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2016

Environmental and
Social Assessment
(ESA) Report
Harnessing Agribusiness Opportunities
through Robust and Vibrant Entrepreneurship
Supportive of Peaceful Transformation
(HARVEST)
(FINAL DRAFT)

The views expressed in this document are those of the authors and do not necessarily
reflect the views and policies of the World Bank (WB), Japan International Cooperation
Agency (JICA), Food and Agriculture Organization (FAO) and Land Bank of the Philippines
(LBP). The WB, JICA, FAO and LBP do not guarantee the accuracy of the data included in
this publication and accept no responsibility for any consequence of their use.

Land Bank of the Philippines (LBP)


Through the assistance of
World Bank, JICA and FAO
ESA for the Proposed Harnessing Agribusiness Opportunities through Robust and Vibrant Entrepreneurship
Supportive of Peaceful Transformation (HARVEST) 2

Table of Contents

ACRONYMS AND ABBREVIATIONS ..............................................................................6

EXECUTIVE SUMMARY ..................................................................................................8

I. INTRODUCTION ....................................................................................................16
1. The Proposed Program on Economic Growth through Agribusiness Cooperation and
Entrepreneurship ....................................................................................................16
1.1 Background ............................................................................................16
1.2 Project Description .................................................................................17
1.3 Project Location .....................................................................................19
2. Legal and Institutional Framework ....................................................................20
2.1 Environmental and social laws and policies ............................................20
2.2 Existing institutional and governance structures .....................................22

II. ENVIRONMENTAL AND SOCIAL ASSESSMENT (ESA) .....................................25


1. ESA objectives..................................................................................................25
2. ESA methods and scope of work ......................................................................25

III. ENVIRONMENTAL AND SOCIAL CONTEXT: BASELINE SETTING ...................27


1. Geographic or Physical Context ........................................................................27
2. The Natural Environment Context .....................................................................28
2.1 Geology..................................................................................................28
2.2 Soils and minerals ..................................................................................30
2.3 Climate ...................................................................................................33
2.4 Air Quality ..............................................................................................34
2.5 Water .....................................................................................................34
2.6 Biodiversity .............................................................................................38
2.7 Terrestrial Biota/Habitat ..........................................................................41
2.8 Freshwater Biota/Habitat ........................................................................44
2.9 Marine Biota/Habitat ...............................................................................47
3. Demographic and Tri-People Context ...............................................................50
4. Land Tenure Context ........................................................................................51
5. Economic and Poverty Context .........................................................................56
6. Political-Economy Context ................................................................................63
7. Health Situation ................................................................................................64
8. Archaeological and Cultural Resources ............................................................65
9. Conflict Context ................................................................................................65

10. ENVIRONMENTAL RISKS AND POTENTIAL IMPACTS ......................................71


A. Upstream Environmental Risk ...........................................................................71
ESA for the Proposed Harnessing Agribusiness Opportunities through Robust and Vibrant Entrepreneurship
Supportive of Peaceful Transformation (HARVEST) 3
Forest/Land Conversion and Loss of Natural Habitats and Biodiversity ............71
Overfishing and Loss of Marine Resources ......................................................72
Soil Degradation and Erosion ...........................................................................73
Lower Water Availability ...................................................................................75
Water Pollution (Area source from fertilizers and agrochemicals) .....................75
Waste Management .........................................................................................76
Health Impacts from Exposure to Pollution .......................................................77
B. Downstream Environmental Risk ......................................................................77
Pollution ...........................................................................................................77
Waste Management .........................................................................................78
C. Environmental Risk of Agribusiness Supporting Facilities .................................78

51. SOCIAL RISKS AND POTENTIAL IMPACTS .......................................................80


A. Risks and Potential Negative Impacts ...............................................................80
Displacement of Indigenous People..................................................................80
Involuntary Resettlement ..................................................................................81
Increase in Land Conflict ..................................................................................82
Insignificant Economic Improvement due to Low Wage Rate and Land Rent ...82
Less Participation and Benefit of Women in Agri-business ...............................82
Further disempowerment of the poor if with No Effective System for Receiving and
Redressing Grievances from the Communities ..............................................83
B. Positive Impact .................................................................................................83
Generated Jobs and Increased Economic Opportunities in Poor Communities 83
Restored Productivity of Lands Abandoned because of Armed Conflicts ..........83
Enhanced confidence in farming due to improved farming technology and sure market
84
Added Social Services Provided to Host Communities .....................................84

76. RECOMMENDATIONS ..........................................................................................85


A. Environmental Safeguards ................................................................................85
B. Social Safeguards .............................................................................................87
Indigenous Peoples Policy Framework .............................................................87
Resettlement Policy Framework .......................................................................88
Grievance Redress and Social Accountability System ......................................88
Gender Mainstreaming Framework...................................................................89
General Social Management Framework: Other Recommendations.................90

Annex A. List of Indigenous Peoples and their Locations in ARMM


Annex B. List of ARMM Natural Tourist Spots
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Supportive of Peaceful Transformation (HARVEST) 4
Tables and Figures

Table Page
I-1 Triggered Safeguard Policies 19
I-2 Environmental and Social Policies of GOP, WB and JICA relevant to 20
HARVEST
I-3 Implementation Structures of Environmental and Social Policies 22
III-1 Indicative List of Clan Landholdings in Maguindanao 34
III-2 Land Acquisition and Distribution Accomplishment of DAR as of December 34
2014
III-3 Crops Planted in Lands Subjected to Agrarian Reform 35
III-4 ARCs, Land Areas and Beneficiaries of Agrarian Reform as of June 30, 35
2014
III-5 List of Ancestral Domain Claims in Maguindanao 36
III-6 Reported Mineral Deposits in ARMM 39
III-7 Soil Types in ARMM 40
III-8 Suitability of Soils for Agriculture in ARMM 41
III-9 Climate in the ARMM Area 45
III-10 Groundwater Availability 48
III-11 Watershed Areas in ARMM 49
III-12 Percentage of Population with Access to Water Served 49
III-13 KBA and Candidate KBAs in ARMM 52
III-14 Threatened Species Present Globally at only one KBA 53
III-15 Conservation Priority Areas in ARMM 53
III-16 Restricted Range Bird Species in ARMM Endemic Bird Areas 54
III-17 Status of Land Classification in ARMM (2013) 56
III-18 Forest Cover in ARMM (2013) 56
III-19 Watershed Forest Reserve in ARMM (2013) 57
III-20 Forest Agreements in ARMM (2013) 57
III-21 Major Inland Water Resources in ARMM 58
III-22 Marine Conservation Areas in ARMM 60
III-23 Endangered Species in the Philippines 62
III-24 First Semester Per Capita Poverty Threshold and Poverty Incidence 62
among Families: 2006, 2009, 2012
III-25 Human Development Index of ARMM Provinces, 2009 63
III-26 Gender-related Development Index of ARMM Provinces, 2009 63
III-27 Gross Domestic Product (in Thousand Pesos at Current Prices) 64
III-28 Production in ARMM (2013) 66
III-29 Sources of credit in the Bangsamoro 68
III-30 Health Statistics 70
III-31 List of Rido Cases in ARMM as of December 2012 72

Figure Page
I-1 Map of the proposed Bangsamoro core territory 16
I-2 Map of the proposed Bangsamoro core territory 20
III-1 Topography in the Proposed Bangsamoro Area 30
III-2 Geological Map of the Philippines 38
III-3 Volcanoes in the Philippines 38
III-4 Active Faults and Trenches in the Philippines 39
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III-5 Earthquake-triggered Landslide Susceptibility Map 40
III-6 Soil and Soil Suitability in the Philippines: Generalized Soil 42
III-7 Suitability of Soils for Agriculture: Generalized Agro-Edaphic Zones 43
III-8 Liquefaction Susceptibility Map 44
III-9 Climate Map of the Philippines 45
III-10 Environmental Health Risk from Air Pollution in the Philippines 46
III-11 Water Resources Map 47
III-12 Groundwater Map of Mindanao 47
III-13 Watersheds in ARMM Mainland Provinces 48
III-14 Key Biodiversity Areas 51
III-15 Annual Real GRDP Growth Rates (1996-2012) 64
III-16 ARMM Agriculture GRDP (2013) 65
III-17 Nominal Value of Production of Top Ten Major Crops in ARMM: 5-year 65
average, 2008-2012
III-18 Bank Density in the Bangsamoro, 2006-2012 67
III-19 Banked and unbanked municipalities and cities in Bangsamoro, as of end 67
of September 2011
III-20 Total deposits in ARMM, as of end of June 2013 68
III-21 Total loans in ARMM, as of end of June 2013 68
III-22 Mapping for Potential Horizontal Conflicts and Consequences for 71
Agribusiness Investments
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ACRONYMS AND ABBREVIATIONS

AFF Agriculture, Fishery and Forestry


AHFF Agriculture, Hunting, Forestry and Fishing
ARC Agrarian Reform Council
ARMM Autonomous Region in Muslim Mindanao
BARC Barangay Agrarian Reform Committee
BBL Bangsamoro Basic Law
BCT Bangsamoro Core Territory
BIFF Bangsamoro Islamic Freedom Fighters
BHNR Bangsamoro Human Rights Network
BOD Biological Oxygen Demand
BP Bank Procedure
CAB Comprehensive Agreement on the Bangsamoro
CADT Certificate of Ancestral Domain Titles
CARP Comprehensive Agrarian Reform Program
CLOA Certificate of Land Ownership Award
DA Department of Agriculture
DAR Department of Agrarian Reform
DENR Department of Environment and Natural Resources
DTI Department of Trade and Industry
EBA Endemic Bird Area
ECC Environmental Compliance Certificate
ECOGOV Philippines Environmental Governance Project
EGWS Electricity, Gas and Water Supply
EO Executive Order
ESIA Environmental and Social Impact Assessment
FAB Framework Agreement on the Bangsamoro
FAO Food and Agriculture Organization of the United Nations
FDA US Food and Drug Administration
FGD Focus Group Discussion
FLUP Forest Land Use Plan
GAD Gender and Development
GDP Gross Domestic Product
GOP Government of the Philippines
GRDP Gross Regional Domestic Product
HACCP Hazard Analysis and Critical Control Points
HDI Human Development Index
HDN Human Development Network
ICC Indigenous Cultural Communities
IDP Internally Displaced Persons
IOM International Organization for Migration
IP Indigenous Peoples
ISO International Organization for Standardization
JICA Japan International Cooperation Agency
KBA Key Biodiversity Area
LAD Local Agricultural Development
LBP Land Bank of the Philippines
LCE Municipal/City Local Chief Executive
LDC Local Development Council
LGU Local Government Unit
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MFARMC Municipal Fisheries and Aquatic Resource Management Council
MILF Moro Islamic Liberation Front
MW Mega Watt
MMAA Muslim Mindanao Autonomy Act
NAMRIA National Mapping and Resource Information Authority
NCIP National Commission on Indigenous Peoples
NGO Non-Government Organization
OP Operational Policy
OSCC Office of Southern Cultural Communities
PAD Public Administration and Defense
PAMB Protected Area Management Board
PARAD Provincial Agrarian Reform Adjudicator
PARCOM Provincial Agrarian Reform Committee
PCIJ Philippine Center for Investigative Journalism
PD Presidential Decree
PDO Project Development Objective
RA Republic Act
RBFAR Regional Bureau of Fisheries and Aquatic resources
RBOI ARMM Regional Board of Investment
RERBA Real Estate, Renting and Business Activities
RPDO Regional Planning and Development Office
RRUC Regional Reconciliation and Unification Commission
TBD To be determined
TSC Transport, Storage and Communication
USDA United States Department of Agriculture
WB World Bank
WDR World Development Report
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EXECUTIVE SUMMARY

An assessment of the potential impacts of the proposed Harnessing Agribusiness


Opportunities through Robust and Vibrant Entrepreneurship Supportive of Peaceful
Transformation (HARVEST) was carried out by the Land Bank of the Philippines (LBP), a
financing facility for agribusiness and agribusiness-related investors in the Bangsamoro territory.
The basis of the assessment is the consolidated data gathered during the joint safeguards
scoping mission of the World Bank and the Japan International Co-operation Agency (JICA) in
August 2014 and consultations with stakeholders from the government, civil society and
business sectors in mainland and island provinces of the Autonomous Region in Muslim
Mindanao (ARMM) from January 26-31, 2015.

The ESA considers the potential environmental and social impacts (positive or negative)
from the projects that will be supported by the financing facility. The assessment of impacts
covers the farming and production systems, post-production activities such as extraction,
refining and processing, and the associated agribusiness support facilities. This ESA has been
undertaken with directions provided by the World Bank, JICA, and the Land Bank of the
Philippines (LBP). The assessment takes off from the initial scoping of issues and risks
conducted in August 2014 jointly by the World Bank, JICA and LBP. The assessment has been
carried out guided by all relevant policies, guidelines, and standards of the World Bank, JICA
and the Government of the Philippines.

This ESA aims at assessing the risks and potential impacts (positive and negative) of the
proposed financing facility and offering recommendations to avoid and mitigate adverse impacts
particularly on the poor and most vulnerable sectors and to enhance inclusion and ownership of
the proposed development interventions. The results shall be used as inputs to the preparation
of the proposed environmental and social management framework and other applicable
safeguards instruments. The assessment will specifically look into the risks and potential
impacts of the proposed financing facility on the built and natural environment as well as in the
areas of involuntary resettlement and indigenous peoples.

In identifying potential risks and impacts on and potential changes to the communities and
the environment, the existing environmental and social conditions were established through:
 Detailed reviews of all available secondary data sources (i.e. existing documentation and
literature);
 Key informant interviews and focus group discussions on potential agribusiness
ventures;
 Key informant interviews with key national and regional government agencies;
 Focus group discussions with farmers, contract growers, and large-scale producers; and
 Visits to and documentation of communities and production facilities including
environmental infrastructure such as waste treatment and other facilities and operations
that may pose environmental risks and impacts.

Project description

In summary, the proposed program is envisaged to be a lending facility for agribusiness


and agribusiness-related investors in the Bangsamoro territory. It will provide a line of credit to
Land Bank of the Philippines at a concessional rate to on-lend to eligible sub-borrowers directly
or through accredited conduits. The proposed project loan is US$265 million. The project period
is expected to be five years. The financing facility aims to generate investment and create
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sustainable jobs and income generation opportunities in Bangsamoro territory. As a project, it
has two components: (1) Investment Development Fund with cost estimated at US$265 million;
and (2) Capacity Building and Institutional Development, Monitoring and Evaluation.

Under Component 1, Investment Development Fund, HARVEST will provide a line of


credit at a concessional rate and terms to eligible sub-borrowers. Sub-loans would be demand-
driven and made to end-borrowers meeting a set of eligibility criteria. Three main potential
categories of sub-borrowers are: (i) large private corporations; (ii) co-operatives (producers‟
organizations) and private anchor firms; and (iii) micro, small and medium enterprises.

The Component 2 on the other hand is a technical assistance directed to LBP to assist
build the capacities of cooperatives, deepen outreach and dissemination, support monitoring
and evaluation, and strengthen safeguards capacity.

This report is a concise presentation of the results of the assessment, describing the
prevailing environmental and socio-economic and cultural conditions of the proposed
Bangsamoro region as setting for identifying potential risks and impacts from projects that may
be supported by the financing facility. The report also provides recommendations that will be the
basis of the environmental and social management framework as well as other applicable
safeguard instruments.

Prevailing environmental and social conditions

The proposed Bangsamoro region shares many similar physical and environmental
characteristics of those in Mindanao and the country. The region is endowed with rich natural
resources characterized by river basins, wetlands, and forest lands, production areas,
settlements and coastal and marine areas. Terrestrial and marine biodiversity in the region is
still considered rich although there are habitats that are threatened by exploitation and
degradation. Within the region there are declared (local, national, and internationally
recognized) conservation and protection areas.

One distinguishing feature of the communities in the region is its demography and tri-
people context – with the population consisting of Moros or Muslims, lumads or indigenous
peoples, and Christian settlers from Luzon and Visayas and has influenced the social structure
and aggregation of communities. The region has for many years undergone tumultuous conflicts
that have sustained poverty and resulted to instability.

Details of the baseline conditions are presented in the report.

Environmental and Social Risks and Potential Impacts

The summary of the environmental and social risks and potential impacts that may arise
from agribusiness activities in the Bangsamoro Region were identified and described.

The environmental risks and potential impacts of agribusinesses vary according to the
type of project, practices and the absorbing capacity of the environment. To facilitate the
assessment of environmental risk and potential impacts, agribusinesses were subdivided into
farming and production systems, post-harvest processing including extraction and purification,
and agribusiness support facilities.
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Supportive of Peaceful Transformation (HARVEST) 10
The upstream environmental risks and potential impacts related to farming and other
crop production systems include:
 Forest/land conversion and loss of natural habitats and biodiversity;
 Overfishing and loss of marine resources;
 Soil degradation and erosion;
 Lower water availability;
 Water pollution (application of fertilizers and agrochemicals);
 Waste management, and
 Health impacts from exposure to agrochemicals and other pollutants.

The downstream environmental risks and impacts related to post-harvest processing,


extraction and purification include:
 Pollution (point sources such as emission to air and discharge of effluent), and
 Waste management.

The environmental risks and impacts related to agribusiness supporting facilities, such
as power plants, waste treatment facilities, irrigation systems, fishing boats, etc.:
 Forest/land conversion and loss of natural habitats and biodiversity;
 Overfishing and loss of marine resources;
 Soil degradation and erosion;
 Less water availability and poorer quality;
 Pollution (point sources such as emission to air and discharge of effluent), and
 Waste management.

The social risks and potential impacts of especially large agribusinesses are caused by
three main factors: problematic land administration system resulting into insecure land tenure
and many land conflicts; remote location of many poor people, especially the indigenous
peoples (IPs), and poor road system; and lack or inadequate access to basic services, including
education. Given these factors, identified social risks and potential impacts are:
 Displacement of indigenous people;
 Involuntary resettlement given the need for land of large agribusiness;
 Increase in land conflicts;
 Insignificant economic improvement due to low wage rate and land rent;
 Less participation and benefit of women and other vulnerable people; and
 Further disempowerment of the poor if without an effective system for receiving and
redressing grievances from the communities.

Positive social impacts identified were:


 Generated jobs and increased economic opportunities in poor communities;
 Restored productivity of lands abandoned because of armed conflicts;
 Enhanced confidence in farming due to improved farming technology and sure
market introduced by large agri-business companies; and
 Added social services provided to host communities

In view of the above, the HARVEST is assessed to trigger four safeguards policies of the
World Bank – Environmental Assessment (WB OP/BP 4.01); Pest Management (OP 4.09);
Natural Habitats (OP/BP 4.04); Forests (OP/BP 4.36); Indigenous Peoples (OP/BP 4.10); and
Involuntary Resettlement (OP/BP 4.12) – and related policies of Japan International
Cooperation Agency (JICA) and the Government of the Philippines (GOP).
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Recommendations

Given the identified environmental and social risks and potential impacts and based on the
recommendations of the stakeholders, the ESA team recommends the following safeguards
guidelines and instruments for HARVEST.

A. Environmental Safeguards

1. Environmental and social management framework (ESMF) as the safeguard instrument. The
HARVEST will finance projects and activities that have yet to be identified and therefore the
predicted impacts cannot be determined at this stage. As the appropriate safeguard
instrument in this circumstance, the ESMF sets out the principles, rules, guidelines and
procedures to assess the environmental and social impacts. The ESMF will contain
measures and plans to reduce, mitigate and/or offset adverse impacts and enhance positive
impacts, provisions for estimating and budgeting the costs of such measures, and
information on the agency or agencies responsible for addressing project impacts.

2. Each sub-project to be funded by the HARVEST needs to go through a screening process,


consistent with the World Bank, JICA, and LBP procedures, as may be defined in the
environmental and social management framework (ESMF). If the proposed projects are
required to undertake an EIA as permit conditions of the Government, the project proponent
needs to provide sufficient details to meet these requirements according to the Government
and LBP Due Diligence process. In particular, the project‟s impact on natural habitat, forest
and physical cultural resources needs to be included.

3. Pest Management. For projects anticipated to have pest management issues typical of
mono-culture cropping systems, the requirements of the Bank‟s on Pest Management (OP
4.09) will need to be met. The policy on Pest Management highlights the need to promote
integrated approaches in pest management particularly on Bank-financed projects. If the
projects are known to promote the increased use of pesticides as well as the health and
environmental risks, maintain unsustainable pest management practices, or will procure
pesticides and application equipment, the proponents will be required to include pest
management issues in the EA, develop a pest management plan (PMP), and the list and
details of pesticides that are authorized for procurement under the project. It also becomes
strategic for the project to avail, if feasible the Department of Agriculture‟s (DA) Integrated
Pest Management program, KASAKALIKASAN. The program trains, empowers and
develops farmers‟ skills in making critical and informed decisions towards a more productive,
profitable and sustainable crop production system. It employs an experiential learning
approach through the Farmer Field Schools (FFSs) to enable farmers to practice IPM.

4. Forests. For projects that are expected to have impacts on the health and quality of forests
as well as the rights and welfare of its dependent communities and may bring about
changes in the management practices of forests, the Bank‟s Policy on Forest (OP/BP 4.36)
applies. Further assessments may be required from the project proponent including
adequacy of land allocation for the management, conservation, and sustainable
development of forests, including any additional allocations needed to protect critical forest
areas. Other safeguards policies related to the protection of the welfare of communities
including involuntary resettlement (OP/BP 4.12) and Indigenous Peoples (OP/BP 4.10) will
also be applied.
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5. Natural habitats. Projects involving establishment of plantations have potential to cause


conversion of natural habitats in the region. Identified during the scoping, there are 10
protected areas in the region with specific legal declarations totaling an approximate area of
184,000 hectares. Some of the biggest watershed reservations and wetlands are located in
this region. Where conversion is predicted, the requirements of the Bank‟s policy on Natural
Habitat (OP 4.04) will need to be complied with including acceptable mitigation measures
and the conservation of compensatory natural habitats.

6. Each project to be funded by the HARVEST needs to include a management plan, with the
level of detail suited to the project‟s impacts. The management plan may include among
others specific environmental mitigation measures such as soil and water conservation,
waste management, and pollution control and minimization, where applicable and
appropriate to the scale of the project and applicable pollution control standards. The
mitigation measures will cover the various phases of the project including pre-construction,
construction, and operation if the project involves infrastructure development.

7. The projects will need to comply with applicable legislations and regulations including
fertilizer and pesticide use, water use rights and permits, environmental clearance certificate
and its approval conditions, licenses to operate fishing vessel/gear, fishing bans, etc. Where
appropriate and feasible, proponents may need to take advantage of the benefits provided
by environmental management systems (EMS) and certifications. Appropriate EMS and
certifications provide companies with a systematic approach to compliance and a structured
way to manage their environmental aspects and impacts. These provide companies with
benefits that range from operational efficiency, management of risks, and improved
compliance. For large scale projects, environmental management systems consistent with
international certification such as ISO 14001, Rainforest Alliance, HACCP, FDA, Dolphin
Safe and others can be considered.

8. Projects to be funded by the HARVEST need to consider and avoid areas that are known to
have geological hazards (topographical and soil) as outlined in the baseline conditions, such
as: steep slopes and potential soil liquefaction. If that is not possible, additional mitigation
measures should be implemented to avoid/minimize potential environmental impacts.

9. Indigenous Peoples (IP). Indigenous Peoples Policy Framework will be needed as part of
the safeguards instrument for the HARVEST. For subprojects located in IP ancestral
lands/domain or subprojects affecting IPs (See Annex A for locations of IPs in ARMM) 1:

The Bank‟s Policy on Indigenous Peoples (OP 4.10) requires the following from sub
borrowers before approval or release of loans:

 Compliance with the provision of the Indigenous People‟s Rights Act of 1997 and ARMM
Tribal People‟s Rights Act of 2008 on seeking free, prior, informed consent (FPIC) of
indigenous peoples through securing a certification from the Office of Southern Cultural
Communities (OSCC) for indigenous peoples (IPs) in Maguindanao, Lanao del Sur, Sulu
and Tawi-tawi and from the National Commission on Indigenous People (NCIP) for IPs
in Basilan that the affected IPs in covered area(s) agree in consensus with a proposed
sub-project; and

1
Based on data provided by the Office of Southern Cultural Communities (OSCC) and National Commission on
Indigenous People (NCIP) – Basilan.
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 Provide measures, such as representation of IPs in multi-stakeholder structures that will


be established for the HARVEST that will ensure that the IPs in covered areas will
benefit rather than be disadvantaged by the agribusiness.

On the Component 2, Capacity Building and Institutional Development, Monitoring and


Evaluation, the integration of the following:

 Development of capabilities of selected groups or associations or co-operatives of IPs in


agri-business development and operations, and marketing (e.g., value/supply chain
analysis). Consult IPs, through the assistance of OSCC and NCIP-Basilan, in the
development of criteria for the selection of these groups.
 Coordination with civil society organizations and other government agencies operating in
areas of sub-borrowers for convergence of services to IPs;
 Setting up of multi-stakeholder monitoring and evaluation structure in municipalities
where large agribusiness companies and co-operatives will be supported to oversee the
progress of agri-business and provide quick and appropriate interventions on problems
or conflicts affecting the IPs.

10. Involuntary Resettlement. The Resettlement Policy Framework will be prepared in case
land acquisition for agri-business will require transfer or resettlement of landholder(s) or
occupants. This social safeguard instrument shall ensure that:

 Resettlement is voluntary and necessary;


 Affected landholders or occupants, regardless of their land tenure situation (informal
or formal; with or without land titles) are consulted and agree with the terms of the
resettlement (e.g., fair land lease/rental cost, just compensation and assistance, and
others); the guiding principle is informed choice especially on the part of the small
landholders or poor occupants;
 Multi-stakeholder structure is established to ensure compliance with fair and proper
guidelines and procedures for land acquisition and resettlement, and to prevent
exacerbation of existing land conflicts in affected areas; members of this structure
shall be determined in consultation with the local government unit (LGU), and may
include representatives of the LGU, civil society organizations (e.g., NGOs operating
in the area or assisting affected small landholders and/or occupants, and people‟s
organizations), concerned government line agencies (e.g., DENR, DAR, NHA, and/or
others that have jurisdiction over or programs/projects related to affected land) and
other groups or individuals (e.g., datu, respected elders, mediators, etc.) with
knowledge of land situation and conflicts, if any, in the area;
 A sub-borrower submits a resettlement action plan, which reflects the above
guidelines, and properly implements this plan prior to loan approval.

11. Grievance Redress and Social Accountability System. The purpose of installing a
grievance redress and social accountability system is to prevent emergence of new
conflicts or exacerbation of existing conflicts by ensuring responsiveness of the Land Bank
of the Philippines to grievances and concerns of stakeholders and fostering social
accountability. This system may include:

 Proactive guidelines or measures to prevent conflicts, such as:


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 Peace and Conflict Analysis (PCA) during the social preparation phase of an
agribusiness. In doing PCA, selected stakeholders: (i) assess if and how a
proposed agribusiness can be conflict-creating or peace-enhancing; and (ii)
propose measures to transform the agri-business into a peace-enhancing
endeavor. The social safeguards team of the Land Bank should thus be trained
in conducting the PCA.
 Identification and consultation with respected individuals (e.g., datu, elders,
mediators) and groups/organizations (e.g., LGUs, NGOs, POs) that have
knowledge of the social condition in the location of proposed agribusiness;
 Policy requiring compliance with minimum wage rate for agribusiness workers
and observance of informed choice in entering into a lease agreement and
resettlement arrangements;
 Information dissemination on this grievance redress system;
 Procedures and mechanisms for filing, receiving and responding to complaints and
grievances against HARVEST in general and against each supported agri-business;
 Procedures for helping illiterate complainants; and
 Grievance redress or conflict resolution/management structures and procedures.

12. Gender Mainstreaming Framework and Strategy. In compliance with Republic Act (RA)
9710 or the Magna Carta of Women of 2009, and RA 7192 or the Women in Development
and Nation Building Act of 1992, the Land Bank of the Philippines shall formulate its
gender mainstreaming framework and strategy for HARVEST. The general objective is to
promote meaningful participation and equitable benefit of women and men from the
HARVEST and from supported agri-business subprojects. The promotion of women‟s
participation in HARVEST shall be in accordance with Muslim Mindanao Autonomy Act
280 or the ARMM GAD Code, RA 9710 or the Magna Carta of Women (MCW) and RA
7192 or the Women in Development and Nation Building Act. The gender mainstreaming
framework and strategy will push for the integration of gender in the manual of operations
of the Land Bank of the Philippines for HARVEST. This will include, among others, the:

 Collection and analysis of sex-disaggregated data and gender-related information,


including barriers (if any) to participation of women in agribusiness;
 Development of a Gender and Development (GAD) plan for HARVEST that may
include, among others:
 The formulation of policy that will require lending centers of Land Bank to support
the gender mainstreaming strategy of HARVEST;
 Capability development in gender sensitivity and gender mainstreaming
especially in a tri-people (Moro, Lumad, Christian) setting;
 Ensuring participation of both women and men in multi-stakeholder structures
that will be established for the HARVEST;
 Allocation of at least 5% of the total budget of HARVEST for promoting gender
equality and women‟s empowerment in agribusiness through supporting agri-
business projects of selected/qualified women‟s associations (as part of
Component 1) and training of staff of lending centers of LBP and agri-business
operators in gender sensitivity and gender mainstreaming (as part of Component
2).
 Inclusion of gender sensitive indicators (e.g., number of women and men who
participate and benefit from the supported agribusiness subproject) in monitoring and
evaluating supported agribusiness subprojects.
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 To ensure effective and coordinated implementation of this gender mainstreaming


framework, the HARVEST is proposed to:
 Have a gender specialist or form a gender focal team for HARVEST;
 Tap Mindanao CSOs with expertise in Gender and Development in orienting
sub-borrowers on how to promote gender equity in agribusiness located in tri-
people communities; and
 Put up a reward system for most gender-sensitive agribusiness subproject.

13. General Social Management Framework: Other recommendations. In view of the


history of poverty and conflict situation in ARMM and given their apprehensions of large
agribusiness companies, many participants from civil society organizations proposed the
following:

 Prioritization of social enterprises that are: primarily beneficial to the poor, respectful
of the culture of the tri-people of ARMM (e.g., halal and Islamic culture, indigenous
people‟s culture), conflict-sensitive, peace-enhancing, environment-friendly,
promoting diversified model of agriculture, and climate-resilient;
 Development of the capacity of small sub-borrowers(e.g., small landholders or fishers
associations or co-operatives; contract growers) in enterprise development,
negotiating for fair contracts, and marketing -- this may be incorporated in
Component 2 of HARVEST;
 Inclusion of measures to help potential small sub-borrowers comply with the lending
requirements of Land Bank;
 Tapping the services of civil society organizations in assisting small sub-borrowers in
the areas of capacity development, provision of legal assistance when needed, and
others; and
 Mobilization of other government agencies in the provision of support services, such
as infrastructure development, access to water and electricity, marketing, and others
that will make social enterprises more viable.

14. In compliance with the government‟s Full Disclosure Policy as prescribed in DILG
Memorandum Circular 2012-141, the annual accomplishment report, including gender
accomplishment report, will be posted in publicly accessible and conspicuous places in
lending centers of Land Bank, as well as in the website of the Land Bank not later than the
end of January of the ensuing year.
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I. INTRODUCTION

1. The Proposed Program on Economic Growth through Agribusiness Cooperation


and Entrepreneurship

1.1 Background

1.1.1 On September 10, 2014 President Benigno Simeon C. Aquino III submitted to the
Philippine Congress a draft Bangsamoro Basic Law (BBL) for enactment to supersede
Republic Act (RA) 9054 or the Autonomous Region in Muslim Mindanao (ARMM)
Organic Law. The draft BBL is based on the Comprehensive Agreement on the
Bangsamoro (CAB) signed by the Government of the Philippines (GOP) and the Moro
Islamic Liberation Front (MILF) on March 27, 2014 after years of peace negotiation. The
Congress has committed to prioritize the BBL and targets to submit it to the people of
the proposed Bangsamoro territory in a plebiscite by mid-2015. With this progress,
hopes are high that the decades-old armed conflict in Mindanao, which have brought
massive displacements and kept the region in the vicious cycle of poverty, will finally
come to an end.

1.1.2 The positive developments on the peace process have generated varied reactions on
the ground. The most pronounced and commonly held view across sectors is that this
peace agreement will change the social, economic and political landscape of the region
for the better with the eventual installation of a governance system that is more attuned
to the peculiar demographic (tri-people) and cultural context of the region and to the
Bangsamoro‟s quest for self-determination.

1.1.3 There is consensus among Mindanao policy makers and the private sector that a key
factor that has discouraged more investments to the region is the armed conflict. Thus,
the signing of the peace accord has been widely supported by various Mindanao
stakeholders as expectations are high that it will trigger investors' interest particularly in
the Bangsamoro area. In fact, recent data from the ARMM Regional Board of
Investments (RBOI) have shown a significant increase in the amount of new investments
in the region.

1.1.4 It is in this context that the Government has approached the World Bank and JICA with a
proposal to establish an agribusiness line-of-credit through the Land Bank of Philippines.
The scheme aims to serve as incentive to agribusiness and agribusiness-related
investors and is expected to generate more jobs and more economic activities in the
area.

1.1.5 The HARVEST intends to help address one of the key pillars of the GOP-MILF peace
accord – the socio-economic reconstruction and development of the Bangsamoro area.
Private sector investments are critical in promoting growth and generating jobs, so badly
needed in the region. Their engagement is consistent with the employment creation
agenda and Peace and Security Intermediate Outcome 2, specifically “improved
livelihood, entrepreneur and employment status of adult population in conflict-affected
areas” of the Philippine Development Plan, 2011-2016. The World Development Report
(WDR) 2011 similarly recognizes that the creation of "citizens‟ jobs" is a key stabilization
and normalization measure in communities emerging from conflict.
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1.2 Project Description

1.2.1 The proposed Harnessing Agribusiness Opportunities through Robust and Vibrant
Entrepreneurship Supportive of Peaceful Transformation (HARVEST) is envisaged to be
a lending facility for agribusiness and agribusiness-related investors in the Bangsamoro
territory. The facility will provide a line of credit to Land Bank of the Philippines (LBP) at
a concessional rate to on-lend to eligible sub-borrowers directly or through accredited
conduits. The proposed project loan is US$265 million. The project period is expected to
be five years (expected implementation commencement in October 2015 and completion
in December 2020), with project closing in June 2021. The Project Development
Objective (PDO) is to generate investment and create sustainable jobs and income
generation opportunities in Bangsamoro territory. It has two components: (i) Investment
Development Fund with cost estimated at US$265 million; and (ii) Capacity Building and
Institutional Development, Monitoring and Evaluation.

1.2.2 Under Component 1, Investment Development Fund, HARVEST will provide a line of
credit at a concessional rate and terms to eligible sub-borrowers. Sub-loans would be
demand-driven and made to end-borrowers meeting a set of eligibility criteria. Three
main potential categories of sub-borrowers are: (i) large private corporations; (ii) co-
operatives (producers‟ organizations) and private anchor firms; and (iii) micro, small and
medium enterprises.

1.2.2.1 Large private corporations include nucleus estate type projects – private entities
leasing in land from local owners for an extended period (15-20 years under some
present arrangements), carrying out land preparation and planting activity, deploying
local community members as labor in accordance with local labor and wage laws.
This would also include in-estate infrastructure development such as access roads,
captive power generation, etc. for new or expansion investment. LBP will lend directly
to the large private corporations.

1.2.2.2 Financing of organized smallholders, particularly cooperatives (producers‟


organizations) and private anchor firms, is required for inclusiveness, reaching a
larger proportion of the population, and widening the basis for economic growth.
Sourcing directly from smallholders will increase the likelihood of attracting large
private firms willing to support contract farming or out-grower schemes. LBP will lend
directly to cooperatives (producers‟ organizations) for direct investment or for on-
lending to member farmers for existing or newly formed cooperatives. LBP will also
lend directly to private firms which propose to source produce through contract
farming or out-grower schemes. The loan will be at the concessional rate, for a
maximum of 15 years, including grace period based on the maturity period of the
specific commodity being produced, reflecting sub-project cash flow generation
potential (to be determined during preparation).

1.2.2.3 The inclusion of micro, small and medium enterprises as potential sub-borrowers will
offer income generation opportunities to those who have no access to land or do not
propose to engage in agriculture. This would support agriculture or agri-business by
providing ancillary or tertiary services along the value chain (cold storage, post-
harvest facilities, farm inputs and supplies, repairs and maintenance, connectivity to
markets, among other interventions). Two options will be explored during preparation:
(i) LBP lending directly to these enterprises; or (ii) LBP providing whole-sale funding
to microfinance providers for the purposes of on-lending to these enterprises. The
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loan will be at the concessional rate, for a maximum of 7 years, including grace period
reflecting sub-project cash flow generation potential (to be determined during
preparation).

1.2.3 Component 2, Capacity Building and Institutional Development, Monitoring and


Evaluation, is technical assistance to LBP from JICA. This component would cover the
following activities:

1.2.3.1 Capacity building of cooperatives (producers’ associations/organizations). This would


be done through promotion, training and technical assistance to: (i) promote
partnerships between smallholders and private sector buyers; (ii) help associations
and purchasers enter into fair and feasible marketing agreements; and (iii) ensure
producer associations deliver on commitments under marketing agreements (by
organizing investments and TA in production systems, and by facilitating operations).
This would be based on deepening and operationalizing the knowledge that LBP
already has (Food Supply Chain Program, Grassroots Development Program, and
others) in the context of the project-supported cooperatives and anchor firms.

1.2.3.2 Deepening outreach and access to financial services. This would be done through
capacity development of lending centers to market the project line of credit, and
through dissemination programs by Cooperative Development Authority, Local
Government Units, etc. to publicize the concessional loans offered under the project.
This sub-component will also support coordination with other local partners in the
Bangsamoro region, such as the Regional Board of Investments (RBOI), Department
of Trade and Industry (DTI), and Department of Agriculture (DA) in the Autonomous
Region in Muslim Mindanao (ARMM).

1.2.3.3 Monitoring and Evaluation. This would support mid-term and final project completion
assessments.

1.2.3.4 Strengthening the capacity of the Environmental Program Management Department


(EPMD) of the LBP particularly in environmental and social safeguards.

1.2.4 Projects financed will be subject to compliance with requirements under the World
Bank‟s and JICA‟s safeguard policies, and related policies of the Government of the
Philippines. During a joint safeguards scoping mission, LBP, WB and JICA identified four
safeguard policies triggered by HARVEST. This was later amended to reflect the
recommendations of the Regional Safeguards Secretariat, shown in Table I-1. The
complexity of environmental and social issues in the Bangsamoro requires this
comprehensive environmental and social impact assessment before project appraisal.

Table I-1. Triggered safeguard policies


Safeguard policies Yes No TBD
Environmental Assessment (WB OP/BP 4.01) X
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Natural Habitats (OP/BP 4.04) X
Forests (OP/BP 4.36) X
Pest Management (OP 4.09) X
Physical Cultural Resources (OP/BP 4.11) X
Indigenous Peoples (OP/BP 4.10) X
Involuntary Resettlement (OP/BP 4.12) X
Safety of Dams (OP/BP 4.37) X
Projects on International Waterways (OP/BP 7.50) X
Projects in Disputed Areas (OP/BP 7.60) X

1.3 Project Location

1.3.1 The HARVEST will be implemented in the Bangsamoro region, which is located in the
southwestern part of the Philippines. The proposed core territory is composed of the
following:

 Autonomous Region in Muslim Mindanao (ARMM) consisting of five provinces


(Basilan, Lanao del Sur, Maguindanao, Sulu and Tawi-tawi) and one city (Marawi
City);

 The municipalities of Baloi, Munai, Nunungan, Pantar, Tagoloan, and Tangkal in the
province of Lanao del Norte;

 The thirty nine (39) barangays in the municipalities of Kabacan, Carmen, Aleosan,
Pigkawayan, Pikit, and Midsayap in the province of North Cotabato who voted for
inclusion in the ARMM in 2001 plebiscite;

 The cities of Lamitan and Isabela in the province of Basilan; and

 Other contiguous areas that may opt to be included in the Bangsamoro region.

Figure I-1. Map of the proposed Bangsamoro core territory/region.


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2. Legal and Institutional Framework

2.1 Environmental and social laws and policies

2.1.1 Table I-2 below provides a comprehensive list of major environmental, social and related
policies of the Government of the Philippines (GOP), World Bank and JICA that are to be
considered in assessing the potential environmental and social impacts of HARVEST
subprojects, as well as in formulating measures to ensure compliance by sub-borrowers.

Table I-2. Environmental and social policies of GOP, WB and JICA relevant to HARVEST
Government of the Philippines
A. Environmental Policies/Regulations
RA 9275 Clean Water Act of 2004
RA 10121 Philippine Disaster Risk Reduction Management Act of 2010
RA 9147 Wildlife Resources Conservation and Protection Act (2001)
RA 9003 Ecological Solid Waste Management Act of 2000
RA 8749 Clean Air Act of 1999
RA 7942 Philippine Mining Act (1995)
RA 7586 National Integrated Protected Areas System (NIPAS) Act of 1992
RA 6969 Toxic Substances and Hazardous and Nuclear Wastes Control Act of 1990
PD 1144 Fertilizer and Pesticide Act
RA 8550 Philippine Fisheries Code
PD 1067 Water Code of the Philippines (1976)
PD 984 Pollution Control Law (1976)
PD 705 Revised Forestry Code (1975)
PD 1586 Philippine Environmental Impact Assessment (EIA) System
DAF AO1, s 2006 Implementing Rules and Regulations of Muslim Mindanao Autonomy Act
(MMMA) 86 or the ARMM Aquatic and Fisheries Code of 1999
B. Social Safeguard Policies
RA 8371 Indigenous Peoples Rights Act of 1997
MMAA 241 Tribal People‟s Rights Act of 2008
EO 1035 Acquisition by the Government of Private Real Property or Rights (1985)
RA 8974 Facilitating the Acquisition of Right-of-Way Sites for Infrastructure
Subprojects
RA 7279 Urban Development and Housing Act – as it pertains to rights against
forced demolition and resettlement
PD 442 as amended Labor Code of the Philippines
Wage Order ARMM 15 Rules Implementing Wage Order No. ARMM 15
PD 260 Declaring (various places) as National Shrines, Monuments, and/or
Landmarks, defining the implementing agencies and providing funds
therefore (1975)
PD 1505 Amending Presidential Decree No. 260, as amended, by Prohibiting the
Unauthorized Modification, Alteration, Repair and Destruction of Original
Features of all National Shrines, Monuments, Landmarks and Others
Important Historic Edifices (1978)
RA 7192 Women in Development and Nation Building Act of 1992
RA 9710 Magna Carta of Women
MMAA 280 ARMM Gender and Development (GAD) Code
C. Other Related Regulations
RA 7160 Local Government Code of the Philippines
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PD 856 Sanitation Code of the Philippines


2
RA 9054 ARMM Law of 2001
World Bank
OP/BP 4.01 Environmental Assessment
OP/BP 4.12 Involuntary Resettlement
OP/BP 4.04 Natural Habitats
OP/BP 4.36 Forests
OP/BP 4.10 Indigenous People
OP/BP 4.11 Physical and Cultural Resources
OP 4.09 Pest Management
JICA
JICA Guidelines for Environmental and Social Considerations (April 2010), as confirmed with Department
of Risk Analysis and Environmental Assessment, JICA

2.1.2 The overall guiding principles of the social safeguard policies are:

 No person in the autonomous region shall be subjected to any form of discrimination


on account of creed, religion, ethnic origin, parentage or sex.
 Development projects should fully respect the dignity, human rights, economies, and
cultures of indigenous peoples.
 Involuntary resettlement should be avoided where feasible;
o Where population displacement is unavoidable, it should be minimized by
exploring all viable options;
o People unavoidably displaced should be provided just compensation and
assisted so that their economic and social future would be as favorable as it
would have been in the absence of the project; and
o People affected should be fully informed and consulted, and agree on
resettlement and compensation options.
 Grievance redress mechanisms must be available.
 Promotion and protection of the health of the people is a fundamental concern.
 Women and men should have equal access to all government and private sector
programs granting agricultural credit, loans and nonmaterial resources and shall
enjoy equal treatment in agrarian reform and land resettlement programs; and their
equal rights to the use and management of land, water and other natural resources
should be promoted.
 It is unlawful for any person to modify, alter, repair or destroy the original features of
any national shrine, monument, landmark and other important historic edifices
declared and classified by the National Historical Institute as such without the prior
written permission from the Chairperson of said Institute.

2.1.3 The overall guiding principles of the environmental policies, regulations and safeguard
policies are to:

 Ensure sustainable development through a rational balance between socio-economic


development and environmental protection for the benefit of present and future
generations.

2
The ARMM Law of 2001 will be replaced by the Bangsamoro Basic Law after ratification in a plebiscite. Laws
and policies promulgated by the ARMM Regional Assembly, titled Muslim Mindanao Autonomy Act (MMMA)
may be repealed/amended/replaced when the Bangsamoro Government has been established.
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 Conform to environmental protection regulations and requirements.


 Counteract causes of biodiversity loss.
 Ensure conversion of natural habitat triggers a comprehensive environmental
assessment process commensurate with the screened ecological impacts.
 Promote management, conservation, and sustainable development of forest
ecosystems.
 Promote and support safe, effective, and environmentally sound pest management.

2.2 Existing institutional and governance structures

2.2.1 Table I-3 lists the major institutional mechanisms/structures for the implementation of the
above-mentioned environmental and social policies.

Table I-3. Implementation structures of environmental and social policies


Institutions/ Structures Tasks related to HARVEST
 Adopt and implement a comprehensive urban land reform and land
ARMM Regional Government and water use program, to ensure the conservation, protection and
(RA 9054 or ARMM Law) just utilization of lands and waters within its jurisdiction.
 Provide training programs, create livelihood and job opportunities,
This will be replaced by the allocate equitable preferential rights to its inhabitants, and adopt
Bangsamoro Transition laws that will safeguard the rights of workers.
Authority upon ratification of  Recognize, promote, and protect the rights and welfare of farmers,
the Bangsamoro Basic Law farm-workers, fisherfolk, and fish-workers, as well as cooperatives
and by the Bangsamoro and associations of farmers and fish-workers.
Government after election of  Uphold and protect the fundamental rights of women and children
its officials including the right of women to engage in lawful employment.
Women and children, especially orphans of tender age, shall be
protected from exploitation, abuse or discrimination.
 Promote the preferential use of local labor and locally produced
goods and materials by adopting measures to increase their
competitiveness.
 Recognize, respect, protect, preserve, revive, develop, promote,
and enhance the culture, customs, traditions, beliefs, and practices
of the tri-people of the autonomous region.
Regional Economic and Serve as the planning, monitoring, and coordinating agency for all
Development Planning Board development plans, projects, and programs intended for the
(RA 9054) autonomous region.
Local Development Council  Assist the corresponding Sanggunian (legislative body at the local
(LDC) at the barangay, government level) in setting the direction of economic and social
municipal/city and provincial development, and coordinating development efforts within its
levels territorial jurisdiction.
Secretariat of an LDC is the  Integrate and coordinate all plans and studies undertaken by the
corresponding provincial/ local government unit's various functional groups or agencies.
municipal/city planning and  Monitor and evaluate the implementation of the different
development office development programs, projects and activities in the local
(RA 7160 or the Local government unit concerned in accordance with the approved
Government Code of 1991) development plan.
Provincial Local Chief Adopt adequate measures to safeguard and conserve land, mineral,
Executive marine, forest and other resources of the province, in coordination
(RA 7160) with the mayors of component cities and municipalities.
Municipal/City Local Chief  Adopt adequate measures to safeguard and conserve land,
Executive (LCE) mineral, marine, forest, and other resources of the municipality.
(RA 7160)  Exclusive authority to grant fishery privileges in the municipal
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Institutions/ Structures Tasks related to HARVEST
waters and impose rentals, fees or charges; and issue licenses for
the operation of fishing vessels of three (3) tons or less based on
the rules and regulations promulgated by the sangguniang bayan.
Sangguniang bayan/ Issue ordinances for the protection of the environment and imposition
panlunsod/panlalawigan of appropriate penalties for acts which endanger the environment,
such as dynamite fishing and other forms of destructive fishing, illegal
logging and smuggling of logs, smuggling of natural resources
(RA 7160) products and of endangered species of flora and fauna, slash and
burn farming, and such other activities which result in pollution,
acceleration of eutrophication of rivers and lakes, or of ecological
imbalance.
Department of Environment Performs the services related to: (i) Land management (including
and Natural Resources handling of conflicts concerning public lands after failed mediation
attempts by the Lupong Tagapamayapa); (ii) Biodiversity
management; (iii) Ecosystems research and development; (iv)
Environmental management; (v) Forest management; and (vi)Mines
and geo-sciences.
National Housing Authority In coordination with local government units, provide: (i) resettlement;
(RA 7279 or the Urban (ii) emergency housing assistance for calamity victims; (iii)
Development and Housing settlements upgrading; (iv) sites and services development; (v) core
Act) housing; and (vi) other housing assistance for informal settlers‟
communities (ISFs) residing along danger areas.
Office of Southern Cultural  Formulate, coordinate, implement, and monitor policies, plans,
Communities (OSCC) for programs and projects affecting the southern cultural communities
ARMM provinces, except within ARMM.
Basilan  Coordinate the enforcement of policies and laws protecting the
rights of the southern cultural communities to their ancestral lands,
(Executive Order 462, 1991) including the applications of customary laws governing property
rights and relations, in determining the ownership and extent of
ancestral lands, subject to procedures and standards established
by the legislature or any other duly constituted authority.
 Provide legal and technical services for the survey, adjudication,
titling and development of tribal ancestral lands as well as
settlements proclaimed by the government for the southern cultural
communities within the ARMM.
National Commission on  Formulate and implement policies, plans and programs to
Indigenous People (NCIP) for recognize, protect and promote the rights of ICCs/ IPs.
Basilan  Delineate ancestral domain and disposition of Certificate of
(RA 8271 or the Indigenous Ancestral Domain Titles (CADTs).
People‟s Rights Act
Department of Agriculture and  Provide capacity development for farmers in climate-smart
Bureau of Fisheries and agriculture through field schools
Aquatic Resources (BFAR)  Provide tools, information and training related to integrated pest
management
 Formulate and implement a Fishery Research and Development
DA AO1, s 2006 Program, such as, but not limited to, sea farming ranching,
tropical/ornamental fish and seaweed culture, aimed at increasing
resources productivity and ensuring sustainability of the region‟s
fisheries and aquatic resources.
 Coordinate with LGUs and other concerned agencies for the
establishment of productivity enhancing and market development
programs in fishing communities.
 Enforce all fishery laws, rules and regulations and settle conflicts or
resource use and allocation in coordination with the LGU,
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Institutions/ Structures Tasks related to HARVEST
RFARMC, IFARMC and M/CFARMC.
 Assist the LGUs in developing their technical capability in the
development, management, conservation, and protection of the
fishery/aquatic resources.
 Issue license for the operation of commercial fishing vessels and
authorize the movement of trade of fishery/aquatic products and
collect fees prescribed by the law and regulations.
 Perform such other related functions which shall promote the
development, management, protection and conservation of
fisheries and aquatic resources.
Municipal Fisheries and  Assist in the preparation of the Municipal Fishery Development Plan
Aquatic Resource and submit such plan to the Municipal Development Council; (ii)
Management Council recommend the enactment of municipal fishery ordinances to the
(RA 8550 or the Philippine sangguniang bayan/sangguniang panlungsod through its
Fisheries Code) Committee on Fisheries; (iii) assist in the enforcement of fishery
laws, rules and regulations in municipal waters; (iv) advise the
sangguniang bayan/panlungsod on fishery matters through its
Committee on Fisheries, if such has been organized.
Department of Agrarian  Issue Certificates of Land Ownership Awards (CLOAs) to qualified
Reform farmers for lands covered by the land acquisition and distribution
Related structures are: component of the agrarian reform program and leasehold contracts
 Provincial Agrarian Reform to farmers in areas not covered by agrarian reform.
Committee (PARCOM)  Provide support services to agrarian reform beneficiaries in
 Provincial Agrarian Reform coordination with other government agencies.
Adjudicator (PARAD)  Mediate/adjudicate conflicts between tenants and landowners, and
 Barangay Agrarian Reform between and among agrarian reform beneficiaries.
Committee (BARC)
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II. ENVIRONMENTAL AND SOCIAL ASSESSMENT (ESA)

1. ESA objectives

1.1 This Environmental and Social Assessment of the Harnessing Agribusiness


Opportunities through Robust and Vibrant Entrepreneurship Supportive of Peaceful
Transformation (HARVEST) aims at assessing the risks, issues and potential impacts
(both positive and negative) of the envisaged financing facility and offering
recommendations to avoid and mitigate adverse impacts particularly on the poor and
most vulnerable sectors and to enhance inclusion and ownership of the proposed
development interventions. The assessment provides an opportunity to identify
potential environmental and social issues at an early stage allowing appropriate design
of safeguards instruments to be made. The results shall be used as inputs to the
proposed environmental and social management framework and safeguards
instruments. The framework ensures that identified environmental and social issues and
risks are considered in the individual projects to be funded by the facility.

1.2 The social component of the assessment specifically looks into the risks and potential
impacts of the proposed project especially in the areas of involuntary resettlement and
indigenouspeoples. The environmental component, on the other hand, seeks to identify
the risks, issues and potential impacts particularly related to key environmental aspects
of agribusiness operations such as pest management, waste and pollution control,
forest and habitats, marine and coastal ecosystems, etc.

2. ESA methods and scope of work

2.1 This ESA report is a consolidation of the results of the HARVEST safeguards scoping
mission held in August 2014 and ESA field data gathering held in January 2015. In both
field visits, qualitative research method with a mixture of four data collection methods
was employed Specifically, the following activities were undertaken:

2.1.1 Review of literature and secondary data to: (i) provide a description of the typologies,
drivers and impact of conflict and the affected communities in the Bangsamoro areas;
(ii) inventory current agribusiness enterprises and large ventures in ARMM; (iii) review
land-related issues with specific focus on land tenure arrangements, ancestral domain
claims, and land reform status in the Bangsamoro area; and (iv) characterize the
biophysical profile of the region;

2.1.2 Key informant interviews with officials of government line agencies in ARMM (i.e.,
Department of Agrarian Reform, Department of Environment and Natural Resources,
Department of Trade and Industry, Cooperative Development Authority, Department of
Agriculture and Fisheries, Regional Commission on the Bangsamoro Women, Office of
Southern Cultural Communities, and National Commission on Indigenous People);

2.1.3 Focus group discussions (FGDs) with: (i) indigenous people, farmers‟ cooperatives and
associations, academe, non-governmental organizations and local government officials
in the mainland and island provinces; and (ii) Mindanao Coalition of Development NGO
Networks (MINCODE), MASS-SPECC, and Federation of Co-operatives in Mindanao;

2.1.4 Field visit to three agribusiness companies during the safeguard scoping mission, i.e.,
La Frutera, Inc. and Agumil, Inc. in Buluan, Maguindanao; and Matling Corp. in
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Malabang, Lanao del Sur, Unifrutti Corp. in Bukidnon; and interviews with former and
current contract growers of Dole South Cotabato, Stanfilco in General Santos City and
Pioneer Hi-Bred Phils. The visited agribusiness companies represent medium and
large-scale enterprises working under various tenurial arrangements (nucleus
plantation, contract-growing, cooperatives-managed, etc.) across the ARMM provinces.
Interviews with their senior managers and key personnel were undertaken during the
visits to gain insights on the unique challenges (e.g. land, security, support facilities and
infrastructures, availability of skilled personnel, local, regional and national government
regulatory practices, etc.) that they face in working in conflict areas pertinent to the
location where their firm is situated and how they were able to successfully address
these challenges. A review of the firms‟ environmental and social management
practices was also an important agenda of the field visit.

2.1.5 Visit to Permex Producer and Exporter Corporation in Zamboanga City, a producer and
exporter of canned sardines and tuna products, and with workers coming from the
island provinces among others. No company was visited in the island provinces due to
security concern; and

2.1.6 A review of the safeguards policies, procedures, practices and capacity of the Land
Bank of the Philippines.
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III. ENVIRONMENTAL AND SOCIAL CONTEXT OF HARVEST: BASELINE


SETTING

1. Geographic or Physical Context

1.1 The proposed Bangsamoro region is located in the southwestern part of the Philippines
with the proposed core territory composed of the following:

 Autonomous Region in Muslim Mindanao (ARMM) consisting of five provinces and


one city;
 The municipalities of Baloi, Munai, Nunungan, Pantar, Tagoloan, and Tangkal in the
province of Lanao del Norte;
 The thirty nine (39) barangays in the municipalities of Kabacan, Carmen, Aleosan,
Pigkawayan, Pikit, and Midsayap in the province of North Cotabato who voted for
inclusion in the ARMM in 2001 plebiscite;
 The cities of Lamitan and Isabela in the province of Basilan; and
 Other contiguous areas that may opt to be included in the Bangsamoro region.

A map of the proposed Bangsomoro Territory is provided in Figure I-2.

1.2 The region can be grouped into the mainland and the island provinces. The mainland
provinces are located in the central parts of Mindanao and consist of the provinces of
Maguindanao, Lanao del Sur, portions of Lanao del Norte and North Cotabato and the
City of Marawi. The island provinces on the other hand are composed of the provinces
of Sulu, Tawi-Tawi and Basilan including the cities of Lamitan and Isabela that extend
between the southwestern tip of the Zamboanga peninsula to north of Borneo3.

1.3 The total land area of the region is estimated to be 1,488,353 hectares with
Maguindanao and Lanao del Sur having the biggest land areas. ARMM constitutes the
largest area of the Bangsamoro at 87% of the total area of the region. Each of the
island provinces has a land area of over 100,000 hectares. There are four urban areas
in the Bangsamoro region consisting of the cities of Marawi in Lanao del Sur, Lamitan
and Isabela in Basilan, and Cotabato City in Maguindanao. The population of these
urban areas account for 18% of the Bangsamoro region with an average density of
1,070 per square kilometer5.

Table III-1. Land area of the proposed region disaggregated by province


Basilan 132,723
Lanao del Sur 387,289
Maguindanao 504,760
Sulu 160,040
Tawi-Tawi 108,740
Total ARMM 1,293,552
6 municipalities of Lanao del 108,048
Norte
39 barangays in North 45,780*
Cotabato
Cities of Lamitan and Isabela 40,973
*estimated using proportion of barangays to the total

3
Environmental and Social Safeguards Scoping Report for the Bangsomoro Fund Facility, draft 2014. Prepared by
joint World Bank-JICA Environmental and Social Safeguards Scoping Team.
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1.4 The topography of the mainland provinces varies (Figure III-1). Lanao del Sur has 40%
plain and 60% sloping areas with the Bukidnon-Lanao highland area, highland basins,
undulating hills and volcanoes. Lanao del Sur has many water bodies; the biggest rivers
are: Masiu River, Taraka River, Rugnan River, Ramain River and Lalabuan River.
Maguindanao has 45% plain and 55% sloping areas with mountains in the southwest.
The southwest mountain cluster consists of the Binica and Blit Mountains. The biggest
and longest river is the Rio Grande de Mindanao and flows through Liguasan Marsh
before it flows into the Moro Gulf. The river meanders and during the rainy season
develops an extensive delta. Several smaller streams and creeks are perennial, while
the rest are seasonal4.

Mainland Provinces Island Provinces

Source: http://www.rms-gs.de/phileng/mape.html
Figure III-1. Topography in the Proposed Bangsamoro Area

1.5 The island provinces have a mixture of sloping and plain areas. Basilan is an island
with several islets bounded by the Basilan Strait in the north (about 27 km to the
Mindanao mainland at its narrowest point), Moro Gulf in the east and Sulu Sea in the
west. The topography varies from 42% plain (nearly level and undulating to rolling) to
58% rolling. The Sulu archipelago has more plain areas than Basilan: 65% plain (nearly
level to undulating to rolling) and 35% rolling. A number of mountain ranges traverse
the mid-section of Jolo Island from east to west. Other islands are also hilly (Siasi
Island), while others are coral formation with low, swampy, flat and forested areas.
Many islands are volcanic in origin4.

2. The Natural Environment Context

2.1 Geology

2.1.1 Mindanao, the largest island in the southern Philippine archipelago, is a composite of at
least two terranes; one with Eurasian affinity (western Mindanao) and the other
belonging to the Philippine Mobile Belt (eastern Mindanao), of Philippine Sea plate
affinity. The island is surrounded by three subduction zones that have been installed
only in the past 4 million years. Prior to this, the two terranes were separated by an

4
Regional Physical Framework Plan: 2000-2030. Regional Economic and Development Planning Board. ARMM.
2005.
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ocean that disappeared continuously by subduction of its two edges beneath western
and eastern Mindanao. The suturing of the two terrains occurred at ca. 5 Million years.
Following this major structural reorganization, abrupt changes are recorded in the old
magmatism of the island.5 The geological map of the Philippines indicates Quaternary
sediments and Tertiary sediments and volcanic formations in the region.

2.1.2 Ancient magmatic arcs in the Mobile Belt are characterized by thick volcanic flows with
pyroclastic and sedimentary rocks and intrusions. The sedimentary Cotabato basin is
located between arcs6. Several active and inactive volcanoes are found within or close
to the Bangsamoro area. Data from the Department of Science and Technology
(DOST) identified some of the active volcanoes as Mount Makaturing and Mount
Ragang in Lanao del Sur and Mount Bud Dajo in Jolo (Figure III-2). There are also
several volcanic formations classified as potentially active (morphologically young
volcanoes but with no historical record of eruption) and inactive volcanoes within the
proposed Bangsamoro region.

Source: http://www.maps.nfo.ph/philippines-distribution-of-volcanoes/distribution-of-volvanos-2008/ (Red markers


showing volcanoes classified as active, yellow as potentially active, and green as inactive volvanoes)
Figure III-2. Volcanoes in the Philippines

2.1.3 Many active faults are present in the Philippines, including the Bangsamoro area (Figure
III-3). The Mindanao fault line traverses the region with northwest-southeast orientation.
Two major fault zones are also present in the region – the Sulu Trench and the Cotabato
Trench considered to have moderate to high seismicity based on the historical catalog of
earthquakes by the Philippine Institute of Volcanology and Seismology ((PHILVOLCS).
The recent earthquake in 2002 in Southern Mindanao is considered to have originated
from the Cotabato Trench. There are also some areas in the Bangsamoro region that are
susceptible to earthquake triggered landslide.

5
Sajona et al. 1994. Tectonophysics 237:47-72.
http://www.sciencedirect.com/science/article/pii/0040195194901589
6
http://kalibo.tukcedo.nl/geol_minerals.pdf
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Source: http://www.maps.nfo.ph/active-faults-and-liquefaction-susceptibility-map/
Figure III-3. Active Faults and Trenches in the Philippines

2.2 Soils and minerals

2.2.1 The soil types present in the Bangsamoro area are presented in Table III-2.

Table III-2. Soil Types in ARMM


Province Soil Location
Basilan Alfisols, Inceptisols, Utisols
Magindanao Mountain soil, hydrosol, faraun soil, timaga Sandy and clay loam in southeastern and
clay loam, parang clay loam, longkon western municipalities.
sandy, banga sandy loam, silty clay loam Silty clay, sandy and clay loam in
northeastern and western municipalities
Lanao del Mountain soil, adtuyan clay loam, sinidayan Clay loam in Ramain, Bubong, Buadi Puso,
Sur silt loam, sandy, La Cartellana complex Mulondo, Taraka, Tamparan, Poona
Bayabao, Lumba Bayabo, Maguing.
Adtuyan clay loam in Marawi City,
municipalities of Saguiaran, Piagapo,
Tugaya, Wao, Balindong, Bacolod Grande
Sulu Alfisols, Inceptisols, Utisols
Tawi-Tawi Alfisols, Inceptisols, Utisols Bongoa igneous rock of volcanic origin;
smaller islands limestone
Source: Regional Physical Framework Plan: 2000-2030. Regional Economic and Development Planning Board.
ARMM. 2005.

2.2.2 The definition of the Philippine soil orders is based on FAO and associated USDA
(United States Department of Agriculture) classification. The soils are then grouped
according to functional criteria:
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 Soils good for agriculture:


o Cambisols and Luvisols
o Fluvisols, Gleysols and Vertisols

 Soils problematic for agriculture, which means that they require careful
management and adaptation practices:
o Acrisols and Arenosols
o Andosols and Nitosols

2.2.3 ARMM has many natural resources, including clay for making bricks, pottery and
ceramics, limestone for brassware making and other mineral potential resources (Error!
eference source not found. III-3).

Table III-3. Reported Mineral Deposits in ARMM


Province Location Metallic Non-Metallic
Maguindanao Buluan Copper, Manganese, Gold, Silver, Iron -
Ampatuan Iron, Copper Silver, Lead Sand & Gravel
Dinaig Gold, Silver Guano, Clay
Parang Gold, Copper, Silver, Nickel
Upi Gold, Iron, Copper, Zinc Limestone
Sultan Kudarat Sand, Gravel, Limestone
Datu Paglas Sand & Gravel
Sulu Jolo Sand & Gravel
Patikul Sand & Gravel
Tawi-Tawi Maraning Copper, Chromite
Languyan Copper, Chromite
Source: Regional Physical Framework Plan: 2000-2030. Regional Economic and Development Planning Board.
ARMM. 2005.

2.2.4 The generalised soil order map using the FAO classification is shown in Figure III-4. In
ARMM, soils may be problematic for agriculture based on elevation/slope, low moisture
or low growing degree days. The classification of suitability for agriculture is presented
in Table III-4 and Figure III-5.

2.2.5 Earthquakes have the potential to cause soil liquefaction in areas which were known to
have high potential to liquefaction - former river channels, abandoned meanders,
wetlands, and ponds. These areas are characterized by the presence of loose
saturated sandy deposits, which are susceptible to liquefaction. Liquefaction can cause
extensive damage to residential houses and other infrastructures through lateral
spreading, ground subsidence, and differential settlements. The areas susceptible to
liquefaction are presented in Source:DOST/PHIVOLCS Liquuefaction Susceptability
Map of the Philippines, http://www.maps.nfo.ph/wp-
content/uploads/2011/02/Liquefaction-Susceptibility-Map-of-the-Philippines.gif
2.2.6 Figure III-6. Data from the DOST‟s PHIVOLCS suggest that a few small localized areas
in ARMM particularly in some portions of Maguindanao, North Cotabato, and Sultan
Kudarat may be susceptible to liquefaction.

Table III-4. Suitability of Soils for Agriculture in ARMM


Province Suitable for Very Suitable for Careful Very Careful
Agriculture Agriculture Management Management
Basilan 0 0 1,040.0366 0
Lanao del 519.7599 0 3,295.7625 38.5367
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Sur
Maguindanao 3,048.959 0 1,038.1437 544.1955
Sulu 126.752 0 586.274 0
Tawi-Tawi 0 0 406.6048 24.3105

Source: http://hdn.org.ph/wp-content/uploads/DP_14_MO.pdf
Figure III-4. Soils Order
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Source: http://hdn.org.ph/wp-content/uploads/DP_14_MO.pdf
Figure III-5. Suitability of Soils for Agriculture

Source:DOST/PHIVOLCS Liquuefaction Susceptability Map of the Philippines, http://www.maps.nfo.ph/wp-


content/uploads/2011/02/Liquefaction-Susceptibility-Map-of-the-Philippines.gif
Figure III-6. Liquefaction Susceptibility Map

2.3 Climate

2.3.1 The ARMM area is generally characterized by moderate and even distribution of rainfall
throughout the year, although there is a dry and wet season. Typhoons generally do not
occur in the region. The Bangsamoro area falls within Climate Type II and IV of the
Modified Coronas Climate Classification System (

2.3.2 Table III-5). The characteristics of the two Climate Types are:

2.3.2.1 Type III. Seasons are not very pronounced: relatively dry from November to April and
wet during the rest of the year. Regions of this type are western parts of Cagayan,
Isabela, and Nueva Viscaya; eastern parts of Mountain Province, southern Luzon,
Masbate, Romblon, Panay, eastern Negros, central and southern Cebu; part of
northern Mindanao; and most of eastern Palawan.

2.3.2.2 Type IV. Rainfall more or less evenly distributed throughout the year. Affects Batanes
province, northeastern Luzon, southwestern part of Camarines Norte, western parts of
Camarines Sur and Albay, Bondoc Peninsula, eastern Mindoro, Marinduque, western
Leyte, northern Cebu, Bohol, and most of central, eastern, and southern Mindanao.

Table III-5. Climate in the Bangsamoro Area


Province Climate Average Remarks Annual Rain
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Type Temp
Basilan III >70 mm avg monthly,
Prevalent wind SE 3-4 knots
Lanao del IV 21 Dry season Jan-Mar; Max 115 mm avg monthly
Sur rain May-Oct
Maguindanao IV 25.9-26.5 Hottest March-June; >230 mm avg monthly
Coldest months Nov-Jan
Sulu III 18-30 Coldest month Feb >70 mm avg monthly,
Prevalent wind SE 3-4 knots
Tawi-Tawi III 23-24 Max rainfall May-Aug >70 mm avg monthly,
Prevalent wind SE 3-4 knots
Marawi City IV/III
Source: Regional Physical Framework Plan: 2000-2030. Regional Economic and Development Planning Board.
ARMM. 2005.

2.3.2.3 The projected seasonal changes in the climate of the region by PAGASA for 2020 and
2050 under medium-range emission scenario indicate that the ARMM region will have
an average increase of 1.1 ºC in surface temperature in 2020 and further 2.1 ºC by
2050. In terms of precipitation, the region will receive more rainfall in the months of
December to February and relatively drier in most parts of the year. Compared to other
eastern regions in Mindanao, the ARMM is expected to experience fewer extreme
events particularly number of days with precipitation over 300 mm. Other extreme
events such as number of dry days and temperature over 35 ºC reflect the average
changes in the Mindanao island.

2.4 Air Quality

2.4.1 There are no national air quality monitoring stations established in the ARMM region
based on the 2010 National Air Quality Status report.7 The ambient air quality
conditions of the region therefore can not be ascertained however it is expected that the
concentration of air pollutants would be mostly in urban or urbanizing centers. With the
expected increase in the level of agribusiness activities such as plantations and
processing plants, emissions are likely to increase as well particularly from emission
stacks, vehicles, open area waste burning, and even forest fires. There were also
indications of poor indoor air quality conditions in rural areas including the Bangsamoro
region. Use of fuel wood for cooking is indicated as a potential environmental health risk
in the region.

2.5 Water

2.5.1 An important geographic feature of the Bangsamoro region is the river basins that
encompass the area. River basins are composed of watersheds that collect and provide
water to streams and rivers eventually draining to receiving bodies like lakes, marshes
or the sea. The mainland provinces of the Bangsamoro region are located mostly within
the Mindanao River Basin with some portions in the Agus River Basin, two of the major
rivers basins in the country that cover four regions in Central and Southern Mindanao

7
The 2010-2011 National Air Quality Status Report is prepared and published by the Department of Environment
and Natural Resources Environmental Management Bureau (EMB). The monitoring stations nearest to
ARMM/Bangsamoro area is in Isulan, Sultan Kudarat and Cotabato City. The report can be accessed at
http://emb.gov.ph/portal/air/Home.aspx
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including the Bangsamoro region. The river basins are the catchment areas of several
river systems in region that include the Ambal-Simuay River System originating from
Lanao del Sur and the Buluan-Malungon River, originating from the far southeastern
portion of Mindanao. Figure III-7 shows the water resources within the Mindanao River
basin where most of the proposed Bangsamoro region is located.

Source: Woodfields Consultants, Mindanao River Basin Master Plan


Figure III-7. Water Resources Map

2.5.2 The River baisn master Plan for the Mindanao River Basin indicated the characteristics
of the available permeable layers or water-bearing formations in the region. These
include the moderately thick cyclic layers of sand, silt and minor gravel deposits. The
primary aquifer system of the tuffaceous rock units may indicate lesser degree of
permeability due to clay and silt interbeds in the entire sequence. The degree of
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permeability to transmit water into pumping may be limited due to the tight
conglomeration of the clastics. There have been investigations on the alluvium in the
southern section of the basin with reported thickness of more than 100 meters. In
coastal areas, saline intrusion was observed and therefore needing careful abstraction
of groundwater. The potential groundwater availability in the river basin was estimated
at 4,956 MCM/year representing about two-third of the groundwater potential of
Mindanao or around a third of the country. Groundwater in the region has varying
degree of availability across the mainland areas of the proposed Bangsamoro region.
Except for few areas, for the most part of the region, groundwater extraction is at
varying depths. The region‟s groundwater resources in Mindanao are shown in Figure
III-8.

Source: Woodfields Consultants, Mindanao River Basin Master Plan


Figure III-8. Groundwater Availability Map of Mindanao River Basin including the proposed
Bangsamoro Region
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2.5.3 The mainland provinces of the Bangsamoro region are located mostly within the Mindanao
River Basin and the Agus River Basin, two of the major rivers basins in Central and
Southern Mindanao. The river basins are composed of watersheds that serves as the
catchment areas of several river systems in region that include the Ambal-Simuay River
System originating from Lanao del Sur and the Buluan-Malungon River, originating from
the far southeastern portion of Mindanao (Figure III-9 and Table III-6).

Source: http://mpmc.minda.gov.ph:32906/SitePages/KP_Maps_Watershed.aspx
Figure III-9. Watersheds in ARMM Mainland Provinces

Table III-6. Watershed Areas in ARMM


Watershed Area Area Location Potential/Use
(ha)
Lake Lanao Watershed 180,000 Marawi City & Lanao del Source of power generation of Maria
Sur Christina Hydroelectric Plants
Maganoy-Kabulnan 4,726 Maganoy, Mag. Source of irrigation system for KIDP
Watershed
South Upi Watershed 1,894 Upu, Mag.
Forest Reserve
Malitubog-Maridagao 57,000 Maguidanao&Region XII Irrigation for Pagalungan & Pagagawan
Watershed
Dimapatuy Watershed 3,765 D.O.S. Maguindanao Source of water system for
Maguindanao & Region XII
Source: Regional Physical Framework Plan: 2000-2030. Regional Economic and Development Planning Board.
ARMM. 2005.

2.5.4 Watershed forest reserves are designated to rehabilitate watersheds in the country as they
are the major sources of water for domestic use and for irrigation. As of 2009, there are
134 proclaimed watershed forest reserves covering an area of 1.56 million ha. The two
largest are in ARMM:

 Lake Lanao Watershed Reservation covering 180,460 ha in Marawi City, Lanao del Sur.
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 Kabulnan River Watershed Forest Reserve covering 116,452 ha spanning the provinces
of Sultan Kudarat, Maguindanao and South Cotabato8.

2.5.5 Some of the watersheds have been proclaimed as protected areas: the Lake Lanao
Watershed Reservation with a total area of 180,460 hectares and the South Upi
Watershed Forest Reserve with 1,894 hectares (Table III-7). There are also other
proclaimed watershed reservations that are not included in the protected areas system
such as the Kabulnan Watershed and the Dimapatoy Watershed in Maguidanao.
Table III-7. Watershed Forest Reserve in ARMM (2013)
Province Name of Reservation Area (ha) Proclamation Date
Lanao del Sur Lake Lanao Watershed Reservation 180,460 2/26/1992
Maguindanao South Upi Watershed Forest Reserve 1,894 2/20/1987
Source: http://forestry.denr.gov.ph/PFS2013.pdf

2.5.6 Even though there are abundant water sources in Mindanao, the percentage of population
with access to water served is low, particularly in the ARMM region (Table III-III-8). The
population, especially in ARMM, is heavily dependent on other water supply sources, such
as: informal water providers; Level I or II water systems, hand pumps, community artesian
wells; natural sources, springs, streams or harvested rain9.
Table III-8. Percentage of Population with Access to Water Served
Region Total (% served)
IX 35.05
X 36.14
XI 39.18
XII 20.3
ARMM 9.9
Nationwide Total 42.9
Source: http://hdn.org.ph/wp-content/uploads/DP_10_Naz.pdf

2.5.7 Water quality monitoring for nutrients, heavy metals and pesticide residues was done in
the course of preparing the Mindanao River Basin Master Plan in 2013. The results of the
tests for nutrients and heavy metals showed that the water samples met the DENR
standards while pesticide residues were not detected. Survey of literature also did not
yield any reported notable incident of pollution events in bodies of water in the
Bangsamoro region – whether eutrophication or consequent fish kill events.10

2.5.8 Another characteristic feature of the Bangsamoro region and associated with the
Mindanao River Basin is the extensive wetlands such as marshes, swamps, lakes, and
riparian areas.

2.6 Biodiversity

8
http://hdn.org.ph/wp-content/uploads/DP_10_Naz.pdf
9
http://hdn.org.ph/wp-content/uploads/DP_10_Naz.pdf
10
Environmental and Social Safeguards Scoping Report for the Bangsomoro Fund Facility, draft 2014. Prepared by
joint World Bank-JICA Environmental and Social Safeguards Scoping Team.
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2.6.1 The Philippines is one of 18 megadiverse countries in the world, containing 2/3 of the
earth‟s biodiversity and about 70-80% of the world‟s plant and animal species11. According
to ECOGOV 2, the Philippines has more than 52,170 species, with about half endemic to
the Philippines12.

2.6.2 The Philippines is also located within the coral triangle, at the center of the highest marine
diversity including coral reefs, seagrass beds, mangrove and beach forests, fisheries,
invertebrates, seaweeds, marine mammals and many others. Marine and coastal species
diversity include 468 scleractinian corals, 1,755 reef-associates fishes, 648 species of
mollusks, 19 species of seagrass, and 820 species of algae11. The biodiversity status in
the Bangsamoro region is considered similar to the rest of the country13.

A two stage process was implemented to determine Key Biodiversity Areas in the
Philippines. From this process, 128 terrestrial and freshwater KBAs were identified in 2006 and
123 marine KBAs were identified in 2009. A total of 228 KBAs resulted from the integration of
the terrestrial, freshwater and marine KBAs. These KBAs represent the known habitat of 855
globally important species of plants, corals, mollusks, elasmobranchs, fishes, amphibians,
reptiles, birds and mammals in the country14. The location of the KBAs is depicted in Figure III-
10.Error! Reference source not found.Source:
ttp://threatenedtaxa.org/ZooPrintJournal/2012/August/o299506viii122788-2796.pdf
Figure III-10. Key Biodiversity Areas

2.6.3 These 128 terrestrial KBAs have been identified for 209 globally threatened and 419
endemic species of freshwater fishes, amphibians, reptiles, birds and mammals, and 62
congregatory bird species.

2.6.4 Ten of the total 128 identified biodiversity rich areas known as Key Biodiversity Areas
(KBAs) are found in the Bangsamoro region and mostly classified as protected areas or
watershed reservations (
2.6.5 Table III-I9).15 In the Bangsamoro region, forty-four species are identified as threatened
including the Philippine eagle, Sulu hornbill, and hawksbill turtle. Threats to these species
include land cover change, exploitation, and habitat destruction.

Table III-I9. KBA and Candidate KBAs in ARMM


No. Name of KBA* Province Area CR En Vu RR Conservation Threats
(ha) Measure*
108 Munai/Tambo Lanao del 69,836 1 1 4 1 IBA (PH096), CPA Land conversion to
Norte/Lanao del 132 agriculture
Sur
109 Lake Lanao Lanao del Sur 36,351 14 1 7 9 IBA (PH097), CPA Illegal logging, exotic
133 fish, overfishing,
pollution (domestic,
fertilizer)
110 Mt. Lanao del Sur, 154,340 1 2 7 IBA (PH098&99), Illegal logging, small
Piagayungan North Cotabato. CPA 135&136 scale mining, forest
Maguindanao conversion to agriculture

11
Fourth National Report to the Convention on Biological Diversity. Republic of the Philippines. 2009.
www.cbd.int/doc/world/ph/ph-nr-04-en.pdf
12
http://pdf.usaid.gov/pdf_docs/PNADL681.pdf
13
Environmental and Social Safeguards Scoping Report for the Bangsomoro Fund Facility, draft 2014
14
http://threatenedtaxa.org/ZooPrintJournal/2012/August/o299506viii122788-2796.pdf
15
Undated. Priority Sites for Conservation in the Philippines: Key Biodiversity Areas. Conservation International
Philippines, Haribon Foundation, DENR accessed at
http://www.conservation.org/global/philippines/publications/Documents/KBA_Booklet.pdf on 14 August 2014
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No. Name of KBA* Province Area CR En Vu RR Conservation Threats
(ha) Measure*
113 Ligawasan North Cotabato, 39,424 2 1 3 IBA (PH0102), CPA Illegal logging, land
Marsh Maguindanao, 144 conversion
Sultan Kudarat
114 Mt. Daguma Maguindanao, 32,360 1 1 5 IBA (PH0103), CPA Logging, human
Sultan Kudarat 145 encroachment, land
conversion, wildlife
hunting
124 Basilan Natural Basilan 4,497 1 3 18 77 IBA (PH0113), CPA Illegal logging, land
Biotic Area 159, Basilan conversion, human
Natural Biotic Area encroachment, collecting
(Proc #321) non-timber forest
products, wildlife hunting
125 Mt. Dajo Sulu 3,304 3 3 12 IBA (PH0114), CPA
National Park 163&164
126 Tawi-Tawi Tawi-Tawi 5,851 4 2 6 33 IBA (PH0115), CPA Illegal logging, land
Island 165, AZE* conversion, wildlife
hunting
127 Simunul and Tawi-Tawi 19,402 2 1 6 IBA (PH0116), CPA
Manuk 166
Manukan
Islands
128 Sibutu and Tawi-Tawi 116,763 1 2 4 16 IBA (PH0117), CPA
Tumindao 167
Islands
Candidate
KBAs
C47 Pulangi River Bukidnon, 131,002 Overlaps with CPA
Maguindanao, 137
North Cotabato
C49 Olangui River Lanao del Norte, 4,674 Overlaps with CPA
Lanao del Sur 131
C51 Cagayan de Tawi-Tawi 7,550 Overlaps with CPA
Sulu 170
*KBA Key Biodiversity Area; IBA Important Bird Area; CPA Conservation Priority Area; AZE Alliance for Zero
Extinction; CR Critically Endangered; En Endangered; Vu Vulnerable; RR Restricted Range
Source: http://www.conservation.org/global/philippines/publications/Documents/KBA_Booklet.pdf

2.6.6 Two of these sites, Lake Lanao and Tawi-Tawi Island, are home to species only occurring
at that site (
2.6.7 Table III-II10).

Table III-II10: Threatened Species present globally at only one KBA


KBA Species IUCN Red List Category
Lake Lanao Cephalakompsus pachycheilus CR
Mandibularca resinus CR
Ospatulus truncatulus CR
Puntius amarus CR
Puntius baoulan CR
Puntius clemensi CR
Puntius disa CR
Puntius flavifuscus CR
Puntius herrei CR
Puntius katolo CR
Puntius lanaoensis CR
Puntius manalak CR
Puntius tras CR
Spratellicypris palata CR
Ospatulus palaemophagus EN
Puntius lindog VU
Puntius sirang VU
Puntius tumba VU
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Tawi-Tawi Island Anthracoceros montani CR
Gallicolumba menagei CR
Phapitreron cinereiceps EN
Source: http://threatenedtaxa.org/ZooPrintJournal/2012/August/o299506viii122788-2796.pdf

2.6.8 However, a proper baseline of biodiversity resources in the Bangsamoro area is not
available16.

2.7 Terrestrial Biota/Habitat

2.7.1 The ARMM area contains several Conservation Priority Areas (


2.7.2 Table III- 11).

Table III- 11. Conservation Priority Areas in ARMM


Conservation Priority Priority Level Estimated Area Province
Area (ha)
Ligawasan Marsh Extremely High 213,982.1 North Cotabato, Maguindanao, South
critical Cotabato, Sultan Kudurat
Mt Daguma Very High 115,606.44 Maguindanao, South Cotabato, Sultan
Kudurat
Basilan Extremely High 19,094.16 Basilan
urgent
Sulu Extremely High 132,181.88 Sulu, Tawi-Tawi
critical
Mt Dajo National Park Very High 19,077.60 Sulu
Tawi-Tawi Island Extremely High 86,111.06 Tawi-Tawi
critical
Manuk-manka Islands Insufficient data 5,832.71 Tawi-Tawi
Sibutu and Tumindao Very High 12,755.25 Tawi-Tawi
Islands
Cagayan de Sulu Extremely High 7,569.18 Tawi-Tawi
critical
Source: http://www.chm.ph/index.php?option=com_docman&Itemid=94

2.7.3 The ARMM area also contains two endemic bird areas (EBA): Mindanao and the nearby
Eastern Visayas (containing lowlands and the mountains of Mindanao) and the Sulu
Archipelago (
2.7.4 Table III- 12). All the restricted-range species of these two EBAs are forest birds. Although
some have been recorded from degraded or selectively logged or secondary forest, the
long-term survival of all is likely to depend on proximity to primary habitat, i.e. forest17.

Table III- 12: Restricted Range Bird Species in ARMM Endemic Bird Areas
IUCN Category* Mindanao and Eastern Visayas Sulu Archipelago
CR Sulu Bleeding-heart (Gallicolumba
menagei)
Sulu Racquet-tail (Prioniturus
verticalis)
Sulu Hornbill (Anthracoceros
montani)
EN Tawitawi Brown-dove (Phapitreron
cinereiceps)
VU Mindanao Bleeding-heart (Gallicolumba crinigera) Grey Imperial-pigeon (Ducula
Dark-eared Brown-dove (Phapitreron brunneiceps) pickeringii)

16
The Environment Chapter of the Bangsamoro Development Plan. Final Report on Coastal, Marine, and
Freshwater Biodiversity Sub-Theme.
17
http://www.birdlife.org/datazone/ebafactsheet.php?id=155
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IUCN Category* Mindanao and Eastern Visayas Sulu Archipelago
Giant Scops-owl (Otus gurneyi) Celestial Monarch (Hypothymis
Blue-capped Kingfisher (Actenoides hombroni) coelestis)
Mindanao Broadbill (Eurylaimus steerii)
Visayan Broadbill (Eurylaimus samarensis)
Azure-breasted Pitta (Pitta steerii)
Celestial Monarch (Hypothymis coelestis)
Little Slaty Flycatcher (Ficedula basilanica)
Philippine Leafbird (Chloropsis flavipennis)
NT Mindanao Lorikeet (Trichoglossus johnstoniae) Mantanani Scops-owl (Otus
Mindanao Racquet-tail (Prioniturus waterstradti) mantananensis)
Mindanao Highland Scops-owl (Otus mirus) Philippine Spinetail (Mearnsia
Philippine Spinetail (Mearnsia picina) picina)
Writhed Hornbill (Rhabdotorrhinus leucocephalus)
McGregor's Cuckooshrike (Coracina mcgregori)
Mountain Shrike (Lanius validirostris)
Short-crested Monarch (Hypothymis helenae)
White-fronted Tit (Parus semilarvatus)
Zamboanga Bulbul (Ixos rufigularis)
Yellow-breasted Tailorbird (Orthotomus samarensis)
Apo Myna (Basilornis mirandus)
Slaty-backed Jungle-flycatcher (Rhinomyias
goodfellowi)
Whiskered Flowerpecker (Dicaeum proprium)
Flame-crowned Flowerpecker (Dicaeum anthonyi)
Grey-hooded Sunbird (Aethopyga primigenia)
Apo Sunbird (Aethopyga boltoni)
Lina's Sunbird (Aethopyga linaraborae)
Red-eared Parrotfinch (Erythroughra coloria)
DD Brown-banded Rail (Lewinia mirifica)
Whitehead's Swiftlet (Aerodramus whiteheadi)
LC Black-and-cinnamon Fantail (Rhipidura Yellowish Bulbul (Ixos everetti)
nigrocinnamomea)
Yellowish Bulbul (Ixos everetti)
Rufous-headed Tailorbird (Orthotomus heterolaemus)
Black-headed Tailorbird (Orthotomus nigriceps)
White-eared Tailorbird (Orthotomus cinereiceps)
Long-tailed Bush-warbler (Bradypterus caudatus)
Bagobo Babbler (Leonardina woodi)
Striated Wren-babbler (Ptilocichla mindanensis)
Rusty-crowned Babbler (Stachyris capitalis)
Black-masked White-eye (Lophozosterops
goodfellowi)
Cinnamon Ibon (Hypocryptadius cinnamomeus)
Cryptic Flycatcher (Ficedula crypta)
Olive-capped Flowerpecker (Dicaeum nigrilore)
Mountain Serin (Serinus estherae)
White-cheeked Bullfinch (Pyrrhula leucogenis)
NR (Alcedo argentata)
(Penelopides samarensis)
(Penelopides affinis)
(Stachyris plateni)
(Micromacronus leytensis)
*CR Critically Endangered; EN Endangered; VU Vulnerable; NT Near Threatened; DD Data Deficient; LC Least
Concern; NR Not Reported
Source: http://www.birdlife.org/datazone/ebafactsheet.php?id=155

2.7.5 Forest ecosystems are critical to soil and water conservation and major ecological
services. Forest ecosystems in the Philippines directly support about 30% percent of the
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population, including some 12 to 15 million indigenous peoples. In addition, the cultures of
the indigenous people revolve around their interactions with the natural environment18.

2.7.6 The Philippine forests consist of patches of primary (old growth) and secondary growth
forests. The 2013 Report of the DENR-ARMM estimated that the forest area is over half
the total land area in ARMM, most of it classified as “established timberland” (Table III-
13)19.

2.7.7 The largest remaining forest patches in the Philippines are found in northern and southern
Luzon (especially the Sierra Madre mountain range), Palawan, Mindanao, and Eastern
Visayas. Of the total land area and the remaining forest cover, 12% are dipterocarp/
lowland rainforest and 3.5% mossy/montane/cloud forest. Only 0.4% are coastal and
mangrove forest. There are also patches of beach forests, current data for which are still
being generated. Mindanao has the largest remaining mangrove forest area in the country
(112,745 ha, Table III-14)20.

2.7.8 The DENR-ARMM has limited manpower complement to monitor the forestland such that
the ratio of forest ranger to area patrolled is 1:1,820 hectares.21 There are ten (10)
protected areas in the region with specific legal declarations and totaling approximately
184,000 hectares. The biggest of these are the Lake Lanao Watershed Reservation with a
total area of 180,460 hectares and the South Upi Watershed Forest Reserve with 1,894
hectares (Table III-7). There are also other proclaimed watershed reservations that are not
included in the protected areas system such as the Kabulnan Watershed and the
Dimapatoy Watershed in Maguidanao.

2.7.9 Threats to the forest ecosystem can be categorized into: habitat fragmentation (logging,
slash and burn farming, reforestation with exotic species), anthropogenic pressures
(population growth, housing development, agriculture expansion, grazing, wildfire,
pollution) and invasive alien species (plants, insects and pathogens) and other emerging
issues (industrial development of mining and logging, poor management), including
conflicting roles and mandates22.

Table III-13. Status of Land Classification in ARMM (2013)


Total Certified Total Unclassified Total Established Established National Fish
Area (ha) A&D Forest Forest Land Classified Forest Timberland Parks Pond
(ha) (ha) (ha) Forest Reserve (ha) GBRS/W (ha)
Land (ha) (ha) A (ha)
Basilan 132,723 85,574 47,149 5,953 41,196 18,397 18,153 2,597 2,094
Lanao del 387,289 133,135 254,154 - 254,154 11,844 240,628 1,682 -
Sur
Maguin- 504,760 306,622 198,138 3,525 194,613 12,515 152,050 30,048 -
danao
Sulu 160,040 47,687 112,353 66,284 46,069 - 44,898 213 958
Tawi- 108,740 55,383 53,357 24,864 28,493 - 28,108 - 385

18
Fourth National Report to the Convention on Biological Diversity. Republic of the Philippines. 2009.
www.cbd.int/doc/world/ph/ph-nr-04-en.pdf
19
http://forestry.denr.gov.ph/PFS2013.pdf
20
Fourth National Report to the Convention on Biological Diversity. Republic of the Philippines. 2009.
www.cbd.int/doc/world/ph/ph-nr-04-en.pdf
21
This was confirmed by DENR-ARMM FMS Director Mabaning during discussion on 19 August 2014 at the
DENR-ARMM office
22
Fourth National Report to the Convention on Biological Diversity. Republic of the Philippines. 2009.
www.cbd.int/doc/world/ph/ph-nr-04-en.pdf
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Tawi
ARMM 1,293,552 628,401 665,151 100,626 564,525 42,756 483,837 34,540 3,392
Source: http://forestry.denr.gov.ph/PFS2013.pd

Table III-14. Forest Cover in ARMM (2013)


Land Type Province Total Forest Closed Forest Open Forest Mangrove
(ha) (ha) (ha) (ha)
Forest Cover Basilan 21,320 11,442 1,003 8,875
Lanao del Sur 150,151 80,245 69,442 464
Maguindanao 52,351 8,202 43,087 1,061
Sulu 30,839 - 757 30,083
Tawi-Tawi 47,233 - 32,142 15,091
ARMM 301,894 99,889 146,431 55,574
Forest Land Basilan 12,720 5,373 524 6,823
Lanao del Sur 136,599 77,055 59,372 172
Maguindanao 44,794 6,278 38,297 219
Sulu 21,680 - 752 20,928
Tawi-Tawi 33,348 - 21,996 11,352
ARMM 249,141 88,706 120,941 39,494
Alienable and Basilan 8,600 6,069 479 2,052
Disposable Lanao del Sur 13,552 3,190 10,070 292
Land Maguindanao 7,557 1,924 4,790 842
Sulu 9,159 - 5 9,155
Tawi-Tawi 13,885 - 10,146 3,739
ARMM 52,753 11,183 25,490 16,080
Source: http://forestry.denr.gov.ph/PFS2013.pdf

2.7.10 An Integrated Forest Management Agreement is a production sharing contract wherein the
DENR grants to a qualified applicant the exclusive right to develop, manage, protect and
utilize a specified area of forestland and forest resources therein for a period of 25 years,
which may be renewed for another 25-year period, consistent with the principle of
sustainable development.23 Ten Integrated Forest Management Agreements were in effect
in ARMM in 2013 (Table III-15).

2.7.11 A Forest Land Grazing Management Agreement is a production sharing agreement to


develop, manage and utilize grazing lands.24 One Forest Land Grazing Agreement was in
effect in ARMM in 2013 (Table III-15).

Table III-15. Forest Agreements in ARMM (2013)


Agreements Province No. Area (ha)
Integrated Forest Management Agreements Lanao del Sur 6 18,157
Maguindanao 4 24,907
Forest Land Grazing Management Agreements Maguindanao 1 1,120
Source: http://forestry.denr.gov.ph/PFS2013.pdf

2.8 Freshwater Biota/Habitat

2.8.1 Inland waters in the Philippines are home to more than 316 fish species, many are
endemic (112) and threatened (76). In addition to fish, waterbirds, semi-aquatic species,
plants and a majority of amphibians depend on the inland waters25.

23
http://forestry.denr.gov.ph/reqifma.htm
24
http://forestry.denr.gov.ph/primer.htm
25
Fourth National Report to the Convention on Biological Diversity. Republic of the Philippines. 2009.
www.cbd.int/doc/world/ph/ph-nr-04-en.pdf
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2.8.2 The major inland freshwater resources in ARMM are listed in Table III-16. There has been
an extreme loss in quantity and quality of wetlands over the years. Direct causes of
wetlands loss include: habitat loss and deterioration (conversion of wetlands, diversion of
rivers); resource use and exploitation; pollution and climate change; introduction of exotic
species and disease.26 The loss of wetlands results in a loss of biodiversity. Except for
Ligawasan Marsh which was the subject of a study on an Integrated Ecosystem
Management Framework (2013), there is limited data that deals specifically with
biodiversity for the whole of Bangsamoro area.27

2.8.3 Lakes are important aquatic ecosystems in the Bangsamoro region. The largest of these
are Lake Lanao and Lake Buluan with areas of 34,000 and 6,134 hectares respectively.
These lakes are considered to be major lakes in the Philippines ranked as third and sixth
largest in the country.

Table III-16. Major Inland Water Resources in ARMM


Inland Resource Area (ha) Location
Swamp Ligawasan Marsh 68,801 Maguindanao
Butelin Marsh >1 Datu Piang, Maguindanao
Lakes Lake Lanao 34,700 Lanao del Sur
Lake Dapo 1,000 Pualas, Lanao del Sur
Lake Buluan 6,500 Buluan, Manguindanao
Lake Darapanan 9 Sultan Kudarat, Maguindanao
Lake Balut 206 Sultan Mastura, Maguindanao
Seit Lake 206 Panamao, Sulu
Major Rivers Rio Grande de Mindanao Maguindanao
Agus River Lanao del Sur
Source: The Environment Chapter of the Bangsamoro Development Plan. Final Report on Coastal, Marine, and
Freshwater Biodiversity Sub-Theme

2.8.4 Lake Lanao is one of 17 ancient lakes in the world28. The lake fauna includes many
species of fish and invertebrates which are endemic to the lake, including eighteen
species of Cyprinidae29. Other fishes occurring in the lake include species of Silurid,
Anabantid, Anguillid, Ophiocephalid, Centrarchid and Chanid, but many of these have
been introduced. Many of the native fish species are under threat by the introduction of
predatory marine species such as white goby.

2.8.5 Lake Lanao watershed does not have a good baseline data for biodiversity. However, a
survey in two barangays for the preparation of an Integrated Development Plan reported
27 species of trees, shrubs and vines and 41 medicinal plant species.28

2.8.6 Six bird species have been observed in the Lake Lanao watershed, among them: Halikyon
chloris (white collared kingfisher), Corvus enea (slender bird crow), and the Dubulens ibis
coromandus (cattle egret). The lake supports large numbers of waterfowl, particularly
Ardeidae, Anatidae and Rallidae, including over bitterns, egrets, purple heron, purple

26
DENR-PAWB. 2005. Philippines National Report on Wetlands. UNEP/GEF Project.
27
http://minda.gov.ph/resources/Publications/Mindanao_2020/m2020_full_doc_for_web.pdf
Unpublished. The Environment Chapter of the Bangsamoro Development Plan. Final Report on Coastal, Marine,
and Freshwater Biodiversity Sub-Theme.
28
http://wldb.ilec.or.jp/data/ilec/WLC13_Papers/S17/s17-14.pdf
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swanhen, Eurasian coot, Gallinago spp and smaller numbers of water cock and common
moorhen. Mammals occurring in the area include the wild pig and deer.29

2.8.7 Lake Lanao also provides hydroelectric power with combined installed capacity of 727 MW
through the Agus Power Plant Complex. The Agus Power Plant Complex consists of six
cascading power plants snaking from the mouth of Lake Lanao in Marawi City down to
Maria Cristina Falls in Iligan City30. Altogether, the Agus grid provides about 60% of the
total electricity needs of the people of Mindanao. Massive algal contamination was
reported by the Mindanao State University, ultimately attributed to indiscriminate logging,
extensive land use and farming31. Soil erosion, sewage and agricultural run-off have also
contributed greatly to the deterioration of water quality in the lake. Several endemic fish
species in the lake have already disappeared32.

2.8.8 Lake Buluan is the third largest lake in Mindanao with a total area of 6,314 ha. It is a
shallow eutrophic lake, deteriorating by erosion from deforestation in the catchment area.
Plains around the lake are used for agriculture cultivation, mainly rice but also corn. Water
in upstream rivers and creeks are diverted for irrigation of rice fields33. Lake Buluan is a
major source of livelihood to thousands of fishermen producing fish such as: Climbing
gourami (Anabas testudineus), Snakehead murrel (Channa striata), Milkfish (Chanos
chanos), Walking catfish (Clarias batrachus), Spotted barb (Puntius binotatus), Common
carp (Cyprinus carpio), Sundari bele (Glossogobius giuris), Mozambique tilapia
(Oreochromis mossambicus), and Gourami (Trichopodus pectoralis)34.

2.8.9 Ligawasan Marsh is the largest marsh with a total area of 220,000 hectares. It is a
conglomeration of three marshes: Ligawasan, Libungan and Ebpanan. It spans the
provinces of Sultan Kudarat and North Cotabato in Central Mindanao and Maguindanao in
the Autonomous Region in Muslim Mindanao (ARMM). It is home to Maguindanaon
families whose primary means of livelihood are fishing when water levels are high and
agriculture when water levels are low. Ligawasan Marsh is an important bird area and is
rich in biodiversity. About 30,000 hectares of the Marsh is a game refuge and bird
sanctuary35.

2.8.10 Ligawasan Marsh supports a rich wildlife. In an inventory of wildlife and vegetation in
1999, a total of 218 species of flora and fauna were identified. It is known to be the home
to the rare oriental darter (Anhinga melanogaster), purple swamp hen (Porphyrio
porphyrio), the threatened Philippine hawk eagle, spotted imperial pigeon, and the rufous-
lored kingfisher. It is believed to be the last home of the endangered Philippine crocodile
(Crocodylus mindorensis)36.

29
http://rcse.edu.shiga-u.ac.jp/gov-pro/plan/2010list/10/philippine_lakes/lake_lanao_brief_27102010.pdf
30
http://www.napocor.gov.ph/index.php/mindanao-gen
31
http://rcse.edu.shiga-u.ac.jp/gov-pro/plan/2010list/10/philippine_lakes/lake_lanao_brief_27102010.pdf
32
Naga. Lake Lanao: An Ancient Lake in Distress. http://wldb.ilec.or.jp/data/ilec/WLC13_Papers/S17/s17-14.pdf
33
Palma. 1994. Lake Buluan (Mindanao, Philippines) Fisheries under Stress from Multiple Uses. Indo-Pacific
Fishery Commission. Regional Symposium on Sustainable Development of Inland Fisheries under Environmental
Constraints. FAO Fisheries Report No. 512 Supplement.
34
https://ph.news.yahoo.com/maguindanao-backs-lake-buluan-dev-t-114412345.html
35
Fourth National Report to the Convention on Biological Diversity. Republic of the Philippines. 2009.
www.cbd.int/doc/world/ph/ph-nr-04-en.pdf
36
http://www.prb.org/pdf08/pheregionalprofiles_armm.pdf
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2.9 Marine Biota/Habitat

2.9.1 The Mindanao region consist of a variety of tropical ecosystems in an extremely diverse
array of biological life, including marine fisheries, coral reefs, seaweed and sea grass
beds, mangroves, sandy beaches, rocky headlands, sand dunes, wetlands, estuaries and
lagoons37.

2.9.2 Mindanao accounts for about one-third of the 36,289 kilometres of coastline of the
country38. The Bangsamoro area, excluding the territories for inclusion from the 2001
plebiscite, accounted for the highest fisheries production among all regions in 2012 with 18
per cent of the share or 0.9 million metric tons of the national fisheries production39.

2.9.3 The Bangsamoro area has 18,426,613 hectares or 8 per cent of the country‟s territorial
ocean waters amounting to approximate 220 million hectares, a shelf area of
approximately 2,811,141.07 hectares and a coastline of approximately 3,232.29 km40. The
Bangsamoro area has several Marine Conservation Areas (
2.9.4
2.9.5 Table III-17).

Table III-17. Marine Conservation Areas in ARMM


Conservation Priority Biogeographic Estimated Province
Priority Area Level Region Area (ha)
Cagayan de Tawi- Extremely Sulu Sea 1,035,136.17 Tawi-Tawi
Tawi – Turtle Islands High
Sulu Archipelago Very High Sulu/Celebes Sea 2,615,002.97 Tawi-Tawi, Sulu, Basilan,
Zamboanga del Sur
Moro Gulf Very High Celebes Sea 1,526,341.41 Zamboanga del Sur, Lano
del Norte, Lanao del Sur,
Maguindanao
Source: http://www.chm.ph/index.php?option=com_docman&Itemid=94

2.9.6 The Sulu-Sulawesi Ecoregion is known as a global center of marine biodiversity with coral
reefs, seagrass beds and mangrove forests. Its marine biodiversity includes more than
400 species of corals, over 2,000 species of fish, including the prehistoric coelacanth, 5
species of marine turtles, at least 22 species of marine mammals including endangered
marine mammals such as the dugong, whales and many dolphins, and more than 400
species of algae, 16 species of seagrass and 33 species of mangroves.41

2.9.7 The ecoregion also is an important source of food and livelihood for subsistence and
commercial fishermen, including the economically important yellow fin tuna, skip jack tuna,
and big eye tuna, as well as shrimp.40
37
Mindanao Development Authority. Mindanao 2020. http://minda.gov.ph/index.php/planning/mindanao-2020-
peace-and-development-framework#
38
Unpublished. The Environment Chapter of the Bangsamoro Development Plan. Final Report on Coastal, Marine,
and Freshwater Biodiversity Sub-Theme.
39
http://pcid.org/wp-content/uploads/2013/12/Baseline-studies-10-FINAL-Natural-Resources-Sector-Baseline-
Profile_11Oct.pdf
40
Unpublished. The Environment Chapter of the Bangsamoro Development Plan. Final Report on Coastal, Marine,
and Freshwater Biodiversity Sub-Theme.
41
www.panda.org/downloads/marine/wwfssme2.pdf
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2.9.8 Sulu-Sulawesi Sea is among the richest fishing grounds in the country. According to the
Environment Chapter of the Bangsamoro Development Plan (2012): “Mindanao accounts
for more than half of the total commercial fish catch nationwide, and seaweed production
in Mindanao contributes in making the Philippines the largest producer of aquaculture
products in Southeast Asia.”

2.9.9 According to the Environment Chapter of the Bangsamoro Development Plan (2012):
“Coastal and marine genetic stock are present in marine fisheries, coral reefs, seaweed
and sea grass beds, man-groves, sandy beaches, rocky headlands, sand dunes,
wetlands, estuaries and lagoons. The most important municipal species of fish based on
fish catches are the Round Scad (Galungong), Big-eyed Scad (Matangbaka), Frigate Tuna
(Tulingan), Yellow fin Tuna (Bariles), Indian Mackerel (Alumahan), Indian Sardines
(Tamban), Skipjack (Gulyasan), Fimbriated Sardines (Tunsoy), Eastern Little Tuna
(Bonito), and Cavalla (Talakitok). The most important commercial species of fish based on
fish catches are Roundscad (Galungong), Frigate Tuna (Tulingan), Eastern Little Tuna
(Bonito), Big-eyed Scad (Matangbaka), Indian Sardines (Tamban), Skipjack (Gulyasan),
Yellow fin Tuna (Bariles), Indian Mackerel (Alumahan), Fimbriated Sardines (Tunsoy), and
Anchovies (Dilis). The major variety of seaweed cultivates is Eucheuma cotonii sp.”

2.9.10 Threats to the marine and coastal environment are: chemical pollution and eutrophication,
fisheries operations, habitat alteration, invasion of alien species, and global climate
change. Habitat alteration and loss due to destructive resource use, development activities
and human population pressure are primary threats. Mining, logging, hazardous and solid
waste disposal, pollution, land conversion for industrial, agriculture and urban
development, coastal erosion and storm surges associated with climate change are
specific threats to marine and coastal environment42.

2.9.11 Fisheries in the Philippines are important: they supply food for the whole country and
provide livelihood for millions of people. Evidence of declining fish catch, size and species
composition around the Philippines poses a bleak picture. A combination of fewer fisheries
resources (caused by overfishing, illegal fishing and habitat destruction) and increased
demand (population growth) poses further problems to fisheries production.43

2.9.12 Coral reefs in the Philippines cover an estimated area of 27,000 sq. km. The majority (over
70%) is in poor or fair condition. Only 5% are in excellent condition. Coral Reefs in Sulu-
Sulawesi Sea are stated to be in better condition than the rest of coral reefs in the country.
The Philippine Clearing House Mechanism for Biodiversity recommends that marine
protected areas be established to avert the decline in coral cover, fish abundance, and
biomass. Only one marine protected site in the Bangsamoro territorial waters includes
hard corals – in the Sulu Sea which is seeing a stable outlook in coral reef but a
decreasing trend in fish abundance. Fish abundance in Sulawesi Sea is also seeing a
decreasing trend in fish abundance44.

2.9.13 Coral reefs in the Bangsamoro area are identified as areas to be protected. The objective
of the Ecosystem Improved for Sustainable Fisheries (ECOFISH) Project is to conserve

42
http://www.chm.ph/index.php?option=com_content&view=article&id=91&Itemid=129
43
http://www.oneocean.org/fish/the_philippine_fisheries_situation.html
44
http://www.chm.ph/index.php?option=com_content&view=article&id=92%3Acoastal-marine-and-island-
biodiversity-coral-reefs-&catid=36%3Abiodiversity-in-the-philippines&Itemid=129
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biological diversity, enhance ecosystem productivity and restore profitability of fisheries in
select marine key biodiversity areas using ecosystem-based approaches to fisheries
management.45

2.9.14 The Philippines is ranked the second highest seagrass diversity in the world with 19
species or about 55 per cent of the number of species in East Asia46. Seagrasses are
among the least studied tropical coastal ecosystems. Observations are therefore the result
of unsystematic studies and incidental collections47.

2.9.15 Threats to seagrass communities include siltation or sedimentation, pollution,


eutrophication, nutrient loading, dredging, unsustainable fishing practices, oil pollution,
tourism development, and boat scour48.

2.9.16 Five species of marine turtles are found in the Philippines: green, hawksbill, olive ridley,
loggerhead and leatherback. Three turtle species (green, hawksbill and olive ridley) nest in
the Philippines and the other forage in Philippine waters. Green and hawksbill turtles nest
throughout the Philippines year round, while olive ridley turtles nest mostly in Zambales,
Bataan and Batangas Provinces Mainly In August and September64.

2.9.17 The Turtle Islands Heritage Protected Area (TIHPA) is the first trans-boundary protected
area in the world spanning the waters of Malaysia and the Philippines. It is the major
nesting ground of the green sea turtle (Chelonia mydas).63 Each year, over 2,000 nester
turtles lay hundreds of thousands of eggs in the TIHPA. While majority of the hawksbill
turtle (Eretmochelys imbricata) nests in the Gulisaan Island, Malaysia, they are also found
in the TIHPA. The biodiversity of the TIHPA include 34 bird species, fruit and field bats, a
variety of reptiles (snakes, green sea and hawksbill turtles, monitor lizards), 15
arborescent species, 24 to 27 genera of corals, 76 to 128 fish species, and 62 species of
marine flora. The entire municipality of the Turtle Islands was declared as the Turtle
Islands Wildlife Sanctuary (TIWS), managed by the Department of Environment and
Natural Resources‟ (DENR) Protected Area Management Board.49

2.9.18 The endangered species in the Philippines are listed in


2.9.19 Table III-18.

Table III-18. Endangered Species in the Philippines


Critically Endangered Vulnerable Other Threatened Total
Endangered Species*
Plants 99 187 176 64 526
Mammals 8 12 17 5 42
Birds 15 59 53 127
Reptiles 5 11 4 4 24

45
Unpublished. The Environment Chapter of the Bangsamoro Development Plan. Final Report on Coastal, Marine,
and Freshwater Biodiversity Sub-Theme
46
Fourth National Report to the Convention on Biological Diversity. Republic of the Philippines. 2009.
www.cbd.int/doc/world/ph/ph-nr-04-en.pdf
47
http://www.chm.ph/index.php?option=com_content&view=article&id=92%3Acoastal-marine-and-
island-biodiversity-coral-reefs-&catid=36%3Abiodiversity-in-the-philippines&Itemid=129
48
Fourth National Report to the Convention on Biological Diversity. Republic of the Philippines. 2009.
www.cbd.int/doc/world/ph/ph-nr-04-en.pdf
49
Unpublished. The Environment Chapter of the Bangsamoro Development Plan. Final Report on Coastal, Marine,
and Freshwater Biodiversity Sub-Theme
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Amphibians 4 10 14
* refers to species or subspecies not critically endangered nor endangered but is under threat from adverse
factors throughout their range and is likely to Source:
http://www.chm.ph/index.php?option=com_content&view=article&id=53&Itemid=84

3. Demographic and Tri-People Context

3.1 In 2010 ARMM registered a total population of 3,248,787.50 The people have been
generally described to include the: (i) Moros or Muslims, (ii) Lumads or indigenous
peoples, and (iii) settlers who are mostly Christians from Luzon and the Visayas. The
Muslims comprise the overwhelming majority. Based on the combined databases of the
Office of Southern Cultural Communities (OSCC) in ARMM and the National Commission
on Indigenous People (NCIP) in Basilan, the total population of indigenous people in
ARMM in 2010 was 606,452 or 18.6% of the total population in the same year. By
common knowledge, many of those classified as settlers are children of families who
migrated to Mindanao in the 1950s to 1970s under government resettlement programs;
and consider themselves, being born in Mindanao, as Mindanaoan.

3.2 ARMM was one of only two regions in the country – the other region was the National
Capital Region – that posted a larger number of female than male population (99 males
per 100 females) or a sex ratio of lower than 100 (i.e., 98.8) in 2010.51 Of its total
population, 1,634,189 or 50.3% were females.

3.3 Overall, ARMM registered the highest dependency ratio of 80.5 across regions in 2010.52
This means that for every 100 working-age population (with ages 15 to 64 years old), there
were 80 dependents (with ages 0 to 14 years old and 65 and over). In the same year,
ARMM had more male dependents than female dependents at 729,651 and 714,799
respectively.

3.4 In 2013 ARMM had a total of 2,300,000 total working-age population, with greater female
working-age population at 50.6%.53 Only 54.1% (the lowest in the country) or
approximately 1,252,000 were in the labor force, of whom 72.2% were males and 27.8%
were females. Of this number, 95.7% or approximately 1,198,000 were employed; 73.2%
were males and 26.8% were females. Not in the labor force were approximately 1,064,000
or 45.9% (highest in the country) of the working age population, of whom 77.4% were
females and 22.6% were males. Women thus continued to be less represented in
employment even if they comprise a larger proportion, at 50.6%, of the total working age
population.

3.5 In 2012 according to the Philippine Statistics Authority, of the total 1,220,000 employed
persons in ARMM, 70% or 861,000 persons were in agriculture, of whom 75.38% or

50
National Statistics Office (2011). Demography: Philippine Yearbook 2011. Retrieved February 23, 2014 from
http://www.census.gov.ph/sites/default/files/2011%20PY_ Demography.pdf#page=77&zoom=150,0,728
51
National Statistics Office (2011).
52
National Statistics Officer (2011).
53
National Statistics Office (2013). July 2013 Labor Force Survey. Retrieved February 23, 2014 from
http://www.census.gov.ph/sites/default/files/attachments/hsd/article/TABLE%
202B%20Percent%20Distribution%20of%20Population%2015%20Years%20Old%20and%20Over%20by%20Em
ployment%20Status%2C%20by%20Region%20and%20Sex%20July%202013_0.pdf.
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649,000 were males. 54 Female agricultural workers numbered 212,000 or 24.62% of the
total agricultural workforce.

4. Land Tenure Context

4.1 Land Administration Systems

4.1.1 Government agencies have different estimations of the total land area of ARMM, and
therefore of the whole proposed Bangsamoro territory. The National Mapping and
Resource Information Authority (NAMRIA) of the Department of Environment and Natural
Resources (DENR) estimated the total land area of ARMM at 1,293,552 hectares as of
2011, with 628,401 hectares or 49% of the total land area classified as alienable and
disposable and 665,151 hectares or 51% as forest land. The Philippine Statistics Authority
placed the region at 3,351,129 hectares with 533,410 hectares devoted to agriculture,
including 2,407 hectares of forest land.55 The Regional Planning and Development Office
(RPDO) of ARMM, on the other hand, pegged it at 27,581.79 square kilometers or
2,758,179 hectares as of 2007.56 The data of the Mindanao Development Authority is
consistent with that of NAMRIA.57 Data of DENR-ARMM are slightly different from
NAMRIA‟s and set the proportion of titled lands at 89% of the total alienable and
disposable lands.

4.1.2 Consistent in all land data on ARMM however is the mention of a large area for
agriculture. According to the ARMM Regional Planning and Development Office, most of
the land in ARMM is devoted to agriculture.58

4.1.3 These conflicting land records are primarily due to the incomplete cadastral survey of the
whole region as well as to multiplicity of agencies maintaining and providing land records
in the country. ARMM was initially excluded from the cadastral survey target of the DENR
because of the inability of DENR personnel to conduct cadastral survey in the area due to
peace and order problem.59 The Cadastral Survey Program of DENR-ARMM is
nonetheless now ongoing, and set to be completed by 2015.

4.1.4 The Philippines not only has multiple agencies maintaining and providing land data, but
also has multiple forms of titles or tenure instruments for agricultural lands. It has two
general systems for disposing land titles: judicial and administrative. Judicial land titling is
done through the judicial courts, whereas administrative land titling is done by government
line agencies (e.g., DAR, DENR, NCIP). These dual systems of disposing land titles and
the presence of multiple agencies with authority to issue land titles have also been cited as
among the causes of overlapping land claims and land conflicts not only in Mindanao but
also in many parts of the country.60
54
http://countrystat.bas.gov.ph/?cont=16&r=15.
55
http://countrystat.bas.gov.ph/?cont=16&r=15.
56
http://www.rpdoarmmgov.ph/redpb/The%20Autonomous%20Region.htm.
57
http://www.minda.gov.ph/site/Mindanao/statistics/Demography---Land-Area-Classification-
58
http://www.rpdoarmmgov.ph/redpb/The%20Autonomous%20Region.htm.
59
Land Management Bureau (2011). DENR gears up for full implementation of Land Management System, cadastral
survey. Retrieved August 11 from http://new.lmb.gov.ph/index.php?option=com_content&view=article&id=10:denr-
gears-up-for-full-implementation-of-land-management-system-cadastral-survey&catid=8:news&Itemid=107.
60
Antonio, D. (2006). Instituting good governance in the land administration system – the Philippines‟ perspective.
FAO Land Reform, Land Settlement and Cooperatives (2) 73-83;
Bangsal, N. & Lebrilla, M. L. (2008). Land administration system: Functional and efficiency implications. House of
Representatives Policy Advisory No. 2008-05.
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4.1.5 A land conflict scoping mission report of the World Bank and International Organization for
Migration (IOM) in March 2013 similarly states that addressing land conflict is made more
complicated by the existing institutional limitations of land administration and land dispute
resolution mechanisms. There are five government line agencies involved in issuing and
managing titles. Vested interests across these agencies have stalled previous reform
efforts. At the same time, a lack of coordination has increased the prevalence of conflict
through the issuance of multiple title instruments on individual plots of land, in the process
reducing the legitimacy of existing titles. In addition, poor document management, as well
as the cycle of conflict, has led to the loss or destruction of many land records. A national
cadastral survey project currently under way will document cases of multiple titles, but will
not identify competing claims without documentary supporting evidence.61

4.2 Statutory versus Customary Land Administration Systems


4.2.1 The complexity and inefficiency of the statutory land administration system is not the sole
reason of land conflicts in Mindanao. The more stark reason is the contrast of this
statutory system, which promotes the formalization of private land ownership through
issuance of land titles, with the traditional or customary land ownership concepts and land
use practices of the Moros and indigenous people in Mindanao.
4.2.2 The customary system or indigenous concept of ownership views land as belonging to all
generations of a clan, and therefore cannot be sold, disposed or destroyed. 62 A formal
land title is therefore a weak basis of property rights. The more important evidences are
ancestors‟ burial grounds, genealogies or salsila, and land occupation by the clan since
time immemorial. Inheritance is considered as the main basis of one‟s right over land; and
only the produce of the land, and not the land itself, can truly be possessed (Fianza,
1999).

4.2.3 Under customary practice, most members of the community enjoy access to land.
However, its regulation is a prerogative of individuals with rank or title (e.g., sultans, datus,
village/clan leaders). Big Moro tribes/groups, such as the Maranaos, Maguindanaos, and
Tausugs consider the sultans and datus as the titular ultimate owners or administrators of
all communal lands and their fruits (Briones, 2012). Thus, to them, though individuals
may have rights to unused sites through inheritance and kinship, they have to ask the
permission of their clan elders. The sultan and datu decide on the allocation of
communally owned land for individual use, and also personally supervise land production
and distribution of harvests according to the needs of their constituents. They also resolve
land disputes and other types of disputes. The followers reciprocate in terms of material
support, such as a portion of produce, taxes, labor as required by the datu. Among the
smaller Moro groups (i.e., Yakan, Samal, Sanguil, Kalagan and Kalibugan), the village or
community elders are more relied upon for decisions on land-related issues. According to
Briones (2012), though this practice of deferring to the ownership claims or power of a

61
Land Disputes in Conflict-Affected Areas of Mindanao: Report of the Joint World Bank-International Organization
for Migration Scoping Mission, May 2013.
62
Briones, R. (2012). Mindanao Economic Policy Papers: Land tenure and agribusiness investment in Muslim
Mindanao. Pasig City: Brain Trust: Knowledge and Options for Sustainable Development, Inc.
Dumarpa, J. (1984). How Maranao possess land. Salsilah, A Journal of Philippine Ethnic Studies, 4 (2), pp 34-42.
Fianza, M. (1999). Conflicting land use and ownership patterns and the “Moro problem” in Southern Philippines. In
M. Coronel-Ferrer (1999). Sama-sama: Facets of ethnic relations in South East Asia. Quezon City, Philippines:
Third World Studies Center, University of the Philippines.
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datu or clan leader is observed throughout ARMM, it is more prevalent in the mainland
provinces (Maguindanao and Lanao del Sur) where land consolidation has been
associated with their economic and political power. An indicative listing of clan
landholdings in Maguindanao is shown in Table III-19.

Table III-19. Indicative List of Clan Landholdings in Maguindanao


Clan Area Description of landholdings
Ampatuan Ampatuan, Datu Piang, Usay, Covers thousands of hectares; in Shariff
Hofer, Datu Sangki, Datu Saudi Aguak, consolidation was through
Ampatuan, Sharif Aguak pressured land sale
Sinsuat Odin Sinsuat Covers thousands of hectares
Sema Odin Sinsuat About 500 hectares
Paglas Datu Paglas Several hundreds of hectares; consolidated
under lease agreement by plantation
Candao Sultan Mastura About 50 hectares
Others: Matalam (Pagulangan), Pendatuan (Pendatun), Mastura (Sultan Mastura)
Source: Briones (2012)

4.2.4 Experiences on the ground show two implications of the dominance of datus and clan
leaders in administering land rights and land use among members of the communities or
clans. On one hand, the dominance of datus can facilitate the entry of economic
development opportunities and the mobilization of the support of the whole community. On
the other hand, the dominance of datus can cause the displacement and further
disempowerment of many small farmers, including indigenous people. A cited example is
the amassing of large tracts of land by Datu Andal Ampatuan and his children in
Maguindanao where even the judicial courts could not intervene.

4.2.5 The contrasts between statutory and customary land administration practices have
resulted in three major problems: (1) competing land claims between those who hold land
titles – though many who hold titles are Christian settlers, there are also Moros who also
have secured land titles for their occupied lands – and other Moros and indigenous groups
in Mindanao who claim land rights by virtue of their ancestral lineage; (2) relegation of the
status of many members of communities to the status of tenants of Moro landowners and
datus who were able to secure land documents for vast tracts of land under their
supervision; (3) displacement of many poor Moros, as well as Christian and Lumad
peasants, with the expansion of local big agribusiness and transnational corporations who
have gained control of Mindanao‟s land resources through the government land
administration system (Fianza, 1999).
4.3 Agrarian Reform
4.3.1 The total coverage of the Land Acquisition and Distribution (LAD) component of the
Comprehensive Agrarian Reform Program (CARP) in ARMM is 376,213 hectares, which
represents 29% of the total land area of the region (based on total land area estimate of
NAMRIA). As of December 31, 2014, of this total LAD coverage, 72.3% or 272,045.63
hectares have been distributed to 86,854 agrarian reform beneficiaries or ARBs (See
Table III-20).
Table III-20. Land Acquisition and Distribution Accomplishment of DAR as of December 2014
Provinces Total LAD Scope Accomplishment Balance No. of ARBs
(hectares) (hectares) (hectares)
Basilan 37,026.00 25,164.00 11,861.5640 8,110
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Lanao del Sur 165,403.00 134,235.07 31,168.2929 34,000


Maguindanao 124,735.00 82,733.56 42,001.1911 33,275
Sulu 17,387.00 9,287.00 8,100.0000 3,220
Tawi-tawi 31,662.00 20,626.00 11,036.3748 8,249
Total/ ARMM 376,213.00 272,045.63 104,167.4228 86,854
Source: DAR-ARMM, 2015

4.3.2 Lands subjected to CARP are generally used for agricultural purposes. Table III-21
presents the major crops planted in each province.
Table III-21. Crops Planted in Lands Subjected to Agrarian Reform
Province Crops
Basilan Rubber, coconut, coffee and cacao
Lanao del Sur Rice, corn, coconut, root crops and fruit trees
Maguindanao Rice, corn, coconut, banana and root crops
Sulu Cassava, coffee and fruit trees
Tawi-tawi Cassava and coconut
Source: DAR-ARMM, 2015

4.3.3 There are a total of 97 agrarian reform communities covering a total of 224,726.17
hectares in 85 municipalities in five provinces of ARMM (See Table III-22). Of these ARCs,
eleven have approved or ongoing agro-enterprise development (AED) projects under the
Agrarian Reform Communities Connectivity and Economic Support Services (ARCCESS)
Program. Examples of AED projects are common service facilities for: rice and corn
production; integrated rice-duck enterprise; rubber production and trucking facility;
cassava production and marketing; and coffee production and marketing. Other projects
are mechanized rice and corn production and marketing; provision of farm tractor; and
integrated organic farming of cassava.

Table III-22. ARCs, Land Areas and Beneficiaries of Agrarian Reform as of June 30, 2014

Total LAD area


Number of Total LAD Beneficiaries
63
Number distributed as of
Province Municipalities Scope (in
of ARCs June 30, 2014
with ARCs hectares)
(hectares)
Male Female Total
Basilan 6 11 18,676.55 18,676.55 5,121 527 5,648
Lanao del Sur 33 34 83,740.88 67,912.16 15,237 3,398 24,756
Mag‟danao 23 23 72,695.74 41,485.02 9,601 4,317 14,772
Sulu 11 12 10,289.00 7,247.58 3,814 1,769 5,583
Tawi-tawi 12 17 39,324.00 21,673.00 1,538 936 7,074
Total/ ARMM 85 97 224,726.17 156,994.31 35,311 10,947 57,833
Source: DAR-ARMM, 2014

4.3.4 According to the interviewed DAR-ARMM official, the implementation of agrarian reform is
beset with problems related to land tenure and program beneficiaries‟ development. Land
tenure issues include: (i) abandonment of awarded lands due to boundary disputes arising
from erroneous survey; and natural and human-induced disasters; (ii) un-subdivided
Mother Certificate of Land Ownership Award (CLOA), which discourages individual

63
Totals do not tally with sums of numbers of males and females because some ARCs lack sex-disaggregated data.
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farmers from developing their farm lots because of uncertainty on the exact locations of
their respective awarded lands; and (iii) unpaid land owners. Problems related to the
development of agrarian reform beneficiaries (ARBs) include: (i) weak organizations of
ARBs; (ii) lack of access to farming technology, capital and credit; (iii) unstable selling
price of agriculture commodities; (iv) lack of technical knowledge on value chain, and lack
of skills on value adding; (v) dilapidated road network and bridges, which have resulted to
high transportation cost; (vi) inadequate irrigation system and services; (vii) lack of post-
harvest facilities; and (viii) lack of potable water systems.

4.3.5 Nonetheless, in support of the proposed HARVEST as a potential source of additional


assistance to the ARBs, DAR-ARMM recommended a list of ARCs that are possible areas
for agri-business investment. These are those belonging to the Unayan cluster of ARCs in
Lanao del Sur and Iranun cluster in Maguindanao.

4.4 Ancestral Domain Claim of Indigenous People

4.4.1 The implementation of the Indigenous People‟s Rights Act (IPRA) in ARMM has been slow
due to the absence or contested jurisdiction of the National Commission on Indigenous
People (NCIP) in the region (except in Basilan), the lack of power of the Office of Southern
Cultural Communities (OSCC) in ARMM to identify and delineate ancestral domains and
issue Certificate of Ancestral Domain Titles (CADTs), and the divide between Moro and
non-Moro indigenous peoples (IPs).

4.4.2 Thus, from 2002 to 2008, only one CADT (R09-LAN-0206-043) of Sama Bangingi tribe
was issued in ARMM.64 This covers 2,673.2682 hectares in the Municipality of Lantawan,
Province of Basilan. For the IPs in Maguindanao, the NCIP of Region XII submitted,
based on applications mostly from non-Moro IPs, a list of ancestral domain claims for
delineation and recognition (See Table III-23). This list is, however, contested by the
OSCC because of alleged lack of consultation. Also, the total claimed ancestral domain is
more than 50% of the total land area of Maguindanao. Same areas are being claimed by
Maguindanaoan Moros.

Table III-23. List of Ancestral Domain Claims in Maguindanao


Est. Area
Location ICC/IP Claimant/s
(Hectares)
1. Direct CADT Application, PC Hill, Cotabato City, 500 IP Community
Maguindanao
2. North Upi, Maguindanao 48,722 Teduray
3. First Complex, Shariff Aguak, Maguindanao 97,500 Teduray
4. Dinaig, Datu Odin Sinsuat, Maguindanao 32,000 Teduray
5. Crossing, Barurao, Sultan Barongis, 10 Datu Norodina A. Camsa
Maguindanao & Haji Mustapha Abdul
Salam Mamasalagay
6. Upi, South Upi, Southern portions of the 201,880 Teduray/ Lambangian &
municipalities of datu Odin Sinsuat, Talayan, Dulagan Manobo
Guindulongan, Datu Unsay, Shariff Aguak and
Ampatuan, Maguindanao
Subtotal 380,612

64
Source: National Commission on Indigenous People (NCIP)
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Source: National Commission on Indigenous People, 2014

4.4.3 To assist the Moro and non-Moro IPs address their disagreements, the Bangsamoro
Transition Commission has formed a Task Force Mamalu-Tabunaway that will facilitate
dialogues on, among others, the demarcation of the claimed lands of the Tedurays and
Maguindanaons.

4.5 Land Tenure Arrangements

4.5.1 Given the complex land administration situation and issues, different land tenure
arrangements exist in ARMM similar to other regions of the country. There are small
owner-cultivators holding different types of land tenure instruments, such as free patents
(FPs), certificate of land ownership award (CLOAs), homestead patents and
original/transfer certificate of title, or mere tax declaration certificate as proxy document of
ownership of untitled private agricultural land (UPAL). Many, especially the indigenous
people, do not have documented proof of land ownership except for signs of their long
occupation of the land, such as their ancestors‟ burial grounds and attestation of the whole
community. There are also share tenants and leaseholders of small and large landowners,
as well as hired agricultural workers. The government cannot provide reliable data on their
numbers because of lack of unified land information system. There are also no data on
land titleholders claiming same parcels of land.

4.5.2 The problematic land administration system – conflicting land records, complexity and
multiplicity of land titling processes, sensitivity of ancestral domain claims, and the contrast
between the formal and customary land administration systems in ARMM – and the
resulting land conflicts and insecure property rights can serve not only as a major
challenge to agribusiness investments but also as a potential ground for further
marginalization of poor small farmers and indigenous peoples.

5. Economic and Poverty Context

5.1 In 2012 the region posted the highest poverty incidence among families across all regions
in the country.65 As of first semester of 2012, poverty incidence is at 46.9 and subsistence
incidence is at 20.4, which means that about 46.9% of every 100 families are poor, with
their income incapable of providing the basic food requirements. Among the five
provinces, Lanao del Sur had the highest poverty incidence of 68.9, followed by
Maguindanao at 57.8 (See Table III-24).

Table III-24. First Semester per Capita Poverty Threshold and Poverty Incidence among
Families: 2006, 2009 and 2012
First Semester Per Capita Poverty First Semester Poverty Incidence
Region Threshold (in Php) among Families (%)
2006 2009 2012 2006 2009 2012
Philippines 6,703 8,448 9,385 23.4 22.9 22.3
ARMM 6,319 8,257 10,027 43.0 42.0 46.9
Basilan 6,347 8,191 9,541 31.2 37.4 32.5
Lanao del Sur 6,443 8,309 10,970 38.1 51.4 68.9
Maguindanao 6,241 8,048 9,530 47.7 37.6 57.8

65
http://www.nscb.gov.ph/poverty/defaultnew.asp.
ESA for the Proposed Harnessing Agribusiness Opportunities through Robust and Vibrant Entrepreneurship
Supportive of Peaceful Transformation (HARVEST) 57

Sulu 6,860 8,837 9,996 42.9 37.9 30.3


Tawi-tawi 5,691 7,289 8,244 50.6 48.3 20.8
Source: National Statistical Coordination Board

5.2 Three of the five provinces of ARMM had the lowest Human Development Index (HDI)
across provinces in the whole country in 2009, as shown in Table III-25. The computation
of HDI is based on three basic dimensions of human development (HDN, 2013). These
are longevity or a long and healthy life, access to knowledge, and a decent standard of
living. The indicator of longevity is life expectancy at birth, which measures how many
years a new-born baby is expected to live on average given current age-specific mortality
rates. Access to knowledge is a measure of years of schooling, i.e., mean years of
schooling of people ages 25 years and above and expected years of schooling of children
(ages 6-24) in adulthood if enrolment rates stay at current levels. Standard of living is
measured by real per capita income.

Table III-25. Human Development Index of ARMM Provinces 2009


Life Education Income
Province HDI Rank* Expectancy Index Index
Index

Basilan .460 62 .676 .790 .182


Lanao del Sur .416 70 .628 .782 .146
Maguindanao .300 78 .610 .667 .066
Sulu .266 79 .582 .601 .054
Tawi-tawi .310 77 .532 .716 .078
* Rank: Of 79 provinces.
Source: Human Development Network 2013

5.3 On the comparative human development situation of men and women, in 2009 three
provinces of ARMM (i.e., Basilan, Sulu and Maguindanao; no data for Tawi-tawi) belonged
to the five provinces with lowest Gender-related Development Index (GDI) in the country.
The GDIs of Basilan, Maguindanao and Sulu, as shown in Table III-26, suggest that the
disparity between men and women was mainly in income, rather than in health and
education. This means that both men and women in these provinces equally need help in
the areas of health (if life expectancy is used as health indicator) and education, but
women need more assistance in income generation.
Table III-26. Gender-related Development Index of ARMM Provinces 2009*
Life Mean years of Expected Years Estimated earned
Expectancy schooling 2008 of Schooling income (Phil Pesos)
GDI Rank
Province at birth (ages 25 and 2008 (ages 6-24) 2009
2009 **
2009 above)
M F M F M F M F

Basilan .313 69 72 74.7 7.6 7.0 12.6 12.0 53,438 13,907


Lanao del Sur .545 56 55.9 63.2 7.0 6.8 12.5 12.9 29,075 32,381
Maguindanao .348 66 66.7 60.6 6.3 6.3 9.8 10.5 29,663 17,781
Sulu .337 67 58.8 57.8 4.7 4.5 10.9 11.6 23,890 21,431
Source: Human Development Network 2013
* No data for Tawi-tawi
** Rank: Of 69 provinces
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Supportive of Peaceful Transformation (HARVEST) 58
5.4 Economic performance has been consistently lower in ARMM compared to the rest of
Mindanao and the Philippines over the past decade (see FigureIII-11). In 2012, ARMM's
Gross Regional Domestic Product (GRDP) grew by only 1.2% compared to 7.4% in the
Mindanao "growth areas" of Regions 10 and 11.

5.5 The average annual nominal GRDP of ARMM was only P38.0 billion over the period 1996-
2008 (and P83.8 billion over 2009-2012),66 equivalent to only 0.9-1.0% of the country's
GDP for approximately 3.5% of the Philippine population.67 With an average annual
GRDP growth rate of 3.1% (1996-2008) and 2.5% (2009-2012), and a population growth
of around 2.3% (as of 2010), the region's growth performance hardly meets the expanding
needs of its residents.

Mindanao,
Philippines,
2012, 8.2
2012, 6.8
%

ARMM,
2012, 1.2

Philippines Mindanao ARMM

Source: NCSB
68
Figure III-11. Annual Real GRDP Growth Rates (1996 - 2012)

Table III-27. Gross Domestic Product (in Thousand Pesos at Current Prices)
Year Philippines ARMM
2011 9,708,331,799 88,078,989
2012 10,567,335,915 93,338,128
2013 11,548,191,402 101,091,392
Source: http://www.nscb.gov.ph/grdp/2013/data/2011-2013_GRDP_July2014.pdf.

5.6 ARMM‟s regional economy was the region with the second lowest growth rate at 3.6
percent in 2013, accounting for the lowest share of GDP (0.7%). The major sectors
contributing ARMM‟s domestic output in 2013 were: Agriculture, Hunting, Forestry and
Fishing (AHFF) (61.3%), Services (33.6%) and Industry (5.1%).69

5.7 The per capita GRDP in ARMM was the lowest in the country at P14,566. Inflation was the
highest in ARMM, 4.6 % in 2013.70

5.8 Agriculture

66
The NSCB adopted a new methodology that updates the computation of the gross regional income accounts
beginning 2009. Hence, caution should be exercised in comparing the levels and growth rates of the GRDP time
series pre-2009 and post-2009.
67
The population of ARMM was estimated at 3.3 million as of August 2010. The population of the Bangsamoro is
estimated at approximately 3.7 million (or, about 4.0% of the Philippines population).
68
Notes: Statistical series break beginning 2009. Also, at 1985 prices (1996-2009 series) and 2000 prices (2009-
2012 series). As a result, regional income accounts data prior to 2009 cannot be compared with figures post 2009.
69
http://www.nscb.gov.ph/grdp/2013/data/2011-2013_GRDP_July2014.pdf
ESA for the Proposed Harnessing Agribusiness Opportunities through Robust and Vibrant Entrepreneurship
Supportive of Peaceful Transformation (HARVEST) 59

5.8.1 Of the total 3.3 million hectares of land in ARMM, 533,410 or 16% is agricultural in nature.
Agricultural output in ARMM is presented in Figure III-12: it is primarily crop based
(71.5%), followed by fisheries (22.4), livestock (4.2%) and poultry (1.9%).70

Crops
Fisheries
Livestock
Poultry

Source: http://countrystat.bas.gov.ph/?cont=16&r=15
Figure III-12. ARMM Agriculture GRDP (2013).

5.8.2 The major agricultural products of the ARMM provinces are:

 Lanao del Sur: corn, rice, cassava, sweet potato, abaca and coffee
 Maguindanao: rice, corn, banana, palm oil, coconut, cassava, fish and marine resources
 Basilan: coconut, coffee, corn, banana and cassava
 Sulu: exotic fruits such as marang, mangosteen, and durian
 Tawi-tawi: seaweed, octopus, ornamental shells, sea cucumber, bangus fry, grouper,
round scad, crustaceans, sharks, abalone, prawns, crabs, squid, and sea turtle eggs.71

5.8.3 The 2013 production figures ion ARMM are presentd in Table III-28. In 2013, Agriculture
and Forestry grew 2.5% and fishing grew 2.4% from 2012.72 The principal agricultural
commodities grown in ARMM in 2013 were cassava, corn, coconut, palay and seaweed,
generally low value crops73, as in previous years (Figure III-13).74

70
http://countrystat.bas.gov.ph/?cont=16&r=15
71
ARMM Regional Development Plan Midterm Update 2013-2016. http://rpdoarmmgov.ph/rpdo/
72
http://www.nscb.gov.ph/grdp/2013/data/2011-2013_GRDP_July2014.pdf
73
http://countrystat.bas.gov.ph/?cont=16&r=15
74
Environmental and Social Safeguards Scoping Report for the Bangsomoro Fund Facility, draft 2014. Prepared by
joint World Bank-JICA Environmental and Social Safeguards Scoping Team.
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Supportive of Peaceful Transformation (HARVEST) 60

2009-2012, Cassava,
10,100
2009-2012, Corn, 9,368
2009-2012, Coconut,
8,648
2009-2012, Palay, 8,249
2009-2012, Banana,
3,452
2009-2012, Rubber,
1,993
2009-2012, Coffee, 596

2009-2012, Abaca, 183

2009-2012, Mongo, 121


2009-2012, Sugarcane,
105

million pesos (nominal)

Source: DA-BAS
Figure III-13: Nominal value of production of top ten major crops in ARMM: 5- year
average, 2008-2012

Table III-28. Production in ARMM (2013)


Value (Millions Volume of Area Harvested (ha)
Pesos) Production (metric
tons)
Palay 17,393.61 612,083 226,700
Corn 8,365.43 667,104 275,964
Other Crops Coconut 3,550,491
Banana 445,935
Cassava 217,143
Rubber 185,476
Abaca 138,369
Coffee 116,459
Oil Palm 53,849
Tobacco 34,451
Cacao 9,431
Livestock 3,205.74 7,764 Carabao
10,440 Cattle
11,424 Hog
4,495 Goat
Poultry 1,180.19 5,851 Chicken
1,021 Duck
3,505 Chicken Eggs
1,854 Duck Eggs
1
Commercial Fisheries 3,404.63 95,440.82
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Supportive of Peaceful Transformation (HARVEST) 61
1
Municipal Fisheries 5,056.16 86,838.14
Marine
1
Municipal Fisheries 2,040.37 24,401.23
Freshwater
1
Aquaculture 4,640.68 638,551.71
1
2012 data; Source: http://countrystat.bas.gov.ph/?cont=10&pageid=1&ma=C60PNCFP

5.9 Services

5.9.1 The services sector ranks second to Agriculture, Fishing and Forestry (AFF) and
increased its contribution to GRDP by 6.6% from 2012 to 2013.75 However, most jobs
available in this sector are low paying. Tourism, which has the potential to provide
significantly higher revenues to the region and offer higher compensation for workers, has
not taken off due to security concerns and poor infrastructure despite the natural beauties
and amenities that the region can offer.76

5.9.2 The subsectors of the service sector varied in their growth pattern:
 Financial Intermediation grew from 10.7 % to 18.5 %
 Trade and Repair grew from 4.0 % to 5.7 %
 Public Administration and Defense (PAD) grew from 5.5 % in 2012 to 5.9 %
 Transport, Storage and Communication (TSC) shrank from 8.4 percent 7.9 percent
 Other Services shrank from 6.7 % in 2012 to 6.2 % in 2013
 Real Estate, Renting and Business Activities (RERBA) maintained its growth of 3.6
percent.77

5.10 Industry

5.10.1 Manufacturing only comprises 5% of the regional economy and is dominated by micro and
small-scale industries (refer to JICA 2011). This is primarily due to the uncertain peace
and order situation and the ability of small and micro-industries to adapt to changing
circumstances making them a form of survival or coping mechanism. However, most of
them are part of the "shadow economy" and do not contribute to the government‟s ability
to raise revenues.78 There are only a few medium and large-scale enterprises that can
generate a significant number of jobs, primarily because large and successful enterprises
in the ARMM region can be subjected to extortion threats and security challenges.

5.10.2 The Industry sector posted a decline by 2.1 percent in 2013 from a growth of 0.4 percent
in 2012, mainly due to Electricity, Gas and Water Supply (EGWS) decreasing from 0.7
percent in 2012 to negative 6.2 percent in 2013.78

5.10.3 Accelerated growth was observed in:


 Mining and Quarrying grew from 2.3 % to 2.6 %
 Manufacturing grew from 3.0 % to 3.9 %
 Construction rebounded from negative 3.1 % in 2012 to 1.2 % in 2013.78

75
http://www.nscb.gov.ph/grdp/2013/data/2011-2013_GRDP_July2014.pdf
76
Environmental and Social Safeguards Scoping Report for the Bangsomoro Fund Facility, draft 2014. Prepared by
joint World Bank-JICA Environmental and Social Safeguards Scoping Team.
77
http://www.nscb.gov.ph/grdp/2013/reglHighlights.asp
78
Refer to WFP and WB (2011); and Lara and Schoofs (2013)
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5.11 Finance and credit

5.11.1 As outlined in the scoping report for this project, limited access to capital and credit is one
of the binding constraints to higher productivity and growth in ARMM. Inherent market
failures in rural areas, combined with conflict risks, result in minimal extent of financial
inclusion in ARMM. On average, ARMM has only 0.6 number of bank offices per thousand
square kilometer of land area compared to Mindanao's 9.7 and the country's 28.2 in 2013
(refer to Figure III-14). ARMM also has the highest percentage of unbanked
municipalities and cities with only 7% serviced by banks while 48% in Mindanao and 63%
in the Philippines are served by banks (refer to Figure III-15). Moreover, there is very
limited access to Islamic financing and credit in the region given the heavy debt burden of
the Al-Amanah Islamic Bank, the only bank in the Philippines allowed to engage in Islamic
financing and credit.79

Figure III-14 (left): Bank density in the Bangsamoro, 2006-2012


Figure III-15 (right): Banked and unbanked (lighter shade) municipalities and cities in
Bangsamoro, as of end of September 2011

N
o
t
e
s
:

N
o

a
v
a
ilable disaggregated data to calculate bank density in the Bangsamoro area in 2006 and 2009. Figures are
as of end of the year (except figures for 2013 which refer to end of the third quarter).
Sources: BDP core team estimate, BSP, NSCB.

5.11.2 Figure III-16 and Figure III-17 below show that total deposits and loans in ARMM and in
fact in Mindanao on the whole are insignificant over the last decade compared to the rest
of the country. Operations of micro-finance institutions are also limited which account for
the prevalence of the informal lending sector. In a survey conducted on the credit sources
of residents in the conflict areas, 79 of the respondents answered that they borrowed from
their relatives and friends (WFP and WB 2011) (refer to Table III-29 below).

79
Environmental and Social Safeguards Scoping Report for the Bangsomoro Fund Facility, draft 2014. Prepared by
joint World Bank-JICA Environmental and Social Safeguards Scoping Team.
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Supportive of Peaceful Transformation (HARVEST) 63
Figure III-16: Total deposits in ARMM, as of end Figure III-17: Total loans in ARMM, as of end of
of June 2013 June 2013
Philippine Philippine
s, 2013, s, 2013,
6,316.1 3,779.4
billion pesos

billion pesos
Mindanao
Mindanao , 2013,
, 2013, 115.7
369.2 ARMM,
2013, 1.0
ARMM,
2013, 6.2

ARMM Mindanao Philippines ARMM Mindanao Philippines


Notes: No available data from 1996 to 2000.
Sources: BSP

Table III-29. Sources of Credit in the Bangsamoro


Cotabato Tawi-
Sources of Credit LdS Mag Basilan
City Tawi
No access 1% 4% 32% 19%
Relatives / friends 97% 84% 81% 48% 79%
Charities / NGOs 0% 0% 0% 0%
Local lender / pawn shop 1% 1% 13% 23% 0%
Bank 1% 9% 0% 0%
Co-operatives 1% 1% 15% 0% 0%
Local Govt Units (LDUs) 0% 0% 2% 0% 1%
Store 5% 14% 12% 0% 0%
Other 2% 2% 2% 11% 2%
Source: WFP and WB 2011

6. Political-Economy Context

6.1 In many LGUs in the region, the most prominent businesses are those owned or controlled
by the families that are also the elected LGU leaders. This intertwining of politics and
business presents multiple risks for investors. Some existing investors have adapted to
this marriage by entering into arrangements that further consolidate local control of
political and security controls together with their business investments - for example
inviting local LGU leaders to become partners in a new business can be a form of
insurance. However there are risks associated with this strategy, including the political,
security and business implications when elections bring about a change in local
leadership. There is also a risk that strengthening local political and business control of
one family may impact on transparency and accountability at the local level, and may
ultimate curb democratic principles.

6.2 Aligning with one political grouping or another at a local level is a threat to other groups,
given that sources of income are limited at the local level, and any successful business
that produces a return has the potential to shift the balance of power at election time in
favor of one group over another.
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Supportive of Peaceful Transformation (HARVEST) 64

6.3 Some investors have managed to remain removed from local politics, by maintaining
relationships with all political groups. Businesses that require access to large tracts of land
find this more difficult to achieve than those that don‟t, given that local political leaders
exert control over large areas and tend to veto powers over new investments in their area.
There tends to be less risk for investments that focus on processing rather than
production.

6.4 That the clan is a mechanism within the Bangsamoro society of dispensing opportunities,
providing social protection and bestowing privileges to family and community members
has been well documented in the literature (Lara 2007; and Abinales 2000). Important
economic and political matters that affect the life of the community will have to pass the
approval of the dominant clan before their introduction and implementation in the
community. While the system affords an unconventional social protection mechanism
particularly for the very poor members of the community, it also has its negative aspect in
the form of elite capture of most of the benefits of development assistance (refer to
Adriano and Parks). Because of their monopoly control of both economic and political
powers in their respective communities, these clans have become virtual gatekeepers in
their respective communities. Violence often occurs when the control over a territory by a
dominant clan is challenged by another rival clan in the area.

7. Health Situation

7.1 Vital statistics for the Philippines (2010) indicate the population is 94,013,000, with
1,782,981 live births and 488,265 deaths, resulting in a natural increase of 13.8 per 1000
mid-year population. For 2010, maternal mortality was 96.4 per 1,000 births, fetal death
was 4.5 per 1,000 births, and under 5 mortality was 17.8 per 1,000 births80.

7.2 The Autonomous Region of Muslim Mindanao (ARMM) has the highest reported incidence
of water pollution, sanitation and hygiene-related diseases in the country. The proportion
of the population in the ARMM with access to improved sanitation (38 %) is just over half
the national average. Similarly, the proportion of the population in the ARMM with access
to improved water sources is lowest in the country (60 %) and 15 % lower than in any
other region. The disparity across income levels in the country is also striking. The
proportion of low income families with access to basic sanitation is 22 % lower than high
income families and the proportion with access to water sources that can provide
improved drinking water and basic hygiene is 17 % lower. 81.

7.3 Top causes of death in ARMM in 2010 were: Cerebro-vascular diseases (103); malignant
neoplasm (71); TB (65); Pneumonia (55); Diabetes mellitus (49).82

7.4 Eight of ten leading causes of morbidity in the Philippines in 2010 are due to infectious
diseases. Acute respiratory infection, pneumonia and bronchitis are the top 3 causes of
morbidity; no regional data are provided83.

80

http://web0.psa.gov.ph/sites/default/files/attachments/crd/article/SUMMARY%20OF%20PRINCIPAL%20VITAL
%20STATISTICS.pdf
81
siteresources.worldbank.org/INTPHILIPPINES/.../PEM06-fullreport.pdf
82
http://www.doh.gov.ph/kp/statistics/selected_death.html
83
http://www.doh.gov.ph/sites/default/files/3%20Chapter1.pdf
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7.5 The number of health workers in ARMM is provided in


7.6 Table III-. The number of beds relative to population size in ARMM is the lowest in the
country. ARMM has the highest poverty threshold, highest poverty incidence and very low
savings. ARMM is also low with respect to the human development index: life expectancy,
years of schooling and per capita income is much lower in ARMM compared to national
averages (
7.7 Table III-30).

Table III-30. Health Statistics


Indicator National ARMM
Government health Doctors 2838 76
55
Workers Dentists 1891 58
Nurses 4576 114
Midwives 17,437 615
Health Service Number of beds 94,199 586
54
Availability (2008)
Number of beds per 1000 1.04 0.17 (lowest)
population
84
Poverty Annual Per Capita 18,935 20,517 (highest)
Poverty Threshold (PhP)
2012
Poverty Incidence among 19.7 48.7 (highest)
Families (%) 2012
Average Income of 206,000 113,000
families 2009
Average Expenditures of 176,000 98,000
families 2009
Human Development HDI 2009 0.609 0.266 (Sulu) – 0.46
85
Index (Basilan)
Life expectancy at birth 72 53.6 (Tawi-Tawi) -62.7
(yr.) (Basilan)
Mean Years of schooling 12.0 4.6 (Sulu) – 7.3 (Basilan)
Real per capita income 46,135 22,636 (Sulu) – 33,891
(Basilan)

8. Archaeological and Cultural Resources

8.1 Tourism

8.1.1 Tourism has great potential in Mindanao given its rich and varied array of tourist
attractions for various interests, including history and culture, natural beauty and
adventure. List of ARMM natural tourist spots is Annex B.

9. Conflict Context

9.1 Due to its protracted nature, the conflict in the Bangsamoro area has mutated in various
forms. Vertical conflict (state versus rebel groups) is primarily between the government
and the MILF, but other armed groups such as the remnants of the Moro National
Liberation Front (MNLF), the Bangsamoro Islamic Freedom Fighters (BIFF), and elements
of the Abu Sayyaf Group pose challenges to state authority. Horizontal conflicts abound
such as political elites competing for key electoral positions in the government or control

84
http://www.nscb.gov.ph/secstat/d_income.asp
85
http://www.nscb.gov.ph/hdi/2009/2009%20Human%20Development%20Index.pdf
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Supportive of Peaceful Transformation (HARVEST) 66
over scarce resource in the area, inter-ethnic competition (IPs versus Moros, Maranaos
versus Maguindanaoans), or inter-communal conflict (Christians versus Moros, MILF
versus MNLF). Many of these horizontal conflicts are lumped together under the
phenomenon of "rido" (clan wars). International Alert and WB (2014) noted that the
incidences of horizontal conflicts outnumber those of vertical conflicts particularly when the
peace negotiations occurred between GOP and the MILF and after the signing of the FAB
in October 2012. However, they admonished that the decline in the incidence of vertical
conflict and a rise in horizontal conflict should similarly be a cause of concern because the
latter can easily transform into vertical conflicts given the interwoven nature of personal
relationships in the Bangsamoro. The "feudalistic nature" of its society enables a
prominent clan members who hold political power to use state resources against their
enemies who will conveniently form an alliance with rebel groups to counter the
overwhelming force of their rivals. The diagram below (Figure III-18) presents the types of
horizontal conflicts, their likely scenarios, and potential consequences for agribusiness
investments.

Figure III-18. Mapping for Potential Horizontal Conflicts and Consequences for Agribusiness
Investments

9.2 Conflict between Fronts

9.2.1 There has been sporadic fighting between MILF and MNLF fighters in recent years,
usually triggered by factors not related to the broader peace process, such as land
disputes, historical grievances, or shifting allegiances in local politics. The impact of these
conflicts is often significant, but tends to be relatively short-lived. These conflicts are
restricted to specific geographic areas that can be mapped for risk profiling of potential
investments. Its likelihood is low but could yield devastating results if occurred.

9.3 Political conflicts

9.3.1 This type of conflict results from contestation of political and economic powers among
elites and influential clans at the regional and local government level. Implications on the
ESA for the Proposed Harnessing Agribusiness Opportunities through Robust and Vibrant Entrepreneurship
Supportive of Peaceful Transformation (HARVEST) 67
envisaged HARVEST are discussed under the “Political Economy Context.” Its likelihood
is low and but could create medium impact.

9.4 Religious Conflicts

9.4.1 There is a limited history of religious conflict in the proposed Bangsamoro areas. The
Moro fronts (MILF and MNLF) characterize their struggles in terms that are based on
historical injustice, exclusion and oppression rather than on religious differences. There
are cases of specific religious attacks, particularly at the community level, but these tend
to be isolated and small in scale. All the successful agribusiness investments to date in
ARMM work with all religious communities. In some cases (e.g. Matling) those differences
are openly recognized and addressed in company policy. In others there is no specific
policy response other than to buy inputs from any grower, regardless of affiliation (e.g.
Agumil). Likelihood and impact of this type of horizontal conflict is low.

9.5 Rido

9.5.1 The most common cause of local conflict is usually attributed to rido (typically defined as
„feuding between families and clans‟). Ridos can be long-running, can escalate to involve
an increasing number of families, and each rido tends to require a specific, tailored
solution given that the origins are affected primarily by local factors. Any size of external
investment in an area affected by rido can aggravate existing tensions, and companies
involved can become easy de facto targets if aligned with one side or another in a rido
conflict. Risk mitigation strategies will involve appropriate social impact analysis prior to
investment, briefings from the local security forces on existing conflicts, and discussions
with a full range of local political actors. Its likelihood is high, its impact medium.

9.5.2 In 2012, the ARMM Regional Reconciliation and Unification Commission (RRUC)
identified a total of 228 rido cases in the five provinces, most of which were caused by
land conflicts.86

Table III-31. List of Rido Cases in ARMM as of December 2012


Provinces Active Unresolved Cases Resolved Cases Total
Maguindanao 44 61 105
Lanao del Sur 60 9 69
Basilan 22 6 28
Sulu 15 4 19
Tawi-tawi 6 1 7
TOTAL 147 81 228
Source: ARMM Regional Reconciliation and Unification Commission (RRUC), 2013

9.6 Land conflicts

9.6.1 The list of potential conflict triggers from land are numerous, including land grabbing,
illegal land occupation, selling of land without titles, multiple claims over single plots,
claims of historical usage against current titles, and others. There are land conflicts

86
Regional Reconciliation and Unification Commission (2014). Strengthening peacebuilding in ARMM: 2013 annual
report. Cotabato City: Autonomous Region in Muslim Mindanao.
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Supportive of Peaceful Transformation (HARVEST) 68
between Moros and Christian settlers, Moros and indigenous people, and Moros and
Moros (LGSPA, 2009).87

9.6.2 The complexity of land tenure situation is one of the major sources of these conflicts. A big
number of armed encounters between government and rebel forces, as well as between
Moro groups or between Moro and IP groups, trace their roots to competing land claims.
The World Bank and the International Organization for Migration (IOM) conducted a Joint
Scoping Mission on Land Conflict in Mindanao in March 2013 and found that the signing of
the Framework Agreement on Bangsamoro (FAB) has created new dynamics in the
region. According to unverified stories on the ground, many Moros are expressing a desire
to return to land from which they had been forcibly displaced, sometimes decades ago
because of wars; and there are also those who started to threaten settlers of eviction after
the signing of the BBL. The ensuing movement of people could bring latent claims to the
fore in the absence of an effective institutional framework to deal with rising tensions. In
addition, various stakeholders are positioning themselves based on their expectations of
how the land related provisions of the FAB would be implemented, creating further
tensions amongst neighboring communities. It is clear that a significant proportion of both
the active and latent competing land claims have a considerable potential to trigger
renewed violence and forced displacement.88

9.6.3 Disputes over land use are the most significant risk for agri-business investments in the
future Bangsamoro. The proposed „core territories‟ of the Bangsamoro include a number
of areas within the current ARMM and neighboring municipalities and provinces where
conflicts over land have occurred regularly. It is likely that any portfolio of agri-business
investments in the Bangsamoro will run into land disputes at some point. Both its likelihood
and impact is very high.

9.7 Internally Displaced Persons

9.7.1 The different types of conflicts gave rise to the large number of internally displaced
persons (IDPs) in the region. The Bangsamoro Human Rights Network (BHRN) recorded
265,898 IDPs in Maguindanao, 67,144 IDPs in Lanao del Sur, and 20,248 IDPs in Basilan
since January 2012 (PCIJ, 2013). The Internal Displacement Monitoring Center (2013)
estimated nearly 200,000 people to have fled their homes since January 2013 because of
conflicts between the government and rebel groups and clan-related violence. This
includes an estimated 120,000 people who were affected by the fighting in Zamboanga
City last September 2013. Of these people affected, at least 72,000 are still displaced. The
estimated direct income loss due to these forcible displacements was PhP 258.5 million;
and 1.9 million in cumulative schooldays lost by displaced children (PCIJ, 2013).
According to the BHRN, in the last two years, the top cause of displacement was natural
disasters; the second was fighting between the government and communist rebels; and
the third was rido or blood feuds between and within powerful and influential clans in
Mindanao. The armed conflict has also resulted in a huge number of children (i.e., 5,249 in
2009) involved in armed groups.

9.8 Local Conflict Resolution/Management Mechanisms

87
Land Governance Support Program in ARMM (2009). Land tenure stories in Central Mindanao. Davao City:
LGSPA, Kadtuntaya Foundation, Inc., and Mediators Network for Sustainable Peace (MedNet), Inc.
88
Land Disputes in Conflict-Affected Areas of Mindanao: Report of the Joint World Bank-International Organization
for Migration Scoping Mission, May 2013.
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9.8.1 As part of their peace initiatives, people in the Bangsamoro region and Mindanao have
created various mechanisms for conflict resolution/management and maintaining peace
and order in the region. For vertical conflicts such as what happened in the gunfight
between the Philippine National Force Special Action Force and MILF in Mamasapano,
Maguindanao on January 25, 2015, the MILF and GOP have joint ceasefire mechanisms.
The Coordinating Committee on Cessation of Hostilities (CCCH) of both sides created a
Joint Ceasefire Crisis Team “to negotiate for ceasefire, separate the two contending
forces, assist in the evacuation of casualties, assess the situation of internally displaced
persons (IDPs), and help stabilize the situation”.89

9.8.2 For horizontal conflicts, including land conflicts, local conflict resolution/management
mechanisms include:

 Agama Arbitration Council, which under Presidential Decree 1083 or the Code of Muslim
Personal Laws can be constituted by the Shari‟ah District Court or the Shari‟ah Circuit
Court to amicably settle disputes arising from marriages and divorces among Muslim
parties, including their disputes concerning their community properties.

 Indigenous dispute resolution system where a council of elders, or sultan or datu or


timuay mediate disputes between and among members of the tribe or community to
reach settlement;

 Katarungang Pambarangay or Barangay Justice System, in which an individual can


submit a complaint against another individual, who is not a public entity, to the Lupong
Tagapamayapa headed by the Barangay Local Chief Executive for mediation or
arbitration in accordance with the Katarungang Pambarangay Rules;

 Agrarian dispute resolution structures of DAR-ARMM, such as the Barangay Agrarian


Reform Committee (BARC) at the barangay level, Provincial Agrarian Reform
Adjudication Board (PARAD) and Regional Agrarian Reform Adjudication Board
(RARAD) for conflicts related to the implementation of agrarian reform, conflicts between
landowner and tenants or leaseholders, and land-related conflicts between and among
farmer beneficiaries;

 Mediation by land investigators and hearing officers of the DENR-ARMM for conflicts
involving untitled or unpatented alienable and disposable lands after failed mediation
attempts by the Lupong Tagapamayapa in accordance with DENR Lands Office Circular
68; according to DENR-ARMM, their land investigators are trained in mediation by the
Philippine Justice Academy (PhilJA);

 Civil society-organized groups of mediators, such as the Tumikang Sama-Sama


Mediator assisted by the Center for Humanitarian Dialogue in Sulu; the Salday ko sa
Genoket in five municipalities (Upi, Parang, Buldon, Barira and Kapatagan) in
Maguindanao; Lumpingan, which is an aggrupation of Moro professionals from Datu
Piang and operating in three municipalities (Datu Piang, Datu Saudi Ampatuan and
Mamasapano) in Maguindanao; and Organization of Teduray Lambangian Conference

89
Gov‟t, MILF ceasefire mechanisms worked hard to effect ceasefire in Mamasapano. Retrieved Feb 10, 2015 from
http://www.opapp.gov.ph/milf/news/gov%E2%80%99t-milf-ceasefire-mechanisms-worked-hard-effect-ceasefire-
mamasapano
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(OTLAC) in Upi, Maguindanao. These groups of mediators were trained in mediation by
the Mediators Network for Sustainable Peace (MedNet), Inc.

I. Committees of the MNLF and MILF that assist in dispute resolution, including rido; and
II.
III. Mediation interventions of local chief executives and other high ranking government
officials when conflicts cannot be resolved at the community level.
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IV. ENVIRONMENTAL RISKS AND POTENTIAL IMPACTS

1. The environmental risks and potential impacts of agribusinesses vary according to the
type of project, practices and the absorbing capacity of the environment. While
agriculture and aquaculture provide food, biofuels, and other products, unsustainable
agricultural practices can also become significant drivers of environmental degradation.
The qualitative description of the potential risks and impacts of agricultural expansion
and intensification in the Bangsamoro region are presented in this section.

2. The upstream environmental risks and potential impacts related to farming and other
agricultural production systems include the following:

 Forest/land conversion and loss of natural habitats and biodiversity;


 Overfishing and loss of marine resources;
 Soil degradation and erosion;
 Lower water availability;
 Water pollution (application of fertilizers and agrochemicals);
 Waste management, and
 Health impacts from exposure to agrochemicals and other pollutants.

3. The downstream environmental risks and impacts related to post-harvest processing,


extraction and purification include:

 Pollution (point sources such as emission to air and discharge of effluent), and
 Waste management.

4. The environmental risks and impacts related to agribusiness supporting facilities, such as
power plants, waste treatment facilities, irrigation systems, fishing boats, etc.:

 Forest/land conversion and loss of natural habitats and biodiversity;


 Overfishing and loss of marine resources;
 Soil degradation and erosion;
 Less water availability and poorer quality;
 Pollution (point sources such as emission to air and discharge of effluent), and
 Waste management.

A. Upstream Environmental Risk

Forest/Land Conversion and Loss of Natural Habitats and Biodiversity

5. Agriculture, in particular plantations, is a specific land use that competes with natural
habitats such as forests and other terrestrial ecosystems. The establishment of plantations
has been identified as a major driver of land use changes as natural ecosystems are
cleared for agricultural production. This land use change and the corresponding forest loss
and fragmentation of natural habitats are identified as key environmental issues brought
about by agricultural expansion and intensification.
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Clearing of trees to give way to palm oil, Malabang, Lanao del Land use conversion for palm oil plantation in Carmen, North
Sur Cotabato

6. Establishment of downstream processing facilities such as palm oil mills in Malabang


(Lanao del Sur) and in Carmen (North Cotabato) has spurned the development of palm oil
plantations in these provinces. As in the case in Lanao del Sur, the palm oil mill company
engages in a production, technical, and marketing agreement (PTMA) with land owners in
the area however it also sources palm oil fruits from individual growers in the area. This
type of sourcing arrangements can promote further conversion of forestlands, resulting in
further loss of natural habitat and biodiversity.

7. The Bangsamoro area has several key biodiverse areas (KBAs). Several of these areas
are currently already under stress (Ligawasan Marsh, Lake Lanao). Furthermore, many
protected and endemic species are present in the Bangsamoro area. Forest conversion
may add further stress to the KBAs and protected species.

8. Land conversion can cause the fragmentation of natural habitats and is more pronounced
in forest ecosystems. Some of the critical habitats in the river basins are considered
biodiversity rich and endemic to the area. The clearing of forests and replacing the natural
vegetation with single plantation crop can have significant adverse impacts on the habitats
of endemic species in the area. Within the Bangsamoro region are identified critical
habitats and conservation areas that include protected areas and key biodiversity areas
with an aggregate area of over 600,000 hectares (
9. Table III- ).

10. Agricultural companies will need to align their development plans to local land use plans.
In the case of protected areas, a multi-stakeholder Protected Area Management Board
(PAMB) sets the management plan of the protected area including the land use plans. For
other forestlands, the DENR-ARMM collaborates with the LGUs in formulating the Forest
Land Use Plan (FLUP). These protected area management plans and FLUPs provide a
land use framework which agribusiness firms can use to align their development plans.

Overfishing and Loss of Marine Resources

11. Fisheries operations, habitat alteration and introduction of alien species have been
identified as a threat in the Bangsamoro area. In addition, illegal fishing with explosives
and toxic chemicals occurs in the Bangsamoro area according to the Focus Group
Discussions for the HARVEST project in Zamboanga (Jan 2015).
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12. More than 85 percent of the world's fisheries have been pushed to or beyond their
biological limits and are in need of strict management plans to restore them. Several
important commercial fish populations (such as Atlantic bluefin tuna) have declined to the
point where their survival as a species is threatened. The fisheries situation in the
Philippines is no exception.

13. Targeted fishing of top predators (such as billfish, sharks and tuna) eventually disrupts
marine communities, causing increased abundance of smaller marine animals at the
bottom of the food chain (sardines, anchovies). This in turn has impacts on the rest of the
marine ecosystem, such as the increased growth of algae and threats to coral reef health.

14. Overfishing is also closely tied to bycatch, another serious marine threat that causes the
needless loss of billions of fish, along with marine turtles and cetaceans.

15. Smaller fishing/harvesting operations in municipal waters may result in habitat


deterioration, loss of critical or biodiverse habitats (spawning grounds, coral reef),
replacement of native species.

16. Coastal communities in the Bangsamoro area depend on fish as their primary source of
protein. Overfishing threatens their long-term food security.

Soil Degradation and Erosion

17. Soil degradation and erosion is another major environmental issue that affects not only
agricultural productivity but also marine productivity. The National Action Plan to combat
desertification, land degradation, drought, and poverty for 2004-2010 indicates that about
5.2 million hectares of agricultural lands are seriously degraded resulting to 30 - 50%
reduction in soil productivity and water retention capacity90. Without measures to protect
the top soil, sediments are carried by water flow and deposited in receiving bodies of water
such as the rivers, lakes, other wetlands, and the sea. Agricultural lands that have been
used for intensive monocrop plantations also face potential issues related to: (1) depletion
of nutrients due to removal of top soil, and (2) introduction of persistent pollutants from
pesticides and other agrochemicals.

18. Land conversion and soil erosion may reduce the ability of the environment to cope with
climate change. For instance, siltation may limit drainage of watershed, potentially
compounding effects from climate change. NGOs present at the FGD in Davao, February1
2015 stated that any development should determine whether climate change may be
affected by the project or vice versa and mitigation measures should be included in the
project.

19. Because of its extensive root system, oil palm grows well on uneven, leached soils that
are generally less well suited for growing annual crops such as cereals; there is thus less

90
Asio, V. et al. (2004) A review of soil degradation in the Philippines. Annals of Tropical Research 31[2]:69-
94(2009) accessed from http://annalsoftropicalresearch.com/pdf%20file/full%20papers/Asio%20et%20al.pdf on 24
August 2014
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direct competition with these crops91. Clearing of large tracts of land on uneven and
leached soils could result in large scale erosion and downstream siltation problems.

20. In the Focus Group Discussions, residents of areas near the banana plantations in
Maguindanao have shared their observations on the siltation of the river and tributaries
and identified the plantations to have aggravated the situation. There were also
observations that in downstream areas such as parts of the Ligawasan Marsh are already
extensively silted. The Mindanao River Basin Masterplan indicated that the ability of the
Ligawasan Marsh as a natural retention basin preventing occurrences of flash floods in
low lying areas has been reduced due to increased siltation.92

21. The clearing of forests to give way to plantations and the resulting increase in
sedimentation are considered as some of the factors that have caused heavy damages
from flooding during typhoons and heavy rainfall events such as during Typhoon
“Sendong” and “Pablo”. Rainwater infiltration into groundwater decreases as vegetation is
removed, resulting in larger amounts of runoff overall and larger fluctuations of
discharge93. Environmental NGOs have claimed that the continuing forest denudation due
to the establishment of industrial plantations and the siltation of the rivers and wetlands
have exacerbated the flooding in Mindanao.94

22. Water erosion is not the only form of soil loss. Clearing of vegetation can also increase
wind erosion.

Typical soil surface of banana plantation without Use of cover crops to limit soil erosion, Bukidnon
erosion control
Photograph courtesy of E. Panti, Unifrutti
Philippines

91

http://www.ifc.org/wps/wcm/connect/159dce004ea3bd0fb359f71dc0e8434d/WBG+Framework+and+IFC+Strategy
_FINAL_FOR+WEB.pdf?MOD=AJPERES
92
Woodfield Consultants (2013). Mindanao River Basin Integrated Management and Development Master Plan.
Situational Analysis Report Volume VIII
93
Jermar. Water Resources and Water Management. Developments in Water Science: 28. 1987.
94
http://newsinfo.inquirer.net/351665/green-groups-blame-palm-plantations
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Maintenance of native vegetation of the area, Bukidnon Maintenance of vegetation strips and buffer as erosion barrier,
Bukidnon

Lower Water Availability

23. Water is an important production factor in industrial plantations. While some of the
plantations are rain-fed (palm oil and cassava), other crop production systems require
irrigation. The sources of irrigation can be from groundwater abstraction or from surface
water. The Mindanao River Basin Master Plan (2013) cited a study done by JICA in 1998
indicating that the projected water demand for 2025 is still far below the water resources
potential of the Mindanao River Basin due to good rainfall within the region. However, the
clearing of the upper catchments of the river basins, the conversion of forestlands, and the
siltation of wetlands may have affected the recharge potential of the groundwater
reservoirs and watersheds affecting the water availability in the near-term. In addition, the
establishment of agribusiness ventures in the region may increase the demand for water.

24. DAF-ARMM has identified high value crops, including rubber, palm, coconut, cocoa,
coffee, banana, seaweed, mangosteen, durian, cassava. At this stage it is unclear how
different crops would affect water availability.

Water Pollution (Area source from fertilizers and agrochemicals)

25. Excess fertilizers and other agrochemicals such as pesticides, herbicides, fungicides and
nematicides can become significant pollution risks particularly in a monocrop plantation.
The contaminants may infiltrate into groundwater aquifers. In addition, run-off from a
plantation especially during extreme precipitation events may carry residues of
agrochemicals including excess nutrients such as nitrogen and phosphorous into
downstream water bodies as well as adjacent lands.
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Manual removal of weeds in Bukidnon banana
plantation. Photograph courtesy of E. Pantu,
Unifrutti Philippines

26. The most recent baseline on water quality was done in the course of preparing the
Mindanao River Basin Master Plan in 2013. A total of 12 sampling sites were established,
of which seven (7) were within or very proximate to the Bangsamoro region. Thirteen
quality parameters were tested including nutrients, heavy metals and pesticide residues.
The results of tests for nutrients and heavy metals showed that the water samples were
within the DENR standards while pesticide residues were not detected. Survey of literature
also did not yield any reported notable incident of pollution events in bodies of water in the
Bangsamoro region – whether eutrophication or consequent fish kill events. The test
undertaken as part of the river basin master planning however is a one-off testing
(capturing water quality data at one particular time only) and therefore cannot make any
conclusions on water quality impacts from fertilizer and agrochemical use.

27. Fertilizer and pesticide use varies with the type of crop. Oil palm is at least five times more
productive in terms of vegetable oil per hectare than other oil bearing crops and has the
lowest requirement for inputs of fuel, fertilizers and pesticides per tonne of production55.

Waste Management

28. The challenge in managing waste from farming operations is due to the nature of the
waste stream: mostly biomass and in large quantities. Companies are faced with problems
related to where and how to dispose this waste stream. An added layer of complexity in
the management and disposal of waste is the presence of toxic materials that are mixed
with the waste stream. These materials can have pesticide residues posing significant
concerns on contamination and exposure. One issue that was presented during the focus
group discussion was poor management of the waste disposal facility where waste
biomass was mixed with other materials containing pesticides. Access to the disposal
facility was not restricted to the residents increasing the chances of exposure. There are
some good practices in waste management such as the use of waste biomass for
mulching. Waste plant materials are also retained in the field as additional organic content
of the soil during fallow period.
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Plant materials are left in the field during fallow period, Bukidnon Waste plant materials used as mulch to control weeds, Bukidnon

Health Impacts from Exposure to Pollution

29. One of the controversial issues related to plantations is the aerial spraying of pesticides.
This mode of application of pesticides is considered as having adverse effects on the
health of residents near plantations due to increased exposure to toxic substances such
as pesticides and other agrochemicals. Various interest groups including NGOs, the
media, and communities have claimed the causal relationship between aerial spraying and
cases of morbidity in the plantation areas. During FGDs with NGOs and communities in
Maguindanao, there were allegations of aerial spraying that has caused skin diseases
among the residents (In one of the discussions, there was even an insinuation linking
possible exposure to pesticides due to aerial spraying to incidences of breast cancer in a
Barangay).

30. There were landmark cases filed on the use of aerial spraying particularly in the
Compostela Valley that has further heightened the tension between the industry and the
environmental advocacy groups. So far, the local governments of Bukidnon, North
Cotabato, and Davao City have passed ordinances banning aerial spraying. The crop
production systems in these areas present a viable way of controlling pest population
without the use of aerial spraying. A notable case is the banana plantations in these areas
where pesticides are applied (if necessary) through ground spraying – reducing the
exposure of communities to the chemicals.

B. Downstream Environmental Risk

Pollution

31. Pollution from secondary processing facilities consists of air pollution and wastewater
pollution.

32. The palm oil mill of Agusan Plantation Inc (Agumil) in Malabang, Agusan del Sur
generates air emissions from boilers and incinerators, and wastewater effluent. Anaerobic
digestion of oil mill effluent resulting to generation of methane. The captured methane is
used as fuel for its boilers however during down time, the methane is flared. Wastewater
treatment system uses activated sludge and the treated wastewater is reused for fruit
washing
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33. Similar waste management program has been observed in Matling Corporation in Lanao
del Sur, La Frutera in Maguindanao and Unifrutti Philippines operations in Bukidnon.
Notable practices in these organizations are the re-use of treated waste water for washing
operations.

34. The sardine and tuna canning plants of Permex in Zamboanga also generate air
emissions and wastewater. Permex uses local coal with low sulfur content to generate
power. A gas flare operates at night to burn off methane. Wastewater is treated in a
wastewater treatment plant (anaerobic treatment): BOD is reduced from 1,000 mg/L BOD
in influent water to 100 mg/L in effluent water. The treated wastewater is discharged in the
sea. The visit of the plant was during down time: the receiving water looked clean with fish.
This indicates that any impacts from the operating plant on water quality and marine biota
are likely short-term.

Waste Management

35. Another significant aspect of waste management in agribusiness is the generation of


waste in the downstream processing such as washing, milling and extraction, and
purification.

36. The palm oil mill of Agusan Plantation Inc (Agumil) in Malabang, Agusan del Sur
generates several waste streams such as solid waste from empty fruit bunch and boiler fly
ash. Agumil implements several measures to reduce the waste generated by the milling
operations including the following:

 The empty fruit bunch waste is an area of concern in terms of its disposal as it has
high moisture content to be used as biomass fuel and has residual oil that maybe
harmful as soil mulch.
 Other solid wastes such as milled biomass are used as fuel for the boilers. Similar
fuel will be used for the power plant that will be constructed.

37. Similar waste management program has been observed in Matling Corporation in Lanao
del Sur, La Frutera in Maguindanao and Unifrutti Philippines operations in Bukidnon.
Notable practices in these organizations are the production of organic fertilizers by
composting (in the case of La Frutera, vermicomposting).

38. Waste at the sardine and tuna cannery Permex consists of fish waste. This waste is used
to make fish meal and is sold in the market. Therefore no solid waste is produced.

C. Environmental Risk of Agribusiness Supporting Facilities

39. Agribusiness supporting facilities either expand primary production (such as irrigation
systems, fish farming facilities, fishing boats) or provide utilities for primary production and
facilitate secondary processing (power plants, wastewater treatment plants, waste
treatment facilities, slaughterhouse).

40. Agribusiness supporting facilities that expand primary production have the same impacts
as listed above under Upstream Environmental Risk.
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41. Agribusiness supporting facilities that provide utilities for primary production and facilitate
secondary processing have similar impacts to those listed above under Downstream
Environmental Risk.
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V. SOCIAL RISKS AND POTENTIAL IMPACTS

42. The social assessment surfaces both positive and negative potential social impacts of
agribusiness in the Bangsamoro territory.

43. The social risks and potential adverse impacts of especially large agribusinesses are
caused by three main factors: problematic land administration system resulting into
insecure land tenure and many land conflicts; remote location of many people, especially
the IPs, and poor road system; and lack/inadequate access to basic services, including
education.

A. Risks and Potential Negative Impacts

Displacement of Indigenous People

44. The significant presence of indigenous people in all provinces of ARMM triggers World
Bank OP/BP 4.10 Indigenous People Safeguard Policy and the government‟s RA 8371 or
the Indigenous People‟s Rights Act (IPRA) of 1997 and Muslim Mindanao Autonomy Act
(MMAA) 241 or Tribal People‟s Rights Act of 2008 of ARMM. While the WB IP Safeguard
Policy requires mere free, prior and informed consultation; IPRA and the Tribal People‟s
Rights Act mandate free, prior and informed consent of indigenous people for any projects
that would affect them. These safeguard policies seek to ensure that development
interventions fully respect the dignity, human rights, economies and cultures of indigenous
people.

45. Three situations of the IPs in ARMM put them at risk of being adversely affected especially
by large agri-business investments, namely: (i) insecure land tenure due to the non-
implementation of IPRA in ARMM – except for Sama Bangingi in Basilan, IPs in other
areas of ARMM do not possess legal instrument of their land tenure rights – and
conflicting ancestral domain claims between Moro and non-Moro IPs in Maguindanao ; (ii)
remote location from center of governance and market coupled with poor road
infrastructures to/from their communities; and (iii) lack or inadequate access to basic
services, including education, health, production development, market and legal
assistance.

46. According to the IPs who participated in the focus group discussion for this ESIA, the
industrial tree plantation of Consunji‟s Magsaysay and Sons Company in Esperanza,
Sultan Kudarat, which covered Barangay Tubak, Ampatuan, Maguindanao, is an example
of how large agribusiness can displace them from their ancestral lands. The area was
acquired by the company through an Industrial Forest Management Agreement (IFMA)
granted by the DENR. Barangay Tubak is occupied and being claimed as ancestral
domain by the Dulangan Manobo tribe. In the first years of the plantation, the IPs were
prohibited from planting and harvesting in areas covered by the plantation. Their way to
and out of their barangay was also blocked by the plantation such that they had to befriend
the guards to get in and out of their area. In a report, the Human Rights Watch (1996)
said:95

95
Human Rights Watch (1996). The Philippines human rights and forest management in the 1990s. Vol 8, No. 3
(C), April 1996. Retrieved February 10, 2015 from http://www.hrw.org/reports/1996/Philippi.htm.
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“In June 1995, members of the Tiruray tribe complained to members of the press
that guards hired by timber tycoon Victor Consunji had been trying to force them off
their ancestral lands in Maguindanao. A tribal leader told a correspondent for the
Manila-based newspaper Today that Consunji's Integrated Tree Products Incorporated
(ITPI), which had applied for an IFMA for that area, wanted them to leave "so they can
prove to the DENR that this is a no-man's land." Members of the tribe also alleged that
guards for ITPI and for Cotabato Timberland Company Incorporated, another Consunji
holding, had destroyed farmlands and strafed houses in the area to intimidate
residents into leaving. The DENR office for the Autonomous Region of Muslim
Mindanao decided in June 1995 not to act on the application, but only to forward it to
Manila for consideration.

Guards working for Consunji operations have been linked to numerous abuses
against indigenous populations in the late 1980s and 1990. During the late 1980s, a
3,000-man private army maintained by Consunji's Magsaysay and Sons company on
an industrial tree plantation in Esperanza, Sultan Kudarat, was responsible for a three-
month reign of terror against Teduay, Dulangan Manobo, and Lamabangian peoples
who resisted the company's tree-planting activities. A series of fact-finding missions to
the area in late 1989 and early 1990 documented widespread instances of extrajudicial
killing, destruction of property, and forced evacuation of residents who refused to plant
trees for the company.In one case, a resident of sitio Balatian, who returned to his
village shortly after it was evacuated in late 1989, was captured by Magsaysay and
Sons guards, tied hand and foot, beaten, and beheaded. In November of that year,
Magsaysay and Sons' application to convert its ITPLA to an IFMA was granted by the
DENR. Consunji was also granted other IFMAs for lands in Zamboanga City in 1991
and Sultan Kudarat in April 1993.”

Today, according to OSCC Director Fatima Kanakan, the situation of the IPs is better
because Consunji‟s company has allowed the IPs to plant inside the plantation (in their
claimed ancestral land) and their community has been selected by the ARMM Regional
Government as an area of their convergence programs.

47. Moreover, their insecure land tenure, remote location, lack of education, poor organization,
and lack of track record in business operations may disqualify them from acquiring loans
from Land Bank and lead to their further exclusion and marginalization.

48. In case they succeed to get loans, the expressed fear of the IPs is being left heavily in
debt because of: (i) business failure due to lack of support services as what happened to
their planting of fruit trees under the National Greening Program of the DENR and lack of
access to market due to poor road infrastructure; and (ii) capture of the benefits by a few
due to poor organization and lack of education of many.

Involuntary Resettlement

49. The increase in demand for land may lead to land grabbing, displacement and increase in
land-based conflict. Large agribusiness may: seek for reconsolidation of lands distributed
to small farmers under CARP; enter lands claimed by indigenous peoples; pressure small
landholders with the help of traditional leaders to lease their lands at low cost; or deceive
small landholders into entering unfair contracts that may lead to land dispossession. Some
participants shared anecdotal evidences supporting these apprehensions, but cautioned
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the ESAteam from mentioning names of companies and individuals due to need for
verification.

Increase in Land Conflict

50. Entry of large agribusiness may exacerbate land conflicts; and intensified land conflict may
bring losses to agribusiness companies. According to DTI-ARMM, one example is the
banana plantation of Del Monte Fresh Produce, Inc. (through its subsidiary Delinanas
Development Corp.) in the Municipality of Datu Abdullah Sangki in Maguindanao. The
agribusiness, which was expected to develop 3,000 hectares of banana plantations and
generate 4,500 jobs, was suspended due to land conflict.

Insignificant Economic Improvement due to Low Wage Rate and Land Rent

51. Though large agribusiness has been cited for their contribution to job generation and
peace and development in their host communities, this improvement is insufficient to uplift
the poor from poverty. One possible reason, which needs to be verified, is the wage rate of
workers. A worker of La Frutera banana plantation in Buluan, Maguindanao said that daily
paid workers of the plantation earn around PhP 127 to PhP 150 for an eight-hour work a
day. This is way below the daily minimum wage rate of PhP 250 in ARMM set by the
Regional Tripartite Wages and Productivity Board effective February 1, 2014. In the
assessment of non-governmental organizations, the conditions of many people in the host
communities of La Frutera, though undeniably better with the entry of the company, are
generally still poor.

52. Furthermore, the banana plantation stands on more than 1000 hectare land, around 576
hectares of which are owned by the family of Datu Paglas and the rest by more than 200
landholders. These lands are leased to La Frutera for 10 to 20 years. The land rent at the
start of the plantation in 1997 was Phil Pesos 3,500 per hectare per year. Today, the rent
has increased to PhP12,000 to PhP15,000 per hectare per year or PhP 1,250 per hectare
per month.

53. According to interviewed former contract growers of Dole South Cotabato, a worker in the
company-managed asparagus farm earns a minimum wage of PhP 150 a day; while under
contract growership, a worker, due to limited funds of the contract grower, earns only PhP
70 a day. Still, people accept the work due to lack of alternative jobs. Because of Dole‟s
grading/classification system for harvested asparagus, contract growers end up earning
less because most of their produce is given low grades and others rejected. With this
system, in the analysis of the contract growers, the company in the end earns 90% of the
whole income.

Less Participation and Benefit of Women in Agri-business

54. Females comprised the majority of the total population and working age population in
ARMM in 2010. In 2013, females continued to compose the majority of the working-age
population. Yet, of those employed in ARMM in 2013, only 26.8% were females. Females
also compose only 24.62% of the total agricultural workforce in 2012. Given these figures,
gender-related development index in ARMM provinces expectedly show that the main
area of gender disparity, using the framework of the Human Development Network as
lens, in ARMM is in income generation. This problem may continue in HARVEST if with no
proactive intervention.
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Further disempowerment of the poor if with No Effective System for Receiving and
Redressing Grievances from the Communities

55. When asked for empirical studies on the adverse effects of large agribusiness,
representatives of NGOs said that there have been no such initiative and people are afraid
to air their complaints because of the general fear of earning the ire of dominant or
powerful individuals and groups supporting these companies.

56. A group of participants in Basilan mentioned a problem where a former employee of Land
Bank forced a borrower to sell produce to him/her as a condition of loan approval. Though
this employee is no longer with Land Bank, the group suggested the inclusion of measures
to avoid or immediately redress this kind of problem if encountered.

B. Positive Impact

57. In spite the risks and adverse impacts, positive contributions of agribusiness companies
were mentioned by interviewed stakeholders and those who participated in the focus
group discussions for this ESIA.

Generated Jobs and Increased Economic Opportunities in Poor Communities

58. The stakeholders – management, workers, landowners, and civil society organizations in
communities – of La Frutera, Inc. in Buluan, Maguindanao were one in saying that the
economic situation of the people in the area as well as the revenue of the local
government units improved with the banana plantation. Prior to the start of the
agribusiness, the host communities were war-torn due to the armed conflict between
government forces and Moro rebel groups and unsafe due to high incidence of crimes.
The interviewed representatives of stakeholders agreed that the presence of the banana
plantation diverted the attention of the people to productive economic activities. Thus, the
case of La Frutera in Buluan, Maguindanao has been cited as a proof that the introduction
of economic activities can help bring peace in conflict-affected communities.

59. The agribusiness of Matling Corp in Malabang, Lanao del Sur provides sure income to
three types of workers: (i) daily paid workers of Matling Corp who each receives around
P250 a day; (ii) workers for land preparation and planting who can be anyone in the
barangay and are paid by hectare of land planted (the scoping team found most of these
workers to be women; they said that they earn around PhP 200 to PhP 300 a day); and (iii)
contract growers. The contract growers, on top of their earnings from contract growership,
can also choose to work for the company during land preparation and planting.

60. Permex Producer and Exporter Corporation, a producer and exporter of canned sardines
and tuna, in Zamboanga City is able to provide sure income not only to small fishers
(sources of fish) but also jobs to 975 to 1,500 workers, 75% of whom are women.

Restored Productivity of Lands Abandoned because of Armed Conflicts

61. According to the leaders of the Moro Returnees Farmers Multi-Purpose Cooperative,
which is a partner contract grower of Agumil Philippines, Inc. in Buluan, Maguindanao, the
230 hectares of land that their 55 members have planted with palm oil were formerly
abandoned due to armed conflict. The offer of Agumil to act as guarantor of the co-
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operative‟s agricultural loan from Land Bank as well as to provide production assistance
and sure market under a Production Technical Marketing Agreement (PTMA) drove them
back to their lands in 2008. Today, the formerly abandoned area – located at Sitio Tukay
Baluin of Barangay Lomoyon, Colombio, Sultan Kudarat – has become a productive and
peaceful community again.

Enhanced confidence in farming due to improved farming technology and sure market

62. The major crop in the plantations of Matling Corp is cassava. Their partner is the Matling
Multi-Purpose Co-operative (MPC), whose majority of members are 667 agrarian reform
beneficiaries owning 1,716 hectares of the plantation. The agribusiness arrangement is
that the Matling Corp is responsible for land preparation, planting, and marketing of
processed products (i.e., starch); while the contract growers, many of whom are the
members of the co-operative, are in-charge of plant maintenance, harvesting and
transporting the produce to the processing plant of Matling Corp. The cassava plantation
uses natural farming methods, such as, among others, resting the soil for a certain period
of time and planting legumes as a means for improving the nitrogen content of the soil.

63. Interviewed former and present contract growers of Agumil Philippines, Inc.; Matling Corp.
in Malabang, Lanao del Sur; Stanfilco, General Santos City; DOLE South Cotabato; and
Pioneer Hi-Bred Phils., Inc. all mentioned exposure to farming technology for high value
crops and the presence of sure market of produce as among the advantages of contract
growership with agribusiness companies.

64. Contract growers in Polomolok shared that if farming is self-financed and the farmer has
no loans from the company or banks, then the earning from agribusiness can be huge. An
interviewed farmer said that he bought a car out of his earnings from papaya contract
growership with Dole.

Added Social Services Provided to Host Communities

65. Some agribusiness companies, such as the La Frutera Inc. and Matling Corp., provide
non-economic assistance to their host communities. For instance, community assistance
of La Frutera includes, among others, the repair of school buildings, donation of water
pumps and toilet bowls, and community health services. Matling Corp. runs feeding
centers for children and community hospital, and supports public schools, among others.
Matling Corp. also assists the barangay council of Matling to implement a barangay
ordinance obliging young people 18 years of age and above to either study or work in the
plantation. Thus, the barangay chair said that they have zero unemployment rate because
those who cannot comply are asked to leave the barangay.
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VI. RECOMMENDATIONS

A. Environmental Safeguards

1. Environmental and social management framework (ESMF) as the safeguard instrument.


The HARVEST will finance projects and activities that have yet to be identified and
therefore the predicted impacts cannot be determined at this stage. As the appropriate
safeguard instrument in this circumstance, the ESMF sets out the principles, rules,
guidelines and procedures to assess the environmental and social impacts. The ESMF
will contain measures and plans to reduce, mitigate and/or offset adverse impacts and
enhance positive impacts, provisions for estimating and budgeting the costs of such
measures, and information on the agency or agencies responsible for addressing project
impacts.

2. Each sub-project to be funded by the HARVEST needs to go through a screening process,


consistent with the World Bank, JICA, and LBP procedures, as may be defined in the
environmental and social management framework (ESMF). If the proposed projects are
required to undertake an EIA as permit conditions of the Government, the project
proponent needs to provide sufficient details to meet these requirements according to the
Government and LBP Due Diligence process. In particular, the project‟s impact on natural
habitat, forest and physical cultural resources needs to be included.

3. Pest Management. For projects anticipated to have pest management issues typical of
mono-culture cropping systems, the requirements of the Bank‟s on Pest Management (OP
4.09) will need to be met. The policy on Pest Management highlights the need to promote
integrated approaches in pest management particularly on Bank-financed projects. If the
projects are known to promote the increased use of pesticides as well as the health and
environmental risks, maintain unsustainable pest management practices, or will procure
pesticides and application equipment, the proponents will be required to include pest
management issues in the EA, develop a pest management plan (PMP), and the list and
details of pesticides that are authorized for procurement under the project. It also becomes
strategic for the project to avail, if feasible the Department of Agriculture‟s (DA) Integrated
Pest Management (IPM) program, KASAKALIKASAN. The program trains, empowers and
develops farmers‟ skills in making critical and informed decisions towards a more
productive, profitable and sustainable crop production system. It employs an experiential
learning approach through the Farmer Field Schools (FFSs) to enable farmers to practice
IPM.

4. Forests. For projects that are expected to have impacts on the health and quality of forests
as well as the rights and welfare of its dependent communities and may bring about
changes in the management practices of forests, the Bank‟s Policy on Forest (OP/BP
4.36) applies. Further assessments may be required from the project proponent including
adequacy of land allocation for the management, conservation, and sustainable
development of forests, including any additional allocations needed to protect critical forest
areas. Other safeguards policies related to the protection of the welfare of communities
including involuntary resettlement (OP/BP 4.12) and Indigenous Peoples (OP/BP 4.10) will
also be applied.

5. Natural habitats. Projects involving establishment of plantations have potential to cause


conversion of natural habitats in the region. Identified during the scoping, there are 10
protected areas in the region with specific legal declarations totaling an approximate area
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of 184,000 hectares. Some of the biggest watershed reservations and wetlands are
located in this region. Where conversion is predicted, the requirements of the Bank‟s
policy on Natural Habitat (OP 4.04) will need to be complied with including acceptable
mitigation measures and the conservation of compensatory natural habitats.

6. Each project to be funded by the HARVEST needs to include a management plan, with the
level of detail appropriate to manage the identified impacts of the project. The
management plan may include among others specific environmental mitigation measures
such as soil and water conservation, waste management, and pollution control and
minimization, where applicable and appropriate to the scale of the project and applicable
pollution control standards. The mitigation measures will cover the various phases of the
project including pre-construction, construction, and operation if the project involves
infrastructure development.

7. The projects will need to comply with applicable legislations and regulations including
fertilizer and pesticide use, water use rights and permits, environmental clearance
certificate and its approval conditions, licenses to operate fishing vessel/gear, fishing bans,
etc. Where appropriate and feasible, proponents may need to take advantage of the
benefits provided by environmental management systems (EMS) and certifications.
Appropriate EMS and certifications provide companies with a systematic approach to
compliance and a structured way to manage their environmental aspects and impacts.
These provide companies with benefits that range from operational efficiency,
management of risks, and improved compliance. For large scale projects, environmental
management systems consistent with international certification such as ISO 14001,
Rainforest Alliance, HACCP, FDA, Dolphin Safe and others can be considered.

8. Projects to be funded by the HARVEST need to consider and avoid areas that are known
to have geological hazards (topographical and soil) as outlined in the baseline conditions,
such as: steep slopes and potential soil liquefaction. If that is not possible, additional
mitigation measures should be implemented to avoid/minimize potential environmental
impacts.

9. The experiences of the agribusiness companies that were studied for the HARVEST
project suggest the need to foster a keen sense of environmental responsibility at all
scales. This entails creating an enabling environment that will incentivize good corporate
citizenship, promote self -regulation and reporting. Promoting the adoption of
environmental management systems can be a good platform to achieve greater sense of
environmental responsibility among the enterprises.

10. The national and the regional government units may need to identify in detail the extent of
delegation of responsibilities and authorities related to environmental management. For
example, the lack of clarity in the present set-up on the issuance of Environmental
Compliance Certificates (ECCs) by the ARMM presents a significant hindrance in ensuring
that the adverse environmental impacts of developments in the ARMM are managed and
mitigated.

11. There are observed inconsistencies and deficiencies in the set of information that make up
the environmental baselines of the region – for example, the forestry and land statistics,
biodiversity, and air and water quality. Adequate environmental baselines can support a
robust monitoring and evaluation system that is critical for any safeguard mechanism.
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12. The DENR-ARMM is faced with capacity issues as manifested by the implementation
deficit of environmental laws and regulations. While it becomes imperative to strengthen
the capacity of the DENR to enforce and implement environmental policies, the LGUs and
private sector including the civil society will also have to be trained and empowered in
environmental policies and safeguards. The LGUs are in the front-line in addressing the
environmental impacts of development and at the same time tasked with the responsibility
of mainstreaming environment and the local development.

B. Social Safeguards

Given the cited social risks and potential impacts of HARVEST, the participants of the
ESAactivities and the ESAteam recommend the development of the following social safeguard
instruments:

Indigenous Peoples Policy Framework

13. For subprojects located in IP ancestral lands/domains or projects affecting IPs (See Annex
A for locations of IPs in ARMM):

13.1 Require the following from sub-borrowers before approval or release of loans:

 Compliance with the provision of the Indigenous People‟s Rights Act of 1997 and
ARMM Tribal People‟s Rights Act of 2008 on seeking free, prior, informed consent of
indigenous peoples (IPs) through securing a certification from the Office of Southern
Cultural Communities (OSCC) for IPs in Maguindanao, Lanao del Sur, Sulu and
Tawi-tawi and from the National Commission on Indigenous People (NCIP) for IPs in
Basilan that the affected IPs in covered area(s) agree in consensus with a proposed
sub-project; and

 Provide measures, such as representation of IPs in multi-stakeholder structures that


will be established for the HARVEST, that will ensure that the IPs in covered areas
will benefit rather than be disadvantaged by the agribusiness;

13.2 Integrate in Component 2 of HARVEST, Capacity Building and Institutional


Development, Monitoring and Evaluation, the:

 Development of capabilities of selected groups or associations or co-operatives of


IPs in agri-business development and operations, and marketing (e.g., value/supply
chain analysis). Conduct a consultation with IPs in the development of criteria for the
selection of these groups.

 Coordination with civil society organizations and other government agencies


operating in areas of sub-borrowers for convergence of services to IPs;

 Setting up of multi-stakeholder monitoring and evaluation structure in municipalities


where large agribusiness companies and co-operatives will be supported to oversee
the progress of agri-business and provide quick and appropriate interventions on
problems or conflicts affecting the IPs.
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Resettlement Policy Framework

14. The Resettlement Policy Framework will be prepared in case land acquisition for agri-
business will require transfer or resettlement of landholder(s) or occupants. This social
safeguard instrument shall ensure that:

 Resettlement is voluntary and necessary;

 Affected landholders or occupants, regardless of their land tenure situation (informal


or formal; with or without land titles) are consulted and agree with the terms of the
resettlement (e.g., fair land lease/rental cost, just compensation and assistance, and
others); the guiding principle is informed choice of affected landholders or occupants;

 Multi-stakeholder structure is established to ensure compliance with fair and proper


guidelines and procedures for land acquisition and resettlement, and to prevent
exacerbation of existing land conflicts in affected areas; members of this structure
shall be determined in consultation with the local government unit (LGU), and may
include representatives of the LGU, civil society organizations (e.g., NGOs operating
in the area or assisting affected small landholders and/or occupants, and people‟s
organizations), concerned government line agencies (e.g., DENR, DAR, NHA, and/or
others that have jurisdiction over or programs/projects related to affected land) and
other groups or individuals (e.g., datu, respected elders, mediators, etc.) with
knowledge of land conflicts in the area;

 A sub-borrower submits a resettlement action plan, which reflects the above


guidelines, and properly implements this plan prior to loan approval.

Grievance Redress and Social Accountability System

15. The purpose of installing a grievance redress and social accountability system is to
prevent emergence of new conflicts or exacerbation of existing conflicts by ensuring
responsiveness of the Land Bank of the Philippines to grievances and concerns of
stakeholders and fostering social accountability. This system may include:

 Proactive guidelines or measures to prevent conflicts, such as:


o Peace and Conflict Analysis (PCA) during the social preparation phase of an
agribusiness. In doing PCA, selected stakeholders: (i) assess if and how a
proposed agribusiness can be conflict-creating or peace-enhancing; and (ii)
propose measures to transform the agri-business into a peace-enhancing
endeavour. The social safeguards team of the Land Bank should thus be trained
in conducting the PCA.
o Identification and consultation with respected individuals (e.g., datu, elders,
mediators) and groups/organizations (e.g., LGUs, NGOs, POs) that have
knowledge of the social condition in the location of proposed agribusiness;
o Policy requiring compliance with minimum wage rate for agribusiness workers
and observance of informed choice in entering into a lease agreement and
resettlement arrangements;
o Information dissemination on this grievance redress system;
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 Procedures and mechanisms for filing, receiving and responding to complaints and
grievances against HARVEST in general and against each supported agri-business;

 Procedures for helping illiterate complainants; and

 Grievance redress or conflict resolution/management structures and procedures.

Gender Mainstreaming Framework

16. In compliance with Republic Act (RA) 9710 or the Magna Carta of Women of 2009, and
RA 7192 or the Women in Development and Nation Building Act of 1992, the Land Bank of
the Philippines shall formulate its gender mainstreaming framework and strategy for
HARVEST. The general objective is to promote meaningful participation and equitable
benefit of women and men from the HARVEST and from supported agri-business
subprojects.

17. Promotion of women‟s participation in HARVEST shall be in accordance with Muslim


Mindanao Autonomy Act 280 or the ARMM GAD Code, RA 9710 or the Magna Carta of
Women (MCW) and RA 7192 or the Women in Development and Nation Building Act.

18. The gender mainstreaming framework and strategy will push for the integration of gender
in the manual of operations of the Land Bank of the Philippines for HARVEST. This will
include, among others, the:

 Collection and analysis of sex-disaggregated data and gender-related information,


including barriers (if any) to participation of women in agribusiness;
 Development of a Gender and Development (GAD) plan for HARVEST that may
include, among others:
o The formulation of policy that will require lending centers of Land Bank to support
the gender mainstreaming strategy of HARVEST;
o Capability development in gender sensitivity and gender mainstreaming
especially in a tri-people (Moro, Lumad, Christian) setting;
o Ensuring participation of both women and men in multi-stakeholder structures for
consultation, and subproject monitoring and evaluation that will be established
under the HARVEST;
o Allocation of at least 5% of the total budget of HARVEST for promoting gender
equality and women‟s empowerment in agribusiness through supporting agri-
business projects of selected/qualified women‟s associations (as part of
Component 1) and training of agri-business operators in gender sensitivity and
gender mainstreaming (as part of Component 2).
 Inclusion of gender sensitive indicators (e.g., number of women and men who
participate and benefit from the supported agribusiness subproject) in monitoring and
evaluating supported agribusiness subprojects.

19. To ensure effective and coordinated implementation of this gender mainstreaming


framework, the HARVEST is proposed to:

 Have a gender specialist or form a gender focal team for HARVEST;


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 Tap Mindanao CSOs with expertise in Gender and Development in orienting sub-
borrowers on how to promote gender equity in agribusiness located in tri-people
communities; and
 Put up a reward system for most gender-sensitive agribusiness subproject.

General Social Management Framework: Other Recommendations

20. In view of the history of poverty and conflict situation in ARMM and given their
apprehensions of large agribusiness companies, many participants from civil society
organizations proposed the following:

 Prioritization of social enterprises that are: primarily beneficial to the poor, respectful
of the culture of the tri-people of ARMM (e.g., halal and Islamic culture, indigenous
people‟s culture), conflict-sensitive, peace-enhancing, environment-friendly,
promotive of diversified model of agriculture, and climate-resilient;
 Development of the capacity of small sub-borrowers(e.g., small landholders or
fishers associations or co-operatives; contract growers) in enterprise development,
negotiating for fair contracts and marketing -- this may be incorporated in
Component 2 of HARVEST;
 Inclusion of measures to help potential small sub-borrowers comply with the lending
requirements of Land Bank;
 Tapping the services of civil society organizations in assisting small sub-borrowers in
the areas of capacity development, provision of legal assistance when needed, and
others;
 Mobilization of other government agencies in the provision of support services, such
as infrastructure development, access to water and electricity, marketing, and
others that will make social enterprises more viable;

21. In compliance with the government‟s Full Disclosure Policy as prescribed in DILG
Memorandum Circular 2012-141, the annual accomplishment report, including gender
accomplishment report, will be posted in publicly accessible and conspicuous places in
lending centers of Land Bank, as well as in the website of the Land Bank not later than the
end of January of the ensuing year.

Annex A. Locations and Population of Indigenous People in ARMM

I. Tawi-tawi

A. Municipality of Sibutu
TOTAL OF POPULATION
BARANGAY ETHNO-TRIBE 2010 2011 2012
1. Ambutong Sapal Sama 1,460 1,478 1,496
2. Datu Amilhaja Jaafar Sama 1,130 1,144 1,158
3. Hadji Iman Bidin Sama 2,054 2,079 2,104
4. Hadji Moktal Sulayman Badjao-Sama 1,420 1,437 1,455
5. Hadji Taha Sama 1,182 1,196 1,211
6. Hadji Mohammad Gaya Sama 1,403 1,420 1,437
7. Ligayan Badjao-Sama 1,204 1,218 1,233
8. Nunukan Badjao-Sama 1,779 1,801 1,823
9. Sheik Makdum Sama 1,213 1,228 1,243
10. Sibutu (Poblacion) Sama 1,524 1,542 1,561
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11. Talisay Sama 1,598 1,617 1,637
12. Tandubanak Sama 1,382 1,399 1,416
13. Taungoh Sama 1,275 1,290 1,306
14. Tongehat Badjao-Sama 1,063 1,076 1,089
15. Tongsibalo Badjao-Sama 1,090 1,103 1,117
16. Ungus-Ungus Sama 1,125 1,139 1,153

Sub-Total: 21,902 22,167 22,439

B. Municipality of Simunul

TOTAL OF POPULATION
BARANGAY ETHNO-TRIBE
2010 2011 2012
1. Bakong Sama 2,509 2,540 2,571
2.Manuk Mangkaw Sama 4,158 4,209 4,261
3. Mongkay Sama 1,863 1,886 1,909
4. Tampakan Sama 2,584 2,616 2,648
5. tonggosong Badjao-Sama 1,387 1,404 1,421
6. Tubig Indangan Badjao-Sama 3,543 3,586 3,630
7. Ubol Sama 1,652 1,672 1,692
8. Doh tong Sama 1,695 1,716 1,737
9. Luuk Datan Sama 2,463 2,493 2,524
10. Maruwa Sama 758 767 776
11. Pagasinan Sama 1,279 1,294 1,310
12. Panglima Mastal Sama 1,698 1,719 1,740
13. Sukah Bulan Sama 1,592 1,611 1,631
14. Timundun Sama 4,586 4,642 4,699
15. Bagid Sama 795 804 814
Sub-Total: 32,562 32,959 33,363

C. Municipality of Sitangkai
TOTAL OF POPULATION
BARANGAY ETHNO-TRIBE
2010 2011 2012
1. South Larap Sama 1,481 1,499 1,517
2.Sitangkai (Poblacion) Badjao and Sama 1,630 1,650 1,670
3. Tongmageng Sama 1,245 1,260 1,276
4. Tongusung Sama 1,832 1,854 1,877
5. Datu Baguinda Putih Badjao and Sama 2,065 2,090 2,116
6. Imam Sapie Badjao and Sama 1,680 1,700 1,721
7. North Larap Sama 2,134 2,160 2,184
8. Panglima Alari Badjao and Sama 4,312 4,365 4,419
9. Sipangkot Badjao and Sama 1,284 1,300 1,316
Sub-Total: 17,663 17,878 18,096

D. Municipality of South Ubian


TOTAL OF POPULATION
BARANGAY ETHNO-TRIBE
2010 2011 2012
1. Babagan Sama 760 769 779
2. Bengkol Sama 824 834 844
3. Bintawlan Sama 1,205 1,220 1,235
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4. Bohe Sama 914 925 936
5. Bubuan Sama 547 553 560
6. Bunay-Bunay Tong Sama 714 722 731
7. Bunay-Bunay Lookan Sama 1,350 1,366 1,383
8. Bunay-Bunay Center Sama 720 729 738
9. Lahad Dampong Sama 1,358 1,374 1,391
10. East Talisay Sama 709 717 726
11. Nunuk Sama 863 873 884
12. Laitan Sama 742 751 760
13. Lambi-Lambian Sama 986 998 1,010
14. Laud Badjao and Sama 729 738 747
15. Likud Tabawan Badjao and Sama 1,027 1,039 1,064
16. Nusa-Nusa Badjao and Sama 385 389 394
17. Nusa Sama 781 790 800
18. Pampang Sama 724 732 741
19. Putau Sama 369 374 379
20. Sollogan Sama 926 937 949
21. Talisay Sama 786 796 805
22.Tampakan Dampong Sama 1,011 1,023 1,036
23. Tinda-Tindahan Sama 1,017 1,029 1,042
24. Tong Tampakan Sama 981 993 1,005
25. Tubig Dayang Center Sama 1,024 1,036 1,049
26. Tubig Dayang Riverside Sama 1,057 1,070 1,083
27. Tubig Dayang Sama 1,139 1,153 1,167
28. Tukkal Sama 981 993 1,005
29. Unas-Unas Sama 671 679 687
30. Likud Dampong Sama 589 596 603
31. Tangngah Sama 812 822 832
Sub-Total: 26,701 27,020 27,365

E. Municipality of Tandubas
TOTAL OF POPULATION
BARANGAY ETHNO-TRIBE
2010 2011 2012
1. Baliungan Sama 528 534 541
2. Kakoong Sama 1,420 1,437 1,455
3. Kepeng Sama 1,102 1,115 1,129
4. Lahay-Lahay Sama 718 726 735
5. Naungan Sama 985 997 1,009
6. Sailangan Sama 1,329 1,345 1,361
7. Sapa Sama 2,132 2,158 2,185
8. Silantup Sama 2921 2,957 2,993
9. Tapian Sama 1228 1,243 1,258
10. Tongbangkaw Sama 1527 1,545 1,563
11. Tangngah (Tang. Un. Ma.) Sama 1757 1,779 1,801
12. Ballak Sama 712 720 729
13. Butun Sama 1319 1,335 1,351
14. Himbah Sama 270 273 276
15. Kalang-Kalang Badjao and Sama 700 708 717
16. Salamat Sama 739 748 757
17. Sibakloon Sama 1014 1,026 1,039
18. Tandubato Sama 813 824 833
ESA for the Proposed Harnessing Agribusiness Opportunities through Robust and Vibrant Entrepreneurship
Supportive of Peaceful Transformation (HARVEST) 93

TOTAL OF POPULATION
BARANGAY ETHNO-TRIBE
2010 2011 2012
19. Tapian Sukah Sama 924 935 947
20. Turuk Sama 928 939 951
Sub-Total: 23,066 23,344 23,630

F. Municipality of Sapa-Sapa
TOTAL OF POPULATION
BARANGAY ETHNO-TRIBE
2010 2011 2012
1. Baldatal Islam Sama 1,142 1,156 1,170
2. Lookan Bannaran Badjao and Sama 1,589 1,608 1,628
3. Tonggusung Bannaran Badjao and Sama 4,683 4,741 4,799
4. Butun Sama 930 941 953
5. Dalo-Dalo Sama 1,352 1,369 1,386
6. Palate Gadjaminah Sama 996 1,008 1,020
7. Kohek Sama 357 361 366
8. Latuan (Suasang) Sama 879 890 901
9. Lakit-Lakit Sama 1,321 1,332 1,353
10. Tangah (Laum Sikubung) Sama 1,021 1,046 1,072
11. Tabunan Likod Sikubung Sama 640 649 659
12. Malanta Sama 1,381 1,398 1,415
13. Mantabuan Tabunan Sama 952 964 976
14. Sapa-Sapa (Poblacion) Sama 1,765 1,787 1,809
15. Tapian Bohe Sama 824 834 844
16. Look Natoh Sama 652 660 668
17. Lookan Latuan Sama 1,127 1,141 1,155
18. Nunuk Likud Sikubung Sama 800 811 820
19. Pamasan Sama 618 625 633
20. Sapaat Sama 620 627 635
21. Sukah-Sukah Sama 785 794 804
22. Tapian Bohe South Sama 687 696 704
23. Tup-Tup Banaran Sama 782 791 804
Sub-Total: 25,903 26,229 26,574

G. Municipality of Mapun (CDT)


TOTAL OF POPULATION
BARANGAY ETHNO-TRIBE
2010 2011 2012
1. Boki Jama- Mapun 1,998 2,023 2,048
2. Duhul Batu Jama- Mapun 1,352 1,369 1,386
3. Kompang Jama- Mapun 1,012 1,024 1,037
4. Lupa Pula (Poblacion) Badjao and Sama 1,342 1,359 1,375
5. Guppah Jama- Mapun 1,985 2,009 2,034
6. Mahalo Jama- Mapun 2,147 2,174 2,200
7. Pawan Jama- Mapun 1,154 1,168 1,183
8. Sikub Jama- Mapun 1,328 1,345 1,361
9. Tabulian Jama- Mapun 1,072 1,086 1,099
10. Tanduan Jama- Mapun 1,121 1,135 1,149
11. Umus Mataha Jama- Mapun 2,095 2,121 2,147
12. Erok-Erok Jama- Mapun 813 823 833
13. Liyubud Jama- Mapun 2,547 2,574 2,610
ESA for the Proposed Harnessing Agribusiness Opportunities through Robust and Vibrant Entrepreneurship
Supportive of Peaceful Transformation (HARVEST) 94

TOTAL OF POPULATION
BARANGAY ETHNO-TRIBE
2010 2011 2012
14. Lubuk Parang Jama- Mapun 874 884 895
15. Sapa Jama- Mapun 1,436 1,453 1,471
Sub-Total: 22,276 22,547 22,828

H. Municipality of Languyan
TOTAL OF POPULATION
BARANGAY ETHNO-TRIBE
2010 2011 2012
1. Languyan Proper Badjao 540 546 553
2. Bas- Bas Proper Sama 980 992 1,004
3. Marang- Marang Badjao 380 384 389
Sub-Total: 1900 1,922 1,946

I. Municipality of Panglima Sugala


TOTAL OF POPULATION
BARANGAY ETHNO-TRIBE
2010 2011 2012
1. Dundon Badjao 1,300 1,316 1,332
2. Tong Bangkaw Badjao 1,800 1,822 1,844
3. Buan Sama 1,500 1,518 1,537
4. Luuk Puntal Badjao 800 809 819
5. Bilatan Halu Badjao 1,289 1,305 1,321
Sub-Total: 6,689 6,770 6,853

J. Municipality of Turtle Island


TOTAL OF POPULATION
BARANGAY ETHNO-TRIBE
2010 2011 2012
1. Taganak ( Pob) Jama- Mapun 1,200 1,214 1,229
2. Likud Bakkao Jama- Mapun 800 810 820
Sub-Total: 2,000 2,024 2,049

K. Municipality of Bongao
TOTAL OF POPULATION
BARANGAY ETHNO-TRIBE
2010 2011 2012
1. Lakit - Lakit Sama 985 997 1,009
2. Lamion Badjao 2,128 2,154 2,180
3. Lato - Lato Sama 310 313 317
4. Luuk Tulay Badjao 126 127 129
5. Mandulan Sama 921 932 944
6. Pagasinan Badjao 240 243 246
7. Pakias Badjao 130 131 133
8. Pag- Asa Badjao 2,983 3,020 3,057
9. Tubig Tanah Badjao 1,500 1,518 1,537
10. Simandaguit Badjao 2,312 2,340 2,369
Sub-Total: 11,635 11,775 11,921
GRAND TOTAL (11 municipalities 149 barangays) 192,297 194,635 197,064

II. Sulu

MUNICIPALITIES/BARANGAY ETHNO-TRIBE TOTAL OF POPULATION


ESA for the Proposed Harnessing Agribusiness Opportunities through Robust and Vibrant Entrepreneurship
Supportive of Peaceful Transformation (HARVEST) 95

MUNICIPALITIES/BARANGAY ETHNO-TRIBE TOTAL OF POPULATION


2012
A. Jolo
1. Takut-Takut Badjao 1,215
2. Bus-Bus Badjao 1,680
3. Tulay Badjao 742
Sub-total: 3,637
B. Indanan
1. Bato-Bato Badjao 537
2. Tanjung Badjao 480
3. Siongan Badjao 179
Sub-total: 1,196
C. Parang
1. Kannaway Badjao 210
2. Alulayag Badjao 136
3. Butun Badjao 250
4. Bawisan Badjao 90
5. Parang Proper Badjao 207
6. Silangkan Badjao 120
Sub-total: 1,013
D. Panglima Estino
1. Punay Badjao 652
Sub-total: 652
E. Panamao
1. Suuh Badjao 503
2. Siet Badjao 147
Sub-total: 650
F. Luuk
1. Sukuban Badjao 650
2. Tando Bato Badjao 435
Sub-total: 1,085

G. Kalinggalan Caluang
1. Pitogo Badjao 543
Sub-total: 543
H. Talipao
1. Tuyang Badjao 489
Sub-total: 489
I. Maimbung
1.Laud Kulasi Badjao & Sama 1,750
2. Maimbung Proper Badjao & Sama 635
Sub-total: 2,385
J. Pata
1. Saimbangun Badjao 680
Sub-total: 680
K. Omar
1. Capual Badjao 362
2. Lahing-Lahing Badjao 144
Sub-total: 506
L. Pandami
1. Manubol Sama 915
ESA for the Proposed Harnessing Agribusiness Opportunities through Robust and Vibrant Entrepreneurship
Supportive of Peaceful Transformation (HARVEST) 96

MUNICIPALITIES/BARANGAY ETHNO-TRIBE TOTAL OF POPULATION


2. Sibaud Sama 830
3. Pandami Proper Badjao 535
Sub-total: 2,280
M. Patikul
1. Igasan Badjao 321
2. Litayon Badjao 140
3. Tanduh Badjao 170
Sub-total: 631
N. Panglima Tahil
1. Kabukan Badjao 750
2. Subah Bangas Badjao 433
3. Pangasinan Badjao 400
Sub-total: 1,583

O. Tapul
1. Kabingaan Sama 805
2. Kalang Badjao 278
Sub-total: 1,083
P. Lugus
1. Alu Duyong Badjao 350
2. Lugus Proper Badjao 258
Sub-total: 608
Q. Siasi
1. Tuhug-Tuhog Badjao 700
2. South Laud Sama 550
3. Punduhan Badjao 620
4. Laminusa Sama 2,200
5. Musu Badjao 645
6. Bulikullul Badjao 600
Sub-total: 5,315

R. Banguingui
1. Bakkaan Sama 525
2. Bangalaw Sama 470
3. Danao Sama 480
4. Dungon Sama 1,863
5. Kahikukuk Sama 347
6. Luuk Poblacion Sama 504
7. North Paarul badjao 261
8. Sigumbal Sama 345
9. South Paarul Sama 295
10. Tabialan Sama 510
11. Taingan Bakkao Sama 756
12. Tambun Bubu Sama 450
13. Tattalan Sama 307
14. Tinutungan badjao 400
Sub-total: 7,513
S. Pangutaran
1. Tonggasang Sama 587
2. Pandukan Badjao 413
ESA for the Proposed Harnessing Agribusiness Opportunities through Robust and Vibrant Entrepreneurship
Supportive of Peaceful Transformation (HARVEST) 97

MUNICIPALITIES/BARANGAY ETHNO-TRIBE TOTAL OF POPULATION


3. Alubuna Sama 106
4.Suangbuna Badjao 470
5. Siipang Sama 450
6. Patotol Sama 300
7. Panitikan Sama 250
8. Keke Niog Sama 470
9. Pangdan Niog Sama 310
10. Bangkilay Sama 260
11. Lumadapdap Sama 315
12. Kawitan Sama 280
13. Simbahan Poblacion Sama & Badjao 1,400
14. Tubig Sallang Sama 158
15. Tubig Manok Sama 250
16. Lantong Babag Sama 190
Sub-total: 6,209
GRAND TOTAL (18 municipalities, 1 city, 73
brgys): 36,321

III. Maguindanao
TOTAL POPULATION
MUNICIPALITY/BARANGAY ETHNO-TRIBE
2010 2011 2012
A. North Upi Sub-total: 26,736 27,067 27,399
1. Nuro ( Pob) Teduray
2. Darugao Teduray
3. Kaba- Kaba Teduray
4. Rempes Teduray
5. Bantek Teduray
6. Kibukay Teduray
7. Kibleg Teduray
8. Borongotan Teduray
9. Tinungkaan Teduray
10. Kinitaan Teduray
11. Mirab Teduray
12. Renti Teduray
13. Bayabas Teduray
14. Rifao Teduray
15. Sefegefen Teduray
16. Nangi Teduray
17. Bugabungan Teduray
18. Renede Teduray
19. Blensong Teduray
20. Ranao Teduray
21. Bungcog Teduray
22. Kiga Teduray
23. Ganasi Teduray

B. South Upi Sub-total: 23,952 24,249 24,546


Teduray/Lambangian-
1. Romongaob Manobo
Teduray/Lambangian-
2. Looy Manobo
ESA for the Proposed Harnessing Agribusiness Opportunities through Robust and Vibrant Entrepreneurship
Supportive of Peaceful Transformation (HARVEST) 98
TOTAL POPULATION
MUNICIPALITY/BARANGAY ETHNO-TRIBE
2010 2011 2012
Teduray/Lambangian-
3. Kuya Manobo
Teduray/Lambangian-
4. Pandan Manobo
Teduray/Lambangian-
5. Pilar Manobo
Teduray/Lambangian-
6. San Jose Manobo
Teduray/Lambangian-
7. Lamud Manobo
Teduray/Lambangian-
8. Biarong Manobo
Teduray/Lambangian-
9. Bongo Manobo
Teduray/Lambangian-
10. Kigan Manobo
Teduray/Lambangian-
11. Itaw Manobo

C. Datu Odin Sinsuat Sub-total: 10,972 11,108 11,244


1. Tapian Teduray
2. Kusiong Teduray
3. Badak Teduray
4. Sibuto Teduray
5. Mompong Teduray
6. Broce Teduray
7. Awang Teduray
8. Labungan Teduray
9. Sifaran Teduray
10. Kinebaka Teduray

D. Datu Blah Sinsuat Sub-total: 6,352 6,431 6,510


1. Matuber Teduray
2. Tubuan Teduray
3. Nalkan Teduray
4. Tambak Teduray
5. Kinimi Teduray
6. Sedem Teduray
7. Sinipak Teduray

E. Ampatuan Sub-total: 8,381 8,485 8,590


Teduray/Manobo-
1. Tomicor Dulangan
Teduray/Manobo-
2. Saniag Dulangan
Teduray/Manobo-
3. Kauran Dulangan
Teduray/Manobo-
4. Upper Malating Dulangan
5. Tubak Teduray/Manobo-
ESA for the Proposed Harnessing Agribusiness Opportunities through Robust and Vibrant Entrepreneurship
Supportive of Peaceful Transformation (HARVEST) 99
TOTAL POPULATION
MUNICIPALITY/BARANGAY ETHNO-TRIBE
2010 2011 2012
Dulangan

F. Datu Saudi
1. Kabinge Hill 224 Teduray 353

G. Datu Unsay
1. Kyamko Teduray 348

H. Datu Hoffer Sub-total: 7,976 8,076 8,174


Teduray/Manobo-
1. Limpongo Dulangan
Teduray/Manobo-
2. Mahantao Dulangan
Teduray/Manobo-
3. Sayap Dulangan
Teduray/Manobo-
4. Talibadok Dulangan
Teduray/Manobo-
5. Tuayan Dulangan

I. Guindulungan Sub-total: 1,329 1,340 1,369


1. Ahan Teduray
2. Datal Pandan Teduray
3. Fokol Teduray

J. Datu Paglas Sub-total: 200 255 252


1. Bunawan B'laan

K. Datu Abdullah Sangki Sub-total: 752 800


1. Talisawa Teduray
2. Mao Teduray

GRAND TOTAL (11 municipalities, 69 brgys): 85,898 87,763 88,884

IV. Lanao del Sur


BARANGAY ETHNO-TRIBE TOTAL POPULATION
2010 2011 2012
A. Wao Sub-total: 26,736 27,067 27,399
1. Pagalongan Ivatan/Manobo/Higaonon/Teduray/Sangil
2. Buntongan
3. Christian Village
4. Buot

B. Balabagan Sub-total: 209 217


1. Igabay Teduray
2. Itil Teduray

GRAND TOTAL: 26,945 27,067 27,616

V. Basilan: (no data on municipalities and barangays; see separate paper on IPs in Basilan)
ESA for the Proposed Harnessing Agribusiness Opportunities through Robust and Vibrant Entrepreneurship
Supportive of Peaceful Transformation (HARVEST) 100

ETHNO-TRIBE 2010
1. Yakan 205,057
2. Sama Bangingi 50,000
ESA for the Proposed Harnessing Agribusiness Opportunities through Robust and Vibrant Entrepreneurship
Supportive of Peaceful Transformation (HARVEST) 101
Annex B : List of ARMM Natural Tourist Spots

Maguindanao
o Barurao Springs – Balabagan
o Blue Lagoon (Margues Lagoon), Datu Odin Sinsuat
o Bongo Diving Spot – Parang
o Hot Spring – Benolen, Datu Odin Sinsuat
o Iga-Bai Waterfalls – Balabagan
o Kanapnapan Falls – Marogong
o Kiga Falls, Sapalan Falls and Tubuan Falls – North Upi
o Lake Balut - Sultan Kudarat
o Lake Dapao – Pualas
o Limpongo Hotspring - Shariff Aguak
o Mabul Beach – Malabang
o Maputi na Lupa – Masiu
o Mt. Magaturing – Butig
o Punta Beach - Parang
o Sapalan Waterfalls Hotspring – Sapalan, Datu Odin Sinsuat
o Sumpitan Falls – Balindong
o Tumingay Lake - Sultan Kudarat

Lanao del Sur


o Agus River - Marawi City
o Angoyao Hills
o Bagang Beach - Marawi City
o Barurao Springs - Balabagan
o Iga-Bai Waterfalls - Balabagan
o Islets Balindong, Tugaya, B.Kalawi and Binidayan in Lake Lanao
o Kanapnapan Falls - Marawi City
o Lake Dapao - Pualas
o Sacred Mountain National Park - Marawi City
o Signal Hill, Arumpac Hill & Mt. Mupo - Marawi City
o Sumpitan Falls - Balindong
o The Sleeping Lady

Basilan
o Balagtasan Falls – Malawani Island
o Balas Beach - Lamitan
o Block 35 Falls – Menzi Plantation
o Bulingan Falls - Lamitan
o Kumalarang Waterfall – Maluso
o Malamaui Island – Malamawi Island
o Palm Beach – Lamitan
o Tabiawan and Busay Waterfalls – Malawani Island
o White Beach – Malamaw Island

Sulu
o Bangas Island – Panglima Tahil
o Jikiri Cave – Patian Island, Pata
o Kabingaan Island - Siasi
o Lahat-Lahat Island - Jolo
ESA for the Proposed Harnessing Agribusiness Opportunities through Robust and Vibrant Entrepreneurship
Supportive of Peaceful Transformation (HARVEST) 102
o Lake Panamao - Talipao
o Lake Seit - Talipao
o Laminusa Island - Siasi
o Maubuh Beach - Jolo
o Mount Datu – Indanan
o Mt. Bud Daho - Patikul
o Mt. Bud Tumantangi - Jolo
o Pala River – Talipao
o Quezon Beach
o Tandu Beach - Patikul
o Tapaan Island – Pandami
o Tara Island - Siasi

Tawi-Tawi
o Biraddali Waterfalls – Languyan
o Bolobok Cave - Bongao
o Bongao Peak – Bongao
o Gusong Reef - Cagayan de Tawi-Tawi (Mapun)
o Kaban-Kaban Natural Swimming Pool – Simunul
o La Island Beach - La Island
o La Island Beach – Tubig, Indangan
o Manuk – Mangkaw (Floating Island) – Manuk-Mangkaw
o Marlboro Beach - Cagayan de Tawi-Tawi (Mapun)
o Panampangan Island Beach - Sapa-sapa
o Pearl Farm – Languyan
o Salaug Island Beach – Sitangkai
o Sangay Siapo Island – Simunul
o Sibutu Natural Wildlife Sanctuary – Sibutu
o Sikulan Island Beach – Sitangkai
o Sukarno Beach - Simunul
o Tahing-Tahing Beach - South Ubian
o Tai-Tai Beach - Simunul, Sibutu
o Tangu Beach - Panglima Sugala
o Tawi-Tawi Beach (Sandbar) – Bongao
o Turtle Islands – Taganak

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