45574 MINDANAO MINDANAO TRUST FUND TRUST FUND RECROENCSONSTRUCTION TRUCTION ANDAND ANDAND DEVDEVELOPMENT ELOPMENT PROPGRROAGRAMM ANNUAL REPORT AN2N0UAL REPORT 07 22000077 © 2008 The International Bank for Reconstruction and Development/The World Bank rd 23 Floor, The Taipan Place F. Ortigas Jr. Rd. Pasig City, Philippines 1605 Telephone 63 2 637-5855 Internet www.worldbank.org.ph All rights reserved Published in the Philippines The findings, interpretations, and conclusions expressed here are those of the authors and members of the MTF Secretariat and do not necessarily reflect the views of the Board of Executive Directors of the World Bank or the governments they represent. Photos courtesy of the MTF Secretariat Contact the MTF Secretariat for more information at mtfsecretariat@worldbank.org or telephone 632 917 3076 See eMindanao.org.ph for more information on the MTF 2 TABLE OF CONTENTS Acknowledgements 4 Foreword 5 Messages 6 Acronyms and Abbreviations 8 Executive Summary 9 Mindanao Setting 10 Mindanao Trust Fund: Reconstruction and Development Program 12 Developing Program Management and Implementation Capacity 13 Community-Driven Development for Sub-Project Implementation 14 Grant Facility for Peace and Development in Mindanao 16 MTF Partners 16 Financial Highlights 18 Lessons Learned 18 Looking Ahead to 2008 20 Chart Chart 1 Regional Poverty (2006) 10 Diagrams Diagram 1 Map of Conflict-Affected Areas in Mindanao 11 Diagram 2 MTF-RDP CDD Sub-Project Cycle 15 Annexes Annex 1 MTF-RDP Summary Table on Sites and Sub-projects 24 Annex 2 Grant Facility Awardees and Sub-projects 27 Annex 3 A Widow's Triumph and a Community's Pride 28 3 ACKNOWLEDGEMENTS This annual report was prepared by the Mindanao Trust Fund Secretariat led by Mary Judd, MTF Manager at the World Bank Office Manila, Philippines. Her team is composed of MTF Secretariat Coordinator, Josefina Esguerra, Monitoring and Evaluation Specialist, Simon Gregorio, Program Assistant, Menchie Celestial, and Consultants Ms. Maria Ines Bagadion and Mr. Roberto Tordecilla. Special thanks go to Ms. Jessmin Mariano for her assistance in preparing the tables and gathering the data from the various reports as well as to the staff of the Bangsamoro Development Agency headed by its Executive Director Dr. Danda Juanday and the MTF-RDP Program Manager Engr. Aida Silongan. Much of the information, stories, and pictures used in this report were drawn from progress reports, monitoring reports, project site monitoring visits and other documents prepared for the MTF-RDP. The pictures were taken by the MTF Secretariat. The Trust Fund Recipient, Community and Family Services International, provide important fiduciary and financial management services. The Implementation Service Provider, Associated Resources for Management and Development, provided valuable guidance and mentoring for the staff of the BDA that led to stronger organizational capacity and effective implementation of the different sub-projects in the community. Success on the ground owes much to the BDA Central and Regional Staff and the People's Organizations in the communities. Special thanks go to the contributing International Development Partners who believed in the effort on building peace and promoting development in Mindanao, and to the Office of the Presidential Adviser on the Peace Process that facilitated LGU participation and cooperation and assisted in coordinating security for the partners' visit with the Joint Coordinating Committee on the Cessation of Hostilities and the Local Monitoring Teams. 4 FOREWORD I have only recently joined the Country Office in Manila but I have already heard much about the Mindanao Trust Fund and the reconstruction and development program it funds. The MTF immediately struck me as an innovative way for Bank and our International Development Partners to engage with government and local partners in extending assistance to conflict-affected communities. This past year's performance is additional proof that the Program has the ability to operate relatively well in conditions that are quite challenging yet among the most deserving of attention and international support. I am impressed with how the Bangsamoro Development Agency has taken the desirable features of community-driven development to push its own strategy for reconstruction and rehabilitation. I hope that through the MTF-RDP, they allow the strategy to continually evolve so that it incorporates their values and aspirations and become an even more effective approach for peace building and equitable development in Mindanao. In the coming year, the International Development Partners and I look forward to expanding our partnership to jointly explore areas for knowledge building and sharing in post-conflict reconstruction, regional integration and sustainable rural development. In this manner the Program may be able to hasten the process of capacity development of local stakeholders for their future role in managing their social and economic growth during and after the peace process. Bert Hofman Country Director, World Bank Philippines Co-Chair, MTF Interim Steering Committee 5 MESSAGE FROM THE OFFICE OF THE PRESIDENTIAL ADVISER ON THE PEACE PROCESS (OPAPP) The implementation of the Mindanao Trust Fund-Reconstruction and Development Program (MTF-RDP) highlights both commitment and partnership between the Philippine Government and the Bangsamoro Development Agency (BDA), acting on behalf of the Moro Islamic Liberation Front (MILF), to pursue initiatives that usher in greater prospects for peace in Mindanao. I commend the active role of the BDA for the successful implementation of many activities set forth under the MTF-RDP. This progress encourages all of us to continue to perform and deliver towards building the capacities of the Bangsamoro people in Mindanao, in preparation for a more comprehensive development package once a peace agreement between the Philippine Government and the MILF is signed. I thank the positive response of Local Government Units (LGUs) in supporting the Program, especially in providing counterparts during project implementation, as well as in ensuring ownership and sustainability of initiatives in their respective areas. Laying the strong foundation for sustainable peace and development continues to be the main thrust of the Arroyo government for Mindanao, and we are pleased to note that the MTF-RDP moves well along this direction. This collaboration among donor partners and stakeholders has helped strengthen our effort towards furthering peace and development initiatives in Mindanao. On behalf of the Government of the Philippines, I wish to express our profound gratitude for the continuing commitment of the donor community, specifically the World Bank as the Fund Administrator of the Program, the Australian Agency for International Development (AusAID), the Canadian International Development Agency (CIDA), the New Zealand Agency for International Development (NZAID), the Embassy of Sweden, the European Commission, and the United States Agency for International Development (USAID). Their assistance has indeed contributed in pursuing the effort to secure peace not merely as a temporary option, but as a permanent achievement and an enduring foundation. Mabuhay! Jesus G. Dureza Presidential Adviser on the Peace Process Office of the President Co-Chair, MTF Interim Steering Committee 6 MESSAGE FROM THE BANGSAMORO DEVELOPMENT AGENCY (BDA) Greetings of Peace! As the MTF-RDP entered its second year of operation, we started to gain confidence with it and its modest ability to rebuild not only broken structures but also the social bridges and networks that reflect as well as fortify the Bangsamoro people's culture, values and aspirations. The year 2007 was the first real test of our ability to weather many internal and external factors that hindered the Program's expansion to other needy conflict-affected communities. Many of these factors, such as the impasse in the peace process and the local elections in May last year, were not within control of the BDA and we simply had to learn to be flexible and resourceful in dealing with the situation. Despite the volatile political conditions, the Program was able to make good progress in 2007 and it continues to get a good response from most communities and other local stakeholders in the peace process. I would like to acknowledge with sincere gratitude the support from the Presidential Adviser on the Peace Process Secretary Jesus Dureza who personally intervened to help the MTF Reconstruction and Development Program. Through him, we were granted the use of a small government building in Cotabato City where we are now holding office. His role in getting the support of mayors of conflict-affected communities was a key strategy that facilitated the work of our teams on the ground during the expansion of sites. Similarly, I am most sincerely grateful to the MILF Central Committee for giving us the green light to proceed with the MTF-RDP activities as planned. On behalf of the beneficiaries of the MTF-RDP, I would like to thank the international development partners for their continuing commitment to support Bangsamoro development efforts through the Mindanao Trust Fund. Indeed their increased contributions and obvious interest in the achievements of the Program are now an important part of our confidence building work in conflict-affected areas, in support of the ongoing peace process. Abas Candao, M.D. Chairperson, Board of Directors Bangsamoro Development Agency Co-Chair, MTF Interim Steering Committee 7 ACRONYMS AND ABBREVIATIONS ARMM Autonomous Region in Muslim Mindanao BDA Bangsamoro Development Agency CDD Community Driven Development EC European Commission FA Field Advisers FLT Functional Literacy Training GRP Government of the Republic of the Philippines IMT International Monitoring Team JCCCH Joint Coordinating Committee on the Cessation of Hostilities JNA Joint Needs Assessment LGU Local Government Unit MILF Moro Islamic Liberation Front MNLF Moro National Liberation Front MOA Memorandum of Agreement MDF Municipal Development Facilitators (BDA volunteers) MTF Mindanao Trust Fund MTF-RDP MTF for Reconstruction and Development Program MSC Multi-sectoral Committee (municipal level) MTT Municipal Technical Team OPAPP Office of the Presidential Adviser on the Peace Process OSY Out-of-School Youth PMO Project Management Office PO People's Organization PPA Program Partnership Agreement SIDA Swedish International Development Cooperation Agency TFR Trust Fund Recipient USAID Unites States Agency for International Development WB World Bank 8 EXECUTIVE SUMMARY In 2007, the ceasefire between the GRP and the MILF continues to hold despite the impasse over ancestral domain. This has boosted investor confidence in Mindanao but growth remains elusive for conflict affected regions in the Island, which languish among the poorest regions in the Philippines. The on-going ceasefire provided space for capacity building of the Bangsamoro Development Agency (BDA) to continue and intensify. Enhanced capacity allowed BDA to expand the geographical scope of the program from 6 to 47 barangays in 43 municipalities and to supervise the implementation of the functional literacy and livelihood activities in addition to community-based infrastructure. The expansion meant developing partnerships with more LGUs and greater collaboration with the Office of the Presidential Adviser on the Peace Process (OPAPP) that facilitated the LGU consultation with the MTF Secretariat. BDA is also learning to network with civil society organizations in conflict-affected areas through the Program's Grant Facility on Peace and Development that awarded small grants to qualified proposals. Donor members in the Mindanao Trust Fund increased with the addition of the European Commission and the United States Agency for International Development to the existing five partners--Australia, Canada, New Zealand, Sweden and the World Bank. Despite the impasse, donor support remains strong to the peace process and to the MTF-RDP. Lessons learned as well as challenges abound in the second year of the MTF. BDA has embraced the Community Driven Development approach as an effective approach towards Bangsamoro participation and empowerment, values training, and peace building. Through "learning by doing" and continuous practice, the BDA central and regional offices have grown in confidence in their ability to deal with and execute the program in various kinds of communities, LGUs, and even in volatile situations. It acknowledges that partnership with LGUs is essential in helping communities. As the program expands in more diverse communities, BDA is facing new learning challenges to adjust the CDD approach to account for local factors and new cultural groups. In 2008, the MTF-RDP will continue to build capacity of BDA to enable it to expand to more sites, broaden partnerships, and engage more stakeholders. At the same time, it will expand the range of its assistance to address the unique needs of internally displaced persons, intensify LGU participation into the peace building, reconstruction and development effort, and to begin addressing the issue of re-integration for combatants in a post peace agreement scenario. This is made possible by continued support of the partners, and new opportunities for partnerships in health, education, gender, infrastructure, and peace monitoring and evaluation work. 9 MINDANAO SETTING Investments in Mindanao increased in 2007 as compared to 2006. The increase in investments could partially be explained by the on-going ceasefire in the region and the small boost in investor confidence. Mindanao's Potential However, it was concentrated in a few of the growth centers of the northern and southern part of the region, specifically in the energy and Mindanao possesses enormous mining sectors. It had little effect on the conflict-affected municipalities in growth potential that can Mindanao, which for decades have suffered, either from armed conflict provide development through between the Government of the Republic of the Philippines (GRP) and employment and income if peace Moro separatist groups, local clan and/or family feuds, or neglect by is established and sustained in government. the area: Most of the conflict-affected municipalities, as listed by the GRP and the The island is home to 20 Moro Islamic Liberation Front (MILF) Peace Negotiating Panels (see next million people, representing page for map), are also located in the poorest regions in Mindanao as 25% of the country's indicated in the graph below. These regions are: the Autonomous Region population; in Muslim Mindanao (ARMM), Western Mindanao, and Central It accounts for nearly 20% Mindanao. The graph also shows that ARMM and Western Mindanao of the country's GDP, have the highest percentage of poor among their population, with about 35% of agriculture, and 70% and a little under 50% respectively. 25% of employment; Agriculture is a major source of livelihood as 38% Regional Poverty (2006) (1.5 million has.) of total farms (3.8 million has.) is located in Mindanao; ARMM Main crops are coconut Western Mindanao (more than 50% of the Bicol country's coconut are found Eastern Visayas in the island), corn (60% Central Mindanao of the country's corn is Central Visayas planted in Mindanao); rice Caraga % poor, 2006 Cagayan (20%), and the region also Northern Mindanao produces exports such as Western Visayas pineapple, banana and % share to total Southern Mindanao fishery products; and poverty, 2006 Southern Luzon Mindanao is rich in Ilocos various mineral resources CAR such as copper, gold, nickel Central Luzon and chromite. NCR 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 Note: Provinces were grouped consistently to their 2000 regional classification. Estimates use spatially consistent cost-of-basic-needs poverty lines (see Balisacan 2006). 10 Conflict-Affected Areas and Joint Needs Assessment Sites in Mindanao BALABAGAN PIKIT Shaded Areas - Conflict-Affected Areas (150 municipalities) JNA Sites: Zamboanga del Sur: Labangan North Cotabato: Matalam, Midsayap, M'lang, Pikit Zamboanga Sibugay: Ipil Maguindanao: Matanog, Shariff Aguak, Talayan, South Upi Lanao del Norte: Baloi, Kauswagan, Matungao Lanao del Sur: Balabagan, Butig, Kapatagan, Masiu, Madalum Sultan Kudarat: Palimbang SOURCE: Joint Needs Assessment, 2005 11 The GRP and the MILF have been negotiating to end hostilities and delineate territory for a Bangsamoro homeland for several years now. A major impasse over the issue of ancestral domain was overcome in October 2007 raising expectations that a peace agreement is forthcoming. The incidence of armed conflict has considerably diminished since the ceasefire declaration in mid-2003. Threats to the peace process, such as the military campaign that followed the July 2007 Basilan incident, were averted by the timely intercession of the GRP-MILF Joint Coordinating Committee on the Cessation of Hostilities (JCCCH), the International Monitoring Team (IMT), civil society organizations, and the international community. This situation has made it possible for donor and government-assisted rehabilitation and development programs to continue in most areas. MINDANAO TRUST FUND: The Mindanao Trust Fund is a mechanism for RECONSTRUCTION AND DEVELOPMENT development partners to pool resources, coordinate their PROGRAM support and provide funding for the Mindanao Trust The Mindanao Trust Fund (MTF) is a mechanism through which Fund for development partners can pool and coordinate official development Reconstruction and assistance to conflict-affected communities in Mindanao. Launched in Development Program March 2006, it is guided by the findings and recommendations of the (MTF-RDP) which aims to multi-donor Joint Needs Assessment (JNA) of 2005.1 The MTF finances assist economic and social the operations of the MTF Reconstruction and Development Program recovery in the conflict-affected (MTF-RDP) which features intensive Bangsamoro participation in the areas of Mindanao through planning, management and implementation of field activities. To prepare inclusive and effective the organizational set-up for inclusive and participatory program governance processes. management, the Program was designed to undertake capacity-building, net-working and start-up of activities in conflict-affected communities under Phase 1. Implementation of development projects in conflict- affected areas will be scaled up under Phase 2 after the signing of the peace agreement. Phase 1 of the MTF-RDP started in April 2006 and focused on building the capacity of the Bangsamoro Development Agency (BDA) that was designated by the GRP-MILF February 2004 Joint Statement to lead and manage rehabilitation and development efforts in conflict-affected areas in Mindanao. Phase 1 also provided capacity-building to local government units (LGU) and People's Organizations (PO) at the community level. 1 The JNA Reports of 2005 and the MTF Annual Report of 2006 have details on the armed conflict in Mindanao, expressed needs and priorities of conflict-affected communities, and the MTF. These are available online at eMindanao.org.ph. 12 DEVELOPING PROGRAM MANAGEMENT AND IMPLEMENTATION CAPACITY Community-building for 2007 centered around BDA's role in managing and providing assistance to more than one barangay in one municipality per each regional office. As stated in the previous annual report, capacity- building for 2006 was devoted to immersing BDA in the experiential learning of community-driven development (CDD) by assisting one barangay per region. Organizational development support for the BDA was reinforced through management consultancies and training. To assist BDA build its capacity Phase 1 Capacity- in program management, the MTF-RDP assigned professional help to the Building Activities organization. The consultants addressed organizational needs in human for BDA: resource management, financial control systems, corporate planning and budgeting and field operations monitoring and control. Outputs from the Training,refresher engagement in 2007 were the following: a draft strategic plan for BDA, courses and workshops work and financial plans, staffing plan, procurement and bidding all throughout the documents, monitoring reports, and staff performance review. The BDA Program. Program Manager and the Procurement Officer attended a two-week 2006: Experiential course on Project Management and Procurement at the Asian Institute of learning-by-doing of Management in Manila. community development in pilot sites (Batch 1) The BDA assumed greater responsibility for program implementation and 2007: Learningto proper financial management. Improved management capacity enabled network and work with The BDA Central Office to forge a Program Partnership Agreement partners (Batch 2) (PPA) with the Trust Fund Recipient (TFR) on an annual basis. The PPA 2008-2009: Learning laid down performance benchmarks and triggers for monthly to manage scaled-up downloading of operational funds. The PPA performance will be reconstruction and reviewed and assessed among BDA, TFR and the MTF Secretariat in early development program 2008 before a second PPA will be prepared. (Batch 3 onwards) The BDA Central Office, in turn, made implementation agreements with Studytoursand its six BDA Regional Offices for managing their respective programs and exchanges with other finances. Regular liquidation of expenses accompanied by proper receipts programs in Mindanao. and timely financial management reporting were adhered to at the expense of the following month's funding. The BDA Central Office with the help of consultants provided the appropriate training and refresher courses to the regional staff. Field Advisers were deployed full time to provide technical guidance to regional program staff. The Program contracted the services of the Associated Resources for Development and Management to deploy experienced Field Advisers (FA) in each BDA Regional Office. These FAs mentor and guide the regional staff in managing at the regional level and to meet the targets in the Program Partnership Agreement. 13 COMMUNITY-DRIVEN DEVELOPMENT FOR SUB-PROJECT IMPLEMENTATION CDD project implementation, in partnership with LGUs, expanded to 41 new barangays in 37 municipalities in the second half of 2007. The Program is now in 47 barangays in 43 municipalities. The BDA regional offices now have a range of 6 to 11 sites each as compared to one each in 2006. This is a challenge for BDA and, through many problem-solving sessions, it is meeting the challenge slowly but surely. The barangays are in various stages of implementation with many expecting completion in 2008. See Annex 1 for the list of new barangays and sub-projects. LGU Consultation and Partnership The Office of the Presidential Adviser on the Peace Process (OPAPP) and the MTF Secretariat facilitated the partnership between BDA and LGUs through regular LGU Consultation workshops. They were attended by the mayors and local officials of the municipalities. The LGUs formalized their support through a Memoranda of Agreement (MOA) with BDA. OPAPP, key representatives of the JCCCH and the IMT participated in the consultations. LGU Consultation at Davao in August 2007 The BDA regional staff, with the LGU-BDA MOA in hand, organized meetings and orientation for the LGU officials of the 2007 sites. BDA undertook the key activity of forming, or re-activating of existing groups, of the Municipal Technical Team (MTT) and the Municipal Multi-sectoral Committee (MSC) in each municipality. The MTT will provide technical support to the communities in designing and implementing their sub-projects and other related socio-economic 14 development endeavors. The MTT also provides a structure for coordination of implementation work and for facilitating solutions to problems that may arise in the course of sub-project implementation. The An MTF-RDP Beneficiary MSC will provide a mechanism for representatives of key sectors and civil Won First Prize in Sultan society organizations in the municipality to provide advice and insights Kudarat's Provincial Quiz Bee into the selection and ranking of sub-projects by the community. Contest in 2007 In each municipality, the BDA designated a volunteer as Municipal Development Facilitator (MDF) to help as liaison between the LGU and the community and to guide the POs in their implementation work. The MDFs were trained by the BDA regional teams to undertake CDD activities and work under their guidance and supervision. Community Activities Community members were organized into grassroots People's Organization (PO). Then BDA provided training to the POs to undertake sub-projects using the CDD approach. All POs had to undergo a values training where they learned about good universal values and the meaning of being a good organization and their responsibility to their communities and to God. Under the guidance of the MDFs, the POs managed the block grants downloaded directly to their bank account and implemented sub-projects on behalf of the communities they represent. MTF-RDP CDD Sub-Project Cycle Step 1 Step 2 Preconditions Info dissemination and institutional preparation Social Preparation at municipal level (Barangay) Step 3 Step 6 Sub-project Completion Project Planning and O&M Step 4 Step 5 Sub-project Implementation Sub-project Appraisal The communities, besides implementing small community-based infrastructure, also implemented functional literacy and livelihood skills program. Under this program, thus far, 282 participants have completed functional literacy in the five 2006 Batch 1 sites and 234 of these beneficiaries are engaged in income generating activities. A "graduate" of Backyard Garden for Functional the program from Barangay Palimbang, Malisbong, Sultan Kudarat Literacy Participants emerged as champion in a Provincial Quiz Bee contest sponsored by the Department of Education-Alternative Learning System. 15 It should be noted that the MTF-RDP activities are not the only development activities in conflict-affected areas in Mindanao. Many other programs funded by other donors and government are also being implemented in these areas though not necessarily in the same locations. For example, the World Bank-funded ARMM Social Fund Project has provided assistance to and implemented over 1,200 sub-projects in more than 600 barangays in 110 municipalities in ARMM. This assistance, which covers mostly communities under the Moro National Liberation Front (MNLF), will continue until June 2009. Sub-project information for this project can be found online in eMindanao.org.ph. When the ARMM Social Fund Project ends in 2009, MTF-RDP will be able to assist the remaining unserved conflict-affected barangays in ARMM. European Commission signs GRANT FACILITY FOR PEACE AND Administrative Agreement for Contribution to the MTF Program DEVELOPMENT IN MINDANAO (June 2007) The MTF-RDP opened a Grant Facility in 2007 to help expand the network of BDA partners for peace and development in conflict-affected communities in Mindanao. The BDA awarded grants between Php300,000 to Php500,000 to qualified non-government organizations. Fourteen proposals were approved for funding in 2007 amounting to about Php7 million. The awards were given to outstanding proposals in the areas of knowledge management, gender in peace building, Muslims and indigenous youth vocational training, and educational facilities improvement. The BDA participated in the proposal review panel, and through its regional offices, is currently monitoring activities of the awardees. See Annex 2 for the list of awardees. US signs Administrative Agreement for Contribution to the MTF Program (November 2007) MTF PARTNERS Donor members in the Mindanao Trust Fund increased. International development partners continued to support the Mindanao Trust Fund despite the impasse. In 2007, the MTF welcomed two new development partners: the European Commission and the United States Agency for International Development. This brought to seven the total number of MTF contributors, which previously included Canada, Sweden, Australia, New Zealand, and the World Bank. The Interim Steering Committee composed of government, principal stakeholder representatives and the contributing donor representatives provided overall strategic guidance. MTF donors took an active part in Donor Partners Visit to Project Site in overseeing the progress of the Program's activities and mapping future Lanao del Norte strategic directions through the MTF-RDP Interim Steering Committee. (January 2007) 16 Two meetings were held in 2007, which were co-chaired by Secretary Jesus Dureza, Presidential Adviser on the Peace Process, Dr. Abas Candao, Board Chairman of the BDA, and Mr. Joachim von Amsberg, the World Bank Country Director for the Philippines who has since left for another assignment. The MTF Secretariat and the BDA jointly facilitated the conduct of project site visits for international development partners. On January 26, representatives of SIDA, USAID, OPAPP, and the WB visited the Community Hall and Livelihood Training Center in Barangay Pacalundo, Municipality of Balo-i, Lanao del Norte. More partners had wanted to go on the site visit but a last minute security announcement from their respective embassies prevented them from traveling to Mindanao much to their disappointment. SIDA and WB Representatives with Mayor of Palimbang and Other Officials On October 20-21, 2007 visits were made with a representative from (October 2007) SIDA Stockholm to Barangay Malisbong, Palimbang, Sultan Kudarat for interaction with the community to discuss the impact of the program and to a BDA workshop for regional staff in Cotabato. The European Commission arranged cross-visits for BDA staff to other EC-funded rural development projects in Central Mindanao. It was also an opportunity for EC to observe the impact of the BDA CDD approach and its values enhancement activities in Muslim communities. Coordination with the wider development community of international partners, government and local groups on Mindanao is achieved through the Mindanao Working Group and its series of technical meetings throughout the year. The MTF Secretariat participates actively in these Cross Visit for BDA to EC STARCM Site meetings. Key issues from the Mindanao Working Group meetings are (September 2007) brought to the attention of key policy makers at the national government through the annual Philippine Development Forum--which is the most important donor-government meeting for ODA matters. The MTF Secretariat facilitated and participated in various government- donor coordination meetings and workshops, such as the PMO Convergence for Peace and Development. The PMO Convergence is a group of project managers that are engaged in reconstruction, rehabilitation and social development activities in conflict-affected areas of Mindanao. Established with support from Mindanao Economic Development Council, the Canadian International Development Agency Knowledgement Management Meeting and the Australian Agency for International Development, it aims to among ODA PMOs of Mindanao develop a community of practice and distill lessons learned from working (January 2007) in conflict-affected communities. The MTF-RDP's work with a mainly Muslim population in Mindanao has been sited as a possible model for reducing the conflict going on in 17 Southern Thailand between the Muslim minority and the government's armed forces. When approached by the Thai organizers of a peace conference in Southern Thailand, the World Bank recommended BDA's Executive Director as a resource speaker at the conference. BDA shared information on its work in Mindanao and participated actively in discussions with civil society organizations. FINANCIAL HIGHLIGHTS Total donor contributions deposited in the MTF Program account as of December 31, 2007 amounted to about USD 6 million coming from Australia, Canada, the European Commission, New Zealand, Sweden, and the World Bank. Funds from USAID and the second contribution from EC will be included in next year's MTF account. Funds disbursed for block grants for communities and the grant facility amounted to Php22 million by end of 2007. Funds committed for the remaining new sites of 2007 amount to about Php15 million. The first Program Partnership Agreement for BDA's annual operational funds for 2007 was over Php10 million. This supported BDA Central and the six Regional Offices. To date, total funds used for training and workshops, consultants, management costs, monitoring and evaluation, goods and equipment, operational expenses of municipal development facilitators WB EAP Sector Director for and other municipal costs were about Php55 million. Funds for program Sustainable Development visits BDA administration were about Php8.5 million. The exchange rate for the year in Cotabato City ranged from about Php49 to 40 to USD1. (November 2007) OPAPP helped BDA obtain free office space in a government building in Cotabato. The MTF-RDP provided funds for payment of utilities, communication, furniture, equipment and supplies. It is expected that the estimated budget for the 2008 work plan will be considerably higher. The second PPA will be larger than the first one as operational costs for BDA will increase due to the larger number of proposed activities and communities covered. Work will also begin with internally displaced persons in an urban setting. Pilot activities at the LGU level are also being considered. LESSONS LEARNED BDA and the Program are learning lessons continuously. Some of these lessons are as follows: 18 1. Capacity-building using the "learning-by-doing" approach is effective and stays with the learner longer. Also "practice makes perfect" as the saying goes. BDA felt that they had learned a tremendous amount since they first came into contact with the MTF-RDP. They expressed more confidence in being able to help communities with rehabilitation and development activities. 2. BDA acknowledged that partnering with LGU was important if it wanted to help communities. Many LGUs provided access and counterpart for the work. It also allowed LGUs to be aware of BDA and the vision and mission of its organization. 3. Whence before, BDA was met with suspicion and even animosity by MACDO--the PO in LGUs, the reception in the new sites for 2007 was generally positive Barangay Malisbong, and enthusiastic. BDA learned how to engage with LGUs and other Palimbang Municipality, local leaders, including local ceasefire committees. This allowed the Sultan Kudarat Province-- teams to implement and monitor field activities even in difficult partnered with the circumstances. However, obtaining the formal commitment from Southeast Asian Research certain LGUs continued to be a major challenge, which BDA tried to Center for Agriculture overcome with the cooperation of OPAPP. Lobbying with the local (SEARCA) to sustain the legislators through the Sangguniang Bayan was also a new skill learned vegetable production activity by the BDA regional staff. The challenge is sustaining LGU interest of the Learning and Livelihood program and support and expanding partnership after sub-project completion. beneficiaries. SEARCA funded the trip of 4. After the first project cycle, the POs continue to need organizational MACDO members to development assistance to keep members actively participating. Malaybalay, Bukidnon for Sustainability of the PO is equally as important as the sustainability of training in farming completed sub-projects. In conflict-affected areas where out- techniques. migration was common, POs lost a few of their members. Election into positions of authority in the barangay government thinned the roster of PO leaders further. Continuous planning and assessments were undertaken with these POs as they prepared for the next cycle of sub-projects under the Program. The more successful POs aggressively networked with larger organizations to source funds, expertise, and projects. BDA staff learned that leadership succession and membership recruitment and turnover must be built in at the early stages of community organizing and PO formation. 5. Community-Driven Development as a peace-building strategy is gaining acceptance from both the Bangsamoro people and the government. Activities have focused on local communities and the process of site selection allowed ample room for planning inputs from MILF and other local leaders. The capacity-building thrust of its Phase I is seen by analysts as contributing positively to the mutual trust and respect between government and MILF negotiators. The 19 program has been cited as a key initiative under the rehabilitation and development aspect of the GRP-MILF peace discussions. 6. More challenges face the BDA as it gets increasingly involved with non-Muslim communities and stakeholders. As the number of sites for implementation increases, so does the frequency of interacting with communities where Muslims, Christian settlers, and indigenous peoples live together. The diversity is providing learning challenges for BDA as this means getting outside of its comfort zone. The implementing guidelines of the Program are flexible enough to allow the implementing teams to modify their approaches to account for local factors coming out of their social assessments. Several of BDA regional teams took the initiative of modifying their strategies to fit "There is a high degree of the new cultural groups and showed good results for their efforts but mutual trust and respect other teams needed closer guidance and took more time to adjust. between and among the government and MILF negotiators. The ongoing LOOKING AHEAD TO 2008 capacity building planning for development assistance to conflict-affected areas is Prospects for a peace agreement improved in the last quarter of 2007 helping build trust. More when a breakthrough was reached on the ancestral domain issue and an importantly there is strong informal agreement on the scope of the proposed Bangsamoro homeland. and unprecedented support At the end of the year, however, there was a temporary set-back to the and participation of civil talks, as disagreements arose about the use of constitutional process to society organizations in the determine inclusion into the Bangsamoro homeland. Efforts have been peace process." made by both GRP and MILF since December to go back to the exploratory talks and continue with the peace discussions. Atty. B. Bacani Institute of Autonomy and Even as the situation remains uncertain, ceasefire mechanisms on the Governance ground are working effectively to avert any escalation of violence. Cotabato City Operating conditions are stable enough to allow expansion to new areas. The Program is poised for expansion into more sites in 2008. The existing Program Partnership Agreement with the BDA have put in place existing mechanisms to monitor deliverables and financial disbursements in the second batch of sites begun in 2007 and move to a third batch the following year. 2008 will be a mix of continuity and innovation for MTF- RDP: The fragility of the peace process has intensified the urgency for an information and education campaign to build constituencies for peace among the different sectors in Mindanao and among the decision makers in the national capital. Capacity building of BDA will continue to strengthen skills to manage and implement a scaled up program. Attention to 20 strengthen BDA's Board of Directors will also be given. With the help of the OPAPP, BDA will broaden partnerships and capacity building work with LGUs. This will be accomplished through the scaling up of existing initiatives and the development of assistance to LGU. The need exists to widen and deepen the range of assistance to cover the needs of internally displaced persons. The focus on Mindanao by other donors has opened opportunities for partnerships in health, education, gender, conflict resolution, infrastructure and peace monitoring and evaluation work. Knowledge sharing remains a priority to provide analytic support to these efforts, facilitate collaboration in the sector and facilitate the development of a community of practice among peace and development workers in Mindanao. Representatives at a MTF Interim Steering Committee Meeting in 2007 21 22 ANNEXES 23 ANNEX 1 Mindanao Trust Fund-Reconstruction and Development Program Summary Matrix on Sites and Sub-projects As of December 31, 2007 Province Municipality Barangay Batch (B) Sub-Project People's Organization Cycle (C) Central Mindanao Shariff Matanog Sapad B1 13 Units Copra Dryer Sapad Association for Kabunsuan C1 Peace & Development C2 LLFS (R/D 07.04.06) C3 Water System (Spring Development 2) with Communal Toilet/Bath Cotabato Kabacan Magatos B2A 1 Unit Solar Dryer on Magatos Organization for C1 Grade cum Warehouse Peace & Development (R/D 11.28.07) Tulunan Dungos B2A Community & Livelihood C1 Center Carmen Manarapan B2B Maguindanao Salipada K. Badak (Pob) B2A Community & Livelihood Badak Association for Pendatun C1 Center Development & Kalilintad (R/D 12.09.07) Pagalungan Buliok B2A Community & Livelihood United Home Owners C1 Center Association (R/D 11.18.06) Mangudadatu Daladagan B2A Community & Livelihood C1 Center Datu Saudi Madia B2B Under discussion Shariff Datu Odin Labungan B2A Under discussion Kabunsuan Sinsuat C1 Sultan Kudarat Pigcalgan B2B Under discussion Sultan Kudarat Isulan Kamanga, B2B Under discussion Laguilayan Davao Davao Oriental Tarragona Lucatan B1 Community Hall & Lucatan United C1 Livelihood Training Center Bangsamoro Peoples C2 LLFS Organization C3 Reinforced Concrete Box (R/D 07.29.06) Culvert Compostela Pantukan Tambongon B2A 135 M Concrete Tire Path Tambongon United Valley C1 with Drainage Muslims, Christians Association (R/D 10.08.07) Maco Pangi B2B Under discussion 24 Province Municipality Barangay Batch (B) Sub-Project People's Organization Cycle (C) Davao del Sur Sta. Cruz Inawayan B2A Water System Inawayan United Muslims, C1 Development ­ Level 2 Christians Organization (R/D 10.08.07) Malita Fishing Village B2B Under discussion Davao del Tagum Liboganon B2B Under discussion Norte Asuncion Kanatan B2B Under discussion Ranao Lanao del Balo-i Pacalundo B1 Community Hall & Momungan Organization Norte C1 Livelihood Training Center for Development & C2 LLFS Equality Living C3 Tire Path (R/D 08.07.06) Poona Piagapo Nunang/ B2A Community & Livelihood Kalilintad for Peace & Lupitan C1 Center Development (R/D ­ in process) Lanao del Sur Butig Poctan B2A Community & Livelihood Poctan Organization for C1 Center Strong Commitment, Transparency & Accountability (R/D 12.09.07) Sandab (Dama) B2B Under discussion Masiu Sawer B2A Community & Livelihood Sawer Association for the C1 Center Welfare & Empowerment of the People & Social Reform (R/D 12.09.07) Calanugas Panggawalupa B2B Under discussion Balindong Nusa B2B Under discussion Ganasi Macabao B2B Under discussion Southern Mindanao Sultan Kudarat Palimbang Malisbong B1 2 units Warehouse and Malisbong Community C1 Solar Dryer Development C2 LLFS Organization C3 Community Toilet with (R/D 08.17.06) Level 1 Water System Kraan B2B Under discussion Sarangani Maasim Pananag B2A Community & Livelihood United Peace Builder C1 Center Association (R/D 11.06.07) Malapatan Sapu Masla B2A Level 2 Water System- Sapu Masla Association for C1 Spring Development Peace & Unity Scheme (R/D 10.22.07) Kiamba Lagundi B2B Under discussion Glan Taluya B2B Under discussion South Cotabato Polomolok Koronadal B2A Community & Livelihood Proper C1 Center Tupi Bonao B2B Under discussion 25 Province Municipality Barangay Batch (B) Sub-Project People's Organization Cycle (C) ZamBaSulTa Basilan Tipo-Tipo Baguindan B1 Livelihood Training Center Kalukabanan, C1 Kasambuhan Organization C2 LLFS (R/D 07.27.06) C3 Under discussion Sumisip Pamatsaken B2A 500 LM Concrete Tire Pagtabangan si C1 Path Kasabennalan Organization (R/D 12.05.07) Baiwas B2B Under discussion Muhamad Ajul Tuboran B2B Under discussion Proper Maluso Upper B2A 501 LM Concrete Tire Al-Nusra Organization Garlayan C1 Path & 200 LM (R/D 12.05.07) Regravelling Albarka Guinanta B2B Under discussion ZamboPen Zamboanga del Dinas Sungayan B1 Concrete Tire Path Association of Sungayan Sur C1 for Empowerment & C2 LLFS Development C3 Under discussion (R/D 08.09.06) Dimataling Bakayawan B2B Under discussion Zamboanga Naga Mamagon B2A Community & Livelihood Mamagon Bangsamoro Sibugay C1 Center Community Development Organization (R/D 09.21.07) Kaliantana B2B Under discussion Kabasalan Canacan B2A Community & Livelihood Canacan Community C1 Center Peace & Development Organization (R/D 10.02.07) Titay Pob. Muslim B2B Under discussion Zamboanga del Sirawai Sipakit B2A Warehouse with Solar Sipakit Association for Norte C1 Drier Empowerment & Development (R/D 11.08.07) Batch 1 = 6 barangays Batch 2A = 19 barangays Batch 2B = 22 barangays Total = 47 barangays (43 municipalities) Cycles: Each barangay will have two to three cycles of sub-projects depending on the availability of funds and the performance of the barangays Abbrev: R/D Registration Date 26 ANNEX 2 Grant Facility Awardees and Sub-projects Name of Recipient Organization Title of Project Grant Amount Round 1 1. Alliance of Bangsamoro Peace and Harnessing the Youths for Rural PhpP 500,000 Sustainable Development Entrepreneurship in Conflict Affected Areas 2. Community Resource Centre Inc. Dawat Central Elementary School Facility PhP 500,000 Rehabilitation Project 3. Lanao Aquatic and Marine Fisheries Up Scaling Peace Building and Gender PhP 484,000 Centre for Community Development, Mainstreaming In the Selected Communities Inc. in Sultan Naga Dimaporo, Lanao del Norte 4. Mindanao Land Acquisition, Housing The 2nd PO Festival of Best Practices PhP 499,200 and Development Foundation, Inc. 5. Nagdilaab Foundation, Inc. Improving of Garments and Welding PhP 500,000 Training Facilities for the Self Employment of the Out of School Youth 6. United Youth for Peace and PEACE: Peace, Education, Advocacy, and PhP 500,000 Development, Inc. Community Empowerment 7. Winrock International-Alliance for Makat Community Managed Level 2 Portable PhP 500,000 Mindanao Off-Grid Renewable Water System Project Energy Program Phase 2 8. Mindanawan Community Training on Food Production and Food PhP 283,800 Organization and Development, Inc. Processing Using Halal Concepts and Principles 9. Linguasun Youth Association for Preservation and Promotion of Moro Song PhP 426,000 Sustainable Development 10. Isulanen Peace and Development Peace Advocacy, Public Information and PhP 500,000 Centre, Inc. Dissemination in the Province of Sultan Kudarat Round 2 11. Central Mindanao Integrated Creation of a Corporate Community in South PhP 500,000 Livelihood Assistance and Resource Katuntalan, Shariff as a Mechanism for Peace Development Foundation, Inc. and Development (A Participative Action Research for Development) 12. Kapagawida Development Services Renovation of School Building (One Storey PhP 408,555 Association, Inc. with Two Classrooms) 13. Institute of Bangsamoro Studies Publication of the Proceedings of the 2nd PhP 498, 000 International Bangsamoro Development Conference 14. Ittihadun-Nisa Foundation, Inc. Skills Training Project for Orphans in Shariff PhP 499,410 Kabunsuan and Cotabato City 15. Federation of United Mindanawan Skills Training Enterprise Development PhP 500,000 Bangsamoro Women Multi-purpose Project for Out of School Youth Cooperative 27 ANNEX 3 A WIDOW'S TRIUMPH AND A COMMUNITY'S PRIDE Ms. D., a widow, is one of 50 persons selected by the community to participate in the MTF-RDP's Learning, Livelihood, and Food Sufficiency sub-project (LLFS) in Barangay Malisbong, Municipality of Palimbang, Sultan Kudarat. The LLFS aims to provide the poorest and vulnerable groups in MTF-RDP sites with the opportunity to improve their social and economic well-being. It has a strong gender focus as its beneficiaries are mostly women and male out of school youths (OSY). LLFS emphasizes the literacy component as an instrument for enabling the women and OSYs to engage and manage their livelihood projects. As a Functional Literacy Training (FLT) participant, Ms. D. attended three months of classes in reading, writing, and numeracy conducted by an instructional manager assigned by the Department of Education. She was among the 48 graduates who received their certificate of completion at a ceremony in Malisbong in August 2007. Like many of her fellow graduates, participation in the FLT enabled Ms. D. to read and recognize numbers, improved her conversational skills and increased her confidence. The skills and new found confidence were put to the test when she and a delegation of FLT completers from Palimbang participated in the Provincial Quiz Bee Contest for Alternative Learning in Isulan, Sultan Kudarat last September 4 to 6, 2007. The contest sponsor, DepEd's Alternative Learning System Division, provided the transportation while the Palimbang women brought food. The BDA Southern Mindanao regional office and the Field Adviser contributed some money for snacks. In Isulan, their participation was almost cut short when their rice provision ran out on the second day of the contest. Compounding the problem was the loss of their snack money. Still the women bravely soldiered on entertaining the participants with their performance of the kulintang, a Maguindanao musical instrument. Help came in the form of half a sack of rice donated by the DepEd's Alternative Learning System Division Supervisor. In the end, the women's tenacity triumphed over adversity. Ms. D. emerged as champion and first prize winner of the Provincial Quiz Bee Contest. She is now using her skills in income-generating activities to support her family. Note: Ms. D.'s photo is on page 15. 28