82541

                          INTEGRATEDSAFEGUARDSDATASHEET
                                  APPRAISAL STAGE
Report No.:
Date prepared/updated: November 6, 2013

I. Basic Information

1. Ba SIC    . tD a t a
       . P ro]ec
Country: Philippines                             Project ID: P146075
                                                 Additional Project ID (if any): P 133810
Project Name: Philippines Wealth Accounting and Valuation of Ecosystem Services
(P146075fP133810)
Task Team Leader: Stefanie Sieber
Estimated Appraisal Date: October 31, 2013       Estimated Board Date: NA
Managing Unit: EASPS (8296)                      Lending Instrument: Investment Project
                                                 Financing
Sector: Other Mining and Extractive Industries (25%), Agriculture, fishing and forestry sector
(25%), General public administration sector (25%), Water, sanitation and flood protection (25%)
Theme: Analysis of economic growth (20%), Economic statistics, modeling and forecasting
(20%), Climate change (10%), Environmental policies and institutions (40%), Land
administration and management (10%)


IBRD Amount (US$m.):
IDA Amount (US$m.):
GEF Amount (US$m.):
PCF Amount (US$m.):
Other financing amounts by source: (US $m) 1.5 with 0.65 (P146075) and 0.85 (Pl33810)
Environmental Category: Category B
Is this a transferred project                    Yes []                No [ x]
Simplified Processing                            Simple [x]            Repeater ]
Is this project processed under OP 8.00 (Rapid Response to Crises     Yes []       No [x]
and Emergencies)

2. Project Objectives:

The objective of the Philippine Wealth Accounting and Valuation of Ecosystems (Phil-WA YES)
technical assistance is to inform development planning and policy analysis on the sustainable use
of key natural resources by: (i) developing macroeconomic indicators that account for natural
capital values in order to measure the sustainability of economic development; (ii) developing
national accounts for prioritized natural resources - minerals and mangroves -based on the UN's
2012 System of Environmental-Economic Accounts (SEEA) and analyzing the impact of
different natural resource management and revenue sharing scenarios on income and economic
development; (iii) developing and constructing ecosystem accounts for Southern Palawan and
the Laguna Lake basin and analyzing the trade-offs associated with different resource and
ecosystem use scenarios; and (iv) building capacity for institutionalization of the prioritized
SEEA modules.

3. Project Description:
The Phil-WAYES TA will be financed out of the WA YES multi-donor trust fund, including both
recipient and bank-executed activities that will complement and mutually reinforce each other.

The activities financed under recipient-executed trust fund (RETF) (Pl46075, US$ 0.65 million)
will generate the data and indicators necessary to inform development planning and policy
analysis on the sustainable use of key natural resources and will support institutionalization of
the selected SEEA modules. In particular, this will be achieved by: (i) developing
macroeconomic indicators that account for natural capital values; (ii) developing national
accounts for prioritized natural resources- minerals and mangroves- based on the UN's 2012
System of Environmental-Economic Accounts (SEEA); and (iii) building capacity for
institutionalization of the prioritized SEEA modules.

This work will be complemented by the activities financed under the Bank-executed trust fund
(P 133810, US$ 0.85 million), which will focus on policy analysis at the national and local level.
This will be achieved by (i) analyzing the macroeconomic indicators to measure the
sustainability of economic development, (ii) analyzing the data and indicators generated by the
selected SEEA modules to study the impact of different natural resource management and
revenue sharing scenarios on income and economic development; and (iii) developing and
constructing ecosystem accounts for Southern Palawan and the Laguna Lake basin and analyzing
the trade-offs associated with different resource and ecosystem use scenarios.


4. Project Location and salient physical characteristics relevant to the safeguard analysis:
Two pilot areas have been selected for the ecosystem accounts. These are the Laguna Lake Basin
and Southern Palawan. Both sites are known to have Indigenous Peoples (IPs) and Ancestral
Domains in its upland areas.

5. Environmental and Social Safeguards Specialists on the Team:
Maya Gabriela Villaluz - Environment Safeguards
Victoria Florian Lazaro - Social Safeguards
  6. Sd          _. Policies T.           (please explain why)                  Yes   No
  Eavln.mmeatal Auessmeat (OP/BP 4.01)                                          X
  1be Philippine WAVBS project will support the generation of data and
  indicators necessary to inform development planning and policy analysis
  on the sustainable use of key natural resources. Particularly under dte
  RBTF, it will support dte capacity building efforts of the Government of
  the Philippines to institutionalize the use of selected SBBA modules in key
  government agencies which is synchronized widt the technical assistance
  activities of the BBTF. Policy analysis of the generated data will be
  conducted under the BBTF to inform policy and planning decisions and
  contribute to the achievements of the Environment and Natmal resources
  (BNR) sustaiDable development goals under the Medium term Philippine
  Development Plan (MTPDP). To ensUJ"e that environmental and social
  safeguards are considered under the policy analysis, each Tenns of
  reference (TOR) will require the consideration of environmental and social
  safeguard polieies. principles and requirements in the preparation of the
  studies, recommendations and policy advice to the Government. As the
  WAVES project is designed to estimate the environment and social values
  of the natural ecosystems in the pilot areas, it will highlight environment
  and social considerations that are essential in the decision making process
  of the government.
  Natural Habitats (OPIBP 4.04)                                                       X
  Forests (OPIBP 4.36)                                                                X
  Pest....           eat (OP 4.09)                                                    X
  Physieal Cultural Resourees {OPIBP 4.11)                                            X
  IDdlgeaou Peoples (OPIBP 4.10)                                                X
  The identified pilot areas for the ecosystem accounts ~ Southern Palawan
  and Laguna Lake Basin, which have documented presence of IPs and for
  which portions of the areas are claimed by IPs as their ancestral domain.
  Tagbanuas and the Pata'wans are the known indigenous communities in
  Southern Palawan situated in I municipalities: Aborlan, Narra, Quezon,
1
  Sofronio Bspaftola, Brooke's Point, Rizal, and Bataraza. In the Laguna
  Basin, the Dumagat-Remontados are known to be present in the upland
  areas ofTanay, Rodriguez, Antipolo, Taytay, Pililia. Morong, San Mateo.
  Cardona, Teresa, Jalajala and Binangonan, all in the province of R.izal.

 Discussion with the National Commission on Indigenous Peoples (NCIP)
 both at tho National and Regional level generated acceptance of the project
 and agreements to support its implementation in the pilot areas. It was
 agreed that free and prior and informed consent (FPIC) of affected IP
 communities will be sought in coordination with NCIP. While the
 implementing agencies- the Foreign Assisted and Special Projects Office
 of the Department of Environment and Natural Resources
 (DENR[FASPO]) and the Laguna Lake Development Authority (LLDA)-
 have experiences in complying with both local and World Bank safeguards
 polieies, conscious and deliberate efforts are needed to enSUJ"e that
 expectations of what the project will and can do and deliver are met, while
 maximizing benefits that the IP communities and other stakeholders may
 derive from it consistent with World Bank OP 4. J0 and with the
 Indigenous Peoples Rights Act of the Philippines.
II. Key Safeguard PoUey Issues and Their Managemeat
A. Summary ofKey StifegiiiUd Issues
l. Describe any safeguard issues and impacts associated with the proposed project IdentifY and
describe any potential large scale, significant a.n<Vor iireversible impacts:

No potential large scale, and/or irreversible impact are expected since the project is limited to
data gathering and analysis. The project, even in the two pilot sites, does not include any
mobilization of earth-moving equipment, land preparation, or civil works. However, the project
will be generating data and infonnation that will inform policy and planning decisions that will
contribute to the achievements of good environmental management and sustainable development
goals of the country. Hence, impacts are deemed to be positive.


2. Describe any potential indirect and/or long term impacts due to anticipated future activities in
the project area:

The safeguard policies and considerations consistent with World Bank safeguard policies will be
integrated into the TORs of various studies, including policy analyses and recommendations to
the government for its sustainable ENR strategies.


3. De~cribe any project alternatives (if relevant) considered to help avoid or minimize adverse
impacts:

The results of the studies will help inform the Philippine to identify and design investment
strategies that will help avoid or minimize adverse impacts.


4. Describe measures taken by the borrower to address safeguard policy issues. Provide an
assessment of borrower capacity to plan and implement the measures described:

Under the BETF, a series of consultations with a diverse group of national and local stakeholders
were conducted by DENR., with the assistance of Palawan Council for Sustainable Development
(PCSD) in Southern Palawan and LLDA in the Laguna Lake Basin. This is in line with fulfilling
the World Bank safeguards due diligence requirements to ensure that key stakeholders are
properly identified and adequately consulted before the ecosystem accounts are set up. The
mitigation measures to address potential environment and social issues have been prepared under
the project. These includes: (i) a Strategic Communications Strategy which is cleared by the
World Bank and accompanied by an Action Plan, (ii) a series of consultations with national
oversight government agencies, staff and line government agencies, the concerned local
government units, CSOs, NGOs, fore~gn and national academic and research institutions and
relevant development ~ and (iii) environment and social considerations as additional
requirements in the TORs for the various studies.

IPs are known to be present in the two pilot sites. To fae~litate project understanding, discussions
have been held with the NCIP both at the National and Regional level generating acceptance of
the project and agreements to support its implementation in the pilot areas. It was agreed that
FPIC of affected IP communities will be sought through a Memorandmn agreement that will
present the project as a joint project with NCIP.

No separate safeguards instrument is required for the project. The procedures for acquiring the
FPIC in the Philippine require the fonnulation of a Memonmdmn of Agreement (MOA} between
the affected IP communities and the project proponent facilitated by the NCIP. It details the roles
and responsibilities of both parties in project implementation by project stage including
monitoring and evaluation. It is premised on the principle of respecting the dignity and rights of
the IPs to their cullw'e and to participate in the project. It serves the purpose of the IPP which in
geneta.l have the same contents. In pursuit of the MOA the task team shall require the
implementing agency in the two pilot sites to include compliances to the MOA in their progress
reports. The same will also be subject of supervision visits and discussions by the task team
during its supervision missions. To enhance that cultural ways are not violated and other
safeguard policies and considerations consistent with World Bank safeguard policies are
integrated, the TORs of various studies will incorporate these concerns. Policy analyses,
recommendations and adviee to the Govenunent will also be made consistent with the World
Bank's safeguard policies.

The LLDA, partner agency for the Laguna Basin has been implementing a project funded by the
World Bank for many years now. They have generally demonstrated knowledge and skills in
complying with OP 4.10 and their IP Framework for the Laguna de Bay Institutional
Strengthening and Community Participation Project. DENR (FASPO) bas similarly
demonstrated general knowledge and capacities from past and present World Bank engagements
(e.g., Philippines Climate Change Adaptation Project, National Program Support for
Environment and Natural Resources Management Project [ENRMP]). Both agencies have
engaged IP communities through mechanisms that help ensure that the project process respects
the dignity, hliman rights, economies and cullw'e of the IPs. The ENRMP project is piloting a
model for Integrated Ecosystems Management Plan for Critical Watersheds in the country that
incorporated the interest of the IP communities living within the watersheds.

To facilitate compliance to the Indigenous Peoples' Rights Act that requires FPIC, the NCIP has
agreed to streamline the process by classifYing the project as being done jointly with them. It has
been clarified that the project will focus on the ecosystems and will not be able to account for
cultural values of the involved IPs.
5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on
safeguard policies, with an emphasis on potentially affected people:

The key stakeholders of the project include the lead agency for the overall Phil-WAVES TA
(P133810 and P146075), the National Economic and Development Authority (NEDA), the
implementing agency of the recipient-executed activities (Pl46075), the National Statistical
Board (NSCB), and the implementing agencies of the BETF (Pl33810), DENR, LLDA and
NEDA. Other government agencies involved who are expected to help provide information and
gain from a comprehensive valuation of the ecosystem services that feeds into the cowrtry's
macro-economics for long term planning are the Departments of Finance (DOF), Budget and
Management (DBM), Agriculture (DA). Office of the Presidential Adviser for Environmental
Protection (OPAEP), the Union of Local Authorities of the Philippines (ULAP), and the Climate
Change Commission (CCC).

The LLDA and the DENR together with the PCSD are the partner agencies for ecosystem
account respectively in the Laguna Lake basin and Southern Palawan. Other stakeholders in the
pilot sites are the DA, concerned local government units, IPs, academic and research institutions,
CSOs, NGOs, business enterprises, land developers, and private investors who are involved in
the sustainable management and protection of the pilot sites. Consultations with project affected
people - both IPs and non IPs - will be managed in support of these two agencies.

Traiiling activities and supporting studies for the 2012 SEEA implementation will be led by
NSCB with support from the Australian Bureau of Statistics (ABS) tbrough Australian Agency
for International Development (AusAID) financing. Training participants will include
representatives from the relevant government agencies as well as academe, NGOs~ partner
agencies and affected communities.

A Strategic Communications Plan has been fonnulated for the project to help ensure that timely
and accurate information are shared among aU involved parties and other stakeholders. For the
affected IPs, the project team will use the Revised Guidelines on FPIC and related processes
(NCIP Administrative Order No.3, Series of2012).

The MOAs, Certificates Precondition (issued by NCIP attesting to the grant of FPIC) and the
Consultation Plan shall all be disclosed in the respective websites ofDENR, LLDA and PCSD.
Hard copies will be provided in the libraries ofPWCD and LLDA for local disclosure.

B. Discloslll'e Requiremellls Date
EnviroDmeatal Aasessmeat/Audit/Maaagem.ent Plan/Other:
 Was the document disclosed prior tfJ qpFillsal?                                   NA
 Date of receint by the Bank
 Date of "in-country" disclosure
 Date of submission to InfoShop
 For category A projects, date of distributing the Executive
 s         of the EA to the Executive Directors
Resettlement Adioa Plaa/FrameworkJPoUey Process:
  Was the document disclosed priiJr to appraisal?                              NA
  Date of receipt by the Bank
  Date of "in-country" disclosure
  Date of submission to lnfoShop
Indigenous Peoples Plan/Pianain2 Framework:
  Was the document disclosed prior to appnisal?                                NA
  Date of receh>t by the Bank
  Date of "in-country" disclosure
  Date of submission to lnfoShoo
Pest Manaaement Plan:
  Was the document disclosed prior to flPPI'tlisal?                            NA
  Date of receipt by the Bank
  Date of "in-country" disclosure
  Date of submission to lnfoShop
* If the project triggers the Pest Management and/or Physical Cultural Resources poHcies,
the respective issues are to be addressed and disclosed as part of the Environmental
Assessment/Audit/or EMP.
If in-c:ouotry disdosure of aay of the above doeumeots is not expected. olease exolain why:



C. Complitmce Monitoring Indicators at tile Corpol'llle Level (to be fllled in when tile ISDS Is
fmallud by tile project decision meeting)

OPIBP 4.01 - EoviroDDient Assessment
Does the project require a stand-alone EA (including         Yes [ ]     No [X]         N/A []
EMP) report?
If yes, then did the Regional Environment Unit or SectOr
Mana~ (SM) review and approve the EA report?
Are the cost and the accountabilities for the EMP
incorporated in the credit/loan?
OPIBP 4.04 -Natural Habitats
Would the project result in any significant conversion or    Yes [ ]     No [X]         N/A []
.I.
       .. ·on of critical natural habitats?
If the project would result in significant conversion or
degradation of other (non-critical) natural habitats, does
the project include mitigation measures acceptable to the
Bank?
OP 4.09 - Pest Management
Does the EA adequately address the pest management           Yes [ ]     No []        N/A [X]
issues?
Is a separate PMP required?                                  Yes f 1     Nor 1        N/A [X]
If yes. has the PMP been reviewed and approved by a
safeguards specialist or Sector Manager? Are PMP
requirements included in project design? If yes, does the
project team include a Pest Management Specialist?
OP/BP 4.11 -Physical Cultural Resources
Does the EA include adequate measures related to            Yes [   1   No []    N/A [X]
cultural nroperty?
Does the credit/loan incorporate mechanisms to mitigate
the potential adverse impacts on physical cultural
resources?
OPIBP 4.10 -Indiaenous Peoples
Has a separate Indigenous Peoples Plan/Planning             Yes [ ]     No[X]     N/A[]
Framework (as appropriate) been prepared in
consultation with affected lndhzenous Peoples?
If yes, then did the Regional unit responsible for
safeguards or Sector Manager review the plan?
If the whole project is designed to benefit IP, has the
design been reviewed and approved by the Regional
Social Development Unit?
OP/BP 4.12 - Involuntary Resettlement
Has a resettlement plan/abbreviated plan/policy             Yes [ ]     No[]     N/A [X]
framework/process framework (as appropriate) been
prepared?
If yes, then did the Regional unit responsible for
safeguards or Sector Manager review and approve the
nlanloolicy framework/           framework?
OP/BP 4.36- Forests
Has the sector-wide analysis of policy and institutional    Yes [ ]     No []    N/A[X]
issues and constraints been carried out?
Does the project design include satisfactory measures to
overcome these constraints?
Does the project finance commercial harvesting, and if
so, does it include provisions for certification system?
OP/BP 4.37 .. Safety of Dams
Have dam safety plans been              ?                   Yes r l     Nor 1    NIA rx1
Have the TORs as well as composition for the
independent Panel of Experts (POE) been reviewed and
anproved by the Bank?
Has an Emergency Preparedness Plan (EPP) been
prepared and arrangements been made for public
awareness and training?
OPIBP 7.SO - Projects on International Waterways
Have the other rinArism~ been notified of the project?      Yes f 1     No [ 1   N/A (Xl
If the project falls under one of the exceptions to the
notification requirement, has this been cleared with the
Legal Department, and the· memo to the RVP prepared
and sent?
What are the reasons for the          ·on? Please explain:
Has the RVP approved such an exception?
OPIBP 7.60 - Projects in Disputed Areas
Has the memo conveying all pertinent infonnation on the      Yes [ ]   . No []       N/A [X]
international aspects of the project, including the
procedures to be followed, and the recommendations for
dealing with the issue, been           •
Does the PAD/MOP include the standard disclaimer
referred to in the OP?
The World Bank PoHcy on Dilelosun of laformation
f:Iave relevant safeguard policies documents been sent to    Yes []      No []       NIA [X]
the World Bank's Infoshop?
Have relevant documents been disclosed in--country in a
public place in a form and language that are
understandable and accessible to project-affected groups
and local NOOs?
AD Sat~--:.! Polides
Have satisfactory calendar, budget and clear institutional   Yes [X]      No []       N/A(     J
responsibilities been prepared for the implementation of
measures related to safeguard policies?
Have costs related to safeguard policy measures been         Yes. The cost of preparing the MOA,
included in the project cost?                                undertaking FPIC and conducting the
                                                             consultations has been included in
                                                             the budget.
Does the Monitoring and Evaluation system of the             Yes. The conduct and documentation
project include the monitoring of safeguard impacts and      of the consultations, FPIC and MOA
measures related to safeguard policies?                      will be monitored.
Have satisfactory implementation arrangements been           Yes.
agreed with the borrower and the same been adequately
reflected in the project legal documents?
D. Approvals

                                                                Date
                                   Stefanie Sieber           Oct. 28 2013
                                   Ma    Gabriela Villaluz   Oct.28 2013
                                   Victoria Florian Lazaro   Oct. 23 2013




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