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Philippines

ACTIVITY DATA SHEET

PROGRAM: Philippines
TITLE AND NUMBER: Environmental Management Improved,* 492-004
STATUS: Continuing
PLANNED FY 2001 OBLIGATION AND FUNDING SOURCE: $4,364,000 DA
PROPOSED FY 2002 OBLIGATION AND FUNDING SOURCE: $3,367,000 DA
INITIAL OBLIGATION: FY 1995    ESTIMATED COMPLETION DATE: FY 2004

Summary: USAID has merged biodiversity conservation and global climate change activities under one strategic objective, "Environmental Resources Management Improved." This consolidation will focus scarce financial resources and increase synergy among ongoing and planned efforts. A new initiative under this strategic objective, the Integrated Resources Management (IRM) program, will strengthen local environmental governance to conserve biological diversity, stimulate economic growth, and resolve natural-resource use conflicts. Advisors will assist local government units to plan and carry out natural resource management activities within large land/seascapes; link increasing local government revenues with improved environmental management; and support environment rural enterprises, including renewable energy investments. The global climate change (GCC) program seeks to reduce the emission of greenhouse gases and to maintain/expand forest cover serving as carbon sinks. Program activities in power generation and transport sectors encourage the use of clean fuels such as natural gas as well as renewable energy sources such as hydropower, solar, and wind energy. As forest and coral cover increases with the adoption of conservation and sustainable practices, program activities will increase the sequestration of carbon dioxide and improve the maintenance of environmental services. Economic instruments, including water user fees and park entrance fees, will be developed to generate funding for the sustainable management of critical natural resources such as watersheds and coral reefs.

USAID's focus on conserving biological diversity responds to the grave threats facing the Philippines' unique biological heritage, recognized as one of the richest in the world per unit area. The Philippines is home to approximately 3,000 unique and endemic plant species and more than 500 of the world's 700 known coral species. Only 5% of the coral reefs are in excellent condition; only 20% of original mangrove forest remain; and less than 5% of old growth forests are intact. In addition, increasing urban and industrial wastes are polluting water, soil, and coastal resources. Managing these natural resources wisely is critical as they provide for food security, employment, and valuable environmental services such as water supplies for hydropower and irrigation.

In addition to these threats, power industry emissions in the Philippines have more than doubled over the last ten years as a result of economic and population growth, and due to the continued heavy use of fossil fuels to meet the country's energy needs. USAID's global climate change strategy helps mitigate greenhouse gas emissions from the power and transport sectors by expanding the use of clean fuels and new and renewable energy, as well as increased efficiencies in power generation, transmission, distribution, and end use.

Key Results: USAID assistance has been instrumental in developing innovative environmental policies to devolve authority for natural resource management to communities and local governments, a condition imperative for the sustainable use of natural resources and maintenance of environmental services. The experience of USAID and other donors, however, has demonstrated that local institutions need to be strengthened to carry out these new policies. Under the new IRM component, expected results include increased local revenue generation for improved environmental management, increased forest cover and improved management of coastlines. Under the GCC component, expected results are as follows: (a) to prevent the release of some 20 million metric tons of carbon dioxide (CO2)-equivalents into the atmosphere by 2002 with no adverse impact on economic growth through the use of cleaner fuels (such as natural gas, small-scale hydropower, wind, and solar energy); and (b) to increase efficiencies in power generation, transmission, distribution, and end use. The major quantitative impact of the global climate change program-to support development of the natural gas sector-is expected to be realized in 2002 when natural gas-fired power plants will be operational.

Performance and Prospects: IRM component will empower local government units (LGUs) and local organizations to conserve biological diversity and promote rural economic stability. Working through national and regional associations of LGUs and training institutions, training with follow-on technical assistance will be provided to strengthen LGU skills in such areas as revenue generation for improved environmental management; conflict resolution; large land/seascape conservation; and environment friendly enterprises. Program advisors will facilitate and coach participants in the preparation of action plans, obtaining funding, and implementing activities. Coaching LGUs to apply best practices for improved environmental management will strengthen their ownership and capabilities. The IRM component will focus on four key areas: increasing local revenues; supporting environmental advocacy; promoting environmentally responsible investments; and strengthening local environmental governance.

Integrated Resources Management: In FY 2001 USAID plans to obligate $1.364 million for the following IRM activities:

Increase local revenues. Local revenues will be increased through the use of environmentally-sound economic instruments. There is considerable potential to increase local government revenues from the improved management of natural resource assets such as public lands, private lands, coastal areas, water, and minerals. Promoting appropriate valuation of natural resources can also contribute to more efficient and sustainable use. The IRM component will help strengthen LGUs' ability to-

  • Increase real estate taxes on "alienable and disposable" lands, cultivated forest lands, and coastal areas by applying land/seascape zoning, re-classification, and re-evaluation techniques;
  • Increase local business taxes by (a) promoting joint ventures on community-managed forest lands and coastal areas; (b) supporting environmentally-responsible investments based on sound zoning; and (c) encouraging the filing of corporate taxes locally rather than in Manila;
  • Collect natural resource use fees such as water user fees, entrance fees for protected areas, and developmental fees for forest use; and
  • Determine the national/local sharing of revenues from natural resource use fees using economic incentive instruments, and facilitate the issuance of natural resource use permits.

Support environmental advocacy. LGUs will be trained to design, obtain funding for, and carry out effective communication plans. Communication strategies will identify host-country advocates, institutions, and advocacy groups to address critical issues such as overfishing by both commercial and municipal fishermen; intrusion of commercial fishermen in municipal waters; illegal logging; water pollution; and destruction of coral reefs.

Promote environmentally responsible investments. LGUs will be assisted to encourage private sector investments in the environment sector. Investment and enterprise development plans will aim to increase household incomes and employment opportunities. Providing security of land/seascape tenure and resource extraction rights, and transparency in determining the private sector/government sharing of benefits from resource-use are critical incentives for long-term stewardship and investment. The costs and benefits will be identified, for example, of providing key economic infrastructure such as post-harvest facilities and communal irrigation systems. Advisors will assist in brokering appropriate enterprises and investments such as joint ventures in tree/plantation crops and grower contracts with farmers/community organizations.

Strengthen local capacity in environmental management. As most biological diversity is located outside of protected areas, LGUs will be encouraged to work across sectors and jurisdictions. Local capability will be built to identify and address threats to biological diversity and promote the improved management of forest and coastal resources. The capability of local staff will be strengthened to resolve natural resource use conflicts, such as indigenous people's claims. Environmental service fees will be developed that directly support the maintenance of environmental resources. Finally, a local framework will be built for promoting collaboration with other donors within the environment sector and among other sectors, such as health and family planning.

Global Climate Change: In FY 2001 USAID will use $3 million for Global Climate Change (GCC). Under this component USAID fosters the use of innovative technology such as fuel cells and promotion of clean technologies such as natural gas. After passage of the power sector restructuring legislation, starting in 2001 USAID will take on the challenge of reducing the Philippine transportation sector's contribution to global climate change. Recent analysis indicates that the Philippine transportation sector now produces as much atmospheric carbon as the power sector. This issue is also directly associated with deteriorating quality of life in urban areas. This activity is a collaborative effort with other donors and government agencies involved in the implementation of the Clean Air Act.

Possible Adjustments to Plans: Over the next two years, USAID will bring to a close its remaining coastal and industrial activities in order to focus on integrated resources management. Development of this activity began in FY 2000 with implementation scheduled to begin in FY 2001.

Other Donor Programs: Natural resource management activities continue to be closely coordinated with the World Bank (WB), Japan, Asia Development Bank (ADB), the United Nations Development Program (UNDP), Sweden, and the Ford Foundation. For example, USAID collaborates with Japan and the WB on accessing soft loan funds for coastal management activities of local governments. Many USAID-developed best practices are now being adopted by two large ADB projects. USAID-funded technical assistance to improve energy sector policies continues to provide a basis for multilateral donors to extend major energy loans to the Philippines. USAID's assistance is helping the Philippine government meet conditionalities (in particular, development of new legislation) associated with over $1 billion in ADB and Japanese loan programs to support power sector restructuring and privatization. USAID also provided experts to a World Bank team exploring opportunities for expanded use of renewable energies. USAID's current program efforts in this area will contribute significantly to the development of a $200 million World Bank sector loan to the government of the Philippines. USAID also is collaborating with ADB to help the government meet the conditionalities related to the implementation of the "Air Quality Improvement in Metro Manila" and the "Clean Air" acts.

Principal Contractors, Grantees, or Agencies: USAID implements activities through GOP agencies; U.S. contractors; and U.S. and local NGOs, including the Philippine Department of Environment and Natural Resources, Chemonics; Conservation International, Enterprise Works Worldwide, Institute of Environmental Science for Social Change, International Institute for Energy Conservation, International Marinelife Alliance, PA Consulting, Tetratech, and the U.S. DOE-National Renewable Energy Laboratory.


* Previously notified as Environmental Resource Management Improved.

FY 2002 Performance Table

Philippines: 492-004

Performance Measures:

Indicator FY97 (Actual) FY98 (Actual) FY99 (Actual) FY00 (Actual) FY00 (Plan) FY01 (Plan) FY02 (Plan)
Indicator 1: Percentage change of coral cover inside marine sanctuaries NA -1 40 6 10 12 15
Indicator 2: Percentage change of coral cover adjacent to marine sanctuaries NA -10 -7 3 2 4 6
Indicator 3: Kilometers of shoreline where improved management of coastal resources is being implemented 0 170 741 1,410 1,200 2,100 3,000
Indicator 4: Percentage change of fish abundance adjacent to marine sanctuaries NA 0 70 345 5 10 15
Indicator 5: Risk to environment and human health NA 0 0 20 30 20 NA
Indicator 6: Percentage change of fish abundance inside marine sanctuaries NA 0 255 410 20 30 40

Indicator Information:

Indicator Level (S) or (IR) Unit of Measure Source Indicator Description
Indicator 1: IR Average percent change compared to baseline Biophysical survey data, contractor's activity report from University of the Philippines Marine Science Institute; TetraTech (contractor) Coral cover inside marine sanctuaries: Percent living coral cover inside and adjacent to six marine sanctuaries, using standard transect methods.
Indicator 2: IR Average percent change compared to baseline Biophysical survey data, contractor's activity report from University of the Philippines Marine Science Institute; TetraTech (contractor) Coral cover adjacent to marine sanctuaries: Percent living coral cover inside and adjacent to six marine sanctuaries, using standard transect methods.
Indicator 3: IR Kilometers of shoreline in core areas and expansion area Local government unit records, contractor's activity report, independent surveys from local government units; TetraTech (contractor); USAID staff Kilometers of shorelines from municipalities are counted when the following criteria in local implementation are reached: 1) Annual LG budget allocated for CRM; 2) Resources management organizations are formed and active; 3) Best CRM practices are being implemented; Data is collected annually.
Indicator 4: IR Average percent change compared to baseline Biophysical survey data, contractor's activity report from University of the Philippines Marine Science Institute; TetraTech (contractor) Fish abundance adjacent to marine sanctuaries: Average percent change (in comparison to base years) in fish abundance inside and adjacent to six marine sanctuaries, using standard survey methods
Indicator 5: IR Percent reduction of pollutants within exposure pathways Contractor's report, DENR field office report from Chemonics (contractor) and USAID Pollutants: harmful industrial chemicals, wastes, effluents and emissions such as heavy metals (lead, chrome, arsenic, mercury, silver, cadmium, others); organic pollutants such Persistent Organic Pollutants (POPs) and others; waste pesticides, herbicides and insecticides; inorganic chemicals such as cyanide and hydrogen sulfide; hazardous wastes regulated under RA 6969. Environmental Risk: Probability that an environmental condition caused by human activity will result in harm to the environment or human health. Exposure Pathways: Media pathways such as air, water, and food, which transport pollutants in the natural human environment
Indicator 6: IR Average percent change compared to baseline Biophysical survey data, contractor's activity report from University of the Philippines Marine Science Institute; TetraTech (contractor) Fish abundance inside marine sanctuaries: Average percent change (in comparison to base years) in fish abundance inside and adjacent to six marine sanctuaries, using standard survey methods

U.S. Financing

(In thousands of dollars)

  Obligations   Expenditures   Unliquidated  
Through September 30, 1999    10,858 DA 2,385 DA 8,023 DA
0 CSD 0 CSD 0 CSD
0 ESF 0 ESF 0 ESF
0 SEED 0 SEED 0 SEED
0 FSA 0 FSA 0 FSA
0 DFA 0 DFA 0 DFA
116,995 MAI 108,979 MAI 8,016 MAI
0 DCA 0 DCA 0 DCA
Fiscal Year 2000 0 DA 1,207 DA  
0 CSD 0 CSD
0 ESF 0 ESF
0 SEED 0 SEED
0 FSA 0 FSA
0 DFA 0 DFA
0 MAI 8,016 MAI
0 DCA 0 DCA
Through September 30, 2000 10,858 DA 3,592 DA 7,266 DA
0 CSD 0 CSD 0 CSD
0 ESF 0 ESF 0 ESF
0 SEED 0 SEED 0 SEED
0 FSA 0 FSA 0 FSA
0 DFA 0 DFA 0 DFA
116,995 MAI 116,995 MAI 0 MAI
0 DCA 0 DCA 0 DCA
Prior Year Unobligated Funds 0 DA  
0 CSD
0 ESF
0 SEED
0 FSA
0 DFA
0 MAI
0 DCA
Planned Fiscal Year 2001 NOA 4,364 DA  
0 CSD
0 ESF
0 SEED
0 FSA
0 DFA
0 MAI
0 DCA
Total Planned Fiscal Year 2001 4,364 DA  
0 CSD
0 ESF
0 SEED
0 FSA
0 DFA
0 MAI
0 DCA
      Future Obligations  Est. Total Cost 
Proposed Fiscal Year 2002 NOA 3,367 DA 15,000 DA 33,589 DA
0 CSD 0 CSD 0 CSD
0 ESF 0 ESF 0 ESF
0 SEED 0 SEED 0 SEED
0 FSA 0 FSA 0 FSA
0 DFA 0 DFA 0 DFA
0 MAI 0 MAI 116,995 MAI
0 DCA 0 DCA 0 DCA

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Last Updated on: May 29, 2002