33701 NATURAL RESOURCES GOVERNANCE: WAY FORWARD ACTION PLAN Part II of II June 2005 THE WORLD BANK Rural Development and Natural Resources Sector Unit East Asia and Pacific Region Part I: Governance of Natural Resources in the Philippines i Acknowledgements This report is prepared under the overall supervision of Ms. Idah Pswarayi-Riddihough and Mr. Gilbert Braganza (EASRD). Several personnel of the Department of Environment and Natural Resources (DENR) worked closely with the Bank Team in the study's preparation, namely, Messieurs and Mesdames Renato de Rueda, Linda Papa, Eriberto Argete, Adeluisa Siapno, Domingo Bacalla, Sofia Quintana, Honorato Palis, Noel Padilla, Anselmo Abingan, Meriden Maranan. Contributing to the report were Messieurs Victor Ramos, Flor Tessoro and Ernie Wiljango. The study represents a follow-on to the recently completed Governance of Natural Resources in the Philippines study. This study would not have been possible without the funding support provided by the Global Environment Facility (GEF) of the East Asia Pacific Unit. ii Table of Contents Page Acronyms and Abbreviations Executive Summary Chapter 1. Building on the NRM Governance Study Chapter 2. Basis for Moving Forward Chapter 3. Prioritization in Addressing Core NRM Issues Annexes Annex 1. Implementing the National Integrated Protected Area System (NIPAS) Law: A Glance at the Implementation and Governance Annex 2. Actions to be Taken Per Sub-sector, Prioritized by Time Horizon Annex 3. List of References Figures Figure 1. Presidential Decree 705 and Related Laws and Executive Orders on Forestland Management Figure 2. Coverage of Various Management Instruments and Regimes 3 Acronyms and Abbreviations AO Administrative Order BFAR Bureau of Fisheries and Aquatic Resources CADC Certificate of Ancestral Domain Claim CADT Certificate of Ancestral Domain Title CALC Certificate of Ancestral Land Claim CARP Comprehensive Agrarian Reform Program CBD Convention on Biodiversity CBFM Community-Based Forest Management CBFMA Community-Based Forest Management Agreement CBRMP Community-Based Resource Management Project CENRO Community Environment and Natural Resource Office CFMA Community Forest Management Agreement CFP Community Forestry Program CITES Convention on the International Trade in Endangered Species CLUP Comprehensive Land Use Plan CMMO Coastal and Marine Management Office CO Certificate of Origin CPAs Conservation Priority Areas CPPAP Conservation of Priority Protected Areas Project CRM Coastal Resources Management CRMP Community Resource Management Program CZM Coastal Zone Management CZMA Coastal Zone Management Act DA Department of Agriculture DANIDA Danish International Development Agency DAO Department Administrative Order DAR Department of Agrarian Reform DBM Department of Budget and Management DENR Department of Environment and Natural Resources DepEd Department of Education DILG Department of Interior and Local Government DoF Department of Finance DOH Department of Health DOJ Department of Justice DOST Department of Science and Technology DOT Department of Tourism DPWH Department of Public Works and Highways DSWD Department of Social Welfare and Development DTI Department of Trade and Industry ECC Environment Compliance Certificate EE Environmental Examination EIO Environmental Impact Office EIS Environmental Impact Statement EMB Environmental Management Board ENRM Environment and Natural Resources Management EO Executive Order FAO Food and Agriculture Organization FARMC Fisheries and Aquatic Resources Management Council FLGMA Forest Land Grazing Management Agreement FMB Forest Management Bureau 4 FTAA Financial and Technical Assistance Agreements GEF Global Environment Facility GMO Genetically Modified Organism GOP Government of the Philippines GUs Government Units IEC Information, Education and Communication IFMA Industrial Forest Management Agreement IP Indigenous People IPAF Integrated Protected Area Fund IPAS Integrated Protected Area System IPRA Indigenous Peoples' Rights Act IRA Internal Revenue Allotment IRR Implementing Rules and Regulations ISF Integrated Social Forestry IWM Integrated Watershed Management LEDAC Legislative Executive Development Advisory Council LGC Local Government Code LGUs Local Government Units LISCOP Laguna de Bay Institutional Strengthening and Community Participation LLDA Laguna Lake Development Authority M & E Monitoring and Evaluation MFO Major Final Output MOA Memorandum of Agreement MOOE Maintenance and Other Operating Expense MPSA Mineral Production-Sharing Agreement MTPDP Medium-Term Philippine Development Plan NAMRIA National Mapping and Resource Information Authority NAPC National Anti-Poverty Commission NBSAP National Biodiversity Strategy and Action Plan NCIP National Commission on Indigenous Peoples NEMA/PEPA National Environmental Management Authority/ Philippine Environmental Protection Agency NGA National Government Agency NGOs Non-Governmental Organizations NIA National Irrigation Administration NICMMS National Integrated Coastal and Marine Management Strategy NIPAS National Integrated Protected Area System NPC National Power Corporation NPPSC National Programs and Projects Steering Committee NRM Natural Resources Management NWRB National Water Resources Board O & M Operations and Maintenance PA Protected Area PAMB Protected Area Management Board PASU Protected Areas Superintendent PAWB Protected Areas and Wildlife Bureau PAWD Protected Areas and Wildlife Division PBCPP Philippine Biodiversity Conservation Priorities Program PD Presidential Decree PENRO Provincial Environment and Natural Resources Office PNOC Philippine National Oil Company PNP Philippine National Police 5 PO People's Organization PS Personnel Services PTA Philippine Tourism Authority QUEDANCOR Quedan and Rural Credit Guarantee Corporation RBA River Basin Authority RDC Regional Development Committee RED Regional Executive Director RUP Resource Use Permit SFM Sustainable Forest Management SIFMA Socialized Industrial Forest Management Agreement SWAP Sector-Wide Approach Program TLA Timber License Agreement TOR Terms of Reference UP MSI University of the Philippines Marine Science Institute USAID United States Agency for International Development WRDP Water Resources Development Project 6 NATURAL RESOURCES GOVERNANCE: WAY FORWARD ACTION PLAN Summary of Key Issues Long-term, sustainable economic growth and poverty reduction in the Philippines will depend The Way Forward: critically on how successful the government will be in providing an effective framework for To improve service delivery, the DENR environment and natural resource management needs to undertake a substantial institutional (ENRM). Despite innovative policy and other review as well as develop an actionable instruments to institute responsible ENRM, framework. In particular: (a) expenditures results have been mixed at best. The challenges (e.g. personnel services vis-à-vis non- to this framework are: personnel services) must be rationalized; (b) the prioritization of functions and major final The shrinking budget of the Department of outputs (MFOs) must be significantly Environment and Natural Resources improved and these should be realigned with (DENR), a large portion of which goes to the budget; (c) more effective partnerships personnel services, with too little allotted for with line agencies should be developed to operations and investment in ENRM. In improve delivery of ENRM; (d) more addition, the budget is fragmented over effective devolution and local responsibility diverse and uncoordinated functions for ENRM should be encouraged; and, (e) (bureaus) and there is too much dependence the legal framework for ENRM should be on Official Development Assistance (ODA). streamlined and rationalized to improve efficiency. Slow-moving devolution toward greater community and local responsibility for ENRM should be structured around an ENRM, compounded by complex and overall set of broad themes that encompass cumbersome processes of securing tenure an integrated ecosystem approach, including: and property rights. (a) watersheds; (b) coastal resources; and (c) protected areas. More immediately, the Limited funding for local institutional DENR should develop effective land use and bodies--provincial environment councils and real-time database systems to adequately Protected Area Management Boards assess and monitor the country's resources. (PAMBs)--to adequately address issues of Without these, environment and natural protected areas, because the Integrated resource planning and management would Protected Area Fund (IPAF) mechanism not have a sound basis. remains ineffective. Lack of service and performance standards for ENRM, e.g. protracted procedures in securing tenure instruments and in the issuance of resource use permits, resulting in lower accountability and local transparency in ENRM. 7 Executive Summary Implementation of tenure instruments. Application procedures for obtaining tenure The Philippines possesses a rich natural resource instruments remain cumbersome and complex for base, ranging from water, forests, coastal areas, to communities. Furthermore, in some places mention but a few. The large rural population in different instruments have been issued for the the Philippines, now estimated at 41.4%, is largely same area, such as ancestral domain claims and dependent on these natural resources for their forest management. For coastal resources, there livelihoods; approximately 20% live in or adjacent are no existing community-based property rights to forest areas. despite the devolution of control over coastal waters and resources to Local Government Units The degradation of natural resources has been (LGUs). significant in the last 30 to 40 years as the population rapidly increased. To reverse this To resolve these insufficiencies, tenure rights trend, the government introduced innovative must be accompanied with responsibility and institutional and legal reforms for sustainable accountability based on national and local natural resources management. For example, in standards. The DENR needs to enforce these the mid-1990s, the DENR initiated the transfer of responsibilities and standards, and to provide the management of natural resources to local tools and services the local governments and governments, local communities, and indigenous communities need to observe and implement peoples, in accordance with the recently-enacted them. Local Government Code (LGC). A variety of tenure rights were granted to communities and Budget. As with other government agencies, the indigenous peoples, particularly in the budget of the DENR has been shrinking annually management and utilization of forest resources. resulting in reduced financing for investments. In addition to creating a national system for Furthermore, the limited budget of the protected areas, the indigenous peoples' right of Department is spread across too many programs ownership to ancestral lands and domains, and projects and fragmented among four bureaus, including its natural resources, was recognized. significantly limiting any bureau's ability to effectively implement natural resources policies Despite efforts to improve natural resources and plans. In addition, there tend to be frequent management, performance has been mixed. The banner programs instituted by new DENR overriding issues of degradation continue and the Secretaries without adequate assessment of on- measures that the government took to reverse the going budget requirements of the Department, trends have produced limited results. In the creating significant inefficiencies in spending on uplands, where 20 million of the most poor natural resources. depend on the forests for their livelihood, poverty has persisted. Population pressures and open Institutional arrangements. New institutional access to most of the natural resources work in arrangements with local governments and other confluence to drive the continuing forest stakeholders such as the PAMB and provincial destruction, coastal resource exploitation, environment councils have brought more biodiversity loss, and rapid watershed transparency in resource management decisions. degradation. PAMBs are now actively involved in issuing local conservation regulations and implementing This rapid degradation exerts further pressure on management plans for protected areas. Enhanced the remaining resources and significantly stakeholder partnerships have increased the constrains the communities dependent on these number of volunteers and non-governmental resources from deriving sufficient income. In the organizations (NGOs) assisting protected area absence of alternative livelihoods, the poverty superintendents in park management and incidence in these communities remains high. protection activities. Key areas reviewed for inclusion in the Action However, the financing of these activities is still Plan pertain to the following: limited. The IPAF has not yet functioned effectively. Without sustainable financing, much 8 of the new institutional arrangements could be lost. The new arrangements require that The Department should review its present responsibilities match institutional capacity, both mandates and assess human and budget financial and human, and accountability. availability to prioritize those mandates that it can deliver on. More specifically, the following short- Service and performance standards. Overall, term actions are needed: standards have yet to be developed for the management and delivery of natural resources Institutional and policy reform: These reforms management, such as the length of time it takes to are urgent: implement tenure instruments and/or to process resource use permits. These processes remain (a) The DENR should be rationalized and time-consuming and expensive; only a few streamlined to increase its capacity to deliver individuals or communities are able to afford services in a more cost-effective and timely them. To improve service delivery, the DENR manner. Specifically, the costs for personnel and local governments need to develop services (PS) and maintenance and other operating performance standards particularly for resource- expense (MOOE) should be balanced with rich provinces with numerous land use conflicts. investments costs. This has emerged as a major policy issue. In addition, the DENR should Priority areas for management. Briefly, the decide which of its mandates are the most study identified three areas of focus by the DENR: important, even for the short term. It should adequately fund these to ensure maximum impact (a) Integrated watershed management, in view of in the results obtained. the recent enactment of the Clean Water Act, its importance to integrated ecosystem management (b) The DENR should cultivate more partnerships and its large contribution to other sectors, such as with other agencies involved in natural resources environmental management, agriculture and management. Based on the agreement of priority general rural development; areas to be pursued, the Department should identify the best-placed agencies with which it can (b) Integrated coastal resource management, given participate in planning and implementation, build the fragility of coastal ecosystems, its high consensus, and devolve or delegate actions potential for sustainable development and as a accordingly. This may require the development of viable source of livelihood for poor coastal incentives to ensure follow-through by the communities; and, partners. Devolution may also need to be done in phases to ensure readiness of the partners. (c) Protected areas management, given the rich biodiversity of the Philippines, which contains (c) The DENR should reorient and train its more diversity of life per hectare than any other personnel in line with its evolved mandates. To country on earth. The denudation of the create an enabling policy, the DENR should Philippine's forests is one of the highest review the numerous laws and propose biodiversity loss rates in the world. This loss amendments thereto to simplify and facilitate represents, not only a loss to present and future implementation. sources of livelihood, but also a loss to the country's national heritage. Implementation. The following are among the most important: Recommendations. Several actions are proposed for implementation in the short, medium and long (a) After the priorities are selected, the budget term. The intention of this study was to develop should be aligned with planning processes. This is actionable recommendations for inclusion in the best done through a review of the MFOs and their implementation plans of the DENR. Over the last respective indicators. Furthermore, the DENR decade or so, the mandates of the DENR have should prepare a detailed costing of the priorities, progressively increased, but budget allocations taking into account the country's financing remain volatile and have actually decreased difficulties. numerically. 9 (b) The land use planning maps should be completed to support the shift from sub-sectoral planning to an integrated planning and implementation approach. (c) The rate of community-based forest management (CBFM) tenure instrument issuances should be increased to improve devolution. At the same time, this increases the capacity of the local communities to independently manage the CBFM resources. A majority of these actions will be addressed in the budget support program that the DENR is preparing for implementation starting 2007. 10 Chapter 1. Building on the NRM of each agency in implementation, to identify gaps Governance Study and overlaps in responsibilities, and to recommend actions the DENR needs to take in order to fill in the gaps. The matrix would also A 2003 World Bank study, identify which agency should be given full Governance of Natural Resources in the Philippines, analyzed responsibility for a particular area or sector and natural resources management and governance in how DENR can facilitate this process. the Philippines. It assessed sector policies, particularly property rights, institutions, and (b) An Institutional Environment Review. To financing mechanisms as well as program rationalize the efficient use of resources, the implementation. mandates of the DENR's services and bureaus in the context of DENR's overall mandate should be The study concluded that implementation failures examined. Two particular areas would be in the Department arose from: reviewed: (a) Unclear institutional mandates between · Potential for decentralization/devolution: In national and local governments; light of the emphasis by the government to decentralize and devolve functions, the (b) Lack of sustained financing at the national consultants would assess the extent to which level and limited generation of revenues at the this has happened in DENR and propose how local level for natural resources management; this can be advanced; and, (c) Protracted procedures in the issuance of · Partnerships: The consultants would forestry tenure instruments and difficulties in the review the potential of DENR to work with enforcement of provisions of agreements; other agencies responsible for activities that are relevant to natural resource management (d) Lack of equivalent tenure instruments for (NRM) issues. Some of these agencies coastal waters and resources; include the Department of Agriculture (DA), Bureau of Fisheries and Aquatic Resources (e) Administrative constraints, such as inadequate (BFAR) or the LGUs. The consultants would funds and personnel to carry out sustainable also recommend effective and appropriate natural resources management; and, mechanisms to facilitate these partnerships. Some examples are the joint memorandum (f) Insufficient capacity, accountability and circular between the DENR and the transparency in public and private institutions Department of Interior and Local Government responsible for natural resources management.1 (DILG) and those being prepared with the DA, BFAR and the National Commission on Because the Governance study stopped short of Indigenous Peoples (NCIP). proposing a way forward, this follow-on activity was designed to develop an actionable follow-on This follow-on Action Plan concentrates mainly plan that could be translated into short-term to on the green agenda, with limited attention being medium-term investments. This follow-on study given to the blue and the brown agendas. These had the following specific objectives: areas would need further attention and an appropriate Action Plan prepared. (a) A Policy Review of the various legislations, such as acts and executive orders (EOs), that govern the management of resources. Based on Methodology these laws and through consultation with the DENR and other involved agencies, a matrix The Way Forward Action Plan study was would be prepared to identify the responsibilities prepared jointly by a DENR task force and a Bank Team. The joint team began with an accounting 1The findings are also consistent with those found in of the distribution of forestlands, their respective earlier literature. resource managers, mandates and terms of 11 reference defined in the proclamations and policy documents. The team then reviewed secondary information on natural resources, including governance, tenure security and service delivery. Improving the impact of decentralization and devolution, the potential for increasing partnerships in managing natural resources, and efficiency in awarding of tenure instruments was given particular attention. The initial draft of issues and concerns were verified through field consultations with representative resource managers. The team reviewed and edited several iterations of the issues and the way forward action plan before these were presented to the DENR executive committee for final inputs. Expected Output It was agreed that the output would be an Action Plan. The Plan would clearly indicate priority actions that the DENR must undertake in terms of institutional, legal and operational reforms. These actions would take into account the country's challenging fiscal situation and the institution's capacity to implement the said recommendations. The Action Plan would guide the Bank and other donors in prioritizing short-, medium-, and long- term actions and investments. Most importantly, the Action Plan would emphasize impact and sustainability. 12 Chapter 2. Basis for Moving Forward A quick look at the evolution of the DENR's mandates--the need for closer coordination and/or joint implementation with local Institutional and Policy Aspects communities, the decentralization of structures, the reduction of the number of timber licenses, to name a few--necessitates an in-depth review of As a bureaucracy, the DENR has one of the the mandates of the various agencies involved in largest number of personnel. A large majority of natural resources management, particularly those these staff are stationed at the central office or within the DENR, the key implementing agency. have been moved to the regional offices. As a result, DENR's experience with devolution is still Based on the results, priority areas for support very limited and derives mainly from the should be identified. This review should be Integrated Social Forestry (ISF), which was complemented by an appraisal and update of the devolved in the mid-1990s after the enactment of resource management tools used by DENR, which the LGC. The DENR's situation is unlike that of should evolve from a top-down role to one that is the DA and the Department of Health (DOH), joint and community-based. In addition, training whose functions have been significantly devolved. will need to be conducted to renew and upgrade staff skills; where this is not possible, new staff Although skilled, the devolved personnel of the should be hired. DENR have not had the intended impact in the field due to a poor division of the roles and The institutional changes that must take place responsibilities of the DENR and the LGUs. The need to be complemented by an upgrade of the situation was compounded by the limited capacity human resource skills. In many of the regional given to the LGUs and the devolved staff to carry offices, the staff's qualifications are still out the ISF program because of lack of reminiscent of the days when the DENR's major understanding of the program's rationale, mandate was timber production, and not joint objectives and activities. In addition, the DENR management approach with other stakeholders. A and the LGUs did not provide resources to sustain large number of forest rangers and scalers remain the program and build capacities. on the payroll. Even at the Community Environment and Natural Resource Office Efforts to further devolve functions to the LGU (CENRO), which acts as the primary interface level have been limited; hence, the overall impact between the DENR and the local communities, from the initial devolution effort has been there are only a few community development minimal. The DENR is aware of the importance workers. of continuing the devolution effort. It now needs to take immediate action as the issue has urgent The dearth of new and necessary skills deprives implications on the Department's future role and the DENR of the leadership needed to fight functions, particularly with regard to budget use upland poverty, work with local government and efficiency. upland communities and bring about a societal approach to the country's varied environmental With the scarcity of resources and an extensive problems. At the same time, the DENR should devolution mandate, the DENR has little choice develop and encourage viable partnerships with but to pursue broader devolution. However, LGUs, NGOs and local communities to increase further devolution must also consider the the number of practitioners in community readiness and capacity of LGUs to implement the management activities. activities. Thus, the focus should now be how to improve the LGUs' capacity and develop To strengthen devolution, the DENR will also incentives to make them work better and achieve need to support the increased transfer of human higher results. This will require an evaluation of and financial resources2 with sufficient logistics who in the LGUs would be best equipped to take arrangements. At the legislative level, the on an increased role in natural resources management. 2However, with about 70% of DENR's budget going to PS and 25% to MOOE, it will be difficult to financially support substantive devolution. 13 constraints are minimal, as the LGC already Presently, more than half of the country's total contains provisions for continuing devolution. land area (or approximately 16 million hectares) is Thus, it is imperative for the DENR leadership to under DENR management. While much of the promulgate a policy decision to do so. forestlands have been awarded through agreements and licenses to other government Short- to medium-term devolution now becomes agencies, the private sector, and/or communities, more urgent, with the limited budget, the recent the overall responsibility is still perceived to be explicit declaration by economic managers that with the DENR. With almost one-third of these devolved activities can no longer be financially forestlands (5.5 million hectares) still operating as supported by line agencies, and the unlikely open access areas, DENR is under pressure to possibility that the overall budget to the DENR provide leadership and strategic guidance in will increase in the near future. sustainable natural resource management. Again, this must be done with the recognition that The DENR has begun to initiate the formation of the LGUs only have limited expertise to partnerships, such as that established through a immediately perform the devolved functions. The Memorandum of Agreement (MOA) signed with DENR will need to develop mechanisms wherein the NCIP to facilitate DENR's assistance to the limited budget will be used most effectively. indigenous communities. Another MOA has been One mechanism could be a performance-based signed between the DENR and the Department of budget system that links inputs to outputs. Science and Technology (DOST) to allow the latter to provide technologies to be used as a basis Thus, budget allocations could reflect the quality for establishing alternative livelihoods and and quantity of resources to be managed while enterprises in upland resource-dependent acting as an incentive for the engagement of the communities. The DENR has also signed another LGUs, communities and other partners in natural MOA with the DILG to facilitate co-management resources management. Simple and clear of natural resources with the LGUs. In an effort performance standards and monitoring systems to reach out and provide support to its newly would correspondingly need to be developed so formed partnerships, DENR has established that they result in increased transparency and environment desks in national agencies, whose accountability of the resource managers. work includes supervision of environmentally critical industries, clients and/or communities. Pursuing devolution will require the DENR to increase its coordination with other agencies, and During the late 1980s, the DENR established a including LGUs, the NGOs and the private sector. tradition of working closely with NGOs. It has This could provide strategic and targeted levels of successfully implemented joint projects with engagement toward a sound and coordinated industry groups to install environmental standards natural resources management. and self-monitoring systems among member companies. Past experience shows that this can work. During his term, President Fidel V. Ramos preferred to Still, the bureaucracy remains replete with inter- focus attention only on proposals that had been agency coordinating councils that are not agreed upon by all agencies concerned. functioning as intended. The problem often lies Consequently, Cabinet meetings were held mainly with coordination in the field, even when roles are to settle inter-agency concerns. This had the clearly defined. For instance, PAMBs often effect of improving effectiveness of actions complain that representatives sent in place of the addressed. principals are not qualified to deliberate on issues under review. Delivering on a mandate that requires significant cross-sectoral inputs, such as that managed by the Based on the few successful cases of collaborative DENR, dictates that viable partnerships be implementation, the key element appears to be the developed with agencies also working on natural direct and personal involvement of the top resources management to improve results and officials of the agencies in question. The impact. President's support, in the form of an 14 administrative order (AO) or EO, can significantly facilitate the process. Other key factors in Two key activities need to be carried out. First, it addressing institutional and policy concerns are: will be important to review and clarify the sufficient funding for joint projects; clear terms of implementation of the various laws, decrees, EOs reference that are followed through with and AOs, and all other pertinent legislation indicators of performance and monitoring and governing the management and implementation evaluation (M & E); public disclosure of results; strategies relevant to natural resources. Pending and a provision for incentives. legislation, particularly those that have been awaiting action for a long time, should be reviewed for integration and relevance. Legal Aspects In this regard, three key laws will need to be The DENR mandates are governed by a large revisited: number of laws, EOs, codes, and the like, all of which are fairly complex and, in some instances, (a) Coastal Zone Management Act (CZMA). The overlap each other. In addition, there are a vast mandates and roles of the various agencies number of agencies and bureaus involved in involved in coastal resource management (CRM) natural resources management, some of which must be clarified. In reviewing the CZMA, there have overlapping mandates. This situation results is a need to define areas that strengthen the LGUs' in unclear roles and responsibilities and capacity to manage its coastal resources. It is also fragmentation of efforts. important to determine and provide mechanisms for the transfer of required CRM technologies and The main issue is, therefore, the multiplicity of management skills to the LGUs and the end-users. laws governing natural resources management. Providing incentives to implement the law, Many of these are outdated, such as the through an integrated coastal management Presidential Decree (PD) 705 or the Revised approach, can lead to a broader and sustained Forestry Code of the Philippines. Enacted in impact. 1975, it remains the primary forest policy in the country. However, given that it will take some time before the Act is enacted, the DA and DENR will need to Figure 1 below illustrates the complications draft the joint memorandum on CRM mandated arising from the overlap of PD 705 with other by law in 2000. The two agencies were mandated legal instruments governing forest management. to draft the National Integrated Coastal and The provisions of PD 705 no longer satisfactorily Marine Management Strategy (NICMMS) but this respond to the current mandates of DENR. In has not yet happened. particular, it supports neither increased participatory or joint forest management nor (b) Sustainable Forestry Act (SFA). To make sure increased devolution or decentralization of that the SFA responds to current NRM directions, resource management, both of which will it is important to clarify the conflicting laws and contribute to reducing the high exploitation rates reduce the executive discretion on issuance of and improve sustainable management of the logging rights. It is also preferable that the SFA resources. authorize the retooling of the DENR to meet its evolving mandate by stressing management and Where the laws have been updated, little effort community development skills to gain the has been made to consolidate them. For coastal participation and cooperation of stakeholders. resources management, no single integrative law clarifies the conflicting mandates of agencies in This will strengthen the role of LGUs in forest the coastal areas or provides guidance on the management, especially of communal problem of over-exploitation and illegal settlers watersheds. It will also provide technical support in open access and/or reclaimed areas. This to communities with Community-Based Forest results in a lack of clarity on the best way to Management Agreements (CBFMAs), Certificate implement the laws, further constraining the of Ancestral Domain Claims (CADCs), and institution from fulfilling its role. Certificate of Ancestral Domain Titles (CADTs). But the SFA will have limited application if the 15 DENR fails to provide a dynamic source of funding, such as user fees and trust funds. (c) National Integrated Protected Area System (NIPAS) Act. The NIPAS Act has been operational since 1997. The results of its implementation and impact have been mixed. Taking a closer look at the Act, particularly with regard to its impact, its processes and procedures governing the use, protection, conservation and integration into local planning and development will significantly contribute to a greater appreciation for biodiversity conservation. Reasonable access to the IPAF, so that it becomes an incentive rather than a bureaucratic impediment, will be crucial. The present system for establishing protected areas under the Act is a drawn-out process. It results in weak local support and commitment which threatens the sustainability of protected area management. Annex 1 presents the implementation and governance aspects of the NIPAS Act. 16 Figure 1: Presidential Decree 705 and Related Laws and Executive Orders on Forestland Management M IN EO IPRA N IP IN G 236263 A LA S A C W C O T D 3,500,000 E 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 AFFLA SIFMAFORESTS MPStion permitsFish Ponds A) ) C es OVE ( ISF-CS (CFP) MSA ured) NPC TLA(active)1spended)Voluntarily) 2 CFMA Contract FORESTs (PA, BZ) L ACCESS* Pa TLA (surendered (su PRIVATE MINE (AllExplora CBFMA CALC/ (non-tenREFO COMMUNAPARK - Civil ReservMANGRPEN O TLA Mines Resource Managers Community Parks LGU EO 263 EO 263 CENRO 17 Funding Aspects This gap was recently partially addressed with the acquisition and interpretation of the latest satellite To improve the efficiency of DENR's operational images of the country, jointly carried out by functions, a more focused and strategic budget National Mapping and Resource Information and planning process is needed, particularly now Agency (NAMRIA) and the Forest Management given the country's current fiscal challenges. Board (FMB) in 2003. The maps show the state Since the 1997 Asian crisis, the budget of the of the forests (closed canopy forest, open canopy); DENR has substantially declined. In the past, plantations and mangrove areas; where these areas fiscal constraints have generally been remedied are in the provinces, etc. with foreign funding. This situation is no longer supportable as foreign funds, especially from In addition, a forest assessment with assistance bilateral agencies, have become scarcer. A viable from the Food and Agriculture Organization strategy to address this issue does not yet exist. (FAO) will soon be completed, after validation by Furthermore, the DENR has not really had the the LGUs to ensure conformity with the plans of opportunity to rationalize its numerous bureaus, the DENR and the LGUs. However, further agencies and staff needs to match funds inventories are still needed for other natural availability. resources. Budget availability is likely to remain a constraint, The difficulties in obtaining reliable inventory at least in the short to medium term. Accordingly, information are also being compounded by emphasis on attaining prioritization in budget inadequate institutional structures, particularly for allocation and efficiency will be more important devolved activities such as those under the than trying to access higher budgets. More CBFM. Although areas designated as CBFM are importantly, in congruence with its prioritization managed by people's organizations (POs), the process, the DENR must cost the identified POs do not have formal agreements with the priorities to present a request that is in line with DENR; they do not have a signed CBFMA. As priority needs and cognizant of the country's of June 2004, in 5503 sites (with over 496,000 fiscal difficulties. households), it was found that less than half of them possessed signed CBFMAs. To ensure that government agencies perform in a manner that is strategic and impact-driven, The absence of formal agreements leads to national government agencies were required to difficulties in accountability and in gaining an develop their respective MFOs. The MFOs accurate picture of the actual state of the resource. embody the core objective and purpose of the Both the awarding of formal tenure instruments organization and serve as the basis for for the identified CBFMA, and the capacity- rationalizing its programs, projects, staffing needs, building activities of POs to monitor resources and budget. The DENR is one of the agencies that and collect information to be used to update the piloted this initiative. The challenge now is to inventories must be improved to address this translate these MFOs into concrete planning and issue. priority-setting strategies which should lead to specific areas and types of operations. In this way, Apart from prioritization, a potential measure to the MFOs can serve as the basis for a more attain budget use efficiency would be to develop rationalized and responsive budget. financing mechanisms that increase available funding. Efficient budget allocation based on prioritized activities and themes will require knowledge of One such example is that used by Poland where a the quality and quantity of natural resources. trust fund, capitalized by pollution user fees (the Obtaining this type of information requires an greater the pollution, the higher the fees), was set inventory that should be collected by region or up. The money from the trust fund was lent to province, type of resource, estimated value, etc., implementing agencies to solve environmental at the very least. problems. As an incentive, the trust authority converted the loan to a grant when the agreed environment measures are effectively 18 implemented. The approach can feasibly be On the other hand, the DENR's own budget applied in the Philippines, and it has the added allocation, enough for approximately 20 parks, is advantage of strengthening accountability and distributed among all the sites under the NIPAS providing built-in incentives to resource process. Hence, the majority of the parks and PAs managers. with proposed or existing presidential proclamations and established PAMBs are not The Laguna Institutional Strengthening and able to receive adequate allocations to undertake Community Participation Project (LISCOP) is the proper management on the ground. first activity in the country that is trying to apply a mechanism where good performance can result in It will be important that DENR and its donors a loan being converted to a grant. In this instance, coordinate and collaborate to direct investments to the government would repay the loan on behalf of meet the needs of PAs, with global and regional the Laguna Lake Development Authority biodiversity conservation as priorities. (LLDA), the borrowing agency, upon successful implementation of agreed objectives. Some innovative devolved financing schemes have been developed. A case in point is the In Boracay, the use of water fees to generate funds DENR's partnership with the local government of for the protection and rehabilitation of watersheds Puerto Princesa for St. Paul's Nature Park and the is being piloted by the Philippine Tourism Tubbataha Reef. Based on innovative and Authority (PTA). The PTA has set up a water mutually agreed-upon arrangements, 100% of the supply system for which it charges user fees; in fees generated are kept locally. This model turn, it has agreed to allocate a portion of its should be reviewed for replication. revenues for the protection and rehabilitation of the watershed on the island. The general state of the country's M & E systems for NRM and biodiversity is limited. With the This concept is also being tried in coastal emphasis on the MFOs as a major indicator of resources, such as in Hilutungan and the performance within the country, and with the Nalusuan, Anilao, and Apo Island, where visitors increasing emphasis of the donor agencies on are levied charges for swimming, diving, results and impact for investments, it is imperative snorkeling, and similar activities in the marine that an adequate, accurate and management- sanctuaries. The extent to which this system can oriented M & E system be developed. be replicated depends on whether the agency charging user fees can retain them for use. Unless This may require the consolidation of the various this is ensured, the collected fees must revert to systems already in place at the DENR. The new the Treasury as stipulated by the NIPAS and system would provide the national government Clean Water Acts. The reversion of fees to the with the trends to enable it to steer and adjust government is a clear disincentive to local policies and scarce finances accordingly. The accountability, commitment, and sustainability. system should ideally provide accurate and meaningful reports to the Convention on The combined projected annual allocation for the Biodiversity secretariat, as well as to donors. protected areas (PAs) of DENR, ODA, NGOs and More importantly, this will provide local level other sectors3 would be adequate to fund the resource managers, including PAMBs, protected operation of the country's existing 159 PAMBs areas superintendents (PASUs), LGUs and and the implementation of 63 park management communities, with trends on land and resource plans. However, ODA and NGO funding tends to uses. The information should enable them to be concentrated unevenly in 25 to 30 sites, with mitigate actions on the ground faster. the bulk of the funding concentrated in less than ten sites. It was in this vein that the DENR issued Departmental Administration Order (DAO) 13- 2001 instructing all regional executive directors (REDs) and PAMBs to run the DENR Biodiversity Monitoring System developed with 3In 2003, this amount was estimated to be almost the assistance of a World Bank Technical US$11 million. 19 Assistance-implemented component of the Conservation of Priority Protected Areas Project (CPPAP), a World Bank-assisted project. This system remains functional, but does not adequately cover the monitoring of all aspects of NRM. 20 Chapter 3. Prioritization in Addressing Getting the most impact from these three areas Core NRM Issues requires cross-sector planning and implementation. As such, "planning should start from the top of the mountain down to the sea"--a Building on the aspects discussed in the previous key principle in ecosystem and landscape chapter, the prioritization of key sub-sectors in the approaches. short term (up to 2007) and the medium term (up to 2010) is needed for the DENR to move forward In the Philippines, land use planning has with effective NRM governance. traditionally only literally covered land resources. Even where land has been given priority, This chapter presents and discusses the activities forestlands are inadequately covered; coastal that should be implemented in these time resources have generally been left out. However, horizons. They are divided under specific areas of this is changing with broader approaches using policy, institutional and governance reforms. ecosystems, watersheds, landscapes, and Annex 2 presents the key actions to be taken by integrated coastal zone management. each sub-sector and by time horizon. With the current tight fiscal challenges, broad Integrated Community-Based Watershed institutional mandates, large bureaucracy with Management uneven human resource skills, and disconnect between planning and budget processes, the In 1998, the DENR's Forest Management Bureau, DENR will need to exercise selectivity and assisted by the Danish International Development prioritization in the financing and implementation Agency (DANIDA), released the Philippines' of its programs and activities. Strategy for Improved Watershed Resources Management, which laid out the basis for This selectivity must also be carried out with the sustainable watershed resources management. view to obtaining improved service delivery, Notwithstanding this, the implementation status of better governance, accountability, higher impacts watersheds starkly illustrates the limited impact of the implemented activities, and improved that some of the applied measures have had to efficiency in the agency's ability to deliver its date. core mandates in a fiscally constrained environment. At the core of the watershed problem is the absence of a basin- and watershed-based Based on the discussions, consultations with integrated water resources management approach partners in the sector, and literature review, three to guide water resources development, protection key areas have been identified as needing priority and efficient use. This results in weak capacity for attention and support in the short to medium term, regulating and coordinating activities across namely: (a) watershed management, including sectors, inadequate investments in water forestry management (but this should not be in the infrastructure and watershed management, and traditional sense of simply increasing forest areas, inadequate operations and maintenance (O & M) but rather in the broader context of balancing of water infrastructure. conservation, management and use); (b) integrated coastal zone management; and, (c) protected areas The World Bank's Country Water Resources management. Assistance Strategy for the Philippines (2003) noted that water management in the country is Focusing on these three areas will give the agency fragmented; responsibilities are divided among the opportunity to concentrate its efforts and agencies and sectors with little coordination or resources to ensure impact and sustainability. communication. Agencies have largely Moreover, the DENR will be able to fulfill tasks independent programs for water resource and responsibilities that can create greater development and operations. awareness and appreciation among oversight agencies and donors. Negative externalities from excessive water withdrawals and discharges have extended impact 21 in upstream and downstream areas of river basins management and integrated watershed and across sub-sectors. Despite various efforts, management. the participation of the natural resources users has yet to reach acceptable levels. A large quantity of With the major degradation of the watersheds and the resources must engage the communities that the emerging directions taken by the DENR exploit them, if they are to be managed in a leadership, the strategic focus in the uplands has sustainable manner. broadened from simply that of trees to the whole dynamics of water resource management. And as the management of resources evolves towards a decentralized community-managed The paradigm shift from forestry to watershed system, where the communities themselves management has strategic advantages for natural become the stewards of the forest, these new resource management. First, this permits the managers should be adequately supported to carry development of partnerships for a more holistic out this mandate. approach to watershed management. Second, with the decreased status of wood resources, water The 1995 Water Summit of the government of the contributes more to the economy than wood, Philippines (GOP) stressed the need to "initiate making it easier to justify more funds for integrated water resources management based on watershed rehabilitation. Third, if the resource is hydrological boundaries or river basins as the properly managed and costs are recovered, water direction for future water resources planning and presents a source of funding for upland investment." rehabilitation. More than half of the total land area of the The strategic focus on integrated watershed Philippines (30 million hectares) act as watersheds management does not reduce emphasis on other for the other half, which are mostly of lowland aspects of forestry, such as wood and non-wood terrain. These watersheds comprise most of the products. Rather, the shift emphasizes the need to country's forestlands. Its severe degradation classify and work with forests based on use: those (estimated at 93%) in the last fifty years has that are for protection because of their watershed reduced forest productivity. The reduced revenues function and biodiversity value; and/or those that have caused exacerbated problems of poverty, are appropriate for production. flooding, and loss of land. An integrated watershed management program Seventeen percent of the country's land area is must address and encompass the elements that subject to severe soil erosion; 28%, to moderate have driven continuing degradation of the erosions; and 30%, to slight erosions. This reality uplands, hindered its rehabilitation, or caused gaps lessens the capacity of the poor upland and anomalies in the implementation of existing communities to grow their own food on a policies and programs. The integration should sustainable basis. Even the economically better include and identify, not only the activities off in the cities are not spared by the depleted implemented, but also the key players involved to supply of potable water. strengthen partnerships and build ownership and accountability for the resources. The government has been making continuous investments in reforestation and infrastructure for Presently, there are 8261 identified resource water distribution. But a significant part of the managers with leaseholds, concessions or legal problem continues to exist due to the large stewardships over forestlands. This excludes the population dependent on the forests, presently LGUs, which are directly responsible for local estimated at 20 million, increasing poverty in the watersheds. uplands and the open access to most of the natural resources. Communities are responsible for approximately 8.9 million hectares (or 79% of the total forestland Up until recently, an accurate and updated area) under various kinds of tenure instruments, resource inventory of forest resources has not such as those under the ISF, CBFMAs, CADCs been available. The resource inventory is a key element in carrying out water resource 22 and CADTs.4 Eleven government agencies are responsible for over 3.9 million hectares.5 In the light of this array of actors, management regimes and broad stakeholders, the DENR must Forestlands 3 500 000 3 000 000 2 500 000 a 2 000 000 HtseroF 1 500 000 1 000 000 500 000 0 AFFLA SIFMA Ponds (CFP) MSA nured)ContractFORESs (PA, BZ) T NPC es VE TLA(active)spendedVoluntarily) 1 )2 (MPSA) permits)sh TLA PRIVATE FORESTS Fi ISF-CSCMA L ACCESS* (surendered (su MINE CF M CBFMA CALC/ (non-teREFO - Pa CivilReservANGRON OPE TLA Mines (AllExploration COMMUNAPARK Figure 2: Coverage of Various Management Instruments and Regimes The private sector, previously the largest segment define the roles and responsibilities for these up to the mid-1980s, now account for resource managers, establish the current state of approximately 3.1 million hectares covered by the resources under their jurisdiction and specify Timber License Agreements (TLAs), Industrial the indicators of performance, which will be the Forest Management Agreements (IFMAs), basis of an annual review. All resource managers Socialized Industrial Forest Management Sharing must establish close linkages among themselves Agreements (MPSAs), Financial and Technical and ensure active participation from communities Assistance Agreements (FTAAs), and Exploration adjacent to or within their areas of responsibility. Permits, Private Forests, Grazing Lands.6 A total of 2749 private persons and entities comprise this More than 2 million hectares of watersheds have group. Figure 2 shows the various resource no assigned resource managers (illustrated as open managers and the approximate share of access in Figure 1), and are, thus, most vulnerable forestlands, in hectares, under their mandates. to degradation. Tenure of these areas must be transferred to the community or communities closest to the watershed for their protection and 4 There are approximately 3,430,000 hectares under rehabilitation. The communities would need to be CBFMA and 2,520,000 hectares under CADCs. 5 Aside from the DENR, other government agencies assisted in identifying the best land use and means include the National Power Corporation (NPC), of rehabilitation of the watershed. National Irrigation Association (NIA), Philippine National Oil Company (PNOC), the military (around In each of these communities, Watershed 130,000 hectares), and the Special Forest Land Uses Councils, similar to the DA's Fisheries and (110,000 hectares). Aquatic Resources Management Council 6 Around 560,000 hectares are under TLAs, 700,000 (FARMC), must be organized. The council would hectares under IFMAs, and 40,000 hectares under act as an advisory group at the barangay level SIFMAs. 23 primarily responsible for decision making on other agencies that have related programs for issues related to the watershed, determine user upland communities. Some coordination and fees, and handle conflict resolution on resource linkaging efforts have been initiated to address use. To provide technical advice to the technical capacity issues. The current leadership community, a village forester would need to be of the DENR has initiated co-management identified from among the local residents and arrangements with some LGUs and has also trained with basic skills in forestry. initiated a MOA with the NCIP to provide mechanisms for assistance to the indigenous Technical assistance. Transferring the peoples (IP) communities. The DENR and the responsibility of watershed management to the Department of Agrarian Reform (DAR) have resource users and to the LGUs will create a close tie-ups due to their joint implementation of conducive implementing environment that may the Comprehensive Agrarian Reform Program lead to the adoption of relevant policy and (CARP) in the uplands. legislation and the securing of budget and human resources. Streamlining the institutional set-up to support a changing mandate. The CENRO, the primary Since much of the areas given to upland service provider to the LGUs and communities, communities are still de facto open access areas, it must be streamlined to improve its service is important that communities be organized to a delivery. The staff of these frontline offices of the level of self-governance where they are DENR must be reoriented and retrained based on empowered to assert their rights over the resource the proposed institutional directions. This training and deliver on their responsibilities. must take place in the context of the overall training program that would be designed for In addition, the communities will need to have DENR's human resource development, skills alternative livelihoods that will not only reduce upgrade and training. pressure on the land, but also allow them to generate income and raise their standards of living For CENROs, emphasis should be on improving as they move away from forest dependency. The the provision of technical and livelihood services more advanced communities, in terms of resource to the LGUs and community organizing and management, will need training and assistance in development to the communities. The DENR has enterprise development. These activities are only 101 trained community organizers, but more already covered by the DENR's CBFM program. than 5000 upland communities require their services. There are even fewer CENRO personnel The LGUs would need technical assistance on trained in providing livelihood options or forest land use planning and rehabilitation, and enterprise development. advice on required ordinances for rehabilitation and protection. Linkages with and access to Given the tight fiscal situation of the government potential sources of technical assistance and and the fact that there is likely going to be a funding should also be facilitated. downsizing of the civil service, other mechanisms for providing technical support and assistance On the other hand, the government agency should be explored. A model being employed by counterparts will need to be engaged in the EcoGovernance Project of the United States discussions on how best to ensure technical and Agency for International Development (USAID) logistical support, finance the activities agreed is the engagement of short-term consultants and upon and benchmark results to measure the advisers to provide the required assisstance effectiveness of the activities outlined in an needed by the LGUs. agreed MOA. Annual performance reviews could be drawn up and the results of their monitoring It may be possible to institutionalize this model by disclosed publicly, hence, acting as an incentive. using the network of environmental educators in local academic institutions to act as consultants There is need for closer coordination with the DA, and advisers. However, as would be the case for DOST, DOH, Department of Social Welfare and the consultants, the teachers drawn on must be Development (DSWD), Quedan and Rural Credit compensated for their services. Guarantee Corporation (QUEDANCOR) and 24 To support this approach, a website could be case-by-case devolution of authority to LGUs developed primarily to provide know-how and with proven track records of performance and cases of best practices on watershed management avoids those that do not have the enabling to LGUs and communities. An alternative option orientation and commitment to pursue sustainable would be to tie up with existing NGOs which are integrated watershed management. skilled in local community work. Given the public goods nature of natural resources Move from de-concentration to devolution. and the large externalities affecting their Integrated watershed management will require the management, it is important to have a phased transfer of authority and responsibility to the devolution. Within the phased approach, it will be LGUs. Although the LGUs were given authority important to start with those LGUs that are willing over local watersheds (e.g., the issuance of local to assume the responsibility, allocate sufficient ordinances and the processing and endorsement of human and financial resources, and be CBFM beneficiaries), the final decision as to the accountable for resources management, while management of the watershed is still under building the capacity of the LGUs for subsequent DENR'S supervision, control, and review as devolution. stipulated by the LGC. The DENR has indicated a willingness to devolve, Given the many other mandates of the DENR, a starting with the small island provinces of large number of implemented decisions are often Siquijor, Masbate, Biliran, Romblon, Marinduque not taken in time, with the effect that and Batanes, followed through in a subsequent implementation is slowed down. Thus, the LGUs phase by the larger island groups, such as Cebu, do not view the development of natural resources Catanduanes, Mindoro and Panay. To start small as one of their key concerns and, consequently, and expand later is logical, but in the current the issues do not get priority funding. environment of fiscal tightness, there is need to accelerate, in a prioritized manner, the devolution The reluctance of the LGUs to fund the activities process beyond a few small LGUs to ensure a and/or borrow for them is partly due to the fact more rapid scaling-up. that natural resources do not yield results quickly enough, particularly if one considers the three- However, it is important to note that for some year terms of the LGU mayoral administration. activities, devolution is not possible and these will need to remain under the management of The current leadership of the DENR recognizes government. These activities transcend municipal the advantages of giving more responsibilities for borders, have a broader impact (hence, the need to natural resource management to the LGUs under be planned for on a national scale), and/or require the principle of subsidiarity, that is, that the most coordination among actors that can only be important decisions on NRM must be done on the achieved at the central level. lowest level possible. The integrated river basin approach and basin The need to separate the development of policy, authorities. Integrated river basin management is setting of environmental standards, provision of complex, can be slow and requires ownership on technical assistance to the LGUs and the part of all stakeholders. To be successful, it communities, as well as to conduit funds for must be supported by an institutional structure community projects and monitoring and that promotes implementation through evaluation to the LGUs has likewise become partnerships and it must have a decision-making accepted. What is needed now is a practicable board representing all stakeholders. transitory process with milestones and expected outputs at the various levels, all the way to full Day-to-day operations would then be run by a devolution. small secretariat headed by a general manager or executive director. The authority would This transitory framework should include in the coordinate and work closely with the Regional proposed Sustainable Forest Management Act a Development Committee (RDC). To avoid similar provision found in the Clean Water Act building a heavy bureaucracy, partnerships must (Republic Act 9275). This provision allows for a be established with other knowledge centers such 25 as schools and other government agencies to · Strengthen institutional arrangements. The provide the technical requirements. institutional set-up must be reconsidered to integrate watershed development into local The strategic role of an authority with adequate development strategies. To streamline corporate powers would be to ensure its self- implementation of watershed management sustaining capabilities. The body should develop may require integrating the 32 agencies user-fee systems, negotiate and manage the involved in water management into one collection of water fees from users, and utilize agency, under the DENR/National Water these fees to finance operations and management Resources Board (NWRB). Where of the river basin and watershed resource. The combining the two agencies is not feasible, funds collected would be plowed back to the good coordination between the partners must resource managers to further improve the quality be ensured. A bill has been drafted for an of the watersheds. Integrated Water Management Act (IWMA), but this must be reviewed to include necessary To develop a coherent river basin approach, it will provisions for watershed management. be important that a reliable baseline on the quality and quantity of resources is established. · Provide incentives for good governance. Technologies are being developed, such as that Providing incentives to communities and developed by a Japanese NGO, to assess the LGUs that are meeting their commitments to quality of watersheds using satellite photos. Such the program will be critical for sustainability. a technology could be used to develop operations A dynamic source of funding for the and maintenance strategies for upstream and incentives would be the water fees. One form downstream users, which could encourage better of incentive scheme is similar to that being community management of watersheds. In setting piloted in the LLDA through LISCOP. In this up such authorities and managing resources in the instance, the loan for LLDA is converted to a Philippines, a few key activities must be observed: grant by the government if they attain their objectives. · Develop management plans for the major watersheds. These plans are to be developed With the government's tight fiscal situation, it in partnership with all concerned is unlikely that LGU incentives could take the stakeholders. The DENR, LGUs, form of increased internal revenue allotments communities and other groups working in the (IRAs). Hence, innovative methods, such as watersheds would be responsible for the improving ability to access concessional loans preparation of the plans. The plans developed for LGUs that have delivered the basic should be easy to translate into action plans, environmental services to their communities, with clear guidelines on the inputs, tools, could be explored. human and resource requirements. They should have performance indicators and · Generate adequate funding for river basin milestones to determine implementation management. Rarely do watersheds generate success. They should also be flexible enough adequate and sustaining fees for their to allow for additions into the master plan to management. Despite this, it is important to accommodate the dynamic situations in river establish a legal basis for water fees, which basins. should generate scarce funds as well as increase ownership. The implementing rules The action plans could then be the basis for an and regulations (IRR) of the recently signed annual review and accounting of the EO 318 can make this possible. However, it performance of the resource managers. The will take some political will to impose the degree of accuracy of the plans developed will fees on the large water users in the cities and be tempered by the methodology used to urban centers. determine the availability of resources. Thus, the DENR will need to invest in more satellite In addition, to lay the basis for the levy, it and/or aerial photos to carry out the mapping. may be useful to carry out some advocacy for the concept of water as an economic good. 26 Experience shows that cities charging full which gives full private ownership of costs for their water have encouraged forestlands to indigenous people. To do this conservation of the resource. The need to adequately, it will be important to refer to the pursue rational pricing of raw water is clearly Land Use Code of the Philippines. Once the articulated in the previous and new Medium- reclassification is completed, appropriate land Term Philippine Development Plans management technologies must be applied to (MTPDP).7 Support from the economic curb erosion and other land degradation managers can be the basis for advocating the related issues. concept of water as an economic good. The question of access by the poorer communities · Develop a land use policy and prepare land would need further attention. use mapping. The Philippines has yet to develop a land use policy to guide a truly · Reclassify forestlands and take into account integrated ecosystem approach. Consequently, the rights of indigenous people. accurate land use maps are lacking although Reclassification of forest lands is becoming the recent purchase of the satellite pictures of inevitable, particularly those that are 18 the country is a good start to developing such degrees and above. Many of these areas maps. A concerted effort will need to be remain forests, despite having been converted made to ensure their availability to resource to agricultural lands. Reclassification, which managers. would need to be done through Congress, would allow for better resource management · Consolidate all databases and lessons learned. planning and use and contribute to reduced All information acquired from representative degradation. This is of primary importance cases and good practices of watershed given the pressure that most of the resources management can be prepared as training are enduring from excessive use. Poor modules. The DENR has been assisting classification has negative consequences on LGUs nationwide in developing municipal the resources. coastal databases which could be used as the basis for their planning and management. This Two recent cases illustrate the difficulties in would facilitate transfer of technology and managing such issues. In the first case, an know-how. The prospective trainers and aquifer from Tagaytay to Paranaque was consultants can use these as guideposts. This identified during the American occupation as has already been effectively done for the a sufficient water source for the future coastal communities. expansion of Metro Manila. Instead, the area was classified as an industrial zone; today, The CRM secretariat at the DENR, the this is causing serious pollution of the shallow Coastal and Marine Management Office aquifers. A second case relates to the Green (CMMO), must be more proactive in its role Circle Corps' (formerly the Gopuansoy area) as knowledge manager and provider of plan to convert a virgin forest of more than technical assistance. The Environmental 30,000 hectares into a theme park and a new Research and Development Bureau (ERDB) city facing the Pacific. must also be reoriented so that their activities become inputs to local level management In addition, reclassification efforts will need decisions. Overall, technical capacity- to take into account issues such as the building staff is more needed in the field. Indigenous Peoples' Rights Act (IPRA), Integrated Coastal Resource Management 7"Pursue water pricing to effect efficient allocation and conservation. Raw water is not currently priced to With its 7107 islands, the Philippines covers an reflect its real value leading to wasteful practices and allocations that are not in the best interest of the area of 287,000 square kilometers of coastal country. Water should be priced and allocated waters and the total coastline stretches to about according to its economic value so as to attain 17,460 kilometers. Three distinct production efficiency and sustainability in the development and systems are found in the coastal and marine areas. allocation of the resource." (MTPDP 2004-2010) 27 The first, coral reefs, account for more than 400 Based Resources Management Project (CBRMP), species that are endemic to the country and they which assisted LGUs and the communities to provide income and livelihoods to the coastal become resource managers, attempt to reduce the communities. At least 62% of the Philippines' continuing degradation. population live along coastal areas, and 56% of the 1537 municipalities are coastal towns. The Some of these communities have become self- relatively large proportion of the coastal sustaining marine resource managers. Mayor population puts enormous pressures on coastal Josephine Jumamoy of Inabanga, Bohol, one of resources, especially the coral reefs. the project beneficiaries, said that the average fish catch per fisherman has improved from 2 These reefs are under continuous threat from kilograms to 4 kilograms. New species of fish illegal fishing with the use of dynamites and and marine organisms have surfaced in the area, sodium cyanide, careless throwing of boat the incomes of small fishermen have increased, anchors, ship grounding, unregulated tourism, and fishery laws are now being followed. coral mining, and dredging. Considerable damage is also being caused by soil erosion, industrial Any integrated coastal management plan to be pollution, and fertilizer and pesticide runoff. developed must incorporate lessons learned from the experience of similar projects. In both the The second production system is made up of the CRMP and CBRMP, community organizers mangrove forests, which provide habitat to fish, empowered POs to identify the problems and shrimps, mollusks, crabs, and fry. Estimates show develop solutions where they are key participants. that the mangrove areas have been reduced from The POs were also assisted in developing their the 4,500 square miles estimated in 1900 to less networking skills to link up with outside resources than 247,362 hectares shown in 2002. The loss and were taught to be conscious about the was most rapid from the 1960s to 1970s because transparency, accountability and sustainability of of the government's policy of encouraging the their action plans. conversion of mangrove areas to fishponds and aquaculture. The opportunities for employment in In addition, the LGUs were given technical and the newly-opened aquaculture businesses soon planning capabilities to determine what needed to resulted in a rapid build-up of human settlements. be done. Municipal ordinances were passed. Local officials led coastal patrols and set up The third production system represents the sea various advisory and oversight councils. grass and algal beds, which are also important fish Sustainability was ensured through the program's habitats. The sea grass and algal beds mainly filter focus on the participatory approach in all soils entering from the erosion process and activities. stabilize bottom sediments during storms. These experiences also highlight the widest gap in The country possesses the extremely rich the current coastal situation: limited LGU biological diversity of the Austro-Asian region, capacity. While the mayors have been given full where at least half of the world's reefs thrive. The authority as resource managers under the LGC stretch from Palawan to the Sulu Seas has been and Fisheries Code, they are practically left to identified by world-renowned scientists as one of their own devices. They manage these resources the few biodiversity sites on the planet that without any organized support. To fully develop "should be preserved at all costs." Despite this, it integrated coastal zones management, the is estimated that only 24% of these resources are following must be done: in excellent condition. Sea grass and algal beds have likewise declined in area and quality. These · Provide LGUs with relevant technical biodiversity losses translate to a reduced catch for capacity to manage their coastal resources. the municipal fishermen, pushing them into a The CRMP and CBRMP experiences have spiral of poverty and environmental abuse. shown that when LGUs are given adequate know-how and orientation, they can achieve Initiatives such as those of the DENR-USAID's outstanding results. The DENR, together with Community Resource Management Program the LGUs, will need to work on (CRMP) and the DoF-World Bank's Community- institutionalizing this support system through 28 the passage of the pending CZMA which zones (20 meters to the shore from the highest integrates support to the LGUs. This law will point during a high tide), which are under also clarify conflicts in resource use and considerable pressure. Management plans policies, strengthen the LGUs' capacity to need to be developed, and such coastal plans manage their coastal resources, provide should cover protection of mangroves, sea mechanisms for the transfer of required grass and coral reefs; land-use zoning; technologies and management skills for CRM, ensuring water quality for aquaculture; and and authorize the drawing up of tenure clear zoning for industrial activity, including instruments and other stewardship mining and dredging. arrangements in favor of communities. Where there are squatters, it will be important · Expand the coverage of CRMP to other to determine the best manner of relocating coastal municipalities. Of the 832 coastal them to reduce pressure on resources and keep towns, only about half have plans and only the salvage zones public, as declared by law. about a hundred have reached the level of best An inventory of abandoned and unutilized practices. The goal is to bring at least half of fishponds is also needed so that they can be the coastal towns to best-practices level with reclassified back to forestlands (mangrove). all municipalities having an NRM plan for Guidelines on ecotourism should also be their coastal areas. From this level, the included in the plans. program would then expand on its own momentum to cover the rest of the Most important, any inventory activities municipalities. carried out should reflect the need to take into consideration the selection of priority areas · Establish a network of resource and for conservation, as required by the Wildlife knowledge centers for coastal LGUs. Conservation Act, under the guidance of the Institutionally, it may be necessary to expand Ramsar development policies8 acknowledged the CRM (now the CMMO) secretariat in the by the government. DENR and develop it into a more formal coordinating body. Today, the secretariat is · Develop a platform for providing sustainable the keeper of the lessons learned from the livelihood for the coastal communities. To CRMP and other related projects, but it only better plan, monitor and assign fishing rights, consists of a skeleton staff without the as well as to develop good management capacity to reach out and develop these techniques during and outside the fishing knowledge networks. The CRMP secretariat period, a comprehensive coastal map of could be increased to include retired marine habitats across the archipelago must professionals and science teachers residing be prepared. With such data, the LGUs would close to the LGUs. It could then have something definite to offer private sector systematically transfer the know-how to the investors interested in tapping coastal LGUs. resources. In CBRMP, the local CBRM municipal team For example, the increase in fish catch in is tasked with collecting and consolidating Inabanga, Bohol was a result of the use of these experiences. The team makes sure that better management techniques, following the these lessons are included in the local coastal inventory and mapping efforts done by development plans. The success stories from BFAR. In Alaminos, Pangasinan, the new the CRMP and CBRMP should also be made mayor is using the research data from the available over the web, including the plans and strategies that made them possible. 8This refers to the Convention on Wetlands adopted on 2 February 1971 in the Iranian City of Ramsar, on the · Conduct an inventory of current land use of southern shore of the Caspian Sea. It covers all aspects the open access areas. Inventories will be of wetlands conservation and wise use, recognizing particularly important for the areas that are wetlands as important ecosystems for biodiversity considered open access, such as the salvage conservation in general and for the well-being of human communities. 29 University of the Philippines Marine Science · Provide a system of incentives for LGUs. In Institute (UP MSI) to declare a buffer zone addition to providing LGUs with the technical around the town's famous Hundred Islands. know-how in managing resources, there will The zone will serve as a cordon of protection be a need to develop incentives to meet around the islands, allowing the destroyed coastal management objectives and increase mangroves and coral reefs to re-grow. At the the sense of ownership and management same time, the land will also be parceled out sustainability for these resources. to families and communities for raising oysters as a livelihood option. A public A potential incentive could be the use of the corporation is being organized to help the coastal resource management monitoring and communities market their produce. evaluation system to classify coastal towns according to their levels of proficiency and In Socorro, Surigao del Sur, a local fisheries track record in coastal planning and and environment code based on extensive management. Budget resources would then resource inventory and assessment guides the be allocated accordingly. This would have LGU in its coastal and marine resource the effect of encouraging those with a good management activities, which include track record to do better, and those with aquaculture zones, fish area leases, and potential to become future implementers. ecotourism. An alternative incentive could be improving On a bigger scale, New Zealand authorities the access of LGUs to patrol boats, once they mapped all of the country's coastal zones two meet the basic requirements of, for example, decades ago. As a result, they have been able mapping banca lanes in fish sanctuaries, to develop management options that allowed seaweed production areas, mangroves, sea them to multiply by more than ten times the grass and coral reefs. The incentives could be production of their fish industry on a upgraded to the funding of livelihood options sustainable basis. This was possible because for LGUs that move up the performance they knew exactly where the schools of fish ladder. were hatched, the routes the fish took to grow out areas, and the quantities during the Another alternative incentive could be various seasons. The authorities could chart improved access to financing of demand- out very precisely fishing sites and seasons, driven activities such as those funded through allowing for better management. the CBRMP. Regardless of the incentive formula selected, careful crafting is needed to Overall, it is important to note that although ensure fiscal soundness. the principle of promoting alternative livelihoods as a way to decrease pressure on natural resources is a good one, it is important Community-Based Protected Area to make sure that livelihoods promoted should Management link up with improved NRM as best as possible. The Philippine government is a signatory to the 1992 Convention on Biodiversity (CBD) and the As such, selection of livelihoods must take Convention on the International Trade in into consideration the skills and knowledge of Endangered Species of Flora and Fauna (CITES). local communities. Where possible, making In 1992, it passed the NIPAS Act, which provided existing, viable, non-destructive livelihood the legal framework for the establishment of activities more sustainable should be a first protected areas (PAs). Since the passage of the choice. For example, when working with law, the DENR has surveyed and mapped out 244 coastal communities it is better to promote PAs. Of these, five PAs have passed marine-based activities rather than land-based congressional action, the President has proclaimed activities. This may require some research to 78, while the remaining 161 have yet to be create better understanding of improved use declared as national parks. of existing resources. 30 The Philippine Biodiversity Conservation decision, from appointments of PAMB Priorities Program (PBCPP), drafted in 1997 and members to the release of IPAF funds, be updated in 2000, identified a total of 106 made at the DENR central office. The process Conservation Priority Areas (CPA) considered of restricts the ownership and initiative of the extremely high priority. A process to mainstream PAMB and its local supporters. As such, the these priority sites in the plans and programs of PAMB is looked upon as a DENR council the government, donors, grant agencies, private rather than an autonomous unit drawing sector, LGUs and environmental NGOs has strength from its local roots, as envisioned by began. The DENR has conducted consultations the NIPAS Act. with various sectors, starting with its own bureaus, to share knowledge on the components Local activities like community organizing, proposed in the program. enforcement, monitoring, protection, and information dissemination should be Parallel to the scientific review on setting decentralized to the barangay-level PAMB. priorities, the DENR-PAWB conducted an This would improve the interaction between assessment of its internal capacity to manage the the communities and the administration, protected area system under the NIPAS hopefully fostering greater ownership. In framework. Its no-holds-barred report, dated addition, this has the effect of bringing December 2003, concluded that the NIPAS Act governance to the lowest political level. has not been very effective. The IRR was reviewed and a revised version The review recommended the strengthening of was made available for public consultation policy and implementation; decentralization of before finalization. The consultation process operational authorities from the central office to should have included discussions with both the PAMBs; and making the processes the public and private sectors. The final participatory and more demand-driven. There version of the revised IRR was expected last were also suggestions on how efficiency could be February or March 2005. obtained in the implementation of the NIPAS Act, including more community participation. · Strengthen the PAMB. In addition, it will be Additional comments include the following: important to increase the cross-sectoral agency representation in the PAMB, including · Complete the classification of PAs. This LGUs, to provide a policy tool across refers to the classification of the 132 priority ecosystems and landscapes, which is PAs that overlap with the identified CPAs and cognizant of the LGC, NIPAS Act, etc. the 108 PAs (94 terrestrial and inland water Following the update of the IRR for the and 14 marine) that are not yet covered by NIPAS act, PAMB personnel will need to be NIPAS. The 112 PAs that did not overlap provided with more capacity-building with CPAs should be reassessed and, under a opportunities to enable them to function more different management regime, separated from effectively. Local level legal expertise needs those that have no significant biodiversity but to harmonize and execute NRM laws, which have historical, cultural and anthropological will need to be reviewed and provided as values, to ensure complementarity with necessary. proposed management proposals. Those areas that cannot be justified scientifically as · Empower communities. Once protected areas protected areas should be de-listed. The list have been delineated, with participation from generated should reflect the priority areas the communities, those communities living selected for implementation in the short, around protected areas represent the core medium and long term to assist the DENR in management structure for the PA system. the planning and budgeting process. They represent a key factor to the sustainability of programs implemented in the · Decentralize the implementation process to protected areas, but only if they are included give the PAMBs more autonomy. Presently, in the planning, implementation and the IRR of the PAMB requires that every monitoring of project activities. 31 trained PA managers have a career path, as This was the lesson learned from the CPPAP, with limited options, they will eventually be one of the foreign-assisted projects for key taken out from the parks system to become PAs. Most of the PAs did not attain officers of the CENRO or Provincial sustainability because of limited participation Environment and Natural Resources Office from communities around the protected sites. (PENRO). Empowerment also dictates that there is social · Improve the availability of baseline preparation, community organizing, and information. Use the species conservation appropriate technical assistance that is plans and the priority areas as the framework accessible to the communities. As they begin for both formal science and indigenous to work and plan together, the communities knowledge research, and disseminate the will need to have access to alternative results for better access by the different livelihoods that result in decreased pressure stakeholders. on the resources. The PBCPP and the National Biodiversity The type of livelihood programs will depend Strategy and Action Plan (NBSAP) contain on the community, access to financial valuable information on baseline indicators resources and ability of the community to and strategic priorities that could serve as a develop these options into viable activities starting point. The information could be used that generate income. Cooperatives would be to influence policies developed to manage one possible option. PAs. · Allow the LGUs to be more involved. · Provide funds for Protected Areas Lessons learnt from previous work in Management (PAM). When the NIPAS was protected areas show that PAs have a better developed, it was envisioned that .a large chance of success when they have the support portion of the operating funds would be of LGUs in their areas of location. Where generated from donations from donors and the ownership has been high, the LGUs have private sector and from funds generated from made financial contributions from their fees. For this reason, the law did not provide budgets for PA operations. for the allocation of funds for PA implementation; as a result, the Department of · Professionalize PA management. To improve Budget Management (DBM) does not allocate the quality of management of the protected any funds for NIPAS sites. The idea was that areas as well as give more recognition to the funds would be generated from access fees, work by the PA managers, they should be donations, leasehold payments, and taxes given similar opportunities to advance in their from sales of products from the area. careers, as in the case of scientists at the DOST. Here, the scientists do not have to However, this did not happen; instead, PA move up the administrative ranks to be donor support has gone to activities around promoted. Instead, their advance is based on PA development and management rather than the quality and quantity of their scientific supporting IPAF. Thus, not only are funds work. They earn salaries commensurate with insufficient, but the fees collected must first corresponding levels of similar ranks in the be remitted to the National Treasury before administration. they are reallocated back to the parks at levels which are generally much lower than those A similar system would encourage PA needed for adequate development. managers to work in the parks system for longer periods without losing opportunities This arrangement has often left the parks for advancement. With the recent launch by without adequate financing for operations. DENR of the Development Action Plan and a PAMBs and PASUs have often had to borrow year-long master's degree program for its PA money from the region's budget for managers, it is even more important that 32 information, education and communication to · Establishment of performance standards. The keep their operations running. DENR, together with its partners, needs to develop performance standards, based on But the bigger issue is that the protected area which the mandates of the PAMBs and system has not developed a national PASUs, LGUs, and the DENR itself can be constituency from which it can draw self- monitored. These indicators would be the sustaining support. PAWB and DENR are basis for periodic monitoring and evaluation. now working to address this so that the share The indicators will also need to follow the of the PAMB revenues can be retained at the logic of the final MFOs. local level and only that which represents the share of the national government will be · Strengthen partnerships with other remitted to DBM. government agencies. Although not prescribed in existing guidelines, PAMBs The IPAF Guidelines have now been invite the participation of other government reviewed and a revised version has been agencies as a matter of course. As a result, submitted to Congress. In the revised version, they have benefited from the relationships it is expected that the process of submitting they have built, such as in infrastructures from the IPAF to the National Treasury will be the Department of Public Works and endorsed by the RED instead of going through Highways (DPWH), irrigation systems and the PAWB central office--at least in the short plant technologies from the DA, ecotourism in term. In the long term, it is expected that only El Nido under the Department of Tourism 25% of the IPAF will be submitted will be (DOT), distribution of public lands from the remitted to the National Treasury, while 75% DAR, educational tools and participation of remains with the PAMB. schools in PA programs from the Department of Education (DepEd), alternative livelihood Even with user-fee payments, total self- options from the Department of Trade an sufficiency of the national parks will not Industry (DTI), and new technologies and happen in the near future, and DENR will fund support from the DOST. need to develop alternatives to increase funding. One option is to develop modules that encourage the private sector to invest or manage the parks on an almost self-sustaining basis. This may need to be coupled with the development of a concept of philanthropy for national parks similar to that found in developed countries. The DENR needs to promote to the public the value of PAs and biodiversity, especially as many may still consider biodiversity conservation and protected areas esoteric issues. Local communities need to understand that there is a connection between good management of biodiversity and protected areas and improved standards of living for the communities. Without this, it will be difficult to develop a constituency for PA management and biodiversity conservation. With a broad constituency it would be easier to get the attention and support of decision makers, both local and national. 33 Annex 1: Implementing the NIPAS Act: A Glance at the Implementation and Governance Resources/Parameters PROTECTED AREAS with PAMBs Responsible Agency PAMBs Mandate RA 7586 or the NIPAS Act Program 1. Conservation of biological diversity should be ensured. 2. Partnerships between the DENR and other interested parties, including indigenous peoples should be promoted and established. 3. Park establishment requires a Presidential Proclamation and a Congressional enactment and final demarcation of the area. Implementation and 1. The NIPAS-NPPSC, chaired by the Secretary, is tasked with enhancing Governance policy and program coordination. 2. The Secretary reports to the President for transmission to Congress the status of the NIPAS, regulations in force, and other pertinent information and recommendations on an annual basis. 3. The PAWB, guided by the Undersecretary for Environment and Research, plans, coordinates, monitors and provides technical assistance. 4. The IPAS technical coordinating committee at the PAWB provides coordination among DENR programs. 5. The PAWD coordinates and monitors area management and wildlife resources conservation in the region. 6. The PAMB, chaired by the RED, enforces policies, rules and regulations and represents the interest and concerns of local and indigenous communities. 7. The PAMB: (a) allocates the budget, funds proposals, decides on planning, protection and administration matters based on the General Management Planning Strategy; (b) monitors and evaluates park personnel, community and NGO activities on biodiversity conservation, socio-cultural and economic development, and reports to the NPPSC and the IPAF board. 8. The PASU, the DENR site manager, performs administrative and regulatory duties. The PASU also acts as seizure officer; recommends to CENRO disposal of seized items; issues special use permits; recommends issuance of certificates of land classification, certificates of management zoning classification, certificates of origin, discharge and transport permits, and other permits for natural resources and other products collected/gathered from the area; recommends the issuance of cutting permits with prior clearance from the PAMB to manifested planted trees in buffer zones for volumes of 5 to 20 cubic meters; and helps review the EIS or EE of projects proposed to be implemented. 9. The PASU prepares and recommends for PAMB approval the Annual Work and Financial plan and reports to the PENRO and PAMB regularly. Issues and Concerns 1. NIPAS Act may not be as responsive to the needs of the program, based on ten years of implementing the law. 2. Not all protected areas have PAMB. 3. PAMB effectiveness is not optimized. Membership is not always based on qualifications and there is a lack of conflict resolution mechanisms to resolve park issues. 4. There is no formal intensive training for PA managers and no career path or professional development for the PA managers. 5. IPAF is not optimized to provide support funding to PA. 6. There are too many sites on the pipeline for proclamation as PAs. 34 Annex 2: Actions to be Taken Per Sub-sector, Prioritized by Time Horizon PRIORITY AREA: INTEGRATED COMMUNITY-BASED WATERSHED MANAGEMENT INSTITUTIONAL REFORMS Short Term (Up to 2007) Targets Performance Action Plans Lead Indicators Agency Streamline DENR streamlined based on Documentation, Review policies/mandates FMB/NWRB DENR new needs or mandates, proposing the (e.g. EO 192) and match /DENR provisions in integrated water streamlining of the review with new needs (e.g. management bill and SFM bill bureaucracy prepared devolution, streamlining and supported by an EO agency, or watershed and DAO. management) and staff mix, deploy staff where it is most needed More effective and cost-efficient All agencies involved Form a technical team from FMB/NWRB management of the water agree on priorities and agencies directly managing /BSWM-DA/ resources by the 32 agencies direction; agency water resources, define NAMRIA/ using the river basin as the working arrangements incentives for inter-agency NPC/NIA/ management unit; provided for drafted; staff deployed, arrangement with DENR as PNOC in the Integrated Water and incentives plan lead agency Management Bill (IWMB) devised 1.3 M ha. with improved Incorporation of Adoption of improved cross- DENR, management of watersheds and watershed management sectoral watershed government forestland areas by government and development plans management with better corporations, corporations and military and in respective LGUs and performance standards using military and civil organizations CLUP; setting up of satellite images as a base line; civil MENROs or watershed review by functional cross- organizations Strengthen management councils; sectoral working group of the Partnerships conduct of monitoring management plans of the with Other activities by a proposed 1.3 M ha. of Agencies watershed management forestlands; improved task force; conduct of organization of planning and watershed management budgeting processes for planning workshop integrated management with with LGUs, military DENR as lead agency and NGOs Resolution of policy conflict on Clearer guidelines Based on existing MOA, FMB/DENR the use of natural resources in developed and issued to strengthen dialogue between CADC/CADT areas; provisions facilitate consent in use DENR and NCIP and develop strengthened in the SFM Bill of resources in a joint set of guidelines CADC/CADT areas for indicating clearer roles, commercial purposes, functions and as in the case of private complementation landowners Devolve and Comprehensive national DAO promulgated, Draft provisions in the SFM FMB/NWRB Streamline watershed data located in consolidated data bill, revise DAO 97-2 stating /BSWM-DA/ Staff Based NAMRIA adopted by DENR and deadline to complete survey, NAMRIA/ on Watershed NAMRIA and for execute region level NPC/NIA/ Client's resource accounting set accounting of natural PNOC Needs in place and used by resources, staff area of work agencies concerned, based on client's needs staff in place 35 Targets Performance Action Plans Lead Indicators Agency Decentralize Better managed watersheds or Number of LGU Develop a strategy for DENR, and Devolve ­ island ecosystems providing development plans that supporting the devolution of LGUs a Phased adequate water supply to include integrated management of watersheds; Approach households, irrigators and watershed management develop an incentive structure industrial users in their plans for for LGUs to improve financing and management of watersheds; implementation develop monitoring system (demand-driven based) for community-managed watersheds, including the indicators to be monitored Retool the CENROs can: (i) accelerate the Reduction in the Reorganize and strengthen Regional CENRO and granting of security of tenure backlog of CBFMA CENROs based on its Offices, Establish instruments to reduce areas of granting by 20% a year; mandates and deliverables FMB/ DENR Career open access; and (ii) adequately increase in number of through training of personnel, Development support communities and LGUs CBFM POs that have linking of staff to local Path for in their management of CBFM viable livelihood universities and NGOs to CBFM activities, in particular providing options by 20% every enhance their deliverables of Personnel the needed TA in, e.g., improved year; increase in social services; and establish management techniques number of watershed career paths for Community (upland/lowland), and livelihood management councils to Development Officers and enterprise development improve cross-sectoral aspects planning and management of resources; and increase in number of LGUs with forest land use plans Deploy With increased co-management As part of the LGUs Include as provision in IRR FMB/DENR, Village arrangements with the LGUs, watershed/forestry of EO 318, draft DAO criteria LGU, PO Forester there is potential to deploy development plan for identifying and supporting Federation while locally based village foresters9 implementation village foresters; determine Retooling for each CBFM and CADT sites arrangements, develop appropriate incentive plan; CENRO criteria for hiring pilot plan in CBRFA and village foresters, the CADT/CADC areas; conduct cost of which would be advocacy work with LGUs included as part of the plan. Establish Establishment of River Basin Incorporated in the IRR Studies undertaken to assess DENR, River Basin Authorities (RBA) of the Clean Water Act experience, nuances and NWRB, Authorities (CWA) and in the IWM viability of RBAs, advocacy LGUs, DILG and SFM Bills the for the creation of RBAs; creation of RBA with critical review of existing adequate authority to policies to support CWA, negotiate for payment IWM and SFM in their of upland ecological congressional hearing services or water fees 9 POs can be trained as village foresters. 36 INSTITUTIONAL REFORMS Medium Term (Up to 2010) Targets Performance Action Plans Lead Agency Indicators Watersheds in major river Number of LGUs with Continue the DENR, LGUs basins devolved to LGUs good performance implementation of phased under the guidance of RBA records taking over devolution of activities to and community watersheds management of a % of LGUs of good providing adequate water the 18 major river performance; supply to households, basins (% to be implementation of irrigators and industrial assessed) incentives awarded to Decentralize and users, island ecosystems LGUs with best practice Devolve under a stable ecosystem based on agreed criteria Improved management of Number of LGUs Broaden advocacy to DENR, CBFM projects (municipalities and increase LGU support to FMB/CENRO, provinces) participating improving the quality of LGU in CBFM projects and CBFM projects; assist the co-management LGUs to review structure agreements; increased for service delivery to resource inputs of CBFM projects LGUs to communities to do NRM and WM River Basin River Basin Authorities Enhanced CWA, IWM In addition to advocacy DENR, Authorities institutionalized, lowland and SFM bills and or for the creation of RBAs NWRB, LGUs, water users sharing cost of EO to facilitate the in major and critical river DILG managing watersheds creation of RBAs with basins, develop master adequate authority to plans for their negotiate for payment implementation; of upland ecological implementation of an EO services to support legal basis for RBAs in identified river basins; develop a system to determine water users fees for the RB identified Second Phase CENROs are now able to Number of CBFMA Continue to strengthen Regional Retooling of the provide a large part of the POs having viable CENRO as extension arm Offices, FMB/ CENRO and TA assistance to CBFM livelihood and/or of DENR; training and re- DENR Career communities, such as enterprise development training of CENRO Establishment for community organizing projects; number of personnel to be more CBFM Personnel (CO), technical assistance, Community community sensitive; technology transfer, Development Officers continue advocacy on livelihood and enterprise established as career CBFM as investment development assistance officers; number of opportunities for private CBFM projects with sector; and establish investment tie-ups with stronger linkages with DA private sector in enhancing CENRO skills especially in livelihood and enterprise development 37 Implement Plan More responsive and Draft plan is supported Draft plan to shift EMB EMB/DENR to Strengthen strengthened EMB that is by an AO from a program approach EMB proactively supporting to a function-based LGUs, the private sector organization; separation and civil society of regulatory and policy offices; strengthen pollution monitoring and adjudication cases; EIS is impact-based; public disclosure of industry performance; hire needed staff POLICY REFORMS Short Term (Up to 2007) Targets Performance Action Plans Lead Agency Indicators Amend Relevant Enhanced/amended LGC Priority bill filed in DENR to review existing FMB/DENR Sections in the Congress to amend the policy and provide Local relevant sections of the options for Government Code code amending/enhancing the provision in the LGC giving the final authority to the LGUs to manage the natural resources; resolutions from the league of provinces and municipalities endorsing the amendment sought Integrated Revised Integrated Water Provisions for the Set up technical team and FMB/DENR Management of Management Bill and its unified laws drafted and codify all laws, AOs, Watersheds ­ eventual passage reconciling endorsed by various circulars, etc., related to Unify All Laws provisions found in NGAs; provisions watershed management; Governing Water numerous laws and incorporated in the draft provisions for and Watersheds proclamations revised Integrated incorporation into the Water Management Integrated Water Bill. Management Law, reconciling all laws governing protection and management of watersheds or water Integrated National Land Use Plan Drafted strategy to Set up technical team to FMB/DENR Management of including the strategy using hasten implementation review the National Land Watersheds ­ the watershed as a of sustainable Use Plan and draft Bring Together community-based management of strategy to implement All the Key ecosystem planning unit watersheds DAO 01-99 using lessons Players from projects, e.g., WRDP and SPISP Integrated Continued classification of Guidelines completed Review current guidelines NAMRIA/ Management of forestlands; designation of and implemented; forest and experience and DENR Watersheds ­ resource managers for open classification increased identify options to Best-Use Plan for access forestland; associated enhance classification of Open Access land use policies defined forestlands; draft land use Areas and policies and best-use Unclassified plans for open access Forestlands in the forestlands Watershed 38 Targets Performance Action Plans Lead Agency Indicators Integrated FLGMAs allocated Guidelines on Joint DENR-DA-NEDA FMB/Regional Management of according to their best uses management of grazing research on FLGMA, Offices/DENR Watersheds ­ Best and aforementioned are lands in watershed preparation of guidelines, Use of Grazing provided for in the SFM Bill areas developed regional offices Areas in the implement best-use Watershed policies IRR of EO 318 IRR of EO 318 provides a Community-based Working group to draft FMB/DENR firmer policy environment approaches prevalent in IRR incorporating for community-based management of suggestions from the management, private sector, forestlands and NRM Way Forward and LGU involvement in all watersheds provisions Action Plan aspect of forestlands in the SFM bill management Passage of SFM Both Houses of Congress Bill filed as a priority Review the SFM bill for FMB/DENR/L Act agree on provisions of the bill, and NAPC on gaps and insert updates; GU/POs bill board as champion of establish linkage with /WOOD the bill NAPC and seek their INDUSTRY assistance to lobby SFM SECTOR bill as priority; identify champion in Congress; recommend SFM bill inclusion as priority of LEDAC through its linkage with the President's priority to ensure sources of water through watershed management POs can easily comply with Increase in the granting Simplify requirements FMB/DENR CBFMA requirements for of DENR's target to with more focus on PO tenure instrument granting reach at least 20% maturity; enhance DENR thereby improving annually, or around field staff skills to work sustainability of CBFMA 800,000 ha. in the with POs mainly as activities second phase of facilitators rather than as implementation regulators; DENR field Simplify staff providing demand- Procedures for driven technical services the CBFM to POs and LGUs Program Communities benefit from Viable enterprises built Grant RUP to ready FMB, Regional judicious implementation of around resource communities; develop and Offices, DENR the RUP utilization in the establish indicators of community, no community maturity to recorded abuse of RUP carry out watershed management; develop options for establishing alternative livelihoods for POs Support and Final draft carries the key Frequent assistance by Form technical group to EMB/DENR Guide the provisions the DENR to the advise Congress on Drafting of the technical committees in provisions of both bills; NEMA/PEPA Congress lobby for adequate funding of activities 39 POLICY REFORMS Medium Term (Up to 2010) Targets Performance Action Plans Lead Indicators Agency Passage of IWM bill Law responsive to Work with champions in FMB/DENR current and anticipated both chambers and lobby future mandates on for its passage, assist community-based congressional committees integrated watershed and NR management, Integrated devolution and Management of partnerships Watersheds Stable policy on integrated Insertion of pertinent Work for inclusion of NEDA/FMB community-based watershed provisions in IWM law; provision in IWM Bill, /DENR management with the RBA a special fund is set up prepare IEC on bill Policy as the lead institution, water to accommodate water Office/ users' fee and transferable users' fee payments DENR water rights. RBA located in the DENR Simplify POs can comply with 20% of DENR's target Implement the simplified FMB/DENR Procedures for CBFMA requirements under CBFM, around requirements for CBFMA the CBFM 800,000 ha./yr, is granting Program achieved; none or reduced backlog in applications for CBFM Passage of SFM SFM bill enacted into law Final deliberation by Continue lobbying for the FMB/DENR Act Congress SFM bill /LGU/POs /WOOD INDUSTRY SECTOR 40 GOVERNANCE REFORMS Short Term (Up to 2007) Targets Performance Action Plans Lead Agency Indicators Decentralize, Number of watersheds Number of LGUs Draft guidelines following FMB/DENR Devolve and managed according to their demanding local the provisions on the Provide Demand hydrological characteristics autonomy to manage Clean Water Act granting Driven Funds for by LGUs with support and their watersheds under financial incentives to ENR Project oversight by a river basin the oversight of a river deserving LGUs authority basin management authority Provide Demand- Increased private sector Partnership between the Determine how to link FMB/Regional Driven Funds for participation in CBFM and private sector and CBFM and PA into the Offices/DENR/ ENR Project PA programs CBFM holders and/or President's 10-point Private PAs/ PAMBs, increase agenda especially in financial in park revenues and income and job Institutions trust funds established generation; study global for CBFM and PA models of successful program creative funding mechanisms such as trust funds, or package CBFM and PAs as investment sites for the private sector Strengthen Clarified expectations 20% compliance by all Revisit agreements, FMB/DENR Transparency and between the various parties to new identify and agree on new Accountability of resource managers and the performance, M & E performance, M & E and Resource DENR; information on the and feedback systems feedback system using Managers status of forestlands within the next 2 years; satellite images and aerial provision of budget for photos as base line for purchase of updated performance and the data base and regular criteria and indicators for on-the-ground SFM; develop LGU monitoring performance rating and mechanism to improve local strategic planning Strengthen Enhanced public Percentage of civil and Form a working group FMB/DENR Transparency and accountability by civil and military reservations composed of the military, Accountability of military entities on the providing public NPC, NIA, PNOC and Resource management of their information on the DENR to evaluate the Managers respective forest status of the NR in their status of the NR in their reservations, strengthening respective areas areas and agree on the transparency and best management for their accountability respective areas, use aerial photographs or satellite images as baseline Strengthen Improved working relations 25% of CBFMAs have DENR and CBFM FMB/DENR Transparency and between the CBFM holders new agreements on holders review, identify Accountability of and their respective performance, M & E and agree on new M & E, Resource CENROs and PENROs and feedback system performance, and Managers within the next two feedback system years 41 PRIORITY AREA: INTEGRATED COASTAL RESOURCE MANAGEMENT INSTITUTIONAL REFORMS Short Term (Up to 2007) Targets Performance Action Plans Lead Agency Indicators Provide a System Viable coastal management Number of LGUs Based on the CRMP DENR/DA/ of Incentives to plans developed and implementing updated rating system, assess NEDA/LGU LGUs and implemented by LGUs and management plans; number of LGUs with communities coastal municipalities number of LGUs with potential for adopting functional M & E ICRM and determine the systems to collect data type of TA needed; for updating develop incentives for management plans; encouraging improved passage of council ICRM at the LGU and resolutions delineating community level municipal waters as determined by NAMRIA; number of LGUs receiving Galing Pook awards or other awards recognizing performance Provide the LGU Technically sound National Number of LGUs Formation of inter-LGU DENR/DA/ the Technical Integrated Coastal and receiving technical alliances to manage LGU/PNP/ Capacity to Marine Management assistance from NGAs, neighboring coastal Coast Guard Manage their Strategy (NICMMS) e.g,, NAMRIA, to waters, e.g., small island Coastal Resources implemented to support delineate coastal CRMs; formation of an LGUs and communities waters; preparation of inter-agency working documentation of best committee to draft practices in coastal NICMMS as an interim management compiled measure prior to the for use by LGUs; passage of the Coastal develop a coastal Zone Management Act resource database in and resolve conflicts in DENR field offices resource use, clarify with cooperation of policies, allow tenure LGUs and communities instruments and control pollution from the uplands INSTITUTIONAL REFORMS Medium Term (Up to 2010) Provide the LGU Province-wide, with larger Number of LGUs Continue advocacy for DENR/DA/ the Technical islands having CRM implementing coastal improved CRM; improve NEDA/LGU Capacity to programs, coastal resources management plans; M & E to track Manage their stabilized and recovering delineation and performance of LGU and Coastal Resources inventory of coastal community management resources at least 50% of CR; continue the completed; number of development of an LGUs having access to incentive system to sufficient TA on coastal encourage broad uptake management of good practice CRM 42 POLICY REFORMS Short Term (Up to 2007) Targets Performance Action Plans Lead Agency Indicators Provide the LGU Substantial number of Key provisions in the Same inter-agency DA-BFAR/ the Technical coastal zones under Fisheries Code (and working group that DENR/LGU Capacity to improved management also identified in drafted NICMMS to /PNP Manage their NICMMS) drafted for review and draft IRR for Coastal Resources the development of several provisions in the IRRs to ensure their Fisheries Code and implementation, e.g., conduct field consultation those declared as for the IRR overfished areas, licensing of fishers/boats, field consultations conducted, and endorsement of IRRs by league of coastal municipalities POLICY REFORMS Medium Term (Up to 2010) Provide the LGU Passage of the Coastal Zone Increase in number of Draft the Coastal Zone DENR/DA/ the Technical Management Bill, tenure ha. of mangrove Management Act; provide PNP/Coast Capacity to instruments supported by plantations; increase in technical assistance in Guard Manage their stronger policy, ban on number of tenure public hearings Coastal Resources cutting of mangrove instruments granted; plantations repealed and CZM Bill filed in replaced by arrangements Congress for sustainable management GOVERNANCE REFORMS Short Term (Up to 2007) Targets Performance Action Plans Lead Indicators Agency Provide the LGU Acceptable standards and Number of coastal areas Inter-agency working BFAR- the Technical accountability in CRM co-managed and or group identifies local area DA/DENR/ Capacity to managed under MOAs; resource centers, e.g. LGU/ Manage their length of time within universities to provide Academe Coastal Resources tenure rights are needed TA and draft the granted; clear relevant TOR and MOA accountability between LGU and local benchmarks developed resource centers; development of incentive schemes for participating, as appropriate Expand coverage Coastal municipalities with Percentage of the 840 Inter-agency working BFAR- of CRMP to other and implementing coastal coastal municipalities group drafts an annual DA/DENR/ Coastal management plans displaying good and multi-year plan to LGU Municipalities practice indicators, e.g. increase CRM updated coastal data; municipalities active FARMCs; active Bantay-dagat Make Inventory Reversion of the idle, Percentage of idle Review existing data on DENR/DA- of Current Land abandoned, and non- mangroves becoming fishponds and update the BFAR/LGU Use in Open productive fishponds to productive; increase in inventory specifically 43 Access Areas in mangrove forestlands; fish production; number identifying all idle, Coastal, Idle, salvage zones accessible to of fishponds under abandoned and non- Abandoned or the public; managed coastal rehabilitation; and productive fishponds; Protected Area tourism industry no/ha. of salvage zones determine how to improve Fishponds reverted to public productivity of fishponds access through partnership with DA-BFAR and respective LGUs; identify a strategy for dealing with illegal occupants of salvage zones PRIORITY AREA: COMMUNITY-BASED PROTECTED AREA MANAGEMENT INSTITUTIONAL REFORMS Short Term (Up to 2007) Targets Performance Action Plans Lead Indicators Agency PAMB able to Increased LGU and New IRR provides for Technical committee PAWB/DE operate in an community management of decentralized and drafts changes to the NR/DOF Autonomous PAs devolved administration NIPAS-IRR such that manner; of PA; increase in PAMB is decentralized to Decentralize number of PAMBs; barangay level, implementation PAMB policies become membership is based on process municipal ordinances capability, and appointed by Regional DENR; administration of IPAF devolved; activate the executive committee of the PAMB; increase training for PAMB, e.g. conflict resolution skills and finance management Strengthen Greater appreciation and Rate and consistency at Develop capability PAWB/ Partnership with participation by other which PAMBs actively building activities for DENR other Government government agencies of PAs resolve stakeholder PAMBs, e.g., conflict agencies conflicts in PAs; no. of resolution mechanisms, PAs receiving support team-building programs from other government and partnership advocacy agencies Empower Increased community PA management and Technical committee PAWB/ Communities ownership of PA development plans drafts changes to the DENR developed with the NIPAS-IRR indicating participation of specific steps on social communities; mobilization to increase communities community participation; represented in barangay ensure quick delineation PAMBs; decline in of buffer zones where illegal activities in PAs communities can engage in sustainable livelihood through inclusion in the updated PA IRRs Professionalize PASU becomes a regular PASU considered as Develop TOR; obtain PAWB, PA Management position; PASU positions regular position; approval from DBM; train DENR are occupied by highly number of PASUs with and accredit to qualified professionals in higher education degree international standards; PA management in PA management explore use of scholarship program for training 44 INSTITUTIONAL REFORMS Medium Term (Up to 2010) Give the PAMB PAMBs with independent IPAF administration at Review and revision of PAWB, more Autonomy; fund sources from PA fees regional Land Bank the IPAF guidelines by DENR, Decentralize the and revenues from offices; PAMB with legal and the IPAF LGUs, Implementation sustainable use of resources financial statements governing board; focus NGOs Process in the PA showing financial work on devolving independence; management of the IPAF; incorporation of self- lobby for PA laws to financed PAMBs allow full retention of PA revenues; draft action plans to enhance revenues from PA and financial systems for PAMBs. Empower Increased community Increased sustainable Technical committee PAWB, Communities ownership of PA and livelihood or enterprises drafts plan to provide DENR, improved quality of life of in buffer zones of PA; livelihood and/or LGUs, PA communities decreased illegal enterprise assistance to NGOs activities in PAs communities Professionalize PASU as a regular position PASU as regular Advocacy on the PASU PAWB, PA Management with levels of the position position with highest position, follow up with PAMB, reaching as high as Director level of position DBM, continue to train DENR level, providing an incentive equivalent to Director PASUs to upgrade their and better management of approved by DBM capabilities protected areas POLICY REFORMS Short Term (Up to 2007) Targets Performance Action Plans Lead Indicators Agency Revisit the NIPAS A more responsive and Amendments to the Form an inter-agency PAWB- Act effective IRR for the NIPAS IRR of the NIPAS Act policy review group to DENR/LGU Act stressing more review the bio-physical community processes and social concern and easily achievable provisions of the law; technical requirements; make PAMB more PAMB composition, autonomous; allow more less partial to political LGU authority through a demands; NIPAS and devolution of IPA Fund management management of the IPAF; devolved; PAMB professionalize PA staff, resolutions as LGU develop guidelines on ordinances review and invasive species and adjust the type of GMOs banned acts in PAs Resolve Less stakeholder and agency DOJ issues opinion on Review NIPAS, CARP, PAWB- overlapping conflicts in protected areas conflicting provisions; IPRA, LGC, etc., to DENR/BMS policies and MOA among various resolve conflicting -DENR/ management agencies involved in provisions; train field NCIP/DA- regimes in PAs PA management staff in conflict BFAR/DAR prepared to minimize resolution; DENR to /LGU conflicting interests; resolve cases of greater harmonization overlapping management of various management regimes in PAs; stronger approaches and regimes linkages with partner within the DENR agencies to avoid though DAOs conflicts through MOAs 45 GOVERNANCE REFORMS Short Term (Up to 2007) Targets Performance Action Plans Lead Indicators Agency Follow Priorities All PAs are in agreement Location of 132 PAs Technical committee reviews PAWB/DE defined in the with the CPAs and the 108 PAs not location of 132 PAs that NR/ PBCPP yet under NIPAS overlap with CPAs followed by NAMRIA reconciled with CPAs; the 108 PAs not yet included in remaining 112 PAs the NIPAS; rate the 112 PAs rated according to that do not overlap with the biological, historical, CPSAs according to their cultural and biological, historical, cultural anthropological values and anthropological values as defined in the based on the definitions set by PBCPP the PBCPP Establish Effective management of Base line for Draft clear performance and M PAWB/ performance the PAs biological managing key species & E system for PAMBs and DENR standards diversity drafted PASUs; seek ownership by IPs on conservation plans 46 References Department of Environment and Natural Resources. Environment and Natural Resources Policy Issuances, 1987-June 2003. Department of Environment and Natural Resources, 2003. Capacity Assessment for Protected Areas Management. Department of Environment and Natural Resources, 1998. The Philippine Strategy for Improved Watershed Resources Management. Department of Environment and Natural Resources, 2001. Philippine Forestry Statistics. Department of Environment and Natural Resources, 2002. Philippine Forestry Statistics. Department of Environment and Natural Resources, 2003. Philippine Forestry Statistics. Department of Environment and Natural Resources, 2004. Mines and Geosciences Bureau Statistics Field Consultations with Multi-sector Natural Resources Manager from Three Regions in the Country, 2003. Gonzales, M. assisted by Hagart- Alexander, B., 1998. An Assessment of Coastal and Marine Resources Management Needs in the Philippines. Manila Observatory Environmental Science for Social Change, 1999. Mining Revisited: Can An Understanding of Perspectives Help? National Power Corporation, 2003. Statistics. National Commission for Indigenous Peoples, 2004. Medium-Term Philippine Development Plan for Indigenous Peoples. World Bank, 2003. Governance of Natural Resources in the Philippines: Lessons from the Past, Directions for the Future. wb96218 M:\RURALDEV\IDAHPR\IdahMain\Phillipines\DENR\Follow-onAction Plan\Way Forward Action Plan_draft5_FINAL_FINAL.doc 05/10/2005 6:37:00 PM 47