5th Country Environmental Analysis PHI

COUNTRY
ENVIRONMENT
ANALYSIS
2008
PHILIPPINES
COUNTRY
ENVIRONMENT
ANALYSIS
2008
PHILIPPINES
© 2009 Asian Development Bank
All rights reserved. Published 2009.

Printed in the Philippines.
Publication Stock No. RPT090189

ISBN 978-971-561-807-6
Cataloging-in-Publication Data
Asian Development Bank.

Country Environmental Analysis 2008—Philippines.
Mandaluyong City, Phil.: Asian Development Bank, 2008.
1. Environmental analysis. 2. Philippines. I. Asian Development Bank.
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Contents
List of Figures vi
List of Tables vi
List of Text Boxes vii
Abbreviations viii
Acknowledgments xii
Executive Summary xiii
Chapter 1: Introduction 1
Chapter 2: Background 3
Country Overview 3
Role of the environment and natural resources in the economy 8
Socioeconomic overview 8
Medium-Term Philippine Development Plan 10
Millennium Development Goals 11
Main Environmental Concerns 15
Forest resources 15
Agriculture resources 18
Fishery resources 18
Biodiversity resources 22
Water resources 28
Air quality 46
Land resources 52
Mining and mineral resources 53
Urban environment 54
Environmental spatial planning 56
Hazardous and solid wastes 57
Climate change 61
Renewable energy 62
Environmental emergencies 64
Regional environmental concerns 68
Regulatory and Institutional Framework 69
Policy and regulatory framework 69
Institutional framework 77
Donor agencies 93
iv Country Environmental Analysis 2008: Philippines
Chapter 3: Challenges and Opportunities 99

DENR Institutional Rebuilding 99
Insufficient government budget for ENR 99
Need for DENR restructuring to fulfill expanding mandate 101
Major capacity building requirement for better ENR regulation 104
Need for integrated and improved information
and communication management system 106
Resolution of mandate overlaps and gaps 106
Passage of other important legislation 108
Improvement of the Environmental Impact Statement System 108
Incomplete Devolution of ENR Functions to LGUs 109
From Sector-Based to Integrated, Ecosystem-Based
Planning and Management 111
Need for Increased Efforts in Forest Management and Biodiversity
Conservation 112
Climate Change Mainstreaming in the Government Program 113
Need for Increased Financing for Environmental Projects 114
Need to Improve and Widen the Use of Market-Based Instruments 115
ENR Concerns and Poverty Reduction 117
Chapter 4: Strategic Priorities 121
Extensive Institutional Rebuilding and Strengthening
of DENR 121
Better Management of ENR Data and Information 122
Restructuring and Refocusing of the Philippine Environmental
Impact Statement System 123
Genuine Devolution and Decentralization of ENR Functions 123
Continued Application of Integrated Approach to Planning
and Management 123
Adoption and Application of Spatial Development Plans 124
Increased Financing for Environmental Infrastructure Programs
and Projects 124
Use of Market-Based Instruments to Promote ENR Programs
and Projects 125
Integration of ENR Principles into Poverty Reduction Programs 125
Chapter 5: Implications for the Country Partnership Strategy 127
ADB’s Long‑Term Strategic Framework 127
Environmental Components of Key ADB Strategies
for the Philippines 128
Philippine country partnership strategy 128
Government-ADB poverty partnership agreement 128
Philippine urban infrastructure road map 129
ADB’s environment policy 129
Contents
Environmental Considerations in the Philippine Lending Portfolio 129

Current portfolio 130
Portfolio in CPS 2005–2007, COBP 2007–2008, and
COBP 2009–2010 130
Strategic issues 131
Possible ADB Interventions 132
Mainstreaming of environment considerations in government
policies and investment programs 132
Environment as a core area of operation 133
Strategic Environmental Evaluation of Proposed Pipeline Projects
in COBP 2009–2010 and CPS 2011–2015 136
Summary of Strategic Environmental Evaluation of Proposed
Pipeline Projects in COBP 2009–2010 and CPS 2011–2015 136
Appendixes 159
1 Water Quantity Scorecard for Major Rivers and Basins
and Hot Spots Rating for Water Quantity 160
2 Major Environment and Natural Resources
Laws and Regulations 162
3 Official Development Assistance to the Environment
and Natural Resources Sector, as of November 2007 171
4 Senate and House Bills on Environment
and Natural Resources Filed at the 14th Congress
of the Philippines 182
5 Status of Public Sector Lending, Private Sector Operations,
and Nonlending Operations, as of 15 August 2007
(ADB Country Strategy and Program 2005–2007) 198
6 Summary of Results of the Consultative Meeting on the 2008
Philippine Country Environmental Analysis Report 202
7 Participants at the Consultative Meeting on the 2008 Philippine
Country Environmental Analysis Report 215
References 223
vi Country Environmental Analysis 2008: Philippines
List of Figures
1 Land Classification, 2005 16
2 Forest Cover, 2003 17
3 Protected Areas, 2004 25
4 Annual Consumption of ODS and Alternatives, 2001–2006 47
5 CDM Projects with Letters of Approval, February 2008 63
6 CFC Consumption, 1995–2005 75
List of Tables
1 Country Economic Indicators 4
2 Country Poverty and Social Indicators 6
3 Value of Fish Production, by Subsector, 2003–2005 9
4 Philippines Millennium Development Goal Indicators 13
5 Country Environment Indicators 19
6 Level of Endemism and Status of Vertebrate
Fauna in the Philippines 23
7 Number of Rare, Threatened, and Endangered
Wildlife Species, 1996–2006 24
8 Classification of Water Bodies in the Philippines 29
9 Water Demand in Major Cities of the Philippines 30
10 Change in Dissolved Oxygen in Priority Rivers, 2003–2005 31
11 Groundwater Quality Scorecard 33
12 Water Quality Scorecard for Surface Water (Rivers, Lakes, Bays) 36
13 Sewerage Services in Metro Manila, 2001–2005 43
14 Sewerage and Sanitation Systems outside Metro Manila 44
15 Philippine, US-EPA, and WHO Ambient Air Quality Guidelines
for Common Pollutants 46
16 Annual Mean Roadside TSP Levels in Major Cities
and Urban Centers in the Philippines, 2003–2004 48
17 Total Mass Emissions in Metro Manila, 2005 51
18 Urbanization Forecast for the Philippines 56
19 Chemical Waste Generation and Trade 58
20 Strategic Environmental Evaluation of Proposed Pipeline
Projects in COBP 2009–2010 and CPS 2011–2015 137
Contents vii
List of Text Boxes

1 Strategies for Potable Water in the Medium-Term
Philippine Development Plan 2004–2010 45
2 Strategies for the Mining Sector in the Medium-Term
3 Strategies for Hazardous Waste in the Medium-Term
4 Strategies for Environmental Emergencies in the Medium-Term
5 Policy Agenda of the Minerals Action Plan 66
6 Elements of Philippine Agenda 21 69
7 International and Regional Environmental Agreements 73
8 Bureaus, Attached Agencies, and Offices of the Department of
Environment and Natural Resources 78
9 FY2008 Programs and Projects of the Department of
Environment and Natural Resources 86
10 Nongovernment Organizations in Environmental Protection 91
11 Guiding Principles for the Rationalization Plan
of the Department of Environment and Natural Resources 103
Abbreviations
ADB – Asian Development Bank
AFMA – Agriculture and Fisheries Modernization Act
(1997) (Republic Act 8435)
APIS – Annual Poverty Indicators Survey
AQMF – Air Quality Management Fund
ARMM – Autonomous Region in Muslim Mindanao
ASEAN – Association of Southeast Asian Nations
BIMP-EAGA – Brunei Darussalam–Indonesia–Malaysia–
Philippines East ASEAN Growth Area
BOD – biochemical oxygen demand
CAA – Clean Air Act (1999) (Republic Act 8749)
CAC – command and control
CARP – Comprehensive Agrarian Reform Program
CDM – Clean Development Mechanism
CENRO – community environment and natural resources
officer
CITES – Convention on International Trade of
Endangered Species of Wild Fauna and Flora
CLUP – comprehensive land‑use plan
CO2 – carbon dioxide
COBP – country operations business plan
CPS – country partnership strategy
CTI – Coral Triangle Initiative
CWA – Clean Water Act (2004) (Republic Act 9275)
DA – Department of Agriculture
DAO – Department of Environment and Natural
Resources administrative order
DAR – Department of Agrarian Reform
DBM – Department of Budget and Management
DBP – Development Bank of the Philippines
DENR – Department of Environment and Natural
Resources
DILG – Department of Interior and Local Government
DMC – developing member country
DOE – Department of Energy
DPWH – Department of Public Works and Highways
Abbreviations ix
ECC – environmental compliance certificate

EGF – environmental guarantee fund
EIA – environmental impact assessment
EIS – environmental impact statement
EMB – Environmental Management Bureau
ENR – environment and natural resources
EO – executive order
ESWMA – Ecological Solid Waste Management Act (2000)
(Republic Act 9003)
EU – European Union
EUFS – environmental user fee system
FAO – Food and Agriculture Organization
FMB – Forest Management Bureau
GDP – gross domestic product
GEF – Global Environment Facility
GHG – greenhouse gas
GVA – gross value added
ha – hectare
ICRMP – Integrated Coastal Resources Management
Project
ICT – information and communication technology
IEC – information, education, and communication
IPAF – integrated protected area fund
ISO – International Standards Organization
IUCN – International Union for Conservation of Nature
IWQMF – integrated water quality management framework
IWRM – integrated water resources management
IWRMF – integrated water resources management
framework
JBIC – Japan Bank for International Cooperation
JICA – Japan International Cooperation Agency
km2 – square kilometer
LAMP II – Land Administration and Management Project,
Phase II
LBP – Land Bank of the Philippines
LDBR – Laguna de Bay Region
LGC – Local Government Code of the Philippines
(1991) (Republic Act 7160)
LGU – local government unit
LLDA – Laguna Lake Development Authority
LUCF – land-use change and forestry
M&E – monitoring and evaluation
Country Environmental Analysis 2008: Philippines
MBI – market-based instrument

MDFO – Municipal Development Fund Office
MDG – Millennium Development Goal
MFO – major final output
MGB – Mines and Geosciences Bureau
MLD – million liters per day
MOA – memorandum of agreement
MT – metric ton
MTPDP – Medium-Term Philippine Development Plan
MTPIP – Medium-Term Public Investment Program
MTSP – Manila Third Sewerage Project
MW – megawatt
MWSS – Metropolitan Waterworks and Sewerage System
NAAQ – national ambient air quality
NAMRIA – National Mapping and Resource Information
Authority
NBSAP – National Biodiversity Strategy and Action Plan
NCIP – National Commission on Indigenous Peoples
NCR – National Capital Region
NEDA – National Economic and Development Authority
NGO – nongovernment organization
NIPAS – National Integrated Protected Areas System
NRDC – National Resources Development Corporation
NSCB – National Statistical Coordination Board
NSSMP – National Sewerage and Septage Management
Program
NSWMC – National Solid Waste Management Commission
NSWMF – National Solid Waste Management Fund
NWQMF – National Water Quality Management Fund
NWRB – National Water Resources Board
ODA – official development assistance
ODS – ozone‑depleting substances
PAMB – Protected Area Management Board
PAWB – Protected Areas and Wildlife Bureau
PBE – Philippine Business for the Environment
PCB – polychlorinated biphenyl
PD – presidential decree
PEENRA – Philippine Economic‑Environmental and
Natural Resources Accounting
PEISS – Philippine Environmental Impact Statement
System
Abbreviations xi
PEMSEA – Partnerships in Environmental Management for

the Seas of East Asia
PENRO – provincial environment and natural resources
officer
PM10 – particulate matter
RA – republic act
RBCO – River Basin Control Office
SBMA – Subic Bay Metropolitan Authority
SFM – sustainable forest management
SWAPP – Solid Waste Management Association of the
Philippines
TA – technical assistance
tCO2e – tonnes of carbon dioxide equivalent
TSP – total suspended particulates
UNCED – United Nations Conference on Environment and
Development
UNDP – United Nations Development Programme
UNEP – United Nations Environment Programme
UNFCCC – United Nations Framework Convention on
Climate Change
US – United States
USAID – United States Agency for International
Development
WQMA – water quality management area
WWF – World Wide Fund for Nature
Acknowledgments
T
his report was prepared by M. Nasimul Islam, environmental
engineer, Agriculture, Environment and Natural Resource Division,
Southeast Asia Department (SERD), and Marissa V. David, staff
consultant, with the guidance of Urooj S. Malik, division director. It was
edited by Mary Ann Asico, consultant.
Executive Summary
T
his update of the Asian Development Bank’s (ADB’s) country envi-
ronmental analysis for the Philippines identifies priority constraints,
needs, and opportunities in the country’s environmental and natural
resources (ENR) sectors, including those that have a direct bearing on pov-
erty partnership agreements, and discusses strategic areas of intervention that
will reduce the constraints and heighten the opportunities.
Role of the Environment and Natural Resources in the

Economy
The ENR sectors (agriculture, marine resources, and forestry) depend pri-
marily on the country’s land, water, and soil resources and contribute sub-
stantially to national gross domestic product (GDP). In 2006, these sectors
generated 18.8% of GDP and employed about 36.6% of the total labor force
of 32.4 million.
Sustainable growth in these sectors depends on a healthy environment and
natural resources, including clean water supply for industry and urban uses,
and good air quality for the rapidly growing number of urban residents.
Medium-Term Philippine Development Plan
The socioeconomic development plan for the Philippines is laid out in the
Medium-Term Philippine Development Plan (MTPDP) 2004–2010. The
broad aims are job creation through agribusiness development, sustainable
management of the environment, natural resources, and biodiversity, and
decongestion of Metro Manila.
Millennium Development Goals
The Millennium Development Goals (MDGs) provide the framework for

meeting the social commitments under the MTPDP and for identifying pro-
grams and projects for the Medium-Term Public Investment Program.
xiv Country Environmental Analysis 2008: Philippines
Forest cover has increased, as have protected areas in the National

Integrated Protected Areas System (NIPAS) and access to safe drinking
water. But while there has been continuing progress in meeting environmen-
tal sustainability goals, much remains to be done. The lives of slum dwellers
also have to undergo significant improvement. The number of informal set-
tler families is rising and is expected to rise further with rural–urban migra-
tion, population growth, and new household formation, given the inadequacy
of formal housing programs. Security of land tenure and urban renewal are
major concerns of the Government.
Main Environmental Concerns
Environmental issues with cumulative impact include loss of watershed

integrity, inappropriate and unsustainable land use and agricultural practices
in upland areas, degradation of forestland, and extensive road building; rapid
population increase and rapid industrialization, causing increased conges-
tion and pollution particularly in urban areas; environmental degradation of
near‑shore coastal areas due to sedimentation from upstream sources; and
overexploitation of fisheries and permanent loss of coastal ecosystems from
changes in land use due to urbanization and industrialization, including
aquaculture.
Various ENR assessments of the Philippines place responsibility for the
loss of biodiversity (terrestrial, coastal and marine, and freshwater) on these
factors and on ineffective management, lack of awareness of biodiversity, and
poor enforcement of regulations. Philippine biodiversity is globally significant.
More than 65% of the described species are found here and new endemic spe-
cies are discovered yearly. In addition, the Philippines has been identified as
a biodiversity “hotspot,” that is, an area where the Earth’s biological wealth is
most distinctive and rich but where losses could also be severe if conservation
efforts do not succeed.
The reforestation program of the Government cannot keep up with the
rate of destruction of forest resources, with profound consequences for faunal
biodiversity, aside from the downstream flooding and pollution caused.
Almost all Philippine coral reefs are at risk from human activities. More
than 70% of mangrove forests have been converted to aquaculture, logged, or
reclaimed for other uses. Half of the sea-grass beds have been lost or severely
degraded, and the rate of degradation is increasing.
Rapid urbanization—the urban population grows by more than 2 million
yearly, mostly in low‑density peri-urban areas outside the capital region—is
constricting the provision of adequate infrastructure and services to deal
with water supply and water quality problems. Water quality is worsening.
Executive Summary xv
Domestic pollution, from the discharge of inadequately treated domestic

sewage into surface waters, is the leading cause. Water availability per capita
is the second lowest among all Southeast Asian countries.
Sewerage and sanitation programs and investments are also woefully
inadequate. Investments in urban sanitation are only 1.5% of investments in
urban water supply.
Some improvements have been made in air quality. Lead concentration
has dropped since the complete phaseout of lead in gasoline throughout the
country. The closure of several coal- and oil-fired thermal generating stations
in the Metro Manila air-shed has greatly reduced sulfur dioxide concentra-
tions. Ozone-depleting substances are consumed much less. But air quality
in urban areas is poor or worsening for pollutants such as nitrogen dioxide
(NO2), sulfur dioxide (SO2), total suspended particulates (TSP), and particu-
late matter (PM10). Overall, the Philippines lags behind other Asian countries
in air‑quality improvements.
The country’s contribution to global warming is a key concern. The
combined greenhouse-gas (GHG) emissions from the energy, industry, agri-
culture, and wastes sectors, and from the net uptake (sink) of GHGs from
land-use change and forestry, were conservatively projected to increase by
almost 94% between 1994 and 2008, to 195,091 kilotons of carbon dioxide
(CO2) equivalent.
Regulatory and Institutional Framework
The Government’s commitment to environmental protection and natural

resource management is expressed through a comprehensive legal and regu-
latory regime for the sector. ENR management is mandated by the Philippine
Environmental Policy and the Philippine Environment Code of 1977, the
Philippine Strategy for Sustainable Development of 1989, and the National
Action Plan for Sustainable Development of 1996. The Local Government
Code of 1991 also has provisions with major impact on devolution and the
implementation of ENR laws and regulations. Major ENR laws signed in the
past 7 years include the Ecological Solid Waste Management Act of 2000,
the Wildlife Resources Conservation and Protection Act of 2001, the Public
Land Act of 2002, the Philippine Clean Water Act of 2004, and the Bio-fuels
Act of 2006.
The priorities of the Department of Environment and Natural Resources
(DENR) relate to major government planning frameworks including the
MTPDP and the MDGs. Other government departments and agencies that
support the DENR in the implementation of ENR-related laws, regulations,
policies, plans, and programs are the Departments of Agriculture, Health,
xvi Country Environmental Analysis 2008: Philippines
Agrarian Reform, Energy, Interior and Local Government, Science and

Technology, Tourism, and Public Works and Highways, and the National
Economic and Development Authority (NEDA).
Recognizing the importance of international cooperation in achieving
its national development goals (MTPDP), the Philippines has signed inter-
national and regional environmental agreements on biodiversity, hazardous
chemicals and wastes, ozone-depleting substances, persistent organic pollut-
ants, and climate change.
Challenges, Opportunities, and Strategic Priorities
The main factors that affect the implementation of the various ENR laws and
regulations by the DENR, and the corresponding strategic priorities that are
consistent with ADB’s and the Government’s medium- to long-term strate-
gic framework, are as follows.
DENR Restructuring and Capacity Building to Fulfill a Broader Mandate.

Many ENR laws have been passed in recent years, but the DENR structure
has yet to adapt to the expanded mandate. Overlaps and gaps in mandates
also still have to be resolved. While DENR has opted to decentralize, devolve
its functions (in phases), and reduce its direct role in ENR program and proj-
ect implementation, its rationalization plan has not yet been approved and
implemented. Devolution, despite having begun more than 17 years ago, is
incomplete. Extensive institutional assessment and rebuilding are priorities.
Skilled personnel, equipment, and other facilities should be provided to the
local government units to enable them to perform the devolved functions.
Promulgation of Other Important Legislation. Some very important ENR

laws need to be promulgated, strengthened, or updated. The Public Lands
Act, for one, is 70 years old and has not been revised or amended. Major
pending bills that should be pursued include the Philippine Environmental
Protection Authority, Bio-organic Farming Promotion, Philippine Climate
Change, Renewable Energy, Land Administration Reform, Water Resources
Management, Sustainable Forest Management, and Free Patent acts.
Improvement of ENR Data and Information Management. With external

support, DENR should integrate and upgrade its information system to be
able to collect, analyze, coordinate, and manage data, make sound decisions
based on the data, and deliver its mandates more efficiently and effectively.
Executive Summary xvii
Restructuring and Refocusing of the Environmental Assessment System.

The current environmental impact statement system is in need of restructur-
ing and improvement, for use in planning. Various studies have recommended
decentralizing environmental impact assessment, improving the quality of
the assessment and simplifying the requirements, concentrating on environ-
mentally critical projects and areas, moving toward sector and regional assess-
ment, improving monitoring and enforcement, building institutional capacity
(national and local), and subjecting proposed new laws and regulations in this
regard to cost-benefit and impact study.
Institutional Mechanisms for Integrated Ecosystem-Based Planning and

Management. To achieve environmentally sustainable development, the
Philippines needs to shift from sector‑based to integrated ecosystem-based
planning and management and develop an integrated sustainable manage-
ment plan for priority ecosystems. The DENR could identify geographic
priorities for investments and interventions in such areas as forest and biodi-
versity conservation, protection of water resources in river basins, and protec-
tion of environmental quality in air-sheds, as well as priority activities that
will help in the attainment of key MDG and MTPDP targets in an inte-
grated manner.
Forest Management and Biodiversity Conservation. Increases in forest

cover are strongly correlated with greater public awareness of the value of
forests. Comprehensive and specific strategies and action plans to be imple-
mented by the DENR are outlined in the National Biodiversity Strategy and
Action Plan of 2002 (NBSAP). DENR is expected to need substantial assis-
tance (technical and financial) to meet the NBSAP objectives and targets.
Adoption and Application of Spatial Development Plans. To improve the

use, allocation, and management of the country’s land and physical resources,
spatial development plans linked to the national and regional physical frame-
work plan will have to be prepared and implemented in all the local govern-
ment units to guide ENR development decisions.
Integration of Climate Change into Government Programs. The coun-

try ranks eighth globally in the number of Clean Development Mechanism
(CDM) projects registered, yet efforts to adapt to and mitigate climate
change have yet to become part of major government policies, programs, and
projects.
xviii Country Environmental Analysis 2008: Philippines
ENR Funding. A number of ENR laws—among them, the Clean Air Act of
1999, the Ecological Solid Waste Management Act of 2000, and the Clean
Water Act of 2004—have been approved in the past 10 years, but appropriate
funds for their implementation have not yet been secured. Until its regular
budget is substantially increased, the DENR should lay out a workable
structure, with complete guidelines and procedures, for making the various
earmarked environmental funds of the Government (such as the Air Quality
Management, National Solid Waste Management, National Water Quality
Management, Integrated Protected Area, and Wildlife Management funds)
operational. The Government should also promote private sector interest in
ENR projects, besides pursuing other sustainable sources of funding.
Use of Market-Based Instruments to Promote ENR Programs and

Projects. The formulation and implementation of policies for MBIs has
been hindered by regulators’ perception of a concomitant loss of control or
greater unpredictability of environmental outcomes, legislative restrictions,
insufficient evidence of effectiveness of past MBI use, and lack of information
for MBI portfolio management. But there have been successes, especially in
waste minimization, deposit refund and environmental guarantee fund estab-
lishment, environmental management systems, and the application of envi-
ronmental user fees. Future project interventions should maximize the use of
MBIs for environmental sustainability and cost‑effective economic growth.
Integration of ENR Issues into Poverty Reduction Programs.

Environmental problems hit the poor hardest and are a major cause of pov-
erty and vulnerability. Better environmental management can enhance the
livelihood opportunities and income security of people living in poverty. A
better understanding of environment-poverty links can lead to informed and
effective local, national, and global policies for fighting both poverty and
environmental problems.
Possible ADB Interventions

ADB interventions in the Philippines will intersect with its Strategy 2020
and address the ENR priorities expressed in national development plans and
programs.
Incorporating Environmental Considerations into Development.

Together, ADB and the Government should draft policies and procedures
that will fully integrate environmental considerations into the Government’s
development policies, programs, and projects. The Government should
receive continued support in harmonizing its ENR and climate change laws
Executive Summary xix
and policies, resolving institutional conflicts and gaps, strengthening institu-

tional capacity, and removing constraints on ENR planning, implementation,
and enforcement.
Environment as a Core Area of Operation. ADB intends to promote and

invest in sustainable environmental management on a larger scale, while capi-
talizing on its operational strengths, such as infrastructure development and
finance, through programs and projects in these areas:
• Infrastructure and climate change. To increase the supply of clean

water, protect biological diversity, and help sequester atmospheric
carbon dioxide to offset GHG emissions, ADB will nudge the
Philippine economy onto low‑carbon growth paths, “climate‑proof ”
projects, and support the sustainable management of forest and
natural resources. Assistance will be provided to help prevent the
loss of forest cover, institute integrated river basin management, and
develop irrigation, agriculture, agribusiness, and rural infrastructure,
with emphasis on security of land tenure and the progress of upland
and poor communities. Projects must not adversely affect forest
capital and biodiversity resources. They will incorporate economic
instruments (payments for environmental services, CDM, etc.) that
take into account biological diversity and climate change concerns
(through global funds like the Global Environment Facility and
regional initiatives like the Coral Triangle Initiative) and environ-
ment-poverty links. ADB will assist the Government in implement-
ing its water resource and water quality management framework.
Investments in water supply and sanitation infrastructure will fully
support the Clean Water Act and the MDGs.
• Livable cities. ADB will help reduce the country’s carbon footprint
and assist municipalities in reducing air and water pollution, intro-
ducing cleaner modes of transport, improving solid waste manage-
ment, and reducing urban waste. Lessons learned from investments
in major cities will be applied in secondary cities. These interven-
tions will support ADB’s Strategy 2020 and help create a healthier
environment for the people (an MTPDP objective) and ensure
environmental sustainability (an MDG).
• Complementary actions. With ADB’s help, environmental con-
cerns will be built into Philippine policies and investment programs,
and national and local ENR institutions will acquire stronger regu-
latory and enforcement capacity. The effective implementation of
environmental safeguards will continue to be emphasized, and sup-
port for regional cooperation in ENR management will be sustained.
xx Country Environmental Analysis 2008: Philippines
Interventions will incorporate economic instruments and policies

(e.g., waste minimization, pollution prevention, environmental
management, MBIs, public disclosure systems) and environ-
ment‑poverty links into development. Spatial planning, environ-
mental and natural resource data and information management,
and environmental capacity building will all receive ADB technical
assistance and project support.
With a country partnership strategy for the Philippines (2011–2015)

and an updated MTPDP on hand in 2011, ADB and the Government will
continue to work together to develop other projects and technical assistance
that respond to the environmental concerns, challenges, opportunities, and
priorities identified in this analysis.
Chapter 1
Introduction
T
his document updates the country environmental analysis prepared
by the Asian Development Bank (ADB) for the Philippines in 2004.
An update is called for in view of ADB’s intention to return to a
5-year planning cycle for its country partnership strategy (CPS). The country
strategy and program (CSP) 2005–2007 covered only 3 years because of the
economic uncertainties foreseen in 2005 when it was prepared (ADB 2007d).
A country operations business plan (COBP) for 2007–2008, which extended
the CSP by 1 year, was agreed on between ADB and the Government.
COBP 2009–2010 will ease the transition to the CPS 2011–2015. The CPS
will be in line with the next Medium‑Term Philippine Development Plan
(MTPDP).
This 2008 report provides the information needed for informed deci-
sions on environmental constraints, needs, and opportunities, including those
that impinge on poverty partnership agreements. The focus is on adding
value to development initiatives by reducing the constraints and exploring
the opportunities. Current environment and natural resources (ENR) issues
in the Philippines are discussed, as are the institutional, policy, and regulatory
framework for the ENR sectors; the challenges and opportunities for improv-
ing the country’s environmental situation that the framework provides; the
strategic priorities; and possible ADB assistance in implementing these
strategic priorities.
Chapter 2
Background
Country Overview
T
he Philippines has over 7,000 islands, about 300,000 square kilo-
meters (km2) in total area. With 2.2 million km2 of contiguous ter-
ritorial waters and exclusive economic zone (almost 90% of the total
area), the Philippines is a leading archipelagic country in Southeast Asia.
Geography, terrain, and climate determine human settlement patterns,
socioeconomic opportunities and constraints, and their intricate relationship
with ENR conditions. The climate is tropical marine and monsoonal, with
a dry season from January to June and a wet season from July to December.
Annual rainfall varies widely across the country in amount (1,000–4,000 mil-
limeters) and distribution (from pronounced dry and wet seasons to more or
less even rainfall).
There are 421 river basins, 41–25,469 km2 in area. The rivers in these
basins are short and steep, running very fast from the source to narrow
coastal plains. Heavy rainfall in the wet season causes many of these rivers
to overflow.
The Philippines is vulnerable to natural disasters, primarily volcanic
eruptions and typhoons. Twenty‑two volcanoes are active, and there have
been several destructive eruptions in recent times. In addition, about 20–30
typhoons hit the country yearly, between June and November. These natural
disasters damage crops and properties; they also take lives.
The Philippines is the world’s 12th‑most‑populous country (World Bank
2007c), with 88.6 million people (NSO 2008), and the 39th‑largest economy
(see Table 1), with a gross domestic product (GDP) of over $145 billion
(2007) (World Bank 2007b). By 2010, the population is expected to be
94.0 million, and by 2040, 141.6 million. The population grew by an average
of 2.3% from 1990 to 2000 (see Table 2), the fastest rate in East Asia, before
decelerating to 2.0% in 2007 and a projected 0.92% by 2040 (NSCB web-
site). Population increase has severely strained access to basic social services,
energy, drinking water, sanitation, and education, and considerably affected
economic growth.
Table 1: Country Economic Indicators
Item 1998 1999 2000 2001 2002 2007
Income and Growth
GDP per capita ($, current) 867.0 991.9 954.8 916.7 969.3 1,626.0
GDP growth (%, in constant prices) (0.6) 3.4 4.4 3.0 4.4 7.2
Agriculture (6.4) 6.5 3.4 3.7 3.3 5.1
Industry (2.1) 0.9 4.9 0.9 3.7 6.6
Services 3.5 4.0 4.4 4.3 5.4 8.7
Saving and Investment (current and market prices)
(% of GNP)
Gross domestic investment 19.3 17.8 19.9 19.4 18.1 15.3
Gross domestic savings 21.6 26.1 27.2 21.1 23.1 20.9
Money and Inflation (annual % change)

Consumer price index 9.7 6.7 4.4 6.1 3.1 2.8
Total liquidity (M3) 7.4 19.3 4.6 6.8 9.5 9.0
Government Finance (% of GDP)
Revenue and grants 17.4 16.1 15.6 15.3 14.1 17.1
Expenditure and onlending 19.2 19.8 19.6 19.3 19.3 17.1
Overall fiscal surplus (deficit) (1.9) (3.8) (4.1) (4.0) (5.2) (0.2)
Balance of Payments
Merchandise trade balance (% of GDP) 0.0 6.5 5.1 (1.0) (0.5) (5.7)
continued
Table 1 continued
Item 1998 1999 2000 2001 2002 2007

Current account balance (% of GDP) 2.4 9.5 8.4 1.8 5.4 4.0
Merchandise export ($) growth 16.9 16.0 9.0 (16.2) 10.1 29.7
(annual % change) (2006)
Merchandise import ($) growth (18.8) (0.9) 14.5 (4.5) 6.2 18.2
(annual % change) (2006)
External Payments
Gross official reserves 10,806 15,107 15,024 15,658 16,179 33,751
(including gold, $ million)
Months of current year’s imports of goods and 3.1 4.4 4.2 4.6 4.7 6.9
services
External debt service (% of exports of goods and 73.4 68.6 69.5 72.7 69.1 41.81
services)
Total external debt (% of GDP) 14.0 14.1 14.3 21.2 21.1 17.2
Memorandum Items
GDP (current prices, ₱ billion) 2,665.1 2,976.9 3,308.3 3,673.7 4,022.7 6,648.2
Exchange rate (₱/$, average) 40.9 39.1 44.2 51.0 51.6 46.15
Population (million) 75.2 76.8 78.4 78.6 80.4 88.71
GDP = gross domestic product, GNP = gross national product, M3 = money supply.
Sources: National Economic and Development Authority (NEDA), 2006 Socioeconomic Report; National Statistical Coordination Board (NSCB), Economic
and Financial Data on the Philippines (www.nscb.gov.ph); Bangko Sentral ng Pilipinas, Key Statistical Indicators (www.bsp.gov.ph); Bureau of the Treasury
(www.treasury.gov.ph), Human Development Reports (www.hdrstats.undp.org).
Chapter 2: Background
Table 2: Country Poverty and Social Indicators

Item 1990 1995 2000 Latest Year
Population Indicators
Total population 60.7 68.6 76.5 88.7
(millions) (2007)
Annual population 2.4 2.3 2.4 2.0
growth rate (2007)
(% change)
Social Indicators
Total fertility rate 4.1 3.8 3.2 3.2
(births per woman) (2002) (2006)
Maternal mortality 209 180 172 162
rate (per 100,000 live (1998) (2006)
births)
Infant mortality rate 57 49 35 24
(below 1 year, per (1998) (2006)
1,000 live births)
Life expectancy
at birth (years)
Female 68.8 70.1 72.5 73.6
(2003) (2006)
Male 63.6 64.8 67.2 69.2
(2003) (2006)
Adult literacy (%)
Female 91.2 93.8 94.8 93.7
(2006)
Male 92.2 93.2 95.1 93.1
(2006)
Primary school gross 111.8 114.0 113.4 107.4
enrollment (%) (1992–1993) (1995–1996) (2000–2001) (2004)
Secondary school 76.0 77.1 79.5 79.5
gross enrollment (%) (1992–1993) (1995–1996) (2000–2001) (2001)
Child malnutrition 34.5 30.8 30.6 24.6
(below age 5, %) (1996) (2001) (2006)
Population below — — 14.6
poverty line (2001)
(international, %)
continued
Table 2 continued
Item 1990 1995 2000 Latest Year

Families with access 73.7 76.9 78.5 82.0
to safe water (%) (1991) (1997) (2000) (2004)
Population with access 74.0 — 83.0 80.0
to sanitation (%) (2000) (2004)
Public education 2.9 3.3 2.7
expenditure (2002)
(% of GDP)
Human Development
Index 0.713 0.731 0.751 0.771
Rank 68 67 85 90
(2001) (2005)
Gender-Related
Development Index — 0.661 0.748
Rank — 82 (2001)
66
Poverty Indicators
Poverty incidence 39.9 28.1 28.4 32.9
(1991) (1997) (2006)
Percent of poor to 45.3 33.0 34.0 33.0
total population (1991) (1997) (2006)
Poverty gap 13.0 10.0 10.7
(1991) (1997)
Poverty Severity Index — 3.5 3.4 3.4
(%) (1997) (2003)
Inequality (Gini 0.4680 0.4881 0.4814 0.4410
coefficient) (1991) (1997) (2006)
Human Poverty Index — 17.7 14.8
(2001)
Rank — 19 28
— = no data, GDP = gross domestic product.
Source: National Statistics Office, NSCB, Human Development Reports (http://hdrstats.undp
.org); US Energy Information Administration, Philippine Country Analysis Brief (www.eia.doe.gov);
Asian Development Bank (adb.org), Key Indicators for Asia and Pacific, 2008.
In 2006, the Philippines ranked 90th of 177 countries on the Human

Development Index (UNDP 2007); in 2005, it ranked 84th. In 2006, 32.9%
of the total population lived below the annual poverty threshold of $294,
about 3% more than in 2003. Poverty is about 25% in the urban areas but is
most acute and widespread in the rural areas, averaging about 54%.
Role of the environment and natural resources

in the economy
Socioeconomic overview
Rural sector
The primary sector (agriculture, fisheries, and forestry) depends on the
environment and natural resources (land, water, and soils) and contributes
substantially to national GDP. In 2006, the sector generated $12.9 billion
(at constant 1985 prices), 18.8% of GDP ($68.6 billion at constant 1985
prices) (NSCB 2007). Although the sector grew 24.6% faster between 2000
and 2006, it contributed 1.0% less to GDP than its share of 19.8% in 2000
because of larger increases in GDP contribution from other major sectors
(industry, including mining, and services).
Philippine agriculture grew by 4.1% in 2006, slightly below the 4.2%
MTPDP target. Agribusiness lands were not developed fast enough to meet
MTPDP targets. Jobs in the sector decreased slightly (by less than 1%).
Moreover, retail prices continued to soar even with increased production
because of infrastructure and marketing constraints.
In 2006, agriculture, fisheries, and forestry combined produced $12.9 bil-
lion (in gross value added [GVA], at constant 1985 prices (NSCB 2007).
Agricultural crops contributed 49.9%, livestock and poultry 22.3%, agricul-
tural activities and services 4.4%, fisheries 22.9%, and forestry 0.6%. By the
end of 2006, agriculture, hunting, forestry, and fishing activities employed
about 12 million, roughly 36.6% of the total labor force of 32.4 million.
Municipal fisheries generated 68% of the total employment in fisheries,
followed by aquaculture (26%) and commercial fisheries (6%). In 2006, fish-
eries contributed 4.3% (at constant 1985 prices) of GDP. That same year, the
GVA of fisheries was $2,946 million (at constant 1985 prices), 22.9% of the
overall GVA of agriculture and the largest share next to that of agricultural
crops (BFAR 2006).
The Department of Agriculture (DA) places aquaculture among
Philippine agriculture’s main drivers, with a 10.4% growth rate in 2006.
That year, aquaculture accounted for 47.5% of the total fishery production of
4.41 million metric tons (NSCB 2007), compared with 45.5% of 4.2 million

National Statistical Coordination Board (NSCB) website, www.nscb.gov.ph.
Table 3: Value of Fish Production, by Subsector, 2003–2005

2003 2004 2005
Subsector ($ million, at current prices)
Total 2,216.0 2,478.2 2,651.1
Commercial 776.5 863.0 856.1
Municipal 751.8 815.2 904.6
Marine 685.6 734.8 820.7
Inland 66.2 80.5 83.9
Aquaculture 687.7 800.0 890.4
Source: NSCB, 2006 Selected Statistics on Agriculture.
metric tons in 2005 (BFAR 2006). Income from aquaculture in 2006 was
$3 billion (at constant 1985 prices). Aquaculture farms are found mostly on
the islands of Mindanao and Luzon, and have their highest production share
in region 4B in Luzon and the Autonomous Region in Muslim Mindanao
(ARMM) in Mindanao. Table 3 shows the value of fish production in the
commercial, marine, inland, and aquaculture subsectors.
About 44,000 families derive their incomes mainly from forestry and
hunting. About 23% of these families are in the $545–$726 income class, and
only 7% have incomes of $1,453–$1,816 (NSO 2005). Forest product exports
in 2005 amounted to $33 million, free on board (FOB), about 3% less than
in 2004. This is about 1.4% of the value of Philippine exports in 2005, which
was $41.3 billion, FOB.
Between 1988 and 1994, the Philippines lost $2.6 billion (at constant
1985 prices) in forest resources to harvesting and other logging activities,
$1.1 billion to the conversion of forestland to non-forest uses, $23.6 million
to forest fires, and $317 billion to the natural death of trees (NSCB n.d.[b]).
Poverty is most intense among those working in agriculture.
Agriculture‑dependent households account for two thirds of the rural poor.
The sector continues to suffer from inadequate research in high‑value prod-
ucts, poor market information, and weak institutions. Poor rural infrastructure
raises production and transportation costs and discourages the private sector
from participating in agribusiness ventures.
ENR degradation heightens rural poverty, inequality, loss of livelihood,
and the unsustainability of economic ventures. It severely affects the rural
population that depends on upland agriculture and subsistence fishing along
coastal areas. On the other hand, high population growth, lack of secure access
to land and to capital and social services, poor governance, unemployment,

Region 4B is composed of the islands of Occidental Mindoro, Oriental Mindoro,
Marinduque, Romblon, and Palawan, and is also called the MIMAROPA region.
10 Country Environmental Analysis 2008: Philippines
inequity, and slow economic growth all contribute to high rural poverty and
concomitant degradation of the environment.
Urban and Industrial Sectors

The relationship between ENR and the urban and industrial sectors is an
often‑overlooked but important one that affects ENR use and management.
The Philippines is urbanizing at 5% or more yearly, and the industrial sector
(mining, manufacturing, trade, construction, and energy generation) collec-
tively grew by an average of 3.6% (at constant 1985 prices) between 1992
and 2006. Industrial sector GDP during the same period grew by 67.7%,
from $13.3 billion to $22.3 billion (at constant 1985 prices). The urban and
industrial sectors are important components of socioeconomic development,
but their environmental impact can also be considerable.
Most urban growth in the Philippines is occurring in low‑density peri-
urban areas (particularly outside the capital city of Metro Manila, in Cavite
and Laguna provinces, and in major secondary cities). The three dominant
urban centers—Metro Manila, Metro Cebu, and Davao—each have a popula-
tion of more than 1 million. Urban areas are the centers of economic growth.
Sustainable growth in the urban and industrial sectors rests on a healthy
ENR, including clean water and better air quality for industry and for the
growing number of urban residents.
Energy and Transport Sector

The energy and transport sector has significant impact on the ENR, mostly
from air pollution. According to the Environmental Management Bureau
(EMB) of the Department of Environment and Natural Resources (DENR),
much air pollution comes from mobile sources. Between 2000 and 2005,
records from the Land Transportation Office (LTO) showed that motor vehi-
cle registration increased by 6.5% on average yearly. This continuing increase,
plus the inadequacy of the mass transit system and poor maintenance of
roads and traffic facilities, increases air pollution. According to an ADB study
(ADB 2002a), until the Clean Air Act (CAA) and its implementing rules
and regulations were passed in 1999, setting emission standards for different
classes of vehicles, the control of pollution from mobile sources received low
priority in environmental regulation. All new vehicles must now comply with
these standards for registration. Air pollution monitoring results in Metro
Manila and other major cities have improved as a result.
Medium-Term Philippine Development Plan
MTPDP 2004–2010 integrates the planning and policy approaches of the

Government with the basic objective of building prosperity for the greatest
number of Filipinos. With the President’s 10-Point Agenda, the MTPDP
seeks to create 6–10 million jobs by developing 1–2 million hectares (ha)
of land for agribusiness; improve ENR and biodiversity through sustainable
management; and decentralize and decongest Metro Manila.
Five major objectives, consistent with the 10-Point Agenda of the
President, were identified for the ENR sector: sustainable and more produc-
tive use of natural resources, responsible mining, protection of vulnerable and
ecologically fragile areas, a healthier environment, and disaster mitigation.
The goals, strategies, action plans, and targets for attaining the ENR objec-
tives in potable water supply, mining, hazardous waste disposal, and disaster
mitigation are in Boxes 1–4.
The Medium-Term Public Investment Program (MTPIP) 2006–2010
translates the MTPDP into a rolling core set of priority programs and projects
to be implemented by the national Government in the medium term. The
MTPIP is an instrument for monitoring government targets, commitments,
and resources over the plan period, and a critical input to the annual budget. It
also sets the tone for resource programming by the Government’s Investment
Coordination Committee.
MTPIP 2006–2010 investments total about $156.6 billion (at constant
1985 prices), $10.3 billion (6.5%) of this for ENR plans and programs to help
attain the five objectives mentioned above. The national Government will
provide $5.1 billion (49.9%), government–owned and controlled corporations
and government financial institutions $2.1 billion (20%), local government
units (LGUs) $1.7 million (0.1%), the private sector $1.2 billion (12%), and
international agencies (through loans and grants) and other sources, $1.9 bil-
lion (18%).
Millennium Development Goals
The Millennium Development Goals (MDGs) set the framework for the
MTPDP’s social commitments and the MTPIP’s programs and projects.
According to its midterm progress report in 2007, the Philippines has made
considerable headway in achieving the MDGs, particularly the targets for
poverty reduction, nutrition, gender equality, child mortality reduction, the
fight against HIV/AIDS and malaria as well as other diseases, and access
to safe drinking water and sanitary toilet facilities (NEDA 2007b). Poverty
incidence among households and the population had declined by about 1.2%
each year from 1991 (the baseline year) to 2006 (see Table 2). In 2006, pov-
erty incidence was 26.9% among households (versus 39.9% in 1991) and
32.9% for the general population (45.3% in 1991). At these rates of decline,
the 2015 MDG targets for poverty incidence are likely to be met. But pov-
erty incidence has regional variations. Household poverty incidence is below
the national average of 26.9% (2006) in five regions—the National Capital
Region (NCR) and regions 1, 2, 3, and 4A—but above the national average
in the other 12 regions, with Caraga (region 13) at 45.5%, ARMM at 55.3%,
and region 4B at 43.7% (Social Watch Philippines 2007).
Subsistence incidence rates also vary widely between regions. In 2006,
the rates exceeded the national average of 14.6% in 12 of the 17 regions. Only
four regions—the NCR (1.2%), region 2 (8.9%), region 3 (4.6%), and region
4A (5.7%)—had single-digit rates (Social Watch Philippines 2007). More
attention and better development assistance must be given to regions where
poverty incidence exceeds the national average.
MDG7 (environmental sustainability) has three major targets: imple-
menting national strategies for sustainable development by 2005, and
reversing the loss of environmental resources by 2015; halving by 2015 the
proportion of people with no access to safe drinking water and basic sanita-
tion or those who cannot afford it; and significantly improving the lives of at
least 100 million slum dwellers by 2020. (Table 4 is a summary of the MDG7
indicators for the country.)
For the sustainable development target, the 2007 MDG progress report
showed an increase of about 11% in forest cover between 1998 (6.5 million
ha) and 2004 (7.2 million ha). Protected areas under the National Integrated
Protected Areas System (NIPAS) increased in number from 83 in 2000 to
103 in 2006. There was also a significant increase in confiscated flora (from
58 pieces in 2002 to 600 in 2005) and confiscated fauna (from 175 heads in
2002 to 2,944 in 2004).
But pollution persists in the major urban centers. The volume of air
pollutants is projected to increase further as industrial activity increases
and vehicles, many of them smoke‑belching public‑utility vehicles, clog the
streets. Solid waste management will also continue to be a problem in most
urban centers.
Access to safe drinking water increased slightly, from 80% in 2002 to
80.2% in 2004 (NSO 2006). The proportion was lower for those in the low-
est 30% income group (65.4%) than for families in the highest 70% income
group (86.5%). According to the Annual Poverty Indicators Survey (APIS)
in 2004, the MDG target of 83.8% for access to sanitary toilet facilities had
been achieved. These figures may, however, need to be validated.
For slum dwellers, the Government has adopted the dual strategy of
securing tenure for settlers through the Community Mortgage Program and
setting up the Social Housing Finance Corporation for the bottom 30% of
the population. It has also formed partnerships with private organizations
to ease the plight of informal settlers. From 2001 to 2006, the national
Government and the private sector provided security of tenure or shelter to

The MTPDP 2004–2010 targets (92%–96% for safe drinking water and 86%–91% for
sanitary toilet facilities) are higher than the 2015 MDG targets.
Table 4: Philippines Millennium Development Goal Indicators
Goal 7: Ensure Environmental Sustainability
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Target 10: Implement national strategies for sustainable development by 2005, to reverse loss of environmental resources by 2015
Proportion of 20.5 20.1 19.7 19.3 19.0 18.6 18.3 18.0 — — — — 23.9 23.9 52.8 — 52.6
land area covered
by forest (%)
Proportion of 8.5 8.5 8.5 8.5 9.2 9.3 9.6 9.6 10.8 11.7 12.1 11.2 10.4 12.2 12.1 12.7 12.7
area protected
to maintain
biological
diversity to land
area (%)
Consumption of 2,981 2,023 3,520 3,779 3,959 3,382 3,039 2,747 2,130 2,088 2,905 2,049 1,644 1,422 1,516 1,050 681
ozone-depleting
substances
(ODP tons)
Proportion of 66.2 — — — — — — — — — 42.1 — — 42.1 — — —
households using
solid fuels
(for cooking) (%)
continued
Table 4 continued
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Target 11: Halve the proportion of people with no access to safe drinking water and basic sanitation or those who cannot afford
it by 2015
Proportion of 73 — — — — — — — 78.1 81.4 79.1 — 80.0 — 80.2 — —
households with
access to safe
water supply (%)
Proportion of 67.6 — — — — — — — — 85.8 79.3 — 86.1 — 86.2 — —
households with
sanitary toilet
facility (%)
Target 12: Achieve a significant improvement in the lives of at least 100 million slum dwellers by 2020
Proportion of 91.0 — — — — — — — — — 81.2 — — — — — —
households with
access to secure
tenure (owned
and rented) (%)
— = no data, ODP = ozone-depleting potential.
Sources: NSCB, Philippine Millennium Development Goals Indicators (http://www.nscb.gov.ph/stats/mdg/goal7.asp).
more than 710,000 households. Foreign-assisted projects that are improv-

ing the plight of slum dwellers include the $52.4 million Development of
Poor Urban Communities Sector Project with ADB funding; the $1.89 mil-
lion World Bank and Japan Social Development Fund–assisted Upscaling
Urban Poor Community Renewal Scheme Project being implemented by a
nongovernment organization (NGO) in the cities of San Fernando, Naga,
Quezon, Mandaue, and Iligan; and the Strategic Private Sector Partnerships
for Urban Poverty Reduction Program, in which ADB is collaborating with
the Philippine Business for Social Progress (NEDA 2007b).
Much remains to be done to meet environmental sustainability goals.
According to the MDG progress report, to meet the 2015 target for MDG7
the Philippines has to update environmental data; support environmental
laws; prevent or mitigate disasters and minimize the damage they cause; con-
tinue addressing poverty and population problems; build the environmental
management capacity of LGUs and other key partners; integrate sustainable
development into the programs and performance assessment of government
departments, and the operations of LGUs and business entities; set national
targets for environmental sustainability; monitor groundwater; provide safe,
low-cost drinking water; conserve water; build low-cost sanitation facilities;
intensify efforts to meet the housing needs of informal settlers; expand the
urban asset reform program; promote sustainable sources of housing finance;
expand private participation in socialized housing finance and construction;
rationalize coordination for housing and urban development; and strengthen
housing regulation.
Main Environmental Concerns
Forest Resources
The country’s total land area of about 30 million ha is made up of classified

forestland (15 million ha), unclassified forestland (0.7 million ha), and alien-
able and disposable land (14.2 million ha) (FMB 2006). Classified forestland,
exclusively for forestland use, comprises 10.1 million ha (67%) of established
timberland and 3.2 million ha (21.4%) of established forest reserves, as well
as national parks, game refuges and bird sanctuaries, and wilderness areas
(1.3 million ha), military and naval reservations (0.13 million ha), civil res-
ervations (0.17 million ha), and fishponds (0.1 million ha). Unclassified
forestland is for still‑unspecified forest use. Alienable and disposable land
is suitable for agricultural, residential, commercial, industrial, institutional,
recreational and other non-forest uses. Figure 1 shows the various types of
land in the Philippines and their share of the total land area.
Figure 1: Land Classification, 2005

(total area: 30 million hectares)
NP/GRBS/WA Military and Naval
4.48% Reservations
0.42%
Established
Timberland
33.64%
Certified A&D
47.36%
Civil Reservations
0.55%
Unclassified
2.51% Established Forest
Fishponds Reserves
0.30% 10.74%
A&D = alienable and disposable land; NP/GRBS/WA = national parks, game refuges and bird
sanctuaries, and wilderness areas.
Source: Philippine Forestry Statistics, 2005.
Forest cover (Figure 2) declined from about 21 million ha, or 70% of

the total land area, in 1900 to only 5.4 million ha, or 18.3%, by 1988. But
recent official estimates, based on satellite images of the country in 2002,
show that forest cover had increased to 7.2 million ha, or 24% of the land
area—2.5 million ha of closed‑canopy forest, 4.0 million ha of open‑canopy
forest, 247,362 ha of mangroves, and 329,578 ha of plantations. The Forest
Management Bureau (FMB) says that 91% of this forest cover area has been
validated.
The Food and Agriculture Organization of the United Nations (FAO)
published a similar estimate of forest cover area based on a global assessment
in 2005 and using the following categories: primary (0.8 million ha), modified
Figure 2: Forest Cover, 2003 (hectares)
Forest Cover in Forestland
Mangrove
2%
153,577
Mangrove
3.45% Open
Closed
247,362 55%
39%
2,480,644 3,515,645
Plantation
Closed 4%
35.72% 281,764
2,560,872
Forest Cover in Alienable
and Disposable Land
Mangrove
Open 13%
Plantation 56.23% 93,785
5% 4,030,588
Closed Open
329,578
11% 70%
80,228 514,943
Plantation
6%
47,814
Note: Incomplete plantation data.

Source: Philippine Forestry Statistics, 2005.
natural (5.7 million ha), productive plantation (0.3 million ha), and protective
plantation (0.3 million ha).
In 2005, the Government reported that 16,498 ha had been reforested,
7,187 ha (43.5%) of this total by the Government and 9,311 ha (56.5%) by
the private sector, through community‑based forest management programs
and socialized industrial forest management agreements, among others
(NSCB 2007). The reforestation achieved in 2005, however, was lower by
20% than the 20,338 ha reforested in 2004. Whether these values have been
validated is unknown.

FAO. Forestry Country Profiles. Available: www.fao.org/forestry/32185/en/phl/.

The natural ability of forests to regenerate was also a factor, according to FMB.
In 2005, DENR approved 1,781 community-based forest management

projects on about 1.6 million ha by specific tenure instrument. Holders of
tenure instruments reforested 6,678 ha, or 71.7% of the reforested area.
By December 2005, the number of industrial forest management agreements
and industrial tree plantation lease agreements had decreased to 178, with
a combined coverage area of 713,749 ha. In contrast, tree farm and agro-
forestry farm leases had increased to 222, over an area of 107,194 ha. The
harvested logs are mostly exported.
The decline in forest cover over the past three decades is quite alarming
(Table 5). The Philippines ranks 11th among 89 tropical countries where per
capita forest area is lowest. Compared with the global average of 0.62 ha per
capita, the Philippines has 0.085 ha (FAO 2005). Most of the watersheds are
degraded. Land conversion is a major cause of deforestation; other causes are
slash-and‑burn farming (kaingin), illegal logging, forest fires, pest infestations,
and typhoons. According to DENR, the worst forest disruption (121,326 ha)
took place in 1983, when fire did away with 117,951 ha, kaingin 2,241 ha,
illegal cutting 1,015 ha, and infestation, typhoons, and other causes 119 ha.
Agriculture Resources
The performance of agriculture and fisheries is severely constrained by low

productivity, underused lands, environmentally unsustainable use of land and
marine resources, lax enforcement of laws, insufficient credit, inefficient mar-
keting, and limited sector diversification. Poverty is deepening as a result.
Section 26, Declaration of Policy, of the Agriculture and Fisheries
Modernization Act (AFMA) (1997) states that, in keeping with its policy of
rational and equitable resource use, the State “shall prevent further destruction
of watersheds, rehabilitate…irrigation systems and promote the development
of irrigation systems that are effective, affordable, appropriate and efficient.” Yet
little effort has been exerted to protect and rehabilitate critical watersheds and
aquifers (Center for Research and Communication Foundation, Inc. 2007).
The conversion of agricultural land to other uses has also had a consider-
able effect on agriculture resources. Between 1988 and 2000, 34,207 ha of
alienable and disposable land, or 2,631 ha per year on average, was converted
from agriculture to other uses.
Fishery Resources
The Philippines ranked 11th among the top fish‑producing countries in the
world in 2006, producing 2.9 million metric tons (MT) of fish, crustaceans,
mollusks, and aquatic plants (including seaweeds), or 2% of the world’s total
of 143.6 million MT. It is also the second‑largest producer of aquatic plants
Table 5: Country Environment Indicators

Indicator 1990 1997–2002 Latest Year
Energy Efficiency of
Emissions
GDP per unit of energy 6.9 7.0 5.6
use (PPP$/kgoe) (2001) (2006)
Traditional fuel use 37.0 61.0 47.0
(% of total energy use) (1980) (1997) (2006)
Carbon dioxide emissions 0.72 0.99 1.0
(million metric tons per (2004)
capita)
Water Pollution:
Water and Sanitation
% of urban population 93.0 91.0 96.0
with access to safe water (2000) (2006)
% of rural population with 82.0 79.0 88.0
access to safe water (2000) (2006)
% of urban population 85.0 93.0 81.0
with access to sanitation (2000) (2006)
Land Use and
Deforestation
Forest area (million 6.7 5.8 7.2
hectares) (2000) (2003)
Average annual
deforestation
Million hectares 0.0887
% change 1.4
(1990–2000)
Rural population density 570.6 572.3
(people per km2 of arable (2000)
land)
Arable land (% of total 18.4 18.6 36.0
land) (2000) (2001)
Permanent cropland (% of 14.8 15.1
total land) (2000)
continued
Table 5 continued
Indicator 1990 1997–2002 Latest Year

Biodiversity and
Protected Areas
Proportion of terrestrial 4.0 4.9 6.5
and marine area protected (1999) (2005)
(%)
Mammals (number of 49 50 50
threatened species) (1996) (2002) (2002)
Birds (number of 86 67 67
Higher plants (number of — 360 193
threatened species) (1997) (2002)
Reptiles (number of 7 8 8
Amphibians (number of 2 23 23
Urban Areas
Urban population
Million 29.8 48.1
(2002)
% of total population 48.8 60.1
(2002)
Per capita water use (cubic — 377
meters) (2000)
Wastewater treated (%) — —
Solid waste generated per — 0.7 0.4
capita (kg per day) (2001) (2004)
— = no data, GDP = gross domestic product, kg = kilogram, kgoe = kilograms of oil equivalent,
km2 = square kilometer, PPP = purchasing power parity.
Source: FMB, 2005 Forestry Statistics Yearbook; FAO Country Profile. (www.countrystat
.bas.gov.ph); Biodiversity and Protected Areas, 2006 World Resources Institute; Philippine
Brown Environment Quality, Senate Economic Planning Office. Asian Development Bank
(adb.org/water/indicators).
(including seaweeds); of 16.2 million MT produced worldwide in 2006, it

contributed 1.5 million MT, or 9.1% (FAO 2006b).
Fish catch leveled off at around 1.65 million tons in the early 1990s,
despite the continued expansion of the commercial fishing fleet. The country
reached its maximum economic yield from demersal fish stocks in the late
1960s, except in offshore areas around Palawan, Southern Sulu Sea, and the
central part of the Pacific coast. Studies on pelagic fisheries point to the causes
as overfishing and declining fish catch per unit effort. These findings are sup-
ported by observed changes in species composition. For instance, anchovies
have partially replaced sardines, scads, and mackerels in the catch, indicating
a gradual collapse in stocks (FAO 2006a).
In some areas, not only the volume but also the quality and diversity of
the catch has been reduced. In Central Visayas, catch composition has shifted
overall from coastal pelagic to oceanic pelagic species, and from demersal to
pelagic species. In the Visayan Sea, which was one of the most productive
fishing grounds of the country, coastal pelagics replaced demersals as the most
abundant catch in the 1980s, and invertebrate species became squid rather
than shrimp dominant, reflecting a change in ecosystem health due to fishing
pressure, and in fishing method from trawling to purse seine and ring net
(FAO 2006a).
Inland water bodies inherently lack ichthyodiversity because of the
geologic origin and isolation of the archipelago. New fish species have been
introduced, but whether they were entirely appropriate is unclear (FAO
2006a). Inland water resources management should minimize heavy siltation
from deforested catchments into inland waters, allow multiple use of inland
waters with minimum conflicts, prevent further deterioration of inland water
environments and water quality, and sustain maximum sustainable yield from
freshwater natural resources. Each inland water body should also be managed
as an ecosystem under a single management umbrella, stakeholders should be
involved in government planning and management, and the socioeconomic
condition of rural-poor stakeholders should improve.
Laws protecting the marine environment are in place. But the follow-
ing issues still have to be dealt with: resource depletion, degradation of the
coastal environment and critical fisheries habitats, low catch and incomes
and dissipated resource rents, physical losses and reduced value of catch due
to improper postharvest practices and inefficient marketing, inequitable dis-
tribution of benefits from resource use, conflicts between and within sectors,
poverty of small‑scale fisherfolk, and inadequate systems and structures for
fisheries management.
As required in the Fisheries Code (1998) (Republic Act [RA] 8550), a
comprehensive national fisheries industry development plan setting strategic
directions for the next 20 years and key interventions for the first 5 years has
been proposed and is being reviewed by the Bureau of Fisheries and Aquatic
Resources.

One Ocean website, www.oneocean.org.
Aquaculture has a major role in the economy but has had adverse effects
on the environment. Unsound practices—overuse of artificial fish feed,
dumping of waste, and direct discharge of harmful substances—pollute water
bodies. Eutrophication of lakes has reportedly resulted in fish kill in Lingayen
Gulf, Laguna Lake, Pangasinan, and other water bodies. Invasive alien spe-
cies can also take over natural environments and affect endemic species, and
the conversion of wetlands into other uses can worsen aquatic pollution. To
reduce the impact on the environment, the Government is looking to adopt
an integrated approach to aquaculture nationwide that will involve cultivating
aquatic species in controlled environments.
DA, DENR, and the Department of Interior and Local Government
(DILG) issued Joint Administrative Order 1 (2007) defining areas where they
can collaborate in promoting responsible aquaculture. The expected result is
a set of guidelines for aquaculture, as provided in Fisheries Administrative
Order 214 (2001), that will keep source water safe through proper waste
management, sustainable practices, and consistent enforcement.
Biodiversity Resources
The Philippines has over 50,000 documented species; more than 65% are found
nowhere else on Earth, and new species, more than in any other country, are
being discovered every year. The Philippines supports more endemic species
(Table 6) than Madagascar, with only a third of its land area. Madagascar is
one of the most endemically biodiverse countries in the world and has top con-
servation priority. Conservation International has named the Philippines one
of 17 mega‑biodiverse countries, with about 80% of the world’s biodiversity
(in number of species). Key biodiversity areas—128 in all, with an estimated
area of 6 million ha, about 20% of the land area—have been identified (CI-
Philippines 2006). The country is in the Central Indo‑Pacific Eco-region, one
of the 200 priority eco‑regions of the World Wide Fund for Nature (WWF).
The Philippines is a biodiversity “hot spot.” Here the Earth’s biological
wealth is most distinctive and rich, but its loss, if conservation efforts fail, will
also significantly affect global biodiversity. The coastal and marine waters
contain one of the world’s richest ecosystems, with extensive coral reefs,
sea-grass beds, and mangrove forests. Hard stony coral species (scleractinians)
in Philippine coral reefs (about 488) far outnumber those in the Caribbean
(about 70). Philippine species diversity of sea grasses (about 16) is second only
to Western Australia’s (17 species). The total diversity of all marine life in the
Philippines is not yet known, but estimates of species numbers are extremely
high (World Bank 2005b). The Verde Island passage was described by some
scientists as “Center of the Center” of marine biodiversity in the world.

More information may be found at www.conservation.org.
Table 6: Level of Endemism and Status of Vertebrate

Fauna in the Philippines
%
No. of % No. of Threatened
No. of Endemic Endemic Threatened Endemic
Class Species Species Species Species Species
Amphibians 101 79 78 24 30
Reptiles 258 170 66 8 6
Birds 576 195 34 74 30
Mammals 204 111 54 51 37
Total 1,139 555 49 157 23
Source: Ong, Afuang, and Rosell-Ambal (2002).
However, the Philippines also ranks third globally for threatened birds
and eighth for threatened mammals (PAWB 2004). Its threatened spe-
cies numbered 695 plants and 223 animals in 2007. The Convention on
International Trade in Endangered Species of Wild Flora and Fauna
(CITES), which the country ratified in 1981, lists 25 wildlife species in the
Philippines (24 animal and one plant) that are threatened with extinction,
and an additional 116 species (100 animal and 16 plant including orchids and
tree ferns) that, while not under immediate threat of extinction, could become
extinct if their trade is not strictly regulated. (Table 7 shows the number
of rare, threatened, and endangered species in the country, according to the
Protected Areas and Wildlife Bureau of the DENR.) The common causes of
the loss of biodiversity (terrestrial, coastal and marine, and freshwater), cited
in various ENR assessments, are unsustainable land‑use practices, hunting
and wildlife trade, ineffective capacity for natural resource management, low
awareness of biodiversity, and poor enforcement of regulations.
The NIPAS Act (1992) was passed to maintain essential ecological
processes and life‑support systems, preserve genetic diversity, ensure the sus-
tainable use of resources, and keep their natural conditions as far as possible.
The act defined various categories of protected areas (Figure 3) including
strict nature reserves, natural parks, natural monuments, wildlife sanctuaries,
protected landscapes and seascapes, resource reserves, natural biotic areas, and
other categories established by laws, conventions, and international agree-
ments signed by the Philippine Government. As of June 2008, 107 protected
areas, 3.3 million ha in aggregate, had been proclaimed by the President of
the Philippines under the NIPAS Act. Of this total, 1.3 million ha (39.4%) is

Information provided by PAWB during consultation meeting; based on DAO 2007-01
and 2004-15.
Table 7: Number of Rare, Threatened, and Endangered Wildlife Species, 1996–2006
Type 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Mammals 94 95 94 98 108 99 99 99 61 61 61
Birds 176 174 173 149 192 205 216 215 115 116 116
Reptiles 15 15 15 18 16 16 16 16 26 26 26
Amphibians — — — — 2 — — — 15 15 15
Insects — — — 4 4 — — — 5 5 5
TOTAL 285 284 282 269 322 320 331 330 222 223 223
— = no data.
Note: Includes species that are critically endangered, near threatened, extinct, vulnerable, conservation dependent, of least concern, at lower risk, indeterminate,
in the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) I and II.
Source: Protected Areas and Wildlife Bureau, based on DAO 2004-15.
Figure 3: Protected Areas, 2004
Marine reserves
46,983.48
Other categories
Natural biotic areas
11,456.72 22.70
Wildlife sanctuaries National parks/National

287,869.91 marine parks /National
Resource reserves marine reserves
167,489.50 524,117.00
Natural monuments/ Game refuge

landmarks and bird
23,741.50 sanctuaries
918,585.35
Protected
Wilderness
landscapes/
areas
seascapes
3,297.00
1,671,775.11
Watershed
forest reserves
1,153,629.41
Natural parks Mangrove swamps

971,579.46 (undetermined)
Source: Philippine Protected Areas and Wildlife Resources Statistics, 2004.
marine area, and the rest is terrestrial. Ten of the protected areas (0.786 mil-
lion ha in total) have been officially proclaimed through legislation.
The management of 39 wetlands, while part of the MTPDP action
agenda, lacks a national policy. The National Wetlands Action Plan is a
decade old and needs updating. There are four Ramsar sites with a total area

The Ramsar Convention on Wetlands is an intergovernmental treaty whose original emphasis
was on the conservation and wise use of wetlands, primarily as habitat for waterbirds. Over
the years, its mission has evolved to cover “the conservation and wise use of all wetlands
through local, regional and national actions and international cooperation, as a contribution
towards achieving sustainable development throughout the world.”
of 68,404 ha: Agusan Marsh Wildlife Sanctuary, Naujan Lake National Park,
Olango Island Wildlife Sanctuary, and Tubbataha Reefs National Marine
Park. The first two are inland waters. Candaba Swamp is another possible
Ramsar site.
Aside from Laguna de Bay, the major inland waters with management
plans are Lake Naujan, Agusan Marsh, Ligawasan Marsh, and Pasig River.
River basin management plans are also in place for the Bicol river basin and a
few others. Unfortunately, however, there is not enough information for a full
assessment of biodiversity in the inland waters of the country.
Biological diversity conservation in the Philippines is supported by inter-
national agencies and NGO communities. The United Nations Development
Programme (UNDP) has been active in protected areas throughout the
country.10 Conservation International (preservation of forested areas), WWF
(marine conservation), and Flora and Fauna International (FFI) are building
the capacity of local NGOs to plan, finance, implement, and sustain integrated
long‑term conservation programs. The Protected Areas and Wildlife Bureau
(PAWB) of DENR, in partnership with NGOs, has recently completed a
major Global Environment Facility (GEF) project involving the protection
of the 10 largest and most pristine sites, more than 1.5 million ha in total
area. With World Bank and GEF funding, DENR-PAWB has been work-
ing to protect the Ligwasan Marsh (through its Biodiversity Conservation
Project in the Balang River Basin) and coastal and marine biodiversity (under
the Mindanao Rural Development Project). NGOs are also committed par-
ticipants in the fight against the illegal trade in endangered species, and in
breeding programs for critically endangered species, public awareness build-
ing, biodiversity monitoring, and species‑specific wildlife research.
Terrestrial Biodiversity
Because of its global significance and generally degraded condition, and the
continuing threats to its survival, Philippine biodiversity requires consider-
able attention. The loss of forest resources, with their attendant rich bio-
diversity, has resulted in a large number of important threatened species,
many of which can now be found only in the remaining fragments of lowland
forest. The decline in forest cover has also devastated adjacent ecosystems.
Fifty percent of the declared protected areas under NIPAS, or about 1.6 mil-
lion ha, are predominantly forestlands.
10
These include: the Samar Island Biodiversity Project, Conservation of the Tubbataha
Reef National Marine Park and World Heritage Site, Cebu Endemic Forest Biodiversity
Restoration, Conservation and Sustainable Development Project, Biodiversity Conservation
and Management of the Bohol Islands Marine Triangle, Integrated Biodiversity Conservation
and Sustainable Management of Ancestral Domains in the Zambales Mountain Range, and
Sustainable Management of Mt. Isarog’s Territories (SUMMIT).
Biodiversity concerns were left out of forest management in its early

stages. Only in 1992, under the NIPAS Act, was logging or the commercial
exploitation of old‑growth forests, watersheds, and other areas specifically
prohibited. Protected areas had to have biodiversity management plans. In
2004, the Philippines made sustainable forest management (SFM) a primary
policy objective.
Coastal and Marine Biodiversity

Marine biodiversity in the Philippines is one of the world’s richest. The marine
waters hold more than 500 of the 800 known coral reef species, in addition
to more than 2,000 species of marine fish, more than 40 species of mangrove,
and 16 species of sea grass.11 To some scientists, the global importance of that
biodiversity and the threats to it make the country the top marine biodiversity
hot spot in the world.
About 98% of all Philippine coral reefs are at risk from human activities,
and 70% are at high or very high risk. One exception is the Visayan Seas
area, where coastal resource management programs created protected areas
in recent years, have helped curtail illegal fishing and encouraged sustainable
management. More than 70% of the mangrove forests have been converted to
aquaculture, logged, or reclaimed for other uses. A recent reading of 2002 sat-
ellite images by the National Mapping and Resource Information Authority
(NAMRIA) and FMB indicated a total mangrove area of 248,813 ha. This
estimate, however, has not been validated. Half of the sea-grass beds have
been lost or severely degraded, and the degradation is accelerating. Beaches
and foreshore areas are under increasing pressure from rapid population
growth and uncontrolled development, leading to erosion, sedimentation,
and water quality problems (World Bank 2005b).
As a whole, coastal and marine ecosystems in the Philippines are in
decline, the 2005 Philippine Report of the Biodiversity Indicators for
National Use showed. The report added that the lack of comprehensive data
and information on the state of biological resources and their habitats was
affecting conservation and management (PAWB 2005).
The economic costs are significant. Overfishing leads to lost fish catch
of about $125 million per year. In the 1990s red tides, harmful algal blooms
caused by increasing pollution, resulted in yearly losses in exports of around
$30 million.
A sustainable archipelagic framework, which seeks to transform
land‑based development planning and take a more rational and integrated
approach to coastal and marine resource use, was prepared in 2004 but has
not been acted on so far.
11
This makes the Philippines the second-ranked country in the world in species richness of
sea grass.
Water Resources
The Philippines has abundant water resources. It has 421 principal rivers,
about 79 natural lakes, and 36,289 kilometers of coastline. As of 2005, EMB
had classified 62% of the 421 principal rivers according to their intended
beneficial use (see Table 8). Only five were class AA, intended for public
water supply; most were class C, intended only for fishery, recreation, and
manufacturing (EMB 2007a).
Two major policy frameworks for water resources management—the
integrated water resources management framework ((IWRMF) and the
integrated water quality management framework (IWQMF)—were drafted
by the Government in 2007. The National Water Resources Board (NWRB)
is leading the development and implementation of the IWRMF with ini-
tial support from the United Nations Environment Programme (UNEP),
while EMB, with assistance from a Japan International Cooperation Agency
( JICA) project, is in charge of developing and implementing the IWQMF.
The IWRMF, a country commitment at the World Summit on
Sustainable Development in Johannesburg in 2002, has its sights on greater
effectiveness, accountability, and synergy among institutions and stakehold-
ers; effective protection and regulation; resource sustainability; and adaptive
and proactive response to challenges. Among its strategies are participatory
water governance, capacity building for IWRM, efficient and ecologically
sustainable allocation of water, more effective groundwater management,
climate-change and disaster-risk mitigation, water stewardship, more acces-
sible and available water supply and sanitation services, and innovations in
water‑sensitive design and water rights trading.
The IWQMF is a requirement of the Clean Water Act (CWA). Its struc-
tured approach to sustainable water quality management involves using source
control to minimize the impact of waste generation, managing water resources
as an ecosystem and not just as a commodity, and reviving and rehabilitating
degraded resources and non-attainment areas to support beneficial uses.
Neither water framework has been finalized.
Water Supply
Water is important for economic development. Yet the reported water avail-
ability per capita of 1,907 cubic meters is the second lowest in Southeast Asia
(DENR 2007b). As of September 2007, NWRB had granted 19,694 water
permits totaling about 6.0 million liters per second (lps) to domestic (munic-
ipal), agriculture, power, and commercial users. The biggest water user is
irrigation, at about 2.1 million lps. These figures represent only legal users
and exclude unregistered or illegal abstractors.
APIS shows that access to safe drinking water declined from 81.4% in
1999 to 80.2% in 2004, largely because of competing demand from the grow-
Table 8: Classification of Water Bodies in the Philippines

Classification Number
Surface Water
Class AA
Intended as public water supply requiring only approved 5
disinfection to meet the PNSDW
Class A
Suitable as water supply requiring conventional treatment 203
to meet PNSDW
Class B
Intended for primary contact recreation (bathing, swimming, 149
skin diving, etc.)
Class C
For fishery, recreation/boating, and supply for manufacturing 231
processes after treatment
Class D
23
Intended for agriculture, irrigation, livestock watering, etc.
Coastal and Marine Waters
Class SA
Suitable for fishery production, tourism, marine parks, 4
coral reef parks, and reserves
Class SB
Intended for recreation (bathing, swimming, skin diving, etc.) 20
and as spawning areas for bangus and similar species
Class SC
Intended for recreation/boating, fishery, and as mangrove areas 27
for fish and wildlife sanctuaries
Class SD
3
Used for industrial purposes such as cooling
PNSDW = Philippine National Standard for Drinking Water.
Note: There are 133 water bodies with two or more classifications.
Source: Environmental Management Bureau, DENR, National Water Quality Status Report
2001–2005.
ing population. (Table 9 compares water demand in 1995 in major cities with
the forecast demand in 2095 in relation to groundwater availability. See also
Appendix 1.) In Metro Manila, the center of commerce, science, technology,
and political governance, the delivery of safe drinking water to consumers
is increasingly constrained by the low capacity of water sources in relation
to demand and the poor efficiency of water infrastructure. Current source
capacity is estimated at 4,090 million liters per day (MLD)—4,000 MLD
Table 9: Water Demand in Major Cities of the Philippines (m3/year)
Groundwater Surplus/(Deficit) (%)

City 1995 2025 Availability 1995 2025
Metro Manila 1,068 2,883 191 (82) (93)
Metro Cebu 59 342 60 2 (82)
Davao 50 153 84 69 (45)
Baguio City 12 87 15 21 (83)
Angeles City 11 31 137 1,148 343
Bacolod City 37 111 103 179 (7)
Iloilo City 9 47 80 788 70
Cagayan de 29 98 34 18 (65)
Oro City
Zamboanga City 28 203 54 92 (73)
m3 = cubic meter.
Source: National Water Resources Board.
from the Angat–Ipo–La Mesa Dam system and 90 MLD from groundwater
wells (MWSS 2005). Potential demand already exceeds this capacity. Water
pressure is very low in parts of the Metropolitan Waterworks and Sewerage
System (MWSS) service area. In extreme cases, supply is intermittent or even
nonexistent.
MWSS is taking the lead in strategic planning for large sources develop-
ment. It estimates that water demand in the Metro Manila service area will
increase to more than 5,000 MLD by 2010, and to 8,000 MLD by 2025. The
development of a water source is now critical, given the typical lead time of
5–10 years.
Water Quality
Between 2001 and 2005, EMB monitored 238 water bodies through its
regional offices. About 47% had annual average dissolved oxygen and bio-
chemical oxygen demand (BOD) levels within the prescribed criteria. Seven
priority rivers showed improved levels of dissolved oxygen (Table 10). But
of the water bodies meant to be sources of drinking water, only 20% met
the criterion for total suspended solids, confirming the effects of sand and
gravel quarrying and runoff of sediments from denuded forests and agricul-
tural lands.
Forty‑one of the 57 priority bathing beaches were monitored during the
period; 61% passed the fecal coliform criterion of 200 MPN/100 mL for
Table 10: Change in Dissolved Oxygen in Priority Rivers, 2003–2005
Region Water Body 2003 2005 Status Receiving Water Body
NCR Marikina River 3.7 3.4 9% decrease Pasig River
San Juan River 2.4 2.4 1% decrease Pasig River
Paranaque River 2.2 1.5 34% decrease Manila Bay
Pasig River 3.5 2.4 31% decrease Manila Bay
CAR Balili River 4.6 4.9 7% increase Naguilian River
3 Meycauayan River 1.5 1.2 20% decrease Manila Bay
Marilao River 2.6 1.0 62% decrease Manila Bay
Bocaue River 2.9 2.0 31% decrease Manila Bay
4A Imus River 3.0 5.3 77% increase Manila Bay
Ylang-Ylang River 4.5 4.6 2% increase Manila Bay
4B Mogpog River 4.9 7.1 45% increase Calancan Bay
Calapan River 3.2 2.8 11% decrease Calapan Bay
5 Anayan River 5.6 6.3 12% increase Bicol River
Malaguit River 5.5 5.6 3% increase Malaguit Bay
Panique River 3.9 5.7 45% increase Balawing Cove
6 Iloilo River 4.2 4.9 17% increase Iloilo Strait
7 Luyang River 7.9 7.6 4% decrease Coastal waters
of Carmen, Cebu
Sapangdaku River 7.6 7.1 7% decrease Tanon Strait
10 Cagayan de Oro River 8.5 8.1 4% decrease Macajalar Bay

Within the 5 mg/l dissolved oxygen criterion.
CAR = Cordillera Administrative Region, NCR = National Capital Region.
Source: National Water Quality Status Report 2001–2005.
class SB waters. Significantly, the coastal waters of Boracay had improved

since 1997. Between 2003 and 2005, all the beaches on Boracay Island that
were monitored met the fecal and total coliform criteria. Table 11 shows the
results of groundwater testing for a World Bank project.
A rapid inventory of pollution sources (EMB 2007a) revealed that
domestic wastes are a major source of pollution (33%), followed by agriculture
including livestock (29%) and industrial sources (27%). Nonpoint sources of
pollution account for 11% of the organic load in water bodies.
Pollution leaching out from solid waste disposal sites into major water
bodies is high, according to several studies. But there are no estimates of the
full contribution of solid waste to water quality degradation. One study in
Metro Manila found solid waste to contribute about 30% of the total organic
(BOD) loading in surface waters (Table 12).
The annual average economic losses from water pollution are estimated at
$1.3 billion (World Bank 2003a)—$58 million for avoidable costs to health,
$330 million for avoidable costs to fisheries production, and $912 million for
avoidable losses to tourism.
The 5-year Manila Third Sewerage Project (MTSP) is now being
implemented at an estimated cost of $64 million. About 367,000 families
(3.3 million people) in the cities of Quezon, Marikina, Pasig, Mandaluyong,
and Makati, and the municipalities of Taguig and Taytay, are expected to
benefit as sewer coverage in the East Zone improves to 30% by the end of the
project in 2010 (versus about 8% in 2004).
Full coverage of the MWSS service area by the end of the concession
period (2021) is envisioned in the wastewater master plan completed in
November 2005. The master plan proposes a combined sewerage-drainage
strategy, deemed to be the most economical approach to sewerage expan-
sion. Huge investments—and higher tariff rates—will be required to meet
the target. LGUs and the national Government must show commitment,
particularly when it comes to sewage treatment plant site availability, drain-
age maintenance arrangements, and permits and clearances. Mandatory
connections, and a massive information and education campaign, will also be
necessary (MWSS 2005).
Other key challenges in water quality management are monitoring,
land‑use planning, protection of water bodies from contamination by domes-
tic waste, management of nonpoint sources of pollution and of solid and
hazardous wastes, coastal area management to avert impact on the coastal
ecosystem, protection of groundwater quality, and rehabilitation of rivers.
Table 11: Groundwater Quality Scorecard
Total Dissolved Solids Coliform
Wells Wells Wells Wells
That That That That
Wells Failed Failed Wells Failed Failed
Tested Criteria Criteria Tested Criteria Criteria
Region Province (no.) (no.) a (%) a Rating b (no.) (no.) c (%) c Rating b
NCR (Metro Metro Manila 49 5 10 U —
Manila)
CAR Benguet — 5 2 40 U
1 (Ilocos) Ilocos Norte 3 3 100 U 3 1 33 U
Ilocos Sur — 3 3 100 U
La Union 2 1 50 U 1 1 100 U
Pangasinan 15 1 7 S 23 1 4 U
2 (Cagayan Isabela 20 3 15 U 9 7 78 U
Valley) Quirino 1 0 0 S —
3 (Central Bataan 20 0 0 S 3 3 100 U
Luzon) Bulacan 1 1 100 U —
Nueva Ecija 14 0 0 S 7 0 0 S
Pampanga 12 0 0 S —
Tarlac 5 2 40 U —
Zambales 6 1 17 U 5 5 100 U
4 (Southern Batangas 15 0 0 S —
Tagalog) Cavite 31 1 3 S —
Laguna 69 6 9 S 6 0 0 S
Palawan 1 0 0 S —
Rizal 5 1 20 U —
continued
Table 11 continued

That That That That
5 (Bicol) Albay 7 2 29 U 6 4 67 U
Camarines Norte 3 0 0 S 2 0 0 S
Camarines Sur 5 1 20 U 5 0 0 S
Masbate 14 11 79 U —
Sorsogon 3 0 0 S 3 0 0 S
6 ( Western Iloilo — 2 2 100 U
Visayas) Negros Occidental 17 11 65 U —
7 (Central Bohol 5 2 40 U —
Visayas) Cebu 15 7 47 U —
Negros Oriental 9 1 11 U —
8 (Eastern Leyte 8 3 38 U —
Visayas) Western Samar 2 2 100 U 2 2 100 U
9 ( Western Zamboanga 4 0 0 S —
Mindanao) del Norte
Zamboanga 27 3 11 U —
del Sur
10 (Northern Misamis Oriental 46 12 26 U 44 44 100 U
Mindanao)
continued
Table 11 continued

That That That That
11 (Southern Davao del Sur 2 0 0 S —
Mindanao)
12 (Central — —
Mindanao)
Caraga — —
ARMM — —
— = no data, ARMM = Autonomous Region in Muslim Mindanao, CAR = Cordillera Administrative Region, NCR = National Capital Region.
a
Wells tested did not meet the 500 mg/l standard for drinking water.
S = below 10% of wells tested did not meet standard
U = 10% and above of wells tested did not meet standard
b
Only provinces with data were included in the rating.
S = no wells found positive for coliform (0%)
U = wells tested found positive for coliform (>0%)
c Wells tested found positive for coliform.
Source: World Bank, Philippine Environment Monitor 2003 (National Water Resources Board–National Water Information Network Project; data compiled
from various feasibility studies of water districts, LWUA, 2003).
Table 12: Water Quality Scorecard for Surface Water

(Rivers, Lakes, Bays)
DO BOD
Name of (mg/1) a (mg/1) a
River/ Location Average Average
Region Lake/Bay (Province) Class (Range) (Range) Rating
NCR Parañaque Metro C 3.07 25.62 U
River Manila (0–9.50) (97.00–54.00)
San Juan Metro C 3.0 34.81 U
River Manila (0–8.0) (8.00–72.00)
NMTT River Metro C 2.8 25.23 U
Manila (0–7.5) (7.00–54.00)
Marikina R. Metro C 5.03 12.11 U
Manila (0–8.0) (1.00–42.00)
Pasig River b Metro C 3.67 17.07 U
Manila (0–6.5) (2.00–59.00)
Manila Bay Metro C 4.77 3.23 S
Manila/ (3.90–5.48) (2.50–4.18)
reg. 3/reg. 4
Laguna de Metro C 7.86 1.8 S
Bay c Manila/ (6.1–14.0) (0.20–7.00)
reg. 4
CAR —
1 (Ilocos) Laoag River Ilocos Norte A 6.69 — S
(4.03–7.80)
Amburayan Benguet/ C 8.35 — S
River Ilocos Sur (6.00–11.0)
La Union —
Dagupan Pangasinan A/C 5.96 — M
River (2.00–11.82)
Agno River b Benguet/ A/C 6.78 — S
Pangasinan (1.46–11.10)
2 ( Cagayan — —
Valley)
3 (Central Pampanga Nueva Ecija/ C 5.86 3.78 M
Luzon) River b Pampanga (4.85–7.21) (1.00–15.00)
continued
Table 12 continued
DO BOD
Marilao River Bulacan C 1.75 34.64 U
(0–5.75) (10.00–147.00)
Meycauayan Bulacan C 1.35 54.94 U
River (0–5.55) (11.00–170.00)
Bocaue River Bulacan C 6.19 11.13 S
(0.30–9.07) (6.00–20.00)
Labangan Bulacan — 5.33 18.48 M
River (2.50–7.30) (3.30–50.00)
Sta. Maria Bulacan — 3.10 33.57 U
River (0.10–5.20)
Guiguinto Bulacan C 3.03 14.81 U
River (1.50–3.80)
San Fernando Pampanga C 2.86 29.40 U
River (1.90–3.80) (27.00–32.00)
4 ( Southern Mogpong Marinduque C 5.72 6.03 M
Tagalog) River (3.45–7.80) (4.73–8.01)
Pagbilao Quezon — 5.28 6.26 M
River (4.00–6.50) (4.00–8.61)
Bacoor River Cavite — 6.10 — S
(5.30–7.40)
Taal Lake Batangas B 7.40 1.50 S
(7.00–8.20) (1.00–2.00)
Palico River Batangas C 6.95 1.11 S
(4.80–8.30) (1.00–1.50)
Pagbilao Quezon — 7.75 2.10 S
River (6.20–10.20) (1.00–5.00)
Pagbilao Bay Quezon — 6.65 — S
(4.77–7.10)
Boac River Marinduque C 10.42 — S
(6.24–17.13)
continued
Table 12 continued
DO BOD
Calancan Bay Marinduque — 7.14 — S
(4.80–8.50)
Cajimos Bay Romblon — 6.89 — S
(6.00–9.00)
Puerto Galera Mindoro SA 7.67 — S
Bay Oriental (6.75–10.00)
Naujan Lake Mindoro B 8.00 12.3 S
Oriental (1.00–9.60)
Calapan Mindoro — 1.46 30.00 U
River Oriental (0–7.00) (2.00–225.00)
5 (Bicol) Bicol River b Camarines A 5.28 — M
Sur (2.36–10.74)
6 ( Western Jaro–Aganan Iloilo C 8.79 3.45 S
Visayas) River (0.90–14.50) (0.06–15.60)
Panay Iloilo A 7.58 4.63 S
River b (1.40–12.80) (0.40–52.00)
Jalaur River Iloilo C 8.30 6.40 S
(0.50–12.90)
Iloilo River Iloilo 5.64 6.67 M
(1.70–10.40) (0.80–265.00)
Panay Iloilo A 7.69 — S
River b (1.40–23.20)
Iloilo Coasts Iloilo — 8.34 — S
(7.40–10.00)
7 (Central Guindarohan Cebu A 7.21 1.53 S
Visayas) River (6.50–8.30) (0.40–4.00)
Guadalupe Cebu C 4.32 1.90 U
River (0.50–7.50)
continued
Table 12 continued
DO BOD
Dalaguete– Cebu A/B 7.85 1.07 S
Argao River (6.90–10.10) (0.30–2.60)
Guinhulngan Cebu A/B 7.74 1.13 S
River (7.10–8.40) (0.60–2.40)
Luyang Cebu A/B/ 7.17 1.10 S
River C (5.70–8.40) (0.90–1.30)
Cotcot Cebu A 6.56 3.06 U
River (1.40–7.90) (0.60–2.40)
Basak River Cebu — 8.30 0.50 S
(0.20–2.53)
Mananga Cebu A 5.50 7.10 M
River (5.00–6.00) (5.30–7.80)
Balamban Cebu A/B 7.35 1.07 S
River (6.30–8.70) (0.20–2.53)
Guinabasan Cebu A 8.05 2.13 S
River (5.10–11.10) (0.40–9.8)
Minglanilla Cebu — 6.25 — S
(2.10–9.70)
Mandaue to Cebu — 5.27 — M
Consolacion (0.0–14.00)
Liloan to Cebu — 7.15 — S
Compostela (4.10–14.0)
Inabanga Bohol A/C 6.40 1.20 S
River (5.40–7.40) (0.80–1.60)
Inabanga Bohol — 6.93 S
Beach (5.50–7.90)
continued
Table 12 continued
DO BOD
Ipil River Bohol A 4.15 2.48 M
(2.80–5.20) (1.20–4.00)
Manaba Bohol B/C 7.65 — S
River (4.50–16.90)
Matul-id Bohol A 5.77 1.20 S
River (5.70–5.90) (1.20–1.20)
Canaway Negros A 7.25 1.20 S
River Oriental (6.90–7.40) (0.60–1.80)
Cawitan Negros A 7.73 0.50 S
River Oriental (7.50–7.90) (0.20–1.00)
La Libertad Negros A 8.55 1.25 S
River Oriental (7.90–9.20) (0.10–6.60)
Siaton River Negros A 7.67 0.57 S
Oriental (7.30–7.90) (0.10–1.30)
Sicopong Negros A/B 3.21 40.73 U
River Oriental (0.25–7.50) (0.40–100.00)
Tanjay River Negros A/B 7.05 0.85 S
Oriental (6.83–7.30) (0.70–1.00)
8 (Eastern Danao Lake Leyte — 7.20 S
Visayas) (6.30–7.90)
9 ( Western Mercedes Zamboanga B/C 5.16 4.72 M
Mindanao) River del Sur (1.50–8.30) (0.40–17.00)
Saaz River Zamboanga A/B 4.85 — U
del Sur (1.70–7.80)
Manicahan Zamboanga — 5.92 2.76 M
River del Sur (2.50–9.40) (0.10–8.00)
continued
Table 12 continued
DO BOD
Vista del Zamboanga — 6.77 2.03 S
Mar del Sur (4.90–8.80) (0.10–5.40)
Cawacawa Zamboanga — 5.40 — M
Beach del Sur (2.10–8.50)
10 (Northern Cagayan de Misamis A 8.08 — S
Mindanao) Oro River b Oriental (5.70–9.90)
Iponan Misamis A 7.51 3.59 S
River Oriental (2.10–8.50) (0.70–17.00)
11 (Southern Silway River South — 8.22 — S
Mindanao) Cotabato (5.60–73.00)
Malalag Bay Davao del — 6.30 — S
Sur (5.70–7.00)
Digos River Davao del B/C 7.33 1.55 S
Sur (5.80–9.00) (0.10–7.80)
Hijo River Davao del D 7.35 0.94 S
Norte (5.80–9.00) (0.30–4.00)
Sibulan Davao del A/B 7.69 1.68 S
River Sur (6.50–8.60) (0.10–4.00)
Pujada Bay Davao — 6.11 — S
Oriental (3.20–6.80)
Talomo Davao City B 7.47 2.73 S
River (6.40–8.30) (0.50–12.20)
Padada Davao del D 5.85 1.84 U
River Sur (0–7.40) (0.30–18.00)
Tuganay Davao del B 6.02 1.37 U
River Norte (0.20–8.00) (0.30–4.70)
Agusan Agusan del C 7.01 1.01 U
River b Norte (2.60–8.10) (0.10–5.60)
continued
Table 12 continued
DO BOD
Ilang River Davao City C 6.69 2.29 S
(4.40–8.40) (0.70–9.00)
Lasang Davao City B 7.57 1.36 S
River (6.30–8.50) (0.40–3.00)
Lipadas Davao City AA/A 7.29 1.88 S
River (5.30–8.50) (0.30–8.70)
Davao Davao City A/B 7.46 1.06 S
River b (5.80–8.60) (0.10–2.40)
Tagum Davao del A 6.46 1.71 S
River b Norte (4.80–7.80) (0.30–36.00)
12 (Central —
Mindanao)
Caraga Agusan Agusan del A/B/ 5.94 — M
River b Norte/ C (2.60–8.00)
Agusan del
Sur
Magallanes Agusan del A/B/ 7.75 — S
River Norte C
ARMM —
— = no data, ARMM = Autonomous Region in Muslim Mindanao, BOD = biochemical oxygen
demand, CAR = Cordillera Administrative Region, DO = dissolved oxygen, mg = milligram, NCR
= National Capital Region, ND = no data, NMTT = Navotas-Malabon-Tenejeros-Tullahan.
Notes: DO criteria: Class A, SB = 5 mg/l
BOD criteria: Class A, SB = 5 mg/l
a
Monitored for at least 3 years in 1996–2001 for annual mean DO and BOD levels.
b
Major river, according to NWRB classification.
c
Not yet officially classified but generally maintains class C water.
Source: World Bank, Philippine Environment Monitor 2003 (Environmental Management
Bureau, DENR, 2003; Laguna Lake Development Authority data for Laguna de Bay, 1999).
Sanitation
Water supply and sewerage systems must complement each other to reduce
the impact on the quality of ground and surface water. Investments in urban
sewerage and sanitation programs, however, total only 1.5% of investments
in urban water supply. More than 27 million Filipinos do not have sanitary
toilets. Thirteen million do not have clean water sources, and only 3.3% of
households are connected to sewers leading to treatment facilities. More than
95% of wastewater in urban areas is discharged untreated into groundwater,
canals, and waterways. Water supplies are therefore commonly contaminated,
and people in urban slums, and illegal settlers living near the rivers, are
exposed directly to raw sewage. More than 31 persons, mostly children, die
every day from illnesses like diarrhea arising from poor sanitation.
Metro Manila (see Table 13) ranks 16th among key cities in Asia in
percentage of the population with access to sewerage (12%). The rest of the
people rely on septic tanks or pit latrines, or have no access to any sanitation
system. The 2.2 million or so septic tanks in Metro Manila are not regularly
cleaned, and many are inappropriately designed with minimal treatment,
contributing to the pollution of waterways and to public‑health risks.
Outside Metro Manila, only three of the 1,500 cities and towns have
functional public sewerage systems (Baguio, Zamboanga, and Vigan cities)
(Table 14). These systems, built by the Americans in the late 1920s and early
1930s, are in the downtown business districts and serve only a small portion
of the urban population. Aside from a few communal toilets in low‑income
urban areas, no other public sanitation services are in evidence. The two
Table 13: Sewerage Services in Metro Manila, 2001–2005

Item 2001 2005
Population with sewer connection, as % of
total population
East Metro Manila (Manila Water Company Inc.) 8.3% 11%
West Metro Manila (Maynilad Water Services Inc.) 14.5% 12.4%
Amount of septage safely disposed of (cu m per day)
East Metro Manila 100 200
West Metro Manila 74 500
Population with septic tanks cleaned
East Metro Manila 0.7% 4.7%
West Metro Manila 1.9% 6%
cu m = cubic meter.
Source: World Bank, Manila Water Supply and Sewerage, Report 35539-PHI, 16 May 2006.
Table 14: Sewerage and Sanitation Systems outside Metro Manila

Urban Population
Location Population System Management Served Coverage
Baguio City 252,000 Public LGU 5,300 2.0%
sewerage
Zamboanga 402,000 Public Water district 3,700 1.0%
City sewerage
Vigan City 45,100 Public Water district 1,360 3.0%
sewerage
Bacolod 429,000 Independent LGU 1,030 0.2%
City sewerage
Independent LGU 990 0.2%
sewerage
Dagupan 130,000 Communal LGU 308 0.2%
City toilet
Communal LGU 204 0.2%
toilet
LGU = local government unit.
Source: World Bank Water and Sanitation Program–East Asia and the Pacific, 2003.
independent sewerage systems in Bacolod City serve housing developments,

each with fewer than 200 households, while the communal toilets in Dagupan
City are used by only 40–60 households.
The country incurs economic losses of about $1.5 billion per year
from premature death, health‑care costs, lost wages, and other effects of
poor sanitation, according to a study cofinanced by the World Bank and
the United States Agency for International Development (USAID) under
its Environmental Cooperation–Asia Program. The study recommended
increasing the budget for sanitation, especially for sewage treatment plants;
intensifying the education and information drive in schools and households
in partnership with the media; developing policies and regulations to protect
the environment and health; and studying further the effects of poor sanita-
tion on the economy and public welfare in local governments.
The World Bank has financed three sewerage projects in Metro Manila,
including MTSP. Instead of a central sewerage system (which would be
unaffordable and tough to implement in the traffic‑congested city), several
small wastewater treatment plants connected to nearby houses are being
built. ADB financed the construction of a sludge treatment plant under
the Pasig River Environmental Management and Rehabilitation Sector
Development Program, and a package treatment plant for a public market
in Liloan, Cebu, as a pilot and demonstration activity. The proposed Water
District Development Sector Project will also have a sanitation component.

The project will help improve the living conditions of the urban population
outside Metro Manila, enhance competitiveness by developing water supply
infrastructure, and build the capacity of water utilities. It will also support the
institutional development of LWUA and contribute to much‑needed sector
reform. The sanitation system component will consider low‑cost solutions
(e.g., septic tanks and septage management, package treatment plants), and
wastewater quality monitoring.
Seven septage treatment facilities (STFs) have been put up in the
municipalities of Alabel, Malapatan, Glan, Maasim, Kiamba, and Maitum
in Sarangani Province, and in Malalag, Davao del Sur, under the Southern
Mindanao Integrated Coastal Zone Management Project funded by the
Japan Bank for International Development. These STFs have been operating
since March 2008. The municipal LGUs operate and maintain the facilities.
MTPDP 2004–2010 seeks 92%–96% coverage for safe drinking
water (see MTPDP strategies in Box 1) and 86%–91% for sanitary toilet
Box 1: Strategies for Potable Water in the Medium-Term

Philippine Development Plan 2004–2010
• Provide potable water to the entire country by 2010, with priority given
to at least 200 waterless barangays (areas with less than 50% water supply
coverage) in Metro Manila and 200 waterless municipalities outside
Metro Manila through private sector or public investment.
• Ensure that all barangays and municipalities that will be provided with
water supply services have the corresponding sanitation facilities for the
proper disposal of wastewater and septage.
• Continue to provide capacity building programs and technical assistance
in water supply and sanitation planning, management, and project
implementation to all water service providers needing assistance.
• Develop technology options for water supply (e.g., solar desalination for
isolated islands, windmill technology).
• Promote private sector or public investment in the provision of water to
waterless barangays and municipalities.
• Assess groundwater resources and vulnerability in 310 priority local
government units.
• Monitor the drinking water of selected poor communities through the
Tap Watch Program.
• Complete the groundwater resource inventory and assessment in major
urban areas and surface water in rural areas, control extraction through
moratorium/stringent requirements in the grant of water permits in water-
deficient areas, and complete the registration of all water pumps,
the metering of water pumps, etc.
Table 15: Philippine, US-EPA, and WHO Ambient Air Quality

Guidelines for Common Pollutants
Time WHO US-EPA Philippines
Pollutant (averaging) (µg/m3) (µg/m3) (µg/m3)
Total suspended Daily 230
particulates (TSP) Annual 90
Particulate matter Daily 150 150
up to 10 microns Annual 50 80
(PM10)
Sulfur dioxide (SO2) Daily 125 365 180
Annual 50 80 80
Nitrogen dioxide Daily 40 — 150
(NO2) Annual 100
Ozone (O3) 1 hour 120 230 140
8 hours 15 60
Carbon monoxide 1 hour 30 mg/m3 40 mg/m3 35 mg/m3
(CO) 8 hours 10 mg/m3 10 mg/m3 10 mg/m3
Lead (Pb) 3 months 0.5 — 1.5
Annual 1.0
— = no data, µg/m3 = one millionth of a gram of pollutant per cubic meter of air,
mg/m3 = milligrams per cubic meter, US-EPA = US Environmental Protection Agency,
WHO = World Health Organization.
Notes: “Guideline” refers to the safe level of a pollutant for the given averaging time to protect
the public from acute health effects. “Annual Average” is the average of daily measurements
taken over a year. WHO no longer recommends air quality guidelines for particulate matter
because there is no safe lower limit. US‑EPA values are for primary standards.
Source: Clean Air Act of 1999; WHO/SDE/OEH/00.02 Geneva 2000.
facilities. These goals exceed the 2015 MDG targets. The MTPDP urges
strong commitment to cost recovery, commercial principles (including pri-
vate sector involvement), and decentralization of operation and maintenance
responsibilities to local governments.
Air Quality
Air quality is mixed and varies between regions.12 Despite a recent decline
in concentration in some cities, particulates regularly exceed annual ambient
12
No study has been conducted to value trans-boundary and global air pollution impact
including acid rain, global warming, and damage to stratospheric ozone in the Philippines.
This section is taken from World Bank (2002).
Figure 4: Annual Consumption of ODS and Alternatives, 2001–2006
4,000.00
3,500.00
3,000.00
2,500.00
2,000.00
1,500.00
1,000.00
500.00
0.00
2001 2002 2003 2004 2005 2006
Year
chlorofluorocarbons hydrochlorofluorocarbons hydrofluorocarbons
ODS = ozone-depleting substances.

Source: Philippine Ozone Desk, Environmental Management Bureau, Department of
Environment and Natural Resources.
standards (Table 15) at 70% of monitoring sites, and particulate matter

(PM10) levels are very high. Sulfur dioxide (SO2) concentrations have gone
down since the closure of a number of coal- and oil-fired thermal generating
stations, the largest source of this pollutant in the country. Carbon monoxide
emissions, monitored mostly in Metro Manila, almost always exceed 8-hour
standards but normally never exceed 1-hour standards. Ground‑level ozone
in Metro Manila is almost always higher than national standards. By 2000,
concentrations of lead had dropped after the complete phaseout of the sub-
stance in gasoline; ambient monitoring has also been phased out. National
greenhouse gas (GHG) emissions are 0.8 MT per capita (including land‑use
conversions), 50% of this from energy and transport, 33% from agriculture,
10% from industry, and 7% from solid waste (2000 estimates). The imple-
mentation of Montreal Protocol commitments has substantially reduced the
consumption of ozone-depleting substances (ODS). No trends in nitrogen
oxide (NOx) emissions are discernible from air quality monitoring informa-
tion. Figure 4 shows the annual consumption of ODS and alternatives.
The high levels of total suspended particulates (TSP) and PM10 in
major urban cities can be attributed to suspended dust and vehicle emissions
(Table 16). Motor vehicles are required to pass emission tests before they
can be registered in NCR and must be tested periodically. But private motor
Table 16: Annual Mean Roadside TSP Levels in Major Cities and Urban Centersin the Philippines, 200–2004
(µg/Nm3)
2003 2004
Annual Annual
Region City/Province Location Min Max Mean Min Max Mean
CAR Baguio City Session Road 84 658 229c 104 287 204c
d
1 Alaminos City Jolibee Bldg. 77 673 312 — — —
c
1 San Fernando City City Plaza 44 294 183 — — —
1 Laoag City Heroes Bldg. — — — 78 190 130a
2 Tuguegarao City Tanza 15 136 59 118 346 198c
3 San Fernando City San Jose — — — 5 514 117a
3 Bulacan Iba, Meycauayan — — — 5 604 101a
3 Bulacan Saluysoy, 14 450 148b 21 711 141a

Meycauayan
3 Cabanatuan City 24 225 102b — — —
d
3 Bulacan Wakas, Bocaue 236 1,238 859 — — —
4A Cavite City Trece Martires 11 334 84a 21 336 79
b
4A Batangas Alangilang 35 268 144 10 358 127
c
4B Calapan City Sta. Isabel 38 1,266 214 — — —
a
5 Legaspi City Barriada 14 424 87 34 444 110c
5 Iriga City San Nicolas 19 714 108b 7 473 110c
continued
Table 16 continued
2003 2004
Annual Annual
5 Naga City Panganiban Drive 14 198 84a 8 731 13c
6 lloilo City Jaro Police Stn. 55 394 182c 70 530 177c
b
6 lloilo City La Paz Plaza 16 317 104 17 374 92c
7 Cebu City Oportos Residence — — — 12 232 72a
7 Cebu City Baricuatros Res. — — — 15 646 117a
7 Cebu City Canos Residence — — — 11 395 93a
8 Tacloban City P & M Bldg. — — — 47 198 100a
9 Zamboanga City ZCMC 110 334 220c 154 376 237c
9 Zamboanga City Buenavista St. 125 336 212c 167 299 226c
9 Zamboanga City San Jose Rd. 120 288 221c 175 301 227c
9 Zamboanga City Zamboanga E. Z. — — — 14 94 39a
9 Zamboanga City Fish Port Complex — — — 22 101 47a
11 Davao City Purok 3, Sasa 27 95 56a 39 249 97a
a
11 Davao City J. P. Laurel 30 175 64 120 285 185c
11 Davao City Bangkerohan 42 262 97b — — —
b
11 Davao City Agdao 47 272 92 194 680 335d
continued
Table 16 continued
2003 2004
Annual Annual
11 Davao City Nova Tierra Subd. — — — 22 88 42
11 Davao City Quirino Ave. — — — 133 602 249c
11 Davao City Km. 10 Kabantan — — — 18 92 39a
12 General Santos Cargil (Phils.), Inc. 104 190 135b — — —
b
12 South Cotabato Banga 82 101 92 — — —
12 South Cotabato Polomolok — — — 87 151 99a
12 South Cotabato Suralla — — — 80 109 93a
12 South Cotabato — — — 83 114 95a
12 North Cotabato Makilala 83 99 91b — — —

a
13 Butuan City New Asia 45 152 83 45 185 96a
— = no data, µg/Nm3 = micrograms per normal cubic meter.
a
0–99 µg/Nm3
b
91–180 µg/Nm3
c
181–270 µg/Nm3
d
above 270 µg/Nm3
Source: EMB, National Air Quality Status Report, 2003–3004.
Table 17: Total Mass Emissions in Metro Manila, 2005

(tons per year)
Source TSP PM10 SOx NOx CO Total
Stationary 185.74
a
— 32.35 12.65 2.60 233.34
Mobile — 32,630.58 2,387.96 12,5918.50 1,165,439.00 1,326,376.04
Area — 95,649.24 113.10 2,345.83 1,304.01 98,412.18
— = no data, CO = carbon monoxide, NOx = nitrogen oxides, PM10 = particulate matter of up
to 10 microns, SOx = sulfur oxides, TSP = total suspended particulates.
a
2006 data on 1,585 air pollution sources from 3,304 air pollutive firms and establishments.
Source: EMB-NCR.
vehicle testing centers have not effectively implemented the emission testing
procedures. About 20% of the centers have been found to violate government
guidelines (EMB 2006).
About 233.3 tons per year in total mass emissions from these stationary
sources (including TSP, oxides of sulfur and nitrogen, and carbon monoxide)
were found in an EMB emission inventory of more than 3,300 establish-
ments in Metro Manila in 2006. According to an emission inventory in
Metro Manila in 2005 (Table 17), mobile sources generated around 1.3 mil-
lion tons/year, and area sources, about 98,400 tons/year.
An initial analysis in 2005 showed that the health costs of exposure to
PM10 reduce per capita incomes in Metro Manila, Davao, Cebu, and Baguio
by 2.5%–6.1%, or over $430 million in total, yearly—about $140 million from
over 2,000 premature deaths, about $120 million from over 9,000 cases of
chronic bronchitis, and about $170 million from nearly 51 million cases of
respiratory symptom-days in Metro Manila. These costs are 70% higher than
those estimated in a similar study for Metro Manila in 1992.
But while the impact of pollution on health is no doubt the most com-
pelling reason to take action, the non‑health costs—from congestion, loss of
productivity, and damage to ecosystems and physical infrastructure—are also
significant. One study estimates that in six cities, including Metro Manila,
the non-health costs of NOX and SO2 outweigh the health costs. In the case
of particulate pollution, however, the health costs are higher.
The Metro Manila Air Quality Improvement Sector Development
Program (ADB Loan 1663-PHI) in 1998–2007, enabled the Government to
implement air quality improvement programs throughout the country (EMB
2006). It designated 15 air-sheds, four of them geothermal; revised emission
standards for gasoline-fed and diesel vehicles, and set standards for hydro-
carbon emissions from motorcycles and tricycles; and reduced the propor-
tion of aromatics in gasoline from 45% to 35% and benzene from 4% to 2%,
both by volume, and the sulfur content of automotive diesel fuel to 0.05%
by weight. The improved standards, as well as the phaseout of leaded gaso-
line, have achieved a modest reduction in ambient TSP concentration in the
NCR despite the growing number of motor vehicles. A technical committee
created by the Department of Energy (DOE) set standard specifications for
diesel and two‑stroke lubricating oil, and for coco‑methyl esters as alternative
fuel for diesel or for blending with diesel. The Biofuels Act (2007) (RA 9367)
requires at least a 1% blend of bio-diesel in all diesel engine fuels, and at least
5% bio-ethanol (by volume) in all gasoline fuel sold in the country. Other
CAA provisions mandate control of pollution from mobile, stationary, and
area sources. A considerable number of taxis operating in Metro Manila now
use liquefied petroleum gas, and industries are shifting from bunker C oil to
low‑sulfur fuel or diesel oil.
Land Resources
Much of the land is susceptible to erosion. While almost half of the land
is low‑lying, large areas of the main islands are at higher altitudes. There is
substantial soil loss from agricultural practices in the upland areas. Soil loss
from annual crop cultivation in the lowlands may also be extensive (ADB
2004a). In addition, intense rainfall can cause severe erosion. Other causes of
soil erosion are mining, insufficient cover in degraded forest areas, and road
construction.13 Mining industry activities continue to find low acceptance
from communities because of the environmental havoc and the displacement
of people they cause.
Twenty-one percent of the country’s agricultural lands and 36% of non-
agricultural lands are moderately or severely eroded. There are regional varia-
tions: 38% of Mindanao’s agricultural lands, for example, were moderately or
severely eroded in the mid-1990s. Soil erosion has affected the productivity
of land,14 limited the rehabilitation or restoration of degraded lands, lowered
the quality of surface water, and modified hydrologic conditions by changing
land resources and land management.
Apart from the opportunity cost of lost earnings from well-managed
land, soil erosion has imposed high costs on downstream sectors—roads,
bridges, agricultural production areas, settlements, water districts, and others.
For example, foregone valued added from rice production was estimated to
have increased from $59,000 in 1988 to $64 million in 1997 (both at con-
13
Soil erosion from roads is sometimes ignored in estimates of soil loss and declining watershed
integrity in the Philippines. Attention is focused on deforestation. Soil loss from unpaved
roads is considered quite high. While there are no data on soil erosion and soil loss in the
country, the level of road construction in the country is quite substantial (ADB 2004a).
14
Many of these effects are described in World Bank (2000b, appendix 13).
stant 1985 prices). Silting of rivers and lake systems has shortened the life of
reservoirs, affecting both hydroelectric power and water supply. Erosion as a
primary cause of sedimentation was estimated to cause half of the pollution
in Philippine irrigation systems.
Soil loss from forestland varies with forest type and status. Unit soil
loss from an area subjected to kaingin is 250 times greater than the loss in
a primary forest; soil loss in a secondary, degraded forest is about 3.5 times
greater. A complete analysis of changes in the composition of forestland and
consequent soil erosion through the Philippine Economic, Environmental,
and Natural Resource Accounting (PEENRA) System (NSCB 2003) con-
cluded that forestland soil erosion declined by 4% yearly between 1988 and
1997. This decline was attributed to the compensatory effects of reforestation
and a drastic stop in the conversion of primary forest to other forestland types
because of the logging ban. On the other hand, road building and mining
in rural Philippines have increased in the past decade and have had major
impact on watershed integrity (ADB 2004a).
In the absence of definitive assessments of the impact of changes in for-
est cover on soil erosion and watershed integrity, whether watershed degrada-
tion is worsening is not known for certain. While the rural population has
remained relatively constant, land used for agriculture has decreased,15 result-
ing in little expansion of agriculture land in upland areas. But the negative
impact of inappropriate agricultural practices in upland areas on soil erosion
is unlikely to have changed much.
Mining and Mineral Resources
Philippine mineral resources, by government estimates, are the fifth richest in

the world.16 In 1994, the country had about 7 billion metric tons in metallic
mineral reserves and 50 billion metric tons in non-metallic reserves. Copper
made up about 72% of metallic mineral resources, and nickel, about 16%.
Among the non-metallic minerals, limestone accounted for about 39%, and
marble, 29%. The Philippines is also one of the best endowed in chromite
resources. Its refractory chromite resource in Zambales province is considered
one of the largest in the world (NSCB n.d.[b]). As of mid‑2008, the country
had 39 operating mines and more than 2,000 small-scale mines and quarries.
15
As of September 2008, 1.9 million hectares of agricultural public lands (alienable and
disposable) all over the country were covered by free patents and homestead patents issued
under the DENR–Comprehensive Agrarian Reform Program (CARP). Holders are
registering these patents at the Register of Deeds to obtain certificates of title. Through
this titling program the DENR aims to provide secure tenure to farmers and landowners to
improve their socioeconomic welfare.
16
Philippine Business Leaders Forum Inc. website, www.philippinesforum.com.
For the most part, these mineral resources are still to be fully tapped. Of the
9 million ha of mineral resources (about 30% of the total land area of 30 mil-
lion ha), less than 0.5 million ha are under exploration or development.
The Philippine mineral industry has annual sales of around $1 billion,
similar to Malaysia’s and Papua New Guinea’s but lagging behind Indonesia’s
$3.6 billion, Chile’s $13 billion, and Western Australia’s $26 billion (MGB
2004). Metals have steadily increased their contribution to total mineral
production in peso value, from 44% in 1998 to 73.3% in 2005. Gold had
the highest share, at 33.8% in 1998 and 59% in 2005. In 2002, the mineral
industry contributed 1.5% of total Philippine exports; by 2005, the contribu-
tion had increased to 2.0%. In 2006, the mining sector employed 136,000
employees, 0.4% of total employment in the country.
From 2001 to 2005, the mining and quarrying sector contributed between
1.0% (2001) and 1.7% (2005) of GDP. In 2006, its overall contribution to
GDP slipped to 1.5%. Sector growth surged in 2002 (51%) and 2003 (16.8%)
behind increases in crude oil and natural gas production from the Malampaya
Oil Rim Project. (Excluding this project, the sector grew by 21% in 2002 and
13% in 2003.) But from 2005 to 2006, the sector had negative growth, from
$1.1 billion to $967 million (both at constant 1985 prices).
The mining industry has not picked up despite attractive mineral pros-
pects because of a wide range of factors particularly perceived policy inconsis-
tencies and instabilities, especially land‑use conflicts and foreign ownership
issues, strong opposition to mining because of its environmental impact, and
the lack of domestic capital. The promotion of sustainable mineral resources
development, under the DENR Mines and Geosciences Bureau (MGB),
nonetheless continues. See Box 2 for a summary discussion of the MTPDP
strategies in the mining sector, and Box 5 for the policy agenda of the action
plan drawn up by DENR to infuse new vigor into the sector.
Urban Environment
The Philippines is one of the fastest‑urbanizing countries in the world. A

World Bank sector analysis17 notes that most urban growth is occurring
in low‑density peri-urban areas outside Metro Manila, such as Cavite and
Laguna provinces, and in major secondary cities (Metro Cebu and Metro
Davao). The urban population is 64% of the total population of 88.6 million
(2007). The high population growth rate (2.04 yearly from 2000 to 2007) is
not matched by growth in employment opportunities; urban poverty, unem-
ployment, and underemployment are therefore high.
17
www.bln0018.worldbank.org/External/Urban.
Box 2: Strategies for the Mining Sector in the Medium-Term

Promote responsible mining that adheres to the principles of sustainable
development: economic growth, environmental protection, and social equity.
Responsible mining reduces poverty and benefits local and indigenous
communities.
Launch a major program to revive the mining industry that will revitalize the
mining industry and pursue the implementation of responsible mining through
the Minerals Action Plan.
• Pursue and assist in the development of 18–23 large‑scale mining projects
that will bring an estimated $4.0–$6.0 billion in investments, and about
210,000 in direct and indirect employment.
• Resolve the issues involving mining accidents in abandoned and idle mine
areas.
– Address the remaining issues pertaining to the Marcopper Mine
Tailing Spill accident.
– Construct the final Mabatas tailings dam, covering some 30 hectares.
– Assess seven abandoned mines and implement stop-gap measures and
rehabilitation of three abandoned mines.
• Develop incentive schemes to attract international and local investors in
Mt. Diwalwal.
– Conduct core drilling within 1.5–2 years to determine the mineable
resources of Diwalwal.
– Mobilize international and local investors to develop the underground
wealth of gold, and employ the tens of thousands of miners who
might be given additional incentives of partnership or profit-sharing
arrangements.
The population is projected to reach 94 million (60% urban) by 2010,

and 128 million (75% urban) by 2030 (Table 18). More than 2 million will be
added to the urban population every year. This means that three out of every
four individuals will be living in the cities less than 25 years from now. The
total population is distributed as follows: 56% in Luzon, 24% in Mindanao,
and the remaining 20% in central Philippines (ADB 2007g).
Urban population growth, fanned by industrialization,18 exerts pres-
sure on urban infrastructure. According to an ADB study (ADB 2004b),
Metro Manila generates 6,700 tons of solid waste daily, only 720 tons of
which (11%) is recycled or composted. The rest is hauled to dumpsites,
18
Manufacturing, trade, construction, and energy generation together grew by about 3.6%
yearly (at constant 1985 prices) between 1992 and 2006.
Table 18: Urbanization Forecast for the Philippines

Population/Year 2010 2020 2030
Total population (millions) 94.0 111.8 128.1
Urban population (millions) 56.4 76.0 96.1
Rural population (millions) 37.6 35.8 32.0
Level of urbanization (%) 60.0 68.0 75.0
Source: NSCB, Manila, 2006.
illegally dumped on private land or into rivers, creeks, or bays, or burned in

the open, adding to water and air pollution.
Urban growth is also straining water and sanitation services. Twenty-
five million people lack basic sanitation and 13 million lack potable water
sources. In the last 15 years, population with access to safe drinking water
increased from 57% to 72%. Household water supply connections increased
as well, from 26% to 40% nationwide, and are now 58% in urban areas (World
Bank 2005b). Annual economic losses from water pollution are estimated
at $1.3 billion (World Bank 2003a).
Environmental Spatial Planning
The National Physical Framework Plan (2001–2030), prescribed in the

Philippine Constitution of 1987 (sec. 14, art. X) and completed in 2002, has
not been used effectively for orderly spatial development. Regional physical
framework plans are still largely separate, and even these are not adequately
taken into account in regional investment programming.
The Local Government Code (1991) (LGC) requires LGUs to pre-
pare and adopt provincial and regional physical framework plans. But LGU
capacity for such planning is quite limited. Under the CWA, programmatic
environmental impact assessment (EIA) may be made part of local physical
framework plans, by agreement between LGUs and the DENR. Compliance
would be guided by carrying capacity, based on environmental constraints and
opportunities in programmatic areas. Years after the approval of the CWA,
however, the role of programmatic EIA in physical framework planning has
yet to receive due recognition.
An ongoing ADB technical assistance (TA) project through the National
Economic and Development Authority (NEDA), now in its second phase, is
developing LGU capacity for provincial development and physical frame-
work planning. A European Commission TA is mainstreaming disaster risk
reduction in development and physical framework plans.
Two spatial planning projects are also ongoing. A $57.2 million loan
from the Japan Bank for International Cooperation ( JBIC) under one of
those projects is funding the establishment of a national database and a
geo-spatial information network, now undergoing review and approval by
the Government. The Integrated Geo-Spatial Referencing Facility project
($6.8 million), also supported by JBIC, will provide a common, consistent,
and cost‑effective geographic database for DENR, DA, LGUs, and all other
users (European Commission 2005).
To remedy institutional weaknesses in the coordination of planning
through the Housing and Urban Development Coordinating Council
(HUDCC) and deal with economic inefficiencies caused by the failure of
basic urban services to keep up with demand,19 the MTPDP proposed elevat-
ing HUDCC into a Department of Housing and Urban Development to
take charge of urban planning, development, and renewal, land-use zoning,
housing provision, regulation and finance, and marginal settlement.
Hazardous and Solid Wastes
Hazardous Wastes
The Philippines imports various chemicals, primarily for use in production.
Initial research yielded limited information about types and quantities, scat-
tered over several government departments.
The top three hazardous wastes generated are inorganic, alkali, and
organic wastes (Table 19). Fifty percent is exported for disposal (or treat-
ment)20 and the rest is either treated locally or temporarily stored on‑site.
Hazardous waste in Metro Manila is projected to rise from 232,000 tons/year
in 1995 to 659,000 tons/year by 2010. Industrial firms, lacking proper facili-
ties for segregating or storing hazardous wastes, often commingle these with
solid wastes.
The Philippines has registered treatment, storage, and disposal facilities
for hazardous wastes (19 in or near Metro Manila, 7 in Mindanao, 17 in
Northern Luzon, and 43 in Southern Tagalog) (EMB 2008). Other urban
and industrialized cities have limited capacity to treat hazardous wastes.
Illegal disposal is rampant.
19
The fast-growing housing backlog was projected to be 3.75 million units between 2005 and
2010 (NEDA 2004).
20
The current practice (approved by the DENR) is to export PCB wastes and PCB‑contaminated
equipment at a relatively high cost ($4–$9 per kilo, or $4,000–$9,000 per ton) to the United
Kingdom or other European countries for treatment through incineration.
Table 19: Chemical Waste Generation and Trade

Generation Export
(metric (metric
Type of Chemical Waste1 tons/year) tons/year)
Plating waste with cyanide 11,233 1,661
Acid wastes 26,900 1,146
Alkali wastes 56,099 43,470
Inorganic chemical wastes 67,756 32,447
Reactive chemical wastes 347 249
Paints, resins, lattices, dyes, adhesives, organic sludge 14,769 12,602
Organic solvent 2,175 1,204
Putrescible/Organic wastes 30,588 12,429
Textile 81 71
Oil 22,549 8,632
Containers 3,499 2,097
Immobilized wastes 516 391
Organic chemicals 16,226 1,426
Pathological/Infectious wastes 15,467 12,526
Asbestos 10,145 9,984
Drug wastes, medicines 1 1
Pesticides 1 1
Total 278,351 140,336
Source: JICA-DENR Study on Hazardous Waste Management in the Republic of the
Philippines (Phase 1), Final Report, June 2001.
Not enough research has been done on chemical use and contamina-
tion in agriculture, drinking water, soil, and groundwater in the Philippines
to identify hot spots and to support stricter waste management policies. A
study by Weston International at the former Clark Air Base in Pampanga
in August 1997 detected concentrations of the pesticide dieldrin above
the drinking‑water quality standard of 0.00003 milligrams per liter at four
operational wells and two back-up wells. The dieldrin could not be definitely
traced to its source. But it was thought to be a breakdown product of the
related pesticide aldrin, which may have been used to control insects on the
golf course. The wells containing dieldrin were near or down‑gradient of
the golf course.
Proof of soil contamination is also limited in the Philippines. Available

studies are mostly from the former US military bases. The Asian Regional
Research Program on Environmental Technology of De La Salle University
unearthed evidence of polychlorinated biphenyl (PCB) releases in soil
in certain areas of Clark Air Base. UNDP, the United Nations Industrial
Development Organization, and GEF plan to set up a demonstration
project for the destruction of waste PCB stockpiles using non-combustion
technology.
Private companies among the country’s top 1,000 are increasingly adopting
voluntary environmental guidelines such as the Philippine Business Charter
for Sustainable Development, Responsible Care®,21 or the International
Standards Organization (ISO) 14000. Electronic manufacturers in particular,
mostly subsidiaries of leading electronic companies in developed countries
where environmental laws are strictly enforced, receive regular training from
their parent companies in environmental conservation and cost‑effective
compliance with environmental requirements. Others are prompted to adopt
the guidelines by foreign and locally funded projects like the Metropolitan
Environmental Improvement Project and the Industrial Environmental
Management Project. These projects showed that environmental improve-
ment is not just a cost factor but also beneficial to the bottom line.
Box 3 sums up the MTPDP strategies for dealing with toxic and hazard-
ous wastes.
Solid Wastes
The Ecological Solid Waste Management Act (ESWMA) (RA 9003) was
approved in 2001 but its implementation has been slow, despite the creation
of the National Solid Waste Management Commission (NSWMC) to over-
see its implementation. LGUs are primarily responsible for implementing
the ESWMA.
According to the national solid waste management framework prepared
in 2004 by the NSWMC, the country generated about 19,700 tons per day of
garbage in 2000, or about 7.2 million tons per year. An increase to more than
10 million tons per year is expected by 2010.
The NSWMC reported in 2007 that Metro Manila produces about
7,100 tons/day of waste, about 6% more than estimated in the ADB-funded
Metro Manila Solid Waste Management study in 2002 (TA 3848-PHI). The
21
A global chemical industry program of cooperation for the continuous improvement of the
health, safety, and environmental performance of chemical products and processes. The
Samahan sa Pilipinas ng mga Industriyang Kimika (Chemical Industries Association of
the Philippines) subscribes to the Responsible Care doctrine and commits the whole
organization to promote, monitor, and support its members in implementing its initiatives.
Box 3: Strategies for Hazardous Waste in the Medium-Term

• Establish a management system and facilities for toxic and hazardous
wastes.
• Complete the inventory of toxic and hazardous wastes.
• Complete the registration of all establishments using toxic and hazardous
wastes and closely monitor 500 companies using cyanide, mercury,
asbestos, and other highly toxic chemicals like the polychlorinated
biphenyls (PCBs).
• Initiate the establishment of the first facility for the treatment of toxic and
hazardous wastes, especially for those located in economic zones.
• Establish a mechanism for the retrieval and disposal of millions of
cell‑phone batteries by 2007.
• Pursue efficient health‑care waste collection in 197 accredited hospitals
in Metro Manila and increase health‑care waste collection and treatment
outside Metro Manila by 40%.
• Conduct clean-up of former military bases in region 3 (about 50% of
identified contaminated sites).
waste is collected by the city in only 3 of the 17 LGUs (Valenzuela, Pateros,

and Marikina); in the other LGUs waste collection is contracted out to the
private sector. Metro Manila has no open dumpsites.22 The rehabilitated
Payatas (Quezon City) controlled disposal facility, a registered project under
the Clean Development Mechanism (CDM), is now recovering methane and
produces about 116,339 tonnes of carbon dioxide equivalent (tCO2e) in certi-
fied emission reductions per year. The country has 16 sanitary landfills and is
building an additional 19. These landfills have a capacity of about 9,300 tons
per day. Two hundred eleven more sanitary landfills are proposed and are
expected to be operating by 2010.
A JICA-funded study on the recycling industry in the Philippines was
done in 2007 for the Department of Trade and Industry–Board of Investments.
The department is mandated under the ESWMA to develop the market
for recyclable materials. A master plan was developed for disseminating
information about domestic recyclable materials and recycling industries to
stakeholders, establishing proper segregation at source and strong, sustainable
links between the source and the final receiver, and introducing incentives
(financial and nonfinancial) to promote recycling and other support activities.
22
But there are 713 open dumpsites and 271 controlled dumpsites elsewhere in the country,
most of them in region 7 (Central Visayas).
The study also produced recycling guidelines for waste generators, dealers of
recyclable materials, and recyclers, to maximize the domestic use of recyclable
materials.
Creative recycling programs are in operation around the country. The
Philippine Business for the Environment (PBE), with a leading commercial
mall and the DENR, has organized a once-a-month “trash‑to‑cash” recycling
market in branches of the mall. A residential subdivision south of Manila
offers discount stubs in exchange for waste plastic and paper. The stubs can
be used at a nearby McDonald’s or to pay the monthly association dues of
residents.
Information about recycling technologies is available on the website of
the Solid Waste Management Association of the Philippines, a nonprofit
membership organization of solid waste practitioners from LGUs, national
government agencies, NGOs, and the academe. The association also assists
LGUs in particular in the technical aspects of solid waste management
through training, the preparation of solid waste management programs, and
waste analysis and characterization.
Climate Change
The Philippines was among the first countries to respond to the challenges
posed by climate change. The Inter-Agency Committee on Climate Change,
created by the Government in May 1991, coordinates activities and proposes
policies related to climate change, and prepares the Philippine position at
United Nations Framework Convention on Climate Change (UNFCCC)
negotiations.
In March 2000, the Philippines submitted to the UNFCCC its Initial
National Communication on Climate Change, containing comprehensive
information about the country’s compliance with its commitments and its
vulnerability to climate change.23 According to the report, the Philippines
released 100,738 kilotons of CO2 equivalent into the atmosphere in 1994.
This total represented the combined GHG emissions from the energy (49%
of the total), agriculture (33%), industry (11%), and wastes (7%) sectors, and
from the net uptake (sink) of GHGs from the land-use change and forestry
(LUCF) sector.24 GHG emissions were projected to increase by almost 94%
to 195,091 kilotons of CO2 equivalent by 2008, for an annual growth rate of
23
The Government is now preparing the Second National Communication, with the assistance
of UNDP.
24
The national GHG total minus the LUCF contribution is 100,864 kilotons of CO2 equivalent.
Activities and processes associated with the LUCF sector are estimated to sequester about
126 kilotons of CO2, a measly 0.1% of the national total.
about 4.8%. Because various subsectors were held constant at 1994 levels, this
projection may be a conservative one (DENR 2000).
Several studies in the Philippines on a wide range of climate‑change
topics—epidemiological studies, sea-level changes, tropical cyclone intensity
changes, and vulnerability assessments, among others—have been com-
pleted, are ongoing, or are being planned. The Government’s Philippine
Atmospheric Geophysical and Astronomical Services Administration is in
the forefront of systematic observation of climate and weather patterns in
the country.
The Government also continuously provides the policy framework and
road map to guide the fulfillment of its Kyoto Protocol commitments. Plans
and programs in this regard, as stated in the Initial National Communication
on Climate Change, include sustainable development programs; systematic
observation and research projects; education, training, and public awareness
programs; vulnerability assessment of major sectors and other sectors; adapta-
tion strategies; and mitigation strategies.
After the Kyoto Protocol was ratified in 2003, DENR was designated
as the national authority for CDM, responsible for approving the country’s
CDM projects. By February 2008, 37 projects with total estimated certified
emission reductions of 995,940 tCO2e per year had been approved (Figure 5).
Twenty-eight were biogas projects (animal waste, wastewater treatment, rice
husk), two were hydropower and composting projects, and the rest were wind
power, geothermal power, waste/gas/heat use, landfill gas recovery and use,
and blended cement projects. Sixteen projects, with 481,863 tCO2e per year
in certified emission reductions, had been registered with the CDM executive
board. As of March 2008, the country ranked eighth globally in the number
of projects registered.
Renewable Energy
As of December 2007, the country’s total installed generating capacity was

15,937 megawatts (MW). Coal-fired power plants, the majority of them
in the Luzon grid, had the largest share at 26.4% (4,213 MW). Oil-based
power plants accounted for 22.7% (3,616 MW); hydroelectric power plants,
the main source of electricity in the Mindanao grid, for 20.6% (3,289 MW);
natural gas–fired power plants in the Luzon grid, for 17.8% (2,834 MW);
geothermal power plants, mostly in the Visayas grid, for 12.3% (1,958 MW);
and other forms of renewable energy such as wind and solar, for only 0.2%.25
Aggregate dependable capacity in 2005 was 13,595 MW. This total was
expected to reach 13,805 MW by 2006 and to add 3,917 MW by 2015—
25
www.doe.gov.ph/EP/Powerstat.htm.
Figure 5: CDM Projects with Letters of Approval, February 2008
Methane avoidance
Landfill gas recovery (composting), 2 (5%)
and utilization, 1 (3%)
Blended cement, 1 (3%)
Waste gas/Heat
utilization, 1 (3%)
Biogas (animal
Hydropower, 2 (5%) waste), 16 (43%)
Geothermal power, 1 (3%)
Wind power, 1 (3%)
Biomass (rice husk), 2 (5%)
Biomass (bagasse), 2 (5%)
Biogas (wastewater treatment), 8 (22%)
CDM = Clean Development Mechanism.

Source: www.cdmdna.emb.gov.ph
517 MW from committed power projects, and 3,400 MW from indicative

power projects—to meet power requirements. The committed power projects
include renewable energy projects like the Northern Luzon Wind Power
Project, Phases I and II, which has a combined capacity of 38.3 MW; the
49 MW Northern Negros Geothermal Project; and the 20 MW Nasulo
Geothermal Project. The indicative power projects include Talisay Bioenergy,
Cabalian Geothermal, Dauin Geothermal, Villasiga Hydropower, Tagoloan
Hydropower, Sibulan Hydropower, and Mindanao 3 Geothermal Project
(Department of Energy 2006).
DOE foresees renewable energy growing by an average of 2.4% yearly
in absolute terms in 2003–2013 and providing up to 40% of the country’s
primary energy requirements. Biomass, micro-hydro, solar, and wind are
expected to be the largest contributors, with an average share of 27.5%. Hydro
and geothermal will make up the balance and continue to be a significant
source of electric power.26
26
www.doe.gov.ph/ER/Renergy.htm.
An alternative scenario sets higher targets for renewable energy’s con-

tribution to installed generating capacity. These targets assume improved
programs and strategies, higher production, market-based industrial compe-
tition, and the availability of new international financing schemes like CDM.
Renewable energy–based capacity is expected to double to 9,147 MW by
2013. This means that more renewable energy–fueled power plants must be
commissioned by 2013 to make up the difference.27
Environmental Emergencies
The Philippines has experienced major environmental emergencies in the

past 5 years, some with long-term effects. Efficient implementation and
enforcement of related laws could have prevented or mitigated these natural
disasters.
Guimaras Oil Spill. The worst oil spill in the country’s history occurred in
August 2006, when a motor tanker sank in Panay Gulf off Guimaras prov-
ince, spilling more than 50,000 gallons of oil into the sea and polluting more
than 1,000 ha of mangroves and 26 ha of the Taclong Island Marine Reserve.
The environmental disaster affected 239 kilometers of coastline and dam-
aged mangrove swamps, seaweed plantations, and coral reefs with important
diversities. Marine scientists recorded a 65% drop in fish abundance in the
surrounding waters.28 The incident not only created a major environmental
disaster but also revealed the weakness of the country’s response to environ-
mental emergencies because of lack of equipment, technical expertise, coher-
ent policies, and institutional capacity and coordination.
Flooding and Landslides. In November 2004, flooding and landslides caused

by typhoon in the provinces of Quezon, Aurora, and Nueva Ecija, killed
nearly 1,000 persons and affected about 3 million others. Another typhoon in
December 2004 triggered massive floods in northern and central Philippines,
affecting an estimated 240,000 persons. Then in February 2006, after days
of heavy rainfall, a landslide struck the village of Guinsaugon near the town
of St. Bernard in Southern Leyte province, in the eastern Visayas. More
than 1,000 went missing and 139 died. The landslide, estimated to be up to
9 meters deep in some areas and covering about 3 km2 (1.15 square miles),
blocked the tributaries of a major river and caused flooding in nearby areas.
27
www.doe.gov.ph/ER/Renergy.htm.
28
Philippine Daily Inquirer, 3 November 2007.
The nationwide forest program launched by the Development Bank of

the Philippines (DBP) in April 2005, in partnership with people’s organiza-
tions, state universities and colleges, and provincial and municipal LGUs,
should make such catastrophic events less likely. The program supports and
encourages the reforestation of open areas by planting high‑value fruit trees
and other useful plant species, rehabilitates coastal areas by planting man-
groves, and establishes tree parks to offset air pollution. In less than 2 years,
the program had started 18 forest projects and planted useful plant and tree
species on about 4,000 ha, providing better livelihood opportunities for some
2,500 poor families.
A TA project of the Government of Japan in September 2006 studied
selected priority flood‑risk areas throughout the Philippines and prepared
flood mitigation plans. Multi-hazard mapping has also been started by the
Government with UNDP funding, to guide planning and evacuation in
high‑risk areas, and measures to prevent non-structural disasters have been
initiated by communities in the province of Camiguin.
MTPDP strategies for forestalling such natural disasters and coping
with their occurrence are summarized in Box 4.
Box 4: Strategies for Environmental Emergencies in the

Medium-Term Philippine Development Plan 2004–2010
Mitigate the occurrence of natural disasters to prevent the loss of lives and
properties.
Nonstructural measures
• Complete the geo-hazard mapping of the remaining 13 regions.
• Conduct soil stability measures (e.g., reforestation and planting in river
banks) for landslide‑vulnerable areas.
• Ensure integration of disaster preparedness and management strategy in
the development planning process at all levels of governance. This will
be done through the following activities, among others: periodic risk
assessments, updating of land-use policy based on the assessment, conduct
of disaster management orientation and training among officials of local
government units (LGUs) and concerned local bodies, institutionalization
of community-based mechanisms for disaster management (e.g., inclusion
of legitimate disaster management organization in disaster coordinating
councils), and advocacy for the Strengthening the Philippine Disaster
Management Capability bill.
continued
Box 4 continued
Structural measures
• Keep at the optimum the conveyance capacities of river channel floodways,

drainage canals, esteros through riverbank protection, dredging or desilting,
observance of river easements, relocation of informal settlers, proper
disposal of garbage, and efficient maintenance in coordination with LGUs.
• Provide adequate flood control and drainage facilities in all flood and
sediment disaster–prone areas to mitigate flooding, and rehabilitate and
improve facilities. The priority flood management projects are as follows:
– Mt. Pinatubo Hazard Urgent Mitigation II
– Mt. Pinatubo Hazard Urgent Mitigation III
– Iloilo Flood Control
– Lower Agusan Flood Control Project Stage 1, Phase 2
– Bicol River Basin and Watershed Management
– Agno and Allied Rivers Flood Control
– Kalookan-Malabon-Navotas-Valenzuela (KAMANAVA)
Flood Control
– Metro Manila Flood Control Project–West of Manggahan Floodway
– Pasig–Marikina River Channel Improvement Project Phase II
– Cagayan River Flood Control Project
– Panay River Flood Control Project
– Lower Cotabato River Flood Control Project
Box 5: Policy Agenda of the Minerals Action Plan

• In recognition of the critical role of investments in the minerals industry
for national development and poverty reduction, provide support
mechanisms for a sustained mineral exploration program (including
simplified procedures for the grant of mining tenements, responsive
research and development priorities, and capability building for industry
manpower).
• Institute clear, stable, and predictable investment and regulatory policies to
facilitate investments in mining, leading to a prosperous minerals industry.
• Pursue value addition as a means of optimizing benefits from minerals
by developing downstream industries to achieve greater productivity and
efficiency.
• Promote small‑scale mining as a formal sector of the minerals industry
and as part of the development initiative for both downstream and
upstream industries.
continued
Box 5 continued
• Adopt efficient technologies to ensure the judicious extraction and

optimum use of nonrenewable mineral resources to enhance sustainability.
• Make the protection of the environment a paramount consideration in
mining operations, and include mitigation and progressive rehabilitation
measures as integral components. Support decommissioning and final
mine rehabilitation with the most appropriate environmental surety.
• Safeguard the ecological environmental sustainability of areas affected
by mining operations (including biodiversity resources and small island
ecosystems) to protect public welfare, safety, and environmental quality.
Protect the rights of affected communities (including the rights of
indigenous cultural communities, especially the requirement to obtain free
and prior informed consent).
• Pursue mining operations within the framework of multiple land use and
sustainable use of mineralized areas.
• Accord top priority to the remediation and rehabilitation of abandoned
mines and sites to address the negative impact of past mining projects.
• Equitably share the economic and social benefits derived from
mining among the various units of government as well as the affected
communities.
• Vigorously pursue sustained information, education, and communication
campaigns for the minerals industry, jointly with industry stakeholders,
to enhance public awareness and respect for the rights of communities,
and reach informed decisions on mining and related projects at both the
national and the local levels.
Chemical Spills. A hazardous waste transporter and the plastic manufactur-

ing company whose chemical waste it was dumping into the Marilao River
in Bulacan province were charged for violating the Toxic Substances and
Hazardous and Nuclear Wastes Act (RA 6969) and Provincial Environmental
Ordinance PO 95-01. Untreated domestic and industrial wastes from refin-
eries, jewelry makers, tanneries, piggeries, and other manufacturing plants
make the Marilao River one of the country’s dirtiest rivers, according to
EMB monitoring reports. ADB is supporting a pilot activity to monitor
water quality along the river and to minimize pollution by working with the
municipalities of Marilao, Meycauayan, and Obando and the provincial
government of Bulacan. With JICA funding, EMB is also working to
demarcate the Marilao–Meycauayan River as a water quality management
area (WQMA) under the CWA.
In February 2006, a chemical spill occurred in a school in Parañaque
City when a student accidentally opened a beaker containing mercury,
exposing about 35 other students to toxic vapor. The problem pointed to the
inadequacy of the emergency response, and the lack of capacity to monitor
mercury and to clean up and decontaminate the site. School authorities were
also largely unaware of the hazards of mercury and other toxic chemicals. The
clean-up was costly and required the help of the United States Environmental
Protection Agency.
Fish Kill. In 2002, the largest fish kill reported in the country occurred in
Pangasinan. Total damage was estimated at $8.2 million. Before the inci-
dent, there were recorded increases in ammonia (by 110%), nitrite (30%),
nitrate (25%), phosphate (400%), TSS (222%), and chlorophyll A (140%)
in area surface waters, as a result of the expansion of mariculture activities.
Another fish‑kill incident took place in Dalipuga, Iligan, that same year.
In 2003, fish kill in Ilagan, Isabela, resulted in about $106,000 in damage
(EMB 2007a). These incidents showed the Government’s institutional weak-
nesses in responding to environmental emergencies. Besides being short of
manpower and financial resources, it lacks proper response and coordination
procedures.
Regional Environmental Concerns
Even as the country continues to focus on local environmental issues and

problems, it is also active in regional environmental initiatives through the
Association of Southeast Asian Nations (ASEAN), the Brunei Darussalam–
Indonesia–Malaysia–Philippines East ASEAN Growth Area (BIMP-
EAGA), and initiatives like the Sulu-Sulawesi marine eco-region, the Heart
of Borneo, and the Coral Triangle Initiative.
In February 2001, the ASEAN Working Group on Multilateral
Environmental Agreements collaborated with the United Nations University,
the Global Environment Information Centre, and UNEP on a case study to
look into the possibility of synergies and coordination among multilateral
environmental agreements. The countries are sharing experiences in prepar-
ing national implementation plans, adopting appropriate technologies for risk
management and emergency response, establishing a proper institutional and
legal framework for enforcement, increasing public awareness, and identify-
ing capacity building needs.
The BIMP-EAGA cluster on natural resources is promoting coopera-
tion in ecotourism; environmental awareness, and environmental resources
development and conservation; forest development and conservation; forest
fire management; policy development and implementation; research and
development, and information and technical exchange; and human resources
development.
Regulatory and Institutional Framework
Policy and Regulatory Framework
The Government’s activities in ENR management are guided by the

Philippine Environmental Policy (1977) (Presidential Decree [PD] 1151),
the Philippine Environment Code (1977) (PD 1152), the Philippine National
Strategy for Sustainable Development (1989), and the National Action Plan
for Sustainable Development (1996) (Philippine Agenda 21). The elements
of Philippine Agenda 21 are summarized in Box 6.
Box 6: Elements of Philippine Agenda 21

Philippine Agenda 21 (PA 21) is the country’s blueprint for sustainable
development. It describes a path for individuals, families, households, and
communities, and an action plan for each ecosystem (coastal/marine, freshwater,
upland, lowland, and urban) and across ecosystems in consideration of the
interaction of the various lifescapes and landscapes found in them. The path
is grounded on respect and active advocacy for the empowerment of various
groups in the society to manage the economy, critical resources, society and
culture, politics and governance, and foreign relations.
PA 21 departs from traditional development thinking that emphasizes sector-
based and macro concerns. It promotes harmony and achieves sustainability by
emphasizing:
• A scale of intervention that is primarily area-based;
• Integrated island development approaches where applicable, in recognition
of the archipelagic character of the Philippines; and
• People and the integrity of nature. Because basic sectors have an important
role to play in achieving equity and managing the ecosystems that sustain
life, PA 21 promotes the strengthening of the roles, relationships, and
interactions between and among stakeholders in government, civil society,
labor, and business.
PA 21 envisions a better quality of life for all Filipinos through the development
of a just, moral and creative, spiritual, economically vibrant, caring, diverse
yet cohesive society characterized by appropriate productivity, participatory,
and democratic processes, and living in harmony and within the limits of the
carrying capacity of nature and the integrity of creation.
PA 21 was adopted on 26 September 1996, with the issuance of Memorandum
Order 399 which identified the roles of the Philippine Council for Sustainable
Development and each sector in the operationalization of PA 21. The action
agenda is based on the imperatives of the current national situation and
emerging landscape for sustainable development.
continued
Box 6 continued
PA 21 is a dynamic document that will continue to evolve as new challenges

and opportunities emerge.
Local Agenda 21. PA 21 emphasizes the importance of localization—
the formulation of a local sustainable development action agenda, and the
establishment of local sustainable development councils to implement the
agenda—as a strategy for its implementation. PA 21 sees that localization will
ensure that sustainable development takes root in each region, province, city,
and municipality.
On 25 January 1999, Memorandum Order No. 47 was issued by the Office of
the President to strengthen the operationalization and localization of PA 21
and to monitor its implementation.
A number of regions have already formulated their own Local Agenda 21,
serving as the region’s guide and springboard for the formulation by the local
governments, regional line agencies, and all other entities of their respective
sustainable development agendas.
Business Agenda 21. In 1998, the Philippine Business for Environment was
commissioned to consolidate the various medium‑ and long-term initiatives of
industry associations into an integrated plan, to be called Philippine Business
Agenda 21 (BA 21). This was under the Private Sector Participation in
Managing the Environment (PRIME) project of the Philippine Government.
BA 21 was completed and released in May 2000.
Source: http://pcsd.neda.gov.ph.
Major Legal Instruments

The commitment of the Government to environmental protection and ENR
management is expressed in a comprehensive legal and regulatory regime for
the sector.29
The following major ENR laws were passed in previous decades: the
Fisheries Code (1998), the Forestry Code (1975), the Water Code (1976),
the Pollution Control Law (1976), the Philippine Environmental Impact
Statement System (1978), the Toxic Substances and Hazardous and
29
Environmental laws passed in the 1970s (under martial law) took the form of presidential
decrees (PDs). After martial law, other laws, mostly in the form of republic acts (RAs),
were passed. Government departments issue procedures and policies as authorized under
department administrative orders (DAOs). The President’s Office also issues policy directions
and administrative orders through executive orders (EOs).
Nuclear Wastes Control Act (1990) (RA 6969), the NIPAS Act (1992),
the Comprehensive Agrarian Reform Law (1987), the Indigenous Peoples
Rights Act (1997), the Clean Air Act (1999) (RA 8749), the Agriculture and
Fisheries Modernization Act (1997), and the Philippine Mining Act (1995).
Major ENR laws in the past 10 years include the Ecological Solid Waste
Management Act (2000) (RA 9003), the Wildlife Resources Conservation
and Protection Act (2001) (RA 9147), the National Caves and Cave Resources
Act (2001) (RA 9072), the Public Land Act (2002) (RA 9176), the Clean
Water Act (2004) (RA 9275), and the Biofuels Act (2006) (RA 9367). Major
ENR laws and regulations are listed in Appendix 2.
The Local Government Code (LGC) (RA 7160), although not an ENR
law, has provisions pertinent to ENR laws and regulations. It delegates to
provincial and municipal LGUs certain environmental protection functions
of DENR including the adoption of forestland conservation measures, the
preparation and approval of environmental protection ordinances and codes,
the review of land-use plans and zoning ordinances, and the creation of ENR
offices.
The LGC also requires all municipalities to rationalize their land man-
agement plans and integrate them into the comprehensive land‑use plan
(CLUP) for their locality. In 1992, DENR issued Administrative Order 30
prescribing guidelines for the transfer and implementation of DENR forest
management functions. Six years later, DENR, DILG, and the LGUs jointly
released a manual of procedures for the devolution of forest management
functions and stronger partnership between the LGUs and the DENR.
Major Environmental and Natural Resources Plans and Programs

The sector or agency strategies and plans for ENR management and protec-
tion include the National Biodiversity Strategy and Action Plan (1997) and
its 2002 update, the Philippine Biodiversity Conservation Priority-Setting
Program (2001), the Key Biodiversity Areas approach, the National Forestry
Action Plan (1995), the Master Plan for Water Resources Management
(1998), the National Air Quality Improvement Framework and Action
Plan as part of the implementing rules and regulations of CAA (1999), the
Renewable Energy Policy Framework (2003), the National Implementation
Plan for the Stockholm Convention on Persistent Organic Pollutants (2006),
the National Integrated Coastal Management Program (2006), and the River
Basin Management and Development Master Plan (2008).
Other sector or agency strategies and plans are the IWRMF and the
IWQMF, CWA requirements slated for adoption; the medium-term
Integrated Archipelagic Development Plan to be prepared as part of the
implementation of the Philippine sustainable archipelagic development
framework; and the Framework Plan for Environment and Natural Resources
Management. The CWA requires two other major programs: a National

Sewerage and Septage Management Program (NSSMP), and a National
Research and Development Program for the Prevention and Control of Water
Pollution. NSSMP preparation was initiated by the Department of Public
Works and Highways (DPWH), through an interagency committee under
the Local Waterworks Utilities Administration (LWUA), but the research
and development program has not been started.
Executive orders (EOs) signed by the President include EO 318
(Promoting Sustainable Forest Management in the Philippines) (2004),
updating the Revised Forestry Code of 1975;30 EO 533 (2006), providing for
the adoption of integrated coastal management (ICM) as a national strategy
and the development of a national ICM program; EO 510 (2006), creating
the River Basin Control Office (RBCO) under the DENR; EO 578 (2006),
establishing the national policy on biodiversity; and EO 406 (1997), creating
the PEENRA system.
DENR priorities follow the major government frameworks, particu-
larly MTPDP, the Philippine Strategy for Sustainable Development the
President’s 10-Point Agenda, and the MDGs.
International and Regional Commitments

The Philippines has signed international and regional environmental agree-
ments on biodiversity, hazardous chemicals and pesticides, ODS, persistent
organic pollutants, hazardous wastes, climate change, trade, and the environ-
ment (Box 7) and has fulfilled its initial obligations through donor financing.
The DENR is the focal point for these international commitments: the
Basel Convention on the Control of Transboundary Movements of Hazardous
Wastes and Their Disposal (1989), the Montreal Protocol on Substances
that Deplete the Ozone Layer (1987), UNFCCC (1994), the Rotterdam
Convention on Prior Informed Consent (2004), the International Tropical
Timber Agreement (1983), the Convention on Biological Diversity (1992),
CITES (1973), the Convention on the Conservation of Migratory Species of
Wild Animals (1983), the Ramsar Convention on Wetlands of International
Importance (1971), and the Convention Concerning the Protection of the
World Cultural and Natural Heritage (World Heritage Convention) (1972).
30
EO 318 cites the following guiding principles: delineation, classification, and demarcation
of stateland forests; holistic, sustainable, and integrated development of forestry resources;
community-based forest conservation and development; incentives to enhance private
investments, economic contribution, and global competitiveness of forest-based industries;
proper valuation and pricing of forestry resources and financing of SFM; and institutional
support for SFM.
Box 7: International and Regional Environmental Agreements

Convention Date Ratified
Biodiversity
1972 World Heritage Convention 1972
1992 Convention on Biological Diversity (CBD) October 1993
1973 Convention on International Trade in Endangered August 1981
Species of Wild Fauna and Flora (CITES)
1979 Convention on the Conservation of Migratory March 1993
Species of Wild Animals (CMS)
1971 Convention on Wetlands (Ramsar Convention) November 1994
2000 Cartagena Protocol on Biosafety May 2000
2004 Sulu-Sulawesi Marine Eco-region (SSME) 2004
Conservation Plan
Marine Affairs
1982 United Nations Convention on the Law May 1984
of the Sea (UNCLOS)
International Convention for the Prevention 1973, 1978
of Pollution from Ships (MARPOL)
Global Climate
Montreal Protocol for Phaseout of Ozone-Depleting March 1991
Substances
Vienna Convention 17 July 1991
London Amendment August 1993
United Nations Framework Convention on Climate August 1994
Change
Kyoto Protocol April 1998
United Nations Convention to Combat Desertification 10 February 2000
Hazardous Wastes and Materials
Basel Convention on the Control of Transboundary October 1993
Movement of Hazardous Wastes and their Disposal
Stockholm Convention on Persistent Organic May 2001
Pollutants
Rotterdam Convention on the Prior Informed Consent September 1998
Procedure for Certain Hazardous Chemicals and
Pesticides in International Trade
International Cultural and Historical Resources
Convention Concerning the Protection of the World May 1985
Cultural and Natural Heritage
continued
Box 7 continued
Convention Date Ratified

Forestry
International Tropical Timber Agreement November 1983
ASEAN Regional Agreements on Transnational Issues
Cebu Resolution on Sustainable Development 2006
Yangon Resolution on Sustainable Development 2003
ASEAN Agreement on Transboundary Haze Pollution 2002
Jakarta Declaration on Environment and Development 1997
Bandar Seri Begawan Resolution on Environment and 1994
Development
Singapore Resolution on Environment and 1992
Development
The Kuala Lumpur Accord on Environment and 1990
Development
Jakarta Resolution on Sustainable Development 1987
Agreement on the Conservation of Nature and Natural 1985
Resources
ASEAN Heritage Parks and Reserves 1984
(reiterated
in 2003)
Bangkok Declaration on the ASEAN Environment 1984
Manila Declaration on the ASEAN Environment 1981
ASEAN Working Groups on Environment
Working Group on Multilateral Environmental Agreements
Working Group on Nature Conservation and Biodiversity
Working Group on Coastal and Marine Environment
Working Group on Environmentally Sustainable Cities
The Basel Convention recognizes that the transport of hazardous wastes

should conform to relevant international conventions. It also requires “envi-
ronmentally sound disposal” of hazardous wastes (RA 6969, RA 8749). As
of 2007, the EMB had registered about 6,929 industries and 825 hospitals as
hazardous waste generators (HWGs).
The Montreal Protocol calls for a 50% reduction in chloroflourocarbons
(CFCs) by 2000 and a complete phaseout by 2010 (Figure 6 shows the pattern
of CFC consumption in the country). It also imposes measures to control the
manufacture, export, and import of ODS. Compliance with this international
commitment is prescribed in RA 6969 and RA 8749. As of 2006, imports of
Figure 6: CFC Consumption, 1995–2005
4,000
3,424.92
3,500
2,906.31
3,029.37
2,637.63
3,000 3018 3018 3018 3018 3018 3018
2,090.79
2,500
2,036.59
2,049.3
2,000
1,485.34
1,422.4
1,263.39
1,500 1509 1509
1,049.5
1,000
500 453 453 453
0 0
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Total CFCs Montreal Protocol
CFC = chlorofluorocarbon.
Source: Environmental Management Bureau, Department of Environment and Natural
Resources.
substances with ozone-depleting potential (ODP) had been reduced by 55%

of the baseline level to 1,509 ODP MT.
UNFCCC hopes to “stabiliz[e]…greenhouse gas concentrations in the
atmosphere [to] prevent dangerous anthropogenic interference with the cli-
mate system.” In the Philippines this objective is being managed through
RA 8749. CDM, established under article 12 of the Kyoto Protocol, is being
implemented in the Philippines through the DENR.
The Philippines, a founding member of ASEAN, helped formulate the
ASEAN Institutional Framework for Environmental Cooperation. It is also a
member of the ASEAN Senior Officers on Environment, which meets yearly
to plan, implement, and monitor regional environmental programs and activi-
ties. Participants at the 10th ASEAN Ministerial Meeting on the Environment
in November 2006, among other things, launched the Third ASEAN State
of the Environment Report 2006; expressed full support for the promotion of
biodiversity conservation by the ASEAN Centre for Biodiversity, hosted by
the Philippines; agreed to speed up the signing of the ASEAN Framework
Agreement regarding access to biological and genetic resources and equi-
table sharing of the benefits from their use; and recognized the importance
of strengthening national and regional efforts to enforce environmental laws
against the illegal trade in wildlife, illegal logging, and other issues.
The Philippines, through the DENR, also hosts the UNDP regional
program Partnerships in Environmental Management for the Seas of East
Asia (PEMSEA), which has evolved from a regional project into a regional
operating mechanism since it started in 1994.
Another regional cooperation network, BIMP-EAGA, was launched
in Davao City in March 1994 to realize socially acceptable and sustainable
economic development leading to full participation in ASEAN growth. To
increase trade, investments, and tourism in the subregion—its immediate
goal—it is facilitating the movement of people, goods, and services and the
development of vital infrastructure, and coordinating the management of
ecosystems and common resources for sustainable development. An ADB
investigative study in 1996 identified a wide range of economic complemen-
tation opportunities, which could transform BIMP-EAGA into a major des-
tination in ASEAN for investments in agro-industry, natural resource–based
manufacturing, and tourism. The study produced a development strategy with
more than 150 policy, program, and project initiatives to enable the subregion
to achieve its full potential.
The Coral Triangle Initiative (CTI) addresses concerns related to the
sustainable development of coastal and marine resources and food security in
six countries—Indonesia, Malaysia, Papua New Guinea, the Philippines, the
Solomon Islands, and Timor-Leste. Comprising areas with 500 or more spe-
cies of coral,31 53% of the world’s coral reefs, 3,000 fish species, and the great-
est extent of mangrove forests of any region in the world, the Coral Triangle,
sometimes referred to as the “Amazon of the Seas,” is the epicenter of marine
life abundance and diversity on the planet. The CTI plan of action was
approved by the six countries in May 2009 in Manado, Indonesia. As executing
agency for the Global Environment Facility (GEF) ADB is supporting CTI
national and regional action plans by providing regional TA ($12.1 million
for Coastal and Marine Resources Management in the Coral Triangle, and
$1.2 million for Enhancing Regional Cooperation and Knowledge Sharing)
and by mainstreaming biodiversity concerns aligned with CTI objectives in
the forthcoming Integrated Natural Resource Management Project (GEF
grant of $3.5 million) and Agusan River Integrated Basin Management
Project (GEF grant of $3.5 million).
Poor donor coordination and replication of successful donor-driven proj-
ects are long‑standing concerns despite all these high-level engagements.
31
Some areas have 600 species, or more than 75% of all known coral species.
Institutional Framework
Department of Environment and Natural Resources

DENR, through EO 192, the 1987 act reorganizing the department, is the
primary government agency responsible for the conservation, management,
development, and proper use of the country’s biological resources, natural
physical endowments, and major natural assets. Among other functions,
it licenses and regulates all natural resources use; manages protected areas;
assesses environmental impact; controls pollution and decides pollution cases;
manages toxic chemicals and hazardous wastes; settles mining conflicts; con-
ducts ecosystems research and technology transfer; carries out information,
education, and communication campaigns; and implements international
and regional ENR agreements. The various laws on ENR management (see
Policy and Regulatory Framework section above), including international
agreements, are the legal sources of the DENR mandate.
Four DENR bureaus—FMB, the Land Management Bureau, the
Ecosystems Research and Development Bureau, and PAWB—draft policies,
set standards, and provide technical services. EMB was made a line bureau
under the CAA (1999), while the Mines and Geosciences Bureau (MGB)
became a line bureau through the Philippine Mining Act (1995).32 The
agencies attached to DENR are the Laguna Lake Development Authority
(LLDA), NAMRIA, the National Resources Development Corporation,
the Natural Resources Mining Development Corporation, NWRB, and the
Philippine Forest Corporation. DENR also has two specialized offices, the
Coastal and Marine Management Office and RBCO.
Sixteen regional offices, one for each of the 16 administrative regions
except ARMM implement ENR laws, policies, plans, programs, projects,
rules, and regulations. Provincial ENR officers (PENROs) in the capital
towns of all provinces and the community ENR officers (CENROs) under
them (except in ARMM, which has its own PENROs) are part of the DENR
regional offices. There are 73 PENROs, one for almost every province,
and 180 CENROs, each covering several municipalities in provinces with
PENROs.
32
The passage of the Mining Code in 1995 gave MGB direct charge of the administration and
disposition of mineral lands and mineral resources, and the conduct of geological, mining,
metallurgical, chemical, and other research as well as geological and mineral exploration
surveys. MGB regional directors gained exclusive jurisdiction over the safety inspection of all
mining installations. EMB, on the other hand, far from being transformed into a line bureau,
continues to implement the same laws and regulations, and has undergone little change in
structure and staffing pattern.
Box 8 presents the mandates and broad functions of the DENR bureaus,
attached agencies, and offices; Box 9, the programs and projects of DENR in
FY2008; and Appendix 3, the official development assistance (ODA) proj-
ects in the ENR sector handled by DENR and its agencies and bureaus.
Box 8: Bureaus, Attached Agencies, and Offices of the

Mines and Geosciences Bureau (MGB)
MGB is one of two line bureaus of the Department of Environment and

Natural Resources (DENR). It is mandated to advise the DENR secretary on
matters pertaining to geology and mineral resources exploration, development,
and conservation.
Under Executive Order (EO) 192, it recommends policies, regulations, and
programs pertaining to mineral resources development and geology; it oversees
the development and exploitation of mineral resources in the seas within
the country’s jurisdiction; it advises the DENR secretary on the granting
of mining rights and contracts over areas with metallic and nonmetallic
resources; it advises the regional offices on the effective implementation of
mineral development and conservation programs and geological surveys; and
it develops and promulgates standards and operating procedures for mineral
resources development and geology.
Under the Philippine Mining Act of 1995 (Republic Act [RA] 7942): it is
directly in charge of the administration and disposition of the country’s
mineral lands and mineral resources; it undertakes geoscientific surveys and
researches in land and marine geology, mining, mine environment, metallurgy,
mineral economics, and mine geodetic surveys; it recommends to the
secretary the granting of mineral agreements and endorses to the secretary,
for the President’s approval, the granting of financial or technical assistance
agreements; it provides laboratory and other technical services to the public and
other government entities; it provides technical assistance to local government
units in their devolved functions of small-scale mining and quarry/sand and
gravel mining; it provides staff support and technical advice to the office of the
secretary on mining and geology matters; and it acts as secretariat to the Mines
Adjudication Board.
Environmental Management Bureau (EMB)
The core mandate of EMB is to advise the DENR secretary on matters

relating to environmental management, conservation, and pollution control.
continued
Box 8 continued
It recommends possible legislation, policies, and programs for environmental

management and pollution control; advises the regional offices in the efficient
and effective implementation of policies, programs, and projects for effective
and efficient environmental management and pollution control; formulates
environmental quality standards; recommends rules and regulations for
environmental impact assessments and provides technical assistance in their
implementation and monitoring; formulates rules and regulations for the
proper disposition of solid wastes and toxic and hazardous substances; advises
the secretary on the legal aspects of environmental management and pollution
control, and assists in the conduct of public hearings in pollution cases;
provides secretariat assistance to the Pollution Adjudication Board; coordinates
interagency committees that prepare the State of the Philippine Environment
Report and the National Conservation Strategy; and assists the regional
offices in the formulation and dissemination to the public of information on
environmental and pollution matters.
Under the Ecological Solid Waste Management Law (RA 9003), EMB is
tasked to provide secretariat support to the National Solid Waste Management
Commission.
The Clean Air Act (RA 8749) made EMB into another line bureau of the
DENR, tasked to implement the law on behalf of the DENR. Among its
functions in this regard are to prepare an annual National Air Quality Status
Report; formulate the Integrated Air Quality Improvement Framework;
formulate and implement an air quality control action plan; designate airsheds;
designate areas where specific pollutants have already exceeded ambient
standards as non‑attainment areas; review, revise, and publish annually a list
of hazardous air pollutants with corresponding ambient guideline values and
standards; design, impose, and collect regular emission fees from dischargers
as part of the emission permitting system; administer the Air Quality
Management Fund; issue permits for the prevention and abatement of air
pollution; review, revise, and publish emission standards to further improve
the emission standards for stationary sources of air pollution; and phase out
ozone-depleting substances.
Under the Clean Water Act of 2004 (RA 9275) (CWA), EMB provides staff
support to DENR in the implementation of the CWA; develops procedures
to relate current or projected water quality guidelines for the receiving water
bodies with total pollution loadings from various sources; identifies sources of
water pollutants in designated non-attainment areas, including pollutants that
are naturally occurring in the area; coordinates with and provides technical
assistance to local government units (LGUs) in incorporating programmatic
environmental impact assessments (EIAs) in local land use plans and area
development plans; coordinates with the National Water Resources Board
(NWRB) and other relevant agencies in the classification of groundwater
continued
Box 8 continued
sources; in coordination with the NWRB and other government agencies, and
upon prior public hearing, reviews, revises, and publishes every 10 years the
classification or reclassification of Philippine waters according to their potential
beneficial use; heads the task force that is drafting appropriate incentives for
the reduction or elimination of wastewater discharge; and, through its regional
offices, decides on motions for reconsideration regarding the granting of effluent
discharge permit for agricultural purposes, adopts a system of scheduling for
the expiration and renewal of discharge permits, evaluates proposed measures
(including self‑monitoring reports) submitted by permittees that cannot
comply with conditions of the wastewater discharge permit so that they can
comply with the conditions, and validates the self-monitoring reports.
With regard to the Philippine Environmental Impact Statement (EIS) System
(Presidential Decree 1586), the EIS‑related functions of EMB are to determine
whether a project or a program is covered by the Philippine EIS System and
should thus be covered by an environmental compliance certificate (ECC)
before implementation; determine the scope of the EIS study to be required
for a specific type of project in a specific location as a requirement for the
processing of ECC applications; recommend whether to issue or to deny the
issuance of the ECCs or certificates of noncoverage after review and assessment;
monitor compliance of projects with ECCs, environmental management plans,
and the project design; and formulate policies for the improvement of the
implementation of the Philippine EIS system.
EMB also acts as the implementing arm of DENR in the exercise of its functions,
powers, and responsibilities in the implementation of the Toxic Substances
and Hazardous and Nuclear Wastes Control Act of 1990 (RA 6969). Its
functions in this regard include maintaining an updated Philippine Inventory
of Chemicals and Chemical Substances that are being manufactured or used
in the country; requiring the testing of chemical substances and mixtures that
present unreasonable risk or injury to health or to the environment before
they are manufactured or imported for the first time; requiring the testing of
chemical substances and mixtures that are being manufactured or processed
if there is reason to believe that they pose unreasonable risk or injury to
health and the environment; evaluating the characteristics of chemicals that
have been tested to determine their toxicity and the extent of their effects on
health and the environment; inspecting any establishment in which chemicals
are manufactured, processed, stored, or held before or after their commercial
distribution and making recommendations to the authorities; confiscating or
impounding chemicals that do not fall within the standards set in these rules
and regulations; monitoring and preventing the entry into the country, even in
transit, of hazardous and nuclear wastes; and issuing permits or authorization
before the transport, storage, or disposal of hazardous wastes.
continued
Box 8 continued
Forest Management Bureau (FMB)
FMB recommends to the DENR the policies and programs for the effective
protection, development, occupancy, management, and conservation of forest
lands and watersheds.
Its specific functions are to recommend policies and programs for the
effective protection, development, occupancy, management, and conservation
of forestlands and watersheds (including grazing and mangrove areas), the
reforestation and rehabilitation of critically denuded and degraded forest
reservations, the improvement of water resource use and development, the
protection of ancestral lands as well as wilderness areas and other natural
reserves, the development of forest plantations (including those for rattan,
bamboo, and other valuable non‑timber forest resources), the rationalization
of the wood-based industries, and the regulation of the use and exploitation
of forest resources (including wildlife) to ensure continued supply of forest
goods and services; advise the regional offices in the implementation of the
above policies and programs; develop plans, programs, operating standards,
and administrative measures to promote the FMB’s objectives and functions;
assist in the monitoring and evaluation of forestry and watershed development
projects to ensure efficiency and effectiveness; and undertake studies on the
economics of forest-based industries, including local, national, and international
supply and demand trends, identifying investment problems and opportunities
in various areas.
Land Management Bureau (LMB)

LMB is mandated to advise the DENR secretary on matters pertaining to
rational land classification, management, and disposition. Its main functions
are to recommend policies and programs for the efficient and effective
administration, survey, management, and disposition of alienable and disposable
lands of the public domain and other lands outside the responsibilities of other
government agencies, such as reclaimed areas and other areas not needed for
or are not being used for the purposes for which they have been established;
issue standards, guidelines, regulations, and orders to enforce policies for the
maximization of land use and development; and assist the secretary as executive
officer charged with carrying out the provisions of the Public Land Act, with
direct executive control over the survey, classification, lease, sale, or any other
forms of concessions or disposition and management of the lands of the public
domain.
continued
Box 8 continued
DENR, through LMB and the DENR regional offices, is also mandated to
administer, survey, manage, and dispose of alienable and disposable lands and
other government lands not placed under the jurisdiction of other government
agencies.
Ecosystems Research and Development Bureau

The bureau formulates and recommends an integrated research program
relating to Philippine ecosystems and natural resources; generates technologies
and provides scientific assistance in research and development for technologies
relevant to the sustainable use of Philippine ecosystems and natural resources;
and coordinates all technological researches undertaken by the field offices,
assesses and translates recommendable findings, and disseminates the findings.
Protected Areas and Wildlife Bureau (PAWB)

PAWB formulates and recommends policies, guidelines, and rules and
regulations for the establishment and management of integrated protected area
systems (IPAS) such as national parks, wildlife sanctuaries and refuges, marine
parks, and biospheric reserves; prepares up‑to‑date listings of endangered
Philippine flora and fauna and recommends a program of conservation and
propagation for these; recommends policies, guidelines, and rules and regulations
for the preservation of biological diversity, genetic resources, and endangered
Philippine flora and fauna; assists the DENR secretary in monitoring and
assessing the management of the IPAS; and provides technical assistance to
the DENR regional offices in the implementation of programs for these areas.
National Mapping and Resource Information Authority (NAMRIA)

This central mapping agency is mandated to serve the needs of the line services
of the DENR and other government offices with regard to information
and researches. It is tasked to expand its capability in the production and
maintenance of maps, charts, and similar photogrammetry and cartography
materials. NAMRIA conducts research on remote sensing technologies such as
satellite imagery analysis, airborne multi-spectral scanning systems, and side-
looking airborne radar; provides remote sensing services and vital data on the
environment, water resources, and agriculture and other information needed
by other government agencies and the private sector; integrates all techniques
of producing maps from ground surveys to various combinations of remote
sensing techniques in a cost-effective and acceptable manner; and integrates
geographic and related information to facilitate access to and analysis of data
and their transformation into useful information for resource policy formulation,
planning, and management.
continued
Box 8 continued
As the central depository and distribution facility for natural resources data in
various forms, such as maps, statistics, text, and charts, it is likewise mandated
to operate information services and networks to facilitate natural resource
information transfer, sharing, access, and dissemination in all regions and
provinces of the country; establish a nationwide geodetic network of control
points that serves as a common reference system for all surveys in the country,
and conduct hydrographic and coastal surveys to produce the hydrographic and
nautical charts vital to sea and water travel as well as the exploitation of our
marine resources; formulate and implement a nationwide development program
in aerial photography, cartography, and remote sensing mapping activities;
establish and implement technical standards and quality specifications for
map production and reproduction; and provide photogrammetry, cartographic,
and remote sensing mapping services to accelerate the development of a
comprehensive data bank and information systems for base maps and charts.
Natural Resources Development Corporation (NRDC)

NRDC is the corporate arm of the DENR. It is responsible primarily for
promoting natural resource development and conservation. As provided in
EO 192, NRDC promotes the enhancement of the forest renewal rate through
intensified industrial tree plantation promotion including the provision of
incidental services such as assistance with capital, credit facilities, marketing,
and management.
Specifically, NRDC is directly involved in pioneering but potentially viable
production, use, and marketing ventures or projects using new and innovative
technologies, systems, and strategies such as but not limited to stumpage sales
systems, industrial forest plantations or logging operations, and rattan tissue
culture, while avoiding activities that compete with the private sector except in
specific cases where the revenues of NRDC are earmarked for a specific local
developmental or social service; and it finances natural resource development
projects undertaken by the private sector such as industrial tree plantations,
agro-forestry, small-scale mining, and retooling of the natural resource–based
processing industries to improve their efficiency and competitiveness, and to
discharge these functions effectively, it is authorized to generate funds through
debt instruments from various sources, and innovative income-generating
strategies.
National Water Resources Board (NWRB)

In 2002, under EO 123, NWRB was transferred to DENR after its
reorganization. NWRB is mandated to regulate the extraction and use of
freshwater resources.
continued
Box 8 continued
NWRB implements the provisions of the Water Code of the Philippines (PD
1067). It regulates and controls the use, exploitation, development, conservation,
and protection of all water resources.
More specifically, the NWRB issues, suspends, revokes, and approves the
transfer of water permits for the appropriation and use of waters; declares waters
not previously appropriated exempt from appropriation; promulgates rules
and declares the existence of control areas for the coordinated development,
protection, and use of ground and surface waters; establishes minimum stream
flows for rivers and streams and minimum water levels for lakes to protect
the environment, control pollution, facilitate navigation, prevent salt damage,
and promote general public use; issues permits for the development of streams,
lakes, and springs for recreational purposes; issues permits for the drilling
of wells; issues rules and regulations for reservoir operations; approves the
transfer of water between river basins; coordinates data collection, research,
and manpower development; imposes penalties for administrative violations;
imposes and collects reasonable fees or charges for water resource development;
approves rules and regulations prescribed by other government agencies for the
use, exploitation, development, control, conservation, and protection of water
resources; and adjudicates all related disputes.
The NWRB is also mandated, under the Clean Water Act (RA 9275), to
designate water quality management areas, in coordination with DENR.
Laguna Lake Development Authority (LLDA)

Attached to the DENR for policy and program coordination, LLDA establishes
and enforces water quality standards for industrial, agricultural, and municipal
use; issues and revokes permits for the use of surface waters within the lake
region; approves development plans proposed by LGUs, private persons, or
enterprises; collects fees for all beneficial use of Laguna Lake resources; and
compels compliance with water quality standards.
Natural Resources Mining Development Corporation (NRMDC)

NRMDC is primarily tasked to do business, particularly the business of exploring,
developing, mining, smelting, producing, transporting, storing, distributing,
exchanging, selling, disposing of, importing, exporting, trading, and promoting
gold, silver, copper, iron, and all kinds of mineral deposits and substances.
Philippine Forest Corporation

The Philippine Forest Corporation was created in late 2004 to handle special
reforestation projects such as the planting of jatropha, a species that can be used
to produce bio-diesel.
continued
Box 8 continued
River Basin Control Office (RBCO)

Through EO 510 signed on 5 March 2006, RBCO was created to prepare
an Integrated River Management and Development Master Plan; promote
equitable access to potable water, efficient distribution of water resources
(through a reduction in water losses in irrigation), and effective use of water
resources (through increased hydropower efficiency and lower flood incidence);
rationalize the various river basin projects such as the Mt. Pinatubo Hazard
Urgent Mitigation, Iloilo Flood Control, Lower Agusan River Flood Control,
Bicol River Basin and Watershed Management, Agno River and Allied Rivers
Flood Control, Kalookan‑Malabon-Navotas-Valenzuela (KAMANAVA)
Flood Control, and the Pasig River Rehabilitation Commission; develop a
master plan for flood control for the river basin projects; and rationalize and
prioritize reforestation in watersheds.
DENR Regional Offices

The regional offices are expected to implement laws, policies, plans, programs,
projects, and rules and regulations of DENR to promote the sustainability and
productivity of natural resources, social equity in natural resource utilization,
and environmental protection; deliver efficient and effective services; coordinate
with regional offices of other departments, offices, agencies in the region, and
local government units in the enforcement of natural resource conservation laws
and regulations, and in the formulation and implementation of natural resources
programs and projects; recommend and implement approved programs and
projects for forestry, minerals, and land management and disposition; conduct
a comprehensive inventory of natural resources in the region and formulate
regional short‑ and long-term development plans for the conservation, use,
and replacement of natural resources; prepare a regional budget in conformity
with the priorities established by the regional development councils; supervise
the processing of natural resources products, grade and inspect minerals as well
as lumber and other wood processed products, and monitor the movement of
these products; and conduct field researches for appropriate technologies for
various projects.
Box 9: Fy2008 Programs and Projects of the Department of

Environment and Natural Resources
Forest Management
Management of forestlands and forest resources; forest restoration and

rehabilitation in 140 priority watersheds; forest protection; community-
based forestry program; soil conservation and watershed management; forest
boundary delineation and use allocation; Project on Forestland Management
(ProFORM), Community-Based Mangrove Forest Management Project.
Land Management
Management, administration, and disposition of alienable and disposable lands
and other lands not placed under the jurisdiction of other government agencies;
land surveys; survey of foreshore areas, reservations, patrimonial properties,
and other lands covered by the Comprehensive Agrarian Reform Program;
field network survey using global positioning system to establish new geodetic
control network; Land Administration and Management Project II.
Protected Areas and Wildlife Management

Identification, delineation, and management of areas under the National
Integrated Protected Areas System; operation and maintenance of the
Ninoy Aquino Parks and Wildlife Center in Quezon City; development
and rehabilitation of Hinulugang Taktak National Park in Antipolo, Rizal;
development and rehabilitation of the Mt. Apo National Park; Philippine Eagle
Conservation Project; Pawikan Conservation Project; Tamaraw Conservation
Project; operation and maintenance of the Crocodile Farm Institute in Irawan,
Palawan; biodiversity conservation; tarsier conservation.
Ecosystems Research and Development

Coordination, monitoring, and evaluation of environmental and natural
resources–related programs; pilot plantation and establishment of selected
forest species; management of coastal and marine resources; Integrated Coastal
Resources Management Project.
Environmental Management
Rationalization of environmental standards and environmental compliance
certificate coverage; implementation of comprehensive air pollution control
policy; implementation of the Clean Water Act; technical assistance to local
continued
Box 9 continued
government units (LGUs) nationwide in the implementation of the Ecological

Solid Waste Management Act; expansion of recycling of waste products;
encouragement of LGU disposal of residuals in sanitary landfills with materials
recovery facilities; regulation of priority chemicals; inventory and formulation
of a national implementation plan for the 12 persistent organic pollutants;
technical assistance to hospitals nationwide in the proper handling and disposal
of health‑care wastes; negotiations with the private sector in preparations for
the development of a model integrated treatment facility.
Mineral Lands Administration

Mining industry development; mineral investment promotion; assessment and
clean-up of abandoned or inactive mines; communication plan for mineral
development.
Geoscience Development
Geohazard survey and assessment; geologic mapping.
National Mapping and Resource Information Authority (NAMRIA)

Operations
Hydrographic surveys and nautical charting program; national mapping
program; national spatial data infrastructure development program.
Laguna Lake Development Authority

LLDA was created in 1966 as a quasi‑government agency to direct and pro-
mote sustainable development in the Laguna de Bay Region (LDBR). Its
regulatory and law enforcement functions cover environmental management,
particularly water quality monitoring, natural resources conservation, and
community-based natural resources management. LLDA implements the
environmental user fee system (EUFS), manages the lake zone and its shore,
and rehabilitates rivers. Though attached to DENR for policy coordination,
the agency funds its programs and activities from its own revenues.
In water pollution control and CWA enforcement, LLDA has jurisdiction
over Laguna and Rizal provinces; Tagaytay City and the towns of Carmona,
Gen. Mariano Alvarez, and Silang in Cavite; Tanauan City and the towns of
Malvar and Sto. Tomas in Batangas; Lukban in Quezon; and several cities and
municipalities in Metro Manila (Caloocan, Manila, Marikina, Muntinlupa,
Pasay, Pasig, Pateros, Quezon, and Taguig cities).
In 2004, LLDA was authorized by the DENR secretary to accept and

process applications for environmental compliance certificates (ECCs) for
selected projects in the LDBR, subject to confirmation by the secretary.
Subic Bay Metropolitan Authority

The Subic Bay Metropolitan Authority (SBMA) was created under the Bases
Conversion and Development Act (1992) (RA 7227) to protect, maintain,
and develop virgin forests within the Subic Bay Freeport Zone that had been
proclaimed national parks and were subject to a permanent total log ban, and
to adopt and enforce pollution control measures in all areas within its terri-
tory. SBMA was to implement the rules and regulations of the DENR and
other government agencies directly involved in the above functions and create
an Ecology Center for that purpose.33
Years of continuing conflict between DENR and SBMA in the imple-
mentation of environmental laws and regulations came to an end in 2005,
when the Court of Appeals upheld DENR’s authority to exercise its regula-
tory powers within the Subic Bay Freeport Zone. DENR and SBMA signed
a memorandum of agreement (MOA) empowering the DENR to visit all
industrial establishments, or “locators,” operating within the zone and com-
pel them to meet its environmental standards. DENR was given the lead
role in processing and approving ECC applications for new locators at the
zone, at SBMA’s recommendation. DENR would also review and validate
the 300 or so ECCs issued earlier by the SBMA Ecology Center. SBMA,
for its part, agreed to adopt DENR rules, regulations, and orders for process-
ing EIS applications and to monitor compliance with DENR environmental
standards through its Ecology Center.
Local Government Units

LGUs are tasked with formulating municipal environment codes and forest
and coastal management plans for implementing environment‑related pro-
grams and activities. The most recent environmental law, CWA, also made
LGUs jointly responsible, together with the national Government, for man-
aging and improving water quality within their territorial jurisdictions. The
DENR was to devolve some aspects of water quality management and regu-
lation, including permit issuance, monitoring, and imposition of administra-
tive penalties, “when the LGU has demonstrated its readiness and technical
capability to undertake such functions.”
33
Implementing Rules and Regulations, RA 7227, the Bases Conversion and Development
Act (1992). The freeport zone is within the 6,332 ha Subic Watershed and Forest Reserve,
which was declared a protected area by Presidential Proclamation 926 (1992) and therefore
automatically placed under DENR’s jurisdiction by virtue of the NIPAS Act (1992)
(RA 7586).
Philippine Council for Sustainable Development

The Philippine Council for Sustainable Development reviews Philippine
commitments to sustainable development principles made at the United
Nations Conference on Environment and Development and ensures their
implementation in cooperation with the Department of Foreign Affairs, the
Office of the United Nations Commission on Sustainable Development,
and other international organizations; sets guidelines and mechanisms for
the practical use, particularly in the MTPDP, of the sustainable development
principles embodied in the Rio Declaration and the Philippine Agenda 21;
directs through policy reforms, programs, and new legislation the response
to issues and the course of future actions on the environment and sustainable
development; and develops national sustainability plans.34
Other National Government Agencies

Among the environment-related tasks of other national government agencies,
the Department of Agriculture is concerned with coastal and marine manage-
ment, soil and water use and protection, and fertilizer and pesticide use; the
Department of Health, with environmental effects on health; the Department
of Agrarian Reform, with sustainable farming, to improve land tenure; the
Department of Energy, with the reduction of air pollution from fossil fuels;
the Department of Interior and Local Government, with the ability of LGUs
to fulfill their growing role in environmental management and protection; and
the Department of Science and Technology, with environmental research. The
Department of Tourism works for the ecological preservation of tourist attrac-
tions; the Department of Public Works and Highways prepares a national
program for sewerage and septage management; the National Economic
and Development Authority plans for growth with equity and, through the
Investment Coordination Committee, reviews and approves the environ-
mental compliance of government programs and projects; and the National
Commission for Indigenous Peoples protects the rights and well‑being of
indigenous peoples including their rights to their ancestral domains.
Interagency Coordinating Committees

Interagency committees and technical working groups are commonly created
to harmonize the implementation of major ENR laws, policies, and programs,
given the large number of agencies involved. Some laws specifically require
their creation. Policy directions, targets, implementation activities, schedules,
34
The Philippine Council for Sustainable Development is headed by the director-general of
NEDA as chair, and the DENR secretary as vice-chair. It draws its members from various
government departments and civil society groups. National government agencies, civil society,
NGOs, and people’s organizations are represented in committees and subcommittees of the
council.
and roles and responsibilities are discussed and agreed on in these committees
and working groups. Sector and group representation (government, NGOs,
industry, and the academe) in committee membership is considered, to engage
the regulators and the regulated, as well as the affected communities.
Government Financial Institutions

Government financial institutions, particularly DBP, the Land Bank of the
Philippines (LBP), and the Municipal Development Fund Office (MDFO),
have been providing loans for environmental projects.
Leading the banking sector in promoting, encouraging, and financing
environmental projects in the country for more than 15 years, DBP pio-
neered in the funding of waste treatment facilities for water and air, cleaner
production, energy conservation, and cleaner energy. A special DBP lending
facility handles the environmental requirements of small and medium‑sized
enterprises (SMEs). Since 1989, DBP has mobilized about $700 million (at
constant 1985 prices) in ODA loans for environment initiatives. These envi-
ronmental lending facilities are ongoing: Credit Facility for Environmental
Management Project (AB Svensk Exportkredit of Sweden); Credit Line
for Solid Waste Management Project and Industrial Pollution Control
Loan Program, Phase II (KfW of Germany); and LGU Urban Water and
Sanitation Project (Adaptable Program Loan 2) and Rural Power Project
(World Bank). As of December 2006, these projects had a net commitment
of $69.53 million.
As of 2006, 36% of the total LBP portfolio was provided to agribusiness,
agri‑infrastructure, and agro‑ and environment-related loan projects. LBP has
five ongoing lending facilities with an ENR component: Third Rural Finance
Project (World Bank), Mindanao Basic Urban Services Sector Project (ADB),
LGU Investment Program (KfW), MTSP (World Bank), and Support for
Strategic Local Development and Investment Project (World Bank). These
loan facilities total about $450 million.
MDFO was created as an office under the Department of Finance in
1998 to finance environment-related projects of LGUs through the Municipal
Development Fund. The fund is supported by foreign loans, assistance, and
grants.
Nongovernment Organizations and People’s Organizations

NGOs as advocacy groups play a major role in bringing environmental ben-
efits to communities. The NGO communities and people’s organizations in
the Philippines are among the most developed in Asia and Pacific. Local envi-
ronment NGOs have become more active since the 1980s, helping to shape
environmental policy in agrarian reform and against illegal logging and environ-
mental damage from irresponsible mining. Several NGOs have been successful
innovators. Box 10 lists the major environmental NGOs in the country.
Box 10: Nongovernment Organizations in Environmental

Protection
Conservation International, one of the world’s largest nongovernment
organizations (NGOs) in biodiversity conservation, works in 44 countries
including the Philippines. In the Philippines it is a partner of the Department
of Environment and Natural Resources (DENR) in several initiatives for the
conservation of Philippine biodiversity including the Sulu-Sulawesi Seascape
and biodiversity hotspots.
The Environmental Legal Assistance Center was formed in 1990 as a special
project of the Protestant Lawyers’ League of the Philippines to mobilize human
rights lawyers on behalf of communities besieged by environmental problems.
The Foundation for the Philippine Environment, incorporated in 1992,
aims to reverse the rapid destruction of the Philippines’ natural resources by
initiating programs and activities that strengthen the role of NGOs, people’s
organizations, and local communities in responsible ecosystem management.
The initial financial base of the foundation is an endowment fund established
through debt‑for-nature swaps.
Haribon Foundation is a leading conservation NGO in the Philippines with
more than 25 years of experience in addressing critical environmental problems
at policy and community levels. Haribon has been at the forefront of finding
workable environmental strategies for implementing sustainable development in
the Philippines. It has made a significant contribution to pioneering initiatives
such as the National Integrated Protected Areas System, community-based
coastal resource management, and environmental law education and practice.
It bases its conservation work on the best‑quality biodiversity research in the
Philippines. The foundation has a staff of over 40 professionals, with varied
specializations, and has been the recipient of various grants.
KALIKASAN–People’s Network for the Environment is a network of
NGOs established to enable greater coordination and complementation in
addressing the environmental issues that continue to worsen the lives of already
marginalized people.
LRC-KSK/Friends of the Earth, established in 1987 with the aim of
empowering the marginalized directly dependent on natural resources, has
developed expertise in indigenous people’s rights, environmental management,
forestry issues, energy efficiency, and community and local initiatives. It is the
official Philippine affiliate of Friends of the Earth International.
The Non‑Timber Forest Products Task Force is a collaborative network of
Philippine grassroots NGOs established to address emerging livelihood needs
of upland forest dwellers in the context of sustainable forest management. It is
a beneficiary of the Small Grants Fund of the European Commission.
continued
Box 10 continued
The Philippine Rural Reconstruction Movement (PRRM) designs and

implements community and habitat development programs across the
archipelago. Founded in 1952, it is one of the country’s longest-serving NGOs.
The World Wide Fund for Nature (WWF)–Philippines began with the
desire to save the Philippine marine environment. Through the years, WWF
programs have grown to include work in freshwater and forest ecosystems and
pioneering projects in toxics and climate change while maintaining WWF’s
strong emphasis on oceans, coasts, and marine species. WWF-Philippines
implements conservation and development projects in 11 provinces and at least
28 towns. Nationwide, WWF advocates appropriate environmental policies,
engages corporations in sustainable business, and conducts environmental
education activities in Metro Manila and other key cities and towns. The
field projects of WWF-Philippines support local efforts in coastal resource
management, community-based ecotourism, management of protected areas,
and environmental law enforcement, among others. WWF’s projects in species
protection serve as catalytic platforms for broader coastal management and
conservation in a number of areas. These include the Irrawaddy dolphin in
Malampaya Sound, Palawan; the whaleshark in Donsol, Sorsogon; whales and
dolphins in Tanon Strait, Negros Oriental; sea turtles in the Turtle Islands,
Tawi-Tawi; the dugong in Roxas, Palawan; and the humpback whale in
Babuyan Islands. WWF draws support for its projects from various partners
including multilateral agencies.
Other relevant environmental organizations are the Philippine Federa-
tion for Environmental Concerns (www.psdn.org.ph/pfec), the Environ
mental Broadcast Circle (www.ebc.org.ph), the Tambuyog Development
Center, the Soil and Water Conservation Foundation (financially supported
by the European Commission), the Center for Empowerment and Resource
Development, and the Asia Forest Network.
Business and industry organizations have their own environment groups, the
more active of which are the following.
The Philippine Business for the Environment (PBE) is a non-stock, nonprofit
organization incorporated in January 1992 to assist Philippine business in
addressing environmental issues and concerns. Currently it has 37 charter
members and 5 regular members. PBE spearheaded and continues to operate
the Industrial Waste Exchange Program, which maintains a database of waste
generators and waste buyers and recyclers that can be potentially matched.
The Pollution Control Association of the Philippines, Inc. is a non-stock,
nonprofit, and nongovernment organization formed in June 1980 by various
industries to work with the Government in the protection of the environment,
and the prevention, abatement, and control of land, air, and water pollution.
All industries are required by law to have their own pollution control officers;
continued
Box 10 continued
therefore, this NGO is one of the biggest associations in the country. It represents
the industry in the Pollution Adjudication Board and in most environmental
interagency committees requiring industry representation.
The Air and Waste Management Association–Philippine Section (AWMA-
PS) was organized about 10 years ago as an international chapter of the US-
based AWMA.
The Solid Waste Management Association of the Philippines (SWAPP)
is another nonprofit membership organization composed of solid waste
practitioners from local government units (LGUs), national government
agencies, NGOs, and the academe. It was established in May 2000. Through
funds from its members and international organizations, it is quite active in
assisting LGUs, including barangays, in developing solid waste management
plans. It has been the recipient of various grants from donor agencies like
the United States Agency for International Development (USAID), World
Bank, German technical cooperation (GTZ), and others. Locally, SWAPP has
affiliations with the Local Government Academy, PLAN-Philippines, Solid
Waste Contractors of the Philippines, Earth Day Network, and Philippine
EcoSan Network. SWAPP is also allied with international organizations like
the Collaborative Working Group for Low and Middle Income Countries
(Switzerland) and the Southeast Asia Urban Environment Management
Network (Asian Institute of Technology, Thailand).
Communities have been participating, to varying degrees, in natural

resource management for at least 15 years. Some participate in natural resource
management because of conflicts with central government agencies. Relations
between people’s organizations and LGUs are similarly mixed. While some
LGUs are supportive, others view people’s organizations as competitors and
are wary or even hostile. Community groups need more assistance in devel-
oping collective interests and building the capacity to implement sustainable
and long‑term programs.
Donor Agencies
The Philippines has long been a recipient of ODA resources for national
development. Donor support for environment-related projects is increasing
in response to growing demand and the need to sustain economic growth.
Besides ADB, international financing institutions and multilateral agen-
cies that are active in the Philippines are the World Bank/GEF, UNDP,
and the European Union (EU). Bilateral sources include Australia, Canada,
People’s Republic of China, Germany, Japan, New Zealand, Spain, the
United Kingdom, and the United States of America. The 29 ODA projects
at DENR have a total value of $365,384.07, including government coun-
terpart funds. Two of these are environment-related loan projects of ADB
(the Metro Manila Air Quality Improvement Development Project and the
Integrated Coastal Resources Management Project among them); four others
are World Bank and JBIC projects.
The World Bank’s country assistance strategy until 2009,35 has been
shifting toward more programmatic engagement with key agencies and
sectors with the active involvement of the national and local governments,
and the private sector. At the national level, the World Bank is working
with agencies that are strongly committed to reform, helping to strengthen
governance, and financing improvements in systems and processes. Locally,
there is an integrated, cross-sector focus on LGUs to make better outcomes
more likely across all services delivered. In the private sector, the World Bank
promotes private investment by helping to strengthen regulatory agencies,
reducing the cost of doing business, improving financial intermediation, and
financing projects in cooperation with private entities particularly in sectors
with high growth potential.
The 2007 Philippine lending portfolio of the World Bank had 23 active
projects (21 loans and two stand-alone GEF projects) totaling $1.3 billion.
Rural development and environment projects accounted for 38%
($485.9 million) of the lending portfolio, and 42% ($40.3 million) of the
$95.5 million trust fund portfolio. Jumbo trust funds (such as the Mindanao
Trust Fund), linked to the World Bank’s investment operations and admin-
istered by the World Bank on behalf of bilateral development partners, are
a significant new business line that is benefiting the lending program overall
and harmonizing World Bank operations with the operations of development
partners.
The World Bank is supporting DENR in improving credibility and
transparency, and moving away from regulation toward effective conserva-
tion. Its National Program Support for Environment and Natural Resources
Management Project is helping to promote growth and reduce poverty
while ensuring responsible and sustainable ENR use and management. The
Land Administration and Management Project, now in its second phase
(LAMP II), is improving the security of land tenure through efficient land
titling and administration. LAMP II is cofinanced with the Australian
Government. Funding for the Program for Sustainable Sanitation in East
Asia, managed by the World Bank on behalf of the Swedish International
Development Cooperation Agency, is helping to make sustainable sanitation
more accessible to the poor.
35
World Bank website, www.worldbank.org.
Environment sustainability is one of four interrelated program interven-

tions of UNDP in the Philippines.36 Balancing production needs with ecologi-
cal carrying capacity for long-term, sustained growth is a priority goal. UNDP
supports national efforts to develop the capacity of stakeholders to manage
natural resources in critical ecosystems by strengthening the productivity of
SMEs and the sustainable development of communities. It is also working
for the widespread use of cleaner, more sustainable forms of energy and the
promotion of energy efficiency. Ongoing projects funded directly by UNDP
or GEF or from bilateral sources include the Community-Based Ecological
Solid Waste Management Project, the Small Grants Program for Operations
to Promote Tropical Forests, the Clean Development Mechanism, and the
Samal Island Biodiversity Project.
The EU is providing budget support and sector-wide approaches to
decentralized development through LGUs, to reduce poverty by making access
to social services more equitable. Its indicative allocation for the Philippines
for 2007–2013, under the Development Cooperation Instrument, is about
$180 million. EU support for environment‑related projects is centered on
the sustainable use of natural resources through demand‑driven thematic
and regional budget lines. These funding facilities include the urban-related
Asia Pro Eco Program, Phase II; the Environment and Tropical Forests in
Tropical Countries Program; and Asia Invest Program, which promotes
environmental protection within an economic and commercial framework.
The ASEAN Centre for Biodiversity, hosted by the Philippines, is sup-
ported by the EU.
Japan’s ODA makes up the largest portion of foreign assistance to the
Philippines—49% in 2006. It takes the form of bilateral grants (grant aid
and technical cooperation), bilateral loans (yen loans), and contributions and
subscriptions to multilateral donors. Bilateral grants, such as those for DENR
Capability Building for Water Quality Management and for the Introduction
of Suitable Solid Waste Management System in Three Model Cities in the
Philippines, are provided mainly by JICA. Bilateral loans, for the Southern
Mindanao Integrated Coastal Zone Management Project, among others,
come from JBIC.
JBIC, through DBP, provided loan facility of about $180 million for
the environmental investments of industries, while the LGU Support
Credit Program implemented by LBP funded water supply, flood control,
and sanitation facilities. Both projects ended in 2006 but second‑generation
funds are expected. Another $180 million lending facility at DBP for envi-
ronmental projects, the Environmental Development Program, was in JBIC’s
36
The other three are empowerment of the poor, good governance, and conflict prevention and
peace building. Source: UNDP website, www.undp.org.
2008 pipeline. Aside from various environmental projects, it will support the
Philippine Water Revolving Fund, a financing mechanism for water supply
and sanitation projects cofinanced by private banks and being implemented
by DBP, JBIC, MDFO, USAID, and the LGU Guarantee Corporation.
Australia, through the Australian Agency for International Development
(AusAID), is one of the top three bilateral grant aid donors to the Philippines
along with the United States and Japan. The environmental governance
objective of Australian aid is strengthened institutional capacity and improved
enabling mechanisms for environmental management. AusAID is currently
funding LAMP II, a $48.0 million project cofinanced by the World Bank,
which is contributing $18.9 million.
Canada is helping to reduce poverty in the Philippines through equi-
table, sustainable development. The objectives of the Canadian International
Development Agency in the Philippines are efficient, responsive, transparent,
and accountable governance at all levels, and the development of sustain-
able small and medium-sized enterprises that create more and better jobs.
About one third of Canada’s development assistance goes to multilateral
organizations.
USAID is helping the Government to formulate policies and promote
the use of indigenous and clean fuels by developing the country’s extensive
natural gas reserves and renewable energy. A USAID project being carried
out with private sector participation is providing electricity powered by
renewable energy to thousands of households in remote conflict areas in
Mindanao. USAID is also helping DENR to implement the second phase of
the Philippine Environmental Governance Project to make the governance
of natural resources more transparent, accountable, and responsive. Fisheries
Improved for Sustainable Harvest, a 5-year USAID project that ended in
2008, was aimed at conserving biological diversity in at least four biologi-
cally and economically important marine ecosystems. USAID is providing
technical assistance as well in the implementation of the Philippine Water
Revolving Fund.
GTZ, the German international cooperation program, is assisting the
DENR with municipal forest and coastal zone management, particularly in the
Visayan Sea region, and DAR with agrarian reform and rural development.
The New Zealand Agency for International Development (NZAID)
is working with the DENR to implement the Camiguin Coastal Resource
Management Project. It is helping to develop ecotourism, and is supporting
the United Nations Children’s Fund (UNICEF)–led initiative to improve
basic education, health, and nutrition for indigenous peoples in the Mountain
Province in northern Luzon and the UNDP initiative to protect the ancestral
domains of indigenous communities. Another NZAID project is strengthen-
ing the program and project management capabilities of LGUs in the Caraga
region of Mindanao.
ODA‑assisted programs and projects in the environment sector cover
almost all the important issues. Coordinating their implementation, however,
is still a challenge, as is replicating good practices.
Chapter 3
Challenges and
Opportunities
DENR Institutional Rebuilding
T
he ENR subsectors are wide ranging and encompass the entire
geography of the country. These subsectors have laws that are just
as varied—the Public Lands Act, the Forestry Code, NIPAS, and
the Pollution Control Law, among others—and are implemented mainly by
DENR. In addition, there are the regional and international commitments of
the country in ENR protection and management. On top of these is EO 192
(1987), the main law that created the DENR and defines its goals, functions,
responsibilities, organization, and authorities.
Several assessments indicate that DENR has not fulfilled all of its man-
dated tasks, primarily because of its meager resources, its outdated institu-
tional structure, and the low capability of its staff to cope with the technical
knowledge requirements. Overlaps in responsibilities with other government
agencies, as well as gaps in implementation, also hamper DENR effective-
ness. These factors are discussed further below.
Insufficient Government Budget for ENR
The DENR budget in 1998 was $103 million (World Bank 2000b), about
0.8% of the national budget. In 2001, it increased substantially to $137 mil-
lion, 1.8% of the national budget. The budget decreased to an annual average
of $116 million in 2002–2005 before increasing once more to $150 million in
2006, 1.5% of the government budget (similar to the proportion allocated for
the environment in Thailand).
The budget must be increased to cover the new responsibilities of
the department. DENR started (in 1987) with outmoded equipment and
resources, which were not upgraded because of budget limitations. As in any
other government department, there were years when the budget went mostly
to personnel services, with no increase in maintenance and other operating

expenditures (MOOE), and practically no budget for capital outlay. World
Bank studies have mentioned that 75% of the DENR’s appropriations go to
salaries and other emoluments and that only 5% are for capital outlay. For
2007, personnel services were about 58% of the total DENR budget, MOOE
took up 31%, and capital outlay 11%.
Only 5 of the 16 regional offices have equipment for source‑emission
stack sampling and ambient air quality monitoring. Most regional offices
are ill equipped for water sampling and analysis. There are also not enough
vehicles to allow DENR staff to monitor the more than 10,000 industrial
establishments nationwide.
Some new laws provide for substantial appropriations for their initial
implementation. The ESWMA (2000) provided for $450,000 for the initial
operating expenses of the NSWMC and the National Ecology Center, as
well as the expenses incurred by LGUs in carrying out the ESWMA man-
date. For the CAA (1999), $19 million was to be divided among DENR, the
Department of Trade and Industry, and DOE, and there was to be an initial
appropriation of $2.6 million for the CWA. None of these appropriations
have materialized. Furthermore, no portion of the Air Quality Management
Fund (AQMF) has been released to EMB and the governing boards, and
the National Solid Waste Management Fund (NSWMF) is yet to be set up,
9 years after the ESWMA, which provides for its establishment, took effect.
The National Water Quality Management Fund (NWQMF) is to be
established under the CWA to finance water pollution containment and
clean-up operations, ecosystems rehabilitation, and supporting activities. It is
to come from fines imposed and damages awarded, proceeds of permits issued
under the law, and donations, endowments and grants to the Government.
Unless the Government comes up with more definite measures for collecting
and using the funds appropriately, the NWQMF could suffer the same fate
as the AQMF and NSWMF.
DENR has therefore had to rely on foreign assistance. The Metro Manila
Air Quality Improvement Sector Development Program (ADB Loan 1663-
PHI) made the EMB’s substantial accomplishments under the CAA possible.
EMB also receives support from JICA, through the Capacity Development
Project on Water Quality Management, for most of the major tasks stated in
the CWA.
For protected area management, despite about $59 million in externally
funded support for protected areas in the Philippines since the mid-1990s,
the budget for PAWB declined from $2.3 million in 1998 to about $1.2 mil-
lion in 2002. In 2002, budgetary support for protected area management per
year in 432 protected area sites totaled $124,000, or an average of $286 per
site per year. If budgetary support does not increase, the protected areas
will have to be reduced in number to only a few sites. Protected areas like
Mt. Kitanglad, Mt. Apo, Mt. Kanlaon, and Sierra Madre National Parks

will need about $35,000–$90,000 yearly just to finance their fixed costs and
recurring cost of protection and management (USAID 2004). The NIPAS
Act, which was approved in 1992, has no budgetary provision under law to
support its immediate implementation.
As of March 2008, there were 148 protected areas with integrated pro-
tected area funds (IPAFs). Access to the IPAFs is very tedious and has to be
simplified. IPAFs are deposited at the National Treasury, which retains 25%
to support non‑income‑generating protected areas. For years, DENR has
been asking DBM and both houses of Congress to amend the law or include
a special provision in the General Appropriations Act that would allow the
IPAFs to be used directly for the protected areas. This proposal has so far not
been considered.37
The Wildlife Resources Conservation and Protection Act (RA 9147)
also set up another fund, the Wildlife Management Fund, for the rehabilita-
tion or restoration of habitats affected by violations of RA 9147 and to sup-
port scientific research, enforcement, and monitoring. Contributions to the
fund are tax exempt.
As a substantial increase in its regular budget seems unlikely. DENR
should concentrate instead on laying out a workable structure, complete with
guidelines and procedures, for putting these various funds (AQMF, NSWMF,
NWQMF, IPAFs, and others) into operation.
Need for DENR Restructuring to Fulfill Expanding Mandate
Despite all the ENR laws that have been passed since 1987, when
Executive Order 192 creating the DENR was issued, the institutional struc-
ture of the agency has not changed and has been lagging behind its expanding
responsibility.38 EMB, in particular, despite its broader mandate and conver-
sion to a line bureau, still implements all five major environmental laws (for
EIA, air and water quality, and hazardous waste and solid waste manage-
ment) through its Pollution Control Division.
EMB has 26 key positions including six director III positions. These six
are those of the assistant director and five regional technical directors, which
were transferred by DENR to EMB when the latter became a line bureau.
EMB has 16 regional offices, and therefore needs 11 more regional director
positions. Besides the regular positions, EMB has hired casual and contrac-
tual employees out of its regular budget or the environmental revolving fund
37
Information provided by PAWB, 4 July 2008.
38
There is also a shortage of personnel. Of the 21,981 itemized positions at DENR, according
to the General Appropriations Act (2007), 1,404 are vacant.
(from fines and collections, among others) to fill highly technical positions.
EMB has been working for the creation of more technical positions since
2002 but with little success.
The implementation of RA 8749 alone requires a manpower comple-
ment of 1,558 (ADB 2003d). DENR has transferred 223 employees to EMB
to boost the staff of 558 that is assigned to implement the CAA; 777 more
are needed, only for this function. In September 2005, 251 unfilled DENR
positions (salary grades 1–15, 85% of which were clerical positions) were
transferred to EMB. These positions have been collapsed into 95 technical
positions in EMB.
The internal movement of personnel within DENR has not helped
much, particularly because those who are transferred often do not fit the
requirements. Foresters transferred to EMB, for example, were expected to
implement pollution control laws. Moreover, PENRO and CENRO posi-
tions have been “politicized,” especially in regions where local officials insist
on appointing their own men.
EMB has kept its staffing pattern and structure and does not appear to
have been transformed into a line bureau as required in the CAA. At any
rate, it has neither the resources nor the abilities for such a change at this
time. Section 34 of the CAA set a maximum period of 2 years for EMB’s
conversion into a line bureau “unless a separate, comprehensive environ-
mental management agency is created.” Since no such agency was created in
those 2 years, the bureau, by implication, has reverted to its staff bureau status
( JICA 2005).
In the case of protected area management, the management of the
14,540 km2 of protected areas is assigned to a staff of only 1,246, or about
nine for every 1,000 km2 of protected area, compared with the worldwide
average of 27 (according to UNEP) (European Commission 2005).
In the case of forest management, certain staffing positions may no lon-
ger be relevant. The position of tree marker was needed in places where there
were timber licensees; there are now very few of those. Plant propagation and
nursery jobs have also become unnecessary with the shift in the reforesta-
tion program from program administration to contracting. There are 742 tree
marker and 194 nursery worker positions in the DENR.
The Coastal and Marine Management Office and RBCO have not been
assigned permanent positions despite their huge responsibilities. Their staffs
are on temporary detail and may not continue to work in these offices if DENR
does not approve the staffing structures under its rationalization plan.
In 2004, all government agencies were directed through Executive Order
366 to prepare sectoral rationalization plans. The DENR rationalization
plan reengineers the DENR central units into “thinkers” rather than “doers,”
“steering” rather than taking a direct role (“rowing”) in ENR programs, proj-
ects, and activities. Box 11 shows the DENR rationalization framework.
Box 11: Guiding Principles for the Rationalization Plan of the

From To
“Doer” (in the central office) “Thinker”
Program implementer Knowledge manager
Regulator Technical assistance provider
Development catalyst (e.g., development
of a strategic environmental plan to guide
local government units, development of
standards to improve service delivery, and
reduction of bottlenecks in the processing
of resource use permits
Conservator: Fragmented/ Integrated ecosystems approach
Uncoordinated approach
Regulator: Concentrated at Deconcentration
the central office Phased/Selective devolution
Manager: “Rowing” “Steering” (enabler)
Direct role in administering Reduced direct role in programs, projects,
the use of natural resources in and activities related to utilization
wealth production Enhanced services related to promoting
ecosystems
Emphasis on program Emphasis on policy formulation, standard
implementation (production/ setting, monitoring and evaluation,
delivery) enforcement and coordination.
A policy note issued by DENR for the rationalization plan, “to ensure
that its core mandates as conservator and manager of ENR are fully asserted
in future development policies and programs,” directs the department to “cut
some operations where the DENR has less comparative advantage and priori-
tize those that have greatest impact and value-added.” The intent is to create
a more holistic organization with fewer bureaucratic layers, strengthen plan-
ning and budgeting, and establish career paths and career development for
officials and employees to professionalize the ranks. These principal goals are
identified for the department: integrated watershed management, integrated
water resource management, protected area management and biodiversity
conservation, integrated coastal resource management, and clean air, water
and solid waste management.
Even after repeated revisions, however, the rationalization plan is yet

to be approved by DBM.39 The plan should be approved and implemented
as soon as possible. An implementation timetable and action plan, with the
necessary financial resources, is needed for smooth implementation.
Major Capacity Building Requirement for Better ENR Regulation
The report on the TA project Strengthening Environmental Enforcement

and Compliance Capacity (2003) concluded that, despite time and human
and financial resource constraints, EMB has implemented about 79% of its
239 directives40—83% in enforcement, 85% in policy and planning, 81% in
education, 71% in research, and 55% in fund generation and management. As
the report showed, EMB has limited capacity to implement all of the direc-
tives. Anyhow, given the austerity measures taken by the Government, not all
may be implemented.
The JICA-funded Capacity Development Project on Water Quality
Management mentioned the following weaknesses in enforcement in
the EMB regional offices: identification of hot spots and prioritization of
monitoring and inspection, groundwater assessment, water‑body classifica-
tion, scientific analysis and water pollution modeling, field monitoring and
inspection, estimation of pollution load or allocation of pollution quotas, and
assessment and collection of pollution charges. Most of these weaknesses are
explained by the lack of procedural and technical guides or manuals, labora-
tory facilities and equipment, water quality monitoring personnel, a regional
water quality database to support decision making, well‑defined water quality
monitoring functions, a database of pollution sources for regulatory enforce-
ment, equipment and vehicles for water quality monitoring, and guidance
in integrating the CWA with the Philippine Environmental Partnership
Program, the Philippine Environmental Impact Statement System (PEISS),
and other policies.41
CWA implementation in particular lacks the following, according to the
JICA study: an integrated policy framework and procedures for water quality
management, EMB central office capability to lead and support the regional
offices in integrated water quality monitoring and CWA implementation,
experience and capability among the regional offices to support the estab-
lishment and operation of water quality monitoring areas and the associated
39
The revisions are expected to continue until the plan is finally approved. Therefore, no details
of the plan are presented and discussed in this document.
40
The activities straddle the five environmental laws (PD 984, PD 1586, RA 9003, RA 6969,
and RA 8749), from which the EMB derives its mandate.
41
The IWQMF also identifies the major capacity building needs of EMB and of the other key
implementers of the CWA mandate, including the LGUs.
participatory mechanisms and institutions, and technical and management

capability for water quality monitoring among the regional offices, specifi-
cally for the new regulatory mandates under the CWA system of discharge
permits and wastewater charges.
In solid waste management, while the ESWMA (2000) specifically
makes the LGUs primarily responsible for its implementation and enforce-
ment, capacity building of both LGU and DENR field personnel (PENROs
and CENROs) in ecological waste management is important, to facilitate
compliance with the law.
The Strengthening Environmental Performance Monitoring and
Evaluation System of the PEISS Project funded by the World Bank found
that not all projects with ECCs are monitored and compliance with ECC
requirements is unrecorded. No concerted effort is made to prepare and con-
duct training in monitoring and evaluation (M&E). There are not enough
incentives and disincentives for project proponents to monitor and report
on their own activities, for DENR to perform its M&E duties consistently,
and for stakeholders to be vigilant. M&E is just one of many responsibilities
of DENR staff, one on which their performance rating does not depend.
Government agencies, moreover, are not as interconnected as they should be
for a functional monitoring and evaluation system.
Training could solve problems in the M&E system by improving the
knowledge, skills, and attitudes of stakeholders, particularly EMB and the
members of the multipartite monitoring team (MMT). It would strengthen
performance, efficiency, and productivity, and sustain trust and partnership
between the regulator, the regulated entities, and the MMT members. EMB
personnel and MMT members, however, lack the necessary focus to attend to
the substantive concerns of training and to apply the new learning.
EMB is trying to make the PEISS more straightforward by accepting
online applications for noncoverage and for initial environmental examina-
tion, simplifying the requirements, changing the ECC format, and preparing
a manual for the review of EIAs, among other means. Improving its capacity
development programs in EIA as a planning and risk evaluation tool would
also end the EMB’s dependence on outside reviewers and experts.
A number of projects have capacity building components. JICA’s Capa
city Development Project on Water Quality Management) provided experts
and resources to enable EMB to prepare the various guidelines, but, as in
other projects with capacity building components, the capacity building was
mostly for staff from the pilot regions (in this case, regions 3, 6, and 12, aside
from the EMB central office). EMB needs continuous capacity building to
implement all of the activities.
A major capacity building program should be developed and imple-
mented throughout the bureaucracy when the DENR rationalization plan is
finally approved and implemented.
Need for Integrated and Improved Information

and Communication Management System
The use of information and communication technology (ICT) to improve

the delivery of services of DENR to the public is making slow progress. The
5-year ICT master plan drawn up in 2006 foresees the establishment of an
integrated, secure, and reliable enterprise-wide information system by 2010.
Phased implementation of the master plan using the regular budget has mark-
edly improved the form and content of the agency website, making it easy to
navigate, but the updating of content and links with the bureaus still needs
improvement. Full implementation of the master plan requires an investment
of about $136 million.42
Some completed ODA-funded projects of DENR have developed
database systems to improve decision making. The systems (e.g., PEMSEA
Integrated Information Management System, USAID-funded Coastal
Resource Management Program database of technical and scientific informa-
tion) work separately, however, and are not actively provided on the DENR
website. Moreover, NAMRIA, an attached agency of DENR for mapping,
photogrammetry, and cartography, does not automatically share its databases
and maps with other DENR bureaus and agencies. The computerization of
land records to restore the integrity of land titles is another major database
project that can be considered for possible assistance.
DENR will need external support to speed up the development of an
integrated and improved information and communication system, and pro-
vide better, more efficient, and effective services.
Resolution of Mandate Overlaps and Gaps

While significant environmental laws have been passed by the Government
in the last four decades, there have been resulting overlaps in agency man-
dates and gaps in implementation. Among the more prominent conflicts was
that between DENR and SBMA regarding the implementation of ENR
laws within the territorial jurisdiction of SBMA (see under Regulatory and
Institutional Framework above). The Guimaras oil spill (see Environmental
Emergencies, under Main Environmental Concerns above) brought up the
question of jurisdiction over the case and the lead agency that should see to
the clean-up and the penalties for those responsible.
The CWA has also given rise to conflicts and issues in implementation,
particularly in the preparation of the NSSMP, a task assigned to DPWH.
DPWH itself is not involved in water supply and sanitation, but LWUA and
MWSS are both attached agencies of DPWH. LLDA for its part, invoking
42
DENR website, www.denr.gov.ph.
its mandate under RA 4850, wants to be involved in the preparation and

approval of the NSSMP, specifically as it concerns the LDBR.
LLDA has had conflicts with EMB as well. CWA proclaimed LDBR as
a water quality management area and LLDA as water quality governing board.
To implement the CWA in the region according to its charter, without having
to wait for guidelines from EMB, LLDA wanted to take immediate steps to
harmonize the implementing rules and regulations of CWA with the pertinent
provisions of the LLDA Law, RA 4850, as amended. Among the issues were
LLDA’s proposed use of other significant pollution parameters appropriate to
the Laguna de Bay that had been subjected to technical research, adoption of
more stringent effluent standards than DENR’s, continued imposition and use
of fines and penalties as provided in the LLDA Act, and continued issuance of
cease‑and‑desist orders and other legal orders against erring establishments.
It has been more than a year since LLDA requested such harmonization
efforts, yet DENR has not released the supplemental DENR administra-
tive order (DAO) for the harmonization. LLDA has constituted the water
quality governing board and continues to impose and use fines and to issue
cease‑and‑desist orders under the LLDA charter.
The question of which framework—IWRMF or IWQMF—has
supremacy over the other has been raised several times with varying responses.
IWQMF, unlike the IWRMF, is backed by a specific national law. Under the
CWA, EMB is assigned the task of integrating the water quality frameworks
prepared by all government agencies into the IWQMF. The intent is to have
a holistic national program of water quality management that does not treat
water quality management issues separately from concerns about water sources,
ecological protection, water supply, public health, and quality of life. On the
other hand, NWRB’s IWRMF promotes the coordinated development and
management of water, land, and related resources, to maximize economic and
social welfare without compromising the sustainability of vital ecosystems. An
“integrated integrated framework” may be considered in the future.
Another brewing conflict is that between DPWH and the RBCO under
DENR. RBCO is tasked with rationalizing the various river basin projects,
developing a master plan for flood control for these projects, and rationalizing
and prioritizing reforestation in watersheds. Natural resistance is expected
from DPWH, the lead agency for flood control projects, although RBCO
has been directed to coordinate with it. Besides, DPWH derives its mandate
from a republic act, while RBCO was created only by executive order.
Overlaps and conflicts of institutional mandates to grant permits for
resource use, set environmental requirements, collect fees, develop land, and
enforce compliance continue between the LGC, the Indigenous Peoples Rights
Act (IPRA) (1997), the Mining Law, and the NIPAS Act. Solutions to these
conflicts must consider community property rights in buffer and multiple‑use
zones, natural resource sharing arrangements, and social infrastructure sup-
port from LGUs. Memorandum Circular 2007-01 on ancestral domains in
protected areas, issued jointly by DENR and the National Commission on

Indigenous Peoples (NCIP), has tried to harmonize the implementation of
the NIPAS Act and the IPRA.
Still another issue is the conflict between mining and biodiversity conser-
vation objectives. National and local governments, NGOs, the private sector,
and other stakeholders must agree on environmental standards and acceptable
trade-offs to conserve biological diversity while generating jobs and income.
Simple, clear guidelines are needed for the free, prior, and informed consent
procedures of the NCIP, for DENR resource‑use rights and permits, for the
issue of ECCs within protected areas, and for bioprospecting requirements,
to minimize illegal entry, harvesting, and bioprospecting, as well as collu-
sion. National and local incentives and disincentives for upland communities,
fisherfolk, private investors, and DENR protected area superintendents and
their staff must also be harmonized.
Passage of Other Important Legislation
Some major ENR laws need to be strengthened or updated. The Public

Lands Act (1936) (Commonwealth Act 141), for one, has never been revised
or amended.
A list of environment-related bills that have been submitted for delibera-
tion in the Senate and the House is in Appendix 4. Of the 1,987 bills filed in
the Senate about 143 are on ENR; in the House, only about 24 of the 2,283
bills filed are on ENR. Some bills submitted separately to the Senate and
the House are on the same topic. Quite a number are area specific. The fol-
lowing major bills should be pursued: Philippine Environmental Protection
Authority Act, Bioorganic Farming Promotion Act, Philippine Climate
Change Act, Renewable Energy Act, Land Administration Reform Act,
Water Resources Management Act, and Free Patent Act.
Congress has held hearings and technical working group meetings on
the Sustainable Forest Management and Land Use bills. In 2007, the Senate
Committee on Environment had its first public hearing on the Unified Land
Use Policy Bill.
Improvement of the Environmental Impact

Statement System
A 2007 study on the PEISS (World Bank 2007a) pointed out that the system
applies to a wide range of business undertakings, a majority of them small
scale; is administered by a central government agency, with LGUs in a very
limited role; is highly regulatory and control oriented in implementation;
pays relatively less attention to technical aspects, resulting in generally poor

environmental assessment, and critical analyses lacking in focus and depth;
has many overlaps with laws handled by other agencies; and has complex
but poor follow‑up and monitoring procedures and virtually no evaluation.
The PEISS, according to the study, is effective in forcing action and compel-
ling proponents to disclose the environmental impact of their projects and
undertakings, but not as a planning tool. Most environmental assessments are
still applied downstream of key feasibility decisions. The planning contribu-
tion was achieved in programmatic environmental assessments introduced in
1995 but was not implemented.
Moreover, the EIA framework does not require consideration of cumu-
lative effects. Government plans and programs that could have significant
environmental effects therefore escape scrutiny of their environmental con-
sequences. Whether the MTPDP, for example, underwent environmental
assessment is doubtful. If it had, it would not have stipulated annual growth
of 3.1%–3.6% in commercial fisheries, because overexploitation has rendered
such growth almost impossible. Similarly, the targeted 7.6% yearly increase in
aquaculture may not have considered the consequences for coastal ecosystems
(ADB 2004a).
Moreover, although the projects under many of the plans are not large
enough to require a formal environmental assessment and an associated envi-
ronmental management and monitoring plan, their cumulative impact may
be significant. The various small projects that escape environmental scrutiny
could be nibbling away at important watershed functions and environmen-
tal resources. Perhaps the most serious of these unexamined projects is the
extensive road building that often accompanies rural development. While the
positive socioeconomic benefits are many, road building makes areas with high
biodiversity much more accessible and can also cause significant soil erosion.
In 1996, a policy study under the USAID-funded Industrial Environ
mental Management Project recommended that government programs
undergo environmental assessments similar to ADB’s, instead of the EIS
requirements under PD 1586, which apply to project-specific assessments.
The recommendation, however, was not adopted.
Incomplete Devolution of ENR Functions to LGUs

A review in 2003 of the progress of devolution and decentralization in
the Philippines (Government of the Philippines, World Bank, and Asian
Development Bank 2003) concluded that LGC implementation is still con-
strained by lack of coordination between national and LGU plans; institu-
tional arrangements for service delivery; local capacity to produce revenues
to finance activities; and technical and managerial capability to design,
implement, maintain, and evaluate programs. DENR has been devolving its
functions to LGUs for the past 15 years, without much success. Many LGUs
do not actively assume the new functions because they are not ready for them,
were not properly told about their new functions or trained to carry them out,
do not have the benefit of follow‑up by DENR regional offices after devolu-
tion, cannot fund the devolved functions, or do not earn revenue from the
devolved projects and hence do not give them much attention.
A DILG-commissioned study in 2005 called the state of ENR devolu-
tion “partial and at worst, minuscule and insignificant.” The devolved func-
tions were mainly peripheral, with low private sector investment interests, or
those that were costly to perform. Among these functions were watershed
regulation, greenbelt and tree‑park development, farmer-level integrated
social forestry, and small‑scale mining, all of which do not attract significant
investments from the private sector or are limited to certain LGUs. The con-
trol of smoke-belching vehicles, the management of solid wastes, and coastal
zone regulation and protection are devolved functions that require substantial
investments from LGUs.
In 2007, ADB also commissioned a study on the devolution of
DENR functions, to help identify responsibilities in the Integrated Coastal
Resources Management Project (ICRMP). The study pointed out the insti-
tutional weaknesses in most of the 206 Protected Area Management Boards
(PAMBs) revealed by a 2003 UNDP study; only five were fully constituted
boards backed by specific laws, while the rest were still interim boards. In
forest management, personnel devolved to the provincial governments to
implement the Integrated Social Forestry Program could not carry out their
functions for lack of financial resources and were eventually given other
work to do. Similarly, LGUs had neither the technical staff nor the funds for
the land management and environmental management functions that had
been devolved to them. In mines and geosciences, although only the issue of
small‑scale mining permits was devolved, LGUs did not have the capability
for comprehensive assessments of the resources and environmental impact
of the mining projects. Moreover, the function was allegedly being used to
reward political cronies.
The ADB study also noted that very few DENR and LGU officials knew
about the manuals on devolved functions, and fewer still were implementing
them.43 A system that called for DENR to monitor the progress of devolu-
tion, included in the manuals, was never put into operation.
43
In the mid-1990s, the DENR developed five operating manuals to guide the transfer of
functions and responsibilities to LGUs. One manual contained general, administrative, and
financial guidelines. The four others were specific to forest management, land management,
protected areas and wildlife, and environmental management.
Although devolution has yet to succeed, and LGUs show little capability
for fully technical roles, the CWA also makes them share the responsibility
for managing and improving water quality within their jurisdictions. Each
LGU has to prepare a compliance scheme within 6 months of the establish-
ment of the water quality management area action plan and have the scheme
reviewed and approved by the governing board. Through its ENR office,
each LGU has to monitor water quality, prepare and carry out emergency
responses, comply with the IWQMF, participate actively in water quality
protection and rehabilitation, and coordinate with other government agen-
cies, civil society, and the concerned sectors in the prevention and control of
water pollution.
A stronger approach is needed and particular attention must be given to
realizing the objectives of devolution and making it sustainable. For DENR,
devolution should mean not only complying with the law but also improving
ENR protection and management. LGUs, on the other hand, should accept
responsibility for managing the environment in their localities and fulfill it.
From Sector-Based to Integrated, Ecosystem-Based

Planning and Management
The continued development of institutional mechanisms for ecosystem-

based planning and management presents a major institutional challenge as
well as an opportunity. Sectoral approaches, which dominate planning in the
Philippines, do not effectively consider effects, constraints, or opportunities
in other sectors or administrative jurisdictions. Important ENR trade‑offs are
manifested only during implementation, creating inter-sectoral conflicts.
Among recent attempts to apply integrated, ecosystem-based planning
and management to major ENR programs and policies, a national watershed
management strategy has been completed with the support of the Danish
International Development Agency and the World Bank (as part of its
Country Water Resources Assistance Strategy). An investment project in the
Bicol River Basin, together with a basin master plan, has been prepared, and
three priority watersheds within the river basin have been identified. The
investment project will involve the formation of the Bicol River Basin board,
initially with representatives of the central government departments that sit
on the NWRB, and eventually also LGUs; watershed management planning
and implementation by the LGUs in the three priority watersheds; and the
provision of irrigation and flood control infrastructure that extends across
several LGUs.
Together with these initiatives, the Government is taking steps to
consolidate and rationalize key ENR management functions. The NWRB
has been transferred under DENR to further consolidate in one agency the
responsibility for water resources planning, management, and protection. The
National Integrated Coastal Management Program is adopting integrated
coastal management as a national strategy for sustainable development to
preserve ecological integrity while achieving food security, sustainable liveli-
hood, poverty reduction, and less vulnerability to natural hazards.44 NWRB
has been working to produce an IWRMF to promote the coordinated
development and management of water, land, and related resources and thus
maximize economic and social welfare in an equitable manner, without com-
promising the sustainability of vital ecosystems.
The CWA’s integrated approach to the designation of WQMAs requires
using appropriate physiographic units (such as watersheds, river basins, or
water resources regions) where similar hydrologic, hydrogeologic, meteo-
rologic, or geographic conditions affect the physicochemical, biologic, and
bacteriologic reactions and diffusion of pollutants, or where there are com-
mon or similar development problems or prospects. EMB is drafting the
procedural guidelines and facilitating WQMA action planning, through the
JICA Capacity Development Project on Water Quality. The IWQMF will
also allow the synchronized implementation of CWA activities by several
implementers and key stakeholders.
Need for Increased Efforts in Forest Management

and Biodiversity Conservation
DENR attributes the rise in forest cover to stronger public awareness of
the value of forests. Massive reforestation was also undertaken under the
donor-supported National Forestation Program and forestry sector pro-
gram loans. The overall success of these programs compared with past
reforestation efforts is due to the following factors: a shift in government
policy from reforestation,by upland settlers employed as daily workers by the
Government, to contract reforestation by upland settlers; private sector initia-
tive (645,000 ha of the forest cover is on privately titled lands); and stricter
enforcement of the reforestation requirements for DENR licensees and les-
sees. The 3-year contracts to plant and maintain an area give communities
a greater incentive to ensure the survival of what they plant, since they may
eventually receive a grant to manage these planted areas for 25 years.
The National Biodiversity Strategy and Action Plan (NBSAP) (2002)
prepared by DENR and financed in part by ADB identified priority ter-
restrial and marine conservation areas on the basis of biological priority and
44
Executive Order 533, 6 June 2006, Office of the President of the Philippines, Manila.
socioeconomic pressures. The analytical work supporting the NBSAP found

the system of terrestrial protected areas biologically inadequate. Only about
8% of the land base of the Philippines is protected, versus the international
minimum coverage of 12% fixed by the International Union for Conservation
of Nature (IUCN). Degraded and converted habitats make up a high per-
centage of the terrestrial system; about half of the national parks are no longer
biologically important. Not all of the remaining original forest is protected.
The coverage of the terrestrial system is biased toward the biologically poorer
highland areas. The main gaps in the terrestrial system are the Luzon and
Mindanao lowlands, the Sulu islands, Negros, Basilan, Dinagat, Camiguin
Sur, and Samar. Protected‑area boundaries also often show little relation to
appropriate forest boundaries.
The NBSAP recommended applying the internationally recognized
IUCN classification system of protected areas to these priority conservation
areas once they become part of NIPAS. Some conservation categories in the
IUCN system allow for sustainable human use. The NBSAP also recom-
mended enlarging and redesigning the terrestrial portion of the Philippine
protected area system to free up land with no residual biodiversity value and
being used for agriculture or some other purpose, including all remaining
natural forestland in NIPAS, and extending the logging ban to areas of
degraded habitats that contain significant biodiversity and including these
areas in NIPAS.
The NBSAP outlined strategies and action plans to be implemented by
DENR. DENR is, however, expected to need substantial assistance (techni-
cal and financial) to meet NBSAP objectives and targets. The Conservation
Priority‑Setting Program (Ong et al. 2002) and Key Biodiversity Areas,
NBSAP iterations that are being jointly undertaken by DENR-PAWB,
Conservation International and the University of the Philippines–Center for
Integrative Development Studies, give details of areas in the Philippines that
are important for the conservation of biodiversity and are the basis for the
proclamation of areas under the NIPAS.
Climate Change Mainstreaming in the Government Program
Many factors make it difficult for the Philippines to fulfill its UNFCCC
commitments. In the national inventory of GHG emissions, the availability,
reliability, and variability of activity data and local emission factors, coupled
with institutionalization and links among government agencies involved in
the inventory, are still major concerns. Another important issue is the afford-
ability and availability of GHG mitigation technologies (e.g., use of renew-
able resources in power production). The country needs help in overcoming
market barriers to the widespread use of renewable resources.
Adaptation measures for coping with the impact of climate change were
initially identified following vulnerability assessments in the various sectors.
More in-depth studies must be undertaken to enable the country to develop
appropriate measures. Given the economic condition of the country, outside
assistance is imperative.
A working paper produced by the World Agroforestry Center in 2008
came to the conclusion that climate change has not been integrated into major
government plans and programs, particularly the MTPDP, the Philippine
MDG report, and the Philippine Agenda 21 (Lasco et al. 2008). Climate
change is mentioned only once in the MTPDP and the Philippine Agenda 21,
and not at all in the MDG progress report. The MTPDP mentions climate
change in the context of opportunities presented under the CDM to develop
indigenous energy resources. The focus is on income‑earning potential.
Moreover, because of the geographic location of the country, there is much
emphasis on adapting to risks of variable or extreme weather. Destructive
natural disasters, particularly typhoons, happen every year, and policy-
makers are understandably more concerned with immediate needs than with
the long‑term effects of climate change.
On the other hand, many of these short-term measures, while not suf-
ficient, could become a strong foundation for building adaptation to climate
change. For example, flood control projects, into which massive investments
are being poured, should consider climate‑change scenarios, such as precipi-
tation. The fact that many infrastructure projects in the country are funded
by foreign donors offers another opportunity. More and more, these donors
are exploring how they can integrate climate change adaptation into their
project portfolio.
Need for Increased Financing for Environmental Projects
Adequate funding for ENR protection and management is a marked need in

the Philippines. The degraded condition of natural resources and the worsen-
ing state of environmental resources (water quality), coupled with the generally
free access to natural resources, are serious issues that must be addressed. Their
resolution is complicated by the inadequacy of government budgets and poli-
cies for the participation of stakeholders in ENR management. Considerable
financial support has come from the international development community,
but it has generally not addressed the question of financial sustainability
directly. Long-term sustainable funding of ENR protection and management
must involve other sources, including the private sector and civil society.
The MTPIP contains information on possible sources of funding for
ENR plans and programs. The national Government provides half of the
funds, government–owned and controlled corporations and government
financial institutions about 20%, donor agencies 18%, and the private sector
12%. Even LGUs are providing funds.
Private sector investment in environmental management has considerably
increased, particularly for regulatory compliance. DBP has mobilized about
$282 million in ODA loans for environment initiatives and has approved
$70 million in loans for various environment initiatives, $108 million of this
amount for 49 water projects.45 Environmental projects funded with loans
from DBP include facilities for the treatment of wastewater and hazardous
waste, solid waste management projects, cleaner‑production projects, biogas
digesters, desulfurization plants, plant relocation projects, water supply sys-
tems, and the purchase of CAA-compliant buses.
Investments in biofuel projects and in CDM projects have also dramati-
cally increased. A number of foreign companies with local partners plan to
set up and operate 15 biofuel refining facilities with an investment of about
$450 million, and at least four applications for biodiesel feedstock plantations
are pending with the DOE.46
The Government should be able to maintain and increase private sector
interest to support the Government in ENR protection and management.
Need to Improve and Widen the Use

of Market-Based Instruments
The development and use of market-based instruments (MBIs) continues

to be modest. Policy formulation and implementation for MBIs has been
hindered by several factors, including government regulators’ perceptions of
loss of control or greater unpredictability of environmental outcomes from
the implementation of an emission or effluent charge; legislative restrictions
on the imposition of a pollution tax; lack of concrete evidence that MBIs have
actually worked; and lack of information needed to formulate and implement
a large MBI portfolio, and monitor its management.
But there have been successes, especially in waste minimization,
deposit refund and environmental guarantee fund (EGF) establishment,
and the application of a EUFS in the Laguna de Bay Region. Waste mini-
mization and cleaner‑production technologies were earnestly promoted by
the Government in the 1990s, particularly through the USAID-funded
Industrial Environmental Management Project and the World Bank–funded
Metropolitan Environmental Improvement Project. Both projects docu
mented success stories nationwide. But the efforts were apparently not
sustained after the projects.
45
Development Bank of the Philippines website, www.devbankphil.com.ph.
46
Manila Times, 30 January 2008.
Waste minimization and cleaner‑production technologies have since been

integrated by most industries into their business operations as a requirement
of their mother companies, as a goal for ISO 14001 certification, or merely as
part of corporate social responsibility. In 2004, DBP signed an MOA with the
Cebu Chamber of Commerce and Industry, the Metro Cebu Environmental
Initiatives Council, and the Pollution Control Association of the Philippines
and EMB in region 7 to promote cleaner‑production technologies in the
region. The highlight of the agreement was the selection of five companies
out of more than 70 to receive citations for outstanding cleaner‑production
practices. The five winners were also granted 5-year continuous validity of
their permits by EMB. Again, however, there was no follow-up after that.
EGF is considered a form of MBI created under the PEISS (PD 1586).
An EGF is set up by proponents for projects that pose significant public risk
or require rehabilitation or restoration as a direct consequence. It is also used
to compensate those affected by the negative impact of the projects and to
fund community-based environment-related projects including information,
education, and communication (IEC) activities and emergency prepared-
ness programs. The fund should be readily accessible and is managed by a
committee composed of representatives from the EMB central and regional
offices, affected communities, concerned LGUs, and government agencies
identified by EMB.
Recycling and reuse of materials is another MBI worth pursuing. The
Metro Manila Solid Waste Management Study (ADB TA-3848 PHI)
estimated that Metro Manila alone generated 2 million tons of potentially
recyclable materials in 2001. In 2002, only about 25% was recovered by the
recycling NGO Linis-Ganda. According to the study, reducing solid waste
by 10% can save about $7.7 million in solid waste management cost. This
clearly shows the positive impact of recycling on national and local govern-
ment budgets. The study added that local supply of recyclable materials does
not appear to match the demand. One large paper company alone could buy
all the recyclable paper in Metro Manila, but only 10% of its requirements
can currently be supplied.
The Philippine Business for the Environment (PBE), created in mid-
1990, spearheaded and still operates the Industrial Waste Exchange Program
(IWEP). IWEP used to be funded by USAID, but after the project and
IWEP’s evident success, PBE decided to take over the program and all the
expenses related to its operation. IWEP maintains a database of waste genera-
tors and waste buyers and recyclers, and has brought about several successful
matches between these two groups.
The 2007–2008 JICA study on the recycling industry in the Philippines
mentioned the uneven quantity and quality of domestic supply among the
factors affecting the sustainability of the industry. Insufficient quantity
causes dependence on imported materials and disrupts business operations.

Unbalanced quality makes the recycling industries less productive and effi-
cient in their use of resources. Having to remove and treat impurities and
residues also increases the total operating cost and reduces the profitability
of the business as a whole. Other issues affecting the development of the
recycling industry in relation to the existing infrastructure are the high cost of
electricity, inefficient collection, and transportation of recyclable materials.
LLDA’s environmental user fee system, begun in January 1997, is the
most successful MBI instrument so far. It integrates command-and-control
(CAC) and MBI mechanisms to improve environmental enforcement and
compliance in the LBDR. The EUFS is now an integral part of LLDA’s
Environmental Management Program. To reduce pollutant load in the bay
it makes companies that discharge into the bay directly accountable for the
environmental damage they cause. Environmental degradation and improve-
ment costs thus figure in business decisions and actions. Regulated companies
have a strong incentive to reduce the BOD concentration of their wastewater
discharges, although some have been known to dilute their discharges to avoid
higher fees. Input water must be properly priced to avoid perverse responses
to the EUFS.47 The CWA has institutionalized the EUFS, including the
wastewater discharge fees first implemented by LLDA, nationwide.
ENR Concerns and Poverty Reduction
Environmental degradation is both a cause and an effect of poverty. It

deprives the poor of natural resources and therefore livelihoods, affects their
health, and increases their vulnerability. On the other hand, poverty forces
overexploitation of natural resources. Poverty reduction in the Philippines has
been slow and income inequality is high. In 2003, about 25% of Philippine
families and 30% of the population were poor, and in 2006 the Gini coeffi-
cient of per capita income, at slightly over 0.45, was among Southeast Asia’s
highest (ADB 2007e).
Access to land, a key determinant of welfare in the rural areas of the
Philippines, is highly inequitable and the inequity is worsening. Between
1960 and 2002, the Gini coefficient of land distribution increased from about
0.5 to about 0.57; in East Asia and the Pacific as a whole, it declined from
0.47 to 0.41 (ADB 2007e).
Poverty reduction programs in the rural sector are improving productiv-
ity and the income of the majority of the population. Farmers and fishermen
47
International Lake Environment Committee Foundation (ILEC). Laguna de Bay: Experience and
Lessons Learned Brief. Available: www.ilec.or.jp/eg/lbmi/reports/.
are the target beneficiaries. While agriculture is the largest employer, it is

also the sector where poverty is most intense. Most programs have been
going on for a long time, but, for lack of resources, the positive results are
too slow in coming.
Agriculture has not yet reached its agronomic limits. Despite limitations
imposed by soil loss and declining watershed integrity, yield and cropping
intensity can be increased. An important factor behind the relatively low agri-
cultural productivity may be the suitability mismatch between agricultural
land and its use. Much of the country’s agriculture is practiced on marginal
land. Intensifying agriculture-based enterprises in new or marginally produc-
tive land, as indicated in the MTPDP 2004–2010, can improve rural incomes
and ultimately reduce poverty. Considering the fragile state of agricultural
lands, however, planned agribusiness ventures must incorporate environmen-
tal safeguards.
In the urban areas, informal settlers are contributing to the congestion.
In 2004, for the bottom decile of the population, access to electricity was
about 35%; to safe drinking water, 25%; and to safe sanitation, a little over
40%. For the top two deciles, the corresponding figures were 100%, 80%, and
100%. Access to electricity and potable water across regions is also highly
unequal, with the NCR far better served than ARMM (ADB 2007e).
The 2002 APIS shows that only 70% of the poorest had access to safe
drinking water, defined as an own-use or shared faucet or an own-use or
shared tubed or piped well. Among the poorest, only 12.1% have faucets
for their own use. The largest proportion of families using unsafe water
sources—dug wells, rivers and streams, rainwater, water from peddlers—is
in ARMM, where more than 35% of the poor rely on dug wells, and 26% on
rivers and streams. Shared tubed or piped wells, while considered a safe water
source, are not always convenient. People, especially women, often spend a
good deal of time fetching water for their families’ daily use. This is a drain
on productivity (ADB 2005).
Poor water and sanitation services have pushed up infant and child mor-
bidity in the secondary cities of the country. Some improvements in urban
infrastructure have been achieved with ODA assistance, but the financing
needed to narrow the gap is growing and is not likely to be met from tradi-
tional sources.
Better environmental management can create more, and better, liveli-
hood opportunities and improve security for people living in poverty. Better
understanding of the links between poverty and the environment can lead
to informed and effective local, national, and global policies to fight both
poverty and environmental problems.
Property rights are especially significant, as they lay the foundation

for natural resource use. Incentives in the form of regulated prices, taxes,
and subsidies can send important signals to resource users about economic
opportunities. Natural resource use should be seen not only in the context of
limiting access and exploitation, but also from the perspective of sustainable
opportunities for poverty reduction (ADB 2005).
Chapter 4
Strategic Priorities
T
he following strategic priorities are areas of intervention where the
Philippine Government may need assistance in responding to the
challenges and opportunities in ENR management. These priori-
ties take into consideration the environmental concerns of the country, as
well as the country’s current regulatory and institutional framework. Also
included are regional and global ENR concerns. These priorities support the
MTPDP and MDG targets of the Government and ADB’s long-term stra-
tegic framework.
Extensive Institutional Rebuilding and Strengthening

of DENR
The ENR sector is perhaps the most heterogeneous sector in the bureau-
cracy. It involves several subsectors, concerns, and disciplines. The DENR
and its attached agencies have overextended mandates and limited capacity.
Extensive institutional assessment and rebuilding are priorities. The assess-
ment would support DENR’s rationalization plan, and lead to better plan and
program priorities and to a stronger organization. The resulting master plan
for DENR will make the agency more robust and able to withstand changes
in leadership.
The rationalization plan is expected to be considered soon and DENR
should be able to reorganize once it is approved. Capacity building, both in
the technical aspects and in good governance, should be properly planned
and carried out, together with equipment and technological improvements,
for the effective implementation of the DENR mandate. Policies, guidelines,
standards, and other directives should be harmonized and disseminated at all
levels of the institution and the Government (central, regional, and local). At
the same time, DENR should communicate and engage with Congress to
secure the passage of other important environmental laws.
The environmental trust funds supporting the various parts of the
DENR mandate (e.g., CAA, CWA, ESWMA) should be made operational.
The ICT Master Plan should be finalized and implemented. The DENR
mandate to educate and disclose environmental information to the public

requires a comprehensive, sustainable, and effective IEC program. Other
institutional support systems should be identified and included in the overall
master plan.
Such extensive institutional assessment and rebuilding will need the
support of international donors and fund providers like ADB. The rebuild-
ing program is expected to take several phases, and a number of years, to
implement.
Better Management of ENR Data and Information

Data and information related to ENR management in the Philippines can be
improved in two main areas: adequacy of basic data and information used in
planning, management, and decision making; and management and dissemi-
nation of the data and information. The Framework Plan for Environment
and Natural Resources Management identifies the DENR’s basic data and
information needs related to forest cover, extent and definition of protected
areas, and property boundaries. Data and information about the status of
ENR in the Philippines are scattered over several organizations, and unreli-
able in quality and format because of the fragmented responsibility for data
collection and management, limited information sharing, and often-incon-
sistent methods of data collection, among other reasons. Without good‑
quality data that allow comparisons between provinces and regions, and
between the urban and rural sectors, the country’s progress toward the MDG
targets cannot be assessed with any certainty (Government of the Philippines
and UNDP 2003).
ENR concerns in the Philippines would be better understood if watershed
assessments also analyzed the relative importance of the causes of declining
watershed integrity; the national land classification system reflected ENR
management needs rather than historical requirements for resource extrac-
tion, and became the basis for land resources monitoring; coastal ecosystems
were monitored; the viability and coverage of the marine component of the
protected area system were assessed; fishery data were collected and analyzed
to support the required policy shift toward fisheries management and conser-
vation, and away from fisheries exploitation; the monitoring of compliance
with water and air quality regulations could be made more robust; ambient
urban environmental quality (water and air resources) could be monitored
more widely; and knowledge could be increased, renewed, shared, and
improved to build intellectual capital in water quality management, including
online monitoring and compliance databases.
In particular, DENR should make the establishment of a decision sup-
port system and a computer-based communication system a priority.
Restructuring and Refocusing of the Philippine

Environmental Impact Statement System
Priority should be given to restructuring and refocusing the PEISS. An ADB
and World Bank study recommended decentralizing and deconcentrating
environmental assessment, improving its quality, simplifying the require-
ments, focusing environmental assessment resources on environmentally
critical projects and prioritizing ECA mapping, moving toward sector and
regional assessment, and studying the costs and benefits or impact of new
regulations. Follow‑on assistance from ADB may be needed to implement
these recommendations.
Genuine Devolution and Decentralization

of ENR Functions
More, and better, resources and stronger coordination between DENR and
the LGUs will be needed to complete the devolution of ENR functions.
DENR should be proactive, but LGUs should also be willing and able to
accept ENR management responsibilities. LGU capacity can be validated
through screening. This process will improve understanding of devolution
and affirm commitment to sustainable ENR management as a collective
responsibility.
Continued Application of Integrated Approach

to Planning and Management
The DENR has adopted an integrated approach in many of its plans and
programs. This ecosystem-based geographic focus should continue. DENR
should develop an integrated sustainable management plan for priority eco-
systems. In deciding on priority ecosystems, the DENR could set geographic
priorities for investments and interventions that will help the country achieve
key MDG and MTPDP targets in an integrated manner.
The PAMBs and the management boards overseeing air and water
quality are all geared toward community-based resource management. In
these boards, local communities and LGUs have significant roles in imple-
menting specific ENR mandates, while DENR provides overall guidance,
direction, and management. In the context of integrated ecosystems man-
agement, strengthening the integration of these boards across sectors will
help in minimizing conflicts and managing the local environment effectively.
Communities will need extensive capacity building to manage area-wide
environments. DENR and the LGUs must be creative in developing simpler,

more localized, and more innovative approaches for integrated ENR man-
agement and monitoring.
Adoption and Application of Spatial Development Plans
Various ODA agencies are assisting the Government in improving nation-

al and regional physical framework planning. As of December 2007, about
1,381 LGUs had approved CLUPs. These CLUPs are, however, backed by
too little spatial data and information to integrate environmental concerns
meaningfully. LGU must become better able to develop and use spatial infor-
mation in local development plans.
But even when these plans are well integrated with ENR data and infor-
mation and respond well to the MTPDP requirements, local, regional, and
national implementation remains a challenge. A case in point is the current
state of infrastructure development in the LDBR. Most LGUs in the region
have approved CLUPs, which presumably include land‑use plans. But illegal
structures—barangay halls, schools, community gymnasiums, slaughter-
houses—some of them owned by the LGUs themselves, are in full view along
the coastline. LLDA, which is responsible for managing and protecting the
use of the bay, must engage the cooperation of these LGUs in implementing
the master plan for the sustainable use of the bay.
To improve the environmental sustainability of land and natural resource
allocation, use, and management, spatial development plans linked to national
and regional physical framework plans must be in operation in the provinces
and municipal levels. Not only will environmental concerns become an inte-
gral part of development decisions, but disaster‑prone areas will also be easier
to identify and the design of mitigation measures more straightforward.
Increased Financing for Environmental Infrastructure

Programs and Projects
Lack of access to safe water supply and sanitation facilities, combined with
poor drainage, poses health risks, especially to the urban poor. According to a
World Bank estimate, a 10-year program (2005–2015) for treating domestic
wastewater in rural areas (costing $1.0 billion) and a piped system in urban
areas (costing $3.1 billion) would require $350 million per year in operating
costs aside from the capital costs of $4.1 billion. The Government’s current
budget deficit and the high cost of providing sanitation and sewerage services
would not allow these investments to be recouped within 10 years. Private
sector participation and investment should therefore be encouraged, and

users should pay the appropriate user fees (World Bank 2003a).
Industries will also need substantial investments in wastewater treatment
facilities, air pollution control devices, and hazardous waste treatment facili-
ties to comply with CAA and CWA requirements, and cities and industries
must put up solid waste management facilities. Pollution prevention and
reduce‑reuse‑recycle programs should accompany these investments.
Environmental financing must be made more accessible to private indus-
try, LGUs, water districts, and research institutions for their infrastructure
and research and development needs.
Use of Market-Based Instruments to Promote ENR

Programs and Projects
With the success of EUFS in the Laguna de Bay and the explicit requirement
for its use under the CWA, the nationwide implementation of the fee system
for the sustainable financing of environmental programs and economically
efficient pollution control will be a priority. This approach will encourage
pollution prevention (reduce-reuse-recycle) approaches and incentive‑based
environmental policy tools like trading and environmental management sys-
tems. To implement the EUFS and other MBIs EMB will need to shift from
a purely CAC to a combined CAC-MBI approach.
MBI-based programs should be promoted and improved. New MBIs
(e.g., point‑nonpoint source trading programs, incentive regulation, environ-
mental management systems, public disclosure systems), particularly those
that are applicable to the ENR subsectors, may be studied. User fees (pay-
ment for environmental services), for example, may be suitable for water dis-
tricts and water concessionaires that get their water from specific watersheds.
The fees may be used to protect and maintain these watersheds. Any one
or a combination of these MBI approaches can be used in the context of an
integrated ENR management project.
Integration of ENR Principles into Poverty

Reduction Programs
Investments in the implementation of the Comprehensive Agrarian Reform
Program (CARP) are important for reducing rural poverty, but they have
to incorporate ENR principles to be environmentally and economically
sustainable and viable. Upland agriculture, for example, is contributing to top-
soil loss with long-term negative consequences for agricultural productivity
on‑site, and to off-site sedimentation, with impact on downstream irrigation,

livelihood activities, and water supply to communities. It is not known how
much of the 2 million hectares of agriculture land in upland areas has been
formalized through CARP investments and is practicing sloping agricultural
land technology.
Institutional capacity for urban water quality management in Metro
Manila is being strengthened through the ADB-funded Pasig River
Environmental Management and Rehabilitation Sector Development
Program. But in secondary cities water supply and sanitation systems continue
to deteriorate for lack of maintenance and investment. The immediate prior-
ity is to integrate basic sanitation into targeted poverty reduction programs in
slum areas and regions that are lagging behind.
Deforestation, poor agricultural practices and consequent land degrada-
tion and loss of productivity, pollution of water bodies affecting aquaculture,
and destruction of coastal and marine ecosystems exemplify the link between
environment and poverty that is costing the livelihoods of the most vulner-
able and the poor. New projects and programs should take this connection
between ENR and poverty into account.
Chapter 5
Implications
for the Country
Partnership Strategy
ADB’s Long‑Term Strategic Framework48
The long-term strategic framework for 2008–2020 (Strategy 2020), replac-

ing the long‑term strategic framework for 2001–2015, gives ADB a more
relevant and innovative role in shaping the region’s future. ADB’s corpo-
rate vision under Strategy 2020 continues to be “an Asia and Pacific free of
poverty,” and its mission is to help its developing member countries (DMCs)
reduce poverty and improve their lives.
ADB will direct its efforts at three complementary strategic agendas:
inclusive growth, environmentally sustainable growth, and regional integra-
tion. To better mobilize resources and to maximize returns on its unique
regional experience and comparative strengths, ADB will apply itself to five
drivers of change: private sector development and private sector operations,
good governance and capacity development, gender equity, knowledge solu-
tions, and partnerships.
Its operations will have five core specializations—infrastructure, envi-
ronment including climate change, regional cooperation and integration,
financial sector development, and education—that best support its chosen
agendas, reflect the DMCs’ needs and ADB’s comparative strengths, and
complement the efforts of development partners. In other areas, ADB opera-
tions will selectively continue on the basis of country priorities and needs and
other partners’ undertakings.
48
Taken from ADB (2008b).
Environmental49 Components of Key ADB Strategies

for the Philippines
Philippine Country Partnership Strategy
CPS 2005–2007 covered only 3 years because of the economic uncertainties

foreseen in 2005. After 2007, ADB and the Government agreed on a country
operations business plan (COBP) for 2007–2008, which extended the CPS till
2008, and ADB prepared another COBP for 2009–2010 to extend the CPS
further and to smooth the transition to CPS 2011–2015. CPS 2011–2015
will be aligned with the new MTPDP, which starts in 2011.
CPS 2005–2007 assigned priority to binding constraints on more rapid,
more inclusive growth and swifter poverty reduction. Deviating somewhat
from ADB’s past model of engaging with the Philippines, it paid greater
attention to the sustained quality of the portfolio, to thematic, rather than
sector-based, strategies (fiscal consolidation, improved investment climate,
and accelerated attainment of the MDGs), and to greater project selectiv-
ity. CPS 2005–2007 set no annual lending targets, accommodated political
and economic uncertainties, and emphasized results-based partnerships with
high lending contingent on macroeconomic performance. It pursued sector-
specific reforms, wider partnerships, and, most importantly, explicit align-
ment with Philippine national priorities. Substantial policy-based operations
gained prominence in support of reforms.
ADB released COBP 2007–2008 in September 2007 and finalized
COBP 2009–2010 in 2008. Both COBPs retain the priorities of CPS
2005–2007 (e.g., infrastructure, environment, and financial sector develop-
ment) with pipelines of new lending and nonlending products. The emphasis
on investments in MDG-related programs, infrastructure, and the environ-
ment is expected to intensify in CPS 2011–2015 as the country strives to
become more competitive, to achieve environmental sustainability, and to
reduce poverty.
Government-ADB Poverty Partnership Agreement
The Government-ADB Poverty Partnership Agreement (PPA) signed in

October 2001 expressed ADB’s strategic support for the Government’s efforts
to meet the major goals of MTPDP 2001–2004: macroeconomic stability
and equitable growth, agricultural modernization with social equity, compre-
49
Unless otherwise specified, the term “environmental,” as used in this section of the report, is
taken to include natural resources.
Chapter 5: Implications for Country Partnership Strategy 129
hensive human development and protection of the vulnerable, and promotion

of good governance and the rule of law. MTPDP 2004–2010 embraces these
same goals. Strategic support for the ENR sector, as spelled out in the PPA,
takes the form of “community‑based natural resource management and envi-
ronmental protection as elements of comprehensive rural development.”
Philippine Urban Infrastructure Road Map
The ADB Urban Infrastructure Sector Roadmap (2008) for the Philippines
is a tool for information management, planning, and performance monitor-
ing. It provides a snapshot of the state of urbanization, and identifies and pri-
oritizes future urban infrastructure needs in response to urbanization trends.
The road map supports strategic decisions regarding investment priorities of
the Government and ADB, and the allocation of TA resources for the prepa-
ration of new investment projects, or grant funding for pilot projects, through
mechanisms like the Japan Fund for Poverty Reduction ( JFPR). It deals in
particular with the country’s actions toward the attainment of the MDGs.
The road map will become part of the CPS, and will be updated each time
the CPS is updated.
ADB’s Environment Policy
ADB’s Environment Policy (2002) sets the direction for the inclusion of envi-
ronmental considerations in the Philippine lending program. The policy, as
applied to the Philippines, enjoins ADB to help ensure that environmental
resources on which the poor depend are managed sustainably and that envi-
ronmental quality is improved, to make economic development more sustain-
able by correcting market and policy failures and bringing about institutional
change to speed up the flow of resources for environmental improvement, to
help maintain global life support systems and address regional trans‑bound-
ary issues relevant to the country, and to engage a wide range of stakeholders
in tackling environmental problems effectively.
Environmental Considerations in the Philippine

Lending Portfolio
The recent lending portfolio for the Philippines had declining invest-
ment in projects with significant ENR components, an increasing propor-
tion of environmental lending to the rural sector; a small percentage (less
than 10%) of proposed lending fulfilling the environmental objectives of the
PPA, and a modest percentage (10%–20%) of proposed lending fulfilling the

environmental objectives of the most recent CPS (and therefore the corre-
sponding MTPDP in general).
Current Portfolio
Since ADB started lending to the Philippines in 1969, it has approved

196 loans totaling $9.2 billion. Of these, 46 loans were for agriculture and
natural resources (16.63% of the total) and 20 loans were for water sup-
ply, sanitation, and waste management (7.90%). Multi-sector loans, which
included environment-related activities, were 12.71% of the total amount
(ADB 2007c).
From one of ADB’s weakest, the Philippine portfolio has been trans-
formed into one of its best portfolios, thereby enhancing development
impact and providing a solid platform for new operations. Project compo-
nents that were unlikely to deliver expected outcomes were redesigned or
canceled, policy reforms were accelerated to facilitate program loan disburse-
ments, implementation oversight was strengthened, portfolio reviews were
enhanced, and more attention was given to quality at entry for new activities.
Project outputs could thus be delivered faster and better to stakeholders.
ADB’s disbursement of $836.6 million in 2006, its highest ever, resulted
in the first positive net resource transfer of $268.5 million from ADB to
the Philippines since 1997. The agriculture and natural resources sector
had a 39.1% success rate for 23 projects that were rated and a 46.2% success
rate for 13 water supply, sanitation, and waste management projects rated
(ADB 2007c).
COBP 2009–2010 and the upcoming CPS 2011–2015 are likely to
have a higher proportion of project lending than CPS 2005–2007 because of
the national Government’s improved budget position, the renewed priority
assigned by the Government to the public infrastructure and social sectors,
new modes of ADB lending, and more liberal cost sharing for project lending
by ADB.
Portfolio in CPS 2005–2007, COBP 2007–2008,

and COBP 2009–2010
Since January 2005, ADB has approved six public sector loans total-
ing $1.109 billion (74% of the high case scenario), $1.055 billion (95%) of
which was for policy-based operations, and $13.7 million for six TA- and
grant-financed projects; generated $559 million in cofinancing; approved
$24.4 million for private sector operations; and made two peso bond issues
totaling $136 million, to finance local currency operations. Among the pub-

lic sector loans was an environmental project loan, the Integrated Coastal
Resource Management Project (ICRMP) worth $38.8 million, and an advi-
sory TA project, Sustainable Aquaculture Development for Poverty Reduction
($0.7 million). Lined up for 2008 was the Agrarian Reform Communities II
Project ($85 million), and for 2009 the Integrated Natural Resources and
Environmental Management Project ($80 million). Much is expected from
these environmental projects, particularly in increasing participatory and
local management of natural resources and integrating poverty reduction
and environmental management. ADB is also planning project preparatory
TA (2009), followed by a loan project (2010), for environmental improve-
ment in the Agusan River Basin in Mindanao. An objective will be to bring
the integrated basin management approach into the project development
mainstream. Another loan project slated for 2010 is the Irrigation Systems
Operations Efficiency Improvement Project ($50 million). In the 2009–2010
pipeline are the Metro Manila Urban Services for the Poor and Water District
Development projects.
The 2005–2007 lending program was processed largely as planned.
But alternative financing was sought for the Angat Water Utilization and
Aqueduct Improvement Project, and the Agrarian Reform Communities II
Project was moved to the 2008 pipline and the Irrigation Systems Operations
Efficiency Improvement Project ($50 million) to 2010. Appendix 5 shows
the status of public sector lending and private sector operations and nonlend-
ing operations.
Strategic Issues
Largely sectoral approaches to socioeconomic development in general and

ENR management in particular impede environmentally sustainable eco-
nomic growth. ADB is therefore promoting integrated approaches in ongoing
projects like ICRMP, which seeks to improve the protection and manage-
ment of productive natural resources in the coastal areas. Similar approaches
were taken in the advisory TA for the Master Plan for Agusan River System,
which is slated to be a loan project in 2010. Through these integrated proj-
ects, as well as stand‑alone water supply, sanitation, and waste management
projects, ADB will support MDG targets and improve the environment and
well-being of the people.
ADB has provided assistance in implementing the ARC approach. The
Agrarian Reform Communities Project (ARCP) was implemented with
ADB support, and its second phase is undergoing approval by ADB.
ADB’s water portfolio in the Philippines has been reduced over the
years. Advisory TA supported the preparation of a master plan for the Agusan
river basin, one of the priority river basins being considered for a river basin
organization under the RBCO of DENR. The ADB‑financed analytical and
planning framework is providing the basis for further substantive discussion
and partnership with RBCO.
Support for irrigation and agriculture has centered on rehabilitating
infrastructure, extending the command area, and developing institutions.
While the infrastructure interventions have generally been successful, the
transfer of operation and maintenance responsibilities and the introduction
of higher‑value cropping strategies have encountered difficulties.
According to an ADB case study on environmental safeguards in the
Philippines (part of a four‑country study in 2006), the Philippines’ and ADB’s
project environmental categorization systems have similar environmental
assessment requirements and recognize the need for open and proactive
consultations to promote project acceptability and participatory develop-
ment. A unique aspect of the Philippine system is the separate category for
environmental improvement (ADB 2007b). Institutional capacity (in the
national and local governments) and the ENR legal and policy framework
have significant limitations.
Ineffective spatial planning and gaps in data and information manage-
ment, requiring, among others, public awareness building through IEC
activities in projects and DENR’s comprehensive master plan implementa-
tion, are strategic areas on which ADB can focus its attention.
Possible ADB Interventions

Mainstreaming of Environment Considerations in Government
Policies and Investment Programs
The ADB case study on environmental safeguards in the Philippines recom-

mended that ADB’s environmental assistance to the Philippines focus par-
ticularly on improving local capacity to implement and monitor compliance
with environmental protection policies and laws. Such assistance can be at
the project level (through the monitoring of ADB-funded projects), at the
sector level (through technical and other assistance), or at national and local
government levels.
Many environmental assessments in ADB-financed projects must com-
ply with the environmental policies and procedures of both the Government
and ADB, and duplication sometimes results. Although ADB’s Environment
Policy (2002) sees the need for integration with national procedures, this har-
monization is yet to be fully achieved (ADB 2006c).
The need to strengthen country safeguard systems is recognized in
ADB’s safeguard policy update. ADB should work with the Government
to develop policies and procedures that will fully integrate environmental

considerations into the development policies, programs, and projects of the
Government; help harmonize its ENR and climate change laws and poli-
cies, and resolve institutional conflicts and gaps; and strengthen capacity and
remove constraints on planning, implementation, and enforcement of ENR
laws, regulations, and policies.
Environment as a Core Area of Operation
ADB intends to promote and invest in more sustainable environmental man-

agement projects while capitalizing on its operational strengths. The emphasis
will be in the core areas of climate change, livable cities, and complementary
actions. Projects initially identified for the Philippines that respond to both
ADB’s and the Government’s priorities are grouped below under ADB’s focal
areas.
Infrastructure and Climate Change

ADB will help DMCs move their economies into low-carbon growth paths
by improving energy efficiency, expanding the use of clean energy, reduc-
ing fugitive GHG emissions such as methane from landfills, modernizing
public transport, and arresting deforestation. ADB will also help DMCs
adapt to the unavoidable impact of climate change through planning, defen-
sive measures, insurance and other risk-sharing instruments, and “climate-
proof ” projects. Disaster risk management will be a vital part of development.
Sustainable management of forest and other natural resources for the provi-
sion of clean water supplies, biodiversity protection, and carbon sequestration
to offset GHG emissions will be part of ADB’s response to climate change
(ADB 2008c).
The objectives of the Philippine Government in the energy sector are
secure, accessible, and reasonably priced energy supply; cleaner and more
efficient energy; strong partnership and collaboration with key partners and
stakeholders; and empowered and protected energy publics. ADB should
help the Government more directly to meet these objectives while seeing to it
that the power projects conform to the Power Sector Development Program
(Loan 2282-PHI) and ADB’s climate change programs.
The $200 million private sector loan for the acquisition and rehabilita-
tion of the Masinloc coal-fired thermal power plant is fully in line with ADB’s
country and energy sector strategies and the Power Sector Development
Program. But a remedial action plan is needed to rectify significant environ-
mental issues related to air emissions, wastewater, stormwater and drainage,
materials handling and storage, waste management, marine ecological impact,
and contaminated groundmass. Rehabilitation should restore the plant to its
original operating and environmental performance with no expansion or

addition, improve operating efficiency, reduce environmental emissions, and
increase the health and safety standards of the plant.
The Renewable Energy and Livelihood Development for the Poor in
Negros Occidental project (grant; PHI37267-01) responds to this type of
intervention and at the same time, to ADB’s ultimate goal of poverty reduc-
tion. This JFPR project is promoting the efficient use of renewable energy to
sustain the livelihood of poor local communities in off-grid areas in partner-
ship with the private sector and civil society.
With respect to “green” environment issues, investments to create or
enhance forest capital have consistently been much less than disinvestments
(caused by deforestation and forest degradation). ADB should help contain
the loss of forest cover, using a river basin or landscape approach, and support
projects that do not adversely affect forest capital and biodiversity resources
(ADB 2006b). Economic instruments (payments for environmental services,
CDM, etc.) that incorporate biological diversity and climate change mitiga-
tion or adaptation concerns (through global funds like GEF, regional initia-
tives like the CTI) and poverty‑environment links will be integrated into
projects.
Interventions that help the Government to realize its water resource and
water quality management frameworks in the context of river basin planning
likewise complement ADB’s ICRMP. Investments in water supply and sanita-
tion infrastructure fully support the CWA and the MDG. ADB projects that
will promote interventions in this area are the Integrated Natural Resources
and Environmental Management Program, the Agusan River Basin Master
Plan project, the Irrigation Systems Operation Efficiency Improvement
Project, and the Agrarian Reform Communities II Project.
ADB should consider a project that would improve upland rural liveli-
hood through environmentally appropriate crop diversification in priority
upland areas. Candidate priority areas would be watersheds with significant
problems of inappropriate agricultural cultivation in sloping upland areas,
an approved watershed management plan, no other constraints (land titling,
CARP completion, rural infrastructure, transportation for inputs and for
products), and beneficiaries already participating in community-based forest
management.
Livable Cities
To reduce the carbon footprint of Asia’s cities, ADB will assist DMCs and
their municipalities in addressing a range of environmental problems result-
ing from rapid urbanization. These concerns include air and water pollution,
pollution-causing transport, solid waste management, and urban waste.
Another area needing urgent attention in the wake of rapid urbaniza-

tion is water supply, sanitation, and waste management. Opportunities for
partnerships between the public and private sectors should be pursued, par-
ticularly in efficient urban transport systems, to contain air pollution.
The main cities of the Philippines have received significant lending
assistance from ADB, the World Bank, and JBIC for urban environmental
infrastructure to ensure that urban environmental quality keeps pace as much
as possible with the rapidly growing urban population. But similar invest-
ments in many secondary cities are still needed. Two projects being developed
by ADB to provide urban environment infrastructure for Manila and second-
ary cities are the multitranche Metro Manila Services for the Urban Poor and
the Water District Development Project.
ADB will continue to help achieve the MTPDP objective of “creating
[a] healthier environment for the population” by improving air and water
quality, urban infrastructure, and marine and coastal resource management.
Complementary Actions
ADB will help bring environmental concerns into the DMC policy and
investment program mainstream, while strengthening the capacity of public
institutions for ENR regulation and enforcement. In its operations and coun-
try systems, ADB will continue to reinforce environmental safeguards and to
promote and support regional cooperation in ENR management (e.g., CTI,
use of GEF funds and CDM to respond to regional and global concerns).
Interventions that integrate economic instruments (e.g., reduce‑reuse-recycle,
pollution prevention, environmental management systems, pollution charges,
trading, payment for environmental services, public disclosure systems) and
poverty‑environment links will be prioritized. These initiatives and interven-
tions will also provide effective approaches to the sharing of environmental
public goods and facilitate the transfer of knowledge in environmental man-
agement and new technologies.
ADB should give priority to the institutional rebuilding of DENR, per-
haps in cooperation with other funding agencies, and as a component of other
projects or as a separate major project. Supporting the devolution of ENR
management will be a crucial aspect of this assistance.
Effective spatial planning laws, plans, institutions, and implementation
mechanisms, as well as ENR data and information management and support
for environmental awareness building through IEC activities will need to be
made part of the development mainstream through ADB’s TA and project
intervention activities.
With a CPS 2011–2015 for the Philippines and a new MTPDP expected
by 2011, ADB and the Government will continue to develop other projects
and technical assistance for the environmental priorities and concerns identi-
fied in this analysis that will also be consistent with ADB’s Strategy 2020 and
the Government’s new MTPDP.
Strategic Environmental Evaluation of Proposed Pipeline

Projects in COBP 2009–2010 and CPS 2011–2015
The projects lined up for COBP 2009–2010 and anticipated in the upcom-
ing CPS 2011–2015, will undergo environmental evaluation based on ADB’s
Environment Policy (2002). At least some of these projects should deal with
the environmental issues and priorities discussed here, consistent with ADB’s
Strategy 2020 and the Government’s MTPDP and MDG targets.
Summary of Strategic Environmental Evaluation of

Proposed Pipeline Projects in COBP 2009–2010 and CPS
2011–2015
The strategic environmental assessment in Table 20 suggests ways of bring-

ing environmental assessment criteria into ADB’s project mainstream, in the
light of the challenges and priorities identified in this analysis.
Appendixes 6 and 7, after the table, present a summary of the results of
the consultative meetings on this report and a list of the participants at the
meetings.
Table 20: Strategic Environmental Evaluation of Proposed Pipeline Projects in COBP 2009–2010 and CPS 2011–2015
Project/ Environmental Opportunities Environmental
Program Issues Identified to Strengthen Risk Reduction
Name Type/Cost Proposed Activities in CSPU Assessment Project Measures
Integrated CPI, ENV; Phase I • Fragile • Mainstream • PPTA will Take into account
Natural PPTA, • Preparation of ecosystem of integrated explore lessons learned
Resources and project loan updated strategy potential project watershed possibility of from earlier
Environmental $0.850 million for integrated ENR sites management facilitating initiatives to
Management management of • Sensitivity of concepts resource ensure sustainable
Program watersheds and indigenous • Mainstream generation by management of
phased investment cultures, concepts related LGUs natural resources
program for technologies, to payment for • Options will be
implementation of and practices environmental considered for
the strategy • Watershed services mainstreaming
Phase II context • Strengthen local a mechanism
• Baseline studies environmental similar to
for detailed design institutions that used in
and feasibility • Adopt Rewarding
study for integrated low‑impact Upland Poor for
natural resources and proven Environmental
and environmental indigenous Services project
management technologies
• Detailed design and • Improve
feasibility study for environmental
investment project services by
• Confirmation of investigating
appropriateness opportunities
and acceptability of for CDM

feasibility study of
investment project
continued
Table 20 continued

• Consider
regional and
global impact
like climate
change
• Consider
downstream
impact on
streams and
habitats
including
coastal areas
• Implement
environmental
management
and monitoring
measures
adequate to
safeguard
unique
biophysical and
cultural features
of project sites
continued
Table 20 continued

Agusan River CPI, ENV; 271 projects to be • Projects poised • Strengthen local Consider lessons Should provide
Basin Master project loan implemented under to achieve environmental learned from for capacity
Plan Project $0.970 million 7 programs: significant institutions related watershed building
• RBO formation and environmental • Improve projects and for regional
development benefits environmental demonstration environmental
• Water quality • No project services by activities, agencies
management shows potential studying especially findings
• Flooding and to cause highly opportunities from ongoing
water-related risk problematic for CDM demonstration
management residual • Consider activity involving
• Water resources environmental regional and water pollution
development impact that global impact in Meycauayan
• Watershed will be beyond like climate River, Bulacan,
management mitigation or change in from artisanal gold
• Indigenous peoples will negate the project design and precious metal
development environmental • Consider refining industries
• Agusan marsh benefits downstream
wildlife sanctuary impact on
management streams and
habitats
including
coastal areas
continued
Table 20 continued

Irrigation NC, ENV; • Construction • Project will • Emphasize Emphasize • Build
Systems PPTA of Saug River strengthen natural resources multi‑sector mitigation
Operation $0.550 million, multipurpose system integrated (land and water) coordination measures into
Efficiency loan $30.0 • Rehabilitation of water resources management project design
Improvement million irrigation systems management in the context • Provide for
Project • Irrigation in river basins of river basins capacity
management where irrigation for sustainable building
transfer systems will be irrigation for regional
• Sector development rehabilitated services environmental
program (policy • About 32,000 • Build agencies
reform) hectares of land integrated pest
• Market and supply will benefit management

chain development from improved concepts
irrigation into project
services environmental
design
• Investigate
harmful
subsidies for
fertilizers and
pesticides
continued
Table 20 continued

Philippines NC, ECO; • Assess (i) physical, Consider water LGU infrastructure • Environmental
Basic Urban PPTA natural resources, supply and projects would have assessment
Services Sector $0.650 million and socioeconomic sanitation systems varying degrees should be
Project conditions in the for resettlement of environmental required, the
area, including land sites impact level and
use and zoning plans details of
and development which shall
constraints; depend on
(ii) infrastructure the types
needed to support of projects
social services and recommended
livelihood programs for financing
for families in • Program
depressed areas; and project
(iii) LGUs’ technical environmental
and administrative performance
capacity to plan, should be
implement, operate, monitored
and maintain
infrastructure
facilities; and
continued
Table 20 continued

(iv) comprehensive
medium- and long-
term infrastructure
development
planning and
institutional capacity
development for
LGUs in the project
area.
• Identify
representative
sample of six cities

and municipalities,
to provide basis
and criteria for
evaluating other
LGUs seeking
access to financial
facility through the
project.
continued
Table 20 continued

Strengthening NC, ECO; Strengthen local Environmental To be identified
Provincial/ AOTA government expenditure management
Local $0.65 million management, in systems should be
Planning and planning, investment emphasized
Expenditure programming, revenue
Management, generation, and
Phase II budgeting
SME Private sector; To be identified To be identified To be identified To be identified To be identified
Development $18.4 million
Support
(Financing
Access
Improvement
Project)
continued
Table 20 continued

Integrated CPI, ENV; • Institutional Will address social Environmental • Opportunity To be identified
Coastal project loan 35 strengthening and and environmental issues and concerns to link project
Resources project management issues in marine identified in CSPU with river
Management • Community-based and coastal sector concept paper are basin planning
Project coastal resource appropriate and assistance from
management valid ADB to develop
• Coastal pollution institutional
control mechanisms
• Coastal community for including
and livelihood coastal resource
development issues in river
basin plans.
During loan
fact-finding and
appraisal, assess
appropriateness
of including
Butuan Bay as a
subproject area
and, if possible
and appropriate,
link subproject
with Agusan
River systems
master plan.
continued
Table 20 continued

• Assess viability
and coverage
of marine
component
of protected
area system,
as was done
for terrestrial
component in
2002 NBSAP
preparation.
Costs would
be modest,
grant donor
financing could
be found, and
study could be
implemented by
an international
NGO active in
this sector in the
Philippines.
continued
Table 20 continued

Metro Manila ENV, CPI, • Address needs of • No significant • Project must To be identified In accordance
Urban Services GG, HD; TA urban poor families environmental conform to with ADB’s
for the Poor $1.2 million, in slums and impact that Philippine Environmental
(multi-tranch) loan, informal settlements needed further environmental Assessment
$765.74 million in Metro Manila; study was rules and Guidelines,
designed as pilot identified, and regulations conduct a policy
project in two cities no adverse and ADB’s EIA as part of
for future replication environmental Environment the project and
in other cities impact is Policy (2002); include results
• Long-term goal: anticipated if there is a in preparation of
improve living • If required, discrepancy slum eradication
conditions and IEEs and ECCs between the and upgrading
quality of life of for project two, ADB’s program, and

urban poor families activities will be policy will policy agenda
by providing processed prevail
infrastructure • Contractors
services, better must implement
environment, decent environmental
and affordable mitigation
housing with secure measures stated
tenure in existing or in IEEs
new settlements, and
improved informal
settlements
continued
Table 20 continued

• Major outputs:
site development
and infrastructure,
affordable housing
for the poor,
microfinance for
neighborhood and
home improvements,
capacity development,
and supporting policy
and sector reforms.
As part of first two
outputs, urban poor
families will receive
secure tenure through
usufruct agreements.
Infrastructure
services will include
neighborhood
services like water
supply, sanitation,
access roads
and footpaths,
drainage and flood
control, solid waste

management, and
street lighting.
continued
Table 20 continued

Renewable ENV, CPI, • Renewable energy To be identified Will require policy To be identified To be identified
Energy and HD; grant development and EIA under new
Livelihood $1.5 million efficient use of energy environmental
Development • Energy-based assessment
for the Poor livelihood guidelines
in Negros development
Occidental • Project management
and poverty impact
assessment
Strengthening ECO; PPTA • Consolidate and Environmental To be identified To be identified To be included in
of Electric $0.550 million, strengthen technical issues to be PPTA
Cooperatives loan and financial capacity identified in PPTA
$60.0 million of electric coopera-

tives to provide good,
affordable service in
rural areas
• Provide financing for
distribution system
upgrading, includ-
ing acquisition of
sub‑transmission sys-
tems from Transco,
which will enable
electric cooperatives
to participate in the
WESM
continued
Table 20 continued

Agrarian CPI, ECO, Project components Will require • Possible • As part of • Ensure
Reform PSD; PPTA similar to those of assurance that negative project design, environmental
Communities $0.200 million, ARCP I: (i) provision project benefits environmental assess land assessments
(ARCP) II project loan of rural infrastructure, all and not only consequences suitability include
$110 million (ii) land titling, the elite in the of land‑use to identify assessment
(iii) development communities, and practices environmentally of cumulative
support services, that new agriculture promoted as sustainable effects,
and (iv) project technologies do not a result of land‑use according
management and lead to excessive use agrarian reform practices, and to ADB
capacity building of of agrochemicals in uplands design and guidelines,
DAR, LGU, and ARC • Indirect effect of include project of increased
organizations road upgrading components accessibility
and extension to promote due to
is increased such land‑use rural road
accessibility practices that improvements,
to productive will maintain and effects
or protected watershed of project
natural integrity on priority
resources, conservation
and decreased areas identified
watershed in 2002
integrity NBSAP
through soil
erosion
continued
Table 20 continued

• Consider • Address
supporting cumulative
protection effects in
of priority environmental
conservation management
areas in project plan
area even if
environmental
assessment
concludes that
project will
have no impact
on those areas;
costs would
be relatively
modest and
grant financing
could be found
continued
Table 20 continued

Irrigation PI, ECO; For efficient and NIA is in financial • Likely to be • As part of Prepare a
Sector II PPTA sustainable water difficulties because a category B project design: programmatic
$0.9 million, management, national of low irrigation project. (i) identify environmental
sector loan irrigation systems service fee Environmental factors behind safeguards
$30 million should be rehabilitated collection ratio and assessment soil erosion that framework for
through participatory higher management should include possibly add sector investment
irrigation management cost of O&M of effects of project to O&M costs component
and transfer of irrigation facilities. on priority of irrigation
completed facilities to Beneficiaries conservation system; and
water user groups, and are unwilling to areas identified (ii) design and
should be financially pay fees because in 2002 cost remedial
sustainable. PPTA will irrigation water NBSAP. measures to
help the Government is not always • Poor watershed make project
formulate project to available. integrity more sustainable
improve water and caused by soil over the long
management efficiency erosion from term
in irrigation systems. uplands due to
inappropriate
land use
practices may
be increasing
O&M costs
of irrigation
systems
continued
Table 20 continued

• Will require • Consider
programmatic supporting
EIA under new protection
environmental of priority
assessment conservation
guidelines areas in the
project area even
if environmental
assessment
concludes that
project will
have no impact
on those areas.
Costs would
be relatively
modest and
grant financing
could be found.
continued
Table 20 continued

Intermodal NC, ECO, Will improve access to To be identified An indirect effect Consider • Ensure
Transport PSD; PPTA remote areas of southern of road upgrading supporting environmental
Development $1.0 million, Philippines (particularly and extension protection assessments
project loan Mindanao, Sulu, and is increased of priority include
$100 million Palawan) through a more accessibility to conservation assessment
efficient, complementary, productive or areas in the of cumulative
intermodal (air, sea, and protected natural project area even effects,
land) transport system. resources. This if environmental according
Critical issues will may be a particular assessment to ADB
include (i) improving issue in that part concludes that the guidelines,
infrastructure and of the project that project will have of increased
services on inter- and will improve the no impact on those accessibility
intra-island links, hinterland. areas. The costs from rural road
particularly on would be relatively improvements,
noncommercial routes, modest and grant and effects
through sustainable financing could be of project
funding mechanisms; found. on priority
(ii) improving conservation
intermodal and areas identified
hinterland connections; in 2002
(iii) attracting NBSAP
increased private sector • Address
participation; and cumulative
(iv) improving transport effects in EMP
safety.
continued
Table 20 continued

Development PI, ECO, Will prepare develop Environmental Environmental None Ensure PPTA
of Small-Scale PSD; PPTA ment plan for small concerns and issues issues and concerns includes EIA of
Gas Field and $0.95 million gas field and marsh gas to be determined identified in CSPU project
Marsh Gas in resources, and feasibility by PPTA concept paper are
the Philippines study for private sector appropriate and
financing, with ADB in valid
catalytic role
Strengthening ECO, GG; General objective: to Provincial Environmental Ensure that TA To be identified
Provincial ADTA strengthen provincial development issues and concerns paper objectives
Planning $0.20 million development planning, guidelines should identified in CSPU and scope, and
particularly for address social and concept paper are the consultant’s
economic growth and environmental appropriate and terms of reference,
poverty reduction. issues valid include the need
Specific objectives: to incorporate

(i) to formulate planning environmental
guidelines for provincial considerations
development planning, into planning
and (ii) to develop, development
through training, guidelines
provincial capacity for
development planning,
strategic prioritization,
resource allocation,
and investment
programming.
continued
Table 20 continued

Regional ENV; PPTA (i) Review and evaluate Will improve Environmental None None
Cities Air $0.70 million air quality in selected environment in issues and concerns
Quality regional cities, including regional cities. identified in CSPU
Improvement status, emission sources, No social or concept paper are
and institutional environmental appropriate and
arrangements; issues. valid
(ii) prepare air quality
management plan for
each city; (iii) identify
investment needed
to implement
plans; (iv) design
investment packages
for ADB funding; and
(v) conduct training to
strengthen institutional
capacity for air quality
management in regional
cities
continued
Table 20 continued

Mindanao CPI, ECO, Poverty reduction Address social Environmental None None
Upland ENV, GG; 30 among upland unrest and issues and concerns
Communities communities through environment identified in CSPU
Development community-based, degradation caused concept paper are
Project ecologically sustainable by poverty appropriate and
watershed and natural valid
resources management.
Components:
(i) agroforestry and
livelihood improvement,
(ii) infrastructure and
social development,
and (iii) watershed
management. Outputs:
improvements in
(i) infrastructure,
(ii) land productivity,
(iii) watershed
management, and
(iv) community skills.
continued
Table 20 continued

Aquaculture CPI, ECO, • Aquaculture • Issues • Build LGU Build on lessons • Ensure that
Development HD, GG; 30 development affecting the capacity learned from past aquaculture
particularly communities, to provide coastal and marine expansion
development and including technical resource projects does not occur
improvement of dwindling fish guidance to in the Philippines, in important
freshwater, brackish- stock in coastal operators particularly coastal
water, and marine and inland in feed regarding ecosystems
fish farming systems, waters due to management community group and protected
and aquatic species overfishing, • Use carrying formation, credit areas
(carp, tilapia, eels, degradation capacity as basis provision, and • Evaluate
turtles, groupers, of natural fish for zoning strengthening of carrying
sea bass, prawns, habitats, and • Determine local rules and capacity of the
milkfish, aquarium water pollution, number and regulations system
fish, seaweeds, and pond spacing of cages
shellfish, seahorses, management on the basis
wrasses, etc.) • Water of carrying
• Development of pollution from capacity
production support aquaculture • Monitor water
services, particularly • Water pollution quality
postharvest, from industrial
processing, and activities and
marketing facilities, improper waste
and extension management
services
continued
Table 20 continued

• Institutional • Low LGU • Strengthen
strengthening and capacity LGU’s, BFAR’s,
project management, • Lack of and DENR’s
specifically technical capacity
development of know-how and and resolve
aquaculture policy enforcement duplicative
and regulation, among local responsibilities
and aquaculture governments • Consider
production and approach based
market information on integrated
system watershed
management
ADB = Asian Development Bank, ADTA = advisory technical assistance, AOTA = advisory and operational technical assistance, ARC = agrarian reform
community, BFAR = Bureau of Fisheries and Aquatic Resources, CDM = Clean Development Mechanism, CPI = core poverty intervention, CSPU = country
strategy program update, DAR = Department of Agrarian Reform, DENR = Department of Environment and Natural Resources, ECC = environmental compliance
certificate, ECO = economic growth, EMP = environmental management plan, ENR = environment and natural resources, ENV = environmental protection,
GG = good governance, HD = human development, IEE = initial environmental examination, LGU = local government unit, NBSAP = national biodiversity
strategy and action plan, NC = not classified in concept paper, NGO = nongovernment organization, NIA = National Irrigation Administration, O&M = operation
and maintenance, PI = poverty intervention, PPTA = project preparatory technical assistance, PSD = private sector development, RBO = river basin organization,
SME = small and medium-sized enterprises, TA = technical assistance, Transco = National Transmission Corporation, WESM = wholesale electricity spot
market.
Appendixes
Appendix 1: Water Quantity Scorecard for Major Rivers and Basins and Hot Spots Rating
for Water Quantity
Yearly Water Requirement Yearly Water
(in MCM) in 2005 a Availability b Water Rating
3
Major River Water Resources Potential Potential m/ Weighted Availa Weighted
Basin Region Potential Demand Ratio Rating person Ratio Rating Score Potential bility Score
Pasig-Laguna 4 (Southern 1,816 2,977 0.61 0.15 124 0.07 0.04 0.09 U U U
Tagalog)
Cebu Island c 7 (Central 708 932 0.76 0.19 218 0.13 0.06 0.13 U U U
Visayas)
Pampanga 3 (Central Luzon) 4,688 9.015 0.52 0.13 888 0.52 0.26 0.20 U U U
Agno 3 (Central Luzon) 2,275 4.063 0.56 0.14 972 0.57 0.29 0.21 U U U
Cagayan 2 (Cagayan Valley) 1,150 1,797 0.64 0.16 2,143 1.26 0.55 0.36 U M U
Jalaur 6 (Western 1,351 1,251 1.08 0.27 1,657 0.97 0.49 0.38 U M U
Visayas)
Bicol 5 (Bicol) 2,138 1,388 1.54 0.39 1,533 0.90 0.45 0.42 U M M
Ilog- 6 (Western 5,496 2,987 1.84 0.46 1,843 1.08 0.55 0.50 M M M
Hilabangan Visayas)
Agus 12 (Southern 1,449 665 2.18 0.57 5,070 2.98 0.62 0.60 M M S
Mindanao)
Davao 11 (Southeastern 1,476 297 4.97 0.66 2,368 1.39 0.56 0.61 S M S
Mindanao)
Tagoloan 10 (Northern 2,200 473 4.65 0.65 3,646 2.14 0.59 0.62 S M S
Mindanao)
Tagum- 11 (Southeastern 2,504 412 6.08 0.69 3,449 2.03 0.58 0.64 S M S
Libuganon Mindanao)
continued
Appendix 1 continued
Yearly Water Requirement Yearly Water

(in MCM) in 2005 a Availability b Water Rating
3
Major River Water Resources Potential Potential m/ Weighted Availa Weighted
Basin Region Potential Demand Ratio Rating person Ratio Rating Score Potential bility Score
Mindanao 11 (Southern 24,854 6,923 3.59 0.61 7,027 4.13 0.67 0.64 S S S
Mindanao)
Buayan 11 (Southeastern 3,672 701 5.24 0.66 5,656 3.33 0.64 0.65 S S S
Malungon Mindanao)
Abra 1 (Ilocos) 2,479 378 6.55 0.70 4,954 2.91 0.62 0.66 S S S
Panay 6 (Western 4,340 609 7.13 0.72 6,782 3.99 0.67 0.69 S S S
Visayas)
Cagayan de 10 ( Northern 4,326 355 12.18 0.88 9,321 5.48 0.73 0.80 S S S
Oro Mindanao)
Abulog 2 (Cagayan Valley) 1,827 237 7.72 0.74 19,228 11.31 0.97 0.86 S S S
Agusan 10 (Northern 15,984 1,037 15.41 0.98 13,732 8.08 0.84 0.91 S S S
Mindanao)
U = unsatisfactory, M = marginal, S = satisfactory.
a
At 80% dependability of surface water availability using low flow and adopting low economic growth scenario ( JICA-NWRB Master Plan Study on Water Resources
Management of the Philippines, 1998). Ratio of 2 or less is an indication of a shortfall that would create water shortage.
b
Amount of annual renewable water resources per capita ( JICA-NWRB Master Plan Study on Water Resources Management of the Philippines, 1998). Areas where
per capita water supply drops below 1,700 m3/year are experiencing water stress (World Resources Institute, 2000).
c
Cebu Island is included because it is second only to Metro Manila in economic significance.
Source: World Bank, Philippine Environment Monitor 2003 (National Water Resources Board–National Water Information Network Project; data compiled from
various feasibility studies of water districts, LWUA, 2003.
Appendixes 161
Appendix 2: Major Environment and Natural Resources Laws and Regulations
Title/Description Year Issued
General Environment and Natural Resources
EO 406: Philippine Economic-Environmental and Natural Resource Accounting (PEENRA) System 1997
EO 192: Reorganizing the Department of Environment and Natural Resources 1987
PD 1151: Philippine Environmental Policy, declaring it a continuous policy of the state to provide the people with a 1977
healthy environment
PD 1152: Philippine Environmental Code, outlining the state policy for the management of air and water quality and land 1977
use, natural resource management and conservation, waste management, etc.
PD 984: Pollution Control Law of 1976, mandating the creation of the National Pollution Control Commission and 1976
setting a national policy of preventing, abating, and controlling the pollution of water, air, and land, for more effective use
of resources
Forestry
EO 318: Promoting Sustainable Forest Management in the Philippines 2004
RA 9175: Chain Saw Act of 2002, regulating the ownership, possession, sale, importation, and use of chainsaws and 2002
penalizing violations
RA 8048: Coconut Preservation Act of 1995, providing for the regulation of the cutting of coconut trees, their 1995
replenishment, and other purposes
EO 277: Amending the Revised Forestry Code PD 705 by increasing the forest charges on timber and other forest 1987
products
PD 705: Revised Forestry Code 1985
BP 701: Amending section 36 of the Revised Forestry Code (PD 705) 1984
continued

PD 1775: Amending section 80 of the Revised Forestry Code (PD 705) prohibiting the cutting, destroying, or injuring of 1981
planted or growing trees, flowering plants and shrubs, or plants of scenic value along public roads, in plazas, parks, schools
premises, or any other public pleasure ground
RA 3572: Prohibiting the cutting of tindalo, akle, and molave trees under certain conditions, and penalizing violations 1929
Agriculture
EO 481: Promoting and developing organic agriculture in the Philippines 2005
RA 8532: Amending section 63 of the Comprehensive Agrarian Reform Program (CARP) Law of 1988 (RA 6657), 1998
providing an augmentation fund for the program
RA 8435: Agriculture and Fisheries Modernization Act of 1997, prescribing urgent measures to modernize the agriculture 1997
and fishery sectors, make them more profitable, and prepare them for the challenges of globalization through adequate,
focused, and rational delivery of services, and appropriating funds for that purpose
RA 7907: Amending the Code of Agrarian Reform in the Philippines (RA 3844), as amended 1995
RA 7881: Amending certain provisions of the Comprehensive Agrarian Reform Law of 1988 (RA 6657) 1995
RA 7905: Strengthening the implementation of the Comprehensive Agrarian Reform Program, and for other purposes 1995
RA 6657: Comprehensive Agrarian Reform Law of 1988 1988
EO 229: Providing for the mechanism for the implementation of the Comprehensive Agrarian Reform Program 1987
PD 2: Proclaiming the entire country a land reform area 1972
PD 27: Decreeing the emancipation of tenants from the bondage of the soil, transferring to them the ownership of the land 1972
they till, and providing the instruments and mechanism therefor
continued
Appendixes 163

Fisheries
RA 8550: Philippine Fisheries Code of 1998, providing for the development, management, and conservation of fisheries 1998
and aquatic resources, integrating all laws pertinent thereto, and for other purposes
DAO 03, s. 1998: Implementing rules and regulations for the Philippine Fisheries Code of 1998 (RA 8550) 1998
RA 8435: Agriculture and Fisheries Modernization Act 1997
BP 58: Amending the law prohibiting the catching, sale, offer to sell, or purchase of the fish species Gobiidae (ipon) (RA 1980
5474), as amended by RA 6145
PD 979: Providing for the revision of the Marine Pollution Decree of 1974 (PD 600) 1976
PD 601: Revised Coast Guard Law 1974
Mining
EO 689: Transferring back the Philippine Mining Development Corporation from the Office of the President to the 2007

DAO 16, s. 2005: Amending the revised implementing rules and regulations (DAO 96-40) for the Philippine Mining Act 2005
of 1995 (RA 7942), as amended, providing for exploration permits for financial or technical assistance in the conduct of
mineral exploration, and for other purposes
DAO 07, s. 2005: Amending chapter XVIII of the revised implementing rules and regulations (DAO 96-40) for the 2005
Philippine Mining Act of 1995 (RA 7942), as amended, providing for the establishment of a Final Mine Rehabilitation
and Decommissioning Fund
DAO 61, s. 2000: Amending the revised implementing rules and regulations (Amendment to DAO 96-40 [DAO 99-57]) 2000
for the Philippine Mining Act of 1995 (RA 7942)
continued

DAO 25, s. 1996: Amending section 257 of the implementing rules and regulations for the Philippine Mining Act of 1996
1995 (RA 7942)
DAO 40, s. 1996: Revised implementing rules and regulations for the Philippine Mining Act of 1995 (RA 7942) 1996
DAO 23, s. 1995: Implementing rules and regulations for the Philippine Mining Act of 1995 (RA 7942) 1995
RA 7942: Philippine Mining Act of 1995, instituting a new system of mineral resources exploration, development, use, and 1995
conservation
DAO 34, s. 1992: Implementing rules and regulations for the People’s Small‑Scale Mining Act of 1991 (RA 7076) 1992
RA 7076: People’s Small-Scale Mining Act 1991
DAO 85, s. 1990: Revised implementing rules and regulations for the Mine Waste Tailings Damage Law (PD 1251), as 1990
amended, imposing mine waste and tailings fees on operating mining companies to compensate for damages to private
landowners, and for other purposes
Coastal and Marine
DAO 2007-28: Institutionalizing the Manila Bay Environmental Management Project within the DENR through the 2007
implementation of the operational plan for the Manila Bay Coastal Strategy
EO 533: Adopting the Integrated Coastal Management Strategy 2006
DAO 2004-24: Revised rules and regulations for the administration and management of foreshore lands 2004
DAO 2002-08: Coastal Environment Program, establishing the Coastal and Marine Management Office as the national 2002
coordinating office for all coastal and marine environment activities
continued
Appendixes 165

Ecotourism
EO 111: National Ecotourism Strategy, creating the National Ecotourism Development Council (NEDC) and requiring 1999
the preparation of a National Ecotourism Strategy (NES) to guide the development of ecotourism in the country
Protected Areas and Biodiversity
EO 578: Establishing the National Policy on Biological Diversity, prescribing its implementation throughout the country, 2006
particularly in the Sulu-Sulawesi Marine Ecosystem and the Verde Island Passage Marine Corridor
RA 9147: Wildlife Resources Conservation and Protection Act, providing for the conservation and protection of wildlife 2001
resources and their habitats, appropriating funds therefor, and for other purposes
RA 9072: National Caves and Cave Resources Management Act, to manage and protect caves and cave resources, and for 2001
other purposes
DAO 44, s. 2000: Amending certain provisions of DAO 96-29 and providing specific guidelines for the Establishment and 2000
Management of Community-Based Projects within Protected Areas

DAO 20, s. 1996: Implementing rules and regulations for the prospecting of biological and genetic resources 1996
DAO 31, s. 1996: Amending section 61 of the implementing rules and regulations (DAO 25, s. 1992) for the National 1996
Integrated Protected Areas Act of 1992 (RA 7586)
EO 247: Prescribing guidelines and establishing a regulatory framework for the prospecting of biological and genetic 1995
resources, their by-products and derivatives, for scientific and commercial purposes, and for other purposes
DAO 25, s. 1992: Implementing rules and regulations for the National Integrated Protected Areas System Act of 1992 1992
(RA 7586)
RA 7586: National Integrated Protected Areas System Act of 1992 1992
continued

DAO 48, s. 1991: Establishing a national list of rare, endangered, threatened, vulnerable, indeterminate, and insufficiently 1991
known species of Philippine wild birds, mammals, and reptiles
PD 1219, as amended by PD 1698 (1980); Coral Resources Development and Conservation Decree 1977
Water Resources
EO 510: Creating the River Basin Control Office 2006
DAO 2005-10: Prescribing the implementing rules and regulations for the Clean Water Act 2005
EO 387: Transferring the Local Water Utilities Administration from the Office of the President to the Department of 2004
Public Works and Highways (DPWH) and strengthening the supervision of the Metropolitan Waterworks and Sewerage
System by the DPWH secretary
EO 359: Creating the Bicol River Basin project management office and defining its scope of authority 2004
RA 9275: Clean Water Act of 2004 2004
RA 8041: National Water Crisis Act of 1995 1995
PD 979: Marine Pollution Decree of 1976 1976
PD 1067: Water Code of the Philippines 1976
PD 856: Sanitation Code of the Philippines, setting the required activities in managing sewerage and corresponding 1975
systems
PD 274: Pertaining to the preservation, beautification, improvement, and gainful use of the Pasig River, providing for the 1973
regulation and control of pollution of the river and its banks to enhance its socioeconomic usefulness
continued
Appendixes 167

RA 4850, as amended by PD 813, EO 927: Creating the Laguna Lake Development Authority to accelerate the 1966
development and balanced growth of the Laguna de Bay region with due regard and adequate provisions for environmental
management
Air Quality
DAO 2000-81: Implementing rules and regulations for the Clean Air Act of 1999 (RA 8749) 2000
RA 8749: Clean Air Act of 1999, amending sections 57–66 provisions on air pollution control of PD 984; expanded the 1999
scope of activity of DENR by mandating the formulation of the Integrated Air Quality Improvement Framework
Energy
RA 9367: Biofuels Act of 2006, directing the use of biofuels, establishing the biofuels program for this purpose, 2007
appropriating funds therefor, and for other purposes
EO 290: Implementing the Natural Gas Vehicle Program for Public Transport 2004
RA 9136: Electric Power Industry Reform Act (EPIRA), stressing the development and use of indigenous and renewable 2001
energy resources to reduce the country’s dependence on imported oil and coal for power generation
Climate Change
DAO 2005-17: Prescribing the implementing rules and regulations for EO 320 2005
EO 320: Designating the DENR as the national authority for the Clean Development Mechanism (CDM ) 2004
Toxic Substances and Hazardous Wastes
DAO 29: Implementing rules and regulations for the Toxic Substances and Hazardous and Nuclear Wastes Control Act of 1992
1990 (RA 6969)
continued

RA 6969: Toxic Substances and Hazardous and Nuclear Wastes Control Act of 1990, regulating the importation, 1990
processing, manufacture, sale, distribution, use, and disposal of chemical substances and mixtures that present unreasonable
risk to public health and the environment
Oil Pollution
RA 9483: Oil Pollution Compensation Act of 2007, providing for the implementation of the provisions of the 1992 2007
International Convention on Civil Liability for Oil Pollution Damage and the 1992 International Convention on the
Establishment of an International Fund for Compensation for Oil Pollution Damage, providing penalties for violations
thereof, and for other purposes
Environmental Impact Statement
DAO 2003-30: Prescribing the implementing rules and regulations for the EIS System, further clarifying the coverage 2003
of the EIS System, and providing two criteria to be considered in determining the scope of the EIS System, namely: (i)
the nature of the project and its potential to cause significant negative environmental impact, and (ii) the sensitivity or
vulnerability of environmental resources in the project area.
AO 42: Streamlining ECC application processing and approval by specifying the endorsing official, approving authority, 2002
and processing timeframe for ECPs, projects within ECAs, and projects not covered by the EIS System
PD 1586: EIS System Law, limiting the application of EIA to environmentally critical projects or projects in 1978
environmentally critical areas
Solid Waste Management
DAO 2001-34: Implementing rules and regulations for the Ecological Solid Waste Management Act of 2000 (RA 9003) 2001
RA 9003: Ecological Solid Waste Management Act of 2000, establishing local solid waste management boards to develop 2000
10-year solid waste management plans and oversee their implementation, and calling for the institutionalization of a
national program to manage the transfer, transport, processing, and disposal of solid waste in the country
Appendixes 169
continued

Local Government
RA 7924: Creating the Metropolitan Manila Development Authority, mandating it to plan for, monitor, and coordinate 1995
the work of the local government units (LGUs) in its area of jurisdiction, and to provide services that can be delivered
more efficiently at the metropolitan rather than at the local government level
RA 7160: Local Government Code, devolving powers and responsibilities from the central Government to LGUs, 1991
allowing them to operate with far greater autonomy, and providing for an environmental management system and services
or facilities for general hygiene and sanitation, and infrastructure facilities including drainage and sewerage
Land Management
EO 690: Transferring the Land Registration Authority from the Department of Justice to the Department of Environment 2007
and Natural Resources
RA 7279: Urban Development and Housing Act of 1992, providing for a comprehensive and continuing urban 1992
development and housing program, and establishing the mechanism for its implementation
CA 141: Public Lands Act 1936

AO = administrative order, BP = batas pambansa (national law), CA = commonwealth act, DAO = Department of Environment and Natural Resources
administrative order, DENR = Department of Environment and Natural Resources, ECC = environmental compliance certificate, EO = executive order,
PD = presidential decree, LGU = local government unit, RA = republic act.
Appendix 3: Official Development Assistance to the Environment and Natural Resources Sector,
as of November 2007
Funding Total Project Cost ($’000) Project Project

Project Title Agency Loan Grant Gov’t Total Duration Location
Environment and Natural 78,195.65 48,812.10 11,751.86 138,759.61
Resource Management
Southern Mindanao JBIC 23,195.65 7,144.51 30,340.17 7 years Regions 11 (Malalag
Integrated Coastal (1999–2007) Bay–Balasiao Watershed,
Zone Management Davao del Sur) and
Project 12 (Sarangani Bay–
Mt. Matutum
Watershed, General
Santos City, Sarangani,
and South Cotabato)
Laguna de Bay WB/ 5,000.00 5,000.00 2,200.00 12,200.00 April 2004– Region 4
Institutional Netherlands March 2009 (Laguna de Bay)
Strengthening Gov’t
and Community
Participation
continued
Appendixes 171

Eco-Governance II USAID 19,000.00 19,000.00 5 years Regions 2 (Nueva
(Oct. 2004– Viscaya, Isabela,
October 2009) Quirino), 3 (Aurora),
7 (Bohol, Cebu, Negros
Oriental), 9 (Zamboanga
del Sur, Zamboanga
Sibugay), 11 (Davao
City), and 12 (North
Cotabato, South
Cotabato, Sarangani,
Sultan Kudarat), and
ARMM (Maguindanao,
Lanao del Sur, Basilan)
Environment, GTZ 12,025.00 12,025.00 July 2005– Regions 6 (Iloilo) and

Natural Resource June 2009 8 (Leyte and Southern
Management and Leyte)
Rural Development
(EnRD) Program
Partnership in UNDP/ 5,451.47 2,407.35 7,858.81 2000–2006 NCR (Manila, Navotas,
Environmental GEF (winding‑down Parañaque, Las Piñas),
Management for the period up to Regions 3 (Pampanga,
Seas of East Asia 2007) Bulacan, Bataan, Nueva
Ecija, Tarlac) 4 (Rizal,
Laguna, Cavite)
continued

Reversing UNEP/GEF 335.63 in kind 335.63 2002–2007 Regions 1, 3, and 4
Environmental and NCR
Degradation Trends
in the South China
Sea and Gulf of
Thailand
National Programme WB/GEF 50,000.00 7,000.00 57,000.00 2007–2012 Nationwide (SIM);
Support– GEF sites: Regions 3
Environment and (Nueva Ecija), 4A (Rizal,
Natural Resources Quezon), 5 (Camarines
Management Project Sur, Camarines Norte),
($50 million WB and 12 (Maguindanao,
loan under a budget North Cotabato, Sultan
support arrangement Kudarat)
Forestry 4,111.45 15,240.68 19,352.13
San Roque Gov’t 14,900.68 14,900.68 7 years CAR (barangays of
Multi-purpose (2001–2007) Ampucao, Dalupirip,
Project (Itogon Gumatdang, Loacan,
Integrated Watershed Poblacion, Tinongdan,
Management Tuding, Ucap, and Virac
Project)–DENR in the municipality of
Component Itogon, Benguet)
Appendixes 173
continued

Project for the JICA 3,500.00 340.00 3,840.00 June 2004– Region 3 (Pampanga,
Enhancement of June 2008 Tarlac, Bulacan, Bataan,
Community-Based Nueva Ecija)
Forest Management
Program in the
Philippines
Laguna de Bay Japan 358.45 Tax 358.45 2003–2015 Region 4 (Laguna de
Community Carbon Gov’t thru payment Bay)
Finance Project SPCCI/WB
Advancing the FAO 253.00 253.00 June 2006– Region 3, 7, and 11

Application of June 2008
ANR for Effective

Low-Cost Forest
Restoration
Biodiversity 9,398.11 4,332.00 13,730.11
Samar Island UNDP- 8,631.29 4,251.60 12,882.89 2000–2010 Region 8 (Samar Island)
Biodiversity Project GEF/
TRAC
continued

Mainstreaming NZAID 766.82 80.4 847.22 2004–2008 Regions 1 (Hundred
Ecotourism in the Islands National Park,
Community-Based Pangasinan), 5 (Mayon
Natural Resources Volcano Natural Park,
Management Albay), 7 (Rajah
(National Ecotourism Sikatuna Protected
Programme–Phase Landscape, Bohol),
II) Project and 12 (Lake Sebu
Forest Reserve,
South Cotabato)
Environment 20,212.00 45,158.50 12,478.02 77,848.52
Metro Manila ADB 20,212.00 5,454.00 25,666.00 7 years NCR, Regions 3 and 4
Air Quality (1999–December
Improvement Sector 2006), extended
Development Project up to Dec. 2007
(MMAQISDP)–
DENR Component
Ozone Depleting Multilateral 30,000.00 in kind 30,000.00 17 years Nationwide
Substances Phase- Fund of the (1993–2010)
Out Investment Montreal
Program, Phase II Protocol
continued
Appendixes 175

Capacity JICA 5,000.00 11.64 5,011.64 January 2006– Regions 3, 6, and 12
Development Project December
on Water Quality 2010
Management
Support Program GTZ 400.00 in kind 400.00 6 years Regions 6 (Iloilo City
for Solid Waste (2005–2010) and Passi City, Iloilo;
Management for Buenavista, Guimaras),
LGUs in the Visayas 7 (Mandaue City,
Cebu; Tagbilaran City,
Bohol; Dumaguete City,
Negros Oriental), and
8 (Tagloban City and
Maasin City, Leyte)

Manila Third WB/GEF 5,000.00 5,000.00 December NCR (Metro Manila)
Sewerage Project 2006–2010
(MTSP)
continued

Global program to GEF 4,108.50 7,012.38 11,770.88 September
demonstrate the 2007–
viability and removal September
of barriers that 2011
impede adoption UNIDO 650.00
and successful
implementation
of available
non-combustion
technologies for
destroying persistent
organic pollutants
Coastal/Marine 33,800.00 11,301.74 20,056.59 65,158.33
Bridging Consultancy NORAD 285.00 285.00 June Nationwide
(Support to 2005–2006,
Philippines Maritime extended up to
Claims under April 2007
UNCLOS)
Coastal Hazard Sida 378.45 378.45 January 2006– Nationwide
Management June 2007
Program
Appendixes 177
continued

Integrated ADB/GEF 33,800.00 9,000.00 19,520.00 62,320.00 July 2007–2012 Regions 2 (Cagayan),
Coastal Resources 3 (Zambales),
Management Project 5 (Masbate), 7 (Cebu,
Siquijor), and 11 (Davao
Oriental)
Camiguin NZAID 1,638.29 536.59 2,174.88 June Region 10 (Camiguin)
Coastal Resource 2007–2012
Management Project
(CCRMP)
Capacity Building 1,333.74 1,333.74
Environment UNDP 1,333.74 1,333.74 2005–2009 Nationwide
and Natural
Resources Capacity
and Operations
Enhancement
Programme
(ENR-CORE)
continued

Mapping 4,780.00 610.00 5,390.00
Study of Mapping JICA 4,080.00 610.00 4,690 February 2006– NAMRIA, nationwide;
Policy and Febuary 2008 pilot sites: Region 3
Topographic (Pampanga, Bulacan,
Mapping for Tarlac, and Nueva Ecija)
Integrated National
Development Plan in
the Republic of the
Philippines
Enhancement JICA 700.00 700.00 March 2006– NAMRIA, NCR
of Hydrographic March 2008 (Manila Bay), Regions
Capabilities for 4A (Batangas Bay)
Navigational Safety and 7 (Cebu Bay)
Ecosystem Research and 746.13 339.30 1,085.43
Development
Demonstration ITTO 629.87 270.00 899.87 November ASEAN countries; in
and Application 2005– the Philippines: Regions
of Production November 5 (Camarines Sur) and
and Utilization 2009 12 (North Cotabato)
Technologies for
Rattan Sustainable
Development
in the ASEAN
Appendixes 179
Member-Countries
continued

Research and Australian 116.26 69.30 185.56 January 2005– Region 8 (Leyte Island)
Development Government December
Project: Improving 2007
Financial Returns
to Smallholder
Tree Farmers in the
Philippines (ACIAR/
ASEM/2003/052)
Lands 18,995.30 19,313.00 2,284.90 40,593.20
Land Administration WB/ 18,995.30 19,313.00 2,284.90 40,593.20 5 years Regions 7 (Bohol)
and Management AusAID (2005–2010) and 8 (Leyte and
Program II 2 other provinces

to be identified)
Project Preparation and 1,618.00 515.00 2,133.00
Development
Master Plan Study ADB 970.00 420.00 1,390.00 Caraga and Region 11
on Integrated
Water Resources
Management for
Agusan River Basin
continued

Globally Important GEF/FAO 15.00 15.00 2005–2007 CAR
Agricultural Heritage
System–PDF-B
Climate Change WB/GEF 283.00 283.00

Adaptation (Phase I)
Project
Contaminated WB/GEF 350.00 95.00 445.00

Sites Remediation
Strategy–Persistent
Organic Pollutants
GRAND TOTAL 151,202.95 146,572.77 67,608.35 365,384.07
ADB = Asian Development Bank, ANR = assisted natural regeneration, ASEAN = Association of Southeast Asian Nations, AusAID = Australian Agency
for International Development, CAR = Cordillera Administrative Region, FAO = Food and Agriculture Organization, GEF = Global Environment
Facility, GTZ = German technical cooperation, ITTO = International Tropical Timber Organization, JBIC = Japan Bank for International Cooperation,
JICA = Japan International Cooperation Agency, LGU = local government unit, NAMRIA = National Mapping and Resource Information Authority,
NCR = National Capital Region, NORAD = Norwegian Agency for Development Cooperation, NZAID = New Zealand Agency for International Development,
Sida = Swedish International Development Cooperation Agency, SPCCI = Special Program on Climate Change Initiatives, TRAC = Target for Resource
Assignment from the Core, UNCLOS = United Nations Convention on the Law of the Sea, UNDP = United Nations Development Programme,
UNIDO = United Nations International Development Organization, WB = World Bank.
Source: Foreign Assisted and Special Projects Office, Department of Environment and Natural Resources.
Appendixes 181
Appendix 4: Senate and House Bills on Environment and

Natural Resources Filed at the 14th Congress
of the Philippines
Note: CA = commonwealth act, DENR = Department of Environment and

Natural Resources, HB = House bill, PD = presidential decree, SBN = Senate
bill no., RA = republic act
Forest Management
• SBN‑1952: Arbor Day Act of 2007, authorizing local government

units to declare a day dedicated to tree planting to be known as
Arbor Day, appropriating funds therefor and for other purposes
• SBN‑1714: La Mesa Watershed Reservation Act of 2007, establish-
ing the La Mesa watershed in the cities of Quezon and Caloocan
and in the municipality of Rodriguez, province of Rizal, as a water-
shed reservation and for other purposes
• SBN-1492: Forest Preservation and Rehabilitation Act of 2007, to
preserve and rehabilitate forests by banning all logging operations in
primary‑ and secondary‑growth forests and rain forests, and creat-
ing a task force for the purpose
• SBN-1391: Mount Isarog Special Ecological Tourism Zone, declar-
ing Mount Isarog Natural Park in the province of Camarines Sur a
special ecological tourism zone, and for other purposes
• SBN-1092: Palawan as Ecological Tourism Capital of the Philippines,
declaring the province of Palawan as the ecological tourism capital
of the Philippines, and for other purposes
• SBN-991: National Ecotourism Policy Act, providing for a national
ecotourism policy, establishing a framework for its institutionaliza-
tion, creating a mechanism for its implementation, and for other
purposes
• SBN-990: Forest Management, establishing forest management,
utilization, conservation, and preservation centers in provinces
inhabited predominantly by members of indigenous cultural com-
munities and upland families
• SBN-989: National Protection and Preservation of Mangrove Forest
Act, providing for the preservation, reforestation, afforestation, and
sustainable development of mangrove forests in the Philippines,
providing penalties therefor, and for other purposes
• SBN-872: Philippine Agroforestry Act of 2007, standardizing and
enhancing the practice of agroforestry in the country, creating the Board
Appendixes 183
of Agroforestry under the Professional Regulations Commission, and

appropriating funds therefor, and for other purposes
• SBN-852: National Protection and Preservation of Mangrove Forest
Act of 2007, providing for the preservation, reforestation, affor-
estation, and sustainable development of mangrove forests in the
Philippines, providing penalties therefor, and for other purposes
• SBN-785: Greening of Philippine Highways Act, requiring local
governments to plant trees along national and local highways within
their territorial boundaries, and for other purposes
• SBN-783: Anti-Logging in Watersheds and Protected Areas, defin-
ing the offense of illegal logging in watersheds and other protected
areas, and providing penalties therefor
• SBN-29: National Log Ban of 2007, establishing a ban on all log-
ging operations in the country to ensure the protection, preservation,
and rehabilitation of the Philippine environment, and providing for
citizens’ rights
• SBN-480: National Ecotourism Policy Act of 2007, providing
for a national ecotourism policy, establishing a framework for its
institutionalization, providing the mechanisms for its appropriate
implementation, and for other purposes
• SBN-477: Greening Act of 2007, promoting the urban and coun-
tryside greening of the Philippines
• SBN-443: Illegal Logging in Watersheds and Other Protected
Areas, defining the offense of illegal logging in watersheds and other
protected areas, and providing penalties therefor
• SBN-240: Revised Forestry Code of the Philippines (Sec. 78,
PD 705), amending section 78 of the Revised Forestry Code of the
Philippines (PD 705), as amended
• SBN-224: Billion Trees Act of 2007, to spur the planting of a bil-
lion trees through complementary tree planting programs of DENR
and various other government agencies, local government units and
communities, schools and universities, and civic and nongovernment
organizations, protecting the remaining natural forests and forest
plantations, and creating a fund therefor, and for other purposes
• SBN-222: Greening Act of 2007, providing for the urban and coun-
tryside greening of the Philippines
• SBN-80: Sustainable Forest Management Act of 2007, providing
for sustainable forest management
• SBN-73: Total Log Ban, totally banning logging operations for the
next 25 years, and for other purposes
• HB00043: Urging the President and the officials of the Department
of Environment and Natural Resources to declare a total log ban in
the third district in the province of Negros Occidental, appropriat-

ing funds therefor, and for other purposes
• HB00137: Instituting a self-sustaining forest management program,
by providing incentives to tree planters on private lands, forest lands,
and other public lands, and for other purposes
Land Management
• SBN‑1931: Public Land Act (Amendments), reforming the admin-

istrative titling process by amending certain provisions of the Public
Land Act (CA 141), as amended
• SBN‑1796: Land Administration Reform Act of 2007, institut-
ing reforms in the land administration system, creating the Land
Administration Authority, and for other purposes
• SBN-1451: Land Administration Reform Act of 2007, instituting
reforms in land administration
• SBN-1376: Organic Agriculture Promotion Act of 2007, provid-
ing for the promotion of organic agriculture in the Philippines, and
appropriating funds therefor
• SBN-988: Public Recreational Parks, establishing public recreational
parks in major urban areas, appropriating funds therefor, and for
other purposes
• SBN-913: Tree Legacy Act of 2007, instituting a self-sustaining
forest management program, by providing incentives to tree planters
on private lands, forest lands, and other public lands, and for other
purposes
• SBN-843: National Land Use Act of the Philippines, instituting a
national land use policy, providing the implementing mechanisms
therefor, and for other purposes
• SBN-814: Revised Public Land Act of the Philippines
• SBN-68: Land Administration Reform Act of 2007, institutional-
izing reforms in land administration, creating for the purpose the
Land Administration Authority, and for other purposes
Appendixes 185

• HB00057: An act mandating that at least 10% of government-owned
lands to be sold, alienated, or otherwise encumbered for develop-
ment purposes, be segregated for socialized housing projects
• HB00064: An act instituting a national land use policy, providing
the implementing mechanisms therefor, and for other purposes
Protected Areas and Wildlife Management
• SBN‑1655: Aurora Integrated Protected Landscape Act of 2007,

establishing the Aurora Integrated Protected Landscape, providing
for its management, and for other purposes
• SBN‑1985: Tubbataha Reefs Natural Park (TRNP) Act of 2007,
establishing the Tubbataha Reefs Natural Park in the province
of Palawan under the NIPAS Act (RA 7586) and the Strategic
Environmental Plan for Palawan Act (RA 7611), providing for its
management, and for other purposes
• SBN-1080: Malampaya Sound Protected Landscape and Seascape
(MSPLAS) Act of 2007, establishing the Malampaya Sound in the
municipalities of Taytay and San Vicente, province of Palawan, as a
protected area under the category of protected landscape and sea-
scape, providing for its management, and for other purposes
• SBN-1079: El Nido–Taytay Managed Resource Protected Area
(ENTMRPA) Act of 2007, establishing the El Nido–Taytay
Managed Resource Protected Area in the municipalities of El Nido
and Taytay, province of Palawan, as a protected area under the cat-
egory of protected landscape, providing for its management, and for
other purposes
• SBN-1078: Turtle Islands Wildlife Sanctuary Act of 2007, estab-
lishing the Turtle Islands Wildlife Sanctuary in the province of
Tawi-Tawi as a protected area, providing for its management, and
for other purposes
• SBN-1077: Mt. Balatukan Range Natural Park Act of 2007, estab-
lishing the Mt. Balatukan Range in the city of Gingoog and in
the municipalities of Claveria, Medina, and Balingasag, all in the
province of Misamis Oriental, as a protected area, under the cat-

egory of protected landscape, providing for its management, and for
other purposes
• SBN-1076: Northern Negros Natural Park (NNNP) Act of 2007,
establishing the area covered by the Northern Negros Forest
Reserve in the cities of Talisay, Silay, Victorias, Cadiz, Sagay, and
San Carlos and the municipalities of E. B. Magalona, Murcia,
Toboso, Calatrava, and Don Salvador Benedicto, province of Negros
Occidental, as a protected area, providing for its management pur-
suant to the NIPAS Act of 1992 (RA 7586), to be known as the
Northern Negros Natural Park
• SBN-1075: Lidlidda-Banayoyo Protected Landscape Act of 2007,
establishing the Lidlidda‑Banayoyo Protected Landscape in the
municipalities of Lidlidda and Banayoyo, province of Ilocos Sur,
as a protected area, providing for its management, and for other
purposes
• SBN-1074: Agoo-Damortis Protected Seascape and Landscape Act
of 2007, establishing the Agoo-Damortis Protected Seascape and
Landscape in the municipalities of Agoo, Sto. Tomas, and Rosario,
in the province of La Union, as a protected area, providing for its
• SBN-1072: Siargao Islands Protected Landscape and Seascape
(SIPLAS) Act of 2007, establishing the Siargao Group of Islands
in the municipalities of Burgos, Dapa, Del Carmen, Gen. Luna,
Pilar, San Benito, San Isidro, Sta. Monica, and Socorro, province of
Surigao del Norte, as a protected landscape and seascape, providing
for its management, and for other purposes, pursuant to the NIPAS
Act of 1992 (RA 7586)
• SBN-1071: Agusan Marsh Wildlife Sanctuary Act of 2007, estab-
lishing the Agusan Marsh within the municipalities of San Francisco,
Bunawan, Veruela, Loreto, and Lapaz, in the province of Agusan
Del Sur, as a wildlife sanctuary, providing for its management, and
for other purposes, pursuant to the NIPAS Act of 1992 (RA 7586)
• SBN-1070: Sinarapan Sanctuary (SS) Act of 2007, establishing
Lakes Manapao, Katugday, Danao, and Makuao within the munici-
pality of Buhi, Camarines Sur, and the municipalities of Polangui
and Malinao, Albay, as a protected area to be known as the Sinarapan
Sanctuary, providing for its management, and for other purposes
• SBN-1069: Aliwagwag Falls Protected Landscape (AFPL) Act
of 2007, establishing the Aliwagwag Falls in the municipalities of
Boston and Cateel, province of Davao Oriental, and the municipality
of Compostela, province of Compostela Valley, as a protected area
Appendixes 187
under the category of protected landscape and its peripheral areas as

buffer zone, providing for its management, and for other purposes
• SBN-1068: Apo Reef Natural Park (ARNP) Act of 2007, establish-
ing the Apo Reef in Sablayan, Occidental Mindoro, as a protected
area under the category of natural park and its peripheral waters as
buffer ones, providing for its management, and for other purposes
• SBN-1067: Balinsasayao Twin Lakes Natural Park Act of 2007,
establishing the Balinsasayao Twin Lakes in the municipalities of
Valencia, Sibulan, and San Jose, province of Negros Oriental, as a
protected area under the category of natural park, providing for its
• SBN-1066: Mt. Hilong-Hilong Range Protected Landscape Act
of 2007, establishing the Mt. Hilong-Hilong Range in the city
of Butuan and the municipalities of Remedios T. Romualdez,
Cabadbaran, and Santiago, in the province of Agusan del Norte, as
a protect area under the category of protected landscape, providing
• SBN-1065: Mts. Banahaw–San Cristobal Protected Landscape
(MBSCPL) Act of 2007, establishing the mountains of Banahaw
and San Cristobal, in the provinces of Laguna and Quezon, as a
protected area under the category of protected landscape, providing
• SBN-994: Wildlife Resources Conservation and Protection Act,
providing for the conservation and protection of wildlife resources
and their habitats, appropriating funds therefor, and for other
purposes
• SBN-901: Subic-Bataan Natural Park Act of 2007, establishing the
Bataan Natural Park and the Subic Watershed Forest Reserve in
the municipalities of Hermosa, Orani, Samal, Abucay, Bagac, and
Morong, in the province of Bataan, and a portion of the Subic Bay
Special Economic Zone on the island of Luzon as protected area
under the category of natural park, providing for its management,
and for other purposes
• SBN-868: Casecnan Protected Landscape (CPL) Act of 2007,
establishing the Casecnan Protected Landscape within the munici-
palities of Dupax del Norte, Dupax del Sur, and Alfonso Castañeda,
province of Nueva Vizcaya, the municipality of Nagtipunan, prov-
ince of Quirino, and municipalities of Maria Aurora and Dipaculao,
province of Aurora, as a protected area under the catgory of protected
landscape, providing for its management, and for other purposes
• SBN-30: Samar Island Natural Park (SINP) Act of 2007, declaring
the Samar Island Natural Park (SINP), in the provinces of Samar,
Northern Samar, and Eastern Samar, as a protected area and its

peripheral areas as buffer zone, providing for its management, and
for other purposes
• SBN-178: Malampaya Sound Protected Landscape and Seascape
Act, establishing the Malampaya Sound in the municipalities of
Taytay and San Vicente, province of Palawan, as a protected area
pursuant to the NIPAS Act (RA 7586), providing for its manage-
ment, and for other purposes
• SBN-177: Apo Reef Act of 2007, establishing Apo Reef in Sablayan,
Occidental Mindoro, as a protected area and its peripheral waters as
buffer zones, providing for its management and funds, and for other
purposes
• SBN-176: Agusan Marsh Protected Area Act of 2007, declaring the
Agusan Marsh in the province of Agusan del Sur as a protected area,
• SBN-175: Balinsasayao Twin Lakes Natural Park, declaring the
Balinsasayao Twin Lakes in the municipalities of Sibulan and San
Jose, province of Negros Oriental, as a protected area under the
category of natural park, and for other purposes
• SBN-174: Mts. Banahaw–San Cristobal Protected Area Act of
2007, declaring the mountains of Banahaw and San Cristobal, in
the provinces of Laguna and Quezon, as a protected area under the
category of protected landscape, and for other purposes
• SBN-173: Mt. Balatukan Range Natural Park Act, declaring the
Mt. Balatukan Range in the city of Gingoog and the municipalities
of Claveria, Medina, and Balingasag, all in the province of Misamis
Oriental, as a protect area and its peripheral areas as buffer zone,
providing for its management, and for other purposes
• SBN-172: Siargao Islands Protected Landscapes and Seascapes Act
of 2007, declaring the islands of Siargao and Bucas Grande as a pro-
tected area under the category of protected landscapes and seascapes
• SBN-171: Tubbataha Reefs National Park Act of 2007, establish-
ing the Tubbataha Reef National Marine Park in the province of
Palawan as a natural park under the NIPAS Act (RA 7586) and the
Strategic Environmental Plan for Palawan Act (RA 7611), provid-
ing for its management, and for other purposes
Coastal and Marine
• SBN-1506: Beaches Environmental Assessment, Closure and Health

Act, to improve the quality of beaches and coastal recreation water
Appendixes 189
• SBN-1419: Philippine Coast Guard Law of 2007, transferring the

Philippine Coast Guard to the Department of Transportation and
Communications as a separate and distinct armed uniformed com-
missioned service, further amending RA 5173 (which created the
Phillippine Coast Guard), as amended, and for other purposes
• SBN-1412: Philippine Coast Guard Act of 2007, to promote mari-
time safety, enhance maritime security, and safeguard and protect the
marine environment by strengthening the Philippine Coast Guard
• SBN-1238: Philippine Coast Guard Act of 2007, reorganizing the
Philippine Coast Guard as a separate and distinct commissioned ser-
vice under the Department of Transportation and Communications,
• SBN-1142: Philippine Coast Guard, strengthening the Philippine
Coast Guard and vesting in it the primary responsibility of enforc-
ing maritime safety rules and regulations as well as any other matters
related to the performance of safety of life and property function
within Philippine territorial waters, and for other purposes
• SBN-993: Beaches Environmental Assessment, Closure and Health
Act, to improve the quality of beaches and coastal recreation water
• SBN-992: Coastal Environment Program (CEP) Act, establishing
the Coastal Environment Program, appropriating funds therefor,
• SBN-885: Guidelines under Which the Philippine Coast Guard
Allows Dumping of Waste Materials in Navigable Water, amending
certain sections of the Marine Pollution Decree of 1974 (PD 600)
• SBN-796: Coastal Environment Program (CEP) of 2007, establish-
ing the Coastal Environment Program, appropriating funds therefor,
• SBN-636: Shore Protection Act, regulating shipping vessels coast-
ing in Philippine waters, for the protection of shores
• SBN-586: Sea Dumping Ban Act, banning the dumping of sewage
sludge and industrial waste into the sea
• SBN-541: Philippine Coast Guard Act of 2007, establishing the
Philippine Coast Guard as an agency attached to the Department of
Transportation and Communications, further amending RA 5173
(which created the Philippine Coast Guard) and the Revised Coast
Guard Law of 1974 (PD 601), and for other purposes
• SBN-438: Coral Reefs Protection and Preservation Act of 2007,
providing for the creation of reservation areas for the preservation
and protection of coral reefs, providing penalties therefor, and for
other purposes
• SBN-294: Shore Protection Act, regulating shipping vessels coast-

ing in Philippine waters, for the protection of shores
• SBN-229: Lake Lanao Development Authority of 2007, creating
the Lake Lanao Development Authority, defining its powers, func-
tions, and duties, and for other purposes
• SBN-186: Philippine Coast Guard Law of 2007, transferring the
Philippine Coast Guard to the Department of National Defense as
a separate and distinct service under the Philippine Navy, further
amending RA 5173 (which created the Philippine Coast Guard)
• HB00078: Increasing the penalty imposed against polluters of
navigable waters by amending section 7 of PD 979 providing for the
revision of PD 600 governing marine pollution
• HB00117: Amending certain sections of the Marine Pollution
Decree of 1974 (PD 600)
• HB00133: Establishing an international compensation fund for
oil pollution damage, providing penalties therefor, and for other
purposes
• HB00606: Requiring coastal provinces, coastal cities, and first‑class
coastal municipalities to have a marine reserve for aquatic resources
and a fisheries officer to supervise the same, and appropriating funds
therefor
• HB01803: Establishing marine protected areas in all coastal munici-
palities, amending for the purpose the Philippine Fisheries Code of
1998 (RA 8550), and for other purposes
Water Resources
• SBN-1140: Department of Fisheries and Aquatic Resources Act

of 2007 (DFAR), creating a Department of Fisheries and Aquatic
Resources, providing for its powers and functions, and for other
purposes
• SBN-981: 3-Year Program for the Construction of Potable Water
Supply System in Every Barangay, promoting rural health by provid-
ing for an accelerated program for the construction of a potable water
supply system in every barangay in the country within 3 years
• SBN-799: Water Resources Management Act, addressing the
national water crisis, providing for comprehensive water resources
• SBN-777: Rivers and Waterways Ecological Zones of 2007, declar-
ing and establishing rivers, river systems, beaches, shores, and water-
ways as ecological zones, and for other purposes
Appendixes 191
• SBN-461: River Systems and Waterways Ecological Zones Act

of 2007, declaring and establishing rivers, river systems, beaches,
shores, and waterways as ecological zones, and for other purposes
• SBN-359: Barangay Potable Water Supply System, promoting rural
health by providing for an accelerated program for the construction
of a potable water supply system in every barangay in the country
within 3 years
Environmental Management
• SBN‑1968: Use of Sewage Sludge Fertilizer in Food Awareness Act

of 2007, requiring the proper labeling of food produced with the use
of fertilizer made from recycled sewage sludge
• SBN‑1939: Philippine Environmental Protection Authority Act,
creating the Philippine Environmental Protection Authority, defin-
ing its powers and functions, and for other purposes
• SBN‑1896: The New Sanitary and Environmental Engineering
Law of 2007, ordaining a new sanitary and environmental engineer-
ing law for the Philippines
• SBN‑1890: Philippine Climate Change Act of 2007, establishing
the framework program for climate change, creating the Climate
Change Commission, appropriating funds therefor, and for other
purposes
• SBN‑1802: Requiring Malls/Stores to Use Environment-Friendly
Shopping Bags instead of Plastic Bags, promoting sound waste
management by requiring all department stores, malls, and commer-
cial establishments to use reusable environment-friendly shopping
bags and provide them free of charge to customers and patrons, and
for other purposes
• SBN‑1571: Toxic and Hazardous Substances Control Act of 2007,
regulating the sale, purchase, and possession of toxic and hazardous
substances, including sodium cyanide, providing penalties for viola-
tion thereof, and for other purposes
• SBN‑1509: Right to Know About Airport Pollution Act, requiring
the Department of Environment and Natural Resources to conduct
a feasibility study on the use of airport bubbles to identify, assess, and
reduce the adverse environmental impact of airport ground and flight
operations and improve the overall quality of the environment
• SBN-1443: Plastic Bag Recycling Act of 2007, requiring retail
stores that provide plastic bags to consumers to implement a plastic
bag collection and recycling program
• SBN-1395: Philippine Economic Environmental and Natural

Resources Accounting Act of 2007, institutionalizing the environ-
mental and natural resources accounting system, designating the
agencies responsible for its implementation, providing institutional
arrangements among responsible agencies, and appropriating funds
• SBN-1232: Used Motor Vehicles Regulation Act of 2007, regulat-
ing the importation of used motor vehicles
• SBN-1089: Ozone Layer Protection Law of 2007, regulating the
importation of substances that deplete the ozone layer, providing
penalties for violations thereof, and for other purposes
• SBN-995: Recyclable or Biodegradable Materials for Packaging,
mandating the use of recyclable or biodegradable materials for the
packaging of consumer products
• SBN-815: Philippine Environmental Protection Authority Act of
2007, creating the Philippine Environmental Protection Authority,
defining its powers and functions, and for other purposes
• SBN-741: Ban Asbestos Act of 2007, banning the importation,
manufacture, processing, or commercial distribution of asbestos‑
containing products
• SBN-690: Environmental Health Research Act of 2007, establish-
ing multidisciplinary centers for to conduct research on women’s
health and disease prevention, and a hormone disruption research
program, and for other purposes
• SBN-406: Bureau on Hazardous Waste, Environmental Spills
and Disease Registry, establishing a Bureau on Hazardous Wastes
and Environmental Spills and Disease Registry, and for other
purposes
• SBN-357: Recyclable or Biodegradable Materials, mandating the
use of recyclable or biodegradable materials for the packaging of
consumer products
• HB00165: Providing mechanisms for the reduction of the distribu-
tion of mercury-added products and the proper disposal thereof, to
reduce the introduction of mercury into the environment
• HB00397: Prohibiting the production of incandescent light bulbs
completely within 5 years, to cut down on the amount of green-
house gases, implicated in global warming, that is released to the
atmosphere
• HB00490: Amending section 21(b) of the Clean Air Act of 1999
(RA 8749), to empower local government units to conduct smoke
emission testing
Appendixes 193
• HB00817: Banning the importation and dumping of all kinds of

toxic wastes and materials into the country, and for other purposes
• HB00960: Enhancing the Philippine Environmental Impact
Assessment (EIA) System, to strengthen public participation
therein, and for related purposes
• HB01404: Automatically assigning to the Government the insur-
ance proceeds of corporations undertaking industrial projects when-
ever a major accident, disaster, or catastrophic event involving their
industrial project occurs, causing damage to persons, property, and
the environment
• HB01648: Regulating noise and its sources and providing penalties
for its violation, and for other purposes
• HB01775: Creating a special task force on global warming under
the Department of Environment and Natural Resources
• HB01966: Reducing the use of plastic bags, Styrofoam containers,
disposable plastic utensils, and similar items in all establishments in
the country
Mapping
• SBN-1447: NAMRIA Modernization Act of 2007, providing for the

modernization of the National Mapping and Resource Information
Authority (NAMRIA)
• SBN-470: NAMRIA Modernization Act, providing for the mod-
ernization of the National Mapping and Resource Information
Authority (NAMRIA)
Mining and Geosciences
• SBN-27: Philippine Mining Act of 1995 (Repealing), repealing the

Philippine Mining Act of 1995 (RA 7942)
• SBN‑1627: Topographical Map of Low-lying Areas in the Philippines
Act of 2007, directing the Department of Environment and Natural
Resources, through the National Mapping and Resource Information
Authority, to identify the low-lying areas of the Philippine territory
vulnerable to rising sea levels as a result of global warming
• SBN-767: Environmental Assessment for Mining Projects, institut-
ing independent health and environmental assessment for all min-
ing projects, amending for the purpose the Philippine Mining Act
of 1995
Renewable Energy
• SBN‑1821: Renewable Energy Act of 2007, further promoting

the development, use, and commercialization of renewable energy
resources, and for other purposes
• SBN‑1711: Renewable Energy Act of 2007, promoting the devel-
opment, use, and commercialization of renewable energy sources,
• SBN‑1608: Renewable Energy Act of 2007, promoting and enhanc-
ing the exploration, development, use, and commercialization of
renewable energy resources
• SBN-1423: Renewable Energy Act of 2007, promoting and enhanc-
ing the development, use, and commercialization of renewable
energy resources
• SBN-1303: Renewable Energy Act of 2007, promoting the devel-
opment, use, and commercialization of renewable energy resources,
energy resources
• SBN-1058: Marine and Hydrokinetic Renewable Energy Promotion
Act of 2007, promoting the development and use of marine and
hydrokinetic renewable energy technologies
energy resources
• SBN-211: Renewable Energy Resources Act of 2007, strengthen-
ing the Philippine Energy Plan for the exploration, development,
and use of new and renewable energy systems using indigenous
resources, and for other purposes
Environmental Education
• SBN‑1699: Environmental Awareness and Education Act of 2007,

promoting environmental awareness through environmental educa-
tion, strengthening for this purpose section 53 of the Philippine
Environment Code (PD 1152), and for other purposes
• SBN‑1603: Ecology Teaching in Elementary and Secondary Levels,
providing for the teaching of ecology in all elementary and second-
ary levels, whether public or private, throughout the country, and
providing funds therefor
Appendixes 195
• SBN-1197: Environmental Protection for Children Act, protecting

children against environmental pollutants
• SBN-987: Community Environmental Information Program Act,
requiring industries, factories, companies, or any institution, firm, or
establishment using chemicals and their by-products in production,
to develop and promote a community environmental information
program
• SBN-986: National Environmental Education Act, creating the
Office of Environmental Education, defining its functions, and
appropriating funds therefor, and for Other Purposes
• SBN-766: Environmental Awareness and Education Act of 2007,
promoting environmental awareness by declaring 5 June of every
year as World Environment Day and prescribing environmental
education for elementary and high school students
• SBN-482: Children’s Environmental Protection Act, to protect chil-
dren and other vulnerable subpopulations from exposure to certain
environmental pollutants, and for other purposes
• SBN-476: National Environmental Education Act of 2007,
Creating the Office of Environmental Education, defining its func-
tions and responsibilities, appropriating funds therefor, and for other
purposes
• SBN-343: Philippine Society and Environment (Curricula), to
integrate in the curricula of all educational institutions, including
nonformal, indigenous learning and out-of-school-youth programs,
a course on Philippine society and the environment
Local Government
• SBN‑1547: Local Initiative on Environmental Protection and

Conservation of Natural Resources Act, empowering local government
units (LGUs) to monitor the enforcement of laws, rules, and regulations
on environmental protection and conservation of natural resources
• SBN-540: New Local Government Code of the Philippines, pro-
viding for a new Local Government Code of the Philippines
• SBN-487: Committee on Environmental Protection (Local
Government Legislative Council), mandating the creation of a
committee on environmental protection in each local government
legislative council
• SBN-475: Local Environment Prote ction, to strengthen local envi-
ronment protection by making the appointment of an environment
and natural resources officer mandatory for provincial, city, and
municipal governments, amending for this purpose 484(a) of the

Local Government Code of 1991 (RA 7160)
• SBN-474: Environmental Protection Program (SK), amending
section 426 of the Local Government Code of 1991 (RA 7160)
by mandating the Sangguniang Kabataan to implement an environ-
mental protection program in their respective barangays, providing
the mechanism for the effective implementation thereof, and for
other purposes
• SBN-472: Integrated Solid Waste Collection and Disposal Act,
institutionalizing the basic service of integrated solid waste collec-
tion and disposal in all local government units, amending for this
purpose the Local Government Code of 1991 (RA 7160)
Agriculture and Fisheries
• SBN-830: Bio-organic Farming, providing for the promotion of

bio-organic farming in the Philippines
• SBN-829: Sloping Agricultural Land Technology (SALT) Act
of 2007, establishing the Sloping Agricultural Land Technology
Farming Program, appropriating funds therefor, and for other
purposes
• SBN‑1898: Bio-organic Farming Promotion Act of 2007, providing
for the promotion of bio‑organic farming in the Philippines, and
appropriating funds therefor
• SBN-828: Magna Carta for Agricultural Development Workers,
providing for a Magna Carta for Agricultural Development
Workers
• SBN-774: Department of Fisheries and Aquatic Resources Act of
2007, creating a Department of Fisheries and Aquatic Resources,
providing for its powers and functions, and for other purposes
• SBN-371: Bio-organic Farming, Providing for the promotion of
bio-organic farming in the Philippines
• SBN-219: Agricultural and Fisheries Modernization Act (AFMA),
amending the Agricultural and Fisheries Modernization Act
(AFMA) (RA 8435) by providing for the exemption of all enumer-
ated agricultural inputs from value-added tax
• HB00227: Creating a Department of Aquaculture and Fisheries
Resources, providing for its powers and functions, and for other
purposes
Appendixes 197
• HB00323: Amending section 4 (para. 58) and providing an addi-

tional section on municipal fisheries, chapter 2, article 1, of the
Fisheries Code of 1998 (RA 8550), and for other purposes
• HB00659: Amending section 97 of the Fisheries Code of 1998
(RA 8550)
• HB00962: Amending section 4 (para. 58) and providing an
additional section on municipal fisheries, chapter 2, article 1, of
the Fisheries Code of 1998 (RA 8550), and for other purposes
Appendix 5: Status of Public and Private Sector Lending, and Nonlending Operations, As of 15 August 2007
(Country Strategy and Program 2005–2007)
Amount ($ million)
Public Sector Lending CSP Actual Approval Date Comment
Agriculture and Natural Resources
Integrated Coastal Resources Management 36 38.8 January 2007 Cofinanced with Global Environment
Fund ($9 million)
Agrarian Reform Communities II Project (85) Processing for 2007 Added after concept clearance by
Management
Energy
Power Sector Development Program 450 450 December 2006 Cofinanced with Japan Bank for
International Cooperation ($300
million)
Finance
Microfinance Development Program 150 150 December 2005
Financial Market Regulation and 300 200 December 2006

Intermediation Program
Industry and Trade

Small and Medium Enterprise Development 25 25 October 2005
Project
Law, Economic Management,

and Public Policy
Development Policy Support Program 250 February 2007 Added. Discussed in CSP but not
included in program because of
uncertain schedule.
continued
Amount ($ million)
Public Sector Lending CSP Actual Approval Date Comment
Local Government Financing and Budget 300 (300) Processing for 2007 Cofinanced with World Bank ($250
Reform Program million)
Comprehensive Justice Reform Program 300 (300) Processing for 2008 Formerly Governance and Judicial
Reform Program
Multi-sector
Metro Manila Urban Services for the Poor 80 (40) Processing for 2007 Multitranche financing facility: $490
million
Transport and Communications

Rural Roads Development Project Readiness 7 Removed
TA Project
Water Supply, Sanitation, and Waste

Management
Angat Water Utilization and Aqueduct 65 Removed when Government switched
Improvement Project to alternative financing
Amount Approval
Private Sector Operation ($ million) Date Type of Operation
Purchase and Resolution of Equitable PCI Bank’s Portfolio of 5.0 2005 Loan
Nonperforming Loans and Assets
SME Development Support–Financing Access Improvement Project 18.4 2005 Guarantee
Appendixes 199
SME Development Support–Credit Information Bureau 1.0 2005 Equity investment

continued
Amount ($’000)
Nonlending Operation CSP Actual Approval Date Type of Operation
TECHNICAL ASSISTANCE
Agriculture and Natural Resources

Comprehensive Highland Agriculture 500 (850) For 2008 PP. Formerly Strategy for
Resource Management Development of Upland
Irrigation Systems Operational Efficiency Communities in Southern Phil
Project
Sustainable Aquaculture Development for 700 (550) For 2007 PP. Formerly Irrigation Rehabilitation
Poverty Reduction Project
600 500 2005 AO.
Finance
Implementing the Microfinance Development 500 500 2005 AO
Program
Strengthening Regulation and Governance 800 800 2006 AO. Formerly Financial Market
Regulation Reform
Health, Nutrition, and Social Protection

Support for Health Sector Reform 1,000 2005 AO
Law, Economic Management and Public

Policy
Harmonization and Managing for 700 700 2005 AO
Development Results
Strengthening Anti-Money Laundering 400 400 200 AO
Regime Phase 2
continued
Amount ($’000)
Nonlending Operation CSP Actual Approval Date Type of Operation
Local Governance and Fiscal Management 1,000 1,800 2006 AO. Formerly Strengthening LGU
Management and Administration
Debt and Risk Management 250 720 2005 AO. Formerly Improving Risk
Management of Public Sector Debt
Government Owned and Controlled 750 2006 AO. Added at request of Government
Corporations Reform
Strengthening Institutions for Improved 800 2007 AO
Competitiveness, Economic Growth and
Poverty Reduction
Multi-sector
Metro Manila Urban Services for the Poor 700 2005 PP
Metro Manila Urban Services for the 500 2006 PP
Poor(supplementary)
Southern Leyte Landslide Disaster 350 2006 AO. Reprogrammed from TA savings
GRANTS
Developing the Philippine Business Registry 700 2005 Anchored to SME Development
( JFICT)a Support Project
Supporting Information Sharing and Exchange 500 2006 Anchored to Philippines Governance
among Civil Servants ( JFICT)a Assessment (2005); Local
Government Finance and Budget
reform program (2007); Justice
Southern Leyte Landslide Disaster Assistance 3000 2006 Reform Program (2008)
Appendixes 201
( JFPR)a
AO = advisory technical assistance, CSP = country strategy and program, JFICT = Japan Fund for Information and Communications Technology, JFPR = Japan
Fund for Poverty Reduction, PPTA = project preparatory technical assistance, SMEs = small and medium-sized enterprises, TA = technical assistance.
a
These trust fund grant operations are not programmed in the CSP.
Source: ADB Country Operations Business Plan 2007–2008.
Appendix 6: Summary of Results of the Consultative

Meeting on the 2008 Philippine Country
Environmental Analysis Report
Major Concerns
• Weakness of the lead environment and natural resources (ENR)

agency (DENR) and other directly concerned agencies (LLDA,
LGUs) because of lack of budget, technical capability, resources
(tools, etc.)
• Conflicting government policies
• Lack of financing for environmental projects
• Fragmented resource management (sectoral instead of integrated),
resulting in conflicts, overlaps, or gaps in ENR management
• Poor implementation of certain laws
• “Politicized” management
Other Comments and Concerns
• Rebuilding the lead ENR agency

– All groups agreed that the DENR has been left behind by the
growing mandates given to it. There should be a major rebuild-
ing of DENR.
– The budget is still not enough, considering the expectations
from the various sectors for DENR to fulfill its growing
mandate. This concern however is true of most government
entities.
– The rationalization plan has been revised several times, with
the latest version submitted to the Department of Budget and
Management only in June 2008. The plan has gone through
several changes in the past 4 years, owing to changes in DENR
leadership (a new secretary and therefore new priorities and
new directions). DENR expected the plan to be finally approved
within 2008, giving hope for a better distribution of personnel
and resources in the DENR.
– Capacity building will be needed once the rationalization
plan is approved. Under the rationalization plan, EMB will
have more technical staff. These will come from other bureaus
within the DENR and will need extensive training to fulfill
their responsibilities.
Appendixes 203
– Mandate overlaps were likewise recognized; in most cases

these have caused conflicts between government agencies,
resulting in flawed implementation of laws. Memorandums of
agreement and other forms of cooperation among government
agencies were still seen as the best solution, although there
were concerns that MOAs usually become ineffective when the
signatories change.
– The participants agreed that, while there are already many laws,
other laws like the Sustainable Forest Management Act and the
National Land Use Act still need to be passed.
– A holistic and more comprehensive study of all the environ-
mental and natural resources laws and regulations should be
conducted to come up with an integrated and non-conflicting
approach to improve implementation of the laws.
– Graft and corruption within the agencies, political patronage
and favoritism, and lack of political will and governance are
perceived to be the main causes of the poor implementation of
the laws.
• Improving the Environmental Impact Statement (EIS) System
– All groups agreed that EIS implementation continues to be
flawed. DENR group mentioned the recently completed World
Bank and ADB studies as a good jump-off point. ADB or the
World Bank may be tapped to provide assistance to implement
the recommendations of these studies.
• Completing the devolution of ENR functions to LGUs
– According to DENR group, the Local Government Code has
gaps that prevent the full devolution of ENR responsibilities to
the LGUs. The law may need to be amended for this.
– In the meantime, LGUs will need to be ready when DENR
turns over responsibilities. Certain functions transferred by
DENR to LGUs (e.g., cadastral surveys) were taken back
because the LGUs were unable to fulfill their duties.
– There is no provision for sanctions to any party involved if the
devolution is not done, therefore there is no motivation for
anyone to really go through the devolution process. A recent
DENR survey of the implementation of devolved functions by
LGUs showed that not even half of the expected functions had
been devolved.
– NGO/Industry groups felt that the LGUs should also be asked
to give their side of the story.
– Devolution should undergo a comprehensive third‑party (not

DENR- and LGU-led) assessment to determine the status of
implementation and recommend a better plan for a successful
devolution of functions.
• Shifting from sector-based to integrated, ecosystem-based planning
and management
– All groups agreed that government planners and managers
must now go in this direction. Again the idea of reviewing all
the laws and using an integrated approach to reformulate these
laws were suggested
• Sustaining forest management and biodiversity conservation efforts
– Forest and biodiversity management efforts should not simply
be sustained but increased.
– The issue of ancestral domain of the indigenous peoples should
be given importance in these efforts.
• Increasing financing for environmental projects
– Considering their low budget, the government agencies have to
depend on (meager) assistance from donor agencies to imple-
ment regulations.
– The Government realizes that other priority programs (partic-
ularly development programs) need financial assistance in the
form of loans. Providing grants and other non-loan facilities
for environmental programs and projects of the Government is
therefore worth considering, since these programs and projects
do not necessarily have returns on investments.
– The Government should have clear and investment-friendly
policies to encourage private sectors to invest in environmental
projects.
– Government financial institutions have available environmental
financing facilities (DBP said at least $1.2 billion for the year)
but there are no takers, probably because of poor marketing,
as well as encouraging steps for industries and other groups to
invest in environmental projects
– Industries felt that there should be incentives for them to
invest in environmental projects; MSMEs that need techni-
cal and financial support are usually not creditworthyto go to
bank financing. Thus, there is a certain disconnect between the
banks (government financial institutions) and the potential
fund users.
• Improving and expanding the use of market-based instruments
– It was also agreed that the use of MBIs should be strongly
pursued; however, clear-cut policies must be put in place and
implemented throughout the country.
– New types of MBIs should also be considered.
Appendixes 205
• ENR concerns and poverty reduction

– This is a cyclical concern that is common in most underdevel-
oped and developing countries. ENR concerns are mentioned
in passing in most poverty reduction plans but are not really
given importance unless the donor agencies (such as ADB)
insist on compliance.
– This is a major concern, but the responsibility is not DENR’s
alone.
Solution Matrix
Problem/Issue/ Probable Proposed Proposed
Concern Causes Solutions Solution Mix
General Environmental Concerns
Fragmented Sectoral Ecosystem-based NGAs, NGOs,
resource management forest resource people’s
management Some policies management organizations,
not consistent Integrated donors, LGUs,
with sustainable coastal resource academe
development management
Harmonized
policies
Reviewed and
revised laws
Too much Uncontrolled Population policies DOH, DENR
population population growth Urban and rural (land use)
stress on natural Disorganized Planning
resources urban growth
Indiscriminate Lack of policies Strict protection DA, LGUs,
land use; and regulators and regulations for regional field
conversion of for land use land conversion units,
prime agricultural conversion Sustained IEC Bureau of
lands devoted Lack of campaign for Postharvest
to rice and corn government landowners and Research and
production credit support for farmers Extention,
farmers: very low Improved DAR, Municipal
palay‑buying price cooperatives Planning and
Weak security of Postharvest Development
land tenure facilities Offices
Lack of Faster issuance of
infrastructure, land titles
e.g., Farmers’
farm‑to‑market organizations and
roads cooperatives
continued
Solution Matrix continued

Low volume of Inadequate tourist Adequate business Public sector
tourists in the infrastructure and incentives for (Department of
Philippines facilities accommodation Tourism, DPWH,
Poor facilities Department of
peace‑and‑order Adequate Transportation and
situation in some marketing to create Communications,
parts of the strong awareness LGUs, police,
country in strategic and Technical
Inaccessibility of major source Education
major international markets and Skills
markets Adequate Development
Limited tourism support Authority), Center
promotional infrastructure, for Culinary
campaign airports, seaports, Arts, Hotel
Inadequate air, road network and Restaurant
sea, and land Regular Association of the
transportation institutional and Philippines
system private sector–led
Limited number of tourism training
tourism front liners workshops
Degrading ENR Overlapping or Integrated Concerned NGAs,
base (e.g. forest/ uncoordinated policy, e.g., legislature, NGOs,
biodiversity loss), policies Environmental private sector,
coastal resources Policy gaps Policy Act donors,
depletion, air and Weak capacity Tools (e.g., LGUs
water pollution (e.g., lack of guidelines,
tools, inadequate models)
skills, inadequate Capacity
systems and development (e.g.,
procedures) training)
Increasing - do -
vulnerability of
environment and
natural resources
stakeholders (e.g.,
upland and coastal
poor becoming
poorer, increasing
health problems
and economic
losses from
environmental
emergencies)
continued
Appendixes 207

Environmental Watershed Watershed DENR,
degradation degradation rehabilitation stakeholders, DA,
Insufficient food Unregulated use with emphasis on LGUs
production (e.g., of farm inputs sub‑watershed
rice shortage) (pesticides, support
fertilizers) IEC (farming
Climate change systems)
Climate change
adaptation measures
Slow movement Insufficient Reorganization Concerned
of environmental technical capacity of or organizational agencies, donors,
investment funds financial institutions strengthening DOF, NEDA
Lack of funds for Cheaper TA funds
technical experts or grants
Voluminous
technical and
reporting
requirements
Poor enforcement
of environmental
laws
Non-enterprise‑ Insufficient study Policy makers Donors (build this
friendly and consultation better able to base condition into
environment in the formulation laws on sufficient their program
policies of many study and research requirements);
environmental and to engage industry groups;
policies the private DTI, DENR,
(propensity to sector (especially Department
adopt policies of micro/SMEs) in of Science and
other countries, consultation Technology
which may not Incentives (provide
apply to the for private continuing
Philippines) investments in education
Lack of awareness environmental programs);
and appreciation technologies development
(especially by Better agencies and
micro/SMEs) dissemination of government
of the costs environmental financial
and benefits of policies and institutions
environmental technologies (evaluate
improvements (e.g., More and improve
short‑term view) environmental environmental
financing facilities financing facilities)
continued

Lack of incentives
or access to
financing for
environmental
technologies and
equipment
Lack of
participation
(especially by
micro/SMEs) in
consultations for
policy formulation
Lack of technical
expertise among
policy makers
Lack of incentives
for private
investments in
environmental
technologies
(e.g., treatment of
hazardous waste)
Low public Insufficient Enough resources LGUs, Philippine
awareness resources to to expand Information
expand education education and Agency, private
and awareness awareness sector, NGOs
programs programs (social marketing
Low priority campaigns)
(especially at the
local level)
Weak protection Market-based
of ecosystems incentives for
services the protection of
ecosystem services
Inadequate Overpopulation; Education
carrying capacity Catholic Active advocacy
of Philippine church stand Passage of law
resources on population on population
management management
continued
Appendixes 209

MTPDP not Mind-set that Policy reform Government
crafted as a development is Participatory offices and
sustainable mainly about planning and non‑state actors
development plan; economic growth budgeting
does not deliver on Education for
poverty reduction sustainability
and environmental Human
protection development
(education,
livelihood, etc.)
Governance
Overlapping Partial devolution Rationalized LGU, DILG,
jurisdiction and Unfunded budget support Department
uncoordinated mandates for unfunded of Budget and
implementation devolved LGU Management,
of conservation mandates DENR
programs Co-management
(fisheries, DENR arrangements
and DA‑BFAR institutionalized
local level, between NGA
forests, DENR and LGUs and
and PNOC local private sector
level)
- Memorandums
of agreement
proven to be a
good solution in
some cases
- Laws (source of
conflict)
Poor Limited resources Better DENR, DOF,
environmental for environment coordination NEDA, DA,
governance protection among agencies DAR, LGUs,
Gap between Bigger budget private sector,
legislation and Legislative review NGOs, etc.
practice and simplification
Erratic policies Better salaries for
(mining, tourism) DENR staff
Coherent land-use
policies
continued

Corruption; no Low salaries Better salaries Supreme Court,
prosecution of Inequity (political for enforcement Office of the
environmental elitism) agencies Ombudsman,
offenses Poor justice/ Political will PNP, AFP, DENR
enforcement Full application of
system the law to everyone
Graft and Distorted public Leadership by Executive dept.,
corruption in service values example (executive DENR,
the environment (e.g., utang na dept. and line Civil Service
sector loob [obligation agencies) Commission
to repay a favor Effective, strict, NGOs (for
received]) and consistent monitoring and
Poor enforcement of advocacy)
implementation environmental
of civil service rules and
standards, code of regulations
ethics Values formation
Lack of political programs for
will (intertwined officials and
vested interests enforcers
and public
interests); political
patronage
Lack of
transparent
and efficient
system of policy
formulation and
implementation
Poor or non- No budget Review and NGOs, academe,
implementation of consolidation of legislature
policies all environmental
Too many laws but laws
little enforcement
Institutional/Organizational
Inadequate Lack of expertise Consultants
technical Lack of manpower
know-how
Lengthy Time-consuming Procurement Manila Water
procurement procurement by private Company, Maynila
process for procedures for company (e.g., Water Services,
infrastructure gov’t projects concessionaire) concessionaires
continued
Appendixes 211

Insufficient Additional budget External funding Donors, NGAs,
budgetary for NGAs and (grants) legislature
allocation LGUs
Insufficient policy Insufficient funds More funding Donors, concerned
development, for capacity from government NGAs,
planning, and development and donors legislature
programming
capacities of
NGAs
Inadequate data Lack of hardware More funds Donors,
and management and relevant skills for hardware concerned NGAs,
information acquisition and legislature
systems skills development
Poor knowledge
management
(use of technical
expertise in policy
development)
Biodiversity
Unabated loss of Illegal destructive Better Various agencies
biodiversity fishing enforcement of led by PNP
Illegal logging environmental (DENR, LGUs,
Unregulated land laws DA)
conversion Stronger Jointly operated
Compartmen interagency structure and
talized programs cooperation training program
Wildlife trafficking to combat
Poaching by big environmental
commercial fleets crimes
in municipal waters
Biodiversity loss Poor law Harmonized plans LGUs, NGOs,
Habitat enforcement and policies at the DENR, NEDA,
degradation Poverty local level church sector,
Forest conversion Conflicting IEC campaign private sector
Overextraction, development goals Enforcement of
depletion of between levels of regulatory policies
resources government Enabling
Lack of tenurial environment
security Stronger CBFM
New strategic plan
for CBFM
continued

Water Resources and Water Quality Management
Inadequate clean Lack of financing Assistance to DENR, MWSS,
water supply and from national Local Water NWRB, DBP,
sewerage system Government Utilities LBP, LGUs,
Administration donors
and water districts,
MWSS, LGUs;
multilateral
agencies to extend
loans
Need for new Lack of funding Funding from WB, ADB
water sources from the government
including sources Government financial
of funds institutions,
lending
institutions
Depletion/ Illegal settlers Tighter watershed AFP/LGU,
Deterioration Illegal logging security DENR, Housing
of watersheds Kaingin (slash- Strict enforcement and Land Use
for new water and-burn farming) of laws against Regulatory Board
resources Conversion of illegal logging
lands Strict enforcement
Right-of-way of policies
Lack of safe Limited sources Extraction and NWRB, DPWH,
drinking water Limited financial construction of DILG, DBP, LBP,
support new water sources ADB, WB, JICA,
LGUs’ lack of Assistance UNDP, WHO,
technical expertise from local and DOH, and other
foreign financial stakeholders
institutions
TA for LGUs
Poor sanitation Limited Advocacy and DOH and
knowledge of IEC activities partners, DBP,
effects of poor Assistance LBP, ADB, WB,
sanitation from local and JICA, UNDP,
Limited financial foreign financial WHO, DPWH,
support institutions DILG, NWRB
Lack of Communal
community toilets sanitation facilities
continued
Appendixes 213

Air Quality Management
Enforcement of Poor enforcement, DENR to DENR,
Clean Air Act political unit follow up regional offices,
institutionalization recommendation LTO, LGUs,
of ADB loan enforcement
with LGUs, LTO, agencies
and enforcement
agencies
Waste Management
Inadequate Lack of LGU Assistance in Donor community,
solid waste capacity to comply preparation of National
management with SWM act; master plan; Solid Waste
lack of technical template for 10-yr Management
and financial SWM Commission
capacity Assistance in
design of sanitary
landfill
Improper Limited Advocacy and DOH/DENR,
health‑care waste knowledge of IEC activities LGUs, private
management health-care waste Treatment sector
management facilities
Lack of treatment Sanitary landfills
facilities
Lack of approved
disposal sites
Climate Change
Climate change Lack of integrated Integrated Office of the
• Mitigation approach to approach/ President to
• Adaptation addressing planning require integrated
environmental to address planning approach
problems caused environmental Multistakeholder
by human activities problems caused approach to
(urban, forestry, by human preparation of
coastal, biodiversity, activities (urban, a road map for
etc.) forestry, coastal, climate change
Low public biodiversity, etc.)
awareness of More resources
impact of climate for climate change
change mitigation and
Consumptive adaptation
lifestyle of Filipinos
continued

Disaster Risk Mitigation and Management
Disaster risk Philippines Community‑based National Disaster
reduction prone to various disaster risk Coordinating
disasters; lack management Council and its
of capacity and coordinating
response from agencies
national and local
government
Poverty as a Consequence
Worsening Depletion of Credit facility DTI, LGUs,
poverty in coastal marine resources, to promote financial
communities destruction of marine resource institutions,
marine ecosystem management BFAR, DENR
Overfishing, Gradual shift in
illegal methods of fisheries from
fishing, growing capture to culture
population Technical
of coastal assistance for
communities capacity building
ADB = Asian Development Bank; AFP = Armed Forces of the Philippines; BFAR = Bureau
of Fisheries and Aquatic Resources; CBFM = community-based forest management;
DA = Department of Agriculture; DAR = Department of Agrarian Reform; DBP = Development
Bank of the Philippines; DENR = Department of Environment and Natural Resources;
DILG = Department of the Interior and Local Government; DOF = Department of Finance;
DOH = Department of Health; DPWH = Department of Public Works and Highways;
DTI = Department of Trade and Industry; IEC = information, education, and communication;
JICA = Japan International Cooperation Agency; LBP = Land Bank of the Philippines;
LGU = local government unit; LTO = Land Transportation Office; MWSS = Metropolitan
Waterworks and Sewerage System; NEDA = National Economic and Development Authority;
NGA = national government agency; NGO = nongovernment organization; NWRB = National
Water Resources Board; PNP = Philippine National Police; SMEs = small and medium-sized
enterprises; SWM = solid waste management; TA = technical assistance; UNDP = United
Nations Development Programme; WB = World Bank; WHO = World Health Organization.
Appendixes 215
Appendix 7: Participants at the Consultative Meeting on

the 2008 Philippine Country Environmental
Analysis Report
DENR-FASPO Conference Room

Department of Environment and Natural
Resources Quezon City
4 June 2008
1. Cesar R. Quintos and Resource Information

Division Chief Authority
Laguna Lake Development Lawton Avenue, Fort
Authority BonifacioTaguig City,
70 Rafael St., AsiaPro Building Philippines 1638
Bgy. Kapitolyo, Pasig City Rbellen2001@yahoo.com
cesquintos@llda.gov.ph
6. Godofredo Villapando, Jr.
2. Frank B. Hilarie Program Development
ECO III Unit Manager
National Water Resources Board Foundation for the Philippine
8th Floor, NIA Building, Environment
EDSADiliman, Quezon City 77 Matahimik St., Teacher’s
franzhilarie@yahoo.com Village Diliman, Quezon City
gvillapan@fpe.ph
3. Susan P. Abano
Engineer IV 7. Orly Cariato
National Water Resources Board Supervising Forest
8th Floor, NIA Building, Management Specialist
EDSADiliman, Quezon City Forest Management Bureau
spabano2111@yahoo.com Visayas Avenue, Diliman,
Quezon City
4. Marcial C. Amaro, Jr. Cariatoorly@yahoo.com
Ecosystems Research and
Development Bureau 8. Emy Aguinaldo
Visayas Avenue, Diliman, Deputy Executive Director
Quezon City National Solid Waste
amaromarsjr@yahoo.com Management Commission
HRD Bldg. DENR
5. Ruel D. M. Belen CompoundVisayas Avenue,
Engineer V Diliman, Quezon City
National Mapping emyaguinaldo@yahoo.com
9. Ma. Delia Valdez 14. Teresita T. Blaztigue

Supervising Environmental Senior Environmental
Development Specialist Management Specialist
National Solid Waste Protected Areas
Management Commission and Wildlife Bureau
HRD Bldg. DENR Compound Parks and Wildlife Nature
Visayas Avenue, Diliman, Center
Quezon City Diliman, Quezon City
Mdvaldez1969@yahoo.com tblaztigue@yahoo.com
10. Anabelle E. Plantilla 15. Ma. Lourdes Ferrer

Chief Operating Officer OIC-Director
Haribon Foundation Foreign Assisted and Special
2nd Floor, Santos Sisons Projects Office, DENR
Bldg.973 Aurora Blvd., Visayas Avenue, Diliman,
Quezon City Quezon City Ondet_ferrer@
director@haribon.org.ph yahoo.com
11. Marietta Tan 16. Joel Caparas

Project Officer IV River Basin Control Office
Mines and Geosciences Bureau Department of Environment
2/F J. Fernandez Bldg., and Natural Resources
MGB Comp. North Avenue, Visayas Avenue, Diliman,
Diliman Quezon City Quezon City
mgbcoplan@yahoo.com Joel_caparas29@yahoo.com
12. Estella M. Bucoy 17. Mary Ann Lucille Sering

Administrative Officer V Undersecretary
Land and Management Bureau Department of Environment
Plaza Cervantes, and Natural Resources
Binondo, Manila Visayas Avenue, Diliman,
starbucoy@yahoo.com Quezon City
13. Meriden Marawan 18. Eriberto C. Argete

Chief Planning Staff DirectorPlanning and Policy
Protected Areas Studies Office Department
and Wildlife Bureau of Environment and Natural
Parks and Wildlife Nature Resources
Center Visayas Avenue, Diliman,
Diliman, Quezon City Quezon City
planning@pawb.gov.ph
Appendixes 217
19. Cristina Regunay Amorsolo St., Makati City

Division Chief joyesguerra@undp.org
MIPD, Foreign Assisted
and Special Projects Office 25. Evelyn M. Juanilli
Visayas Avenue, Diliman, PEO III
Quezon City MIPP, FASPO
regunay@yahoo.com Department of Environment
and Natural Resources
20. Josie Q. Natividad Visayas Avenue,
Project Assistant Diliman, Quezon City
MIPD, Foreign Assisted evelynjuanilli@yahoo.com
and Special Projects Office
Visayas Avenue, Diliman, 26. M. Nasimul Islam
Quezon City Environmental Specialist
SERD/SEAE
21. Marivic Abrera Asian Development Bank
Chief, ERPD ADB Avenue,
Environmental Management Mandaluyong City
Bureau mnislam@adb.org
Visayas Avenue,
Diliman, Quezon City 27. Marissa V. David
Mavic_abrera@yahoo.com ADB Consultant
Managing Director
22. Rica Tumubangan Center for Environmental
Planning Staff Studies and Management
Environmental Management Suite 210, Quadstar Building
Bureau Ortigas Avenue, Greenhills
Visayas Avenue, San Juan, MM
Diliman, Quezon City mvdavid@prime.net.ph
enrickrica@yahoo.com
28. Norma Llemit
23. Teresita J. Reyes Senior Training Specialist
Asst. Chief, Research Center for Environmental
Land and Management Bureau Studies and Management
Plaza Cervantes, Suite 210, Quadstar Building
Binondo, Manila Ortigas Avenue, Greenhills
teresitareyes@yahoo.com San Juan, MM
nvmel@yahoo.com
24. Jocelyn S. Esguerra
National Coordinator 29. Aldwin Camance
United Nations Development Center for Environmental
Programme–GEF-SGP Studies and Management
NEDA Makati Bldg. Suite 210, Quadstar Building
Ortigas Avenue, Greenhills 31. Bethela Castro-DelNero

San Juan, MM Center for Environmental
aldwinbigguy@yahoo.com Studies and Management
Suite 210, Quadstar Building
30. Alex Guintu Ortigas Avenue, Greenhills
Center for Environmental San Juan, MM
Studies and Management isabethela@yahoo.com
Ortigas Avenue, Greenhills
San Juan, MM
aguintu@gmail.com
ADB Conference Room 6417/6418 West

5 June 2008
1. Elmer Benedictos Department of Agriculture

Officer-in-Charge DA Building, Elliptical Road
Department of Health Diliman, Quezon City 1100
San Lazaro Compound,
Rizal Avenue 5. Minnie Dacanay
Santa Cruz, Manila Consultant
egbenedict@yahoo.com Japan International
Cooperation Agency
2. Erwin F. Balane 40th Floor, Yuchenco Tower
Chief Tourism Operations RCBC Plaza, Ayala Avenue
Officer Makati City
Department of Tourism MinervaDacanay.PP@jica.go.jp
T. M. Kalaw, Malate, Manila
6. Aldwin Christian B. Yam
3. Amelia Dulce Supetran Assistant Manager
Sustainable Development Development Bank of the
Adviser Philippines
United Nations Development Sen. Gil Puyat Avenue,
Programme Makati City
NEDA Makati Bldg. acbyam@devbankphil.com.ph
Amorsolo St., Makati City
amelia.supetran@undp.org 7. Reynaldo Baloloy
Principal Engineer A
4. Wilfredo B. Sanidad National Irrigation
Supervisor, Agriculture Administration
Appendixes 219
Visayas Avenue, Quezon City 8th Floor, PNB Financial Center

rlbaloloy@yahoo.com Roxas Boulevard, Pasay City
racosta@usaid.gov
8. Rudolf Fravendoreor
Senior Urban Development 13. Neeraj K. Jain
Asian Development Bank Country Director
ADB Avenue, Philippine Country Office
Mandaluyong City Asian Development Bank
rfravendoreor@adb.org ADB Avenue,
Mandaluyong City
9. Lerma Rosario nkjain@adb.org
Division Manager
Metropolitan Waterworks and 14. M. Nasimul Islam
Sewerage System Environmental Specialist
4th Floor, Administration SERD/SEAE
Building Asian Development Bank
MWSS Complex, ADB Avenue,
489 Katipunan Road Mandaluyong City
Balara, Quezon City mnislam@adb.org
10. Juan Echanove 15. Marissa V. David

Programme Officer ADB Consultant
Environment Programme Office Managing Director
Delegation of the European Center for Environmental
Commission to the Philippines Studies and Management
30th Floor, RCBC Plaza Suite 210, Quadstar Building
Ayala Avenue, Makati City Ortigas Avenue, Greenhills
Juan-Jose.ECHANOVE@ San Juan, MM
ec.eu.int mvdavid@prime.net.ph
11. Aurora C. Maghirang 16. Elvira Ramos-Balinang

Senior Assistant Vice President Training and Organization
Development Bank of the Development Consultant
Philippines bi_trainor@yahoo.com
Sen. Gil J. Puyat Avenue,
Makati City 17. Alex Guintu
acmaghirang@devbankphil. Center for Environmental
com.ph Studies and Management
12. Renerio B. Acosta Ortigas Avenue, Greenhills
Development Assistant San Juan, MM
USAID/Philippines aguintu@gmail.com
18. Bethela Castro-DelNero

Center for Environmental
Studies and Management
Ortigas Avenue, Greenhills
San Juan, MM
isabethela@yahoo.com
ADB Conference Room 6417/6418 West

6 June 2008
1. Benjamin T. Gregorio GMA Complex

President EDSA corner Timog Avenue
Pollution Control Association Diliman, Quezon City
of the Philippines, Inc. CGArce@gmanetwork.com
Rm. 245–247, Cityland
Pioneer St., Mandaluyong City 5. Grace Morella
pcapi888@gmail.com Manager
Philippine Chamber of
2. Syarifah Aman-Wooster Commerce and Industry
Senior Civil Society and (PCCI)
Participation Specialist, 3rd Floor, ECOP Bldg.,
Regional and Sustainable Makati City
Development Department
Asian Development Bank 6. Liza C. Antonio
ADB Avenue, Executive Director
Mandaluyong City Philippine Business for the
sawooster@adb.org Environment (PBE)
2nd Floor, DAP Bldg.
3. Isagani Serrano San Miguel Avenue,
Senior Vice President Pasig City
Philippine Rural pbe@info.com.ph
Reconstruction Movement
56 Mother Ignacia Avenue, 7. Dallay Annawi
Quezon City Researcher
iserrano@prrm.org Environmental Science
for Social Change
4. Carmencita G. Arce Ateneo de Manila Campus,
Vice President Quezon City
GMA Network, Inc., dallayna@yahoo.com
Appendixes 221
8. M. J. Rahman 13. Marissa V. David

OIC, Southeast Asia ADB Consultant
Agriculture, Environment, Managing Director
and Natural Resources Division Center for Environmental
Asian Development Bank Studies and Management
ADB Avenue, Suite 210, Quadstar Building
Mandaluyong City Ortigas Avenue, Greenhills
mjrahman@adb.org San Juan, MM
mvdavid@prime.net.ph
9. Marion Daclan
Executive Technical 14. Elvira Ramos-Balinang
Coordinator Training and Organization
Conservation International Development Consultant
No. 6 Maalalahanin St. bi_trainor@yahoo.com
Teacher’s Village, Diliman,
Quezon City 15. Alex Guintu
10. Rowena Boquiren Studies and Management
Socio-Economic and Policy Suite 210, Quadstar Building
Unit Leader Ortigas Avenue, Greenhills
Conservation International San Juan, MM
No. 6 Maalalahanin St. aguintu@gmail.com
Teacher’s Village, Diliman,
Quezon City 16. Bethela Castro-DelNero
11. Maria Teresa Vinluan Studies and Management
Vice Chairman Suite 210, Quadstar Building
Air and Water Management Ortigas Avenue, Greenhills
Association–Philippine Section San Juan, MM
12D Bellamaja Townhouses isabethela@yahoo.com
411 Rev. Aglipay St., Bgy. Old
Zaniga Mandaluyong City
awma_ph@yahoo.com
12. M. Nasimul Islam

Environmental Specialist
SERD/SEAE
ADB Avenue,
Mandaluyong City
mnislam@adb.org
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About Country Environment Analysis
This report updates the 2004 document and was prepared by the
Asian Development Bank (ADB) to better understand environment
and natural resources management in the country, and to assess
the relevance of its lending and technical assistance. ADB and the
Government will use this analysis to identify the priority
constraints, needs, and opportunities, and respond with strategic
interventions that will reduce the constraints and make the most
of the opportunities.
About the Asian Development Bank
ADB's vision is an Asia and Pacific region free of poverty. Its

mission is to help its developing member countries substantially
reduce poverty and improve the quality of life of their people.
Despite the region's many successes, it remains home to two-thirds
of the world's poor: 1.8 billion people who live on less than $2 a
day, with 903 million struggling on less than $1.25 a day. ADB is
committed to reducing poverty through inclusive economic
growth, environmentally sustainable growth, and regional
integration.
Based in Manila, ADB is owned by 67 members, including 48
from the region. Its main instruments for helping its developing
member countries are policy dialogue, loans, equity investments,
guarantees, grants, and technical assistance.

6 ADB Avenue
Mandaluyong City
1550 Metro Manila
Philippines
www.adb.org
ISBN 978-971-561-807-6
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Publication Stock No. RPT090189

Asian Development Bank.

1. Environmental analysis. 2. Philippines. I. Asian Development Bank.

By making any designation of or reference to a particular territory or geographic area, or by using

Asian Development Bank

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Chapter 3: Challenges and Opportunities 99

Environmental Considerations in the Philippine Lending Portfolio 129

List of Text Boxes

ECC – environmental compliance certificate

MBI – market-based instrument

PEMSEA – Partnerships in Environmental Management for

Role of the Environment and Natural Resources in the

Medium-Term Philippine Development Plan

Millennium Development Goals

The Millennium Development Goals (MDGs) provide the framework for

Forest cover has increased, as have protected areas in the National

Main Environmental Concerns

Environmental issues with cumulative impact include loss of watershed

Domestic pollution, from the discharge of inadequately treated domestic

Regulatory and Institutional Framework

The Government’s commitment to environmental protection and natural

Agrarian Reform, Energy, Interior and Local Government, Science and

Challenges, Opportunities, and Strategic Priorities

DENR Restructuring and Capacity Building to Fulfill a Broader Mandate.

Promulgation of Other Important Legislation. Some very important ENR

Improvement of ENR Data and Information Management. With external

Restructuring and Refocusing of the Environmental Assessment System.

Institutional Mechanisms for Integrated Ecosystem-Based Planning and

Forest Management and Biodiversity Conservation. Increases in forest

Adoption and Application of Spatial Development Plans. To improve the

Integration of Climate Change into Government Programs. The coun-

Use of Market-Based Instruments to Promote ENR Programs and

Integration of ENR Issues into Poverty Reduction Programs.

Possible ADB Interventions

Incorporating Environmental Considerations into Development.

and policies, resolving institutional conflicts and gaps, strengthening institu-

Environment as a Core Area of Operation. ADB intends to promote and

• Infrastructure and climate change. To increase the supply of clean

Interventions will incorporate economic instruments and policies

With a country partnership strategy for the Philippines (2011–2015)

Money and Inflation (annual % change)

Item 1998 1999 2000 2001 2002 2007

Table 2: Country Poverty and Social Indicators

Item 1990 1995 2000 Latest Year

In 2006, the Philippines ranked 90th of 177 countries on the Human

Role of the environment and natural resources

Table 3: Value of Fish Production, by Subsector, 2003–2005

Urban and Industrial Sectors

Energy and Transport Sector

Medium-Term Philippine Development Plan

MTPDP 2004–2010 integrates the planning and policy approaches of the

Millennium Development Goals

more than 710,000 households. Foreign-assisted projects that are improv-

Main Environmental Concerns

The country’s total land area of about 30 million ha is made up of classified

Figure 1: Land Classification, 2005

Forest cover (Figure 2) declined from about 21 million ha, or 70% of

Figure 2: Forest Cover, 2003 (hectares)

Forest Cover in Forestland

Note: Incomplete plantation data.

PEMSEA – Partnerships in Environmental Management for

Figure 1: Land Classification, 2005

Figure 2: Forest Cover, 2003 (hectares)

Table 6: Level of Endemism and Status of Vertebrate

Table 12: Water Quality Scorecard for Surface Water

Box 1: Strategies for Potable Water in the Medium-Term

Table 15: Philippine, US-EPA, and WHO Ambient Air Quality

Table 17: Total Mass Emissions in Metro Manila, 2005

Box 2: Strategies for the Mining Sector in the Medium-Term

Box 3: Strategies for Hazardous Waste in the Medium-Term

Box 4: Strategies for Environmental Emergencies in the