - - - - 13.3 ADB ( 100% )LGU level w orkshops /w batch - 4 5 - 5 - - 14 326.78 7.849 - 31.4 39.2 - 39.2 - - 109.9 ADB ( 100% )

Subtotal Project disbursement and procurement 6.7 38.1 39.2 - 39.2 - - 123.2

2. Project planning and budgeting management DENR national and regional /x batch 1 1 - - - - - 2 204.24 4.905 4.9 4.9 - - - - - 9.8 ADB ( 100% )LGU level w orkshops /y batch - 8 10 7 - - - 25 326.78 7.849 - 62.8 78.5 54.9 - - - 196.2 ADB ( 100% )

Subtotal Project planning and budgeting management 4.9 67.7 78.5 54.9 - - - 206.0

3. Project mid-term workshop /z DENR national and regional /aa batch - - - 2 - - - 2 47.06 1.130 - - - 2.3 - - - 2.3 ADB ( 100% )LGU level w orkshops /bb batch - - - 4 4 4 2 14 88.23 2.119 - - - 8.5 8.5 8.5 4.2 29.7 ADB ( 100% )

Subtotal Project mid-term workshop - - - 10.7 8.5 8.5 4.2 31.9 Subtotal Assistance in project financial managment and procurement 11.6 105.8 117.7 65.7 47.7 8.5 4.2 361.2

E. Technical extension and IEC /cc

1. National level Site-specif ic studies and applications no. - 2 2 2 2 2 - 10 54.46 1.308 - 2.6 2.6 2.6 2.6 2.6 - 13.1 ADB ( 100% )Workshops no. - 2 2 2 2 2 - 10 269.05 6.462 - 12.9 12.9 12.9 12.9 12.9 - 64.6 ADB ( 100% )Materials no. - 2 2 2 2 2 - 10 16.80 0.404 - 0.8 0.8 0.8 0.8 0.8 - 4.0 ADB ( 100% )

Subtotal National level - 16.3 16.3 16.3 16.3 16.3 - 81.7 2. Chico River Basin

Site-specif ic studies and applications no. - 2 2 2 2 2 - 10 54.46 1.308 - 2.6 2.6 2.6 2.6 2.6 - 13.1 ADB ( 100% )Workshops no. - 2 2 2 2 2 - 10 269.05 6.462 - 12.9 12.9 12.9 12.9 12.9 - 64.6 ADB ( 100% )Materials no. - 2 2 2 2 2 - 10 16.80 0.404 - 0.8 0.8 0.8 0.8 0.8 - 4.0 ADB ( 100% )

Subtotal Chico River Basin - 16.3 16.3 16.3 16.3 16.3 - 81.7

3. Wahig-Inabanga River Basin Site-specif ic studies and applications no. - 2 2 2 2 2 - 10 54.46 1.308 - 2.6 2.6 2.6 2.6 2.6 - 13.1 ADB ( 100% )Workshops no. - 2 2 2 2 2 - 10 269.05 6.462 - 12.9 12.9 12.9 12.9 12.9 - 64.6 ADB ( 100% )Materials no. - 2 2 2 2 2 - 10 16.80 0.404 - 0.8 0.8 0.8 0.8 0.8 - 4.0 ADB ( 100% )

Subtotal Wahig-Inabanga River Basin - 16.3 16.3 16.3 16.3 16.3 - 81.7 4. Upper Bukidnon River Basin /dd

Site-specif ic studies and applications no. - 2 2 2 2 2 - 10 54.46 1.308 - 2.6 2.6 2.6 2.6 2.6 - 13.1 IFAD ( 100% )Workshops no. - 2 2 2 2 2 - 10 269.05 6.462 - 12.9 12.9 12.9 12.9 12.9 - 64.6 IFAD ( 100% )Materials no. - 2 2 2 2 2 - 10 16.80 0.404 - 0.8 0.8 0.8 0.8 0.8 - 4.0 IFAD ( 100% )

Subtotal Upper Bukidnon River Basin - 16.3 16.3 16.3 16.3 16.3 - 81.7

5. Lake Lanao River Basin Site-specif ic studies and applications no. - 2 2 2 2 2 - 10 54.46 1.308 - 2.6 2.6 2.6 2.6 2.6 - 13.1 ADB ( 100% )Workshops no. - 2 2 2 2 2 - 10 269.05 6.462 - 12.9 12.9 12.9 12.9 12.9 - 64.6 ADB ( 100% )Materials no. - 2 2 2 2 2 - 10 16.80 0.404 - 0.8 0.8 0.8 0.8 0.8 - 4.0 ADB ( 100% )

Subtotal Lake Lanao River Basin - 16.3 16.3 16.3 16.3 16.3 - 81.7 Subtotal Technical extension and IEC - 81.7 81.7 81.7 81.7 81.7 - 408.7 F. REDD Capacity Building LS 2 6 - 4 4 - - 16 366.47 8.802 17.6 52.8 - 35.2 35.2 - - 140.8 CCF ( 100% )

G. Capacity Building in Watershed Management /ee Aw areness raising /Info Campaigns /f f LS 2 2 2 2 2 - - 10 84.10 2.020 4.0 4.0 4.0 4.0 4.0 - - 20.2 GEF ( 100% )Technical Training on ANR/ Enrichment Planting /gg Module 3 3 3 3 3 3 - 18 139.89 3.360 10.1 10.1 10.1 10.1 10.1 10.1 - 60.5 GEF ( 100% )PES Training /hh Module 3 3 3 - - - - 9 139.89 3.360 10.1 10.1 10.1 - - - - 30.2 GEF ( 100% )PES Info/Training Materials LS 2 2 2 - - - - 6 93.26 2.240 4.5 4.5 4.5 - - - - 13.4 GEF ( 100% )IPO Revolving Fund - Training Materials/Starter Kit /ii LS 3 2 3 - - - - 8 93.26 2.240 6.7 4.5 6.7 - - - - 17.9 GEF ( 100% )Financial Mgnt Training for IPOs-Revolving Fund /jj Module 3 3 3 3 3 3 - 18 139.89 3.360 10.1 10.1 10.1 10.1 10.1 10.1 - 60.5 GEF ( 100% )GIS Training for Participatoy Planning/Monitoring -GIS Specialist /kk p-mon 3 6 6 6 6 6 - 33 139.89 3.360 10.1 20.2 20.2 20.2 20.2 20.2 - 110.9 GEF ( 100% )Training of Tainers/Community Based Info Sharing p-mon 2 1 1 1 - - - 5 139.89 3.360 6.7 3.4 3.4 3.4 - - - 16.8 GEF ( 100% )Training Venue & Meals Batch 2 2 2 1 1 1 - 9 139.89 3.360 6.7 6.7 6.7 3.4 3.4 3.4 - 30.2 GEF ( 100% )Domestic Air Fare Trip 3 4 4 3 2 2 - 18 10.73 0.258 0.8 1.0 1.0 0.8 0.5 0.5 - 4.6 GEF ( 100% )Domestic ground travel trip 3 4 4 3 2 2 - 18 10.73 0.258 0.8 1.0 1.0 0.8 0.5 0.5 - 4.6 GEF ( 100% )Per Diem of Consultants trip 3 4 4 3 2 2 - 18 27.98 0.672 2.0 2.7 2.7 2.0 1.3 1.3 - 12.1 GEF ( 100% )LULUCF Capaciy Building Activities /ll Module 2 4 4 3 - - - 13 233.16 5.600 11.2 22.4 22.4 16.8 - - - 72.8 CCF ( 100% )

Subtotal Capacity Building in Watershed Management 83.8 100.6 102.9 71.4 50.1 46.1 - 454.8 Total 259.9 879.7 853.5 417.1 432.6 232.0 4.2 3,079.1 _________________________________\a Institutional and policy support: national/regional levels\b for central and regions, DENR\c for Bukidnon and Lanao del Sur\d for out-of-tow n trainees\e for Bohol\f Trainers training on phased implementation of INREM\g for out-of-tow n trainees\h for DENR/DA an local counterparts\i for out-of-tow n trainees\j Institutional and policy support: national and local levels -> province-based\k Provincial venues, for LGUs and stakeholders; 20 participants per province; 1-day orientation\l for out-of-tow n trainees\m Consensus building and alternative dispute resolution: DENR/DA, LGUs, stakeholders; 50 trainees per province; 3-day training\n Enforcement program and local legislation for law enforcement support: LGUs; 50 trainees per province, 3-day training\o Local government enterprise management: LGUs (peer-to-peer); 50 trainees per province; 3-day training/visit\p Land use assessment and upper river basin management planning\q I: Basic and advanced GIS and applications to environment and natural resources assessment, monitoring, and evaluation; for each of 23 w atersheds, 15-30 representatives, 5 day w orkshop\r II: Land use planning for LGUs held for each of 23 w atersheds; 15-30 participants per w atershed, 5 day w orkshops\s III: Community mapping and land use zoning (w atershed level) for LGUs held for each of 23 w atersheds; 15-30 representatives per w atershed, 5 day training\t Assistance for IPs in planning and INREM integration, held for each of 23 w atersheds; 15-30 representatives per w atershed, 5 day w orkshop\u For each of 23 w atersheds; 15-30 representatives per w atershed, 5 day w orkshop\v DENR national and regional staff, 34 pax in 1 batch, basis P1,500/pax/day stay-in, 5 days\w Provincial and municipal staff, 40 pax in 1 batch, basis P1,500/pax/day stay-in, 5 days\x DENR national and regional staff, 25 pax/batch in 2 batches, basis P1,500/pax/day stay-in, 5 days / for project planning and formulating annual program of w ork\y Provincial and municipal staff, 40 pax/batch in 25 batches, basis P1,500/pax/day stay-in, 5 days / for project planning and formulating annual program of w ork\z Taking stock of project implementation progress: problems and proposed solutions and changes -- prior to midterm evaluation review\aa DENR national and regional staff, 48 pax/batch in 1 batch, basis P900/pax/day, 1 day-only (not stay-in) / for taking stock and proposing improvements/changes\bb Provincial and municipal staff, 90 pax/batch in 14 batches, basis P900/pax/day, 1 day-only (not stay-in) / for taking stock and proposing improvements/changes\cc Presentation/review of site specific technical studies for dissemination at the local level\dd IFAD funded\ee GEF- Funded Capacity Building on Watershed Management\ff For PES\gg For Biodiversity\hh For Chico & other URBs\ii Training Materials\jj Training Course\kk GIS Consultant\ll CC - LULUCF - Sustainable energy production


182

Appe

ndix 2

Table 8. Technical Studies/Extension & Support Services ODetailed Costs Quantities Unit Cost Unit Cost Base Cost ($ '000)


I. Investment Costs

A. Development and implementation of TE/IEC 1. Development of Technical Extension & IEC Materials /a LS 0.5 1.5 1 - - - - 3 3,122.63 75.000 37.5 112.5 75.0 - - - - 225.0 ADB ( 100% )

2. Support to Technical Extension implementation /b Operational Support to Technical Extension Implementation year - - 4 4 4 4 4 20 899.32 21.600 - - 86.4 86.4 86.4 86.4 86.4 432.0 ADB ( 100% )Support Staff: Technical Extension Implementation p-mon 72 144 144 144 144 144 144 936 17.49 0.420 30.2 60.5 60.5 60.5 60.5 60.5 60.5 393.1 IFAD ( 100% )

Subtotal Support to Technical Extension implementation 30.2 60.5 146.9 146.9 146.9 146.9 146.9 825.1 3. Support to implementation of IEC program /c Year - 1 1 1 1 1 - 5 1,228.23 29.500 - 29.5 29.5 29.5 29.5 29.5 - 147.5 IFAD ( 100% )4. Social Preparation & marketing of the Project to Stakeholders /d LS 1 2 2 1 - - - 6 1,249.05 30.000 30.0 60.0 60.0 30.0 - - - 180.0 IFAD ( 100% )

Subtotal Development and implementation of TE/IEC 97.7 262.5 311.4 206.4 176.4 176.4 146.9 1,377.6 B. Government Management Support

1. Regional offices /e 4-w heel double cab pickup, regions /f no. - 4 - - - - - 4 1,062.94 25.530 - 102.1 - - - - - 102.1 ADB ( 100% )4-w heel double cab pickup, Region X no. - 1 - - - - - 1 1,062.94 25.530 - 25.5 - - - - - 25.5 IFAD ( 100% )

Subtotal Regional offices - 127.7 - - - - - 127.7 2. Provincial offices (LGU & DENR) /g

Computer/printer - provinces /h no. - 9 12 - - - - 21 106.17 2.550 - 23.0 30.6 - - - - 53.6 ADB ( 100% )Computer/printer - provinces (IFAD) no. - 6 - - - - - 6 106.17 2.550 - 15.3 - - - - - 15.3 IFAD ( 100% )Internet access, annual /i /yr - 7 7 7 7 7 7 42 24.98 0.600 - 4.2 4.2 4.2 4.2 4.2 4.2 25.2 ADB ( 100% )Internet access, annual (IFAD) /j /yr - 2 2 2 2 2 2 12 24.98 0.600 - 1.2 1.2 1.2 1.2 1.2 1.2 7.2 IFAD ( 100% )

Subtotal Provincial offices (LGU & DENR) - 43.7 36.0 5.4 5.4 5.4 5.4 101.3 3. Municipal offices (LGUs and DENR)

Motorcycle, Municipal Off ices /k no. - 60 88 100 - - - 248 97.43 2.340 - 140.4 205.9 234.0 - - - 580.3 ADB ( 100% )Motorcycle, Municipal Off ices (IFAD) no. - 24 28 32 - - - 84 97.43 2.340 - 56.2 65.5 74.9 - - - 196.6 IFAD ( 100% )Computer/printer, Municipal Government Units no. - 10 20 29 - - - 59 87.43 2.100 - 21.0 42.0 60.9 - - - 123.9 ADB ( 100% )Computer/printer, Municipal Government Units (IFAD) no. - 5 5 14 - - - 24 87.43 2.100 - 10.5 10.5 29.4 - - - 50.4 IFAD ( 100% )Internet access, annual /l Year - 10 30 59 59 59 59 276 20.82 0.500 - 5.0 15.0 29.5 29.5 29.5 29.5 138.0 ADB ( 100% )Internet access, annual (IFAD) Year - 5 10 24 24 24 24 111 20.82 0.500 - 2.5 5.0 12.0 12.0 12.0 12.0 55.5 IFAD ( 100% )

Subtotal Municipal offices (LGUs and DENR) - 235.6 343.9 440.7 41.5 41.5 41.5 1,144.7

Subtotal Government Management Support - 406.9 379.9 446.1 46.9 46.9 46.9 1,373.6 Total 97.7 669.3 691.3 652.5 223.3 223.3 193.8 2,751.2 _________________________________\a Identif ication and development of materials for technical extension.\b support to local dissemination of technical studies\c Development and implementation of IEC plan.\d Introduction of the project and social preparation of local/on site stakeholders, LGUs and IPs\e DENR: double cab pickups, 1 for each region\f 1 each for R7 & ARMM; 2 for CAR\g 9 provinces\h 3 sets per Province (LGU, PENRO & WMC)\i (ADB) Operational costs for netw orking w ith the environmental decision support system (DSS), annual connection service\j (IFAD) Operational costs for netw orking w ith the environmental decision support system (DSS), annual connection service\k 83 municipalities: (4 per MLGU & CENRO)\l Operational costs for municipality netw orking w ith the environmental decision support system (DSS), annual connection service


183

Appe

ndix 2

Table 9. Project Management /a ODetailed Costs Quantities Unit Cost Unit Cost Base Cost ($ '000)


I. Investment Costs A. Consultants

1. Central specialists input /b (<100%>FT) Inclusive of

TaxesLead Consultant, Ntrl Rsrcs & Frstry /c Person-Month 3 10 10 6 6 6 6 47 186.52 4.480 13.4 44.8 44.8 26.9 26.9 26.9 26.9 210.6 ADB ( 100% )Climate Change and REDD, Intl Person-Month - 2 2 - 2 2 - 8 839.36 20.160 - 40.3 40.3 - 40.3 40.3 - 161.3 CCF ( 100% )Climate change and REDD, Natl Person-Month - 4 4 - 4 4 - 16 139.89 3.360 - 13.4 13.4 - 13.4 13.4 - 53.8 CCF ( 100% )Land Use and Land Capability Assessment, Planning and Management Person-Month 3 5 4 - - - - 12 139.89 3.360 10.1 16.8 13.4 - - - - 40.3 ADB ( 100% )Institutional Assessment and Capacity Building Person-Month 3 9 6 - - - - 18 139.89 3.360 10.1 30.2 20.2 - - - - 60.5 ADB ( 100% )Geographical Information Systems & Mapping /d Person-Month 2 2 2 2 - - - 8 139.89 3.360 6.7 6.7 6.7 6.7 - - - 26.9 ADB ( 100% )Policy, Institutions and Legislation Person-Month 3 8 8 8 6 4 3 40 139.89 3.360 10.1 26.9 26.9 26.9 20.2 13.4 10.1 134.4 ADB ( 100% )Information, Education and Communication and Public Participation Person-Month 3 4 4 4 4 - - 19 139.89 3.360 10.1 13.4 13.4 13.4 13.4 - - 63.8 ADB ( 100% )Strategic Environmental Assessment Person-Month 2 6 6 2 - - - 16 139.89 3.360 6.7 20.2 20.2 6.7 - - - 53.8 ADB ( 100% )Environmental Safeguards and Cumulative Environmental Assessment Person-Month 3 4 4 4 4 4 4 27 139.89 3.360 10.1 13.4 13.4 13.4 13.4 13.4 13.4 90.7 ADB ( 100% )Social Safeguards (incl. IPs and Resettlement), Poverty and Gender Person-Month 2 8 8 8 4 2 - 32 139.89 3.360 6.7 26.9 26.9 26.9 13.4 6.7 - 107.5 ADB ( 100% )Financial Management, Procurement and PBGS /e Person-Month 2 6 4 - - - - 12 139.89 3.360 6.7 20.2 13.4 - - - - 40.3 ADB ( 100% )Rural infrastructure engineer Person-Month - 4 4 4 4 - - 16 139.89 3.360 - 13.4 13.4 13.4 13.4 - - 53.8 ADB ( 100% )Rural Infrastructure Economist Person-Month - 4 4 4 4 - - 16 139.89 3.360 - 13.4 13.4 13.4 13.4 - - 53.8 ADB ( 100% )Resource Economist Person-Month - 4 4 4 - - - 12 139.89 3.360 - 13.4 13.4 13.4 - - - 40.3 ADB ( 100% )GIS-based Database development for Project performance Monitoring and Evaluation Person-Month 3 2 2 - 2 1 - 10 139.89 3.360 10.1 6.7 6.7 - 6.7 3.4 - 33.6 ADB ( 100% )Training Specialist Person-Month 3 9 6 4 - - - 22 139.89 3.360 10.1 30.2 20.2 13.4 - - - 73.9 ADB ( 100% )Conservation Farming/Technical Extension /f Person-Month 3 12 12 12 - - - 39 139.89 3.360 10.1 40.3 40.3 40.3 - - - 131.0 ADB ( 100% )Unallocated Person-Month - 7 9 9 10 9 - 44 139.89 3.360 - 23.5 30.2 30.2 33.6 30.2 - 147.8 ADB ( 100% )

Subtotal Central specialists input 121.0 414.4 390.9 245.3 208.3 147.8 50.4 1,578.1 2. River basin-based: Consultants

River Basin Based, Ntrl Rsrcs & Frstry /g Person-Month 24 36 36 36 28 20 18 198 139.89 3.360 80.6 121.0 121.0 121.0 94.1 67.2 60.5 665.3 ADB ( 100% )3. Central specialists support

International travel /h Trip - 1 1 - 1 1 - 4 255.22 6.130 - 6.1 6.1 - 6.1 6.1 - 24.5 CCF ( 100% )Domestic air travel -CCF /i trip - 4 4 - 4 4 - 16 9.79 0.235 - 0.9 0.9 - 0.9 0.9 - 3.8 CCF ( 100% )Domestic ground travel - CCF /j Trip - 4 4 - 4 4 - 16 9.79 0.235 - 0.9 0.9 - 0.9 0.9 - 3.8 CCF ( 100% )Per diem consultants & staff -CCF /k Trip - 4 4 - 4 4 - 16 32.89 0.790 - 3.2 3.2 - 3.2 3.2 - 12.6 CCF ( 100% )Per diem, TL (international) /l Month - 2 2 - 2 2 - 8 171.54 4.120 - 8.2 8.2 - 8.2 8.2 - 33.0 CCF ( 100% )Domestic air travel /m trip 82 60 56 34 30 24 28 314 9.79 0.235 19.3 14.1 13.2 8.0 7.1 5.6 6.6 73.9 ADB ( 100% )Domestic ground travel /n Trip 82 60 56 34 30 24 28 314 9.79 0.235 19.3 14.1 13.2 8.0 7.1 5.6 6.6 73.9 ADB ( 100% )Per diem consultants & staff /o /trip 82 60 56 34 30 24 28 314 32.89 0.790 64.8 47.4 44.2 26.9 23.7 19.0 22.1 248.1 ADB ( 100% )CO Operation Cost /p Month 6 12 12 12 12 12 12 78 62.45 1.500 9.0 18.0 18.0 18.0 18.0 18.0 18.0 117.0 ADB ( 100% )

Subtotal Central specialists support 112.4 113.0 108.0 60.9 75.2 67.7 53.3 590.4 4. River basin-based Consultants & Staff support

Domestic air travel /q trip 24 24 24 24 24 24 24 168 9.79 0.235 5.6 5.6 5.6 5.6 5.6 5.6 5.6 39.5 ADB ( 100% )Domestic ground travel /r Month 24 48 48 48 48 48 48 312 62.45 1.500 36.0 72.0 72.0 72.0 72.0 72.0 72.0 468.0 ADB ( 100% )Per diem river-basin - Consultants & Staff /s Month 24 48 48 48 48 48 48 312 52.21 1.254 30.1 60.2 60.2 60.2 60.2 60.2 60.2 391.2 ADB ( 100% )Operating costs /t Month 24 48 48 48 48 48 48 312 62.45 1.500 36.0 72.0 72.0 72.0 72.0 72.0 72.0 468.0 ADB ( 100% )

Subtotal River basin-based Consultants & Staff support 107.7 209.8 209.8 209.8 209.8 209.8 209.8 1,366.8 Subtotal Consultants 421.7 858.2 829.7 636.9 587.5 492.5 374.0 4,200.5 B. Project Assisting Professionals

1. Project Assisting Professionals /u Project Manager (Deputy Project Director) Person-Month 6 12 12 12 12 12 12 78 104.09 2.500 15.0 30.0 30.0 30.0 30.0 30.0 30.0 195.0 IFAD ( 100% )Social Development Specialist Person-Month 6 12 12 12 12 12 12 78 83.27 2.000 12.0 24.0 24.0 24.0 24.0 24.0 24.0 156.0 IFAD ( 100% )Development Communications Specialist Person-Month 6 12 12 12 12 12 12 78 83.27 2.000 12.0 24.0 24.0 24.0 24.0 24.0 24.0 156.0 IFAD ( 100% )Monitoring and Evaluation Specialist Person-Month 6 12 12 12 12 12 12 78 83.27 2.000 12.0 24.0 24.0 24.0 24.0 24.0 24.0 156.0 IFAD ( 100% )Finance and Procurement Specialist Person-Month 6 12 12 12 12 12 12 78 83.27 2.000 12.0 24.0 24.0 24.0 24.0 24.0 24.0 156.0 IFAD ( 100% )Investment and Marketing Specialist Person-Month 6 12 12 12 12 12 12 78 83.27 2.000 12.0 24.0 24.0 24.0 24.0 24.0 24.0 156.0 IFAD ( 100% )GIS Specialist Person-Month 6 12 6 - - - - 24 83.27 2.000 12.0 24.0 12.0 - - - - 48.0 IFAD ( 100% )

Subtotal Project Assisting Professionals 87.0 174.0 162.0 150.0 150.0 150.0 150.0 1,023.0 2. Support to PAPS

Domestic air travel /v Trip 30 60 60 60 60 60 60 390 9.79 0.235 7.1 14.1 14.1 14.1 14.1 14.1 14.1 91.7 IFAD ( 100% )Per diem for PAPS /w Trip 30 60 60 60 60 60 60 390 8.24 0.198 5.9 11.9 11.9 11.9 11.9 11.9 11.9 77.2 IFAD ( 100% )Operating expenses Month 6 12 12 12 12 12 12 78 58.29 1.400 8.4 16.8 16.8 16.8 16.8 16.8 16.8 109.2 IFAD ( 100% )

Subtotal Support to PAPS 21.4 42.8 42.8 42.8 42.8 42.8 42.8 278.1 Subtotal Project Assisting Professionals 108.4 216.8 204.8 192.8 192.8 192.8 192.8 1,301.1

Total Investment Costs 530.1 1,075.0 1,034.5 829.7 780.3 685.3 566.8 5,501.7 II. Recurrent Costs /x

A. Government office support DENR off ice staff support /y amt 500.0 1,002.0 1,110.0 1,127.0 1,146.0 1,146.0 1,151.0 7,182.0 GOVTDENR off ice space support /z amt 4.0 4.0 4.0 4.0 4.0 4.0 4.0 28.0 GOVTLGU off ice staff support /aa amt 17.0 28.0 35.0 80.0 80.0 80.0 75.0 395.0 LGUS ( < 100% >, FT )

Total Recurrent Costs 521.0 1,034.0 1,149.0 1,211.0 1,230.0 1,230.0 1,230.0 7,605.0 Total 1,051.1 2,109.0 2,183.5 2,040.7 2,010.3 1,915.3 1,796.8 13,106.7 _________________________________\a Project Management w ith Recurrent Costs\b National unless otherw ise indicated\c Team Leader, national, natural resources and forestry specialist\d Geographic information systems, mapping and modeling, and decision support system\e Financial management and procurement\f 3 mos per URB\g Deputy Team Leaders (4), natural resources and forestry specialists, based at the river basins\h International RT airfare\i P10K per RT, assume 1 trip per person-month consultant\j 10 days per trip x P1,000/day at 1 trip per person-month (amounts can be combined for multiple team members to secure vehicle)\k 10 days per trip at P3,000/day\l $120/day for 30-day month at\m P10K per RT, assume 1 trip per person-month consultant\n 10 days per trip x P1,000/day at 1 trip per person-month (amounts can be combined for multiple team members to secure vehicle)\o 10 days per trip at P3,000/day\p Operating expenses - communications, materials, messengerial, etc.\q P10K per RT, assume 6 trips per year per consultant, 4 consultants\r P 64,000/mon\s Per Diem during travel (2400x20d)\t Off ice, materials, communications, and other operating operating expenses, assume P2,400/day\u To assist in the management of the project on full-time basis\v P10K per RT, assume 1 trip every month/person\w 5 days per trip at P1,500/day\x Government off ices in management of INREMP\y DENR national and regional off ice staff support : share of salary based on estimated time dedicated to project management of current staff and off iers.\z DENR off ice space support - 50 m2 off ice at P15,000/mon\aa LGU off ice staff support : share of salary-based on estimated time dedicated to project management/implementation of current staff and off icers


184

Appe

ndix 2

Table 10. Project Performance Monitoring & Evaluation /a OthDetailed Costs Quantities Unit Cost Unit Cost Base Cost ($ '000)



of TaxesProject Performance, Monitoring & Evaluation Specialist /b p-mon 1 - - 2 - - 2 5 178.20 4.280 4.3 - - 8.6 - - 8.6 21.4 GEF ( 100% )Project Performance Evaluation Specialist- Int'l /c p-mon - - - - - - 1.5 1.5 801.89 19.260 - - - - - - 28.9 28.9 GEF ( 100% )Project Performance Evaluation Specialist p-mon - - - - - - 2 2 178.20 4.280 - - - - - - 8.6 8.6 GEF ( 100% )Per Diem /d Mon 1 - - 2 - - 4 7 31.23 0.750 0.8 - - 1.5 - - 3.0 5.3 GEF ( 100% )Domestic Air Travel /e Trip 1 - - 1 - - 3 5 8.33 0.200 0.2 - - 0.2 - - 0.6 1.0 GEF ( 100% )International Air Travel Trip - - - - - - 1 1 249.81 6.000 - - - - - - 6.0 6.0 GEF ( 100% )Per Diem - International Consultants Mon - - - - - - 1.5 1.5 167.87 4.032 - - - - - - 6.0 6.0 GEF ( 100% )Domestic Ground Travel Trip 1 - - 1 - - 3 5 10.83 0.260 0.3 - - 0.3 - - 0.8 1.3 GEF ( 100% )Periodic Evaluation Activities /f No. 1 - - 1 - - 1 3 522.73 12.555 12.6 - - 12.6 - - 12.6 37.7 GEF ( 100% )Equipment Package /g no. 6 - - 6 - - - 12 159.46 3.830 23.0 - - 23.0 - - - 46.0 GEF ( 100% )

Total 41.0 - - 46.1 - - 75.0 162.1 _________________________________\a GEF - Funded Project perfomance monitoring & evaluation\b M & E Specialist\c Independent Consultant for terminal evaluation\d M & E - Specialist's Per Diem\e Air Fare\f Monitoring & Evaluation w orkshops; Inception, mid-term and final/end of project.\g Equipment: Computer, softw are and peripherals

Appendix 3

185

APPENDIX 3. INREMP PERFORMANCE BASED GRANT SYSTEM: CONCEPTUAL FRAMEWORK

Appendix 3

186

CONCEPTUAL FRAMEWORK OF PERFORMANCE-BASED GRANT SYSTEM (PBGS) I. Rationale

1. Management of the river basin, which is the natural geographic boundary for surface water resources, requires the cooperation, participation and collaborative management by all entities with jurisdiction over the area. It requires the participation in the preparation of and adherence to the management plan for that river basin by all the local government units (LGUs) and agencies in it. While a river basin or watershed can fall within a single province, it almost always covers more than two (2) municipalities. It is therefore important for the successful management of the river basin or watershed to get the commitment and actions of all concerned LGUs in line with a unified river basin and watershed management plan.

2. The Performance-Based Incentive Policy (PBIP) is an incentive framework to rationalize National Government (NG) intergovernmental fiscal transfers to LGUs towards improving overall LGU performance in governance. The mechanism on how to implement the policy is the Performance-Based Grant System (PBGS). PBGS provides capacity building or capital grants for improved performance of an LGU in certain key areas of over-all governance. Performance is measured based on a predetermined and agreed indicator(s).

3. Under the PBIP, participating LGUs would be encouraged to undertake reforms in key governance areas of planning, budgeting, revenue mobilization, financial management and budget execution, procurement, and resource mobilization to enhance their institutional capacity and strengthen local governance and service delivery.

4. Current indicators include: planning; budgeting-own source revenues - actual vs. target; fiscal capacity and revenue mobilization - % increase in own source revenues; financial management and budget execution - Personnel Services/total expenditures; development expenditures/total expenditures or IRA; clean audit report or progress in addressing audit findings; procurement - compliance with E-Procurement Law, BAC composition and use of website; transparency and accountability - use of the LGPMS, submission of SIE to BLGF.

5. INREM can use the PBIP as the vehicle to encourage the concerned LGUs in the watersheds within the river basins to improve the management of their land and water resources. Incentive grants may be given to LGUs properly planning for the management of their watersheds; improving their natural resources management practices; and, conserving their watersheds from revenues generated by the LGUs for the proper and legal use of natural resources.

6. The INREM-PBGS will be designed to encourage the LGUs within the INREM Project area to:

a. join and collaborate with adjacent LGUs within the watershed to prepare a management plan following the INREM process (scientifically-based/supported and widely participatory);

b. take appropriate legislative and executive actions to implement the watershed

management plan and continually improve it (CLUP, CDP-ELA, AIP, Zoning and/or business enterprise);

c. adopt measures to generate revenues for the conservation of the watershed from

legal and proper use of natural resources within the watershed, such as payment for environmental services (PES), etc.

Appendix 3

187

7. The Project Area comprises four river basins that are widely dispersed and have an aggregate area of over one million ha. These are: a) Chico River Basin in the Cordillera Administrative Region (CAR) with an area of about 455,000 ha (40%); b) Wahig-Inabanga in Bohol, 63,000 ha (6%); c) Upper Bukidnon River Basin in Bukidnon and including some portion in Misamis Oriental and Lanao del Norte, 480,000 ha (42%); and d) Lake Lanao River Basin in Lanao del Sur and in some parts of Lanao del Norte, 141,000 ha (12%). The four river basins cover 23 watersheds in territories of 88 cities and municipalities in 12 provinces of six (6) regions. Of the 5 cities, 2 are classified as 1st class; others are 3rd, 4th and 5th class. The 81 municipalities are classified as follows: 7 (6%) – 1st class; 4 ( 5%) – 2nd; 15 (18.5%) - 3rd; 30 (37%) – 4th; 19 (23.5%) – 5th; 6 (7.4%) – 6th class. Those classified as 4th to 6th class compose 67.9% of municipalities/cities in the 4 river basins.

8. About a third of all the cities and municipalities have areas falling within two or more watersheds. Twenty-two (22) municipalities fall within two watersheds; five have areas within three watersheds; and two municipalities cover four watersheds. Hence, counting the LGUs in each and every watersheds, there are in effect 126 LGUs in the 23 watersheds. A municipality in Bukidnon, Talakag, covers three watersheds; and one of these watersheds (Talakag watershed) falls entirely within its territory.

II. Proposed INREM Performance-Based Grant System

9. The proposed INREM Performance-Based Grant System will substantially follow the mechanism adopted by the national PBGS Steering Committee. Adapting the mechanism for INREM Project, it will involve the following:

a. Amount allocated for the PBGS: $3.5 Million or PhP 150 Million (11% of the

amount allocated to rural infrastructure, inclusive of it.)

b. Target LGU participants: Initially the (81) Municipalities and cities with areas falling within the 23 watersheds initially covered by the Project.

c. Type of Grant: INREMP will provide Capital Grant, the monetary incentive for LGU investment in infrastructure and basic services.

d. Amount of Grant: The amount of capital grant of an LGU within a watershed will be based on the following allocation formula.

Criteria Weight Reference/Data Source

Population (within the watershed)

40% NSO

Land Size (within the watershed)

25% LMB/National Project Coordination Office (NPCO)/DENR-RO

Equal Share (126 LGUs within the 23 watersheds)

15% NPCO

Poverty Incidence (city/municipal level)

20% NEDA/NSCB

e. Prequalification Requirements:

Appendix 3

188

i. Letter of intent to participate in the INREMP-PBGS ii. Letter of intent to avail of INREMP infrastructure fund from MDFO iii. Eligibility Requirements:

1. NPCO Certification of Participation in the particular Watershed Management Planning within the River Basin covered by INREMP. An LGU is expected to participate in the management planning of each and every watershed within its territorial jurisdiction and may apply for capital grant for all watersheds it participates in management planning.

2. Statement of Receipts and Expenditure (SRE) from the Bureau of Local Government Finance (BLGF); and

3. COA Audited Report (prior 3 years)

f. Conditions of the INREMP Capital Grant:

i. Governance conditions: 1. Comprehensive Land Use Plan that incorporates the

recommendations/results of the INREM watershed management planning;

2. Annual Investment Program that includes at least five (5) of the top priority investments identified in the particular watershed management plan;

3. Budget Approved includes provisions for the management activities of the watershed and priority watershed management investments;

4. Legislative Agenda includes adoption of applicable Payment for Environmental Services or PES for its watershed;

5. No adverse audit report; 6. Bids and Awards Committee (BAC) established and functional; 7. State of Local Governance Report (SLGR); and, 8. Proof of equity contribution for the availed INREMP Infrastructure

sub-project.

ii. Performance Indicators subject to performance contracting. Performance contracting is an agreement between the LGU and NG/DENR on the LGU’s target areas of accomplishment within a year that is basis for grant allocation. For INREMP, it is proposed that the following should be among the areas of accomplishment:

1. Substantial (more than 50%) availment of the MDFO-INREMP fund for rehabilitation of rural infrastructures under the NG-LGU Cost Sharing Scheme;

2. Participation and substantial accomplishment in forest conservation and protection and forest rehabilitation projects of the INREMP;

3. Institution watershed management in its land use management and planning functions.

4. Ordinance adopting measures to generate revenues for watershed conservation from environmental services (PES) or other sources.

g. Release of INREMP Capital Grant:

Appendix 3

189

i. 30% of the amount of the capital grant will be release upon completion of

assessment that the governance conditions are complied with. ii. 70% of the amount of the capital grant will be released upon confirmation

of LGU’s accomplishment contracted performance indicators by assigned group of assessors. Semi-annual on-the-spot evaluation will be undertaken by a group of assessors.

h. Use of INREMP Capital Grant. The capital grant can be used for Basic Infrastructures and/or for undertaking Basic Services.

i. Basic Infrastructure within or outside watershed 1. Roads, transport services, and traffic management 2. Water resources management, water supply and irrigation 3. Solid Waste Management, Water Supply and Irrigation 4. Drainage, flood control, sewerage/sanitation 5. Energy Supply 6. Telecommunications

ii. Basic Services

1. Land use management and planning 2. Agricultural and fisheries research, extension services 3. Industrial research and development Services 4. Natural resources management (including community forestry) 5. Health services 6. Educational services 7. Social welfare services 8. Information services

i. Negative List: Capital grant should be not used for the following:

i. Tax payment ii. Salaries and recurrent costs, e.g., maintenance; and, iii. Micro-credits/loans

III. Steps to Implement INREM PBGS

10. Implementation of the INREM PBGS. PBGS Implementation must be approved by the PBGS Technical Committee and Steering Committee (expanded MDFO–PBG) which is composed of different National Government and sectoral agencies.

11. The development of the mechanics or guidelines for implementation must include the following:

a. The designation of officers/technical staff from DENR and oversight agencies to

develop and implement the INREM PBGS, with clearly defined responsibilities. b. Determination of the amounts of grants that will be allocated for each grant. c. Setting-up of parameters/indicators to measure performance. d. Determination of qualified LGUs; e. Identification of target beneficiary LGUs.

Appendix 3

190

f. Development of procedures for evaluating status or gathering baseline data of the participating LGUs.

g. Development of procedures for registering and availing of the grants. h. Formulation of criteria or guidelines for the verification and evaluation of claimed

performance. i. Determination of the method of release and accounting/reporting on the

utilization of the grant. j. Development of procedures for the monitoring and evaluation of the

implementation of the INREM PBGS. References: Jesper Steffensen, Henrik Fredborg Larsen, 2005, Conceptual Basis for Performance Based Grant Systems and Selected International Experiences DBCC Certification on the approval of Performance-Based Incentive Policy and the Performance-based Grant System on February 20, 2009. PBGS-Technical Secretariat Presentation on Performance-Based Incentive Policy and the Performance-based Grant System, 19 November 2009

Appendix 4

191

APPENDIX 4. IMPLEMENTATION ARRANGEMENTS AND FUNDS

ADMINISTRATION/FLOW

Appendix 4

192

Implementation Arrangements and Fund Management:

Component Lead Implementing

Agency/Unit Fund Administration-Flow 1. River Basin and Watershed

management Plan: Assessment of Current Land

Use Assessment and Mapping

of current land use Data acquisition

Land Use Capability Assessment & River Basin Zoning Land use Capability

assessment & URB Zoning Carbon baseline survey Boundary Delineation

Participatory Management Planning (including IP, gender and other safeguard concerns)

GIS Data base Installation Central Operations Center URB Nodes

GEF – Watershed management, biodiversity and investment plan

The NPCO, based at FMB, - with the assistance of NAMRIA, consultants, institutions - through the DENR-RO with participation of the offices of National Government Agencies (NGAs) at the province (NIA, NCIP, NPC); - under the guidance of the NPSC; and, - with the participation of the municipalities/cities, communities, indigenous peoples’ organizations, NGOs and POs in the area. DENR- FASPO will undertake procurement for the Project at the Central Office..

DENR-CO, the EA, will transfer funds to FMB/ NPCO, NAMRIA and other implementing units based on a MOA and/or approved Work and Financial Plan (WFP) through sub-allotment, check payment or bank transfer. DENR-FASPO, will be responsible for the preparation/ consolidation and submission of Withdrawal Application and Statement of Expenditures (SOEs) to ADB for timely fund releases. DENR-CO – thru the DENR-RO. Transfer of funds from CO thru sub allotment to ROs based on approved Work and Financial Plan. DENR CO or RO may opt to contract or sub-contract the undertaking of specific activities to other government agencies, private firms/ consultants.

2. Small holders/ institutional Investments

Provincial Project Management Office (based at the PENRO), with the guidance of Provincial inter-Agency INREM Council, support of the offices of national agencies at the province will coordinate the implementation Component 2. The participating cities/municipalities will implement the activities on the ground. Activities may be contracted directly to private or non-government organizations (NGOs), communities, IPs, peoples’ or farmer organizations as maybe

DENR – CO thru the RO/PENRO Based on MOA between the DENR/PENRO-PPMO and the implementing unit (NGO, PO, IPO or LGU)

2.1 Conservation, Rehabilitation and Protection of URB State Forest

Community based protection and monitoring;

Rehabilitation through reforestation;

Assisted natural regeneration; 2.2 Sustainable forest management,

agroforestry and commercial plantation with community participation

Sustainable Forest Management

Agroforestry with Community Participation (with Beneficiary (in kind) contribution

Commercial Forest Plantation

Appendix 4

193


Agency/Unit Fund Administration-Flow with community participation (with Beneficiary –In kind contribution)

recommended by PINREMC/WMPCC or DENR-CENRO

2.3 Rehabilitation and Improvement of rural infrastructures

Participating City/Municipal LGUs.

Municipal Development Fund Office – Municipal LGUs (for infrastructure projects) subject to the NG-LGU cost sharing per Loan agreement DA for Project in CHARM 2 Areas in the Chico River Basin

Rural access roads, with safeguards to avoid encroachment into forests through investments in improving agricultural productivity on land already cleared of forest;

Communal irrigation schemes; and

Potable Water Supply (Level II – Spring Development)

Foot-Trail & Trading Center other Infrastructures, identified

as necessary in the Watershed Management Plans

Performance-Based Grants to LGUs

2.4 Livelihood enhancement thru conservation farming

The DENR- PENRO/ PPMO in close coordination with the Municipal Agriculture Office and municipal environment and Resource Officer (MENRO) of participating LGUs; and assistance/ participation of qualified service providers (e.g. academe, NGOs) in the area.

Thru the DENR-PENRO based on WFP and MOA between DENR- PENRO/PPMO and NGO/PO/LGU, the implementing unit.

Extension and training; micro, small, medium-sized agro-agribusiness and post-harvest management; business advisory, market linkages and linking to micro-credit/finance institutions;

Introduction and promotion of improved conservation farming practices and proven technologies;

Seed fund for the self-help groups composed of poorest of the poor/vulnerable households for the replication/up-scaling/expansion of tested and matured technologies

2.5 Investment in watershed Management (GEF& CCF)

DENR-CO/NPCO through the RO/PENRO, with option to contract or sub-contract the undertaking of specific activities to other government agencies, private firms/consultants, LGUs and/or NGO/POs. Assisted by Consultants, Consulting firms,

DENR-CO/NPCO., RO/RPMO or PENRO/PPMO – based on MOA/WFP or contract for the undertaking of specific activity (ies) by other government agencies, private firms/consultants, LGUs and/or NGO.

Nursery for Mossy forest- indigenous species

Assisted Natural Regeneration Buffers with Mixed Vegetable

Cover IPO-Revolving Fund

Establishment (Seed Capital) Bioenergy Plantation in

Appendix 4

194


Agency/Unit Fund Administration-Flow Bukidnon

Contribution – establishment of Pilot Charcoal Retort

International/Local Non-government Organizations, Academe or other institutions. DENR-FASPO will undertakes procurement.

3. Enhanced capacity for river basin and watershed Management

REDD Capacity Building Awareness and Info Campaign PES Training LULUCF Capacity Building

4 Project Management and Support Services

Consultants' recruitment and supervision;

Procurement of materials, equipment and vehicles;

Improved institutional capacity for participating communities and organizations (including indigenous peoples' organizations) responsible for INREM in all selected URBs;

Design and development of a networked GIS-based Database System (GIS-DBS) at national, provincial and municipal LGUs for monitoring and decision making

Development of TE-IEC program that will document, for implementation and further dissemination, technologies and good practices promoted and undertaken by the Project on agroforestry, sustainable forest management, conservation farming and others introduced in support of livelihood.

Project Performance Monitoring & Evaluation

DENR = Department of Environment and Natural Resources; DENR-CO = Department of Environment and Natural Resources Central Office; DENR-RO = Department of Environment and Natural Resources Regional Office; PENRO – Provincial Environmental and Natural Resources; LGU = local government unit; URB = upper river basin.

Appendix 4

195

INREM Project Funds & Reports Flow

Asian Development Bank (ADB)

(IFAD, GEF, CCF)

Department of Budget & Management (DBM)

Department of Finance (DOF)/Bureau of Treasury (BOT

Municipal Development Fund Office (MDFO)

Participating LGUs (Provincial/Municipal)

DENR – CO FASPO

FMS

DENR –Regional Office (RO) Provincial Environmental & Natural Resources Office

(PENRO)

For infrastructure & performance based grants system. LGU applies to avail of the funds

Funds are transferred based on approved Work & Financial Plan or Memorandum of Agreement

Department of Agriculture (DA)

Community /Indigenous Peoples’ (IPOs) or Non-Government Organizations Local Institutions or Contractors

(Beneficiaries/Partner Implementors)

IFAD – International Fund for Agricultural Development GEF – Global Environmental Facility CCF – Climate Change Fund DENR – Department of Environment & Natural Resources FASPO – Foreign Assisted and Special Projects Office FMS – Financial Management Office FMB – Forestry Management Bureau NPCO – National Project Coordination Office

NPCO/DENR-FMB

Withdrawal applications (WAs) and/or Statement of Expenditures (SOEs)/Financial Statements/Reports

Appendix 5

196

APPENDIX 5. ELIGIBILITY CRITERIA FOR BLOCK GRANT

Appendix 5

197

Eligibility Criteria For Block Grant And Monitoring Mechanism 1. The GEF grant component of the Integrated Natural Resources and Environmental Management Project (INREMP) consist of activities for: (i) Biodiversity inventory, habitat mapping and GIS-based database management; (b) Community-based community conservation planning in ancestral domains; (c) Biodiversity corridor planning; (d) Mainstreaming biodiversity conservation in the production landscape through protection, regeneration and appropriate mixed use agroforestry, and; (v) Policy and regulatory framework support through biodiversity corridor planning. 2. Block grants as means of support to IPOs/POs for the protection and conservation of the forests/watershed will be piloted through the GEF supported activities/areas. The pilot tested mechanism will then be applied in other watersheds supported by ADB, IFAD and CCF. 3. Initially, the partner-implementors are the indigenous peoples organizations (IPOs) in the Chico-Agno-Magat River Basins triboundary in the Central Cordilleras with contiguous ancestral domains titles (CADTs) in this triboundary area: the Kabatangan Ancestral Domain Indigenous Peoples Organization (KADIPO) in Buguias, Mt. Province; the Buguias Ancestral Domain Alternative Native Governance (BADANG) IPO in Buguias, Benguet; and the Kahakey ni Man-Ilin Itinek(KMI) in Tinoc, Ifugao. The coverage of the CADTs of these three IPOs are: KADIPO - 9,456 ha.; BADANG – 17,155 ha.; KMI – 21,371 ha. 4. Other POs/IPOs in the other INREM Project river basins (supported from the proceed of loans from ADB and IFAD and CCF grant) will be engaged in similar block grant agreements based on experience and lessons from the above initial implementation, including the operations of PES arrangements intended to result from the block grant arrangements. 5. The IPOs shall be assisted by INREMP in mainstreaming biodiversity conservation within their ancestral domains. Direct support shall be provided through technical assistance (TA) and block grants amounting to USD 20,000 each as seed funds their conservation programs, and for providing seed capital to members for conservation-oriented livelihood activities. The seed fund for conservation, rehabilitation and protection is expected to be leveraged towards a payment-for environmental services (PES) arrangement with environmental-services beneficiaries. Initially, depending on the needs of the members of the IPO, fifty percent of the block grant may be allocated as seed fund for livelihood facilities of the IPO; the other 50% will be for initial conservation, protection and rehabilitation of the biodiversity resources, environmental functions, forests and watersheds in their respective ancestral domains. These funds shall be managed as Revolving Funds (RFs) of the IPOs for these and other purposes that may be agreed upon with IPOs. 6. Three phases of setting up the block grant operations are: (i) preparatory phase – in year 1; (ii) Community-based conservation planning and PES pre-contracting – in year 1 through 2; (iii) GEF conservation project implementation – year 2 onwards [the phasing of work will depend on the state-of readiness of each participating IPO, and flexibilities in this respect should be considered during implementation].

7. The Preparatory Phase consists of developing the IPO’s capacities: (i) to administer the two sub-funds of the block grant ( liivelihood and/or conservation funds), (ii) to enable the IPO to be a party to legal agreement(s) in a PES arrangement, (iii) to enable the IPO to enforce its ownership rights over its ancestral domain in the context of land, forest, biodiversity and

Appendix 5

198

watershed conservation; and (iv) to effectively implement its conservation commitments in compliance with its PES agreement(s). 8. For the Community-based Conservation Planning and PES-Pre-contracting Phase the major activities and responsibility-centers shall be:

(i) For DENR and NCIP: to facilitate the formulation of the appropriate conservation plans by the IPO, drawing largely from the remote-sensing and ground surveys, and employing customary participatory methods of the IPO concerned; the conservation plans shall include: criteria, indicators and verification methods for both performance outputs (physical) and outcomes (quantitative and qualitative);

(ii) For the INREM(-GEF) Project Coordination Group for the Cordillera Triboundary: to facilitate the participation of other watershed stakeholders, particularly the potential environmental-services beneficiaries, in the planning process;

(iii) For the INREM project implementing units in (i) and (ii): to facilitate the negotiations process and firming up of agreements between the IPO and PES-buyer1.

(iv) For the INREM project implementing units in (i) and (ii): to evaluate the state-of-readiness of the IPO to start implementing the INREM-GEF conservation plan(s) and the block grant for its RF.

9. The IPO commitments and activities enunciated in the IPO conservation plans shall, at the minimum, include:

(i) Indication of the metes and bounds of the area covered by the ancestral domain title (CADT), with technical descriptions and appropriate maps projected on GOP official control maps;

(ii) Indication on the ancestral domains map the areas (natural forests [mossy, broadleaf, coniferous], critical biodiversity habitats, human settlements and agricultural production areas, IP culturally- and historically-significant areas, etc.) subject of the conservation plan;

(iii) Land-management zones (conservation, protection, rehabilitation, conservation farming and agroforestry zones) identified and decided upon through participatory processes, and incorporated in the IPO ADSDPP;

(iv) Criteria, indicators and means of validation for monitoring and evaluation of the plan implementation agreed upon with the Project Implementing Agency.

10. An IPO shall be deemed as ready and qualified to implement the grant project and financing when the following minimum conditions are in place:

(i) The metes and bounds of the IPO’s ancestral domains is clearly defined and delineated and demarcated;

(ii) The conservation plans formulated pursuant to para. 8(iii) above are confirmed for implementation by its membership;

(iii) It has been registered with the SEC, DOLE or CDA and is deemed eligible to assume the legal obligations and liabilities as a party to a PES contract; it has complied with the necessary documentation as a juridical entity with other oversight agencies of the national and local government;

1 For the Agno-Chico-Magat basins triboundary, the National Power Corporation and the three IPOs identified herein

are expected to be the parties to an initial PES agreement; the National Irrigation Administration, local governments and municipal waterworks districts, and irrigators associations are expected to subsequently be parties to next-generation PES agreements.

Appendix 5

199

(iv) It has clear rules of operation for its Revolving Fund (both the livelihood and conservation sub-funds), including the minimum necessary financial management capabilities - bookkeeping and accounts management, banking transactions, credit funds management, as evaluated by the Implementing Agency.

11. Upon determination that the conditions in para. 8 and 9 above are in place, the DENR shall release to the IPO the INREM (-GEF) block grant in two tranches, as follows:

The first tranche of USD10,000: (i) The IPO informs DENR that it is ready to implement the INREM (-GEF) grant

project as embodied in its conservation plan, and that the INREM-GEF Project Coordination Group for the Cordillera Triboundary has evaluated it as ready to implement (see para. 10(iv above);

(ii) The DENR National Project Coordination Office (NPCO) authorizes the DENR Regional Office, CAR, to release the first tranche of USD 10,000 block grant to the IPO’s GEF project bank account, from the DENR GEF imprest account2.

(iii) The IPO acknowledges receipt of the INREM-GEF block grant; (iv) GEF implements the INREMP-GEF grant project pursuant to the agreed-upon

conservation plans for its ancestral domain area. The second tranche of USD10,000: (i) Validation by an evaluation team3 that the conditions for the continued

implementation of the evaluation plan are in place, pursuant to the agreed-upon criteria, indicators and means of verification (see para 8(iv above);

(ii) The DENR National Project Coordination Office (NPCO) authorizes the DENR Regional Office, CAR, to release the second tranche of USD 10,000 block grant to the IPO’s GEF project bank account, from the DENR GEF imprest account.

12. The Conservation Project Implementation by the grantee-IPO shall be largely autonomous in nature, i.e., the IPO implements its conservation plan in accordance with its internal procedures (as laid out in the conservation plan). DENR, and the INREM(-GEF) Project Coordination Group for the Cordillera Triboundary, are however expected to institute monitoring and evaluation of IPO implementation progress as part of the overall INREMP M&E framework which will include the appropriate grievance mechanism acceptable to both the communities/IPOs and ADB, and as part of the GOP oversight responsibilities for the whole INREM project. Such M&E work is also necessary to provide guidance for the upscaling of conservation implementation in the river basin under expanded PES arrangements.

2 Refer to RRP Appendix 8 – Disbursement Arrangement and Project Fund Flow 3 The DENR may opt to commission an independent third-party evaluation team for this purpose

Appendix 6

200

APPENDIX 6. NATIONAL GOVERNMENT ACCOUNTING SYSTEM FOR LGUS

Appendix 6

201

National Government Accounting System For LGUs Relevant Excerpts From the Manual:

Chapter 3.

Sec. 168. Project Equity (502). This account represents the equity of national

government agencies, local government agencies, government owned and controlled corporations, foreign funding corporations and private individuals for funds granted to local government agencies under specific conditions and/or for specific purposes and projects. This account shall be used in the Trust Fund books of LGUs only.

Debit this account for: Transfer of completed projects to the General Fund of LGUs

Closing of expenditures at year end or upon project completion

Credit this account for:

Receipt of funds for specific purposes and projects under the Trust Fund

For purposes of identifying the accounts, the following sub-accounts shall be used:

502 – 01 National Government Agency 502 – 02 Local Government Unit 502 – 03 Government Owned and Controlled Corporation 502 – 09 Others

Chapter 5 - Special Funds B. TRUST FUND

Sec. 94. Definition of Trust Fund. – Trust Fund shall consist of private and public monies which have officially come into the possession of the local government or of a local government official as trustee, agent or administrator, or which have been received as a guaranty for the fulfillment of some obligation. A trust fund shall only be used for the specific purpose for which it was created or for which it came into the possession of the local government unit. Sec. 95. Receipts Accruing to the Trust Fund. – Grants and donations coming from foreign funding institutions, other levels of government and private institutions/individuals for specific projects/purpose shall accrue to the Trust Fund. Equity of the LGU on projects under a trust agreement shall also accrue to the Trust Fund. These receipts shall be credited to the Project Equity account.

Loans of LGUs for income generating projects from the Municipal Development Fund Office (MDFO) requiring counterpart funding from LGUs shall not be recorded in the Trust Fund but as a Special Account in the General Fund.

Sec. 96. Collection Procedures for the Trust Fund. – Cash collections for the Trust Fund shall be acknowledged through the issuance of an official receipt. Procedures for the turn over of collections, frequency of deposit of collection with the bank, preparation of report of collections, verification of collections and accountable forms, preparation of report of accountability for accountable forms as well as consolidation of reports of accountable forms shall be the same as that prescribed for collections in the General Fund.

Appendix 6

202

In case of receipt of funds through the bank, the Accountant shall draw a JEV based on the bank

credit memo. Sec. 97. Project Expenditures. – The construction period theory shall apply for expenditures on

infrastructure projects of the Trust Fund. For other projects, expenditures shall be debited to the appropriate expenditure account. Expenditures shall be closed to Project Equity account at year-end or upon project completion, whichever comes first.

Sec. 98. Separate Cashbooks for Trust Fund. – The Treasurer and/or the concerned accountable officers shall maintain separate cashbooks for the Trust Fund which shall be in accordance with the prescribed format.

Sec. 99. Separate Books of Accounts and Financial Reports for Trust Fund. – The Chief Accountant shall maintain separate books of accounts for Trust Fund. He shall likewise prepare separate financial reports such as the Trial Balance, Balance Sheet, Statement of Cash Flows and supporting schedules, to be submitted within the prescribed timeframe. Sec. 100. Disbursements within Trust Agreement/Approved Budget. – Disbursements from trust funds shall be in accordance with the specific purpose stated in the trust agreement/approved budget between the trustor and trustee (LGU) as certified by the Chief Accountant. The certification on the DV as to existence of funds held in trust shall serve this purpose. Sec. 101. Certification and Approval of Disbursements from Trust Funds. – Disbursements from the Trust Fund shall require:

a. Certification and approval of vouchers and payrolls as to validity, propriety and legality of the claim involved by the department/ office head concerned;

b. Certification as to existence of funds held in trust and completeness and propriety of supporting documents by the Accountant;

c. Certification as to cash availability by the Treasurer; and d. Approval by the Administrator of the fund.

Sec. 102. Disbursement Process. – Disbursements from the Trust Fund shall be as

follows: a. Disbursement by check

P R O C E S S PERSON / UNIT RESPONSIBLE I. Gather supporting documents,

prepare DV/payroll and forward to Head of Department.

Concerned Office

I. Sign Box A of DV and submit to the Accounting Unit.

Supervisor/Head of Department

I. Check completeness of documents and verify existence of funds held in trust, assign number to DV/Payroll, sign Box B and forward to Treasurer.

Accounting Unit

V. Verify claim, certify cash availability (Box C) and forward to approving officer.

Treasurer

V. Approve transaction (Box D) and forward DV to Cashier.

Local Chief Executive/ Administrator of the Fund

I. Prepare and sign check and forward check with DV to countersigning officer.

Treasurer

I. Countersign check and forward to Accountant for preparation of the

Administrator

Appendix 6

203

P R O C E S S PERSON / UNIT RESPONSIBLE Accountant’s Advice.

I. Prepare Accountant’s Advice of Local Check Disbursements and return DV, check and supporting documents to Cashier/Treasurer.

Accountant

X. Issue check to claimant. Record disbursement in Cashbook – Cash in Bank. Prepare Report of Checks Issued (RCI), forward RCI with DV and supporting documents to Accounting Unit.

Treasurer

X. Prepare the JEV based on individual checks/voucher; sign “Prepared By” portion (approved by Chief Accountant), and record JEV in the Check Disbursements Journal. Post monthly to the General Ledger/Subsidiary Ledgers

Accounting Unit

I. Forward RCI, DV, supporting documents and JEV to the Office of the Auditor for final custody and post audit.

Accountant

b. Payments through cash advances For payments through cash advances, procedures 1 to 5 for check disbursement shall be

followed. The rest of the procedures shall be the same as that of the General Fund. Sec. 103. Inventory Process. – The perpetual inventory method and the moving average method shall likewise be adopted in the accounting and costing of inventory. The general procedures, the forms and reports for the holding of inventory shall also be followed. However, separate perpetual inventory records and stock cards shall be maintained by the Accounting Unit and the General Services Officer or the Treasurer as the case maybe. Likewise, separate weekly Summary for Supplies and Materials Issued pertaining to the fund shall be prepared.

Sec. 104. Pro-forma Accounting Entries for Trust Funds. – Accounting entries for typical transactions under the trust funds are as follows:

Particulars Account Title Acct. Code

1.

Credit 1. Receipt of grant from NGA a. Receipt of grant direct to

bank from NGA for:

a. Construction of road – P2M

Cash in Bank – LCCA Project Equity

110 2,500,000

b. Purchase of construction 502-01 502 2,500,000

Appendix 6

204


1.

Credit Equipment – P500,000 P2,500,000

b. Issuance of check with

approved DV for payment to contractor upon receipt of first billing – 50% accomplished

Construction in Progress –

Roads, Highways & Bridges

Withholding Taxes Payable

Cash in Bank – LCCA

232

410 110

1,000,000

100,000900,000

c. Submission of statement of

disbursements to grantor No entry

d. Issuance of check with

approved DV for payment to contractor upon receipt of second billing – 100% accomplished

Construction in Progress – Roads,

Highways & Bridges



232

410 110

1,000,000

100,000900,000

e. Transfer of completed

construction to Public Infrastructure

Public Infrastructures Construction in

Progress – Roads,

Highways & Bridges

243

232

1,000,000

1,000,000

f. Remittance of taxes w/held Withholding Taxes

Payable

410

200,000 Cash in Bank –

LCCA 110 200,000

g. Purchase of equipment Construction and

Heavy Equipment

212

500,000

Withholding Taxes Payable 410 50,000 Cash in Bank –

LCCA 110 450,000

h. Payment of withholding tax Withholding Taxes

Payable

410


LCCA 110 50,000

Appendix 6

205


1.

Credit i. Submission of full liquidation

to grantor and transfer of completed road and equipment to GF for LGU use

Project Equity Public Infrastructures Construction and

Heavy Equipment

502 243

212

2,500,000 2,000,000

500,000

Note: Under the GF books, completed infrastructure project shall be recorded in the Registry of Public Infrastructures with the TF JEV No. as basis. The transferred equipment shall be recorded as follows: General Fund Books: Public

Infrastructures 243 2,000,000

Construction and Heavy Equipment

212

500,000

Invested Equity 537 2,500,000 At the end of the year: a. Closing of Invested Equity to

Government Equity Invested Equity Government Equity

537 502

2,500,000 2,500,000

b. Transfer of Public Infra-

structure to RPI 502 243

2,000,000 2,000,000

Appendix 6

206


1.

Credit

2. Receipt of grant with counterpart fund from LGU a. Project budget as agreed

upon between grantor and LGU for project:

Grantor Building - 1.2M Equipment - .3M LGU Funded Office supplies -1M Salaries of project Personnel - .4M Total 2M

b. Receipt of funds from foreign

funding institution thru national government agency

Cash in Bank – LCCA Project Equity 502-01 - 1,500,000 502-02 - 500,000

110 502

2,000,000 2,000,000

Note: Entry in LGU General Fund books shall be – Grants and

Donations 889 500,000


110 500,000

c. Issuance of check with Construction in

Appendix 6

207


1.

Credit approved DV for payment to contractor for Construction of Building, 50% accomplished.

Progress – Agency Assets Withholding Taxes

Payable Cash in Bank – LCCA

230

410 110

500,000

50,000450,000

d. Remittance of withholding

tax



410 110

50,000

50,000

e. Issuance of check with

approved DV for cash advance on salaries and wages of project administrative personnel

Cash – Disbursing Officers


107 110

170,000

170,000

f. Liquidation of Cash

Advances Salaries and

Wages – Casual/

Contractual

803

200,000


410

30,000


107

170,000

g. Remittance of tax withheld Withholding Taxes

Payable

410


LCCA 110 30,000

h. Issuance of check with

approved DV for purchase of supplies and materials

Office Supplies Inventory


149 110

100,000

100,000

i. Issuance of office supplies Office Supplies

Expenses

849

60,000 Office Supplies

Inventory

149

60,000 j. Purchase of IT equipment IT Equipment and

Software

215

250,000 Withholding Taxes

Payable

410


LCCA 110 225,000

Appendix 6

208


1.

Credit k. Remittance of withholding

tax Withholding Taxes


410 110

25,000 25,000

l. Issuance of check for

installation of equipment IT Equipment and

Software Cash in Bank – LCCA

215 110

50,000

50,000

End of Year

m. Closing. of expenses to Project Equity

Project Equity 502-02 - P260,000

502 260,000

Salaries and Wages – Casual/ Contractual

803

200,000

Office Supplies Expenses 849 60,000

Succeeding year

o. Remittance of

withholding tax Withholding Taxes


410 110

70,000

70,000

p. Transfer of construction

in progress to property, plant and equipment account

Property Plant and

Equipment – Building

Construction in Progress – Agency Assets

204

230

1,200,000

1,200,000

q. Issuance of check for

cash advance on salaries and wages



107 110

170,000

170,000

r. Liquidation of salaries and

wages Salaries and

Wages – Casual/Contract

803

200,000

Appendix 6

209


1.

Credit ual


410

30,000


107

170,000

s. Remittance of withholding tax Withholding Taxes

Payable

410


LCCA 110 30,000

t. Issuance of office supplies Office Supplies

Expenses

849

40,000 Office Supplies

Inventory

149

40,000 End of Year

u. Closing of expenses to Project Equity

Project Equity Salaries and

Wages – Casual/

Contractual

502

803

240,000

200,000

Office Supplies Expenses

849

40,000

Project Completion

v. Transfer of building and equipment to the General Fund as follows:

Project Equity Building IT Equipment and

Software

502 204

215

1,500,000 1,200,000

300,000 General Fund Books: Building 204 1,200,000 IT Equipment and

Software

215

300,000 537 1,500,000

Appendix 6

210


1.

Credit

At end of year: Invested Equity 537 1,500,000 Government

Equity 501 1,500,000

Appendix 7

211

APPENDIX 7. PROCUREMENT GUIDELINES

In carrying out procurement of works, goods and services for the Project, the ADB’s Guidelines for Procurement (2010) Under Asian Development Bank Loans will be followed. Relevant excerpts follow:

A. Shopping

Shopping is a procurement method based on comparing price quotations obtained from several suppliers (in the case of goods) or from several contractors (in the case of civil works), with a minimum of three, to assure competitive prices, and is an appropriate method for procuring readily available off-the-shelf goods or standard specification commodities of small value, or simple civil works of small value. Requests for quotations shall indicate the description and quantity of the goods or specifications of works, as well as desired delivery (or completion) time and place. Quotations may be submitted by letter, facsimile or by electronic means. The evaluation of quotations shall follow the same principles as of open bidding. The terms of the accepted offer shall be incorporated in a purchase order or brief contract.

Shopping (page 35 of the Guidelines)

B. Force Account

Force account, that is, construction by the use of the borrower’s own personnel and equipment1, may be the only practical method for constructing some kinds of works. The use of force account may be justified where:

a. quantities of work involved cannot be defined in advance;

b. works are small and scattered or in remote locations for which qualified construction firms are unlikely to bid at reasonable prices;

c. work is required to be carried out without disrupting ongoing operations;

d. risks of unavoidable work interruption are better borne by the borrower than by a contractor; or

e. there are emergencies needing prompt attention.

Forced Account (page 36 of the Guidelines)

C. Community Participation in Procurement

Where, in the interest of project sustainability, or to achieve certain specific social objectives of the project, it is desirable in selected project components to (a) call for the participation of local communities and/or nongovernmental organizations (NGOs) in the delivery of services, or (b) increase the utilization of local know-how and materials, or (c) employ labor-intensive and other appropriate technologies, the procurement procedures, specifications, and contract packaging shall be suitably adapted to reflect these considerations, provided these are efficient and are acceptable to ADB. The procedures proposed and the project components to be carried out by community participation shall be outlined in the financing agreement and further elaborated in the procurement plan or the relevant project implementation document approved by ADB.

Community Participation in Procurement (page 40 of the Guidelines)

1 A government-owned construction unit that is not managerially and financially autonomous shall be considered a force account

unit. “Force account” is otherwise known as “direct labor,” “departmental forces,” or “direct work.”

Appendix 8

212

APPENDIX 8.PROCUREMENT OF GOODS AND SERVICES CHECKLIST

1. Preparation of Bid Packages (a) Implementing Agency:

prepare list of goods to be procured Group of goods into contracts Submit to ADB

(b) Executing Agency:

Review bid packaging Provide comments for necessary amendments Approve/Disapprove. Endorse to ADB

2. Preparation of Bidding Documents (a) Implementing Agency:

prepare bidding documents Submit to AB (voluntary; for compliance checking and guideline)


Review bidding documents Provide comments for necessary amendments

3. Advertisement and Notification (a) Implementing Agency:

advertise in English language newspaper of general distribution, either (i) Invitation of Bids, or (ii) Invitation of Express Interest

For specialized contracts advertise in well known technical magazines or trade

publications or newspaper of wide international circulation Issue bidding documents to:

(i) to all firms which want to participate (ii) to all least three firms from more than one eligible source country

4. Preparation of Bids Bidder - prepare bids Implementing Agency

- Answer inquires of bidders during clarification period - Prepare and send Q&A documents to all bidders

Bidder - Submit bid

5. Public Opening of Bids (a) Implementing Agency:

Open bids received in public Announce and record:

(i) Name of bidder (ii) Total bid price

Appendix 8

213

(iii) Price of alternative bid if any (iv) Discounts, if any (v) Presence of bid security, amount and validity

(b) Bidder:

Sign attendance register Sign record of public bid opening

6. Evaluation of Bids (a) Implementing Agency:

Evaluate bids Seek clarification from bidders if necessary Prepare bid evaluation report Submit bid evaluation to ADB (voluntary; for compliance checking and guideline)


Review bid evaluation Provide guideline on necessary actions to obtain Bank approval

7. Award of Contract (a) Implementing Agency:

Send letter of notification of award including contract form to successful bidder (b) Bidder:

Sign contract and return to EA Obtain Performance Security and submit to EA

(c) Implementing Agency:

Sign contract Submit to ADB Summary of evaluation of bids Justifications of award Contract as executed

(d) Executing Agency:

Review documents submitted Approve/Disapprove Endorse to ADB

Appendix 9

214

APPENDIX 9. TERMS OF REFERENCE OF KEY DISCIPLINES

1. Lead Consultant: Integrated Natural Resources and Forest Management (50 PM) 1. The Team Leader (TL)/ Chief Technical Advisor (CTA) provides the leadership to the consulting team for the achievement of the Project objectives during implementation. Specifically, the TL/CTA will guide implementation of the major components, resulting in achievement of both physical and financial disbursement targets as stipulated in the RRP. The consultant will Review the Project related documentation to better understand the Integrated Natural Resources and Forest Management implications of proposed investments under the Project. In ensuring effective implementation of the Project, the consultant will: 2. The TL/CTA will be responsible for the following specific activities during implementation, with the assistance of other team members, as appropriate:

(i) Organize and oversee implementation of land use and land capability assessment component, and associated analyses and assessments, as stipulated in the RRP and detailed in various core and supplementary appendixes on Implementation Arrangements.

(ii) Oversee collection and analysis of the agro-ecological condition of selected priority watersheds in selected river basins that impact its ecological functions, including an assessment of current land use patterns, determine appropriateness of existing land use patterns.

(iii) Socioeconomic analysis of potential beneficiaries, with special reference to poor and vulnerable, and indigenous people, if any.

(iv) Documentation of social, technical, policy, legislative and institutional constraints that must be addressed to ensure restoration of ecological functions of the selected watersheds. Organize stakeholder workshops at the national, provincial, and local government levels to present the data on land use and land capability assessments and other social and environmental data and present options for investments to be included in the management plan;

(v) Oversee associated assessments in social, environment (including potential climate change impacts), institutional, and policy aspects to be undertaken by other members of the team with a view to generate adequate and appropriate data for preparation of management plans for the watersheds within the selected river basin; particular focus on traditional sustainable development management practices in line with the needs and aspirations of the indigenous population;

(vi) Based on a thorough review of lessons learned in natural resources, and environmental management of watersheds, design an appropriate monitoring and evaluation framework for monitoring progress and performance of the Project in accordance with ADB Guidelines and documentation provided as part of the RRP;

(vii) Organize and guide the Strategic Environmental Assessment (SEA) of the management plans prepared for the watersheds in each river basin and ensure that climate change considerations are embedded in the SEA for the management plan;

(viii) Finalize the Management Plans for the watersheds in each river basin in the selected river basins in the Philippines;

(ix) Provide the guidance to the consultants´ team in the preparation of the feasibility study for integrated natural resources and environmental management (INREM) investment program, encompassing appropriate investments and associated policy

Appendix 9

215

adjustments to ensure appropriate levels of conservation, rehabilitation, and management of selected critical watersheds of priority river basins;

(x) The management plans will include investment options for natural resources conservation, rehabilitation and management of selected watersheds within the selected priority river basins, identifying various investment packages and their climate change risks and mitigation under each option together with indigenous Peoples’ Development Plan (if applicable), Involuntary Resettlement Plan (if applicable), Institutional capacity building plan, cost estimates for investments, financing options (including options for grant financing under various global conservation/environmental funds (GEF/CDM/Others), economic and financial analysis, and policy adjustments indicating milestones for compliance and bench marks for monitoring;

(xi) Organize and conduct training workshops for raising environmental awareness and environmental management at the LGU level (provincial and municipality); and

(xii) Organize river basin level stakeholder workshops and obtain feedback and concurrence on proposed investment options.

3. In undertaking the activities, the TL will work with the concerned national agencies, coordinate closely with concerned government agencies, development partners and other stakeholders’ groups in the preparation of the management plans, and update the ADB, concerned national government agencies and other development partners of the progress of work through periodic reports and regular meetings and submit periodic progress reports that the ADB requires.

2. Climate Change and REDD (International 8 PM; National 16 PM) 4. Consultants will assist the appropriate institutions within the EA and other GOP agencies in preparing and addressing various aspects of Climate Change REDD as envisaged in the CC REDD Application approved by ADB. Among other things, the assignment will include the following tasks:

(i) With reference to National REDD Readiness Capacity Building the consultants will work with a wide range of stakeholders from national level down to the grass roots to address various issues and concerns to enhance understanding and capacities. At national level there are policy issues relating to securing international payments for Emission Reduction Certificates, establishment of protocols for national, regional and local emission baselines, the appropriate regulatory and legal framework for undertaking REDD activities, and measures for dealing with issues of “leakage” and "permanence". At the local level the issues relate to implementation, and the design of interventions that will actually achieve reductions in emissions, estimation of current carbon stocks, assessment of future emissions in the absence of interventions, evaluation of emission reductions and securing agreement among stakeholders as to how the proceeds from emission reductions will be shared. Capacity will need to be developed at all levels to handle all these issues effectively in the future, which will need a combination of technical assistance and the provision of advice and on-the-job training. The consultants will provide advice to the appropriate authorities at national, regional and local levels in relation to the policy and regulatory issues and the practical aspects of carbon stock assessments and establishment of emission baselines. The technical support will include capacity building through on-the-job training, development of training materials and implementation of training courses and

Appendix 9

216

workshops. (ii) With reference to Carbon cycle assessments the consultants will evaluate and

assess a wide range of land-use/land management systems applied in forestry, agriculture and horticulture. Each of these systems has different implications with regard to carbon cycles through variations in life cycles, rates of carbon sequestration and the ultimate utilization of the products and residues. In order to support better carbon management by all stakeholders concerned with land management it is necessary to undertake research and studies of the carbon cycles in all, or as many as practicable, of the land management systems currently in use in the URBs covered by the INREM Project. These studies should lead to recommendations for improvements in practice that will reduce and minimize unnecessary emissions of CO2. The consultants will assist the relevant authorities with the design and supervision of studies to compare life cycle carbon stocks in major land management systems (to include the growing cycle of sequestration and decomposition and the subsequent utilization cycle with different carbon conservation regimes)

(iii) With reference to Baseline Assessment of Carbon Stocks, assuming that an international protocol for REDD will be agreed and include the provision that payments for emission reductions be based on measurable reductions in CO2 emissions below a baseline level that represents what emissions would have been without interventions. As a first step, the geographic area to which the baseline applies will have to be agreed. In order to reach a decision, investigations will be needed to assess the pros and cons of using either administrative boundaries, and if so what level is appropriate for physical boundaries such as river basins or sub-basins. Establishment of baselines will also be dependent on the availability and reliability of historical data on land-use within the chosen area. The consultants will assist the relevant authorities at national, regional and local level to reach the necessary decision regarding the geographical area to which base-line studies will apply and then to identify available sources of the necessary data to establish credible and verifiable base-lines. Where reliable data is not available, the consultants will advise on the best proxy data to be used and on the steps needed to develop the necessary data and information at the earliest possible time. The consultants will provide the technical support in undertaking the capacity building, develop training materials, and undertake the required training, and will advise on the establishment and management of a database within an appropriately qualified national institution.

(iv) With reference to Design of Pilot Activities, given that different land management

systems create different sources of emissions of CO2 and involve different sets of stakeholders, which tends to influence both the quality of management and the scale of operations, Pilot activities shall have to be designed that test as many as possible combinations. The consultants will assist project management to identify various options under various land use scenarios and design appropriate pilot activities, and where there are multiple potential partners for implementing the pilot activities to design a selection process that may include some form of competitive bidding. One criteria for selection of pilot activities would be the replicability of the activity throughout the river basin in which the demonstrations will be established as well as regionally and nationally. A further criteria would be the marketing of emission reductions from the activity and the way in which the proceeds are distributed among stakeholders, which should ensure that there is

Appendix 9

217

adequate incentive to participate, equity among stakeholders that reflects each party’s contribution and sustainability. The demonstration activities should be designed with a view to the development of a REDD-related land management investment portfolio.

3. Institutional Assessment and Capacity Building (18 PM, Intermittent)

5. The consultant will review the Project related documentation, including the FSR and consultants reports produced during project preparation, to better understand the current LGU capacity and capacity building objectives and implications of proposed investments under the Project. The consultant will work in close collaboration and consultation with other members of the team, participating beneficiaries and the private sector to ensure effective implementation of the Project objectives. In this context, the consultant will: 6. Based on the updated input received from various members of the team as well as the capacity building plan prepared during the project preparation phase, assess the current capacities of LGUs and participating Local Community Organizations (LCOs) or Peoples’ Organizations (POs) to (i) handle and effectively implement various Project activities including land use and land capability assessment, INREM planning, participatory demarcation and zoning, and other activities. In this context, the consultant will:

(i) Undertake a needs assessment at various levels of implementation (regional, provincial, and municipality) within government and nongovernment institutions, LCOs and POs to determine the capacity building needs at these levels:

(ii) Based on the assessment, develop a comprehensive Capacity Building Plan to ensure effective implementation of the Project at all levels of implementation;

(iii) Determine the appropriate mechanism and methodologies for capacity building at various levels;

(iv) In consultation with other members of the team, develop training/capacity building modules, and identify the means and the mechanisms for imparting the training needed for capacity enhancement at various levels;

(v) In consultation with other members of the team, organize and conduct training workshops for raising environmental awareness and environmental management at the LGU level (provincial and municipality); and

(vi) Assist the Team Leader in any other tasks relevant to the expertise of the consultant including preparing various reports and other documents required by ADB and concerned government institutions.

4. Land Use and Land Capability Assessment, Planning and Management (12

PM, Intermittent) 7. The consultant will Review the Project related documentation, including the FSR and consultants reports produced during project preparation, to better understand the objectives and implications of Land Use and Land Capability Assessment, Planning and Management in the proposed investments under the Project. In ensuring effective implementation of the Project, the consultant will:

(i) Develop a strategy for undertaking land use and land capability assessment of selected river basins with the aim of determination of the most appropriate land use that ensures integrity of the watersheds and reverses the trends of watershed degradation. In this context. He/she will supervise the desk based analysis and

Appendix 9

218

field surveys and mapping required to collect data for analysis; the information thus generated and analyzed would serve as the basis for land capability classification, zoning and management planning;

(ii) Participate and act as resource person, on matters related to land use planning and management, in stakeholders’ workshops that will be conducted in Luzon, Visayas, and Mindanao to identify and document localized issues and concerns in land use planning, classification, zoning and management planning with active participation of stakeholders’ in ensuring sustainable natural resources management;

(iii) Based on the watershed land use assessment, alternative land use options, and other information relevant to his expertise, contribute to the development of the river basins natural resources management plan;

(iv) Organize and conduct training workshops for capacity building in the relevant field accordance with the capacity building plan at the LGU level (provincial and municipality); and

(v) Assist the Team Leader in any other tasks relevant to the expertise of the consultant including preparing various reports and other documents required by ADB and concerned government institutions.

5. Geographical Information Systems (GIS) & Mapping (8 PM, Intermittent)

8. The consultant will review the Project related documentation, including the FSR and consultants reports produced during project preparation, to better understand the GIS based Monitoring and Evaluation objectives and implications of proposed investments under the Project. The consultant will work in close collaboration and consultation with other members of the team, participating beneficiaries and the private sector to ensure effective implementation of the C&P objectives. The consultant will the contractors for land use and land capability assessment to develop appropriate maps and datasets for establishment of a spatial data base as the saline for longer term monitoring of land use information for informed decision making. In this context, the consultant will:

(i) Review satellite images and work with other specialists in updating the data on the bio-physical, socioeconomic, climatic, and institutional conditions of the watersheds in selected river basins to update their characterization in accordance with integrated watershed management Guidelines;

(ii) In coordination with other consultants, prepare maps including on land uses, drainage, political boundaries, hydrological vulnerabilities, population and settlement, infrastructure, location of indigenous peoples, cultural resources and critical areas for biodiversity conservation in the watershed;

(iii) Establish whether target end-users require software upgrading and data management training to enable effective use of the procured/developed GIS data sets from the modelling studies;

(iv) Establish data presentation formats following ADB guidelines on logos and spellings, and interface it with the INREM information systems so that data can be made available to partners in a user-friendly format for maps and presentations and program implementation;

(v) Collaborate closely with concerned government agencies involved in monitoring and spatial mapping;

(vi) In consultation with other members of the team, organize and conduct training workshops for raising environmental awareness and environmental management at the LGU level (provincial and municipality); and

Appendix 9

219

(vii) Assist the Team Leader in any other tasks relevant to the expertise of the consultant including preparing various reports and other documents required by ADB and concerned government institutions.

6. Policies (,Institutions) and Legislation (42 PM, Intermittent) 180. The consultant will review the Project related documentation, including the FSR and consultants reports produced during project preparation, to better understand the policy and legislation objectives and implications of proposed investments under the Project. In this context, the consultant will undertake review and analysis of natural resources, environmental management policies associated with land use and land tenure, and other relevant issues and provide appropriate input for preparation of river basin level INREM Plans for selected river basins under the Project. In this context, the consultant will be responsible for providing contribution and assistance in:

(i) Collection and documentation of available information and secondary data for assessment of the current policies and associated issues with specific reference to INREM of selected river basins in each of the major administrative regions at the national and provincial level;

(ii) Analysis of policy adjustment needs to ensure effective implementation of INREM plans at the LGU level, addressing the associated climate change implications, as well as issues pertaining to land and tree tenure;

(iii) Drafting of appropriate legislation (ordinances, executive orders, etc) that would be required for effective implementation of INREM plans and effective operation of Payment for Environmental Services;

(iv) Identify critical institutional issues including those relating to un-sustainable logging, mining concessions and inadequate enforcement and implementation of stated policies as relevant to environmental management in coordination with other national consultants;

(v) Propose policy adjustment options (including climate adaptation policy options) for effective implementation the selected investment options for the INREM plans for selected river basins;

(vi) Organize and conduct training workshops for capacity building in the relevant field accordance with the capacity building plan at the LGU level (provincial and municipality);and

(vii) Assist the Team Leader in any other tasks relevant to the expertise of the Consultant including preparing various reports and other documents required by ADB and concerned government institutions.

7. Social Safeguards (incl. IPs and Resettlement), Poverty, and Gender (32 PM

Intermittent) 9. The consultant will review the Project related documentation, including the FSR and consultants reports produced during project preparation, to better understand the policy and legislation implications of proposed investments under the Project. In this context, the consultant will be responsible for assessment of the social dimensions (including indigenous people, resettlement, risk reduction, gender & development, land tenure, institutions, stakeholder participation, organization of workshops, and participant feedback). The consultant will:

(i) Prepare a socio-economic database at the beneficiary and village/township/county level in a participatory manner that will serve as the

Appendix 9

220

benchmark (baseline) information for the input, output, and outcome monitoring and evaluation indicators for assessing the poverty, social, and gender impacts of the Project components and for the Project as a whole. Information to be collected through a combination of primary and secondary data gathering as well as quantitative and qualitative approaches; will include but will not be limited to, demographic information of the poor disaggregated by gender and minority/social groupings, definitions and perceptions of poverty in Project sites, economic, environmental, and noneconomic features of poverty, resource assets and systemic constraints of the poor, typology of the poor in the Project sites, and institutional bottlenecks to poverty reduction;

(ii) Using the data gathered, prepare socio-economic and poverty profiles of the prospective stakeholders and beneficiaries to be impacted by the component and/or sub-project, using both quantitative and qualitative and participatory techniques. Undertake a needs assessment/beneficiary analysis in the Project sites and prospective Project sites and identify the causes of income and non-income poverty. Undertake a SWOT analysis of the poor, women, and minority groups in the initial phase of the Project. After which, design a participatory poverty analysis that will involve as many of the stakeholders as possible; this will serve as the format for future poverty profiling and assessments;

(iii) Formulate recommendations to bring about greater accountability and transparency in the development process itself at the local level through empowered communities and genuine participation in the development processes;

(iv) Ensure that INREM plans development processes actually use participatory approaches effectively, and include the poor, assetless, vulnerable sections in local planning, resource allocation decisions, and benefit flows from such development interventions. Identify examples, and analyze and discuss to understand the extent to which such approaches can actually help to unlock the potential of the rural poor and gain them access to factor and product markets;

(v) In consultation with relevant members of the team, carry out an analysis of policy adjustments related to social dimensions (with specific reference to INREM planning and implementation) such as: land and tree tenure, vulnerability of human settlements and rural livelihoods to climate impacts, micro credit, institutions, etc for inclusion into a policy dialogue with the government;

(vi) Assist in formulation of appropriate and acceptable proposals regarding sharing of downstream revenues with upstream communities for recompensing environmental services as integral parts of the INREM plans;

(vii) Make appropriate recommendations regarding the means that make conservation and watersheds management profitable for upstream communities, who are most often indigenous people, and measures to ensure that such environmental service costs actually reach the communities in the manner and forms they require and benefit them;

(viii) Based on the social assessment and where indigenous peoples will be involved/affected directly or indirectly, recommend culturally appropriate strategies and options to mitigate impacts as a result of new schemes to be introduced and which will potentially change livelihoods and/or demand for socio economic services

(ix) Organizing stakeholder workshops to seek agreement with stakeholders on criteria for classification of watersheds and river basins into various categories ;

(x) Prepare an Initial Social Analysis report, an Indigenous Peoples´ Development Plan and/or Involuntary Resettlement Plans for the INREM Program, if deemed

Appendix 9

221

necessary, in accordance with ADB Policies and Guidelines and the IPD Framework and IR Framework;

(xi) Prepare a Gender Action Plan for each watershed in accordance with ADB Gender Policy;

(xii) In consultation with relevant members of the team, propose options for capacity building of various local community groups/organizations that may be involved with implementation of the Project, identifying the means and institutions for such capacity building measures. This can include community-based public education and outreach activities related to climate risk reduction and adaptive water management practices;

(xiii) In consultation with other members of the team, organize and conduct training workshops for capacity building in the relevant field accordance with the capacity building plan at the LGU level (provincial and municipality); and

(xiv) Assist the Team Leader in any other tasks relevant to the expertise of the Consultant including preparing various reports and other documents required by ADB and concerned government institutions.

8. Information, Education and Communication and Public Participation (20

PM, Intermittent) 10. The consultant will review the Project related documentation, including the FSR and consultants reports produced during project preparation, to better understand the Information, Education and Communication and Public Participation objectives and implications of proposed investments under the Project. The consultant will work in close collaboration and consultation with other members of the team, participating beneficiaries and the private sector to ensure effective implementation of the C&P objectives. Specifically, the consultant will:

(i) Develop complementary arrangements with academe and research-extension agencies within the river basins to engage in resource and information sharing and provision of technical assistance;

(ii) Promote the adoption of conservation farming technologies by adherence to consultation and participation with and among stakeholders especially the vulnerable and incentive-providers, the LGUs;

(iii) Strengthen the existing POs in the arena for participation especially among early adopters. Involve local NGOs to provide the technical expertise and form the pool of trainers, or engage in M&E activities to ensure that farmers adopt the conservation farming technologies and that farm inputs and information are received in a timely manner;

(iv) Develop IEC materials as part of the development support communication provided in the C&P plan in order to enhance the informed decision-making process among the vulnerable stakeholders. Materials will be developed according to the needs and preferences of the community. For instance, some IP groups still prefer interpersonal communication as the most effective way of informing and educating farmers especially when role-paying is included. For other stakeholders, print and audiovisual materials are more than enough. Along with site-species matching of conservation farming technology is the need to match the appropriate and preferred IEC modalities. These have to be included in the Social Assessment to be conducted immediately before investments are made;

(v) In consultation with other members of the team, organize and conduct training workshops for raising environmental awareness and environmental management at the LGU level (provincial and municipality); and

Appendix 9

222

(vi) Assist the Team Leader in any other tasks relevant to the expertise of the consultant including preparing various reports and other documents required by ADB and concerned government institutions.

9. Environmental Safeguards and Cumulative Environmental Assessment (28

PM, Intermittent) 11. The consultant will review the Project related documentation, including the FSR and consultants reports produced during project preparation, to better understand the policy and legislation implications of proposed investments under the Project. In this context, the consultant will review various reports/assessments and other relevant background information available with the team or collect additional information to update him/herself with the current status of environment related aspects in the selected river basins and proposed subprojects. He/she will visit the field sites, familiarize him/herself with potential environmental issues relevant to the proposed interventions in each subproject area and evaluate the implications of the INREM plans and subproject feasibility studies on the environment and conduct an Initial Environmental Examination of the subprojects in accordance with applicable ADB and National Environmental Assessment Guidelines and in accordance with the Develop Environmental Assessment and Review Framework (EARF). The consultant will:

(i) Thoroughly familiarize him/herself with the proposed interventions by reviewing available documentation, field visits, discussions and interviews, and discussions with concerned members of the consultants' team;

(ii) Propose options for enhancement of the role of local communities in monitoring environmental compliance dimensions during implementation of the INREM plans;

(iii) In consultation with other members of the team, propose capacity building options for various local community groups/organizations that may be involved with monitoring of environmental compliance dimensions including climate risk reduction during implementation, identifying the means and institutions for such capacity building measures;

(iv) Conduct an environmental assessment of the subprojects under each intervention and prepare an initial environmental examination (IEE) reports for each component and over all environmental impacts of all the interventions within the river basin; in this context, the consultant will use an area based approach, using the selected river basin to determine the scope of the IEE, and all interventions with as interventions for assessment of environmental impacts;

(v) Present the IEEs to the stakeholders in a stakeholder workshop and obtain feedback and incorporate comments and concerns of stakeholders, as appropriate;

(vi) Finalize the IEE and prepare a Summary IEE as part of the final report; the IEE report will include appropriate appendixes in accordance with ADB Environmental Guidelines and national guidelines, policies and procedures;

(VII) Provide technical and administrative support to the team leader in carrying out various tasks related to implementation of the PPTA;

(VIII) In consultation with other members of the team, organize and conduct training workshops for capacity building in the relevant field accordance with the capacity building plan at the LGU level (provincial and municipality); and

(ix) Assist the Team Leader in any other tasks relevant to the expertise of the consultant including preparing various reports and other documents required by ADB and concerned government institutions.

Appendix 9

223

10. Strategic Environmental Assessment (National, 16 PM, Intermittent) 12. For the strategic and cumulative environmental assessment, the consultant will assess the broad level strategic and cumulative impact on the environment as a consequence of various INREM plans prepared under the INREM process and identify any impacts (adverse or positive) that may result and how any of these adverse impacts may be addressed/mitigated, both within the project and external to the project. The basic steps to be conducted in the strategic environmental assessment are as follows:

(i) Conduct screening and scoping. Confirm that the investment program is the appropriate plan to be the focus of assessment;

(ii) Define indicators. Review available sustainability indicators, adopt/adapt a simple and clear set of indicators to evaluate environmental effects;

(iii) Engage stakeholders. Identify and analyze interests, incentives, roles, mandate, and linkages of the various stakeholders;

(iv) Identify, predict, and evaluate effects. Identify social and economic changes that will be created by the investment program;

(v) Integration. Integrate the environmental criteria in the INREM plans that will be specified for each river basin;

(vi) Mitigation. Based on the review, feedback from stakeholders, and assessment of critical environmental issues, make appropriate recommendations for incorporation in the INREM plans and overall implementation of the investment program;

(vii) Monitoring. Prepare a monitoring plan to measure environmental effects of mitigation measures;

(viii) Independent review. Submit strategic and cumulative environmental assessment and documents for independent review;

(ix) In consultation with other members of the team, organize and conduct training workshops for raising environmental awareness and environmental management at the LGU level (provincial and municipality); and

(x) Assist the Team Leader in any other tasks relevant to the expertise of the consultant including preparing various reports and other documents required by ADB and concerned government institutions.

11. Financial Management, Procurement and PBGS (National, 12 PM,

Intermittent) 13. The consultant will review the Project related documentation, including the FSR and consultants reports produced during project preparation, to better understand the financial management, procurement, and PBGS objectives and implications of proposed investments under the Project. The consultant will work in close collaboration and consultation with other members of the team, participating beneficiaries and the private sector to ensure effective implementation with specific reference to financial fund flows and operation of PBGS. Specifically, the consultant will:

(i) Review the objectives, scope, activities, management, implementation arrangements for various components and subprojects and determine their appropriateness in achieving the objectives, and in achieving expected benefits;

(ii) Evaluate and assess the project flow of funds and ascertain that all parties concerned understand the flow of funds (including approvals and authorizations) under the Philippine government system to be utilized under the project;

Appendix 9

224

(iii) Assess and describe the accounting systems, controls and capacities of the stakeholders to be partners in the in the chain. Discuss greatest vulnerabilities in the system and make recommendations to improve controls and efficiency;

(iv) Identify and describe areas where strengthening of accounting and finance procedures will be required for various stakeholder participants in handling of finances from a multilateral-funded project;

(v) Design a training program to address areas needing strengthening to enable efficient project start-up and flow of funds. Identify the participants, the thematic area to be covered, timing of the training, the instructors, duration of instruction, venue and costs;

(vi) Formulate a financial management manual to provide guidance for those officers involved both at the start-up of the project and for other financial officers who may be transferred in later during the duration of the project period;

(vii) Assess the fiscal requirements and impact of the Project on the Government of the Philippines, and the various agency and local government levels; assess budgetary sustainability and LGU or beneficiary ability to provide required funding for operations and maintenance of management institutions and project-funded facilities; in this regard, assess viable options for payment for environmental services (PES), workable arrangements and requirements (institutional and legal), and make recommendations to address remaining gaps;

(viii) Identify and model suitable and potentially viable private sector enterprises, considering the setting and conditions of the watershed, opportunities, risks, and market access and costs; Identify the constraints for private sector development and linkages, and make recommendations for how best to address these in the context of sustainable watershed management;

(ix) Assess the availability of credit for household and firm financial needs in the watersheds. Identify gaps and potential partnerships, and make recommendations for strengthening workable linkages for rural finance. If this should include workshops and training, formulate the program inputs, costs, participants, duration, venues, and outputs;

(x) Taking account of ADB requirements and national guidelines, update the procurement plan for the Project at the national, regional, provincial and municipality level;

(xi) Prepare a report that contributes to the preparation of the feasibility studies for various subproject under various INREM plans; and

(xii) Assist project team with any matters pertaining to finance and project activity models (taxes, import duties, transport, etc.), if any;

(xiii) In consultation with other members of the team, organize and conduct training workshops for raising environmental awareness and environmental management at the LGU level (provincial and municipality); and

(xiv) Assist the Team Leader in any other tasks relevant to the expertise of the consultant including preparing various reports and other documents required by ADB and concerned government institutions.

12. Rural Infrastructure Engineering (16 PM, Intermittent)

14. The consultant will review the Project related documentation, including the FSR and consultants reports produced during project preparation, to better understand the Rural Infrastructure Engineering objectives and implications of proposed investments under the Project. The consultant will have the following functions and responsibilities in supporting the PSO and PC:

Appendix 9

225

(i) Conduct a thorough evaluation of MLGUs to determine their eligibility for project

support in relation to their technical, administrative and financial capacity to implement proposed rural infrastructure sub-components;

(ii) review specifications for rural infrastructure works (rural access, communal irrigation schemes, post-harvest facilities and potable water supply schemes) and prepare and agree on standard designs and specifications for use by MLGUs,

(iii) check, review and evaluate detailed engineering plans, design, drawings, PERT/CPM, Gantt Chart and S-Curve, detailed estimates and programs of work submitted by the MLGU through the PSO for approval by the PC;

(iv) establish mechanisms and standard costs to be used in determining the work item unit costs that would be used as the means to release funds to MLGUs for completed work and establish procedures for approving variations in planned work and resolving claims for extra payments;

(v) review contractors’ claims for additional payments, extension of time or other such claims as recommended by MLGU;

(vi) propose revision, where necessary, to procedures, standard specifications and work item unit cost calculations;

(vii) review, analyze and evaluate periodic reports of sub-components implementation as submitted by the MPO, conduct field inspection if necessary and recommend solutions to problems encountered;

(viii) review completion reports, conduct final field inspection, prepare final inspection report and recommend turn-over of completed facilities to the LGU and end users;

(IX) Organize and conduct training workshops for capacity building in the relevant field accordance with the capacity building plan at the LGU level (provincial and municipality); and

(X) Assist the Team Leader in any other tasks relevant to the expertise of the Consultant including preparing various reports and other documents required by ADB and concerned government institutions.

13. Rural Infrastructure Economist ( 16 PM, Intermittent)

15. The consultant will review the Project related documentation, including the FSR and consultants reports produced during project preparation, to better understand the Rural Infrastructure Economics objectives and implications of proposed investments under the Project. The consultant will be responsible for effectively and efficiently carrying out the approval process of all sub-project investments funded by the project and ensure that final approval would be obtained, based on agreed criteria, in a timely manner. He/she will have the following functions and responsibilities in supporting the PSO and PC:

(i) Manage the sub-components’ appraisal process, and take responsibility for ensuring that the PSO and PC has the appropriate skills to focus on reviewing each individual sub-component proposal;

(ii) set up investment benchmarks to be used in initial sub-component screening for different types of investment and establish detailed models and working procedures in coordination with relevant line agencies;

(iii) establish and disseminate a set of procedures to ensure an orderly and timely flow of rural infrastructure investment proposals;

(iv) together with the RIS, agree on a series of time-bound processing targets for rural infrastructure appraisal process;

(v) conduct thorough review and evaluation of sub-component feasibility study

Appendix 9

226

submitted by MLGUs and conduct field appraisal visits if necessary; (VI) prepare documents and recommend feasible sub-components for deliberation and

approval by the PC; Organize and conduct training workshops for capacity building in the relevant field accordance with the capacity building plan at the LGU level (provincial and municipality); and

(vii) Assist the Team Leader in any other tasks relevant to the expertise of the Consultant including preparing various reports and other documents required by ADB and concerned government institutions.

14. Resource Economics (12 PM, Intermittent)

16. The consultant will work closely with the Resource Economist, review the Project related documentation, including the FSR and consultants reports produced during project preparation, to better understand the Resource Economics objectives and implications of proposed investments under the Project. The consultant will work in close collaboration and consultation with other members of the team, participating beneficiaries and the private sector to carry out economic and market demand analysis of various components and/or sub-projects, assigned by the NPCO. Specifically, the consultant will:

(i) Review the objectives, scope, activities, management, implementation arrangements for various components and subprojects and determine their appropriateness in achieving the objectives, and in achieving expected benefits;

(ii) Review and analyze the economic and financial viability and market demand aspects of the proposed sub-projects, and undertake an analysis should any of these aspects be found to be deficient in any manner; identify any significant changes in the financial and economic environment that may affect the design and implementation of the sub-project;

(iii) Review and revise, as necessary, the parameters used in the economic and/or market demand analysis of the proposed component or sub-project;

(iv) Review input-output and price parameters used in the financial and economic modeling of proposed sub-project activities and expand and/or revise models to reflect changes in both the economic and financial environment and in model parameters;

(v) Based on the revisions to scope and activities, revise and update the cost estimates and financing plan. Discuss detailed cost estimates with the team leader and the NPCO and brief concerned national and provincial agencies about the feasibility or otherwise of the proposed sub-project;

(vi) Prepare an overall Project economic/financial analysis and market demand analysis based on revised Project scope and activities and input-output and price parameters. This should identify the number of beneficiaries of the proposed sub-projects, in particular the proportion that will fall within the poverty target group;

(vii) Periodically monitor the impact of the Project in terms of generation of fiscal revenues, i.e., taxes, duties;

(VIII) Organize and conduct training workshops for capacity building in the relevant field accordance with the capacity building plan at the LGU level (provincial and municipality); and

(ix) Assist the Team Leader in any other tasks relevant to the expertise of the Consultant including preparing various reports and other documents required by ADB and concerned government institutions.

15. Geographical Information Systems (GIS) based Database development for

Appendix 9

227

Project performance monitoring (10 PM, intermittent) 17. The consultant will review the Project related documentation, including the FSR and consultants reports produced during project preparation, to better understand the GIS based database management objectives and implications of proposed investments under the Project. In ensuring effective implementation of the Project, the consultant will:

(i) Provide appropriate assistance and supervision support in the development of GIS-based natural resources management information systems to ensure regular monitoring of project implementation performance as well as the status of natural resources in all the river basins within the scope of the Project;

(ii) Provide necessary assistance and support to the Project team with development of data sets needed for the establishment of baselines for an assessment of carbon stocks in the river basins and identification of appropriate management prescriptions for their conservation and management to enhance biodiversity conservation and reduction in the emission of greenhouse gases (GHGs).

(iii) Based on the information generated under (i) above, prepare the required maps and date sets with specific reference to biodiversity areas, degraded areas in need of rehabilitation, and areas with potential for effective protection to enhance carbon sequestration and reduce emission of GHGs in the priority watersheds included under the INREM Project.

(iv) Produce thematic maps of existing and potential run-of-the river hydropower sites, cities or urban areas adjacent to watershed catchments, and significant irrigation areas in the country.

(v) In consultation with other members of the team, facilitate mapping of the areas with potential scope of applying PES in the relevant sectors (hydropower, irrigation, domestic and industrial water use, and water code) to finance watershed conservation and management. Analyze map overlays resulting from the mapping exercise, and identify priority watershed areas for PES program design.

(vi) For information management and environmental monitoring, review the current system of environmental monitoring with specific reference to biodiversity conservation, climate change impacts, land use changes, deforestation, soil erosion and pollution and contamination of water resources, and determine its appropriateness for application in the Project area.

(vii) Taking into account the framework for GIS based decision support system (DSS) developed under the INREM PPTA, and in collaboration with concerned government agencies involved in monitoring and spatial mapping, design an appropriate monitoring system, linked to the DSS, which supports decision making at various national, regional and LGU levels, and enhances the current level of monitoring of environmental conditions of watersheds in the selected river basins, as well as generate data for monitoring Project performance including biodiversity conservation and carbon sequestration benefits, with potential for expansion to other similar areas of the country.

(viii) Identify target end-users under the Project, and establish whether they require software upgrading and data management training to enable effective use of the procured/developed GIS data sets from the modelling studies (if so, prepare a detailed training program, including magnitude, venues, timeframe, and costs);

(ix) Collaborate closely with concerned government agencies involved in monitoring and spatial mapping;

(x) Organize and conduct training workshops for capacity building in the relevant field

Appendix 9

228

accordance with the capacity building plan at the LGU level (provincial and municipality); and

(xi) Assist the Team Leader in any other tasks relevant to the expertise of the consultant including preparing various reports and other documents required by ADB and concerned government institutions.

Appendix 10

229

APPENDIX 10. GENDER ACTION PLAN

1. National concerns. Filipino women may be considered as relatively advanced in the areas of education, profession, politics and legislation1 but they also suffer from domestic violence, economic disadvantages, discrimination in the workplace, exploitation as migrant workers and prostituted women, and war displacement. Women are largely visible within the government bureaucracy but these mostly are technical or second-level positions. Employed women2 (13.3 million) were lower in number than that of men (21.3 million) and about 54.7 percent of female OFWs in 2008 were laborers and unskilled workers, including domestic helpers, cleaners, and manufacturing laborers. Remittances from female OFWs were relatively lower than the males. As regards violence against women (VAW)3, the number of reported cases increased to 37.4 percent from 2008 to 2009. It is recognized that the data reflects merely what is reported to the PNP and that unreported cases are possible. In general, women are in disadvantaged position due to differences in gender roles that limit their access to productive resources and basic services.

2. Site-based concerns. Data resulting form the social assessment reveal that the Project’s regional stakeholders, largely INREM institutional stakeholders, perceive women to be low in terms of importance and influence in river basin management. At the village level consultations with local communities resulted in women being rated as moderately important but with much influence in community concerns. Lake Lanao village level consultations in the municipalities of Bubong, Taraka, and Marawi City ascertain that women are perceived to be of low importance and influence as regards natural resource management. Across river basins, household and community levels of interaction reflect strengths in the assertions of women in natural resources management especially marketing, credit, and household reproductive activities. Brought to a higher level of social interaction, power dynamics can be described as subdued for women where they largely become silent participants to planning and decision-making specifically in regard to land use planning.

3. Another key gender issue is the minimal and unsatisfactory access to social and financing services as perceived by women stakeholders. Social services cited were on education, health, water and electricity. By and large, those from the downstream areas of Wahig-Inabanga and Upper Bukidnon River Basins responded more positively.

4. IP Women. There are no manifest conflicts between genders. However, in the vegetable producing areas of CAR and Bukidnon, women are paid much less than their male counterparts notwithstanding the fact that tasks accorded to women are less physical demanding. Local leadership at the project sites is still highly male-dominated, but this does not prevent women from taking the necessary initiative to organize and perform localized decision-making. Women in the Chico River Basin have been known to influence local ordinances directed to their menfolk to limit domestic violence by controlling drinking sprees with specific curfew hours provided.

5. Women in Conflict-Affected Areas. Women play major roles in social protection4 within conflict-affected areas of Mindanao. While men join the battlefield or are in some cases their mobility is restricted, households have become dependent on women for survival. Some women play significant roles in supporting the mujahideen as they provide food and medicine, and act as emissaries.

1 Philippines Development Plan: 2011-2016 2 2009 Labor Force Survey 3 Philippine Commission on Women, 2010 4 Joint Needs Assessment for Conflict-Affected Communities In Mindanao: Human Development Sector. Draft Integrated Report.

The World Bank. October 2004.

Appendix 10

230

Gender Action Plan. Per result of the Social Analysis, a Gender Action Plan (GAP) is presented in Table A10.1 designed to address three key issues: empowerment for participation and decision-making on natural resource management, improved access to services which will in the end redound to decreased time and effort for performing household reproductive activities.

Table A10.1: Gender Action Plan Output Gender Design Features/Activities

Output 1: River Basin and watershed management and investment plans established

At least 30% women’s representation during consultations and assessment for developing watershed management plans and river basin indicative development plans.

At least 30% women participated in the watershed management activities and land use planning.

At least 30% women in the water management committees to be established by the Project.

At least 30% of women trained and involved in PES mechanisms and at least 3 related NGOs can support and/or facilitate participation of women in the river basin management.

Component 2: Smallholder and institutional investments in conservation increased and URB productivity enhanced in the forestry, agriculture and rural sectors

At least 30% of women in the committees to be established and/or consolidated by the Project.

50% of beneficiaries of subsidized inputs (i.e., seedlings/fertilizers) will be women.

Where infrastructure construction involves the employment of local labor at least 35% of this local labor will be reserved for local rural women with priority for the poorer and more vulnerable women.

At least 40% of women are trained in commercial plantation, conservation farming, agro-forestry and sustainable forest management.

Components 3 & 4: River basin and watershed management capacity and related governance mechanisms strengthened and Project management and support services delivered

Gender Specialist included in production of training modules and establishing trainers’ pool.

Gender sensitive training material in local dialects to be prepared in close consultation with beneficiaries (avoiding gender stereotype materials)

NPCO and Project Director responsible for overseeing GAP implementation and reporting on gender related achievements in quarterly progress reports to ADB.

Implementing agencies to appoint project staff as gender focal point responsible for monitoring GAP implementation and report gender related achievements and constraints to NPCO.

TOR of all consultants will include responsibilities to ensure GAP implementation as related to their work.



A national social development/gender consultant to be recruited to (i) build capacity of project management units across levels, project staff and facilitators in gender responsive design and analysis; (ii) preparation of gender sensitive indicators; and (ii) preparation of checklists for evaluation of gender responsiveness of proposed subprojects.

Facilitate access to health, sanitation and credit facilities for women through cooperation with other agencies.

Sex-disaggregated indicators to be established for project performance M&E system; monitoring will be on-going to ensure activities are effectively carried out and targets reached; progress reports to include gender-related achievements and constraints.

Mid-term review Mission to assess gender related achievements and constraints

Appendix 9

231

DENR = Department of Environment and Natural Resources; GAP = gender action plan; LGU = local government unit; M&E= monitoring and evaluation; NCIP = National Commission on Indigenous Peoples; NPCO = National Project Coordination Office; NGO= nongovernment organization; PES = payment for environment services; TOR= terms of reference; URB = upper river basin.

to GAP implementation and propose adjustments for better project performance.

Appendix 11

232

APPENDIX 11. SUGGESTED REPORT FORMATS

Suggested Loan Status Report Format

Year 1, Suggested Format Budget Items Actual Expenditures First Quarter

Quarterly total

Actual Expenditures

Second Quarter

Quarterly total

Actual Expenditures

Third Quarter

Quarterly total

Actual Expenditures

Fourth Quarter

Quarterly Total

Yearly Total

Explanation for variances:

Appendix 11

233

Year 2, 3 and 4, Suggested Format Budget Items

Actual Expenditures

Variance (Positive or Negative)

First Semester

Semi-Annual Total Second Semester

Semi-Annual Total Grand Total Explanation for Variance

Appendix 12

234

APPENDIX 12. SUGGESTED FORMATS FOR PROGRESS, STATUS AND COMPLETION REPORTS

Suggested Formats for Progress, Status and Completion reports

Quarterly Progress Report Component Title: (e.g., Land Use Assessment and Planning) Year_______, Quarter ______

Specific Objective(s)

Activities Undertaken

Problem/s Encountered

Action/s Taken

Some Examples: Supportive policy and

regulatory framework in place

River basin “indicative

development plans” and watershed management plans adopted in four Project sites covering 1.13 million ha in total

88 Watershed

management and investment plans established

Risk Assessment

Suggested Risk Management Mitigation Actions

Integrative Narrative: Conclusions and Recommendations for Next Implementation Quarter:

Appendix 12

235

SUGGESTED FORMAT AND GUIDELINES FOR THE PREPARATION OF SEMI-ANNUAL OR ANNUAL REVIEW REPORTS

TABLE OF CONTENTS I. INTRODUCTION II. DESCRIPTIION OF CONTENT

A. Summary

B. Technical/project components

C. Financial

D. Management and Operation

E. Other Miscellaneous Matter III. OTHERS IV. CONCLUSION

Appendix 12

236

I. INTRODUCTION

1. Semi-annual Review Reports on the implementation of the Project should be prepared and submitted to the Executing Agency and ADB, with copies to Project Steering Committee, six months after inception workshop and six months thereafter during the first year of Project implementation. Annual review reports, however, shall be submitted on the succeeding years following fiscal year of Project implementation. Such review reports may take this format comprising the following parts:

A. Summary B. Technical/project components C. Financial D. Management and operation E. Other Miscellaneous Matters

II. DESCRIPTION OF CONTENTS 2. The following paragraphs illustrate and highlight the type of information the ADB would like to receive on a semi-annual basis on the implementation of the Project and the operation of the Project facilities. A. Summary 3. This part should contain a summarized version of the Project implementation status for immediate and ready reference. It should analyze original and revised schedules and actual achievements, shortfalls in terms of physical and financial targets and accomplishments, both during the reporting period and up to the next reporting period (preferably in terms of broad components of identifiable physical elements). It would also contain conclusions about the viability of the original (as indicated in the JFPR Paper) cost estimate and expected date of completion of the Project. B. Project components 4. The purpose of this part is to provide information on significant physical activities, which took place during the reporting period with an assessment of progress achieved and a projection of progress expected to be achieved in the next reporting period. This should contain information at least in the following aspects:

Physical works accomplished during the reporting period Comparison of the actual progress of activities as at the end of each reporting

period with that of the original forecast Changes in the original/revised plan and schedules or deviations therefrom (both

actual or expected), except that changes requiring ADB’s approval should be reported to ADB immediately and subsequently mentioned in the semi-annual report

Other changes, modifications, deviations or events which affected physical progress during the reporting period which are likely to affect project implementation in the nest reporting period

The expected dates of completion of major components (physical elements) of the

Appendix 12

237

Project 5. Progress in each Project components should be covered.

Measures taken or planned to correct factors responsible for delay during the reporting period or which are likely to affect physical progress in the future

Any delay or expected in the delivery of services and activities Any unusual occurrences affecting the progress of the Project components

C. Financial 6. The annual financing plan for the Project and achievements in financial terms during the reporting should be supported by appendix/table. The details should at least covet the following:

Amount allocated for the Project $____________ Amount approved by the EA in the annual budget $____________ Amount utilized to date $____________

7. A review of actual achievements during the reporting period and revisions of projected dated and amount in respect of contracts yet to be signed and activities yet to be done, with brief reasons for revisions should be made. D. Management and Operation 8. This part meant to be descriptive and should highlight, among others:

Actual or prospective changes in the organization of the Executing Agency and NPCO

Status of the project office Problems encountered, and measures taken A statement of the progress of such other activities, i.e. coordination with NGOs

E. OTHERS 9. Wherever applicable, and if possible, the semi-annual progress report, as designed should be supplemented by the following graphs: (i) scheduled and actual accomplishment of the Project on overall basis with reference to accomplishments in percentage of the Project duration by months; (ii) scheduled and actual expenditures in terms of total Project cost and the Project duration by months; (iii) status of disbursement (scheduled and actual) relating to the Project cost and the Project duration.

III. CONCLUSION 10. The format of the Project and guidelines enunciated above are for guidance only and should be adjusted keeping view of the implementation status.

Appendix 12

238

Project Completion Report (Suggested Format)

Project Component: ______________________________________________________ (Land Use Assessment and Planning)

Specific Objectives Specific Interventions Outputs and Results Integrative Narrative

Assessment A. Supportive policy and regulatory framework in place

(1) Amendments to RA 7160

(Local Government Code) (2) Adoption of local zoning

ordinances

B. River basin “indicative development plans” and watershed management plans adopted in four Project sites covering 1.13 million ha in total;

(1) Preparation of land use

maps and zones using GIS technologies

(2) Conduct stakeholders’

dialogues

C. 88 Watershed management and investment plans established

(1) Assessment of sub-Project

sites (2) Preparation of detailed

technical design of the selected sub-Project sites including management and investment plans

Appendix 13

239

APPENDIX 13. SAMPLE FORM OF AUDITOR’S OPINION

IMPREST ACCOUNT We have examined the Statement of Imprest Account of ADB (loan number and title), for the period _______________ up to ______________ pursuant to the Loan Agreement signed between the Government of the Philippines and The Asian Development Bank on _____________ 201__. Our examinations were made in accordance with generally accepted auditing standards emphasizing the adequacy and completeness of the supporting documents of the Imprest Account and other auditing procedures, as we considered necessary in the circumstances. In our opinion, the Statement of Imprest Account and supporting documents and information submitted with them can be fairly relied on to support the application for reimbursement/payment in accordance with the Bank’s requirements as set out in the Loan Agreement. _________________ _________________ Signature/s and Date Signature/s and Date

240

Appe

ndix 14 APPENDIX 14. MATRIX OF INREM COMMUNICATION PLAN

Phases &

Components Communication Plan

Objectives Intended

Stakeholder Communication strategies,

channels Targets Success Criteria

Implementing Unit

Component 1: River Basin/ Watershed Management and Investment Planning

Develop manuals, hand-outs on land use assessment & zoning

Provincial & municipal LGUs

Face-to-face communication (Workshops and meetings)

Workshops/ meetings documentation

Workshop documentation completed

DENR-RO

Document URB MP workshops & package results

Select community representatives

Mediated communication [Publications (e.g. manuals on land capability classification and zoning, and on developing URB MPs; packaged URB MPs, etc.)]

Publications & other IEC materials

# of publications and IEC disseminated

DENR-RO

Promote the URB MPs to generate support for implementation

Media, URB stakeholders

Press releases, Community newsletter, Community meetings

Popular articles, Presentations/ briefings

# of articles published, posted or printed, No. of meetings

LGUs and/or community reps

Component 2: Smallholder & institutional investments in conservation increased and URB productivity enhanced in the forestry, agricultural & rural sectors.

Enhance understanding and skills in effective protection and related activities

All stakeholders Appropriate technical extension materials and IEC

Extension materials and IEC developed

No. of materials disseminated

NPCO, Key NGAs Consultants

SUCs, Regional R&D consortia (OSIS & FITS centers), media

IEC on IPRA, FPIC, ADSDPP etc.

NCIP

Enhance community participation in watershed protection brigades

Community stakeholders

Tri-media info campaign Hand-outs Info campaign implemented

PPMO, MLGUs

Community briefings IEC disseminated DENR-CO & RO Briefings conducted PENRO,

CENRO Disseminate information on appropriate models for commercial forest-based investments

Farmers in target areas

IEC on best practices IEC developed # of materials disseminated

MLGUs PPMO, DENR

Media, SUCs, Regional R&D consortia (OSIS & FITS centers)

Field days Media conferences conducted

DENR RO, PENRO, CENRO

Promote investments in forest-based ventures with commercial potential

Potential investors Packaged investment portfolios

Investment briefs or investment packages developed

# of IEC disseminated MLGUs PPMO, DENR

# of initial offers DENR RO, PENRO,

241

Phases & Components

Communication Plan Objectives

Intended Stakeholder

Communication strategies, channels

Targets Success Criteria Implementing

Unit CENRO

Develop a Technical Extension Communication Plan

PPMO Workshop/ meeting Technical Extension Com Plan

Plan developed, and implemented

PPMO DENR RO, PENRO, CENRO, Relevant NGAs, URB stakeholders

Consultation DENR RO, PENRO, CENRO, Relevant NGAs

Equip implementers with information on guidelines for implementation

PPMO Publication Program brief and Publication disseminated

DENR RO Implementing guidelines

PENRO, CENRO, Relevant NGAs

Promote relevant technologies and best practices

Farmers in target areas, Media, SUCs, Regional R&D consortia (OSIS & FITS centers)

IEC on best practices IEC developed # of materials disseminated

MLGUs PPMO, DENR CO & RO, PENRO, CENRO

Inform stakeholders of recipient target areas on activities to be/being undertaken in the Component

URB stakeholders Info campaign Radio clips, posters developed, Community Briefings

Radio clips broadcasted, Posters developed, Briefings conducted

MLGUs

Components 3 & 4: River basin & watershed management capacity & related governance mechanisms strengthened and Project management & support services delivered

Develop an integrated NRM Communication Plan

All program stakeholders

Appropriate communication strategies and channels

Integrated INREM Communication Plan

Plan developed & implemented

All stakeholders

Develop appropriate IEC on component messages for target audiences (LARP, IPDP, GAP)

M&E at strategic points of plan implementation

Develop report & documentation formats/forms for program activities

All implementers Meetings Program report and documentation formats

Report & documentation formats developed & used

NPCO

Set and disseminate communication M&E and disclosure milestones for program activities

Communication M&E milestones

Milestones set, disseminated & adhere to

Enhance understanding and skills in effective protection and related

All stakeholders Appropriate technical extension materials and IEC

Extension materials and IEC developed

# of materials disseminated

NPCO, Key NGAs Consultants

242

Appe

ndix 14

Phases & Components

Communication Plan Objectives

Intended Stakeholder

Communication strategies, channels

Targets Success Criteria Implementing

Unit activities SUCs, Regional

R&D consortia (OSIS & FITS centers), media

IEC on IPRA, FPIC, ADSDPP etc.

NCIP

Inform major actors and stakeholders about the adjustments made to current policy and the impacts, if any, of these adjustments on current processes

Government (DENR) and technical organization counterparts, NGOs, media, LGUs

Conferences, meetings, 1 Info campaign # of specific audiences reached

DENR and other CO levels through the NPCO and multi-agency RTWG

tri-media, press releases, publications, web releases Partnerships with

other institutions (media/ LGUs) and/or individuals for info dissemination

Info dissemination partnerships forged

Publications and other IEC materials

# of Publications and IEC disseminated

Develop appropriate training modules and materials

All field target groups CNA/TNA, Training assistance Modules, Training materials # of modules/ training materials produced

NPCO, LGUs Trainers pool, NGAs

Document trainings and package training evaluation results

Trainers pool (& future users of training materials)

Training documentation Documentation # of trainings documented Trainers pool

Validate/revise modules/training materials

NPCO Modules LGUs

Training materials # of modules/training materials validated and revised

NPCO

Project Administration Manual -...

Documents

Transcript of Project Administration Manual -...