PROJECT BRIEF 1. IDENTIFIERS: PROJECT NUMBER: PROJECT NAME: DURATION: IMPLEMENTING AGENCY: EXECUTING AGENCY: REQUESTING COUNTRY OR COUNTRIES: ELIGIBILITY: GEF FOCAL AREA: GEF PROGRAMMING FRAMEWORK: Philippines – Coastal and Marine Biodiversity Conservation in Mindanao First 3 years of planned 12-year APL The World Bank Government of the Philippines Department of Environment and Natural Resources (DENR) Republic of the Philippines Philippines ratified the CBD in September 1993. Biodiversity OP 2 (Coastal, Marine, and Freshwater Ecosystems) 2. SUMMARY: In this project, the GEF would aim to finance the incremental costs of promoting coastal and marine biodiversity conservation and sustainable use in the coastal waters of Mindanao, Philippines. Mindanao has received little attention to date with regard to conservation of its marine biodiversity resources. The GEF-assisted Coastal and Marine and Biodiversity Conservation Component (CMBC) of the proposed Mindanao Rural Development Project (MRDP) will remove the barriers to mainstreaming marine and coastal biodiversity conservation in coastal zone development by: (a) establishing community-based management of marine sanctuaries; (b) strengthening local capacity to address marine ecosystem management issues; (c) enhancing the knowledge base for sound ecosystem management and decision- making, including monitoring and evaluation for sustainable long-term marine ecosystem management; and (d) developing policy and action plans for marine biodiversity conservation and mainstreaming it into coastal development plans. The concept is based on the precept and the experiences that show that good marine management can simultaneously conserve and protect biodiversity and increase fisheries productivity. These activities would have considerable replication potential in Mindanao as part of the MRDP that would be an Adaptable Lending Program of 10-12 year duration. The lessons learned during the first three-year phase would be applied to subsequent phases when additional coastal provinces would be included under the MRDP with the cumulative experience strengthening implementation of the CMBC. These lessons would also have applicability in other regions of the Philippines and other tropical countries. 3. COSTS AND FINANCING: GEF: CO-FINANCING: - Project - PDF: Subtotal GEF: -IBRD: -Govt. of Philippines and LGUs: Subtotal Co -Financing: TOTAL PROJECT COST: US$ 1.25 million n/a US$ 1.25 million US$ 3.60million US$ 1.20 million US$ 4.80 million US$ 6.05 MILLION -IBRD: -Govt. of Philippines and LGUs: Subtotal Associated -Financing 5. OPERATIONAL FOCAL POINT ENDORSEMENT: 4. ASSOCIATED FINANCING: Name: Ramon J. P. Paje Organization: Department of Environment and Natural Resources US$ 26.40 million US$ 8.80 million US$ 35.20 million Title: Undersecretary Date: March 9, 1999 6. IMPLEMENTING AGENCY CONTACT: A. Robin Broadfield, Senior GEF Coordinator, East Asia Region Phone (202)-473-4355, FAX (202)-522-3256 Email: rbroadfield@worldbank.org Glossary of Acronyms ADB APL ARMM BFAR CIDA CBCRM CMBC CBD CEP CENRO CFAD CITES CPDO CPPAP CRM DA DAF DENR ERDS FRS GEF IBRD FARMC LGSP LGU MAO MBCS MFARMC MNR MRDP NIPAS NGO PAMB USAID WWF Asian Development Bank Adaptable Program Loan Autonomous Region of Muslim Mindanao Bureau of Agriculture and Aquatic Resources Canadian International Development Agency Community-based Coastal Resources Management Coastal and Marine Biodiversity Conservation Convention on Biodiversity Coastal Environment Program Community Environment and Natural Resources Office Community Funds for Agricultural Development Convention on International Trade of Endangered Species City Planning and Development Office (Cotabato City) Conservation of Priority Protected Areas Project Coastal Resources Management Department of Agriculture Department of Agriculture and Fisheries of ARMM Department of Environment and Natural Resources Ecosystem Research and Development Sector Fisheries Resources Project Global Environmental Facility International Bank for Reconstruction and Development Fisheries Aquatic Resources Management Council Local Government Support Program Local Government Unit Municipal Agricultural Officer Marine Biodiversity Conservation and Environmental Management/Monitoring Specialist Municipal Fishery and Aquatic Resources Management Councils Ministry of Natural Resources (now DENR) Mindanao Rural Development Program National Integrated Protected Areas System Non Governmental Organization Protected Areas Management Board United Sates Agency for International Development World Wildlife Fund BLOCK 1: PROJECT DESCRIPTION 1. BACKGROUND Marine and Coastal Setting and Biodiversity The Philippines is an archipelago of more than 7,000 islands and islets. Its discontinuous coastline of about 18,000 kilometers is longer than the coastline of most countries in the world. Because of the declaration of the Exclusive Economic Zone, Philippine marine territorial waters cover around 2.2 million square kilometers, 88 percent of which is oceanic waters, and the remaining 12 percent coastal waters. Eighty percent of the provinces, 70 percent of the towns and 17 of 25 cities are situated along the coastline. Half of the Philippine population resides in coastal communities and are somehow dependent on the coastal waters. About 5 percent of the total Philippine labor force are employed here. Fish production contributes approximately four percent of the Gross Domestic Product. The degradation of the Philippine fisheries habitat is a major concern. The nearshore waters are heavily overfished. Continuing rapid population growth and migration to coastal areas will further exacerbate overfishing and over exploitation of coastal biodiversity and resource use. More than 70 percent of the Philippine mangrove forests have already been denuded and converted for aquaculture or reclaimed for other land uses. Only 150,000 hectares of the original mangrove cover of 450,000 hectares in 1918 remain. Of the remaining, only 6 percent are in excellent condition. Coral reefs are similarly degraded. Seventy percent of Philippine coral reefs have been damaged and only 5 percent remain in excellent condition. The Project Area The coastal area of the provinces of Maguindanao and Sultan Kudarat in Mindanao, Philippines is rich in terms important coastal marine ecosystem. Covering a total coastline of 275 km, including the Island of Bongo, coral reefs, seagrass beds, mangrove forest and extensive mudflats characterize the whole span. The variability of marine life in the area is evident despite serious lack of scientific studies. Three of the four species of endangered sea turtles including the green turtle, Chelonia mydas, olive ridley (Lepidochelys olivacea) and the leatherback (Dermochelys coriacea) use the area for its feeding and nesting grounds. Other endangered mammals like the dugong (Dugong dugon), cetaceans (whales and dolphins) and whale shark are reportedly common sightings in the nearshore areas. An initial inventory of organisms suggest very high marine biodiversity with 46 genera of both soft and hard corals, 83 species of reef fishes and 8 of the 12 species mangroves and all 8 species of seagrasses. Areas with >42 number of coral genera is considered highly diverse (Veron, 1994), and the number could readily compare with Palawan, Indonesia and the great barrier reef of Australia. Similarly, despite the disturbed state of seagrass beds, all 8 species of seagrasses were observed including the very rare Philippine species, Thalassodendrum ciliatum. On the fisheries side, total production from the Sultan Kudarat, Maguindanao and Cotabato City was 26,912 metric tons in 1996. This figure represents 1.90% of the total Philippine marine production. Despite the abundance of fish, the production of small-scale fishersn=3775) amounted to only 4,412 tons or about 1.16 t per fisher per year. 1 Moro Gulf and Illana Bay are the major fishing grounds. The major fisheries resources include the tunas (Thunnus albacares, Katsuwonus pelamis), scads (Decapterus spp.), sardines (Sardinella spp. Dussumiera spp.) and mackerels (Rastrelliger spp.). The tuna resources found in Moro Gulf is part of the straddling tuna stocks in the central west pacific whose distribution range from the South China Sea to Indonesia and up to Papua New Guinea. Interestingly, scanty scientific evidence suggest that Moro Gulf, together with the Sulu Sea is one of the breeding grounds of the yellow fin tuna. On the political side, the area suffers from considerable instability due to opposing political interests. These are more of a concern at the national and regional level than at the community level. The intervention proposed under this component would be directed at coastal communities that would be assisted to restore, conserve, and protect marine biodiversity and coastal resources in their immediate vicinities and would not be directly affected by the political problems. Through their proper management and conservation of their immediate coastal resources and biodiversity, they will concurrently benefit from increased returns from fisheries that would be the incentive for sustained appropriate management. Threats to this Biodiversity Among the major threats is the commercial fishing that encroaches on municipal fishing grounds through legal loopholes and a generally inefficient enforcement of laws and regulations. The coastal marine ecosystems and their associated fauna and flora are threatened by current use and activities. As a result, many poor fishermen resort to the use of non-sustainable fishing methods such as explosives (dynamite, home made bombs using fertilizers), poisons (plant extracts, cyanide), fine mesh nets have decimated fish fauna and damaged habitats such as seagrass beds and coral reefs. Similarly, upland activities associated with agriculture and mining have triggered massive sedimentation that silt deposits of the major rivers have altered the immediate and adjacent ecosystems. Two sites have been selected for assistance under the Phase 1 of the MRDP -- The Paril-Sangay Protected Seascape in Sultan Kudarat and Bongo Island site in Maguindanao. The Paril-Sangay Protected Seascape contains a wide range marine species and habitats some of which have global importance, including nesting areas for three species of marine turtle and habitat for the dugong. DENR has formulated a plan for the rehabilitation of the Paril-Sangay site that could be rapidly implemented with the assistance proposed under project. Near-shore coral reef habitats in parts of Bongo Island have been seriously damaged by blast fishing, and some of the island’s mangroves have been degraded from unmanaged cutting. The biodiversity and marine ecology surrounding the Island could quickly be restored through interventions under the project. Annex D provides details of the marine biodiversity and condition of the coastal resources at each site. Detailed social assessments of the selected areas can be found in Annex E. Government Response and Project Strategy The GOP has legislated a number of key laws, policies, regulations and guidelines to reverse the trend of coastal environmental degradation and to foster sustainable coastal resources management (CRM) and fisheries. The report entitled Legal and Jurisdictional Guidebook for Coastal Resource Management in the Philippines (DENR/DILG/DA-BFAR/CRMP 1997) primarily intended for LGUs with their much expanded role in CRM is currently the best available codification and analysis of the many and sometimes laws, policies, orders, regulations and guidelines on coastal and marine matters. Coastal Resource Management in the Philippines is guided by the principles embodied in the Constitution, PSSD, MTDP, National Marine Policy and agenda 21 prepared by the Philippine Council for Sustainable Development. Likewise, CRM projects must be consistent with the Government commitments to international treaties and agreements such as UNCED, Basel Convention, Montreal Protocol, UNCLOS, Convention on Biological Diversity (CBD) and CITES. 2 The key institutional and legislative actions taken by the he GOP to address the root causes of its degrading coastal environment include the following: The Department of Agriculture and Natural Resources was divided into 2 agencies in 1974, being the Department of Agriculture (DA) and the Department of Environment and Natural Resources (DENR). Within the DA, the Bureau of Fisheries and Aquatic Resources (BFAR) was established and mandated to develop and manage the country's fisheries; Through a series of cabinet modifications before the 1990s, the DENR was given a major responsibility for the exploration and development of natural resources including fisheries (EO 192 of 1987). The DENR's role in CRM became even more significant with the enactment of the National Integrated Protected Areas System (NIPAS) law (RA 7586 of 1992) which declares eight categories of protected areas; The Local Government Code (RA 7160 of 1991) has devolved specific fishery management functions (regulatory and enforcement) to the local government units (LGUs). This landmark piece of legislation also encouraged the participation of the people through Peoples Organizations (PO) /Non-governmental Organizations (NGO) in matters of public concern, such as coastal resources management; Executive Order No. 247 was adopted on May 18, 1995 and provides guidelines and procedures for prospecting biological and genetic resources in the public domain, and its implementing rules and regulations were approved by the DENR Secretary on June 12, 1996 via Department Administrative Order No. 96-20; and The most recent and significant law regarding coastal resources is the RA 8550 or the Philippine Fisheries Code of February 1998 which provides for the "development, management and conservation of the fisheries and aquatic resources, integrating all laws pertinent thereto.” There is a number of other government bodies with mandates and functions pertaining to CRM. These are the Department of Interior and Local Government (DILG), Department of Transportation and Communication (DOTC), the Philippine Coast Guard (PCG) of the Department of National Defense (DND), the Philippine Council for Aquatic and Marine Research and Development (PCAMRD) under the Department of Science and Technology (DOST) and Department of Tourism (DOT). 2. Project Objectives The development objective of the proposed Mindanao Rural Development Project (MRDP), that would be an Adaptable Program Loan, is to develop, improve, and diversify the livelihoods of rural and indigenous peoples primarily through increased agricultural and fisheries production, to improve rural infrastructure and to strengthen rural institutions and coastal resource management for the purpose of alleviating poverty in Mindanao. This objective would be achieved by: Improving LGU capability for agricultural development planning and implementation; Establishing viable institutional, financial and community-based systems for supporting rural development and natural resource and biodiversity conservation within targeted agricultural and fishing communities, in 5 to 6 provinces during APL phase 1 of the MRDP; and 3 Increasing incomes, providing additional employment opportunities, improving food security, and improving natural resource management by the targeted agricultural and fisher folk communities. The global environmental objectives of the proposed GEF-assisted component of this project are to conserve and restore globally important coastal habitats and related marine biodiversity in Mindanao by mainstreaming biodiversity and marine ecosystem conservation in community development and in the coastal fisheries sector. Many coastal regions of Mindanao have received little international, national, and local attention to conserving natural marine resources. The proposed GEF-assisted component would further assist in creating sanctuaries and protected habitats for endangered species found in the area, including species of dugong and sea turtle. This project will also help to advance a model with broader applicability for mainstreaming biodiversity considerations in a sector with crucial social, economic, and environmental dimensions throughout Mindanao (including the ARMM), the Philippines, and tropical regions. Through the implementation of the proposed MRDP, the lessons learned from first phase activities would be applied to arrest degradation and restore coastal and marine biodiveristy in subsequent phases. The subsequent phases that would expand project implementation to include additional qualifying sites in the coastal provinces of Mindanao included under the project. 3. Project Description Project Approach: The proposed rural development program is designed to cover provinces in Mindanao with high levels of poverty incidence and a largely agricultural and fisheries base. Given that 55% of the rural population in Mindanao is poor, and in recognition of the fact that poverty alleviation requires a sustained approach, a phased long term program, using the Adaptable Program Loan (APL) instrument is being considered. This will permit the Bank to provide sustained support for the program, possibly covering between 10 to 12 years. It would be designed as a targeted poverty reduction program for the rural poor and indigenous communities of Mindanao, focusing particularly on interventions necessary to increase productivity and incomes of small and landless farmers and fisherfolk. Regarding the latter, the project would provide support the establishment of marine protected areas for the conservation of marine biodiversity that would concurrently serve as spawning and nurturing areas for commercially important local species in addition to those of global importance. The program of physical investments to be supported under the project would be demand-driven and based on local and community priorities. The proposed GEF-assisted Coastal and Marine Biodiversity Component would be implemented following the basic strategy of the MRDP. Outline of Project Components: In support of poor, rural smallholder farmers and fishers, the project is being designed to target key constraints which have been inhibiting growth in agricultural production and improvements in agricultural productivity and coastal resource management and marine biodiversity conservation. The request for GEF assistance would be incremental to the project’s emphasis upon improvements in agricultural productivity and specifically pertains to the conservation of marine biodiversity through implementation of the Coastal and Marine Biodiversity Conservation Component (CMBC). Of the proposed project components, coastal investments under the Community Funds for Agricultural Development Component would specifically complement the GEF-assisted activities and the Overall Program Management Component would include regional DENR and DA/BFAR representation that would guide the implementation of the CMBC. The overall The project components would be the following: Coastal and Marine Biodiversity Conservation (CMBC) (Total Cost US$1.25 million; GEF US$1.25 million): To promote the conservation of marine biodiversity of global importance and restoration of degraded coastal areas, the project would implement a GEF-assisted community-based resource management component that would support: (i) a resource assessment survey of selected sites with marine biodiversity of global significance; (ii) the application of a participatory planning 4 process for identification, development and management of the conservation areas and appropriate management regimes; (iii) strengthening of local marine resource surveillance by coastal communities linked to existing enforcement agencies; (iv) formulation and implementation of a monitoring and evaluation program; (v) assistance to the development of alternative income generating activities for those involved in livelihoods that are particularly destructive to the marine environment which would also be complemented by the Community Funds for Agricultural Development Component described below; and (vi) the training of DENR/BFAR officers and NGO/PO staff in sustainable marine and fisheries management methods as trainers for fisherfolk, school age children, community leaders, and other stakeholders in the vicinity of sites selected as protected areas to be assisted under the project. Community Funds for Agricultural Development (CFAD) (Total Cost US$3.2 million; no GEF Financing): The total planned allocation for the CFAD under the MRDP is US$8 million for five provinces selected for inclusion under Phase 1 of the MRDP. It is thus estimated that approximately US$3.2 million (40%) would be allocated for Sultan Kudarat and Maguindanao Provinces. The MRDP project would aim to (i) strengthen technical support for poor smallholders and fishers in coastal and inland areas; (ii) ensure better returns from land and water resource, (iii) encourage income diversification (particularly for those heavily involved in the overexploitation of natural resources); and (iv) improve linkages between individual farmers and fishers, local cooperatives, and People’s Organizations with rural financial institutions to improve credit availability to help revitalize local rural economies. Institutional Capacity Building and Program Development (Total Cost US$4 million; no GEF financing) would support overall Program Management and Administration, Monitoring and Evaluation, and for technical studies and survey work for subsequent phases of the APL. Specifically, it would include measures aimed at: (i) strengthening role and capacity of the local development councils and boards for rural development planning, related resource management and monitoring; (ii) linking technical skills enhancement related to the specific programs to be implemented, as outlined above (infrastructure, agriculture, fisheries, natural resource conservation, etc.); (iii) strengthening provincial level planning and allocation of funds for rural development and natural resource conservation and use ; (iv) building an M&E capacity locally; and (v) supporting the national government agencies in adapting to their new roles in supporting LGUs under devolution. This support would also be extended to the CMBC. As part of the activities under the CMBC, Protected Area Management Boards (PAMB) would be formed, if nonexistent, or strengthened for each site selected for assistance under the project. In addition, one environmental officer with a background in marine resources management would be assigned by the DENR to each of the two Community Environmental and Natural Resource Offices (CEBRO) administering each of the two project sites through the three years of Phase 1. These officers would have backgrounds in marine resources management and would be provided additional training under the project at marine resource management institutes in the Philippines. The training would focus on the methods of establishing and sustainably managing a marine conservation sites and protecting biodiversity. Toward the end of the second year of the project, additional provinces would be identified for inclusion under Phase 2 of the MRDP. Assuming that five or six additional coastal projects would be included with a total of 10 new conservation sites to be supported under the project, about 10 additional officers would reassigned to work on the CMBC – one for each site. It is expected for the proposed third and fourth phases of the project, that some of these experienced officers would be transferred for the identification and development of additional qualifying sites identified under those phases. Other Project Component (US$28 million; no GEF financing): The Rural Infrastructure Component would include the (i) rehabilitation and new construction of rural roads, (ii) expansion of communal irrigation systems (CIS) and small water impounding projects for irrigation; and (iii) 5 improved access to rural water supplies. Coastal and Marine Biodiversity Conservation Component Coastal and Marine Biodiversity Conservation (CMBC) Component (Total Cost US$1.25 million; GEF US$1.25 million) Detailed Features – Phase 1 of MRDP The design of this component for the first phase of the APL is to focus on assisting activities in two provinces in Mindanao, Sultan Kudarat and Maguindanao, where other project activities would also be implemented and could support coastal management. The first phase of the APL would also be used to work with communities at two sites that were selected via consultation during preparation of the component to formulate management plans for the protected areas. The selected sites are: (i) ParilSangay Protected Seascape, Kalimansig, Sultan Kudarat Province; and (ii) Bongo Island, Parang, Maguidanao Province. Development of these sites under the project would begin during for the first year of phase 1 of the APL, community consultation would continue with training conducted, and resource assessment and monitoring initiated at the two selected sites. Lessons learned from these Phase 1 sites would be applied at qualifying sites selected for inclusion under Phase 2 with the cumulative experience applied in subsequent Phases of the MRDP. Resource assessment survey of selected conservation sites (Total Cost US$0.47 Million; GEF US$0.47 million). This would be one of the first activities to be undertaken where resource profiling would include the collection and compilation of all relevant information on the biophysical features of the area, inventory of flora and fauna, and the determination of endangered and threatened species, in addition to those already identified (Annex D). An initial area plan would be developed that includes the demarcation of protected area and delineation of the different management zones (e.g. strict protection zones, sustainable use zones, restoration zones, habitat management zones, multiple use zones and buffer zones). Under this plan, initial management measures based on the resource inventory would be recommended. These community-based initiatives may include, but not be limited to, the imposition of closed fishing periods for certain fish species, particularly during spawning season, the adjustments/replacement of certain fishing gears, and/or fishing techniques to conform to environmentally friendly fishing strategies. These assessments and plans would be coordinated by the Ecosystem Research and Development Sector (ERDS) of the DENR with assistance from national and international consultants. During this phase, identification of additional sites for mangrove reforestation is among the activities that would be included. Application of a participatory planning and management process for identification and development of protected areas (Total Cost US$0.06 million; GEF US$0.6 million): It is expected that local NGOs would be recruited to work toward awareness building about the threats to marine biodiversity and resultant adverse impacts to fishers’ livelihoods. For the first phase of the project, the two sites noted above that were selected through stakeholder consultation would be planned in detail, developed and managed through continued community participation. For additional qualifying sites that would be selected for assistance during subsequent phases of the project, the planned strategy under Phase 1, with adjustments from lessons learned during that phase, would involve all stakeholders being consulted and involved in the identification, planning, development, and subsequent operation to enhance biodiversity conservation and optimal coastal resource use. To augment local knowledge and experience, representatives from Peoples Organizations (PO) in other areas in the country (e.g., Bais Bay of Dmaguete, Apo Island, Palompon Leyte, etc.), where successful coastal marine management and marine protected area experience has concurrently led to improved biodiversity conservation and greater returns from fishing, would be invited to visit the POs at the project sites to share their experiences and how obstacles were overcome. Some representatives from the MCBC 6 sites would also visit the areas of the Philippines where community-based good management practices have been demonstrated. Strengthening of local marine resources surveillance by coastal communities linked to existing enforcement agencies (Total Cost US$0.09 million; GEF US$0.09 million): Two activities may be undertaken, the training of stakeholders in community-based surveillance to complement existing agencies and the reorientation of the existing enforcement agencies on newly passed laws (NIPAS, Local Government Code, Fisheries Code, etc.) and regulations. Strengthening of the capabilities of enforcement agencies is expected with the installation of a community-based radio communications network in the protected area and the procurement of a chase boat (equipped with binoculars and cameras with telephoto lenses) to guard each of the two selected areas. Resource monitoring and evaluation program (Total Cost US$0.38 million; GEF US$0.38 million): Under this component, monitoring would be undertaken by the Ecosystem Research and Development Sector (ERDS) of the DENR on a yearly basis. Assistance would be provided to the ERDS by national and international consultants. Basic key indicators would be identified, and data would be collected to monitor the progress of the conservation area in terms of biodiversity and to monitor the recovery of damaged habitat. The acquisition of monitoring equipment built into the project would improve the monitoring capability of the ERDS. Also, during the latter part Phase 1, monitoring of other livelihood components like mariculture of seaweeds, shellfish, and cage fish culture (independently or in combination) may also be undertaken. Impacts upon water quality would also be assessed and assisted by the project. Assistance to the development of alternative income generating (AIG) activities (Total Cost US$0.10 million; GEF US$0.10 million): This component would be specifically targeted to benefit those involved in livelihoods that are particularly destructive to the marine environment. It would also be complemented by Community Funds for Agricultural Development Component mentioned above. In this component, the selected NGO (who would be identified in close consultation with the concerned community and LGUs) would help fishing communities in the identification and development of mostly water-based alternative livelihood activities. The main target group would be those poor coastal fishers who practice destructive fishing techniques. Opportunities for AIG activities include crab fattening, seaweed culture (possible improvement of existing culture techniques and technology), combination of fish cage with seaweed and/or bivalve culture and the transplantation of giant clams (Tridacna sp.) Similarly, developmental skills in fish processing may improve products and, therefore, give value added to the fish produced. Bee keeping is another option that can be conducted, particularly in the vicinity of mangroves. For all activities proposed for grant assistance under this component, an environmental analysis would be conducted by the DENR/NGO in advance of approval and implementation, showing each activity would be environmentally benign. Ecotourism, though considered, may not be a demand-driven option during the first three-year phase of the project due to instability in the area. The NGO would also assist their respective communities with the preparation of proposals for grant support from the CFAD of the MRDP, following the general guidelines for the project. Training of DENR/BFAR officers, LGU/NGO/PO staff, and schoolteachers as trainers in sustainable marine and fisheries management (Total Cost US$0.15 million; GEFN US$0.15 million). Those trained would be educators for fisherfolk, school age children, community leaders, and other stakeholders in the vicinity of sites selected for assistance under the project. This component would involve educating all levels of the community in the benefits of marine biodiversity conservation, sustainable fisheries, and optimal marine resource use. The training of the trainers would be conducted at one of the higher level education institutions and institutes that have a suitable curriculum on coastal resources management. Those trained through these sessions would 7 subsequently conduct workshops and lead classes on the information learned. These workshops would be conducted after the trainer consults with the communities on the condition of their respective coastal resources. From this knowledge base, the trainer would apply the technical information obtained from his/her training courses on marine biodiversity conservation and coastal resource management. This training could also include on-site investigations including diving at the project sites. 4. Project Cost Estimates (U.S.$ millions) Total Cost Component A. Rural Infrastructure Roads Establishing Aquatic Sanctuaries Irrigation Water Supply IBRD GOP/ LGU GEF 28.00 17.00 10.00 1.00 21.00 12.75 7.50 0.75 7.00 4.25 2.50 0.25 8.00 6.00 2.00 C. Institutional Capacity Building and Program Development 4.00 3.00 1.00 D. Coastal and Marine Biodiversity Conservation (Base Case) Resource assessment survey of selected conservation sites Application of a participatory planning and management process for identification and development of protected areas 1.25 1.25 0.47 0.06 0.47 0.06 Strengthening of local marine resources surveillance by coastal communities linked to existing enforcement agencies 0.09 0.09 Resource Monitoring and evaluation program 0.38 0.38 Assistance to the development of alternative income generating (AIG) activities 0.10 0.10 Training of DENR/BFAR officers, LGU/NGO/PO staff, and school teachers as trainers in sustainable marine and fisheries management 0.15 0.15 B. Community Funds for Agricultural Development TOTAL 41.25 40.00 Precise baseline and incremental costs are estimates to be refined during further project preparation. 8 1.25 5. Global Benefits and Target Populations The areas considered for protection host three species of marine turtles and dugongs whose distribution range have been shrinking due to habitat destruction. The project site will become an important and substantial addition to their natural distribution range. The project will reap significant benefits on the conservation of this globally important areas with its host of rare species (Thalassodendrum ciliatum), highly diverse corals. Through the protection and restoration of habitats, the fisheries community will be the prime beneficiary through improved catch. Moreover, significant lessons for replication in succeeding areas for implementation could be drawn from the various activities and approaches used in the project. The project would target the poor by providing alternative livelihood and extricate them from nonprofitable and destructive livelihood activities. Through community organizing by the NGOs, environmental awareness and educational campaign especially for the younger generation would translate into values that would pay handsome benefit for later generations. 6. Institutional and Implementation Arrangements The project would be implemented over a three-year period as Phase 1 of the planned APL. The Department of Environment and Natural Resources (DENR) is tasked to undertake the process for the proclamation of specific pilot areas to be protected following the provisions stipulated in the NIPAS Act (Republic Act 7586). The DENR would also work directly with local staff the Bureau of Fisheries and Aquatic Resources (BFAR) of the Department of Agriculture (DA), as necessary. The DENR and People’s Organizations would also inform the Philippine Coast Guard for its intervention should any infractions and illegal, prohibited activities take place in or in the vicinity of the project areas that would, in particular, though not be limited to, adversely impact the sites developed under the component. Once declared as protected, the implementation will be taken over by the Protected Area Management Board (PAMB) as stipulated under Section 11 of Republic Act 7586 and Chapter V of the implementing rules and regulations (DAO No. 25, Series of 1992). Representation of the stakeholders (fishers, peoples organizations, cultural minorities) to the board should be maximized. The Protected Area Superintendent (PAS) shall be the chief operating DENR officer at the site and shall handle both the administrative and regulatory function of the protected area. In order to ensure soundness in the implementation of various activities of each module, these activities should be contracted out to competent NGOs or research groups. For example, for the inventory of species, the task should be given to the scientists of the National Museum. Alternatively, if the DENR’s Ecosystem Research and Development Sector (ERDS) has skilled staff who can do the work, the ERDS could undertake it with assistance from the National Museum, as required. Training components of the project shall be given to the training department of the DENR or in the absence of expertise, should be contracted to qualified groups from the academe or NGOs who have local experiences. The detailed design and implementation of the proposed resource assessment and resource monitoring and evaluation components would also be assisted by national and international consults with backgrounds in marine biodiversity conservation. The project would also use the community-based approach to allow the stakeholders and resource users to have a direct hand in the management of the environment and resources within their jurisdiction. 9 Flexibility to carefully phase implementation of project component is necessary in order to be able to incorporate lessons learned so that project’s objectives and activities are corresponding adjusted during project implementation. Block 2: Project Rationale 7. CAS Objectives Supported by the Project CAS document number 15362-PH dated February 15, 1996 – Date of latest CAS discussion – Progress Report (R98-41): March 24, 1998 The Bank’s overarching mission is to help the Philippines are (i) sustaining economic growth through sound macroeconomic policies; (ii) strengthening public sector management; (iii) strengthening infrastructure and facilitating private sector participation; (iv) alleviating poverty and upgrading basic social services; and (v) supporting sustainable natural resource management. The linkages between marine biodiversity conservation, sustainable fisheries management and poverty alleviation are fully supportive of CAS objectives and are the foundation for all proposed project investments and GEF grant assistance. 8. GEF Operational Strategy and Program Objectives Addressed by the Project The Philippines ratified the Convention on Biological Diversity in October, 1993. The project is consistent with the GEF Operational Strategy for Biodiversity, and addresses GEF Operational Program Number 2 (Coastal, Marine, and Freshwater Ecosystems). It directly addresses OP objectives (conservation and sustainable use), including in-situ protection and sustainable use in vulnerable and threatened habitats. The project is consistent with COP guidance and the Jakarta Mandate in that it promotes conservation and sustainable use of vulnerable marine habitats and species by promoting community management and access to alternative livelihoods. It will test new models for conservation and management of marine areas in an area recognized as having some of the richest marine biodiversity in the world. The project responds to COP3 and COP4 guidance through capacity building of local institutions and communities and an ecosystem approach to coastal management. It also focuses on sectoral integration and economic incentives by linking conservation practices to development opportunities under the associated MRDP financing. The Philippines is rich in terms of marine biodiversity. Even though the project sites have been little surveyed they are known to harbor rich marine resources, including rich coral reefs, sea grass beds and mangrove habitats. Through support for conservation measures for marine threatened and endangered species, including marine turtles and dugong, the project will provide better protection to migratory species and support the objectives of the Bonn Convention on Migratory Species. The project attempts to mainstream coastal conservation into regional development by demonstrating that sound management practices will lead to restoration and recovery of marine habitats and species. It is expected that lessons learned will be replicated in other coastal areas in Mindanao in later phases of the MRDP project. 9. Main Sector Issues and Government Strategy The main issues facing the conservation and sustainable management of marine resources in the Philippines are the: control of over-fishing and poaching by unlicensed external fishers; prohibition of destructive fishing techniques such cyanide, muro-ami and blast fishing; 10 provision of knowledge of sustainable fishing practices; use of fine mesh nets, enforcement of closed fishing periods during key spawning seasons; need to establishment of marine sanctuaries and the conservation key nurturing areas such as mangroves; and prevention of the capture of threatened and endangered species, including marine mammals and sea turtles. The GOP strategy to address these issues are embodied in its February 19, 1998 “Republic Act No. 8550” which is “an act providing for the development, management and conservation of the fisheries and aquatic resources, integrating all laws pertinent thereto, and for other purposes” and in the National Integrated Protected Areas System (Republic Act No. 7586 dated June 1, 1992) that was primarily established to ensure the conservation of biological diversity and the use and enjoyment of protected areas. The Coastal Environment Program (CEP) was established by the DENR in April 1993 to coordinate the management of coastal ecosystems in the Philippines. The CEP has five major components; (i) Coastal Habitats and Biodiversity; (ii) Endangered Species; (iii) Coastal Industries and Pollution; (iv) Resource Inventory and Assessment; and (iv) Research and Special Projects. The legislation of the above Acts and the establishment of the CEP demonstrate the GOP’s commitment to conserving and sustainably managing coastal resources and biodiversity. 10. Project Alternatives Considered and Reasons for Rejection The project rejected the approach to identify all areas for possible protection and conservation in Mindanao. Instead, the project focused only on two specific sites in two adjoining provinces. This is part of the phasing of the project implementation where experiences and lessons learned from work with these sites will be adapted and applied for succeeding areas for consideration. It would also give more flexibility and evade the “straight jacket approach” where pre-determined sites offer less flexibility but would have obvious planning advantages. Fishing is one of the worst forms of ecological intervention and cessation of fishing activities is a drastic solution to biodegradation. This approach was rejected because of the enormous social and economic consequences. Over 15,000 people will be affected and the fish supply in the area as a cheaper source of protein for the populace would be seriously affected. Instead, species-specific regulation of some gears and specific closed fishing periods to promote conservation will be considered, depending on the results of a detailed inventory and the results of the resource assessment of the area. 11. Major Related projects Financed by the Bank and/or other Development Agencies Conservation of Priority Protected Areas Project (CPPAP) (IBRD; US$20 million; (1994-2001) The objective of this project is to conserve biodiversity and to sustainably develop natural resources through the establishment of a system of reserves. The project includes biodiversity conservation in terrestrial, marine, and freshwater habitats. Examples of successful activities implemented under this project have been and will be considered during the implementation of the proposed Coastal and Marine Biodiversity Conservation Component (CMBC) of the MRDP. The CPPAP’s implementation is currently rated as satisfactory. Community-based Resource Management Project (IBRD; US$50 million; 1998-2003) This projects coastal and nearshore fisheries activities include establishing of artificial reefs and fish sanctuaries, replanting of mangroves, and protecting beaches. The experience with establishment of 11 mangroves and fish sanctuaries provides relevant experience to assisting with the achievement of the development objectives under the CMBC. Coastal Resources Management Project in Central Visayas Region (IBRD; US$3 million; 1986-90) The experience from this project of directly involving LGUs in project implementation and with various marine management technologies has been useful in assisting with the design of the CMBC. Fisheries Resources Management Project (ADB; US$89.1 million; 1998- 2004) This project largely focuses on (i) improvements to fisheries management in 18 of 26 priority bays in the Philippines (including follow on work with sites developed under the FSP discussed below); (ii) support for the alternative livelihood development for fisherfolk; and (iii) institutional strengthening of national, regional, and local level public sector agencies involved in fisheries. The Fisheries Sector Program (ADB; US$80 million; 1989-95) The goals of this project were to: (i) rehabilitate the ecological status of the coastal zone; (ii) reduce extensive poverty; and (iii) improve the productivity sector. The design and strategy pursued under this project provided important lessons with regard to the design of the CMBC, particularly with regard to the necessity of strengthening community-based fisheries surveillance capacities, the importance of providing alternative livelihoods to poor artisanal fisherfolk, and means of extending knowledge of coastal management at the barangay and People’s Organization levels. Coastal Resource Management Project (USAID; US$22 million; 1992-2000) The experience from this ongoing project has been helpful in designing the management and livelihood development activities of the CMBC, particularly from the standpoint of policy analysis and formulation and small-scale sustainable, low-cost, and environmentally sound enterprise development. The prior experience and continued advancements achieved under this project would have direct relevance to the CMBC. 12. Lessons Learned and Reflected in Proposed Project Design Lessons learned from past coastal resources management projects (CRM) in the country showed the following: (i) CRM or CBCRM programs are likely to be successful when government support for local institutions are strong and where state policies and regulations are consistent with the needs of the populace; (ii) that local government officials and personnel have very limited knowledge about coastal and marine environment as well as community organizing; (iii) enforcement of laws and regulations is better if given to the fisherfolk or stakeholders; (iv) that CRM projects for poverty alleviation has not been fully addressed; (v) a thorough and detailed knowledge of the area and its resources is a prime consideration before any management plan could be developed; and (vi) community organizing is an effective approach for effective community participation in decision making and education campaign. These lessons have been incorporated into the design by using the community-based approach where the enforcement and protection component, the monitoring, and part of the evaluation would be implemented by the stakeholders after undergoing proper training. Inventory of species and water quality analyses would primarily be conducted by the DENR’s Environmental Research and Development Service (ERDS) with assistance from the National Museum, as required, for the former, and training by a university for the latter. 12 The design of the project is simple, flexible and focused on a two specific project sites where the stakeholders are given chance to manage the resources which belong to them. They would be trained to do so under the project. The role of the local government units is also emphasized with the plan to “train and inform” the local government personnel on the issues of coastal marine environment. Considerable guidance for the design of the CMBC was gained from the preparation of the Indonesia: Coral Reef Rehabilitation and Management Project (COREMAP) in which community participation was key to project design and has been further incorporated in project decision making and activities taken up during implementation. One important lesson learned under the CPPAP was that when effective environmental management and biodiversity conservation activities are implemented by coastal communities and the benefits, such as increased resultant fisheries productivity, are clearly seen, the communities have the strong incentive to sustain the management for their own benefit. That management concurrently helps to conserve the environment and protect biodiversity. 13. Indications of Borrower Commitment and Ownership There is keen interest in the DENR at the national level, in Region 12, and by the Autonomous Region of Muslim Mindanao to support the Coastal and Marine Biodiversity Conservation component of the proposed MRDP. The endorsement letter accompanying this proposal from the GEF Focal Point in the DENR demonstrates the GOP’s commitment to the implementation of the component. Also, local officers of Community Environmental Resource Offices (CERO) of the DENR in the project area welcomed the possibility of assisting with the implementation of the component. Captains of the barangays and Fishers Organization consulted during preparation of the component very much looked forward to the potential opportunities that would come with the component toward improving resource use that would result from the proposed conservation measures. 14. Value Added of Bank Support A strong leadership role is required given the magnitude of issues and the number of donors working in the sector and the impact of investments of other sectors on coastal resources and marine biodiversity. The Bank is in a unique position to play that role given its experience in the sector, particularly in the East Asia region, and its understanding of what is needed to manage the sector (acquired through project and sector work). It is also in a position to build partnerships with experts in the sector and NGOs, other institutions, and donors. Block 3: Project Preparation 15. Has a Project Preparation Plan been Agreed with the Borrower? Yes. The preparation plan included an initial Bank mission in May 1998 during which a majority of the national agencies directly and directly involved in the conservation of marine biodiversity were consulted. In addition, LGUs, People’s Organizations, and fishers were consulted during a visit to Mindanao. One output from that mission was the June 1998 consultant’s report entitled: “Coastal and Marine Management needs in the Philippines.” Subsequently, a pre-appraisal Bank mission for the MRDP was conducted in February-March 1999 during which the project areas in Maguidanao and Sultan Kudarat Provinces were visited, stakeholders consulted, this proposal was prepared. A subsequent visit for fine tuning the proposal is planned for May-June 1999 when the MRDP would be appraised. 13 16. Has Recipient Drafted a Project Implementation Plan (PIP)? No. The project implementation plan for the Coastal and Marine Management component would be incorporated in the overall PIP for the MRDP in advance of project appraisal that is scheduled for May/June 1999. 17. Advice/Consultation Outside Country Department (i) (ii) (iii) (iv) Within the World Bank: ENVGC, EASRD, EACPH Other international agencies: UNDP, ADB, ICLARM NGOs: WWF/KKP Philippines, Bilateral agencies: USAID 18. Issues Requiring Special Attention a. Economic and Financial Incremental cost annex attached – Annex A. b. Technical The main technical issue that could arise under the project is the capacity of local DENR/CERO officers. Many of these officers who have been assigned to work in coastal areas and on the CEP were former Forestry Officers. They often have little experience marine resource and biodiversity management matters. The project would provide training for directly involved officers who would also be complemented by national and expatriate Marine Biodiveristy and Environmental Management/Monitoring Specialists and NGOs familiar with coastal issues. See Annex D. c. Institutional The local government units can make or unmake the success of the project. To ensure smooth implementation, local government units must be “briefed” in detail and whenever, possibly undergo special training so as to fully understand and appreciate the project. Rapport between and among various agencies concerned with the implementation of the project as well as those created independently (e.g. FARMC) should be clearly worked out and their respective roles defined. d. Social/Political There are a number of social and cultural conflicts and other political disturbances in the project areas that could affect the outcome of the component. These include: (i) violent skirmishes between tribal groups; (ii) cultural incompatibilities that are religion based; (iii) political instability due to hostilities among political groups; (iv) extreme rural poverty that compromise log-term management strategies aims at environmental and biodiversity conservation and protection; and (v) piracy in coastal waters. The project design has taken these concerns into consideration. It has been determined that through consultation during preparation, that the approach to directly involve the barangay and local people’s organizations into the design, implementation, and operational aspects of the component would greatly help to overcome these potential social problems which mainly pertain to regional and national issues and not to local communities. See Annex E. 14 e. Resettlement No voluntary or non-voluntary resettlement will occur under the coastal and marine component. f. Environmental Overall the project would lead to improvements in the coastal environment by discouraging destructive fishing techniques and improving fisheries management which would result in conservation of biodiversity and sustainable resource use. The only potentially adverse environmental impacts that could result from the component would be the impacts of fish cage culture upon the marine environment due to (i) pollution from discharge of fish wastes, (ii) impacts on wild fish populations such as grouper if large scale harvesting of wild juveniles is undertaken, and (iii) the impacts on populations of low valued fishes as feed for the cultured fish. Under the component, only small-scale opportunities would exist for development of fish cage culture under the livelihood development component. In addition as noted above under the Research Sub-component, analyses of the impact of existing fish cage culture on water quality would be monitored and options for culturing feed fish, such as tilapia fingerlings on shore, would be explored. g. Stakeholder Participation The primary stakeholders are the local villages near and adjacent to the areas under consideration. These are composed people of multi-cultural origins that include the indigenous and migrants. Involvement of these local communities in management decisions concerning the protected areas and natural resource use is an essential part of the project. Other stakeholders include the seaweed farmers of Bongo Island, the local and regional government units, and the fry collectors who have expressed optimism during discussions with them as part of project preparation on their possible direct participation in the project through the community based-approach. These discussions included both technical and social assessment sessions with fishers, People’s Organizations, and LGU officers from February 6 – 26, 1999 in barangays adjacent to the project sites in Sultan Kudarat and Maguindanao Provinces. h. Sustainability and Risks Project sustainability is addressed at three levels: technical, institutional, and financial. Technical Sustainability: the various components including the monitoring and evaluation and habitat restoration and conservation of biodiversity appear to be technically sustainable. Institutional Sustainability: the sustainability of community based approach in management of protected areas is less secure as institutional sustainability depends largely on the commitment of various organizations, specially by local government units, to the project. Also crucial would be the participation of the NGOs in assisting the community in organizing themselves and help implement some of the major activities of the project. Financial Sustainability: Since the financial benefits would be directly accrued by the communities implementing the sub-components, the incentive to continue the sustainable management practices would be highly probable. Concurrently, these improved practices would not only improve their livelihoods but also conserve and protect marine biodiversity within the project areas. 15 LIST OF ANNEXES Annex A. Project Design Summary Annex B. Incremental Cost Analysis Annex C. STAP Roster Technical Review Annex C1. Response to STAP Review Annex D. Description of and Rationale for Selection of APL1 Sites Annex E. Summary of Social Assessment and Participatory Needs Annex F. On-Site Management Sites Proposed for GEF Financing Annex G. Maps 16 ANNEX A PROJECT DESIGN SUMMARY Narrative Summary Sector-related CAS Goal: 1. Poverty Reduction 2. Strengthen Public Sector Management 3. Supporting Sustainable Natural Resource Management Key Performance Indicators Monitoring and Evaluation Reduced incidence of rural poverty within target areas in participating provinces Periodic surveys; mid-term and final project evaluations Improved service delivery in support of better defined rural development goals and targets Restored and sustained management of marine and coastal ecosystems and biodiversity Program/Project Development Objective: 1. Improved well being of small holders and rural poor through sustainable increase in productivity, and diversification of rural economic activities in targeted poverty areas/communities (Program to cover potentially 24 provinces; initial phase to target 4 to 5 provinces). 2. Devolution and local autonomy in rural development planning and implementation is enhanced. Annual resource assessments at selected project site Critical Assumptions (Goal to Bank Mission) Political commitment and financial support to actively pursue programs and policies targeted at poverty reduction and sustainable marine resource management and biodiversity conservation (Objective to Goal) 1. Increase of productivity higher corn and palay yields; increase in area planted to diversified crops. GVA from agriculture and fisheries increased in participating provinces. 1. Implementation of specific studies to monitor progress, beneficiary surveys, and use of other statistics. Program of biannual monitoring reports; and annual evaluation. No major natural calamities, or drastic changes in weather (such as earthquakes, excessive typhoons, prolonged droughts, etc.). 2. Adoption of improved natural resource management practices, increase in area under perennial crops, resulting in better vegetative cover and improved soil fertility. 2. Mid-term evaluation (prior to launching second phase of APL). General economic stability in the country/participating regions; inflation to remain in check (less than 10% annually); initiatives of peace accord maintained 3. Positive impact on employment opportunities in targeted areas. 4. Periodic and independent reviews of LGUs development plans. 4. Increased incomes of beneficiary households in participating provinces 5. Annual assessments of marine biodiversity at sites selected to be marine protected areas and demonstrated reduction/elimination of destructive fishing 5. Improved rural development plans, better linked to poverty targets and A-1 3. Implementation Completion Reports for each phase. Sustained political and budgetary commitment to supporting O&M; complementary initiatives to address social sector issues and improved coastal environmental management and a vision for rural development practices. for the LGUs; increased involvement of local stakeholders in planning and resource allocation and conservation of coastal resources and biodiversity. Outputs: 1. Community/other stakeholder participation in project is facilitated through better organization, preparation of development plans and capacity building Essential rural roads in key production and coastal areas are rehabilitated (and in some limited cases, established) and maintained by LGUs and local communities 2. Sustainable agricultural and fisheries production systems and diversified farming, fishing activities, and marine biodiversity conservation, are introduced Community generated rural development plans for supporting improvements in their economic well-being are approved and implemented in eligible communities Kilometers of rural roads rehabilitated, maintained and established. Clear road designs standards adopted to guide investments. Bi-annual monitoring reports; annual evaluations Implementation Completion Reports Annual resource assessment reports are prepared to show incremental changes in marine species diversity and abundance biodiversity conservation. Effective surveillance and enforcement of relevant laws pertaining to coastal and marine resource management. (Outputs to Objective) Counterpart funding is provided on an adequate and timely manner by both the national and local governments Lack of LGU and beneficiary commitment to O&M. Improved delivery of extension services to farmers and fisheries; better linked to programs of national agencies, SUCs; and to the private sector. Rehabilitation of cooperatives; increased delivery of farm credit Increase in areas covered by communal irrigation systems, operated and maintained by LGUs and local communities Fishers’ and People’s Organizations knowledge of how marine resource and biodiversity conservation can contribute to higher productivity and destructive fishing methods abandoned Hectares of reforested watersheds Plantings of perennial crops A-2 Decline or elimination of destructive fishing techniques and resultant increased fish production. Surveillance measures taken up by communities in conjunction with assistance from law enforcement agencies. The beneficial impacts of biodiversity conservation on fisheries productivity can be effectively conveyed/ demonstrated to coastal communities. 3. Communal irrigation systems are expanded and maintained by LGUs and local communities 4. Rehabilitation of denuded watersheds by LGUs and local communities 5. Need for first level rural water supply systems of target communities are met 6. Capabilities of LGUs and local communities in rural development planning and implementation and conservation of coastal marine biodiversity are enhanced. Number of households benefited from the provision of first level water supply system Number of LGU staff and community leaders trained (formally and informally) Adoption of rural development plans, based on resource base and poverty distribution within participating LGUs Selected marine areas are protected and habitats are rehabilitated The mainstreaming of coastal and marine biodiversity conservation into development plans for coastal areas. Re-colonization, by populations of indigenous species, of damaged marine habitats designated as conservation areas. Understanding and demonstration of benefits of marine biodiversity can be conveyed to selected coastal communities. Development plans for coastal areas include environmental analysis of potential impacts to marine biodiversity. Project Components/Subcomponents: Rural Infrastructure Inputs: (budget for each component) Community Funds for Agricultural Development TBD during preparation Project MIS Disbursement records Audit reports Institutional Capacity Building and Program Development Over-all Program Management Coastal and Marine Biodiversity Conservation (Components to Outputs) GEF-assistance at US$1.25 million A-3 Timely availability of counterpart funds Competent and committed staff will be appointed to facilitate and coordinate the planning and implementation of project activities. ANNEX B INCREMENTAL COST ANALYSIS Overview The Philippines has important coastal resources and globally significant marine biodiversity. Indeed, the coastal waters of the Philippines archipelago support the greatest marine biodiversity in the world. Many of these resources have been seriously degraded and marine biodiversity serious threatened particularly in near-shore areas. This GEF-assisted component complements the proposed IBRD-assisted Mindanao Rural Development Project and aims at promoting marine biodiversity conservation mainly by mainstreaming it within local fishing communities and Local Government Units (LGU) in the Philippines. Context and Broad Development Goals The GOP has recognized the ecological, economic, and financial importance of preserving its marine resources. Toward achieving this objective a number of Government Acts and Executive and Administrative Orders has been formulated and specifically aimed at conserving marine biodiversity and improving fisheries management. In addition the Coastal Environment Program under the DENR has been established to specifically address these issues in conjunction with related activities of the Department of Agriculture’s Bureau of Fisheries and Aquatic Resources Management Baseline Under the baseline scenario, it is expected that the stakeholders and fishing communities in the coastal areas will continue to overexploit coastal resources using destructive methods that will further threaten marine biodiversity. With the current financial crises confronting the country, the GOP will have direct, higher priorities of addressing immediate social issues confronting its people. Without external assistance, the long-term impacts of continued mismanagement by coastal communities could lead to irreversible damage and permanent losses to the country’s endowment of marine resources and biodiversity, particularly in Mindanao. Under the MRDP, the Community Funds for Agricultural Development Component (CFAD) would assist in reducing overexploitation of natural resources through providing financial and technical assistance toward the development of new occupations or significantly increasing the income from existing activities. The focus would primarily be upon the rural populace engaged in agricultural activities with some resources to fishing communities. In the case of the latter, it would help to reduce pressure on the exploitation of marine resources. Global Environmental Objectives The global environmental objectives of the GEF components of this project are to conserve globally important marine biodiversity and to sustainably manage coastal resources in the Philippines by mainstreaming marine biodiversity and coastal resource conservation within coastal communities and LGUs in Mindanao. Importantly, this project will also help develop a model with broader applicability for mainstreaming biodiversity considerations in a sector with crucial social, economic, and environmental dimensions in Mindanao and more broadly in the Philippines. GEF Alternative B-1 Under the GEF scenario, substantial information, capacity, and experience will be developed to promote the mainstreaming of marine biodiversity conservation and sustainable use within the fisheries sector, particularly at the community level. The GEF approach relies on removing barriers for successful mainstreaming through demonstration, capacity building, enhancement of the information base for sound decision making, and policy development in Mindanao as part of the proposed MRDP, where little attention has been paid in the past to marine resource and biodiversity conservation. The GEF components will support the piloting of community-based marine sanctuaries to benefit both fishing resources and marine biodiversity; enhance local capacity for addressing coastal ecosystem management issues; and enhance the knowledge base for sound ecosystem management and decision-making, including monitoring and evaluation for sustainable long-term marine ecosystem management. It is expected that these steps will have substantial multiplying effects and provide the foundation for mainstreaming biodiversity considerations within the Mindanao’s important coastal resource and fisheries sectors. This would be facilitated by the inclusion of the CMBC component in the subsequent phases of the proposed MRDP that would also have the knock-on benefit of gaining lessons from the earlier phases of the MRDP. A sub-component of the Coastal and Marine Biodiversity Conservation Component (CMBC) would also provide alternative income generating activities to coastal fishers but would particularly target those who are presently engaged in destructive fishing practices, providing them with alternative and more beneficial livelihood options. Also, assistance would also be provided for coastal communities to make application for funds for demand-driven activities that would be available under the CFAD of the MRDP. It would further assist in the demarcation and protection of marine areas with biodiversity of global importance and assist in their sustained management and protection. Without the CMBC, these marine biodiversity conservation-related activities would not be implemented in the project area under the CMBC. Incremental Costs The incremental costs are calculated as the difference between the GEF scenario and the baseline scenario and total US$1.25 million. B-2 Incremental Cost Matrix for GEF Funding Component Cost Category Cost US$ Domestic Benefit Million* MRDP IBRD/GOP Baseline 3.20 Increased agricultural production and profitability and creation of additional, diversified employment Baseline 1.60 Improvements in the government’s capacity to manage rural development, reduce poverty and conserve natural resources and marine biodiversity. Mainstreaming marine biodiversity conservation into rural and coastal development planning and GEF Alternative 1.25 Sustained increase in fisheries production and potential for ecotourism development. Improved access of coastal communities to alternative livelihoods. 4.80 6.05 Enhancement and improvement of coastal habitats for threatened and nonthreatened marine species of local and global significance Community Funds for Agricultural Development Component estimated for Maguindanao and Sultan Kudarat Provinces only (Total overall project estimate US$40 million) Institutional Capacity Building and Program Development Component (Total overall project estimate for this component is US$4 million) Coastal and Marine Biodiversity Component Baseline GEF Alternative Incremental Global Benefit 1.25 *Precise baseline and incremental costs are estimates to be refined during further project preparation. B-3 ANNEX C STAP REVIEW Technical Review of Project Proposal: Philippines - Coastal and Marine Biodiversity Conservation in Mindanao 1. Scientific and Technical Soundness of the project The project proposal is scientifically and technically sound. It is designed in a manner which integrates effective rural development and nature conservation measures for linked coastal and marine ecosystems in two specific target areas, namely (i) Paril-Sangay Protected Seascape, Kalimansig, Sultan Kudarat Province; (ii) Bongo Island, Parang, Maguidanao Province. The selection of these areas is based on a pragmatic evaluation of ecological as well as socio-economic factors which influence the health and productivity of the ecosystems and the utilisation of natural resources derived from those systems. The project design effectively integrates environmental, social and economic dimensions relevant to biological diversity conservation. These include: (a) establishing community-based management of marine sanctuaries; (b) strengthening local capacity to address marine ecosystem management issues; (c) enhancing the knowledge base for sound ecosystem management and decision- making, including monitoring and evaluation for sustainable long-term marine ecosystem management; and (d) developing policy and action plans for integrating biological conservation into coastal development plans and fisheries management. The adoption of the ecosystem basis for these activities is a further sound technical measure. The proposed GEF-assisted community-based resource management component would support: (i) a resource assessment survey of selected conservation sites with marine biodiversity of global significance; (ii) the application of a participatory planning and management process for identification and development of the defined protected areas; (iii) strengthening of local marine resource surveillance by coastal communities linked to existing enforcement agencies; (iv) formulation of a monitoring and evaluation program; (v) assistance to the development of alternative income generating activities for those involved in livelihoods that are particularly destructive to the marine environment The GEF component is designed to complement the proposed Mindanao Rural Development Project (MRDP) which is being designed to target key constraints which have been inhibiting growth in agricultural production and improvements in agricultural productivity and coastal resource management and marine biodiversity conservation. By building upon the resources and planned activities which will be made available through the proposed MRDP, the GEF funds will achieve added value well in excess of the 1.27 Million US requested. Although the total funding for rural development will be shared among many sites in Mindanao, sufficient funding should be available to make a major contribution towards developing alternative incomes and other rural development measures that will reduce pressures upon local communities to damage and over-exploit their environments at the two GEF target sites. This investment provides a very valuable opportunity for the GEF to make major progress in developing pilot programmes which can be used as models elsewhere in Mindanao and other parts of Asia. There are a number of technical advantages offered by developing GEF funding in cooperation with the MRDP. For example, the Institutional Capacity Building and Program Development components of the MRDP would support the management of the GEF funded activities . Specifically, the MRDP would help establish Protected Area Management Boards (PAMB) for each designated marine protected area, C-1 and would provide training for addition environmental officers with backgrounds in marine resources management who would be assigned to each of the two Community Environmental and Natural Resource Offices. The proposed training would focus on the methods of establishing and sustainably managing a marine protected area and protecting biodiversity. The anticipated long-term investment in the Rural Development component of the project (10-12 years) will provide opportunities to develop consistent support to the two sites where GEF funding will be applied which should allow the development and then expansion of effective social and economic measures to help ensure local people are not forced back into patterns of activity which would otherwise undo the environmental and natural resource sustainability benefits achieved. There are some potential weaknesses in the project design that should be given further consideration. One example is the continuing pressures associated with population growth and migration to coastal areas. Neither the MRDP project or the GEF component will be able to address these pressing issues and there is a real danger that they could seriously detract from the hoped for success of the planned investment. Other weaknesses may be more easily dealt with. For example, local communities and stakeholders are being asked to take on major responsibilities for managing and policing conservation areas and helping to manage resources use activities. However, there is no mention of their rights of access to those same resources. A major problem with marine and coastal areas is the common property nature of reefs and other ecosystems and the resources they generate. Experience has shown that by granting communities user rights to such areas and resources, they are given a powerful incentive to manage them sustainably. The project should seek to clarify the position vis a vis the Philippine policies and legislation to ensure that they can provide local communities with guaranteed user rights to the local natural resources they will be asked to help manage. The research component should also be reviewed. As stated in the project proposal potential sites for mariculture operations will be assessed. However, the impact of such development will only be assessed after they have been put into operation. This may be pragmatic, but is does pose the risk that well intentioned measures to promote alternative income generation could degrade the very resources the GEF funding is seeking to protect. It would be better to do initial EIA scoping studies to ensure the carrying capacity of sites will not be exceeded, then proceed in a very carefully monitored manner to develop cage culture of fin fish and other mariculture activities. One point that the project could anticipate is that by focusing investment in selected areas, people in neighbouring areas will see their neighbours benefiting from a project because they have been persuaded to stop damaging fishing practices. This can produce unexpected results. For example, in Indonesia villagers in non-targeted sites where dynamite fishing was not commonly practised started to use dynamite in order to attract attention to their development needs in the hope that people would respond and include them in rural development and conservation projects . 2. Identification of the Global Environmental Benefits and/or Drawbacks The threats to the rich and diverse ecosystems in the proposed sites are addressed effectively by the project design. The global environmental benefits are clearly identified in the project objectives, namely to conserve and restore globally important coastal habitats and related marine biodiversity by making biodiversity and marine ecosystem conservation a major focus in community development and in the coastal fisheries sector. The proposed GEF-assisted component would help to create sanctuaries and protected habitats for endangered species found in the area, including species of dugong and sea turtle. Due to the careful selection of the two pilot sites and the integration of social and economic measures under the Rural Development component, there would appear to be few significant potential drawbacks. C-2 3. Fit with GEF Goals and Operational Strategies The Project Rationale section sets out clearly the GEF Operational Strategy and Programme Objectives which will be addressed by the project. It directly addresses OP objectives (conservation and sustainable use), including in-situ protection, and having a primary focus on ecosystems in areas at risk. The project explicitly addresses all GEF outputs under OP 2, i.e., sectoral integration, sustainable use, and institutional strengthening. 4. Regional Context The broader context setting out the global, regional and national importance of the biological diversity of the two pilot sites is well developed in the body of the proposal. The site descriptions are adequate and the planned resource assessments will add further information to strengthen the development of community based management and monitoring. 5. Replicability of the Project The project sets out to create an effective fusion of social, economic and environmental management measures that should enjoy a wide body of local community support. By integrating the MRDP and GEF components the project will seek to adapt well established community management models that have worked elsewhere in the Philippines and apply them to Mindanao. By adopting this approach and refining participatory planning techniques for biological conservation, there is good potential for replicating them in other provinces in Mindanao under later phases of MRDP and through normal development funding. Evidence of the benefits to local communities of biological conservation should spread to other communities and there should be a receptiveness that would make it possible to replicate the benefits when the capacity is available to support further initiatives. The well developed and supportive national, regional (Provincial) legal and policy framework which has been developed over recent years in the Philippines would facilitate the application of the results of the two pilot biological diversity conservation initiatives to other areas. Secondary Issues: 1. Linkages to Other Focal Areas The project addresses GEF Operational Program Number 2 (Coastal, Marine, and Freshwater Ecosystems). 2. Linkages to Other Programmes and Action Plans The project documentation provides a comprehensive illustration of related programmes and actin plans. 3. Degree of Involvement of Stakeholders in the Project The preliminary socio-economic and environmental surveys were used to identify the key stakeholders, and to initiate a process by which local stakeholders and other interests with local communities can be C-3 integrated into the definition of conservation issues and the formulation of management solutions. Given the importance of the active involvement of all relevant stakeholders in the development of community based management of the ecosystem and development of human activities, it would have been helpful to have further details of how this would be handled in the project design. 4. Capacity-Building Capacity building is designed as a major component of the GEF funded project. There are clearly identified priorities for capacity building set out for the DENR, local Government Units, and stakeholders from the local communities. Capacity building is also a component of the rural development component in respect to helping people develop alternative forms of livelihood, including the sustainable utilisation of the coastal and nearshore marine resource base. Specific measures to strengthen human resources under the GEF component include: 1) strengthening local capacity to take part in participatory planning approaches to the solution of marine ecosystem management issues; and 2) enhancing the knowledge base for sound ecosystem management and decision- making, including monitoring and evaluation for sustainable long-term marine ecosystem management The Rural Development project will also provide capacity building in areas which will support the biological conservation measures. Examples include: 1) Improving LGU capability for agricultural development planning and implementation; 2) Establishing viable institutional, financial and communitybased systems for supporting rural development and natural resource and biodiversity conservation. The Community Funds for Agricultural Development Component will provide the training for DENR/BFAR officers and NGO/PO staff in sustainable marine and fisheries management methods as trainers for fisherfolk, school age children, community leaders, and other stakeholders in the vicinity of sites selected as protected areas to be assisted under the project. 5. Innovativeness of the Project There are three strongly innovative features of this project, namely: 1. It provides funding for marine and coastal biological conservation in areas of Mindanao which have received little international, national or more local support; 2. It seeks to develop policy and action plans for marine biodiversity conservation and make it an integral part of coastal development plans; 3. By integrating GEF and IBRD funding in support of rural development, the project has the potential to enable local communities to get out of the trap of poverty and to take a positive leading role in biological conservation of local ecosystems and the sustainable use of renewable resources. Peter Burbridge C-4 ANNEX C1 RESPONSE TO STAP REVIEW This proposal was subject to an Independent Technical review by a qualified expert from the STAP roster. The reviewer’s comments can be found in Annex C, immediately preceding this response to the review. The reviewer raised four issues that arose as a result of the evaluation of the proposal. These include (i) uncontrolled population growth and migration to coastal areas and resultant increased pressures upon coastal resources; (ii) rights of communities to manage coastal resources which are held as common property; (iii) issues over the effectiveness of the research component and concern over potential environmental impacts of alternative generating activities that would be financed by the project; and (iv) inadvertent encouragement of villages in the vicinity of the project sites to take up destructive fishing techniques in an attempt to gain assistance toward rehabilitation of those sites by the project. Increased Population Pressure on Coastal Resources: The reviewer has pointed out that with increases in coastal populations and migrations to coastal areas, there is a trend that further overexploitation of coastal resources and degradation to coastal ecosystems would result. The control of increases to coastal populations is beyond the scope of the component. However, through improvements in community-based sustainable management of coastal resources, ecosystems, and marine biodiversity and the communities’ direct participation in enforcement of national regulations and local ordinances, the potential adverse impacts would be much better controlled as discussed below Rights of Communities to Coastal Resources: The Local Government Code (RA 7160 of 1991) has devolved specific fishery management functions (regulatory and enforcement) to the local government units (LGUs). This landmark piece of legislation also encouraged the participation of the people through Peoples Organizations (PO) /Non-governmental Organizations (NGO) in matters of public concern, such as coastal resources management. This local government code, thereby, provides the capacity for LGUs to designate the management of a specific conservation and protected areas. In addition, the establishment of a Protected Area Management Board (PAMB) under DENR’s Coastal Environment Program at each selected qualifying site would assist in guiding the management of each site. Moreover, once the respective site has been formally allocated to a local community’s People’s Organization, clear lines of management and conservation responsibilities would be established. Research and Environmental Impacts of Alternative Income Generating Activities: As specified in section “3. Project Description” in the description of the alternative income generating activity subcomponent, no activity would receive assistance under the project until an environmental analysis would be conducted by the DENR to determine its potential impacts might be upon the local environment and that activity is found to be benign. For activities such as fish cage culture, where the issue of a specific area’s carrying capacity are not fully understood, a phased development approach would be prescribed with water quality monitoring conducted for an initial pilot phase to determine the impact and absorptive capacity of the area. Support is provided under the project for this monitoring that would be the main emphasis of the research component during Phase 1. Encouragement of Destructive Practices to Gain Project Assistance for Rehabilitation: Site selection and qualification will only be based on the importance of biodiversity in the area and not upon the condition of a particular ecosystem.. This site selection criterion would be explained on a widespread basis through all available lines of communication in the project area to deter encouraging communities or individuals from taking on or increasing destructive practices as new areas are brought under consideration under the project. Social assessments identifying those who would be entitled to assistance C1 - 1 would be done in advance of formally designating an area. With direct community participation in the process, those who would be entitled to assistance would be identified and selected through a consultative process. C1 - 2 ANNEX D Description of and Rationale for Selection of APL1 Sites Project Area Initially, the project proposal would cover the provinces of Maguindanao, Sultan Kudarat and Cotabato City. These areas form a contiguous coastal areas along the eastern side of Moro Gulf consisting of approximately ~247 km extending from the boundary of Lanao del Sur to the north and southwards until the boundary of Sultan Kudarat to South Cotabato (Figure 1). Assessment of Areas Line agencies were contacted in the project area to determine existing protected areas or pending plans to establish new ones. For the Province of Maguindanao, line agencies (DAF, DENR) of the Autonomous Region of Muslim Mindanao (ARMM), the MFARMC and Sanguinaang Bayan representative for fisheries of Parang, Maguindanao; for Sultan Kudarat, the DENR-ERDS-EMPAS, DA-Fisheries agencies of Region 12 and the CENRO-CEP and MAO for Kalamansig and the MAO of Lebak municipalities were consulted. For Cotabato City, the offices of the City Planning and Development Office (CPDO) and the Office of the Veterinary Services of the city were consulted. All relevant and available data for each area were also collected. Site visits and discussions with the local populace (including but not limited to Barangay officials) and interviews with fishers or resource user of the area were conducted in order to get their reaction and views on how protected areas would affect them. Fisheries information including issues and problems confronting the fisheries in the area were also collected from interviews to support existing secondary data. In the study area, similar initiatives are underway which partly include the area under consideration. For example, the coastal areas of northern Maguindanao and Cotabato City are actually part of Illana Bay where the establishment of the Integrated Illana Bay Management Council is currently underway through the cooperative efforts of the Local Government Support Fund (LGSP) and the Canadian International Development Agency (CIDA). Likewise, the whole of Moro Gulf where the coastal area of Sultan Kudarat is situated, formed part of the Sulu-Celebes Large Area Protected Zones currently being implemented by the DENR. These two projects have made initial studies like resource assessment and socio-economic profiles for specific areas under consideration. Therefore, whatever interventions and activities to be undertaken in the study area would be closely linked to and complementary with the objectives of these other activities. Areas with Global Significance for Possible Inclusion in the Protected Areas Listed below are two areas for possible inclusion in the Protected Areas Management Scheme These include the: 1. Paril-Sangay Protected Seascape, Kalamansig, Sultan Kudarat Province 2. Bongo Island, Parang, Maguindanao Province Areas with national Significance 1. Palembang Fish Sanctuary 2. Polloc, Parang Maguindanao D-1 A detailed description of each areas together with the criteria used in the evaluation of each area are given below: Paril-Sangay Protected Seascape The names refer to Barangay Paril and Barangay Sangay in the municipality of Kalamansig, Sultan Kudarat where the proposed protected seascape will be established. Of the two areas considered, this area offers the most pristine environment. The area considered is Donauang Island (locally called Balut Island) and the adjacent area and the shallow water between the island and the mainland. Initially proposed to cover only the Donauang Island with an approximate area of 500 hectares, the area was increased to 1,200 hectares after consultation and public hearing, to include the southern part under Barangay Sangay. Note that there has been considerable progress made as far as this area is concerned. The progress made is so advanced that the DENR-ERDSCEP in Region X11 and the municipality of Kalamansig have already finished a draft Proclamation to be submitted to the President upon endorsement by Secretary of DENR. What is interesting about this area is that the establishment of a protected emanated from the local populace in order to conserve and manage their resources. The ERDS-CEP program provided the funds to set the activities in motion following the format of NIPAS Law. Appendix 1 shows the process undertaken for the area to be declared protected. Substantial areas of the coral reefs are still in good condition. An initial inventory of species revealed the presence of 20 genera of corals, 23 families of reef fishes belonging to 83 species and 7 species of seagrass. In the proposed site, extensive coral reef buildup is found between 30-80 ft (15-25 m) of water. Based on the inspection of fish catch from the area, the sizes of fish are still large. For instance, large fusiliers, parrot fishes and barracudas comprise fish catch of gillnets with high catch rates (minimum of 15 kg/d). Similarly, hook and line catches remain high (10-15 kg/d) pinpointing to the presence of sufficient but still undetermined number of fish stocks. Moreover, the sightings of large predators such as sharks, manta rays and green turtles are indicators of a still pristine environment. This observations would probably make the area the most diverse among the two areas being considered. What is interesting is that initial attempts to culture seaweeds failed due to the reported heavy grazing of marine turtles on the culture areas. The beach area east of Donauang Island is a known nesting ground of turtles. Other Considerations Sightings of marine turtles have been consistently reported along the coastline between Cotabato City and as far south as Palembang, Sultan Kudarat with the greatest concentration of reports of turtle nestings and sightings between Barangay Tran, Lebak and Barangay Milbuk, Palembang. The data provided from tagging by the Rescue Center of CENRO office at Kalamansig, Sultan Kudarat, documented and sightings of at least three species of turtles and dugong. The turtle species include the green turtle (Chelonia mydas), olive ridley (Lepidochelys olivacea) and the leatherback (Dermochelys coriacea). These species are on the list of threatened marine mammals (CITES) and are protected by Philippine law (MNR AO No. 12, S. 1979). In the offshore areas, cetaceans (dolphins) are sighted with regularity and are also protected under FAO 185-1, S. 1997. The entire coastal area of Sultan Kudarat composed of three coastal municipalities of Lebak, Kalamansig and Palembang would be an ideal site to protect the marine turtles as the area appears to be part of the natural geographic range of marine turtles. D-2 On another environmental development, successful mangrove reforestation in Lebak (involving some 311 ha of undeveloped and/or abandoned fishponds) by the CEP-CENRO at Kalamansig has been observed. The area was planted with Rhizopora species and survival rate is a high 80%. The trees are already 4-5 years old and about 2-4 meters high. Another 60 ha of abandoned fishponds are being considered for further mangrove replanting pending availability of logistical support. With the interest to protect biodiversity of the coastal area, it would appear ideal and proper to include some of the forest areas (belonging to the mountain range of Kulaman) adjacent to the marine areas to be protected. A good example would be the inclusion of the whole Island of Donauang under protection. There are no settlements in the area and the island is still inhabited Philippine monkeys while the nearby forest in the mainland still boasts of wildlife such as wild pigs, deer, monkeys, large fruit bats and birds. Bongo Island, Parang, Maguindanao Province This is a medium-sized island (2,300 ha) located west of Parang Municipality. It gained prominence in 1976 when it was struck by a tsunami where a still undermined number of people perished. The island is about 11.5 km long and about 1.8-2.79 km wide. It is fringed by reefs on the northeast, north and northwest that extend to a distance of about 0.93 km and on the northwest side reaches about 2 km from the shore edge (Coast Pilot, 1968). On the eastern side, reefs are very narrow. The estimated reef area for the whole island is about ~12 sq. km. Resource and inventory assessment made in 1998 (LGSP-CIDA, 1998) revealed that live coral cover based on five sampling sites ranged from fair to good with four stations having an average live cover of 39.1%. Only one station located at Tuka Maror on the eastern side has a good cover of 70%. However, most reefs are dead primarily due to excessive use of explosives in fishing. This condition was confirmed by actual skin dive survey made in the area. The island also offers substantial mangrove forest on the northwestern and northern side of the island made up mostly of secondary growth dominated by Sonneratia alba. This species represented about 87% of the crown cover and 76% of the trees counted (LGSP-CIDA, 1998). In the same study, the examination of soft benthic organisms (meiofauna) from the sampling sites in Bongo Island showed the highest density of these fish food organisms compared to other sites sampled in the municipality of Parang. It is thus likely the sampling area is a critical habitat for nurturing juveniles of important species in the area. The reasons why Bongo Island was chosen as one of the two sites for marine protection are the following: It offers all three important coastal marine habitats, namely, very large reef area, substantial mangrove cover and seagrass beds; The reef area as well as the mangrove forest are highly disturbed and seriously needs largescale intervention to help speed recovery; The size of the island with a very large village at Barangay Litayen where both agriculture and fishing is practiced, is very ideal for monitoring and evaluation purposes; It is strategically located some 22 km from Parang municipality surrounded by deep water, which, from an ecological point of view, makes it isolated and not readily accessible or influenced by activities from nearby areas; Although reef-based fishing is still practiced, it represents only a minor activity, thus, establishment of protected areas may not posed serious dislocation; and The reef areas continue to be of great importance to livelihood because the area is currently used for seaweed culture. D-3 Therefore, in consideration of the above, the area as possible site for protection offers both ecological and social advantages inherent for islands as protected sites. The possibility of habitat restoration (reefs and reef fishes) without seriously constraining or affecting their existing livelihood would be of primary importance. Incremental Impact of Establishing Protected Areas on Fisheries Based on Other Experiences The concept on the use protected areas in fisheries started after the classic study by Alcala (1984) and many subsequent studies on coral reef protection and fishery yields. Protection of certain areas from fishing would allow the recovery of fish stocks and initiate the recovery of the damaged habitat. It was proven, as in the case of Sumilon Island Reserve, that when half of the area was closed to fishing leaving the other half open for exploitation, fish yields on the exploited side doubled within a year of protection, suggesting that the increase fish yield came from the protected zone. The results were so encouraging that despite serious lack of further knowledge, the concept was readily disseminated and applied. Thus, there is the proliferation of the establishment of fish sanctuaries, marine reserves and other protected area schemes. The concept was being peddled as a highly viable option for livelihood enhancement and as an answer to “all your fisheries worries”. Together with the establishment of artificial reefs, the program was in fact adopted as a national program by the Department of Agriculture. While experiences with establishment of protected areas on one hand appeared to be working, the establishment of artificial reefs on the other hand, have been strongly opposed by the academe on the ground that when not properly implemented, may cause more damage than solutions. A moratorium for the establishment of artificial reefs was issued (Balgos 1996). Despite the moratorium, artificial reef deployment still continues in the project area. Until the present time, there is no fixed formula that could ensure the viability of using protected area to rehabilitate fisheries stocks. There are however, guiding principles that have been amassed by experiences in the last 15 years and is summarized below: The establishment of protected areas means a reduction of the available fishing grounds. Since those recommended for protection are areas with still sizeable fish population, the immediate impact would be reduction in catch and therefore decreased income. It therefore important that any move to delimit fishing to specified areas should be coupled with a livelihood enhancement component to cover losses in income. The size of the protected zone relative to the general area considered should be significant. The Sumilon Island experience was successful probably because the protected area represented about 50% of the total area around the island. However, the use of 50% ratio would be taking too much of the area that its economic consequences would be enormous. As an alternative, a network of protected areas representing about 15% of the total reef area may be adapted. This scheme will be used in Guimaras province (Ingles and Babaran 1997). Instead of having one large area, a network of small-protected areas distributed over the whole island may be established. However, the scheme remains to be proven. The third consideration would be the status of the area or the general environment to be protected. There are instances where areas being proposed for protection are already severely damaged that recovery of fish stocks as well as the habitat will not prosper without any major intervention such as re-introduction of fish species and transplantation of corals. Lack or absence of such activities could prolong or at worse not work at all. There is no Philippine experience on the success of reseeding experiments of reef fishes while coral D-4 transplantation remain largely in the experimental stage. Results however pinpoint to some success. Recovery time of fish stocks vary depending on the condition of the area at the time protection was enforced. Tropical fish species have very fast growth rates compared to their temperate counterparts. Given a critical mass of fish stocks remaining in the protected area at the time of implementation, improvement in fish density and abundance will be evident in two years. For the Paril-Sangay Protected Seascape, fish stocks recovery may even be shorter. However, for highly depleted areas, especially for islands far from sources of fish recruits like the Bongo Island, re-introduction of fish species might be undertaken. While the good reef in Tuka Maror should be identified as source of replenishment, the process may be very slow. For coral reefs, recovery time is quite slow because of its inherently slow growth rate. Depending on the type damage on the reefs, recovery could vary from 510 years for damage on reefs caused by natural causes (e.g. storms, surges) to 40 years for blasted reefs (Gomez et al. 1996). Essential to the success of managing protected areas is the identification of a management body that will be directly responsible for all the activities related to the protected area. While the management body should be under the Local Government Unit, its head should be part of the career service program and not an elective official. This is to maintain the continuity of operations and activities and to avoid influences of partisan politics. Strict enforcement of rules, laws and policies related to the implementation and management of the protected area remain the key to success, especially during the early stages of protection. For the Sumilon Island experience, the breakdown of the protected area after one year resulted in a rapid decline in fish yields with catch rates reverting back to its pre-regulated condition after just one year. Benefits arising from the recovery of fish stocks and rehabilitation of habitats will manifest in improved income from increased catch rates on a sustainable basis. Indirect benefits will be in the form of low overhead costs as fishers will not have to go to distant grounds to fish. Likewise, the conservation of biodiversity would become one of its major benefits not to mention potential revenues that may be generated from ecotourism. Paril-Sangay Protected Seascape For the Paril-Sangay Protected Seascape, the area is relatively pristine. Fishing in the nearby areas outside the protected zone would mean longer time to reach the fishing ground for those living directly in front of the area. It would also reduce the number of fishing days in a year, since part of the protected area is used to be the fishing ground during inclement weather. There are other possibilities for livelihood. The bay facing barangay Paril is an ideal site for fish cage culture. In fact, culture trials are underway. Other possible sources of income include the collection of milkfish fry. For land-based livelihood, agriculture on the slopes of mountains may be improved and enhanced. Note that during inclement weather, people in the area shift to agriculture which is actually their major economic activity during southwest monsoon. Fishing formed only a part time activity for many villagers. Bongo Island Protected Area For the Bongo Island, the whole coral reef area, sea grass beds and mangrove swamplands should be considered for protection. But because these are also used for other purposes, protection should be done in D-5 phases. The coral reefs on the western side are damaged, should be considered for protection, and would be ideal for the project to determine the incremental benefits of proposed intervention. But because of major economic activity such as culture of seaweeds, the area may be declared as a fish sanctuary where fishing would not be allowed, but where seaweed culture could continue. On the eastern side, although the reefs are very narrow and limited, the area in Tuka Maror would be an ideal site for the source of recruits. On these areas, no activities should be allowed. This area, as suggested by the LGSP-CIDA study, may be declared as a core zone (Figure 2) where no activity except for scientific purposes. The rest of the northern half of the island may be considered as a fish sanctuary where again the continued culture of seaweeds would be allowed. The rest of the island may be used for other economic and recreational purposes. As there are few fishers operating in the area due to low catch, displacement of fishers will be minimal. Those that will be affected include the fish corral operators on the northern part of the island and few Joloanons catching octopus. Since there are several nearby shoals and reefs patches to the west and north west of the island, these fishers will not be deprived of their fishing grounds. D-6 ANNEX E SUMMARY OF SOCIAL ASSESSMENT AND PARTICIPATORY NEEDS A participatory coastal area assessment was conducted in the areas proposed as marine protected areas, including the nearby vicinities. Focus on this activity were the following: 1. To explore and document the socio-economic conditions of the communities adjacent to the selected MPAS and sanctuaries; 2. To determine whether there are existing local institutions and administrative structures that can be proposed to possibly manage the identified protected areas, and make recommendations with costs of needed changes and strengthening of the institutions and their facilities; 3. To identify possible alternative livelihood options and employment potentials for the coastal village people within and near the proposed protected areas; 4. To determine the training needs as well as education program for the establishment and sustained management of the selected MPAs and sanctuaries; and, 5. To find out if there are existing regulations the community had enacted for the protection of their marine resources. To achieve these tasks, a rapid appraisal was conducted in the two study areas. For the proposed marine protected area in Sultan Kudarat, particularly for Paril-Sangay Marine Protected Seascape in Kalamansig, the Regional Director, the chief planning officer and the Coastal Environment Program Manager of DENR-Region XII, provided substantial information. The Regional Director and planning officer of DABFAR also provided additional information about the fishing communities. Selected local leaders, who were also CEP cooperators, were interviewed. Regarding the proposed marine conservation area around Bongo Island in Maguindanao, data on the socio-economic situation were obtained from the municipal planning and development officer of the Municipality of Parang. The MFARMC President who also is a local official served as key person who provided the necessary information together with some local residents of Bongo Island. The technical staff of DA-Fisheries Sector and Project Management Officers of the Integrated Illana Bay Management Council provided assistance and relevant needed information. The DENR and the DA-Fisheries also provided references specifically their integrated coastal resource management plans for Parang and for Pari-Sangay Marine Protected Seascape in Kalamansig. A. PARIL-SANGAY MARINE PROTECTED SEACAPE, KALAMANSIG, SULTAN KUDARAT General Description of the Area. There are three coastal municipalities in Sultan Kudarat, namely Lebak, Kalamansig and Palimbang. These have extensive and long coastlines of 480 kilometers and are adjacent to each other. The identified municipalities of Sultan Kudarat belongs to Region XII. Celebes Sea is the biggest source of marine resources for these coastal towns. These areas are where Sultan Kudarat’s richest tuna sanctuary and vast brackish and freshwater resources could be found. It takes three hours to reach these towns by pump boat, around 45 minutes by plane and around 7 hours by land. E-1 The municipal waters of the three coastal towns are the traditional fishing grounds and main sources of livelihood of the marginal fishermen. They exhibit a high degree of biodiversity and abundant marine life. Kalamansig is one of the richest municipalities in terms of coastal and marine resources due to its good to excellent coral reefs. Its municipal water is at the base of the Illana Bay and within the portion of Moro Gulf. It is also in this coastal municipality where DENR launched a pilot site of Coastal Environment Program (CEP). To date, the DENR Region XII is processing the proclamation of Paril-Sangay within the Kalamansig-Lebak CEP site as a marine protected seascape. The place is nearly 64 kilometers away from Cotabato City and 89 kilometers from General Santos City. Human settlements and developments are concentrated in the southeastern portions of the area wherein a dilapidated jetty, that can still service fishing vessels with a tonnage of less than 5 tons, is located. Demographic and Socio-Economic Profile. Lebak has a total population of 61,884, with an average household number of five. Population growth rate is 3.16 percent. Kalamansig has a total population of 35,900, with average household number of 4.5. Growth rate is estimated to be 2.93. For Palimbang, population totals 40,646 with average growth rate of 5 and population growth rate of 3.50. Fishing is the major occupation in these areas. Lebak has a total of 1,027 fisherfolks, 954 for Kalamansig and 480 for Palimbang. Brackish water fishponds in the coastlines of Lebak and Kalamansig are suitable for aquaculture development. Lebak has a fishpond area of 247 hectares, 104.5 hectares for Kalamansig and 22.4 hectares for Palimbang. Lembak has 5 fishermen organizations with 406 members. Kalamsig has 10 fishermen organizations with 286 members and Palimbang has three fishermen organizations with 83 members. Agriculture, also a primary source of livelihood, is supported by the broad alluvial plains for rice production. Coconut is the most extensive crop grown. Cacao is commonly inter-cropped with coconut. Coffee is also a major crop in Kalamansig and Lebak. Other crops include banana and root crops. Two river watersheds in Lebak and one in Palimbang support a total of 4,400 hectares of rice fields. Forestry plantation are mostly found in Lebak and Kalamansig. There are small scale processing mills in the locality. While income of the people in the coastal area is relatively higher than the upland and lowland areas, the average income is still low at P54,205 per annum. Most if not all the coastal barangays have limited access to basic social services despite their proximity to town centers. Health services are inadequate and potable water supply is insufficient. Among those within the mainstream culture, the Ilonggos assume the greatest number of populace, followed by the Ilocanos and Cebuanos. The four top leading causes of morbidity are influenza, diarrhea, pneumonia and bronchitis. The four causes of mortality are hypertensive vascular diseases, accidents/violence, pneumonia and tuberculosis. Literacy rate at 93 percent was considered high, mostly having secondary education. Dwellings are generally temporary Existing Institutional Development and Structure. The farmers’ and fisherfolks organizations are the influential local formations in the coastal barangays. Cooperatives are also considered influential because of the various services they extend to their members such as service facilities and credit assistance. Influential individuals in the coastal communities are the barangay captains and some members of the barangay councils. The purok leaders, local church leaders as well as tribal leaders are also in the list of influential individuals. The Barangay Assembly is one of the most popular organization which is apparently the institution used of getting things done at the barangay level. E-2 The coastal waters of Paril and Sangay are proposed for conservation in 1998 through a barangay resolution that was forwarded to the DENR Region XII. The area when proclaimed as a marine protected seascape shall be managed pursuant to RA 7586 or the NIPAS Act of 1992 and its implementing rules and guidelines. Laws and regulations legislated by the local government, municipal or provincial, in support to existing national laws and regulations, and in relation to the management of the proposed seascape including adjacent areas shall be adopted. To date, there are 5 local ordinances and resolutions supporting the management of the proposed seascape, to wit: Ordinance No. 33, S. 1999 Centralizing the selling of fish at the Public Market, Kalamansig, Sultan Kudarat Ordinance No. 66, S. 1994 Stabilizing the price of fish and meat in the Municipality of Kalamansig, Sultan Kudarat Ordinance No. 69, S. 1994 Prohibiting the use of fish net locally called “Baling”, newlook and other fishing gears which have negative effects on the aquatic resources within the municipal water of Kalamansig, Sultan Kudarat Ordinance No. 97-18 Regulating fishing and/or fisheries in the municipality of Lebak and/or for other purposes in accordance with the provision of local Government Code 704 as amended, FAO and providing penalty thereof Resolution No. 7, S. 1998 Creating the protected Area Management Board (PAMB) on the coastal barangays of Kalamansig, Sultan Kudarat Alternative Livelihood and Employment Potentials Alternative options and potential employment opportunities are expected to allure fervid participation of the coastal families and organizations in resource management. This is a strategy that can reduce pressure in the fishery resources as brought about by another source of income. There are very limited alternative livelihood assistance extended by government agencies and LGUs. If ever, the assistance is usually provided by NGOs or form part of the assistance extended to members of organized groups such as cooperatives. The project would further assist in supporting sustainable and environmentally sound livelihood activities that would reduce dependence upon already over-exploited natural coastal resources. Training Needs Assessment Most of the skills training extended by DENR under the CEP are skills training related to the alternative livelihood projects extended in the area. Other seminars conducted and initiated by the DENR-CEP are the following: Mangrove rehabilitation and protection Waste Management Restoration of Biodiversity Training for Bantay Dagat volunteers Critical habitat protection Project proposal preparation E-3 Proposed Project Interventions Project interventions will be geared toward supporting the management of the proposed marine protected area through a participatory approach enjoining the affected communities. 1. Constituency capability building will be undertaken to enhance participation and empowerment of the local communities 2. Policy review and formulation geared toward the formulation and implementation of regulations and policies for the community-based resource management of the proposed marine protected area 3. Provision of alternative livelihood projects to reduce pressure on fishery resources 2. INDICATIVE ACTION 1. Constituency capability building will also be undertaken to enhance participation and cooperation among organized groups. Community/Cooperative development, values orientation, public assembly and fora, massive IEC are the most common and found to be effective. 2. The proposed alternative livelihood projects initially identified to support coastal resource management, particularly in the marine protected areas are (a) land based, (b) home-based and (c) marine based. Land-based alternative livelihood which are hoped to encourage marginal fishermen and their families to develop additional skills and earn additional income. Further, the fishing pressure imposed in the coastal zone will be lessened enabling the area to recuperate and restock naturally. Home-based alternative livelihood will help coastal communities, particularly the housewives earn and help improve their family income. These are intended for the spouses of marginal fishermen who are willing to learn and earn income while at home Because of the abundance of pelagic fishes within the Moro Gulf and the availability of ideal areas for fish culture, the implementation of marine-based livelihood opportunities is warranted. Skills training along the lines of these identified alternative livelihoods are encouraged among the would-be beneficiaries. This will ensure that the skills needed would be developed and would contribute to the success of the implementation of livelihood opportunities. 3. Community-Based Participation in Coastal and Marine Resources Protection and Regulations. The fishery resources within the proposed marine protected seascape shall be managed pursuant to the provisions defined in RA 7160 otherwise known as the Local Government Code of 1991, RA 7596 known as NIPAS Act of 1992 and RA 8550 known as Fisheries Code of 1998.. In support, the conduct of massive public orientation and policy review regarding these laws and regulations will be undertaken. B. BONGO ISLAND, PARANG, MAGUINDANAO General Description of the Area.Parang is a coastal town of Maguindanao province under the Autonomous Region of Muslim Mindanao (ARRMM). The municipality has 21 barangays, 13 of which are coastal barangays and has a total area of 23,138 hectares. . It has one island called the Bongo Island with five (5) barangays. Said island has been proposed as a marine fish sanctuary and marine reserve. Demographic and Socio-Economic Profile. Parang has a total population of 49,562. Around 51 percent of the population are Christians, while 49 percent are Islam believers. The ethnic groups that dominantly E-4 prevail are Cebuano, Iranon and Maguindanao. Fishing is the primary occupation in the coastal barangays followed by land-base occupations such as employment in the services sector, farming and those employed in the government sector. Primary crops produced are copra, yellow corn, coconut, cassava, durian and marang. Monthly income is on the average Pp. 2,800.00 that is just enough to defray the household expenditures. Most of the people in Parang own their houses that are generally made of wood. They are equipped with electricity as lighting facility. The majority makes use of firewood for cooking, although there are some who use the LPG. Open wells and faucets are the source of potable water. Water-sealed toilets are widely used. Literacy rate is 88.85 percent. Average household size is 6. Coastal waters are the major source of fish and other marine products. However, overfishing and denudation of forests of Parang endangered the main source of livelihood of the subsistence fisherfolks and farmers. Problems that led to the deterioration and depletion of the coastal resources are attributed to the use of illegal fishing methods, massive cutting of trees in the hilly part of Paring and improper waste disposal of the residents at the coastal and neighboring areas. Critical habitat including mangroves are also destroyed due to these illegal practices employed in fishing as well as unfriendly activities of man to the environment. Existing Institutional Arrangements and Structures for Bongo Island In this coastal area, there are already existing Local Barangay Council structures actively involved in coastal resource related activities. These are the cooperatives for fishermen and the well-known FARMC which are established and mobilized in the coastal communities. The community-base participatory approach of managing the coastal resources in Parang is enhanced through these local organizations. Also, there are initial activities of the Project Management Office of the Illana Bay Management Council based at DA-ARMM such as coastal resource management planning, training, monitoring and evaluation as well as surveillance in the area. All activities are in cooperation with the Parang Municipal FARMC and the LGU-Parang. Existing Alternative Livelihood Projects in the Area Inventory of available alternative livelihood projects in the area did not reveal much. Most of the homebased alternative projects were assisted by the existing fishermen cooperatives, and those extended by the DA-Fisheries Sector. However, sustainability of these livelihood projects, which were sporadic and few is not assured due to limited funds. Training Needs Assessment The DA-Fisheries and the PMO staff of the Ilene Bay Management Council had been conducting training sessions and IEC activities in the coastal communities through the FARMC. These are along coastal and marine conservation and protection, fisheries management and Banta Data training. To date, funds come from the agency and foreign assistance extended by CIDA to the Council. 3. PROPOSED PROJECT INTERVENTIONS In support to the participatory approach of managing the proposed Bongo Island Marine Reserve and Sanctuary, the following will be considered: E-5 1. Support and enhance the existing community-based resource management efforts of the local FARMC, 2. Provide appropriate alternative livelihood projects for the fisherfolk organizations 3. Strengthen the institutional and local capabilities of the LGUs, GOs, NGOs and POs, particularly the FARMCs geared toward integrated and multi-sectoral coastal resource management of Parang. Indicative Activities To insure that indicative interventions can be successfully carried out, these will be in close coordination with the local government units, local leaders and concerned agencies. 1. Consultative activities and orientation of LGUs, concerned agencies and affected communities regarding resource management and protection of coastal town of Parang in general and Bongo Island as a protected area in particular. 2. Provision of appropriate alternative livelihood assistance packaged with seed capital, skills development and marketing assistance. Certain criteria will have to be established as bases of selecting appropriateness of the project. The identified priority choices which can be considered will include (a) goat raising, (b) duck raising, (c) salted duck egg production, (d) poultry production, (e) eucheuma or agar-agar farming, (f) “Lato” Caulerpa lentilifera culture, (g) retail trading, (h) dried fish processing, (i) handicraft and (j) bakery. 3. Institutional and capability building activities to enhance collaborative and community-based management for Parang, including preparatory social preparedness of the local people affected by the Bongo Island Marine Reserve and sanctuary. This will include relevant training sessions, workshops and education campaign. E-6 Annex F Philippines: Marine Conservation and Biodiversity Project On-Site Management Sites Proposed for GEF Financing CHARACTERISTICS Paril-Sangay Protected Seascape Bongo Island, Parang Maguindanao Size (km2) Population GEF Justification 1.2 km2 2.3 km2 Biological Diversity Current Status Main Threats Key Interventions (proposed) Other Existing or Proposed Programs Globally significant conservation area for green turtles (Chelonia Mydas), hawksbill turtles (Erythmochylis imbricata) and Dugongs All three important coastal marine habitats including coral reefs, seagrass beds and magrove forest. Cetaceans and whale shark common. Donauang Island also have birds and monkeys Proposed Protected Seascape. CEPERDS Draft Proclamation finished -harvesting of turtle eggs and slaughter of turtles for food -reports of use of cyanide -use of unfriendly fishing gears such as gillnets on reefs Biodiversity hotspot where presence of high biodiversity is threatened by various activities Contains 47 genera of corals, 83 species of reef fishes and 8 species of seagrasses including the rare Thalassodendrum ciliatum. Proposed fish sanctuary by the Integrated Illana Management Council (1998) -use of non-sustainable fishing practices such as explosives, cyanide -indiscriminate cutting of mangrove trees for fuel and charcoal trade -strengthening enforcement and effective management -environmental awareness and training programs for local communities -shift to the use of environment friendly gears -generation of alternative livelihood -environmental awareness and training programs for local communities -strengthening of enforcement and surveillance capabilities -generation of alternative livelihood -proposed mariculture of groupers -integrated seaweed/cage fish/oyster mariculture experiment -proposed reforestation of mangroves -extensive culture of Eucheuma spinosum F-1 ANNEX G Maps of the Project Areas Map 1. Overview of Project Area showing location of Project Areas of Maguindanao and sultan Kudarat Provinces. G-1 Map 2. Location of Paril-Sangay Protected Seascape in Sultan Kudarat Province. Map 3. Location of Bongo Island in Maguindanao Province G-2 Map. 4. Details of Bongo Island Site. G-3 LETTER OF COUNTRY ENDORSEMENT BY DESIGNATED OPERATIONAL FOCAL POINT