ARB Master Plan

Technical Assistance Consultant’s Report

Project Number: 36540-01 May 2008

Philippines: Master Plan for the Agusan River Basin

Prepared by CTI Engineering International Co. Ltd; Halcrow; and Woodfiled Consultants, Inc.

Philippines

For Department of Environment and Natural Resources National Water Resources Board

This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. (For project preparatory technical assistance: All the views expressed herein may not be incorporated into the proposed project’s design.

Master Plan for the Agusan River Basin Projecr Draft Final Report

MASTER PLAN FOR THE AGUSAN RIVER BASIN PROJECT

FINAL REPORT

TABLE OF CONTENTS

LIST OF TABLES.........................................................................................................v

LIST OF FIGURES .......................................................................................................viii

ACRONYMS and ABBREVIATIONS ........................................................................... ix

1.0 INTRODUCTION ..............................................................................................1-1

1.1 BACKGROUND....................................................................................1-1

1.2 STUDY AREA.......................................................................................1-1

1.3 GOAL AND OBJECTIVES....................................................................1-1

1.4 APPROACH AND METHODOLOGY....................................................1-2

1.5 KEY ACTIVITIES..................................................................................1-2

2.0 PHYSICAL AND ENVIRONMENTAL CONDITION..........................................2-1

2.1 GEOGRAPHIC SETTING.....................................................................2-1

2.2 CLIMATE..............................................................................................2-3

2.3 RAINFALL ............................................................................................2-5

2.4 STREAMFLOW ....................................................................................2-7

2.5 GROUNDWATER.................................................................................2-9

2.6 ENVIRONMENTAL SETTING ..............................................................2-9

2.6.1 Natural Physical Environment ..................................................2-10 2.6.2 Biological Environment.............................................................2-13

3.0 SOCIO-ECONOMIC CONDITION ....................................................................3-1

3.1 ECONOMIC SETTING .........................................................................3-1

3.1.1 Economic Profile ......................................................................3-1

3.2 THE SOCIAL SETTING........................................................................3-10

3.2.1 Stakeholders of the Basin ........................................................3-11 3.2.2 Demographic and Socio-economic Profile ...............................3-15

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4.0 REVIEW AND ASSESSMENT OF RELEVANT POLICIES AND PLANS........4-1

4.1 INTERNATIONAL ORGANIZATIONS INITIATIVES ON WATER MANAGEMENT....................................................................................4-1

4.2 WATER POLICIES AND MULTI-LATERAL AGENCIES ......................4-2

4.3 NATIONAL POLICY OBJECTIVES ......................................................4-2

4.4 SECTOR POLICIES .............................................................................4-3

4.5 REGULATORY FRAMEWORK ............................................................4-4

4.6 REGIONAL AND PROVINCIAL POLICY OBJECTIVES AND TARGETS.............................................................................................4-9

4.6.1 Caraga Region .........................................................................4-9 4.6.2 Davao Region...........................................................................4-12

4.7 AGUSAN RIVER BASIN WATER POLICY...........................................4-14

4.7.1 Assessment of Policy Context ..................................................4-14 4.7.2 Harmonization of the Basin Policy............................................4-15

4.8 GENDER AND DEVELOPMENT..........................................................4-18

4.8.1 Gender, Age and Household Distribution .................................4-18 4.8.2 Gender Analysis .......................................................................4-18 4.8.3 Policies and Institutions on Gender ..........................................4-24

5.0 INSTITUTIONAL FRAMEWORK .....................................................................5-1

5.1 Institutional Participation.......................................................................5-1

5.1.1 Existing Institutional Set-up in National Water Resources Management ...........................................................................5-1

5.1.2 Institutional Stakeholders in the ARB .......................................5-1

5.2 MAJOR INSTITUTIONAL IMPEDIMENTS ...........................................5-2

5.2.1 National Level...........................................................................5-2 5.2.2 ARB Level ................................................................................5-3

5.3 FORMATION OF THE AGUSAN RIVER BASIN ORGANIZATION .....5-6

5.3.1 Tapping the Potentials of Existing Basin Organizations ...........5-7 5.3.2 Existing Working Models ..........................................................5-7 5.3.3 Imperatives for RBO Formation................................................5-12

5.4 FUNDING THE AGUSAN RIVER BASIN ORGANIZATION AND ITS DEVELOPMENT ACTIVITIES...............................................5-15

5.4.1 Identified Funding Sources of Selected IRBM Organizations ..5-15 5.4.2 Funding the Agusan RBO ........................................................5-17

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5.5 RBO FORMATION AND DEVELOPMENT...........................................5-21

5.5.1 Basin Governance Options ......................................................5-21 5.5.2 The Proposed RBO..................................................................5-22 5.5.3 The Proposed Structure ...........................................................5-25

6.0 PARTICIPATORY APPROACHES AND DEVELOPMENT STRATEGIES......6-1

6.1 KEY ENVIRONMENTAL ISSUES AND STAKEHOLDER PRIORITIES.6-1

6.2 BASIN REALITIES AND KEYS TO INTEGRATION .............................6-5

6.2.1 Key Basin Realities .................................................................6-7 6.2.2 Keys to Integration ...................................................................6-8

6.3 ARBMP DEVELOPMENT VISION,GOALS AND OBJECTIVES...........6-11

6.3.1 Development Vision .................................................................6-11 6.3.2 Development Goal....................................................................6-12 6.3.3 Development Objectives ..........................................................6-12 6.3.4 VGO and the ARB Policy .........................................................6-13

6.4 ARB DEVELOPMENT STRATEGY......................................................6-15

6.4.1 General ....................................................................................6-15 6.4.2 Why a Governance Initiative and RBO Formation Strategy .....6-15

6.4.3 Why an Intervention Initiative and WRM Intervention Strategy..6-16 6.4.4 Why a Knowledge Development Initiative and GIS Development

Data Banking Strategy .............................................................6-17

6.5 UNITY OF THE DEVELOPMENT STRATEGY ....................................6-17

6.6 FROM POLICY TO STRATEGY TO PRINCIPLES ..............................6-19

6.7 FROM POLICY TO STRATEGY TO PROJECTS.................................6-20

7.0 BASIN PROGRAMS AND PROJECTS............................................................7-1

7.1 ASSESSMENT OF BASIN WATER CONTROL STRUCTURE............7-2

7.1.1 Irrigation Development .............................................................7-2 7.1.2 Water Supply Systems .............................................................7-8 7.1.3 Flood Control............................................................................7-12 7.1.4 Roads and Bridges...................................................................7-13 7.1.5 River Transport ........................................................................7-13 7.1.6 Hydropower ..............................................................................7-14

7.2 PROGRAMS/PROJECTS BY KEY THEME .........................................7-14

7.2.1 Water Quality Management Program .......................................7-14 7.2.2 Flood Management Program....................................................7-15 7.2.3 Water Resources Development Program.................................7-17 7.2.4 Watershed Management Program ...........................................7-18

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7.2.5 Agusan Marsh and Wildlife Sanctuary (AMWS) Management Program ...................................................................................7-23

7.2.6 Indigenous Peoples Development Program .............................7-24 7.2.7 River Basin Organization Development Program.....................7-27

8.0 IMPACT ASSESSMENT .................................................................................8-1

8.1 STRATEGIC ENVIRONMENTAL ASSESSMENT................................8-1

8.1.1 Objectives ................................................................................8-1 8.1.2 Methodology.............................................................................8-1 8.1.3 Categories of Projects ..............................................................8-3 8.1.4 Key Environmental Issues........................................................8-3 8.1.5 Potential Environmental Impacts ..............................................8-3 8.1.6 Cumulative Impacts and Mitigating Measures ..........................8-8 8.1.7 Potential Benefits .....................................................................8-15 8.1.8 Institutional Requirements and Environmental Monitoring .......8-20

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LIST OF TABLES

Table 2-1 List of Tributaries

Table 2-2 List of Rainfall Stations

Table 2-3 List of Streamflow Gauging Stations

Table 2.4 Surface Water Potential of Sub-Basins, ARB, 20000

Table 3-1 Gross Value Added by Industry, Caraga Region ( in million at constant 1985 prices )

Table 3-2 Gross Value Added by Industry, Davao Region (in million pesos at constant 1985 prices )

Table 3-3 Caraga Region: Projected Gross Regional Domestic Product

Table 3-4 Davao Region Fross Regional Domestic Products – Actual and Targets

Table 3-5 Palay Production by Province, Caraga Region, 2002-2003

Table 3-6 Corn Production by Province, Caraga Region, 2002-2003

Table 3-7 Area and Production of Major Crops, 1998 Compostela Valley

Table 3-8 Employed Persons by Industry Group, Caraga Region, 1997-2002

Table 3-9 Employed Persons by Industry Group, Davao Region, 2003

Table 3-10 Family Income and Expenditure by Region, Philippines, 2001-2003

Table 3-11 Annual Per Capita Poverty Threshold and Poverty Incidence, 1997-2000

Table 3-12 Distribution of Municipalities and Cities in ARB Provinces, 2005

Table 3-13 Formal Users of Forestry, Mineral and Fisheries Within the ARB, 2005

Table 3-14 Population Size by Municipality and Growth Rates, ARB, 1960-2000

Table 3-15 Gender and Age Distribution of the Population in the ARB, 1980-1990

Table 3-16 Crude Birth Rate and Death Rate (Per 1000 population) ARB, 2004

Table 3-16 Mother Tongue in the ARB, 1980-2000

Table 3-17 Population by Ethnicity in the ARB, 2000

Table 3-18 Ethnics Groups in Barangays Covered by the Field Study, ARB, 2005

Table 3-19 Land Ownership among Households in the ARB, 2000

Table 3-20 Estimated Percentage of Households With Titled Land in Study Barangays, ARB, 2005

Table 3-21 Land Use and Distribution, ARB, 2005

Table 3-22 Main Sources of Household Income, Gibong River Watershed, 2002

Table 3-23 Sources of Drinking Water among Households, ARB, 1980-1990

Table 3-24 Consensus on Sufficiency of Drinking Water ARB, October 2005 (N= 19 Barangays)

Table 3-25 Consensus on Drinking Water Characteristics ARB, October 2005 (N= 19 Barangays )

Table 3-26 Irrigated Ricelands in the ARB, 2004

Table 3-27 Consensus on Sufficiency of Irrigation Water ARB, October 2005 (N= 19 Barangays)

Table 3-28 Reasons for Insufficiency of Irrigation Water ARB, October 2005 (N= 19 Barangays)

Table 3-29 Morbidity (Per 100,000 Population), ARB, 2004

Table 3-30 Five-Year Mortality (Per 100,000 Population) ARB, 1999-2004

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Table 3-31 Rate of Toilet Use of Households by Type of Toilet ARB, 1980-2000

Table 3-32 Cooking Fuel of Households, ARB, 1980-2000

Table 3-33 Walling Materials Used by Households, ARB, 2000

Table 3-34 Wellness Rating of Families by Wellness Indicators, ARB, 2002

Table 3-35 Percentage of Households by Type of Conveniences Owned, ARB, 1980-2000

Table 3-35 Positive Changes Noted in the Past 20 Years in Studied Barangays, ARB, 2005

Table 3-36 Cooperative Efforts in Barangays, ARB, 2005

Table 4-1 Observations on Policy Environment on Water in the Philippines

Table 4-2 ARB Water Policy and GOP Water Policy, 2006

Table 4-3 ARBMP Water Policy, 2006


Table 4-5 Gender Analysis Framework, ARB, 2005

Table 4-6 Literacy Level (10 Years Old and Over), ARB, 1980-2000

Table 4-7 Average Number of Tasks Done by Men and Women, ARB, 2005

Table 4-8 Number of Barangays by Type of Changes in Work Distribution Between Men and Women (last 20 Years Ago), ARB, 2005

Table 4-9 Average Number of Decision Situations Handled by Men and Women, ARB, 2005

Table 4-10 Average Number of Assets Owned by Men and Women, ARB, 2005

Table 4-11 Holders of Forest Product User and Distributor Permits by Gender, ARB, 2005

Table 4-12 Key Issues and Objectives of Caraga Gender Development DirectionalPlan, 2006-2010

Table 5-1 Sources of Funds for River Basin Organizations

Table 5-2 Summary of Aggregate Statement of Income and Expenses For the Years Ended December 31, 2004 For Agusan del Norte, Butuan City, Agusan del Sur and Compostela Valley (In thousand pesos)

Table 5-3 Summary of Aggregate Statement of Income and Expenses, Local Government Units in the Agusan River Basin For the Years December 31, 2003 and 2004, All Funds (In thousand pesos)

Table 5-4 Approved Water Permits by the NWRB, 2004

Table 6-1 Primary Environmental Issues (Needs Assessment) ARB, 2005

Table 6-2 Priority Concerns on the Agusan Watershed, 2005

Table 6-3 IRBM Attributes and Preconditions and ARB Gaps/ Problems ARB, 2005-2006

Table 6-3 Priority Issues/ Special Case Themes in the ARB, 2005-2006

Table 6-4 Vision Statements from Stakeholder Groups December 2005 Workshop, Butuan City

Table 6-5 ARB VGO and Water Policy, 2005

Table 6-6 ARB Policy Areas and Development Objectives, 2005

Table 6-7 Key Themes, Intervention Initiative, ARB Master Plan, 2005-2006

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Table 6-8 Vertical and Horizontal Integration, ARB Development Strategy 2005-2006

Table 6-9 Policy Initiatives to Development Programs/ Projects ARB Master Plan, 2006

Table 7-1 The 17 Sub-River Basins of the ARB, 2005-2006

Table 7-2 NWRB Water Permits, Selected Uses, ARB, 2005

Table 7-3 Communal Irrigation Systems, ARB, 2004

Table 7-4 National Irrigation Systems, ARB, 2004

Table 7-5 Proposed Dam Sites, ARB

Table 7-6 Water Permits and Discharges, Buenavista WD ARB, 2005

Table 7-7 Water Permits and Discharges, Bayugan WD ARB, 2005

Table 7-8 Water Permits and Discharges, Prosperidad WD ARB, 2005

Table 7-9 Water Permits and Discharges, San Francisco WD ARB, 2005

Table 7-10 Water Sources of Level III- Served Municipalities ARB, 1999

Table 7-11 Water Permits and Discharges, Nabunturan WD ARB, 2005

Table 7-12 Water Rates, Selected Water Districts

Table 7-13 Forecasted Municipal Water Demand ARB, 2000-2020 (unit: 1,000 cu.m)

Table 7-14 Forecasted Industrial water Demand ARB, 2000-2020 (unit: 1,000 cu.m)

Table 7-15 Water Balance (Municipal & Industrial Demand) ARB, 2005-2020

Table 7-16 Flood Control Structures, ARB, 2005

Table 7-17 Proposed Hydropower Projects, ARB

Table 7-18 Estimated Cost of Projects in Water Quality Management Program ARB Master Plan, 2005-2006

Table 7-19 List of Proposed Flood Management Projects ARB Master Plan, 2005-2006

Table 7-20 List of Water Resources Development Projects ARB Master Plan, 2005-2006

Table 7-21 List of Watershed Management Projects ARB Master Plan, 2005-2006

Table 7-22 List of Agusan Marsh and Wildlife Sanctuary Management Projects ARB Master Plan, 2005-2006

Table 7-24 List of Indigenous Peoples Development Projects, ARB Master Plan, 2005-2006

Table 7-25 List of Agusan River Basin Organization Development Projects ARB MPlan,2005-2006

Table 8-1 Checklist for Screening of Potential Environmental Impacts ARB Master Plan

Table 8-2 Simplified Screening Matrix of Environmental Impacts SEA, ARB Master Plan

Table 8-3 Summary of Significant Adverse Impacts & Mitigation Measures SEA, ARB Master Plan

Table 8-4 Simplified Screening Matrix of Cumulative Impacts SEA, ARB Master Plan

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LIST OF FIGURES

Figure 1 Location of Project Area, ARB, 2005-2006

Figure 2-1 Administrative and Basin Boundaries

Figure 2-2 Climatological Map

Figure 2-3 Location of the Rainfall Stations

Figure 2-4 Location of Streamflow Gauging Stations

Figure 3-1 2005 Gross National Regional Domestic Product

Figure 3-2 2005 per capita GRDP

Figure 3-3 Thousand Persons Employed, CARAGA 2001-2005

Figure 3-4 Comparative Distribution of Municipalities, ARB, 2005

Figure 3-5 Percentage Distribution of the ARB Population by Province, 2000

Figure 5-1 Proposed Structure for the Agusan River Basin Organization

Figure 6-1 Conceptual Framework of IRBM for Agusan River Basin

Figure 6-2 Development Approach to IRBM for Agusan River Basin

Figure 6-3 IRBM Strategy for the Agusan River Basin

Figure 7-1 Location of Projects for Water Quality Management Program, ARB Master Plan, 2005-2006

Figure 7-3 Location of Projects for Flood Management Program, ARB Master Plan, 2005-2006

Figure 7-4 Location of Projects for Water Resources Development Program, ARB Master Plan, 2005-2006

Figure 7-5 Location of Projects for Watershed Management Program ARB Master Plan, 2005-2006

Figure 7-6 Location of AMWS Management Program Projects, ARB Master Plan, 2005-2006

Figure 7-7 Location of Projects for Indigenous Peoples Development Program, ARB Master Plan, 2005-2006

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LIST OF ANNEXES

ANNEX 2A: RAINFALL INTENSITY DURATION FREQUENCY (RIDF)

ANNEX 2B: STREAMFLOW AVAILABILITY

ANNEX 2C: WATER BALANCE ANALYSIS

ANNEX 2D: FLOOD SIMULATION

ANNEX 2E: VULNERABILITY OF ARB TO HAZARDS

ANNEX 2F: ASSESSMENT OF MERCURY CONTAMINATION OF AGUSAN RIVER SYSTEM

ANNEX 2G: BIO-PHYSICAL FEATURES OF THE AGUSAN RIVER BASIN

ANNEX 2H: BIO-PHYSICAL FEATURES OF ARB SUB-BASINS

ANNEX 2I: LAND USE AND LAND COVER

ANNEX 2J: MANAGEMENT OF AGUSAN MARSH AND WILDLIFE SANCTUARY

ANNEX 4A: GENDER ACTION PLAN

ANNEX 5A: SECRETARIAT “ROLL-OUT” STRATEGY

ANNEX 6A: INTER-RELATED CONCERNS

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ACRONYMS AND ABBREVIATIONS

AAGR Annual Average Growth Rate ADB Asian Development Bank AFF Agriculture, Fishery and Forestry AFMA Agriculture and Fisheries Modernization Act AMWS Agusan Marsh and Wildlife Sanctuary ARB Agusan River Basin ARBA Agusan River Basin Authority ARBMP Agusan River Basin Master Plan ARBO Agusan River Basin Organization ARMM Autonomous Region of Muslim Mindanao BOD Biological Oxygen Demand BOT Build-Operate Transfer BPO Business Process Outsourcing BSWM Bureau of Soils and Water Management CA Commission on Audit

CAR Cordillera Administrative Region CARP Comprehensive Agrarian Reform Program CBFMA Community-Based Forest Management Agreements CEPA Communication, Education and Public Awareness CIP Carbon-in-pulpCIS Communal Irrigation Systems CLT Certificate of Land Transfer CLUP Comprehensive Land Use Plan CN cyanideCOSTMA Co-o, Sinug-ang, Tinagoand Masabong CPPAP Comprehensive Priority Protected Areas Project CSC Certificate of Stewardship Contract DA Department of Agriculture DA-BFAR DA- Bureau of Fisheries and Aquatic Resources DAO DENR Administrative Order DENR Department of Environment and Natural Resources DepEd Department of Education DIDP Davao Integrated Development Program DO Dissolved Oxygen DOE Department of Energy DOH Department of Health DOT Department of Tourism DPWH Department of Public Works and Highways EHS Environmental Health and Sanitation EIA Environmental Impact Assessment EMB Environmental Management Bureau EMP Environmental Management Plan EU European Union EVAT Expanded Value Added Tax FAME Fishery, Agri-Forestry, Mineral and Ecotourism FAO Food and Agriculture Office GAD Gender and Development

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GDP Gross Domestic Product GIS Geographic Information System GMA Ginintuang Masaganing Ani GOCC Government-owned and Controlled Corporation GOP Government of the Philippines GRDP Gross Regional Domestic Product GWP Global Water Partnership Hg mercuryICCs Indigenous Cultural Communities IPM Integrated Pest Managements IPs Indigenous peoples IRA Internal Revenue Allotment IRBM Integrated River Basin Management IT Information Technology IUCN International Union for the Conservation of Nature IWRM Integrated Water Resources Management JBIC Japan Bank for International Cooperation JICA Japan International Cooperation Agency LADA Lower Agusan Development Alliance LADP Lower Agusan Development Project LAMP Land Administration and Management Project LCEs Local Chief Executives LGAs Local Government Agencies LGUs Local Government Units LFPR Labor Force Participation Rate LLDA Laguna Lake Development Authority LMDA Lake Mainit Development Alliance LWUA Local Water Utilities Administration MAP Minerals Action Plan MDB Murray-Darling Basin MDG Millennium Development Goals MIS Management Information System MMT Multipartite Monitoring Teams MOA Memorandum of Agreement MOOE Miscellaneous and Other Operating Expenses MSU- Naawan Mindanao State University Naawan MT Metric tons MTPDP Medium-Term Philippine Development Plan MWSS Metropolitan Waterworks and Sewerage System N NitrogenNCRFW National Commission of the Role of Filipino Women NCR National Capital Region NEDA National Economic and Development Authority NGOs Non Governmental Organizations NIA National Irrigation Administration NIPAS National Integrated Protected Areas NIPAS National Integrated Protected Areas System NRMP Natural Resources Management Program

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NSCB National Statistical Coordination Board NSO National Statistics Office NTFP Non-timber Forests Products NWRB National Water Resources Board NWRB National Water Resources Board NWRC National Water Resources Council ODA Official Development Assistance ODA Official Development Assistance OPA Office of the Provincial Agriculture OPV Office of the Provincial Veterinarian P PhosphorousPAGASA Philippine Atmospheric, Geophysical and Astronomical Services

Administration PAP Public Awareness Pan PBCPP Philippine Biodiversity Conservation Priority-setting Program PCEEM People Collaborating for Environmental and Economic Management PD Presidential Decree PENRO Provincial Environment and Natural Resources Office PHO Provincial Health office PIA Philippine Information Agency PIA Philippine Information Agency PIPs Pump Irrigation Projects PPA Philippine Port Authority PPDCs Provincial Planning and Development Coordinators PPFPs Provincial Physical Frameworks PlansPPGD Philippine Plan for Gender-Responsive Development PPPPs Policies, Plans, Programs and Projects PSIWRM Philippine Strategy for Improved Watershed Resources Management PTFWRDM Presidential Task Force on Water Resources Development and

ManagementRA Republic Act RBCO River Basin Control Office RC Resource Capital RDC Regional Development Council RIARC Regional Integrated Agricultural Research Center RIPs River Irrigation Projects RIS River irrigation System RPFP Regional Physical Framework Plan RSALUP Regional Sustainable Agriculture Land Use Plan RTDs Regional Technical Directors RWDC Rural Waterworks Development Corporation SAFDZs Startegic Agricultural and Fisheries Development Zones SEA Strategic Environmental Assessment SEC Securities and Exchange Commission SIDA Swedish International Development Agency SMEs Small and Medium Enterprises SOCCSKSARGEN South Cotabato, Cotabato City, Sultan Kudarat, Sarangani and

General Santos City TA Technical Assistance

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TG Theme Groups TLW Talomo-Lipadas Watershed TSS Total Suspended Solids TWG Theme Working Groups ULEG Unified Local Environmental Governance UN United Nation UNCED UN Conference on Environment and Development UNDP United Nations Development Program UNIDO United Nations International Development Organization VGO Vision, Goals and Objectives WB World Bank WCED World Council on Environment and Development WDs Water Districts WQMA Water Quality Management WRMPP Water Resources Policy Paper WWC World Water Council WWF World Water Forums

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INTRODUCTION

Master Plan for the Agusan River Basin Project Final Report

1.0 INTRODUCTION

1.1 BACKGROUND

The Agusan River Basin (ARB) Master Plan (ARBMP) Project is a Technical Assistance (TA) provided by the Asian Development Bank (ADB) to the Government of the Philippines (GOP) here represented by the Department of Environmental and Natural Resources (DENR) and the National Water Resources Board (NWRB) as co-Project implementers.

The TA Study is commissioned to the Consultants consisting of CTI Engineering International Inc. (CTII, Japan), Halcrow (UK), and Woodfields Consultants Inc. (Philippines).

The TA is designed into two (2) phases. Phase I involves the formulation of the Water Policy and Development Strategy; and Phase II, the Master Plan. Total Project duration is 12 months, from August 2005 to July 2006.

1.2 STUDY AREA

The Agusan River Basin is the third largest river basin of the Philippines with drainage area of 10,921 km². It is located in the northeastern part of Mindanao as shown in Figure 1-1. The Agusan River passes mainly through three (3) provinces in Region XI and Caraga. The River originates from the slopes of Davao Oriental, traverses northward through Compostela Valley, Agusan Marsh in Agusan del Sur, and Agusan del Norte, before draining into Butuan Bay.

Figure 1-1 Location of Project Area, ARB, 2005-2006

1-1


1.3 GOAL AND OBJECTIVES

The goal of the Master Plan is to map out a development strategy that, once implemented, will promote optimal development of resources and reduce poverty in the Agusan River Basin. With reference to the TOR, the specific objectives of the TA are as follows:

�� Conduct of extensive consultations with stakeholders in the Agusan River Basin;

�� Formulation of a plan to strengthen IRBM capability in relevant government organizations as well as people in communities; and

�� Identification of appropriate institutional arrangements for managing the Basin

1.4 APPROACH AND METHODOLOGY

The TA provided by ADB will assist DENR-NWRB in preparing a Master Plan for the Agusan River Basin in Mindanao with the Integrated River Basin Management (IRBM) approach as its development framework. The process shall involve participation of all stakeholders, including civil society, the private sector, local government units (LGUs), and the National Government. IRBM denotes the implementation of Integrated Water Resources Management (IWRM), while IWRM as define by GWP is a process which promotes the coordinated development and management of water, land, and related resources in order to maximize the resultant economic and social welfare in an equitable manner without compromising the sustainability of ecosystems.

Implementing an IWRM process is particularly a question of getting the three pillars right on i) Moving towards an enabling environment of appropriate policies and strategies for sustainable development and management; ii) Putting in place the institutional framework through which the policies and strategies may be implemented; and iii) Setting up the instruments required by these institutions for appropriate action. The diagram showing the linkages of the pillars to the master plan in order to attain the vision, goal and objectives is shown in Figure 1-2.

APPROPRIATE

POLICIES and

LEGISLATIONS

INSTITUTIONAL

FRAMEWORK IN

PLACE

MANAGEMENT INSTRUMENT

SET

VISION

OBJECTIVES

GOAL

VISION

Master Plan for the Agusan River Basin

Strategies/Activities/Sub-Activities

Programs/Projects

1-2Figure 1-2 Three Pillars Linkages Diagram


1.5 KEY ACTIVITIES

The TOR for the Consulting Services, as designed by ADB, consists of task activities grouped into two (2) phases as follows.

Phase 1: Review of Water Policy and Strategy for Basin Development

Phase 1 involves an elaboration of a Development Strategy for the Basin, while the highlights of major activities are:

(i) Collection of relevant statistical data relating to climatic, hydrologic, geographic, hydro geological, environmental and socioeconomic conditions in the Basin; and review of existing policies and strategies in water-related sectors. It includes a review of the role and sustainability of river basin organizations, resource transfer mechanisms between downstream residents and poor people in the upstream living in watershed areas, and participatory approaches for stakeholder involvement in drawing up the Master Plan.

(ii) Conduct of intensive consultation meetings with stakeholders in the downstream, midstream and upstream areas to identify needs and resolve conflict of interests, and determine approaches for future development of the Basin while protecting environmental sensitive areas.

(iii) Assessment of the role of existing basin organizations, such as Laguna Lake Development Authority and Agno River Basin Commission, with analysis of the issues on sustainability of inactive organizations, such as the Cagayan River Basin Commission and Bicol River Basin Commission.

(iv) Firming up of the development strategy for the Agusan River Basin, taking into consideration the outcome of stakeholder consultations. The Consultants to hold a workshop at the end of Phase 1 with representatives from the DENR, NWRB, Department of Agriculture (DA), NIA, Department of Public Works and Highways (DPWH), four (4) provincial governments of Northeastern Mindanao, Butuan City government, non-government organizations (NGOs), and other stakeholders. The workshop shall be the venue for discussing the Basin Development Strategy as well as the results to be presented in the Interim Report. The development strategy will be discussed at the Tripartite Meeting among representatives from the Government, theConsultants, and ADB.

Phase 2: Formulation of a Master Plan

The key activity involves the formulation of a Master Plan for the Agusan River Basin based on the Development Strategy agreed upon at the end of Phase 1. The Master Plan will identify measures for strengthening capability for IRBM, and assess the necessity for the Agusan River Basin Commission. Likewise, it will include the prioritized list of potential projects in irrigation, watershed restoration and management, environmental protection, hydropower, domestic and industrial water supply and other sectors, with preliminary cost estimates of each project. This will be presented and discussed in a Final Workshop, and will serve as baseline by the Government and ADB and other development partners for future development activities in the Basin.

1-3

PHYSICAL AND ENVIRONMENTAL CONDTION


2.0 PHYSICAL AND ENVIRONMENTAL CONDITION

2.1 GEOGRAPHIC SETTING

An understanding of the physical system and its interaction with the environment is a prerequisite for an effective planning and management of water resources.

The Agusan River Basin is a strategic water resource forming three (3) sub-basins in the northeastern portion of Mindanao, popularly referred to as the Lower, Middle, and Upper Agusan River basins.

�� Lower Agusan River Basin (Downstream Watershed), which is the area downstream of the Agusan wetland along the downstream reach from Talocogon in Agusan del Sur Province;

�� Middle Agusan River Basin (Midstream Watershed), which is the area along the reach between Talocogon and Sta. Josefa in Agusan del Sur Province including the Agusan wetland; and,

�� Upper Agusan River Basin (Upstream Watershed), which is the area along the upstream reach from Sta. Josefa in Compostela Valley Province

The Agusan River flows through three (3) provinces of Agusan del Norte, Agusan del Sur and Compostela Valley in Mindanao as shown in Figure 2-1. It is the third largest river in the Philippines with a total catchment area of about 10,920 km². Fed by eleven (11) principal tributaries, the 350-km river originates from the slopes of Mounts Mayo and Tagopo in Compostela Valley, traverses northward through Compostela Valley, Agusan Marsh in Agusan del Sur, and Agusan del Norte, before draining into Butuan Bay. The Basin is comprised of 11 principal river systems as listed in Table 2-1.


2-1



Table 2-1 List of Tributaries

Drainage Area Estimated Annual

(sq. kms.) Run-off (MCM)

10315 Agusan 10,921 27,88010316 Ojot 765 19,52310317 Wawa 795 2,03010419 Andanan 380 97010318 Libang 228 58210319 Maosam 418 1,06710320 Kasilan 284 72510321 Gibong 824 2,10410322 Adgaoan 965 2,46410323 Simulao 944 2,41010324 Kayonan 802 2,04810325 Haoan 664 1,695

NWRB

CodeRiver Basin

The Agusan River Basin is an elongated half-graben structure closely related to the Philippine Fault Zone which transverses through the centre from north to south. The major physiographic features of the basin are the Pacific Cordillera on the east and south, the Central Cordillera on the west and the Davao-Agusan trough in the central part. The Pacific Cordillera forms the eastern and southern boundaries of the region and separates it from the Pacific Ocean. Peak elevations range from 1,700 m along the eastern boundary and 2,500 m in the southern mass. A low section with elevations of a couple hundred meters exists adjacent to the central portion of the basin. The Central Cordillera is a discontinuous mountain range and volcanic chain having peak elevations over 1,700 m.

The southern portion of the basin, approximately 65 km in length, is narrow and mountainous with an average width of only 25 km. The remaining basin averages 50 – 70 km in width. Within the wider portion of the basin, an alluvial plain occupies the central part. This central flood plain slopes gently downwards to the north and is generally less than 50 m above sea level and the average width is approximately 30 km. Foothills occupy the area between the central alluvial plain and the mountains.

An essential feature of the Basin is the wetland located in the middle reach of the river (Middle Agusan), known as Agusan Marsh, which serves a flood retention basin that cuts peak discharge of flash floods to downstream areas. The wetland also acts as a sediment trap during flood season.

The wetland harbors unique and pristine habitats like sago, peat swamp forests and snails carrying schistosomiasis parasites. It is also the habitat of rare and endangered fauna. Physically, the Agusan Marsh is about 19,200ha, 14,836ha of which was proclaimed a Wildlife Sanctuary in 1996 and is registered under the Ramsar Convention, being the most important freshwater wetland in the country. The Marsh is also a designated protected area under the National Integrated Protected Areas System (NIPAS).

2.2 CLIMATE

The Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) utilizes three climatic classification systems, namely: Corona, Hernandez, and Koppen. The Corona classification gives emphasis on season type, the Hernandez on the number of wet and dry months, and the Koppen on the temperature range and the amount of rainfall in the driest month.

Based on Corona Climatological Classification, the climate of the Agusan River Basin is generally classified as Type 2, which is characterized by the absence of a dry season and a very pronounce maximum rainfall occurring from November to January. However, the southern portion of the

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basin, which covers the area of Compostela Valley exhibits the characteristic of Type 4. The climate of the basin is described as no dry season with a very pronounced maximum rainfall during the months of November to January.

Similarly, under the Hernandez classification, the basin belongs to Type A or rainy throughout the year and under Koppen, Type A for tropical wet climate.

A map of the basin with the areas classified under the different types of climatic conditions is shown in Figure 2-2.

Figure 2-2 Climatological Map

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2.3 RAINFALL

Within the Agusan River Basin, the Philippine Atmospheric, Geophysical, and Astronomical Services Administration (PAGASA) maintains only one rainfall recording station, which is located at Bancasi Airport, Butuan City. Other nearby PAGASA stations include: Surigao City; Hinatuan, Surigao del Sur; Cagayan de Oro, Misamis Oriental; Davao City; and Malaybalay, Bukidnon. The data from these stations is almost continuous over the last 20 years.

Within the basin, daily rainfall information was made available from NIA irrigation system offices. Generally this data is collected at the office compound and at the site of the irrigation diversion structure, but the record length is not as long as that from the PAGASA stations. However, this information is better distributed throughout the basin. Additional historic information, usually in the form of monthly averages, has been extracted from previous reports. A summary of the recording stations is given in Table 2-2.

Table 2-2 List of Rainfall Stations

ProvinceLatitude

Longitude

Year of

Record

Maintaine

d by

Elevation

Above

msl (m)

1. Butuan City Agusan del Norte 8o 57' 1960 - 2001 PAGASA 18.00125o 33'

La Suerte, Prosperidad Agusan del Sur 8o 27' 1981 - 2001 NIA 48.00

Pilot Demo Farm, GRIS 125o 54'

Sta. Irene, Bayugan Agusan del Sur 8o 44' 1981 - 2001 NIA 100.00

ARIS 125o 57'

Gagbas, Bayugan Agusan del Sur 8o 47' 1991 - 2000 NIA 38.00

Andanan RIS Compound 125o

Patin-ay Agromet Station Agusan del Sur 8o 36' 1970 - 1999 DA 45.00

Prosperidad 125o 53'

6. NIA - PIO Agusan del Sur 8o 27' 1989 - 1998 NIA 92.00

Rosario 125o 53'

7. Simulao RIS Agusan del Sur 8o 03' 1983 - 2001 NIA 60.00

Trento 126o 04'

Tagum Agromet Station * Davao del Norte 7o 25' 1972 - 2000 PAGASA 18.00

Twin River 125o 48'

9. Malaybalay * Bukidnon 8o 09' 1949 - 2000 PAGASA 627.00125o 05'

10. Hinatuan * Surigao del Sur 8o 22' 1971 - 2000 PAGASA 3.00126o 20'

11. Davao City * Davao del Sur 7o 07' 1902 - 2000 PAGASA 18.00125o 39'

12. Sagbayan, San Miguel * Surigao del Sur 8o 56' 1990 - 2000 NIA 15.00

Tago RIS 126o 02'

13. Compostela Compostela Valley 7o 35' 1970 - 2000 NIA 140.00

Batutu RIS 126o 6'

CMU, Musuan * Bukidnon 7o 53' 1978 - 1999 PAGASA 350.00125o 02'

Cagayan de Oro City * Misamis Oriental 8o 29' 1908 - 1999 PAGASA 6.00124o 38'

Surigao City * Surigao del Norte 9o 48' 1902 - 2000 PAGASA 39.00125o 30'

Lumbia Airport * Misamis Oriental 8o 26' 1977 - 2000 PAGASA 182.00

Cagayan de Oro 124o 37'

Note:

* Rainfall Station located outside the Watershed

16.

14.

8.

17.

Locations

2.

3.

4.

5.

15.

In total, rainfall information was available for 17 sites within the Agusan River Basin. Apart from the PAGASA stations outside of the basin, the network is exclusively located on the east side of the valley and the highest elevation of a station being 627 meters. The locations of the rainfall recording stations are indicated in Figure 2-3.

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Figure 2-3 Rainfall Stations and Isohyetal Map

An isohyetal map of average annual rainfall in the basin is also delineated in Figure 2-3. As shown in this map, the average annual rainfall is not uniform throughout the basin. It varies from 2,000 mm to over 4,000 mm. The lowest accumulations occur in the area between Talacogon and Butuan, and upstream of Sta. Josefa into the central portion of Compostela Valley. The highest rainfall occurs in the mountains that bound the basin on the east and west. The rainfall in the central portion of the basin varies between 3,300 and 3,600 mm. Of interest, Rosario, Agusan del Sur has the highest recorded average annual rainfall of 3,633 mm although its elevation is only about 60 m. As compared to Butuan City, the higher average depth in the central region is a result of a greater number of days of rain and higher intensities.

Although outside the basin, the PAGASA station at Hinatuan has been selected as the index station for the central and southern portions of the basin, Butuan has been used as the index station for the northern region downstream of Talacogon

In the northern and southern portions of the basin, the average annual rainfall is about 2,000 mm. The minimum and maximum annual rainfall for these areas is 1,000mm and 3,000 mm respectively. In the central portion of the watershed, the long-term average annual is 3,600 mm with the minimum annual rainfall being 2,200 mm and the maximum annual rainfall reaching 5,000 mm.

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These values indicate that there is a very large variation in rainfall, not only between different locations, but from year to year.

The rainfall intensity duration frequency (RIDF) is explained in Annex 2A.

2.4 STREAMFLOW

Discharge data is available from two primary sources: NIA and BRS (NWRB). The NIA data consists of daily means and is collected at their diversion weirs for the larger irrigation systems. The officially released BRS data consists of daily mean and in some instances daily maximum values up to 1992. A 2004 publication is available from BRS but there are no river systems included within the basin. The discharge values are determined through gauge readings conducted three times a day and in the case of high flows, at a smaller interval.

A total of 18 NWRB or BRS gauging stations have been installed and operated in the basin at one time or another. Presently, data is only being collected for 6 stations. Table 2-3 contains a summary of the available data and other information about these stations, while their approximate point locations are shown in Figure 2-4.

Table 2-3 List of Streamflow Gauging Stations

Zero Gage

Elev.(m)

Gage Height

(m)

- 8O57" -

4.95 125O32" -

98.52 8O49" 2,296.53

5.49 125O42" 0.60

- 8O45" 209.22

1.84 125O45" 3.52

0.427 (AMSL) 8O47" 841.00

41.98 125O41" 0.020

8O38" -

125O34" -

5.96 8O36" 582.00

5.20 125O54" 0.30

98.02 8O32" -

7.76 125O46" -

- 8O27" -

- 125O42" -

47.15 8O14" 530.66

3.80 125O42" 0.90

- 8O14" -

- 125O45" -

- 8O06" -

- 125O52" -

92.414 8O09" 810.60

6.98 125O59" 1.85

- 7O59" 1,857.84

8.00 126O02" 2.04

- 8O01" 196.20

3.70 126O08" 0.064

- 7O48" 544.20

6.88 126O03" 0.35

92.96 7O31" 212.00

3.12 126O07" 0.63

- 7O50" 2,114.00

- 126O03" -

- 7O35" -

- 126O06" -

No

10SW080255 BRS029

Agusan RiverSta. Josefa, Bunawan, Agusan del Sur

1,599 1982-1991 Yes

10SW080260 BRS028

Simulao River

10SW073260 BRS026

Yes

1981-1986 No

San Ignacio, Trento, Agusan del Sur

286

10SW074260 BRS027

Agusan RiverMagas, Mamonga, Monkayo, ComVal

1,522

No

10SW080255 BRS030

Simulao RiverSan Teodoro, Bunawan, Agusan del Sur

1,030 1981-1990 Yes

10SW080255 PW017

Ihaoan River 667

Agusan RiverKalaw Bridge, Monkayo, ComVal

1,355

1967-1968

1984-1991

1967-1985Agusan RiverCamanlangen, New Bataan, ComVal

343

Nueva Gracia, Loreto, Agusan

Baylo, Talacogon, Agusan 209

Langasian, La Paz, Agusan del Sur

348

Halapitan, La Paz, Agusan del Sur

820

10SW084254 BRS031

Wawa RiverWawa, Esperanza, Aguasn del Sur

1,031

10SW083254 PW010

Agusan RiverSan Isidro, Talacogon, Agusan del Sur

7,390

No

1967-1980 No

1957-1984 No

No

1967-1970 No

10SW083253 PW009

Busilao RiverMilagros, Esperanza, Agusan del Sur

316 1967-1970 No

10SW081254 PW015

1968-1969

1959-1995 Yes

10SW082454 BRS033

Andanan RiverSta. Irene, Bayugan, Agusan del Sur

201

Bah-bah, Prosperidad, Agusan del Sur

427 1964-1975 No

Max. Q

Min. Q

(cms)

Station ID River Name Station NameDrainage

area (km2)

Year of

RecordOperational

Latitude

Longitude

10SW084254 BRS032

Wawa RiverWawa, Bayugan, Agusan del Sur

396

Batutu River Irrigation System

290 Yes- Agusan River

10SW083255 PW013

Gibong River

Adgaoan River

10SW082254 PW012

Kasilayan River

10SW081254 PW014

Kayawan River

10SW075260 BRS028

Yes1957-1991

1983-1987 Yes

1981-1990 No

11,510Magsaysay Bridge, baan, Butuan City

Agusan River10SW085252 PW005

No.

1

2

3

4

5

6

7

14

15

8

9

10

11

16

17

18

12

13

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Figure 2-4 Location of Streamflow Gauging Stations

Dependability Analysis. To ensure adequate water supply during dry or drought conditions, a low flow analysis has been conducted to establish available discharges on tributaries during these periods. Flow duration curves for 15 tributaries at their confluence with the Agusan River have been developed. Flow duration curves provide the percentage of time a certain flow is equaled or exceeded. Dependable stream flow can be derived from these curves by reading off values for a particular percentage of time, say 80%. Eighty percent (80%) dependability is the limit adopted by NWRB in granting water rights.

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For an exceedance probability of 80%, the surface water potential for each sub-basin has been estimated as shown in Table 2-4. The streamflow availability analysis is presented in Annex 2B,while the water balance analysis is shown in Annex 2C.

Table 2-4 Surface Water Potential of Sub-Basins, ARB, 2000

Sub-Basin No. Name of River Area (km

2)

Potential Surface Water

(MCM)

1 Wawa 1,026 851.472 Gibong 1,269 473.043 Simulao 997 441.514 Upper Agusan 454.125 Manat 196 138.766 Boabo 141 44.157 Logum 151 50.468 Ihaoan 656 220.759 Umayam 782 315.3610 Adgaoan 983 378.4311 Kasilayan 300 378.4312 Maasam 400 441.513 Libang 280 283.8214 Ojot 805 756.8615 Bugabus 184 145.06Source: Study on Watershed Management and FWS of the Agusan River Basin (DPWH, 2003)

2.5 GROUNDWATER

Recently the NWRB endeavored to consolidate all water resources developments and corresponding data throughout the country. Well drillers and well owners have been required to submit well-log data from their wells prior to their application of water permits. However, despite rigorous campaign by the NWRB, the registration of water users still needs further enhancement.

Groundwater mining in the Agusan Basin shows total groundwater storage at an estimated 2,690 MCM with an inflow to the groundwater reservoir system of about 940 MCM/year (NWRC, 1983). The recommended safe yield level is set at 940 MCM/year. Barring any major change, 994 MCM/year would be available for a 50-year mining withdrawal.

Groundwater availability is reportedly restricted by the occurrence of natural gas in the middle and lower reaches of the river system (DPWH, 2003). Groundwater cannot be abstracted easily both as a source of potable water and of irrigation water, due to its high iron content, a constraint for use in some crop types in irrigation. There is also evidence of fecal pollution in groundwater, particularly near large settlements, and of salinity in younger aquifers found near coastal areas.

2.6 ENVIRONMENTAL SETTING

Situational analysis of the environmental setting of the ARB covers four (4) essential aspects; namely the: (i) natural physical environment, distinguished from the previous discussion by providing corresponding environmental perspectives on several physical features of the Basin; (ii) biological environment, as encompassed by forest-watershed resources/terrestrial, freshwater, and marine habitats; (iii) environmental issues and social dimensions, taking into account of major issues arising from interaction of social and environmental elements in the Basin, particularly of human practices and decisions related to and impacting resource use and sustainability; and, (iv) key environmental issues and stakeholder priorities, which is 2-tiered in dealing with local views and positions on the environment as a whole, and on the status of watershed management in particular.

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2.6.1 Natural Physical Environment

(i) Atmosphere

The main consideration of air pollution in the ARB from the perspective of water resources management is that pollutive air particles may land on the ground and find their way into surface and groundwater systems. The potential sources of atmospheric pollution are isolated industrial processing plants particularly in Butuan City, where there is a concentration of wood processing. In Agusan del Sur, palm oil mills are potential air polluters, although these tend to use generated organic waste as fuel rather than non-renewable hydrocarbons. However, there is presently no baseline air quality monitoring data by which to understand the extent of air pollution from such sources.

(ii) Climatic Conditions

From an environmental planning perspective, the daily distribution of rainfall is crucial to the hydrology of the Basin. Intense localized monsoon rains of 3-5 days duration are causes of significant flooding affecting even coastal areas from October to February each year.

(iii) Flooding

Flood studies previously conducted on the Basin have indicated the flood-retarding capacity of the Agusan Marsh. Flood analysis carried out in a 2003 DPWH Study1

showed that while behaving in Butuan City at 2,600m3/s for a 2-year return period and nearly 5,000m3/s for a 30-year return period, peak discharges immediately downstream of the Marsh tends to be slower at 1,000m3/s for a 2-year return period and 2,100m3/s for a 30-year return period.

The same flood analysis indicated that most peak flood events downstream of the Agusan Marsh are due to flood conditions on its tributaries downstream. However, the total discharge volume and duration of such flooding will still be influenced by flows coming from the Marsh.

In the Upper Agusan River Basin, comprising of the municipalities of Monkayo, Montevista, Compostela, New Bataan, Nabunturan and Maragusan, flooding is caused by the overflowing of heavily silted rivers. Moreover, the meandering narrow gorge downstream of Kalaw Bridge causes backwater to extend upstream of it, inundating large agricultural lands.

The flood simulation discussion is presented in Annex 2D, while the vulnerability of the basin to hazards is discussed in Annex 2E.

(iv) Surface Water

(a) Water Quantity

Shortages in surface water would be critical in the future at several sub-basins in the ARB, due primarily to increases in population and expansion of irrigation developments. To reiterate, eight (8) sub-basins would experience water deficit before year-2030.

(b) Water Quality

Major surface water quality issues in the Basin are due to pollution from: 1) industry including mining, palm and coco oil processing and wood-based industries, 2) domestic waste water and solid waste, and (iii) agri-chemical use.

1 DPWH, 2003, Study on Watershed Management and FWS of the Agusan River Basin

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1) Industry

Pollution from Mining. Two (2) gold mining areas exist in the Basin. One is within the upper catchment in the Diwalwal gold rush area in Compostela Valley. In this area, small and medium-scale illegal mining operations have been going on unregulated for the last 20 years, until State control was imposed in late 2002. The other is within the middle catchment in the Co-o, Sinug-ang, Tinago and Masabong (COSTMA) area between Rosario and Bunawan in Agusan del Sur. Here, a modern, closed-cycle system of carbon-in-pulp (CIP) milling and treatment facilities is available but operates at only 6% of its design capacity, alongside informal small-scale operations.

A serious environmental concern in both areas is the use of mercury (Hg) and cyanide (CN) in the process of amalgamation and cyanidation to extract gold from ore. The DENR-Environmental Management Bureau (EMB) XI started monitoring mercury and cyanide levels in surface water only in 1995 but ceased after early 2003. Meanwhile, no regular data collection on these surface water environments in being undertaken by DENR-EMB XIII.

Available surface water data show the alarming levels of toxic elements in several river systems within or contiguous to the ARB especially those located close to mining areas. The data likewise indicates the spread of mining pollutants into agricultural and marine ecosystems.

DENR-EMB XI monitoring results until 2002 reveal that in Naboc River, about 5km downstream of the Diwalwal mine site, Hg levels in water were often more than 10 times the national standard of 0.002 mg/L. In Agusan River, about 30km from the confluence with Naboc River, Hg levels in water were as high as 4 times the allowed limit. Hg levels in water were below standard only in 2002, during the imposition of the state moratorium on mining in Diwalwal. After mining was resumed in 2003, Hg levels in water once more soared to as high as 750 to 900 times the acceptable level.

A special UNIDO2-funded study carried out in Diwalwal by the British Geological Survey (UNIDO, 2000) showed that Hg levels in polluted sediments from Naboc River that found their way into irrigated rice paddies in nearby fields were as high as 66mg/kg. Levels of Hg in bottom sediments in Agusan River downstream of the confluence with Naboc River were as high a 55 times the Canadian standard of 1 ppm or 0.001 mg/L. An assessment by DENR-MGB in 2002 confirms that Hg levels in sediments were indeed as high as 13 times the Canadian standard in the Diwalwal area and were at alarming levels (17.6 mg/L) in the Sinug-ang mine area.

A marine resource assessment study conducted by the Mindanao State University at Naawan (MSU-Naawan) for the DA-Bureau of Fisheries and Aquatic Resources (DA-BFAR) in 2002 also confirmed that Hg concentrations in coastal waters, sediments and fish samples were also a cause for alarm, as polluted river sediments move into the marine system.

Pollution from Palm/Coconut Oil Processing. The concern on vegetable oil processing is its production of waste with relatively high levels of organic matter that could result to low levels of biological oxygen demand (BOD) in water and, in extreme cases, render surface water pollution. Specific industrial pollutants generated can also be major contributors of phosphorus (P) and nitrogen (N) that may cause eutrophication of water bodies.

In the Basin, extensive palm oil plantations are found in its middle catchment, notably in Rosario, San Francisco, Trento and Veruela in Agusan del Sur. A palm

2 United Nations International Development Organization (UNIDO)

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oil processing plant is located in Rosario while a coconut oil processing plant is operating in the coastal municipality of Magallanes in Agusan del Norte. These industries were perceived by communities to have been responsible in the incidence of fish kills in the Basin.

Regular DENR-EMB XIII monitoring show that dissolved oxygen (DO) and BOD were consistently within acceptable levels. However, there is no regular point source monitoring of effluents from these industries.

Pollution from Wood-based Industries. Match and plywood factories concentrated near the mouth of Agusan River in Magallanes pose potential problems to surface water quality of Agusan River as well as Butuan Bay due to high level of organic wastes and chemical effluents disposed into these river systems. Aside than this, manufacturing plants also produce noxious gases from smokestacks. Meanwhile, most sawmills located in the banks of Agusan River in Butuan also discharge waste directly into the river and burn these in the open, the practice causing ash and other particulates to pollute both air and water. Other non-operational saw mills, meanwhile, have abandoned waste stockpiles that become washed out during flood events. Similar to processing plants, there is no regular point source monitoring of effluents from these wood industries.

2) Pollution from Domestic Waste Water

The provision of sanitation facilities in the Basin is very inadequate. While it is reported that sanitation has generally improved (with more than 90% of households having sanitary toilets throughout the Basin), there are no closed domestic wastewater collection systems or treatment facilities in the study areas, not even in Butuan City, a settlement of more than 200,000 people. In areas without sanitation facilities such as the marshland/wetland area, households directly dispose human waste into the river system while also relying on this as a direct source of domestic water supply during the dry months.

There is very limited DENR-EMB monitoring data on fecal coliform for the Davao portion of the Basin and none for Caraga. However, the MSU study found that the bacterial pour plate counts, total coliform bacteria, and fecal coliform levels were high near major coastal settlements where human population is concentrated, especially in Butuan City.

3) Potential Pollution from Agricultural Chemicals

The potential pollution from agriculture is associated with the use of agri-chemicals in rice producing and palm oil areas. The practice is also suspect in areas planted to banana and high-value vegetables in the uplands. It is, however, difficult to assess the degree to which ecological health, especially of the Agusan marshland/wetland and particularly fisheries habitats, have been compromised in the absence of pertinent water quality monitoring data available on N and P as well as pesticide and herbicide levels in these areas.

Indicative, however, is the MSU study of Butuan Bay that detected levels of ammonia, nitrites, nitrates and phosphates in marine waters in 2000 and 2001 at levels relatively high and at times way over national standards. The highest levels tended to be at specific locations where smaller local catchments flow into the Bay. Pesticide levels (specifically organochlorines and organophosphates) were found to be low, but these are indicators of only a few of the wide range of agro-chemicals available to farmers in the area. High levels of cadmium were identified in the marine system, the source partly attributed to nitrate and phosphate fertilizer.

Aquaculture may also be a potential source of pollution. Cadmium is considered particularly problematic in its capacity to bio-accumulate like mercury.

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In order to determine the status of mercury contamination an assessment was conducted and discussed in Annex 2F.

(v) Erosion and Sedimentation

The assumption that sedimentation in the Basin is being caused primarily by upland erosion due to the removal of primary forest cover in its upper catchment appears to be unfounded. Field observations confirm that subsequent vegetation re-growth and grassland succession have been strong and rapid enough to arrest erosion. In areas where vegetation cover has been stripped for limited upland cultivation, the land has not scarred or gullied.

Channel erosion and bed load (rocks and coarse gravels) deposition is a problem though in the upstream catchment and has rendered parts of the Batutu irrigation facility in Compostela Valley practically useless. In Monkayo and Nabunturan, the Upland Development Project of the DA reports of severe erosion due to upland cultivation in areas with steep slopes. Upland erosion is also a problem in mining areas particularly in Diwalwal.

In midstream and downstream reaches, field observations confirm that the main contributor of suspended sediment is riverbank erosion in specific locations, particularly along river bends. The river picks up significant material upon leaving upland areas and hits soft red/brown deposits in the floodplain, as earlier confirmed in a 1976 UNDP/FAO3

study. The same study found out that going downstream, levels of total suspended solids (TSS) increased from 140-180ppm in New Bataan to 233ppm in Compostela and 268ppm in Monkayo.

Interestingly, the study also determined that sediment level at the point where Agusan River leaves the Marsh in Talacagon was only 140ppm, about half the level of the inflow water in Sta Josefa. However, within 30km downstream from Talacogon, the sediment level almost doubled again to 270ppm, confirming the role of the Marsh as a natural sediment catch basin. Interviews with marshland/wetland communities confirm that Agusan River deposits as much as 30-50cm of sand, silt and organic materials with each flood event. Moreover, field observations confirm that bank erosion is also actively going on in inland tributaries downstream of the Marsh, for example, where Ojot and Wawa Rivers meet the main Agusan River.

The MSU study earlier cited, meanwhile, found that Agusan River is by far the most significant contributor of sediment deposition in Butuan Bay.

2.6.2 Biological Environment

(i) Forest-Watershed Resources/Terrestrial Habitats

(a) Development Trends

The ARB comprises an estimated 1,382,622ha of forest lands as of 2003, distributed over Agusan del Sur (49%), Agusan del Norte (14%) and Davao del Norte (37%), the latter considered representative of Compostela Valley. Correspondingly, its total A&D lands are about 585,932ha and respectively distributed as follows: Agusan del Sur (38%), Agusan del Norte (11%), and Davao del Norte (51%).

A land use dynamic is the trade off between A&D lands and forest lands, which in the study areas is expected to follow the same trend as that observed for the Philippines as a whole. The Philippines, from 1978 to 2003, has been experiencing a decline in forest land at 6.38% alongside an increase in A&D lands of 8.22%. Forest lands covering 16,929,114ha in 1978 was down to 15,85,922ha in 2003. Correspondingly, A&D lands expanded from 13,070,888ha to 14,145,078ha. Such trend could be assumed similar to

3 UNDP = United Nations Development Program; FAO = Food and Agriculture Office

2-12


the ARB based on the results of ocular field survey and the reported rapid cutting of natural rain forest in the area as early as the 1960s. Remaining virgin forests in the whole country may be estimated at less than 1 million ha at present; a state indicative of the need to pursue protection and restoration strategies preservation and/or restoration of productive and protective values of its forest lands including those within the ARB.

The ARB hosts several wood and forest-based industries generating income to the national economy including forest management arrangements for the sustainable development of forest resources. The reference shall be Caraga region, which represents the majority of study areas.

Caraga happens to be fifth among all other regions as to total vegetative cover, the four dominant of which are second growth forest (484,807ha), brush land (184,040 ha), plantation forest (188,500ha) and old growth dipterocarp forests (78,619 ha). The region hosts seven (7) watershed forest reserves (5th in all) although despite these forest assets, Caraga has no declared national parks/national marine parks/national marine reserves, or game refuge and bird sanctuaries.

Although possessing only the fifth largest forest lands, the region is the top producer of major forest-based products (i.e., logs, lumber, veneer, plywood) in the entire country. Total log production in Caraga from three (3) major sources (i.e., A&D lands, IFMA/TPLA and TLAs), totaled 471,574.57 cu. m. as of December 2003. In 2001, the region then generated about 480,777 cu. m. or 75% of log requirements in the country. Other than this, the region particularly Butuan City hosts several wood processing plants that support wood-based industries in the Philippines. The total annual log requirement of these wood-processing plants was 964,124.71 cu. m. as of June 21, 2002. Wood-processing plants are complemented by the presence of several TLAs in the area, the total number of which has declined from six in 1994 to only two in 2003.

Substantial CBFM areas are also found within the ARB. In the Caraga Region alone in 2003, about 500,000ha are the sites of up to 517 CBFM areas benefiting about 51,514 households with 133 POs.

Further discussion on the bio-physical features of Agusan River Basin is in Annex 2G,while the sub-basin is in Annex 2H.

(b) Environmental Conditions

There has been rapid removal of natural forest cover within the ARB during the logging boom that may have started in the 1960s. By 1997, there remained a total of 867,321ha of forest lands in the Caraga Region (ADN and ADS alone) broken down as follows: unclassified forest lands (1,125ha) and classified forest lands (866,196ha). Classified forest lands are further categorized into established forest reservations (212,389ha), established timberland (647,601ha), and civil reservations (6,206ha). Total forestland in this case constituted 75.05% of the total land area of Agusan del Norte and Agusan del Sur.

When left alone, secondary re-growth (i.e., grasses, bushy/brushy and eventually, secondary growth forest) tended to be rapid. On logged-over areas, 153,768ha have been planted with fast-growing timber species, mostly falcata, gmelina and bagras. Such trend was encouraged under the old reforestation paradigm of the DENR through its various tenurial instruments (e.g., IFMA, TLA, ISF, SIFMA). These programs tended to be counter-productive though in improving bio-diversity. Nonetheless, this situation may be reversed with the paradigm shift to watershed rehabilitation using agro-forestry.

The degradation of forests in the ARB still continues though, as observed in several agricultural and land use conversion practices. In some sloping lands, at present, cleared forest areas have given way to unsustainable farming practices, including “kaingin” (slash-and-burn) farming systems and conversion to plantations. In the Davao region, some upland areas of Nabunturan, Compostela Valley have been devoted to large-scale

2-13


banana plantations operated by multi-national corporations. In the middle catchment notably in Roasario, San Francisco, Trento and Veruela, more lands are being converted to palm oil plantations.

In coastal areas within the Basin, much of saltwater mangrove forests have been removed, partly to clear land for brackish water shrimp and saltwater fish aquaculture. The removal of such vegetation has increased the risk of coastal erosion, considering that mangrove vegetation is extremely effective at dissipating wave energy.

Cultivated areas, on the other hand, are concentrated in floodplains found in the middle reaches of the Basin. The lowlands, notably Bayugan, Prosperidad, Rosario, Bunawan, Esperanza and Sta. Josefa are primarily devoted to rice and, to a lesser degree, corn production. The trend is towards expanding rice cultivation where possible and intensifying this to two (2) crops a year with irrigation.

The discussion on Land use and land cover are further discussed in Annex 2I.

(ii) Freshwater Habitat

The Agusan Marsh Wildlife Sanctuary is the most ecologically sensitive area in the Basin and requires utmost attention. It is included in the Philippine NIPAS and, owing to its endemism and biological diversity, is among integrated priority conservation areas in Mindanao, recognized under the Philippine Biodiversity Conservation Priority-setting Program (PBCPP). To reiterate, the marsh is of international significance, having been listed under the Ramsar Convention on Wetlands as the most important freshwater habitat in the Philippines.

The designated protected area of the Marsh consists of 19,196ha, with 14,836ha defined as the core by virtue of Presidential Proclamation 913 in 1996. There is a wider management area of 111,540ha, presently considered as the buffer zone, which has already been significantly encroached by human activity. A new bill filed in Congress proposes to expand its marshland/wetland management areas to more than 40,000 ha.

During the dry months, the marshland/wetland is a series of isolated ponds or interconnected lakes. However, during the rainy season, the perennially and seasonally flooded water bodies merge into one lake system. The marshland/wetland area has seven (7) major habitat types with three (3) very unique types of flood-tolerant vegetation communities. It also contains a mossy forest with relic vegetation communities while a large seasonal water body near Talacogon has unique grassland cover. A special feature of the Marsh is its peat forest, which is beginning to draw worldwide conservation interests.

A full species inventory of the Agusan Marsh was prepared in 2001 under the WB-funded Comprehensive Priority Protected Areas Project (CPPAP). The inventory identified more than a hundred species of terrestrial plants and freshwater flora that are adapted to its flooding pattern. It also included hundreds of species of fauna including mammals, herptiles, birds and fish species. Several of its species of freshwater crocodiles, flying foxes, and soft-shelled freshwater turtles are on the International Union for the Conservation of Nature (IUCN) Red List of threatened, endangered and critically endangered species. Some of its reptiles, bats, frogs, geckos, skinks and snakes are endemic, including the Reticulated Python and Philippine Cobra. The Marsh also hosts rare species of butterflies, crocodiles, lizards, frogs and snakes.

On an international scale, the Agusan Marsh is recognized as a crucial link in the migratory routing of birds between Siberia and Australia; the prime reason for which the Marsh received recognition under the Ramsar Convention. With this function, several migratory species including the purple heron and some ducks are already to habitate the marshland/wetland.

2-14


The most productive fish habitats in the Marsh are its perennial water bodies. Fish species disperse to breed and grow in seasonally flooded areas, retreating to perennial water bodies as water levels fall. Its 2001 inventory includes both indigenous and introduced fish species, two (2) species of which (i.e., mullet and tarpan) are migratory and move seasonally between the marine system and the marshland/wetland area.

The management of Agusan Marsh and wildlife sanctuary is discussed in detailed in Annex 2J.

(iii) Marine Habitats

Although the ARB covers only 10km of the coastline of Butuan Bay, complex interactions and interface of habitats between these fluvial and marine systems need careful consideration. These two (2) river systems therefore should not be studied in isolation of each other.

To illustrate, the 2002 MSU study found that mangrove, coral reef, fish, seagrass and seaweed, and soft bottom communities of Butuan Bay have been severely affected by pollution from various natural and human sources. In particular, the potential of Hg contamination from continuous sediment transport from Agusan River into the Bay is a cause for concern.

2.7 CONCLUSIONS AND RECOMMENDATIONS

A primary concern in the water resources study is the coverage and quality of existing hydrological and meteorological data. An upgrading of hydrological and meteorological data collection networks may have to be implemented to develop a comprehensive knowledge base of the ARB. A lead agency should be responsible for ensuring a quality data is collected and reviewed. Such entity may also have to be equipped of facilities for proper data dissemination. Specifically, the following recommendations may be considered: (a) installation of additional or new monitoring stations for rainfall and stream flow, particularly new rainfall stations in high elevations on the west side of the Basin; (b) establishment of new stream flow or water level gauging sites on the Agusan River near Maragusan, between Kalaw Bridge and Sta Josefa, within Agusan Marsh, and at the marsh outlet; (c) establishment of a sediment-monitoring program; and (d) establishment of a system for groundwater data collection.

Available water in the Basin demonstrated in water balance studies are sufficient enough to meet domestic demand, but the concern is on the present quality of waters that could be abstracted from principal river sources considering the incidence of pollution, sedimentation and agricultural run-off. Related to this is whether existing and potential groundwater sources are dependableconsidering that in some areas, deep wells are generating water of high chemical content. The continued assessment of the environment in the Basin should be conducted.

2-15

RAINFALL INTENSITY DURATION FREQUENCY (RIDF)

Agusan River Basin Master Plan Project ANNEX 2A

Final Report

ANNEX 2A: RAINFALL INTENSITY DURATION FREQUENCY (RIDF)

1.0 RAINFALL INTENSITY DURATION FREQUENCY (RIDF)

The first step in the derivation of the rainfall-intensity-duration frequency curves is frequency analysis and selection of the fitted distribution. The synoptic rainfall stations operated by PAGASA with applicable information for the above methodology are Cagayan de Oro, Hinatuan, Malaybalay, Surigao City and Davao City.

1.1 Frequency Analysis

This involves the fitting of theoretical frequency distributions to the annual maximum rainfall data. Four (4) types of theoretical distributions are used in this study, namely Extreme Value Distribution (Gumbel), Log Pearson Type III Distribution, Log Normal Distribution, and 2-Parameter Gamma Distribution.

(a) Extreme Value Distribution (Gumbel)

This distribution utilizes the Fisher-Tippet extreme value function which relates magnitude linearly with the logarithm of the reciprocal of the exceedance probability. Working equations are the following:

SKRR TrTr ��

��n

nTrTr

S

YYK

�

)(1

loglog2.30250.83405

��Tr

TrTrY

Where,

�TrR Probable rainfall at return period Tr

�R Mean of the annual maximum rainfall series

�TrK Frequency factor at return period Tr

�S Standard deviation of annual maximum rainfall series

�TrY reduced variate at return period Tr

�nn SY ,reduced mean and reduced standard deviation

n = number years of record

Annex 2A-1 /6


Final Report

Table 2A-1 Reduced Mean and Standard Duration

n Yn Sn n Yn Sn n Yn Sn

0 0.49522 0.94963 21 0.52519 1.06938 31 0.53714 1.1158810 0.49522 0.94963 22 0.52673 1.07547 32 0.53803 1.1192711 0.49969 0.96753 23 0.52819 1.08115 33 0.53889 1.1224512 0.50348 0.98327 24 0.52959 1.08648 34 0.53959 1.1255713 0.50699 0.99712 25 0.53084 1.09143 35 0.54026 1.1284914 0.51000 1.00951 26 0.53202 1.09615 36 0.54107 1.1312715 0.51285 1.02055 27 0.53326 1.10048 37 0.54177 1.1339116 0.51542 1.03058 28 0.53419 1.10471 38 0.54243 1.1364917 0.51770 1.03972 29 0.53533 1.10860 39 0.54294 1.1390018 0.51978 1.04806 30 0.53616 1.11238 40 0.54363 1.1413019 0.52177 1.0557520 0.52352 1.06282

(b) Log Pearson Type III Distribution

This distribution belongs to the family of distribution suggested by Pearson with log transformation of rainfall data. The parameters used are the mean, standard deviation and skewness coefficient. The working equations are the following:

SKRR TrTr ��

}3]){[( 1166

2��

GG

GnTr KK

Where

�TrR Log of probable rainfall at return period Tr

�R Mean of the log of rainfall series

�TrK Frequency factor at return period Tr

�S Standard deviation of the log of rainfall series

�nK Normal frequency factor (see table)

G = Skewness coefficient of the series

P = Probability

Annex 2A-2 /6


Final Report

Table 2A-2 Norman Frequency Factor

K n P T r K n P T r

- 3 . 7 1 9 0 2 0 .9 9 9 9 0 1 .0 0 0 0 .0 0 0 0 0 0 . 5 0 0 0 0 2 .0 0 0- 3 .2 9 0 5 3 0 .9 9 9 5 0 1 .0 0 1 0 .1 7 7 3 3 0 . 4 2 9 6 0 2 .3 2 8- 3 .0 9 0 2 3 0 .9 9 9 0 0 1 .0 0 1 0 .2 5 3 3 5 0 . 4 0 0 0 0 2 .5 0 0- 2 .8 7 8 1 6 0 .9 9 8 0 0 1 .0 0 2 0 .5 2 4 4 0 0 . 3 0 0 0 0 3 .3 3 3- 2 .5 7 5 8 3 0 .9 9 5 0 0 1 .0 0 5 0 .8 4 1 6 2 0 . 2 0 0 0 0 5- 2 .3 2 6 3 5 0 .9 9 0 0 0 1 .0 1 0 1 .2 8 1 5 5 0 . 1 0 0 0 0 1 0- 2 .0 5 3 7 5 0 .9 8 0 0 0 1 .0 2 0 1 .6 4 4 8 5 0 . 0 5 0 0 0 2 0- 1 .9 5 9 9 6 0 .9 7 5 0 0 1 .0 2 6 1 .7 5 0 6 9 0 . 0 4 0 0 0 2 5- 1 .7 5 0 6 9 0 .9 6 0 0 0 1 .0 4 2 1 .9 5 9 9 6 0 . 0 2 5 0 0 4 0- 1 .6 4 4 8 5 0 .9 5 0 0 0 1 .0 5 3 2 .0 5 3 7 5 0 . 0 2 0 0 0 5 0- 1 .2 8 1 5 5 0 .9 0 0 0 0 1 .1 1 1 2 .3 2 6 3 5 0 . 0 1 0 0 0 1 0 0- 0 .8 4 1 6 2 0 .8 0 0 0 0 1 .2 5 0 2 .5 7 5 8 3 0 . 0 0 5 0 0 2 0 0- 0 .5 2 4 4 0 0 .7 0 0 0 0 1 .4 2 9 2 .8 7 8 1 6 0 . 0 0 2 0 0 5 0 0- 0 .2 5 3 3 5 0 .6 0 0 0 0 1 .6 6 7 3 .0 9 0 2 3 0 . 0 0 1 0 0 1 0 0 0- 0 .1 7 7 3 3 0 .5 7 0 4 0 1 .7 5 3 3 .2 9 0 5 3 0 . 0 0 0 5 0 2 0 0 00 .0 0 0 0 0 0 .5 0 0 0 0 2 .0 0 0 3 .7 1 9 0 2 0 . 0 0 0 1 0 1 0 0 0 0

(c) Log Normal Distribution

This method uses a 2-parameter function identical to the Log Pearson III distribution except that the skew coefficient is neither computed nor used. Values of frequency factor K which are related to the probability of exceedance p and return period Tr are computed by the use of transformed normal distribution function available in MS Excel.

(d) 2-Parameter Gamma Distribution

The method is identical to Gamma 3 except that the location parameter is set to zero, hence only the shape and scale parameters are used in the computation. Values of frequency factor K which are related to the probability of exceedance p and return period Tr are computed by the use of the Gamma Distribution function available in MS Excel. Input parameters to the Gamma function in MS Excel are the alpha � and beta � variables which are computed using the following working equations:

��

��

�

��

�

)(

)(

ln1ln4

ln1ln341

1RR

RR

n

n

�� Rn1

Where

�R Annual maximum rainfall

�R Mean of the rainfall series

n = number of years of records

Annex 2A-3 /6


Final Report

1.2 Selection of the Fitted Distribution Curve

From the above results on probable maximum rainfall of short duration, RIDF curves are produced by converting the probable rainfall magnitudes into rainfall intensities and fitting them to an exponential equation. Two types of exponential equation are tried to fit the rainfall intensity duration. These RIDF equations are expressed as follows:

Type 1: R = A / (C + Tb)

Type 2: R = A / (C + T)b

where: R = Rainfall intensity (mm/hr);

T = Duration (min); and

A, b, C = Constants obtained from curve fitting.

RIDF equations, both for short (10 min to 1-hr) and long (1-hr to 1-day) duration, derived for all return periods, the 2-yr, 5-yr, 10-yr, 25-yr, 50-yr and 100-yr for the five (5) synoptic stations are shown in Figures 2A-1 to 2A-5. Selection of the fitted equations is based on both the residual of the least square coefficients and visual fitting.

Figure 4.1

Rainfall Intensity Duration Frequency (Cagayan de Oro City)

Figure 2A-1

Rainfall Intensity Duration Frequency (Cagayan de Oro City)

Annex 2A-4 /6


Final Report

Figure 2A-2

Rainfall Intensity Duration Frequency (Davao City)

Figure 2A-3

Rainfall Intensity Duration Frequency (Hinatuan)

Annex 2A-5 /6


Final Report

Figure 2A-4

Rainfall Intensity Duration Frequency (Malaybalay)

Figure 2A-5

Rainfall Intensity Duration Frequency (Surigao City)

Annex 2A-6 /6

STREAMFLOW AVAILABILITY

Agusan River Basin Master Plan Project ANNEX 2B

Final Report

ANNEX 2B: STREAMFLOW AVAILABILITY

1.0 STREAMFLOW AVAILABILITY

A low flow analysis has been conducted to establish available discharges on tributaries during dry or drought conditions to ensure adequate water supply during these periods. Since only few of these tributaries have any discharge records, it was envisioned that the results for gauged streams would be transferred to the ungauged ones.

1.1 Streamflow Duration Curves

In order to produce the desired curves, the daily streamflow information from ten (10) stations are analyzed. Table 2B-1 listed the stations to be used for the analysis.

Table 2B-1

Selected Streamflow Gauging Stations

deg min sec deg min sec

1 Agusan River, Kalaw Bridge, Monkayo 7 50 0 126 3 0 126.050 1,355.00 67.302 Agusan River, Camanlangan, New Bataan 7 30 33 126 6 18 126.105 343.00 17.103 Agusan River, Sta. Josefa, Bunawan 8 0 38 125 58 10 125.969 1,599.00 97.804 Agusan River, San Isidro, Talocogon 8 32 4 125 46 31 125.775 7,390.00 698.005 Wawa River, Wawa, Esperanza 8 47 4 125 41 23 125.690 396.00 17.486 Kawayan River, Langasian, La Paz 8 14 56 125 42 59 125.716 348.00 37.507 Adgaoan River, Malapitan, La Paz 8 14 56 125 45 8 125.752 820.00 69.808 Gibong River, Bahbah, Prosperidad 8 36 40 125 54 46 125.913 427.00 19.409 Andanan River, Bayugan 8 44 0 125 43 0 125.717 201.00 6.70

10 Busilao River, Milagros, Ezperanza 8 38 49 125 34 15 125.571 316.00 12.90

Q, m³/sLatitude Longitude

River Area, km²

Again, the index stations identified in the runoff analysis plus the sub basin rainfall are used to develop flow duration curves for each of the sub-basins.. For each of the index sites, daily streamflow data are arranged from highest to lowest and plotted to form the flow duration curves. Figure 2B-1 shows the derived flow duration for each of the stations.

The shape of the flow duration curves shows a rapid decrease from “0% of the time” followed by a long gently downward sloping portion which means there is not a large variation in the dependable low flows in a system. The rapid drop in the curve reflects how uniform the rainfall in the basin, wherein there’s only a few extremely high rainfall events. For gauged rivers where the discharge record was long enough, a statistical low flow analysis was performed to estimate the 5 and 10 year return period low flows. The resulting discharges are slightly larger than those determined from the duration curves, corresponding approximately 90% and 80% dependable flows. Therefore, it is felt that the use of the curves for this study is applicable as conservative decisions would be made.

Annex 2B 1/2

Agu

san

Riv

er B

asin

Mas

ter

Pla

n P

roje

ct

AN

NE

X 2

B

Fin

al

Re

po

rt

0.1110100

1000

1000

0

010

2030

4050

6070

8090

100

Tim

e in P

erc

ent of exceedance

Streamfkow, m³/s

Fig

ure

2B

-1

Flo

w D

urat

ion

Cur

ve

Ann

ex 2

B 1

/2

WATER BALANCE ANALYSIS

Agusan River Basin Master Plan Project ANNEX 2C

Final Report

ANNEX 2C: WATER BALANCE ANALYSIS

1.0 WATER BALANCE ANALYSIS

1.1 Input Data

The following data are used in the analysis;

(a) Basin terrain model based on the SRTM (Shuttle Radar Topographic Mission) DEM (Digital Elevation Model) with grid size of 3 arc seconds, approximately 92 m by 92 m in metric scale.

(b) River system in the Basin.

(c) Sub basin flow duration curves, sub-basin monthly rainfall data and monthly evaporation data

(d) 2000 Population Data, Barangay Level

(e) Barangay Map

(f) Land Use Map

(g) Land Cover Map

(h) Existing and proposed water resources development

1.2 Methodology

The assessment of the availability and dependability of water resource for development is anchored on the extent of available information of the Basin under scrutiny. As discussed earlier, the information available is not enough to directly use the information at hand to forecast water balance analysis for planning purposes. Nevertheless, water balance analysis is required thus the methodology applied herein will require mathematical modeling of the basin focused on the low flow or dependable flow analysis.

The steps required in this endeavor are the following;

(a) Derivation of monthly sub-basin rainfall.

The available rainfall information is transformed into grid format (similar to isohyetal map) using Arcview GIS software. By overlaying the sub-basin boundaries on the gridded data, monthly rainfall data for each sub-basin will be computed through the use of the HEC-GeoHMS ArcView Extension Software.

(b) Rainfall- Runoff Analysis

On the annual basis, relationship between rainfall, evaporation/evapotranspiration and streamflow data by spatial correlation facilitated by HEC-GeoHMS ArcView Extension Software is derived. End output of this step is the estimated annual flows for each of the sub-basins.

(c) Flow Duration Curves for each of the Sub-basin

The output of step (c) can be converted into flow duration curves. This is undertaken using the converted duration curve of the daily flows of the index streamflow stations earlier discussed into dimensionless format and superimposing the derived annual flows based on rainfall-runoff model for each of the sub-basins.

(d) Dependable Flow for each of the Sub-basin.

As defined in the Water Code and being practiced by local water resource planner, the dependable flows are those amount available 80% of time of exceedance. Through the use of the flow duration curves, dependable flows for each of the sub-basins are computed. This step conclude the estimation of the water availability analysis

Annex 2C-1/7


Final Report

(e) Water Demand

On the other side of the water balance analysis is the estimation of the water demand for relevant water resource development such as water supply and irrigation. It is consisted of domestic and municipal water demand, industrial water demand and agricultural water demand. Likewise, riprarian releases for environmental protection which is about one percent (1%) of the dependable is included in the computation of the water demand.

(f) Water Balance

By equating the water availability with water demand with respect to the targeted planning horizon, deficits on water availability can be estimated.

1.2.1 Sub-basin Rainfall

The monthly isohyetal maps developed from monthly rainfall data of various stations are transposed into grid format. By clipping the gridded data using sub-basins boundaries earlier presented, clipped rainfall grid data is converted into average values. This is done for the twelve maps representing for the 12 months for each of the sub-basins. The result of the analysis is shown in Table 2C-1.

Table 2C-1

Estimated Sub-basin Monthly Rainfall

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual

1 Adgaoan 314 236 204 166 214 252 255 238 242 268 222 222 2,8342 Bugabos 266 192 145 108 122 173 169 138 169 214 185 185 2,0663 Gibong 514 383 312 226 185 201 201 153 179 245 300 300 3,1994 Haoan 335 260 228 196 228 250 254 234 237 252 232 232 2,9395 Kasilan 347 253 213 167 198 233 234 211 225 256 226 226 2,7896 Kayonan-Umayam 276 214 190 165 227 267 270 261 258 278 215 215 2,8357 Libang 280 192 156 126 169 214 215 191 214 245 196 196 2,3948 Logom-Baobo 423 313 267 218 223 233 246 213 215 233 252 252 3,0899 Maasam 252 178 150 128 186 237 238 221 236 260 195 195 2,478

10 Manat 587 393 330 251 187 198 195 154 163 194 307 308 3,26811 Minor 412 304 247 185 174 201 202 165 188 233 253 253 2,81712 Ojot 232 153 121 98 139 195 191 164 199 228 168 168 2,05713 Simulao 588 418 349 266 218 225 228 182 191 221 318 317 3,52014 Sulibao 562 414 345 253 220 214 235 183 200 248 309 309 3,49115 Taguibo 499 400 314 220 140 163 165 115 150 203 326 326 3,02116 Wawa-Andanan 481 375 297 211 152 178 174 129 156 218 305 305 2,982

Rainfall, mm

Basin

Consistency test of the sum of the twelve months with the annual rainfall data is also undertaken with positive result.

1.2.2 Sub-basin Streamflow Duration Curves

A low flow (duration curve) analysis has been conducted to establish available discharges on tributaries during dry or drought conditions to ensure adequate water supply during these periods. As only a few of these tributaries have any discharge records, it was initially envisioned that the results for gauged streams would be transferred to the ungauged ones. In order to produce the desired curves, estimated rainfall has been used instead.

The link between rainfall and runoff values is established by correlation. Table 2C-2 shows the comparison.

Annex 2C-2/7


Final Report

Table 2C-2

Rainfall-Runoff Comparison

Area, km² Q, m³/s Yield Rainfall Ratio

deg min sec deg min sec mm mm1Agusan River, Kalaw Bridge, Monkayo 7 50 0 7.833 126 3 0 126.050 1,355.00 67.30 1,566 3,268 0.47932Agusan River, Camanlangan, New Bataan 7 30 33 7.509 126 6 18 126.105 343.00 17.10 1,572 3,268 0.48113Agusan River, Sta. Josefa, Bunawan 8 0 38 8.011 125 58 10 125.969 1,599.00 97.80 1,929 3,268 0.59034Agusan River, San Isidro, Talocogon 8 32 4 8.534 125 46 31 125.775 7,390.00 698.00 2,979 3,107 0.95865Wawa River, Wawa, Esperanza 8 47 4 8.784 125 41 23 125.690 396.00 17.48 1,392 2,982 0.46696Kawayan River, Langasian, La Paz 8 14 56 8.249 125 42 59 125.716 348.00 37.50 3,398 2,834 1.19897Adgaoan River, Malapitan, La Paz 8 14 56 8.249 125 45 8 125.752 820.00 69.80 2,684 2,834 0.94718Gibong River, Bahbah, Prosperidad 8 36 40 8.611 125 54 46 125.913 427.00 19.40 1,433 3,199 0.44789Andanan River, Bayugan 8 44 0 8.733 125 43 0 125.717 201.00 6.70 1,051 2,982 0.3526

10Busilao River, Milagros, Ezperanza 8 38 49 8.647 125 34 15 125.571 316.00 12.90 1,287 2,057 0.6260

Latitude LongitudeRiver

It must be noted that the curves that have been produced are based on daily rainfall. In creating the duration curves, days where the effective rainfall (rainfall minus evaporation) is zero were removed from the records. The calculated discharges correspond only to rainfall events and loss to storage and base flows were not accounted for. As a result, the peak discharges again will most likely have been over estimated and the minimum flows under estimated.

The shape of the flow duration curves, a rapid decrease from “0% of the time” followed by a long gently downward sloping portion, means there is not a large variation in the dependable low flows in a system. The rapid drop in the curve reflects how uniform the rainfall in the basin is with being a few extremely high rainfall events. For gauged rivers where the discharge record was long enough, a statistical low flow analysis was performed to estimate the 5 and 10 year return period low flows. The resulting discharges are slightly larger than those determined from the duration curves, corresponding approximately to the 90% and 80% dependable flows. Therefore, it is felt that the use of the curves for this study is applicable as conservative decisions would be made.

The index stations identified in the runoff analysis plus Simulao, Agusan del Sur is converted into dimensionless format and used for the target sub-basins. Attachment 3 contains the flow duration curves for the each of the sub-basins.

1.2.3 Water Demand

Basically the water users can be classified as those that consumed water and those that can be reuse. Domestic, municipal, industrial, and agricultural water demands are normally consumed whereas those for hydro power can be re-used.

Target level is set for each water usage as shown below:

1) Domestic and Municipal Water Demand

The unit water consumption Water demand per head that is commensurate with the income level is set. Not only the average income level but also its classification should be considered. Multiplying this value with the estimated future population gives the domestic and municipal water demand

Based on the Key Informant Interview of the different water districts, the unit water consumption per capita ranges from 97 to 136 liters per capita per day (lpcd). They are as follows: Butuan WD – 121 lpcd, Bayugan WD – 98 lpcd, Prosperidad WD – 136 lpcd, Bunawan WD – 136 lpcd, Nabunturan WD – 97 lpcd. They are all within the set standard established under the NEDA Board Resolution.

Other Level III system has exhibited similar characterization on the unit water consumption. Crossing Gabi Rural waterworks System & Multipurpose Cooperative (Compostela) has water consumption of 93 lpcd, Compostela Waterworks System (Compostela) has 112 lpcd unit

Annex 2C-3/7


Final Report

consumption,Maragusan Waterworks & sanitation Multipurpose Cooperative (Maragusan) has 92 lpcd consumption, Monkayo Waterworks System (Monkayo) has 149 lpcd water consumption, Montevista water System & Multipurpose service Coop. (Montevista) has 123 lpcd, New Visayas Rural Water & Sanitation association has 82 lcpd and Cabinuangan Rural waterworks & Sanitation Association (New Bataan), Inc. Has 98 lpcd.

With the above information, the unit water consumption for the planning horizon is projected and exhibited in Table 2C-3:

Table 2C-3

Unit Water Consumption for Level I, II, III and Water Districts

Level I, Level II, & Level III (Unit : lpcd) Year Region Level I Level II Level III

Region XI 21 62 1032005

Region XIII 21 63 106Region XI 21 64 106

2010Region XIII 23 68 113Region XI 22 66 110

2020Region XIII 25 75 125

Water Districts (Unit : lpcd) Year City/Municipality Low Medium High

Butuan City 118 120 122San Francisco 127 129 132Bunawan 103 105 107Prosperidad 133 136 138Bayugan 100 102 104

2005

Nabunturan 100 102 104Butuan City 125 130 136San Francisco 134 139 147Bunawan 109 115 119Prosperidad 136 138 141Bayugan 103 105 108

2010

Nabunturan 103 105 108Butuan City 138 130 136San Francisco 148 139 147Bunawan 121 115 119Prosperidad 152 138 141Bayugan 115 105 108

2020

Nabunturan 115 105 108

2) Industrial Water Demand

The industrial water demand may be estimated from the water permits granted by NWRB. There are only 13 water permits within the river basin classified under industrial use. The water permit is limited in number and as the same time it is impossible to estimate the total volume of water consumption from the water rights granted for industrial use.

In this case, the estimated industrial water demand is assumed to be certain percentage of the domestic and municipal water demand. The industrial water demand is taken at 5, 8 and 10% of domestic and municipal water demand for 2005, 2010 and 2020, respectively. Table 2C-4

presents the domestic, municipal and industrial water consumption for 2005, 2010 and 2020.

Annex 2C-4/7


Final Report

Table 2C-4

Domestic, Municipal and Industrial Water Demand (2005 – 2020)

Water Demand (x1000 m3)

Municipality 2005 2010 2020

Bayugan 980 1557 3139Buenavista 563 921 1825Bunawan 448 708 1310Butuan City 4506 7338 11090 Cabadbaran 619 817 1214Compostela 541 1077 2505Esperanza 507 918 1963La Paz 206 281 805Laak 578 1027 2509Las Nieves 298 445 1060Loreto 341 661 1383Mabini 299 413 903Maco 634 802 1812Magallanes 422 491 665Maragusan 434 515 1289Mawab 299 413 903Monkayo 745 1405 3132Montevista 330 542 1192Nabunturan 557 915 1911Nasipit 563 921 1825New Bataan 452 652 1346Pantukan 610 1084 2385Prosperidad 903 1403 3438RT Romualdez 191 287 534Rosario 663 871 1714San Francisco 1305 1884 3352San Luis 278 538 1149Sibagat 483 744 1358Sta. Josefa 292 614 1393Talacogon 445 713 1361Trento 456 910 2066Veruela 412 804 2146

3) Agricultural Water Demand

The main component for the agricultural water demand largely depends on the irrigation water demand for a particular crop. The values are based on detailed analysis of parameters involving soil type, crop factor, evaporation, evapo-transpiration, rainfall, seepage, and irrigation efficiency.

Existing as well as potential areas for irrigation are pre-determined. Using a water duty equal to 1.5-2.0 lps/ha as recommended by NIA, the irrigation water demand will be the product of the water duty and the hectarage of the irrigation service area.

For the master planning exercise, the water duty of 1.5 lps/ha is adopted. This is applied to the existing national and communal irrigation system for the planning horizon. Likewise, this also applied for the proposed irrigation project under the Master Plan.

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4) Environmental Protection

Under Article 66 of the Water Code and furtherance to Section 44 of the Implementing Rules and Regulations of the Water Code, a minimum stream flow is required for the protection of the environment, control of pollution, prevention of salt damage and general public use. This has been known as the Riparian Flow. It has been generally accepted that the minimum stream flow shall be 10% of the 80% of the flow duration curve. This flow should also be satisfied with the water balance analysis for each of the basin.

Adopting the provisions of the Water Code, the domestic and municipal water demand are all allocated and provided through the planning horizon of the water balance study. This only means that even without the proposed water supply infrastructure, water will be made available to domestic and municipal water supply. Furthermore, the environmental protection will be always at all time present in the water balance.

In case of irrigation, the existing and those proposed irrigation projects will be inputted in the water balance analysis. Thus, a role up water balance study has to be undertaken for upcoming proposed irrigation projects to determine if there is available water from the basin.

1.3 Results

The water balance simulation result is as shown in Table 2C-5 below for the different sub-basin in the Agusan River Basin,

It clearly shows that irrigation requires a lot of water allocation for agricultural production, though most of the basin can still support the irrigation needs. However, Taguibo, Adgaoan and Sulibao are the most stressed basins. At present, the Taguibo SB has two users (Butuan City Water District and National Irrigation Administration) some water management plan is required. With the domestic water supply as top priority, farmers should be informed ahead of the available irrigation water.

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FLOOD SIMULATION

Agusan River Basin Master Plan Project ANNEX 2D

Final Report

ANNEX 2D: FLOOD SIMULATION

FLOOD SIMULATION

The migration of flood events along the Agusan River and its tributary is complex due to the lack of elevation change, channel meandering, the existence of marshy areas and other topographic features. Added to this, is the variability resulting from the distribution and intensity of rainfall within the sub-basins and the entire basin. In order to develop a better understanding of the processes involved, a numerical modeling exercise was undertaken in which basin runoff and routing of the resulting discharge through the river network has been simulated. This results in the creation of a tool that can be used to estimate conditions in the river network for a number of scenarios, to observe the magnitude of discharges at areas of interest, and to examine the effects of floods or impacts of control works.

Runoff modeling is used to estimate the flood magnitude and duration due to a rainfall event in a sub-basin. Selected precipitation conditions are used in the form of a hyetograph to a numerical model that predicts the runoff response as an output hydrograph. To transform the input hyetograph to an output hydrograph, the model uses parameters that to some degree mimic the physical processes of the drainage basin and channel network with respect to storage and transmission of water. The numerical modeling programs used to convert precipitation into runoff vary greatly in complexity, ranging from so-called black boxes to detailed representations of the basin processes. Although estimates of parameter values can be derived from maps and published articles, reasonable results require sufficient calibration information. For this study, the US Army Corps of Engineers (USACE) HEC-HMS and HEC Geo HMS software has been selected for the run-off modeling. HEC Geo HMS is an extension software for ArcView (GIS software) program.

Once a flood hydrograph has been developed for a sub-basin, the flow has to be routed along the tributary, combined with the flow in the main stem and then routed downstream through the remaining portions of the system. As this combined flow travels downstream, other tributaries may contribute additional flow, resulting in greater discharges and potential flooding of areas adjacent to the river. Although the adopted software has a number of methods that can be used to route the generated flows, none of them can simulate channel flow well if downstream conditions have a significant impact on upstream flows or where the flow exceeds the channel carrying capacity. Because of the complexity of the river network within the basin, a complete hydraulic model is required to adequately model the routing of flows. The USACE HEC-RAS and HEC Geo RAS are selected to model the routing of the flows throughout the basin. HEC Geo RAS is another ArcView extension program. The latest versions of this program have the capability to model dynamic conditions.

The hydrologic model of the Agusan River Basin created for this study consists of the sub-basins. Attributes of each of the sub-basins are referred to Table 2D-1, while the boundaries are shown in Figure 2D-1.

Table 2D-1

Sub Basins of Agusan River Basin System

River Index

NumberSub-Basins

Catchment

Area

Percent of the Basin

Area

1 Bugabos 170.55 1.432 Ojot 924.20 7.743 Libang 246.56 2.074 Maasam 418.20 3.505 Kasilan 376.89 3.166 Adgaon 984.81 8.257 Kayonan 729.47 6.118 Haoan 746.34 6.259 Logom-Baobo 291.20 2.44

10 Manat 1,758.20 14.7311 Simulao 978.38 8.2012 Lagcogangan 159.75 1.3413 Gibong 926.38 7.7614 Wawa-Andanon 764.14 6.4015 Taguibo 75.72 0.63

Total 9,550.78 80.01Basin Area 11,936.55

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Figure 2D-1

Boundaries of the Sub-Basins of Agusan River

For each of the sub-basins, the hyetographs for various return periods within the boundary was calculated using the RIDF v1.0 program developed by Woodfields Consultants Inc. for DPWH-FCSEC for the assessment of flood design for ungaged river basin Depth reductions were included to account for the transfer of point rainfall values to an area depth. As a number of different return period scenarios were to be examined or modeled, hyetographs were created for storm events with frequencies of 2, 5, 10, 20, and 30 years. For the preparation of flood hazard map, the storm event applied is based on 10,000 years (almost equal to the Probable Maximum Precipitation (PMP).

The Clark Unit Hydrograph method has been used to transform the rainfall information into runoff values and the discharge hydrograph. To perform this calculation, four variables or parameters

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must be specified: the loss rate, baseflow, and the transform parameters (time of concentration and storage coefficient).

The loss rate, which represents the amount of rainfall that does not become runoff, has been calculated using the Initial/Constant method with the values estimated from the meteorological information available from a number of stations in the basin. A constant baseflow has been assumed and has been estimated from the available discharge records. Time of concentration has been estimated based on the tributary slope and length, and adjusted using engineering judgment. The storage coefficient is an index of the temporary storage of precipitation excess in the sub-basin as it drains to the outlet point. It has been estimated based on simulations of actual events in some of the tributary systems.

For simplicity, and because there is not enough information to suggest otherwise, the modeled storm events are assume to commence at the same time. No attempt has been made to simulate the movement of a storm front across the basin.

The simulated runoff generated in a sub-basin, in the form of a hydrograph, is assumed to occur at the center of the sub-basin. This “wave” of discharge must be routed through the tributary/tributaries or over land to the Agusan River. Once reaching the Agusan River, the inflows are added to the discharge in the main river, which is routed further down the system.

The USACE HEC-RAS program has been used to perform the routing of flows through the river system in the basin. At the upstream end of the tributaries, a boundary condition or inflow hydrograph is required which the HEC-HMS program produces. Flow from the three remaining sub-basins has been modeled as lateral inflow or flow that enters the Agusan River over a length of its course. The boundary at the downstream end of the Agusan River is the ocean. Tidal conditions were not simulated but instead, a constant mean tide level was used.

In the model, rivers are represented by a series of cross sections. As there is no cross section information available, channel geometry was estimated based on field observations while over bank data was extracted from 1:50,000 scale mapping (10 m contours). The location of the cross sections is determined by changes in topography, the location of tributaries, and areas of interest. Variables or parameters that can be adjusted to modify the flow conditions in the system consist of roughness coefficients, expansion and contraction coefficients, areas of ineffective flow, and over bank distance between cross sections. Some adjustments were made based on discharge records from the Agusan River in which the migration of flood waves down the system could be observed.

A number of flood scenarios have been run using the same network. The entire basin has been divided into three regions; upper, central and lower regions. In the scenarios, a probable rainfall event was assigned to each of the regions. For example, one scenario has a 30-year rainfall in the central portion, while a 10-year rainfall is used in the upper and lower portions. For the scenarios, flood hydrographs have been extracted at the following locations: Compostela, Kalaw Bridge, Upstream end of the Agusan Marsh, Agusan Marsh outlet, Esperanza, and Butuan.

It was determined that the most significant, and probably realistic, scenarios to examine in detail would be the situation where 10 and 30 year events occur in the different regions of the watershed. The discharge hydrographs for 3 scenarios are presented in Figures 2D-2 to 2D-4.These represent the following conditions:

�� Figure 2D-2: 30 yr rainfall in upper region, 10 yr in central and lower regions

�� Figure 2D-3: 30 yr rainfall in central region, 10 yr in upper and lower regions

�� Figure 2D-4: 30 yr rainfall in lower region, 10 yr in upper and central regions

Two additional scenarios have been run and reviewed to provide additional insight into the conditions in the Agusan Marsh and what occurs during multiple rainfall events. In Figure 2D-5,the total discharge entering the Agusan Marsh and the discharge exiting it are shown for a 30-year rainfall event in both upper and central regions. In 2D-6 the discharges at the 6 locations identified above are shown for the situation where a 10-year rainfall event, covering the entire, occurs and then is followed by another 10-year event in the central and upper regions.

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Figure 2D-2

30 yr Rainfall in Upper Region, 10 yr in Middle and Lower regions

Figure 2D-3

30 yr Rainfall in Middle Region, 10 yr in Upper and Lower Regions

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Figure 2D-4

30 yr rainfall in Lower Region, 10 yr in Upper and Middle regions

Figure 2D-5

30 yr Rainfall in all Regions

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Figure 2D-6

10 yr Rainfall in All Regions

Conclusions that can be derived from these hydrographs are:

Figure 2D-2 to 2D-4 Hydrographs

The Kalaw Bridge impedes the flow exiting Compostela Valley.

Peak discharges occur downstream of the Agusan Marsh prior to the peak outflow from the marsh. Flooding downstream of the marsh is most likely due to rainfall in the lower region (downstream of the marsh).

Once the peak outflow from the Agusan Marsh has been reached, discharges downstream mirror that exiting the marsh.

The gentle decrease in outflow from the Agusan Marsh indicates that all tributaries entering the marsh would experience backwater conditions for extended periods.

There is a very short lag between the marsh and Butuan. There would be little warning time between the observation of flood flows at the marsh outlet and these flow arriving at Butuan

Figure 2D-5 Hydrographs

The travel time through the tributaries and upper Agusan River reduces the peak discharge in the runoff hydrograph by 35%.

The Agusan Marsh reduces the magnitude of the peak discharge approximately to an 30%. Without the marsh, discharges downstream would be significantly larger, probably leading to more frequency and severe flooding downstream

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Figure 2D-6 Hydrographs

Multiple storms in the central and upper regions will result in higher outflow from the Agusan Marsh, opposed to a single event. But peak discharges in the lower region will still not be as large as that created by a single event in the lower region.

An interesting feature of the Marsh outlet hydrograph in all of the figures is a negative discharge in the upstream. Initially it was thought that this was a result of some error in the base network pertaining to river geometry, variables used, or tributary locations. However, during discussion with a member of CARBDP-PMO it was learned that this condition was observed during an over flight of the area during a flood event. The event can be attributed to the gentle slope on the river downstream of the outlet. During a flood event, the high discharges in the tributaries below the outlet will cause the water elevation to rise at the confluence with the Agusan River. As this occurs prior to the migration of floodwaters from the upstream portions of the basin through the marsh, the water surface will be higher than that in the marsh, resulting in flow both down and up stream.

The major finding of the flood routing analysis is the degree to which topographic features control the movement of floodwaters in the system. The Agusan River can be visualized as a series of shallow bowls interconnected by steeper sections of channel. The boundaries of these bowls are defined by constrictions or the encroachment on the channel by the foothills. In addition, water level conditions in the Agusan Marsh, which forms the largest bowl, dictate whether there is any potential for additional flooding in the downstream reaches. The higher the water levels in the marsh, the less ability it has to absorb additional inflows. The most significant findings indicated by the numerical modeling is that most flood events downstream of the Agusan Marsh are due to flow conditions on the tributaries downstream of the marsh. However, the magnitude and duration of such flooding will still be influenced by the water level and flows into the marsh.

The routing model has also been run to observe whether the potential impacts that an envisioned flood control structure on a tributary would have on the discharge observed on the Agusan River downstream of the tributaries confluence. As it was identified that elevated discharges observed at Butuan are primarily due to runoff from the region downstream of Talacogon, a potential site for structural measures in Ojot River was examined. The “best” scenario for flood control purposes would be an impounding reservoir that will retain 100% of the runoff created from rainfall event. Therefore, the model was run with a 30-year storm covering the entire watershed, but no runoff from Ojot River was allowed to enter the Agusan River.

The modeled effect of retaining all of the potential runoff was that the peak discharges observed at Butuan decreased in the order of 15% only. Such a low decrease can be attributed to relatively small proportion of the watershed area that this sub-basin occupies, especially since the location of a retention structure would have to be built in the foothills, and because of the magnitude of the runoff from the other tributaries located downstream of the marsh.

Because the retention of 100% of the potential runoff during the modeled event resulted in a low reduction in discharges downstream in the system, there was no need to look at the potential impact of reducing the retention percentage.

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VULNERABILITY OF ARB TO HAZARDS

Agusan River Basin Master Plan Project ANNEX 2E

Final Report

ANNEX 2E: VULNERABILITY OF ARB TO HAZARDS

1.0 VULNERABILITY OF ARB TO HAZARDS

1.1 GENERAL

The Mindanao Island, just like other areas in the Southeast Asia, is found to be naturally vulnerable to environmental disasters. The situation plus other human and developmental factors compound communities' incapacity to cope with such disasters.

The vulnerability of communities located within the Basin to hazards refers to their susceptibility to and capacity to cope with environmental stresses. Recent and major events as well as their cumulative impacts highlight the importance of identifying the vulnerability levels of certain areas and segments of the population to collective hazards that form disasters.

There are complex factors at play, which are climate/weather-related, geophysical, ecological and anthropogenic. Identifying vulnerability and risk according to the above categories will assist in completing scenarios, whether historical and/ or projected, and will enable communities to cope with and adapt to environmental disasters.

The Project Report completed in April 2005 with the title “Mapping Philippine Vulnerability

to Environmental Disasters” undertaken by the Center for Environmental Geomatics and the Manila Observatory identified the areas in the country that are at high vulnerability and risk to environmental disasters. Hazards and disasters are mapped and analyzed via geographic information systems (GIS), environmental modeling tools and resulting spatial databases.

One of the output of the Project Study is an Atlas or collection of associated maps which will be used to inform and develop policy recommendations. These maps and analytical results are for dissemination to the public and concerned agencies who are responsible for disaster management and environmental stewardship in the country.

The maps, when properly disseminated, also form decision tools towards better disaster management and adaptation in the country. It is recommended that composite vulnerability and risk indices using the GIS approach be further developed, that is, by and across categories of factors. This is aimed at improving national and local assessment. Results may then guide and strengthen capacity building in disaster preparedness and management.

1.2 METHODOLOGY

Recent and major events, as well as their cumulative impacts, highlight the importance of identifying the vulnerability levels of certain areas and segments of the population to collective hazards forming disasters. Vulnerability is defined as the susceptibility to stresses or hazards, and the capacity (or lack thereof) to prepare, cope and recover from such hazards. Human vulnerability, in particular, is a condition resulting from physical, social, economic and environmental factors, which determine the likelihood and scale of damage from the impact of a given hazard. Human vulnerability includes the vulnerability of social and economic systems, health status, physical infrastructure and environmental assets.

Vulnerability is the concept that explains why a community is more or less at risk to a given hazard. However, neither vulnerability alone nor hazard alone determines the occurrence of a disaster. A hazard, by itself, is simply a potentially damaging event or physical disturbance. It is in the coming together of hazard and vulnerability that disaster occurs. In recognition of these different factors at play, the analytical framework for assessing risks to disasters, which is adapted from the UNDP model and previously cited, is as follows:

Risk = Hazard x Exposure x Vulnerability

Risk as it is used here refers to the likelihood of disaster, loss or harm. It is a function of hazard frequency or severity, the exposed element or element at risk, and the vulnerability of

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that element. In the case that several hazards are under consideration, a composite measure of risk can be attained by summing the risks to specific hazards as follows:

Rtotal = R1 + R2 + R3 + ... + Rn

This framework provides us with a simple method for determining risk based on existing hazards, exposure levels and conditions of vulnerabilities. Risk assessment is both important and urgent in that development scenarios and choices influence the distribution and magnitude of disaster risk. Thus, adaptation as well as disaster prevention and mitigation must be integrated into development strategies and plans by decreasing vulnerability levels, or avoiding the impacts of hazards when possible.

1.3 HAZARDS

Hazards may be categorized into natural and anthropogenic hazards. Climate and weather-related hazards, such as typhoons and droughts, as well as geophysical hazards, like earthquakes, volcanic eruptions and tsunamis, are natural hazards.

Anthropogenic, or man-made, hazards include deforestation, mining and climate change.

The hazard maps, particularly climate/weather-related and geophysical, were intersected with the base map from the National Mapping and Resource Information Authority (NAMRIA). The base map shows the delineation of the political boundary of each province in the country. Geographic Information Systems (GIS) software was used to overlay and multiply the hazard scores with the population density scores and the Human Development Index (HDI).

A natural hazard is defined as a natural process or event that is potentially damaging in that it may result in loss of life or injury, loss of property, socio-economic destruction or environmental degradation. Climate- and weather-related hazards, in particular, refer to the direct and indirect effects of observed changes and/or projected deviations from present-day conditions of natural climate events (such as increases and decreases in precipitation and temperature); and impacts of changes in the frequencies and occurrences of extreme weather/climate events (such as tropical cyclones, droughts, and El Niño and La Niña events).

Geophysical events are destructive phenomena. However, these are part of the normal functioning of our dynamic planet. These so called hazards are due to naturally occurring processes in the earth's interior.

Four hazards are considered under this category: Earthquakes, earthquake-induced landslides, tsunamis and volcanic eruptions. Sources of data for these hazards include the Philippine Institute of Volcanology and Seismology (PHIVOLCS) and the Earthquake and Natural Resource Atlas of the Philippines of 1998.

A natural process that is hazardous is the movement of lithospheric plates (the solid crust and a few kilometers of the upper mantle), which causes the tectonic earthquakes. US Geological Survey defines the term earthquake as "both sudden slip on a fault, and the resulting ground shaking and radiated seismic energy caused by the slip, or by volcanic or magmatic activity, or other sudden stress changes in the earth (i.e. event by man made explosions)".

Furthermore, the resulting ground motion due to an earthquake produces another natural hazard such as landslides and tsunamis. Landslide is the downslope movement of soil and/or rock.

Tsunami is a sea wave of local or distant origin that results from large-scale seafloor displacements associated with large earthquakes, major submarine slides, or exploding volcanic islands.

One other example of a hazard is the ascent of molten material called magma beneath the earth's surface, which results to eruptions of a volcano. A volcano is a vent at the Earth's surface through which magma (molten rock) and associated gases erupt, and also the cone built by effusive and explosive eruptions.

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Reviewing the natural disaster record for the Philippines, volcano and earthquake disasters are frequent in the top ten. (EM-DAT: The OFDA/CRED International Disaster Database, www.em-dat.net - Université catholique de Louvain - Brussels -- Belgium)

As with the climate- and weather-related hazards and to generate four risk maps, the resulting normalized hazard maps are multiplied with maps of normalized gridded population density by city and municipality in 2000 as well as the normalized inverse of the HDI by province in 2000.

Flooding is related to both natural and anthropogenic hazards. In the Agusan River Basin The main causes of flooding in the Basin are the following:

(a) Excessive runoff due to the typhoons

(b) Compounded with the silted waterways due to excessive erosion from the deforested catchment, mining and kaingin activities, settlement of the population along the river banks, mismanaged implementation of land use plan and other related human interventions.

Discussion and elaborations of flood hazards will be illustrated in Section 5 of this Report.

1.4 RISK

1.4.1 EXPOSURE

Data on the year 2000 population density in 5 km by 5 km grids was obtained from the National Statistics Office and from municipal data. The gridded population density represented the exposure.

Other available exposure factors include: Population Density by province (1995 and 2000), Settlement Areas and Populated Places, and the state of the Ecological Resources.

1.4.2 VULNERABILITY

Provincialized Human Development Indices of the year 2000 was obtained from the Philippine Human Development Report 2000 published by the UNDP and HDN. HDI encompasses health, education and income factors. The inverse of the HDI represented the vulnerability score.

Other available vulnerability factors include: incidence of poverty, access to urban centers and transportation facilities, and the state of the natural environment.

1.4.3 RISK MAPS

The hazard scores, exposure scores and HDI scores were normalized by setting the highest values as 100 and readjusting the rest accordingly.

Risk here distinctly represents risk to human life. As mentioned, it was computed using the UNDP framework R = H*E*V, or, in this case:

Risk = (Normalized hazard score) x (Normalized exposure score) / (Normalized HDI).

The resulting risk scores are likewise gridded. For the purpose of dissemination to local government units (LGUs), the risk scores are provincialized. The risk score for each province is the sum of the weighted contributions of all grids intersecting the province, where the weight is based on the area of the intersecting polygon. After provincializing, the risk scores are again normalized with 100 as the highest value. The results were presented in map form as follows:

(a) Risk to Typhoons

Figure 2E-1 shows that Northern Luzon, Southeastern Luzon and Eastern Visayas are the areas highly at risk to the occurrence of tropical depressions, tropical storms, typhoons and super typhoons.

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(b) Risk to Earthquakes

Since 1968, PHIVOLCS has recorded twelve destructive earthquakes in the Philippines. This record includes the infamous July 16,1990 Luzon earthquake which caused innumerable injuries and at least 1,100 deaths. Seismicity (geographic and historical distribution of earthquake events) is all over the country except in the Palawan region.

La Union and Pangasinan are prone to earthquakes, especially the deep-focused ones, due to the Manila Trench while Surigao del Sur and Davao Oriental have earthquake hazards due to Philippine Trench and nearby active faults. Frequency of shallow and left-lateral strike-slip earthquakes in Nueva Vizcaya, Nueva Ecija, Eastern Pangasinan, Benguet and La Union can be attributed to its location along the Philippine Fault Zone.

However, Ifugao, despite having less earthquake occurrences is at risk because of its very high vulnerability to disasters. Figure 2E-2 delineates the risks related to earthquakes.

(c) Risk to Earthquake-Induced Landslides

Most of the provinces, except Palawan, are susceptible to landslide hazards as shown in Figure 2E-3.

Ifugao, Lanao del Sur and Sarangani ranked high because of their high vulnerability to disasters while Rizal ranked the lowest. Benguet, despite its low vulnerability, ranked four because of its high exposure factor or population density. Aurora ranked higher than Davao del Sur and Davao Oriental despite its low vulnerability compared with the other two provinces. This is due to the fact that the whole of Aurora is more susceptible to landslide than the other two provinces.

(d) Risk to Tsunamis

In November 14,1994, a 7.1 magnitude earthquake in Mindoro triggered a tsunami that left at least 41 persons dead, mostly children and old people.

Figure 2E-4 shows the risk to tsunamis. Most of the coastal areas have experienced a tsunami or have a tsunami hazard potential.

Sulu and Tawi-tawi took the top two seats because of their high potential for tsunami owing to their location between two nearby trenches namely, Sulu Trench and Cotabato Trench. Moreover, both provinces are also densely populated and have very high vulnerability. Similarly, most areas in Basilan and Romblon are at high risk especially because they have been previously affected by a tsunami. (PHIVOLCS)

(e) Risk to Droughts

Areas highly at risk to El Niño-induced drought are Central and West Mindanao as shown in Figure 2E-5.

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Figure 2E-1

Risk to Typhoons

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Figure 2E-.2

Risk to Earthquakes

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Figure 2E-3

Risk to Earthquake-Induced Landslides

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Figure 2E-4

Risk to Tsunamis

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Figure 2E-5

Risk to Droughts (El Niño)

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1.5 VULNERABILITY OF ARB

The concept of vulnerability and risk to environmental disasters, coupled with its geographic or spatial perspective, gives us meaningful and useful insights. In particular, vulnerability and risk mapping assist in spatial analyses towards the formulation of more effective ways to respond in terms of policy and decision-making as well as strategizing adaptation and mitigation at various scales.

As presented, the Agusan River Basin is vulnerable to earthquake and earthquake-induced slides. The risk maps relative to these hazards show high probability of occurrence across the Basin.

The risk maps, in general, aid in identifying areas where further study is both important and urgent. Strengthening of the framework, R = HEV, is needed to more accurately portray actual risk conditions. Techniques may include considering collateral hazards, varied exposed elements, and multiple vulnerability indicators.

Moreover, national-scale mapping reveals trends and themes across categories that may potentially be correlated. Future directions, therefore, can also include comprehensive studies to establish if such correlations do exist, and how these connections influence vulnerability and risk assessment.

1.5.1 EARTHQUAKE

The affected areas are on the Agusan Valley region where the southern segment of the Philippine Fault passes through. The fault can be traced from the east side of the Malimono Ridge or west Lake Mainit and traverses the Agusan Valley floor in a NW direction. Another fault west of the ridge parallels the main trace and becomes indistinct in the town of Cabadbaran. Meanwhile, a branch of the main fault swerves into the southeast towards the shore town of Lianga. The town of Bayugan is at the junction where the SE-trending splay of the NW-trending Philippine Fault branches off towards Lianga. A plot of earthquakes (Figure

2E-6) with Ms > 4.0 from 1960 to 1997 shows that seismicity in the epicentral area that originates mainly from the activity of the Philippine Fault Zone (PFZ) is not so intense. The plot shows that most events are found along the west Lake Mainit fault segment. Seismicity is dispersed throughout the valley area; most of these have small magnitudes and shallow depths. Seismicity in the region is lower as compared to the offshore area between the PFZ and the Philippine Trench, which is also a source of significant seismic activity. Large earthquakes had affected the Agusan Valley

On June 7, 1999, a Ms 5.1 earthquake occurred at 3:45 PM (local time) and damaged the town of Bayugan in Agusan del Sur. Using the PHIVOLCS seismic network, its epicenter was determined to be at 8.575 N lat, 125.754 E long or about 20 km south of the town of Bayugan as shown in Figure 2E-7. Its depth is estimated at 7 km. After two days in June 9, an aftershock occurred and damaged the town of Talacogon also in Agusan del Sur.

The epicentral areas of both events are located in the Agusan Valley region, previously called by Maso (1911) as lying along one of the “unstable portion of the line of fracture …” due to the succession of damaging earthquakes that occurred in the area in the latter part of 19th century.

Figure 2E-8 and 2E-9 are risk maps related to earthquake hazards.

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Figure 2E-6

Plot of EQ

Figure 2E-7

June 7, 1999 Isoseismal Map

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Figure 2E-8

ARB Risk to Earthquakes

Figure 2E-9

ARB Risk to Earthquake-Induced Landslides

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1.6 DCOSs IN AGUSAN RIVER BASIN

The existing disaster coordinating organizations in the Agusan River Basin runs in parallel with the existing local government units.

The aftermath of the recent disastrous event caused by various natural phenomena in some areas made the Provincial Governments in Agusan Basin (Agusan del Norte, Agusan del Sur and Compostela Valley through their respective Provincial Governors to reorganize and reactivate the Provincial Disaster Coordinating Council (PDCC). The structure of PDCC as shown in the Organizational Chart in Figure 2E-10 is divided into three (3) groups namely the Executive Team, Staff Teams and Working Committees which will be under the control of the chairman of the Council.

The Executive Team is composed of the Chairman, Vice Chairman and the Disaster Operation Center (DOC). The Staff Team is composed of three (3) sub-groups namely, Intelligence and Disaster Analysis, (b) Resources Management, and (c) Plan and Operation. The Working Committees is composed of nine (9) committees namely; (a) Warning and Communication, (b) Rescue and Recovery, (c) Welfare and Rehabilitation, (d) Relief, (e) Police, (f) Medical, (g) Fire Brigade, (h) Transport and (i) Public Information

Figure 2E-10

Typical Structure of the Provincial Disaster Coordinating Council

Annex 2E-13/14


Final Report

1.6.1 DUTIES AND RESPONSIBILITIES

a) The PDCC Executive Team

�� Establishes a physical facility to be known as the Provincial Operations Center (PDCC)

�� Establishes policies/guidelines on emergency preparedness and disaster operations and management

�� Formulates a Plan on Action for disaster preparedness for the province in accordance with the guidelines set by the Regional Disaster Coordinating Council (RDCC)

�� Coordinates the disaster operation in the province

�� Implements within the province disaster management and operations according to the guidelines set by the RDCC and the plan of action of the province

�� Advises the municipal disaster coordinating councils on disaster management

�� Submits appropriate recommendation to the RDCC, as necessary

Annex 2E-14/14

ASSESSMENT OF MERCURY CONTAMINATION

OF AGUSAN RIVER SYSTEM

Agusan River Basin Master Plan Project ANNEX 2F

Draft Final Report

ANNEX 2F: ASSESSMENT OF MERCURY CONTAMINATION OF

AGUSAN RIVER SYSTEM

1.0 BACKGROUND

Agusan River is one of the major water bodies in the CARAGA Region. It is the 2nd largest river in Mindanao, with an approximate basin area of 10,921 square kilometers. The river is one of the region’s significant water resources, which is tapped by people for rice field irrigation and other agricultural purposes. The main river is also used as a waterway, a means to transport forest and agricultural products as well as a route to transport other goods in and out of Butuan City and the surrounding localities. The headwater is located at the Compostela Province of Region XI with a number of river tributaries draining from the Agusan Provinces. The river is classified as “Class C” water body having the following beneficial uses: 1) Fishery Water for the propagation and growth of fish and other aquatic resources; 2) Recreational Water Class II (boating, etc); 3) Industrial Water Supply Class I (for manufacturing processes after treatment).

The river is also a recipient of pollution coming from households, agricultural run-offs and other man-made activities, including soil erosion from the denuded forest and other areas, which explains the river’s “murky” waters. Likewise, concerns on the degradation of the river, which was allegedly caused by mercury contamination thru an amalgamation process in gold-containing ores along Mt. Diwata (otherwise known as Mt. Diwalwal) and other gold mining/processing areas within or in proximity with the Agusan River basin such as in Rosario, Bunawan and San Francisco of the Province of Agusan del Sur, have been raised by various sectors since the early 1990’s.

In the past (CY2000 and 2002), studies have been conducted to assess the nature and extent of mercury contamination along the Agusan River System by the DENR-MGB Central Office, DENR-MGB Regions 11 and 13, DENR-EMB Region 13, UNIDO/ DENR-MGB Manila and DA-BFAR/MSU-Naawan, where some sampling stations were proven to be positive with mercury contamination in sediments and even exceeds the standard established in the Sediment Quality Criteria for the Protection of Aquatic Life (Environment Canada 1992, as quoted in Appleton 2000). It may be noted that the DENR do not have soil or sediment quality criteria, while a concentration of 1.0 ppm toxic effects threshold limit was established in the Sediment Quality Criteria for the Protection of Aquatic Life, in Canada.

This survey/assessment intends to validate the secondary data on the mercury contamination in sediments from selected sampling points found along the study area. The survey shall also tackle on the mercury contamination in water (total mercury) and in the collected biota samples to validate the study conducted by the DA-BFAR/ MSU Naawan on freshwater fish in year 2002. The results of the study will tell whether there have been any changes thru time as it was believed that many gold processing activities have shifted to the use of cyanide instead of mercury.

2.0 OBJECTIVES AND METHODOLOGY

This study is conducted to validate the secondary data on mercury contamination of the Agusan River System, as reported in the previous studies, which in turn may be used to derive a partial evaluation of its water quality regarding beneficial use and its relation to the water quality criteria as embodied in the DENR Standard and other international standards in the absence of the local or national standards such as for sediments and other criteria.

Annex 2F-1/6


Draft Final Report

The study will also give us a better understanding and would help us determine if there have been significant changes, thru time, in the contamination level of mercury in the river sediments, and its assimilation in the river waters. It will also validate the effect from switching the use of mercury in the extraction of gold from its ores, with the use of cyanide in gold extraction. Cyanide is now being widely used by small-and big-scaled gold mining companies.

The study areas of this survey include the upstream portion of the Agusan River, between the Agusan Marsh and in confluence with the Naboc River, the Agusan Marsh, and the downstream portion of the Agusan River System. The mercury contamination of Agusan River will be validated by conducting lab analysis on river water, sediments and fishes in order to determine the spot concentrations of mercury, the extent of mercury dispersion in sediments, and bioaccumulation in certain species of fishes.

On January 28 – 31, 2008, a team comprised of technical personnel from DENR-EMB 13, DA-BFAR 13 and a representative from the project consultants conducted water, sediment and fish sampling at predetermined sampling locations along the Agusan River Basin. The spot concentration of mercury was determined for the following sampling sites: a) Downstream of Maputi Creek (San Francisco, Agusan del Sur), which is a tributary of the Agusan River where an existing small-scale gold mining/ processing plant can be found somewhere in its upstream; b) Point along Naboc River (Province of Compostela Valley) that is located near Mt. Diwalwal, a known place for gold mining/ processing; c) Agusan River after confluence of Naboc River; d) Upstream of the Agusan Marsh (Veruela, Agusan del Sur); e) Downstream of Agusan Marsh, along Lake Himbang (Talacogon, Agusan del Sur); and f) Mouth of Agusan River (Magallanes, Agusan del Norte) (see Figure 2F-1). Mercury analysis along Sampling points c) to d) would indicate the presence or dispersion of mercury-containing contaminants along the River System.

3.0 SAMPLING AND ANALYTICAL PROCEDURES

As earlier mentioned, sampling for water, sediment and fishes were performed along the six (6) identified sampling locations. Several mode of transportation were employed (i.e. motor boat, motorbike and rented van) in order to get to all the sampling sites due to difficulty in access. Water and Sediment Samples were collected along the active portions (such as curves, confluences or along areas with highest sediment deposits) of the river and tributaries. At least one (1) kilogram of sediment samples, from each sampling site, were manually collected (using a make-shift dredge equipment made of PVC plastic material)l and stored in polyethylene plastic bags. Water samples were obtained using a water sampler and placed in 1000 mL polyethylene bottles. The water samples were ‘fixed’ with Nitric acid to less than a pH of 2.0 to prevent the reduction of mercury species thru retardation of biochemical degradation. This will preserve the water samples for mercury analysis for 28 days. Fishes of different species (excluding janitor fishes) were acquired on-site thru net fishing. This is to prevent potential contaminants from hooks getting into the fish samples. Snails were collected along Maputi Creek (San Francisco, Agusan del Sur) since no fish could be found within the specified sampling location. The fishes were identified, weighed and measured on-site. Afterwhich were packed in aluminum foil and placed in polyethylene bags. The fish samples were immediately stored in an ice chest to prevent advance biological degradation, which could reduce the mercuric species absorbed in the fish tissues.

Cold Vapor Atomic Absorption Spectrophotometry (AAS) technique was used in the analysis of total mercury in water and sediments (Toxic Characteristic Leaching Procedure or TCLP for sediments prior AAS), while a Microwave Digestion and Hydride Vapor Generation Technique was used in the analysis for total mercury in the fish samples collected. A third party laboratory (Intertek Testing Services Philippines, Inc.), duly accredited by DENR and BFAR to conduct

Annex 2F-2/6


Draft Final Report

physico-chemical environmental analyses, was commissioned to perform the mercury analysis on all acquired samples.

4.0 REPORT ON THE RESULTS OF MERCURY ANALYSIS

4.1 Water Quality

The Department of Environment and Natural Resources (DENR) had promulgated through Department Administrative Order No. 34, (DAO No. 34), Series of 1990, a Revised Water Usage and Classification/ Water Quality Criteria amending Section Nos. 68 and 69, Chapter III of the 1978 NPCC Rules and Regulations. Under this, a Water Quality Criteria for Toxic and Other Deleterious Substances for Freshwater had been set for the protection of public health. Hence, for this study, this National Standard shall apply.

The whole stretch of the Agusan River, which is located in Caraga Region 13, has been classified by EMB as “Class C” water body. In the absence of the classification of its tributaries, a classification of Class C may also be adapted. The established standard of total mercury per DAO No. 34, for the protection of public health for “Class C” fresh water is 0.002 mg/L (ppm). All the water samples collected at the established sampling sites have not been detected for presence of mercury, thus these are free from mercury contamination (See Table 2F-1). The detection limit of the instrument used for the analysis for total mercury in water is 0.1 ppb.

4.2 Sediment Quality

All the sediment samples collected at the identified sampling locations have not been detected for presence of mercury, thus all the sediment samples are free from mercury contamination (See

Table 2F-1).

It may be noted that there is no National Standard established for soil or sediment quality criteria for mercury. In the absence of this National Standard, a value of 1.0 ppm toxic effect threshold limit established in the Sediment Quality Criteria for the Protection of Aquatic Life (Environment Canada 1992, as quoted in Appleton 2000) may be used for the purpose of this assessment. Based on the report of the analysis for mercury in the collected sediments from the Agusan River System, none of these values exceeded the concentration of 1.0 ppm, hence, the mercury concentrations of the river’s bottom sediments of the pre-selected sampling stations within the Agusan River System is within that established Canadian standard.

4.3 Fish Samples Quality

Fish samples that were collected from the established sampling stations were analyzed for mercury using Hydride Vapor Generation Technique. Similar with the results in water and sediment analyses, all fish samples, including the snail samples, were found have negligible amount of mercury contamination (See table XX). This result indicates that the fishes along the identified sampling locations are safe for human and animal consumption in terms of mercury contamination.

Annex 2F-3/6


Draft Final Report

5.0 CONCLUSIONS

1. Based from the result of the water samples collected from the established sampling stations at the Agusan River System, starting from the Naboc River located at the Compostela Valley Province down to the mouth of Agusan River along Butuan City and Magallanes, Agusan del Norte, its stream waters are free from mercury contamination. This is because the elemental mercury has low solubility in neutral waters, and no dissolutions of mercury from the mercury contaminated river bottom sediments.

2. For the river bottom sediments, the mercury concentration, on all sampling locations, is below detection limit. Compared to the study made in March 2002 by the joint team composed of DENR-MGB Central/ Regional Offices 11, 13 and the DENR-EMB Region 13, the present values of mercury in sediments from the same sampling stations are way below from those values indicated in the previous study, which ranges from 0.170 ppm at the Mouth of Agusan River and 1.910 ppm at Naboc River. This is an indication of improvement from switching the use of mercury in gold processing with the use of cyanide in gold extraction from its ores.

3. All fish samples were found out to have mercury concentration less than the detection limit (0.01 ppm). This implies that fishes that can be acquired from these areas are good for consumption if to consider only mercury contamination.

6.0 RECOMMENDATIONS

1. To conduct regular monitoring of mercury levels in waters, sediments and fishes that thrives in the Agusan River System.

2. To regulate the small-scale mining industries and promote the responsible use of chemicals in the extraction of gold.

3. Conduct a region wide geo-chemical study of the Agusan River System for soils and sediments to determine background concentrations of mercury to determine the quantity of the mercury contamination of the river’s bottom sediments of the Agusan River System.

Annex 2F-4/6


Draft Final Report

Figure 2F-1. Location Map of Sampling Sites

Annex 2F-5/6

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BIOPHYSICAL FEATURES OF THE AGUSAN RIVER BASIN

Agusan River Basin Master Plan Project ANNEX 2G

Final Report

ANNEX 2G: BIO-PHYSICAL FEATURES OF THE AGUSAN RIVER BASIN

1.0 Bio-Physical Features of the Agusan River Basin

1.1 Land Classification

Table 2G-1 shows land classification in the Country.

Table 2G-1

Comparative Data on Land Classification in the Philippines

Year Total A and D

Lands (ha)

Total Forest

Lands (ha)

Total Area (ha)

1978 13,070,886 16,929,114 30,000,000 1987 14,108,087 15,891,913 30,000,000 1996 14,117,244 15,882,756 30,000,000 2003 14,145,078 15,854,922 30,000,000

Source: Philippine Forestry Statistics, Forest Management Bureau

The following is a synthesis of Land Classification in the Philippines and in the ARB:

�� The total Alienable and Disposable lands (A and D) in the whole country increased by 1,074,192 hectares (8.2%) with a corresponding decrease in total forest lands from 1978 to 2003.

�� The general increased trend in total A and D lands and decreased in total forest lands in the whole country is assumed to follow the same trend in the ARB.

�� In Agusan del Norte, A and D lands is 66,630 hectares or 25.7% of the total land area of 259,029 hectares. Total forest lands is 259,029 hectares or 74.3% of the total land area.

�� In Agusan del Sur, the total A and D lands is 221,628 hectares or 24.7% of the total land area of 896,553 hectares while the total forest lands is 674,922 hectares or 75.3% of the total land area.

�� In Davao del Norte, the total A and D lands is 297,674 hectares or 36.6% of the total land area of 812,975 hectares. Total forest lands is 515,301 hectares or 63.4% of the total land area.

�� The average % A and D and forest lands for Agusan del Norte, Agusan del Sur, and Davao del Norte is 29.0 and 71.0 %, respectively.

1.2 Forest/Land Use Cover

Table 2G-2 shows forest/land use cover in the ARB analyzed by TA Team based on NAMRIA 2003 data. Table 2G-3 shows old growth forest cover, and Table 2G-4 shows residual forest cover.

Annex 2G-1/5


Final Report

Table 2G-2

Forest Land Use Cover

Table 2G-3

Old Growth Forest Cover

Description Area (ha) % of Total Area

Built-up 2,304 0.2Close Forest, Broadleaves 48,516 4.1

Cultivated, Annual 174,598 14.6Cultivated, Perennial 146,944 12.3

Fishponds 2,522 0.2Grasslands 22,988 1.9

Inland Water 6,066 0.5Marshland 55,437 4.6

Natural, barren 66 0.01Open Forest, Broadleaves 790 0.1Open Forest, Coniferous 283,785 23.7Wooded lands, shrubs 140,804 11.8Wooded lands, fallow 3,484 0.3

Wooded lands, grasslands 305,445 25.5Others 2,134 0.2

Total 1,193,655 100.00

1992 1997

Total Forest Old Growth

Forest Total Forest

Old Growth

Forest

Philippines 5,900,200 804,900 5,391,717 804,900 Region 10

(incl. Caraga Region) 97,100 97,100

Region 11 (incl. Caraga Region) 89,200 89,200

Annex 2G-2/5


Final Report

Table 2G-4

Residual Forest Cover (ha): 1992 and 1997

1992 1997

LocationTotal Forest

Residual

Forest Total Forest

Residual

Forest

Philippines 5,900,200 3,131,900 5,391,717 2,731,117 Region 10

(incl. Caraga Region) 533,700 463,839



A brief synthesis of the forest/land use cover is follows:

�� While the total forest lands (15,854,922 hectares) in 2003 is high compared to

16,929,114 hectares in 1978, the fact remains that not all these forest lands are necessarily forested now. In fact, from 1992 to 1997, only 804,900 hectares remain as old growth forest or virgin forest. From 1992 to 1997, the old growth forest in Regions 10 and 11 remained the same at 97,100 and 89,200 hectares, respectively. These figures include CARAGA Region;

�� Total forest cover in the country decreased from 5,900,200 hectares in 1992 to 5,391,717 hectares in 1997;

�� For the same period, the total residual forest decreased from 3,131,900 to 2,731,117 hectares in the whole country. In Region 10, the decrease was from 533,700 to 463,839 hectares, while in Region 11, the decrease was from 561,900 to 476,190 hectares for the same period;

�� The average decrease in forest cover is 101,696.6 hectares per year for five years; �� Close forest (broadleaves) – assumed as old growth forest/virgin forest, within the ARB is

48,516 hectares or 4.1% of the land total land area of 1,193,654 hectares. Open forest (broadleaves and coniferous) has a total area of 284,575 hectares or about 23.8% of the total land area. These areas are potential targets for forest protection;

�� Wooded lands (shrubs, fallow, grasslands) have a total area of 449,734 hectares or 37.6% of the total land area of ARB. These areas are the potential areas for restoration/rehabilitation;

�� Cultivated areas for annual crops occupy 174,598 hectares. Cultivated areas planted with annual crops are the target areas for boundary planting using permanent crops such as fruit trees or timber species.

1.3 Reforestation

Table 2G-5 shows the reforestation trend in the Philippines. An analysis of reforestation trend in the country by both the government and the private sector showed the following:

�� The total area reforested by both the government and the private sector in 1990 and 2003 is 191,663 and 15,088 hectares, respectively. On the average, about 84% of the total area was reforested by the government in both years. The highest total reforested area (191,663 hectares) was attained in 1990 while the lowest (15,088 hectares) was recorded in 2003;

Annex 2G-3/5


Final Report

�� From 1991-2003, total reforested area per year ranged from 93,039 to 15,088 hectares with an average of 42,898.6 hectares per year. From 1977 to 1989, the range was 53,263 to 131,404 hectares per year with an average of 62,269.5 hectares per year; and

�� There was an increased trend in reforestation in the country from 1977 to 1989, reaching its peak in 1990. On the other hand, reforestation had a decreasing trend from 1991 to 2003 with an average reforested area of 42,898.6 hectares per year. For both periods, the average reforestation rate is 52,584.0 hectares per year.

The average reforestation rate of 52,584.0 hectares per year is way down the average forest depletion of 101,696.6 hectares per year between 1992 and 1997.

Table 2G-5 AREA REFORESTED BY THE GOVERNMENT AND PRIVATE SECTORS: FY 1972-75 TO CY 2003 (In hectare)

Government Non-Government Sector

Year Grand Other Timber IFMA/SIFMA/CBFMA

Total Total DENRGovernment

Agencies Total Licensees 1/ TFLA/PLA/

ITPLA PD 1153 Others

CY 2003 15,088 13,195 6,565 6,630 1,893 842 1,034 - 17

2002 25,620 20,681 9,111 11,570 4,939 564 3,850 - 525

2001 24,847 19,927 19,887 40 4,920 1,410 2,721 - 789

2000 27,632 21,740 19,059 2,681 5,892 1,989 3,421 - 482

1999 42,167 31,184 30,831 353 10,983 6,904 - - 4,079

1998 42,368 33,219 32,643 576 9,149 8,236 2/ - - 913 3/

1997 66,237 49,301 48,490 811 16,936 14,357 2/ - - 2,579

1996 46,096 18,869 18,869 - 27,227 20,005 3/ - - 7,222 2 /

1995 65,233 21,841 7,840 14,001 43,392 30,380 3/ - - 13,012 2 /

1994 49,551 18,032 18,032 - 31,519 9,468 18,729 - 3,322 2 /

1993 19,211 6,347 6,347 - 12,864 12,692 172 - -

1992 40,593 24,304 24,304 - 16,289 11,683 4,606 - -

1991 93,039 73,602 72,238 1,364 19,437 18,089 1,348 - -

1990 191,663 153,949 146,718 7,231 37,714 33,443 3,749 - 522

1989 131,404 89,452 82,966 6,486 41,952 32,087 6,526 - 3,339

1988 64,183 31,226 30,890 336 32,957 23,126 9,831 - -

1987 39,811 28,843 27,558 1,285 10,968 7,956 1,118 1,296 598

1986 32,998 24,426 22,495 1,931 8,572 6,572 1,625 368 7

1985 24,231 12,684 12,201 483 11,547 8,148 1,500 1,228 671

1984 38,935 16,088 15,520 568 22,847 14,186 7,011 1,650 -

1983 78,538 42,239 27,155 15,084 36,299 31,703 3,554 1,042 -

1982 63,262 35,201 31,202 3,999 28,061 21,588 972 5,501 -

1981 64,541 33,296 30,707 2,589 31,245 20,096 6,482 4,667 -

1980 60,516 39,881 32,956 6,925 20,635 15,579 1,162 3,894 -

1979 79,397 51,858 35,305 16,553 27,539 20,132 545 6,017 845

1978 78,425 44,686 34,343 10,343 33,739 22,006 5,001 6,523 209

1977 53,263 33,365 23,677 9,688 19,898 17,276 1,088 500 1,034

1976 31,733 23,228 20,977 2,251 8,505 8,275 - - 230

FY 1974 - 75 15,280 15,280 15,280 - - - - - -

1973 - 74 4,994 4,994 4,994 - - - - - -

1972 - 73 5,787 5,787 5,787 - - - - - -

1/ 1990-1994 Including Enrichment Planting of Timber Licensees

2/ Including accomplishment of IFMA and SIFMA holders

3/ Private Lands and other organizations

Annex 2G-4/5


Final Report

1.4 Soil Erosion

Table 2G-6 shows a comparative soil erosion rates from selected watersheds. Three of these watersheds are within the the Agusan River Basin.

Table 2G-6

Soil Erosion Estimate from Selected Watersheds

Name of

Watershed Area (ha)

Soil

Erosion

(tons/ha)

Major

Infrastructure Location

Funding

Agency

Tigum-Aganan

41,200 2.26 Iloilo Flood Control Proj Iloilo JBIC

Can- asujan 3,872 20.72 NIA RIS Carcar, Cebu ADB

Gibong 41,554 26.11 NIA NIS Prosperidad, ADS ADB

Calayagon 15,650 14.62 NIA CIS Buenavista,ADN ADB

Logum-Baobo 21,003 14.94 NIA RIS Comval and

ADS ADB

The average soil erosion (tons/ha) in three watersheds (Gibong, Logum-Baobo and Calayagon) is 18.56 tons/ha compared to 20.72 tons/ha in Cana-asujan Watershed in Cebu. Both erosion rates are higher than 10 tons/ha which are used as a tolerable limit for most soils. Only the Tigum-Aganan Watershed in the Province of Iloilo has lower (2.26 tons/ha) soil erosion compared to the tolerable soil erosion level.

Annex 2G-5/5

BIOPHYSICAL FEATURES OF ARB SUB-BASINS

Agusan River Basin Master Plan Project ANNEX 2H

Draft Final Report

ANNEX 2H: BIO-PHYSICAL FEATURES OF ARB SUB-BASINS

1.0 BIO-PHYSICAL FEATURES OF ARB SUB-BASINS

Seventeen (17) sub-basins are delineated for ARB, including the Agusan Marsh, which are being proposed as the basic planning units for watershed management. The mapping of these sub-basins is as shown in Figure 2H-1.1

Figure 2H-1

Sub-Basins within the Agusan River Basin

1 The map of the ARB has been initially presented in Volume IIIA of this Master Plan. It is once more provided in this thematic report for presentation purposes.

Annex 2H- 1/5


Draft Final Report

1.1 Soils and Slopes

Sandy clay loam is the dominant soil texture in the ARB (Table 2H-1 and Figure 2H-2),followed by clay loam, silty clay loam, loam and sandy loam. Sandy clay loam tends to be associated with relatively high erosion potential when disturbed; thus, reminding of the importance of vegetation cover on these lands to naturally arrest erosion.

Table2H-2 and Figure 2H-3 summarizes the slope classification prevailing within the Basin. The dominant slope class on the average is 18-30% (20%) followed by slope class 8-18% (12%). On the average, slope class 0-18 % comprises about 35% of the total area while slope class 50% and above has about 14%.The slope class 0-18% is substantial. Denuded portions of these areas are priority areas for restoration.

Table 2H-1

Soil Texture, ARB

SOIL TEXTURE

No Sub-basin Area (Ha) Clay % Loam %

Sandy

Loam%

Silt

Loam%

Clay

Loam%

Sandy

Clay

Loam

%

Silty

Clay

Loam

%Hydro

sol%

Undiffer

entiated %

1 Adgaon 98,481 3748 4 99 0 3240 3 1661 2 89738 91

2 Bugabos 17,055 8568 50 8488 50

3 Gibong 92,638 45964 50 8918 10 1567 2 18950 20 17245 19

4 Haoan/Ihaoan 74,635 554 1 7682 10 21485 29 44920 60

5 Kasilan 37,689 779 2 282 1 36631 97

6 Kayonan/Umayam 72,947 1236 2 4993 7 2355 3 64368 88

7 Libang 24,656 485 2 24173 98

8 Logom-Baobo 29,120 1931 7 1697 6 1621 6 14794 51 9079 31

9 Manat 175,822 6523 4 154 0 28541 16 88601 50 24195 14 1851 1 25970 15

10 Maosam 41,820 319 1 41503 99

11 Ojot 92,419 349 0 1715 2 90361 98

12 Simulao 97,838 19151 20 5732 6 166 0 24983 26 2847 3 44965 46

13 Solibao 15,975 8119 51 457 3 489 3 6911 43

14 Taguibo 7,572 658 9 4794 63 2120 28

15 Wawa-Andanon 76,414 582 1 5031 7 36393 48 34413 45

16Agasan-FloodPlain 219,244

17 Agusan Marsh 19,331

TOTAL 1,193,655 6028 1 85363 7 37827 3 5583 0 100420 8 149863 13 24195 2 4980 0 540886 45Source: TA Team

Annex 2H- 2/5


Draft Final Report

Annex 2H- 3/5

Figure 2H-2

Soil Texture Map of ARB


Draft Final Report

Table2H-2

Slopes, ARB

SLOPE

No Sub-basin Area (Ha) %0-3 % 3-8 % 8-18 % 18-30 % 30-50 %

50 and

above %

1 Adgaon 98,481 8 7335 7 12968 13 9955 10 24292 25 9656 10 34281 352 Bugabos 17,055 1 140 1 268 2 4906 29 6441 38 4512 26 790 53 Gibong 92,638 8 17047 18 33701 36 15438 17 15166 16 6879 7 4258 54 Haoan/Ihaoan 74,635 6 3334 4 21144 28 21381 29 21756 29 6305 8 721 15 Kasilan 37,689 3 865 2 4385 12 5142 14 24984 66 265 1 2051 56 Kayonan/Umayam 72,947 6 4735 6 4365 6 2623 4 11131 15 26928 37 23170 327 Libang 24,656 2 335 1 1698 7 3487 14 9165 37 5018 20 4954 208 Logom-Baobo 29,120 2 4027 14 7305 25 12307 42 2393 8 2694 9 116 09 Manat 175,822 15 53276 30 23552 13 22291 13 31280 18 22009 13 23099 13

10 Maosam 41,820 4 920 2 2301 6 1914 5 6724 16 8771 21 21190 5111 Ojot 92,419 8 3127 3 5659 6 16374 18 30967 34 17234 19 19065 2112 Simulao 97,838 8 17112 17 18546 19 21324 22 26609 27 12513 13 1693 213 Solibao 15,975 1 1156 7 7423 46 894 6 4657 29 1105 7 740 514 Taguibo 7,572 1 852 11 1988 26 2885 38 1848 2415 Wawa-Andanon 76,414 6 6298 8 6251 8 3842 5 25205 33 10401 14 24423 32

16Agasan-FloodPlain 219,244 18

17 Agusan Marsh 19,331 2

TOTAL 1,193,655 100 120560 10 149565 13 141877 12 242756 20 137176 11 162399 14Source) TA Team

Annex 2H- 4/5


Draft Final Report

Figure 2H-3

Slope Map of ARB

Annex 2H- 5/5

LAND USE AND LAND COVER

Agusan River Basin Master Plan Project

ANNEX 2I

Final Report

ANNEX 2I: LAND USE AND LAND COVER

1.0 LAND USE AND LAND COVER

The following major land uses are found in the basin area:

�� Land for settlements, villages and built-up areas for towns, industrial and commercial areas.

��Agricultural land such as lands for rice, corn and other cereals, upland farms (mixed cropping or intercropping) by small holders, grasslands, and plantations (coconut, rubber, oil palm, banana, abaca) by commercial farmers.

�� Forested land (e.g. primary forest, second re-growth, reforested, shrub vegetation, production timber)

��Bare land (e.g. firstly logged-over and not reclaimed; only grasses are growing, mining areas)

Kaingin farming (shifting cultivation) by the indigenous people living in the tropical forest was the predominant agricultural practice of the uninhabitable hinterland before the Second World War. In the early 1970s, over 60% of the land was still covered with primary forest. By that time, intensive logging operations were already taking place in the basin that continued into the early 1990s. Replanting or selective logging was not largely carried out. At present, there is no more known virgin forest left in the basin except a portion of only less than 1% of the area remained untouched (Gibong Watershed area, national parks, and isolated patches along the Ojot River).

With the presence of naturally stable soils and uniform climate in the basin (soil in the basin has a high infiltration capacity) a quick grass cover could be established so that the formation of gullies, further soil degradation and massive sheet erosion could not take place. No large land slips can be seen on the mountain slopes of the basin after some intensive rainfall. Where new land in the basin is open and people got settled, agricultural production starts first on a small scale as domestic consumption. Currently, there are a number of commercial plantations of coconut, rubber, oil palm, banana and abaca with-in the basin. The last three items are still expanding due to its high demand in foreign markets.

The land use groups concerns in the Agusan River Basin are important for environmental and socio-economic considerations. Municipalities and provincial administrations have an important role in developing and monitoring the land use pattern of each municipality to increase production and income. Every 10 years, under the Local Government Code, the LGUs update their land use and physical framework plans as a basic requirement for funding support from the national government. LGUs need to set up a proper database to raise taxes for land use and administration. Mapping facilities of the LGUs, however, will remain poor unless special funding is obtained for the said purpose. Maps are generally not correct to scale and some are sketchy (not precise). The available 1:50,000 scale NAMRIA topographic maps are hardly used as reference.

The land cover map relevant to the present land use delineated from 2002 satellite imagery of the Basin is shown in Figure 2I-1.


ANNEX 2I

Final Report

Figure 2I-1

Land Cover Map of the Agusan River Basin


ANNEX 2I

Final Report

1.1 Land Classification

Land classification data in the Philippines reveal that total alienable and disposable lands (A and D) increased by 1,074,192 hectares (8.2%) with a corresponding decrease in total forest lands from 1978 to 2003, Table 2I-1. A similar trend is assumed to occur within the ARB.

Table 2I-1

Comparative Data on Land Classification in the Philippines, 1978-2003

YearTotal A and D

Lands (ha)

Total Forest

Lands (ha) Total Area (ha)

1978 13,070,886 16,929,114 30,000,000 1987 14,108,087 15,891,913 30,000,000 1996 14,117,244 15,882,756 30,000,000 2003 14,145,078 15,854,922 30,000,000


1.2 Forest/Land Use Cover

A. General

While total forest lands (15,854,922ha) in 2003 are high compared to 16,929,114ha in 1998, not all these forest lands are necessarily forested now.

Total forest cover in the country decreased from 5,900,200ha in 1992 to 5,391,717ha in 1997 (Table 2I-2). In Region X, the decrease of the forest cover was from 533,700ha to 463,839ha while in Region XI, the decrease was from 561,900ha to 476,190ha for the same period.

From 1992 to 1997, only 804,900ha remain as old growth forest or virgin forest. From 1992 to 1997, the old growth forest in Regions X and XI remained the same at 97,100 and 89,200 hectares, respectively. These figures include CARAGA Region. The rapid denudation of forested areas resulted to the loss of the productive and protective values of the forest.

Table 2I-2

Old Growth Forest Cover (ha), ARB, 1992 and 1997

1992 1997


Old Growth

ForestTotal Forest

Old Growth

Forest

Philippines 5,900,200 804,900 5,391,717 804,900




Meanwhile for total residual forest, the reduction was from 3,131,900ha inn1992 to 2,731,117ha in 1997 in the whole country (Table 2I-3). The average decline in forest cover is 101,696.6ha per year for five (5) years. In Region X, the decrease was from 533,700 to 463,839 hectares, while in Region XI, the decrease was from 561,900 to 476,190 hectares for the same period.


ANNEX 2I

Final Report

Table 2I-3

Residual Forest Cover (ha), ARB, 1992 and 1997

1992 1997


Residual

Forest Total Forest

Residual

Forest

Philippines 5,900,200 3,131,900 5,391,717 2,731,117




Close forest (broadleaves), assumed as old growth forest/virgin forest, within the ARB is 48,516ha or 4.1% of the land total land area of 1,193,654ha. Open forest (broadleaves and coniferous) has a total area of 284,575ha (23.8%). These areas are potential targets for forest protection.

Wooded lands (shrubs, fallow, grasslands) have a total area of 449,734 hectares or 37.6% of the total land area of ARB. These areas are the potential areas for restoration/rehabilitation.

Cultivated areas for annual crops occupy 174,598ha. Cultivated areas planted with annual crops are the target areas for boundary planting using permanent crops such as fruit trees or timber species.

B. Temporal Analysis of Land Cover Change from 1998 to 2003

Looking at the temporal land cover change in the ARB from 1998 to 2003, its close canopy forest decreased from 14.4% down to 4.12% and the open canopy forest also decreased from 42.07% down to 23.79%. The cultivated-annual, on the other hand, increased from 5.5% to 14.59% and the cultivated-perennial also slightly from 11.66% to 12.32%. (Figure 2I-2 and Figure 2I-3)

The changes tend to imply continuous encroachment in forested lands, and the subjecting of more open lands to the cultivation of annual crops. There was not much planting of perennial crops thus resulting to more denuded and abandoned grassland as shown in 2003 land cover. This is observable also by the slow rate of increase in cultivated annual relative to the rate of increase in open and closed canopy forest for the same period.

Based on close canopy cover, tremendous reductions can be observed in Adgaoan, Gibong, Ihaoan,Lam-awan, and Ojot SBs. Open canopy decline is also noted in Agusan Marsh, Bugabos and Logom-Baobo SBs although there was an increase in the Taguibo SB.


ANNEX 2I

Final Report

Figure 2I-2

Land Cover Map of ARB, 1998


ANNEX 2I

Final Report

Figure 2I-3

Land Cover Map of ARB, 2003

C. Area Covered by Tenurial Instrument and Other Land Classification Types


ANNEX 2I

Final Report

Spatial overlay analysis of tenurial land classification and sub-basin boundary maps was made to isolate the areas considered as timberland, alienable/disposable land, and other land classification types. Furthermore, the areas covered by tenurial instruments (i.e., IFMA, TLA, CBFMA, CADC/CADT, and CSC) in timberland areas and other land classification types were quantified.

Area covered by IFMA and TLA were lumped and separated from areas covered by CBFMA, CADT/CADC, and CSC and those not governed by any instruments. The former is assumed to be taken care of by licensees. The CBFMA, CADT/CADC, CSC and those not covered by any tenurial instrument are the areas where project interventions can be concentrated.

Tables 2I-4 to 2I-6 show the different land classification that currently exist in the sub-basins of ARB.

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Agusan River Basin Master Plan ANNEX 2I

Final Report

1.3 CRITICAL AREAS FOR INTERVENTIONS

While forest cover depletion in the country accelerated in a fast pace at an average of 101,696.6ha per year from 1992-1997, the rate of reforestation lagged behind. The estimated rate of reforestation is only 52,584ha per year. This figure shows that reforestation is 48.3% slower than the rate of forest cutting. This situation brought about the significant increase of unproductive grasslands/brush lands in the entire country.

In the ARB, the estimated grassland areas alone are 305,445ha out of the total area of 1,193,655ha. These grasslands used to be the site of lush forested areas that once produced timber products.

The once forested areas, which are now substantially under grassland cover, have lost their productive as well as their protective roles to protect the environment. While grasslands have their own protective values to control peak runoff and accelerated soil erosion, forested areas have been observed to provide better hydrologic values compared to grasslands as to controlling peak runoff. When peak runoff is controlled, the consequent accelerated soil erosion is likewise controlled.

A study in the Subalpine Range Ephraim Watershed, Utah, USA showed that a reduction of ground cover, particularly forest cover, from 60-75% to only 10%, will increase surface runoff from 2% to 75% of rainfall. This increase shows that almost all the rainfall may appear as surface runoff.

In this situation, the potential of peak runoff that may cause flash flooding is increased. Likewise, the increase in soil loss is from about 0.07 tons/ha to about 20 tons/ha from the same reduction in forest cover. This increase in soil loss (soil erosion) is two times the tolerable soil loss (10 tons/ha) for most soil types.

In three (3) sub-watersheds in the ARB, the estimated average soil erosion is almost 19 tons/ha/year. These sub-watersheds are the Gibong and Logum-Baobo subwatersheds in Agusan del Sur (ADS) and Calayagon subwatershed in Agusan del Norte (ADN). (Tables 2I-

7 and 2I-8) The average estimated soil erosion of about 19 tons/ha/year is almost two times the tolerable soil loss of 10 tons/ha/year for most soil types.

Annex 2I-12/13

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Agusan River Basin Master Plan Project ANNEX 2I

Final Report

Table 2I-8

Status of Watersheds within the Agusan del Sur

Annex 2I-13/13

MANAGEMENT OF AGUSAN MARSH

AND WILDLIFE SANCTUARY

Agusan River Basin Master Plan Project ANNEX 2J

Final Report

ANNEX 2J: MANAGEMENT OF AGUSAN MARSH AND WILDLIFE SANCTUARY

1.0 MANAGEMENT OF AGUSAN MARSH AND WILDLIFE SANCTUARY

The Agusan Marsh and Wildlife Sanctuary (AMWS) is the most ecologically sensitive area within the Agusan River Basin. It is one if not the most important wetland in the Philippines owing to its biodiversity and habitat uniqueness. It is of international significance as a Ramsar-designated site and as the wintering ground of migratory bird species.

The issues and concerns confronting the Agusan Marsh were tackled extensively in key informant interviews with relevant institutions and community leaders as well as reiterative consultation fora involving a wide range of stakeholders during Phase I of the project.1 These fora included Needs Assessment Workshops, barangay consultations, Basin-Wide Consultation Workshop and feedback-discussions with the Technical Assistance Steering Committee (TASC) and the Technical Working Group (TWG). The outcomes of these consultations invariably reaffirmed the need to treat the Agusan Marsh as a special planning unit within the Agusan River Basin and to craft an appropriate program for managing it.

1.1 BACKGROUND

1.1.1 The Protected Area

The Agusan Marsh and Wildlife Sanctuary is located in the mid-stream catchment of Agusan River Basin, extending from Veruela in the south to Lake Lumao near Talacogon in the north. In recognition of its ecological significance, it was proclaimed a national protected area system under the National Integrated Protected Areas System (NIPAS) Act by virtue of Presidential Proclamation No. 913 issued in October 1996.

The protected area consists of 19,196 ha, with 14,836ha designated as core area and 4,360ha as buffer zone. It covers significant portions of five (5) municipalities, namely Bunawan, Rosario, Loreto, San Francisco and La Paz and a small part of the municipality of Veruela, all of Agusan del Sur. (Figure 2J-1)

In 1999, the AMWS was registered with the Ramsar as a wetland of international importance owing to its hydro-ecological significance, biological diversity and uniqueness as a natural wetland of its type within the bio-geographic region where it is located. The Ramsar-designated area corresponds to the 14,836-ha core protected area of the Marsh.

The AMWS belongs to the Mindanao Bio-geographic Zone. It supports the largest expanses left in the Philippines of seven (7) habitat types; namely, (1) open water (oxbow lakes, floodplain lakes and ponds); (2) flowing water; (3) herbaceous swamp; (4) scrub swamp; (5) swamp forest; (6) riverbank; and, (7) inundated forest.

The very large areas of swamp forests in Agusan Marsh are not found anywhere else in the country. The sago forest and peat swamps of the Marsh are of the kind that is found only in two (2) other areas in the Philippines, namely the Leyte Sub-basin in the Visayas and Liguasan Marsh in Central Mindanao.

1 Documentation of these activities are found in the working papers of the Environmental Specialist (Local) found in Volume VIII (Working Papers) of this Master Plan.

Annex 2J-1/28


Final Report

Figure 2J-1

Location of Agusan Marsh and Wildlife Sanctuary, ARB Master Plan

The Agusan Marsh harbors pristine and natural habitats with a unique assemblage of flora and fauna. It contains unique vegetation species that can withstand long periods of flooding. The Terminalia forest of the Marsh is the most extensive of its kind left in the Philippines. It is host to some endemic species of crocodiles and snakes, rare species of butterflies, and several threatened, critically threatened and endangered that are included in the International Union on the Conservation of Nature (IUCN) Red List

Owing to its intrinsic ecosystem attributes, the Agusan Marsh has significant ecological, hydrological, economic and social core values in both global and local terms. Foremost among its ecological values are biodiversity conservation, nutrient cycling, soil fertility and food web support. In addition, besides being a wintering ground for international migratory bird species, it serves as spawning area for some marine and freshwater fish species. The Marsh also plays a significant global as well as local role in atmospheric and climate regulation.

The Marsh performs two (2) very important hydrologic functions; namely, attenuating downstream flooding and retaining sediments and other pollutants during flood events. It is often said that without the Marsh acting as a natural catch basin, Butuan City would not be on the map.

The Marsh is crucial in the provision of economic goods and services. Its wealth of economic goods includes water supply, food, fuel, forest products, fisheries and a highly diverse pool of biological resources, many of which are rare or endemic and some of which are increasingly facing risk of extinction.

In social terms, the Marsh is home to a significant population of indigenous people (IP) groups. Majority of the IPs are Agusanon-Manobos, who are highly dependent on the natural resources of the Marsh

Annex 2J-2/28


Final Report

(water supply, fisheries, wildlife, timber and non-timber products, etc.) for a living. The cultural and spiritual values attached to biological resources by these IPs further constitute a part of the social wealth of the Agusan Marsh. Moreover, the pristine and unique land- and waterscapes have intrinsic aesthetic worth and give the Marsh a high potential for recreational activities such as day-tour navigation, bird-watching, and eco-educational trips.

Owing to its unique cultural and natural landscape, there is a local initiative to have the Agusan Marsh registered among the United Nation’s Educational, Scientific and Cultural Organization’s (UNESCO) World Heritage Sites.

1.1.2 Wetland Management Issues and Threats

A myriad of issues and concerns pose a big challenge to the management of the Marsh. As discussed below, both natural processes and anthropogenic activities continue to threaten the ecological integrity and core values provided by it, and further undermine the sustainability of the resources on which its occupants depend for survival.

A. Fragmentation

Since significant areas of it were already declared alienable and disposable (A and D), the Marsh has increasingly been fragmented and degraded. Even with its proposed expansion under House Bill 1953, the protected area of the Marsh will remain fragmented and disconnected. At least two (2) critical observations confirm this, which merit reconsideration as far as the proposed expansion is concerned.

First, significant drainage areas of the Adgaoan River in La Paz and of the Agusan River near the Marsh’s outlet in Talacogon are excluded in the proposed expansion. Second, the proposed expansion is not congruent with the actual wetland extent.

As shown also in the previous Figure 2J-1 the actual extent of inundation covers 56,000ha based on a satellite image of the Marsh taken during a peak flood event in year 2002. In contrast, the proposed 40,000-ha expansion excludes some perennially water-logged areas but includes areas that are not at all being inundated.

Thus for example, judging from the flood extent, a large area of the proposed expansion within the municipality of San Francisco is, technically speaking, no longer within the wetland complex while significant portions of Veruela and other municipalities that were left out are actually still part of the wetland complex.

B. Environmental Degradation

A number of natural and human-induced factors contribute to environmental degradation, which further exacerbates the wetland’s fragmentation.

(i) Flooding

Flooding in general is beneficial for maintaining the ecological function of the Marsh. However, to its residents, flooding could be a boon or a bane, depending on the type of economic activities people engage in. To most IPs who depend on fisheries resources for livelihood, flooding could mean more fish catch. To some riparian farming communities it translates to more fertile floodplains on which to grow seasonal crops. On the other hand, tenured rice farming communities and palm oil plantations in the peripheries of the Marsh equate flooding with unwanted damage to crops and properties.

Most certainly, basin areas both upstream and downstream of the Marsh regard flooding as a major economic deterrent. A proposal has been put forward in the past to drain the Marsh into another catchment, partly to reduce flooding and partly to increase irrigable areas. This measure, of course, was not found to be technically and economically feasible.

Annex 2J-3/28


Final Report

(ii) River Bank Erosion

Field evidence and anecdotal accounts confirmed that the main culprit causing the sedimentation and siltation of Agusan River is river bank erosion. Local residents report of losing some riverine sitios or villages completely to the meandering river channel. With each flood event, the river deposits as much as 0.5m of sediments and organic debris in the Marsh.

The active erosion of river banks is a natural process and is typical of a river in its depositional stage. This phase is also accompanied by active meandering of the river channel and formation of raised river banks and oxbow lakes. In the Basin, this process has been hastened by the past wholesale clearance of closed canopy forest cover.

As it stands, the current government program to establish replacement vegetation using single-stand, mono-culture economic tree species is far less effective in delaying and dissipating the energy of surface water run-off as it rushes from the hills and hits the flood plain. Moreover, current efforts are also quite inadequate to protect the remaining primary forest cover and second growth vegetation from illegal extraction.

(iii) Agricultural Practices

The practice of “slash and burn” cultivation along river banks for rice, corn, banana and other cash crops further exacerbates river bank erosion. What is more alarming is that rare swamp and terminalia forests within the seasonally dry areas of the Marsh are being burned and cleared for inland cultivation. This unrestrained clearing of natural vegetation is contributing significantly to habitat fragmentation and loss of biological diversity.

In addition, the peripheral areas of the Marsh are largely A&D lands that have been titled to migrants. The continuous expansion of rice production and palm plantations threatens to undermine the natural buffering protection afforded by these areas to the Marsh’s ecosystems.

(iv) Unsustainable Resource Extraction and Over-exploitation

The competition of a growing population over dwindling common resources only serves to hasten the decline of biodiversity and fragmentation of the Marsh. Wildlife hunting and illegal harvesting of remaining timber and non-timber forest products such as rattan, bamboo, fuel wood, thatch materials and sago continue at unregulated rates. Unsustainable methods such as electric fishing and the use of pesticides and unsuitable mesh are responsible for the drastic decline in fisheries resources.

(v) Tenurial Conflicts

The blatant disregard for customary and traditional rights and the issuance of overlapping and inappropriate tenurial instruments only helped foment insecurity as to ownership, rights and access to traditional and common resources, especially land. This has lead, in turn, to resource use conflict and over-exploitation of resources.

Formal issuance of Certificates of Ancestral Domain Titles (CADTs) is being awaited for the two Certificates of Ancestral Domain Claims (CADCs) in the Marsh. Portions of these areas, however, overlap with areas for which rights were granted to tenured migrants (e.g., Certificates of Land Ownership Agreements (CLOAs) issued by the Department of Agrarian Reform to its beneficiaries) and to holders of resource-harvesting permits and other co-management agreements issued by the DENR.

The irrational manner in which tenurial rights are vested is exemplified in the case of a lake system in the Marsh, for which a formal title was issued in the name of the DAR, supposedly for a proposed “Kaunlaran Resettlement” site for agrarian reform communities (ARCs).

(vi) Land Conversion

The last few decades have seen the rapid conversion of extensive swamp forests and river bank areas into fishponds, rice paddies and cultivation plots for cash crops. Moreover, the buffer areas of the

Annex 2J-4/28


Final Report

Marsh that are largely classified as A&D lands are rapidly being converted to agricultural and other land uses.

(vii) Species Introduction

Some portions of the Marsh have been converted into fishponds and there are future plans to convert other areas for aquaculture.

The introduction of exotic species through aquaculture could pose a threat to the Marsh’s natural bio-diversity because introduced species have the potential to overpopulate and increase competition for food with native species. Some introduced species could become predators and threaten native species to extinction. Such is the case in fact with the janitor fish, which a recent fisheries assessment study has found to have invaded the Marsh.

C. Water Pollution

Figure 2J-2 shows that nine (9) major tributaries empty into the Marsh and thus contribute to its pollution load, namely: Gibong River, Solibao River, Simulao River, Manat/Upper Agusan River, Logom-Baobo River, Ihaoan River, Kawayanan River and Adgaon River. The potential sources of water pollution in the Marsh are mining, agri-chemical run-off, domestic waste and sediments due largely to riverbank erosion.2

2 The Water Quality Management Program for the Agusan River Basin is discussed in this Master Plan in the following chapters: IIIB (Chapter 7.0 and Appendix B) and as Chapter 2.0 in this Volume IV.

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Figure 2J-2

Major River Tributaries of Agusan Marsh

(i) Mining

There are three (3) mining areas that drain into the Marsh; namely, (1) Diwalwal in Monkayo; (2) the eastern hills of Maco, Pantukan and New Bataan in Compostela Valley; and, (3) the Co-o-Sinug-ang-Tinago-Masabong area (COSTMA) in Bunawan and Rosario, including a gold processing plant in San Francisco, all in Agusan del Sur.

Mining and gold ore processing operations in these areas are largely unregulated and are known to use mercury and cyanide in massive amounts. The possible concentration of Hg in sediments in the Marsh over time is a cause for concern, since Hg is a heavy metal that readily adheres to sediments and may be bio-accumulated in its food chain.

While periodic assessments have confirmed the seriousness of Hg contamination in tributaries immediately draining these mining areas, the threat of Hg contamination in the Marsh has not been duly studied. There has been no monitoring of water quality parameters, certainly none on Hg, within the Marsh.

(ii) Agri-Chemical Run-off

The map also shows extensive agricultural areas devoted to rice, banana and palm oil plantations. The agri-chemical run-off from these areas eventually finds their way into the Marsh. Incidents of fish kills and poisoning of domestic animals have been reported by locals. However, these have not been substantiated due to the absence of monitoring data and relevant studies.

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(iii) Domestic Waste

The absence of appropriate solid waste disposal and waste water treatment facilities in all communities upstream of and within the Marsh is causing the spread of diseases from coliform and human waste contamination.

The incidence of diarrheal diseases is rampant among Marsh occupants, many of whom heavily depend on Agusan River for domestic water supply. Again, however, monitoring data on relevant water parameters within the Marsh is wanting.

(iv) Sediments

The significant sediment load carried by the tributaries into the Marsh is aggravating the decline of fisheries resources. Sediments prevent the penetration of sunlight thereby hindering the growth of algae and thus limiting the food supply for fish population. At the same time, the possibility of Hg contamination of these sediments due to mining is a serious concern as already mentioned.

D. Social Concerns

(i) Population Pressure, Poverty and Livelihood

Natural population increase coupled with uncontrolled in-migration continues to exert pressure on the resources of the Marsh. This continues to worsen in the absence of a rational population program. The increasing population pressure and the obvious lack of sustainable livelihood options to address the stark poverty only serve to further hasten the ecological degradation and fragmentation of the Marsh.

(ii) Basic Health Needs

Most residents of the Marsh lack adequate potable water supply and sanitation facilities. Water from rain collectors is never treated. During the drier months, when water delivery from more reliable sources proves to be a strain on the household budget, the domestic water is sourced directly from rivers and lakes. These water courses conveniently serve as public toilets in the absence of sanitary facilities at the household level.

The health risk due to water contamination is serious, as indeed health data confirm. The absence of sanitation facilities is aggravating the spread of schistosomiasis in irrigated rice cultivation areas. Presently in the Basin, the highest incidence of schistosomiasis is found among rice farming communities in Agusan del Sur. The provision of innovative solutions to these problems continues to be a challenge.

E. Institutional and Management Issues

Community consultations and FGDs confirm that the following constitute the most serious institutional constraints and management weaknesses that contribute to the ecological degradation of the Agusan Marsh:

i. Poor public awareness and lack of appreciation of the ecological value of the Marsh ii. Poor stakeholder participation in decision-making iii. Weak planning, implementation and policy environment, as exemplified by the issuance of

conflicting and inappropriate tenurial instruments iv. Overlapping mandates among institutions involved in the management of the area, as

exemplified by the duplication of functions between the PAMB and the Agusan Marsh Alliance (AMA)

v. Poor knowledge/data base on which to base management decisions

1.1.3 Past, On-Going and Proposed Development Interventions

Several water-diversion structures have been undertaken and proposed; upstream of and within the Marsh. These include flood diversion channels of the Department of Public Works and Highways

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(DPWH), hydropower projects of the Philippine National Oil Corporation (PNOC) and irrigation projects of the National Irrigation Administration (NIA) and the Department of Agrarian Reform (DAR).

Any proposed water-abstraction scheme for irrigation, hydropower development and flood control may have serious implications as to possible alteration of the Marsh’s hydrologic regime.

Thus, in any such project, measures must be in place to ensure that the wetland’s life-sustaining ecosystem and hydrologic functions are further enhanced instead of compromised. Also any proposed irrigation expansion should not put the Marsh into greater risk of pollution from agri-chemical run-off or increased spread of schistosomiasis and other water-borne diseases.

1.1.4 Trends and Internal/External Constraints

The prevailing trend characterized by unsuitable forestry programs, illegal or unsustainable resource extraction, unsound agricultural practices, unregulated land conversion, insecurity of tenure, runaway population growth, and uncontrolled in-migration are all antithetical to the protection of the ecological integrity of the Marsh. Without sound integrated interventions to reverse this trend, the intrinsic hydro-ecological values of the Marsh will continue to be compromised.

If left unaddressed, the continuing decline in Basin water quality due to pollution from mining, agriculture, domestic waste and waste water and sediments will continue to threaten the natural ecological, hydrologic, economic and social functions of the wetland.

Moreover, management and development of the Marsh will be further constrained if the present peace and security problems as well as the externalities of Basin and country-wide political and economic uncertainties prevail. The security risks in the Basin have to be addressed decisively if long-term economic development options such as eco-tourism and the development of hydropower and other resource-based industries including environmentally sound mine processing operations, for example, are to be pursued.

1.1.5 Current Policy, Legislative, and Planning Frameworks

A. International Commitments

The Philippines is a signatory to several multi-lateral agreements in relation to the management of the AMWS. These still need to be translated locally into frameworks of action and pursued in the overall context of sustainable development (Agenda 21). Two (2) of these international initiatives are most significant and are discussed below.

(i) Convention on Wetlands of International Importance (Ramsar, Iran, 1971)

The AMWS is of international importance and is included among Ramsar-designated sites. The Ramsar Convention promotes the principle that wetland ecosystems are an integral component of the global water cycle from which water resources are derived. It provides for the wise use of all wetlands and for individual countries to nominate their significant wetlands for listing as wetlands of international importance.

The principal expectation is that listed sites will be managed to protect the ecological character and intrinsic features for which they were recognized. Any action that results in a deterioration of these values is considered to be in violation of the treaty.

(ii) Wetlands Protocol (Paris, 1982)

The Paris Protocol places emphasis on the conservation of wetlands of international importance especially as a waterfowl habitat. The Philippines has other international commitments to conserve water resources and bio-diversity; and, protect endangered and migratory species, among others that also relate to the management of the Marsh.

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B. Governing Philippine Legislations

The NIPAS Act (RA 7586, 1992) and its Implementing Rules and Regulations, namely DENR Administrative Order (DAO) 92-25 constitute the basic national policy and legal framework for the management of AMWS.

The NIPAS Act aims to protect important terrestrial, wetland or marine habitats of rare and endangered flora and fauna species, bio-geographic zones and related ecosystems, by designating as Protected Areas certain biologically diverse areas such as strict nature reserves, parks, sanctuaries, watershed areas, protected landscapes and seascapes and natural biotic reserves, among others.

In 1996, the AMWS was designated as one of the components of the country’s integrated protected area system by virtue of Presidential Proclamation No. 913.

Other local issuances bear on the management of wetland resources.

C. Responsible Institutions

(i) Multi-Sectoral Governing Board

The NIPAS Act places the Marsh under the direct management and oversight of the Protected Area Management Board (PAMB).

The PAMB is an inter-sectoral, multi-stakeholder policy-making body chaired by the DENR-Regional Executive Director. Its membership comes from the concerned Provincial Planning and Development Council(s), municipal LGUs, barangays, indigenous communities, local NGOs and people’s organizations (POs). The Protected Area Superintendent (PASu) staff serves as the Secretariat of the Board. The PASu also acts as the chief administrative and regulatory officer to implement the PA’s management plan in the field.

(ii) Agusan Marsh Alliance

After the Conservation of Priority Protected Areas Project (CPPAP) ended, the Agusan Marsh Alliance for Sustainable Integrated Area Development was created by virtue of an Executive Order issued by the Provincial Governor of Agusan del Sur in 2004. The Alliance practically duplicates the mandates of the PAMB, except that it covers the entire 13,000-ha watershed area that drain into the Marsh.

The Alliance has almost the same composition as PAMB, except that the Provincial Governor rather than the DENR-RED chairs the Alliance, co-chaired by the Provincial ENRO. The Municipal Mayors of 8 (not 6) municipalities together with the PAMB Chairperson, representatives of the tribal datus of the eight (8) municipalities, DENR-PASu, the four CENROs and the PNP sit as members.

The PPDO (not the PASu/PIU) serves as the Secretariat of the Alliance. A Technical Working Group was also created under the EO to serve as the technical arm of the Alliance. The TWG is composed of the Municipal ENROs and Municipal Planning and Development Coordinators (MPDCs) of the eight (8) LGUs together with the PENRO, LGU-PENRO, PASu/PIU, PPDO and NCIP.

(iii) Government and Non-Government Agencies

At the national level, all NIPAS areas in the country are administered by the DENR through the Director of the Protected Area and Wildlife Bureau (PAWB) and at the DENR regional level by the Regional Technical Director for Protected Area and Wildlife Division (PAWD).

At the same time, the DENR-Forest Management Bureau, the National Water Resources Board (NWRB), the Provincial/Community ENRO and the LGUs all have conflicting mandates over the management of forestlands and water resources.

A&D lands in the Marsh are under the management of the Department of Agriculture (DA). The DA currently implements programs providing production support, marketing assistance, micro-credit, post-harvest facilities, research and development, agricultural extension, capability building and, more

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recently, bird flu monitoring through foreign-funded projects such as the WB-financed Mindanao Rural Development Program (MRDP).

Some areas in the Marsh have been placed under the Comprehensive Agrarian Reform Program (CARP). The DAR first made its presence felt in the Marsh during the implementation of the EU-assisted Agrarian Reform Support Program (ARSP) until 2001. Other projects are on-going including the JBIC-assisted Agrarian Reform Infrastructure Support Program (ARISP), AusAid-funded Philippine-Australian Technical Support for Agrarian Reform and Rural Development (PATSARRD) and Mindanao Sustainable Settlement Area Development Project (MINSSAD). These projects provide infrastructure (farm-to-market roads and bridges, solar power generators, water supply, multi-purpose buildings, schools and post-harvest facilities), resettlement, livelihood, institutional capacity building and credit mobilization support to agrarian reform communities (ARCs). Through the IFAD-funded Northern Mindanao Community Initiatives and Resource Management Project (NMCIREMP) DAR is currently working with NCIP towards granting full tenurial security to indigenous communities of the Marsh.3

The National Commission for Indigenous Peoples (NCIP) is responsible over indigenous communitiesand their ancestral domains. The agency assists in the processing of (CADCs and CADTs as well as the preparation of Ancestral Domain Management Plans.

Some national agency functions have been devolved to LGUs such as community-based forestry, small-scale mining and watershed management. The Bureau of Fisheries and Aquatic Resources (BFAR) and the LGUs have conflicting jurisdictions over the management of fisheries resources including aquaculture. The Provincial Government of Agusan del Sur undertakes livelihood and conservation projects with funding from the Philippine-Australian Community Assistance Program (PACAP) and with technical advice provided by the international Volunteer Service Organization (VSO).

A number of non-government organizations (NGOs) are actively involved in various ways in the Marsh, from hydrologic studies to research, organic farming, capability building and monitoring of illegal activities, among others.

The apparent overlap if not unclear delineation of responsibilities as well as poor coordination among implementing agencies has resulted to interventions that are often fragmented, piece-meal and incongruous with the conservation priorities in the Marsh. Sometimes, conflicting interests have led to serious misuse and abuse of the Marsh’s resources.

1.2 ASSESSMENT OF PRESENT AMWS MANAGEMENT PLAN (2001)

1.2.1 Basic Features

A. Scope

The AMWS is one of the 10 priority NIPAS areas in the Philippines for which management plans were drawn up during the implementation of the CPPAP in 1994-2001. The Project was funded by the Global Environment Facility (GEF) and the World Bank (WB). It was co-implemented by the DENR and a national umbrella NGO organization called NGOs for Integrated Protected Area Project, Inc. (NIPA, Inc.)

The AMWS Management Plan covers a total of 111,540ha, which includes practically all areas within eight (8) municipalities of Agusan del Sur; namely, La Paz, Bunawan, San Francisco, Rosario, Veruela, Loreto, Talacogon, Santa Josefa.

The Plan was to be implemented within a period of five (5) years from 2001 to 2006.

3 The NMCIREMP is earlier cited in the Thematic Report on IP Development (Chapter 6.0).

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B. Elements of the Plan

(i) Goals and Strategies

The AMWS Management Plan had (3) three goals: (1) to protect/conserve habitats and associated species; (2) to improve local economy and tenurial security; and (3) to institutionalize PA management system. These goals were translated into nine (9) strategies; namely:

1. IEC 2. Community Organizing and Empowerment 3. Capability Building for PAMB, PASu and the CPPAP Project Implementing Unit (PIU) 4. Designation of Management Zones 5. Formulation of Proposals 6. Designation of Tree Plantation Corridors (for community-based forestry) 7. Technology Transfer (timber processing) 8. Food Security Program

(ii) Health Program

Eco-tourism as a revenue generating option was explicitly endorsed in the Plan although the details of implementation in support of the avowed management objectives were only haphazardly drawn.

(iii) Management Zones

The Plan divided the total area into seven (7) Management Zones; namely, 1) Strict Protection Zone, 2) Multiple Use Zone, 3) Sustainable Use Zone, 4) Recreation Zone, 5) Cultural Zone, 6) Restoration Zone and 7) Buffer Zone.

The Plan also described the function of each zone and prescribed the restrictions as well as activities allowed. The criteria used for such zone classification and designation were not clear, however, and the boundaries between zones were not actually delineated in the field.

(iv) Institutional Arrangements

The Plan upheld the institutional arrangements prescribed by the NIPAS Act, with the PAMB serving as a policy-making body chaired by DENR-RED. The Board consisted of 76 members sitting en banc representing six (6) LGUs, IP groups, NGOs and organized POs. The Project Implementing Unit (PIU) headed by the PASu and in partnership with a local umbrella NGO (Karaga Biodiversity Linkages or KABILIN) acted as the Secretariat of the PAMB. It was tasked with the implementation of the AMWS Management Plan.

1.2.2 Status of Plan Implementation

Not surprisingly, the implementation of the AMWS Management Plan has become synonymous with the implementation of the CPPAP. During the FGD, it was confirmed that five (5) years after formulation many of the activities and programs outlined in the plan were not fully or satisfactorily implemented.

A. Specific Activities Completed or Sustained

(i) PA Management and Planning Activities

Some capability-building programs were undertaken to equip the PAMB, PASu and PIU to handle planning and management responsibilities (“lakbay-aral”, trainings on bio-diversity monitoring, project management, GIS, etc.) but these had limited impact.

The Management Information System (MIS) was also established.

To some extent, the PASu was able to sustain a number of activities, a few of which are still on-going with limited funding from DENR. These include PAMB meetings, biodiversity monitoring, IEC and PA

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protection (patrol monitoring and apprehending illegal activities with the help of community volunteers from 59 POs).

(ii) Boundary Demarcation

The delineation on the ground of the boundaries of the PA was contracted out in 1998 to a private surveying firm. Indecision as to the actual scope of the PA (from 19,000ha to 110,000 ha) delayed the delineation significantly. Finally, the delineation of the proposed 40,868-ha expansion was completed in 2005. As already mentioned, the actual extent of the seven (7) management zones was not at all delineated on the ground.

(iii) Infrastructure Support

Some infrastructure facilities were constructed to support PASu activities as part of the institutionalization of the PA management system including the PASU Office, Visitor Center, PAMB Building, Ranger Stations and a watch tower in Lake Tikgon. A Level II potable water system (rain collector) was also developed for wetland communities.

(iv) IEC

A 5-year IEC plan was crafted but it was only partly realized due to limited funds and personnel support. The completed activities include installation of billboards, conduct of house-to-house campaigns, group discussions, symposia and community advocacy through radio programs in partnership with the academe.

(v) Community Organizing and Empowerment

A good number of POs, both consisting of IP groups and tenured migrants were organized and federated at the municipal level. Community-based environmental protection volunteers (“Bantay-Ilog”) were also organized in areas considered as “hotspots” of illegal resource extraction activities.

(vi) Livelihood Projects

Financial assistance was given to 39 POs to implement various livelihood projects, on the condition that about half of the released amount will be paid back and deposited with the IPAF to sustain the financial needs of the PA. The livelihood projects ranged from provision of fishing nets, farm implements and farm inputs; hog raising; nursery and rehabilitation of lumbia plantation; dried fish processing; and novel innovations such as mobile rice and corn mill (i.e., some of these were even floating)

The POs were also provided with trainings on enterprise development, leadership, livelihood development and financial management, among others.

(vii) Tenurial Security

Under CPPAP, the indigenous communities were assisted in the processing of tenurial claims (from CADCs to CADTs) and in the preparation of Ancestral Domain Strategic Development and Protection Plans (ADSDPP).

Tenured migrants, on the other hand, were assisted in preparing their community-based Natural Resources Management and Protection Plans (NRMPP).

B. Lessons Learned vs. Benefits Gained

As explained above, some of the obvious benefits gained from the CPPAP experience, besides the formulation of the first ever Management Plan for the wetland, are the initiation of institutional strengthening and forging of inter-agency collaboration towards protecting the Marsh, tenurial processing, improving access to livelihood opportunities and awareness raising.

The FGD results confirmed that the CPPAP provided a wealth of lessons from which the next Management Plan formulation and implementation could improve upon. Some of the more poignant

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ones are discussed below. In particular, the CPPAP experience highlighted the need to put in place some mechanisms by which the initial gains made in the attempt to operationalize the Management Plan could have been sustained.

(i) Institutional Capability

The PASu/PIU Office and the project coordinators did not have adequate personnel with sufficient technical capability to implement the Plan. It was highly dependent on CPPAP project funds and the expertise of consultants and NGOs commissioned by the project.

Thus, after the decommissioning of CPPAP in 2001, the sustaining financial resources, human resources, and equipment necessary to implement the Plan were lacking in the PASu/PIU. Field and office equipment (e.g., patrol boats, computers and vehicles) soon needed major repairs. Worse, most of the PASu/PIU technical personnel and staff were either terminated or assigned to other offices.

There is inadequate human resource support and technical capability for data management. After CPPAP decommissioning, some of the valuable data on AMWS were lost due to the fast turn-over of personnel assigned to the PASu.

(ii) Unsustainable Livelihood Projects

The Management Plan called for establishment of tree plantation corridors, supposedly for sustainable community-based forestry side by side with a support program to transfer the timber processing technology.

The designated tree plantation corridor conflicts with some strict protection areas and it may be just as well that the only attempt made at community-based forest management (CBFM) is the establishment of a small lumbia nursery and rehabilitation of a limited area of lumbia forest. This venture, too, failed to sustain itself.

Many of the livelihood projects pursued were either resource extractive (e.g., provision of gill nets and fish processing) or incompatible with the intent to protect the Marsh from further degradation (e.g., provision of farm implements, inputs and floating rice/corn mill). As in most failed livelihood programs, the “dole-out” mentality prevailed and prevented many of the projects from taking off and becoming sustainable. Moreover, inefficiency in running the livelihood program (by the host NGO) resulted in the withholding of project funds by the funding agencies and caused much delay in project implementation.

(iii) Mishandling of Integrated Protected Area Fund (IPAF)

Repayments for soft loans used by POs for livelihood were supposed to revert back as seed money and held in trust under the IPAF to sustain management activities in the PA. This did not happen, though, and by the end of CPPAP, neither funds nor financial records were turned over to the PAMB or PASu.

For lack of adequate understanding and clear guidelines, the eco-tourism program was a flop and failed to generate the income that was expected to provide its own operating funds much less contribute to IPAF coffers.

(iv) Community Empowerment?

That there was a genuine forged partnership with grassroots stakeholders remains doubtful, according to FGD participants who share the following common observations:

1. Inadequate leadership among POs 2. Abuse of resource continues 3. Absence of sustained livelihood/project continuity 4. POs/communities were poorly capacitated to manage their common resource 5. Improper waste disposal 6. Rampant illegal activities

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7. No community participation in protection and conservation

(v) Violation of Management Zone Restrictions

Since management zones were not demarcated on the ground, it proved very difficult to enforce the guidelines and restrictions. Hence, human encroachment and economic activities continued even in areas designated as strict protection zone.

(vi) First Things First

Some of the problems encountered were inherent in the poor timing and procedural lapses committed in the delivery of the CPPAP. For instance, some development interventions (e.g., IEC, livelihood) were already being implemented while the plan formulation was still in progress.

Development interventions should have been introduced later after plan formulation to ensure that projects were compatible with the overall management objectives and strategic framework.

C. Critical Shortcomings/Gaps in the Plan

The FGD revealed that the following are perceived to be among the critical shortcomings and gaps in the present Plan which should be addressed during the next planning stage:

(i) Bottom-up Approach

Since the planning process failed to start with the formulation of local strategic plans, the local agenda failed to be integrated into the mainstream Management Plan.

(ii) Fund Sourcing and Mobilization

Fund sourcing and mobilization was not an inherent component of the present Plan. This would have ensured sustainability of the programs.

(iii) Simplified Zoning Scheme

The designated management zones covered 111,540ha or the entire area within the eight (8) municipalities that comprise the AMWS. This does not coincide with either the actual scope of the protected area or the actual extent of inundation of the wetland.

Moreover, the zoning scheme adopted in the Plan is overly complex with so many zones to manage. The distinction between zones appears to be hazy and tended to be confusing. A simplified scheme of designating management zones would have been more practical, with a minimum classification that will ensure compatibility of zone designation with management objectives.

Similarly, the guidelines were not quite clear-cut and failed to take present realities into account, e.g. strict protection areas already encroached by human activities, etc. Thus, the guidelines may be rather difficult to enforce.

(iv) Data Management

The data base to begin with was insufficient. A thorough resource inventory using international guidelines was not done and therefore there was no complete understanding of the actual state of the Marsh’s ecological health.

The Management Plan thus failed to identify the key and critical areas that really needed managing. Data collection and management was inadequate and did not help facilitate management decision. Regular periodic monitoring was also inadequate and there was hardly any mechanism to assess whether management objectives were being met.

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(v) Integration vis-à-vis Broader River Basin and Local Planning Objectives

The current AMWS Management Plan failed to integrate management concerns vis-à-vis a broader river basin context. For example, water quality is a major issue right across the Basin and the effects of pollutants coming from sources outside of the Marsh (e.g., mining in Diwalwal and agri-chemical run-off from extensive banana plantations and rice-growing areas in the upper catchment) have management implications for the Marsh.

In the same breath, the LGUs and regional planning units have their own legitimate development agenda, the pursuit of which impinges on the Marsh and vice versa. The present Plan failed to consider such geo-political realities and work towards harmonizing the elements of the Plan with local development objectives to ensure sustained implementation, public participation and local ownership. This often got in the way of collaboration towards protecting the Marsh due to the perception that mandates of local Chief Executives were being encroached upon and the principle of decentralization, pursuant to the Local Government Code, was being violated.

1.2.3 Post-AMWS Plan Developments and Planning Implications

A. Proposed Expansion of the PA

The proposed expansion of the PA from 19,000ha to 40,000ha has implications for the next wetland planning exercise as to re-inventorying Marsh resources, redefining the management zones and reformulating the corresponding guidelines.

The expansion would open more doors to wider public access and could increase the rate of in-migration. More seriously, wider coverage will necessitate bigger budgets, human resource requirements, technical expertise and equipment support. These are some aspects that the present PAMB and PASu capability can not guarantee.

It was already pointed out (Section 7.1.2) that there is a problem of fragmentation due to the faulty delineation of the proposed expended scope of the protected area under House Bill 1953.

It must be emphasized at this point that if Management Planning is to be done right, this demarcation must be corrected first by ensuring that the planning unit of the Marsh is technically intact rather than fragmented.

B. ASEAN Peatland Management Initiative (APMI)

The APMI is a regional cooperation among 10 countries including the Philippines to promote and enhance conservation and sustainable use of peatlands in Southeast Asia. The initiative was spearheaded by the Association of Southeast Asian Nations (ASEAN) Ministerial Meeting on Haze4 in June 2002. Owing to the implications for sustaining wetland habitats and their hydro-ecological, bio-diversity and carbon storage functions, the wise use of peat lands is also relevant to and is being supported by the Ramsar Convention on Wetlands, the Convention on Bio-diversity (CBD) and the UN Framework Convention for Climate Change (UNFCCC).

The “Rehabilitation and Sustainable Use of Peat lands in Southeast Asia” is a regional undertaking to support the APMI.5 The Philippines through the DENR-PAWB is one of the participating countries in this endeavor. One of the project’s pilot sites is the Agusan Marsh, which may well hold the largest area of peat land in the country. Two (2) areas of peat land within the Marsh have been confirmed – one in Bunawan and the other in Caimpugan in San Francisco. The latter exhibits the characteristics of a peat dome, the first ever to be described in the Philippines. The Terminalia copelandi/ Metroxylon saguforests in the northwest portion of the Marsh may be the site of another peat land.

4 Regional grouping addressing the issue of forest and peat fires in the region.5 It is jointly funded through PDF-funding by the Global Environment Facility (GEF) with the International Fund for Agriculture Development (IFAD) as the GEF agency, and the ASEAN Secretariat and Global Environmental cemter (GEC) as the executing agencies.

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Among the activities undertaken are local stakeholder consultations and site assessments and a National Action Planning (NAP) Workshop for the Sustainable Use of Philippine Peat Lands. The key activities identified in the NAP are awareness raising, capacity building, inventory/assessment and creating an institutional framework. To this end the PAWB is now forging a partnership with the Philippine-Australian Cooperative Assistance Programme (PACAP), including possible piloting of an eco-tourism project in Caimpugan.

C. Proposed World Heritage Site

Some civil society groups and advocates have been lobbying with the United Nations Educational, Scientific and Cultural Organization (UNESCO) for designation of the Agusan Marsh as a World Heritage Site in recognition of the wealth of socio-cultural and natural endowments that may be considered of outstanding value to all humanity. World Heritage sites belong to all peoples of the world, irrespective of the territory on which they are located, as embodied in an international treaty called the Convention concerning the Protection of the World Cultural and Natural Heritage of 1972.

1.2.4 Need for Updating of AMWS Management Plan

A. Policy/Philosophy

There is an urgent need now to update and amend the management plan for the AMWS. It is timely to do so after five (5) years since its preparation in 2001 and in the in the light of the proposed expansion of the protected area.

The Agusan Marsh is Ramsar-designated wetland. Hence, the management plan should be updated in accordance with international best practice and in accordance with guidelines prescribed under the Ramsar Convention on Wetlands and by its attached agencies such as Wetlands International.

The Parties to the Ramsar Convention in Iran (1971) adopted the philosophy that “wetland ecosystems are an integral component of the global water cycle from which water resources are derived”.6

Consistent with this, the Agusan Marsh Management Plan should be guided by the following Ramsar principles and ensure that the wetland’s resources are:

i. Used sustainably (The Principle of Wise Use) ii. Developed cautiously (The Precautionary Principle) iii. Managed holistically vis-à-vis broader river basin, sectoral and geo-political objectives (The

Principle of Integration) iv. Governed broadly (The Principle of Participation and Consultation)

B. Objectives

The objectives for managing the Marsh should consider the priorities that matter to the most number of stakeholders, yet taking care to ensure that the overall goal is to protect and maintain its intrinsic attributes, ecological character and core values in a manner consistent with the Ramsar Convention’s terms of agreement.

Mindful of this, the Management Plan for the Marsh should include, at the very least, the following crucial objectives:

i. Protection and conservation of critical habitats and biodiversity ii. Restoration of critically threatened or degraded areasiii. Maintenance, if not enhancement, of the ecological character and core values (food web,

climate regulation, etc.) of the wetland iv. Maintenance, if not enhancement of the hydraulic function (flood attenuation and sediment

retention, carbon storage, food web, etc.) of the wetland, i.e., making sure that adequate water of the right quality at the right time and in the right place is available to support its life-sustaining functions;

v. Protection and conservation of cultural heritage; and

6 The Ramsar Convention Manual, 3rd edition, April 2004. http://www.ramsar.org

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vi. Sustenance of economic goods, services and livelihood

C. Core Data Collection and Updating

The AMWS Management Plan should be formulated based on adequate characterization of the wetland complex as to its physico-chemical, biological and socio-economic environment as well as the identification of the factors that critically influence the changes in its ecological character. This would entail collection and synthesis of relevant updated data and information that will be useful for setting priorities and establishing management objectives.

For Ramsar-registered sites, there are internationally recognized guidelines for data collection and management. The Manual for Inventory of Asian Wetlands7 would be a useful guide for inventorying Agusan Marsh, according to international best practice.

The use of time series data from radar and satellite imageries would be a more efficient way to generate appropriate baseline information such as changes in flood extent, vegetation status and land cover over time.

A hydrologic model of the wetland that could predict flood behavior as well as sediment and pollution transport would also be useful in determining the water requirements (as to both quantity and quality) for maintaining ecological integrity as well as enhancing the wetlands hydrologic and sediment retention functions.

All data should be properly stored in a GIS facility to serve as a MIS. This knowledge base will facilitate retrieval and feedback into monitoring and decision-making to ensure that management objectives are being met, and that development interventions do not impinge on the ability of the wetlands to support life.

D. Zoning System

(i) Zone Re-classification

A new zoning scheme will be necessary, especially in the light of the proposed expansion of the PA.

The designation of management zones should be in accordance with international best practice. The Ramsar database on the web has provided adequate examples. Classification of the zones need not be cumbersome; it should be as simple and practical as possible without compromising objectivity, given present technical and funding limitations.

The criteria for designating the zones should be appropriate as to size, bio-diversity, naturalness, rarity, fragility, typicality and potential for restoration or improvement.

In like manner, the guidelines and restrictions should be as clear-cut as possible for the purpose of achieving the avowed objectives of the Management Plan. Most of all the boundaries of management zones should be concretely delineated and ground-truthed through proper field surveys.

(ii) Management of Critical Zones

It may be necessary to prepare a separate Management Plan for each critical zone in the wetland. The peat land(s) are a case in point.

Peat lands are wetland ecosystems that are characterized by the accumulation of organic matter called “peat” which derives from decaying plant materials under highly saturated reducing environment. Peat lands are of special interest because of the unique hydro-ecological values attached to them in local and global terms.

7 Finlayson C.M., Begg G. W., Howes J., Tagi K., and Lowry J. A. Manual for an Inventory of Asian Wetlands:VVersion 1.0, Wetlands International Global Series 10. Kuala Lumpur, Malaysia. http://www.wetlands.org/awi/default.htm

Annex 2J-17/28


Final Report

Peat lands are the single largest terrestrial carbon sink, storing more carbon than all the vegetation of the whole world and 75% of the carbon sequestered from the atmosphere. Therefore they play a very significant role in regulating global greenhouse gas emissions and climate change.

Peat lands also have naturally high water holding capacity that helps regulate stream flows and hydro-geologic regimes and therefore significantly influences the global water cycle besides effectively attenuating downstream flooding. Owing to their ecological character, peat lands are a refuge of some of the rarest and most unique species of flora and fauna that contribute significantly to the earth’s genetic pool.

Initial assessment indicate that of the two confirmed peat land deposits in Agusan Marsh, the Caimpugan peat dome may be the only one of its kind left in the Philippines. Its forest cover is still relatively intact and would definitely need preserving at all cost. On the other hand, the vegetation of the peat land in Bunawan has been cleared and burned for rice production but later abandoned when it proved unproductive.

The areas occupied by the Bunawan peatland is now classified as A and D, hence it may be difficult to manage it later for purposes of restoration. However, the Caimpugan peat dome is within an area classified under the present AMWS Plan as “strict protection zone”.

Still, the possibility of these areas being utilized later as expansion areas for agricultural (palm oil) plantations and industrial forestry (falcata, acacia mangium and other commercial tree species) cannot be discounted. Even the Terminalia and sagu forests which may be potential peat land sites are now encroached upon by human activities, having been generally considered as A&D lands.

There is now an urgent need to draw up appropriate guidelines and special management arrangements and establish demarcation points on the ground. Unless this is done soon, this significant expanse of peat forest may go the way of degraded peat lands in Indonesia, Malaysia and Brunei, which are proving to be very difficult and costly to restore.

The IFAD-GEC funded initiative in the pilot study of the peat lands of Agusan Marsh is a good place to start. The PAWB and the PAMB/PASu should move in parallel direction and find complementation in this undertaking and in the activities that should lead to the eventual updating of the AMWS Management Plan.

Ideally, pre-planning works should begin with the correction of the proposed scope of the expansion of the protected area in order to preclude further fragmentation, as reiterated earlier. The resource inventory using Ramsar-prescribed guidelines could be done side by side with the planned peat land assessment. Further partnerships could be forged with other government agencies and civil society groups to strengthen database build-up and awareness raising that will pave the way for meaningful participatory planning for both initiatives.

E. Institutional Framework

(i) Appropriate Management Structure

The Draft AMWS Law (House Bill 1853) proposes to reconstitute the PAMB by including the Provincial Governor as Co-Chairman and all Municipal Mayors as members representing the LGUs that comprise the expanded AMWS jurisdiction.

The bloated membership of PAMB will be downsized by having only one (1) barangay captain and one (1) tribal leader per municipality, to be selected from among barangays and tribal communities of the component LGU, respectively. NGO and civil society participation will also be limited to a maximum of six (6) representatives.

This proposed PAMB composition is a response to the clamor to rationalize and strengthen the present management structure by accommodating representation by key legitimate stakeholders. This, hopefully, will ensure integration of local initiatives in harmony with PA-wide objectives, engender wider ownership of the Plan and encourage sharing and optimization of resources and technical expertise

Annex 2J-18/28


Final Report

towards long-term sustainability. This will also eliminate the duplication and overlapping of functions as well as the protracted manner of implementing interventions in the wetland.

The reconstituted PAMB should work closely with the proposed Agusan River Basin Organization (i.e., ARBA) to address integration concerns vis-à-vis wider basin-wide objectives such as water quality and watershed management.

(ii) Community Participation

A key element in sound wetland management is the involvement not only of the resource planners but also of the community stakeholders who comprise the resource users. For this process to be meaningful there is a need to build public awareness of the value of ecosystem services and how the ecosystem health is influenced by the community’s day to day activities that impact the resource.

The decision-making process needs to be defined that establishes the desired ecological character of the wetland. In this way, policies, legislation, and decisions that support the allocation and use of wetlands resources will be better understood and more readily accepted.

Consensus building will be enhanced by encouraging grassroots stakeholder participation throughout the management cycle, from data collection to planning implementation and monitoring. There roles and responsibilities of each stakeholder group should be clearly agreed upon at the outset. This will reinforce ownership of responsibility over the ecological state of common resources and sustain interest in tracking the progress towards achieving the shared aspiration to conserve the goods and services that these resources provide.

1.3 PROPOSED INTERVENTIONS

1.3.1 Priority Interventions

A. Criteria for Prioritization

The interventions described below were identified during the FGD in February 2006 and reiterated during the basin-wide public consultation in June 2006 to address the most crucial management issues and ecological threats concerning the wetland.

The most urgent task is the formulation of AMWS Management Plan, which should be implemented over the next five (5) years from 2007-2011. The next priority interventions matter to the most number of wetland stakeholders and include basic water-related projects that are linked to the basin-wide development programs being proposed under the Master Plan. The public access project is a long-term option that may be pursued up to year 2020.

Table 2J-1 summarizes the proposed interventions for managing AMWS, including the institutional and regulatory framework, state of present data and data needs and the strategic measures required in implementing them.8

8 This matrix is first presented as one of the Goal Matrices under RBO Formation and Development (Appendix C of this Volume IV).

Annex 2J-19/28

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Ann

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J-20

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Final Report

The twelve criteria listed below guided the selection of the above-listed interventions in their order of priority:

i. Priorities that mattered to the most number of stakeholders based on various public consultations, especially Needs Assessment in October 2005, the Focus-Group Discussion (FGD) of February 2006 and the Public Consultation of June 2006.

ii. Compatibility with the country’s commitment to Ramsar Convention principles aimed at conserving and protecting the inherent ecological character and values of the Marsh

iii. Effectiveness of intervention in addressing issues and threats to the ecological integrity of the Marsh

iv. Potential to enhance the ecological values and hydrologic function of the Marsh v. Potential to enhance social and economic conditions by providing sustainable livelihood to

wetland communities and improving their access to basic goods and services vi. Technical and economic feasibility vii. Potential to resolve tenurial and common resource use conflicts viii. Potential to preserve cultural heritage and achieve cultural integration in harmony with the

natural attributes of the Marsh ix. Social acceptability x. Integration and harmony with broader basin-wide objectives xi. Potential to strengthen institutional capability to manage Agusan Marsh xii. Potential to improve knowledge base for informed decision-making and effective management

of the Marsh

B. Nature of Interventions

It is high time to formulate a new AMWS Management Plan; the existing management plan expired early this year. This project is especially crucial in the light of the proposed expansion of the protected area.

However, care must be taken to ensure that the Management Plan will cover the entire wetland complex instead of only the currently proposed 40,000-ha expanded area of the AMWS. Based on recent satellite images, this involves some 56,000ha, more or less, corresponding to the inundated area that, technically speaking, represents the actual extent of the wetland.

The PAMB/PASu will spearhead the actual plan formulation. This should be done through a series of consultative planning workshops to be attended by legitimate stakeholders consisting of the whole range of planners and resource users, especially the Marsh communities.

The AMWS Management Plan will be a self-standing plan but will take into consideration local, regional and basin-wide development agenda wherever integration is called for and where these support the overall goal of protecting the ecological integrity of the Marsh. It will be a rolling plan and will be reviewed every five (5) years.

The formulation and initial implementation of the Management Plan during the first 5-year planning cycle is best undertaken through a Technical Assistance (TA) funded by foreign funding institution(s). This TA will at the same time pave the way for strengthening of the technical and institutional capability of the planning and implementing agencies, namely the PAMB, PASu, DENR and the concerned LGUs including the grassroots communities who should be actively involved in managing the Marsh, as explained below.

The following strategies and/or activities will be an inherent part of the Plan formulation and implementation.

(i) Capability Building

The reconstitution of the PAMB as proposed in the Draft AMWS Bill is a move in the right direction to improve capacity and streamline institutional arrangements to manage the Marsh. This, however, will require the investment of sizeable financial and human capital. The national government should be prepared to earmark funds to hire and train capable technical and support staff to man the PASu Office.

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Final Report

Agreements on institutional roles should be reached by consensus within the context of PAMB as reconstituted, to avoid duplication of functions. As proven by the experience in other NIPAS areas, workable arrangements should be explored which would allow greater involvement in planning and management by local chief executives of concerned LGUS to ensure the integration of wetland objectives into local development agenda and vice versa. Shared responsibility should also include mechanisms to sustain management efforts through pooling of human, financial and technical resources.

The capability of these offices and those of other concerned agencies including DENR-PWB/PAWD, LGUs, POs and the grassroots communities need to be strengthened in the areas of:

i. Basics of management of Ramsar-designated wetlands; ii. Wetland resource inventory; iii. MIS and hydrologic modeling; iv. Communications, education, and public awareness (CEPA) v. Monitoring; and vi. Management of public access program

These will be accomplished through basic technology transfer and hands-on trainings in these aspects of management planning and implementation by way of a grant-funded TA and/or as part of the job contracts, as will discussed later.

The training on MIS and hydrologic modeling will be provided under the RBO Program on capacity building in Databanking and GIS-Based Decision Support System.

The AMWS Management Plan will be formulated through a series of stakeholder consultative workshops, which are meant to promote local participation and ownership of the Plan.

(ii) Resource Inventory and Assessment

The first step in plan formulation is updating the existing data and information on the ecological character of the Marsh to a level-- i.e., according to core or minimum data sets-- required by international standards for Ramsar–registered sites. This will necessitate conducting a basic resource inventory and assessment using the “Manual for the Inventory of Asian Wetlands” recently drawn up by the Wetlands International (WI), now readily downloadable from the web.

Resource inventory will be greatly aided and facilitated by the use of remotely sensed data, hence it is recommended to procure radar and land satellite images.

It would be advantageous to dovetail with this resource inventory the proposed resource assessment of the Caimpugan Peat Dome under the ASEAN Peat Land Management Initiative. This will be done in coordination with the DENR-PAWB and the partner agencies under this initiative.

At the same time, a socio-economic survey among the inhabitants of the Marsh is proposed to be undertaken in parallel with the resource inventory. An NGO or a local university may be commissioned to undertake the socio-economic survey.

(iii) Zone Re-classification and Ground Demarcation

With the results of the inventory, a simplified zoning scheme should be drawn up based on appropriate classification criteria along with corresponding management guidelines and restrictions for each zone. Demarcation of the zone boundaries on the ground should immediately follow. Survey and zone boundary demarcation may be contracted out to a local surveying firm.

Some critical areas such as the Caimpugan peat dome may require further delineation to establish actual limits and ascertain appropriateness of zone designation.

Annex 2J-22/28


Final Report

(iv) Management Information System (MIS) and Hydrologic Modeling

The first planning cycle will be crucial to the proper collection of essential data, especially on hydrology and water quality of the Marsh. A minimum of 5-year regular data collection program will be necessary to establish rainfall pattern, flow conditions and changes in critical water quality parameters. This will pave the way for the eventual construction of a Hydrologic Model for the wetland using GIS facility, with the help of remotely sensed data from available, time series satellite and radar images and aerial photographs.

A Hydrologic Model will help provide better understanding of the hydro-ecological character of the wetland and would greatly facilitate decision-making. The model should be able to simulate flood events, sediment transport and pollution load-- particularly of Hg and other heavy metals in both water and sediments-- with changing flow conditions over time. Hydrologic modeling will naturally require highly skilled personnel, financial resources and appropriate equipment.

Over the long term, the model should be able to predict and alert management to any alteration in the hydrologic regime that may potentially compromise the ecological functions of the wetland.

As more information becomes available over time, the initial database could be built up towards eventual establishment of the wetland’s MIS.

The databanking and hydrologic modeling will be undertaken as part of the centralized management function of the River Basin Organization.

(v) Communication, Education and Public Awareness (CEPA) Plan

An enhanced program to improve awareness and encourage exchange of information with and among Marshland communities will be necessary if they are to meaningfully participate in the planning process. This program, initially, could build and improve upon the existing IEC activities that began under the CPPAP.

Eventually this program should evolve into a continuing and long-term CEPA Plan crafted according to Ramsar guidelines, to be targeted at different actors and resource users in the wetland.

The initial CEPA Plan implementation will include advocacy activities, the primary purpose of which is to lobby for the:

i. Inclusion of the protection of AMWS in public school curriculum; and, ii. Adoption of the AMWS Management Plan as a legal document, probably through a provincial

ordinance (to be elaborated below)

To this end, partnerships may be forged with other line agencies, civic groups, business sector, the academe and the grassroots community. The CEPA Plan formulation and initial implementation could be contracted out to a local consulting firm, university or NGO.

(vi) Monitoring

A continuing periodic monitoring program that is consistent with Ramsar guidelines should be put in place. Results should immediately feed back into the MIS to track changes in the ecological character of the wetland and assess whether management objectives are being met.

Again, a local university, research firm or NGO may be commissioned to formulate and initially implement the monitoring plan.

(vii) Legislative/Legal Requirements

A legal imprimatur will be necessary so that the Management Plan could be effectively implemented and its accompanying guidelines and restrictions fully enforced. The Plan should be adopted as a legal document, possibly by virtue of a local legislation (say, a provincial ordinance) or through other appropriate legal channels, with the full support of local chief executives.

Annex 2J-23/28


Final Report

(viii) Management Plan for Caimpugan Peat Dome

Based on the resource inventory, a separate management plan for the peat areas, notably the Caimpugan Peat Dome, will be prepared as a sub-set of the AMWS Management Plan. This will be necessary to emphasize the critical protection status of the pea land. This will be done in coordination with the on-going APMI-supported peatland management program of PAWB but will not be funded under this project.

C. Projects Linked to Basin-Wide Priority Programs 9

Some of the most urgent interventions in the Marsh are best undertaken in the context of integrated basin-wide priority agenda within the next 15 years. These include the following programs.

(i) RBO Development

As already mentioned, the data collected during the initial AMWS planning cycle will be stored in a centralized GIS-based data banking system. Along with the 5-year hydrologic and water quality data, these will be used eventually for constructing a hydrologic model of the wetland.

The MIS for the wetland is inevitably linked to establishment of a Data-Banking and GIS-Based Decision Support System and hydrologic modeling project under the RBO Formation and Development Program.

(ii) Water Resources Development

The provision of adequate potable water supply and sanitation facilities is top priority to Marsh inhabitants, who are forced to rely on Agusan River for both domestic necessities. However, the availability and potability of drinking water supply from underground or other alternative sources have not been adequately studied. The same is true with innovative solutions to address sanitation-related health problems.

A water supply and sanitation (WATSAN) program for the wetland has been drawn up, which should be implemented alongside a Health Education program targeted especially at IPs, women and children, who are more vulnerable. This initiative is undertaken under the Water Resources Development Program of this Master Plan.

(iii) Water Quality Management

The water quality management framework has been drawn up separately, with specific priority elements within it that are particularly relevant to the Marsh. This includes the management of pollution from industries (especially Hg from mining), agriculture, aquaculture and domestic waste.

Other priority interventions in the wetland such as hydrologic modeling, water supply and sanitation, management of riverbank erosion and sedimentation are an integral part of the basin-wide program for managing water quality.

(iv) Watershed Management

To manage river bank erosion and sedimentation in the Marsh a separate program has been drawn up under the Watershed Management Program for the integrated basin-wide management of forest and land resources. The program specifies appropriate re-vegetation measures and land management prescriptions to reduce run-off velocity and address river bank degradation.

In support of this, livelihood development projects for the wetland are being proposed as part of the Watershed Management Program. These should help ease the pressure on dwindling forest and riparian resources and thereby avert further degradation and fragmentation of the Marsh’s ecosystems.

9 Programs referred to here are in the accompanying thematic reports to this Volume IV.

Annex 2J-24/28


Final Report

Livelihood options are needed which would not compromise the ability of the wetland to supply the economic goods and ecological services that have sustained the life of its inhabitants for generations.

Regulation of economic activities according to a zoning plan will be an intrinsic part of wetland management, as proposed in the preceding discussions. However, a suitable livelihood program should be pursued over the long term, one that respects the cycle of resource production and renewal in the Marsh and is compatible with the conservative patterns of resource use long held by wetland dwellers.

At the same time, a fitting review of all conflicting tenurial instruments issued within the wetland will be an important agenda under the Watershed Management Program with a view to resolve tenurial conflicts through consensus building. This might take a while to accomplish but may yet prove to be the single most important step towards averting over-exploitation of threatened resources in the Marsh. It will also help harmonize the various interventions to make them compatible with the management prescriptions laid out in the AMWS Management Plan.

(v) IP Development

More than 60% of the Marsh’s inhabitants are IPs. IP communities and their social norms, cultural traditions and resource use patterns comprise the wealth of the wetland’s natural heritage that needs to be respected and protected.

Programs are already on-going to assist the IP communities in the Marsh in the preparation of ancestral domain management plans and processing of CADTs. A basin-wide program for the development of IPs has been drawn up in this Master Plan, from which Agusanon-Manobos of the Marsh would greatly benefit. The program includes priority projects that relate to tenurial security, indigenous knowledge, systems and beliefs, education and customary law codification, among others.

(vi) Fisheries Resources Management

Fishery resources in the wetland have dwindled to critical levels. A recent fisheries assessment in the Marsh confirmed the proliferation of invasive species such as the janitor fish in the wetland, which is another cause for alarm. The trend needs to be reversed by drawing up a holistic program for fisheries resources management under the auspices of BFAR in partnership with the LGUs. This may be undertaken as an extension of on-going and proposed coastal and freshwater fisheries management programs of these agencies.

A possible take off point is an in-depth fisheries resource and habitat inventory and assessment, including a benchmark study to determine levels of potential contaminants such as Hg and other heavy metals, agri-chemical residues and coliform, which may be significantly contributing to fisheries decline.

Other strategies could lend support to fisheries development such as the establishment of fish sanctuaries for important species (e.g., migratory and commercial)as well as the development of fish processing industries, where feasible. The pursuit of aqua-culture should be considered only where this does not conflict with ecological objectives for the Marsh.

D. Regulated Public Access Project

The Agusan Marsh could also serve as a major tourist destination and should thus be promoted together with other tourist attractions within the Agusan River Basin.

The proposed regulated public access project would take the place of the eco-tourism development program under the previous AMWS Plan. It has to be limited in scope. Initially and until security risks are decisively addressed, it would cater only to local visitors from near and far who wish to conduct educational field trips, guided tours and family week-end trips to the Agusan Marsh. Visits would be limited to day tours or, at best, an overnight stay (if host families could be organized). Most especially, off-limits will be observed in strict protection zones such as the peat lands and during critical breeding seasons.

As an innovative tourism come-on, an audio-visual center-cum-amphitheater and a floating museum will be constructed. These will provide another avenue for raising public awareness and appreciation for

Annex 2J-25/28


Final Report

wetland conservation among non-residents by showcasing audio-visual presentations, exhibits, and cultural shows among others.

Regulated tourism for locals has a high potential to generate self-sustaining revenues to fund the management activities of the protected area, provided that the carrying capacity of the Marsh is respected. Moreover, controlled operation of small floating hotels or boathouses might be a novel way to generate income at the household or community level.

1.3.2 Program Implementation

A. Implementation Schedule

(i) AMWS Management Plan Formulation and Implementation Project

Table 2J-2 shows the proposed timetable for formulating and implementing the AMWS Management Plan over the first 5-year planning cycle. Hopefully, this could start in early 2007 as the previous plan has already expired this year.

Table 2J-2

Schedule of Formulation and Implementation of the AMWS Management Plan

ARB Master Plan

Activities 01 02 03 04 05 06 07-12

1. Engagement of consultants x x x x x x x2. Training on basic management of

Ramsar –designated wetlands x

3. Training on resource inventory x4. Resource inventory x x x x x x5. Training on socio-economic survey x6. Socio-economic survey x x x7. Training on zoning and zone

managementx

8. Ground survey and zone demarcation including preparation of Caimpugan Management Plan

x x x x x x

9. Training on CEPA x10. Preparation of CEPA Plan x x x x x x11. Training on Monitoring x12. Preparation of Monitoring Plan x x x x13. Formulation of AMWS Management

Plan (through consultative workshops)

x x x x x x x

14. Initial implementation of Management Plan including CEPA x

(ii) Regulated Public Access Project

The proposed regulated public access project is envisioned to be implemented over a 10-year period after the initial AMWS management planning cycle starting year 2011, when some progress has been achieved in protecting the Marsh. It will be undertaken by the PAMB through PASu and LGUs in coordination with the RBO and linked to other tourism projects of DOT. It could eventually evolve into a full-scale eco-tourism project after 2020. The proposed timetable of implementation is shown in Table

2J-3.

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Final Report

Table 2J-3

Implementation Schedule of the Regulated Project Access Project

AMWS Management Program, ARB Master Plan

Activities 11 12 13-20

1. Audio-visual center//mini-theater (construction, furnishings and audio-visual equipment)

x

2. Floating museum (construction, furnishings and display room materials)

x

3. Public Access Project Implementation x x4. Operation and maintenance x x

Other priority interventions in the Marsh will be implemented in the context of basin-wide programs and are dealt with in the respective reports of other consultants.

B. Resource Requirements

AMWS Management Plan reformulation and implementation in accordance with Ramsar guidelines will require adequate human resources with technical capability and equipment support.

These are not available at present. Thus, a grant-funded technical assistance will be crucial during the first year of the first 5-year planning cycle to build the PAMB, PASU, DENR and communities’ capability to manage the Marsh.

The TA will provide the following pool of experts: (1) Wetland Specialist, (1) Environmental Specialist, (2) two Flora Specialists, (2) Fauna/Wildlife Specialists, (2) Fisheries Specialists and (1) Remote Sensing-cum-GIS Specialist. The experts will provide the direction as well as the hands-on training for resource managers and users during various stages of plan formulation and initial implementation.

The local job contractors who will be commissioned for socio-economic survey, zoning, CEPA and monitoring will provide complementary expertise. Counterpart technical, field and administrative support personnel will be shared between DENR and the LGUs.

Field vehicles, equipment and camping paraphernalia will be necessary during the resource inventory and monitoring activities. Two (2) speedboats will be procured under the TA to facilitate mobility in the Marsh. A complete list of field equipment include spotting scopes, binoculars, GPS units, wildlife voice-corder, camcorder, camping paraphernalia and sampling gadgets.

Office computers, printers and supplies will be used in all stages of the Plan preparation, but especially during processing of resource inventory results.

Wetland inventory and assessment, zone delineation, monitoring and hydrologic modeling will be more efficient and cost-effective if GIS-based map analyses will be employed using remotely sensed data alongside topographic maps as well as ground surveys.

Technical experts will be commissioned. A highly skilled remote sensing-cum-GIS specialist will need to be commissioned under the TA, since such expertise is not currently available. Staff trainings on the proper conduct of inventory and the use of basic GIS and remote sensing technology will be necessary to build the PASU’s capability for the work.

Radar and satellite images will be acquired as they are not presently available or accessible; although this would require substantial capital investment (i.e., for SPOT and ETM satellite images, and radar images). Both the DENR and the Province of Agusan del Sur have a GIS system that is already functional. Initially, this may prove useful for purposes of inventory.

Eventually, establishing a centralized Management Information System for a sustained data collection and monitoring program in the basin (including the wetland) may necessitate acquiring new GIS equipment and data processing sets). This is being proposed under the Data-banking and Decision Support System under the River Basin Organization Formation and Development Program.

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Final Report

C. Funding Requirements

It is preferable to source out grants rather than secure loans from international funding institutions for a 1-year TA during the formulation and initial implementation of the AMWS Management Plan. The TA will commission Wetland experts and other field consultants to transfer technology and provide technical guidance in resource inventory, zoning and zone management, CEPA, hydrologic modeling, monitoring, etc. It will also cover for the acquisition of GIS facility and image processors, field equipment (speed boat, etc.), radar and satellite images and maps, as necessary. It may be necessary to source out additional funding and expert assistance through partnerships with other international donors, government agencies, NGOs, business groups and the academe.

A capsule proposal has been prepared, which may be useful for sourcing out grants for funding the proposed priority projects in the Marsh. One potential donor is the Spanish Government-funded AECI initiative, which has a keen interest in funding possible projects in the Agusan River Basin, the Agusan Marsh in particular.

The NIPAS Law allows PAMB to receive donations and endowments from other sources. Other potential sources of revenue are user fees, permits for resource use/extraction, eco-tourism/visitor program, polluter’s fines and charges for zoning violations and the like, the mechanisms of which shall be defined in the Plan. These will accrue to the trust fund of IPAF to support other activities of the PAMB/PASu.

The national and local government should be prepared to earmark adequate funds to defray the administrative/operational costs that will be entailed by manpower and logistics requirements of the plan formulation and implementation, especially after the TA’s decommissioning.

D. Estimated Project Cost

The estimated projects costs for the two (2) priority projects on AMWS Management Plan Formulation and Implementation and Regulated Public Access are presented in detail in Volume IIIB (Chapter 7.0 Development Programs and Projects) and its Appendix B (Detailed Project Profiles).

E. Institutional Arrangements

The NIPAS Act has laid down the basic institutional framework for managing the AMWS through a multi-stakeholder body, namely the PAMB. The present bloated membership of the PAMB, besides proving to be dysfunctional and inefficient, lacks genuine representation by local executives and decision-makers in the community. The latter is also the reason why the Agusan Marsh Alliance came into being and practically duplicated its functions. This, hopefully, will be corrected once the proposed AMWS Law is passed, which also fully defines the mandates of the policy-making body.

The PASu will also be strengthened with the passage of the AMWS Law by giving it more teeth and police powers to prepare and implement the Management Plan. It shall be provided with adequate technical and administrative support personnel to do the legwork. Once the reconstituted PAMB and PASu are in place, the next round of AMWS management planning and implementation can proceed very well in close coordination with the River Basin Organization (RBO).

Once the Agusan RBO is in place, complementation could be optimized where integration of wetland objectives with Basin-wide plans will be necessary, as already pointed out. Specifically, data collection, storage and retrieval should be a centralized function of the RBO once the Databanking and GIS-based Decision Support System has been set up. Hydrologic modeling will be undertaken within the context of the RBO in coordination with the PAMB and PASu.

The Management Plan should be broken down into specific time-bounded action plans later on. It may be helpful to create cross-sectoral/inter-agency task committees or working groups to implement such action plans. For example, the wetland and peat land resource assessments can be dovetailed with each other but this will require forging stronger collaboration between PAWB, PAMB/PASu, the Agusan Marsh Alliance and civil society groups now operating in the area while an appropriate and capable institutional arrangement is still being worked out.

Annex 2J-28/28

SOCIO-ECONOMIC CONDITION

Master Pan for the Agusan River Basin Project Final Report

3.0 SOCIO-ECONOMIC CONDITION

3.1 Economic Setting

Similar to physical and environmental settings, the economic setting is essential primarily in providing a baseline portrayal of the economic health of the city/provinces comprising the ARB particular their economic performance and contribution to regional economies as a whole. In this manner, one could assess the individual strength of concerned local economies as well as weakness that provide economic justification for development potentials realizable under IRBM for the ARB. As far as IRBM is concerned particularly its concerns regarding resource competition and economic pricing, this section also delves on two (2) critical issues with vital economic implications; namely, water pricing and funding for the proposed apex RB organization body. Conclusions and recommendations for future development strategies related to these economic issues are forwarded at the end of the discussion.

3.1.1 Economic Profile

(i) Gross Regional Domestic Product

To provide an economic perspective of the ARB, an assessment is made of the GRDP of Region XI-Davao Region, and Region XIII-Caraga Region.1 GRDP is the regional breakdown of the Philippine’s Gross Domestic Product (GDP), which is the aggregation of gross value added contributions of the country’s domestic industries. There is no disaggregated estimate at the provincial level.

(a) Comparative GRDPs

Davao Region registered a 2005 GRDP of PhP55.8 billion at 1985 constant prices, slightly lower than the GRDP generated by Northern Mindanao (PhP58.1 billion), which was the highest in the whole of Mindanao (Figure 3-1). Davao Region was the 7th highest in GRDP among the regions in the Philippines including the National Capital Region (NCR).

Fig IIIA-2.2.3-1: 2005 Gross Regional Domestic Product

0

20

40

60

80

100

120

140

160

CAR: Cor

diller

a

I. Iloc

os

II. C

agay

anVall

ey

III. C

entra

l Luz

on

IVA. C

ALABARZON

IVB. M

IMAROPA

V. Bico

l

VI. Wes

tern

Visa

yas

VII. C

entra

l Visa

yas

VIII. E

aster

nVisa

yas

IX. Z

ambo

anga

Penins

ula

X. Nor

ther

n Mind

anao

XI.Dav

ao R

egion

XII. S

OCCSKSARGEN

ARMM: M

uslim

Mind

anao

XIII. C

arag

a

In B

illi

on

Pe

so

s a

t 1

98

5 P

ric

es

Note: NCR: Metro Manila GRDP was PhP386 billion.Source: National Statistical Coordination Board, Gross Regional Domestic Product, Base Year: 1985, 2003-2005.

Figure 3-1 2005 Gross Regional Domestic Product

1 Davao Region is composed of the provinces of Davao del Norte, Davao Oriental, Davao del Sur and Compostela Valley. Caraga Region is composed of Agusan del Norte, Agusan del Sur, Surigao del Norte and Surigao del Sur. This Master Plan Project concentrates mainly on the ARB in the provinces of Compostela Valley, Agusan del Norte and Agusan del Sur.

3-1


In comparison, the Caraga Region notched a 2005 GRDP of PhP15.5 billion at 1985 constant prices. Caraga Region recorded the second lowest GRDP, higher only to the Autonomous Regional of Muslim Mindanao (ARMM), which produced a 2005 GRDP of PhP10.9 billion.

(b) Comparative Per Capita GRDP

The 2005 Philippine average per capita GRDP was PhP14,186 at constant 1985 prices (Figure 3-

2). Davao Region registered the 5th highest in the Philippines after the NCR, Cordillera Administrative Region (CAR), Northern Mindanao, and CALABARZON. Its 2005 per capita GRDP registered PhP13,892 at constant 1985 prices.

Fig IIIA-2.2.3-2: 2005 per Capita GRDP

0

2

4

6

8

10

12

14

16

18

20

Figure 3-2 2005 per capita GRDP

Meanwhile, the 2005 per capita GRDP of PhP6,690 of the Caraga Region, at constant 1985 prices, is only less than half of the national average per capita GRDP. This is the fourth lowest per capita GRDP in the country, higher only to Eastern Visayas (PhP6,678), the Bicol Region (PhP6,632) and the ARMM (PhP3,433).

(c) GRDP by Industry

1. Caraga Region

The Agriculture, Fishery and Forestry (AFF) sector accounted for 38.9% of the 2005 GRDP of the Caraga Region at constant 1985 prices (Table 3-1). Industry accounted for 24% of its 2005 GRDP while Services made up for 37.1%. The Trade sub-industry was the major contributor to output from the Services sector.

GRDP at constant 1985 prices grew at an average annual rate of 3.3% from 2003 to 2005. Per capita 2005 GRDP was PhP6,691 at 1985 prices and PhP28,194 at current prices. Meanwhile, real per capita GRDP grew at the rate of 1.3% average per annum from 2003 to 2005. To promote real development among the people, per capita GRDP has to grow at a much faster rate.

3-2


2003 2004 2005

I. AGRI., FISHERY & FORESTRY 5,650 5,845 6,037 38.9% 3.4%

a. Agriculture & Fishery 5,178 5,267 5,405 34.9% 2.2%

b. Forestry 471 578 632 4.1% 15.8%

II. INDUSTRY 3,602 3,635 3,718 24.0% 1.6%

a, Mining & Quarrying 435 441 426 2.7% -1.0%

b. Manufacturing 1,478 1,480 1,518 9.8% 1.3%

c. Construction 1,215 1,227 1,200 7.7% -0.6%

d. Electricity 474 488 573 3.7% 10.0%

III. SERVICES 5,287 5,503 5,753 37.1% 4.3%

a. Transport, Comm. & Storage 332 361 372 2.4% 5.9%

b. Trade 2,777 2,907 3,075 19.8% 5.2%

c. Finance 108 115 124 0.8% 7.0%

d. O. Dwellings & Real Estate 630 658 690 4.4% 4.6%

e. Private Services 385 408 426 2.7% 5.1%

f. Government Services 1,055 1,054 1,067 6.9% 0.6%

Gross Regional Domestic Product (GRDP) 14,539 14,984 15,509 100.0% 3.3%

Thousand Population of Caraga Region 2,231 2,274 2,318 ----- 1.9%

GRDP Pesos Per Capita 6,517 6,589 6,691 ----- 1.3%

AAGR -annual average growth rate

Source of Basic Data: National Statistical Coordination Board, Gross Regional Domestic Product,

Base Year: 1985, 2003-2005

(in million pesos at constant 1985 prices)

Table 3-1: Gross Value Added by Industry, Caraga Region

IndustryAAGR

03-05

2005

% Share

AFF manifested an average growth of 3.4% per year during 2003 to 2005 as the sector began to benefit from the Irrigation Component of the Lower Agusan Development Project. The Industry sector grew at a low average rate of 1.6% per year due to the negative growths in Mining and Quarrying and Construction, and the low growth in Manufacturing. The Services sector grew at an annual average rate of 4.3% as a result of favorable increases in Finance (7.0% real growth from 2003 to 2005), Transport, Communications and Storage (5.9% average per year), and in Trade (5.2% average per year).

2. Davao Region

The principal growth sector of Davao Region is Services (Table 3-2). In 2005, the Services sector contributed 40.7% of total GRDP at constant 1985 prices. Industry, on the other hand, provided 32.0% while AFF accounted for 27.3%.

Palay and corn, and major plantation crops such as banana, pineapple, mango and coconut, account mainly for the GVA of the AFF sector. Agro-based manufacturing accounted for 18.8% of total 2005 GRDP at constant 1985 prices. Trade, on the other hand, accounted for more than half of the GVA for Services.

The GRDP of Davao Region at 1985 constant prices grew at an annual average rate of 5.7% while per capita GRDP grew at an average rate of 4.0% per year.

3-3


2003 2004 2005

I. AGRI., FISHERY & FORESTRY 13,866 14,865 15,268 27.3% 4.9%

a. Agriculture & Fishery 13,803 14,772 15,176 27.2% 4.9%

b. Forestry 63 94 92 0.2% 20.8%

II. INDUSTRY 15,810 16,534 17,869 32.0% 6.3%

a, Mining & Quarrying 2,657 2,434 2,625 4.7% -0.6%

b. Manufacturing 8,955 9,626 10,521 18.8% 8.4%

c. Construction 3,948 4,206 4,430 7.9% 5.9%

d. Electricity 251 268 292 0.5% 7.9%

III. SERVICES 20,264 21,789 22,708 40.7% 5.9%

a. Transport, Comm. & Storage 2,145 2,516 2,702 4.8% 12.2%

b. Trade 10,940 11,745 12,249 21.9% 5.8%

c. Finance 696 737 788 1.4% 6.4%

d. O. Dwellings & Real Estate 2,429 2,533 2,600 4.7% 3.5%

e. Private Services 2,421 2,623 2,716 4.9% 5.9%

f. Government Services 1,632 1,635 1,653 3.0% 0.6%Gross Regional Domestic Product

(GRDP)49,940 53,189 55,845 100.0% 5.7%

Thousand Population of Davao

Region3,889 3,953 4,020 -- 1.7%

GRDP Pesos Per Capita 12,841 13,455 13,892 -- 4.0%

AAGR -annual average growth rate

Source of Basic Data: National Statistical Coordination Board, Gross Regional Domestic Product,

Base Year: 1985, 2003-2005

(in million pesos at constant 1985 prices)

Table 3-2: Gross Value Added by Industry, Davao Region

Industry2005

% Share

AAGR

'03-'05

AFF grew at an annual average rate of 4.9%, Industry by 6.3% and Services at 5.9% average per year. In the Industry sector, Mining and Quarrying contracted at an average rate of 0.6% per year. The major growth in the Services sector was accounted for by Transport, Communications and Storage, which increased at an average rate of 12.2% per annum from 2003 to 2005.

(d) Projected GRDP

1. Caraga Region

The GRDP of Caraga Region is projected to grow from a 2005 value of PhP15,500 million at 1985 constant prices, to PhP19,286 million in 2010, based on actual 2005 figures and the growth targets of Caraga Region as indicated in their Regional Development Plan (Table 3-3). These represent annual average growth rates of 4.5% (2005-2010).

Actual

In PhP

mln at

1985

Prices

%

Share

2004 -

2005

2005 -

2006

2006 -

2007

2007 -

2008

2008 -

2009

2009 -

2010

In PhP

mln at

1985

Prices

%

Share

Agriculture, Fishery & Forestry

6,037 38.9% 3.3% 4.5% 4.3% 3.9% 3.8% 3.5% 7,345 38.1% 4.0%

Industry Sector 3,718 24.0% 2.3% 2.9% 3.0% 3.4% 3.3% 3.0% 4,335 22.5% 3.1%

Service Sector 5,753 37.1% 4.5% 5.6% 5.8% 5.6% 5.7% 6.0% 7,605 39.4% 5.7%

Gross Regional

Domestic Product15,509 100.0% 3.5% 4.5% 4.6% 4.4% 4.4% 4.4% 19,286 100.0% 4.5%

Population (000) 2,318 --- 1.9% 2.1% 2.1% 2.1% 2.1% 2.1% 2,572 --- 2.1%

Per Capita GRDP (PhP)

6,691 --- 1.5% 2.4% 2.5% 2.3% 2.3% 2.3% 7,499 --- 2.3%

Sources: 1. 2004 & 2005 GRDP & population figures from NSCB, Gross Regional Domestic Product, Base Year: 1985, 2003-2005.

2. GRDP & population growth targets are from NEDA Caraga Region, Caraga Regional Development Plan, 2004-2010.

Growth Targets

Table 3-3: Caraga Region: Projected Gross Regional Domestic Product

2005 202005-10

Growth

Rate per

Year

Industry

10

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As to relative shares of industries, AFF would decrease from 38.9% in 2005 to 38.1% by 2010. The relative share of Services is envisioned to increase from 37.1% in 2005 to 40% by 2010.

Per capita GRDP at 1985 prices is projected to increase from PhP6,691 in 2005 to PhP7,499 by 2010. Growth would accelerate from 2.3% average per annum during the projection period.

2. Davao Region

The GRDP of Davao Region would increase from PhP55,845 million at 1985 prices in 2005 to PhP74,305 million in 2010 (5.9% AAGR from 2005-2010). (Table 3-4) The higher GRDP growth of Davao Region could be attributed to its various agricultural crop exports, and expected growth in manufacturing, mineral development, tourism, as well as information technology (IT) and business process outsourcing (BPO) services.

AFF Industry Services Total

2003 13,866 15,810 20,264 49,940 3,889 12,841

2004 14,865 16,535 21,789 53,189 3,953 13,455

2005 15,268 17,869 22,708 55,845 4,020 13,892

% 27% 32% 41% 100% 1.7% 4.0%

Target Actual Actual Target

2004 4.5% 6.5% 53,189 3,953 13,455 4.8%

2005 4.8% 5.0% 55,845 4,020 13,892 3.2%

2006 5.0% 58,637 4,087 14,347 3.3%

2007 5.5% 61,862 4,155 14,887 3.8%

2008 5.9% 65,512 4,225 15,506 4.2%

2009 6.3% 69,639 4,295 16,213 4.6%

2010 6.7% 74,305 4,367 17,015 4.9%

Ave 2005-

105.9% 1.7% 4.1%

AFF 28.0% 20,805

Industry 30.0% 22,291

Services 42.0% 31,208

AFF - Agriculture, Forestry and Fishery

Sources: 1. National Statistical Coordination Board, Gross Regional Domestic Product, 2003-2005

2. NEDA Davao Region, Davao Regional Development Plan, 2004-2010

GRDP PhP

Per Capita

% Growth

Per Capita

Table 3-4: Davao Region Gross Regional Domestic Products - Actual and Targets

In PhP mln at 1985

Prices

Annual Growth

RateYear

GRDP PhP

Per Capita

Thousand

Population

In PhP mln at 1985 PricesYear

Thousand

Population

The relative shares to GRDP would be maintained during the projection period. The relative share of AFF would still be about 28%, Industry 30% and Services 42%, based on the Davao Region Regional Development Plan.

Per capita GRDP is projected to grow from PhP13,892 at 1985 prices in 2005 to PhP17,015 in 2010, representing an AAGR of 4.1%.

(ii) Major Agricultural Crops

(a) Caraga Region

Caraga Region registered a 2003 palay production of 344,706 metric tons (MT) over 113,926ha of land area (Table 3-5), with such production level representing a 5.4% growth over 2002. Irrigated and rain-fed areas showed incremental production increases of 5.0% and 6.5%, respectively. Although contributing 37.0% of total 2003 production, Agusan del Sur was not able to realize positive overall production growth. The same trend is observed for Agusan del Norte. On the

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other hand, Surigao del Sur posted a 20.2% growth while Surigao del Norte registered a 14.5% increase in production. These growth trends for Surigao del Sur and Surigao del Norte are attributable to increased production areas, improved irrigation systems, application of appropriate technologies, use of high yielding varieties and provision of subsidized farm inputs.

2002 2003 % Change 2002 2003 % Change

Agusan del Norte 22,785 22,110 -3.0% 77,692 74,647 -3.9%

Agusan del Sur 45,550 41,300 -9.3% 127,725 127,556 -0.1%

Surigao del Norte 27,405 27,546 0.5% 64,584 73,927 14.5%

Surigao del Sur 22,294 22,970 3.0% 57,069 68,576 20.2%

Total Caraga 118,034 113,926 -3.5% 327,070 344,706 5.4%

2002 2003 % Change 2002 2003 % Change

Agusan del Norte 56,377 54,258 -3.8% 21,315 20,389 -4.3%

Agusan del Sur 87,470 90,540 3.5% 40,255 37,016 -8.0%

Surigao del Norte 50,553 53,035 4.9% 14,031 20,892 48.9%

Surigao del Sur 44,030 52,463 19.2% 13,039 16,113 23.6%

Total Caraga 238,430 250,296 5.0% 88,640 94,410 6.5%

Source: NEDA, Region XIII - Caraga Development Plan, 2004 to 2010, @2004

Area Harvested (ha) Production (MT)

Table 3-5: Palay Production by Province, Caraga Region, 2002-2003

Province

Irrigated Rainfed

Production (MT)

Province

Total 2003 corn production of 74,545MT in the Caraga Region increased by 9.6% from 68,043MT in 2002. The production area was of 49,839ha (Table 3-6). The 90.1% increase in the corn production of Agusan del Norte is attributable to favorable weather, i.e., long dry months and short intermittent rainy days, and assistance through the Ginintuang Masaganang Ani (GMA) for Corn Program. The decline, however, of corn production in Agusan del Sur is attributable to the shift from corn to watermelon, peanuts, and other legumes. Other major agricultural crops planted in the Caraga Region were coconut, banana, oil palm, rubber, mango, abaca, calamansi and coffee.

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2002 2003 % Change 2002 2003 % Change

Agusan del Norte 7,160 9,879 38.0% 7,542 14,334 90.1%Agusan del Sur 37,412 33,030 -11.7% 52,810 50,707 -4.0%Surigao del Norte 685 495 -27.7% 506 432 -14.6%Surigao del Sur 6,100 6,435 5.5% 7,185 9,072 26.3%Total Caraga 51,357 49,839 -3.0% 68,043 74,545 9.6%

2002 2003 % Change 2002 2003 % Change

Agusan del Norte 7,542 12,344 63.7% 0 1,990 --

Agusan del Sur 43,340 39,529 -8.8% 9,470 11,178 18.0%Surigao del Norte 7,416 197 -97.3% 275 235 -14.5%Surigao del Sur 0 9,072 -- 0 0 --

Total Caraga 58,298 61,142 4.9% 9,745 13,403 37.5%

Source: NEDA, Region XIII - Caraga Development Plan, 2004 to 2010, @2004

White Yellow

Production (MT)

Province

Area Harvested (ha) Production (MT)

Table 3-6 Corn Production by Province, Caraga Region, 2002-2003

Province

(b) Compostela Valley

In 1998, Compostela Valley harvested various agricultural crops including palay (13,194ha), corn (18,388ha), coconut (24,717ha) and banana (5,999ha). (Table IIIA-2.2.3-7)

Palay 13,194 9.2% 48,172 Irrigated 9,033 6.3% 35,771 Rainfed 4,161 2.9% 12,401

Corn 18,366 11.6% 33,015 White 16,578 11.6% 28,546 Yellow 1,787 0.0% 4,469

Banana 5,999 4.9% 83,120Coconut 24,717 17.3% 203,670Vegetables 730 0.5% 4,009Root Crops 2,065 1.4% 7,928Other Industrial Crops 39,417 27.5% --Other Fruit Crops 3041.85 2.1% 11,810Source: Compostela Valley Development Plan, 2000 to 2010

Table 3-7: Area and Production of Major Crops, 1998

Compostela Valley

Major Crop Area (ha)% to Total

Crop Land

Production

(MT)

(iii) Employment

The number of employed persons in the Caraga Region2 increased from 888,000 persons in April 2001 to 976,000 persons in April 2005, reflecting an annual average growth rate of 2.4% (Figure

3-3). There was, however, a 7,000 decrease in the number of employed people in April 2004.

2 This is obtained by first multiplying the number of population 15 years old and over by the Labor Force Participation Rate (LFPR) and then multiplying the result by the Employment Rate.

3-7


27000

28000

29000

30000

31000

32000

33000

80090010001100120013001400150016001700

Philippines 29158.927 30192.457 30397.164 31542.046 32239.631

Davao Region 1507.3795 1535.4804 1548.5783 1630.3449 1622.6221

Caraga Region 887.94228 917.91554 941.49169 932.89547 975.67584

Apr 2001 Apr 2002 Apr 2003 Apr 2004 Apr 2005

Source: National Statistics Off ice, Labor Force Surveys at w w w .census.gov.ph

Figure 3-3 Thousand Persons Employed, CARAGA 2001-2005

The annual average employment growth in the Caraga Region of 2.4% from 2001 to 2005 is similar to the average annual national growth of 2.5%. However, employment growth for Davao Region is relatively low at an annual average of 1.9% for the same period. Davao Region also experienced a slight reduction in the total number of employed persons, from 1.630 million in April 2004 to 1.623 million in April 2005.

On a sector basis, about 52% of employed persons for the Caraga Region in 2002 belong to the AFF industry group (Table 3-8). Services accounted for about 39% and only 9% for Industry.

AFF 451 52.9% 460 52.2% 0.40%

Industry 92 10.8% 80 9.1% -2.76%

Services 309 36.3% 341 38.7% 1.99%

Total/Average 852 100.0% 881 100.0% 0.67%

Average

Growth/ YearSector

Table 3-8: Employed Persons by Industry Group, Caraga Region, 1997-2002

Source: NEDA,Region XIII: Caraga Development Plan, 2004-2010, @2004.

Thousand

Employed% Share

1997 2002

Thousand

Employed% Share

In the Davao Region, about 45% of employed persons in 2003 were in the Services sector while about 43% were in the AFF sector (Table 3-9). Industry accounted for only 12% of total employed persons in the Region.

Industry No. of Workers % Share

Agriculture, Fishery & Forestry 680,000 42.9%Industry 196,000 12.4%Services 708,000 44.7%

Total 1,584,000 100.0%

Source: NEDA, Davao Regional Development Plan, 2004-2010

Table 3-9 Employed Persons by Industry Group, Davao Region, 2003

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(iv) Family Income and Expenditure

The 2003 average family income in the country amounted to PhP148,616 at current prices. However, only NCR, CAR, Central Luzon and CALABARZON were able to realize regional-level incomes above this average (Table 3-10). As to average saving, more regions achieved higher levels than the PhP24,239 national average; namely, NCR, CAR, Cagayan Valley, CALABARZON and SOCCSKSARGEN.3

Next to SOCCSKSARGEN, Davao Region had the highest 2003 average family income of PhP114,065 in Mindanao. Caraga Region, on the other hand, had the second lowest 2003 average family income of PhP86,859, higher only to the ARMM. Caraga Region had the lowest average saving among all regions in the country, at only PhP10,960.

When expressed in 2000 prices, there is a general deterioration of average family income for all regions in the country from 2000 to 2003. The trend is likewise observed in average family saving with the exception of Cagayan Valley, SOCCSKSARGEN, Caraga Region and ARMM. Among the regions, Caraga Region had the lowest average family saving of PhP9,778 expressed in 2000 prices.

The equity of income distribution for both Caraga and Davao regions has also deteriorated from 2000 to 2003 as reflected by the Gini Concentration Ratio.

A t C u rre n t P ric e s

P h ilip p in e s 1 4 5 ,1 2 1 1 1 8 ,8 3 9 2 6 ,2 8 2 1 4 8 ,6 1 6 1 2 4 ,3 7 7 2 4 ,2 3 9

N C R 3 0 0 ,3 0 4 2 4 4 ,2 4 0 5 6 ,0 6 4 2 7 4 ,5 2 9 2 2 5 ,9 3 6 4 8 ,5 9 3C A R 1 3 9 ,6 1 3 1 1 0 ,3 3 8 2 9 ,2 7 5 1 5 7 ,0 4 5 1 3 0 ,1 5 4 2 6 ,8 9 1Ilo co s 1 2 0 ,8 9 8 9 5 ,7 5 5 2 5 ,1 4 3 1 2 4 ,4 3 7 1 0 2 ,5 9 6 2 1 ,8 4 1C a g a ya n V a lle y 1 0 8 ,4 2 7 8 8 ,6 5 6 1 9 ,7 7 1 1 2 4 ,3 7 5 9 7 ,9 4 5 2 6 ,4 3 0C e n tra l L u zo n 1 5 0 ,5 0 4 1 1 9 ,4 5 4 3 1 ,0 5 0 1 5 8 ,0 7 5 1 3 6 ,5 4 8 2 1 ,5 2 7C a la b a rzo n 1 7 8 ,6 0 0 1 4 9 ,5 9 2 2 9 ,0 0 8 1 8 5 ,6 6 1 1 5 9 ,2 6 7 2 6 ,3 9 4M im a ro p a 9 9 ,4 3 8 7 9 ,8 7 6 1 9 ,5 6 2 9 7 ,3 9 4 8 0 ,7 3 2 1 6 ,6 6 2B ic o l 9 5 ,2 9 9 8 2 ,3 6 6 1 2 ,9 3 3 1 0 6 ,8 1 3 9 3 ,6 6 6 1 3 ,1 4 7W e s te rn V isa ya s 1 0 9 ,6 0 0 9 4 ,7 0 4 1 4 ,8 9 6 1 1 2 ,5 9 3 9 8 ,3 3 2 1 4 ,2 6 1C e n tra l V is a ya s 9 9 ,5 3 1 8 3 ,6 4 4 1 5 ,8 8 7 1 1 9 ,1 1 9 1 0 0 ,1 6 8 1 8 ,9 5 1E a s te rn V isa ya s 9 1 ,5 2 0 7 2 ,0 9 0 1 9 ,4 3 0 1 0 3 ,8 7 4 8 3 ,4 5 9 2 0 ,4 1 5Z a m b o a n g a P e n in su la 1 / 8 8 ,2 1 4 7 0 ,8 1 8 1 7 ,3 9 6 9 5 ,6 6 0 7 6 ,8 0 5 1 8 ,8 5 5N o rth e rn M in d a n a o 1 0 8 ,4 8 0 8 3 ,2 6 3 2 5 ,2 1 7 1 0 6 ,8 9 7 8 9 ,5 9 2 1 7 ,3 0 5D a va o 1 0 7 ,9 7 6 9 0 ,4 9 6 1 7 ,4 8 0 1 1 4 ,0 6 5 9 7 ,5 0 5 1 6 ,5 6 0S o c cs ks a rg e n 2 / 1 0 2 ,7 0 7 8 1 ,7 9 7 2 0 ,9 1 0 1 1 6 ,2 8 4 8 6 ,3 7 6 2 9 ,9 0 8C a ra g a 8 1 ,5 1 9 7 2 ,1 0 8 9 ,4 1 1 8 6 ,8 5 9 7 5 ,8 9 9 1 0 ,9 6 0A R M M 3 / 7 9 ,1 1 0 6 5 ,5 1 4 1 3 ,5 9 6 8 4 ,4 3 9 6 8 ,2 1 2 1 6 ,2 2 7A t 2 0 0 0 P ric e s

P h ilip p in e s 1 4 5 ,1 2 1 1 1 8 ,8 3 9 2 6 ,2 8 2 1 3 0 ,5 9 4 1 0 9 ,2 9 4 2 1 ,3 0 0N C R 3 0 0 ,3 0 4 2 4 4 ,2 4 0 5 6 ,0 6 4 2 3 9 ,7 6 3 1 9 7 ,3 2 4 4 2 ,4 3 9C A R 1 3 9 ,6 1 3 1 1 0 ,3 3 8 2 9 ,2 7 5 1 3 6 ,3 2 4 1 1 2 ,9 8 1 2 3 ,3 4 3Ilo co s 1 2 0 ,8 9 8 9 5 ,7 5 5 2 5 ,1 4 3 1 1 0 ,2 1 8 9 0 ,8 7 3 1 9 ,3 4 5C a g a ya n V a lle y 1 0 8 ,4 2 7 8 8 ,6 5 6 1 9 ,7 7 1 1 1 0 ,8 5 1 8 7 ,2 9 5 2 3 ,5 5 6C e n tra l L u zo n 1 5 0 ,5 0 4 1 1 9 ,4 5 4 3 1 ,0 5 0 1 4 2 ,0 2 6 1 2 2 ,6 8 5 1 9 ,3 4 1C a la b a rzo n 1 7 8 ,6 0 0 1 4 9 ,5 9 2 2 9 ,0 0 8 1 6 1 ,8 6 7 1 3 8 ,8 5 5 2 3 ,0 1 2M im a ro p a 9 9 ,4 3 8 7 9 ,8 7 6 1 9 ,5 6 2 8 6 ,5 7 3 7 1 ,7 6 1 1 4 ,8 1 2B ic o l 9 5 ,2 9 9 8 2 ,3 6 6 1 2 ,9 3 3 9 4 ,6 0 8 8 2 ,9 6 3 1 1 ,6 4 5W e s te rn V isa ya s 1 0 9 ,6 0 0 9 4 ,7 0 4 1 4 ,8 9 6 9 9 ,1 1 4 8 6 ,5 6 0 1 2 ,5 5 4C e n tra l V is a ya s 9 9 ,5 3 1 8 3 ,6 4 4 1 5 ,8 8 7 9 9 ,5 1 5 8 3 ,6 8 2 1 5 ,8 3 3E a s te rn V isa ya s 9 1 ,5 2 0 7 2 ,0 9 0 1 9 ,4 3 0 9 2 ,7 4 5 7 4 ,5 1 7 1 8 ,2 2 8Z a m b o a n g a P e n in su la 1 / 8 8 ,2 1 4 7 0 ,8 1 8 1 7 ,3 9 6 8 6 ,8 8 5 6 9 ,7 5 9 1 7 ,1 2 6N o rth e rn M in d a n a o 1 0 8 ,4 8 0 8 3 ,2 6 3 2 5 ,2 1 7 9 4 ,0 9 9 7 8 ,8 6 6 1 5 ,2 3 3D a va o 1 0 7 ,9 7 6 9 0 ,4 9 6 1 7 ,4 8 0 1 0 1 ,1 2 1 8 6 ,4 4 1 1 4 ,6 8 0S o c cs ks a rg e n 2 / 1 0 2 ,7 0 7 8 1 ,7 9 7 2 0 ,9 1 0 1 0 4 ,4 7 8 7 7 ,6 0 6 2 6 ,8 7 2C a ra g a 8 1 ,5 1 9 7 2 ,1 0 8 9 ,4 1 1 7 7 ,4 8 4 6 7 ,7 0 6 9 ,7 7 8A R M M 3 / 7 9 ,1 1 0 6 5 ,5 1 4 1 3 ,5 9 6 7 3 ,6 1 7 5 9 ,4 7 0 1 4 ,1 4 7G in i C o n c e n tra tio n R a tio 2 0 0 0 2 0 0 3

D a va o R e g io n 0 .4 3 1 8 0 .4 5 5 0C a ra g a R e g io n 0 .4 1 1 8 0 .4 2 5 6N o tes : 1 / In 200 0 , B as ilan inc lud ing Isabe la C ity w as u nde r R eg ion IX .

2 / In 2 000 , M a raw i C ity is a p a rt o f R e g ion X II.

3 / B as ilan P rov ince (exc lud ing Isabe la C ity), w h ich w as pa rt o f R eg ion IX in 2000 , has been tran s fe rred to A R M M unde r E O 36 .

S ou rce : N a tiona l a nd S ta tis tics O ffice , F am ily In com e and E xpend itu re S u rve rys

A ve ra g e

S a v in g

T a b le 3 -1 0 : F a m ily In c o m e a n d E x p e n d itu re b y R e g io n , P h ilip p in e s , 2 0 0 1 -2 0 0 3

R e g io n

2 0 0 0 2 0 0 3

A ve ra g e

In c o m e

A ve ra g e

E x p e n d itu re

A ve ra g e

S a v in g

A ve ra g e

In c o m e

A ve ra g e

E x p e n d itu re

3 SOCCSKSARGEN consists of 2 cities and 3 provinces; namely, South Cotabato, Cotabato City, Sultan Kudarat, Sarangani, and General Santos City.

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(v) Poverty Threshold and Incidence

The average annual per capita poverty threshold in the Philippines of PhP11,319 in 1997 increased to PhP13,913 in 2000 (Table 3-11). The poverty threshold is generally higher in the urban areas compared to the rural areas. However, poverty incidence was more marked in the rural areas vis-à-vis urban areas.

Total Urban Rural Total Urban Rural

11,319 12,577 10,178 13,913 15,667 12,227Region X 10,440 11,259 9,869 12,131 12,907 11,580Region XI 10,503 11,704 9,762 12,546 13,886 11,606Region XII 11,119 12,468 10,573 12,247 14,396 11,238

Total Urban Rural Total Urban Rural

31.8% 17.9% 44.4% 34.2% 20.5% 47.4%Region X 47.0% 34.2% 55.7% 45.7% 31.8% 55.3%Region XI 38.2% 26.5% 45.8% 41.2% 28.5% 49.9%Region XII 50.0% 35.8% 55.9% 50.9% 39.5% 56.2%Source: National and Statistics Office, Family Income and Expenditure Surveys

1997 2000

Table 3-11 Annual Per Capita Poverty Threshold and Poverty Incidence, 1997-2000

Poverty Incidence of Families

1997 2000

Poverty incidence of families in the country was 31.8% in 1997 and 34.2% in 2000. However, poverty incidences of families in Regions X, XI and XII (i.e., there was no report of Region XIII in this statistical series) were worse than the national average.

The foregoing discussion has generally established that the Davao Region (although not necessarily Compostela Valley) is a better economic performer than the Caraga Region although several attributes of the latter tend to establish the importance of infusing more investments and economic opportunities in the region in light of:

�� The latent potential of its AFF sector that accounts mostly for the growth of its GRDP as well as its Services sector;

�� Higher employment rates registered from 2001-2005 (2.9% vs. 1.9% for Davao Region) indicating the relative potential of its labor force for actual participation into the workforce particular with respect to the anticipated growth and labor-absorbing capacity of its Service sector; and,

�� Relative potential for economic growth to be the prime engine in poverty reduction (but as long as social equity objectives are fulfilled), particularly in raising average family incomes and reducing poverty incidence rates at significant levels or at least way above generated averages for Mindanao

These attributes of the Caraga Region and likewise for impoverished regions to be encompassed by the Master Plan) signify the need for positive change realizable from a package of development interventions that may be implemented under integrated development of the ARB under IRBM.

3.2 THE SOCIAL SETTING

The assessment of the social setting is structured in six (6) parts beginning with a distinction made between government and non-government stakeholders to set common understanding of the attributes of stakeholders with regard use and management of natural resources. Following is a comprehensive analysis of demographic, economic and social conditions inclusive of tenure, livelihood, access to water supply services, health and hygiene, utilization of wood resources, poverty situation and sources of social capital. A situational analysis of relevant IP groups in the Basin is made in the third section particularly in regard social organization, resource use management, integration and realization of rights recognized under the law. Analysis is further

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extended to crosscutting concerns of IP groups with poverty, health, education and gender. In the fourth part, a specific gender analysis is rendered framed first within the policy framework for gender in the country and focusing consequently into the overall conditions of women and men in study areas, and resulting gender situation at the community level. Taken mainly from the workshops conducted, priorities of primary and stakeholder priorities are then defined, as well as issues of significance to IP groups in the Basin. Finally, the assessment is concluded with a prognosis of the social situation of the ARB in 2020 under a business-as usual scenario barring any major change in its physical, political and socio-economic environment.

3.2.1 Stakeholders of the Basin

(i) Government Stakeholders

A&D areas in the Basin are generally privately owned while forestlands legally belong to the national government, which regulates its use. The LGU is the main regulator in the use of A&D areas, with the provincial physical framework plan and the comprehensive land use plan (CLUP) as its main regulatory instruments.

(a) National Agencies

Being mandated as the primary government agency for natural resource management, the DENR is the primary regulator of forestlands in the country. This regulation extends to other government agencies utilizing basin resources mainly through its environmental impact assessment (EIA) system. Due to human activities in A&D and forestland areas, various national agencies deliver specialized and/or complementary services. Among these are the DPWH (infrastructure), DA (irrigation and farm inputs), DOH (special health services), DepEd (education), DOE (energy provision), DAR (land provision) and NCIP (IP concerns). Apart from regulation, the DENR designates protected areas in line with natural resource conservation, for which it is presently managing two (2) proclaimed and three (3) proposed protected areas. The Agusan Marsh Wildlife Sanctuary is one of these proclaimed areas along with the Mainit Hot Spring National Park (Nabunturan, Davao del Norte).

(b) Local Government Units

Within the Basin are 30 of the 36 combined municipalities of three (3) provinces and one (1) city (Table 3-12).

Table 3-12 Distribution of Municipalities and Cities in ARB Provinces, 2005

Province Total Number of

Municipalities

Municipalities

in the Basin

Total Number

of Cities

Cities Within

the Basin

Agusan del Norte 11 6 1 1Agusan del Sur 14 14 - -Compostela Valley 11 10 - -Total 36 31 1 1

The municipalities in Agusan del Sur and Butuan City covers most of the downstream area of the Basin while its midstream area is largely in Agusan del Norte and the upstream area in Compostela Valley. (Figure 3-4)

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Agusan del Norte Agusan del Sur Compostela Valley

Source: DENR/GIS TA teamFigure 3-4 Comparative Distribution of Municipalities, ARB, 2005

The Basin has more than 425 barangays (Annex F). As with all other areas in the Philippines, the government of each barangay, municipality, province and city within the Basin represents LGU authority. The role of the LGU and DENR as regulators vests in them the authority as main government stakeholders in the ARB.

(ii) Non-Government Stakeholders

Resource users in the Basin are referred to as non-government stakeholders, which may further be categorized into on-site or off-site stakeholders. The former consists of households and groups who consider the Basin both their home and source of livelihood. The latter, comprising of either be groups or corporations, profit from Basin resources but are based elsewhere.

Major groups of resource users in the Basin vary by slope (Table 3-13). As such, the categories of resource users described in the succeeding includes those inhabiting the flatlands, lower slopes, and upper slopes, other than IP groups and so-called informal regulators (i.e., insurgents). The location of these resource users in the Basin is shown in Figure 3-5.

Table 3-13 Formal Users of Forestry, Mineral and Fisheries Within the ARB, 2005

Users Type Agusan

Norte

Agusan

Sur

Compostela

Valley Total

WDs Corporation 5 4 2 11IAs PO 19 74 14 107Fishpond and fish cage operators 455 1,681 321 2,457

Corporate plantations Corporation 1 2 3 4Sawmills, mini-sawmills and re-sawmills operators Corporation 32 6 15 53

Wood products plant operators Corporation 13 2 4 19Log, poles and piles dealers Corporation 6 7 - 13Lumber dealers Corporation 44 10 19 73CBFMA and FLMA holders PO 12 30 39 81CSC holders Household 4,518 6,052 10,031 20,601IFMA holders Corporation 2 12 2 16PFDA holders Individual 2 81 - 83SIFMA holders Corporation 2 1 - 3 CBRMP implementers PO 19 13 - 32Private land timber permit holders Individual - 16 - 16

TLA Corporation - 2 - 2

Rattan permit holders Individual/PO/ 3 8 2 13

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Users Type Agusan

Norte

Agusan

Sur

Compostela

Valley Total

CorporationActive mines and mineral processing permit holders Corporation - 1 2 3

Active sand and gravel quarrying permit holders Corporation 5 1 21 27

CADC and CADT holders PO 1 2 8 11Source: DENR, LWUA, NCIP, NIA and Agusan Sur and Compostela Valley Provincial Agricultural Office (PAO)

(a) Stakeholders in the Flatlands

At the flat lands are organized water users and fishers, which include WDs, fishpond and fish cage operators, and IAs.

There are 11 water districts in the Basin, of which 5 are in Agusan del Norte, 4 in Agusan del Sur, and 2 in Compostela Valley. As of 2005, these WDs provide water security to at least 29,175 households. The Basin also has 117 IAs where 19 are in Agusan del Norte, 74 in Agusan del Sur, and 14 in Compostela Valley. Alongside these are a total of about 2457 fish pond and fish cage operators, the bulk of which are in Agusan del Sur (68%). These operators are generally small-scale with production areas averaging only about 0.10ha. Both IAs and fishers primarily account for food security in the Basin.

(b) Stakeholders in the Lower Slopes

Rice farmers, who are also in the production of non-rice crops, are a majority in flatlands and lower slopes compared to its corn and commercial crop growers. Large commercial crop areas are generally found in corporate plantations such as those engaged in banana production in Agusan del Norte and Compostela Valley, and palm oil cultivation in Agusan del Sur. A total of six (6) corporations have plantations in the Basin, of which one (1) manages between 500 to over 1000ha of planted land.

Corporate plantations have two (2) kinds of stakeholders; namely, small landowners and corporations. Small landowners are those who lease their lands or are engaged in contract growing as part of their operations. Corporations, on one hand, are those managing extensive plantations, and whose corporate headquarters are domiciled either in Davao City or Metro Manila. Smaller household-managed plantations, on the other hand, are those raising rubber, coffee, abaca, and trees for fruit and timber.

The lower segments of the wood production supply chain are also found in flatlands and lower slopes. These are the operators of sawmills, re-sawmills, and wood product plants as well as dealers of logs, poles, piles, and lumber. Most of these are concentrated downstream particularly in Butuan City and Magallanes (Agusan del Norte).

There are 53 sawmills and re-sawmills in the Basin and 19 wood product plant operators producing veneer, plywood, match-splints and fibreboard. Some of these plants have corporate headquarters in Metro Manila and Davao. Dealers, meanwhile, comprise the last segment of the supply chain and connect directly with the demand chain. These consist of about 13 dealers of logs, poles and piles, and 73 lumber dealers.

(c) Stakeholders in the Upper Slopes

In the upper slopes are the tree planters and log producers. In occupying lands generally classified as forestland, producers are mostly holders of DENR-issued tenure instruments. The issuance of these instruments is an exercise of regulatory function by the DENR. These instruments are as follows:

�� Certificate of Stewardship Contract (CSC) �� Community-Based Forest Management Agreements (CBFMA)

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�� Forestland Management Agreement (FLMA) �� Industrial Forest Management Agreement (IFMA) �� Private Forest Development Agreement (PFDA) �� Socialized Industrial Forest Management Agreement (SIFMA)

The CSC is no longer issued at present and areas under it are devolved to the LGU. For private land utilized for log production, the DENR issues a Private Land Timber Permit (PLTP). In the Basin, about 20,601 households hold CSCs while 81 POs have CBFMAs including FLMAs. Meanwhile, 16 corporations have IFMAs and 3 corporations have SIFMA. On the other hand, 83 individuals are contracted into PFDAs. The WB–funded CBRMP also serves as vehicle of POs to be involved in upland management where about 32 POs are planting trees under this project.

Operating throughout the Basin are various resource extractors, to which various permits are being issued by the DENR for the harvest of timber, rattan, minerals, and earth materials. There are two (2) corporations holding TLAs in the area alongside various individuals/ POs/corporations holding a combined total of 13 rattan extraction permits. In mining, corporations also hold three (3) active mines and mineral processing permits, and 27 active quarrying permits. The materials quarried are gravel and sand, limestone and silica.

(d) Indigenous Peoples

The government has issued 11 CADCs and CADTs in the Basin, which encompass areas occupied by about 26,500 IP households. These represent 9% of households found in its three (3) provinces. These IP groups are the Manobos, Mamanwa and Higaonon in the lower and middle section, and the Mandaya and Mansaka in the upper section. These areas cover about 296,157ha or 23% of the combined area of the three (3) provinces within the Basin. About eight (8) more CADT areas in the ARB are being processed by the NCIP.

(e) Informal Regulators

Living around the Basin are bands of the New People’s Army (NPA) who exercise informal regulatory function such as the collection of resource use fees (revolutionary tax) from corporations, mining operators, and commercial establishments in several areas. The NPA generally relies on intimidation and arms to enforce compliance. Small commercial establishments shell out PhP500.00/month while medium-size mining operators pay up around PhP5,000.00/month. The rate for corporations is generally larger but negotiable.

(iii) Stakeholder Categories and Participation

Basin stakeholders and their interest in resource use are identified to ensure their participation in the planning process. Stakeholders were categorized into two (2) groups; namely:

�� Primary Stakeholders, which are direct users of Basin resources and as such, will be directly affected (positively and negatively) by any intervention that implemented in it; and,

�� Secondary Stakeholders, referring to government managers of the Basin and providers of services.

The categorization of stakeholders facilitated the selection of stakeholder groups who would be represented at planning activities. It also guided the development of the 2-level sampling frame and in determining who will be part at each level (provincial stakeholder workshop and barangay meetings). Identifying the stakeholders made it easy to set the representative number and manageable size of participants for study activities. The selection of stakeholder groups has also a bearing in strengthening their coordination considering what the ADB noted as the generally weak coordination among river basin stakeholders (ADB, 2004).

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3.2.2 Demographic and Socio-economic Profile

(i) Demography

(a) Population Size

As of 2000, Agusan del Sur and Compostela Valley accounted for 35% each of the Basin population while Agusan del Norte cornered 30%. Around 68% of the total are rural based, the highest percentage of which are in Compostela Valley (71%). This rural orientation predominates as well Agusan del Norte (66%) and Agusan del Sur (65%). (Table IIIA-2.2.4-3)

Table 3-14 Population Size by Municipality and Growth Rates, ARB, 1960-2000

Total Municipal Population by Census Municipalities in the

Agusan River Basin 1960 1970 1980 1990 2000

Province: Agusan del Norte

Municipality Buenavista 17,927 24,753 31,531 39,331 50,612Butuan City 177,333 131,094 172,489 227,829 267,279 Las Nieves 4,262 6,782 10,757 15,409 21,530Magallanes Nd 7,377 15,994 16,211 19,895RT Romualdez Nd Nd Nd 10,490 13,359Cabadbaran 26,216 34,729 42,695 46,370 55,006Nasipit 14,996 23,306 29,905 34,084 35,817

Province: Agusan del Sur

Municipality Bayugan Nd 37,816 56,367 78,725 93,623Bunawan 11,423 8,656 12,719 21,105 26,704Esperanza 31,825 21,051 25,257 36,139 44,151La Paz 5,746 7,971 14,389 16,144 20,880Loreto 6,248 13,057 18,781 21,133 31,365Prosperidad 12,438 23,328 33,824 51,189 70,815Rosario Nd 7,885 12,443 25,436 28,675San Francisco 16,535 17,636 27,153 43,878 56,968San Luis Nd 7,531 12,793 18,521 25,901Santa Josefa 1,687 3,601 6,604 11,392 22,730Sibagat Nd Nd Nd 24,004 28,685Talacogon 4,861 7,719 11,452 21,655 30,879Trento Nd 11,815 19,257 31,313 41,696Veruela 2,914 6,626 13,991 20,129 36,222

Province: Compostela Valley

Municipality Compostela 20,444 17,159 30,538 53,546 61,667Laak Nd Nd 31,581 35,895 59,450Mawab 7,818 13,537 20,960 28,072 32,003Maco Nd 29,693 41,017 55,991 65,181Maragusan Nd Nd 20,220 40,982 45,937Monkayo 16,062 24,597 37,571 58,239 85,830Montevista Nd 11,945 20,626 29,789 33,225Nabuntaran 21,860 27,689 37,292 53,410 60,543New Bataan Nd 19,978 32,887 39,629 42,549Pantukan 16,493 21,890 30,281 46,300 61,801Totals: 417,088 569,221 871,374 1,252,340 1,570,978

Annual Population Growth (%) 3.16% 4.35% 3.69% 2.30%

Source: National Statistics Office (NSO)

Unlike other river basin systems, the population in the ARB does not substantially decrease further upstream. Municipalities in Compostela Valley that constitute the upstream section have 548,168 inhabitants in 2000, a figure as much as those located downstream and midstream;

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respectively, 463,498 inhabitants in Agusan del Norte was and 559,294 inhabitants in Agusan del Sur for the same period. (Figure 3-5)

30%

35%

35%

Agusan del Norte Agusan del Surcompostela Valley

Source: NSO

Figure 3-5 Percentage Distribution of the ARB Population by Province, 2000

(b) Geographic Distribution of the Population

The population within each section of the Basin though is not evenly distributed. Around 58% of the downstream population is in Butuan City while the rest are in six (6) other municipalities. In the midstream area consisting of 14 municipalities, two (2) are already cornering as much as 30% (i.e., Bayugan 17% and Prosperidad 13%). The population in the upstream is more or less evenly distributed among its 10 municipalities althousgh Monkayo still stands out as the most populated (16%). The distribution of the population among the local units does not merely reflect the size of their area considering that these also assume key roles in the resource use system of the Basin. Butuan City has most of its wood processing and production industries and is the main transhipment point of wood products out of the Basin. Bayugan is to a large degree a satellite of Butuan City while Monkayo is a gold rush area.

(c) Population Growth

The Basin experienced massive population growth between 1960 and 1970 when its population increased from 417,088 to 569,221, respectively. Within the 10-year period, population growth was 3.16% per year, a figure slightly higher than the national growth rate of 3.0% for the same period. From 1970 to 1980, growth accelerated even more at 4.35% yearly, despite a marked reduction of annual population growth at the national level to only 2.8%. Population growth in the Basin tapered off to 3.69% annually between 1980 and 1990, although this may still be considered high considering that the national rate dipped even further to 2.4% for the same period. Only from 1990 to 2000 did population increase in the Basin resembled that of the national level by going to the same level of 2.30% per annum.

Population growth in the Basin tends to accelerate as movement into its headwaters becomes more pronounced. Between 1960 and 2000, the downstream section grew at a conservative figure of 1.65% yearly, compared to the annual growth of 4.57% for the midstream section and of 4.84% for Compostela Valley for the same 40-year period. The higher population growth in midstream and upstream sections is largely due to in-migration considering that the rate of natural increase (i.e., number of birth minus number of deaths) decreases towards the upstream. In 2004, the highest natural increase occured downstream at 19.31 persons per 1000, compared to its midstream (18.41 persons) and with Compostela Valley (14.87 persons). (Table 3-15) Therelatively low natural increase in Compostela Valley is due to low birth vis-à-vis a high death rate. The natural increase in the whole Basin is 17.53 persons per 1000 or about the same as the national rate.

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Growth rate is extremely uneven among the municipalities, with only a handful, particularly 3 midstream and 2 upstream, exhibiting population increases at rates higher than the regional growth rate from 1990 to 2000. These are the midstream municipalities of Sta. Josefa (7.15%), Veruela (6.05%) and Loreto (4.02%), which are found in the Agusan Marshland; as well as the upstream municipalities of Laak (5.17%) and Monkayo (3.95%).

The frontier location of these municipalities points not just where the present growth areas are but also the type of migrants coming in. These are generally primary extractors of natural resources (timber, minerals and fisheries) and subsistence farmers with low-value skills and cannot be accommodated in the urban areas. The continuing movement of migrants into these municipalities was confirmed in barangay meetings where participants estimated that 15-30% of households settled in their respective barangays only for the last 10 years.

The location of high growth areas and the type of migrants have serious implications not only on the conservation of Basin resources but also on the control of endemic diseases, protection of indigenous peoples, and poverty reduction efforts. For instance, the settlers in Las Nieves consider improvements in irrigation their priority if not, however, for its potential to attract migrants. Migrant entry is believed to lead to further degradation of their watershed, increase the threat of exposure to schistosomiasis, and among indigenous people, the risk of being dispossessed from their lands.

Table 3-16 Crude Birth Rate and Death Rate (Per 1000 population) ARB, 2004

ParticularsAgusan del

Norte

Agusan del

SurCompostela Valley Average

Crude Birth Rate 22.8 20.61 18.96 20.79Crude Death Rate 3.49 2.20 4.09 3.26Natural Increase 19.31 18.41 14.87 17.53

Source: Provincial Health Office of Agusan Norte, Agusan Sur and Compostela Valley

(d) Gender, Age and Household Distribution

Sex Ratio. The Basin has more men than women. The ratio is not widely skewed but is drifting towards greater male dominance. Unlike in 1980 and 1990 where the sex ratio was constant at 94 women per 100, the trend for 2000 shows the relative decline of women at 91 per 100 men. (Table 3-15) Throughout the Basin, the relative dominance of men in number could be observed although it is in the downstream section where the largest reduction in the number of women have been noted from 1980 to 2000. While quite stable in upstream and midstream sections, the sex ratio downstream has dropped from 98 in 1980 to only 88 in 2000. The reason for this may be that which enables men to keep their numerical dominance in the Basin; namely, the predominance of economic opportunities largely based on extractive industries that tend to favor men.



Norte

Agusan del

Sur

Compostela

Valley Total

No. of Women Per 100 Men (%) 1980 98 93 91 941990 97 93 92 942000 88 93 91 91No. of Dependents per 100 Economically Active Adults (%) 1980 87 97 88 901990 78 89 94 872000 75 84 73 78Average Household Size 1980 5.9 5.8 5.6 5.71990 5.6 5.7 5.5 5.62000 5.3 5.4 4.8 5.1

Source: National Statistics Office

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Dependency Burden. Age distribution reflects the degree of dependency burden. The young (14 years and below) and the elderly (65 years and above) are considered dependent on economically active persons (15 - 64 years old). In 2000, the age distribution in the Basin indicated a young population that translates to a high dependency ratio of 78% or a total of 78 dependents for every 100 economically active persons. This is a marked improvement from 1980 and 1990 when the dependency ratio stood at 90 dependents and 87 dependents, respectively, per 100 economically active adults.

Nonetheless, the 2000 dependency burden is still heavy with almost every economically active person having one dependent to support. A high dependency ratio puts most of personal income to support dependents rather than on savings that can be mobilized for investment. A high dependency ratio also means higher government expenditure on basic services such as education and health and, at the same time, lower revenues considering that the young does not pay taxes. It has been pointed out, however, that many children in the study areas leave school early to earn money at the earliest opportunity.

The decline in dependency burden between 1980 and 2000 occurred in all three (3) sections of the Basin. However, the largest manifested in the upstream (Compostela Valley) where the number of dependents per 100 economically active adults went down from 88 to 73 persons. The reduction is almost the same in the midstream (Agusan del Sur) although its dependency burden by 2000 remains to be the heaviest at 84 dependents per 100 economically active adults. For the same year, there were only 75 in the downstream and 73 in the upstream.

The decline of the dependency burden is reflected in household size. The size of an average household in the Basin shrank from 5.7 members in 1980 to 5.1 in 2000. With fewer children, the household has become smaller and easier to manage. Having the least heavy dependency burden, the upstream section has correspondingly the smallest average household with 4.8 members in 2000 compared to 5.7 in 1980. In 2000, downstream and midstream sections have the largest households at 5.3 and 5.4 members, respectively. The average household size in these areas is also getting smaller but not at the same rate upstream.

(e) Ethnicity

The 2000 NSO census came up with over a hundred self-ascribed ethnic categories in the Basin thus reflecting the diversity of its ethnic composition after more than half a century of in-migration. Nevertheless, the “Bisaya” or ethnic group from Central Visayas emerged dominant in the Basin. Their dialect is also called by the same name or alternatively Cebuano or Boholano as is being used in the island of Cebu and Bohol. In 1980, 83% of the population in the Basin reported Bisaya as their mother tongue, the proportion barely changing in 1990 (Table 3-16). By 2000, the mother tongue of Bisaya was reported only by 60%, suggesting greater ethnic diversification occurring in the Basin during this period.

Table 3-16 Mother Tongue in the ARB, 1980-2000

Mother Tongue Agusan del

Norte (%)

Agusan del

Sur (%)

Compostela

Valley (%)

Total

(%)

1980

Cebuano/Binisaya/ Boholano 93 74 82 83Manobo 1 12 - 4Mamanwa - - - -Mandaya/Mansaka - 1 3 1Higaonon - - - -Others 6 13 15 12Total 100 100 100 1001990

Cebuano/Binisaya/ Boholano 90 73 83 82Manobo 1 12 - 4Mamanwa ` 1 - -Mandaya/Mansaka - - 6 2Higaonon - - - -

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Mother Tongue Agusan del

Norte (%)

Agusan del

Sur (%)

Compostela

Valley (%)

Total

(%)

Others 9 14 12 12Total 100 100 100 1002000

Cebuano/Binisaya/ Boholano 57 53 70 60Manobo 1 15 - 6Mamanwa - - - -Mandaya/Mansaka - - 9 3Higaonon 1 2 - 1Others 41 30 21 30Total 100 100 100 100


The Bisaya were most dominant in Agusan del Norte in 1980, composing 93% of its population. In comparison, its respective populations in Agusan del Sur and Compostela Valley were only 74% and 82% of the total. Generally, the most drastic ethnic diversification occurred also in Agusan del Norte. Correspondingly, its Bisayan population fell to only 57% in 2000 while an increase in non-indigenous ethnic groups was experienced. The decline in Bisayan populations also manifested in the two other provinces although not as sharply. For the whole ARB, non-indigenous ethnic groups constituted a mere 12% in 1980 but already accounted for 30% of the total in 2000.

Ethnic diversification in the Basin turned IPs from a majority to a minority in less than 50 years. Between 1980 and 1990 when migration-fueled population growth was very high, IPs composed only 5-6% of the total population. When such growth tapered off between 1990 and 2000, the proportion of IPs increased to 10%, as indicated not only by the number of persons using indigenous language but also by those with indigenous ethnicity (Table 3-17).

Table 3-17 Population by Ethnicity in the ARB, 2000

Ethnicity Agusan del

Norte (%)

Agusan del

Sur (%)

Compostela

Valley (%)

Total

(%)

Cebuano/Binisaya/ Boholano 62 55 74 64Manobo 1 16 - 6Mananwa - - - -Mandaya/Mansaka - - 9 3Higaonon 1 2 - 1Others 36 27 17 26Total 100 100 100 100


The pattern of IP distribution in the Basin and of groups living in its downstream, midstream and upstream sections, as revealed in the NSO census, is also confirmed in barangay studies. In four (4) barangays downstream, the IPs comprise only 5% (Table 3-18). They are all Manobo with the highest concentration in Buhang, Magallanes. At midstream, the IPs, which are also all Manobos, account for an average of 77% of the populations in five (5) barangays, particularly those in Bunawan. In the upstream, however, the IPs that constitute 23% of the population in nine (9) barangays, particularly concentrate in upland barangays, and are mainly Mansaka and Mandaya. Overall, IP groups comprised 38% of the population in barangays studied.

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Table 3-18 Ethnic Groups in Barangays Covered by the Field Study, ARB, 2005

LocationIndigenous

People

Estimated Size in

Barangay

Population (%)

Average

(%)

Poblacion, Magallanes Manobo 1 Buhang, Magallanes Manobo 10 Poblacion, Les Nieves Manobo 5 Maningalao. Les Nieves Manobo 5 Downstream Average 5Bunawan Brook, Bunawan Manobo 100San Marcos, Bunawan Manobo 99 Consuelo, Bunawan Manobo 95 Tagbayagan, Rosario Manobo 60 Bayugan Tres, Rosario Manobo 30 Midstream Average 77Basak, Nabunturan Mandaya/ Mansaka 10 Santa Maria, Nabunturan Mandaya/ Mansaka 3 Mangayan, Panansalan, Tamya, San Miguel and Ngan, Compostela

Mandaya/ Mansaka 100

Inambatan Mandaya 5 Macopa Mandaya 2 Upstream Average 23General Average 38

The barangay meetings also confirmed massive and continuing migration into the Basin. While IP groups are natives to these barangays, settlers came only in the last 50 years. Continuing migration is confirmed in all barangays except in San Marcos, Bunawan. Noted impetus for migrants are the influence of relatives who have established an asset base in the barangay as well as improvements in service and ease in obtaining farmland. The highest influx occurred in Buhang, Magallanes (40%), Poblacion, Las Nieves (30%) and Bunawan Brook, Bunawan (30%). In spite of the close interaction of IP groups with outsiders, their worldviews and priorities remain distinct in many ways.

(ii) Land Ownership

The opportunity to obtain land is one of the strongest pull-factors for in-migration into the Basin. In its many parts, land is relatively easy to obtain despite laws securing the land and rights of IPs. Legal tenure to land, however, is hard to come by. Only 52% of households in the Basin own or are amortizing their home-lot (Table 3-19). The lowest home-lot ownership rate is in Agusan del Norte (44%), compared to Agusan del Sur (56%) and Compostela Valley (54%). The greater ease of obtaining secure tenure in these two (2) provinces may partly explain their higher in-migration rate.

Table 3-19 Land Ownership among Households in the ARB, 2000

Particulars

Agusan

del Norte

(%)

Agusan

del Sur

(%)

Compostela

Valley (%) Total

Households who own their home lot 44 56 54 52Households who own land other than a home lot 36 80 30 44

Type of land Owned Other Residential Land 31 27 24 26 Agricultural land 55 56 61 58 CLT-Acquired Land 8 9 10 9 Other land 6 8 5 7 Total 100 100 100 100


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Households owning pieces of land other than their home-lot are even fewer, comprising only 44% in the Basin. The highest ownership rate is in Agusan del Sur (80%), relative to those exhibited in Agusan del Norte (36%) and Compostela Valley (30%). About 58% of these non-home lands are agricultural.

This home-lot ownership rate obtained from the NSO census agrees with the results of the barangay study. Participants herein estimated that only around 52% of households in their barangays have land titles, acquired mostly through the Comprehensive Agrarian Reform Program (CARP) (Table 3-20). Most of those with titles are in the upstream (72%) as compared to those in the downstream (34%) and midstream (42%).

Table 3-20 Estimated Percentage of Households With Titled Land in Study Barangays,

ARB, 2005

Location Type of Title

Estimated Size

of Title

Holders (%)

Average

(%)

Poblacion, Magallanes Regular Title 30Buhang, Magallanes Regular Title 40Poblacion, Las Nieves Regular Title 33Maningalao. Las Nieves No data Downstream Average 34Bunawan Brook, Bunawan Regular Title 75San Marcos, Bunawan CADC 100Consuelo, Bunawan Regular Title 25Tagbayagan, Rosario Regular Title 3Bayugan Tres, Rosario Regular Title 10 Midstream Average 42Basak, Nabunturan Regular Title 70Santa Maria, Nabunturan Regular Title 24Mangayan, Panansalan, Tamya, San Miguel and Ngan, Compostela

CADC 100

Inambatan Regular Title 90Macopa CLT* 80 Upstream Average 72General Average 52

*CLT – Certificate of Land Transfer

Providing secure land tenure is expected to stimulate investment and economic activities. It is a particularly important step in alleviating poverty and supporting the rights of IPs, although also with caveats as experienced in other projects. 4 In implementation, these risks include resistance to land titling, illegal logging and mining, falsification of land records, unrestrained population growth, and conflict between IPs and outsiders.

On the part of the government, there is confusion and contradictions over the interpretation of land-related legislation and lack of relevant information. The process is also complicated, expensive and protracted, with loopholes that tend to exclude genuine claimants and enable opportunists to obtain titles. Tenure security, in general, would have to be linked to other activities and requires an integrated approach with strong support from the highest levels. In the Basin, It is an extremely important and highly sensitive issue, for which the success of an IRBM approach could not do without.

4 The documented experiences of the WB/AusAID-funded Land Administration & Management Project (LAMP) are very useful in recognising the problems related to land tenure. See Annex A (Bibliography) for more references to project documentation

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(iii) Livelihoods

Land is the main livelihood base in the Basin. This could be implied from the composition of formal stakeholders (Table 3-21) whose income sources are largely land-based. This is also mirrored in prevailing land use where 54% is devoted to forestry and 28% to agriculture (Table 3-

21).

Table 3-21 Land Use and Distribution, ARB, 2005


Norte

Agusan

del Sur

Compostela

Valley Total/Average

Land Area 4,454.22 8,965.50 4,666.93 18,086.65

% Distribution of Land Agricultural Area 31 18 30 26Forest land 52 81 29 54Mining and Quarrying - - 3 1Agro-industrial 1 - 1 1Pasture land 1 - 31 11Others 15 1 6 7

Total 100 100 100 100

% Distribution of Cropland Rice 28 24 31 28Corn 12 18 48 26Others 60 58 21 46

Total 100 100 100 100Source: DENR, DA, Provincial Planning and Development Office of Agusan del Norte, Agusan del Sur and Compostela Valley

Forestlands host agro-forestry plots, and support a range of wood production and processing industries as well as non-timber forest products (NTFP) harvested at subsistence and commercial scale. Agusan del Sur has the most forestland (81%), which includes the Agusan Marsh Wildlife Sanctuary, when compared to Agusan del Norte (52%) and Compostela Valley (29%). Meanwhile, croplands are cultivated mainly with rice (28%) and corn (26%).

Generally among Basin households, agriculture is important that it is considered the primary income source. This has been the trend shown in a 2000 study on the Gibong Watershed where 98% of households upstream and 99% midstream relied mainly on farming (Table 3-22). To more than half of the households in the two (2) sections of the watershed, farming is the only source of income. In the lower part of the marshland, however, fishing is the year-round livelihood source, although 62% of them still farm on soil enriched with flood-borne nutrients.

Table 3-22 Main Sources of Household Income, Gibong River Watershed, 2002

Income Sources Upstream

(N=85, %)

Mid-Stream

(N=88, %)

Downstream

(N=55, %)

Farming 59 64 4Fishing - - 12Salary/wages 16 1 -Business operation 2 - -Farming and others 23 35 58Fishing and vending - - 24Fishing and wages - - 2 Total 100 100 100

Source: NIA, Environmental Impact Study of Gibong Irrigation System. 2003

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(iv) Water Systems and Water Use

While land is the main livelihood base in the Basin, water is a vital component. Apart from its wide use in agricultural production, water is critical for livelihood activities; namely, fisheries, livestock, fodder production and grazing, and backyard gardens. Water is also indispensable for purposes of health and sanitation as well as transport and access.

(a) Drinking Water

Access to safe drinking water in the Basin has dramatically improved in the past 20 years. Back in 1980, only 16% of its households drew water from faucets and 21% from deep wells (Table 3-23).The rest relied on sources considered unsafe such as shallow wells, dug wells, rivers and other open water sources. By 1990, the proportion of faucet users increased to 32% and to 39% by 2000.

Table 3-23 Sources of Drinking Water among Households, ARB, 1980-1990


Norte (%)

Agusan del Sur

(%)

Compostela

Valley (%) Total (%)

1980

Faucet 28 8 12 16Deep well 33 10 19 21Others 39 82 69 63Total 100 100 100 1001990




Between 1980 and 2000, faucet users increased by 23% primarily due to the establishment of 11 water districts in the Basin during the period. The proportion of the deep well users did not change much though.

Among the three (3) provinces, Agusan del Norte has the most faucet users (57%) while Agusan del Sur had the least (28%); the difference of which indicates the disparity in investment on safe drinking water. From 1980 and 2000, the relative increase of faucet users was highest in Agusan del Norte (29%), in contrast to only 20% in Agusan del Sur, and 24% for Compostela Valley. This trend tends to suggest a downstream bias in the development of safe water systems. This bias appears to have prevailed even as Agusan del Sur and Compostela Valley have always been identified with higher poverty incidence than Agusan del Norte.

It also seems that downstream and midstream sections are getting more drinking water for its requirements than upstream sections. All the four (4) barangays studied downstream and five (5) barangays midstream reported sufficient drinking water (Table 3-24). On the other hand, only 75% of households in the upstream reported the same. Nonetheless, barangays that reported sufficiency in drinking water constitutes 92% of the whole Basin.

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Table 3-24 Consensus on Sufficiency of Drinking Water ARB,

October 2005 (N= 19 Barangays)

Particulars Agusan del Norte Agusan del Sur Compostela Valley Total

Insufficient - - 25% 8%Sufficient 100% 100% 75 92Total 100% 100% 100% 100%

However, negative observations on the characteristics of drinking water were expressed in all barangays especially on water availability (Table 3-25). Meanwhile, among all barangays studied, those in Compostela Valley report the most problems in water availability and quality.

In the downstream, water availability fluctuates by time of day. For example, the piped system in some coastal barangays in Magallanes has water for only 1-2 hours a day. There are also barangays with too few sources. Households collect water from dug wells for bathing and laundry although these are shared with neighbours.

Table 3-25 Consensus on Drinking Water Characteristics ARB,

October 2005 (N= 19 barangays)

Characteristics Agusan del

Norte

Agusan

del Sur

Compostela

Valley

Water Quality

Unpleasant odour X Muddy and salty X Low quality XWater Availability

Limited to certain locations X Limited to rainy season X X Limited to certain hours of the day X Far from the source X X Limited number of sources X No source except rainfall X X X Dried-up sources XWater Demand

Increase in population X

In the midstream and upstream, water availability fluctuates by season (rainy versus dry season). In all sections of the Basin, there are barangays with no source of water at all except rainwater. Some water sources have reportedly dried up due to forest denudation and overdrawing. Others are simply contaminated due to poor maintenance. A river in the midstream is no longer used because of garbage thrown into it. Without any other source, the locals harvest rainwater from rooftops or buy water at PhP5.00-12.00 per 20-l container.

Observations on water quality also emerged in the down stream and upstream. Water supply tends to be muddy and salty in downstream while unpleasant in odour upstream. The latter is attributed mainly to natural mineral content, which turns water yellowish and smelly. Because of this, water from these sources is usually only for bathing and laundry.

(b) Irrigation Water

As of 2004, about 72% of rice lands in the Basin were already irrigated (Table 3-26), the largest of which are in Compostela Valley (79%), followed by Agusan del Norte (71%) and Agusan del Sur (69%).

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Table 3-26 Irrigated Ricelands in the ARB, 2004


Norte

Agusan del

Sur

Compostela

Valley Total

Total Riceland (ha) 23,414 43,175 23,475 90,064Area of Irrigated Riceland (ha) 16,557 29,595 18,561 4,713Irrigated Riceland to Total (%) 71 69 79 72

Source: Department of Agriculture

In spite of the relatively wide coverage of irrigation, irrigation water is judged insufficient in nine (9) barangays covered by the system and included in the barangay study (Table 3-27).

Table 3-27 Consensus on Sufficiency of Irrigation Water ARB,

October 2005 (N= 9 Barangays)

Particulars Agusan del Norte (%)

Agusan del Sur (%)

Compostela Valley (%) Total (%)

Insufficient 100 100 100 100Sufficient - - - -Total 100 100 100 100

Insufficiency is generally attributed to limited coverage of the system (Table 3-28). In others, the system is either non-existent or uncompleted. Interestingly, three (3) barangays (i.e., Maningalao, Consuelo and Bayugan 3) where the system is incomplete suffer from high schistosomiasis incidence. Health agencies consider earth canals as one of the prime habitats of host snails.

Table 3-28 Reasons for Insufficiency of Irrigation Water ARB,

October 2005 (N = 19barangays)

Reasons Agusan del Norte Agusan del Sur Compostela Valley

No irrigation system X X XLimited coverage X X X

(v) Health and Hygiene

(a) Health

The health-poverty link is well established in the ARB. The poor do not only live in conditions that make them more susceptible to diseases but have also little means to afford medical care. Health is particularly hard to maintain in the Basin considering its numerous endemic diseases such as schistosomiasis, malaria, filariasis, heterodiasis and leprosy. Schistosomiasis is generally water-borne. Although malaria and filariasis are mosquito borne, and heterodiasis is food-borne, their control largely rests on water management. As such, water management appears to be instrumental in controlling these preventable yet fatal diseases. Diarrhea is also a water-related disease prevalent in the area. The Basin also has an incidence of tuberculosis, which along with malaria, tend to occur in a national scale in the Philippines.

1. Morbidity

The leading causes of morbidity in the Basin and corresponding incidence rates in 2004 are in Table 3-29. About 4 of 10 major illnesses in the Basin tend to be water-related; namely, diarrhea, schistosomiasis, intestinal parasitism, and malaria. These illnesses tend to occur in all three (3) ARB provinces, although there appears to be notable conditions per province. Agusan del Sur tends to be the most aggravated especially with diarrhea and schistosomiasis, the latter notably high in the province compared to the others. Malaria occurs mainly in Agusan del Norte while

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intestinal parasitism is pervasive most in Compostela Valley. A brief assessment of several illnesses is in the succeeding.

Table 3-29 Morbidity (Per 100,000 population), ARB, 2004

Cause Agusan del

Norte

Agusan del

Sur

Compostela

Valley Average

Acute respiratory infection 375 818 470 554Pneumonia 541 - 240 260Intestinal parasitism - - 240 80Diarrhoea and gastro-enteritis 388 869 230 495

Hypertensive diseases 365 231 170 255Tuberculosis 93 112 90 98Schistosomiasis - 276 - 92Malnutrition - - 80 27Malaria 58 - - 19

Source: Provincial Health Offices in Agusan del Norte, Agusan del Sur and Compostela Valley

a. Diarrhoeal Diseases

As to morbidity, diarrhoea ranks high among the three (3) ARB provinces as it does nationwide. Diarrhea is the leading cause of illness in Agusan del Sur (869), second in Agusan del Norte (388) and third in Compostela Valley (230). On average, 495 cases of diarrhoea per 100,000 persons were reported in the Basin in 2004. Such high incidence is confirmed in the barangays studied. Diarrhea has been attributed to poor water quality and limited in two (2) barangays each in Magallanes and Las Nieves, and one in Bunawan. While considered prevalent throughout the year in Magallanes, the disease occurs mainly during the rainy season (December–March) in barangays found in the Agusan Marsh. In Compostela Valley, minerals in the water are blamed for diarrhoeal incidence, the most affected of which are children.

b. Endemic and Highly Contagious Diseases

Schistosomiasis. By 2004, schistosomiasis is the third ranked cause of morbidity in Agusan del Sur (276). Although not within the top 10 in Agusan del Norte and Compostela Valley, schistosomiasis incidence tends to be high in many places as those reported in barangays studied in Las Nieves. Higher infection rates were detected in the 5-14 years age group in Agusan del Sur although this may be due to closer surveillance. In these areas, the DOH is working with the DepEd to systematically monitor incidence among school children.

Agusan del Sur has reportedly the most number of identified snail colonies in the Basin. Contagiousness is high because the disease is contracted by mere skin contact with infected water. The increasing incursion of people into snail habitats and the corresponding reduction of its natural predators expectedly increase human risks.

Malaria. Malaria is in the top 10 causes of morbidity in Agusan del Norte (93), the province accounting to about half of all cases in the Basin. The hotspots are Buenavista and Las Nieves. Although malaria is not that prevalent in the other two (2) provinces, cases have been reported. In Agusan del Sur, some municipal health workers associate the upsurge of malaria cases with the presence of insurgents, hose frequent movement does not only put them at high-risk category but also makes them carriers of the disease.

Other Diseases. Intestinal parasitism that includes heterodiasis is the second leading cause of morbidity in Compostela Valley (240). Heterodiasis is brought about by the ingestion of worm-infected and half-cooked freshwater fish, molluscs and crustaceans. The disease has been reported in Agusan del Sur although it is not among its leading illnesses.

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On filariasis and leprosy, reported incidence is too low to be in the top 10. Filariasis though has been reported in barangays studied in Rosario and Bunawan. Studies have shown that filariasis infection is more predominant in areas with wide abaca and banana areas.

Among contagious diseases, tuberculosis is the most prevalent throughout the Basin and belongs to the top 10 illnesses in all three (3) provinces in 2004; the average incidence noted at 98 cases per 100,000 population. Agusan del Sur has the highest cases at 112 cases per 100,000 population.

2. Mortality

Diarrhoea and tuberculosis are preventable and curable diseases but in the Basin, these are leading causes of death. From 1999 and 2004, 5 deaths per 100,000 persons in the Basin have been attributed to diarrhoea and 15 deaths to tuberculosis (Table 3-30). Note, however, that among fatal disease, diarrhea is the only one water-related. Although endemic diseases have led to death, it could go unreported. If such death is reported, the cause can either be misdiagnosed or attributed to complicating diseases.

Table 3-30 Five-Year Mortality (Per 100,000 Population) ARB, 1999-2004

Cause Agusan del

Norte

Agusan del

SurCompostela Valley Average

Cerebrovascular/ Heart Disease/ Hypertension 62 46 92 67

Pneumonia 24 14 32 23Cancer, all forms 25 16 31 24Tuberculosis 13 7 25 15Accidents/violence 16 35 48 33Kidney disease 10 - 10 7Liver diseases 9 7 9 8Diarrhea - 6 8 5Malnutrition - 6 - 2

Source: Provincial Health Offices in Agusan del Norte, Agusan del Sur and Compostela Valley

It should also be pointed out that accidents and acts of violence are the 2nd most common cause of death for all three (3) provinces, the highest incidence recorded in Compostela Valley at 33 cases per 100,000 persons. This is suggestive of its relatively unstable peace and order climate, to include here the incidence of armed conflict between the government and insurgents, and social volatility in such areas as mining areas.

(b) Hygiene

The state of hygiene is a factor in the spread of both endemic and contagious diseases, and is reflected in the management of human waste, particularly with the use of toilets and type of toilet used. In the Basin, human waste management is critical indicator because it is an essential part in the lifecycle of schistosomiasis and heterodiasis-causing organisms.

The use of toilets in the Basin has improved in the last 20 years. Usage has increased from 88% of households in 1980 to 89% in 1990, and 94% in 2000 (Table 3-31). This translates to an expansion rate of 6% in toilet use over the entire 20-year period. By 2000, all three (3) provinces have high toilet use rates of 90% in Agusan del Sur, 92% in Agusan del Norte, and 96% in Compostela Valley. Compostela Valley noted the fastest expansion at 0.9% per year, compared to 0.7% in Agusan del Sur and 0.4% in Agusan del Norte.

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Table 3-31 Rate of Toilet Use of Households by Type of Toilet ARB,

1980-2000

ParticularsAgusan del Norte

(%)

Agusan del Sur

(%)

Compostela


1980

Water-sealed 73 44 39 52Pit Type 16 36 53 35Others 1 1 1 1None 10 19 8 12Total 100 100 100 1001990




As for the use of water-sealed toilets that are more sanitary than others, Agusan del Norte posted the highest at 80% in 2000. In relative terms, this appears significant considering the use rates of only 62% for Agusan del Sur and 67% for Compostela Valley. Agusan del Sur particularly stands out in not only having the lowest rate of toilet users but also of users of water-sealed toilets. It has also been outpaced by Compostela Valley in recent times considering that in 1990, Agusan del Sur had more water-sealed toilet users than Compostela Valley (55% versus 49%). Flooding in the area appears to have stymied wider use of water-sealed toilets thereby also defeating the purpose of containing human waste.

The need to manage human waste better in flood-prone and water-based settlements has been identified an urgent problem in barangays studied in Agusan del Sur. Households have exerted efforts to better manage their waste although the technology that suits their water-logged environment eludes them. Compounding this are the garbage and run-off coming from mining and plantation areas. Waste from animal farms, wood processing plants and even hospitals are also reported to find their way into their waterways. The absence of comprehensive Basin-wide solid and liquid waste management system has endangered not only its natural environment but also the lives of its people.

(c) Health and Development Interventions

Endemic and contagious diseases in the Basin are linked not only to poor sanitation but also to deficient environmental management. A development intervention without thorough understanding and consideration of the nature of these diseases can exacerbate their hazards and heighten human exposure. For instance, irrigation systems, if not managed well, can expand the colonies of schistosomiasis-hosting snails and breeding grounds of malaria vector mosquitoes. Meanwhile, road construction can bring in workers who can contract and transmit tuberculosis. Unfortunately, people who suffer the most when these hazards are exacerbated are also those beyond the reach of the formal health system. They happen to be the poorest of the poor whose only viable capital for development is good health.

Even those within the formal health system, however, are not guaranteed with adequate service. As one of the poorest regions, Caraga holds the third lowest spending on healthcare in the country. As of 2003, the region posted an average family annual health expenditure of

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PhP1,722.00. Region XI (Davao Region) is slightly better at PhP2,462.00 although both are still lower than the national average of PhP2,660.00 (NSO, 2003).

Sectoral projects that integrate various concerns are already being implemented in the Basin. Agreement exists among agencies to incorporate health in other government services. The DOH and NIA in Agusan del Sur is, for instance, working together to prevent further aggravation of hazards from endemic diseases arising from irrigation. Meanwhile, the DOH and DepEd are jointly engaged in disease surveillance among school children. More efforts in this direction have to be done to attain more integration in Basin development.

(vi) Use of Wood Resources

Together with land and water, forests complete the triumvirate forming the entire livelihood base of the Basin. The number of stakeholder groups dependent on forest products underscores its importance. This is the reason behind intense concern over forest destruction occurring throughout the Basin. The role of the forest in the day-to-day life of its inhabitants is essential, particularly manifesting in food preparation and shelter provision.

Wood and charcoal have always been the primary fuel used for cooking in the Basin, given an 89% usage rate among its households in 1980. At the provincial level, this translated to 90% of households in Agusan del Sur, 88% in Agusan del Norte, and 92% in Compostela Valley. (Table

3-32)

Table 3-32 Cooking Fuel of Households, ARB, 1980-2000


Norte (%)

Agusan del Sur

(%)

Compostela


1980

Wood or charcoal 88 90 92 89 Others 12 10 8 11Total 100 100 100 1001990

Wood or charcoal 84 91 85 87 Others 16 9 15 13 Total 100 100 100 1002000

Wood or charcoal 56 81 74 72 Others 44 19 26 28Total 100 100 100 100


In the recent past, however, the use of wood and charcoal has dropped Basin-wide to 87% in 1990 and 72% in 2000, or a decline of 17% over the 20-year period. Relatively, the largest decline of 32% was experienced in Agusan del Norte, notably from 88% in 1980 to 56% in 2000. Correspondingly, the decline in Agusan del Sur was only 9%, and 18% in Compostela Valley.

Similar trends show in the use of forest-sourced products for housing. In 2000, 66% of houses have walls of wood while 14% were made in bamboo, palm leaves and grass (Table 3-33). Only 10% combine wood with concrete. The use of wood for walling is most widespread in Agusan del Sur (78%), relative to Agusan del Norte (66%) and Compostela Valley (56%). Meanwhile, the use of non-wood materials such as bamboo, palm leaves and grass materials are most popular in Compostela Valley (22%), compared to Agusan del Norte (6%) and Agusan del Sur (10%).

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Table 3-33 Walling Materials Used by Households, ARB, 2000


Norte (%)

Agusan del

Sur (%)

Compostela


Bricks/Concrete 14 6 8 9Wood 66 76 56 66Concrete with wood 11 7 12 10Bamboo/ Sawali, Cogon/ Nipa 6 10 22 14Others 3 1 1 1Total 100 100 100 100


The use of forest products as cooking fuel and housing materials will persist in the next 20 years. With the forests their lifeline, the poor will continue to rely on these materials more than the rich.

(vii) Poverty

(a) Regional Level

The Basin is within two regions (Caraga and Region XI-Davao Region) where poverty is prevalent and worsening. The situation in Caraga is particularly dismal compared to Region XI, its poverty incidence of 43.7% in 2000 rising to 47.3% in 2003 (NSCB, 2004). Poverty in Region XI also worsened during the period but from a relatively lower level of 27.7% to 28.1%. As such, poverty incidence in Region XI is not as prevalent as in Caraga and its occurrence not as much.

The increase in poverty incidence tends to be marked by a decline in GRDP. From 2000-2003, per capita GRDP in Region XI and CARAGA also fell by almost 25% and 2%, respectively. One factor to the sharp GRDP fall in Region XI is the decline in agricultural production by nearly 40% during the period.

Caraga is identified as one of the most impoverished regions in the Philippines and has been so for a long time (NSCB, 2005). Between 1997 and 2000, the region had the fourth highest poverty incidence in the country with 50.2% of its population living below the national poverty threshold (Reyes and Valencia, 2004). Region XI, meanwhile, had only 36.5% of its population in similar situation. These figures indicate that although their respective poverty incidence worsened during 2000-2003, these two (2) regions were still better off than during 1997-2000.

(b) Provincial Level

Poverty incidence varies among provinces in the Basin. Recently, Agusan del Sur has the highest poverty incidence, with an estimated 60-78% of its families described as poor (UNDP, 2005). Agusan del Norte and Compostela Valley were both estimated as having 46-53% poverty incidence.

Taken from another view, though, based on the 12 poverty indicators of the Philippine Government, Agusan del Sur would be considered slightly better off than the two (2) other provinces (NSO, 2003). The indicators are categorized into three (3) types; namely, (a) survival indicators (e.g., health and power); (b) security indicators (e.g., housing and employment); and (c) enabling indicators (e.g., children’s welfare and support organizations). Being so, the indicators are actually wellness indicators, the degree of attainment of which shows the capacity to be free from poverty. Using these indicators, which would be referred to here as wellness indicators, Agusan del Sur has an average wellness rating of of 65.6% while Agusan del Norte and Compostela Valley have 65.1% and 65.2%, respectively (Table 3-34). Agusan del Sur scored highest in enabling indicators (62%), Agusan del Norte in survival indicators (71%), and Compostela Valley in security indicators (81%). The Basin in its entirety has a wellness rating of 65.2%, particularly on the aspect of security which implies that generally 74% of its population are enjoying security in housing and housing tenure as well as gainful employment of its household heads and other household members actually working.

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Table 3-34 Wellness Rating of Families by Wellness Indicators,ARB, 2002

Particulars

Agusan

del Norte

(%)

Agusan

del Sur

(%)

Compos

tela

Valley

(%)

Average

(%)

Survival Indicators

With access to safe water supply 84 68 68 73With sanitary toilet 89 89 96 91With electricity 72 61 66 66With access to health facility 39 30 41 37Sub-average 71 62 68 67

Security Indicators

With housing of strong materials 44 48 71 54With housing owned or owner-like possession 46 59 70 58With head gainfully employed 84 91 87 87With members 18 years old and over gainfully employed

96 96 96 96

Sub-average 68 74 81 74

Enabling Indicators

With children 6-12 years old in elementary school

93 92 89 91

With children 13-16 years old in High School 83 83 70 79With working children 5-17 years old 14 14 12 13With member involved in people’s organization 37 57 16 37Sub-average 57 62 47 55

Average 65.1 65.6 65.2 65.2


Other than the foregoing, available data suggests that the three (3) provinces in the ARB seem to be experiencing gradual albeit erratic improvement in living standards. This seems to be apparent in the ownership of household conveniences. In general, ownership of radios increased although at a slight degree only from 66% of households in 1980 to 67% in 2000 (Table 3-35). The same conservative trend is shows in vehicle ownership that increased from 5% in 1990 to only 8% in 2000. It is in television (TV) ownership that marked improvements were noted, from only 3% in 1980 to as much as 34% in 2000.

Table 3-35 Percentage of Households By Type of Conveniences Owned, ARB, 1980-2000


Norte (%)

Agusan del Sur

(%)

Compostela


1980

Radio 70 53 72 66Television 7 1 2 31990

Radio 65 47 65 59Television 23 7 10 13Vehicle 6 3 4 52000

Radio 73 61 70 67Television 47 26 28 34Vehicle 10 7 6 8


The pace of improvement varies by province. Between 1990 and 2000, television ownership improved at a faster rate in Agusan del Norte by as much as 2.4% yearly compared to 1.9% in Agusan del Sur and 1.8% in Compostela Valley. Vehicle ownership did not expand that much although the same rate of increase of 0.4% yearly for the two Agusan provinces is higher than in Compostela Valley (0.2%/year).

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The participants of barangay meetings naturally associated these conveniences and other assets with poverty and wealth. The poor are said to more likely have untitled land and work as daily wage labourers. They do not have farm machinery and rely on human labour to performance tasks. For example among poor farmers, threshing is done with the feet unlike those better off who rely on mechanical threshers. In other aspects, the wealthy tend to have access to domestic infrastructure such as piped water that assures them better heath and sanitation.

Those in the barangays also confirmed improvements of ways in life in the Basin by pointing out positive changes for the last 20 years. About 11 positive changes were identified mostly concerning public services (transportation, electricity, schools and water availability) and farming (irrigation, inputs and processing technology). (Table 3-35) In particular, greater access to safe water is noted in all three (3) sections of the Basin. Meanwhile, those in the midstream appear to have encountered the most improvements particularly related to farming (i.e., use and access to farm inputs) and essential infrastructure (i.e., electricity, roads other than clean water supply).

Table 3-35 Positive Changes Noted in the Past 20 Years in Studied Barangays, ARB, 2005

Changes Downstream Midstream Upstream

Positive

Improved transportation facilities X X Wider coverage of irrigation systems X Greater availability of electricity X X Greater number of schools X Greater coverage of roads X Greater access to cleaner water X X X Greater number of rice mills X Improved technology Increased farm production X Easier access to fertilizer X Wider use of farm machineries X XNegative

Higher cost of farm production X Lower rice yield Greater pollution X Higher threats of disease from mining X Lesser mangrove forests X Reduced fish stocks X Loss of native species of animals X

Conversely, negative changes have also been experienced; particularly with the depletion of natural resources, increase in pollution and its hazards, and the high cost of crop production. Those in the downstream likewise appear to have borne the lot of these negative changes.

Variation in the incidence of poverty among regions, provinces and households as well as its pace and pattern in the ARB indicates its complexity as an issue. Poverty, however, is definitely linked to access to natural resources and the ability to use these as assets in the most effective way. Users with greater economic, social or political weight tend to have more access to these resources, and influence more its management strategies. Meanwhile, users generally have different priorities. Those least able to argue their case or bring their needs to the attention of decision-makers happen to be the least well served. These are usually the poorest, and those disadvantaged by location or are difficult to target with development assistance due to cultural, physical, and social barriers such as indigenous peoples.

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(viii) Social Capital

A critical factor that enables the poor to survive poverty and even rise from it is social capital. It makes development happen even in places wrecked by violent conflict. In the Basin, this is seen in a network of community members who contribute their time and energy to pursue social and economic ends of a household or community. Such network operates in varying degrees.

The network operates a cooperative effort mainly to attain social ends. In all sections of the Basin, the barangays report a cooperative effort on social activities as well as economic activities, particularly on farming (Table 3-36). Such high level of cooperation in farming is particular dominant in the midstream where IP groups are a majority in the barangays. Such level of cooperation also shows in the downstream and upstream but at a lesser degree of 75% among its people in its barangays.

Table 3-36 Cooperative Efforts in Barangays, ARB, 2005

Activities Downstream

(N=4, %)

Midstream

(N=5, %)

Upstream

(N=4, %)

Average

(N=9, %)

Agricultural activities 75 100 75 83Social activities 100 100 100 100Giving credit or loan 100 75 50 75Deciding common property use 50 20 - 23Marketing farm products 50 40 25 38Accessing domestic water sources 50 40 - 30

Average 71 56 42 56

As to credit extension, the cooperative efforts of barangays in the ARB tend to vary. In the downstream, all the barangays note of cooperative efforts in providing credit to a household although the practice is followed by only 75% of barangays in the midstream and 50% in the upstream. The level of cooperation, however, tends to be substantially reduced as regards common property management (23%), agricultural marketing (38%), and water management (30%). These differences exerted by type of activity points out that there is an embedded local norm on when and where a cooperative effort can be expected. This norm must be learned and appropriately applied in planning and implementing projects requiring social mobilization.


�� The general conclusion made is that the social situation in the Basin has generally improved for the past 20 years and its characteristics strongly indicate high absorptive capacity for development. However, the doors have to be opened much wider for IP groups so that they can be uplifted with the general population using their own pace and path to development.

�� The migration-fueled growth rate diversifies population composition and turned the IPs from a majority to a minority. This trend also prompts them to let go of their hold of tracts of land in the Basin and resources in it.

�� The Basin has a number of formal primary stakeholder groups. Their participation though in basin management is barely tapped because of being largely unorganized in spite of their strong collective interest. These primary stakeholders can be fully utilized to become a force that may propel sustainable management of the Basin.

�� The standard of living in the Basin has generally improved although at a slower pace compared to the other parts of the country. This is seen in the rise of access to safe drinking water, use of sanitary toilets, literacy rate, educational level and even noted improvement in public services and livelihood technology. The clear task of any basin-wide initiative should hasten these positive trends, and at the same time evade its social costs.

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�� The rise of standard of living is apparently driven by natural resource use. Livelihood in the Basin is still mainly based in agriculture and forestry. This will continue in the future and strengthening resources management should sustained the livelihood systems that supports the very improvement of this living standard.

�� The poor are more dependent on natural resources than the rich not only for livelihood but also for day-to-day survival. The land and forest are their lifelines, but their use should be regulated.

�� The prevalence of endemic and contiguous diseases is another threat to living standard improvement. The physical condition of the Basin pose a unique challenge in managing these diseases and proper sanitation should be considered.

�� Poverty incidence varies by geographic location and sector. Households in the midstream and upstream are poorer than in the downstream. The households in the upland are poorer than those in the lowland. The indigenous household is poorer than the settler household.

�� The investment on safe water provision seems to favor households in the downstream area even though they are economically better off than those in the upstream and midstream. However, investments on irrigation water seem to be equitably spread.

�� Social capital is widely used in the Basin, being generally applied to activities with social ends. Among activities with economic ends, farming is considered an appropriate area for its application although varying by location and sector. Establishment of alternative livelihood projects, creation of employment opportunities in the lowlands and promotion of farming skills should be sustained.

�� The traditional resource use and management system of IP groups still operates but is weakened by years of outside incursion. This is the only system though where they can operate well. The strengthening of the traditional resource use and management system within the context of the CADC and CADT area management will be an indispensable component in upgrading resource management in the Basin.

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REVIEW AND ASSESSMENT OF RELEVANTPOLICIES AND LAWS


4.0 REVIEW AND ASSESSMENT OF RELEVANT POLICIES

AND PLANS

The macro environment confronting the ARB consists of a host of policies, laws and development initiatives on water resources development and management in the Philippines, including those affecting individual sector regimes such as environmental management, water rights allocation, water pricing, and funding. In essence, this macro environment serves to guide the application of the IRBM approach for the Basin keeping in mind the dictates of policy principles and caveats posed by experiences and attendant issues on river basin planning and management including opportunities identified from lessons learned and best practices from notable international and national projects.

4.1 INTERNATIONAL ORGANIZATIONS INITIATIVES ON WATER MANAGEMENT

There has been a broad global consensus to improve water management and sustainability, beginning with the Brundtland Commission Report, “Our Common Future,” in 1987, which raised the importance of water as a global issue.

The International Conference on Water and the Environment in Ireland in 1992 called for immediate action to reverse the trends of over-consumption, pollution and threats from drought and floods.

The World Council on Environment and Development (WCED) reached a consensus that modern water resources management should be based on four (4) fundamental principles (known as the Dublin Principles), which are closely related to the social, economic and environmental aspects of water. First, the ecological principle holds that water is a finite and vulnerable resource that is essential to sustain life, development and the environment; it argues for an ecosystem and basin-based rather than sectoral approach to water management. Second, the institutional principleargues that water management should be participatory involving users, planners and policy makers at the lowest appropriate level, including women. Third, the gender principle recognizes the central role of women in the provision, management, and safeguarding of water; and whose participation and empowerment would have to be incited through positive policies. Finally, the instrument principle argues that water is a social and economic good that should be valued in all its competing uses, with appropriate economic incentives to improve allocation and enhance quality.

The UN Conference on Environment and Development (UNCED) in Rio de Janeiro, Brazil later in 1992 prescribed integrated approaches to the development, management and use of water resources in Agenda 21. Watershed protection and management, which is a key to IWRM, is enshrined in Agenda 21 in it calls for sustainable management interventions for forest ecosystems and woodlands.

The momentum in the water sector was carried further by the World Bank (WB), the UN Development Program (UNDP), the Swedish International Development Agency (SIDA) and other institutions through the Global Water Partnership (GWP) in Stockholm, Sweden in 1996. In succeeding years until 2003, the World Water Council (WWC) conducted three (3) World Water Forums (WWFs), first in Marrakech, Morocco then in the Hague, Netherlands. The third WWF in Kyoto, Osaka and Shiga, Japan in 2003 identified the following key action areas to address water issues: (1) pro-poor water governance; (2) improvement of access to quality water services; (3) improvement of investments in water-using sectors that will improve access by the poor to economic and livelihood opportunities; (4) capacitating the poor to access and manage water resources; (5) improving the resilience of the poor to water-related disasters through preventive, adaptive and mitigation measures; and (6) community-based, participatory and shared management of water as a common resources.

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The Millenium Development Goals (MDG) is drawn from the United Nation’s Millenium Declaration in 2002. It is a blueprint agreed by the world’s countries and leading development institutions consisting of eight (8) measurable goals to achieve peace, security, human rights, fundamental freedom and sustainable development by the year 2015. Among the eight (8) millennium goals, the objectives related to the environment and with implications to water resource management are to reduce poverty, combat malaria and other diseases, stop the unsustainable exploitation of natural resources and reduce to half the proportion of people who have no access to safe, affordable water and adequate basic sanitation.

4.2 WATER POLICIES OF MULTILATERAL AGENCIES

The above global consensus on water and the environment is now reflected in the policies of most international agencies.

The Water Policy of the ADB, in particular, recognizes the relevance between water, poverty and the environment considering its primary mission of poverty reduction. The ADB Water Policy has the following principal elements: (1) promote a national focus on water sector policy and institutional reform; (2) foster the integrated management of water resources through water resource assessments and inter-linked water investments; (3) improve and expand the delivery of water services through irrigation, water supply and sanitation, emphasizing equity in access to water for the poor; (4) foster the conservation of water and increase system efficiencies; (5) promote regional cooperation and increase the mutually beneficial use of shared water resources within and between countries; (6) facilitate the exchange of water sector information and experience; and (7) improve governance through decentralization, research and capacity building.

In 1993, the WB endorsed a Water Resources Management Policy Paper (WRMPP). The Policy Paper defined the WB Water Resources Strategy (the Strategy), which focuses not on water-using sectors but on the connection between resource use and service management. The Strategy is comprised of: (1) an institutional framework (legal, regulatory and organizational roles of basin institutions); (2) management instruments (regulatory and financial mechanisms for water allocation, demand management, water rights and pricing); (3) the development and management of infrastructure (including water storage structures and conveyance, wastewater treatment, and watershed protection); and (4) the political economy of water management and reform (with emphasis on the distribution of benefits and costs).

Meanwhile, the Japan Bank for International Cooperation (JBIC) and Japan International Cooperation Agency (JICA), in line with its significant responsibility over Japan’s official development assistance (ODA) on the water sector, focus on initiatives that: (1) ensure sustainable supply of safe water; (2) promote IWRM; (3) conserve the environment by improving water quality; and (4) secure food through appropriate water use.

The Water for Life initiative of the European Union (EU) is in line with achieving the MDG of reducing poverty and improving access to water supply and sanitation. These goals are to be attained through integrated water resource management, better water governance arrangements and public-private partnerships.

4.3 NATIONAL POLICY OBJECTIVES

The development objectives for the Agusan River Basin vis-à-vis water resources must be consistent with many such initiatives to which the Philippines is committed. Presently, Philippine policy and action agenda on water and operational strategies on the environment (including watershed resources) are set out in the following context:

a) The Philippine Constitution (1987)

The national policy on water, as a natural resource, is enshrined in Section 2, Article XII of the Constitution, which insofar as pertinent, reads:

“All lands of the public domain, waters, minerals, coal, petroleum and other mineral oils, all forces of potential energy, fisheries, forests or timber, wildlife, flora and fauna, and other natural

4-2


resources are owned by the State. The exploration, development, and utilization of natural resources shall be under the full control and supervision of the State. In cases of water rights for irrigation, water supply, fisheries, or industrial uses other than the development of water for power, beneficial use may be the measure and limit of the grant.”

In similar vein, the Constitution declares State ownership of all watersheds based on the Regalian doctrine. As such, all watersheds in the country are considered inalienable in character and therefore cannot be legally privatized. The State also reserves the right for full control and supervision of the exploration, development, and utilization of watershed resources through its various instrumentalities.

b) Philippine Agenda on Sustainable Development (1996)

Philippine Agenda 21 is the nation's blueprint for sustainable development. Ecosystem-based action agenda are laid out in the document for forest and uplands, coastal and marine, urban, freshwater, lowland and agricultural, minerals and biodiversity. PA 21 also sets the stage for a paradigm shift in environmental governance, with emphasis on participatory decision-making and local-level implementation.

Water and environment-related objectives rank high in Philippine Agenda 21; those of which with relevant importance to the Project include, (i) ensuring sustainable utilization of the country’s natural resources such as forests, croplands, marine, and freshwater ecosystems; (ii) achieving and maintaining an acceptable quality of air and water; and (iii) enhancing access to safe and adequate water for domestic, agricultural and industrial uses.

c) Medium-Term Philippine Development Plan (MTPDP) 2004-2010

As a general strategy, the MTPDP espouses the adoption of the IWRM using ecosystem and watershed approach to optimize economic and social welfare without compromising the sustainability of vital ecosystems. This is consistent with the direction set by the 1995 Water Summit of the GOP for water resources planning and investment.

Specific water sector strategies are 2-pronged: (i) provision of potable water for the entire country by 2010, with priority given to “waterless” municipalities (i.e., areas with less than 50% water supply coverage); and (ii) ensuring clean water resources for the entire country through the full implementation of the Ecological Solid Waste Management Act (RA 9003) and the Clean Water Act (RA 9275).

Correspondingly, the environment sector will pursue ecologically sound development and management of natural resources according to five (5) major thrusts; namely, (i) sustainable and more productive utilization of natural resources to promote investment and entrepreneurship; (ii) promotion of responsible mining that adheres to the principle of sustainable development towards economic growth, environmental protection and social equity; (iii) protection of vulnerable and ecologically fragile areas, especially watersheds, forests and coastal ecosystems where biodiversity is highly threatened; (iv) creation of healthier environment for the population by protecting air and water resources; and (v) mitigation of natural disasters to prevent the loss of lives and properties. These thrusts are consistent with the 10-Point Agenda of the present administration. In the area of watershed management, the MTPDP has specifically set the target of characterizing priority watersheds and rehabilitating 115,777ha of degraded forestlands, which includes those found in the ARB.

4.4 SECTOR POLICIES

The realization of national development objectives on water resources development and management under a sustainability ethic are also being pursued in several sector policies. This move towards policy integration is evident in several policies discussed below although much remains to be done, for instance, in actual implementation and coordination, as will be tackled in the later assessment of existing administrative and institutional arrangements in the water resources sector.

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a) Environment and Natural Resource Sector

The 1995 Philippine Water Summit signalled the shift in government planning and investments in the direction of IWRM. DENR made a corresponding paradigm shift from forestry and timber production to integrated ecosystems management that encompasses watersheds, protected areas and coastal resources within the context of hydrological or river basin boundaries.

In 1998, the “Philippine Strategy for Improved Watershed Resources Management (PSIWRM)” was released, which laid out the basis for sustainable watershed management. The PSIWRM specifically enunciated the need for a demand-driven and community-based approach to watershed management, where the former is determined by national priorities and concerns while the latter involves participation of direct stakeholders in plans, decisions and actions in using local watershed resources. As such, the strategy runs in parallel with IRBM where a bottom-up participatory approach is critical to ensuring sustainability of management processes. In 2004, Executive Order No. 318 entitled “Promoting Sustainable Forest Management in the Philippines” was enacted.

Meanwhile, in relation to institutional incapacities that are weakening effective policy implementation and streamlining of development efforts, the World Bank’s “Country Water Resources Assistance Strategy for the Philippines” (2003) is prescriptive in stressing the need to address the fragmented and uncoordinated management of water by too many agencies and sectors.

b) Agriculture Sector

The Agriculture and Fisheries Modernization Act (AFMA) is the flagship policy of the sector. It aims to modernize agriculture and fisheries development through sustainable use of natural resources and technological innovations in support of industrial development. The strategy is to delineate Strategic Agricultural and Fisheries Development Zones (SAFDZs) in appropriate rural areas throughout the country, which shall serve as centers to catalyze agriculture and fisheries development in environmentally and socio-culturally sound manner. The protection of watersheds is a salient component of the strategy to support the sustainability of water resources for the SAFDZs.

c) Industry and Service Sector

The groundwork for private sector participation in environmental management was laid out in Business Agenda 21, which was adopted by 83 major industry associations. Environmental self-governance is extended to encompass, apart from large industries, small and medium enterprises (SMEs), the latter governed by the Magna Carta for Small Enterprises (RA 6977).

The revitalization of the mining industry is now being pursued by the government; with emphasis on environmental sustainability through the EO 270 of 2004 or the National Policy on Revitalizing Mining in the Philippines and its Minerals Action Plan (MAP). Enforcement of such policy is vital in executing effective forms of control to avert further adverse environmental and social consequences that have long been associated with poorly regulated large and small-scale mining operations in the country.

4.5 REGULATORY FRAMEWORK

The Philippines has an extensive body of water and other related legislation and regulations providing legal bases for policies and programs on water utilization, management, and rehabilitation in the ARB; including those regarding administration and governance, water pricing and water rights, investments, and human development. There are various cases demonstrating how the extensiveness of such laws will effectively ensure the welfare of water and related resources.

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a) Resource Development and Environmental Management

The basic law of the land, the 1986 Philippine Constitution, explicitly recognizes water as a natural resource and lays down the basic legal framework for environmental governance in the country. Its Section 16 stipulates that the State shall protect and advance the right of its people to a balanced and healthy ecology, the protection of such right reinforced by the Philippine Environmental Policy (Presidential Decree No. 1151) of 1978.

Specific laws translate this basic right to the unique and special utilization of water resources including forest and watershed resources and thus combined, form an existing legal framework encompassing basin resources.

The Water Code of the Philippines (PD 1067, 1976) is the basic water law of the Philippines. It is anchored on the principle that all waters belong to the State. In an earlier law; namely, Article 501, Section 1 (Ownership of Waters) of the Civil Code of the Philippines (RA 386, 1949), the public nature of water resources have been so defined to cover: (i) rivers and their natural beds; (ii) continuous or intermittent waters of springs and brooks running in their natural beds and the beds themselves; (iii) waters rising continuously or intermittently on lands of public dominion; (iv) lakes and lagoons formed by Nature on public lands, and their beds; (v) rain waters running through ravines on sand beds, which are also of public dominion; (vi) subterranean waters on public lands; (vii) waters found within the zone of operation of public works, even if constructed by a contractor, (viii) waters rising continuously or intermittently on lands belonging to private persons, to the State, to a province, or to a city or a municipality; and (ix) the waste waters of fountains, sewers and public establishments.

Under the basic premise of the Philippine Water Code, waters in the country are not subject to acquisitive prescription. The State may allow the use or development of water by administrative concession, but the utilization, development, conservation and protection of water resources shall remain within the control of and regulation by government. National control is further legitimized under the Public Service Law (Commonwealth Act No. 146, 1936), which prescribes the level of equity ownership by Filipino nationals in corporations dealing with the operation of certain public utilities. The law sets such ownership to at least 60 per cent of the capital stock of such corporations. Water distribution and sewerage systems are utilities that are classified covered by the citizenship requirement under the Act.

For forest resources and watersheds, the Revised Forestry Code (PD 705, 1975) presently serves as the basic governing law. The law essentially prohibits the categorization of watersheds as alienable and disposable and so becoming private lands, and bans logging activities in critical watersheds. Critical watersheds have been correspondingly defined as those drainage areas of river systems supporting existing and proposed hydroelectric and irrigation works, and requiring immediate rehabilitation from long-time and rapid denudation activities. On this account, the ARB qualifies as a critical watershed requiring serious attention in development planning.

Similarly, the criticalness of upland and forest resources to the point of endangering endemic flora and fauna as well as traditional cultures and livelihoods is behind the enactment of the National Integrated Protected Areas System (NIPAS) Act (RA 7586). The Act declares it a policy of the State to secure for the Filipino people of present and future generations the perpetual existence of all native plants and animals through the establishment of a comprehensive system of integrated protected areas within the classification of national parks. The ARB is part of this system of protected areas as such the disposition of its natural resources faces certain limitations particularly as to their social and environmental implications.

A related law, meanwhile, specifically addresses the plight of indigenous cultural communities/ indigenous peoples (ICCs/IPs) that are a significant yet vulnerable sector in the ARB. The law recognizes the traditional rights of IP groups including their rights of access and utilization of ancestral lands and natural resources in situ as well as their key contributions in participatory processes. The Indigenous People’s Rights Act or IPRA (RA 8371, 1997) promotes the rights of IP groups within the framework of the Constitution, as follows:

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�� The State shall recognize and promote the rights of the ICCs/IPs within the framework of national unity and development;

�� The State shall protect the rights of ICCs/IPs to their ancestral domains to ensure their economic, social and cultural well-being and shall recognize the applicability of customary laws governing property rights or relations in determining the ownership and extent of ancestral domain

Under the law, IPs possess rights and responsibilities that also inform on how to harness their involvement in participatory processes espoused under IRBM for the ARB:

�� Right to develop lands and natural resources inside their ancestral domains; �� Right of ownership over ancestral lands, bodies of water traditionally and actually occupied by

them, including traditional hunting and fishing grounds; �� Right to stay in their territories; �� Right to safe and clean water (with the law providing for their access to integrated systems for

the management of their ancestral waters and air space); and, �� Duty to maintain ecological balance by protecting flora and fauna, watershed areas and other

reserves inside their ancestral domains

As for rehabilitating and preserving the environmental values of basin resources, the Philippine Environmental Code (PD 1152, 1978) has since provided the basic guidelines for protecting and improving the quality of water resources while also defining the guidelines for surveillance and mitigation of pollution incidence. In particular, the Pollution Control Law (PD 984, 1976) has been enforced and contains guidelines for the control of pollution from industrial sources and sets penalties for violations.

Accordingly, national water classification and water quality standards have been defined in the following issuances:

i) DENR Administrative Order (DAO) No. 34 of 1990 contains a water classification system based on “beneficial use”, arranged in the order of the degree of protection required. Class AA (public water supply) and SA (waters suitable for fisheries production, national marine parks and marine reserves and coral reefs, parks and reserves) have generally the most stringent requirements. Under this system, Upper Agusan River is classified as Class “A” water and Lower Agusan River as Class “C” water by DENR in 1996 by virtue of Memorandum Circular 97-08.

ii) DAO No. 35 of 1990 prescribes the maximum limit of municipal and industrial wastewater effluent discharges into waters according to their classification. Both water quality and effluent standards are given for conventional and other pollutants affecting aesthetics and oxygen demand as well as heavy metals and other toxic substances.

Concerns on water as a finite resource, and the impending rise of chronic water shortages brought about by dwindling supply amidst increasing demand and declining quality has in recent times spurred important legislation to arrest these trends. These legislations are likewise relevant in perhaps stating the inter-connectedness and thus integral unity of basin resources that, although not absent in spirit, are not that explicitly recognized in previous policies.

The National Water Crisis Act (RA 8041, 1995) set out the urgency of water reforms in the Philippines, the government under the Ramos Administration framing these in response to a water crisis. Supported initiatives not only encompassed the supply, distribution, finance, and privatization of state-run water facilities but also the protection and conservation of watersheds and the waste and pilferage of water.

In time with RA 8041 is the Build-Operate-Transfer (BOT) Law (RA 7718, 1994), which recognizes the important role of the private sector as the main engine for national growth and development, and provides appropriate incentives to mobilize private resources for financing the construction, operation and maintenance of infrastructure and development projects normally financed and undertaken by the Government. These incentives extend to financial incentives,

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some of which are already available under existing laws. The law created an atmosphere of minimum government regulation and systematic procedures and defined government undertakings in support of the private sector. Under this law almost all development projects, including water supply and related investments such as hydropower, may be prosecuted through the build-operate- transfer (BOT) scheme.

The Clean Water Act (RA 9275, 2004) was later enacted, a landmark law on comprehensive water quality management that set the stage for formulating an Integrated Water Quality Management Framework with defined water quality goals and targets and water pollution control strategies and techniques. Within the context of IRBM, the law calls for the designation of water quality management areas using physiographic units such as watersheds, river basins or water resource regions and the preparation of a corresponding 10-Year Water Quality Management Area Action Plan. It also mandates the preparation of a national program on sewerage and septage management and the provision of domestic sewage collection, treatment and disposal throughout the country.

b) Administration and Governance

The National Water Resources Board (NWRB) is the principal entity vested with authority over water resources in the country. Presidential Decree No. 424 (NWRC Charter) created the National Water Resources Council (now Board) to coordinate and integrate water resources development of the country within the context of national plans and policies for social and economic development.

It was by virtue of Executive Order No. 124-A (1987) that the NWRC was reorganized and renamed into NWRB. The same law abolished the Rural Waterworks Development Corporation (RWDC), created in 1980 to provide water supply services in rural provincial areas not covered by the Local Water Utilities Administration (LWUA) or the Metropolitan Waterworks and Sewerage System (MWSS).

Water resources management in the Philippines is 3-tiered comprising mainly of: (i) watershed management; (ii) water resources planning; and (iii) water quality and sanitation. While under the DENR, the NWRB shares the task of water resources planning with various other entities (i.e., GOs and provincial governments) at the national, provincial and sub-sector levels. This is enough to suggest at this stage the intricateness by which decisions are made but as well as the tendencies towards slow and delayed responses common in multi-representative planning bodies.

Several legislation, while aiming for decentralization and organizational strengthening, tends to enhance the diversity and as such, complicatedness of administration and governance in the water resources sector.

The formation of water districts (WDs) have been ordered under the Provincial Water Utilities Act (PD 198, 1973), which declared a national policy in favor of the local operation and control of water systems in provincial areas outside Metro Manila, with WDs authorized to operate and administer water supply and wastewater disposal systems in local communities. The Act also served as the charter of LWUA, the agency on the national level entrusted with the promotion, development and financing of such water districts and other local water utilities.

Meanwhile, the Local Government Code of 1991 effected decentralization of a broad scope of powers and functions from the central government to local government units (LGUs) consistent with the policy of developing autonomous and self-reliant LGUs. The Code devolved several aspects of governance and the delivery of basic services in health, food, and water. The Code specifically grants LGUs responsibility over the development of surface and groundwater resources within their boundaries and in some cases have been utilized as the legal basis for the charging of user fees in resource use.

c) Water Pricing

Policies on water pricing are enforced by at least five (5) entities in the Philippines, with authority derived from different decrees and executive orders. These lead to differences in application and

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parameters, which are also tied with the nature of water environments concerned and jurisdictions.

At the national level, the NWRB collects charges for water permits and annual water charges based on existing water extraction rates imposed by it. Article 83 of the Water Code mandates the NWRB to levy ‘reasonable fees or charges from water appropriators, except when it is for purely domestic purposes.’

Other than the NWRB, the Laguna Lake Development Authority (LLDA) and DENR also enforce their own forms of water pricing. From PD 813 as amended and EO 927 (Section 2), the LLDA exercises exclusive jurisdiction over the Laguna de Bay Basin in the issuance of new permits for projects or programs involving the use of its surface waters, in imposing necessary safeguards for the control and management of lake water quality, including the collection of necessary fees. EO 192, on the other hand, grants DENR the right to charge and collect fees related to environment and natural resource extraction, including the setting of effluent charges and abstraction fees.

Water pricing may likewise be exercised at the local level, with WDs mandated by PD 198 (Section 39) to adopt and levy groundwater fees for any other entities making use of groundwater in their service areas. Meanwhile, LGUs could also impose fees for water resource extraction (e.g., charges on ground and surface water extraction exacted by the Provincial Council of Laguna), with the 1991 Local Government Code being used as legal basis for the setting of fees for resource extraction.

More needs to be accomplished when it comes to water pricing, especially for raw water. Further interventions are needed in the aspects of:

i) Developing a rational system for pricing the need for raw water that takes account of economic, environmental and social equity considerations;

ii) Incorporating cost recovery as a major basis for raw water charging, particularly reflecting the enforcement and administration of water rights, assessment of collection of raw water fees, and data collection and management;

iii) Reflecting opportunity or scarcity costs in raw water charges to serve as a check against over-consumption, especially in light of multiple values accorded to various uses of water (e.g., irrigation water lower-priced than domestic water);

iv) Piloting raw water pricing within a river basin context, as a way of testing raw water pricing methodologies and instituting actual administrative procedures in assessment and collection; and,

v) Resolving conflicting claims among various entities authorized to charge for raw water abstraction, particularly in the areas of fee setting and collection, management, and regulation.

d) Water Rights Administration

The administration of water rights in the country is still governed by the Philippine Water Code and under the jurisdiction of the NWRB. The permitting system, however, is far from perfect in the light of weaknesses traced to systematic and institutional factors associated with resource constraints, bureaucratic red tape, conflicts of interest, low awareness on the importance and process of permitting, and weak enforceability.

The same Water Code allows for the transfer of water rights but only in the context of change in occupancy or ownership of the property where water is used, or in the ownership of wells. Its implementing rules and regulations, however, are not specific enough to effect water rights transfer in the form of a ‘trade’ or exchange where transactions related to the acquisition, compensation or revenue generation could be effected to realize efficient and high-value utilization of water.

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Under this setting, the transfer and trade of water rights in the country would have to be addressed by initiatives, among others, dealing with the:

i) Establishment of clear guidelines on the possession and transfer of water rights, including the development of appropriate regulatory and institutional frameworks;

ii) Formulation of guidelines on the possession and transfer of water rights at the LGU level particularly as regards the exploitation of new water sources, and its administration and management, as well as the negotiation on such issues as fair compensation to the rights-transferring LGU and certainty of use rights by the purchasing LGU; and,

iii) Piloting of new water source development involving the transfer of water rights between LGUs with the end in view of developing a body of principles and procedures from where such practice could be founded and improved in the course of implementation

4.6 REGIONAL AND PROVINCIAL POLICY OBJECTIVES AND TARGETS

Other than the above national policies, progress in both Caraga and Davao Regions (representing the 3 provinces and 1 city scoping the ARB Master Plan) are also guided by agro-industrial and environmental policies advocating economic growth within the framework of sustainable development espoused under the 2004-2010 MTPDP. These policies tend to acknowledge critical development needs in sub-basins of the ARB and in some aspects, are setting action agenda consistent with the IRBM development framework. Corresponding regional and provincial development programs, however, tend to overlap in priorities and in some aspects, raise confusion on the geographic scope and development thrusts of provinces and cities being covered.

4.6.1 Caraga Region

(a) Caraga Regional Development Plan for 2004-2010

The development vision for Caraga as stated in the Caraga Regional Development Plan for 2004-2010 is, “With the blessings of Divine Providence, Caraga by the year 2010 will be equitably wealthy, integrated to the global economy and in full harmony with nature.” Such vision homes in with its goal of becoming the Fishery, Agri-Forestry, Mineral and Ecotourism (FAME) center of the country by 2010. Principal objectives include supporting eco-tourism and revitalizing the mining industry given its competitive advantage of having abundant gold and nickel ore reserves. Another is by tapping the agriculture, forestry, and fisheries (AFF) sector in its export trade strategy. Related to this is the development of the Industrial Tree Plantation Corridor pursuant to DENR Administrative Order No. 99-13. Mining and AFF sectors cover development programs that would scope strategic areas in the middle catchment of the Basin, notably in Agusan del Sur. To this end, the Plan prescribes strengthening of the adoption of “co-management” of natural resources and watershed management planning.

Specifically for physical planning and sustainable environmental management, the strategic framework employed is polycentric development wherein a number of urban and rural growth centers are connected to form a strong competitive network that can sustain and promote businesses, services and facilities. Two (2) strategic places/zones in the region will be connected or linked together forming a network, namely: Strategic Economic Development Zones and Strategic Tourism Development Zones. South Caraga Tourism Zone, which covers the Agusan Marsh Eco-Tourism Sub-Zone, is identified in the Plan.

Regional spatial organizations based on a balanced network of provinces/cities or local government alliances shall also be formed to serve as building blocks (basic elements) of regional polycentric development. Three of the 12 alliances identified relate to the Agusan River Basin; namely, 1) Agusan Marsh Development Alliance comprised of Bunawan, La Paz, Loreto, Sta. Josefa, Veruela, San Francisco, Talacogon and Rosario of Agusan del Sur; 2) Lower Agusan Development Alliance (LADA) composed of Butuan City, Magallanes and Las Nieves of Agusan del Norte; San Luis and Esperanza of Agusan del Sur; and 3) Agusan del Sur Growth Diamond consisting of Bayugan, San Francisco, Talacogon, and Trento of Agusan del Sur.

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To support its spatial strategy, the three (3) cities and four (4) provinces in the region pursue specific functional roles as their contribution to the achievement of the vision. In particular, Agusan del Norte pursues the functional role as the agri-processing zone and site of industrial estates and agri-processing centers, while Agusan del Sur serves as the agri-forest processing zone and the food basket of the region.

Among the notable policy measures to be undertaken are the institutionalization of the Regional Sustainable Agriculture Land Use Plan (RSALUP), rationalization of development activities in critical watersheds, and resolution on the conflicting uses within protection and production land areas.

Relevant priority programs and projects that would be pursued to achieve the long-term goal of the region are the Comprehensive Land Use Updating, Completion of the Provincial Physical Framework Plans (PPFPs) and the Regional Physical Framework Plan (RPFP), institutionalization of the Regional Sustainable Agriculture Land Use Plan, Agusan Marsh Development and Management Program, and Agusan River Basin Integrated Development Project.

(b) Comprehensive Provincial Land Use Plan/Provincial Physical Framework Plan of

the Province of Agusan del Norte (1993-2002)

The Plan outlines directions for future land use and physical development of Agusan del Norte as part of the Agusan River Basin Sub-Region, which is one of four (4) growth cores identified for unified development of Northern Mindanao. The other growth cores are the Macajalar Bay Sub-Region; Pacific Coast Sub-Region; and Panguil Bay Sub-Region

Agusan del Norte is envisioned to contribute to the development of Northern Mindanao as a major agri-industrial center of the Philippines through: (i) socio-economic growth and welfare improvements based on expanded agri-forestry production, wood-based industrial processing and trade, rationalized mineral extraction and processing; and enhanced food and commercial crop production; (ii) provision of basic needs/services and homegrown livelihood opportunities for poverty reduction; and, (iii) improved peace and order conditions through the provision of livelihood-based reform programs for insurgents (e.g., development and support for livelihood communities).

Under these objectives, the physical development plan for Agusan del Norte bolsters its being named as the center of agri-industrialization in the entire Caraga Region. There is concern, however, on the possible confusion created by its membership within a growth sub-region of Northern Mindanao under such framework plans. This inasmuch muddles geographic identity other than possibly sowing inefficiencies in resource and funding allocation.

(c) Agusan del Norte Environmental Management Plan (1999)

The 2-volume EMP of Agusan del Norte has gained urgency in the light of its approval as the Special Economic Zone of Caraga and the completion of its Provincial Physical Framework Plan. Its long-term vision is “…an ecologically balanced environment where natural resources are sustainably managed by an empowered citizenry for the general well-being of the populace”.

In relation to the vision, the provincial EMP enumerated five (5) interdependent goals as follows: (i) increased food production; (ii) abundant aquatic resources; (iii) productive forest resources; (iv) a clean and safe environment; and, (v) strong partnership among the government, private sector, and local communities. These goals are set within a context though of resource competition where identified stressors/problems/constraints to sustainable development tend to stem from conflicting priorities in resource development; that in turn bring about adverse consequences to these very resource ecosystems. The occurrence and nature of environmental problems in upland, lowland, and coastal areas imply inter-connectedness and as such, any tension occurring in one ecosystem likewise manifests in the other. Illegal logging and mining activities in upstream areas in Davao del Norte and Compostela Valley, for instance, generate pollution and sedimentation downstream while coastal areas are at risk of industrial wastes generated in key cities such as Butuan.

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As such, the goals above-stated would have to be pursued both with promise and caution in light of limiting conditions imposed on one by the other. Thus, general strategies to achieve these goals tend to center on corrective and proactive measures dealing with: (i) resource enhancement, involving reforestation and mangrove redevelopment, delineation/ protection/ management of ecologically critical areas, soil and water conservation; land use planning and zoning; promotion and support of alternative income sources and livelihoods; and waste minimization; (ii) strengthened enforcement of environmental laws and regulations; (iii) education on environmental concerns; (iv) capacity building for LGUs on the management of environmental programs; and, (v) establishment of systems and structures for harnessing stakeholder participation.

Based on the procedures adopted for identifying its priority projects for 1999 to 2003, the Agusan del Norte EMP was able to elaborate on a project selection process as well as institutional arrangements for plan implementation that involved municipal and provincial LGUs including staff of devolved NGAs (e.g., DA and DENR). This involved the creation of a provincial policy-making body and a technical working group to provide secretariat support. The structuring of EMP implementation is informative of initiatives to foster province-wide cooperation and coordination as well as common direction setting in light of shared resources as the Agusan River and its watersheds.

(d) Comprehensive Provincial Land Use Plan/Provincial Physical Framework Plan of

the Province of Agusan del Sur (1993-2002)

From its physical plans, it appears that similar to Agusan del Norte, Agusan del Sur is also aiming towards agro-industrialization, a goal contingent on the judicious utilization of its vast agricultural land and other physical resources. At first glance, this agro-industrialization strategy appears inconsistent to its being regarded as the ‘food basket’ of the Caraga region, which entails protection and/or rehabilitation of food production areas at the expense of commercial production that is, on the other hand, expanded under the former.

For spatial development, the Preferred Strategy involving the promotion of the Agusan del Sur Growth Diamond is adopted; a strategy so named after combining the merits of three (3) alternative spatial strategies (i.e., 2000 trend, rural-focused strategy and IAD Approach). The Agusan del Sur Growth Diamond is the figure formed after connecting the locations of its five municipal centers; namely, Bayugan, Prosperidad, San Francisco, Trento and Talacogon.

The Settlement, Land Use, and Infrastructure Plans for the province are contextualized within the ethic of appropriate land use for better environmental management and enhanced social wellbeing. Social objectives are particularly oriented towards employment generation and improved access to infrastructure facilities and support services.

Overall, the Plans advocate for better utilization and management of land resources especially as regards critical environmental areas. In particular, land-oriented goals tend to reinforce the food production capacity of Agusan del Sur by dealing with: (i) further identification and delineation of production and protection areas alongside reclassification of land use in some areas; and, (ii) conservation of highly suitable agricultural lands, or those with high nature conservation value, or with extractives or mineral resources. The agro-industrialization strategy, in this case, is founded on rational mineral production and enhancement of food production for export.

Plan implementation is likewise founded on the institutional goal of improving and strengthening the capacity for people empowerment by establishing strong linkages between the government sector, and the non-government sector including other people’s organizations.

(e) Forest Land Use Plan of Agusan del Sur (1997-1998)

While Agusan del Norte has an EMP for its river and watershed resources, so does Agusan del Sur have a land use plan for its forestry resources. Its Forest Land Use Plan is the product of a planning exercise conducted as a capability program for provincial and municipal governments with corresponding technical assistance and funding support. The program essentially applied

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forestland use planning guidelines developed by the Natural Resources Management Program (NRMP) of the DENR.

The development context of the Forest Land Use Plan of Agusan del Sur actually weaves the existence and potentials its forest resources with that of the Agusan River and Agusan Marsh thus imparting an understanding of their inter-connectedness and significant inter-relationships to realizing overall sustainability. Such is embedded in its development goals and objectives, which recognized the importance of protecting forestlands: (i) in its natural state, from destructive settlement and farming practices; (ii) given the water-generating capacity of critical watersheds for irrigation and domestic use; and (iii) for its productive capacity, in being the source of food, wood and raw material requirements. Accordingly, the Plan elaborated on three (3) primary uses of forestlands in Agusan del Sur as follows: 1) Strict Protection areas, 2) Restricted Use areas, and 3) Production Areas. The Forest Land Use Plan contained thematic maps, matrix of issues, and proposed land use map for each of 13 planning units determined mainly on a watershed basis such as Wawa and Andanan Watersheds, Gibong Watershed, Simulao Watershed, Logum-Baobo Watersheds, Ihaoan Watershed, Umayam Watershed, Adgaoan Watershed, Kasilayan Watershed, Libang-Maasam Watershed, Ojot-Pusilao Watershed and Agusan Marsh.

4.6.2 Davao Region

(a) Davao Regional Development Plan (2004-2010)

The twin environmental objectives of the Davao Regional Development Plan (2004-2010) to which Compostela Valley is part of are: (a) to improve physical planning and sustainable management of the environment and (b) to improve environmental quality and harness its abundant natural resources.

Among the six regional development challenges and opportunities for improved physical planning and sustainable management of the environment is declining environmental quality and rich biodiversity and forest resources. Davao Region is reportedly hosting a number of hazardous waste generating industries while also serving as the home of13 identified NIPAS Areas where varied and unique habitat types cover a wide range of endemic species of flora and fauna.

The strategic framework for improved physical planning and sustainable management of the environment entails strategies to be undertaken in order to promote sustainable management and use of natural resources. These are: 1) strengthened implementation of SAFDZs and Community-based Forest Management (CBFM); 2) watershed reforestation/ rehabilitation and improvement of watershed management practices in order to maintain surface and groundwater quality; 3) renewed implementation of the AFMA, Fisheries Code, National Integrated Protected Area Systems (NIPAS) Law, Wildlife Resources Conservation and Protection Act (RA 9147), Clean Air Act, Ecological Solid Waste Management Act and Hazardous Waste Management Act; 4) harnessing of protected areas for eco-tourism; 5) management and protection of Davao Gulf; 6) rehabilitation of Mt. Diwata and its environs; and, 7) alleviation of urban migration with aiming programs aimed towards invigorating local economies to reduce migration tendencies and encourage migrant return

(b) Compostela Valley Provincial Comprehensive Development Plan/Provincial Land

Use Plan/Provincial Physical Framework Plan for 2000-2010

Its development vision as contained in its Provincial Comprehensive Development Plan/Provincial Land Use Plan/Provincial Physical Framework Plan for 2000-2010, is “Compostela Valley is a dynamic, empowered and God-loving province where citizens enjoy a better quality of life, with security and equal access to economic, social opportunities and infrastructure programs/ services, within the context of responsive governance, participatory democracy and sustainable development anchored on principled leadership.”

Development policy is translated in 17 development thrusts, those of which with relevance to IRBM are as follows: (i) poverty reduction; (ii) enhancement of agricultural development and achievement of food security; (iii) provision of a balanced, healthy, safe and clean environment;

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(iv) provision of sufficient potable water supply, power, communication, transportation facilities, drainage and sewerage, and solid waste disposal systems; (v) support to cultural indigenous people and promotion of cultural heritage; and, (vi) provision of equal opportunities and access to both men and women in the management of resources.

Overall, the review of policies and plans of regions and provinces covered by ARB Master Plan revealed several relevant features of development priorities and directions with significant implications to IRBM planning and implementation:

�� It is critical for the master planning of ARB to be consistent with the respective land use and physical framework plans of concerned municipalities and provinces. Challenges to distributional efficiency of resources and funding, and the exercise of accountability of concerned LGUs tend to arise from the muddling of geographic boundaries as some growth zones are delineated in ways inconsistent with established regional classifications. This is illustrated by the established inclusion of Agusan del Norte within Caraga in the regional plan, while considered part of the Agusan River Basin Sub-Region of Northern Mindanao in its physical framework plan.

�� Strategies on agro-industrialization as against food production and environmental management tend to conflict particularly on how land, forest, and water resources would be utilized in the face of pollution, physical destruction, and declining quality. Growth strategies while calling for rational management and utilization cannot help but be impeded by environmental problems that justify rehabilitation and protection first to sustain growth in the long term.

�� While the inter-relationships and interactions among land, water, forest and other resources surface, these are not explicitly stated or given emphasis as part of an integrated approach to development, with the exception, for instance, of the Agusan del Sur Forest Land Use Plan that was able to drive on the importance of protecting forests and watersheds to sustain total environmental integrity and the total needs of peoples and local economies. Nevertheless, such recognition, albeit, in one sector and partly with the EMP of Agusan del Norte is a start to inculcating holistic perspectives to planning that is critical to driving the IRBM philosophy in the ARB.

�� Sector approach to development planning is still very much entrenched with little or no reference made in regional or provincial plans of critical interfaces or convergences (e.g., resource use for economic growth and state of environmental resources). Mining, for instance, is poised with uncritical acceptance as a principal development strategy in almost all regional and provincial plans as if ignoring the inter-dependence of economic and environmental sectors (and all sectors that is), and the current stresses to sustainable development of current mining practices and operations in the Basin.

�� Institutional processes and arrangements would need to transcend the intra-provincial to work towards unified development vision at an inter-regional scale. Except for the Agusan River Basin Integrated Development Project, which is still in the pipeline, unity in recognition of shared boundaries and resources within the Agusan River Basin has yet to be openly espoused. The pursuit of localized development is understandable under decentralized governance; and existing individual natural resource or environmental goals are supportive to or consistent with IRBM. However, plans set out for shared governance at the Basin level would spell a difference in initiating the process of integrated planning, consensus-building and conflict resolution when it comes to the utilization and/or non-utilization (i.e., preservation or protection) and management of Basin resources.

Overall, the review of relevant policies and laws on water resources management and development in the country suggests general readiness to accommodate IRBM given guidelines and procedures overseeing its planning, utilization, protection and rehabilitation. However, the review likewise reveals significant gaps in legal, organizational, and institutional structures as well as grey areas in the law that may not be conducive to successful implementation of IRBM when undertaken under existing frameworks. As such, the Master Plan for IRBM warrants a solid policy and legal framework founded on applicable existing laws and policies but likewise original in prescribing directions for such critical water concerns as resource competition, environmental accountability, economic pricing, and basin administration and regulation. The framework in itself is not outright perfect but rather evolving along with the learning experience gained as well as the

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depth of solutions and approaches that may be developed from the participatory nature in which IRBM is proceeding.

4.6.3 Cotabato-Agusan River Basin Development Program (CARBDP)

The Lower Agusan Development Project (LADP) of CARBDP aims to utilize and control the Agusan River for irrigation and flood mitigation. LADP involves the construction of (1) pump irrigation systems to serve a total area of 8,320 hectares, and (2) a 15-kilometer cut-off channel to divert excess floodwaters from the Agusan River into Butuan Bay.

The proposed irrigation systems have two major features. These are the construction of two pumping plants with a combined capacity of 13.4 cms, about 59 kilometers of main canals, 127 kilometers of laterals and sub-laterals, 48 kilometers of drainage canals and necessary on-farm facilities. The cut-off channel, on the other hand, which is designed to divert 820 cms of excess floodwaters, shall have for its additional features, four-meter wide road dikes along each bank of the channel, a 1.41 meter high tidal barrier, 2.5 meter wide local drainage channels and 132 units of supply canals and control gates.

4.7 AGUSAN RIVER BASIN WATER POLICY

4.7.1 Assessment of Policy Context

The ARB Water Policy provides a policy framework that will define the directions for water resources management in the Agusan, within the spirit of IRBM. The Policy takes the Basin as the geographical point of reference, and the river basin as the platform for which it shall take off.

The aim of the ARB Water Policy is to fill the void and contribute to the efforts of strengthening the policy environment and institutional framework for carrying out IRBM in the Basin.

The ARB Water Policy takes into context the existing national situation on IWRM, or efforts to move in this direction, IWRM being the national strategy for water resources development in the country under the MTPDP 2004-2010.

A review of relevant policies on water generates the following observations of the policy environment on water resources development and management in the Philippines as shown in Table 4-1.

Table 4-1 Observations on Policy Environment on Water in the Philippines

Observations Basis

State ownership of water, and participation in the development and management of water, including administration of water rights (by administrative concession)

1987 Philippine Constitution 1976 Water Code

State wields its power through various agencies. Agency mandate defined according to the use for water. Thus, the:

�� DENR-EMB on water quality; �� NWRB for coordination of water resources

development and permitting for surface water and groundwater use

�� MWSS for water supply regulation in Metro Manila;

�� LWUA/ WDs for provincial municipal water supply;

�� NIA for irrigation water

EO 123 ((Reconstitution of NWRB, 2002)

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Observations Basis

Under this structure, the overlapping of functions in some aspects could not be avoided; as well as the ‘fragmentation’ of priorities and responsibilities.

Devolution of State power on water exists at the local level, with mandates vested to LGUs on the delivery of public services related to water, health, and food. 1991 Local Government Code

Exercise of State authority in enforcing IWRM through the recently created (2006) River Basin Control Office (RBCO), and NWRB will focus on regulatory aspect.

The four (4) policy priorities of the RBCO will be the following:

1. Flood Mitigation 2. IWRM 3. Integrated Watershed Management 4. Wetlands Management

Thus, IWRM will be part of the RBCO priorities.

EO 51 (Creation of the RBCO) EO 123 (Reconstitution of NWRB, 2002) MTPDP 2004-2010 and EO 391 (2004)

Lack of updated holistic framework for the integrated management of water resources in the country. The creation of the RBCO and the drafting of an Integrated River Basin Management Master Plan will address this concern.

An exception could be found in localized application of the principles of integration, as founded on the experience of the LLDA, as a governing authority on the Laguna Lake and related tributaries.

PD 424 ( Creation of NWRC, 1974) EO 51(RBCO Creation) RA 4850 (1966)

Water quality foremost is the issue being addressed by the State.

The State has, nonetheless, acknowledged the looming ‘water crisis’ at the national level from the standpoint of population growth and migration, food production, and industrialization potentials.

2004 Clean Water Act (RA 9275) 1977 Phil Environmental Code (PD 1152)

National Water Crisis Act (RA 8041)

4.7.2 Harmonization of the Basin Policy

The ARB Water Policy has been developed in a way that fits with these existing GOP policies, to ensure that it embodies its fundamental goals. The manner in which the ARB Water Policy reconciles with and realizes the GOP policy is indicated in Table 4-2.

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Table 4-2 ARB Water Policy and GOP Water Policy, 2006

GOP Water Policy Contribution of ARB Water Policy

1. The Philippine Clean Water Act of 2004 (RA 9275)

Addresses water quality issues in the Basin from the viewpoint of environmental remediation built on good database development and management. Emphasizes strengthening of the institutional capacity in water quality data management. The move is similar to current CWA efforts to improve on institutions and data management as appropriate starting points to knowing the baseline situation before the intervention.

2. National Water Crisis Act of 1995 (RA 8041)

While far from depicting a ‘water crisis’ in the Agusan, the ARB Water Policy injects awareness and defines the policy and action agenda to reverse the noted decline in quality and quantity of its water resources. The Policy responds to critical water resources issues that are scoped under the aspects of demand and supply management, surface water and groundwater management, and those of special Basin resources with connectivity to the health and sustainability of water resources (i.e., watersheds, the Agusan Marsh, and IPs).

3. Local Government Code of 1991

The Policy emphasizes local governance and empowerment, at the level of LGUs as well as community and individual stakeholders in the institutionalization process for IRBM in the Agusan

4. The 1987 Philippine Constitution

The Policy provides for the beneficial use of water resources under existing and future uses (water supply, irrigation) but also taking into strict consideration the recovery of quality and management issues through better governance, knowledge development and institutional capability building

5. The Philippine Environment Code of 1977 (PD 1152)

Environmental remediation is at the heart of the Policy for surface water and groundwater management where the recovery of water quality rests on improved institutional management and good knowledge base development.

6. The Philippine Water Code of 1976 (PD 1067)

The ARB Water Policy strengthens the responsibility system of stakeholders in the Agusan over the utilization, management and safeguarding of its water resources. This is in support of the State and its overarching ownership and rights over the waters of the Philippines, as established in the Water Code.

7. EO 138 (Promoting Sustainable Forest Management in the Philippines)

The protection and rehabilitation of the Agusan River, given its watershed function, is a major area of Policy. This works in parallel with the protection of forests and upland area. Institutional mechanisms work on governance and institutional capability building of IPs and local communities, singly and in working partnerships with the DENR.

8. EO 391 (Implementation of MTPDP 2004-2010 and MTPIP 2005-2010

The MTPDP 2004-2010 directly promotes IWRM as the national strategy for water resources management in the Philippines. The ARB Water Policy specifically responds to the challenge posed by IWRM through an IRBM approach applicable to the unique characteristics of the Agusan as a water resource region in Northern Mindanao.

Nevertheless, in formulating the ARB Water Policy, the limitations and observed flaws in implementation and execution in policy at the national level is taken into consideration. Not only this, but also the absence of congruence in the manner by which IWRM and IRBM is understood at the agency and State level.

4-16


As such, in preparing the ARB Water Policy, attention is given to the fostering of a unified policy environment on IRBM, particularly, on the issues of:

i. Executing and enforcing governance at the national and river basin scale, and geographical boundaries as well as the political, cultural and socioeconomic mix found among peoples within these boundaries

ii. Finding the ‘working areas’ in water where ‘integration’ could be instituted and how; iii. Fitting the framework of the IRBM within existing the practice and norms of existing

institutions, while at the same time finding cooperative ways to adapt and be flexible to changes introduced under IRBM

On these aspects, the ARB Water Policy sets strategic directions initially on five (5) areas:

i. Basin governanceii. Demand and supply managementiii. Groundwater and surface water managementiv. Management of special Basin resourcesv. Organization and management of Basin information

The nature and intent of these five (5) principal elements are so discussed in Table 4-3.

Table 4-3 ARBMP Water Policy, 2006

Principal Element Main Policy Agenda

1. Governance and Empowerment

Formation and operation of the Agusan RBO Strengthening of local governments and local stakeholder groups in coordinating and partnership functions

2. Demand Management

Use of economic instruments and blending with equity considerations Improvement of data collection and management for economic assessment and decision-making

3. Supply Management

Program development for sub-basins facing water stress Program development on water allocation and prioritization among various water-use categories for stress conditions Research and development Basin information management

4. Surface Water and Groundwater Management

Environmental remediation for water quality concerns, founded on institutional strengthening in water quality data management and parallel with strengthening of local governance and stakeholdership, and effective law enforcement Support of groundwater development to augment surface water capacity

5. Management of Special Basin Resources

Protection of the Agusan River and watershed functions Protection of the Agusan Marsh and Wildlife Sanctuary (AMWS) and cross-sector support in the areas of watershed management, IP development, and flooding and water-related risks management IP development in line with social inclusion, poverty reduction and local empowerment

6. Organization and Management of Basin Information

Development of database on the physical and non-physical Agusan Building of good knowledge management practices (e.g., monitoring and evaluation)

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4.8 GENDER AND DEVELOPMENT

4.8.1 Gender, Age and Household Distribution

Sex Ratio. The Basin has more men than women. The ratio is not widely skewed but is drifting towards greater male dominance. Unlike in 1980 and 1990 where the sex ratio was constant at 94 women per 100, the trend for 2000 shows the relative decline of women at 91 per 100 men (Table

4-4). Throughout the Basin, the relative dominance of men in number could be observed although it is in the downstream section where the largest reduction in the number of women have been noted from 1980 to 2000. While quite stable in upstream and midstream sections, the sex ratio downstream has dropped from 98 in 1980 to only 88 in 2000. The reason for this may be that which enables men to keep their numerical dominance in the Basin; namely, the predominance of economic opportunities largely based on extractive industries that tend to favor men.

Table 4-4

Gender and Age Distribution of the Population in the ARB, 1980-1990


Norte

Agusan del

Sur

Compostela

Valley Total

No. of Women Per 100 Men (%) 1980 98 93 91 941990 97 93 92 942000 88 93 91 91

No. of Dependents per 100 Economically Active Adults (%)

1980 87 97 88 901990 78 89 94 872000 75 84 73 78

Average Household Size 1980 5.9 5.8 5.6 5.71990 5.6 5.7 5.5 5.62000 5.3 5.4 4.8 5.1


4.8.2 Gender Analysis

The purpose of gender analysis is to ensure that a development intervention will provide women and men the same opportunities for contributing to development and sharing its benefits. The analysis will describe existing opportunity-generating structures to ensure that their operation is not biased against a particular gender. From the analysis, the issues are identified to ensure that concerns of both gender are appropriately included in all activities rather than relegated to women-only projects.

The gender analysis framework presented in Table 4-5 informs on community policies and institutions on water resources, and their bearing on gender.

Table 4-5

Gender Analysis Framework, ARB, 2005

Level Issue Indicators Tools

Co

mm

un

it

y

Division of agricultural &

water-dependent work between women

and men

1. Types of women/men's agricultural tasks in the productive cycle - age and economic status appropriate2.Gender-specific knowledge resulting from gender division of tasks

�� Field level gender analysis

�� Checklists �� FGD with men and

women;

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Domestic and productive uses

of irrigation water

1. Adequacy of water access for men/ women's domestic and productive needs 2. Conflicts over adequacy of supply 3. Gender roles in location

planning, management and maintenance of water sources

Access to and control over

resources and benefits

1.Men/women's access to information, training, cash and improved work status

2. Paid/unpaid jobs for men and women.

3. Control over water/water delivery/ construction facilities

Managementand decision

making

1. Decision making by women/men re. agricultural activities, location of domestic water supplies, group membership.

2. Women/men's access to decision makers

3. Women/men's ability to decide on productive use of assets.

Felt benefits versus costs

1. Perceived benefits from project activities and project processes in relation to costs in time, labour, and cash, by men/women.

2. Experienced negative versus positive benefits

�� Scoring & Ranking of Water vulnerability

�� Reasons for top rated vulnerability issues & community solutions

�� Secondary Data �� Community Mapping �� Key Informants

Gender policies and strategies in

InstitutionalFramework

1. Presence of gender in implementation policy.

2. Nature of gender-specific support to staff (eg., transport facilities/arrangements for overnight field visits)

3. Gender balance in staff recruitment for TA/field/admin. staff

4. Management attitudes and support for women/gender issues

In

stitu

tio

ns

(M

in

is

tr

ie

s/P

ro

je

ct)

Institutionalarrangements

forimplementation

1. Gender disaggregated data in planning, monitoring, reporting and evaluation

2. Gender balance at field level 3. Cooperation of staff in

implementing policies 4. Quality and content of training

given to male/female staff 5. Location of community training

gender sensitive (ie. training conducted in village, not in centralised location outside village)

�� Identify organisational constraints

�� Workshops �� Gender training �� Gender responsive

curricula �� TOR�� Job descriptions �� Job adverts �� Gender responsive

TOR�� Female field staff �� Gender balance in

teams�� Support personnel �� Budgets & equipment �� Reports �� Work plans

4-19



Gender approach in sector policy

Presence of women/gender issues in sector policy. Gender as part of social equity. Programme actions in line with national policy and action plans.

Po

lic

y

(M

ac

ro

le

ve

l

Legislation support

Relevant revisions to legislation to reflect gender and equity concerns

�� Policy Dialogue Workshops

�� Accountability mechanisms

�� Checks & balances

(i) Overall Condition of Men and Women

The difference in conditions of men and women in the Basin shows in literacy education and health. These indicators point out who are benefiting more from the provision of development services, and are essential enabling instruments for individuals to develop and make positive social contributions.

The literacy rate in the Basin increased from 82% in 1980 to 91% in 2000 (Table 4-6). The rate of increase has been about the same for both sexes. From 1980 to 2000, the literacy rate of men increased from 82% to 92% respectively. The same trend applied for women whose literacy rates jumped from 83% to 91% for the same period. The high literacy rate for men and women and the almost similar growth in literacy rate speaks of equal opportunity of both sexes in acquiring literacy

Table 4-6

Literacy Level (10 Years Old and Over), ARB, 1980-2000


Norte (%)

Agusan del

Sur (%)

Compostela

Valley (%)

Average

(%)

1980

Men 87 78 81 82Women 89 79 82 83

Total 87 78 81 821990

Men 95 91 93 93Women 96 91 93 93

Total 95 91 93 932000

Men 95 88 86 90Women 96 89 89 91

Total 96 89 88 91 Source: NSO

(ii) Gender Situation at the Community Level

The gender situation at the community level manifests in the performance of tasks, decision-making, and sense of asset ownership, the same indicators used in assessing gender differences among IPs. Differences in situation generally occur among classes; namely, small landowner, tenants and wage labourers. The gender situation appears to be consistent among the three (3) groups. Considering, however, that large-scale landowners are barely represented in the Basin,1

the assessment instead focused on small landowners, tenants and wage laborers.

1 Participants in barangay meetings pointed out that landholdings in study areas are generally small, with large ones about 3.0ha. In particular, most households do not have their own land as seen in land ownership data.

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(a) Gender-Defined Tasks

To understand the role of men and women in resource management, farm and household management activities (including those water-related) in the barangays studied were first identified. The doer of each activity, whether male or female, was then noted.

The average distribution among women and men of farm and management tasks in selected barangays in the Basin are in Table 4-7. The number of applicable tasks per group is as follows: small landowners (22), tenants (23), and wage laborers (21).

Table 4-7

Average Number of Tasks Done by Men and Women, ARB, 2005

Type of Farm Worker and Task Doer Down

stream Midstream Upstream Total

Small Land Owners (N=13

Barangays)

Men 5 7 5 6 Women 5 5 4 4 Both men and women 7 13 14 12 Non-applicable task s 11 3 5 6

Total 28 28 28 28

Tenants (N=12 barangays)

Men 5 7 5 6 Women 6 6 4 5 Both men and women 8 13 14 12 Non-applicable tasks 9 2 5 5

Total 28 28 28 28

Wage Labourers (N=10 barangays)

Men 5 6 6 6 Women 6 6 4 5 Both men and women 8 11 13 10 Non-applicable tasks 9 6 5 7

Total 28 28 28 28

Overall, the number of shared tasks between women and men among all groups and in all three (3) sections of the Basin tends to be highest compared to those exclusively done by either male or female. As such, there are 12 gender-neutral activities among small landowners and tenants, and 10 activities among wage laborers. There are 6 male-dominated tasks each for all groups. The number of female-dominated tasks is lower though at 5 tasks each among tenants and wage laborers, and 4 tasks among small landowners. Apparently, gender neutrality is prevalent among groups although there are slightly more male-dominated than female dominated tasks.

Accordingly, gender neutrality occurs in all sections of the Basin, although this is most pronounced in the upstream. While male dominance is generally the norm for all remaining tasks, this is more observable in the midstream and upstream. It is in the downstream where female dominance is noted, particularly among its tenants and wage laborers.

Men are prime actors in most agricultural activities. However, in most barangays, women are acknowledged as equally involved particularly in the following: sowing, applying fertilizer, weeding, crop picking, harvesting and crop processing. Heavier tasks, such as land preparation and crop loading, usually involved machines and men. Certain tasks, such as winnowing, marketing of garden vegetables, fruit picking and handling money primarily belong to women. The activity that primarily belongs to men is fishing although some women in the Agusan Marsh also fish.

The considerable sharing of tasks between men and women is seen in animal raising, collecting firewood, drawing water and picking crops. The children of both sexes learn early of this sharing by being involved in these activities.

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The role of women has apparently expanded through the years. In 9 of the 13 barangays, it is noted that the women are more involved at present in farm and household management activities than it was 20 years ago (Table 4-8). Only in three (3) barangays (i.e., Tagbayagan, Basak, Inambatan) is it reported that women are less involved than before due to the availability of hired male labor and machinery. Increased mechanization of farming is noted in all barangays.

Table 4-8

Number of Barangays by Type of Changes in Work Distribution Between Men and Women

(last 20 Years Ago), ARB, 2005

Changes Downstream Midstream Upstream Total

No Change Noted 1 1With Changes Noted Less Involvement 1 2 3 More Involvement 1 4 4 9

Total 1 5 4 13

Meanwhile, regardless of ethnic group, women invariably hold the household purse strings. Although the men may market the crop and animals, the proceeds are still handed over to their wives or mothers.

(b) Decision Making over Resources

Responsibility sharing between men and women of responsibilities shows not only in farm and household management but also in decision-making. A set of 19 decision situations was presented during the barangay meeting and participants were asked who decides in each.

On average, applicable decision situations per group are as follows: small landowners (14), tenants (13) and wage laborers (10). Similar to farm and household management, both the sexes are involved in decision-making for all groups (Table 4-9). However for other situations, decision-making vests more on women than men, particularly among small landowners (4) and tenants (4). Men hold decision-making sway in only 2-3 situations, the least among wage laborers (2).

Table 4-9

Average Number of Decision Situations Handled by Men and Women, ARB, 2005

Type of Farm Worker and Decision

MakerDownstream Midstream Upstream Total

Small Landowners (N=13 barangays):

Men 2 3 3 3 Women 6 4 4 4 Both men and women 7 6 7 7 Non-applicable situations 4 6 5 5

Total 19 19 19 19



Total 19 19 19 19



Total 19 19 19 19

4-22


A similar pattern occurs in all sections of the Basin although the difference is most marked in the downstream where on average, female dominance is exerted in 6 decision situations compared to only 2 where male dominance shows. Gender parity is at least observed in the other two (2) sections. This is stronger though in the midstream, particularly among tenants and wage laborers where decision situations are dominated by an equal number of women and men.

It is clear that while there are gender-specific areas of decision, it is shared in most. This makes gender a weak factor when it comes to decision-making. The men though are overwhelmingly responsible for settling conflicts. They also take the lead when hiring farm labourers because men are assumed to better assess the working capacity of hirees. Negotiating irrigation issues is also a situation where a man’s decision prevails.

Women, on the other hand, tend to decide on group membership. While the type of extension work that focuses on maternal and child health may have encouraged this, the social sphere of the household’s external affairs is considered a woman’s domain. Women also take the lead in handling money. This is particularly pronounced in managing money using the informal network, providing or taking loans within the barangay and saving money. The men in most barangays acknowledge that they never save money although they are more likely to take loans from the bank than women.

While there is a variation of situations where men and women jointly make the decision, it is particularly imperative in the disposal and acquisition of assets. In most barangays, it is reported that if one partner arbitrarily buy or sell a major asset, the eruption of domestic trouble is inevitable.

(c) Asset Ownership

The sense of ownership associated with gender is seen in who is considered the owner of an asset. Around 15 assets were enumerated in the barangay meetings. These include not only material possession (e.g. savings, land, property) but also human capacity and environmental resources. Education is considered an asset as well as water sources.

Applicable assets or those in the actual possession of groups studied are distributed as follows: small landowners (12), tenants (11), and wage laborers (8). (Table 4-10) On average, joint ownership of assets are declared by all groups although this is higher among small landowners and tenants (6 each). For all other assets, male dominance tends to prevail particularly with small landowners where men own 4 of 6 separate assets. Gender parity could, however, be observed among wage laborers where women and men are equal in ownership of assets.

Table 4-10

Average Number of Assets Owned by Men and Women, ARB, 2005

Type of Farm Worker and Owner Downstream Midstream Upstream Total

Small Landowners (N=13 barangays)

Men 4 6 3 4 Women 1 2 3 2 Both men and women 8 6 6 6 Non-applicable assets 2 1 3 3

Total 15 15 15 15



Total 15 15 15 15



Total 15 15 15 15

4-23


The preponderance of jointly owned assets over those exclusively owned shows in all sections of the Basin. Male dominance, however, in asset ownership is more pronounced particularly among small landowners and tenants in the downstream and midstream. It is in the upstream where assets are owned equally between women and men.

Men are more dominant than women as to the number of possessions held exclusively by them, particularly land. Hardly any women have their name on land titles. Almost no land is conjugally owned on the title. Compliance with recent revisions in the law that provides equal opportunity to women in land ownership seems not to have filtered down to the Basin. This is partially explained by land ceiling legislation. To enable a household to own more land, the first title is put in the husband’s name and the second in the wife’s. Yet it proved to be rare for a household owning more than one piece of land.

Gender disparity in land titling is well recognised. Men also tend to see larger and more valuable assets as theirs such as vehicles, farm equipment and boats. However, women once again tend to control any cash assets in the household. Non-material assets such as knowledge and access to organizations are fairly equally shared, Men, however, tend to have more agricultural knowledge than women. Meanwhile, education is not a gender but a financial issue. It is the eldest regardless of gender that will be educated when a household can afford for only one.

The granting of resource titles to men rather than women extends to forest resources, as seen in the distribution of five (5) types of forest product user and distribution permits. The permits include rattan harvesting permit and PFDA. Only 20% of the total number of permits is issued to women, in contrast to 59% of men (Table 4-11). The rest are issued to POs and corporations.

Table 4-11

Holders of Forest Product User and Distributor Permits by Gender, ARB, 2005

Distribution

Type of Permit and Agreement TotalMen (%) Women (%)

Corporation/

PO (%)

Private Land Timber Permit 17 47 53 -PFDA 85 60 24 16Rattan Harvesting 11 28 9 63Log Dealership 4 100 - -Lumber Dealership 50 60 12 28

Average 59 20 21

Source: DENR

4.8.3 Policies and Institutions on Gender

The national policy on gender springs from the Philippine Constitution that provides for the recognition of the role of women in nation building and ensures the equality of men and women before the law. This provision ensures that all laws at the national and local level have due consideration to women’s concerns (Section 14). There are also laws that specifically address women’s concerns such as protection from domestic violence and work privileges to attend to maternal duties. The specific actions on gender are contained in the Philippine Plan for Gender Responsive Development (1998-2025). The plan has three (3) thrusts: economic empowerment of women, human rights and women, and gender-responsive governance.

The National Commission of the Role of Filipino Women (NCRFW) is the national government agency that ensures plan implementation. It oversees the preparation and implementation of regional gender and development (GAD) plan that is based on the national plan. The Caraga GAD Plan (2006-2010) focuses on five (5) issues on which its objectives are set; namely, (a) institutionalization of GAD, women and poverty; (b) violence against women and children; (c) women and health; and, (d) women and politics (Table 4-12). Each agency with a regional office has a GAD focal person to ensure that the plan is incorporated in other sectoral plans. These focal persons constitute the GAD regional council.

4-24


Table 4-12

Key Issues and Objectives of Caraga Gender Development Directional Plan, 2006-2010

Key Issues Objectives

Institutionalization of GAD To increase awareness, clarify the guidelines on GAD policy, budget utilization, and implementation

Women and poverty To capacitate women in various areas for income generation, access to capital and financing

Violence against Women and children To reduce violence against women and children

Women and health To ensure access to full and quality health services

Women and politics

To ensure quality participation in policy making and local governance To encourage the participation of women NGO and PO in government effort

The GAD regional plan is in turn translated into provincial GAD plan. Each province in the Basin has one. A provincial GAD focal person or GAD council oversees the implementation of the provincial plan and its adoption into a municipal and city GAD plan. The provincial GAD council may be composed of the GAD focal person from each of office within the province and municipal GAD focal persons.

The results of GAD implementation have minimal monitoring (Caraga Regional Development Plan 2004-2010). At the regional level, its constraints include the ceiling for GAD budget, allocation and expenditure of less than 5% and a limited source of funds, currently only from the MOOE. Another is the lack of permanent or alternative GAD focal persons.

At the local level, Plan implementation is confronted with even more constraints. Some of these constraints are the following: (1) lack of GAD teams and permanent GAD focal persons; (2) low GAD budget allocation and expenditure; (3) treatment of the GAD budget as a consolidation of funds for women-related activities in regular program and not exclusively for GAD; (4) lack of stakeholder participation in GAD plan preparation; (5) absence of a database on women’s concerns; (6) insufficient women’s representation in local development councils; and (6) inadequate consideration given to violence against women and children.

Further discussions on gender action plan is presented in Annex 4A.


�� The review of relevant policies and laws on water resources management and development in the country suggests general readiness to accommodate IRBM given guidelines and procedures overseeing its planning, utilization, protection and rehabilitation. However, the review likewise reveals significant gaps in legal, organizational, and institutional structures as well as grey areas in the law that may not be conducive to successful implementation of IRBM. As such, the Master Plan for IRBM addresses policy and legal framework founded on applicable existing laws and policies, likewise prescribing directions for such critical water concerns as resource competition, environmental accountability, economic pricing, and basin administration and regulation. The framework in itself is not outright perfect but rather evolving along with the learning experience gained as well as the depth of solutions and approaches that may be developed from the participatory nature in which IRBM should proceed

�� There is a high social and economic cost to polluting the Basin and this should be sanctioned. Measures to mitigate if not fully eliminate the causes should be identified and

4-25


implemented soonest. Appropriate implementation of laws to address environmental issues and concerns should be taken into account.

�� Opportunities for women to contribute to development and share its benefits are generally open. The women in the Basin seem to have the same opportunities as men in many respects. They are just as literate as men and even slightly more educated. Most decisions and tasks on livelihood and household management are generally shared between men and women. Equality in these aspects is even more pronounced among IP groups. Although land is usually titled to the men, the women control the household purse. However, government sanctioned resource access still favor the men.

4-26

GENDER ACTION PLAN


Final Report

ANNEX 4A: GENDER ACTION PLAN

1.0 INTRODUCTION AND BACKGROUND

This Gender Action Plan (GAP) for the Agusan River Basin (ARB) Master Plan has been prepared by the Technical Assistance (TA) team in consultation with representatives of the Technical Working Group (TWG) for the Master Plan, and Caraga’s Gender and Development Coordinating Committee (GADCC).

A draft version was circulated to stakeholders in Compostela Valley and Caraga, and discussed during a GAP Review Workshop held in Butuan City on 2nd March 2006. The document was subsequently revised to reflect stakeholder views and concerns more effectively. It was subjected to stakeholder review again in June 2006, following impact assessment of Master Plan proposals. GAD point-persons from local sites were invited to participate in the June impact scoping, and their contribution to this GAP is acknowledged.

This document is the final, stakeholder-approved version, for inclusion in the Agusan River Basin Master Plan.

The objective of this document is to establish mechanisms required to satisfy the provisions of the Asian Development Bank (ADB) Policy on Gender and Development, hereafter referred to as the “ADB Policy”1.

Specifically, the GAP objectives are to ensure that:

i. Funding proposals included in the Basin Master Plan are evaluated for impacts on women and men

ii. Gender considerations are mainstreamed in Master Plan proposals. iii. The GAP links gender equity with IWRM. This means the parameters of

recommendations in this Plan are: co-ordinated development and management of water- and land-related resources for economic and social welfare. Gender issues that are not linked, or only indirectly linked, to these parameters, may be considered suitable for programmes outside the Master Plan

iv. Master Plan proposals are consistent with existing regional Gender and Development (GAD) initiatives

v. Project implementation mechanisms satisfy the provisions of ADB policy on GAD well as the requirements of primary and secondary stakeholders

vi. Recommendations improve the status of women, particularly of poor women in the Agusan River Basin, and improve the participation of women in project implementation and management

It is stressed that gender concerns cut across all projects and all proposals included in the Master Plan. Methods to ensure that gender equity is mainstreamed into all such proposals are outlined in this GAP.

The ARB Master Plan aims at developing IRBM, focusing on coordination between multiple users and stakeholders of the water and land resources of the ARB. Its goal is to map out a strategy that, once implemented, will promote optimal development of resources and reduce poverty in the ARB.

The Master Plan identifies key land and water resource use issues in the Basin, and proposes a wide range of intervention possibilities (funding proposals) to address these issues. Some of these interventions will have gender implications in some parts of the Basin. Additional social assessments and further sub-sectoral plans will be required.

1 ADB, “Policy on Gender and Development”, May 1998. The term “ADB Policy” also including relevant policies with gender dimensions on poverty reduction, impact assessment, etc. See ADB’s “Handbook on Poverty and Social Analysis”, “Handbook on Gender Analysis and Women in Development”, and “Environmental Assessment Guidelines” 2003.

Annex 4A-1 /10


Final Report

Some intervention possibilities can only be more clearly formulated in future planning exercises after the completion of this TA. In these instances, mainstreaming of GAD to ensure gender equity in these plans will be required where relevant before implementation of any civil or watershed management works in order to comply with ADB policy.

Considering that existing gender inequities have been identified based on intensive participatory consultation with ARB stakeholders during Phase 1 of the TA, and that community participation will be required in project design once specific interventions have been determined, actions in this document have only been initially defined.

To ensure the Master Plan is implemented in accordance with policies of both the ADB and the Government of the Republic of the Philippines (GoP), this document details the following:

i. Gender Analysis Framework Overview ii. Social Assessment Summary iii. Gender Related Impact Assessment on Master Plan Proposals iv. GAP Objectives v. Implementation Arrangements vi. Costs and Financing vii. Monitoring and Evaluation

2.0 GENDER ANALYSIS FRAMEWORK OVERVIEW

A Gender Analysis Framework (GAF) was prepared during Phase 1 of the Technical Assistance (TA) and revised after fieldwork data analysis (Table 4A-1).

A GAF is a tool to identify who does what, where and when, and for how long. The purpose of gender analysis is to ensure that development interventions provide the same opportunities and sharing of benefits to both men and women. It helps the mainstreaming of gender equity into program activities. The GAF provides a framework to examine gender issues at three different levels in the ARB: policy, institutional, and community.

Policy. Gender is better integrated into policy and programming in the Philippines than in many other countries. In 1975, the National Commission on the Role of Filipino Women (NCRFW) was established. In 1987, the GoP introduced a constitution affirming women’s equality with men. The same year, the Philippine Development Plan for Women was developed, followed by the Philippine Plan for Gender-Responsive Development (1995-2025), whose preparation and adoption were co-ordinated by the NCRFW.

NCRFW is the oversight institution mandated by the Philippine government to oversee the implementation of government policy on Gender and Development (GAD). The agency has the power to set policies, approve plans, monitor and evaluate their implementation at the national and local levels, provide technical assistance, and maintain a gender-based data and information resource center.

Annex 4A-2 /10


Final Report

Table 4A-1

Gender Analysis Framework, Agusan River Basin, 2005-2006

Level Issue Indicators Tools1. Types of women/men's agricultural tasks in the productive cycle - age and economic status appropriate

� Field level gender analysis

2. 2. Gender-specific knowledge resulting from gender division of tasks

� Checklists

1. Adequacy of water access for men/ women's domestic and productive needs

� Focus Group Discussions with men and women;

2. Conflicts over adequacy of supply

3. Gender roles in location planning, management & maintenance of water sources1. Men/women's access to information, training, cash and improved work status

� Cause & Effect VulnerabilityRating & Ranking

2. Paid/unpaid jobs for men and women. � Secondary Data3. Control over water/water delivery/ construction facilities

� Community Mapping

1. Decision making by women/men re. agricultural activities, location of domestic water supplies, group membership.

� Key Informants

2. Women/men's access to decision makers3. Women/men's ability to decide on productive use of assets.1. Differences in literacy & education

2. Health Issues

1. Perceived benefits from project activities and project processes in relation to costs in time, labour, and cash, by men/women. 2. Experienced negative versus positive benefits

1. Presence of gender in implementation policy. Identify organisational constraints

2. Nature of gender-specific support to staff (eg transport facilities/arrangements for overnight field visits)

workshops

3. Gender balance in staff recruitment for TA/field/admin. staff

gender training

4. Management attitudes and support for women/gender issues

gender responsive curricula

TOT job descriptions

job adverts gender responsive TOR

female field staff 1. Gender disaggregated data in planning, monitoring, reporting and evaluation

gender balance in teams

2. Gender balance at field level support personnel3. Cooperation of staff in implementing policies budgets & equipment

4. Quality and content of training given to male/female staff

reports

5. Location of community training gender sensitive (ie. training conducted in village, not in centralised location outside village)

workplans

Gender approach in sector policyPresence of women/gender issues in sector policy. Gender as part of social equity. Programme actions in line with national policy and action plans.

Legislation support Relevant revisions to legislation to reflect gender and equity concerns

Inst

itutio

ns (

Min

istr

ies/

Pro

ject

)C

omm

unity

Gender policies and strategies inInstitutional Framework

Domestic and productive uses ofirrigation water

Management and decisionmaking

Felt benefits versus costs

Pol

icy

(mac

ro

leve

l)

Policy Dialogue Workshops

� Scoring & Ranking of Watervulnerability

Division of agricultural & water-dependent work between womenand men

Access to and control overresources and benefits

Differences in Overall Condition of Men and Women

Institutional arrangements forimplementation

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Final Report

More recently, a Framework Plan for Women was drafted by the NCRFW. The framework identifies three (3) priority concerns: economic empowerment of women; protection and fulfilment of women’s human rights; and, gender-responsive governance2.

The NCRFW recognised the need to strengthen the legal framework to enable these policies to be applied more effectively. Between 1995 and 2003, a series of enabling acts and executive measures were approved by the Senate. Most importantly, it has supported measures to prepare guidelines on implementing gender mainstreaming in projects and programs, and in local planning and budgeting. All line agencies are required to develop and submit to NCRFW and the Department of Budget Management (DBM) a GAD Plan, allocating at least 5% of their budgets towards gender concerns.

The implementation of gender-responsive programmes and services is the responsibility of line agencies and local government units (LGUs), while monitoring and technical assistance support are the responsibility of the National Economic and Development Authority (NEDA), DBM, Department of the Interior and Local Government (DILG) and NCRFW.

Institutional. The Caraga Region has a Gender and Development Coordinating Committee (GADCC), responsible for developing its Gender Development Directional Plan (GDDP) 2006-2010. This is included in the Caraga Medium-Term Regional Development Plan 2004-2010.

The GDDP focuses on five (5) issues, from which its objectives are derived. The issues are: (1) institutionalisation of GAD; (2) women and poverty; (3) violence against women and children; (4) women and health; and, (5) women and politics (Table 4A-2).

Table 4A-2

Key Issues and Objectives of Caraga Gender Development Directional Plan 2006-2010

Key Issues Objectives

Institutionalisation of GAD To increase awareness, clarify the guidelines on GAD policy, budget utilisation and implementation

Women and poverty To capacitate women in various areas for income generation, access to capital and financing

Violence against women and children To reduce violence against women and children

Women and health To ensure access to full and quality health services

Women and politics

To ensure quality participation in policy making and local governance To encourage the participation of women NGOs and POs in government efforts

Each agency with a Regional Office has a GAD focal person to ensure that the plan is incorporated in other sectoral plans. These focal persons constitute the GAD Regional Council.

The GAD Regional Plan is in turn translated into the Provincial GAD Plan. Each province in the Basin has one. A Provincial GAD focal person or GAD Council oversees the plan’s implementation, and its incorporation into municipal and city GAD plans. The Provincial GAD Council may be composed of a GAD focal person in each office, together with municipal GAD focal persons.

The plans have minimal monitoring. At the regional level, it is constrained by under-utilization of the 5% budget allocation. Moreover, several agencies do not have a GAD focal person.

At the local level, plan implementation faces even more constraints, including: (1) lack of GAD teams and permanent GAD focal persons; (2) low GAD budget allocation and expenditure; (3)

2 Country Gender Assessment: Philippines, Southeast Asia Department, Asian Development Bank, 2004

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Final Report

non-exclusivity of the GAD budget for GAD purposes as it is a consolidation of funds for women-related activities in regular programmes; (4) lack of stakeholder participation in GAD plan preparation; (5) poor database management on women’s concerns and inadequate gender disaggregation of data; (6) limited women’s representation in local development councils; and, (7) limited consideration given to violence against women and children.

Community. Gender analysis at the community level was evaluated in overall differences in the condition of men and women in the Basin, gender division of labour, access to and control over resources and benefits, gender differences in decision making and management roles, and sense of asset ownership. Data gathered reflect where gaps exist between policy, principle and practice. Information is set out in Annex 1.

3.0 SOCIAL ASSESSMENT SUMMARY

As required by the ADB Terms of Reference (TOR), preparation of the GAP has included a social assessment (SA) of the Agusan River Basin. This is set out in Volume IIIA (Master Plan Report), Chapter 2, Section 2.2.4. A more detailed presentation is the TA Working Paper, Social Aspects, Vol. 1 and 2,

Annex 1 presents a gender profile of the ARB with a selection of data highlights to establish the background and clarify reasons for recommendations in this GAP. After an introduction to the ARB, it includes:

i. A description of gender, age and household distribution in the Basin ii. Poverty and gender in the ARB, examining gender dimensions of poverty, literacy and

education, health and social capital iii. Community level gender analysis iv. Gender implications of identified needs, aspirations and preferred options of primary

stakeholders in the Basin, based on intensive consultation

The SA identified key gender issues in the ARB. In some situations, there is no need to consider separate action. In other situations, there is a need to consider an integrated course of action, consistent with regional initiatives.

4.0 GENDER-RELATED IMPACT ASSESSMENT ON MASTER PLAN INITIATIVES

Intervention possibilities included in the Agusan River Basin Master Plan are presented by theme. Each theme reflects stakeholder priorities in the Basin. 3 Five priority themes of greatest importance to the largest number of people in the Basin were identified, with two additional “special case” themes:4

i. Water Quality ii. Flood Management iii. Water Resource Development iv. Watershed Management v. Basin Management vi. Indigenous People vii. Wetlands

For each theme, intervention possibilities have been identified.

3 Stakeholder priorities were identified in Phase 1 of the TA. For details on methodology and outcome, see Working Paper Social Aspect, Agusan River Basin Master Plan Project, Vols. 1 & 2, December 2005. These are part of Volume VIII (Individual Working Papers) of this Report. 4 These have been initially presented in Volume IIIA (Master Plan Report) of this Final Report.

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Final Report

Sector recommendations are assessed for gender impact against key areas of impact as defined by the TOR. 5 These are found in the chapter on Social Impact Assessment in Volume V (Project Assessment and Implementation Report).

The Social Impact Assessment includes:

i. Identification of type and location of Basin project proposals

ii. Assessment of potential positive and adverse impacts on men and women in various locations

Where impacts cannot be assessed at this stage (for example, if land use plans are to be prepared through sub-basin planning), future impact assessments will be needed as a pre-condition to budget approval.

5.0 GENDER ACTION PLAN OBJECTIVES

The Master Plan provides a framework for the GAP, but does not over-ride existing adopted plans.

The intention of including the GAP in the Master Plan is to ensure that any sectoral proposal is evaluated for gender impact, and that mitigation measures are adequately included as an absolute pre-condition to any funding approval.

By this very means, the institutionalisation of GAD (Objective 1 of the Caraga GDDP) is improved by increasing sectoral awareness of the need to consider the consequences of Basin activities on women as well as on men.

Another reason to include the GAP in the Master Plan is to set milestones whereby the way to achieving gender equity may be measured. Local goals currently in place can be aligned with Master Plan goals during strategic planning processes.

The principles of implementation are:

i. Communities and GAD point persons in municipalities are the principal partners ii. Objectives are in line with existing GAD initiatives and objectives in the Basin iii. Recommendations are directly linked to physical infrastructure interventions, as well as to existing planning processes

The GAP objectives are designed to complement and support initiatives already instituted by Caraga and Region XI. A separate gender-specific project is not recommended. However, it is recommended that sectoral initiatives included in the Master Plan review and revise their activities and methodologies to ensure gender equity is mainstreamed into proposals.

There are three (3) GAP Objectives. Each objective has one or more recommended interventions (Table 4A-3).

5 Section III, Point B, sub-section 1.xi.

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Final Report

Table 4A-3

GAP Objectives and Recommendations

ARBMP, 2005-2006

Objectives Recommended Interventions

i. Ensure stakeholder participation is included as a component of continuous impact evaluation

1. Ensure that funding proposals included in the Master Plan are evaluated for gender impact ii. Mainstream gender impact mitigation

measures into sectoral planning processes

2. Ensure GAP recommendations are consistent with existing ARB initiatives

i. Improve knowledge & awareness of GAD policy, budget utilisation & implementation among Basin stakeholders

ii. Involve communities in local development tives, from planning to implementation,

enhancing the participation of women initia3. Ensure project implementation

mechanisms satisfy ADB gender policy as well as stakeholder requirements ii. Improve knowledge and decision making

capacities by improved database management

In the following sections, the approach to realizing these objectives and recommendations in the ARB is discussed. Sections 5.1-5.3 contain the three (3) GAD objectives, respectively; with their recommendations making up each section.

5.1 GENDER IMPACT EVALUATION OF ARBMP FUNDING PROPOSALS

Gender impact assessment against key areas of affectedness as defined in the TOR has been conducted. Key impacts of sectoral proposals are outlined in Volume V (Project Assessment

and Implementation Report) of this Master Plan.

5.1.1 Stakeholder Participation in Continuous Impact Evaluation

GAD point persons from local site-specific locations were invited to participate in the assessment for proposed projects. The impact assessment of Master Plan proposals thus reflects their important contribution to determining final recommendations, as well as enabling gender mainstreaming of mitigation measures into the Master Plan.

Another way to ensure that ARB gender mainstreaming remains consistent with regional initiatives is to involve Caraga and ComVal’s GADCCs in monitoring & evaluation of GAD mainstreaming & gender equity in Master Plan implementation.

Involving stakeholder participation improves guarantees that interventions fulfill their original objectives in ways that satisfy both primary (community) and secondary (agency) stakeholders.

5.1.2 Mainstreaming of Gender Impact Mitigation Measures

Potentially adverse gender impact is alleviated when impact assessment is undertaken beforehand, particularly in infrastructure activities. This enables mitigation measures to be integrated into the implementation process.

Building in impact alleviation measures improves knowledge and awareness of gender consequences of actions, helping to mainstream gender equity, particularly in sectors not usually noted for integrating gender concerns into their planning and implementation procedures.

Certain mitigation measures to alleviate potentially adverse impacts of Master Plan activities need to be integrated into each sectoral proposal. The intention is to ensure that not only do social

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Final Report

benefits accrue to women, but also that the poor and vulnerable do not feel adverse impacts more than other sections of society.

Mitigation measures include:

i. Gender disaggregation of data in sectoral data gathering and RBO-maintained database which is already under way but can improve in some sectors

ii. Ensure increased number of women participating in community organizations tasked to undertake Basin initiatives in all sectors

iii. Review of land tenure rights for women as part of watershed management iv. Ensure that the Public Awareness Plan (PAP) includes information and methodologies

appropriate to enable women, particularly the poor, to understand and respond to Basin initiatives

v. Include options for enabling women to have more access to gainful livelihood activities vi. Ensure women are directly involved in the planning of domestic water/ wastewater

installation and management programmes, and link this to health-awareness efforts vii. Improve targeting of LGU GAD of 5% towards livelihood and health initiatives for women

A separate health component is recommended, with three (3) key sub-components. This includes:

i. Link Department of Health schistosomiasis prevention initiatives with irrigation proposals as continuation of existing irrigation schemes.

ii. Enhance public awareness and women’s involvement in water supply and sanitation programmes, with Butuan City as first priority. Reasons for recommending Butuan City as a priority are:

�� Size of population involved �� Key location in the Basin �� Extent of water pollution through fecal contamination in the city’s potable water supply

and in Butuan Bay �� High rates of genito-urinary infection, particularly among women (second most

important cause of morbidity in Butuan City) �� Gastroenteritis among the top ten most common causes of mortality in Butuan City

iii. Link reproductive health and family planning to the Ligtas Buntis Campaign,6 Technical Working Group, Department of Health, POPCOM, Philhealth, and LGUs, in an effort to meet currently unmet needs

5.2 CONSISTENCY OF GAP RECOMMENDATIONS AND ARB GENDER INITIATIVES

THRU KNOWLEDGE AND AWARENESS BUILDING ON GAD

The best way this recommendation can be implemented is to identify some working examples of how it can be done at municipal levels. Sectoral activities remain the focus of sectoral plans. Regional GAD initiatives are intended to be well integrated into regional planning, which should filter down to LGU levels.

One example of this filtering down process could be via water supply and sanitation schemes. Infrastructure project design must improve its ability to address gender concerns by including consultation and planning of water supply and sanitation schemes with household users, particularly with women. There are substantial overlaps here with health consequences and related health expenditure.

6 Expected to deliver basic information on fertility awareness; national and modern family methods including method effectiveness, side effects, complications, myths and misconceptions; maternal care, RTIs, Philhealth benefits package on Family Planning (FP); schedule and location of health facilities where services can be obtained.

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Final Report

Apart from the LGU and national agencies, the Basin has councils and boards that link government players with each other and with non-government players. Some of these councils were meant to respond to gender concerns. However, their operation and capability need to be reviewed and improved to sharpen their performance. These councils and boards make decisions with far reaching impacts on the lives of people, particularly the poor. These agencies need to be strengthened, particularly those providing land tenure, and managing areas of special use. Where possible, women’s representation in local development councils must be facilitated.

As part of the RBO’s coordinating function, capacity building can be provided to units within LGUs that directly work with women’s concerns (MHO, MAO and MSWD). The RBO can also keep LGUs informed of legislation and incentives to directly address new and emerging issues for women, thereby improving knowledge and awareness of GAD policy, budget utilisation and implementation among secondary Basin stakeholders.

5.3 ADB GENDER POLICY AND PROJECT IMPLEMENTATION MECHANISMS

5.3.1 Women and Community Participation in Local Development Initiatives

The poverty level in the Basin deepens as the household is located farther from the market. Even in more accessible barangays, women are less involved in the farming sector by comparison with 20 years ago. The market is an opportunity provider that if handled well, can uplift a household from poverty.

Bringing the market closer to poor households requires tangible (e.g. farm-to-market roads) and intangible (e.g. market intelligence network) infrastructures. However, the closer the market, the greater the temptation to over-exploit natural resources. A balance between market-driven extraction with resource conservation must be met to attain economic and environmental sustainability.

By involving communities in resource management planning and enhancing the participation of women, particularly in proposals entailing local resource management with income generation and employment opportunities, much may be done to address women’s stated concern with lack of livelihood options. Further support towards this goal may be included under Watershed Management and AMWS Management proposals, as well as under the Indigenous Peoples Development Framework (IPDF), in the Master Plan.

It is essential to ensure that women are involved in the planning and implementation of proposals related to infrastructure activities such as domestic wastewater management and potable water supplies. This should be linked to any information and awareness activity included either under the PAP or health component mentioned above.

5.3.2 Improvement in Knowledge and Decision Making thru Improved Database

Management

One constraint in preparing a Basin-wide plan is the absence of a common database and lack of gender disaggregated data across sectors. This situation also impedes reliable decision making.

It is essential to establish a common database to which Basin agencies and organizations can have access, and to ensure that data is gathered and entered in such a way that gender-differentiated impacts can be evaluated and monitored. This will also improve knowledge and awareness about GAD issues.

There are numerous Basin initiatives on gender, implemented singly or jointly. Some may be generating better results than others. These initiatives must be further identified, characterized and mapped. Information may be kept with the RBO information management system. Basin-wide interventions must dovetail and supplement these initiatives instead of starting new ones.

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Final Report

6.0 IMPLEMENTATION ARRANGEMENTS

Procedures for carrying out gender mainstreaming are already well established in Caraga and Compostela Valley. The GADCC in Caraga has an established program integrated into the Region’s overall development plan and mainstreamed into all line agencies. It is mandatory for LGUs to have point persons for gender, and a budget allocation for gender activities.

Individual departments and agencies are responsible for implementing and monitoring their own GAPs.

Where there is a strong community participation component, women should constitute no less than 50% of community organizers and committee members for Master Plan initiatives.

Women should be fairly represented at community level during planning processes for Master Plan initiatives, particularly where it can be anticipated that they might experience strong impacts (e.g. water supply and sanitation programs).

7.0 COSTS AND FINANCING

The cost for gender-oriented measures will be part of the cost of each subproject.

8.0 MONITORING AND EVALUATION

To ensure that GAP concerns are fully addressed at the earliest stage, it is recommended that infrastructure initiatives are monitored by GADCC-Caraga, and that a similar GADCC ComVal performs the same function for projects to be implemented in Compostela Valley.

The review would look at whether potential GAD concerns have been adequately integrated into sub-sectoral implementation of activities, whether these activities are affecting women disproportionately, and what mitigation steps can be taken during project implementation.

The GADCCs would also ensure that gender monitoring mechanisms are in place and observed.

NEDA has already developed monitoring guide questions (2002) based on the Caraga GAD Framework.7 On the other hand, for sectoral activities, the ADB has developed gender checklists on agriculture, health and water use.

Monitoring and evaluation of field-level activities is the first responsibility of theme-based Technical Working Groups.8

It has been recommended under other proposals (IPDF) that a Project Management Office (PMO) is established with a Technical Assistance (TA) team to assist establishing an RBO during its early stages, and/or to facilitate setting up support structures for basin management. Key to this is management of a Basin database, harmonising information and documents, and ensuring gender disaggregation of data at all levels. GAP baseline and monitoring data would be kept by the PMO and handed over to the RBO/Basin management facility.

7 A Gender Responsive Regional Monitoring and Evaluation System Manual, NEDA-Caraga, ed. by NCRFW/M.T.M.Rivera, 2002 8

The TWG/TG concept is discussed more in-depth in Volume IIIB (Master Plan Report) of this Master Plan.

Annex 4A-10 /10

INSTITUTIONAL FRAMEWORK


5. 0 INSTITUTIONAL FRAMEWORK

Situational analysis of the institutional setting initially sets the context of institutional participation in WRM in the Philippines and delves into the institutional issues of Basin development. First established is the nature of institutional stakeholders involved in the study. This is followed by the identification and analysis of critical institutional concerns at the national and ARB level. The latter is a synthesis of findings from FGDs and KIIs conducted, including issues depicting the critical convergences between environmental problems and institutional weaknesses. Prospects for an Agusan River Basin Organization (Agusan RBO) are then explored, the centerpiece of which is the assessment of five (5) working models on organizational development that can be applied to the ARBO case. From here, imperatives to ARBO formation are derived for use in the formulation of an institutional development strategy for river basin management in the Agusan, which include possible funding strategies for the proposed Agusan RBO.

5.1 INSTITUTIONAL PARTICIPATION

5.1.1 Existing Institutional Set-Up in National Water Resources Management

The major components of WRM in the Philippines are vested in the mandates of several agencies of government. Water resources management is, in particular, divided into three (3) program areas; namely, (a) watershed management; (b) water resources planning (inclusive of water resources assessment); and (c) water quality and sanitation.

Watershed management is led by the DENR and assisted by the NIA, Bureau of Soils and Water Management (BSWM), NPC, WDs and LGUs.

Water resources planning is shared by NEDA, NWRB, inter-agency committees at the national level; LLDA and provincial governments at the regional level; MWSS, LWUA, DPWH, NIA, DILG, and DA at the sub-sector level. Water resources assessment is a complementary effort of NWRB, BRS, PAGASA, LWUA and NPC.

Water Quality and Sanitation is a collaborative undertaking of DOH, EMB and its Environmental Health and Sanitation (EHS) Section with support provided by MWSS and LWUA.

To reiterate, the NWRB acts as the primary agent of the State in matters pertaining to the control, supervision and regulation of the use, exploitation, development and protection of its water resources. NWRB is able to administer and enforce suitable policies and directions in appropriate water resources management scenarios. There are other agencies as actively involved in WRM although the nature of their involvement may be of a different dimension.

For the past years, the national government has steadfastly pursued its dedication to developing a regime of efficient WRM. This is evident in several events of starting with the commissioning of special water studies in 1993, the Water Summit (1994), the Water Crisis Act (1995), and the Presidential Task Force on Water Resources Development and Management or PTFWRDM (1996). In between, several studies of paramount impact to the sector run a parallel course in a bid to fully rationalize the sector and revitalize it as to both the efficiency of its system and sufficiency of its service resources.

5.1.2 Institutional Stakeholders in the ARB

Institutional Stakeholders in the Basin come from government and non-government sectors as indicated below.

�� Government Sector, the three (3) provincial governments (Compostela Valley, Agusan Sur, Agusan Norte) and their municipalities and barangays; City Government of Butuan; and national line agencies (NLAs) in Region XI and Caraga Region (e.g., DENR, DPWH, NIA, NEDA, DA, DAR, DTI, LWUA/WDs, NCIP, MEDCO, DIDP)

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�� Non-Government Sector, inclusive of the academe, church organizations, NGOs POs (e.g., fisherfolk, farmers, women, youth, service providers), forest concessionaires (e.g., IFMA, CBFM), plantation operators (e.g., banana), IAs, IP groups, and business entities (e.g., Philippine Chamber of Commerce and Industry)

The above list of Institutional Stakeholders was initially prepared for the FGD/KII and stakeholder workshops conducted in Phase I of this TA. The list would be validated and finalized in Phase II where roundtables and provincial workshops would be conducted as participative platforms to review, assess, and design a unified Basin Institutional Mechanism for the ARB.

5.2 MAJOR INSTITUTIONAL IMPEDIMENTS

Over the years, pressures on water resources in the Philippines have steadily increased and weaknesses in management, both in concept and in implementation, have become apparent. This section elaborates on key observations on the institutional sector, both at the national and ARB level. These observations inform on the need for adjustments to changes that have already occurred due to the fast pace of development and other externalities that exert pressure on water resources. These changes may require, in the immediate term, amending certain laws, revising policies and updating guidelines to make them responsive to the present water resources situation, and ensure the satisfaction of present and future demands for provision of the resource. This responsiveness is aimed to extend to the implementation and practice of IRBM in the ARB that begs for concrete policy undertakings to guide efficient resource allocation and use prioritization of water amid social and environmental limitations.

5.2.1 National Level

Water Use Regulation. The investigation and processing of water permit applications is a locational activity for which NWRB is not properly equipped, as to both workforce and resources. On the other hand, the deputization of other government agencies for this purpose has not proven satisfactory. Moreover, the capability of NWRB to monitor compliance with the terms and conditions of permits being granted is very limited due to workforce and budgetary constraints for travel-to-site expenses. Estimates indicate that only about 35% of all water users is subject to a formal permit. There is a reason to believe that a substantial number of water abstractions are not reported, at least, to NWRB. Altogether, the permitting system should be strengthened.

Dispute Resolution. The limited number of qualified hearing officers in NWRB slows down the process of settling disputes particularly in areas outside Manila. Complaints on water use, water rights conflicts, and other controversies related to water resource allocation are generally initially filed with the deputized agents of NWRB in a locality. The investigation and ensuing hearings on water disputes are to be held in place to make ocular inspection easy, or site visit-convenient. However, those handling these investigations are usually Manila-based staff that would have to travel to these venues just to be able to attend to them. In times where travel cannot be made, delays in the hearings are incurred and so the timely resolution of issues is also compromised.

Knowledge Base. The interest of developing an accurate water resources database for planning and decision-making is hampered, in part, by the absence of a defined program of carrying out long-term observations at gauging stations. This national concern has been encountered most recently in this TA where hydrological and meteorological data on the ARB came from only 6 of originally 20 NWRB/BRS stations where the quality of data suffer.

For stream flow, several stations now appear to have been neglected or abandoned. For groundwater, one has yet to see a national groundwork network. Many agencies such as WDs, MWSS, and NIA do collect certain data in connection with their production wells, but these are not serially sequenced. There is an existing Groundwater Data Bank linking at least LWUA, NIA and NWRB For water quality, DENR, through its regional offices, collects water quality data but only to primarily classify surface water bodies for different types of beneficial use. Meanwhile, the environmental quality division of EMB (in DENR) does not have its own field staff just like the BRS (in DPWH). EMB does not undertake the monitoring of groundwater quality. Although it has established a database for water quality, this has not been updated regularly.

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Enforcement. There has been no effective enforcement of the Water Code due to resource constraints. Investigation of cases involving violations of conditions in permits issued is often left to the discretion of deputized agents. In many cases, decisions or directives of NWRB are ignored since it does not have “enforcement powers” to exact compliance with these directives.

Water Resources Planning. A national master plan for water resources management and management was developed in 1998, but it should be regularly updated. What pass off as such plans are the missions and goals of each sector agency. Little effort has been devoted to require each agency in the resource area to formulate their plans and make these consistent with the overall direction of the whole water resources sector. As it is, it would seem that the various water agencies could plan and do with respect to their water activities with little regard for their entire water resources management thrust. There is also no system to integrate the plans and programs of various sub-sector agencies in water resources development and management.

Economic Pricing. The regulation of water tariffs is separately exercised by NWRB, MWSS, LWUA, NIA and the LGUs. Standards and guidelines applied in water pricing regulation by these agencies are not based on common parameters. On the other hand, raw water pricing is imposed only on private extractors while government agencies had been exempted from abstraction fees until 1996. It was only early in 1997 that exemptions of government agencies from raw water charges were lifted.

Policies on Privatized Water Utilities. Existing regulatory policies, laws and mechanisms have not considered the potential growth of privatized utilities, wholesale water regulation and retail water regulation. The current basis for regulating water use is lacking to address the numerous attempts to develop water resources for commercial use. The privatization of water institutions will give rise to a situation where the present policies and guidelines may hardly be applicable.

5.2.2 ARB Level

Institutional Fragmentation. While the Agusan River Basin (ARB) is a physical unity, as dictated by its water resources system, it is not a unity in so far as its institutions are concerned. The Basin covers three (3) autonomous provincial LGUs, as many as 42 municipal LGUs, and one (1) city, not to mention its hundreds of barangays that also exert political will. Two (2) administrative regions (Region 11 and CARAGA) of NLAs implement national policies, programs and projects. Non-government organizations (NGOs), and the POs they serve, number also in the hundreds. NGOs bifurcate depending on geography, sectoral coverage, funding sponsors, and expertise. Their funding varies, and so do their capabilities. A few, such as the Leaf Foundation, specializing in forestry and operating in Compostela Valley province appears to be one of the few NGOs that have attained a level of funding, and therefore, of operational, stability.

Uncoordinated Basin Initiatives. The lack of coordination and a tight cohesion of program planning and implementation between and among the key government institutional stakeholders of the ARB have been validated in the FGDs and KIIs conducted. Among others, the lack of coordination is evident in the timing of decisions to adopt projects within the Basin. KIIs show that the timing of funding made available, from local sources, national budget and foreign donors, dictates the mix and selection of basin initiatives. It also affects the assignment of responsibility in execution among the agencies operating within the Basin.

There is a “system” though of inter-governmental consultation, principally with its two (2) regional development councils (RDCs). However, since there is no overall Basin Master Plan to refer to, decisions taken are mostly “stand-alone” decisions formed at the urgency of available funding and “needs” supposedly expressed by ARB Stakeholders – mostly coming from the Government sector. A reading of minutes of one RDC planning session in September 2005, for instance, indicates no reference made in respect of relating actions to a Basin plan. The agenda was a mix of subjects determined ‘ad hoc’ and not according to a long-term development plan. Discussions, anyway, referred very little to Basin-wide plans. While the NEDA has published its regional physical framework plans, it should be noted that the Basin would have belonged to any two (2) of these plans because of the overlapping jurisdictions of Region XI and Caraga .

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Environmental Repercussions of Institutional Disorganization. The major impact of this loose system of planning and implementation (if it be called a “system” which might imply a systematic effort – which it certainly is not) is observable in the continued degradation of the natural environment.The most destructive activities that harm the natural environment in the ARB from views shared during the FGDs/KIIs are:

�� Uncontrolled, and unplanned cutting of trees, both legal and illegal; �� Unregulated mining, which involves quarrying, small- and large-scale mining that dump

tailings into the rivers thus resulting in siltation and heavy metals contamination; �� Contamination of aquifers and water bodies, due to direct discharge of: (a) untreated

domestic effluents and solid waste into water bodies; (b) mine tailings; and, (c) chemical pesticides and fertilizers from upland and lowland agriculture, especially of irrigation systems and from large-scale banana plantations;

�� Increased harvesting of surface and underground water for domestic, agricultural and industrial uses;

�� Flooding due to continued denudation of forest cover over extensive areas opened for both upland and lowland agriculture (irrigation systems);

�� Severe siltation of water bodies due to erosion resulting from mining, forest denudation, upland agriculture, and opening of timberland/public lands to human settlements; and,

�� Fishing practices that use destructive gears and uncontrolled off-season fishing

Local and national government, and NGOs, are aware that developmental decisions will continue to impact primarily on the environment and result in its further degradation. There is an expressed need to develop tighter and more controlled linkages in diverse sectoral Basin initiatives. For instance, the FGDs/KIIs noted the repeated mention of uncontrolled cutting of trees, of unregulated mining, and of fishing using destructive gears. There is a general knowledge that domestic, agricultural and industrial liquid wastes are discharged directly into its water bodies. However, participants also noted the general lack of effective control on these actions although these are clearly violations of national and local policies in respect of the environment. They are one in concluding that these indicate a serious lacuna in unified governance within the ARB.

Weak Governance and Environmental Destruction. Environmental destruction, as demonstrated in the above examples, could be attributed primarily to an institutional defect; namely, the widespread lack of public awareness on the linkage of livelihood activities to the environment and to public governance. Such heightened public awareness could have moved the public to demand open, transparent, and effective actions from government regulatory agencies. With this awareness, the public could have been also mobilized to assist amid weak government efforts. Given this low level of public awareness, FGD/KII participants were one in observing that governance is ineffectual in arresting the downward spiral of environmental management in the ARB. For instance, Illegal activities, such as logging, remain uncontrolled even if known by the communities in the ARB. The same is true of unregulated small- and medium-scale mining, illegal fishing; illegal dumping of solid waste and untreated domestic, agricultural and industrial chemical effluents in the Agusan River and its tributaries; of illegal occupation of public lands and of river easements.

It would seem, participants observe, that local and national government lack resources to police the Basin. Whatever little policing is done always falls short of what is required due to the meager resources commanded by government, and more importantly, due to the lack of commitment of its field personnel. It also does not help that major decisions that impact on the Basin, such as the award of forest concessions, mining, design and siting of irrigation systems, and flood control projects emanate from the national capital with little participation from affected communities. There appears to be a feeling of helplessness as parts of the Basin are used in ways that are not fully decided upon by the basin communities. As a result, participants observe that the Basin communities appear not to be in total control of the situation. They appear not to know “exactly what is happening”.

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As such, a general recommendation of participants is the conduct of information, education and communication (IEC) campaign to be able to disseminate information on environmental laws, cause and effects of destructive environmental activities, and the long-term benefits of communities if the natural resources are not destroyed. The IEC campaigns can also encourage volunteerism to monitor illegal environmental activities rampant in concerned localities. Together with the IEC, community organizing is also a vital activity for a more sustainable implementation of any activity. It is also a strategy that can be used to educate people and increase community awareness. The participants saw the need to unify government officials and communities in the management of natural resources so as to cooperation among stakeholders on any development activity.

Other recommendations include: (a) strict implementation of laws to address environmental issues and concerns; (b) establishment of alternative livelihood projects, creation of employment opportunities in the lowlands to reduce illegal logging activities of IPs, and non-IPs and promotion of sustainable farming skills; and (c) multi-stakeholder management and a formulation of a strategic management plan for the ARB.

A General Institutional ‘Helplessness’. Participants generally view Basin communities as helpless, both as individuals and as institutions, to act in ways appropriate for an effective, efficient, and committed exercise of governance. The many actors and players within the Basin are not acting in a cohesive, coordinated and integrated direction. There is not a single unifying institutional platform or a palpable unity in purpose amidst the plethora of policies, programs, projects and initiatives that, figuratively “flood” the Basin. These actions and decisions, as played out by institutions, government or non-government in the Basin appear to be “floating above Basin communities”.

Consultations, where these happen, appear to be “pro-forma” – either to gather data, or inform on what is happening, but not to solicit and understand their decisions. This is, it was observed, because initiatives are very much dependent upon external sources of funds. For instance, in CARBDP projects, decisions on the design of the flood control and irrigation systems are commented upon by FGD/KII participants as made by consultants and not by the “locals”. They perceive the timing and mix of Basin initiatives as uncoordinated both in time and space. .

Un-unified Basin Governance. The provincial governments in the ARB exercise, more or less, a geographic coordinating political umbrella over its municipalities. However, in reality, each LGU, including the three (3) provinces plan and implement projects based on the capacity of their annual budgets – plus national government programs, and, foreign-funded projects. FGD/KII participants gave information that each LGU negotiates at its own initiative and establishes political connections, to “get projects”. From general knowledge, no Basin-wide plan exists against which programs and projects may be juxtaposed, their comparative advantages arrayed vis-à-vis a set of, say, environmental criteria, or essential requirements of the water sector. Thus, respondents hold that it is difficult, if not impossible, to establish whether these individual initiatives fit into a framework of priorities in so far as the ARB is concerned.

National programs, sometimes assisted by foreign donors, are planned in the same manner as LGU projects, each independently, with timing and coverage, and sectoral relationships. These programs are also dictated more by the availability of funds such that whichever initiatives have funds gets implemented. FGD/KII participants attending RDC meetings aver that there is no record of national programs vetoed by local governments or by the RDC based upon a Basin-wide criteria of, say, environmental effects. Each project is subjected to the DENR environmental impact assessment procedure although this is done per project, not Basin-wide.

All externally funded initiatives are also reportedly absorbed by LGUs and NGOs with little changes to fit the local situation. Foreign funded projects, by and large, are dictated by policies and priorities of foreign donors.1 As mentioned, the two (2) RDCs review and pass judgment on Basin initiatives, but with little reference to a Basin-wide framework (because there is no Basin master plan), but on the priorities of the sectoral agency or of the RDC, or both. The RDCs meet,

1 A notable exception would be the PCEEM, a Canadian-funded initiative in Davao City. Here the local stakeholders’ role was given prominence.

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dialogue, and exchange assessments, but this is more for information sharing than for basin decision-making.

Need for an “Authority”. Several participants more especially those based in Butuan City are of the view that institutions, both government and non-government institutions in the ARB, should be combined into a local “authority”, with broad powers to review and approve national, sectoral, and local government Basin initiatives. They opine that local leaders should steer the governance of this “authority”, instead of the national government. In the same breath, however, they do concede that local funds to support the “authority” would be limited, and therefore, national and foreign funding will be sine qua non to the success of such an undertaking, especially for capital investment projects. They noted that RBOs like Bicol, Agno, Cagayan Valley, and LLDA are all national government initiatives, with funding from the national budget, but others did not prosper. However, these RBOs suffer under national political intervention until funds are reduced or cut off completely. FGD/KII participants propose that the ARB-RBO should be, first and foremost, a “local” body, with funding support for O&M coming mostly, if not fully, from Basin communities, government and non-government, including the private sector (business). It was noted that an Agusan River Basin Authority (ARBA) was proposed three (3) years earlier (2002) by the Congressman from Butuan City but was rejected, though, in a Sangguniang Panlalawiganresolution by Agusan Sur. The onus of the objection, it would appear, is that the bill, as drafted, failed to provide for a clear and decisive role for the Provincial Governments. The ARBA, as proposed, would have been wholly a national government entity much like other RBOs mentioned earlier.

In the foregoing, the elemental weaknesses of NWRB dictate for policy changes coupled with institutional strengthening for it to become an effective developmental and regulatory body on WRM. Its weaknesses particularly relate to the very issues of planning, regulation, management of resource use allocation and conflict resolution, and pricing of water resources that are at the heart of efficient and responsive functioning of basin-wide management proposed for the Agusan River.

The ARB, as is, faces interconnected institutional and environmental challenges, traceable of which to uncoordinated, fragmented, and disunited governance. This has resulted not only to piecemeal or sector approaches but also to an uncritical stance to development opportunities as they come. Lacking is a filtering mechanism as that served by a Basin Master Plan that would prioritize or weed out development opportunities depending on how these may respectively contribute or retard development of the Basin. With the Master Plan, it is clear from institutional stakeholder views, the welfare of the Basin should be the basis for which decisions are made. A wellspring of views further supports the creation of a Basin organization, the prospect of which in the ARB is further explored in the succeeding. This is in light of the need for a central authority that would govern and reconcile the seemingly disparate yet inherently connected concerns of people in the ARB.

5.3 FORMATION OF THE AGUSAN RIVER BASIN ORGANIZATION

An ideal approach to creating the Agusan RBO is to start with efficiency, which involves studying the prospects of harnessing what is available, productive, and realizable from existing capacity, as to be initially discussed. Five (5) working models are then presented, particularly, as to structure, best practices and/or lessons learned to help define the essential elements of the ARBO. These imperatives to RBO formation are then singled out to establish at least its institutional framework.

5.3.1 Tapping the Potentials of Existing Basin Organizations

(a) Required Capacity

The institutional strategy of creating an RBO requires strengthening the existing capacity relevant in the management of watershed issues. These are existing potentials of Basin institutions that have to be focused and designed for content. These include:

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Social mobilization involves the regular conduct of an annual stakeholders’ congress; the convening and coordinating of mandates and actions of key sectors involved in WRM, regulatory mechanisms, and water supply and use; and the management of information inclusive of tracking various internal and external interventions and investment options for WRM.

�� Land and water use zoning, essentially forest land use and micro watershed planning �� Monitoring and enforcement, dealing with the enforcement of environmental laws and

regulations pertaining to waste disposal, pollution, and resource utilization; and the strengthening of system capacities for policy, planning and implementation coordination

�� Provision of knowledge base for community action, primarily increasing public awareness through information, education, communication and establishment of structural systems for community participation

�� Effective environmental governance, mainly enhancing the capacity of LGUs and civil society for good governance; and, the empowerment of people and communities to participate in local decision-making, as well as the improvement of LGU revenues to be able to support Basin organizations

�� Science-based management information system (MIS), or the establishment of a common database for Basin organizations; and the conduct of science-based studies to better understand social and environmental trends/conditions in the Basin

(b) Capacity Building of Stakeholders

Awareness, knowledge and skills development should be able to address the following:

�� Policy review, particularly the implementation of DENR guidelines in resource enhancing activities

�� Watershed planning, primarily as to the: (1) formulation of forestland use and micro watershed management plans; and, (2) capacitating of LGUs and civil society in identifying environmentally critical areas (“hotspots”) and practical ways to conserve, preserve, and protect them

�� Paralegal training on deputization, to cover enforcement of environmental laws and regulations pertaining to solid and liquid waste disposal for pollution control and sustainable resource utilization

�� Coordination and integration system, mainly strengthening of the system for coordinated, integrated and convergent policy, planning and implementation

�� Community participatory techniques and practices, mainly involving: (1) community organizing to educate the people and increase community awareness; and, (2) social mobilization of ARB communities through grassroots IEC using local cultural symbols and messages. The latter aims to disseminate widely vital information on environmental laws; cause and effects of destructive environmental activities; and, the long-term benefits to communities of resource conservation. Likewise, the IEC intends to encourage volunteerism in the monitoring of illegal environmental activities rampant in concerned vicinities.

�� Data exchange, involving the establishment of a facility that can be used by the three (3) provinces in the exchange of scientific data from existing databases (data banking) for socio-economic, environmental, land use, and institutional purposes (updated listing of Basin stakeholders)

5.3.2 Existing Working Models

The Institutional Profiling/FGD activity has found five (5) models in the ARB area that could be considered as “options” for the ARBO. Four (4) of these are already “working models” in Eastern Mindanao, and are, therefore, “culturally valid” in having been demonstrated to work with actual, “on-the-ground” Filipino management inputs. The other is an Australian model.

The applicable model for the ARB could be an integration of the best features of these five (5) models and will have to be worked out during and after a series of “Roundtables” and “GO-NGO Workshops”.

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In summary, the models are as follows:

�� RDC Committee Concept; �� People Collaborating for Environmental and Economic Management (PCEEM) Foundation; �� Lake Mainit Development Alliance (LMDA); �� Davao Integrated Development Program (DIDP); and �� Murray-Darling Basin Initiative (Australia)

(a) RDC Model2

In the first FGD conducted in Davao City, the need to have an ARB Master Plan was highlighted. Geographically, the Agusan River Basin is divided by political jurisdiction into three (3) large provinces: Compostela Valley (the “headwaters”), Agusan del Sur (“midstream”), and Agusan del Norte (“downstream” or “lower basin”). With these divisions over the decades, the intensity of environmental problems impacting on the Agusan River has accelerated because of the lack of coordination among and between these three (3) provinces. The Mindanao Watershed Management Forum as pointed out in the opening remarks discussed several key issues that need to be addressed.

The first issue specified is the identification of physical watersheds. Watersheds (or “sub-watersheds”, since the Basin is a huge watershed) should be the basic planning unit. Due to political jurisdiction, the planning unit is the LGU. It was suggested that once the watersheds have been identified, it is necessary to take congressional action and declare Basin watersheds as “protected areas” under the NIPAS Act.

Second is the establishment of a body or an institution to sustain this endeavor. It was suggested that such entity be formed based on the MEDCO model to serve as the coordinating center of all these efforts. The body shall incorporate the ARB Master Plan in the economic agenda of the RDC for the entire Mindanao. Meanwhile, the Regional Watershed Development Council Sub-Committee under the RDC Committee on Environment and Economics can implement the program.

Third is the need to institutionalize the ARB as one institution that will make it compulsory for all LGU and NGAs within the ARB to participate, be involved and be active members. All stakeholders would be consulted, especially the business sector as well as NGOs, POs, and IPs in all undertakings. The ARB institution would also be highly participatory in nature. The institutionalization of the ARB should be able to create barangay-based watershed management units.

Fourth is the development of a Basin plan for LGUs that shall be included in their annual investment program. The fifth and final is the development of a strong IEC campaign to inform all stakeholders in the ARB.

(b) People Collaborating for Environmental and Economic Management (PCEEM)

Foundation

PCEEM started in 1998 as a 5-year Canadian-assisted project to provide sustainable management of seven (7) watersheds in Davao City. In 2002, PCEEM was granted a 2-year extension due to its excellent performance and pioneering working concepts in participatory management that emphasized the role and active involvement of institutional stakeholders. Since then, it has transited from being a government project, with DENR and Davao City as lead proponents, to a private foundation although retaining still its active government participation. The PCEEM Foundation (Foundation) is registered with the Securities and Exchange Commission (SEC) as a non-profit, non-stock foundation.

The challenge to the Foundation is how to keep it financially viable and functionally relevant beyond March 2006 when the Canadian funding terminates. At present, it is building a roster of

2 Proposed in a paper by RTD Emmanuel Isip, DENR-RO, Region 11, Davao City

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institutional stakeholders with obligations to pay annual membership dues. Due to its “hands-on” experience in the mobilization of institutional stakeholders, government and non-government including the private business sector, the Foundation has entered the development consultancy field, offering expertise built over the last seven (7) years to assist similar projects. To this, the ARB could be a potential client.

The Stakeholders Board, the policy-making body of the PCEEM Foundation, has institutionalized the Annual Convention of Stakeholders Assembly where Sectoral Board Members report to the Stakeholders Assembly on projects and activities that address watershed issues. The Annual Convention also serves as the venue where the annual “State of the Talomo-Lipadan Watershed” is reported.

How its environmental agenda is wedded into its research and development mandate could be seen in the manner by which PCEEM is built upon 2 technical structures; namely (1) watershed issues; and, (2) indicators of watershed status.

Watershed Issues. PCEEM Stakeholders have articulated six (6) clear statements, agreed upon, and supported by scientific data build over the last five (5) years. These are on:

1. Unregulated Water Extraction 2. Land Use Conflict 3. Deforestation 4. Improper Cultivation of Hilly Lands 5. Poor Solid and Liquid Waste Management 6. Limited /Government Resources

Indicators of the State of the Watershed. Referred to here are 10 indicators properly established by a solid database updated yearly through scientific investigation/research:

1. Physical Features (area, topography/slope analysis, climate) 2. Geological Features and Terrain (“terrain analysis” of remote sensing data for landslide prone

areas, soil, slopes, erosion, flood hazard) 3. Water Resources (headwaters and rivers, hydrological setting, groundwater recharge zone,

groundwater and surface water production and usage, water sources, water quality, water rights and private wells, domestic water supply infrastructure, water-related recreational areas)

4. Socio-Economic Conditions (socio-demographic data, economic growth rate, birth/deliveries, deaths/causes, morbidity esp. water-borne diseases, population/population density, households/size, subsistence threshold, labor force, access to water supply and sanitation facilities, health and education, literacy rate, demographic data on IPs)

5. Land Use (agriculture and pasture, conservation zones, residential, tourism development, protected low density residential, environmentally critical areas, protected areas (core zones))

6. Forests and Vegetative Cover (vegetative cover, bird communities, tenurial rights, forest-based and bio-diversity conservation and recreation areas)

7. Agriculture (rice, corn, vegetables production; fruit plantation production and hectarage, farming activities, livestock and poultry, fish and marine products)

8. Business and Industries (business classification, capitalization, employment, quarrying) 9. Waste Management (waste characterization and volume per year, per capita; waste disposal

methods; composting; LGU compliance with RA 9003) 10. Political and Administrative Structures (by LGU, and NGA programs operating in the area)

The watershed being the physical unit for environmental management highlights the ecological principle of the interrelatedness of the different ecosystems: for example, the rain in the forestfinds its way to the floodplains, then collects at the coast to empty into a bigger body of water – the sea. By looking at the continuum of natural systems, a cause-effect analysis of processes

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and activities can be established. Disaggregating the watershed into smaller units, on the other hand, makes it easy to identify issues and do management planning. This is akin to breaking up programs into projects, and projects into activities, and activities into sub-activities – the smaller disaggregation making a task more manageable.

Ecosystem-based management means managing environmental issues within the context of its physical boundaries. In the case of the PCEEM Foundation, it is with the Talomo-Lipadan Watershed, for its initial phase. Considering that a watershed is the whole catchment area where rain falls and flows down to the sea, the principle also cuts across political systems and cultures.

(c) Lake Mainit Development Alliance (LMDA)

LMDA may be considered as the closest option to a RBO considering its geographical composition and its hydrological planning unit. It is a joint venture of the two (2) provinces of Surigao Norte and Agusan del Norte, together with eight (8) of their municipalities bordering Lake Mainit. The LMDA was formed through a Memorandum of Agreement (MOA) signed March 1999, which invokes the Local Government Code (RA 7160) in bringing together into a planning and development alliance 10 LGUs (i.e., 2 provincial governments and 8 municipal governments), 6 NLAs (i.e., DENR, NEDA, Department of Tourism (DOT), BFAR, Philippine Information Agency (PIA) and DA), NGOs and POs operating in the area.

The O&M of LMDA is funded by an annual contribution of LGUs allocated from their budgets. The LMDA has also attracted project funds from NLA programs and foreign donors.

RDC-Caraga recognized the Alliance through RDC Resolution No. 11, Series of 1999:

“Lake Mainit as a diverse ecosystem with safe and crystal clear waters surrounded by verdant mountains and endowed with abundant natural resources, and as a ecotourism destination sustainably managed by an empowered citizenry for economic development and environmental protection.

With the aid of the Divine Providence guided by the principles of growth and development between communities and generation through skilled and resourceful personnel, the LMDA supports and assists the LGUs in effective and efficient delivery of basic services, enforcement of environmental laws and policies to pursue the sustainable development and management of Lake Mainit through the promotion of ecological and recreational values, conservation, protection of natural resources, enhancement of economic activities, people empowerment for the improvement of the quality of life of the constituents.”

Its objectives are to: (1) conserve aquatic resources and enhance their economic, ecological and recreational value; (2) properly manage forestlands and improve the land cover within the watershed; and, (3) promote greater involvement of the government, the private sector, local communities and other stakeholders in the sustainable management of the Lake and other critical resources.

The LMDA has a board consisting of LGUs, NLAs and NGOs, which meets monthly. A PMO handles day-to-day operations. It is headed by a Project Director3 and assisted by 2 senior part-time and 2 full-time project staff (i.e., each for administration and technical services). The senior part-time staff are the concurrent Provincial Planning and Development Coordinators (PPDCs), each seconded by the two (2) provincial governments. The staff is small and the PMO occupies a small modest office in Kitcharao, Surigao Norte. The strategy, to economize on operating expenses, is to draw in NLA and provincial staff for technical assistance, as the need arises. The PMO also belongs to a network of NGOs in Eastern Mindanao, which also assists the LMDA in project development and in fund sourcing.

In August 2005, about 75 LMDA stakeholder representatives held a 1-day conference in the Poblacion of Mainit to agree on outstanding issues of Lake Mainit and define measures to

3 A former Vice Mayor of Mainit LGU, Surigao Norte, the LMDA was his brainchild. Since 2000, he is devoting full time work in the Alliance, striving to guide its development to full fruition.

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address these. The Agri-Aqua Development Coalition, an organizing and training NGO operating in Mindanao, designed and conducted the assembly.4 Funding for the stakeholders’ assembly was provided by PACAP which is actively supporting the LMDA initiative.

The LMDA has attracted foreign donors to its five (5) main programs (from a list of 23 “High Impact Projects”); namely, (1) Upland Development and Management; (2) River Management; (3) Lake Management; (4) Waste Management; and (5) Institutional Strengthening. Its foreign-assisted projects are: (1) Agro-Forestry (AusAid); (2) the PhP1.5-million River Bank Buffer Zone Stabilization (PACAP-Australia); (3) German-funded Lake Resource Assessment (through a NEDA national program); (4) the PhP8.7-million Sanitary Landfill Project in Mainit Municipality (PACAP-Australia); (5) the PhP30-million grant-funded Focused Community Assistance Scheme (FOCAS), a livelihood program covering its eight (8) municipalities and also funded by PACAP-Australia.

(d) Davao Integrated Development Program (DIDP)

The Master Plan for DIDP indicates that Davao Integrated Development Program was originally established with joint development initiative of an alliance of LGUs, namely: Davao City, Davao del Sur, Davao del Norte and Davao Oriental in 1994. Member LGUs consist of four (4) provinces and three (3) cities at present, namely: the provinces of Davao del Sur, Davao Oriental, Compostela Valley, Davao del Norte and its component cities of Davao City, Tagum City, and the Island Garden City of Samal. The DIDP Area defined as a combined jurisdiction of these LGUs occupying an area of 19,671 sq. km and with a total population of 3.29 million in 1995.

The main thrust of the DIDP is to pursue more integrated and effective socio-economic development by mustering various efforts of the LGUs and by combining various resources including not only natural resources but also administrative, financial and human resources. Considering present development constraints and current regional development strategy, the DIDP Area development pursues a balance between economic, social and environmental development with the following objectives:

�� To expand/diversify employment opportunities and increase income levels of the majority of local people, correcting the biased ownership patterns of economic wealth and resources;

�� To protect or even enhance environmental quality in the face of rapidly increasing population and the presence of marginalized people; and,

�� To utilize, as a source of energy and dynamism for socioeconomic development, a mixture of peoples and cultural pluralism that may become even more pronounced through borderless communications within the BIMP-EAGA and beyond.

The DIDP strategy is to combine the following three strategies in time and space shifting emphasis from the Internal Integration strategy during Phase I (1999-2004), through Globalization Drive strategy during Phase 2 (2005-2010), to the High Tech-High Services strategy during Phase 3 (2011-2016).

Attainment of the DIDP development objectives shall be supported by appropriate developmental activities in economic, social, environmental and spatial/infrastructure sectors. Objectives by sector and sub-sector are established generally representing the economic, social and environmental aspects of the DIDP Area development. The DIDP development objectives will be attained though the pursuit of sector/sub-sector objectives.

(e) The Murray-Darling Basin (Australia) Initiative: Integrated Cross-Border River Basin

Management and Community Engagement

The Murray-Darling Basin (MDB) river catchments cover an area of 1.06 million sq. km or 14% of the total land area of Australia. It is located in the states of Queensland, New South Wales, Victoria, South Australia and the Australian Capital Territory. Annual economic output from the

4 Agri-Aqua is one of the conduits of the Philippines Australia Community Assistance Program (PACAP) and AusAID with offices in Manila and Davao City.

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Basin is around AUD$23 billion (USD$16.79 billion). Of this, AUD$10 billion (USD$7.3 billion) comes from agriculture, equivalent to almost one third of the value of Australia's total annual agricultural output.

While the use of basin resources has brought huge benefit to Australia, this has had some detrimental ecological, cultural, social and economic consequences. In recognition that no one government alone was able to effectively manage its emerging natural resource management problems (under the Australian federated system of government), the federal and relevant state governments negotiated the Murray-Darling Basin Agreement in October 1985 (which replaced the earlier 1915 River Murray Waters Agreement). Its aim is "to promote and co-ordinate effective planning and management for the equitable, efficient and sustainable use of the water, land and other environmental resources of the Murray-Darling Basin".

The management structure established to underpin the governance of the Agreement comprises the:

�� Murray-Darling Basin Ministerial Council, the decision-making forum; �� Murray-Darling Basin Commission, the executive and advisory arm of the Council; �� Community Advisory Committee, which provides the Council with advice and provides a 2-

way communication channel between the Council and the community; and �� Murray-Darling Basin Act 1993, ratified by the five (5) Basin governments through identical

legislation enacted by each Parliament.

Widespread degradation of natural resources in the basin was apparent in the 1980s, with over 50% of the original vegetation cleared. About 80% of land lies in arid and semi-arid regions and most of it had become degraded. This has been due to widespread soil erosion, river siltation, accelerated recharge of groundwater aquifers and subsequent discharge of saline ground waters to rivers, dry land salinity, loss of flora and fauna habitats, and invasion of pest plants and animals. Problems in the Basin included:

�� Increasing competition for scarce water resources; �� Resistance to further land clearing controls by State Governments; �� Increasing conflict over who should pay for remediation of degraded common resources; �� How to best mobilize and target the use of available resources for on-ground action; and �� How to address poorly specified institutional arrangements for common property resource

management.

These problems highlighted the need for basin-wide policies and programs under a complex institutional environment which had grown historically under each State jurisdiction regarding land and water management and a complex array of laws and policies which were not coordinated across State borders. Increasing knowledge of the threats to river and catchment health gained through audits of water use and salinity in the Basin also highlighted the need to set targets for resource condition and implement environment mitigation practices and programs. The institutional arrangements for programs of management originally lay with the five (5) State governments in the basin and there was no overall coordination of remediation program development across the Basin. The States require joint action in partnership with its rural and urban communities.

5.3.3 Imperatives for RBO formation

(a) Visioning and Implementation5

In the case of the ARB, a river basin authority will be critical to implementing conservation and development strategies for an ‘eco-regional vision’. The ARBO is also vital to in bringing together upstream and downstream stakeholders into an organization that facilitates understanding, commitments, and the transfer of funds and other resources to mitigate threats.

5 Adapted from Jamie Pittock, Director,WWF Living Waters Programme

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Several caveats, however, have to be raised to guard against expectations of immediate success of the RBO; because in reality, this would not be achieved outright. The absence of a blueprint for IRBM means that stakeholders and processes would have to learn by trial and error, and that its dynamics would have to move along with local cultures and local realities.

Developing a functional river basin authority in the first place can take many years, as experience of all successful RBOs dictate (e.g., 80 years for MDB). For this reason, early in the eco-regional visioning process it is important to consider what type of river basin authority will be required, who will be the main players, and how to engage them in helping to develop the vision for them to be able to establish ownership and take the lead in its implementation. The path to plan implementation and integration, however, is not rosy and as such organizational structures and process would have to be adaptable and responsive to change and the dictates of reality.

In the case of the ARB that crosses provincial boundaries, a major challenge is how to establish institutional cooperation and coordination in an environment where there is none. This involves convincing provincial governments and NLAs whose activities may not converge or be coordinated into an ARB Framework or Master Plan to work together for sustainable freshwater eco-regional management. Government engagement is critical as river basin management inevitably involves regulatory and financial measures that the non-government sector is not usually used to undertaking alone.

Dispute resolution particularly among various interest groups would probably be among critical intervention, considering the dispute almost always arises in the management of freshwater resources. Water allocation among competing uses is a prime example of an issue that is increasingly affecting even watered regions. The eco-regional vision therefore must be able to respect the variety of resource management issues and lead the formation of the ARBO to be able to assume a mediating and development role in resolving such issues.

(b) Structuring of an RBO

A river basin authority, as much as possible, should be structured in such a way as to:

�� Engage all key interest groups in a transparent process; �� Help these groups understand each others’ perspectives and consider different options; �� Draw on authoritative data concerning the environmental, social, and economic situation; �� Seek consensus whenever possible; and �� Have an expert, independent ‘umpire’ to provide advice where consensus is not possible to

help political decision makers take tough decisions

Salient structural elements of river basin authorities whose application could be tried in the ARB are as follows:

1. Heads of LGUs

A council, formed by legislation or by a MOA may be formed consisting solely of the Local Chief Executives (LCEs) of the three (3) provinces and one (1) city (Butuan) of the ARB. The council can provide a forum for establishing common political commitment on important measures needed to conserve a river basin. However, without other institutional structures to follow up these commitments, these types of agreements often falter in the implementation.

2. Government Regional Line Agencies

Regional directors of NLAs can meet more often and more regularly than heads of LGUs and can take high-level decisions that links with national programs and concerning funding limitations related to field implementation. It is important to ensure that such a council, which will be comprised by the existing RDCs of Region 11 and Caraga, including nature conservation agencies, such as NWRB, NIA, LWUA, and the DENR.

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3. Province-Based Heads of National Agencies

Provincial directors of NLAs, based in the provincial capital, can meet at least monthly than RDCs and process basin management issues in greater technical detail. However the effectiveness of such bodies can be reduced by interagency rivalries and by a cautious ‘second guessing’ of the political instruction of NLAs. It is important to ensure that such a provincial council of NLAs includes the DENR-PENRO and CENROs within the basin, especially the Protected Area Superintendent (PASu) of the Agusan Marsh.

4. Expert Committees

A committee of experts, coming from regional NLAs and the private sector (e.g., business, academe, consultancy firms) can meet in special technical groups and process basin management issues in more technical detail. It is important to ensure that the recommendations from such bodies are politically and financially feasible rather than representing a ‘wish list’ that is easily dismissed by political decision makers.

5. Stakeholder Committees

A Stakeholder Congress, organized into standing committees in between congresses (recommended January and July of each year) can meet regularly and engage, inform, and bring together the key sectors of society who will need to implement sustainability measures. The same recommendations apply to a stakeholder committee as to an expert committee, though there is an increased risk that the body can become deadlocked in conflict.

6. Authority Secretariat

For an authority secretariat, it is important that the ARB authority has staff to facilitate its work and to provide technical support with a ‘whole basin’ perspective, independent of any one member LGU.

7. Independent Chair

For each of these bodies described above, a well-respected person with excellent facilitation skills is needed as an independent chair to ensure that the work of the ARBO is advancing and to mediate disputes between stakeholders where possible.

(c) Essential Elements

From the foregoing presentation of working models on integrated organizing and area development, the following distinct features could be derived, each emphasizing a salient component in the planned structure and functioning of the ARBO. It should be emphasized though that the ARBO and Basin management would be allowed to evolve according to its own dynamics and that the following are meant to define critical elements that should not be done away with in its planning and formation.

�� Clear elaboration of development objectives and priorities (e.g., LMDA, PCEEM), which in the absence of, the ARB is vulnerable to the risks of ‘over-accommodation’. This arises from aiming to please all and conflicting development priorities set by a multitude of LGUs comprising it. The Basin is prone to lose direction as this invites a hodge-podge of activities to be formulated. Setting only a few yet realizable goals for the ARB during its inception appears more acceptable and manageable.

�� Functional governance and operating structure, that as exemplified by the Murray-Darling and PCEEM is largely oriented to development objectives and appears to have strategic focus (i.e., decision-making, advisory and community development arms of the MDB). This strategic focus appears helpful in determining organizational structure particularly operating divisions to carry out development activities on the ground and in the area of policy-making and advocacy.

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�� Supporting legislation, that should, however, go beyond the NIPAS declaration or supporting resolutions of RDCs and instead, engender support and grant political legitimacy to the ARBO as done by the 1993 MDB Act on the Murray Darling. Supporting legislation appears to be a basic requirement because the political legitimacy it establishes is able to also incite and compel participation (including time and funding commitments) from institutional stakeholders and direct stakeholders alike.

�� Clear environmental agenda, which is the most observable among all the models. The environment is the focal point of decision-making, the physical basis for integration, and the determinant of concrete action. In forming the ARBO, the environmental agenda should also take center stage and along with social constraints, be among the filtering mechanisms of the Master Plan.

�� Knowledge base development, as demonstrated by PCEEM Foundation. Knowledge base development is not only essential but also inexpendable in furthering the environmental agenda of the ARBO. It is only practical that the Basin could not serve its purpose as a planning unit unless its conditions are established, monitored and assessed to guide decision-making and implementation. This could only come from a continuously updated, credible and authoritative database.

Institutional Structure and Capacity, the goals of which are into:

1. Having a high level political body, at the provincial level, that can make hard political decisions and give a mandate to NLAs to work together for sustainability;

2. Having a respected, independent chair who can unofficially mediate between participants in conflict, i.e., act as “umpire” or “referee” where competing and conflicting uses of the ARB land and water would be the issue;

3. Ensuring that ARB authority represents both nature conservation and resource use participate, i.e., the principle of “protection and development”;

4. Having separate or combined expert and stakeholder advisory bodies that can be seen as an independent umpire or umpires to provide advice to political decision makers on tough decisions;

5. Keeping membership of these advisory bodies to a small, workable number, and 6. Having an authority secretariat independent of any one member LGU and with technical staff

that can assess and provide ‘whole ecoregion/basin’ advice.

In developing the “eco-regional vision” and translating it into a conservation strategy, the Master Plan should seek to identify and involve the institutional stakeholders of the ARB. Further, at the earliest opportunity the Master Plan should consider how to establish the Basin authority needed to implement the Master Plan that contains the “eco-regional vision”. For eco-regions within which numerous small basin institutions operate, it may be best to identify priority areas through the visioning process before strongly engaging all such authorities.

5.4 FUNDING THE AGUSAN RIVER BASIN ORGANIZATION AND ITS DEVELOPMENT

ACTIVITIES

Funding sources of selected IRBM organizations in other countries are identified in this section as well as those of three (3) Mindanao-based multi-sectoral development organizations and the LLDA. This is followed by a short discussion on possible funding sources for the Agusan RBO.

5.4.1 Identified Funding Sources of Selected IRBM Organizations

As shown in Table 5-1, the main sources of funds for IRBM organizations in other countries are budgetary allocations from their respective national governments and provincial/state governments within the river basins. Funding are likely sustained in richer countries while license fees and bulk water user charges seem to be acceptable fund raising models.

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Table 5-1 Sources of Funds for River Basin Organizations

River Basin Organization Source of Funds

Tweed Forum (Scotland)

Budgetary allocation from provincial/state members Grants from provincial/state members Lottery funding Revenue from contracted services Interest income from bank deposits

Seine Normandy Water Authority (France) Pollution Fees (industrial, agricultural and private)

Fraser Basin Council (Canada) Budgetary allocation from the national government Budgetary allocation from provincial/state members Revenue from contracted services

Delaware River Basin Commission (USA)

Budgetary allocation from provincial/state members Grants from provincial/state members Bank loans Tax-exempt negotiable bonds

Alto Tietê River Basin State Water Resources Cound, (Brazil)

Bulk water use charges Budgetary allocation from the state

Water Resources Management Agency (Trinidad and Tobago) License fees

Murray-Darling Basin Commission (Australia)

Budgetary allocation from the national government Budgetary allocation from provincial/state members Grants from provincial/state members Revenue from contracted services Interest income from bank deposits

Mekong River Commission (Southeast Asia) Grants from provincial/state members Funds from international donors

Dong Nai River Basin Commission (Vietnam) Budgetary allocation from the national government Funds from international donors

Some Philippine Working Models (not necessarily for IWRM or IRBM)

Davao Integrated Development Program (DIDP) Budgetary allocation from LGU members

Mindanao Economic Development Council (MEDCO) Budgetary allocation from the national government

People Collaborating for Environmental and Economic Management in Davao (PCEEM Davao) Foundation, Inc.

Grant from CIDA Environmental Service Fee from Davao City WD Membership fees

Laguna Lake Development Authority (LLDA)

Initial budgetary allocation from the national governmentBudgetary allocation from provincial/state members License fees PenaltiesForeign grants and loans

The three (3) selected multi-sectoral models in Mindanao have different major sources of funds. DIDP, which is a program initiative based on a joint venture agreement among LGUs adjacent to Davao Gulf, receives its funding from contributions from these LGUs. MEDCO, on the other hand, is a government organization under the Office of the President and receives its PhP23 million annual budget from the national government. The Presidential Secretary for Mindanao heads MEDCO.

PCEEM started as a project activity in 1998 funded by a grant from CIDA. It has been conducting scientific studies on the state of health of the Talomo-Lipadas Watershed (TLW). PCEEM has been gathering the following 10 health indicators on TLW: 1) physical features, 2) geological features and terrain, 3) land use, 4) forest and vegetative cover, 5) agriculture, 6) water resources, 7) socio-economic, 8) business and industry, 9) waste management, and 10) political and administrative structures. Funding will end in March 2006. PCEEM is an NGO with a host of

5-16


multi-sectoral members. Aside from the CIDA grant, revenue comes from membership fees and environmental service fees based on water usage.

LLDA is a government-owned and controlled corporation (GOCC) formed in 1966 with initial contributions from the national government and LGUs within the Laguna basin. It also collects license fees and imposes penalties on pollutants. Its mandate is stated as follows: “To lead, promote and accelerate the development and balanced growth of the Laguna de Bay basin within the context of national and regional plans and policies for social and economic development and to carry out the development of the basin with due regard and adequate provision for environmental management and control, preservation of the quality of human life and ecological systems, and the prevention of undue ecological disturbances, deterioration and pollution.”

5.4.2 Funding the Agusan RBO

(a) Several Funding Strategies

Funding is critical to the sustainability of the Agusan RBO and its activities. In general, funding would depend on the nature of its organization considering that its entitlements may differ whether it is created as a government agency or a GOCC. If a government entity or GOCC established by law or executive order, the Agusan RBO could avail of initial funding from the national government and LGUs comprising the ARB as well as annual appropriations from the national government possibly for the initial 3-5 years of its operations. Likewise, it could receive the proceeds of loans from multilateral financial institutions (e.g., ADB, World Bank and JBIC) with guarantee and local counterpart funds from the GOP.

The difference lies on the utilization of revenues collected. The Agusan RBO could also collect revenues although as a government agency, its collections would revert to the national treasury. However, as a GOCC, its revenues could remain within the corporation for its capital expenditures and operations. This implies that being a GOCC accords more independence and discretion for the Agusan RBO in the use of revenues.

A major constraint, however, in assuming a government identity is the recurring fiscal problem of the national government. This could set back the organization and/or funding of the Agusan RBO depending on how its proponents would navigate the national government budgetary process. Likewise, with this fiscal situation, there are indications that whether as a government entity or GOCC, the Agusan RBO, would have to compete with other priority projects for counterpart funds.

Despite the initial optimism with the implementation of the Expanded Value Added Tax (EVAT) or now the Reformed VAT (R-VAT), fiscal management remains to be a grave problem of the current administration. Although revenue collection has increased, the administration continues to be burdened by foreign debt servicing that limits the ability of the GOP to provide counterpart funds for development activities. In a roundtable discussion held 02 November 2005 over television station NBN 4, the incumbent Finance Secretary indicated that revenue generated from EVAT/RVAT in the first six (6) months of its implementation will all go to debt servicing, which indicates the precariousness of the fiscal situation. Only after six (6) months will 70% be allotted to debt service and 30% for infrastructure and social services. Of the PhP1.053 trillion proposed 2006 national budget, roughly 70% or PhP722 billion will go to debt servicing while only PhP331 billion will be allocated to legislative and executive branches. Based on data from the National Treasury, of the PhP722 billion allocated for debt servicing, interest payments will reach PhP340 billion while PhP382 billion will be for the amortization of debt principals. A welcome development though is the upgrading of the credit rating of the Philippines by some international financial institutions, which means that interest on new foreign loans would bear relatively lower rates.

Other than depending on the national government, however, another strategy is to form a council that could be the recipient of ODA project loans possibly through the DENR being the principal executing agency (along with the NWRB) for IRBM under which the Agusan RBO is proposed. However, the apex organization should not rely on annual national budgetary allocation for its continued operations and projects. As such, self-financing mechanisms should also be established for the Agusan RBO to be able sustain itself, preferably through contributions from its

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member LGUs and stakeholders. Only after establishing a commendable track record would it be appropriate for the Agusan RBO to consider converting into a GOCC.

(b) Self-Financing Mechanism for the RBO

Table 5-2 provides an initial assessment of the possible self-financing nature of the ARB by virtue of the financial capacity of its member LGUs given their 2004 financial status. The itemized presentation of financial status for these four (4) LGUs and component municipalities are in Table

5-3.

Agusan del Norte 308,996.6 87.3% 82.0% 55,601.8 34,918.4Butuan City 631,761.1 69.1% 69.4% 193,502.9 131,388.8Agusan del Sur 549,614.7 91.4% 77.0% 126,580.4 60,325.1Compostela Valley 407,118.7 88.6% 71.5% 115,956.8 100,631.9

MOOE - Miscellaneous and Other Operating Expenses

IRA - Internal Revenue Allotment

Source: Commission on Audit

Table 5-2 Summary of Aggregate Statement of Income and Expenses

For the Years Ended December 31, 2004

For Agusan del Norte, Butuan City, Agusan del Sur and Compostela Valley

Province/ City % IRA

% Personal

Services &

MOOE

Income From

Opera-tionsNet Income

(in thousand pesos)

Total Opera-

ting Income

The four major LGUs within the Basin would be able to contribute to the Agusan RBO. Butuan City has the largest 2004 Total Operating Income of PhP632 million followed by Agusan del Sur (PhP550 million), Compostela Valley (PhP407 million) and Agusan del Norte (PhP309 million). Of the PhP632 million operating income of Butuan City, only 69% is IRA. Substantial revenues are being raised from Property Tax, Taxes on Goods and Services, and Business Income. Meanwhile, net Income in 2004 for the four LGUs are substantial for Butuan City (PhP131 million) and Compostela Valley (PhP101 million), and somewhat large for Agusan del Sur (PhP60 million) and Agusan del Norte (PhP35 million).

Table 5-3 Summary of Aggregate Statement of Income and Expenses, Local Government

Units in the Agusan River Basin For the Years Ended December 31, 2003 and 2004, All

Funds (in thousand pesos)

2003 2004

Province/ City/

Municipality Total

Operating

Income

% IRA

%

Personal

Services

& MOOE

Income

From

Operatio

ns

Net

Income

Total

Operating

Income

% IRA

%

Personal

Services

& MOOE

Income

From

Operation

s

Net

Income

Agusan del Norte 302,360.9 89.2% 71.5% 86,158.9 69,004.1 308,996.6 87.3% 82.0% 55,601.8 34,918.4

Butuan City 595,755.5 74.6% 71.4%170,133.8

118,836.1 631,761.1 69.1% 69.4% 193,502.9

131,388.8

Buenavista 56,106.8 92.3% 73.0% 15,150.6 14,812.6 55,809.8 92.7% 78.5% 12,011.0 11,299.0

Cabadbaran 45,330.2 80.6% 91.8% 3,728.8

3,728.8 60,473.3 77.0% 89.1% 6,598.9

5,041.0

Las Nieves 46,908.1 88.0% 76.1% 11,220.0 9,591.6 40,649.2 98.1% 83.2% 6,827.6

4,095.0

Magallanes 30,619.5 64.4% 87.6% 29,114.3 67.6% 96.4% 1,043.0

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2003 2004

Province/ City/

Municipality Total

Operating

Income

% IRA

%

Personal

Services

& MOOE

Income

From

Operatio

ns

Net

Income

Total

Operating

Income

% IRA

%

Personal

Services

& MOOE

Income

From

Operation

s

Net

Income

3,799.2 3,013.5 655.1

Nasipit 40,484.6 77.9% 84.1% 6,421.7

5,744.6 40,000.2 79.0% 90.5% 3,815.9 (107.6)

R.T.Romualdez 20,628.3 87.4% 85.6% 2,979.5

2,510.6 19,726.0 91.3% 87.7% 2,427.0

1,740.8

Agusan del Sur 539,199.4 93.2% 74.9%135,119.6 56,909.1 549,614.7 91.4% 77.0% 126,580.4 60,325.1

Bayugan 91,929.5 86.4% 86.1% 12,797.9 8,782.5 91,610.4 86.7% 90.3% 8,918.3

6,006.5

Bunawan 49,462.2 82.4% 79.7% 10,056.0 6,770.6 47,458.1 85.8% 87.8% 5,777.5

2,558.9

Esperanza 86,519.5 95.2% 83.9% 13,897.2 6,591.6 87,434.6 92.2% 83.7% 14,229.8 12,200.7

La Paz 75,610.1 97.8% 82.6% 13,141.7 14,568.8 75,776.1 97.6% 87.7% 9,341.4 7,990.4

Loreto 81,200.7 96.0% 89.1% 8,852.8

4,897.9 79,184.1 98.4% 82.0% 14,272.1 12,853.8

Prosperidad 71,756.6 85.8% 89.3% 7,645.0

2,717.7 70,833.1 86.9% 85.9% 9,953.0

2,976.9

Rosario 42,541.6 88.9% 95.3% 2,010.1 (3,263.0) 45,074.2 81.4% 87.1% 5,808.2 (5,332.7)SanFrancisco 80,013.8 63.2% 77.2% 18,273.8

4,914.7 77,172.2 65.5% 91.2% 6,798.8

4,458.4

San Luis 59,939.0 95.4% 75.6% 14,639.4 10,702.2 58,886.7 95.6% 79.9% 11,847.3 4,753.8

Santa Josefa 35,164.1 90.2% 100.1% (32.8)

(614.0) 35,115.8 91.3% 87.7% 4,327.7

4,327.7

Sibagat 47,527.8 93.8% 83.9% 7,629.5

5,680.3 47,691.5 91.9% 84.7% 7,317.9

4,829.5

Talacogon 43,374.4 90.1% 78.6% 9,283.3

2,014.1 42,856.3 89.5% 75.4% 10,542.7

(922.3)

Trento 58,580.0 86.4% 84.4% 9,135.3

1,680.1 61,054.1 81.8% 90.8% 5,641.4

4,892.0

Veruela 41,745.5 97.5% 82.8% 7,177.4

6,358.4 40,363.9 97.0% 88.4% 4,670.7

4,415.6

Compostela Valley 411,868.4 89.9% 69.7%

124,928.3

100,036.9 407,118.7 88.6% 71.5% 115,956.8

100,631.9

Compostela 63,717.1 75.8% 77.8% 14,167.6 14,212.9 65,581.6 73.7% 81.9% 11,862.7 11,564.7

Maco 62,936.4 84.0% 83.9% 10,102.2 9,288.3 63,299.5 82.4% 90.0% 6,316.6

5,348.4

Maragusan 52,298.8 87.3% 88.1% 6,213.1

4,322.9 50,907.4 88.3% 86.5% 6,871.8

4,600.9

Mawab 38,643.5 76.8% 83.2% 6,473.7

5,575.4 38,248.4 75.7% 90.0% 3,836.7

3,148.5

Monkayo 90,971.5 79.5% 74.4% 23,296.6 18,273.5 90,045.7 78.3% 84.5% 13,990.2 8,608.6

Montevista 39,214.2 82.0% 88.9% 4,371.5

4,078.2 39,194.2 83.4% 88.5% 4,526.7

4,276.9

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2003 2004

Province/ City/

Municipality Total

Operating

Income

% IRA

%

Personal

Services

& MOOE

Income

From

Operatio

ns

Net

Income

Total

Operating

Income

% IRA

%

Personal

Services

& MOOE

Income

From

Operation

s

Net

Income

Nabunturan 64,469.8 72.5% 80.1% 12,828.9 11,971.7 - - - - -

New Bataan 53,325.1 91.6% 103.7% 1,981.6) 412.5 53,865.0 92.1% 98.8% 634.8 1,600.8)

Pantukan 64,765.7 89.0% 84.8% 9,873.3

8,023.4 66,527.0 86.6% 82.7% 11,531.1

8,986.6

San Vicente (Laak) 68,657.3 94.6% 83.2% 11,551.1 10,466.0 71,989.8 90.2% 90.8% 6,631.5

5,268.9

Surigao del Sur 405,042.4 94.9% 92.8% 29,187.0 689.5 397,380.9 94.4% 91.3% 34,734.5 12,470.1

Bislig City 255,124.3 82.5% 48.4%131,569.4 77,164.2 257,213.3 80.5% 70.4% 76,058.7 49,945.3

Barobo 37,637.3 93.0% 86.3% 5,150.5

616.3 37,213.1 91.6% 95.0% 1,874.0 (1,093.3)

Lianga 31,881.7 85.1% 84.5% 4,948.3

2,940.4 28,836.9 93.7% 91.1% 2,569.6

(122.7)

Lingig 36,085.7 92.3% 99.4% 203.1

(163.7) 39,494.2 82.5% 90.3% 3,839.3

859.6

Bukidnon 764,777.4 85.0% 62.0%290,915.5 65,449.0 826,358.6 77.5% 61.1% 321,743.6

129,102.4

Impasugong 68,936.3 91.3% 71.2% 19,868.0 16,273.9 70,183.0 89.7% 80.7% 13,541.2 10,768.3Davao del Norte 444,717.1 85.2% 91.0% 40,213.3 35,063.5 480,118.9 78.9% 89.2% 52,058.3 37,970.4

Kapalong 86,464.5 86.1% 93.0% 6,092.8

2,437.2 88,234.0 83.5% 83.1% 14,884.9 11,388.2

Davao Oriental 404,964.9 93.9% 81.7% 74,084.5 8,032.7 400,791.2 92.5% 80.6% 77,704.7 16,249.6

Cateel 42,695.8 95.6% 80.6% 8,270.9

7,642.2 42,461.3 94.7% 89.7% 4,381.3

3,002.7

Misamis Oriental 444,545.7 82.6% 68.6%

139,709.8

104,650.4 434,444.5 84.5% 72.9% 117,892.7 82,846.3

Claveria 53,891.3 95.6% 89.7% 5,534.8

3,318.2 53,058.0 95.8% 94.2% 3,054.0

367.6

MOOE - Miscellaneous and Other Operating Expenses IRA - Internal Revenue Allotment

Source: Commission on Audit

If able to collect and keep its collections for its own use, then the Agusan RBO could start collecting membership contributions, and expand this revenue base to include license fees, environment or flood control local taxes from common sources of public spending (e.g., movie houses, restaurants and bars) as well as water user charges and penalties on pollutants. Meanwhile, Table 5-4 provides the current levels of water discharge granted by the NWRB for the three (3) main provinces covered in the ARB. If several assumptions are made based on these granted discharges, an estimate of annual revenue could be derived. The revenue base could also be diversified to tap capital markets including contributions of overseas Filipinos native or with affiliations to the ARB once the ARBO is able to establish a solid and dependable track record of its development activities.

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Table 5-4 Approved Water Permits by the NWRB, 2004

Granted Discharge (in cm)

Province Ind Comm Domestic

Quar

rying

Fishe

ries

Muni

cipal

Irri

gation

Lives

tock

Fire

fightPower

Recre

ation

Agusan DelNorte 332.0 0.0 1,157.3 0.0 21.0 0.0 28,725.3 0.0 0.0 58,586.7 13.9

Agusan Del Sur 28.0 0.0 366.6 0.0 0.0 0.0 17,171.5 0.0 0.0 0.0 1.5Compostela Valley 2,135.7 0.0 121.3 0.0 0.0 0.0 16,314.3 0.0 0.0 30,945.0 0.0

Source: National Water Information Network (NWIN) Website

In summary, crafting the Agusan RBO would be art that closely links the nature of the organization to the potential sources of funds. As much as possible, it should rely on contributions from ARB LGUs and other stakeholders, and various means of revenues to be collected from Basin activities. As much as possible, the projects should be able to recover both capital and O&M costs.

The Agusan RBO should also be able to identify projects that are commercially viable and attractive for private business investment. In line with this, continuing support for investments in permanent production forest areas and the issuance of the following tenurial instruments (e.g., CBFMA, IFMA and SIFMA) may have to be instituted as well as those for area development for corporate and community-based economic activities (e.g., CBFMA, IFMA, SIFMA, TLA, FLGMA).

In the course of implementing development activities, however, the Agusan RBO may have to consider absorbing capital costs that could not be recovered but are necessary for development, which are termed social overhead capital (e.g., construction of irrigation facilities). In such cases, funding would have to be sourced from ODA loans with counterpart funds from the national government. The Agusan RBO may also consider an MTPDP recommendation of concentrating investments in quick gestating development activities such as those involved in rehabilitation and improvement of existing systems and facilities. Other options along this ethic are support for the establishment of small but high-impact projects (e.g., Small Water Impounding Projects (SWIP) and Shallow Tube Well (STW) for irrigation) and the establishment of new yet cost-effective and sustainable multi-commodity facilities. To ensure the long-term viability, support for such systems may have to be accompanied by environmental rehabilitation or improvement measures as those concerned with watershed management and pollution control, among others.

5.5 RBO FORMATION AND DEVELOPMENT

There is at present no single integrating or coordinating development agency for the ARB. The institutional fragmentation aggravates the downward spiral of the environment in the ARB.

Without an RBO, the institutional arrangements for the ARB will remain the same, i.e., institutions are not unified, and hence, fragmented, uncoordinated, un-integrated, and the environmental degradation will continue, as they have been degrading for the past decades.

5.5.1 Basin Governance Options

In view of the unabated deterioration of the ARB environment, the stakeholders consulted in October and in December 2005 were one in recommending the establishment of a basin apex

organization: a RBO (“river basin organization”). In the Butuan City workshop, October 28, the “Banaag Bill” was prominently cited by participants. It called for the establishment of a RBO patterned after an “authority” (LLDA) through national legislation. While this bill is the framework, much new materials have been introduced into this framework to incorporate recommendations generated during the FGDs and consultative Workshops conducted during Phase I of this Study.

This approach has been looked into by this Report as the initial framework for Phase II – formulation of the Master Plan, Institutional Development. It was subjected to thorough discussions by key institutional stakeholders during a series of “roundtables” among senior LCEs,

5-21


and heads of NLAs during Phase II (January-February 2006). The same consultative process was used in 6 consultative workshops at the 3 provinces of the basin (Compostela Valley, Agusan del Sur, Agusan del Norte) – each, separately held, for Government, and another for Non-Government institutional stakeholders.

A nationally legislated RBO, while difficult to enact and takes a longer time, is more permanent, lasting and stronger than an executive order of the President or a Memorandum of Agreement among and between LGUs, NLAs and NGOs.

Be that as it may, the organizing process for the RBO may take the form of a series of institutionalizing actions, where the possible three (3) options for Basin governance are:

i. Memorandum of Agreement (MOA) among the 3 Provinces and 1 City to set up a "Working Secretariat" that will prepare for an RBO along existing models of institutional collaboration in Eastern Mindanao, e.g., the LMDA and DIDP.

The initial effect is to provide for some measure of coordination and integration within the ARB. MOAs, however, might have limited effect on integration. Plenty of work has to be done on raising the capability of LGUs, being the main signatories and upon whose shoulders the funding of the RBO will devolve.

ii. Presidential Executive Order creating the RBO. This has the advantage of putting the resources of the Office of the President behind the exercise, although the leadership may have to move from local to national.

iii. Legislation of the RBO, to be initially founded on a “Draft Bill”, the main feature of the Agusan River Basin Authority (ARBA) Draft Bill is the institutionalization of sectoral participation.

This shall be in the form of a Stakeholders’ Congress that will select, from among the accredited Institutional Stakeholders (50% Government, 50% Non-Government) the Board of Trustees (50% Government; 50% Non-Government), as well as the Basin Administrator and her/his Staff. This structure makes institutional participation complete: from policy making to field operations. A broader base of participation in the involvement of LGUs and NGOs in the decision-making process is a vital and critical element introduced into the RBO of the Agusan.

5.5.2 The Proposed RBO

Situationer. Several factors have brought about the ineffective management of the basin:

�� the absence of a central coordinative body; �� insufficient planning and management capability of local government units (e.g., no

basinwide nor provincewide, zoning of environmentally critical areas); �� limited available, science-based data (esp. updated GIS maps) ; �� lack of “public awareness” (information, education, communications campaign); �� weak enforcement of environmental protection and conservation laws; �� absence of a comprehensive and integrated management program – no master plan; and �� inadequate resources and public investments.

Approach. The proposed RBO will unify Local Environmental Governance (LEG) of the 3 provinces (Compostela Valley, Agusan del Sur, Agusan del Norte), and 1 city, Butuan. The institutional unification is urgent due to the rapid and continuing deterioration of the environment in the ARB. For the last 5 decades, severe erosion in the uplands, aggravated by continuing deforestation has dumped heavy siltation and sedimentation into the water bodies; made worse by the contamination of surface waters. As of the end of 2005, respondents to this Study have confirmed that this condition has continued effectively unchecked. Respondents perceived this

5-22


deplorable situation as a direct outcome of the absence of a single environmental governance institution - despite the fact that the ARB is a single ecosystem since time immemorial.

Vision. Institutional stakeholders were unanimous in expressing the vision and philosophy of the proposed ARB Authority: concluding that the situation will not improve without a single, unifiying, coordinating and integrating institutional mechanism, the stakeholders provided articulation of what they want for the ARB:6

a “unity of purpose”, a “working together” a “convergence of interests”, an “agreement on a common agenda”, a “consensus on priorities”, a “sacrifice of narrow, parochial interests”, a “widening of vision”; a “control on individual agendas” a “unity in diversity”; an “avoidance of conflict and competition”, an “integrated river basin management” (IRBM)

Objectives. Considering the above, the River Basin Organization will seek to attain the following key objectives:

1. Coordination. Create a basinwide coordinating institution that will be empowered to examine development programs and projects and set priorities; seek external funding – national and foreign, and monitor/evaluate the implementation of projects by national and local governments, and by NGOs, basin-wide,

2. Sustainable Development. Through institutional mediation, facilitation and coordination, maintain a balance between the use of resources (“development”, “livelihood”) and the need to protect resources (“environmental protection”), where resources have been or will be significantly disturbed. In other parts of the Basin, where resources are largely undisturbed, protect and conserve the resources for future uses (sustainable development),

a. Ensure sustainable management, conservation, restoration and development of the upland areas in the Basin to check severe erosion that causes high siltation and sedimentation of water bodies in ARB;

b. Ensure that any proposed development interventions are planned, constructed and operated in an environmentally sustainable manner,

3. Institutional Stakeholdership. Bring in more stakeholders into the RBO and win everyone’s commitment towards the achievement of a common goal through “conflict resolution” which uses negotiations through consensus to avoid the polarization of positions of the participating sectors,

a. Institutionalize participation in local enviromental governance through the organization of sectoral institutional groupings that will channel the agenda of specific interest groups into the RBO;

b. Use “collaborative and integrative management”, i.e. the dynamic sharing of skills and knowledge among different sectors and discipline to come up with solutions favorable to all; to ensure that all stakeholders are able to participate in decision-making, planning, implementation, and monitoring and evaluation

6 Focused Group Discussions/Key Informant Interviews by 109 participants in 5 Consultative Workshops of Phase I, Institutional Development Component, October – December 2005) held in Davao City (October 17, DENR Region 11); Nabunturan, Compostela Valley (October 21, Provincial Capitol); Patin-Ay, Prosperidad, Agusan del Sur (October 24); Butuan City, Agusan del Norte (October 26, Luciana Inn for Province); Butuan City (October 28, DENR CAraga Region for NLAs). The consultation process was capped by a large workshop held in Butuan City, December 6-7 that presented the initial findings and recommendations of all Master Study components.

5-23


4. Capacity Building-Public Awareness. Build up local capabilities to manage watershed issues, entailing a “public awareness program” to change attitudes of institutional stakeholders from unawareness to the higher environmental-friendly consciousness, the transfer of knowledge, development of skills, and the infusion of appropriate technology to communities of stakeholders, as well as working with local organizations in field applications; to equip communities with culturally appropriate tools for environmental management;

a. Social Mobilization. Through a Public Awareness Plan, empower barangays and citizen groups to complement the planned devolution of authority by NLAs to the RBO by capacity building at community level;

5. Ecological Management. Base all planning on an “ecosystem-based approach” (“watershed/sub-watershed as the planning unit”) which is logical for managing natural resources because decisions are based on the interdependence of soil, water, forest, terrain, and human settlements and their activities,

a. Data Bank. Create a science-based data base, with GIS capability, to support proactoive Monitoring and Enforcement of ARB plans, programs, and aprojects.

6. Integrated Water Resources Management. Proactively manage water quality and water use; and allocate water in an integrated and environmentally sustainable criteria based upon the constraints of a finite resource. Reduce, if not entirely eliminate, waterborne pollution, particularly from mining and quarrying, agricultural plantations (e.g., banana, palm oil, etc.) but also including sedimentation, and conservation of bio-diversity, particularly in the Agusan Marsh, along with sustainable management of fish resources throughout the Basin,

7. Economic Development. Provide employment and livelihood opportunities through the creation of “economic zones” using the PEZA Law; lead in the organic farming to launch an “Agusan Organic Farm Product” brand for the export market;

Functions. The apex organization will be primarily a “development facilitator” – working through existing government/non-government institutions. It will function as a “coordinator” and “integrator”, holding reviews, dialogues, and negotiations with participating LGUs, NLAs, and NGOs in the ARB to realign policies, plans, programs, and projects (PPPPs) in accordance with the ARB Master Plan – its framework and its priorities. It will be:

• A “mediating body”, a “referee” to reconcile, through consensus, conflicting and competing interests, with veto power to override LGU/NLA programs that will not contribute to convergence and coherence of institutional actions that will ensure environmental sustainability.

• A political body for “social mobilization” - powered by a PAP (“public awareness plan”). • A storehouse of scientific knowledge base – formulate and validate environmental

indicators based on field data (i.e., a basin data base, with GIS) • A convenor of institutional stakeholders regularly (bi-annually) to coordinate policies for

the basin Master Management Plan

It will be supported by local communities for its basic O&M funding, but will have to seek national and foreign funding for large-scale undertakings requiring public and private investments.

The RBO shall have a twin agenda:

a) as a local environmental management body for ecological security (“unified local environmental governance” - ULEG); and,

b) a poverty alleviation programmer through economic projects, using the PEZA model to create “economic zones in the form of, say agri-processing estates– to modulate seasonal agriculture and forestry into year-round manufacturing industries and present a year-long demand for raw materials produced in the ARB. An “organic farming” strategy is suggested to be branded “Agusan” for “organic farm products” – geared for the export markets.

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5.5.3 The Proposed Structure and Working Secretariat

The initial proposed structure for the Agusan River Basin Organization is shown in Figure 5-1,while to jumpstart the process, a roll-out strategy is discussed in Annex 5A.

Water Quality Management

EMB,LGUs

DENR

RBCO

Consultative Body

RDCs, NGAs, LGUs NGOs, Private,etc.

IPDevelopment

NCIP, LGUs

AMWSManagement

DENR/PAWB, LGUs

WatershedManagement

DENR/FMB, LGUs

WaterResources

Development

NIA/LWUA, LGUs

FloodManagement

DPWH, LGUs

Project ManagementOffice

Head : DENR Region

National Steering CommitteeChair: DENR Members : NWRB, DPWH, DA,PAGASA,NDCC,etc.

Figure 5-1 Proposed Structure for the Agusan River Basin Organization

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�� Institutionalization of collaborative and integrative working arrangements among primary and secondary stakeholders in the course of planning, prioritizing, and implementing resource development and management interventions with significant contributions to poverty reduction and livelihood development.

�� Establishment and operationalization of ARBO that shall assume governance functions in harmonizing and realizing IRBM initiatives, supported by the development of enabling policy and corresponding institutional, organizational and operational frameworks.

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SECRETARIAT “ROLL-OUT” STRATEGY


Final Report

ANNEX 5A: SECRETARIAT “ROLL-OUT” STRATEGY

To take the institutional development strategy of creating a single, unified, RBO for the ARB among the 3 provinces and 1 city, a “working secretariat” will have to be organized. It will have an operational life for at least 3 years, as it works for the a) final drafting of the ARBA Bill, b) grassroots consultations, and c) congressional advocacy.

A. WORKING SECRETARIAT

At the conclusion of the 2nd Roundtable of the Institutional Development Component, the 3 Provincial Governors and the City Mayor of Butuan shall enter a dialogue to form a working “ARB Secretariat” within the framework of a “Memorandum of Agreement”. The Secretariat shall pick up from where the 2nd Roundtable concluded, and initiate succeeding steps to take the ARBA Draft Bill to further consultative processes, mainly with the 5 Congressmen of the ARB, and with the grassroots (municipalities and barangays), as necessary. It will be manned by fulltime staff, on contractual basis. The head is a senior public administration officer drawn from the ranks of LCEs/NGOs, with position and salary commensurate to a regional director of a NLA. He will be assisted by 4 Sr. Executive Assistants to work with the 3 provinces and 1 city as planners-advocates-communicators. The 5 senior staff will be supported by 1 each executive assistants who will backstop the senior staff. They will have support staff consisting of 5 secretaries, utility and drivers.

1. Final Drafting. The Working Secretariat will oversee the wide-ranging consultations, in the form of meetings, workshops, public hearings, and related preparatory activities – as a matter of advocacy. These activities will be undertaken through the 4 LGUs (3 provinces and 1 city). The draft bill is in its “final draft” form after the 2nd Roundtable held in Butuan City 23 February 2006. In this meeting, 2 Provincial Governors (Agusan del Sur and Agusan del Norte) and one Congressman (2nd District, Butuan City) requested the Consulting Team to provide them the proceedings of the 2nd Roundtable and the ARBA Draft Bill, so immediate action may be taken to bring the ARBA into fruition. In view of this request, an “advance” copy of the 2nd Rountable Proceedings and the ARBA Draft Bill, were transmitted by the end of February 2006.

2. Congressional Advocacy. Colngressman Lito Banaag (2nd District, Butuan City) is presently chair of the Environment and Natural Resources Committee of the House of Representatives. He announced during the 2nd Roundtable that he will take immediate steps to bring the ARBA Draft Bill into the initial congressional process. He also mentioned that officials of the Asian Development Bank have mentioned interest in supporting the ARBA.

3. Presidental Executive Order. Since congressional action will take about 3 years, if not more, a likely alternative is to advocate for a “presidential executive order” to bring in the national government into the advocacy and finance the Working Secretariat.

4. Public Awareness Program (PAP). An early preparation for the consultation process, the congressional and presidential advocacy, will be the roll-out of the PAP - within the ARB, regionally and nationally. The ARB situationer must be laid open to the public, the Master Plan shown in summary, and the RBO discussed in all media, and in public fora.

5. Social Mobilization. Public Events must be held in each and every LGU of the ARB to heighten the awareness and create a “demand” for the RBO. This will take the form of public demonstrations during town fiestas and foundation days of LGUs. Marches may be organized to advocate for the RBO in the offices of NLAs in Regions 11 and Caraga.

6. Institutional Stakeholders. A wide-ranging and intensive “stakeholders’ analysis” will be launched to identify all community organizations withint he ARB, group them into sectors representing similar agendas, and organize delegations and identify leadership in preparation for a “Institutional

Annex 5A-1/3


Final Report

Stakeholders’ Congress”. The holding of this congress will be given prominent publicity and will also mark the launching of the RBO. In advance of the congressional or presidential action, the RBO will be formally constituted, along the lines of the Draft Bill, through a Memorandum of Agreement among LGUs, NLAs, and NGOs, as the highlight and ending exercise of the Congress.

Proposed Organizational Structure Of The Working Secretariat

The proposed Working Secretariat will be organized along the lines described in Chart 7.0 (next page). It will be formed through a Memorandum of Agreement between the 3 provinces and 1 city of the ARB. Thus, the LCEs of these LGUs will form the Steering Committee as a policy-making body. A Project Management Office (PMO) will be set by by the 3 Provincial Planning and Development Offices (PPDOs), and the City PDC (CPDC) of Butuan, It is suggested that a full-time contractual senior professional, and a deputy, be hired for a 3-year contract (or a yearly renewable contract). They will be hired at the same level of status and compensation as the PPDCs/CPDC to afford them a stable negotiating level with the PPDCs/CPDC. As a matter of institutional strategy, it would be best to work together with and through existing institutions (i.e., LGUs, NGOs, NLAs, etc.)

The key staff of the PMO will consist of 3 Project Officers performing 3 vital functions:

1. Advocacy. The job objective of this unit is to follow through on the final consultations, if needed, at local, regional and national levels, and work with the Congressmen of the ARB to ensure its passage – at the earliest possible time. Pending its passage in Congress, this unit may consider lobbyingfor a Presidential Executive Order to generate political and financial support for the ARBA at the national level. To support Advocacy, the “Public Awareness Plan”, annexed to this Report, will be implemented.

2. Institutional Stakeholders. This unit will undertake an “institutional stakeholder analysis” or the inventory of government and non-government organizations that have a stake (or would be affected directly) by the activities of the ARBA. Extensive consultations will have to be made by this unit with these organizations to determine their interest and capability to be “institutional staskeholders” of the ARBA. They will include all LGUs (provincial and municipal – with an option to include barangays), NGOs and POs; Associations of Youth, Women, IPs, etc.; chambers of commerce and industries; organizations of plantation operators; the academe; the churches, etc. The strategy is to group these organizations into “sectoral groupings” to formulate a strategy of “representation” of institutional stakeholders to the “institutional stakeholders congress”.

3. Data Banking. As a “start-up issue”, the data for planning of basinwide programs have not been organized such that data across LGUs, NGOs, NLAs, etc. would be “comparable” and can be consolidated into a ARB data base. This unit will a) make an inventory of available data in the LGUs, NLAs, and NGOs; b) “screen” what data are important and whether they are “comparable” (i.e., the data parameters are similar); c) convene a “data summit” among planning officers of the LGUs, NLAs, NGOs, etc. to determine “the” set of data needed for basinwide planning, to determine the gaps and what additional data should be generated; d) generate the additional data to fill the gaps; e) simulate the use of data for basinwide decision-making. Mapping using GIS will be crucial to this unit.

Annex 5A-2/3


Final Report

A. POLICY MAKING: STEERING COMMITTEE

3 PROVINCIAL GOVERNORS; 1 CITY MAYOR

B. TECHNICAL WORKING GROUP: PROJECT MANAGEMENT OFFICE (PPDCs of 3 PROVINCES; CPDC of 1 CITY)

(1) PROJECT COORDINATOR/ (1) ASST. PROJECT COORDINATOR)

C. FIELD COORDINATION

1. ADVOCACY 2. INSTITUTIONAL STAKEHOLDERS 3. DATA BANKING(LGUS, NLAs, Congress, etc.) (Instl Stakeholder ID/Analysis; Assembly) (Inventory, Networking, GIS)

(1) PROJECT OFFICER (1) PROJECT OFFCER (1) PROJECT OFFICER

D. ADMIN SUPPORT GROUP (4ea.) Secretaries, Drivers, Utility/Messenger

FIGURE 5A-1 PROPOSED WORKING SECRETARIAT

B. OPERATING BUDGET

A 3-year budget is suggested for the “Working Secretariat” based on the estimate, based on experience, that the legislation for the ARBA Bill could take that much time. Although, in the 2nd

Roundtable, the Institutional Development Component, of 23 February at Butuan City, Congressman Lito Banaag is optimistic that it will take less than that. But to be certain that the ARBA will be carried forward, a 3-year budget is proposed below.

1. Personnel and Services, to cover the costs of the Steering Committee, the Technical Working Group (TWG), Project Management Office (Project Coordinator/Deputy and Staff), Field Coordination (3 Project Officers), and an Admin Support Staff - @ P3.0 million/year, for 3 years……………... P9.0 million

2. Advocacy for 3 years, @P1.0 million/year……………………………………. P3.0 million 3. Public Awareness Plan, 3 years, @P1.0 million/year……………………… P3.0 million 4. Institutional Stakeholders, 3 years, @P1 million/year…………………….. P3.0 million 5. Data Banking, 3 years, @P1.0 million/year………………………………….. P3.0 million 6. Travel & related expenses, 3 years, @P1.0 million/year………………….. P3,0 milliion 7. Vehicles, 4 units, @P1.5 million (total P6M), plus maintenance and fuel,

for 3 years, @ 25% of vehicle costs/year (P0.375M/year)………………….. P7.125M8. Computers (10 units), other Office Equipment, Office Furniture,

and supplies for 3 years, (25% of equipment and furniture costs)………….. P6.0 million 9. Space Rental, 1 central office, 2 satellite offices, @P1mllion/year………… P3.0 million 10. Contingencies (annual price increase 10%/year; plus 5% on unforeseen

items =35%)………………………………………………………………………. P14.0 million 11. BUDGETARY TOTAL, 3 yrs…………………………………………………… P54.0 Million

Annex 5A-3/3

PARTICIPATORY APPROACHES ANDDEVELOPMENT STRATEGIES


6.0 PARTICIPATORY APPROACHES AND DEVELOPMENT

STRATEGIES

6.1 KEY ENVIRONMENTAL ISSUES AND STAKEHOLDER PRIORITIES

(i) Entire Basin

Needs assessment was carried out as part of the public consultation process among secondary stakeholders from downstream, midstream and upstream areas of the Basin. This has allowed: (a) the identification of perceived environmental issues confronting the Basin and b) the prioritization of issues considered important by local people. Table 6-1 contains the results of the needs assessment results, environmental issues of which are color-coded according to priority.

Table 6-1 Primary Environmental Issues (Needs Assessment) ARB, 2005 Downstream Midstream Upstream Basin-Wide

1Flooding Lack of potable water

1Flooding Illegal resources extraction

1

Inadequate devolution of watershed managementfunctions

1

Inadequate devolution of watershed managementfunctionsLack/ inadequacy of water supply

2Poverty Upland degradation

3 Flooding 2

Inadequate irrigation Underutilization of Agusan River Upland degradation Weak stakeholder participation

2

Lack of potable water Lack of livelihood Land conversion Upland degradation

3 Water pollution 3 Water pollution

4Dwres

indling fisheries ource

4

Poor waste managementErosion and siltation Poor planning and managementWeak and conflicting policies

2

Flooding Poverty/lack of livelihood Upland degradation Land conversion Inadequate irrigation Underutilization of Agusan River

5 Loss of biodiversity 4

Riverbank erosion Poor pollution managementWeak law enforcement Riverbank settlements 6 Land tenure

5Displacements by banana plantations

6Water-relateddiseases5

Loss of biodiversity Gender issues

3

Water pollution Poor planning and management Weak and conflicting policies

6Poor waste managementDwindling fisheries

7 Timber poaching

4

Erosion and siltationIllegal resource extraction Riverbanksettlements

8Poor irrigation management

5

Poor waste managementDisplacement by banana plantations Dwindling fisheries resource Loss of biodiversity Gender issues

6Water-relateddiseasesLand tenure

7Poor irrigation management

Priority environmental issues throughout the Basin (Basin-wide) are determined after synthesizing the major issues identified by downstream, midstream, and upstream secondary stakeholders.

6-1


An overarching priority issue is poor environmental governance, which encompasses uncoordinated planning and management, inadequate devolution of watershed functions, conflicting policies/ tenurial instruments, weak law enforcement, poor stakeholder participation and gender concerns. On the other hand, the issues that stand out as common priorities across the Basin are flooding, inadequate potable water supply, water pollution, upland degradation, poor waste management, erosion and sedimentation, loss of bio-diversity, dwindling fisheries resource and poverty including inadequate livelihood opportunities.

The above results were validated during the technical review and analysis of existing conditions in the Basin, carried out using the Environmental Checklist Methodology. Based on the technical evaluation, the six most significant environmental issues in the Basin are:

1. Surface water quality, as a result of pollution from industrial (notably mining and the use of mercury in ore processing), agricultural chemicals (fertilizers and pesticides), domestic wastewater, and solid waste and sedimentation;

2. Water quantity, as it relates to flooding, inadequate potable water supply and irrigation, and untapped hydropower potential;

3. Ecological health of the Agusan Marshland/Wetland, which is compromised by water pollution, bank erosion and sedimentation, illegal resource extraction, population pressure, and unsustainable farming practices;

4. Upland degradation, which is related to the absence of appropriate vegetation cover to retard and dissipate rainfall run-off as well as unsustainable upland farming practices;

5. Decline in fisheries resources, due to water pollution, population pressure, and illegal fishing activities; and

6. High incidence of waterborne and water-related diseases, due to water pollution from human and natural sources, and inadequate potable water supply, sanitation and wastewater treatment facilities

Obviously, there are detailed and inter-related sub-issues within the six (6) main issues. More often than not, the poor are the most vulnerable to the effects of poor management of these environmental issues, implying further that improvements in environmental governance tend to have concrete and realizable impact on poverty reduction in the Basin. It cannot be denied, however, that current environmental conditions pose strict limitations to existing and proposed development interventions in the Basin, and requires stringent assessment of environmental impacts to be considered noteworthy for continuance or implementation.

(ii) Agusan Watershed

KIIs were conducted with primary and secondary stakeholders on the status of watershed management in the Basin. Primary stakeholders consisted of barangay officials and watershed occupants (including farmers and mining operators) from significant portions of the Agusan Watershed in Butuan City (Agusan del Norte); and the municipalities of Bayugan, Esperanza, Talacogon, San Francisco, Prosperidad, and Bunawan in Agusan del Sur as well as Nabunturan, and Maragusan in Compostela Valley. Secondary stakeholders from these areas comprised of city/provincial/municipal environment and natural resource officers (CENRO/PENRO) and Regional Technical Directors (RTDs) from respective DENR offices in Caraga and Region XI, as well as officials from various LGU and local government agencies (LGAs) such as DPWH, MGB, BFAR, DA, NCIP, and DA.

The results of the KIIs revealed perceived priority concerns regarding watershed management in the ARB, as shown in Table 6-2. The findings not only validate but also further reinforce the gravity of environmental issues identified in the above needs assessment workshops.

6-2


Table 6-2 Priority Concerns on the Agusan Watershed, 2005

Concern/Issue Priority Response (%)

Timber poaching 71.43Lack of livelihood opportunities 57.14Flooding 52.40Soil erosion 47.62Heavy siltation 38.10Mining operations 38.10Declining water quality/ water pollution 38.10Land conversion (palm oil and banana plantations) 38.10Slash-and-burn agriculture 28.57Displacement of IPs 9.52Illegal fishing 9.52Closure of wood processing plants 9.52Illegal occupancy of timberlands and riverbanks 4.76Quarrying in riverbanks 4.76Illegal operation of sawmills 4.76Improper waste disposal 4.76Presence of drifted/sunken logs 4.76Risks in forest protection work 4.76Backwater flow causing flooding 4.76Weak implementation of laws and policies 4.76Low economic development 4.76

As indicated, the top four (4) watershed management concerns in the ARB tend to be timber poaching (71.43%), lack of livelihood options (57.14%), flooding (52.40%), and soil erosion (47.62%). Rather than be viewed in isolation though, these concerns along with 17 others interestingly demonstrate pressures not only on water resources of the Agusan watershed but also on essential forest and land ecosystems intricately linked to it.

Forest resources. A forestry-related concern that happens to pose the major challenge to watershed management is timber poaching (71.43%), an activity found strongly related to poverty, with unemployed locals forced to engage in it amid the lack of alternative livelihoods. In some areas (e.g., San Francisco), the presence of a market for forest products and existing processing plants also provide an incentive for this illegal activity. Timber poaching also occurs near mining areas (e.g., Nabunturan) where wood is being used in lining mining tunnels.

Land resources. Meanwhile, land use practices impacting heavily on watershed areas of the ARB tend to be mining (38.10%), land conversions (38.10%), unsustainable forms of slash-and-burn agriculture (28.57%), and illegal quarrying (4.76%).

Mining operations singled out by interviewed stakeholders tend to be those into flusher and open cut mining as well as those undertaken in small-scale by migrants. Mining is known to be the source of ‘easy money’ in several remote and poor municipalities of Caraga to the point where no care is exercised regarding pollution and health consequences.

On the other hand, conversion of forest lands, including idle lands, to palm oil plantations appears to be popular in several areas in Agusan del Sur, particularly those entered into CBFMA. Financing is provided for farmers per hectare thus engaging more lands in the process. The lure of financing tends to be justified by some farmers who contend that no similar financial incentives are provided for the establishment of tree plantations. In several areas in Davao, banana plantations are increasing at the expense of forest lands because of a reported strong market for, and thus income generating potential from bananas. While encroachment in areas declared exclusively for forestry is a major violation, such plantations are known to adopt monoculture, which risks species biodiversity and lowers resilience, and are into pesticide use, which may aggravate the incidence of pesticide pollution in the ARB.

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Kaingin, or slash-and-burn agriculture, is reported to be undertaken haphazardly and at a pace faster than the regeneration rate due to the absence of profitable alternatives to farming in such areas as rural parts of Butuan City, Agusan del Sur (e.g., Bunawan, San Francisco, Prosperidad) and Nabunturan in Compostela Valley. Meanwhile, quarrying particularly along riverbanks, as reported in Butuan City, tends to be intriguing with permits reported to have been provided by concerned LGUs although the practice is generally untenable in exposing aggravating riverbank erosion which is already a problem in the ARB, and increasing the threat of landslides in affected areas.

Apparently, deforestation and businesses operating in support of it (i.e., wood processing plants) as well as unsustainable forms of land use discussed above had spawned and further aggravated incidence of soil erosion (47.62%) particularly along riverbanks and contributed to heavy siltation (38.10%) of the Agusan River.

Water resources. The Agusan watershed is already at risk with the foregoing disruption of forest and land resources within it as well as from activities contributing to further despoliation of its waters and related fishery ecosystems.

The watershed is now particularly vulnerable to further declines in water quality (38.10%) mainly due to mining pollutants (e.g., mercury, cyanide) from upstream mining operations as reported in some barangays of Agusan del Sur (e.g., Bunawan, Esperanza). Water quality is also diminished by improper waste disposal ranging from those generated by wood processing plants (e.g., Bayugan) to the scores of drifting logs in several waters (e.g., Esperanza), which remain uncollected after the total log ban was imposed and several owner-operators were not able to acquire wood recovery permits.

Illegal fishing appears to be highly poverty-related with small-scale fishers as those in Butuan City resorting to ‘kuryente’ (electric) fishing just to enhance fish catch. The practice, which involves charging currents with electricity to stun fish, are known to harm fish populations as far as 100 sq. m and permanently disable reproductive capacities of surviving fish species.

Other than threats to quality, the Agusan watershed is also becoming more inclined to flooding beyond its natural predisposition to it. Flooding, while considered a natural phenomenon in the ARB due to the location of some areas below sea level (e.g., Butuan City), is at present times being aggravated by deforestation and the clearing of trees along riverbanks. To an extent, backflows of the Agusan River during heavy rainfall are already affecting several municipalities such as Talacogon and Bunawan in Agusan del Sur. In Butuan City, on the other hand, flooding is being attributed increasingly due to reduced drainage capacities brought about by garbage build-up. The accumulation of garbage in drainage systems has led to clogging and higher susceptibility to flooding during prolonged heavy rainfall.

One should understand though that pressures on forest, land, and water ecosystems have social and institutional dimensions, as those succinctly identified in the earlier sections of the environmental study. It is noteworthy that in the KII, three (3) of these dimensions appear to be prominent as far as watershed management is concerned and may have to be given attention during the master planning process.

�� The debilitating or attenuating nature of poverty, which among all stakeholder groups interviewed, happens to be the overwhelming justification behind harmful and unsustainable environmental practices done in the Basin. Poverty is often rooted to the lack of options or choices, particularly to raising additional incomes that would augment presently inadequate incomes. Locals resort to poor choices with harmful environmental effects not out of ignorance but from a general sense of hopelessness in their present state in life. This outlook is pervasive among palm oil plantation farmers, small-scale miners, farmers, illegal fishers, plant workers, and loggers located at the lowest level of the environmental destruction chain in the ARB.

�� Insecurity in tenurial instruments often leads to disruptive resource use, as those exhibited by almost all illegal incursions, in riverbanks, forestlands, farmlands, mining areas, or public lands, and whether by lowland migrants, upland settlers, and industries operating without

6-4


permits. Such incursions, in some cases, have led to the displacement of IP groups within the watershed area; in part, also attributed to non-recognition of their ancestral claims, or conflicts among tribes regarding these claims. Among several legitimate wood-based and mining industries, on the other hand, tenure instruments tend to be corrupted due to weakness in environmental governance particularly in incentive setting, regulation, and enforcement. The same may be said for reported CBFMA areas now being converted to palm-oil plantations.

�� The capacity for environmental governance should be strengthened to effect positive change, particularly at the side of government agencies given their regulatory and enforcement function but, as revealed by the KII, are held inutile by the lack of logistics, funding, support services and organizational capacity to exercise such functions. The case of forest protection illustrates this point, where IRRs against timber poaching could not be properly enforced by the lack of budget and adequate workforce as well as concurrent powers and resources to effectively police and prosecute violators.

6.2 BASIN REALITIES AND KEYS TO INTEGRATION

If an overwhelming number of basin issues and the different levels of prioritization assigned each by various stakeholders would be grouped, the Basin appears to possess three (3) attributes shown in the IRBM Conceptual Framework (Figure 6-1).

Figure 6-1 Conceptual Framework of IRBM for Agusan River Basin

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An assessment of these five (5) attributes given their respective pre-conditions and findings specific to the Basin is in Table 6-3.

Table 6-3 IRBM Attributes and Preconditions and ARB Gaps/ Problems ARB, 2005-2006

Attribute Pre-Conditions Gaps/ Problems in the Agusan

Physical Unity

Well-established jurisdictions and physical boundaries

Well-established physical membership in the ARB planning area

Overlapping political jurisdictions in several barangays within boundary claims of ADS and CV

All provinces within ARB planning area

InstitutionalUnity

Strong and well-coordinated institutions

History and practice of cooperation and integrated action

Strong legislation and policy/law enforcement

Financial sustainability of LGUs

Institutional fragmentation Un-unified Basin governance No ARB legislation and no ARB authority Institutional disorganization and other

weaknesses blamed for crucial environmental problems

Financially sustainable LGUs

EnvironmentalValue

Good condition of watershed resources (water, land, forest, range, wildlife, and others) and forestry resources

Sound environmental protectionEffective impact mitigation and monitoring Strong stakeholder

management of environment

Accurate knowledge database

Water quality central problem in reducing quality of existing stocks and those recoverable for use in the future (artificial shortage)

Water quantity at risk by rising irrigation water demand and flooding incidence

Watershed resources (water, land, forest, range, wildlife, and others) and forestry resources at risk including special-value resources (i.e., Agusan Marsh)

High incidence of water-related diseases Weak enforcement of environmental laws/policies Stakeholder responsibilities compromised due to poverty and other social dimensions of environmental destruction in the Basin

Insufficient and poor quality of knowledge data base Lost productive and protective values of most watershed areas

Watershed areas not addressed for their multiple uses for the benefit of various stakeholders

Resource Competition

Economic pricing Equitable allocation of resourcesEquitable cost-sharing

Pricing of water for domestic use is established

Pricing for water esp. irrigation generally subsidized and not reflective of scarcity cost

Costs for development and O&M for water internalized only in domestic water supply pricing

No effective pricing for other water uses (hydro, mine tailings pond, flood control)

No unified criteria on water resource allocation for various uses. Resource ‘allocation’ determined on a per-project basis

Knowledge database also disorganized

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Attribute Pre-Conditions Gaps/ Problems in the Agusan

SocialCarryingCapacity

Respect for local knowledge and traditional resource management

Representation of local stakeholders and vulnerable groups

Strong stakeholder participation and capabilities

Population growth and migration posing largest social demographic threats to resources

High incidence of water-related diseases Indigenous practices on sustainable

resource use waning due to poverty and outside influences

IPs have strong bonding with the environment esp. with work cycles

Economic insecurity (i.e., livelihoods, asset base) high in upland and rural areas

Insecurity of tenure and land use conflicts encouraging unsustainable resource use

Perceptions on asset base, supply dependence on water, and empowerment issues suggestive of lack of access, ownership, and management opportunities for water supply

Limited gender mainstreaming despite women shown as active resource users, decision-makers and asset-owners

6.2.1 Key Basin Realities

The Development Framework on IRBM for the ARB involves the interplay of its Environment, Institutions and Stakeholders, of which critical concerns and capacities define the nature of development strategy and priority projects of the Master Plan as shown in Figure 6-2. Governing this is an enabling environment of laws and institutions that serves to legitimize political support and mobilize the needed human efforts, resources and financing to effect positive change.

Figure 6-2 Development Approach to IRBM for Agusan River Basin

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Against this, Basin realities stand out; namely:

�� The Environment of the Basin is in a critical position of losing its value as a resource. This loss is reflected, for instance, in the decline of water quality from the combination of economic activity and poor urban environmental management, and the decline in forest resources vis-à-vis A&D lands. In danger is its ability to sustain various water uses (existing and potential), livelihoods, and life-ways of its people (i.e., IP and non-IP groups, those in the Marsh and outside). In the same vein, it is in danger of losing its ecosystem function in the degradation of watersheds that encompass its land, forest and water resources.

�� Institutions in the Basin have long been sector-oriented and as such, have not been trained and exposed into working together into cohesive units with unified platforms for action or with mechanisms that encourage coordination, joint review or cross-sector deliberation of issues and initiatives. There seems to be very little cross-sector integration; in such aspects as policy-making, planning, budgeting, funds management, and information management. This situation yields to conflicting and overlapping priorities and projects of government agencies and LGUs in the planning area.

�� Stakeholders in the Basin, both direct and indirect, and inclusive of IP and non-IP groups have long been so removed from actual planning, decision-making and action-taking to the point that existing projects and initiatives do not necessarily address their priority needs. In some aspects, these projects do not necessarily come in the form that is ‘enabling’ or that which allows them to become active participants in implementation and project development. Empowerment, for instance, is among the top five (5) issues scored by primary stakeholders in all areas of the Basin, particularly ranking highest in those living upstream.

�� An overwhelming need for a River Basin Organization persists in all consultative workshops by stakeholders, including provincial governors and local lawmakers. The RBO is considered necessary to solidify governments, institutions, sectors and local peoples into a unified development strategy for the ARB, as demonstrated in the 2nd

roundtable discussion in February 2006 in Butuan City.

�� This RBO is also relied on to translate development strategy into key interventions addressing critical development needs and priorities. Other than this, the Agusan RBO is expected to implement mechanisms and processes by which relevant stakeholders could rise above sector concerns, and instead deliberate and work together towards solving a common development problem or cause. The latter could be achieved by building on existing institutional arrangements already found effective in promoting unity among various sectors and agencies.

Taking to mind these realities, it is imperative for IRBM planning for the Agusan to be able to define the means to integrate the Environment, Institutions and Stakeholders in the Basin. These shall be the basis for the ARB Water Policy, the Development Vision, Goals, and Objectives, and Development Strategy.

6.2.2 Keys to Integration

The strategy is to define the areas where doing IRBM:

�� Intersects with critical needs and concerns in the ARB �� Presents a cross-sector alternative to sector-oriented planning and implementation of

Basin agencies �� Satisfies the elements of integration essential in promoting IWRM

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i) IRBM and Critical ARB Needs and Concerns

It is important foremost that IRBM be responsive to the priority critical needs and concerns raised by stakeholders during the regional/ provincial/ municipal and community consultations made all over the Agusan.

To be able to prioritize well the issues/ concerns, each of these were:

1. Identified according to those specific to ARB and relevant to its stakeholders 2. Identified not from literature but from stakeholder consultations, primarily made in

Phase 1 3. Evaluated as to urgency and considered a priority if:

a. Serious and recurring in the ARB b. Of greatest importance to the largest number of stakeholders

Undertaken in Phase 1, the process yielded five (5) priority Basin issues and two (2) special case themes. In all, these comprised the first seven (7) ‘key themes’ comprising he Development Strategy for the Basin. These and their defining problems, based on the consultations and prioritization process, are in Table 6-3. The inter-related concerns are shown in Annex 6A.

Table 6-3 Priority Issues/ Special Case Themes in the ARB, 2005-2006

Priority Issue/ Concern Major Defining Problems

Priority Basin Issues

Declining Water Quality

Poor waste management

Water pollution

Dwindling fishery stocks

Rising incidence of public health concerns related to water

Flooding and Water-Related Risks

Flooding as risk to life, livelihood and property in upstream and downstream areas

Flooding essential to the life-ways in the midstream

Drought risk from El Niño

Water Resources

Quality (i.e., lack of potable water)

Lack of access to water sources

Need for improved regulation of water uses

Need for water resource planning

Forest and Land Degradation

Loss (biodiversity)

Illegal extraction (forest and land resources)

Destruction/ degradation (upland, forests, riverbanks)

Insecurity (tenure)

Absence of Basin-Wide Management

Poor planning and management at the LGU and institutional level

Weak policy-making

Institutional fragmentation

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Priority Issue/ Concern Major Defining Problems

Weak enforcement

Poor knowledge base

Under-utilization of the Agusan River Basin

Special Case Themes

IP Groups Vulnerability and poverty brought about by tenure (ancestral domain), knowledge-identity, economic and institutional weaknesses

Wetlands (Agusan Marsh)

Loss and vulnerability (biodiversity)

Encroachment

Marginalization of IP communities

Pollution issues

This initial integration according to priority key themes paved for further fine-tuning and resulted into their more formal ordering into the three (3) core initiatives of:

�� Governance, for River Basin Management

�� Key WRM Themes, for Water Quality, Flooding and Water-Related Risks, Water Resources Development, Watershed Management (Forest and Land Management), IP Development, and Agusan Marsh and Wildlife Sanctuary (AMWS) Management

�� Knowledge Development, for Data Banking and GIS Development

Knowledge Development (Data Banking and GIS Development) was taken out of the Basin-Wide Management category (above table), to be an initiative that should be started in parallel with RBO development. Knowledge build-up and its development as a vital input to decision-making tend to be stand-alone in the early stages of existing RBOs in the reigon, as demonstrated by the experience of PCEEM-Davao. For the Agusan RBO, the function of Knowledge Development would be integrated in later stages when it has ‘taken-off’ or fully becomes operational.

ii) Technical Working Groups: Cross-Sector Alternative to Planning and Implementation

On the aspect of implementation, the integration strategy is to initially establish a Technical Working Group (Thematic Group) dedicated to each of the Core Initiative/Key Theme. These TWGs/TGs are to be ideally represented by agencies with crosscutting concerns on the relevant priority issue/ concern being addressed.

The rationale for forming TWGs/TGs is to:

�� Involve stakeholders at all levels into the planning and implementation process at an earlier stage than would otherwise have occurred

�� Engage sector representatives in studying the major issues raised for each Core Initiative/Key Theme identified in the Master Plan, and develop their corresponding work program for implementing recommended projects/programs

�� Test the concept of Working Groups and refine working methods along the way. In the process, ARB Working Groups, when eventually constituted under RBO Formation and Development would be more effective

�� Build on Working Groups as an existing organizational initiative adopted by different government agencies in the ARB

In this Master Plan, the TWG/TG concept is aptly demonstrated under RBO Formation and Development and IP Development.

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For the other Core Initiatives/ Key Themes, existing institutional frameworks have been studied. This is in preparation to TWG/TG formation during the transition period towards implementing the Master Plan.

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6.3 ARBMP DEVELOPMENT VISION, GOALS, AND OBJECTIVES

6.3.1 Development Vision

The Agusan River Basin is envisioned as an edifice of a peaceful, prosperous and

empowered citizenry with equitable wealth seated on a well-managed and balanced

ecology for sustainable agro-industrial and eco-tourism development.

The Development Vision for the ARB is a synthesis of vision statements formulated by participants in a Stakeholders’ Workshop held in Butuan City in December 2005. Participants were organized into nine (9) groups, of which four (4) groups submitted their vision statements structured as follows:

Table 6-4 Vision Statements from Stakeholder Groups December 2005 Workshop,

Butuan City

Group Vision Statement

Group II

The Agusan River Basin is envisioned as a pillar of peace-loving, prosperous and empowered citizenry with equitable wealth anchored on a well-managed and balanced ecosystem for a sustainable agri-industrial development and eco-tourism destination.

Group III

The Agusan River Basin is envisioned as an edifice of peaceful, prosperous and empowered citizenry with equitable wealth seated on a well-managed and balanced ecology and preserving the culture of the people for a sustainable agri-industrial development and eco-tourism destination.

Group V

The Agusan River Basin is an area of peaceful, prosperous and empowered citizenry, organized into strong, coordinated institutional stakeholders, with wealth equitably shared on a well managed environment for a balanced development and protection

Group VIII

We envision a harmonious and peaceful interaction of an empowered citizenry with equitable wealth seated in the Agusan River Basin with a well-managed and balanced ecology for a sustainable development

The Development Vision for the ARB is consistent with the vision statements of municipalities and regional offices representing the planning area; namely, the Provinces of Agusan del Norte, Agusan del Sur and Compostela Valley; and the Regional Development Councils of CARAGA Region (Region XIII) and Davao Region (Region XI).

The Vision furthermore runs in parallel with the water policy on integrated and cross-sector water resources management and sustainable development advocated by the ADB and by the GOP under Philippine Agenda 21.

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6.3.2 Development Goal

Poverty reduction and enhanced livability in the Basin by the year 2020 through the

optimal development and sustainable use of Agusan River Basin resources according to

an Integrated River Basin Management (IRBM) approach founded on unified governance,

demand-based and high-impact interventions, and effective knowledge database

development.

The Development Vision for the ARB is further translated into a Development Goal where to be achieved the higher-end purposes of poverty reduction and enhanced livability in the Basin. In its entirety, the ARB Master Plan does not serve any political institution or industry but rather exists for the good of all peoples in the Basin.

As such, its higher-end purposes have a human and ecosystem dimension in poverty reduction and enhanced livability, respectively. Both pursue respect and renewal of social and environmental carrying capacities and impose an ethic of restraint and conservatism on future water investments and other activities harnessing land and forest resources in the Basin.

Poverty reduction is paramount, with optimal Basin development aimed towards improving living standards, enabling local peoples, particularly vulnerable groups such as IPs, to sufficiently meet their essential needs, have their rights formally recognized, and gain access to basic services.

Enhanced livability, on the other hand, is indispensable, with Basin development aimed towards the recovery of declining environmental values through rehabilitation, protection, and improved productivity of its natural physical environment, its watersheds and wetlands in particular. Optimality is emphasized in renewing the integrity of water, land and forest resources, these being the foundation on which utility and value of the Basin are realized. Effecting a balance between optimality and sustainability lives out the IRBM ethic where decision-making is diffused and actively participated in stakeholders with due regard to their improved governance, continuous strengthening and capability building.

6.3.3 Development Objectives

To achieve the Development Goal in measurable standards and targets by the year 2020, the Development Objectives to be pursued by the ARB Master Plan are as follows:

(1) Establishment and operationalization of an ARB RBO that shall assume governance and corporate functions in harmonizing and realizing IRBM initiatives, supported by the development of enabling legislation and corresponding institutional, organizational and operational frameworks;

(2) Institutionalization of collaborative and integrative working arrangements among primary and secondary stakeholders in the course of planning, prioritizing, and implementing resource development and management interventions with significant contributions to poverty reduction and livelihood development;

(3) Strengthening of community participation and local capabilities in addressing key resource development and management issues through communication, education and public awareness (CEPA) programs, knowledge transfer, and promotion of effective indigenous and culturally-appropriate resource management practices;

(4) Enhancement of the planning and implementation of GAD programs in the Basin with the end in view of improving women’s awareness, representation and meaningful participation in ARB development;

(5) Enhancement in the wellbeing and self-determination of IP groups through legal recognition of their ancestral domain, traditional rights, and socio-legal institutions, and reinforced by institutional strengthening and capacity building of IP groups and support agencies;

(6) Improvement of water quality and related management practices with policy and strategic interventions in data collection and management, agricultural and industrial pollution

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control, upland catchment management, erosion control and urban environmental management;

(7) Strengthening of the adaptability and preparedness of Basin people to flooding and water-related risks through improved water management founded on improved institutional management as well as structural and non-structural solutions;

(8) Improvement in water resources management (i.e., domestic water supply, sanitation, irrigation) through better demand management, equitable resource allocation, resolution of water conflicts and the reconciling of institutional and environmental management frameworks for planning, decision-making and implementation;

(9) Formulation of an appropriate water price structure, water being a social and economic commodity, envisioning more prudent use and conservation, and equitable allocation to various uses;

(10) Sustainable management of Basin watersheds with a focus on their protection and restoration/rehabilitation including policy reforms, strengthening of management practices through capability building, IEC, and improved management information systems as well as support programs for research and development, and monitoring and evaluation;

(11) Sustainable management of the Agusan Marsh through policy and management interventions in accordance with Ramsar Guidelines and integration initiatives under an IRBM approach, including data management and monitoring, institutional capacity building, CEPA, and zone reclassification; and

(12) Enhancement of priority-based, multi-purpose, and high-impact Basin resources development based on comprehensive and dynamic knowledge database development and management

6.3.4 VGO And the ARB Water Policy

The VGO for the Agusan are reconciled with its Water Policy, particularly as to the direct impact generated by each policy area on realizing the grand outcomes by which the Agusan Master Plan is being founded.

All policy areas, in one way or another, would contribute to meeting the VGOs in its entirety. Here stressed is the likelihood of direct impact that could be brought about by the policy (Table 6-5).

Table 6-5 ARB VGO and Water Policy, 2005

Vison, Goals, and

Objectives

(VGO)

Local Gov &

Empowerment

Demand

Mgt

Supply

Mgt

SW &

GW

Mgt

Mgt of

Special

Basin

Resources

Organization

& Mgt of

Basin

Information

DEVELOPMENT VISION

Peaceful, prosperous and empowered citizenry � �

Well-managed and balanced ecology � � � � � �

DEVELOPMENT GOALS

Poverty reduction � � � � �

Enhanced livability � � � � �

DEVELOPMENT OBJECTIVES

1. Establishment and operation of Agusan RBO � �

2. Collaborative integrative arrangements with � �

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Vison, Goals, and

Objectives

(VGO)

Local Gov &

Empowerment

Demand

Mgt

Supply

Mgt

SW &

GW

Mgt

Mgt of

Special

Basin

Resources

Organization

& Mgt of

Basin

Information

stakeholders

3. Strengthening community participation and local capabilities

� �

4. Planning and implementation of GAD programs

� �

5. Well-being and self-determination of IP groups

� � �

6. Improvement of water quality and management practices

� � � � � �

7. Strengthening adapt-ability to flooding and water-related risks

� � �

8. Improvement in water resources management � � � � � �

9. Formulation of appropriate water price structure

� �

10.Sustainable management of Basin watersheds

� �

11.Sustainable management of Agusan Marsh

� �

12.Comprehensive and dynamic knowledge development and management

� �

All six (6) policy areas contribute to the realization of the Development Vision and corresponding goals on poverty reduction and enhanced livability. As such, the policies are very much oriented to the development purposes of the Master Plan, in combination or as a stand-alone policy.

On the one hand, the policy on local governance and empowerment, for instance, specifically address objectives on institutional formation and capability building --- horizontally, among stakeholders with similar complementary functions (e.g., LGUs), and vertically, across different stakeholder groups that need to be unified in strategy and action (e.g., community-LGU-government agency).

To sum up, the nature of development objectives addressed by each of the six (6) policy areas are shown in Table 6-6.

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Table 6-6 ARB Policy Areas and Development Objectives, 2005

No. ARB Policy Area Development Objectives Addressed

1 Local Governance & Empowerment

Institutional formation Stakeholder participation IP and gender development Water quality management Water resources management Management of flooding and water-related risks Knowledge development

2 Demand Management Water quality management Water resources management Water pricing

3 Supply Management Water quality management Management of flooding and water-related risks Water resources management

4 Surface Water & Groundwater Management

Water quality management Water resources management

5 Management of Special Basin Resources

Institutional formation Stakeholder participation IP and gender development Water quality management Water resources management Watershed management Marsh management

6 Organization & Management of Basin Information

Institutional formation Stakeholder participation IP and gender development Water quality management Water resources management Watershed management Marsh management Knowledge development

6.4 ARB DEVELOPMENT STRATEGY

6.4.1 General

There are three (3) Core Initiatives defining the Development Strategy for the ARB. These are:

�� Governance, that deals with RBO Formation and Development�� Intervention, specifically on the six (6) thematic areas of Water Quality Management, Water

Resources Development, Watershed Management, IP Development, Flooding and Water-Related Risks Management, and AMWS Management

�� Knowledge Development, founded on GIS Development and Data Banking

This chapter thoroughly explains the basis for the Development Strategy, including its embodiment of the ARB Water Policy and ARB Development Vision, Goals and Objectives.

6.4.2 Why a Governance Initiative and RBO Formation Strategy

A fundamental element in River Basin Governance is the creation of an RBO crucial to the goals of visioning, policy integration, institutionalized decision-making, investment programming, and administration.

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This is necessary because integrated management in the ARB calls for a governing structure and authority from where all policy-making, decision-making and resulting action agenda shall be ordered, streamlined, and reconciled.

The Agusan RBO is designed to wield institutional leadership. Its governing function is deepened by multi-stakeholder representation and participation in policy and program-setting and actual Basin administration.

In this manner, institutional leadership responds not only to the strong clamor for a responsible ‘Authority’ over the Basin but also eventually becomes the necessary machinery that would effect one-ness over its peoples and institutions. This institutional leadership is crucial in promoting the very structure and process of integration.

6.4.3 Why an Intervention Initiative and WRM Intervention Strategy

The Intervention Initiative works hand in hand with the Governance Initiative. An effective institutional leadership in the Basin should be made to function with a mandate of translating into clear and demand-based interventions.

A. The Concept of Key Themes

Under this Intervention Initiative, the strategy calls for WRM interventions called Key Themes.

The ‘Key Theme’ approach is an ‘issue-based’ approach in defining strategic development interventions that embody stakeholder needs and priorities, and bearing significant contributions to poverty reduction and livelihood development.

In their entirety, Key Themes are strategic response and action to critical, recurring, and overwhelming development problems in the Basin. These Key Themes, earlier introduced in this Master Plan, are reiterated in Table 6-7.

Table 6-7 Key Themes, Intervention Initiative, ARB Master Plan, 2005-2006

No. Key Theme Purpose

1 Water Quality Management

To initiate the process of environmental remediation for Basin waters to support human health, ecosystems, and livelihoods, and contribute to overall livability

2Flooding and Water-Related Risks Management

To reduce vulnerability to flooding and drought as a water-related risk using structural and non-structural solutions

3 Water Resource Development

For water use regulation and water resources planning vis-à-vis the demand for domestic water supply, sanitation, and irrigation

4 Watershed Management To arrest degradation of watersheds whose conditions are intimately linked to the state of forest and land resources

5 Indigenous Peoples Development

Constitutes a specialized concern in respect of their traditional rights over Basin land and resources, their long-standing institutions, and their capacity for self-determination

6Agusan Marsh and Wildlife Sanctuary (AMWS) Management

Recognizing the unique stature of the Agusan Marsh, whose longevity and pristine quality requires distinct management strategies and interventions closely linked to the above Key Themes

Note that eco-tourism development is not a key theme despite being part of the ARB Development Vision. The combined effects of these Key Themes, nevertheless, contribute towards the improvement of resource management practices. This improvement, on the overall

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and in the long-term, is meant to correct current environmental problems that hamper the marketing of the Agusan for eco-tourism (e.g., pollution in Butuan Bay). Eventually, these interventions would prepare the Basin environment for sustainable eco-tourism development in the future.

B. The Concept of Key Theme Groups/ Key Technical Working Groups (TG/TWG)

An institutional aspect to these Key Themes is the organizing of stakeholders into Theme Groups/Technical Working Groups (TG/TWG). This is closely aligned to the formation and operation of the Agusan RBO.

The TG/TWG is intended to be multi-sector and functioning through cross-sector coordination. Each Key Theme is to be worked on by a TG/TWG that will further refine and translate into concrete action plans the development projects and plans contained in this Master Plan.

6.4.4 Why a Knowledge Development Initiative and GIS Development/ Data Banking

Strategy

The Basin could not be the practical unit for planning and decision-making unless a knowledge database is developed to capture and organize the reality of conditions in it.

The Basin is a thriving and dynamic entity made up of ecosystems, peoples, and institutions. It would be limiting to concentrate on physical Basin data over the long term; but in the immediate future, it is a good start. As such, the GIS database would be designed in a manner that would allow systematic build-up and integration of all other types of data. In the future, a comprehensive knowledge database of the Basin could be developed.

This Knowledge Development Initiative has an enabling role in relation to governance and future interventions. Good database development has vital implications on effective leadership and management that are essential to maintaining commitment to the ARB Development Vision.

In the long term, database development and management shall enable the capacities of stakeholders to be strengthened in the areas of policy making, strategic planning, program design and development, and impact evaluation. Effective execution of these functions tends to be highly dependent on the quality and reliability of information generated from which informed understanding and sound judgment on resource management issues can be made.

This enabling implication on governance explains why in the setting out of development programs, those under GIS Development and Data Banking are grouped under RBO Formation and Development.

6.5 UNITY OF THE DEVELOPMENT STRATEGY

Figure 6-3 illustrates how the three (3) Core Initiatives form a unity and become a one IRBM Development Strategy for the Agusan. These Core Initiatives correspond with the development alliance of Environment-Institutions-Stakeholders.

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Figure 6-3 IRBM Strategy for the Agusan River Basin

Each Core Initiative is deemed to be self-sustaining and implemented in parallel. It is impossible, however, to realize IRBM by only one initiative or two. All three (3) initiatives have to be moving and well-coordinated in purpose and function.

River Basin Governance would be hollow unless it is moved to action with strategic interventions to resolve critical Basin problems and steer the ARB towards development participated in by stakeholders and realizable within its development context and limitations. The Key Themes meanwhile runs the risk of being disorganized and losing its spirit without the unifying direction and focus inspired by an RBO. Knowledge Development, meanwhile, would become a wasted investment unless it becomes a tool to make the right decisions for Basin development by a governing RBO.

The Development Strategy is original to the Basin, is organic to it, all and of its own, thus exhibiting the strong potential for ownership and proactive involvement of stakeholders to the process it engenders.

The Development Strategy especially holds within their internal dynamic strategic horizontal and vertical integration that helps in actualizing the very process of ‘integration’ essential to IRBM (Table 6-8).

Table 6-8 Vertical and Horizontal Integration, ARB Development Strategy 2005-2006

Development Strategy Vertical Integration Horizontal Integration

RBO Formation and Development

Stakeholders organized under a centralizing authority

Stakeholders bound and held responsible within an organizational structure that sets out their diverse development roles (e.g., advisory, administration, program development)

Stakeholders are enjoined to resolve key development issues in the Basin by working together into issue-based collaborations under the TG/TWG concept

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Development Strategy Vertical Integration Horizontal Integration

Key WRM Thematic Interventions

TG/TWG work under the leadership of the RBO, participated in by stakeholders at a level and purpose appropriate to the type of projects undertaken

Structure involves a 2-way dynamism from top-bottom and vice versa. Participation of stakeholders defined until such a time that purposes are served and target outcomes realized

From Key Themes, strategic interventions systematically identified. Process flows from strategy to intervention possibilities to impact assessment and final strategy recommendations

Strategic interventions designed to generate the most meaningful positive impacts, and consisting of institutional frameworks for implementation, responsibilities, budgets, and support assistance

Data Banking and GIS Development

Management arrangements, including data sharing and feedback mechanisms able to link stakeholders from barangay to the highest political level

The exercise in itself of reconciling, organizing and disseminating data facilitates the Strategy Formulation Process discussed above

6.6 FROM POLICY TO STRATEGY TO PRINCIPLES

This ARB Development Strategy informs on the Development Principles adopted by the Master Plan.

i. The Principle of Remediation and Balance

The Master Plan embodies remediation being the most effective way of arresting the downward trend towards ecologically unsustainable development, which compromises all others --- social, institutional, and productive capacities.

In this manner, all development interventions in the ARB would have to strike a balance between protecting the environment and promoting economic activities. Strategic assessment of impacts at a general and cumulative scale therefore is a necessary element in the finalization of intervention strategies.

Accordingly, the sub-basin and its integrity shall serve as the basic practical unit in planning and decision-making over Basin resources; rather than ‘downstream’, ‘midstream’, and ‘upstream’ orientations.

ii. The Principle of Unified Environmental Governance

Given that the ARB is one homogenous water-based natural resource community, it follows that it should be under unified and homogenous environmental governance as well.

The three ( 3) provinces of Compostela Valley, Agusan del Sur and Agusan del Norte and Butuan City inevitably have to band together to achieve unity. This unity is vital to stopping the tendency towards piecemeal development interventions of the National Government and the private business sector.

iii. The Principle of Stakeholder Organization

The poor, the women, the youth, the IPs and other politically weak groups in the ARB do not stand a chance of participation in decision making if not organized into viable institutions that they themselves will create and support, financially. It is only after financial viability, coming from basic

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community support of these grassroots institutions, that national and international support will be attracted – not before. Thus, a primary task under the IRBM Development Strategy is to devise a framework for institutionalizing stakeholder groups, as would be done under RBO Formation and Development.

iv. The Principle of Corporate Capability

To avoid the same fate befalling defunct river basin bodies in the Philippines, the proposed RBO would have to assume a corporate character by which it could imbue among its stakeholder groups professionalism and accountability in enforcing its economic development goals. The RBO, while essentially exercising institutional leadership in the Basin, would also have to exert authority in the direction and concentration of investments for water resources development and management, to be done always in partnership and cooperation with LGUs.

v. The Principle of Enabling Elements

The ARB possesses a dynamism that could be trained to the right path of sustainable and integrated development through enabling instruments that are, first, built on the formation and/or strengthening of institutions that shall actualize the process; and, second, founded on policy and legal instruments that shall vest it with authority and political legitimacy. It is in line with this principle that RBO formation shall be facilitated by support policies and legislation that as much as possible would be developed out of extensive stakeholder consultations and be living testaments of stakeholder goals and visions for the ARB.

vi. The Principle of Optimization

The initiative of formulating intervention strategies through Key Themes and the subsequent formation of TG/TWGs recognizes the long and arduous process by which negotiated decisions and consensus on key development issues are arrived at. This time element, notwithstanding the amount of debate and negotiations among diverse resource users and managers, is considered essential to integration. This is in order for stakeholders to experience the very process of unraveling complexities and from this experience, gain a certain level of maturity and understanding of the importance of collaboration and compromise in the resolution of critical resource development issues. In this exercise, the guiding principle is optimality where decision-making is negotiated and courses of action settled under compromise and a consensus.

vii. The Principle of Carrying Capacity

Plans, programs and projects that will be implemented in the ARB should meet the test of “carrying capacity” which, itself, has two (2) dimensions: (i) environmental, which is the carrying capacity of its watersheds and wetlands; and, (ii) social, which is the carrying capacity of the people and their institutions to support the long-term implementation of these undertakings. As such, it would be a continuing exercise under the optimization process to assess the absorptive capacity of vulnerable social groups to development interventions being planned and/or implemented in the Basin.

6.7 FROM POLICY TO STRATEGY TO PROJECTS

Other than integration that works vertically within an authority and organizational structure and horizontally, across stakeholder levels and the spectrum of related functions, the ARB Development Strategy arises systematically from the ARB Water Policy and the VGOs set forth in preceding chapters. This section shows this consistency and the eventual mix of programs and projects reflective of the policy and exhibiting the realization of IRBM for the Agusan (Table 6-9).

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Table 6-9 Policy Initiatives to Development Programs/ Projects ARB Master Plan, 2006

ARB WATER

POLICYARB VGOs

ARB

DEVELOPMENT

STRATEGY

DEVELOPMENT

PROGRAMS AND

PROJECTS

Governance andEmpowerment Demand ManagementSupplyManagement

DEVELOPMENTVISIONPeaceful, prosperous and empowered citizenry Well-managed and balanced ecology

RBO Formation

and Development

1. Organization of Working Secretariat

2. Institutional Stakeholders’ Congress

3. Organization & Operation of Interim Board of Trustees, RBO Staff and Sub-Basin Management Units

4. Implementation of Public Awareness and Gender Plans

5. FS of Agro-Industrial Eco Zones

6. Establishment of Data-Banking and GIS-Based Decision Support System

DEVELOPMENT

GOALS

Poverty reduction

Enhanced livability

Key Thematic WRM Interventions

Surface Water & Groundwater ManagementManagement ofSpecial Basin Resources OrganizationandManagement of BasinInformation

DEVELOPMENT

OBJECTIVES

1. Establishment and operation of Agusan RBO

2. Collaborative integrativearrangements with stakeholders

1. Water Quality Management

a. Institutional Strengthening for Basin-Wide Water Quality Data Collection & Management

b. Organic Fertilizer and Biogas Production Project

3. Strengthening community participation and local capabilities

4. Planning and implementation of GAD programs

5. Well-being and self-determination of IP groups

6. Improvement of water quality and managementpractices

2. Flooding and Water-Related Risks Management

a. Implementation of Butuan City Drainage System Master Plan

b. Preparation of Drainage System Plans for Magallanes, Esperanza, Bayugan, Monkayo, Las Nieves, Montevista, Nabunturan, & Cabadbaran

c. FS of Multi-Purpose Project at Agusan Marsh Outlet

d. Update and Implementation of Upper Agusan Flood Control and Drainage System Project

e. Establishment of Flood Warning & Flood

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ARB WATER

POLICYARB VGOs

ARB

DEVELOPMENT

STRATEGY

DEVELOPMENT

PROGRAMS AND

PROJECTS

Forecasting System in Butuan City and Flood-Prone Municipalities to Agusan River

3. Water Resources Development

a. Five (5) Water Supply Projects: Monkayo, Compostela, Bayugan, Trento, Patin-Ay

b. FS/ Master Plan for Two (2) Sewerage Projects: Butuan City & Agusan Marsh

c. Water Supply Management Project in Taguibo River

d. FS for One (1) Multi-Purpose and Four (4) Pump Irrigation Projects: Ojot, Sta. Josefa, Guadalupe, Las Nieves, Nueva Era

e. FS for Butuan City Inland Port & Agusan River Transport System

7. Strengthening adaptability to flooding

8. Improvement in water resources management

9. Formulation of appropriate water price structure

10. Sustainable management of Basin watersheds

11. Sustainable management of Agusan Marsh

12. Comprehensive and dynamic knowledge development and management

4. Watershed Management

a. Policy and Institutional Reforms

b. Watershed Characterization and Management Planning Project

c. Watershed Restoration and Rehabilitation Project

d. Watershed Protection Project

e. Harmonization of Tenurial Instruments and Boundary Conflict Resolution

f. Capability Building/ Community Organizing/ Stakeholder Development Projects

5. IP Development

a. CADT Processing Project (10 sites in 6 sub-basins)

b. Preparation of ADSDPP (14 sites in 8 sub-basins)

c. IKSP Research Project (14 sites in 8 sub-basins)

d. Pilot Codification of Customary Laws (7 sites in 4 sub-basins)

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ARB WATER

POLICYARB VGOs

ARB

DEVELOPMENT

STRATEGY

DEVELOPMENT

PROGRAMS AND

PROJECTS

e. Capability Building for IPs (1 city & 3 provinces)

f. Capability Building for NCIP & LGUs (Basin-wide)

g. Locally-Managed Enforcement System (13 sites in 8 sub-basins)

h. Improvement of IP Agro-Fishery Production Systems (11 sites in 6 sub-basins)

6. AMWS ManagementProgram

a. AMWS Management Plan Formulation & Implementation Project

b. Projects Linked to Basin-Wide Programs

c. Regulated Public-Access Project

Data Banking and GIS Development (Establishment of Data Banking and GIS-Based Decision Support System)

1. Procurement of Equipment, GIS Software & Establishment of Web-Enabled Database

2. Basic & Advanced GIS Training

3. Data Summit 4. Continuing Education 5. Update of Maps &

Database 6. Data Sharing & Web

Management 7. Monitoring & Database

Build-Up8. GIS-based Modeling &

Data Analysis

The succeeding chapter elaborates on these Development Programs and Projects that translate into relevant courses of action the ARB Development Strategy.

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6.8 CONCLUSION AND RECOMMENDATION

The general recommendation is the conduct of information, education and communication (IEC) campaign to be able to disseminate information on environmental laws, cause and effects of destructive environmental activities, and the long-term benefits of communities if the natural resources are not destroyed. The IEC campaigns can also encourage volunteerism to monitor illegal environmental activities rampant in concerned localities. Together with the IEC, community organizing is also a vital activity for a more sustainable implementation of any activity. It is also a strategy that can be used to educate people and increase community awareness. There is a need to unify government officials and communities in the management of natural resources for cooperation among stakeholders on any development activity.

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INTER-RELATED CONCERNS

BASIN PROGRAMS AND PROJECTS


7.0 BASIN PROGRAMS AND PROJECTS

This Chapter presents the assessment of basin water control structures, an overview of identified projects for the ARB by means of a general summary, by key theme and by sub-basin. It is necessary to reiterate the 17 sub-basins for the Agusan River Basin as reflected in Table 7-1

which was subdivided to facilitate the planning process.

Table 7-1 The 17 Sub-River Basins of the ARB, 2005-2006

Sub-BasinNo.

NWRB Name Local Name

Area

(Sq. Km)

1 Adgaon RB Adgaoan 980.892 Agusan Marsh Agusan Marsh 193.303 Bugabos RB Bugabos 170.554 Gibong RB Gibong 926.385 Haoan RB Ihaoan 746.356 Kasilan RB Kasilayan 376.897 Kayonan RB Umayam 725.978 Libang RB Libang 246.569 Logom-Baobo RB Logom-Baobo 291.2010 Maasam RB Maasam 418.2011 Manat or Upper Agusan RB Manat/Upper Agusan 1,758.2212 Minor RB Lam-awan 2,199.8713 Ojot RB Ojot 924.1914 Simulao RB Simulao 978.3815 Sulibao RB Sulibao 159.7516 Taguibo RB Taguibo 75.7217 Wawa-Andanon RB Wawa-Andanan 764.14Agusan River Basin 11,936.55

Various methodologies used in prioritizing projects are explained as well as the major considerations in project selection. The programs and projects defining the ARB Master Plan are a combination of:

�� New initiatives that take guidance from stakeholder consultations and come from expert analysis of critical needs and local conditions;

�� Existing initiatives that are in the pipeline of the LGUs concerned and found in local development plans or already supported with their own feasibility or pre-investment studies

These development programs and projects abide by the ARB Water Policy, are within the spirit of its development Vision/ Goals/ Objectives and most importantly, embody the ARB development strategy.

These development programs and projects mutually support each other; and in some cases directly linked. For instance, thematic interventions for the Agusan Marsh are significantly interlinked with those under water resources development, flood management, and IP development.

The projects identified are also in no way exhaustive or complete. This is an initial identification, with a view on an established RBO to build up on this initial portfolio of projects.

It should also be reiterated that while a distinct initiative, the program for Data Banking and GIS Development is subsumed under RBO Formation and Development. The Knowledge Development Initiative while a parallel effort to the creation of the Agusan RBO would be

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eventually integrated within the functions of the latter and so is presented as among its principal program/project initiatives.

This Chapter highlights the host of program/project interventions for each thematic area. To understand the nature of programs/projects proposed, particularly in relation to existing and on-going initiatives in the Agusan, it would be necessary to consult with the Thematic Reports prepared for the Core Initiative/Key Theme.

7.1 ASSESSMENT OF BASIN WATER CONTROL STRUCTURE

Based on the latest available data, the NWRB has approved 299 water permits for various water uses in the ARB, of which 184 permits have complete information for inputting into GIS format. The number of permits per intended use is summarized in Table 7-2.

Table 7-2 NWRB Water Permits, Selected Uses, ARB, 2005

Purpose Number Q (lps)*

Irrigation 120 55586.00 Domestic 42 624.00Industrial 13 2289.00 Power 5 34515.00 Recreation 2 15.40Fisheries 2 21.00

Total 184 93051.40

* lps = liters per second

Its could be established at this stage that irrigation and domestic water supply are the two (2) major uses of water in the ARB. The assessment in this section therefore focuses on these two primary uses.

7.1.1 Irrigation Development

(a) General Status

Based on the 2004 Status of Irrigation Development Report obtained from the Provincial Irrigation Offices of Agusan del Norte, Agusan del Sur and Compostela Valley, irrigable areas in the Basin are about 207,000ha. Of these, only 56,000ha are under irrigation or that only 27% of potential area is being utilized. NIA records further show that irrigation efficiency in existing systems is quite low at 50.66%. Therefore, opportunities exist for improving irrigation efficiency, which includes diversifying into non-rice crops requiring less irrigation water.

The remaining area of 151,000ha shall be subject to study in relation to the availability of water supply, and in close coordination with various stakeholders. This includes sensitivity analysis of the present supply and utilization of water resources for domestic, industrial and irrigation purposes for future planning.

(b) Communal Irrigation Systems (CIS)

The same 2004 Status of Irrigation Development Report indicates that the ARB is being operated by at least 40 communal irrigation systems (CIS) Table 7-3.

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Table 7-3 Communal Irrigation Systems, ARB, 2004

Name Municipality HaCavans

Per Ha

Cost

Mil

PhP

X-Coord Y-Coord

Bonbon CIS Butuan City 50 85 0 125.531 8.88204 Bancasi CIS Butuan City 100 85 0 125.5355 8.94508 Talo-Ao CIS Butuan City 157 80 0 125.5192 8.94047 Aupugan CIS Butuan City 232 75 0 125.5469 8.88206 Basag CIS Butuan City 38 80 0 125.5928 8.90254 Lingayao CIS Las Nieves 200 80 0 125.5812 8.72489 Maga-Florida CIS Las Nieves 76 80 0 125.6103 8.73073 Charito CIS Bayugan 200 80 30 125.7604 8.67011 Marcelina CIS Bayugan 200 80 30 125.7642 8.64862 Bayugan I Bayugan 200 95 30 125.7768 8.68655 Mambutay CIS Bayugan 75 80 11.25 125.7372 8.72743 San Vicente CIS Prosperidad 150 85 22.5 125.9132 8.55006 Baon CIS Rosario 100 80 15 126 8.30512 Upper Padigusan Rosario 60 80 12 126.0046 8.3177Wasian CIS Rosario 100 80 15 126.0076 8.30805

Maslog CIS SanFrancisco 60 75 7.5 125.9979 8.44982

Bayugan II CIS SanFrancisco 60 75 7.5 125.9635 8.45443

Adlayan Hubang SanFrancisco 200 85 30 125.9812 8.50309

Upper Hubang CIS SanFrancisco 200 85 30 125.9744 8.51399

Sayon CIS Sta Josefa 160 80 19.5 125.9942 7.93897 Angas CIS Sta Josefa 100 80 15 126.004 7.93762 Banayan CIS Trento 100 0 15 126.0654 8.01953 Lower Awao/Sayon Sta Josefa 30 80 7.5 125.9898 7.93948 Upper Awao Sta Josefa 300 80 45 125.9983 7.9383Linoan CIS Montevista 37 80 0 125.9976 7.6874Simsiman CIS New Bataan 50 60 0 126.151 7.57167 Batinao CIS New Bataan 155 90 0 126.1094 7.55764 Lower Sao-Sao CIS Mawab 72 64 0 125.9726 7.61639 Upper Sao-Sao CIS Mawab 42 80 0 125.9857 7.6177Mawab CIS Nabunturan 168 80 0 125.98 7.62866 Cabidianan CIS Nabunturan 100 75 0 126.0072 7.67776 Dauman CIS Montevista 87 75 0 125.9958 7.72379 Monkayo CIS Monkayo 60 80 0 126.1151 7.73913 Upper Naboc CIS Monkayo 188 75 0 126.1076 7.72335 Lower Naboc CIS Monkayo 292 75 0 126.1032 7.69661 Ngan CIS Compostela 250 75 0 126.0962 7.69179 San Miguel CIS Compostela 250 85 0 126.101 7.6611New Albay CIS Maragusan 150 65 0 126.1476 7.34489 Tigbao CIS Maragusan 241 60 0 126.1468 7.32862 Haguimitan CIS Monkayo 14 41 0 126.0611 7.86363

Field interviews reveal that many CISs have been upgraded with assistance from line agencies, although a significant number are still awaiting technical and financial assistance. The traditional system that usually diverts water from a river or stream by a temporary gravel/stone or stake weir is prone to destruction by high river flows during the rainy season other than displaying inefficiencies in conveyance (canal seepage) and water distribution.

Assistance from line agencies to technically upgrade a CIS requires a minimum equity of 10% (higher equity is more preferred) of the total project cost in the form of cash, labor or material. The

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remainder is then amortized by farmer-beneficiaries or farmers’ associations usually for a period of 50 years without interest. Payment often comes in the form of irrigation service fees payable every harvest season. In practice, however, the typical annual irrigation service fee is at a low value of P2500.00 per ha. Such fees are only enough to cover operation and maintenance expenses and does not include cost recovery of projects undertaken.

In other schemes, the farmers’ association may pay equity of 20% of the total project cost, with an LGU counterpart of 10%. The farmers’ association is no longer required to pay the remaining balance of 70% because of their eventual ownership of the facilities. Beneficiaries of such schemes are required to be registered associations and to secure a water permit from the NWRB.

(c) National Irrigation Systems (NIS)

About eight (8) NISs are in the ARB, the features of which are in Table 7-4.

Table 7-4 National Irrigation Systems, ARB, 2004

Name Municipality HaCavans

per Ha

Cost

Mil

PhP

X-

COORD

Y-

COORD

LADP Butuan City 7700 95 0 125.5883 8.94464 Cabadbaran RIS* Cabadbaran 3212 95 0 125.5765 9.0808Cabris/Sanghan Ext Cabadbaran 250 95 0 125.5621 9.09787 Andanan River NIS Bayugan 3000 85 600 125.7313 8.71521 Gibong NIS Prosperidad 2156 90 433.2 125.902 8.5854Sumilao RIS Trento 2975 85 595 126.0419 8.09115 Simulao RIS Extension Trento 900 85 225 126.0343 8.11138 Batutu RIS Compostela 3152 90 0 126.0725 7.67118

* RIS = river irrigation system

National irrigation projects (NIPs) proposed by NIA are usually larger than 1,000 ha, with enough water recoverable from nearby rivers during the dry season to irrigate at least two-thirds of the total planned area. Other than these, access to the proposed project area should have been available, the development cost per hectare within reasonable amount and an EIRR of 18% or higher. Strong political support from the area or the national office is, in most cases, a requisite for eventual implementation of these proposed projects. NIPs that have been pursued by NIA in the ARB but later shelved due to funding and land acquisition problems are the Solibao River Impounding Project (RIP), Adgaoan RIP; Logum RIP and Umasa (Boabo) RIP.

(d) Water Duty

Potential areas for irrigation are pre-determined using a water duty equal to 1.5-2.0 lps/ha as recommended by NIA. The values are based on detailed analysis of parameters involving soil type, crop factor, evaporation, evapo-transpiration, rainfall, seepage, and irrigation efficiency. The lowest river discharge is also a factor to obtain the dependable water supply of concerned rivers or creeks. Nevertheless, such size of water duties in irrigation merit further studies as to the types of crops to produce that would consume less amount of irrigation water.

(e) Projected Water Utilization

Total irrigation water demand in the whole Basin until 2030 is estimated to reach 4,380MCM and 5,840MCM at 1.5 lps/ha and 2.0 lps/ha water duty, respectively. Based on the probability exceedance of 80%, the potential surface water of the Basin for the same period is about 5,278 MCM after deducting municipal and industrial water demand. In the appropriation of water resources, municipal and industrial water demand are given the top priority against the irrigation demand since the provision of potable water in the area is a basic need and one of the priority programs of the GOP.

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Under the water duty of 1.5 lps/ha, the Basin will have excess water of about 898 MCM. However, under a water duty of 2.0 lps/ha, the projected demand would be large and a water deficit would be generated at about 562 MCM. Adgaoan River would exert the largest projected water demand of 1,291 MCM while Umayam River would record the least demand of 68 MCM.

Previous water balance studies conducted in the Basin suggest that surface water shortage would be critical in the future at several sub-basins. This is due primarily to population pressure and the expansion of irrigation projects in respective sub-basins. Under such scenario, eight (8) sub-basins would experience water deficits before the projected year 2030; namely:

1. Gibong River, projected water demand would be larger by about 9.0 MCM than the available water due to the expansion of irrigable area

2. Simulao River, water demand of 635 MCM in the projected year of 2030 will generate a water deficit of about 14 MCM in 2017

3. Upper Agusan River, would encounter a water deficit of about 22 MCM in 2020 under a 2.0lps/ha water duty

4. Manat River, would experience a water deficit of 10.0 MCM in 2018 under a 1.5lps/ha water duty and 4 MCM water deficit in 2012 under 2.0 lps/ha water duty. Applicability of storage reservoir-type scheme considered.

5. Boabo River, water demand would exceed supply in 2015 should irrigation projects be implemented by about 37MCM and 63MCM under 1.5lps/ha and 2.0lps/ha water duty, respectively

6. Lagum River, water demand would exceed supply in 2015 should irrigation projects be implemented by about 28MCM and 54MCM under 1.5lps/ha and 2.0lps/ha water duty, respectively

7. Ihaoan River, would experience a water deficit of 4.7MCM in 2017 under a 1.5lps/ha water duty and 13.0MCM water deficit in 2012 under 2.0 lps/ha water duty

8. Adgaoan River, would generate a water deficit of about 7MCM in 2020 under 2.0lps/ha water duty and 46MCM in 2022 under 1.5lps/ha water duty

For other sub-basins, available water would be more than enough to sustain projected irrigation demand up to 2030, but they should regularly be updated.

Nevertheless, in-depth studies may have to be conducted on surface water development for irrigation needs in affected sub-basins that takes account of such projected shortages. On the other hand, the applicability of run-of-river and storage reservoir-type schemes may be considered but as long as watershed conservation measures are implemented and strengthened to maintain reliable supply of water in the tributaries of sub-basins. In connection with storage reservoir-type schemes, conceivable dam sites, which are subject to strict scrutiny of practicability, have been identified in Table 7-5.

Table 7-5 Proposed Dam Sites, ARB

Dam site Height

(m)

Storage Volume

(MCM)

Power Potentials

(MW)

Wawa 180 6,980 -Andanan 140 620 -Gibong 50 2,540 -Bunawan 100 1,400 -Simulao 120 900 -Upper Agusan 100 1,080 -Ihaoan 40 700 -Umayam* 100 1,250 130Adgaoan* 60 920 65Ojot* 90 2,700 30

* Hydropower is included as one of purposes. MW = megawatt (Source: National Flood Control Plan and River Dredging Program, DPWH, 1982)

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Further, to maximize project efficiency, proper management and other institutional measures would have to be considered in the development of irrigation projects.

The proposed irrigation projects that would abstract water by diversion weir from the Maasam, Libang, Ojot and Busilao rivers would irrigate areas in forestlands comprising of undulating and less populated terrain unlike that of existing irrigation systems around Agusan Marsh. These projects, therefore, receive lower priority than those aiming to serve more populated areas. In the future, however, these irrigation projects may be among development projects pursued to encourage settlement in areas with high farming potential as a way of relieving population pressure from highly populated areas in the municipalities of Veruela, Santa Josefa and San Francisco. In such case, a reclassification of said forestlands into A&D lands may be necessary although an assessment of the trade-offs in land conversion should inform and guide decision-making.

Meanwhile, the proposed overflow weir in the large Adgaoan River originally planned by NIA at Halapitan is to be transferred near the Cayawan River (a tributary to Adgaoan River) and closely upstream of Langasian. The new location will cover a higher lying area of mainly A&D classified land reserving some distance from the NIPAS-protected Agusan Marsh.

In the timeframe until 2030, there are proposals for several NIA projects in the following order:

Year 2006-2010: Ngan and Solibao dams; Ihaoan, Mamunga, Manat and Laminga RIPs; and Simulao RIS extension

Year 2010-2020: Ma-a Dam; Mambalili, Cayawan, Umasa (Baobo), Logum, Ojot and Maasam RIPs

Year 2020-2030: Busilao, Libang and Adgaoan-Umayam RIPs

Until 2010, development of NISs and CISs constitutes relatively small projects that will not likely meet serious technical and social problems. Proposed development projects within the period 2010-2020 are, however, large in scale and so should merit significant study, design and construction planning. The remaining three (3) projects for 2020-2030 are on less populated areas of the Basin covering vast tracts of forestland. With this planned development in forestlands, the identification of suitable lands for agriculture within these areas would have to be studied preferably in line with the existing land use plan. In these projects also, the prospect of multi-purpose undertakings may be considered such as those involving power and water supply.

7.1.2 Water Supply Systems

In the following discussion, the status of several WDs operating Level III systems in the study areas are presented, including present tariff structures established for pricing of water used for residential and commercial/industrial/bulk use.

In subsequent assessments of water consumption in the ARB, the per capita consumption standards established for water service levels in the Philippines shall be applied. The classification of water service into Levels I to III in the Philippines exacts a standard as to the adequate amount of water utilization per capita for each service level.1 For Level I that usually serves around 15 households within a radius of 250m, at least 20 liters per day (lpd) is an adequate per capita consumption. On the other hand, for Level II that serves 4-6 households within 25m, the standard is about 60 lpd/capita while for Level III that targets densely populated settlements, this is about 100 lpd/capita.

2.1 1 Level I service consists of a point source from which users obtain water directly. Level II service is a piped system with community faucets, serving 4-6 households within 25 meters while Level III service is a full waterworks system with individual house connections for those residing in densely populated settlements. Most Level I and II systems are run by LGUs through the Barangay Water System Associations (BWSAs) and the Rural Water System Associations (RWSAs).

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(a) Initial Status of Selected WDs in Study Areas

1. Butuan City

In 2003, 52% of households in Butuan City are already connected to Level III systems while the rest, their source requirements is either from Level II (42%) or Level I (6%) systems. The total service population of these systems consisted of 40,940 households. On the other hand, 5,052 households had no access to water or roughly 12% of the existing served population.

Butuan City WD. The WD acquired its Conditional Certificate of Conformance (CCC) No. 7 in 1974. By October 2005, the WD is already serving 26,364 connections distributed as follows: 24,468 residential (93%), 1,619 commercial (6%), 261 government (1%), and 12 bulk water. Average monthly water consumption of all customers is about 516,160 cu. m. The service area covers 50 of 86 barangays consisting of 27 urban and 23 rural barangays.

Ground and surface water sources are currently being utilized; namely, 10 wells and waters abstracted from the Taguibo River through an infiltration gallery. Only 2 of the 11 sources have water permits while the rest are being processed. The water permits are for the deep wells at Purok I-A and Brgy. Baan, and surface water from Taguibo River.

2. Agusan del Norte

As of 2003, 48,172 households had been served by Level I to Level III water supply facilities in the province. The dominant water supply is Level I (42.19%) followed by Level II (39.65%). Only 8,752 households have direct household connections. The remaining unserved population of 4,607 households relies on dug wells or springs for their drinking water.

Buenavista WD. The Buenavista WD was granted CCC No. 406 in July 1989. As of 2005, the WD has 1,500 connections distributed over 13 of its 25 barangays; namely, Poblacion 1, Poblacion 2, Poblacion 3, Poblacion 4, Poblacion 5, Poblacion 6, Poblacion 7, Poblacion 8, Poblacion 9, Poblacion 10, Malpoc, Sacol and Matabao. Its water sources are from three (3) wells with water permits and discharges as shown in Table 7-6.

Table 7-6 Water Permits and Discharges, Buenavista WD ARB, 2005

Water

SourceLocation

Water

Permit

Date

Granted

Discharge

(lps)Latitude Longitude

Groundwater Malpoc 17831 1950 8.00 8-57-45 N 125-23-56 E Groundwater Malpoc 17793 2000 13.15 8-57-35 N 125-23-55 E Groundwater Malpoc 2003 8-56-48 N 125-23-49 E

3. Agusan del Sur

Majority of municipalities in Agusan del Sur are presently served by Level I and Level II water systems. The total served population by 2002 consisted of 72,067 households relying mainly on Level I systems (53%) followed by Level II (34%) and Level III (13%). Comprising nearly 45 percent of the served population, the remainder of 31,570 households, have no access to potable water supply and instead depend on dug wells, springs, creeks, and rainwater. Note that Level III systems in the province exist only in 3 of its 14 municipalities of Agusan del Sur; namely, Bayugan, Prosperidad, and San Francisco.

Bayugan WD. The WD is operating by virtue of CCC No. 243 granted in April 1983. Its system, consisting of 2300 connections as of October 2005, is servicing 6 of 43 barangays; namely, Sta. Teresita, Fili, Taglatawan, Poblacion, Maygatasan and Noli.

The WD is currently tapping 2 of its 3 spring sources; namely, Spring I and Spring II. These springs are located within the Pinagalaan watershed managed by the municipality and the WD. Still being processed are its water permits as follows (Table 7-7).

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Table 7-7 Water Permits & Discharges, Bayugan WD ARB, 2005

Water Source LocationWater

Permit

Date

Granted

Discharge


Spring I 22254 60.00 8-44-50 N 125-4-42 E Spring II 22255 36.00 8-45-08 N 125-47-44 E Spring III 22256 45.00 8-45-20 N 125-47-50 E

Prosperidad Water District. The WD, which was granted CCC NO. 66 in October 1978, had about 921 connections by October 2005. Its Level III systems are serving 6 of 43 barangays; namely, Poblacion, Bayobo, Mapaga, La Suerte, Las Navas and Lucena. These served areas 8-9are generally urban and built up close to the Poblacion.

Water supply is sourced from two (2) springs at Binaba and Gibong; the management of the watershed being undertaken by the municipal government. Water permits for these sources have the following features (Table 7-8).

Table 7-8 Water Permits & Discharges, Prosperidad WD ARB, 2005


Permit

Date

Granted

Discharge


Binaba Spring 17723 May-97 30.80 8-36-55 N 125-54-58 E Gibong Spring 15452 Oct-96 4.30 8-35-52 N 125-56-02 E

San Francisco WD. Under CCC No. 399 obtained in 1988, the WD is already servicing 3717 connections by October 2005. The served population is distributed in 13 of 27 barangays; namely, Poblacion 1, Poblacion 2, Poblacion 3, Poblacion 4, Poblacion 5, Pisaan, Hubang, Alegria, Lapiningan, Pasta, Buena Suerte, and Osmena.

Present water supply sources consist of 6 springs and 2 mountain streams, of which the primary source is from the watershed of Mt. Magdiwata. The water permits for these sources are as follows (Table 7-9):

Table 7-9 Water Permits & Discharges, San Francisco WD ARB, 2005


Permit

Date

Granted

Discharge


Binus-agan Creek Karaos 13868 Jul-93 20.00 8-28-49 N 125-58-59 E Lapag Creek Karaos 13869 Jul-93 6.40 8-28-55 N 125-59-10 E Karaos Spring I Karaos 13871 Jul-93 32.00 8-29-20 N 125-58-52 E Karaos Spring II Karaos 13870 Jul-93 5.00 8-29-15 N 125-58-48 E Tinggangawan I Alegria 15448 Oct-96 15.00 8-29-20.1 N 125-59-58.5 ETinggangawan II Alegria 15447 Oct-96 80.00 8-29-16.08 N 126-00-03 E Lapag Creek Karaos 15449 Oct-96 10.00 8-29-19 N 125-59-35.1 EAnagasian Spring Ormaca 15450 Oct-96 25.00 8-27-25.02 N 125-59-21.1 EUog Spring Alegria 15451 Oct-96 44.00 8-29-18.3 N 125-59-58 E Tinggangawan Creek Alegria 18686 Sep-03 110.00 8-28-56 N 126-00-03 E Uog Creek Alegria 18687 Sep-03 72.30 8-29-07 N 125-59-47 E

4. Compostella Valley

As of 1999, Compostela Valley had about 50,815 households (61%) served by Level I systems, 20,515 households (25%) by Level II, and 12,398 households (15%) by Level III. Relative to this, about 17,658 households remain unserved or roughly one-fifth of the served population.

Table 7-10 shows the various water sources of municipalities served by Level III systems.

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Table 7-10 Water Sources of Level III-Served Municipalities ARB, 1999

Municipality Location of Water Sources Location and Number of

Pumps

1. Compostela Poblacion Poblacion (2 pumps) 2. Laak Poblacion and

Kapatagan Pob. & Kapatagan(1 pump & 1 spring)

3. Mabini Lapinigan Water System Lapinigan (1 pump) 4. Maco Maco Water System Poblacion (1 pump) 5. Maragusan Maragusan Maragusan (4 springs) 6. Mawab Andili Andili (2 springs)

Banlag Water System Banlag (1 spring) Tubo-tubo Tubo-tubo (1 spring) Pagkain ng Bayan Pasian (1 pump)

7. Monkayo

Monkayo Water System Poblacion (2 pumps) 8. Montevista Poblacion Poblacion (2 pumps)

Andap Andap (2 springs) 9. New Bataan Camanlangan Camanlangan (1 spring)

10. Pantukan Pob. District Hospital Poblacion (1 pump)

The urban areas of Compostela, Mabini, Maco, Montevista, Monkayo, Nabunturan and Pantukan are predominantly served by the local water works powered by electricity. Meanwhile, the urban areas of Maragusan, New Bataan and Laak are served by gravity and spring sources. Only Nabunturan though is operated under a WD.

Nabunturan Water District. CCC NO. 146 was granted to Nabunturan WD in 1981. As of October 2005, the WD is serving 2500 connections distributed in 7 of its 28 barangays. Its present water supply sources are five (5) deep wells that, however, are found to have high iron and manganese content. Water permits for these sources are presented below (Table 7-11).

Table 7-11 Water Permits & Discharges, Nabunturan WD ARB, 2005


Permit

Date

Granted

Discharge


Groundwater No.5 New Sibonga 17575 Mar-01 2.20 7-33-45 N 125-55-42 EGroundwater No.4 Pangutosan 17324 Jul-00 18.43 7-36-26 N 125-58-32 EGroundwater No.3 Purok 7 12652 Jul-91 20.00 7-35-58 N 125-57-46 EGroundwater No.2 Purok 9 12651 Jul-91 8.00 7-36-14 N 125-57-45 EGroundwater No.1 Public Market 12650 Jul-91 6.00 7-36-30 N 125-58-08 E

(b) Tariff Structures

For cost efficiency, the usual practice for WDs and WSPs is to structure tariffs to recover their investment. For WDs within the Basin, residential customers pay from PhP105.00 to PhP175.00 for the first 10 cu. m whereas commercial/industrial users pay from PhP183.00 to PhP300.00 for the first 10 cubic meters. Table 7-12 shows the water rates of several water districts within the ARB.

Table 7-12 Water Rates, Selected Water Districts

Bayugan Water

District

MinimumCharge

11-20 cu.m.

21-30 cu. m.

31-40 cu. m.

41-50 cu. m.

51cu. m. up

Residential/Govt. 128.00 14.00 15.60 17.60 20.00 22.80Commercial/Industrial 256.00 28.00 31.20 35.20 40.00 45.60Commercial -A 224.00 24.50 27.30 30.80 35.00 39.90Commercial - B 192.00 21.00 23.40 26.40 30.00 34.20Commercial - C 160.00 17.50 19.50 22.00 25.00 28.50

7-9


Bulk/wholesale 384.00 42.00 46.50 52.80 60.00 68.40Prosperidad Water

District

MinimumCharge

11-20 cu.m.

21-30 cu. m.

31-40 cu. m.

Over 40 cu. m.

Residential/Govt. 149.00 15.85 18.90 22.50 26.45Commercial - I 260.75 27.70 33.05 39.35Commercial/Industrial 298.00 31.70 37.80 45.00 52.90Bulk/wholesale 33.75 40.20 47.85 56.25San Francisco

Water District

MinimumCharge

11-20 cu.m.

21-30 cu. m.

31-40 cu. m.

41-50 cu. m.

51 cu. m. up

Residential/Govt. 151.00 16.80 18.95 21.30 23.75 26.50Commercial/Industrial 302.00 33.60 37.90 42.60 47.50 53.00Commercial -A 264.25 29.40 33.15 37.25 41.55 43.65Commercial - B 226.50 25.20 28.40 31.95 35.60 39.75Commercial - C 188.75 21.00 23.65 26.60 29.65 33.10Bulk/wholesale 453.00 50.40 56.85 63.90 71.25 79.50Bunawan Water

District

MinimumCharge

11-20 cu.m.

21-30 cu. m.

31-40 cu. m.

over 40 cu.m.

Residential/Govt. 125.00 13.20 14.00 15.00 16.00Commercial/Industrial 250.00 26.40 28.00 30.00 32.40Commercial -A 218.75 23.10 24.50 26.25 28.35Commercial - B 187.50 19.80 21.00 22.50 24.30Commercial - C 156.25 16.50 17.50 18.75 20.25Buenavista Water

District

MinimumCharge

11-20 cu.m.

21-30 cu. m.

31-40 cu. m.

41-50 cu. m.

Residential/Govt. 175.00 20.40 23.50 27.00 31.00Commercial/Industrial 350.00 40.80 47.00 54.00 62.00Commercial -A 306.25 35.70 41.10 47.25 54.25Commercial - B 262.50 30.60 35.25 40.50 46.50Commercial - C 218.75 25.50 29.35 33.75 38.75Bulk/wholesale 525.00 61.20 70.50 81.00 93.00Nabunturan Water

District

MinimumCharge

11-20 cu.m.

21-30 cu. m.

31-40 cu. m.

41-50 cu. m.

Residential/Govt. 156.50 16.55 19.45 24.05 29.75Commercial/Industrial 313.00 33.10 38.90 48.10 59.50Commercial -A Commercial - B 234.75 24.80 29.15 36.05 44.80Commercial - C Bulk/wholesale 469.55 49.65 58.35 72.15 89.25

New Sibonga MinimumCharge

11-20 cu.m.

21-30 cu. m.

31-40 cu. m.

41-50 cu. m.

Residential/Govt. 96.00 10.05 12.80 15.80 19.60Commercial/Industrial 192.00 20.10 25.60 31.80 39.20Commercial -A Commercial - B 144.00 15.05 19.20 23.70 29.40Commercial - C Bulk/wholesale

Montevista MinimumCharge

11-20 cu.m.

21-30 cu. m.

31-40 cu. m.

41-50 cu. m.

Residential/Govt. 131.75 13.95 16.35 20.25 25.05Commercial/Industrial 263.50 27.90 32.70 40.50 50.10Commercial -A Commercial - B 197.60 20.90 24.50 30.35 37.55Commercial - C Bulk/wholesale

7-10


(c) Initial Development Trends

Previous water studies conducted on the ARB are the basis of the succeeding discussion on trends regarding supply and demand, including availability of water in the study areas. Among others, data cited here shall be verified, reevaluated and validated in when a detailed assessment of water resources shall have been conducted. Major trends examined in this section are those of municipal water demand, industrial water demand, and a consolidated assessment to determine overall water availability in major river systems of the ARB.

Municipal Water Demand. Municipal water demand in the ARB has been assessed in two (2) aspects; namely, (a) possible water demand, which assumes improvements in the structure of water supply facilities and service levels of presently served populations; and (b) potential water demand, which assumes 100% coverage of previously unserved populations.

In demonstrating the dynamics of municipal water demand, two (2) cases were constructed; where, (a) Case 1 assumes unit water consumption is fixed at the level of base year 2000; and (b) Case 2 assumes that unit water consumption would increase depending on per capita GRDP. Under Case 2, three (3) scenarios were predicted for low, medium, and high behavior of per capita GRDP. Meanwhile, for each target year starting with 2000, a corresponding target of service coverage ratio by city/municipal water supply was set up in such a gradual manner that 95% would be attained in each city/municipality by 2030. Forecast results are in Table 7-13.

Table 7-13 Forecasted Municipal Water Demand ARB, 2000-2020 (Unit : 1,000 cu. m)

Scenario Contents of Demand 2000 2005 2010 2020

Possible Demand(Served) ,616 7,521 4,927 5,274Potential Demand(Unserved) 3,987 3,614 2,650 ,773

Total Demand 3,603 1,135 7,577 4,047Case-1

Demand Sufficiency Ratio(%) 1 6 6 4Possible Demand(Served) ,616 8,647 7,486 4,313Potential Demand(Unserved) 3,987 4,204 7,591 0,352

Total Demand 3,603 2,851 5,077 4,665Low(Case 2)


Total Demand 3,603 3,453 2,672 9,028Medium(Case 2)


Total Demand 3,603 3,765 4,814 5,605High(Case 3)

Demand Sufficiency Ratio(%) 1 6 7 4

Industrial Water Demand. In the projections, the assumption is that the water demand of manufacturing industries in the ARB would increase correspondingly with the growth rate of the gross value-added (GVA) of manufacturing industries in Regions XI and XIII. The resulting demand forecasts are in Table 7-14.

Table 7-14 Forecasted Industrial Water Demand ARB, 2000-2020

(Unit : 1,000 cu.m) Growth Scenarios 2000 2005 2010 2020

Low 1,629 2,180 3,748Medium 1,659 2,295 4,114High

1,1571,746 2,513 4,941

7-11


Consolidated Demand. Potential water demand and high-scenario forecasts of municipal and industrial water demand were summed up to arrive at total water demand of municipal and industrial sectors as shown in Table 7-15.

Table 7-15 Water Balance (Municipal & Industrial Demand) ARB, 2005-2020Unit: MCM

Municipal Water

Demand

Industrial &

Commercial Water

Demand

Excess Water Name of Sub

Basin

Available

Water

2005 2010 2020 2005 2010 2020 2005 2010 2020

Wawa 851.47 2.04 2.88 5.28 0.16 0.24 0.47 849.27 848.35 845.72Gibong 473.04 5.52 7.08 12.12 0.48 0.7 1.37 467.04 465.26 459.55Simulao 441.51 2.28 3.36 5.88 0.08 0.12 0.24 439.15 438.03 435.39Upper Agusan 454.12 5.76 6.84 10.56 0.27 0.39 0.77 448.09 446.89 442.79Manat 138.76 1.8 2.04 2.88 0.12 0.17 0.33 136.84 136.55 135.55Boabo 44.15 0.84 1.32 2.28 0.05 0.07 0.13 43.26 42.76 41.74Logum 50.46 0.96 1.44 2.64 0.03 0.05 0.09 49.47 48.97 47.73Ihaoan 220.75 0.84 1.2 2.28 0.08 0.11 0.22 219.83 219.44 218.25Umayam 315.36 0.48 0.72 1.32 0.01 0.02 0.03 314.87 314.62 314.01Adgaoan 378.43 0.36 0.48 0.96 0.01 0.01 0.01 378.06 377.94 377.46Kasilayan 378.43 0.6 0.96 1.68 0.02 0.03 0.06 377.81 377.44 376.69Maasam 441.5 0.6 0.6 1.08 0.001 0.01 0.02 440.89 440.89 440.4Libang 283.82 0.72 0.72 1.44 0.01 0.01 0.02 283.09 283.09 282.36Ojot 756.86 0.72 0.96 1.8 0.01 0.01 0.01 756.13 755.89 755.05Bugabus 145.06 2.4 3 5.64 0.02 0.1 0.19 142.64 141.96 139.23

The results show that municipal as well as industrial and commercial water demand do not exact undue pressure on available water resources to cause water shortages in principal sub-basins of the ARB. Water availability in the ARB therefore appears sufficient enough to satisfy demand brought about by increases in service levels, per capita consumption, and manufacturing growth.

The trend is unlike that exhibited with irrigation demand, which in the foregoing section, is suggested to create significant water shortages in several sub-basins at specific periods as early as 2012. It could be further surmised that future water availability in the ARB will depend largely on the extent by which irrigation requirements would be accommodated.

7.1.3 Flood Control

The physiography of the ARB renders it highly susceptible to f-16looding, with its mountainous regions causing rapid runoff of heavy rainfall. The river profile of Agusan shows three (3) valleys in its upper portion, another in midstream and the other at the river mouth. Hence, critical control sections are naturally occurring along the river course. These channel sections are at Monkayo, Talacogon and Las Nieves. Other than physiography, flooding in Butuan City is also related to both drainage and tidal fluctuation. Available data show that vulnerability to flooding tends to be high among municipalities located in the middle reach of the Agusan River and barangays situated in downstream areas particularly Butuan City.

Existing flood control structures especially in the Upper and Middle Agusan River are shown in Table 7-16.

Table 7-16 Flood Control Structures, ARB, 2005

Municipality Type of Structure Code Northing Easting

Maragusan Revetment (2) 4010 811000 846360 Mabini Revetment 4011 811080 846400

Maragusan

Bukal Revetment 4005 831470 833879 New Sibonga Revetment 4017 836860 823460

4016 837130 823570 Mawab

Linda Revetment (3) 4014 839180 824000

7-12


Municipality Type of Structure Code Northing Easting

4015 837600 823800 3004 832530 834030 3005 832420 833980

Mainit Spur Dike (3)

3006 832280 834000 Mainit Dike 2001 832250 834140

3002 824620 833200 Manat Spur Dike (2) 3003 824620 833300

Manat Revetment 4004 834470 833650 Nabunturan Revetment 4012 841500 827040

Nabunturan

Nabunturan Drainage 4013 841280 827330 New Bataan Revetment 4009 835980 843950 New Bataan Bangoy Revetment 4008 839660 846070

Compostela Compostela Cut-off Channel 5003 849720 840990 4003 852790 831450 Montevista Revetment (2) 4007 853140 830040

Montevista

Tapia Revetment 4002 858470 831960 Olaycon Revetment 4001 862420 833900 Olaycon Cut-off Channel 5002 862340 833970 Olaycon Spur Dike 3001 862300 833860 Monkayo Dike 2002 866940 836630 Monkayo Revetment 4006 866880 836440

Monkayo

Monkayo Cut-off Channel 5001 869020 837070

Currently, there are on-going river improvement works at the Lower Agusan River under the Lower Agusan Development Project (LADP). These consist of road dike levees and floodwalls, cut-off channels and floodgates, dredging works, land development and social infrastructure, as well as river improvement, and irrigation components. Such development suggests that any future flood control strategy for the ARB and its Upper and Middle Agusan Rivers would have to pay particular attention with the objectives of the river improvement project of the Lower Agusan.

7.1.4 Roads and Bridges

The Basin is traversed by the Maharlika Highway from Davao City to Butuan City. The national highway is either asphalt or concrete paved in some parts but generally in good condition with several sections undergoing rehabilitation. Over this national highway lies 59 bridges with a combined length of 2.75km.

The major water-related transport problem in the study areas is the overtopping of the Kalaw Bridge at Monkayo in Compostela Valley during flooding. Flooding and almost overtopping of road sections along the Maharlika Highway is also reported in the municipalities of Sibagat, Bunawan and Rosario in Agusan del Sur.

7.1.5 River Transport

The only operating river transport in the ARB lies between the Philippine Port Authority (PPA) Ferry Terminal Complex and the municipality of Magallanes in Agusan del Norte. The transport service is from 6AM and 9PM, with motorized boats departing every 25 minutes. Initially, 26 motorized watercrafts plied the river route but at present, only 16 are operational. An average motor craft can accommodate 30 to 50 passengers, with gross tonnage ranging from 3 to 10 tons.

River port facilities catering mostly to timber industries along the Agusan River had slowed down since the late 1980s. Common port facilities found in the study areas include temporary wharves or private property boundaries made of dike. PPA has a concrete pipe wharf that can accommodate barges and shallow draft vessel as it is limited by water depth at the river mouth.

7-13


Meanwhile, about 11 private port facilities are nominally operating in several areas and for various industries. These include Pacwood (timber poles), San Miguel (bottled cargoes), Caltex Philippines (petroleum products), Shell Petroleum (petroleum products), Escano Shipping, Ever Wood, Philippine Match (Eurasia), Emco, Liberty, Eureka and Atlantic Gulf & Pacific Co. of Manila, Inc. (AG&P). The administration and supervision of private port facilities are under the PPA-Project Management Office (PMO) of Butuan.

7.1.6 Hydropower

There are no hydropower plants within the Basin although two (2) water permits have been processed for this purpose. The first is for a proposed plant in Compostela Valley where a permit has been issued but was not utilized as its construction did not materialize. The other is for a hydropower project in Sumilao (Agusan del Sur), the proponent of which applied for a permit that was not completely processed due to the absence of a project study for the undertaking. Nevertheless, several hydropower projects have been proposed in the ARB as indicated in Table

7-17.

Table 7-17 Proposed Hydropower Projects, ARB

Proposed Drainage Dam Storage Potential Potential Potential Flood

Projects Area (km2) Height (m) Volume (MCM) Power (MW) Irrigation (ha) Storage (MCM)

Agusan No 3 348 113.5 625 38 37296 109Simulao No 2 266 47.2 249 26 18370 83Maganoy No. 5 1188 255 1671 326 222Malitubog No. 2 588 49 297 22 100Casapa 633 106 808 134 101704 194Adgaoan No. 3 340 62 470 68 59185 169Gibong 408 77 3905 114 92963 814Ojot 474 93 2395 32 69037 381Wawa 412 189 2515 99 78963 303

7.2 PROGRAMS/ PROJECTS BY KEY THEME

The projects by key theme are presented as follows:

7.2.1 Water Quality Management Program

There are two (2) major projects proposed under the Water Quality Management Program with a total cost of PhP93.2 million as indicated in Table 7-18, while the project location is shown in Figure 7-1.

Table 7-18 Estimated Cost of Projects in Water Quality Management Program

ARB Master Plan, 2005-2006

No. Project Location Sub-BasinEstimated

Cost (P000)

1Institutional Strengthening for Basin-wide Water Quality Data Management

Basinwide Basinwide 12,323

2Organic Fertilizer & Bio-Gas Production Facility

Butuan City Minor 80,900

Total Water Quality Management Program 93,223

Institutional Strengthening for Basin-wide Water Quality Data Management would cost PhP12.3 million while the establishment of an Organic Fertilizer and Bio-Gas Production Facility would cost PhP80.9 million.

7-14


The Basin-wide Water Quality Data Management Project would entail the: (i) establishment of a basin-wide system of water quality data collection and monitoring; (ii) designation of Water Quality Management Areas (WQMA) and “non-attainment areas”; (iii) strengthening of industrial effluent monitoring and discharge permitting system; (iv) water quality data management, which includes water quality mapping and hydrologic modelling, and (v) establishment of a public advisory system.

Figure 7-1 Location of Projects for Water Quality Management Program,


7.2.2 Flood Management Program

There are five (5) major flood management projects proposed in this Master Plan with a total estimated cost of PhP3.0 billion at 2006 prices (Table 7-19 and Figure 7-2). Major cost components are the Updating and Implementation of the Upper Agusan Flood Control and Drainage System Project, which would cost PhP2.0 billion, and the Implementation of the Butuan City Drainage System Master Plan, amounting to PhP0.9 billion.

The Establishment of Flood Warning and Forecasting System Project (basin-wide) would involve the development of software and installation of hardware that could be up and running within six (6) months. This would cost PhP11.6 million. The other two (2) projects involve several studies; namely, the Drainage System Master Plan (PhP28.0 million) and the Feasibility Study for a Multipurpose Outlet System. The latter, aiming to increase the surcharge capacity of the Agusan Marsh, would cost PhP22.4 million.

7-15


Table 7-19 List of Proposed Flood Management Projects


No. Project Sub-Basin

Amount

(P000 at 2006

Prices)

FIRR EIRR

Benefit:Cost

Ratio @12%

per annum

1Implementation of the Butuan City Drainage System Master Plan

Minor 948,500no

revenue17.0% 1.3

2

Monkayo Manat 2,801 Montevista Manat 2,801 Nabunturan Manat 2,801 Talacogon Kasilan 2,801 San Francisco Gibong 2,801 Bayugan Waw a-Andanan 2,801 R T Romualdez Minor 2,801 Esperanza Ojot 2,801 Las Nieves Minor 2,801 Magallanes Minor 2,801Total 28,008

3

Feasibility Study for a Multipurpose Outlet System to Increase Surcharge Capacity of the Agusan Marsh (Flood, Water Supply and Irrigation)

Agusan Marsh 22,418

4Update and Implementation of the Upper Agusan Flood Control and Drainage System Project

Manat 1,974,111no

revenue15.3% 1.5

5Establishment of Flood Warning and Forecasting System Project

basinw ide 11,550

Total Flood Management Program 2,984,587

study phasestudy phasestudy phase

system could be installed w ithin six months

study phase

study phase

study phase

Preparation of Drainage System Master Plan (one package project; cost w as divided equally for allocation purposes only):

study phasestudy phasestudy phasestudy phasestudy phase

Figure 7-3 Location of Projects for Flood Management Program,


7-16


7.2.3 Water Resources Development Program

Twenty five projects have been identified under the Water Resources Development Program (Table 7-20 and Figure 7-4). The estimated total cost for all the projects is PhP2.6 billion at 2006 price levels. Ten projects estimated to cost PhP2.5 billion could be considered for implementation while the other 15 projects would require studies that are estimated to cost a total of PhP110 million.

Table 7-20 List of Water Resources Development Projects ARB Master Plan, 2005-2006

No. Project Sub-Basin

Cost Est

(P000 at

2006 Prices)

FIRR EIRR

Benefit:

Cost Ratio

at 12% Rate

Water Supply and Sanitation Projects

1 Monkayo Water Supply Project Manat 70,000 15.8% 39.8% 3.12 Compostela Water Supply Project Manat 85,000 15.6% 39.3% 3.03 Bayugan Water Supply Project Waw a-Andanan 90,000 15.9% 39.9% 3.14 Trento Water Supply Project Simulao 80,000 15.8% 39.6% 3.05 Patin-ay Water Supply Project Gibong 55,000 15.7% 39.5% 3.1

6Preparation of Butuan City Sew erage System Master Plan

Minor 8,000

7Preparation of Agusan Marsh Water Supply, Solid Waste Disposal and Sew erage Systems Feasibility Studies

Agusan Marsh 8,000

Water Supply Management Project

8Preparation of the Taguibo River Water Management Plan

Taguibo 7,000

River Irrigation Projects (RIPs)

9 Umayam-Adgaoan RIP Umayam 330,28310 Umayam-Adgaoan RIP Adgaoan 1,321,133

Logom-Baobo RIP11 Logom RIP Logom 85,00012 Baobo RIP Baobo 55,00013 Feasibility Study (FS) of Pusilao RIP Ojot 5,00014 FS of Manat RIP Manat 5,00015 FS of Sulibao RIP Sulibao 5,00016 FS of Libang RIP Libang 5,00017 FS of Ihaoan RIP Ihaoan 5,00018 FS of Maasam RIP Maasam 5,000

Multipurpose and Pump Irrigation Projects (PIPs)

Feasibility Studies of Ojot River Multi-purpose Project and Associated PIPs

19 FS of Ojot River Multipurpose Proj Ojot 10,000

20 Sta Josefa PIP Minor 335,000capital cost

is subsidized15.3% 1.0

21 FS of Guadalupe PIP Minor 5,00022 FS of Las Nieves PIP Minor 5,00023 FS of Nueva Era PIP Simulao 5,000

Water Transport

24 Butuan City Inland Port Minor 15,18025 Agusan River Water Transport System Various 16,324

Total Water Resources Development Program 2,615,920

study phasestudy phase

1.4capital cost

is subsidized15.3%

capital cost is subsidized

21.6% 2.3


study phase

study phase

study phase

study phase

study phase

study phase


study phase

study phase

study phase

7-17


Figure 7-4 Location of Projects for Water Resources Development Program,


7.2.4 Watershed Management Program

There are 152 projects identified under the Watershed Management Program with an aggregate cost of PhP3.4 billion (Table 7-21). The sub-component with the largest cost share is the reforestation of selected wooded grasslands and grasslands (80.8%). The total cost of PhP2.8 billion shall be for a total area of 127,023ha spread over 16 watersheds (Figure 7-5).

7-18


Table 7-21 List of Watershed Management Projects ARB Master Plan, 2005-2006

No. Watershed Area (ha)Estimated

Cost (P000)% Share

Watershed Characterization & Management Planning

1 Manat 108,326 10,833 0.31%2 Lam-awan/Minor 95,641 9,564 0.28%3 Ihaoan 64,947 6,495 0.19%4 Kasilayan 18,466 1,847 0.05%5 Libang 23,601 2,360 0.07%6 Maasam 24,655 2,466 0.07%7 Ojot 86,691 8,669 0.25%8 Wawa 67,151 6,715 0.19%

Total 489,477 48,948 1.42%

Watershed Reforestation

9 Taguibo 1,394 30,538 0.89%10 Bugabos 6,372 139,591 4.05%11 Adgawon 15,186 332,680 9.66%12 Andanan-Wawa 23,181 507,826 14.74%13 Gibong 8,976 196,637 5.71%14 Ihaoan 14,284 312,920 9.08%15 Kasilayan 3,092 67,736 1.97%16 Libang 439 9,617 0.28%17 Logum 3,942 86,357 2.51%18 Maasam 1,078 23,616 0.69%19 Ojot 9,897 216,814 6.29%20 Simulao 1,513 33,145 0.96%21 Umayam 3,324 72,819 2.11%22 Minor/Lam-awan 17,100 374,610 10.87%23 Manat 16,606 363,788 10.56%24 Sulibao 639 13,999 0.41%

Total 127,023 2,782,693 80.76%

Watershed Agroforestation

25 Taguibo 338 1,481 0.04%26 Adgawan 823 3,606 0.10%27 Andanan-Wawa 811 3,553 0.10%28 Gibong 3,799 16,643 0.48%29 Ihaoan 1,447 6,339 0.18%30 Kasilayan 230 1,008 0.03%31 Libang 61 267 0.01%32 Logom-Baobo 1,337 5,857 0.17%33 Maasam 73 320 0.01%34 Ojot 86 377 0.01%35 Simulao 2,659 11,649 0.34%36 Umayam 739 3,238 0.09%37 Minor/Lam-awan 1,725 7,557 0.22%38 Manat 10,518 46,079 1.34%39 Sulibao 197 863 0.03%

Total 24,843 108,837 3.16%

7-19



Cost (P000)% Share

Riverbank Stabilization

40 Taguibo 279 1,431 0.04%41 Bugabos 629 3,227 0.09%42 Adgawan 3,619 18,565 0.54%43 Andanan-W awa 2,819 14,461 0.42%44 Gibong 3,418 17,534 0.51%45 Ihaoan 2,754 14,128 0.41%46 Kasilayan 1,391 7,136 0.21%47 Libang 910 4,668 0.14%48 Logum 1,075 5,515 0.16%49 Maasam 1,543 7,916 0.23%50 Ojot 3,410 17,493 0.51%51 Simulao 3,610 18,519 0.54%52 Umayam 2,679 13,743 0.40%53 Minor/Lam-awan 8,117 41,640 1.21%54 Manat 6,488 33,283 0.97%55 Sulibao 589 3,022 0.09%

Total 43,330 222,283 6.45%

W atershed Protection

56 Taguibo 2,114 478 0.01%57 Bugabos 967 219 0.01%58 Adgawan 13,966 3,156 0.09%59 Andanan-W awa 15,100 3,413 0.10%60 Gibong 12,701 2,870 0.08%61 Ihaoan 25,828 5,837 0.17%62 Kasilayan 12,200 2,757 0.08%63 Libang 9,755 2,205 0.06%64 Logom-Baobo 39 9 0.00%65 Maasam 11,676 2,639 0.08%66 Ojot 28,246 6,384 0.19%67 Simulao 29,627 6,696 0.19%68 Umayam 43,396 9,807 0.28%69 Minor/Lam-awan 34,034 7,692 0.22%70 Manat 32,774 7,407 0.21%71 Sulibao 8,180 1,849 0.05%

Total 280,603 63,416 1.84%

72 Adgawan 98,481 2,594 0.08%73 Bugabos 17,055 449 0.01%74 Gibong 92,638 2,441 0.07%75 Ihaoan 74,635 1,966 0.06%76 Kasilayan 37,689 993 0.03%77 Libang 24,656 650 0.02%78 Logum-Baobo 29,120 767 0.02%79 Maasam 41,820 1,102 0.03%80 Manat 175,822 4,632 0.13%81 Minor/Lam-awan 219,244 5,776 0.17%82 Ojot 92,419 2,435 0.07%83 Simulao 97,838 2,578 0.07%84 Sulibao 15,975 421 0.01%85 Taguibo 7,572 199 0.01%86 Umayam 72,947 1,922 0.06%87 W awa-Andanan 76,414 2,013 0.06%

Total 1,174,324 30,938 0.90%

Capability Building, Community Organizing and

Stakeholder Development

7-20


No. W atershed Area (ha)Estim ated

Cost (P000)% Share

Livelihood Generation

88 Adgawan 98,481 1,000 0.03%89 Bugabos 17,055 1,000 0.03%90 Gibong 92,638 1,000 0.03%91 Ihaoan 74,635 1,000 0.03%92 Kasilayan 37,689 1,000 0.03%93 Libang 24,656 1,000 0.03%94 Logum -Baobo 29,120 1,000 0.03%95 Maasam 41,820 1,000 0.03%96 Manat 175,822 1,000 0.03%97 Minor/Lam -awan 219,244 1,000 0.03%98 Ojot 92,419 1,000 0.03%99 Sim ulao 97,838 1,000 0.03%

100 Sulibao 15,975 1,000 0.03%101 Taguibo 7,572 1,000 0.03%102 Um ayam 72,947 1,000 0.03%103 W awa-Andanan 76,414 1,000 0.03%

Total 1,174,324 16,000 0.46%

Monitoring and Evaluation

104 Adgawan 98,481 375 0.01%105 Bugabos 17,055 375 0.01%106 Gibong 92,638 375 0.01%107 Ihaoan 74,635 375 0.01%108 Kasilayan 37,689 375 0.01%109 Libang 24,656 375 0.01%110 Logum -Baobo 29,120 375 0.01%111 Maasam 41,820 375 0.01%112 Manat 175,822 375 0.01%113 Minor/Lam -awan 219,244 375 0.01%114 Ojot 92,419 375 0.01%115 Sim ulao 97,838 375 0.01%116 Sulibao 15,975 375 0.01%117 Taguibo 7,572 375 0.01%118 Um ayam 72,947 375 0.01%119 W awa-Andanan 76,414 375 0.01%

Total 1,174,324 6,000 0.17%

Policy and Institutional Reform s

120 Adgawan 98,481 279 0.01%121 Bugabos 17,055 48 0.00%122 Gibong 92,638 262 0.01%123 Ihaoan 74,635 211 0.01%124 Kasilayan 37,689 107 0.00%125 Libang 24,656 70 0.00%126 Logum -Baobo 29,120 82 0.00%127 Maasam 41,820 118 0.00%128 Manat 175,822 498 0.01%129 Minor/Lam -awan 219,244 620 0.02%130 Ojot 92,419 262 0.01%131 Sim ulao 97,838 277 0.01%132 Sulibao 15,975 45 0.00%133 Taguibo 7,572 21 0.00%134 Um ayam 72,947 206 0.01%135 W awa-Andanan 76,414 216 0.01%

Total 1,174,324 3,323 0.10%

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Cost (P000)% Share

Tenurial Instrument Harmonization

136 ISF 6,504 2,277 0.07%137 TLA 16,806 5,882 0.17%138 TLA 16,806 5,882 0.17%139 Watershed 8,834 3,092 0.09%140 Watershed 6,425 2,249 0.07%141 Watershed 803 281 0.01%142 IFMA 18,348 6,422 0.19%143 IFMA 18,348 6,422 0.19%144 IFMA 18,348 6,422 0.19%145 IFMA 18,348 6,422 0.19%146 IFMA 18,348 6,422 0.19%147 IFMA 36,696 12,844 0.37%148 IFMA 18,348 6,422 0.19%149 IFMA 36,696 12,844 0.37%150 CBFMA 117,831 41,241 1.20%151 CADC/CADT 65,421 22,897 0.66%

Total 422,913 148,019 4.30%

152 Boundary Conflict Resolution 15,000 0.44%

Total Watershed Management Program 3,445,457 100.00%

Figure 7-5 Location of Projects for Watershed Management Program


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7.2.5 Agusan Marsh and Wildlife Sanctuary (AMWS) Management Program

Under the AMWS Management Program, two (2) major projects are proposed with an estimated total cost of PhP48.0 million (Table 7-22 ). The areas scoped by these projects are indicated in Figure 7-6.

Table 7-22 List of Agusan Marsh and Wildlife Sanctuary Management Projects


No. ProjectEstimated

Cost (P000)

1 Formulation and Implementation of AMWS Management Plan 37,9792 Regulated Public Access Project 10,000

Total Agusan Marsh and Wildlife Sanctuary Management Program 47,979

The Formulation and Implementation of the AMWS Management Plan is a project on updating the existing AMWS plan prepared in 2001. The project would include a resource inventory using the “Manual for Inventory of Asian Wetlands” as prescribed by Wetlands International for Ramsar-registered wetlands of international importance.

As already mentioned, several projects from other key themes are interlinked with the AMWS Program. Other projects proposed for the AMWS are part of other programs, such as the Preparation of the Agusan Marsh Water Supply Project, Solid Waste Disposal and Sewerage Systems Feasibility Studies (estimated project cost of PhP8.0 million) under the Water Resources Management Program, and the Feasibility Study of a Multipurpose Outlet System to Increase Surcharge Capacity of the Agusan Marsh (Flood, Water Supply and Irrigation) (estimated project cost of PhP22.4 million) under the Flood Management Program.

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Figure 7-6 Location of AMWS Management Program Projects,


7.2.6 Indigenous Peoples Development Program

The IP Development Program identified eight (8) sub-programs composed of 78 site-specific and beneficiary-specific projects spread over nine (9) sub-basins and amounting to PhP230.0 million (Table 7-23).

The IP ethnic groups that would benefit from the projects include the Higaon-ons, Manobos, Mamanwas, Mandayas, Mansakas, Mangguangans and Dibawanons. The geographic spread of these projects is in Figure 7-7.

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Table 7-24 List of Indigenous Peoples Development Projects,


No. Project Sub-Basin Ethnic GroupEstimated

Cost (P000)

I CADT Processing Project

1 Mt. Mayapay Bugabos Higaon-on 2,4502 RTR, Las Nieves, Cabadbaran Minor Higaon-on 8,7503 Casiclan, Las Nieves Ojot Higaon-on 25,9004 Upper Subaet, Las Nieves Ojot Manobo 3,5005 Lydia, La Paz Adgaoan Manobo 1,0506 Loreto Umayam Manobo 32,9007 San Luis Kasilan Mamanwa 10,5008 Talacogon Kasilan Manobo 1,7509 Esperanza Ojot Manobo, Higaon-on, Mamanwa 8,750

10 Sibagat, Las Nieves Wawa-Andanan Manobo 10,500Sub-total CADT Processing 106,050

II Preparation of ADSDPP

11 Mt. Mayapay Bugabos Higaon-on 5,00012 RTR, Las Nieves, Cabadbaran Minor Higaon-on 5,00013 Casiclan, Las Nieves Ojot Higaon-on 5,00014 Upper Subaet, Las Nieves Ojot Manobo 5,00015 Lydia, La Paz Adgaoan Manobo 5,00016 Loreto Umayam Manobo 5,00017 San Luis Kasilan Mamanwa 5,00018 Talacogon Kasilan Manobo 5,00019 Esperanza Ojot Manobo, Higaon-on, Mamanwa 5,00020 Sibagat, Las Nieves Wawa-Andanan Manobo 5,000

21Maragusan, New Bataan, Compostela

Manat Mandaya, Mansaka 5,000

22 Montevista Manat Mangguangan 5,00023 Nabunturan, Mawab, Pantukan Manat Mansaka 5,00024 Laak Ihaoan Dibawanon, Mangguangan 5,000

Sub-total ADSDPP Preparation 70,000

III Indigenous Knowledge System and Practices Research Project

25 Mt. Mayapay Bugabos Higaon-on 30026 RTR, Las Nieves, Cabadbaran Minor Higaon-on 30027 Casiclan, Las Nieves Ojot Higaon-on 30028 Upper Subaet, Las Nieves Ojot Manobo 30029 La Paz Adgaoan Manobo 30030 Loreto Umayam Manobo 30031 San Luis Kasilan Mamanwa 30032 Talacogon Kasilan Manobo 30033 Esperanza Ojot Manobo, Higaon-on, Mamanwa 30034 Sibagat, Las Nieves Wawa-Andanan Manobo 30035 Monkayo Manat Mansaka 30036 Montevista Manat Mangguangan 30037 Nabunturan Manat Mansaka 30038 Laak Ihaoan Dibawanon, Mangguangan 300

Sub-total Knowledge System Research 4,200

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No. Project Sub-Basin Ethnic GroupEstimated

Cost (P000)

IV Pilot Codification of Customary Laws

39 Mt. Mayapay Bugabos Higaon-on 30040 Cabadbaran Minor Mamanwa 30041 Las Nieves Minor Higaon-on 30042 La Paz Adgaoan Manobo 30043 Maragusan Manat Mandaya 30044 Laak Ihaon Dibawanon 30045 Montevista Manat Mangguangan 300

Sub-total Pilot Codification 2,100

V/46 Capability Building for IPs basinwide project leaders 3,938

VI Capability Building for NCIP & LGUs

47 CADT Conflict Resolution Caraga Region NCIP 1,12548 CADT Conflict Resolution Compostela Valley NCIP 45049 Research & Data Management Caraga Region NCIP 67550 Research & Data Management Caraga Region LGUs 45051 Research & Data Management Caraga Region COs 67552 Research & Data Management Compostela Valley NCIP 22553 Research & Data Management Compostela Valley LGUs 24854 Research & Data Management Compostela Valley COs 338

Sub-total NCIP Capability Building 4,185

VII Locally-Managed Enforcement System

55 Mt. Mayapay Bugabos Higaon-on 500

56Remedios T. Romualdez (RTR), Las Nieves, Cabadbaran

Minor Higaon-on 500

57 Upper Subaet, Las Nieves Ojot Manobo 50058 La Paz Adgaoan Manobo 50059 Loreto Umayam Manobo 50060 San Luis Kasilan Mamanwa 50061 Talacogon Kasilan Manobo 50062 Esperanza Ojot Manobo, Higaon-on, Mamanwa 50063 Sibagat Wawa-Andanan Manobo 50064 Compostela Manat Mandaya, Mansaka 50065 Monkayo Manat Mangguangan 50066 Maragusan Manat Mansaka 50067 Laak Ihaon Dibawanon, Mangguangan 500

Sub-total Enforcement System 6,500

VIII Improvement of IP Agro-Fishery Production Systems

68 Babag Minor Higaon-on 3,00069 Magallanes Minor Higaon-on 3,00070 Las Nieves Minor Higaon-on 3,00071 Talacogon Kasilan Manobo 3,00072 La Paz Adgaoan Manobo 3,00073 Loreto Umayam Mamanwa 3,00074 Bunawan Simulao Mamanwa 3,00075 Monkayo Manat Mandaya, Mansaka 3,00076 Maragusan Manat Mandaya, Mansaka 3,00077 Maco Manat Mansaka 3,00078 New Bataan Manat Dibawanon, Mangguangan 3,000

Sub-total Improvement of Production Systems 33,000

Total Indigenous Peoples Development Program 229,973

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Figure 7-7 Location of Projects for Indigenous Peoples Development Program,


7.2.7 River Basin Organization Development Program

The seven (7) identified projects under the Agusan River Basin Organization Development Program are estimated to cost PhP117.2 million (Table 7-25). The major cost items are those directly related to the establishment of the River Basin Organization which total to P52.2 million (Organization of Working Secretariat (P31.9 million), Organization of Interim BOT/RBO (P7.6 million) and Establishment of Databanking and GIS-Based Decision Support System(P12.7 million)).

Table 7-25 List of Agusan River Basin Organization Development Projects


No. ProjectEstimated Cost

(P000)

1 Organization of Working Secretariat 31,9002 Convening of Institutional Stakeholders Congress 6,000

3Organization of Interim Board of Trustees, RBO Staff and Sub-Basin Management Units

7,600

4Capability Building for RBOs and Institutional Stakeholders

5,000

5Establishment of Databanking and GIS-Based Decision Support System

12,700

6 Implementation of the Public Awareness Plan 34,000

7Feasibility Study of Establishing Agro-Industrial Economic Zones

20,000

Total River Basin Development Program 117,200

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�� Future irrigation demand would be a significant factor in maintaining positive water balance in the Basin. Compared to municipal as well as commercial and industrial water, satisfying the demand for irrigation water would exhaust the limits of available water resources.

�� While irrigation and domestic/commercial water demand are the principal uses of water in the Basin, the review suggests rising demand for flood control measures considering the vulnerability of people to flooding at midstream and downstream sections of the ARB. However, future interventions may have to take on a complementary function in light of structures already present in the Basin and those to be constructed. As alternative, priorities should also be set for the rehabilitation or repair of existing structures considering cost effectiveness and efficiency.

�� For the hydropower sector, sustainability issues need careful and thorough study. This may include the comparison of hydropower with alternative generation sources paying particular attention on power economics and demand analysis considering the high capital investment and gestation period of hydropower projects. The question of bed load sedimentation and high level of seismic activity in the region should also be given attention as these pose significant disadvantages for dams and hydropower development in the Basin. In addition, problems on land acquisition for reservoirs and resulting resettlement concerns should be properly addressed.

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IMPACT ASSESSMENT


8.0 IMPACT ASSESSMENT

8.1 STRATEGIC ENVIRONMENTAL ASSESSMENT

The ADB Environmental Assessment Guidelines (2003) defines Strategic Environmental Assessment (SEA) as “a systematic process for evaluating and anticipating the consequences of decisions taken prior to the project stage…. The purpose is to ensure that the environmental considerations and alternatives are addressed as early as possible and on par with economic and social factors in policy, plan or program development.”

An SEA was carried out as part of the Technical Assistance for the formulation of the Agusan River Basin Master Plan. Based on the Technical Proposal and Inception Report for the Study and as later confirmed by ADB, a full SEA is appropriate at this stage of formulation of a large river basin development plan.

8.1.1 Objectives

The SEA constitutes a first step in the screening of potential environmental impacts of a wide range of possible interventions proposed in the ARB Master Plan. The overarching aim is to avoid any major potential adverse impact and thereby promote environmentally sound and sustainable development.

The specific objectives of the SEA include the following:

i. To provide baseline information about the general environmental settings of the project area;

ii. To investigate the significant beneficial and adverse impacts of the Master Plan on the natural and human environment;

iii. To identify potential mitigation measures to minimize adverse impacts including their mitigation costs; if any;

iv. To assess the best alternative projects with the most benefits and the least cost in terms of social and environmental considerations; and

v. To provide basic information for formulating management andmonitoring plans.

8.1.2 Methodology

The assessment followed the procedures in conducting an SEA as laid out in the ADB Environmental Assessment Guidelines of 2003. The procedures include the following:

i. Scoping. A series of scoping and public consultation activities were conducted in June 2006. The scoping provided a way for the stakeholders to discuss and agree on:

�� The relevant issues and concerns attendant to the planned development under the Master Plan;

�� The perceived potential impacts of the Master Plan, which should be addressed in the SEA;

�� The scope and focus of the SEA analysis

ii. Stakeholder Participation. A wide range of basin stakeholders representing both project implementers and resource users were allowed to meaningfully participate in the scoping and public consultation. Other stakeholder consultations have also taken place on various occasions in the course of the Master Plan formulation .

iii. Description of Environmental Conditions. Baseline information were collected during fieldwork. These were used to describe the relevant physical, biological, social and economic environment against which the impacts of the projects were evaluated.

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iv. Criteria. The criteria used to evaluate the impacts include:

�� Location, type and scale of the project �� Location and environmental condition of impact areas �� Number and socio-economic conditions of people who may be affected; �� Type and importance of economic activities that may be impacted; �� The kind and status of resources that may be threatened and the values

attached to these; and,�� The intensity, duration and reversibility of the anticipated impacts

v. Identification, Prediction and Evaluation of Impacts. This SEA has employed an Environmental Screening Checklist, drawn up for the Basin according to international best practice. The screening checklist was used to identify, predict and evaluate the changes over time in the natural and human environment conditions as a result of implementing the Master Plan.

The output of the screening process was a matrix that identifies the most significant beneficial or adverse environmental impacts of each project category, whether direct or indirect.

The screening checklist also allowed the preliminary evaluation of the potential cumulative impacts of the Master Plan. A cumulative impact is either the synergistic effect on a particular area or aspect of the environment of different projects taken collectively or the sum effect of the proposed interventions when added to similar effects of past, on-going, and foreseeable future interventions.

vi. Integration. The SEA investigates the potential consequences of implementing the Master Plan both on natural and human environments. It examines any direct or indirect cause-effect relationships between the biophysical and socio-economic impacts, taking note that an insignificant direct impact on one aspect may have the potential to cause a significant indirect impact on the other aspect.

vii. Mitigation. The SEA includes proposals in order to reduce or control, if not eliminate, the identified significant adverse impacts. These measures include technical (such as the choice of location or project design), social (such as compensation or resettlement) and other means by which to restore the environmental conditions to pre-project levels. The aim is to ensure that none is worse off as a consequence of the intervention.

viii. Environmental Management and Monitoring. The SEA includes an analysis of the adequacy of institutional mechanisms for managing environmental effects of the projects. The SEA also includes monitoring arrangements to track the progress in actually carrying out the mitigation measures and alert decision makers to the need for new measures to address any unforeseen or residual impacts.

ix. Tiering. The SEA report contains recommendations for the conduct of detailed follow-up impact assessment prior to implementation of the proposals. The appropriate project-level assessment will depend on the environmental requirements of the funding agency and, as necessary, the impact assessment requirements under the Philippine EIS system. For now, each of the proposed projects was classified as Category A, B or C according to the environmental classification of the ADB based on its potential to cause significant adverse impacts.

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8.1.3 Categories of Projects

For purposes of this SEA, the proposed interventions were classified into 15 broad project categories; namely:

i. Strengthening of Basin-wide water quality management ii. Organic fertilizer and bio-gas production iii. Flood control iv. Water supply v. Wastewater and sewage collection and treatment projects vi. Irrigation vii. Multi-purpose (hydro-power-cum-irrigation) viii. Ports development projects ix. Forest protection and rehabilitation x. River bank stabilization xi. AMWS management xii. IP development xiii. Agusan RBO establishment xiv. Basin-wide data collection and management xv. Establishment of agro-industrial economic zones

Seven (7) of these categories are structural projects including organic fertilizer/bio-gas production, flood control, water supply, sewerage, irrigation, irrigation-cum-hydropower and ports development.

The rest of the projects are non-structural or soft measures consisting of institutional strengthening, management planning, policy reform and data management.

8.1.4 Key Environmental Issues

The main environmental issues in the basin are interrelated. These include poor water quality, flooding, inadequate access to domestic water supply, land and forest degradation, riverbank erosion, ecological threats to the Agusan Marsh, poverty and lack of economic livelihood opportunities and disenfranchisement of indigenous communities.

An overarching priority issue is poor environmental governance, which encompasses uncoordinated planning, inadequate devolution of management functions, conflicting policies, weak law enforcement and poor stakeholder participation. Overpopulation and inadequate economic opportunities help perpetuate the cycle of poverty and environmental degradation, which is exacerbated by security risk and poor access to basic social services such as education, health and sanitation.

8.1.5 Potential Environmental Impacts

The proposed Master Plan was screened by project category for potential environmental impacts, both beneficial and adverse, using the comprehensive checklist used for scoping major environmental issues (Table 8-1). The main purpose of this screening process is to ensure that these identified potential impacts and the constraints posed are taken into consideration right through to the development planning, design and implementation process.

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Table 8-1

Checklist for Screening of Potential Environmental Impacts

ARB Master Plan

PRINCIPAL COMPONENTS

1. NATURAL ENVIRONMENT

1.1 Natural Physical Environment

1.1.1 Atmosphere (1) Air 1.1.2 Climate (1) Rainfall (2) Tidal Surges (3) Storm Surges (4) Typhoons 1.1.3 Water Resources (1) Surface Water

1) Quantity - Local Rainfall Flooding - Main River Flooding - Tidal/Sea Flooding - Drainage

2) Quality - Salinity (ingress from the sea) - Pollution (mining, domestic waste and agriculture) - Domestic Water Supply (urban and rural) - Irrigation (iron, mine waste)

(2) Erosion (main rivers and coast) (3) Sedimentation (4) Accretion (in mouth of river) (5) Groundwater

1) Availability - Domestic Water Supply

2) Quality (natural gas, manganese, iron, arsenic) 1.1.4 Land Resources (1) Topography (2) Land Type (3) Soil (4) Type (5) Quality

1) Chemistry (salinity? Iron?) (6) Water logging (7) Erosion (8) Smothering (9) Capability 1.2 Natural Biological Environment

1.2.1 Terrestrial Habitats (1) Flora

(2) Fauna 1.2.2 Freshwater Habitats

(1) Flora (2) Fauna (3) Fish

1.2.3 Marine Habitats (1) Flora (2) Fauna (3) Fish

1.2.4 Bio-diversity and Conservation 1.2.5 Sensitive Areas – Marshland 1.3 Natural Risks and Hazards

1.3.1 Storms/Typhoons 1.3.2 Flood 1.3.3 Sea Level Rise 1.3.4 Seismic Activity 1.3.5 Landslides

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2. HUMAN ENVIRONMENT

2.1 Social Environment

2.1.1 Political and Institutional Administration 2.1.2 Demography 2.1.3 Gender Issues 2.1.4 Inequity 2.1.5 Settlement Pattern and History 2.1.6 Land Holding, Tenure and Values 2.1.7 Indigenous People 2.1.8 Common Resource Rights (1) Fish (2) Fuelwood (3) Grazing (4) Fodder 2.1.9 Domestic Energy and Fuel 2.1.10 Domestic Water Supply 2.1.11 Sanitation 2.1.12 Human Health (1) Waterborne Disease (Diarrhoeal, Schistosomiasis) (2) Insect-borne Disease (Malaria) (3) Mental Health (4) Human Nutrition 2.1.13 Education and Literacy 2.1.14 Archaeological and Cultural Sites 2.1.15 Landscape Aesthetics 2.2 Economic Environment

2.2.1 Economic Livelihood (1) Agriculture (2) Homestead Production (3) Livestock (4) Forestry (5) Fisheries (6) Industry (7) Other non-farm Wage Paid Employment 2.2.2 Infrastructure and Communications (1) Roads (2) Flood Protection (3) Irrigation (4) Navigation (5) Energy and Power (6) Telecommunications 2.3 Social Risks and Hazards

2.3.1 Storms/Typhoons 2.3.2 Floods

(1) Local Rainfall Flooding (2) Main River Flooding

2.3.3 Erosion 2.3.4 Earthquakes 2.3.5 Disease 2.3.6 Pollution 2.3.7 Social Instability/Conflict 2.3.8 Economic Instability

2.3.9 Political Instability/War 3. DIRECT CONSTRUCTION IMPACTS (for specific proposed interventions)

3.1 Land Acquisition

3.2 Compensation

3.3 Resettlement

3.4 Construction Management

4. LIKELY EIA LEVEL CLASSIFICATION

4.1 ADB Categories

4.2 Philippine EIS System Categories

A master detailed matrix was prepared, with the environmental aspects on the leftmost column, against which the impacts of each of the proposed projects across the top were evaluated. The simplified version of this matrix showing only the most significant impacts is in Table 8-2.

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The rating system used in the matrix indicates both the beneficial and adverse nature of the impacts (although not their magnitude). The cells representing the most significant beneficial impacts are highlighted in green, while the most serious adverse impacts are identified in red. It also identifies issues where no potential impacts are expected and can be discounted from the analysis at an early stage. This is important so that scarce resources can be targeted at addressing only the issues that really matter. Where it is possible to have simultaneous beneficial and adverse impacts the cell is highlighted in yellow.

The impacts may be different depending upon location, resources, or social group affected. The requirement of the planning process is to ensure that beneficial impacts are maximized and adverse impacts minimized so that the benefits greatly outweigh the costs. However, detailed follow-up studies may conclude that the negative impacts cannot be adequately mitigated and the proposed intervention is environmentally unsound and should not be implemented as proposed.

Cases where there is presently insufficient data to rate the impact are also identified, along with situations where there is considerable uncertainty because the detailed nature of the intervention has yet to be decided.

An important use of the matrix is to identify issues which, while not causing direct impacts, pose significant environmental constraints (and often have complex inter-related environmental linkages with other issues) and have to be considered in intervention design.

8.1.6 Cumulative Impacts and Mitigating Measures

Table 8-3 is a simplified summary of the significant adverse impacts that were identified from the environmental impact screening process, including proposed mitigation measures. The full discussion of all possible significant impacts, both beneficial and adverse is in the succeeding sections. These are presented by element projects within each of the proposed programs under the Master Plan.

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Table 8-3

Summary of Significant Adverse Impacts & Mitigation Measures

SEA, ARB Master Plan

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Using the same screening matrix, the cumulative impacts of the projects taken together are assessed against the aspects of the natural and human environment (Table 8-4).

Table 8-4

Simplified Screening Matrix of Cumulative Impacts

SEA, ARB Master Plan

The cumulative adverse impacts of the Master Plan were evaluated using the same results in the screening checklist. By going through an elimination process, the checklist was narrowed down further to only its adversely significant impacts.

Cumulative impacts were identified by adding up the synergistic negative effects on a particular environmental aspect of projects taken together. An initial evaluation of the projects’ potential to add to analogous impacts vis-à-vis other projects in the past, present, or foreseeable future, if any, is also attempted.

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A. Air Pollution

Two (2) projects have the potential to cause air quality problems, namely organic fertilizer/biogas production and the establishment of agro-industrial economic zones. The effects of each appear to be local and would possibly be confined to a small air shed of limited radial range.

However, there are already a number of potentially pollutive wood and vegetable oil processing industries in the Basin. Many of these are co-located in specific areas, e.g., Butuan City, Magallanes and Agusan del Sur.

In particular, the proposed agro-industrial project under the Master Plan has the potential to exacerbate cumulative air quality impacts of existing pollutive industries in the Basin. The potential add-on effect as to further polluting water sources when air pollutants end up in the water bodies will create potentially larger social and ecological risks. Thus, there could be possible synergisitic and added effects together across the Basin as well as over time.

B. Water Pollution

Implementing the organic fertilizer/biogas project, flood control, irrigation, hydropower, sewerage and agro-industrial projects together might create what could potentially become the single most adverse impact in the Basin -- surface and ground water pollution.

At present, the degradation of water quality across the Basin has already reached an alarming level, especially due to heavy metals, agri-chemical residuals and domestic wastes. The potential risks to human and ecological health could increase exponentially due to the potential of these projects to facilitate the remobilization and deposition of these hazardous pollutants in ecologically sensitive areas such as the Agusan Marsh and Butuan Bay.

There are likely to be cumulative and increasingly significant social and economic risks due to increased and repeated exposure to disease and pollution hazards over time. The cumulative risks are even compounded, if added to analogous effects of past and on-going similar projects in the Basin.

C. Habitat Degradation

The simultaneous undertaking of irrigation, multi-purpose, flood control, ports development, IP development and agro-industrial economic zone projects will likely increase the potential to hasten the degradation of terrestrial, aquatic and marine ecosystems.

Synergistic effects are likely to diminish already dwindling fisheries resources and bio-diversity particularly in the Agusan Marsh and upland areas. The poor and the indigenous communities living in these areas are likely to be more marginalized and suffer further from economic exclusion, depletion of common resource base, inequity and impoverishment.

D. Physical Displacement

There are likely to be more people who would be physically displaced from their present places of residence once the watershed, AMWS management and IP development projects are implemented. While these groups might belong to the minority in the Basin, the social, economic and resource use repercussions created by their displacement could have even more significant and longer-lasting implications that may negate the benefits of these projects.

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E. Resource Depletion

The cumulative depletion of fisheries, forest and other biological resources is likely to worsen over time and across the Basin as an indirect effect of flood control, irrigation, multi-purpose, ports and IP development projects carried out together.

The poor and disadvantaged groups are more likely to feel the combined adverse effects of these projects; with their lives, socio-cultural values and economic base closely linked to the availability and access to these resources.

F. Economic Losses

Economic losses would be more keenly felt across the Basin due to the combined effect of water quality management, flood control, irrigation, ports, IP development and agro-industrial zone projects as to regulatory sanctions, provision of cleaner production technologies, reduced productivity, resettlement, loss of illegal livelihood opportunities, zoning and land use restrictions, and damage to resources.

While many of these are likely to be short-term impacts, the cost of implementing these projects is likely to outweigh the economic benefits unless phased delicately.

G. Construction Impacts

More serious cumulative effects will be due to potential land acquisition, compensation and resettlement requirements of flood control and port projects that may exert even more serious social and economic repercussions.

Add to these the direct costs due to construction impacts on natural habitats and resources. Moreover, unless phased properly, these projects together have the potential to worsen what would otherwise be a singular impact, say if only one port project were to be implemented.

Mitigation Measures

The following mitigation measures are among the possible solutions to eliminate, reduce or offset the potential adverse environmental effects presently identified. However, it is recommended that more appropriate or supplemental mitigation measures or preferred alternative development options be considered as a result of carrying out a full-scale or more detailed impact assessment later.

A. Market-Based Instruments and Other Incentives

To reduce foreseen adverse impacts of instituting a Basin-wide water quality management system, the possible mitigation measures would include economic incentives in the form of tax amnesty, subsidy or other forms of market-based instruments that would encourage regulatory compliance.

Another option is for the government to put up a strategic common waste treatment facility. The latter is now being addressed, partly by this Master Plan (through proposals for organic fertilizer/biogas production projects and sewerage treatment facilities) and partly by on-going government interventions in the Basin, such as the Diwalwal mines processing and waste facility.

B. Location and Design

The adverse impacts of some of the most environmentally critical projects, especially the “hardware projects” (e.g., composting facility, flood control, irrigation, sewerage, multi-purpose and ports development projects) could be mitigated by ensuring that these are properly designed and appropriately sited, and effectively managed during construction and operation.

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C. Program Complementation

Some of the mitigation measures identified will only be effective if there is complementation or dovetailing with programs or initiatives that already exist or are being proposed within the Basin. For example, the benefits of water supply, sewerage and irrigation projects will be more substantial if increased pollution and health risks associated with these could be reduced further. This could be achieved by linking up mitigation measures with a strong program on health education and sanitation or an intensified campaign for Basin-wide adoption of organic farming, Integrated Pest Managements (IPM) or cleaner production technologies. In particular, the potential to spread schistosomiasis is less likely to be mitigated if there will be no intensive program to eradicate the same prior to irrigation development.

D. Resettlement and Compensation

Where land acquisition and involuntary resettlement are inevitable as a result of project implementation, the preparation and implementation of a resettlement and compensation plan should be conceived as an inherent part of the project and funded accordingly. This should be considered as early as the project preparation and feasibility stage, which is a basic requirement of the resettlement policies of most funding multilateral donors including the World Bank and the ADB.

E. Zoning and Land Use Regulations

A suitable land use zoning strategy and more stringent land use regulations would need to be developed to deal with physical and economic displacement as a possible consequence of implementing flood control, irrigation, watershed, AMWS management and IP development projects.

F. Construction Methods

Effective mitigation of the risks associated with increased pollution load and remobilization of pollutants through flood control and ports projects, for example, hinges on the employment of proper construction methods and the provision of properly sited and designed waste disposal and treatment facility, which should be a built-in component of these projects.

G. Institutional Mechanisms / Tenurial Instruments

In the case of forest protection and rehabilitation projects and agro-industrial zone development, mechanisms need to be explored to integrate illegal loggers and timber poachers into the economic mainstream, say through the issuance of appropriate tenurial instruments.

The devolution of forest protection and regulatory functions including waste management to local multi-stakeholder governing bodies at the community level could also be a step towards thwarting illegal activities and encouraging cleaner production mechanisms.

H. Alternative Livelihoods

Sustainable livelihood options should be explored to cushion the impacts of physical and economic dislocation as a result of implementing the Master Plan proposals.

In the case of forest protection and rehabilitation projects, a sound community–based forestry and agro-forestry program, where appropriate, could be integrated into the scheme as an alternative livelihood.

In the Marsh, there is a bounty of water hyacinth and otherwise untapped resources that may have potential uses for handicraft making and other small-scale enterprises.

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I. Alternative Development Options

A detailed follow-up assessment may prove the likelihood of impacts being beyond mitigation in sustainable and economically feasible terms.

The proposed irrigation projects are a case in point. A significant constraint to any irrigation development in the Basin is prohibitive pumping costs due to high cost of electricity. Likewise, the demand for irrigation water is not that high, as rainfall is quite high and spread across the year. The times of water demand are highly variable from year to year and difficult to predict. The financial cost for irrigation provision is likely to be high relative to its use and economic benefit. There are already significant sustainability problems that should be weighed against the whole economics of possible rice importation or switching to other crops. A very thorough assessment of these issues is required before irrigation development can even be considered.

On the other extreme, there is a possibility that residual impacts will remain and that mitigation measures may not prove effective in addressing the adverse impacts of the projects. Worse, monitoring during implementation of the projects may eventually prove that target benefits and avowed objectives of the Master Plan are not being met. In any case, there may be a need in the future to propose alternative measures or reconsider the development options, to either expand or narrow down the choices, to ensure that optimum development is achieved over the long term.

J. Mitigating Cumulative Impacts

It would be premature to recommend possible measures to address the cumulative impacts initially identified through this screening process. It will be more appropriate to carry this out later as part of the full-fledged cumulative impact assessment during the next stage of project preparation.

8.1.7 Potential Benefits

An initial attempt is also made to identify potential additive effects of the Master Plan on analogous impacts vis-à-vis other projects in the past, present or foreseeable future, if any. These are also discussed in adequate detail as follows:

A. Water Quality Management Program

(i) Strengthening of Basin-Wide Water Quality Management

The primary significant benefit from implementing a Basin-wide water quality management strengthening project is the general improvement in the quality and availability of water for multiple uses, especially for domestic water supply. The project will be particularly beneficial to majority of Basin residents such as riparian communities who now have to rely on unsafe sources of domestic water supply. The project will help avert possible contamination of underground water sources and therefore, eliminate associated health risks from disease and pollution.

There are significant potential benefits to concerned economic sectors from regulating discharge of pollution from various sources. For industries, the switch to cleaner production technologies and processes will significantly reduce occupational health risks in the handling of hazardous materials. It could eventually ensure long-term sustainability of economic activities.

The reduction of pollution from targeted industries especially mining will benefit downstream users of water for domestic supply, irrigation, aquaculture and fisheries by eliminating the potential risks to human health and livelihood due to water contamination.

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The regulation and control of agro-chemical use could significantly reduce the present potential risks to farmers of handling concentrated hazardous chemicals. The switch to chemical-free farming has significant potential over the long-term to sustain agricultural productivity and improve farm-level income by tapping high-end market for organically produced goods.

There are likely to be widespread benefits across all Basin ecosystems in reducing pollution from various sources, domestic wastes included, as to protecting freshwater and marine aquatic habitats but more particularly in the Agusan Marsh and Butuan Bay. There are also likely to be secondary beneficial impacts over the long term of enhancing ecosystem services for the maintenance of bio-diversity, food supply and fisheries production.

The main short-term disadvantages of pollution control are economic, although in the longer term these normally become positive. There may be significant economic displacement of non-compliant industries, illegal gold processing operators, agri-chemical manufacturers/distributors, aquaculture operators and illegal resource harvesters such small-scale miners, loggers and fishing communities. Compliance with water quality regulations may also mean significant increase in production costs due to the adoption of cleaner production technologies and provision of waste treatment facilities. This may have a serious knock-on effect such as reduction in employment opportunities.

The principal disadvantage of reducing agro-chemical use is the immediate reduction in soil fertility and its ability to produce higher short-term yields, both for food and industrial crops. Adopting organic farming and IPM technologies may result in lower yields in the initial years of adoption. There may be secondary negative impacts on economic livelihoods in the form of reduced farm-level incomes. Nevertheless, savings in chemical costs will mean improvement in agricultural margins and organically grown farm products generally command higher economic returns over the long term.

(ii) Organic Fertilizer and Bio-gas Production

The introduction of organic fertilizer cum biogas production in conjunction with an appropriate domestic solid waste disposal and management facility such as a sanitary landfill will provide long-term significant positive impacts in protecting surface and groundwater quality for domestic supply and other uses. This will yield lasting benefits as to human health and wider ecological conditions.

However, the project has the potential to increase the concentration of pollutants in highly localized areas and, along with it, the health risks associated with increased exposure. This can happen through improper handling of hazardous wastes and leaching of pollutants into underground aquifers. There may also be localized problems with poor air quality (odor) within the vicinity of the waste facility. Land acquisition problems may be minimal but the attendant social issues can be complex although highly site-specific.

Overall, there are likely to be significant benefits but care will be needed to ensure that people near proposed landfill sites are not significantly disadvantaged.

B. Flood Management Program: Flood Control Projects

Benefits from the drainage system in Butuan and flood control structures in Upper Agusan would be the reduction in flooding and its associated risks to lives, properties and production assets. Economic gains can be considerable especially in the urban areas of Compostela Valley and particularly Butuan City, the hub of economic activities in the Basin. There is likely to be significant improvement in health conditions by eliminating the breeding places of disease vectors and averting further contamination of domestic water supply.

Significant adverse impacts are likely to be the remobilization of domestic and industrial pollutants, which may render Butuan Bay unsuitable for bathing or its fish resources unfit for consumption. More serious but inevitable negative impacts are related to land acquisition, compensation and

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resettlement of would-be displaced families. This may prove costly considering the number of urban informal settlers now occupying the waterways and esteros of the City.

Proposed flood control structures in the Upper Agusan River will increase its flow velocity, which in turn would exacerbate riverbank erosion in downstream areas and increase potential risks to human and natural assets. The project is also likely to cause the remobilization of hazardous pollutants with the sediments, particularly mercury and other heavy metals from upstream mining areas, especially if intensive dredging works will be involved. The disposal and/or reuse of dredged sediment are also likely to be a significant problem for the same reason. The domino effect could be particularly significant in the Marsh where pollutants may further accumulate in fish and biota, and threaten the health of consumers.

There could be considerable potential benefits to the Agusan Marsh and downstream communities if the wetland is used as a flood retention area. Besides reducing flood and associated risks downstream, there are likely wider impacts as to enhancing ecological integrity, protecting biodiversity and improving productivity of the protected area, especially of fisheries resources. However, the agricultural areas immediately upstream of the wetland and within the buffer zones are likely to experience more frequent and deeper flooding, to the detriment of farmers and palm oil plantations.

C. Water Resources Management Program

(i) Water Supply Projects

Safe drinking water is a basic human need; ensuring its availability is probably the highest priority of any government and should be a cornerstone of basic social development. The provision of safe drinking water supply has very significant benefits for human health, especially in preventing the incidence of waterborne and water related diseases. If appropriately planned it has considerable equity and economic benefits.

In the Agusan River Basin, these benefits could be particularly significant where sources of domestic water supply are often naturally constrained. Butuan City, the most populated part of the Basin, for example, is located in a river delta and has to obtain its supply of quality piped in water from another municipality. Agusan Marsh is flooded most times of the year; hence, finding a suitable underground source remains a challenge.

There are normally no major direct negative impacts of appropriate water supply provision, except that cost recovery and organization of operation and maintenance can be significant issues.

In the Basin context, the design of water supply facilities should take into consideration the possible constraints and health implications posed by the presence of naturally occurring substances (manganese, iron, arsenic, and natural gas) as well as the potential leaching into groundwater of surface water contaminants from anthropogenic sources. There are also complex problems in urban environments when water supply provision is improved without a commensurate expansion of sanitation facilities. Both constraints have to be addressed early on during Master Plan implementation.

(ii) Wastewater and Sewage Collection and Treatment Projects

The main benefit from implementing a wastewater and sewage collection and treatment project is the reduction in pollution of surface water, particularly in Butuan City. The project will arrest any further pollution of groundwater aquifers used for domestic water supply. There are likely to be significant reductions in mortality and morbidity due to waterborne diseases, particularly diarrhea. There are also likely to be significant indirect positive impacts on ecosystems, especially marine resources in Butuan Bay.

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The most serious disadvantage of wastewater treatment is the generation of odor around the vicinity of the treatment facility and the risks involved with the handling of treatment chemicals and disposal of sludge.

The proposed sewerage system in Butuan City has a high potential to expose handlers and water users to hazardous wastes that may leach out into groundwater and marine water sources. This concern needs to be considered during project design preparation, along with the constraint posed by the deltaic setting of Butuan City.

In the Agusan Marsh, innovative design solutions will be necessary for both water supply and sewerage facilities. These will help preclude any possible contamination during flooding stages and, during water-stressed months, ensure the ample supply of this critical resource.

(iii) Irrigation Projects

The intended benefits of irrigation development are increased agricultural production and reduced risk to crop production in periods of less dependable rainfall. There can also be increased income and employment opportunities in agriculture and possible increase in agricultural land values.

In the Basin, there appears to be a preponderance of significant adverse impacts of irrigation as against its benefits. A notable negative consequence is the potential to increase health risks when persistent pollutants like mercury and agri-chemical residues, as well as domestic and human wastes diffuse and leach out to nearby domestic water sources. Again, the resulting impact of pollution transport could be critically threatening to ecosystems in the Agusan Marsh, biodiversity and fish resources on which IPs and most of its surrounding communities depend.

Irrigation has a high potential to spread schistosomiasis unless there is an intensive campaign to eradicate the disease vector prior to construction. Irrigation may also significantly exacerbate downstream drainage flooding and water logging during heavy rains. While it may improve land values, it is likely to cause the conversion of significant portions of the buffer zone into rice paddies, which would deprive the Marsh of its natural protection and further reduce its bio-diversity.

(iv) Multi-purpose (Hydropower-cum-Pumped Irrigation) Projects

Experience in the Basin proves that sediments and power costs are significant constraints to the provision of irrigation water supply. In the case of Ojot and related projects, significant economic benefits will accrue from savings in pumping costs through hydropower generation and from significant alleviation of downstream flooding.

The other benefit of appropriate hydropower development is the production of clean energy, which is less environmentally damaging than fossil fuel burning. Availability of affordable electricity can often spur industrial development although this depends upon a wide range of complex factors including comparative energy prices from other sources, which can vary greatly over time.

In addition to the adverse impacts common in all irrigation projects in the Basin, there can be added significant negative impacts as to the disruption to fisheries and navigation along the river due to water abstraction requirements of the hydropower facility.

Likewise, there are often conflicting water demand between base load generation and irrigation requirements. The level of risk from the heavy bed load sedimentation in the Basin could be extremely serious for hydropower and pumped irrigation development.

(v) Port Development Projects

The economic gains from the provision of inland port facilities to improve navigational transport to and from Butuan City and neighboring riparian areas can be considerable.

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However, there are significant adverse impacts associated with the long-term disturbance of freshwater and marine habitats, and the added pressure on dwindling fish stocks. Within the vicinity of facilities, irreversible damage to mangrove resources during construction could be significant. In addition, the navigation hazard posed by sediment accretion in the main river estuary could be a significant constraint to the efficient operation of these facilities.

D. Watershed Management Program

(i) Forest Protection and Rehabilitation Projects

The long-term benefit of Basin-wide forest protection and forestation activities is reduction in volume and speed of local rainfall runoff, with positive impacts as to reducing main river flooding downstream. This should also reduce upstream bed load erosion and deposition with secondary benefits on reductions in downstream erosion risks and sedimentation.

The most substantial benefits to ecosystems will derive from the restoration of bio-diversity and productivity of forests with positive cascading effects on the Marsh and marine habitats. There are also likely to be significant economic and equity benefits to the timber industry operators and suppliers, especially with the creation of wood processing economic zones in the basin.

However, illegal loggers and timber poachers stand to lose due to economic displacement. Moreover, the intensification of wood processing activities may lead to generation of significant pollutive wastes.

(ii) Riverbank Management Project

Intensive river corridor planting and protection will provide significant long-term and widespread benefits on the general health of the terrestrial ecosystem. As a result, there will be significant reduction in the risks to lives and assets by reducing land loss.

There are likely to be ecological benefits to the fish ecosystem that is in decline, partly by reducing sediment loads that are restricting sunlight penetration and algal growth and partly by reducing the risk from mercury-contamination especially in the Agusan Marsh and Butuan Bay. There will also be a reduction in sand bank accretion in the main river estuary that is a hazard to navigation and economic activity.

The principal disadvantages of riverbank erosion control are the long-term physical displacement and economic losses to riparian communities who live in and cultivate riverbanks as well as local industries that presently derive income from riparian vegetation and timber. The strict imposition of easement restrictions and the prevention of land clearance for cropped agriculture along the river corridor have implications for land use, settlement and in-migration that are very site specific.

E. AMWS Management Program

There are likely to be highly significant benefits as to enhancing the hydraulic function of the Marsh and further reducing downstream flood risks, especially to Butuan City, by implementing an appropriate management program for the Agusan Marshland. There are also likely to be reductions in erosion, sedimentation and accretion downstream of the wetland area. There will be widespread benefits to the natural environment, especially fish and vegetation communities.

Proper management of the AMWS will protect its ecological functions and values, and would be a notably significant step in achieving the commitments required of the Philippine Government under the Ramsar Convention and the ASEAN Peatland Management Initiative to protect wetland habitats and its biodiversity. It will also benefit the significant number of IP and non-IP communities whose survival depends on the natural resources of the Marsh.

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The main disadvantages are likely to be borne by three (3) groups who may be physically or economically displaced.

The first group includes people from strict protection zones, riverbanks and other areas of the Marsh where human activity will need to be restricted, including river navigation during breeding seasons. The second group includes ‘kaingin’ farmers, river bank cultivators, illegal fishers, timber poachers, wood gatherers, wildlife hunters and traders who depend on these resources and will lose their economic upkeep. The third group includes farmers who presently rely on irrigation development immediately upstream of and in the buffer zone of the Marsh whose unsound practices may need to be regulated.

F. IP Development Program

The issuance of CADT will bestow upon the IPs tenurial security in their ancestral lands. This will yield the most benefit in empowering them to improve their production systems, strengthen their cultural heritage, integrate into mainstream society, participate in decision-making and obtain access to basic social services.

On the other hand, this may adversely cause the physical, economic and political disenfranchisement of illegitimate IP leaders, non-tenured migrants and holders of conflicting tenurial instruments in ancestral domains. The exercise of prior rights to resources may lead to unsustainable extraction of resources and cause significant loss of biodiversity. In particular, there may be a need to harmonize the management prerogatives between AMWS plan and the ADSDPP in two (2) potential CADT areas within the Marsh.

G. RBO Formation and Development Program

(i) RBO Development

The benefits of a well-managed institutional strengthening program for water resources management could be considerable but often difficult to quantify and impossible to value.

The establishment of the ARBO will yield the most benefit as to coherent implementation of all the components of the proposed strategy; other than improving environmental governance by providing a venue for integrated, inter-sectoral and multi-institutional approach to the shared management of Basin resources.

There could also be wider improvements in government administration systems outside the direct concerns of the water sector. There could, most of all, be improved regulatory and monitoring systems with the overall benefit of improving ecological conditions, especially surface and groundwater quality and the Agusan wetland. The overall impact on protecting critical resource base and ensuring sustainable use of non-critical ones cannot be overemphasized.

The major disadvantage of institutional strengthening programs is that these require quite long-term commitments of adequate resources, including skilled personnel, modern equipment and technology. Sustaining the financial requirements of such programs over a long term (5-10 years or indefinitely) can be difficult, especially as the economic benefits are likely to be intangible and not immediately realized.

(ii) Basin-Wide Data Collection and Management

A highly significant improvement in Basin-wide institutional capability to make informed management decisions is expected from the establishment of a Data-Banking and GIS-Based Support System. This will be especially useful in tracking the status of the resource base and the progress in achieving environmental management objectives. Moreover, the economic gains of generating quality data as a management tool can be translated in the avoidance of costly decisions where Basin resources are

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concerned. Well-planned interventions will save on funds in the long run by maximizing benefits and minimizing costs.

A good data collection and modeling program normally requires a minimum of five (5) years to establish and requires skillfully trained and highly specialized staff. Finding the financial resources to fund such operations can be difficult.

(iii) Agro-Industrial Economic Zones

The establishment of agri-industrial zones will strengthen the economic position of the Basin in relation to the rest of Mindanao by harnessing the value adding potentials of its major agricultural, mineral and forest products. This is expected to result to significant job generation, increase in livelihood and income-earning opportunities and more equitable sharing of economic benefits from resource use.

The potential adverse impacts of this proposed initiative are the generation of more land, air and water pollutants and the resulting increase in pollution and occupational hazard risks; physical displacement of people due to zoning; economic displacement of illegal resource harvesters and users; increased in-migration; uncontrolled land conversion; and resulting land speculation.

8.1.8 Institutional Requirements and Environmental Monitoring

Nine (9) project categories are covered by the Philippine EIS system; namely, organic fertilizer and biogas production, flood control, water supply, sewerage systems, irrigation, multi-purpose hydropower-cum-irrigation, port facilities, forestry and riverbank management. These projects and will require either a full EIA or IEE study. The Philippine EIA system has recently been strengthened to rationalize and streamline its regulatory processes and make it more effective as a tool for environmental planning and management.

The provision of drainage facilities in Butuan City and other municipalities is the responsibility of respective LGUs. Flood control projects are being undertaken by the respective regional or project management offices of the DPWH. Water supply projects and sewerage systems are being implemented by respective water districts or LGUs. NIA is responsible for implementing irrigation projects while the NPC takes charge of hydropower projects.

These respective implementing agencies are expected to come up with environmental management and monitoring plans to manage the impacts of concerned projects. The DENR-EMB issues the Environmental Compliance Certificate (ECC) and regulates environmental compliance. The implementing agencies either institute self-monitoring or organize Multipartite Monitoring Teams (MMT) to monitor compliance with ECC conditions and the Environmental Management Plan (EMP) of each project.

The rest of the project categories, namely Basin-wide water quality management, AMWS management, IP development, ARBO establishment, basin-wide data management and establishment of agro-industrial ecozones are not covered by the EIS system and fall under Category D. These projects will require only a Certificate of Non-Coverage (CNC). The management and monitoring of these projects fall within the mandate of concerned government line agencies or LGUs.

The two (2) regional DENR-EMB offices in the Basin are currently responsible for water quality data collection and management. Data collection and regulatory work are done independently of each other. There is a need for a single institution to implement a unified water quality management system across the Basin. WQMA governing boards are expected to perform this function under the Clean Water Act.

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The proposed ARBO would be the better repository of all water quality monitoring data across the Basin and coordinate the tasks of the governing boards. Both would need capability enhancement to implement Basin-wide water quality management. Technical assistance is proposed to help design and implement a Basin-wide water quality management system. A laboratory consortium is meant to strengthen capability in water quality testing and analysis.

Management of the AMWS is the responsibility of a multi-stakeholder body called the PAMB and the PASu. The PAMB is chaired by the DENR-RED with membership distributed among representatives of the concerned LGUs, PENRO, Community ENRO, civil society groups and POs. The proposed AMWS Bill proposes to reconstitute the PAMB to enhance the participation of local chief executives and strengthen the capability of PASu. The NCIP is the agency responsible over IP development interventions in consultation with tribal leaders of indigenous communities. Both the management capability of NCIP and the IP leaders, and the system of environmental governance among communities require strengthening.

The ARBO is being proposed as the logical institutional mechanism to coordinate the management and monitoring of proposed programs under the ARB Master Plan and thereby strengthen Basin-wide environmental governance. The ARBO would be responsible for running the Basin-wide data banking and GIS-based decision support system.

8.2 CONCLUSION AND RECOMMENDATION

�� The Master Plan contains a whole range of possible projects. In any case, potential investors have their own sets of minimum criteria and classification. At the same time, the Philippine government has its own legal requirements for environmental assessment according the Philippine Environmental Impact Statement (EIS) system. As part of the post-Master Plan follow-up project preparation study, it will be necessary to systematically review all future developments in the Basin that have implications for water resources management therein. There are likely to be complex interrelated cumulative impacts and constraints, both beneficial and adverse that would need to be investigated very carefully. The phasing of development programs with each other would also require very careful consideration in the detailed cumulative assessment in the next stage of project preparation.

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ARB Master Plan

Documents

Transcript of ARB Master Plan