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Assessing ProgressAssessing Progress

The World Bank1818 H Street, NWWashington, D.C. 20433 USA

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The World Bank Group

December 2004

The World Bank Group seeks to help the Philippines improve the lives of its citizens through sustainable economic growth and greater social inclusion. Fiscal stability (in the short term) and public institutions that serve the common good (in the medium term) are critical to these objectives. Our strategy is to support Islands of Good Governance–those government agencies, local governments, and dynamic sectors in the Philippines that demonstrate how improved accountability and service delivery will lead to better economic and social outcomes. We help to expand these successful experiences and thus stimulate a cycle of more effective, transparent and responsive public institutions, fiscal stability, sustained economic growth and poverty reduction, and wider sharing of development benefits, especially among the poor. Our vision is that the Philippines will truly become the Islands of Good Governance.

This report is a product of the staff and consultants of the International Bank for Reconstruction and Development / The World Bank. The findings, interpretations, and conclusions expressed in this report does not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this report. The boundaries, colors, denominations, and other information shown on any map in this report do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries.

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1818 H Street, N. W.Washington D. C. 20433, U.S.A.Tel: 202-473-1000Fax: 202-477-6391www.worldbank.orgwww.worldbank.org/eapenvironment

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The Philippines Environment Monitor 2000 presented snapshots of the

general environmental trends in the country. The Philippines

Environment Monitor 2001 on solid waste management.

The Philippines Environment Monitor 2002

on air quality.

The Philippines Environment Monitor 2003

on water quality.

Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i

Acknowledgements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ii

Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iv

Environmental Quality at a Glance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v

Abbreviations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii

ECONOMIC GROWTH AND ENVIRONMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

GREEN ENVIRONMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Land Use Classification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Biodiversity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Resource Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Legislation and Institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

BROWN ENVIRONMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Solid Waste Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Air Quality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Water Quality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Mining Related Pollution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36


BLUE ENVIRONMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

Coastal and Marine Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39


GLOBAL ENVIRONMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

CHALLENGES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

Relevant Websites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

Philippines at a Glance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

TABLE OF CONTENTS

Maria Teresa Serra Joachim von AmsbergSector Director, Environment and Social Development Country Director, Philippines

East Asia and Pacific Region East Asia and Pacific RegionThe World Bank The World Bank

T he Philippine archipelago is home to a rich diversity of natural resources, from mangroves to seagrasses, to endemic types of flora and fauna. Yet, population growth and economic development have created pressures on many of these resources causing declines in forest cover, soil fertility and fish catches.

In addition, the quality of life in crowded, often unplanned urban areas has also deteriorated as a result of increasing levels of air, water and soil pollution.

This report is the fifth in the Philippines Environment Monitor (PEM) Series. Other PEMs have focused on solid waste management (2001), air quality (2002), and water quality (2003). This Monitor updates the first Philippine Environment Monitor (2000), presenting an overview of the status and trends with respect to forest cover, biodiversity, water, air, and soil quality, and coastal and marine management. New laws and policies covering these sectors are also discussed.

The 2004 Monitor pays special attention to the emerging role of civil society in environmental management, highlighting individual and community contributions. Such public advocacy has led to the passage of comprehensive environmental protection legislation. Although some indicators, such as air quality in selected urban areas, have shown improvement, ecosystems remain fragile. There is little reliable information on the extent of illegal logging and over fishing, but their impact is widely recognized. This Monitor finds that reversing years of environmental degradation will require renewed political will, budgetary resources and the more informed participation of the private sector and civil society groups.

The 2004 Monitor is divided into the following six sections: An overview of the linkages between economic growth and environmental protection is presented in the first section. The following three sections are sector-specific, focusing on the “green” environment—forestry, biodiversity and protected areas management; the “brown” environment—covering solid waste management, air pollution, water resources and mining pollution; and the “blue” environment—focusing on coral reefs, sea grasses, mangroves, and fisheries. These are followed by a section that covers progress in implementing global treaties and agreements. Key challenges are summarized in the final section. A list of pertinent websites, a bibliography, and important statistical information on the Philippines is provided at the end.

This Monitor is the outcome of a year-long process that involved national agencies, civil society, academia, and independent researchers. It was prepared, reviewed and finalized with counterparts, through a series of five stakeholder consultations. We hope that such a collaborative approach will foster a common understanding of the problems and priorities for effective environmental management in the Philippines.

FOREWORD

i

PHILIPPINES ENVIRONMENT MONITOR 2004

T his document was prepared by a team composed of staff and consultants in the East Asia Environment and Social Unit, Washington DC, and the Philippines Country Office in Manila. Team members who prepared the report are Giovanna Dore, Cesil Gomez, Elisea (Bebet) Gozun, Tanvi Nagpal, Jitendra

Shah (Task Team Leader), Josefo Tuyor, and Maya G. Villaluz, under the guidance of Maria Teresa Serra, Magda Lovei (EASES) and Joachim von Amsberg (Philippines Country Office). The document was peer-reviewed by Kulsum Ahmed, Dan Biller, Julien Labonne, Warren Evans, and Keith Robert A. Oblitas, World Bank. Rita Lohani and Adam Pollack provided assistance with research and fact checking. James T. Cantrell designed the cover and Nona Sachdeva coordinated production. Jose Eric Maglanque, Leonora Gonzales, and Anissa Tria are responsible for dissemination.

The authors are grateful to Anjali Acharya, Christopher Ancheta, Gilbert Braganza, Chris Hoban, Susan Hume, Patchamuthu Illangovan, Idah Z. Pswarayi-Riddihough, and Robert Vance Pulley; and Mr. Michael T. Defensor, Honorable Secretary of the Department of Environment and Natural Resources (DENR), Government of the Philippines, for their advice. In the Philippines, reviewers included, Victor Ramos, Dr. Rodel Lasco; Coastal Resource Management Program, Alan White, William Jatulan; Ecosystems Research and Development Bureau Dir. Celso Diaz; JL Business and Technology Consultancy, Juergen Lorenz; Manila Observatory, Dr. Emmanuel Anglo; Silliman University, Dr. Angel Alcala; UP-Marine Science Institute, Dr. Gil Jacinto and Dr. Perry Aliño.

The Philippines Environment Monitor 2004 represents a collaborative undertaking among several government agencies, private sector companies, donor agencies, and civil society organizations at both the national and local levels. Authors would especially like to thank the many officials and staff of the Department of Environment and Natural Resources who participated in workshops and provided valuable comments and data. They include Undersecretary of DENR Rolando Metin, Director Julian Amador, Director Romy Acosta, OIC-Director Theresa Mundita Lim, Director Horace Ramos, Director Bert Argete, Director Concordio Zuñiga, Regional Director Malu Jacinto, Assistant Director Marissa Cruz, Renato Cruz, Marcelino Rivera, Cesar Siador, Elen del Rosario-Basug, Albert Magalang, Domingo Bacalla, Prudy Callado, Jean Rosete, Nicanor Mendoza Geri Sañez, Connie Crisostomo, Glenn Noble, Joy Goco, Robert Jara, Isabelita Austria, Marivic Abrera, Joey Austria, Tess Peralta, Sol Rativo, Angie Brabante, Armida Andres, Teresita Blastique, Nancy Corpuz, Marlyn Mendoza, Michael Cabalda, Reynaldo Zabala, Alex Pascua, Leza Acorda, Winnie Balilia, Inocencio Castillo, Delia Valdez, Janet Yanto, Raquel Ortega, Nap Balascopo, and Emmanuel Miraflores.

In addition, authors also extend their gratitude to the following partners in other government agencies: Joseph Aricheta, Department of Health; Bo Peep Paloma, House of Representatives, Committee on Ecology; Lenny Santos-Borja, Dolora Nepomuceno, Jo Sta. Ana, LLDA; Assistant Secretary Anneli Lontoc, Land Transportation Office; Mayor Gerry Treñas, League of Cities of the Philippines, Mayor Ramon Guico, League of Municipalities of the Philippines; Executive Director Calvin Sadiva, Liga ng mga Barangay; Emma Aldea, National Disaster Coordinating Committee; Director Virgilio Basa, NAMRIA; Executive Director Ramon Alikpala, Jesusa Roque, Beatriz Soriano, National Water Resources Board; Commodore Isidro Bañaria, May Belicena, Philippine Coast Guard; Agnes de Jesus, Gina Pascual, PNOC-EDC; Dr. Cesar Villanoy, UP-Marine Science Institute; Jemima Sy, WSSP-PMO.

ACKNOWLEDGEMENTS

ii

Five stakeholder consultations were held in preparation for this document. These included many members of civil society and the media, donor agencies as well as the private sector. Authors are grateful to them for their critical insights and candor. The following stakeholders are acknowledged: Dr. Olivia Lao Castillo, Asia-Pacific Roundtable for Sustainable Consumption and Production; Imelda Sarmiento, Ramon Jacinto Socco, Jr., Clean and Green Foundation; Elizabeth Roxas, Environment Broadcast Circle; Peter Walpole, Sylvia Miclat, Maan Mercado, Environmental Science for Social Change; Sylvia Mesina, Foundation for Philippine Environment; Howie Severino, GMA-7; Annabelle Plantilla, Haribon Foundation; Narda Camacho, Linis Ganda; Deejay Cromwell Sanqui, Manila Observatory; Sonia Mendoza, Mother Earth Foundation; Dr. Nina Galang, Tessa Oliva, Miriam PEACE; Liza Antonio, Grace Favila, Philippine Business for the Environment; Lizette Cardenas, Solid Waste Association of the Philippines; Lorenzo Tan, Ed Tongson, World Wildlife Fund; Nelia Halcon, Chamber of Mines; Rolando Castro, Alfredo Alarcon, Yesa Bediot, Motorcycle Development Program Participants Association, Inc.; Tony Chiong, Polystyrene Packaging Council of the Philippines; Axel Hebel, Daisy Garcia, Asian Development Bank; Jane Steel, United Nations Development Programme; Joy Jochico, United States Agency for International Development.

Information contained in the Monitor has been obtained from published Government and World Bank reports, as well as unpublished data obtained from government counterparts, and individuals associated with universities and non-governmental organizations.

iii

People’s Day at the DENR Office.

Source: DENR-Public Affairs Office.

PHILIPPINES ENVIRONMENT MONITOR 2004PHILIPPINES ENVIRONMENT MONITOR 2004

T he 2004 Philippines Environment Monitor updates progress in natural resources management; biodiversity conservation; solid waste, air and water pollution control; and coastal and marine management. Since the publication of the first Philippines Environment Monitor in 2000, the

Government of the Philippines has adopted overarching legislation aimed at improving air and water quality in the country, and preserving precious, often-threatened, environmental resources. New environmental and economic policies have been put into place. Greater civil society participation and dialogue, and a more engaged private sector, are evidence of a paradigm shift in environmental governance, with increased importance being accorded to local-level decision-making and implementation.

Despite positive steps, actual change on the ground, measured by environmental indicators, has been slow. Years of neglect, haphazard policy-making, and weak local environmental management have taken a toll in the form of widespread environmental degradation and acute pollution problems. Forested areas in the country continue to be threatened by competing development claims of agriculture and urbanization. As habitats shrink, biodiversity in these areas is increasingly endangered. Coastal resources, especially coral reefs (over 90% are at high risk), mangroves, and sea-grasses face threats from coastal zone development, expanding aquaculture, and destructive fishing. Fisheries catch per-unit-of-effort has been declining steadily due to over-fishing in many areas. The costs of environmental degradation are high, where they are quantifiable. For example, mismanagement of fisheries resources is estimated to cost PhP 23 billion (US$ 420 million) annually in lost revenues. The annual economic losses caused by water pollution are estimated at PhP 67 billion (US$ 1.3 billion) and the increased health costs of exposure to air pollution (particulate matter) in four urban centers alone are estimated to be over PhP 21 billion (US$ 400 million). Abandoned mining areas and mercury pollution in water bodies that surround mines remain problematic and unquantified even as the Government encourages new, environmentally-sensitive mining investment.

The role of environmental information has been stressed, as the availability of timely and reliable data is essential to informed decision-making in the public and private sectors. While the air pollution in most cities is severe, particulate matter levels have recently declined in Cebu, Baguio and Manila suggesting that public policies can be effective. Although the Monitor aims to present the latest environmental trends, available information is patchy and may not fully reflect the reality on the ground. In some areas, it is difficult to ascertain improvements or lack thereof, because of poor information-gathering, data analysis, and a general lack of capacity to translate analytical results into policy decisions. The notable contributions of government, civil society and the private sector are highlighted under “environmental champions.”

While each sector faces specific problems, the general challenges to environmental management are cross-cutting and relate to environmental governance, policy-making and implementation. The following are key challenges:

1. Long-term national commitment to environmental protection to reverse degradation. 2. Encourage greater public awareness and involvement to create political will.3. Increase private sector participation for environmental services to reduce capital investment by

the Government.4. Improve coordination and capacity to harmonize the decentralization process. 5. Modernize monitoring, enforcement, and public disclosure to ensure compliance.6. Streamline bureaucratic processes to encourage investment in natural resources.

EXECUTIVE SUMMARY

iv

BROWN ENVIRONMENT

Air Pollution in Metro Manila (MM) and urban centers

Ambient TSP level in MM, Cebu, Davao, Baguio

Declining particulate concentrations in urban centers but annual averages still exceed national standards. Non-conventional and area sources like biomass burning and re-suspended dust need controlling.

Number of highly polluting vehicles on Metro Manila roads

Declining number of polluting vehicles and rising production of cleaner motorcycles and vehicles. Rapidly rising vehicle population points to urgent need for public transport and transport management.

River and coastal water quality

% population with access to sanitation and sewerage

Access to sanitation rising slowly. Urban access to piped sewerage in Metro Manila is very low (8%) as the investments in sewerage are inadequate.

Contamination of groundwater

Total coliform contamination increasing with domestic wastewater accounting for majority of the pollution load.

% industrial waste treated More waste treated but the total production as well as illegal solid, toxic/hazardous waste, dumping is rising.

Solid hazardous waste

Solid and hazardous waste generated

Total waste generation is rising with population while services are not keeping up with the demand.

% of waste recovered for recycling

More LGUs practicing ecowaste management. Level of composting and recycling is rising.

% of residual waste disposed in environmentally sound manner

Open dumping and burning continue as main means of disposal.

Mining Pollution

No. of closed / abandoned mines

Twenty sites surveyed for rehabilitation and revegetation.

Mercury levels in surrounding and downstream water bodies

Mercury pollution resulting from artisanal mining. Better management of mining sites and handling of wastes needed.

GREEN ENVIRONMENT

Forest Cover

% of forest cover Total forest cover improving but forest protection and rehabilitation needs expanding.

Annual rate of reforestation Annual reforestation rate slowing in recent years.

ENVIRONMENTAL QUALITY AT A GLANCE

v

Low Priority Medium Priority High Priority


Mangrove cover Mangrove cover increasing but threats continue. Fast track reversion and rehabilitation of abandoned fishponds and saltbeds to mangroves.

% coral reefs in excellent condition

Destructive fishing, construction, solid and hazardous waste disposal continue to threaten coastal and marine resources. More active participation of LGUs and communities needed.

Sea grass cover Reclamation and pollution continue to threaten seagrasses. IEC on value of seagrasses, coral reefs and mangroves needed.

Fishery production from municipal waters

Production going down with even increased fishing effort. Delineation of municipal waters needs to be completed with LGUs effectively managing same.

ODS consumption (in metric tons)

ODS consumption in the Philippines declined to 1422 MT by 2003, ahead of international commitments.

Open access areas Forest areas under management or co-management increasing.

Critical habitats and biodiversity

Number of rare, threatened, and endangered wildlife species

One of the highest biodiversity loss rates in the world. Shrinking habitat along with commercial exploitation inspite of more area under protection.

Soil erosion and flooding Increasing soil erosion and flooding. Deforestation and land conversion continue to add to the problem.

Yield / hectare (mt/ha) Static yield / hectare increasing despite inputs. Deforestation from logging, natural disasters, and residential development.

Water Supply

Water supply (in per capita availability / year)

National water demand expected to outstrip supply.

Water demand in major cities (in MCM / year)

Critical seasonal shortages worsening as demand continues with population and economic growth.

% of population with access to improved water source

Steady improvements in access to improved water source.

Watersheds

% of watersheds considered degraded

Minor improvements noted.

Coastal and marine resources

Low Priority Medium Priority High Priority

vi

ENVIRONMENTAL QUALITY AT A GLANCE

ADB Asian Development Bank

ASEAN Association of Southeast Asian Nations

BFAR Bureau of Fisheries and Aquatic Resources

BOD Biochemical Oxygen Demand

CAA Clean Air Act

CBFM Community-based forest management

CDM Clean Development Mechanism

CFC Chlorofluorocarbons

CITES Convention on International Trade in Endangered Species of Flora and Fauna

CLASP Community Livelihood Assistance Special Program

CMS Convention on the Conservation of Migratory Species of Wild Animals

CO Carbon monoxide

DA Department of Agriculture

DAO Department Administrative Order

DENR Department of Environment and Natural Resources

DO Dissolved oxygen

EMB Environmental Management Bureau

EMPOWER Environment Management with Public and Private Sector Ownership

EO Executive Order

EPIC Environmental Management Programme for Industry Competitiveness

ESWMA Ecological Solid Waste Management Act

FAO Food and Agriculture Organization

FMB Forest Management Bureau

FTAA Financial and Technical Application Agreement

GDP Gross domestic product

GEF Global Environment Facility

GOP Government of the Philippines

ICLARM International Center for Living Aquatic Resources Management

IPAF Integrated Protected Areas Fund

ITTO International Tropical Timber Organization

JICA Japanese International Cooperation Agency

km2 square kilometer

LGU Local Government Unit

LISCOP Laguna de Bay Institutional Strengthening and Community Participation Project

m3 cubic meter

MARPOL International Convention for the Prevention of Marine Pollution from Ships

mcm million cubic meters

mg/l milligrams per liter

MGB Mines and Geosciences Bureau

MMDA Metro Manila Development Authority

MT Metric ton

MWSS Metropolitan Waterworks and Sewerage System

NBSAP National Biodiversity Strategy and Action Plan

NGO Non-governmental organization

NIPAS National Integrated Protected Areas System

NSWMC National Solid Waste Management Commission

NWRB National Water Resources Board

O3

Ozone

ODP Ozone Depleting Potential

ODS Ozone Depleting Substance

OSPAR Oil Spill Preparedness and Response

OSRAP Oil Spill Response Action Plan

PAB Pollution Adjudication Board

PAMB Protected Areas Management Boards

PBE Philippines Business for the Environment

PBSP Philippines Business for Social Progress

PCF Prototype Carbon Fund

PD Presidential Decree

PET Polyethelyne terapthalate

PHP Philippines Peso

PM10 particulate matter lesss than 10 microns

PO Peoples’ Organization

POP Persistent Organic Pollutants

RA Republic Act

RAMSAR Ramsar Convention on Wetlands

SWM Solid Waste Management

TLA Timber License Agreement

TSP Total Suspended Particulates

UNCLOS United Nations Conference on the Law of the Sea

UNDP United Nations Development Programme

UNFCC United Nations Framework for Climate Change

USAID United States Agency for International Development

WBCP Wild Bird Club of the Philippines

Exchange rate 1USD = 56.16 Philippine peso, November 20, 2004

ABBREVIATIONS & ACRONYMS

vii

PHILIPPINE ENVIRONMENT MONITOR 2004PHILIPPINES ENVIRONMENT MONITOR 2004

1

ECONOMIC GROWTH AND THE ENVIRONMENT

Over the years, economic growth has paid rich

dividends to the Philippines. Infant mortality rates

have fallen, life expectancy has grown, and increasing

numbers of Filipinos have access to education and

diverse employment opportunities. However, such

development has been accompanied with significant

degradation of natural resources and declining

environmental quality. Poor water-, land-, and air

quality not only exact a toll on overall quality of life

and human health, but also jeopardize future

economic growth.

Economy. After growing very rapidly in the mid-

1990s, the Philippine economy has been outperformed

by its neighbors, especially in terms of annual

economic growth rates and declining incidence of

poverty (Table 1). It is also facing increasing competition

from Vietnam, China, and India. In addition, in the

2002–2003 Global Competitiveness Report released

by the World Economic Forum, the Philippines

slipped 13 places, to number 61 (measured by growth

and microeconomic competitiveness), out of 80

countries. Low ratings for public institutions,

technology index, and quality of the national business

environment contributed to its overall slide.

The Philippines economy remains acutely dependent

on natural resources. The rural sector employs some

11.2 million people; and is a substantial contributor

to national gross domestic product (GDP; Figure 1).

In 2003, it generated 632 billion Philippines pesos

(PhP) through agriculture, fisheries, and forestry-

based industries. The rural sector grew at an average

of two percent per year between 1988 and 2002; most

of this increase was in agriculture (12.5 percent of

GDP) and fisheries (2.2 percent of GDP). Tourism

(foreign visitors and overseas Filipinos) has also been

a significant contributor to GDP (nine percent in

2002), not only in terms of foreign exchange, but also

of employment growth, and ecotourism. In 2003, the

mining sector contributed 1.52 percent of GDP.

While the country is richly endowed in mineral

resources,1 the role of mining has been declining over

the last decade due to a soft international market

with low world prices for principal metal products,

limited capital for needed exploration work, strong

Growth (% p.a.)Poverty Reduction

(headcount index, in %)

COUNTRYGDP

GrowthPer

Capita Growth

$1/day $2/day

1999-2003

1999-2003

1998 2003 1998 2003

Philippines 3.9 1.7 12.1 11.1 45.2 44.1

Indonesia 3.4 2.1 12 6.2 65.1 50.1

Malaysia 4.8 2.5 < 0.5 < 0.5 12.9 8.7

Thailand 4.7 4.0 3.3 1.6 34.1 23.7

Korea 6.4 5.7 < 0.5 < 0.5 < 0.5 < 0.5

China 7.9 7.1 16.1 11.7 49.8 34.8

India 5.2 3.6

Table 1. Growth and Poverty Reduction in Selected Asian Countries

Source: World Bank, Briefings for the Philippines, 2004.

Figure 1. Gross Domestic Product by Sector, 2003

Source: National Statistical Coordination Board.

Total: PhP 4,359 billion

Other Service39.3%

Agriculture12.3%

Fishery2.2%Forestry0.1%

Manu-facturing22.9%

Trade13.8%

Other Industry13.8%

1 The Philippines has an estimated endowment of 10.5 billion metric tons of metallic (mineral) resources, and 81.2 billion metric tons of nonmetallic ones.

2

anti-mining sentiments, and the constitutional

challenge to the Philippine Mining Act of 1995.2

Forty-four percent of Filipinos still earn less than two

dollars per day (Table 1), and about two-thirds of

them are engaged in activities that rely heavily on

environmental and natural resources. Approximately

20 million people reside in and around forests, and

60 million live within 100 km of the Philippine

coastline. Evidence, mostly anecdotal, suggests that

poor people, and those whose income and welfare are

more tightly linked to environmental and natural

resources, are disproportionately affected by the

continuing declines in environmental quality.

Coastal and forest communities, and residents of

poorer areas of municipalities and rural barangays,3

which are under-served in the provision of urban

environmental services, are worst off. They also bear

the highest income losses due to sickness and medical

expenses related to water and air pollution.

The annual economic losses caused by water pollution

are estimated at PhP67 billion (US$1.3 billion). These

include PhP3 billion for health, PhP17 billion for

fisheries production, and PhP47 billion for tourism.

In 2001 alone, the health costs of particulate (PM10)

pollution in the four largest cities were estimated to

be more than US $400 million. Losses due to

environmental damage in terms of compensation

and claims are also on the rise in the Philippines.4

Surveys suggest that citizens sense official apathy

toward their situation. For example, a perception

survey on air pollution, conducted in 2001 by the

Philippine Information Agency, revealed that more

than 72 percent of Manila’s residents were alarmed

by air pollution and 73 percent said they were not

aware that the government was taking any actions

to control it (Figure 2).Legal and Institutional Framework. The

ecological, economic, and social importance of sound

environmental management is no longer a matter of

debate in the Philippines. Successive administrations,

the private sector, and civic groups have collaborated

2 See also Brown Environment Section. 3 A barangay is the smallest local government unit in the Philippines.4 See also Water Pollution Section.

Poor woman and child.

Source: Authors.

Figure 2. Public Perception of Air Pollution

Source: Knowledge, Awareness and Practice Survey in the Metro Manila Airshed, DENR and Philippine Information Agency, 2001.


3

in enacting such important legislations as the Clean

Air Act in 1999, Ecological Solid Waste Management

Act in 2000, and Clean Water Act in 2004. The

use of economic instruments such as user-fees,

environmental taxes and levies is also on the rise.

Numerous mechanisms have been put into place

to strengthen stakeholder participation in decision-

making, and the role of non-governmental

organizations (NGOs) and local government units

(LGUs) has been expanded.

Despite such legal and policy responses, environmental

degradation continues and the government has yet to

implement an effective system of environmental

governance. Some of the reasons cited for ineffective

environmental management in the last decade include:

(1) unclear distinction between responsibilities of the

Department of Environment and Natural resources

(DENR) and other government agencies and local

governments, and the perception among local

government officials that they are being required to

fulfill unfunded mandates, despite limited resources

and personnel; (2) lack of routine environmental

monitoring, and poor use and dissemination of

environmental information, when it is available; (3)

weak enforcement of existing laws, owing to

inadequate financial and human capital and conflicts

of interest at the local level; (4) absence of land use

planning and zoning, and unclear property rights; and,

(5) lack of explicit environmental objectives/programs

in many agencies, and inadequate leadership of sector

agencies for sector-specific analysis of environmental

policies and investment options.

While the contributions of the private sector and

civic society groups have been recognized, there is

still a general public perception that environmental

management and protection are ultimately the

responsibility of the Government, and that it is not

doing enough to protect resources and reduce

pollution. In this sense, while the past five years have

been marked by the passing of important legislation,

environmental management continues to remain

problematic, and the nature of the problems is largely

unchanged.

Public and Corporate Social Responsibility. In 1996, the Government of the Philippines (GoP)

endorsed the Philippines’ National Agenda for

Sustainable Development for the 21st Century

(Philippine Agenda 21). Since then DENR and the

Department of Trade and Industry have stepped up

their efforts to build awareness of the importance of

sound environmental management practices within

the business community. The incorporation of

environmental provisions in the Magna Carta for

Small Enterprises, known as Republic Act (RA) No.

6977, and the launch of two programs, gave an even

stronger signal of the GoP’s willingness to promote

and support private sector participation in

environmental management. Private Sector

Participation in Managing the Environment

Program, and the Environmental Management

Programme for Industry Competitiveness, are two

programs sponsored by the GoP and the United

Nations Development Programme (UNDP).

Reforestation of the La Mesa Dam Watershed under the Bantay Kalikasan Program of the ABS-CBN Foundation.

Source: Authors.

4

The good practices of leading companies build a base

for the behavioral change of others.5 In the last

decade, many companies have implemented measures

to address pollution, trying to ensure that their

operations do not compromise natural ecosystems.

In addition, some of these companies have initiated

and supported projects that contribute to wildlife

conservation, watershed reforestation, coastal resources

management, and river rehabilitation. Of particular

importance and visibility are the activities of the

Development Bank of the Philippines, and the Land

Bank of the Philippines, which began granting

preferential credit access to industrial enterprises

seeking financing for environmentally-sound

projects. The Philippine Environment Partnership

Program promotes mandatory self-monitoring and

compliance with environment standards, encourages

self-regulation, and provides for grant of incentives

and assistance to industries.

Role of Civil Society and NGOs. The Philippines

is home to a vibrant community of environmental

NGOs and civic groups. By 1995, the Securities and

Exchange Commission had registered 60,000 non-

stock, non-governmental institutions—50,000 NGOs

and 10,000 Peoples’ Organizations (POs). The

number of development-oriented NGOs is probably

closer to 3,000–5,000, and of these, a small percentage

are devoted solely to the environment. These groups

have been very active in establishing partnerships

with businesses and the Government to raise

awareness about environmental stewardship. Since

1992, The Philippines Business for the Environment

(PBE) has been helping the Filipino industrial

sector to address its environmental concerns and

impacts. It has been successful in making

environmental information available to industry.

Most notable among PBE’s activities include the

Industry Waste Exchange Program, which matches

companies generating wastes with companies that

can re-use them; the program for Environmental

Management with Public and Private Sector

Ownership, which aims at improving industry

access to integrated environmental information;

Environmental Management Programme for

Industry Competitiveness. Component on the

institutionalization of the environmental manage-

ment systems in small and medium enterprises;

and, the preparation and adoption of Business

Agenda 21 by 83 Industry Associations.

Driven by civic pressures for a better living

environment, and the awareness that good

environmental practices promote more cost-efficient

business operations, the Philippine Business for

Social Progress (PBSP), has become the nation’s

largest and most influential business-led foundation.

The Foundation focuses on socially- and

environmentally-conscious business development.

Through the Corporate Social Responsibility Program

and its strong advocacy and education agenda, PBSP

encourages companies to take responsibility and

assume accountability for any adverse impact their

operations have on the environment.6

6 Private sector involvement in the Green, Brown and Blue sectors is highlighted in subsequent sections.

Corporate employees in coastal clean-up.

Source: DENR.

5 International Finance Corporation, 2002.


5

Environmental Information. Reliable and

regularly-updated environmental data are essential

to good environmental policy. As civic groups and

businesses gain access to timely and accurate

information, they are able to stay better engaged in

the policy process, and exert pressure on their local

officials to implement laws and policies that are

already on the books. The Government has taken

steps to improve access to environmental information,

and recognizes the importance of public disclosure

programs. The DENR website contains links to

important environmental laws, decrees and

memoranda, as well as the latest environmental

trends. While such efforts are important, until local

governments themselves can produce, check and use

reliable environmental information, there will be

little improvement in enforcement.

The private sector has created information clearing

houses that provide resources on environmental

topics relevant to businesses. Organizations such as

PBE, a local partner of the World Business Council

on Sustainable Development, and the Pollution

Prevention Roundtable not only provide important

environmental information but also help create links

between different enterprises that are looking for or

providing environmental services. Non-governmental

organizations, as well as bilateral and multilateral aid

agencies, also contribute to the development of the

knowledge base on the environment.

Environmental Champions. Concerned

individuals, governments and informal

organizations have also relied on local resources and

demonstrated a strong political will to become

pioneering champions of environmental protection.

Representing a cross-section of Philippine society,

they have addressed environmental issues such as

forest and biodiversity protection, coastal resource

management, and air pollution. Some of these

individuals and organizations have become widely

known, while others have remained unrecognized

outside their own communities.

One of the many beaches in the country.

Source: Authors.

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

PlantationForestMangroveOpen ForestClosed Forest

ARM

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on IX

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6

GREEN ENVIRONMENT

Box 1. Reclassification of Pamilacan Island

Pamilacan Island is situated in the Province of Bohol. The Island has a total land area of 140,766 hectares. In 1927, it was an unclassified public forest according to cadastral maps. However, a cadastral survey done in 1963 indicated that it already had 239 lots. Based on this, DENR issued 84 Free Patents while Department of Agrarian reform issued 183 Emancipation Patents (37.8 ha). With the DENR’s Anti-Fake Title Program in 1999, 78 Free Patents and 118 Emancipation Patents were found to still be within the classified forestlands of the island. Cancellation proceedings were thus initiated in the courts. Considering that the area is almost fully settled, a draft bill has now been submitted to Congress to reclassify the island as alienable and disposable and thus legitimize existing titles/patents of residents who have long settled and tilled the area.

Source: DENR-Region 7.

Source: DENR-Forest Management Bureau.

Of the 52 percent of the country’s population that

lives in rural areas, 22 percent reside in or near forests.

A majority of these people rely on forest resources for

their livelihood, making sustainable land and forest

management a critically important challenge for the

Philippines. This section presents the major trends in

land and forest resources management in the country

over the past five to ten years. While there has been

some increase in forest cover owing to reforestation

efforts and natural regeneration, per capita forest

cover in the Philippines is still the lowest in Asia.

Moreover, the remaining primary or intact forests

remain under threat.

LAND USE CLASSIFICATION

Fifty percent or 15 million hectares of the total land is

classified as forestland, 47 percent of the land is

classified as alienable and disposable, while three

percent remains unclassified.7 It is now evident that

significant portions of land that had been classified as

forests are no longer forested, and have been put to

use for agriculture or settlements (Box 1). Yet, such

land has not been reclassified. Also, despite stringent

laws, land continues to be converted from agriculture

to other uses. From 1988 to 2000, a total of 34,207

hectares of alienable and disposable land—an average

of 2,631 hectares per year—was converted from

agriculture to other land uses. Inaccurate information

on land classification not only impacts conservation

goals, but also leads to conflicts over ownership and

management, ultimately serving as a disincentive

for protection.

The forest cover for each region of the Philippines is

shown in Figure 3. In 2003, the Philippines moved to

the internationally-accepted classification system of

the Food and Agriculture Organization (FAO).

Consistent with this system, DENR now uses a total

7 DENR-Forest Management Bureau, 2004.

of 19 categories and sub-categories8 under the general

heading of land use status, compared with nine in the

past. For example, instead of referring to primary

virgin and residual forests, the categories now used

are closed-canopy and open-canopy forests.

8 DENR-Forest Management Bureau, 2004.

Figure 3. Forest Cover by Region(in ha), 2003


7

9 FAO, 2001. The assessment was “largely based on information provided by the countries themselves and a remote-sensing survey of tropical countries, supplemented by special studies undertaken by FAO.”

Forest land. Forest cover had declined from an

estimated 21 million hectares or 70 percent of the

country’s total land area in 1900, to only 5.4 million

hectares or 18.3 percent by 1988. However, recent

official estimates, based on the 2002 satellite images

of the entire country (Figure 4), show the country’s

forest cover increasing to 7.168 million hectares or 24

percent of total land area in 2002. This forest cover is

broken down into 2.56 million hectares of closed

canopy forest, 4.03 million hectares of open canopy

forest, 247,362 hectares of mangroves, and 329,578

hectares of plantations. According to the Forest

Management Bureau (FMB), 91 percent of this forest

area has been validated on the ground. However,

estimates from other sources disagree with FMB. An

alternative estimate of 5.789 million hectares has

been published by FAO.9

The DENR attributes the rise in forest cover to

stronger public awareness about the value of forests,

especially after the Ormoc flashfloods in 1991. The

floods led to public pressure for reforestation, and

renewed reforestation efforts by national government

agencies, local government units, communities

(through the community-based forest management

program), and the private sector. Massive reforestation

efforts were also undertaken by the donor-supported

National Forestation Program and Forestry Sector

Program Loans. The overall success of these programs

compared to past reforestation efforts has been

attributed to the following factors:

(i) Shift in government policy from reforestation by

the administration, where individual upland

settlers were merely employed as daily workers,

to contract reforestation10 where upland settlers

are given three-year contracts to plant and

maintain an area. Communities now have a

greater incentive to ensure the survival of what

they plant, since they may eventually receive a

grant to manage these planted areas for 25 years;

(ii) The fact that 645,000 hectares of this forest cover

is found in privately titled lands; and

(iii) Stricter enforcement of the reforestation

requirements for various DENR licensees/lessees.

While the total amount of forest cover remains a

matter of some debate, there is widespread agreement

that the overall decline in forest cover over the past

three decades is alarming. Among 89 tropical

countries, the Philippines is one of 11 with the lowest

forest per capita (at 0.085 hectare/capita)11—and

most of its watersheds are considered degraded. Land

conversion is the principal cause of deforestation;

other causes include slash-and burn farming, illegal

logging, forest fires, pest infestations, and typhoons.

Land Degradation. Of the total land area, 76

percent faces some extent of degradation. Forty five

percent of the total arable land, and 66 percent of

non-agricultural land, have been moderately to

severely eroded, triggering the movement of

subsistence farmers to marginal lands to meet their

daily food requirement. Approximately 5.2 million

hectares are seriously eroded, resulting in 30-50

percent reduction in soil productivity and water

retention capacity. This situation predisposes degraded

lands to drought and other water availability problems.

10 An assessment of reforestation efforts in the 1980’s had shown that survival rates are very low. One of the reasons was that local communities hired to undertake the reforestation actually burned the plantations so that they would again be hired by government in the succeeding years.11 Guiang, E.S., 2001.

8

Source: DENR-Forest Management Bureau.Note: Satellite images only capture higher density growth, it is difficult to see open forest areas.

Figure 4. Land/Forest Cover Status, CY 2003


9

Areas classified as having no apparent erosion are

mainly prime agricultural lands in Region III; while

35 percent of the total area of Regions IV, V, and VII

are characterized as slightly eroded. Moderate erosion

accounts for approximately 8,446 hectares or 28

percent of the country’s soil-eroded area; and these

are classified as marginal lands. Other types of soil

degradation associated with soil erosion are loss of

soil nutrients and organic matter, river erosion,

flooding, and water logging.12

From 1988 to 2000, there was a doubling in the

economic value of nutrient loss due to soil degradation

(from PhP635 million in 1988 to PhP1.16 billion in

2000). To compensate for this loss, outlays for

fertilizer have increased; from PhP41.7 million to

PhP154 million over the same period.13 Also, land

degradation has played an increasingly significant

role in the incidence of natural disasters in the

country during the past decade. The World Bank

values direct damage caused by disasters between

1970 and 2000 at PhP15 billion per year. In 2000

alone, damage to property due to flooding is an

estimated PhP1.67 million.

BIODIVERSITY

The Philippines is one of the world’s 18 “mega-

diversity” countries, which together account for between

60 and 70 percent of global biodiversity. It has also

been identified by the International Union for

Conservation of Nature (IUCN) as a biodiversity

“hotspot”—a country where biodiversity is

extremely threatened by deforestation, conversion,

fragmentation of natural habitats, unregulated

trade, and overall low environmental quality.

The 1997 National Biodiversity Strategy and Action

Plan (NBSAP) set forth concrete policy and

management measures for developing programs and

projects that would address pressing issues and

concerns in biodiversity conservation and

management. The NBSAP noted that the most

effective way to conserve biodiversity is to protect

habitats and strengthen the National Integrated

Protected Area System (NIPAS). It also listed 91

critically endangered species, 74 endangered, and 253

vulnerable species.

In 2002, an iteration of the NBSAP was undertaken

through the Philippine Biodiversity Conservation

Priorities Program. Integral to this program are five

strategic actions that the government needs to take to 12 Bureau of Soils and Water Management, 2004.13 National Statistical Coordination Board, 2003.

A group of bird watchers started WBCP. Soon members realized that the only way they could continue watching the many birds in the country was to ensure the protection of habitats. This led to the transformation of WBCP into an advocacy group—identifying critical habitats and raising awareness about the need for their protection. Recently, some of the Club’s volunteers were part of the scientific expedition that discovered an unknown bird species—the Calayan Rail in Babuyan Islands in the province of Batanes.

Through their efforts, and working in partnership with other environmental groups, members have identified about 100 bird species and their habitats within Metro Manila. They organize bird watching trips, attend various meetings, and set up exhibits to bring Philippine bird biodiversity, and the threats to bird habitats, to the public’s attention.

Source: Authors.

WILD BIRD CLUBO F T H E P H I L I P P I N E S

Environmental Champion — WILD BIRD CLUB OF THE PHILIPPINES

10

and 1,635 Socialized Forest Management Agreements

(covering 41,872 hectares) have also been awarded.

The total allowable cut in 2003 for all these agreements

was around 880,000 m3, down from 4.3 million m3 in

1990 for TLAs alone.

Although the number of TLAs has declined,

encroachment and illegal extraction continue, and

upland areas remain threatened. Reports indicate

that the country now imports about 60 percent of the

wood and wood products it consumes. To address the

need for wood and wood products, classified

forestlands have been further delineated into

protection forests and production forests. Production 14 Lasmarias, N.O. et. al., 2004.

ensure that the biodiversity crisis is addressed.

Foremost is the need to enhance and strengthen the

Protected Area System. The program also recommends

the prioritization of 206 sites which would need to be

established under NIPAS, of which 132 sites overlap

with the 209 initial components of NIPAS.

A subsequent study in 2004 provides an empirical

examination of how, and to what extent, population

variables influence biodiversity and the environment.

The study also provides maps illustrating the

vulnerability of conservation-priority sites to socio-

economic and demographic pressures; and identifies

13 Conservation Priority Areas with an “extremely

high/urgent” index of priority. It recommends the

integration of population and socio-economic

dimensions in conservation strategies and programs

at the national and local levels.14

Illegal logging. Illegal logging has not ceased,

despite the logging-ban imposed in many parts of the

country (Box 2). A large volume of illegally-cut logs

and lumber is apprehended by DENR field personnel,

the military, NGOs, and other partners. The volumes

of confiscations were highest in 1996 (14,499 m3),

2001 (14,368 m3) and 2002 (12,957 m3). However, the

number of apprehensions and volume of logs and

lumber apprehended or confiscated are not very good

indicators of the extent of illegal logging and

poaching. A more reliable and scientific basis for

assessing illegal logging is needed.

Commercial logging. The number of Timber

License Agreements (TLAs) granted for commercial

logging (and allowable cuts) has continued to

decline—from over 137 in 1987 to 14 TLAs in 2004,

covering 566,589 hectares (with only six of these

actually operating). A total of 195 Integrated Forest

Management Agreements (covering 704,328 hectares),

Box 2. Illegal Logging in Isabela, 1988 – 2000

Isabela is the largest province in northern Luzon, with a land area of 13,643 km2 and a population of nearly 1.3 million, settled mainly in the Cagayan river valley in the eastern part of the Province. The western part, mountainous and densely forested, is the location of the 395,500 hectares Northern Sierra Madre Natural Park. This park is considered one of the Philippines’s most intact and important protected areas. According to a detailed field study carried out in 1997, illegal logging and encroachment by small farmers are the main threats to the park, which has 24,000 inhabitants.

The local furniture industry, with 13 cooperatives and numerous shops, is the driving force behind illegal logging in Isabela and the corruption that it engenders. Narra (Pterocarpus indicus) is the timber of choice for the furniture industry, but the species is increasingly rare and is subject to a variety of DENR harvest restrictions. Thus, industry buyers mainly rely on illegally cut sources provided by small teams of loggers. Because such transactions are illegal, the principals involved—middlemen, sawmills, furniture makers, cooperatives, and the Cagayan Valley Chamber of Furniture—must make regular payments to a variety of civilian and military officials (including some DENR community and provincial offices). The Isabela case is unique only in that it has been so carefully documented. An investigation of fraud in the awarding of integrated forest management agreements (IFMA), for example, concluded that “a widespread pattern of fraud in the awarding of the agreements has resulted in rampant tree-cutting in areas intended for forest protection.”

Source: World Bank, 2003.


11

forests are to be offered to the private sector for

industrial tree plantations. Guidelines are now being

revised to streamline procedures, provide incentives,

and make industrial tree plantations more attractive

to the private sector. On the other hand, protection

forests are to be rehabilitated and protected under

co-management with LGUs and communities.

RESOURCE MANAGEMENT

Community-based forest management. Expansion of community-controlled forests is one of

the main official strategies for reforming the once

TLA-controlled timber industry. The Community-based

Forest Management (CBFM) Program consolidated

the Integrated Social Forestry Program, Community

Forestry Program (Box 3), Coastal Environmental

Program, and the Ancestral Domains Program. For

the Government, CBFM represents a fundamental

shift from seeing forest dwellers as enemies who

destroy natural resources, to partners in the protection

of the forests (Box 4). However, the actual performance

of this program, in terms of forest protection and

health, has not been rigorously analyzed.

The 1990 Philippine Master Plan for Forestry

Development stipulated that 1.5 million hectares (54

percent of the remaining 2.8 million hectares of

secondary growth forest below 50 percent incline

slopes) would be placed under CBFM during the

1990s. In addition, current and potential open access

areas, estimated at 5.9 million hectares, were also

slated to be placed under community-based

management. A DENR plan for CBFM currently

envisions that nine million hectares of forest land—

30 percent of the country’s total land area—will be

placed under community management by 2020.

As of June 2004, there are 5,503 CBFM sites, covering

a total tenured area of about 4.9 million hectares. Of

these sites, 1,577 (1.5 million hectares) are covered by

agreements which contain resource management

Box 3. Philippine-German Community ForestryProject – Quirino

The Philippine-German Community Forest Project-Quirino or CFPQ started in 1988 as a Social Forestry Component of the Philippine-German Dipterocarp Forest Management Project. The project was renamed as Philippine-German Integrated Rainforest Management Project in 1991 when a new phase expanded the coverage to five barangays. It focused on organizing and strengthening communities in preparation for the issuance of a forestry management agreement. The Project used an integrated approach with the communities managing the natural forest and utilizing the resources. Other components were included – natural forest management, sustainable agriculture, alternative income generation and community organizing.

Among its accomplishments, the Project has 19 peoples’ organizations (PO) and 12 CBFMAs, 15 municipal councils have adopted CBFM as a core natural management program, and GIS has been installed. The POs have been provided with technical assistance on financial and business management with 10 modules on financial management having been prepared. They are now marketing their agricultural products and effectively protecting and managing their areas. Their experience is recognized as a best practice in CBFM implementation and was featured during the Forestry Forum in Geneva in 2004.

Source: World Bank, 2003.

Box 4. Community-based Forest Management inBayombong, Nueva Vizcaya

The project “Developing Tropical Forest Resources through CBFM” in Bayombong, Nueva Vizcaya transformed grasslands into plantation/agroforestry, and enhanced natural regeneration within the 3000 ha forestlands. With secured tenure, existence of livelihood options, and strengthened POs, there are indications that the gains of the project will be sustained by the community.

Source: DENR-Forest Management Bureau.

12

frameworks and work plans. In addition, there are

180 ancestral lands with Certificates of Ancestral

Domain Claims covering an area of 2.5 million

hectares, some of which already have Certificates of

Ancestral Domain Titles. The Government envisions

that while these communities will still be allowed to

benefit from the forests, the residents will gradually

need to rely more on alternative sources of livelihood.

However, such alternative livelihoods are currently

not available to the majority of such communities.

Although CBFM is an alternative to top-down

management, many areas set aside for community

forestry are currently not under effective communal

management. Conversion of degraded forest lands to

agriculture remains a common practice. Local

governments continue to lack the technical and

manpower resources to assist communities in drafting

or implementing forest management plans.

While it is now possible for communities to gain

formal, legal tenure to forest land if they agree to

abide with conservation rules, the hand-over to

communities has not been smooth. There is an

apparent lack of social preparation. A recent

assessment of community-based forestry identified

the following key legal and institutional problems:15

• Communities are dependent on DENR clearance

and approval for acquisition of land rights. Even

where such rights have been granted, the long and

complicated process of securing the “Environmental

Compliance Certificate” makes it difficult for

communities to exercise their rights. Communities

can only take advantage of land rights after DENR

approves their resource management frameworks

and annual work plans. These documents are too

complex to be prepared independently by

communities, and are often produced by NGOs

or consultants.

• Local governments’ role relative to the DENR is

unclear, as the former is unable to issue resource-

use permits, file cases, or award land tenure.

• Community-based groups not only face

bureaucratic barriers, but they do so with very

limited physical, human, and financial resources.

Given the limitations within which they continue

to operate, it is difficult to see how they can be

expected to manage forest resources—a task that

much better funded government agencies and timber

companies have failed to accomplish. In reality,

communities that are unable to use their land rights

to gain access to forest land for conservation or

reforestation tend to bring more forest lands into

crop production since DENR does not regulate

the production and marketing of cash crops.

Forestry authorities, including those within DENR,

have acknowledged many of these shortcomings.

New programs, such as the Community Livelihood

Assistance Special Program or CLASP, are being

developed to provide alternative sources of livelihood

and access to micro-financing. Since its inception

in 2002, a total of 113 CLASP projects have been

funded, benefiting around 6,000 families in CBFM

areas all over the country.

Protected areas management. At least half the

identified protected areas still have no Protected Area

Management Boards (PAMBs), which are responsible

for developing and implementing area-specific

management plans. Unless an area assessment is

completed and the management plans subsequently

developed are adopted, there will be no clear

operational guidelines to protect core zones, restore

degraded zones, or develop multiple use and

buffer zones.

15 World Bank, 2003a.


13

In 2002, the combined budget for protected areas and

wildlife management, and DENR’s Protected Areas

and Wildlife Bureau, accounted for about four percent

of DENR’s total budget. Between 1998 and 2003,

protected areas received PhP1.4 billion from the

DENR budget and from government counterpart

funding (for projects receiving official development

assistance). Allocations to protected areas peaked

in 1998, but had fallen by 25 percent by 2003.

The Protected Areas and Wildlife Bureau budget

was almost halved, from PhP151.786 million to

PhP80.592 million between 1998 and 2003 due

to reductions in the maintenance and operating

expenses of some projects.

The Integrated Protected Areas Fund (IPAF)

generated PhP62 million between 1998 and 2001.

This fund was set up to provide resources to PAMBs

to implement local management and protection plans.

However, the decision of the original IPAF Governing

Board to include IPAF in the General Appropriations

Act—which goes through executive and legislative

approval, has made the process of accessing the fund

very tedious. Local communities and governments

view the process as a disincentive to actively support

protected areas within their jurisdiction.

NGO/PO-initiated forest management. Community forestry projects have also been

independently initiated by NGOs and POs. These

projects are different from NGO-assisted projects

that are funded by the Government. Detailed

documentation of such projects is not easily available.

Long-standing examples include the Kalahan

Educational Foundation in Luzon, and the Mag-

uugmad Foundation in Visayas. Active in community

forestry since 1973, Kalahan Educational Foundation

manages 14,730 hectares of ancestral lands covering

five barangays in Santa Fe municipality, Nueva

Vizcaya Province.

Private sector management. Perhaps the most

important change in forestry management has been

the shift away from TLAs to community-based

forestry, and the granting of land rights to

communities. However, the private sector has also

undertaken initiatives in conjunction with the DENR

to manage small but important plantations and

Environmental Champion — ASIN

The folk music group “ASIN” (Salt) was formed in the late 1970’s. It was a group of innovative musicians who offered alternative Filipino music, using indigenous musical instruments to celebrate Filipino culture. Composed of Lolita Carbon, Cesar Banares, Mike Pillora, and Pendong Aban Jr., ASIN was the first popular group to write songs containing environmental messages at a time when environmentalism was not yet well understood.

Aban and Banares came from Mindanao in Southern Philippines. Their experiences in their hometowns inspired their songs. They witnessed what was happening in the uplands—rampant illegal logging as well as violence.

In their own words, they say that they “just wrote about what they knew.” Their simple lyrics and melodies spoke of a reality with which people could identify.

Their most famous song Masdan Mo Ang Kapaligiran (literally means, Look at Your Surroundings) released in the late 70’s, made people realize that environmental degradation was a commonly-felt problem about which something had to be done. This song has now become a battle cry of the environmental

movement in the Philippines. Now in its 25th year, ASIN remains an active advocate for the environment and Filipino culture.

Source: Authors.

14

watersheds. Notable among these initiatives is a

program started by the Manila Electric Company

(Meralco), in association with the DENR. Since 1992,

Meralco has been sponsoring the Tree Plantation

Project in Montalban, Rizal, to reforest some 930

hectares of rugged land with 700,000 acacia and

bagras trees. In addition, it has also invested in two

large nurseries for acacia and mahogany trees.

The ABS-CBN Foundation, through its Bantay

Kalikasan, has adopted the 2,700 hectare La Mesa

watershed and mobilized cross-sectoral support for

rehabilitation and protection of 1,400 degraded

portions of the watershed, as well as the development

of some areas as an ecopark. Executive Order No. 233

(Series of 1997) gave the Philippines National Oil

Company (PNOC) the responsibility to manage

watershed areas within its four geothermal

exploration sites. The social forestry program started

by PNOC-EDC in 1985 now benefits 73 communities

Environmental Champion — RAUL ZAPATOS

Source: Authors.

In 1990, Raul Zapatos, a forest guard in the DENR was involved in a shooting incident in Bayugan, Agusan del Sur. His team was manning a DENR checkpoint when it apprehended a truck that lacked the necessary permit to transport logs. It was alleged that the Mayor owned the truck and that the logs were supposed to go to the Mayor’s sawmill. Even when the Mayor talked to him, Raul refused to change the report he had submitted to his superior, the Community Environment and Natural Resource Officer (CENRO). Upon the Mayor’s request, CENRO released the truck but confiscated the logs. A few months later, Raul Zapatos’ team again apprehended the same truck and confiscated both the logs and the truck. Raul Zapatos’ refusal to give in to the Mayor’s demands angered the Mayor. One night, the mayor and his men went to the checkpoint and fired at it. Raul, fired back in self defense, not knowing who had fired at him. He later discovered that he had shot and killed the mayor and wounded one of his bodyguards. Raul surrendered and was

brought to trial. While he won the case at the Regional Trial Court, the Mayor’s family filed another case with the Sandiganbayan. Raul Zapatos was found guilty, sentenced to life imprisonment, and committed to the New Bilibid Prison in Metro Manila.

During the years of his imprisonment, his wife and seven children struggled to survive. With the help of his superiors, fellow workers, and sympathizers, Raul appealed his case with the Supreme Court. In September 2003, after thirteen years, the Supreme Court reversed the decision of the Sandiganbayan and acquitted Raul. After his release, the DENR gave him a spot promotion, back salaries, and he was

honored in official ceremonies. In spite of management’s concerns for his safety, Raul remained steadfast in his commitment to protect the forest and immediately wanted to get back to work. He continues to work at the DENR Region X office where he is an inspiration to all his colleagues and clients.

A panoramic view of a watershed.

Source: DENR-Protected Areas and Wildlife Bureau.


15

and more than 3,000 families in Leyte, Negros

Oriental, Bicol, and North Cotabato. The company

has established 8,049 hectares of plantations to

replace the 445 hectares it has developed for

geothermal projects. It allocates 67 percent of its

annual environment budget to watershed

management, and has been recognized nationally

by both government and non-governmental groups

for its contributions.

LEGISLATION AND INSTITUTIONS

In June 2004, the Government issued Executive Order

No. 318 entitled “Promoting Sustainable Forest

Management in the Philippines”. It updated PD 705

(Revised Forestry Code of the Philippines). The order

identified watersheds as ecosystem management

units to be managed through a scientific and

community-based approach that would involve

LGUs, and recognize and respect the rights of

indigenous peoples. The order aims to clarify the

categorization of state forests and stem the conversion

of forests into non-forest uses. An updated Sustainable

Forestry Act is under discussion in Congress. The

DENR has recently adopted the criteria and indicators

for sustainable forestry, developed with the

International Tropical Timber Organization (ITTO).

These will be implemented under the recently-

approved ITTO-GoP pilot project.

Despite the issuance of several acts, bans on logging,

and apparent promotion of community-based

forestry, forested areas and biodiversity are under

constant threat in the country. Significant hurdles

against effective natural resources management

include: conflicting agendas; lack of national and

local government capacity to effectively monitor

forests, implement policies, and engage local

communities in effective dialogue and decision-

making; lack of livelihood for poor upland and

lowland settlers; and insufficient funds for protected

areas management.

Kaliwa Watershed.


An endangered, old tree.


16

BROWN ENVIRONMENT

Source: DENR-National Solid Waste Management Commission.

For the past three decades, economic growth in the

Philippines has been fueled by rapid industrialization,

urbanization, and intensified agricultural production.

In the absence of effective environmental management,

these growth engines have also resulted in air-, water-,

and soil pollution. As urban centers have grown, there

have been significant negative impacts on quality of

life, especially for the poorest residents. Owing to its

size and importance in the national economy, Metro

Manila has the most pressing air, water, and solid

waste pollution.

Community-based and private sector initiatives are

on the rise in almost all areas. While these initiatives

have succeeded in raising awareness, and assist

communities in assuming responsibility for

environmental improvement, the Government still

has a critical role to play in the provision of

environmental public goods.

This section outlines trends in solid waste

management, and air- and water pollution. It also

covers the main legislative and institutional changes

needed to better address waste management

and pollution.

SOLID WASTE MANAGEMENT16

Mismanagement of waste has serious environmental

consequences: ground and surface water

contamination, local flooding, air pollution,

exposure to toxins, and spread of disease. Many of

the disposal sites contain infectious material, thus

threatening sanitation workers and waste-pickers.

Organic waste decomposition releases greenhouse

gases, and burning of waste releases toxic gases. Odors

from non-sanitary landfills can be so bad that people

living in the surrounding areas are taken ill.

16 This section builds on the Philippines Environment Monitor on Solid Waste 2001b.

Even to the casual observer, the environmental,

human health, and aesthetic impacts of solid waste in

Philippines’ urban areas are substantial. While the

former have been studied at length, there are few

reliable cost estimates of either human health or

environmental impacts of solid waste mismanagement

in the Philippines.

Solid waste generation. Solid waste generation in

the Philippines is comparable to that in other low-

middle income countries. An average Filipino

generates 0.3 and 0.5 kilograms (kg) of garbage daily

in rural and urban areas respectively.17 The National

Capital Region and Southern Tagalog Regions

respectively account for 23 percent and 13 percent of

the total garbage generated annually. A recent ADB

study showed that 6,700 MT of waste is generated

daily in Metro Manila alone with composition shown

in Figure 5.18 Annual waste generation is expected to

grow 40 percent by 2010. Improvements in recycling,

Others15%

Food / Kitchen Wastes45%

Glass andWood9%Plastic

15%

Paper16%

17 Report from the National Solid Waste Management Commission. Makati City, the richest LGU, has a per capita waste generation rate of 0.71 kg.18 Asian Development Bank, 2004.

Figure 5. Household Waste Composition inFive LGUs of Metro Manila, 2003


17

collection, and disposal will become even more

critical as garbage production continues to increase

with population growth and economic development.

Collection. It has been estimated that over PhP3.54

billion is spent annually on collection and disposal

of Metro Manila’s solid waste. In 2001, anywhere

from five to 24 percent of the total expenditures of

Metro Manila’s local governments went to solid

waste management. Most of this money was spent

on private hauling contracts. Despite this high

percentage of spending, the system requires

significant improvement.

The 1998 National Demographic and Health Survey

reported that 30 percent of households had access to

solid waste collection at varying frequencies, ranging

from twice a week to once every two weeks. More

recent estimates by the National Solid Waste

Management Commission have put collection

efficiency at 70 and 40 percent in urban and rural

areas, respectively. In areas where residents lack access

to solid waste collection, garbage continues to be

thrown indiscriminately or burned. In Metro Manila,

burning of waste by individuals and at illegal

dumpsites also contributes to a significant percentage

of the city’s particulate pollution.19

Disposal. Solid waste disposal continues to be a

growing crisis in urban centers in the Philippines. In

Metro Manila, two landfills—Carmona in Cavite

Province, and San Mateo in Rizal Province—both

operated by the Metro Manila Development Authority

(MMDA)—were closed in 1998 and 2000 respectively.

Together, these two landfills had accepted between 40

and 50 percent of Metro Manila’s daily garbage.

Although they had been designed as sanitary landfills,

they were not operated as such, and were closed due

to environmental and social concerns, including

19 DENR-Environment Management Bureau, 2002.

contamination of ground and surface water, and foul

odors. As a result of the closure of these landfills,

garbage is now disposed in six open or controlled

dumps in Metro Manila (Figure 6). However, these

sites have the capacity to accept waste for only two

more years. According to a 2004 ADB study, the

Rodriguez and Payatas waste sites generate an

estimated 26 kilograms of lead and 76 kilograms of

arsenic annually. These contaminants are released

into the water bodies surrounding Metro Manila.

Open Dumpsite.


Controlled Dumpsite in San Fernando, La Union.

Source: DENR-National Solid Waste Management Commission, Briefing Report, 2004.

18

A sanitary landfill is being developed within the

Rodriguez controlled dumpsite to serve the needs of

Metro Manila. Construction of this landfill is expected

to begin in the first quarter of 2005. Sites are also

being surveyed by DENR and MMDA for two

possible final disposal sites in Quezon province.

While the Ecological Solid Waste Management Act

(ESWMA) had set February 2004 as the deadline for

shifting from open to controlled dumping, waste

continues to be disposed in 866 open dumpsites

outside Metro Manila. There are only 125 operating

controlled-dumpsites nationwide. The law also

mandates the shift to sanitary landfills by February

2006. Yet, there are only two operating sanitary

landfills,20 with two others under construction (at

Puerto Princesa City, Palawan and Bais City, Negros

Oriental). Another 109 sanitary landfill site-proposals

are under various stages of development.

Recycling. There is no reliable data on the extent of

recycling and composting in the country, as recycling

remains largely an informal-sector activity. Data from

some sectors indicate that recycling is on the rise. Yet,

only a small percentage of the total waste generated

20 Two sanitary landfills serve the Clark EcoZone and the province of Tarlac in Luzon, and Cebu City in the Visayas.

Bins for waste segregation.


Figure 6. Metro Manila Dumpsites Capacity,2004

3,500

3,000

2,500

2,000

1,500

1,000

500

0

2,200

1,200

3,500

180 200 160

800

210

Paya

tas

Rodr

igue

z

Bagu

mbo

ng

Ling

unan

g

Pula

ng L

upa

Doñ

a Pe

tra

Tanz

a

Cat

mon

Source: Asian Development Bank, 2004.Note: Controlled Dumpsites: Rodriguez, San Isidro; and Linginang, Pulang Lupa, Doña Petra, and Tanza in Metro Manila. Open Dumpsites: Payatas, Quezon City; Bagumbong, Caloocan City; and Catmon, Malabon.

in the Philippines is recycled or composted. In 1997,

six percent of solid waste was recycled in Metro

Manila. By 2000, this had grown to 13 percent,

primarily due to efforts made by the MMDA and

NGOs to promote segregation at source, composting,

and recycling. An MMDA Ordinance passed in 1999

mandated source segregation. With the passage of the

ESWMA, a growing number of LGUs are

implementing integrated waste management, which

encourages reduction, recycling, composting, and

reuse of material. As of mid-2004, 397 LGUs (24

percent) are known to practice ecological waste

management. A total of 976 materials recovery

facilities serve either one or a cluster of barangays, or

an entire LGU. Of these facilities, 126 are in Metro

Manila. From 1998 to 2003, the volume of waste

traded by the Federation of Multipurpose

Cooperatives in Metro Manila (an association of junk

dealers) has tripled from 69,400 MT to 209,770 MT,

and it’s value has increased from PhP95 million to

PhP268 million. Data from the operator of the

Rodriguez controlled-dumpsite shows a recovery rate


19

Box 5. Payatas, Rising From Tragedy

Payatas dumpsite, has been Quezon City’s solid waste disposal site for almost three decades—serving its 2.3 million people who generate about 1,500 tons of waste daily. In July 2000, a landslide of garbage that killed more than 200 waste pickers prompted the enactment of the Ecological Solid Waste Management Act. As required by the Law, Payatas was immediately converted to a controlled dump facility, and some danger zones completely closed.

Today, Payatas has been transformed into a waste disposal facility with organic waste composting, recyclable wastes recovery, and landfill gas extraction. A one-megawatt Payatas Methane Gas to Power Generation Project (the first in the country), which will supply electricity to 2,000 households in the area over the next 10 years, was commissioned in July 2004. Other initiatives to make Payatas a self-sustaining community include providing security of housing tenure under the government’s Community Mortgage Program, improved access to basic services, especially clean water, scholarship grants to students, construction of access roads, credit cooperatives, and livelihood programs.

Source: Asian Development Bank, 2004.

of 25–30 percent on incoming waste through

secondary sorting prior to final disposal.

Hazardous and infectious waste. Approximately

2.3 million MT of hazardous waste is generated by

industries every year. By 2004, 3,015 hazardous waste

generators had been registered with the Environmental

Management Bureau (EMB).21 Oil, immobilized

waste, containers, and plating waste make up more

than half (55 percent) of recorded hazardous waste

nationwide. Hospitals generate an additional 6,750

tons of infectious waste annually. The national capital

region contributes 34 percent of hazardous and 47

percent of infectious waste.

About half the waste generated by registered industries

is treated off-site, and 2.5 percent of this waste is

recycled. A quarter of the total hazardous waste

generated is also recycled. As of July 31, 2004, DENR-

EMB had recognized 92 treaters/recyclers and 308

transporters of hazardous waste. More than half the

recycled hazardous wastes are oils (51 percent) and

49 percent are inorganic chemicals.

Community-based waste management. A number of successful community-based ecological

waste management projects can now serve as model

initiatives (Box 5). Several LGUs and NGOs have

initiated community-based campaigns to reduce and

recycle waste. To encourage communities to undertake

such projects, DENR, the Department of Interior and

Local Government, and NGO and business partners

recently launched a Nationwide Search for Model

Barangays for Ecowaste Management. More than 500

barangays participated; and the top winner received

PhP1 million from the Office of the President.

While such campaigns do have positive local impacts,

waste management is still perceived by many as the

responsibility of governments. Public participation

21 This is a large increase from the 721 generators that were registered in 2001-DENR-EMB, 2004.

in waste management, especially in segregation at

source, remains limited. More extensive awareness-

raising activities and training on ecological waste

management are needed, together with stricter

enforcement.

Private sector initiatives in waste management. (Box 6). In addition to ensuring that their operations

comply with environmental laws, more manufacturers

are actively implementing schemes to recover waste

and to recycle products. The Philippine Business for

the Environment, in cooperation with companies

and NGOs, holds the Annual Recyclables Collection

Event where anyone can recycle materials such as

paper products, recyclable plastic bottles, aluminum

cans, polystyrene packaging waste, and old or broken

electronic equipment. This event has been so

successful in Metro Manila, Laguna, and Quezon

City, that it has now become a regular feature of

the celebration of Earth Day in the Philippines, and

20

Box 6. Private sector activities in ecological solid waste management

• Polystyrene Packaging Council of the Philippines is a group of 21 foam polystyrene producers who have set up a recycling plant. The Council advocates for localized recycling of packaging waste, and recovered 8000 cubic meters in 2003.

• Coca Cola Bottlers Philippines Inc. manages a major campaign to promote the recovery of non-returnable but recyclable soft drinks containers. Cans are processed into aluminum sheets and tubes, which are then turned in various consumer products, including mobility aids for people with disabilities. In 2002, Coca Cola also begun recycling plastic (polyethelyne terapthalate–PET) bottles. This recycling program has recovered 4.1 million aluminum cans, and three million PET containers.

• Pulp and Paper Manufacturers Association is collaborating with various sectors to improve the recovery of wastepaper. Many government agencies have an ongoing wastepaper recycling program with Recyclean Foundation. The foundation collects the wastepaper based on a pre-agreed schedule and returns paper products needed by the concerned offices.

• The Philippine Recyclers Inc., an NGO, Bantay Kalikasan, and DENR have together launched an advocacy campaign to improve the recovery and recycling of used lead-acid batteries. About 30 percent of the 200,000 lead-acid batteries sold in the country are not properly recycled. The project continues to grow; collecting 204 tons in 2003 and 340 tons in the first three quarters of 2004. This is equivalent to 73,759 liters of sulfuric acid and 590 tons of lead prevented from polluting the environment. More than 50 companies are now actively supporting the campaign.

• San Miguel Corporation is establishing three PET recycling plants, and working closely with Coca Cola bottlers. It has also entered into an agreement with the DENR and the Department of Education to institutionalize recovery of PET bottles from public schools in the Metro Manila region.

Source: Authors.

has been expanded to Baguio, Cebu, and Davao.

Economic value gained from the event totaled

PhP285, 000 in 2004.


The Ecological Solid Waste Management Act calls for

the institutionalization of a national program that

will manage the transfer, transport, processing, and

disposal of solid waste in the country. The National

Solid Waste Management Commission (NSWMC) is

the major agency responsible for providing guidance

and overseeing the implementation of this Act.

According to the Act, different levels of local

government are responsible for various aspects of

waste management. The barangays are responsible

for ensuring segregation at source, collection of the

bio-degradable and recyclable components, and

setting up materials-recovery facilities. The city or

municipality takes care of collecting the residual

non-biodegradable and hazardous waste, and its

final disposal, except in Metro Manila where disposal

is within the mandate of the Metro Manila

Development Authority.

The performance of cities and municipalities in solid

waste management continues to be poor. Insufficient

numbers or inappropriate collection vehicles, their

inability to reach households or collection stations,

and shortage of transfer points are the main

infrastructure problems. Metro Manila and 11 other

cities and municipalities have contracted garbage

collection to the private sector to improve coverage.

Although many local governments spend a high

percentage of their budget on solid waste management,

they are not able to recover significant portions of

these expenses through fees assessed on either

households or businesses. Local businesses pay for

solid waste management through their annual

business permits. However, these charges are

unrealistically low, are seldom revised to reflect higher

costs, and do not accurately reflect the actual cost of

collection and disposal. Only a few of the wealthier

barangays have implemented household fees, and

some studies suggest that the willingness to pay for

services is still very low.

Multi-sectoral solid waste management Boards at the

province, city, and municipal levels have been created


21

Environmental Champion — AYALA FOUNDATION

Source: Authors.

The Ayala Foundation is the social-responsibility wing of the Ayala Corporation, a leading business conglomerate in the Philippines. In 1996, Ayala with assistance from the Metropolitan Environmental Improvement Program, began implementing ecological waste management in four buildings it owned. Residents were encouraged to segregate their waste at source. The building administrators provided a system for the recovery of biodegradable and non-biodegradable components of the waste. Relationships with buyers of the recyclables were formalized. Working with environmental NGOs, Ayala Foundation provided orientation and training to the building occupants. Soon, all tenants of the Ayala Commercial Center were also required to segregate their waste and implement ecological waste management, even before a law requiring the same was passed.

By 2001, the campaign was expanded to other buildings and firms in the central business district of Makati City. Cooperators included the Management Association of the Philippines, the Makati Commercial Estate Association, and the Ayala Center Association. The target was to reduce non-recyclable by 25 percent in two years. This has been exceeded with waste decreasing from 80 tons to 24 tons per day. As of July 2002, 160 buildings were implementing waste segregation with six buildings doing their own composting. An average of 34,600

kg of recyclables is produced every month. In addition, a Materials Recovery Facility (MRF) has been set up within the commercial center (a first in the country) where anyone can bring waste materials for composting or recycling.

The Ayala Town Center in Muntinlupa City, Ayala Center in Cebu City, and the Cebu Business Park have adopted similar waste management practices. The Foundation and Ayala Land Inc. in Cebu are also involved in reforesting Kotkot Lusaran and Mananga watersheds. A nursery area has been established to house about 100,000 seedlings every year. About 40,000 seedlings are now being grown, together with 5,000 saplings of indigenous species. The group aims to cover the 70 hectare Ayala Property within the area with gabions and check dams for water conservation.

in almost all LGUs to develop and implement

ten-year solid waste management plans. Some of

these boards are receiving assistance from UNDP;

however, most are not actually functional. In fact,

of 117 cities and 1500 municipalities, only nine cities

and 46 municipalities have prepared and submitted

their ten-year plans to the National Solid Waste

Management Commission for review. The actual

implementation of these plans may, however, be

constrained by the current level of government

appropriation, inadequate technical capacity to

operationalize these plans, and the lack of political

will among local and national leaders to enforce

the law.

AIR QUALITY22

Air pollution. Urban smog, smoke-belching buses,

and industrial smoke stacks are visible reminders of

air pollution. However, air pollution is not just an

aesthetic problem; it also causes acute- and long-term

health problems (Figure 7). Thus, the costs of air

pollution are felt not only at the individual, but also

at the national level. Diesel emissions from buses,

jeepneys, utility vehicles, and trucks are estimated to

be the largest contributor to urban air pollution, and

are also recognized carcinogens. Fine particulate

matter (PM10) penetrates the upper defenses of the

respiratory tract and deposits deep in the lungs, and

affects human health.

22 This section builds on the 2002 Philippines Environment Monitor on Air Quality, 2002.

22

Figure 7. Type of Illness 1992-2000

Source: DOH-National Epidemiology Center.

Circulatory3% Water-Related

Diseases31%

Others4%

RespiratorySystem62%

Numerous international studies have computed the

numbers of pollution-related excess-deaths and

incidence of disease, and associated costs.23 Based on

established methods, the health costs of PM10

pollution in four cities (Metro Manila, Davao, Cebu,

and Baguio) for the year 2001 have been estimated to

be more than US$400 million. These costs account

for 2.5 to 6.1 percent of per capita income in these

cities, equivalent to 0.6 percent of the country’s GDP.

The population of the four cities represents 28.4

percent of the total urban population. If the rest of

the country’s population is assumed to be exposed to

pollutant levels similar to those in these four cities, a

high annual estimate for urban health cost for the

country is over US$1.5 billion.

In addition, recent studies in the Metro Manila

airshed have found that the levels of outdoor and

indoor PM10 have a strong positive correlation at

statistically significant levels; and that exposure to

high levels of indoor air pollution is a major health

problem.24 However, the extent of indoor air pollution

in the country is yet to be quantified.

Sources. Air pollution is generated by point sources

such as vehicles, industries, and power plants, and

area sources such as road dust, construction, waste

burning, and open cooking in urban and rural areas.

There are over 100 identified air pollutants that can

be categorized as particulates of various sizes (TSP—

or total suspended particulates, is used as proxy

measure for all particulates), oxides of sulfur and

nitrogen, volatile organic compounds, and ozone.

Noise and odor are under the jurisdiction of local

governments and are considered a nuisance. Indoor

air pollution is equally a concern, as the levels of

contaminants are higher inside confined spaces where

people may spend most of their time. Common

sources of indoor pollution are cigarette smoking,

and burning of kerosene, liquid petroleum gas, and

biomass fuel (e.g. wood and charcoal) for cooking

and lighting.

The transport sector continues to be a significant

contributor to air pollution. In 2003, there were 4.3

million registered vehicles in the country (Figure 8)

—a threefold increase within the past two decades.

This trend is expected to continue as vehicle

ownership usually rises with increases in income.

Of all vehicles, 70 percent are gasoline-powered and

the rest use diesel. However, most of the high-mileage

Waste Segregation.


23 Clean Air Initiative for Asian Cities website: http://www.cleanairnet.org/caiasia.24 Department of Health, 2004.


23

public utility vehicles are diesel-powered. Diesel-

powered vehicles emit a significant amount of fine

particles. Nationally, utility vehicles outnumber

personal cars by a ratio of 2:1. Despite advances in

pollution-control technology, a large increase in

utility vehicles combined with low turnover

contribute significantly to air pollution.

On the positive side, sales of four-stroke engines for

motorcycles increased dramatically in the first nine

months of 2004—accounting for 91.5 percent of the

total motorcycle market. Four-stroke engines account

for 75 percent of motorcycles sold for use in three-

wheelers within the same period, up from only 25

percent in 2001. If this growth is sustained, the

Philippines will be able to catch up with other

countries in the region that have completed the

transition to four-stroke engines in motorcycles,

thereby reducing the pollution from particulate

matter, hydrocarbons, and carbon dioxide, and also

reducing noise.

Industrial emissions are also significant polluters. A

1998 DENR survey of 737 industrial establishments

revealed that nearly two-thirds did not have the

Traffic congestion leads to increased pollution.


necessary air-pollution-control facilities.25 The air-

pollution control devices installed in the remaining

third were not operational because companies

believed that these were very expensive to operate.

However, a total of 8,024 pollution permits were

issued by the EMB regional offices in 2003. Of these,

63 percent were for air-polluting industries. By June

2004, another 7,104 permits had been issued. The

majority of industrial sources are located in the Metro

Manila airshed.26 Since the number of air pollution

permits granted since 1998 has risen steeply, it would

be interesting to see how many industries that applied

for permits actually installed air-pollution-control

devices, what percentage of these devices is operational,

and whether these devices have contributed to

improvements in air quality.

Power generation is a major source of sulfur-dioxide.

The lowering of the sulfur content of industrial diesel

to 0.3 percent in January, 2001, and the planned shift

Figure 8. Nationwide Motor Vehicle Registration, 2003

Source: DOTC-Land Transportation Office.

Buses 1%

Cars 17%

MC/TC36%

Sports Utility Vehicle 16%

Total Vehicles: 4,292,272

UtilityVehicles

36%

Trailers 1%

Trucks 6%

25 DENR, 1998.26 As required by the Clean air Act, EMB has designated the National Capital Region, and the area between Batangas to the South and Bataan to the North, as the Metro Manila Airshed.

TSP

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24

28 This includes eight power plants, two cement plants and two refineries. DENR-EMB, 2002.29 DENR, 2003.

to natural gas under the Philippine Energy Plan, will

reduce sulfur dioxide emissions from the power

generation sector. The share of natural gas is to

increase to 7.9 percent of the primary energy mix

by 2007.27

Area sources of pollution are widespread, difficult to

estimate, and generally overlooked even though

controlling these sources is a cost-efficient way to

improve air quality. Unpaved roads and pavements,

unturfed center islands, building and road

construction, and traffic are the main contributors

to re-suspended dust. The contribution of refuse-

burning to local air pollution has not yet been well-

quantified, although it is known to be a major source

of air pollution.

With stronger enforcement of the requirement for

submission of quarterly self-monitoring reports,

major industries, particularly power and cement

plants, now regularly prepare reports that monitor

compliance to emission standards. Additionally, as of

2003, in compliance with Department Administrative

Order (DAO) 2000-81, Continuous Emission

Monitoring Systems (CEMS) for particulates, and

Emission Testing.


sulfur and nitrogen oxide emissions have been

installed in 12 industrial plants.28

Air pollution trends. Manual samplers are used by

DENR to monitor TSP at over 40 stations nationwide

(Figure 9). Data in 2003 and 2004 show that majority

of the stations exceed the standards although there

is a slight improvement. Thirty-one percent (31%)

were within the standards in 2004 up from 23% in

2003. Highest record was in Station 9, Davao (2003)

and Bocaue, Bulacan (2004).

In Manila there is a decline in the incidence of daily

average TSP levels exceeding guidelines. As of 2003,

TSP annual mean concentrations of ambient air in

most monitoring stations in Metro Manila decreased

by an estimated 14 percent compared with those

recorded in 2000.29 This improvement can be partly

27 Department of Energy, 2003.

Source: DENR-Environment Management Bureau, Central and Region Offices – CAR, R7, and R11.

Figure 9. Annual Total Suspended Particulate (TSP) Concentration, 2003-2004


25

attributed to repeated anti-smoke belching campaigns

carried out by local governments, MMDA, Land

Transport Offices of the Department of Transport

and Communication, and NGOs, and to the lowering

of the sulfur content of diesel. Ambient concentrations

of ozone and nitrogen oxides, while still within the

standards, are on the rise, mostly due to a rapid

increase in the number of motor vehicles.


The Clean Air Act (1999) aims to provide a

comprehensive air pollution control policy for the

country. However, implementation difficulties point

to the complexities associated with solving a problem

involving many agencies. Inter-agency collaboration

remains a challenge despite many multi-sectoral

working committees and memoranda of agreement.

Lack of provincial and local government capacities

for air quality management will be further exposed

as these entities are under-prepared to carry out

the functions devolved to them by the Clean Air

Act (CAA).

Preliminary estimates for implementing parts of the

Act indicate that the country will need to spend at

least PhP25 billion between 2000 and 2010.

Notwithstanding limited funding, progress in the

Environmental Champion — PUERTO PRINCESA CITY, PALAWAN PROVINCE

Source: Authors.

Puerto Princesa has consistently won the award of being the Cleanest and Greenest City in the Philippines. The city has not only been at the forefront of environmental protection but has also paved the way for others. Mayor Hagedorn, it’s dynamic leader, recognized the urgent need to save the last frontier of the Philippine forests when he first took office. During his first term, he began a major offensive against illegal logging. The Mayor recognized that upland settlers needed alternative sources of livelihood that would reduce their dependence on forests. With limited funding, the city leaders declared the forests of Puerto Princesa a “natural calamity.” This allowed them to tap into the calamity fund, which is set aside for unforeseen natural disasters. This was considered a very bold and creative move, since at the time only

the President had the authority to declare a “calamity”. Mayor Hagedorn’s political opponents criticized him and challenged him in the courts. But, he persisted and eventually won the court case, thus opening the door for other local chief executives to follow suit.

At the same time, a massive reforestation program was also launched. The effort involved thousands of stakeholders, especially school children. Thus began the annual celebration of the “Pista y Kagueban” (Feast of the Forest) during the Environment month celebrations in June. Since 1990, more than 1.5 million trees have been planted and the city’s watershed has been fully replanted. Reforestation efforts have since moved to another forest area within the city. Survival rate has also substantially improved from only a little over 40 percent to 87 percent.

Puerto Princesa also has the very first local government to make a serious effort to stop smoking in public places. All residents have been deputized to apprehend violators. So effective is this campaign that passengers of all inbound flights are told to strictly follow this policy or risk being apprehended. In fact, a school child welcoming a senator to the city once apprehended his esteemed visitor when he threw a cigarette butt on the ground. The senator was made to pay the penalty based on this citizen’s arrest.

The City has also put an odd-even scheme for tricycles into place. Working in partnership with the tricycle drivers and operators associations, tricycles are banned from the road on certain days depending on the last number of their license plate. This policy has decongested the city, and reduced traffic emissions. With the support of the Motorcycle Manufacturers Association, free technical training is being provided on the proper maintenance and operations of tricycles.

26

Environmental Champion — SISTER AIDA VELASQUEZ

Source: Authors.

Sister Aida Velasquez of the Missionary Benedictine Sisters Order was trained as a chemical engineer. In 1976 she helped organize the people in San Juan, Batangas province, to oppose a proposed copper smelter project. The suspension of the project is considered a milestone in Philippine environmental protection advocacy. Her missionary work in Leyte, Bataan and Marinduque often involved local environmental risks. Through information campaigns on the hazards of nuclear power, and popular mobilization she opposed the commissioning of the Bataan Nuclear Power Plant. Sister Aida also worked with communities in protesting against Marcopper’s polluting operations, especially the dumping of highly toxic mine tailings into Calancan Bay.

Sister Aida now serves as Coordinator of “Lingkod Tao Kalikasan” (In the Service of Human-Earth Community), an NGO that was formed in 1985. Its main focus is ecological education in rural areas. Siste Aida kept vigil for the cause of Raul Zapatos, a DENR forest guard who was unjustly imprisoned, providing a voice for Raul, calling for justice until the Supreme Court finally acquitted him.

Sister Aida frequently represents the country in international conferences such as the Earth Summit and the World Summit for Sustainable Development. She was instrumental in drafting the Philippine Agenda 21. In 1997, UNDP honored her as one of 25 Women Leaders in Action.

implementation of the CAA has been achieved in the

following areas:

• Rise in the number of designated airsheds from six

in 2003 to 14 by August 2004;

• Intensified anti-smoke-belching drives in urban

areas;

• Further reduction of aromatics in unleaded

gasoline, from 45 percent in 2000 to 35 percent in

2003, and the lowering of benzene content, from

four to two percent;

• A 75 percent reduction in the sulfur content of

automotive diesel by January 2004;

• Nationwide implementation of emissions-testing

requirement prior to registration;

• Ban on incineration;

• Setting-up of 12 networked electronic stations;

• Improvement in automotive technology;

• Promotion of coco-methyl ester and bio-diesel;

• Expansion of the mass-transit system within Metro

Manila, and improvement and extension of the

North and South Rails; and,

• Switch to natural gas use in power plants and

industries, as well as for public buses.

In an attempt to reduce noise pollution, in May 2004

the government issued an order imposing a fine on

the use of vehicle-horns while traveling on major

highways around Metro Manila.

Public awareness and participation. Active

non-governmental initiatives have raised public

awareness; and provide examples of possible actions

on a small scale (Box 7). However, a Knowledge,

Awareness and Practice Survey, conducted by the

Public Information Agency for DENR in 2001 (Figure

2), noted that although more than 72 percent of

Manila’s residents were alarmed by air pollution, only

28 percent said they were aware of government

actions to control this pollution. The results of this

survey highlighted the need for more targeted

information, education, and communication

campaigns using mass media and interpersonal

communications. The Partnership for Clean Air and

DENR are using the results of the survey to guide

them in preparing a public awareness action plan

under the Metro Air Program.30 To judge the

30 Metro Manila Air Quality Improvement Sector Development Program.


27

effectiveness of these information, education, and

communication campaigns and to identify other

perceived areas of concern, another Knowledge,

Awareness, and Practice Survey is expected to be

undertaken in 2005.

WATER QUALITY31

Data on surface and groundwater quality and

availability indicate that access to clean water is

becoming an acute seasonal problem in many urban

and coastal areas. Poor water quality has large

economic and quality-of-life costs in terms of health

impacts, potable water costs, foregone tourism

revenues, lost fisheries production etc. Sanitation and

sewerage remain problematic, as only a small percentage

of the population is connected to sewerage systems.

In urban areas, discharge of domestic waste water is a

major source of water pollution. This section briefly

examines the current state of water supply and

sanitation in the country, and gives an overview of

recent legislative and institutional innovations to

improve access to clean water and related services.

Surface and ground water resources. Overall,

the Philippines is endowed with rich water resources.

Rivers and lakes cover 1,830 km2 or 0.61 percent of

the total area. The Philippines has 421 river basins in

119 proclaimed watersheds. However, within South

Asia, it ranks among the lowest in terms of annual

Box 7. Miriam College and the Ateneo de Manila University—Leading by Example

Miriam College, a private school in Metro Manila, has taken a leadership role in educating people on the importance of clean air. The School took a lead role in organizing a loose coalition of twelve schools in Metro Manila that regularly hold education seminars and street campaigns to raise public awareness about the issue. Clean Air Camps are organized to deepen student and faculty understanding of air pollution problems. The college also engages students in advocacy through its series of Dialogues with Legislators. In addition, Miriam College practices what it preaches. From 1992 to 2002, all vehicles that required a sticker to park at the school were subject to emissions testing. A minimal fee was charged for the testing, which was conducted with the support of the DENR-EMB, MMDA and private groups. Approximately 5,860 student and faculty vehicles, and 140 school buses were tested annually. In 2001, bus owners were also trained on preventive maintenance. Realizing that many highly-polluting three-wheelers (tricycles) also enter their campus, Miriam College also developed and implemented a program for emissions testing and preventive maintenance for these tricycles. Free emissions testing of almost 300 tricycles was undertaken in partnership with the MMDA.

The Ateneo de Manila University also adopted a similar program starting in 2000. The school tapped its Environmental Science students and made emissions testing part of their school practicum. An average of 12,600 vehicles were tested each year. Revenue from the emissions testing was used to purchase the school’s own emissions testing equipment. In addition, the University’s Manila Observatory has been monitoring PM10 since July 2000. PM10 level within the campus average 70 ug/Ncm, or is moderate with no cautionary indicators. Both these emissions testing programs were stopped after the Land Transportation Office implemented mandatory emissions testing of all vehicles in January 2003.

Miriam College also organized the Usapang Trike project. This included a series of meetings, and preventive maintenance training to reduce hydrocarbon and carbon monoxide (CO) emissions. The project was conducted in partnership with the Motorcycle Development Participants Program Association, the National Federation of Tricycle Owners and Drivers, and the Academy of Educational Development. One of the key findings of the Usapang Trike project was that the use of high quality 2T oil for two-stroke engines leads to a dramatic decrease in both CO and hydrocarbon emissions (45 percent and 42 percent respectively). The CO levels achieved were half of those emitted by four-stroke engines. The drivers also reported that the use of high quality oil improved the performance of their motorcycles and lowered their daily fuel consumption by 1.5 liters. These lessons were shared in a forum in Tuguegarao City. Finally, a national conference was held as the culminating event to share significant lessons learned, present successful initiatives, and agree on resolutions to improve tricycle emissions.

Source: Authors.

31 This section builds on the Philippines Environment Monitor on Water Quality, 2003.

28

Year Total Metro Manila

Metro Cebu

Davao Baguio Angeles Bacolod Iloilo Cagayan de Oro

Zamboanga

Demand 1995 1,303 1,068 59 50 12 11 37 9 29 28

Demand 2025 3,955 2,883 342 153 87 31 111 47 98 203

Groundwater Availability

759 191 60 84 15 137 103 80 34 54

Surplus / Deficit

1995 -877 1 34 3 126 66 71 5 26

Surplus / Deficit

2025 -2,692 -282 -69 -73 106 -8 33 -64 -149

Source: JICA Master Plan on Water Resources Management in the Philippines, 1998.

Table 3. Water Demand and Availability of Major Cities in the Philippines in million cubic meter (mcm) / year

Table 2. Annual Renewable Water Resources

Country Total Resources 2000

(km3) (m3/person)

World 42,655.0 7,045

Asia 13,508.0 3,668

United States of America

2,460.0 8,838

Japan 460.0 3,393

Lao People’s Dem Rep

190.4 35,049

Malaysia 580.0 26,074

Myanmar 880.6 19,306

Indonesia 2,838.0 13,380

Cambodia 120.6 10,795

Vietnam 366.5 4,591

Philippines 146.01 1,9071

Thailand 110.02 1,8542

Source: World Resources Institute, 2000-2001.1. JICA Master Plan on Water Resources Management in the

Philippines, 1998.2. World Bank Thailand Environment Monitor, 2001.

freshwater availability per capita. At 1,907 m3, per

capita availability is lower than Asian and world

averages (Table 2).32 Country water demand is

expected to increase from 1,303 m3 in 1995 to 3,955

m3 in 2025. Water resources are unevenly distributed

throughout the country, often resulting in water

shortages in highly populated areas, especially during

the dry season. Several river basins (Pampanga, Agno,

Pasig-Laguna, and on the island of Cebu) are also

experiencing generalized water scarcity (Table 3).

Access to an improved water source. As of 2003,

86 percent of the total population has access to an

improved water source; with 79 percent and 91

percent access in rural and urban areas, respectively.33

In Manila, the Metropolitan Waterworks and

Sewerage System (MWSS) serves approximately 65

percent of Metro Manila’s water demand. However,

26 percent of Manila residents (3 out of 12 million)

are still not connected to piped water. In Cebu, 55

percent of residents are serviced by water utilities,

and about 600,000 people use other water sources,

including private sellers. The projected water demand

for Cebu for the year 2025 is estimated at 342 mcm,

32 Water Resources Institute, 2000-2001.33 World Bank, 2004b.

with a demand to supply ratio of 0.18, indicating an

acute shortage in the future.

As of December 2003, 17,447 water permits had been

granted to water users for use of surface water (53

percent), groundwater (37.5 percent), and spring

water (9.5 percent). Slightly more than half the water

permits are used for irrigation. At approximately 83


29

percent of total volume of water used, irrigation is

the dominant water user (Figure 10). Water users are

charged per connection at either a flat rate, based on

the size and population of residence or business, or a

metered rate, based on the volume of water used.

Groundwater use. Groundwater contributes 14

percent of the total water resources potential of the

Philippines; groundwater recharge or extraction

potential is estimated at 20,200 mcm per year.

Northern Mindanao has the lowest potential source

of ground water compared to its surface water

potential; while Ilocos and Central Visayas have the

highest potential. About half the population uses

groundwater for drinking purposes.

According to 2003 data, 63 percent of groundwater is

consumed by the domestic sector, and the remaining

is shared by agriculture (17 percent), industry (13

percent), and other sectors (7 percent). In terms of

sectoral demand, agriculture has the highest demand,

85 percent, while industry and domestic sectors have

a combined demand of only 15 percent.

About 60 percent of groundwater extraction is

without water-right permits, resulting in indis-

criminate withdrawal. Some 86 percent of piped-

water supply systems use groundwater as a source.

Over-abstraction from 6,441 registered wells has led

to the lowering of aquifers, resulting in saline water

intrusion and ground subsidence in some areas.

Water quality. Surface-water quality can be assessed

by using Dissolved Oxygen (DO) and Biochemical

Oxygen Demand (BOD) as parameters.34 The

National Capital Region (Metro Manila), Central

Luzon, Southern Tagalog, and Central Visayas are the

four critical urban regions in terms of water quality

and quantity. Government monitoring data indicate

the following:

• Approximately 42 percent of the country’s river

systems are classified as sources of public water

supply (Figure 11).

• Up to 58 percent of groundwater sampled is

contaminated with coliform bacteria, and needs

treatment.

• Just under a third, or 31 percent, of illnesses

monitored for a five-year period were caused by

water-borne pathogens.

Figure 10. Water Permits Granted By Use, 2003

Source: National Water Resources Board.

Domestic Use30%

Irrigation57%

Total Permits: 17,447

Industries6%

Other 6% Power 1%

Fisheries6%

Figure 11. River Water Classification, 2002

Source: Philippine Statistical Yearbook, 2003.

Class A42%

Class C34%

Total Number of Sampling Points = 400

Class B 19%

Class D 4% Class AA 1%

34 National standards for DO vary from 2 to 5 mg/l and for BOD from 1 to 15 mg/l based on beneficial water usage and classification (Table 4).

30

35 A passing rate of 100 percent means that all samples taken during the year met the standards.36 Water classification is based on the following: Classes AA and SA generally have the most stringent requirements as these cover water for the public water supply and coastal and marine waters that may have fisheries, national parks, or coral reefs and other reserves; Classes D and SD have the least stringent requirements.

Figure 12. Estimated Share of Domestic, Industrial,and Agricultural BOD at the National Level,

1999-2000

Source: Philippines Environment Monitor, 2003.

Domestic48%

Agricultural37%

Total Number of Sampling Points = 400

Industrial 15%

• 15 rivers nationwide have dissolved-oxygen at or

below zero, indicating that they are “dead” during

the dry months.

Water quality monitoring has not been carried out

on a regular basis for all major rivers and bays in the

country. Sampling of 51 rivers in 2002 showed that

69 percent of all samples were within the criterion for

BOD, with 30 rivers (59 percent) having a passing

rate of 100 percent.35 Sampling for DO shows a

similar result, with 68 percent of samples within the

criterion. However, only 22 (43 percent) of the 51

rivers passed all the time. Monitoring for BOD in

2003 shows a slight improvement, with 76 percent of

samples within the criterion.36

Pollution sources. There are three main sources of

water pollution—domestic (municipal), industrial,

and agricultural. More than 2.2 million MT of organic

pollution are produced annually by domestic (48

percent), agricultural (37 percent), and industrial (15

percent) sectors (Figure 12). In the four water-critical

Regions, water pollution comes mainly from domestic

and industrial sources. Estimates of total pollution

do not include pollution from solid waste discharge

and leachate. Solid waste disposed either at the

dumpsite or directly into water bodies, generates high

rates of organic and inorganic pollution. Leachate

contaminates groundwater or seeps into rivers, lakes,

and coastal waters. Despite the passage of the

ESWMA, open dumpsites still operate throughout

the Philippines (see section on solid waste), and solid

waste remains a major water pollutant.

Industrial wastewater may contain organic and/or

inorganic pollutants. Industries produce vastly

different amounts of wastewater depending on the

product and process used, and the scale of production.

They receive permits from the EMB to discharge

wastewater into a receiving water body. To receive

and maintain a permit, the industry must comply

with the provisions of the Pollution Control Law of

1976 (PD 984), and not discharge into either Class

AA or Class SA water. Of the total permits issued in

2003, 23 percent were permits to discharge wastewater.

Most of the water pollution-intensive industries are

in National Capital Region, Calabarzon, and Region III.

Food manufacturing, piggeries, and slaughterhouses

are the main sources of organic pollution.

Exposure to such chemicals may result in a range of

health effects including headache, nausea, blurring of

vision, poisoning, male sterility, and immune system

impairment.

The major trends in water quality recorded for the

four critical regions are briefly discussed below.

National Capital Region. Domestic sources,

industries, and solid waste contribute 65 percent, 30

percent and five percent, respectively, of the BOD

loading of the Pasig River system. Between 1996–

2001, EMB monitored 141 rivers, five of which are in


Manila Bay

Jones

Sanchez/San Juan

Lambingan

Guadalupe

Bambang

Laguna

Vargas

Marikina

0

1

2

3

4

5

6

7

8

9

10

200420032002200120001999

Mean

DO

Leve

l (m

g/l

i)

STANDARD -- 5mg/L

31

Metro Manila (Paranaque, San Juan, Marikina, Pasig,

and Navotas-Malabon-Tullahan-Tenejeros). The San

Juan river had the highest average BOD and lowest

DO, and did not meet criteria for Class C water. The

Marikina river had the lowest average BOD and met

standards set for beneficial uses (Table 4). At some

point during the monitoring, all four rivers exhibited

a zero reading for DO, indicating that they were

“biologically dead” during those periods. There had

been a noticeable improvement in Pasig river water

quality from 1992 to 2002, owing to the government’s

rehabilitation effort. However, monitoring in 2003

showed that water quality had worsened between

2002 and 2003, with DO values lower than the

minimum values in six of the eight stations, with the

annual DO average decreasing by 30 percent. The

same is true for BOD, with two stations exceeding the

guideline values compared to only one station in

2002, and the BOD annual average increasing by 65

percent. The reduction in rainfall in 2003 could partly

be the reason (Figures 13 and 14).

Total coliform and fecal coliform count of bathing

beaches in Manila Bay, on the other hand, remain

high (Figures 15 and 16). The refined risk assessment

of Manila Bay,37 which evaluates the impacts of

pollutants on human and ecological targets, shows

that the following contaminants need to be addressed

immediately: (a) fecal coliform (due to sewage

discharged directly into the bay, or into the river

systems entering the bay); (b) lead and mercury; and

(c) pesticides.

Routine monitoring from 1990 to 2003, at five

stations within the Laguna de Bay, shows that it meets

class C water quality criterion, except for a spike in

one station in 1991. Although BOD in the lake is not

Table 4. Water Classification by Beneficial Use

Classification Beneficial Use

For Fresh Surface Waters (rivers, lakes, reservoirs, etc.)

Class AA: Public Water Supply

Waters that require disinfection to meet the National Standards for Drinking Water (NSDW)

Class A: Public Water Supply

Waters that require complete treatment to meet the NSDW

Class B: Recreational Water

Waters for primary contact recreation (e.g. bathing, swimming, skin diving, etc.)

Class C: • Water for the fishery production • Recreational Water Class II (boating, etc.)• Industrial Water Supply Class I

Class D: • For agriculture, irrigation, livestock watering• Industrial Water Supply Class II• Other inland waters

For Coastal and Marine Waters (as amended by DAO 97-23)

Class SA

• Waters suitable for the fishery production• National marine parks and marine reserves• Coral reefs parks and reserves

Class SB

• Tourist zones and marine reserves • Recreational Water Class 1 • Fishery Water Class 1 for milk fish

Class SC • Recreational Water Class II (e.g. boating)• Fishery Water Class II (commercial)• Marshy and/or mangrove areas declared as fish and wildlife sanctuaries

Class SD • Industrial Water Supply Class II (e.g. cooling) • Other coastal and marine waters

Sources: DENR Administrative Order No. 34, series of 1990 and DENR Administrative Order No. 97-23.

Figure 13. DO Levels in the Pasig River system,1999-2004

Source: DENR-Environment Management Bureau.37 PEMSEA and MBEMPTWG-RRA 2004.

Manila Bay

Jones

Sanchez/San Juan

Lambingan

Guadalupe

Bambang

Laguna

Vargas

Marikina

BO

D (

mg

/li)

0

5.00

10.00

15.00

20.00

25.00

30.00

35.00

200420032002200120001999

STANDARD -- 10mg/L

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

200420032002200120001999199819971996

Garden Coast Beach

Punta Grande Beach

Costa Eugenia Beach

Celebrity Beach

San Isidro Beach

Villamar Beach

Lido Beach

Bacoor

Luneta Park

Navotas Fishport

STANDARD -- 1000 mpn/100ml

TO

TAL

CO

LIFO

RM

CO

UN

T (

mp

n/1

00m

l)

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

Punta Grande Beach

Costa Eugenia Beach Garden Coast Beach

Celebrity Beach

San Isidro Beach

Villamar Beach

Lido Beach

Bacoor

Luneta Park

Navotas Fishport

200420032002200120001999199819971996

FEC

AL

CO

LIFO

RM

CO

UN

T (

mp

n/1

00m

l)

STANDARD -- 200 mpn/100ml

32

Source: DENR-Environment Management Bureau.

Figure 14. BOD Levels in Pasig River system,1999-2004

currently a problem, siltation continues to be an

issue. Of greater concern are the increasing levels of

heavy metal. The Laguna de Bay Institutional

Strengthening and Community Participation Project

(LISCOP) is expected to improve environmental

quality in the lake and its watershed, and will

strengthen the institutions that are responsible for its

management.

Region III-Central Luzon. Although it has a small

land area, this region ranks third in the number of

households and manufacturing establishments. It is

also the third highest contributor to national income.

In Central Luzon, 51 percent of BOD loading is

generated by domestic sources, 14 percent by

industrial, and 35 percent by the agricultural sector.

Based on EMB monitoring, 60 percent of the rivers in

this region fall under class C waters. In the Bataan

coastal area, four monitoring stations (Matell, Villa

Carmen, Villa Leonora, and Barangay Wawa) show

total coliform count above the water quality criterion

of 5000 most probable number (MPN)/100 ml (Class

Figure 15. Fecal Coliform Count of Bathing Beaches in Manila Bay, 1996-2004

Figure 16. Total Coliform Count of Bathing Beaches in Manila Bay, 1996-2004



SC). Thus, in 2003, these beaches were not suitable

for recreational use.

Region IV—Southern Tagalog. Region IV A & B

are comprised of 11 provinces: six on mainland

Luzon, and five island provinces that are coastal

tourist attractions. Rivers were not monitored for

BOD and DO from 1996 to 2001. Instead, four bays

were monitored in this period: Cajimos, Calancan,

Puerto Galera, and Pagbilao. All of the bays passed

the 5mg/l criterion for Class SA, SB, and SC for DO

measurements.

Region VII—Central Visayas. Three bays were

sampled in the region from 1996 to 2001. Only DO


33

levels were checked, and these indicated that all of the

bays passed the Class SC criterion.

Pollution costs. The total annual economic loss

caused by water pollution is estimated at PhP67

billion (US$1.3 billion). This figure includes, PhP3

billion for health costs, PhP17 billion for lost fisheries

production and PhP47 for lost tourism revenues.

Losses due to environmental damage, in terms of

compensation and claims, are also on the rise in the

Philippines.

Chronic or preventable diseases impose large

economic and social costs stemming from worker

days lost, and excess morbidity and mortality.

Contaminated drinking water is one of the most

prevalent causes of illness in the Philippines. Thirty-

one percent of illnesses between 1994 and 2000 were

traced to water-related diseases.38 Known diseases

caused by polluted water include gastro-enteritis,

diarrhea, typhoid, cholera, dysentery, and hepatitis.

According to the Department of Health, in 2000,

more than 500,000 morbidity and 4,200 mortality

cases were attributed to water-related disease.

Avoidable annual health costs due to losses in direct

income and medical expenses are estimated at

PhP3.3 billion.

The Philippines has beautiful beaches, which are its

main tourist attraction. In addition to recreational

use of beaches, coral reef diving, and whale watching

also draw tourists. In 1997, the pristine waters of

Boracay Island, an international tourist destination

in Region VI, experienced a 60 percent decline in

occupancy rate at area hotels because of the news of

high levels of coliform bacteria. What happened in

Boracay could easily happen on other equally-fragile

islands of the country unless something is immediately

done to address the pollution problem.

The recently launched Beach Ecowatch (Box 8)

project of the DENR-EMB aims to use public

disclosure to put pressure on local governments,

resort owners, and communities to protect the water

quality at their beaches and ensure sustainable

tourism development. In addition, losses to family

income due to the demand for safe bottled water are

not insignificant.

The widespread use of bottled water may also be

considered an indirect cost of water pollution.

According to the Water Quality Association of the

Philippines, almost 45 percent of Metro Manila

residents (4.8 million people) are willing to buy

bottled water. At PhP50 for five gallons (or PhP2,642

per m3), bottled water is 100 times more expensive

than tap water, which would cost PhP10–19, per

cubic meter of water (Box 9). The poor, who rely on

vended water as their main source, devote nine

percent of their household expenditure to buying

water (Figure 17).

38 DOH-National Epidemiology Center.

Box 8. Beach EcoWatch in the Philippines

The Beach EcoWatch Program is an environmental improvement and monitoring program to improve public awareness of water quality at Philippines beaches, and improve compliance by hotel and resort owners, and LGUs. Information provided by the Beach EcoWatch Program allows the public to persuasively promote the improvement of beach water quality. The ultimate goals of the program are tourism promotion, ensuring the safety of swimmers, and supporting an informed use of beach resources.

Source: Authors.

Sewerage and sanitation. Indiscriminate disposal

of domestic wastewater is one of the main reasons for

degradation of water quality in urban areas. Unlike

the agricultural and industrial sectors, where the cost

of controlling water pollution can be passed on to the

polluters themselves, off-site domestic wastewater

collection, treatment, and disposal are considered

basic public services.

0

1

2

3

4

5

6

7

8

9

10

RichPoor

5%

9%

%

34

Box 9. The Cost of Water to the Poor

Poor households in the Philippines spend a greater proportion of their income per month on water than do rich households. Although half of all poor and rural households consume less than 41.6 l/person/day, the expenditure shares for water are considerable. Self-provisioning and vended water account for the greatest portion of the cost.

Only 25 percent of the poor access the full waterworks systems that have individual household connections. Thirteen percent of poor households access piped systems with community faucets, and 31 percent are provided water from springs or protected wells. The remaining water supply is provided to households in self-provision and vended water—29 percent and 2 percent respectively. An average poor household, reliant on vended water as the main water source, spends 80 percent more on vended water than an average rich household.

Source: Asian Development Bank, 2004.

Only one percent of the country’s total population is

connected to sewer systems (Table 5). The National

Urban Sewerage Strategy of 1994 holds LGUs

responsible for the provision of sewerage and

sanitation improvements.39 However, water supply

and sanitation systems outside Metro Manila, which

were turned over to LGUs in poor condition, have

not been effectively managed or improved. Local

governments lack the capacity, technical knowledge,

and funds needed for proper management and

maintenance of these systems. While LGUs were given

the option to form semi-autonomous water districts

to manage their urban water supply and sewerage

systems, with support from the specially-created

Local Water Utilities Administration, the provision of

sanitation services have not been assigned a high

priority.40 Sewerage services outside Metro Manila

are almost non-existent, leaving most urban poor

excluded from sewerage services.

In the capital city, the Metropolitan Waterworks and

Sewerage System (MWSS) is responsible for providing

urban water supply and sanitation services. The

Manila Water Company, Inc., a concessionaire of the

MWSS for the east zone, is in the process of setting

up 29 decentralized sewerage treatment plants and

three septage treatment plants. The World Bank

continues to assist the Government in expanding

sanitation coverage through the Metro Manila Second

Sewerage Project (1996–2003), LGU Urban Water

Supply and Sanitation Project (1997–2010), and the

Water District Development Project (2001–2006).

On the whole, sanitation and sewerage investments

are a small fraction of the total investment in the

“Water Supply and Sanitation Sector” (Table 6), and

there is considerable under-investment in sanitation

and sewerage. It is estimated that over a ten-year

period, the country will need to invest PhP250 billion

(nearly US$5 billion) in physical infrastructure

(Figure 18).

39 ADB, 1999.40 Robinson, 2003.

Figure 17. Share of vended water as percentage of total household expenditure

Source: World Bank, 2001a.

Table 5. Sanitation Services in the Philippines

Source: Robinson, 2003.

Population(millions)

Access to sanitation services

sewerage on-site none

Metro Manila (MWSS)

13.3 4% 41% 55%

Other urban and rural

63 0% 88% 12%

National 76.3 1% 74% 25%


35


The Clean Water Act was passed in 2004. Rules and

regulations for this Act are currently being drafted

and debated. The Act seeks to designate specific water

quality management areas. These will be managed by

a governing board composed of political leaders,

representatives of government agencies, registered

NGOs, water utilities, and the private sector. The

Board will be responsible for formulating strategies

that will effectively implement the Act’s provisions.

In areas where water pollution has already exceeded

limits, further polluting sources will not be allowed.

The Act also establishes a National Sewerage and

Septage Management Program that will allot funds

for construction and rehabilitation of infrastructure

for wastewater management. A five-year time horizon

has been provided to connect existing sewage lines in

business centers and households with the available

sewage system in Metro Manila and other urbanized

areas. A Water Quality Fund will be created to partly

meet the requirements of the Act. The Act also

supports the implementation of a wastewater charge

system in all management areas including the Laguna

Lake Region.

Although the National Water Resources Board

(NWRB) is the primary agency tasked with enforcing

the Water Code of the Philippines (PD 1067), there

are approximately 30 government agencies currently

involved in water resource management. In addition

to operating under unclear and overlapping mandates,

many of these agencies also lack sufficient budgets. In

2002, NWRB was reorganized, with major activities

decentralized to three water operations offices in

Luzon, Visayas, and Mindanao, so as to provide

increased local autonomy in decision-making.

Government-public initiatives are making the water

management approach more comprehensive in

scope and reach.

Inadequate technical staff and resources, and

insufficient data on polluters point to the need for

more targeted inspections. The processes of the

Pollution Adjudication Board could be more

streamlined and decentralized, to make enforcement

actions more effective. Long-term environmental

monitoring programs for major waterways are not

regularly undertaken for such basic indicators as

BOD and DO, making it difficult to establish trends

and understand changes.

Table 6. Investment in Sanitation and Sewerage

Source: ADB, 2001.Notes: Investment requirement was computed based on constant 2002 rates. Support activities were estimated at 13% of the Capital Cost.

Coverage Area

Population(in million)

Service Coverage

(in million)

InvestmentRequirement

(in PhP B)

2005 2015 2005 2015 2005 2015

Urban 48.85 (58%)

55.58 (60%)

9.77 (20%)

27.79 (50%)

55.69 158.40

Rural 35.37 (42%)

37.06 (40%)

17.69 (50%)

18.53 (50%)

50.42 52.81

Sub- Total 84.22 (100%)

92.64 (100%)

27.46 (33%)

46.32 (50%)

106.11 211.21

Program Support

Operating Costs Urban 3.91 11.12

Operating Costs Rural 6.28 6.58

Support Activities 13.79 27.46

TOTAL 130.09 256.37

Figure 18. Project Investment Plan for Sanitation

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

43844704

5596

6488

7380

4459 4459

1999

/00

2000

/01

2001

/02

2002

/03

2003

/04

2004

/05

2005

/06

Source: NEDA, Medium Term Public Investment Program and National Strategy and Action Plan for Philippines Urban Sewerage and Sanitation,1999.

Cas

hflow

mill

ion

PhP

36

Small but positive steps: Given the financial

constraints LGUs face in implementing sanitation

and sewerage projects, a way forward is to take small

steps such as scaling-up pilot projects and low-cost

initiatives. Examples of such initiatives include the

following:

• Drainage project of Cabanatuan City, which has

integrated dry weather flow interceptors;

• Sewage interceptor systems and treatment in

Boracay and Dumaguete City;

• Communal septage collection, treatment, and

disposal in communities (Barangay Environmental

Sanitation Project’s sub-project initiatives) in

several barangays in Palawan and Panabo City); and

• Low-cost technology options for ecological

sanitation that are being piloted in San Fernando

City, and low-cost treatment initiatives with private

participation in LISCOP and Local Initiatives for

Affordable Wastewater sub-project sites.

MINING-RELATED POLLUTION

Recognizing its significant potential for fueling

sustained economic growth, the government has

moved from a policy of tolerance to that of active

promotion of environmentally- and socially

responsible mining.

Environmental impacts. The greatest risk arising

from a medium- or large-scale mining operation is a

major tailings spill, such as the Marcopper mine

accident (Box 10). Environmental effects of artisanal

mining are mostly related to mercury pollution, soil

erosion, sedimentation of water bodies, and a total

lack of land-reclamation after closure. Of these

impacts, the most dangerous and irreversible for

human health is mercury contamination. Several

studies have looked into mercury pollution, based

mainly on the experience in Diwalwal, Compostela

Valley—the largest and most controversial small-

scale mining site in the country. These provide

evidence of worsening mercury pollution due to

mining activities in the area. In the past years,

water samples at the mining site in Diwalwal showed

higher concentrations of mercury than those in other

gold rush areas in the world.41 Results of a recent

survey conducted in two other important small-scale

mining sites further highlight the extent of mercury

pollution in the country. The majority of ball-mill

operators practicing amalgamation do not wear

protective gloves while handling mercury and other

chemicals used in processing. Some blowtorch the

amalgam indoors, seldom using retorts that could

prevent mercury from escaping into the air. While

some sites had tailings ponds, upon inspection, these

were found to be inadequate to handle the volume of

wastes produced.

The Mining Act of 1995 requires mining companies

to prepare Environmental Work Programs. Such plans

are meant to detail a company’s plans to achieve its

environmental objectives and commitments, including

the protection and rehabilitation of the disturbed

environment. Plans are expected to include the budget

(at least 10 percent of exploration expenditures) to

ensure that sufficient funds are available to meet

Dirty water is a health threat.


41 With Diwalwal under direct state utilization, and more effort exerted to address the pollution problem, monitoring of the Naboc river shows mercury levels are well within the standards.


37

have been surveyed for rehabilitation. The

enhancement and revegetation of the 120-hectare

tailing dam No. 3 of Maricalum Mining Corporation

in Sipalay, Negros Occidental, has been completed.

Three major strategies are being pursued—the

prevention of further abandonment through the

strict implementation of the Environmental

Protection and Enhancement Program and the Final

Mine Rehabilitation and Decommissioning Plan; the

rehabilitation and remediation of inactive mines; and

planning for the future through the formulation of

new guidelines. If properly implemented, these plans

will go a long way in restoring trust in the government,

especially among anti-mining groups.

Geohazard mapping. Landslides, such as those

that occurred in Panaon Island, Southern Leyte, in

Surigao City in December 2003, and in Aurora and

Quezon in November 2004, have been occurring

more frequently all over the country. These disasters

have highlighted another important aspect of the

work of the mining sector in the country—that of

geohazard assessment and the preparation of

geohazard maps. Geohazard assessment (which

involves the analysis of several thematic maps,

commitments. In addition, mining companies are also

required to prepare a comprehensive environmental

management plan for the life of the mining project or

an Environmental Protection and Enhancement

Program. An environmental guarantee fund mechanism

is being implemented to ensure just and timely

compensation for damages and progressive and

sustained rehabilitation. Monitoring and enforcement

need to be substantially strengthened. To improve

compliance with existing laws, and to increase the

efficiency of monitoring inspections, DENR’s Mines

and Geosciences Bureau (MGB) and EMB have

recently decided to form joint inspection teams for

each mining site. While it is still too early to assess the

impacts of this measure, the deployment of joint

teams is expected to ease the inspection burden on

DENR and the private sector.

Abandoned Mines. During the last two decades,

low economic viability, labor disputes, environmental

impacts, and intense public scrutiny have contributed

to the closure of a number of large and medium-scale

mines. Aware of this situation, the government is

attempting to address the issue of abandoned mines.

Twenty abandoned/inactive mines and quarry sites

Box 10. The Marcopper Mine Accident

The Government estimated that the accident caused the loss of marine and fresh water life, estimated at PhP1.8 million. In addition, the 27-km long Boac River was declared dead after the incident. Following the accident, cases were filed against Marcropper and DENR officials. The Government halted mining operations, and measures were taken to contain the continuing leakage.

A subsequent United Nations report defined the tailing spill as an ‘environmental disaster’, and estimated clean up costs around $100 million, to be paid by Placer Dome, the Canadian company that owned Marcropper. While Placer Dome sold its stake in the Philippine mine soon after the accident, it continues to pay the cost of the cleanup.

A comprehensive assessment of the impacts of the spill conducted by experts led by the US Geological Survey has been commissioned by the Government . The study will look at the technical/mining, environmental, and health impacts of the spill aims to determine the best options for a comprehensive rehabilitation of the area. Results of the study are expected to be released soon and agreements made for both short term and long term actions. In the meantime, damages amounting to PhP61 miilion for families affected by the spill have been paid with additional claims for PhP27million for Boac and PhP21 million for Mogpoc under process. The United States Geological Survey team’s monitoring of the Boac river in 2004 showed that the river water is not toxic (using the Sea Urchin Toxicity Test), and that it meets US Environmental Protection Agency criteria for cadmium, zinc, copper, lead, and nickel.

Source: http://www.twinside.org.sg/title/toxic-ch.htm, and DENR/MGB reports.

38

infrastructure and processing, and relying heavily on

manual labor. Small-scale mining safety rules and

regulations were also promulgated in 1997, making

the Philippines the only country to have such a

separate and distinct safety rule for small scale

mining. Inspite of these rules, small scale mining in

the country has largely been been illegal and

uncontrolled. The DENR-MGB is tasked to regulate,

supervise, and support the minerals industry in the

country. It was only in 2004 that a small-scale Mining

Unit has recently been established within the Bureau

to handle the specific concerns of that subsector.

The Fraser Institute, in its 2004 Annual Survey of

Mining Companies, indicated that the Philippines

ranks high in terms of mineral potential but low in

terms of policy regime. Regulatory uncertainties and

strong social activism against current mining practices

are believed to have played a significant role in

slowing-down foreign and local investments in

mining. In addition, there are emerging concerns

about the government lacking the financial, technical

and institutional resources to execute the National

Minerals Action Plan.

Indigenous peoples, civil society groups, and the

Catholic Church have challenged some provisions of

the Mining Act of 1995, specifically the

constitutionality of the Financial and Technical

Application Agreement (FTAA), which allows up to

100 percent foreign ownership of mining projects.

These groups also contest that there is potential

conflict between the Mining Act of 1995 and the

Indigenous Peoples Reform Act. After over four years

of uncertainty, in January 2004, the Supreme Court

ruled that indeed the FTAA is unconstitutional, and

that exploration and mineral processing permits

may not be granted to foreign-owned corporations.

The motion for reconsideration filed by Western

Mining, the Chamber of Mines of the Philippines

and DENR was recently decided in their favor with

the Supreme Court reversing its original decision.

such as topography, vegetation, soil characteristics,

geology, fault line, rainfall, and population centers)

identifies the geohazards within an area, and what

type of development can be allowed to prevent or at

least minimize the impact of a particular geohazard.

Such mapping should serve as the basis for the

comprehensive land-use and development plan of

any locality. While DENR-MGB has been undertaking

this activity, it has only covered a small portion of the

country due to limited funds.


The 1995 Mining Act is the main legislative provision

regulating the mining sector. At the same time, RA

No. 7076 regulates small-scale mining activities. An

earlier law, PD 1899, passed in 1984, was the first

legislation to legalize small-scale mining. It provided

for a licensing system which includes issuing permits

for small-scale mining within existing mining claims,

subject to the consent of the claim holder. Small-scale

mining, as defined in this law, refers to any single unit

of the mining operation having an annual production

of not more than 50,000 MT of ore, involving work

that is artisanal (either open-cast or shallow

underground mining without the use of sophisticated

mining equipment), with minimal investments in

Artisanal mining.



Excellent Fair PoorGood

0

10

20

30

40

50

60

200420001991YEAR

1981

% C

OV

ER O

F LI

VE

CO

RA

LS

39

BLUE ENVIRONMENT

Figure 19. Current Status of Coral Reefs

Source: Nanola C.L., H. Arceo, A. Uychaioco and P. Alino, 2004.

Approximately 60 percent of the population lives

within the 832 municipalities situated along 36,289

km of coastline. Coral reefs, mangrove forests, and

seagrass beds contribute to the richness, diversity and

productivity of coastal and marine fisheries. These

resources also attract tourists, creating local business

opportunities, and generating income and

employment. While the Philippines has some of the

world’s most unique marine ecosystems, these have

been increasingly threatened by pollution, over

fishing, and other anthropogenic activities. This

section presents the most recent trends in coral reefs,

mangrove forests, seagrass beds, and coastal and

fisheries management.

COASTAL AND MARINE RESOURCES

Coral reefs and seagrass beds. The Philippines

archipelago lies in the “coral triangle”, the center of

the most diverse habitat in the marine tropics. The

reef area of the Philippines is about 26 percent of the

total reef area in Southeast Asia.42 The country’s coral

reefs are among the richest and most diverse in the

world, with about 464 species of hard corals and more

than 50 species of soft corals. However, over 30

percent of the reefs in the country are in poor

condition. Moreover, there has been a steady decline

in the quality of the coral reefs—and only about 0.24

percent were reported to be in excellent condition in

2004, as compared to 4.3 percent in 2000 and 5.3

percent in 1991 (Figure 19). Ninety-eight percent

of these reefs are under medium or high threat

(Figure 20).43

Compared to other countries in the Region, Philippine

seagrasses are moderately studied (Table 7). A recent

survey of 96 sites identified a total of 978 km2 of

seagrass beds in the country.44 These beds are located

42 Nanola et. al., 2004.43 Licuanan and Gomez, 2000.44 Fortes and Santos, 2004.

in discontinuous areas along the shallow portions

of coastlines.

Despite a sophisticated understanding of the problems

associated with seagrass habitats, valuable seagrass

beds have declined continuously since the mid-1990s.

Natural causes aside, man-made impacts, especially

population growth close to shallow bays, lagoons, and

islands fringed by seagrass beds, and coastal

eutrophication have impacted seagrasses. Rising

poverty in coastal areas may be contributing to short-

sighted resource overuse and destruction. Destructive

fishing (blasting and poison) and over-fishing

continue to top the list of anthropogenic impacts on

the country’s reefs and seagrass areas. Poaching,

Figure 20. Reefs at Risk in East Asia (as a percentage of total Coral Reefs)

Source: World Resources Institute, 2002.

40

including by local communities, and fishing-related

environmental risks were identified as the worst

threats to reefs in the Visayan Sea. Sedimentation and

tourism-related activities were next in rank. In the

Sulu and Celebes Seas, destructive fishing, over-

fishing, sedimentation, and pollution were identified

as the most common threats causing reef decline in

the Philippines.45

Nevertheless, the number of marine protected areas

is growing. These areas are displaying improved reef

parameters of living coral cover and fish abundance

and healthy seagrass beds, both inside and adjacent

to the sanctuary portion of the protected areas. 46

Mangrove forests. There are conflicting estimates

of the remaining mangrove forest in the country.

Estimates using straight line projection of data

gathered from 1985 satellite images placed mangrove

Same panoramic view of Mangroves after reforestation in 2002.

Source –DENR-Region 9.

Taken before,1992, when the area was an abandoned fishpond & salt bed, and in 2002, after the mangrove reforestation in Barangay Mampang, Zamboanga City.

Panoramic view of Mangroves before reforestation in 2002.

Source –DENR-Region 9.

Table 7. Status of Information about Seagrass Habitats in the Philippines and other Asian Countries

Source: Fortes and Santos, 2004.

Legend:A: extent of the major beds that may be affectedB: status and uses of the bedsC: quantification of sediment loads, nutrients, organic materials &

toxic chemicals affecting the bedsD: identification of other related environmental problemsE: whether there is are known solutions for the existing problems XXX: well-studied; XX: moderately studied; X: not studied/implemented; plans exist

Country Species A B C D E

Australia 30 XXX X XX XXX XXX

Philippines 16 XX X XX XX XXX

Vietnam 15 X X XX XX X

Indonesia 13 X X XX XXX XX

Malaysia 12 X X X XX XX

Thailand 12 X X X X X

Singapore 7 X X X XX XX

Cambodia 6 X X XX XX XX

China 3 X X XX XX XX

45 Wilkinson et al., 2002.46 Nanola et. al, 2004 and White et al., 2002.


41

cover between 112,000 to 140,000 hectares.47 However,

2002 satellite images analyzed by the National

Mapping and Resource Information Authority show

mangrove forest at 248,450 hectares. The vast majority

of the remaining mangroves (95 percent) are

secondary growth in areas with mixed uses- and types

of forest. Only five percent are old or primary

mangroves, and these are mostly found in Palawan.48

Conversion to fishponds, charcoal-making and over-

harvesting are the major causes of mangrove loss.

The most rapid decrease occurred during the 1960s

and 1970s when government policies encouraged the

expansion of aquaculture. Today, fishponds cover

about 289,000 hectares, 80 to 90 percent of which are

in areas once covered with mangroves.49 This

expansion occurred largely during a period when real

prices for fish and shrimp were steadily rising.

Between 1980 and 1988, despite a 1980 government

policy banning further conversion of mangroves to

fishponds and mandating the reversion of idle

fishponds back to mangroves, the rate of conversion

47 DENR. Revised Master Plan for Forestry, 2003. 48 White and de Leon, 2004 and DA-BFAR, 2004.49 ADB, 1993.

was still about 8,200 hectares/per year.50 Illegal cutting

of mangroves for fuel wood, charcoal-making, and

construction is probably the second-most pervasive

intrusion on the resources.51

Mangrove plantation in Pagbilao, Quezon.


50 DENR, 1988.51 White and de Leon, 2004.

Coral reefs and associated species.

Source: DENR-Protected Areas and Wildlife Bureau.

Fisheries. On a national scale, fisheries contributed

2.2 percent of the GDP and 15.2 percent of gross

value added in the agricultural, fishery, and forestry

sectors in 2002. In the same year, exports of fishery

products amounted to PhP26 billion, with the top

commodity exports being tuna, shrimp, and seaweed.

In addition, the Philippines is the largest producer of

aquaculture products in Southeast Asia, with seaweed

production making the biggest contribution. In 2002,

a total production of 3.4 million tons of seafood was

registered, with an average annual rate of production

increase of 2.5 percent between 1990 and 2002. The

fishing industry provides employment to about one

million people (3.3 percent of the country’s labor

force), of which 68 percent is accounted for by the

municipal fishing sector, 26 percent by aquaculture,

and the remaining 6 percent by commercial fishing.

42

Table 8. Economic Costs to Municipal Fishery Production, 1997 to 2004

YearProd’n (in MT)

Change in

Prod’n (%)

Direc-tion ofChange

(%)

Ave. Unit

Prod’n Value P/MT

Prod’n Val. (PhP B)

Loss. (PhP B)

1997 924,466 – – 29,631 27.4 11.7

1998 891,146 -3.6 – 32,504 29.0 12.4

1999 924,693 3.8 204 33,561 31.0 13.3

2000 945,945 2.3 -39 34,459 32.6 14.0

2001 969,535 2.5 9 35,297 34.2 4.7

2002 988,938 2.0 -20 36,432 36.0 15.4

2003 998,665 1.0 -51 37,807 37.8 16.2

2004 1,015,202 1.7 68 38,895 39.5 17.0

Ave. 924,466 1.4 – 34,298 31.7 14.7

52 “Benthic” describes anything of, relating to, or occurring at the bottom of a body of water.53 Green et al., 2003.

It is also estimated that more than one million small-

scale fishermen depend directly on reef and other

near-shore (mostly benthic)52 fisheries for their

livelihood. The contribution of reef fish to total

fisheries is estimated to be between eight to 20 percent

(or between 143,200–358,000 tons per year).

In the early 1980’s, municipal fisheries dominated the

sector, contributing more than half the national

output; but by the late 1990s, this share was down to

30 percent. In addition, the rate of increase in total

production of commercial fisheries has slowed

considerably, suggesting that there might be resource

limitations in fish capture, thereby threatening its

long-term sustainability.

There is also clear evidence that over-fishing,

accompanied by greater effort needed per kilogram

of fish caught, is occurring in all important fisheries

of the country (Figure 21). Various country-wide and

site-specific fisheries assessments conclude that there

is an excessive fishing effort expended in surveyed

areas.53 The decline of fishery resources in the

country—particularly of coastal bottom-living fish

Figure 21. Decline in Philippine Fish Catch,1950 to 2000

Sources: Dalzell P., P. Corpuz, R. Ganaden and D. Pauly, 1987 and NSO, 2000,cited in http://www.oneocean.org.

and small surface-living fish (mainly roundscads,

anchovies, sardines, mackerels, and round herrings)—

may be a combined effect of excessive fishing effort,

inappropriate exploitation patterns, and coastal

environmental degradation.

A recent study by ENRAP (Knowledge Networking

for Rural Development in Asia/Pacific Region)

indicates a decline of 30 percent in selected municipal

fisheries and five percent in commercial fisheries due

to sedimentation, siltation, blast fishing, and muro-

ami, among others. The use of cyanide has also been

noted as a cause of habitat destruction. A recent

United States Agency for International Development

A harvest of Tilapia at Taal Lake in Batangas.



43

(USAID) report estimates that the Philippines loses

around $420 million annually in potential revenues

due to mismanagement of fisheries resources (Tables

8 and 9).54 Over-fishing alone is estimated to lead to

annual losses of about US$125 million.55 Where there

have been overall yield increases, they can be

attributed to the compensatory contribution of

aquaculture. The importance of environmental

concerns associated with aquaculture should, however,

be seriously considered (see Mangroves in this section).


The Philippines has numerous laws aimed at

protecting coral reefs, seagrasses, mangroves, and

their associated resources. Coral collection was

banned in 1978, and reefs and seagrass beds are

considered environmentally-critical habitats under

national law. The Fisheries Code (RA No. 8550) of

1998 addresses the need to manage and protect reefs

54 DA-BFAR, 2004.55 ICLARM, 2001 and Green, et al., 2003.

Box 11. Coastal Resources Management and Use Rights

Coastal waters are not subject to the same range of tenurial instruments and control and supervision by the central government, as are forests. The Local Government Code provides a legal basis for local governments to establish use- rights for coastal waters. Both the Local Government Code and the Fisheries code hold coastal local governments responsible for planning, legislating, regulating, enforcing, monitoring, and evaluating sustainable coastal resource-use in municipal waters and coastal areas. The Code uses municipal ordinances to declare certain areas sanctuaries or limit resource-use to particular users. In limited cases, indigenous peoples may be able to use the Indigenous Peoples Rights Act to do the same. Use of the Code, however, has been sporadic, and most coastal waters and resources remain open-access resources and face continued overexploitation and resource degradation.

Fishpond license agreements are the only real tenurial instrument for coastal waters established by national law and policy. These have generally been monopolized by the wealthy. This is because the majority of small-scale fishers have neither the money nor the technical know-how needed to set up aquaculture projects. They also lack the political connections that facilitate the granting of licenses and permits.

Municipal fishers are largely unhampered in moving from one municipal fishing ground to another. Moreover, municipal governments are generally ineffective in protecting their marine waters from commercial fishers and in enforcing laws and regulations. Development of coastal-resources-management best practices should benefit from the lessons learned in use of forest-related tenurial instruments, where such instruments have been effective. Lessons are also available from local governments and communities that have taken steps to establish de-facto tenurial arrangements in the form of marine sanctuaries, zones, fishing regulations, and others using the authority devolved by the Local Government Code or, in some cases, the Indigenous Peoples Rights Act.Source: Adapted from World Bank 2004b.

and their related resources (Box 11). Laws have been

passed to conserve and protect the remaining

mangroves in the country, and policies have been

promulgated to provide economic disincentives to

the conversion of mangrove forests for fishpond use.

Table 9. Cost to Commercial Fishery Production, 1997 to 2004

YearProd’n (in MT)

Change in

Prod’n (%)

Direc-tion ofChange

(%)

Ave. Unit

Prod’n Value P/MT

Prod’n Val. (PhP B)

Loss. (PhP B)

1997 884,651 – – 29,317 25.9 1.4

1998 940,533 -6.3 – 31,617 29.7 1.6

1999 948,754 0.9 86 33,984 32.2 1.7

2000 946,485 -0.2 -127 35,795 33.9 1.8

2001 976,539 3.2 1428 36,956 36.1 1.9

2002 1,041,360 6.6 109 37,366 38.9 2.0

2003 1,045,316 0.4 -94 39,563 42.4 2.2

2004 1,070,725 2.4 540 40,908 43.8 2.3

Ave. 956,387 2.8 – 34,295 32.8 2.0

44

The 1990s saw the issuance of new regulations

defining access and conservation of mangrove forests.

The Wildlife Resources Conservation and Protection

Act of 2001 aims to conserve and protect wildlife

species and their habitats, promote ecological balance,

and enhance biological diversity. In 2002, the Coastal

and Marine Management Office was formalized

within DENR to provide coordination both within

DENR and among national agencies and local

governments for integrated coastal management, and

to strengthen DENR’s Coastal Environment Program

initiated in 1993. In spite of these legislative and

institutional innovations, the Philippines still does not

have a nationally-recognized coral reef action plan,

and the Executive Order for Integrated Coastal

Management is pending approval by the President.

The Fisheries Code (1998) devolves protection of

coastal and marine resources, up to 15 km of the

general coastline, to municipalities and cities. To fully

operationalize this, the delineation of municipal

waters for local governments with islands needs to be

completed and coastal municipalities and cities need

to pass their local ordinances. However, guidelines

for delineating municipal waters for LGUs with

islands have yet to be issued. While some LGUs (100

of the 832 coastal municipalities and cities) are

beginning to implement integrated coastal resource

management programs that include coral reefs and

other habitats, many others lack the training and

resources to effectively implement such programs.

National government agencies, namely the DENR

and Bureau of Fisheries and Aquatic Resources

(BFAR), also have limited capacity to assist LGUs in

implementing such programs.

Various community-based projects have engaged

coastal residents in reforestation, rehabilitation and

management efforts. Despite these interventions,

mangrove areas continue to be degraded and are

threatened with conversion for settlement and

charcoal-making. Boundary delineation of mangrove

protection forests is found wanting in most areas of

the country.

Current mandates of DENR and BFAR tend to

separate fisheries from the coastal ecosystem. Several

DENR bureaus have contributed to coastal

management implementation, while BFAR considers

fisheries management within the realm of its expertise.

A Joint Memorandum Order between BFAR and

DENR, in principle, coordinates the activities of the

two agencies for coastal management; but in practice,

this coordinating mechanism has not been adequately

operationalized.

Role of NGOs, community-based groups, and the private sector. National and international

NGOs, with their local partners, have been key actors

in gathering and sharing information on the status of

marine resources in the Philippines. Although there

has been no systematic official assessment of

Philippine reefs since the landmark nationwide

survey of coral reefs in the late 1970s, NGOs and

academic institutions have been providing data on

the status of Philippine coral reefs. In the last decade,

Earthwatch teams, fielded by the Coastal Conservation

and Education Foundation, have monitored several

reef sites in Mabini and Tingloy, Batangas (Box 12);

southern Bohol Island and Panglao; Negros Oriental;

Mangrove reforestation.



45

Box 12. Management, Tourism and Conservation at Mabini and Tingloy, Batangas

Mabini and Tingloy areas in Batangas Province are home to diverse and abundant coral reefs. These reefs provide fish to local communities, and attract thousands of tourist scuba divers and snorkellers. This mix of beneficiaries presents a balancing problem for reef managers.

The history of coral reef management in this area is closely linked to tourism. Scuba divers called for protection of their best dive sites when one of the first diving resorts in the Philippines started in 1975. After the first area surveys in 1980, tourist operators concerned about rampant illegal and destructive fishing proposed in 1982 a national marine park for Sombrero Island and parts of Caban and Maricaban Islands. Since then a number of NGOs (Haribon Foundation; Earthwatch expeditions; Biodiversity Conservation Network; Worldwild Fund for Nature; Friends of Balayan Bay Association; and Coastal Conservation and Education Foundation, formerly Sulu Fund) have worked with the local communities to promote reef conservation and develop alternative livelihoods. These NGOs have also monitored the reefs, including recording uses such as the number of fishing boats, dropping of anchors, divers, shoreline development, and any other activities likely to damage the reefs.

Although some damage from anchors, divers, and construction continues to occur, this area has seen success in reducing overfishing and illegal fishing. The condition of the reef sites surveyed has been stable since 1997, with an abundance of new coral growth and little evidence of physical damage. It is important that management in Batangas continue to improve so that coral regrowth is encouraged and sustained. Barangay Sto. Tomas has recently declared the Batalang Bato Reef (known as Pulang Buli Reef to divers) as a marine sanctuary that is off-limits to diving and fishing activities. Coastal Conservation and Education Foundation started a community-based coastal resource management project in Tingloy in late 1999. Conservation was initiated by the tourism sector, and now the community and municipality are accepting responsibility in caring for their surroundings.

Enforcement efforts have yielded several arrests and have expanded to three more towns within Balayan Bay. User-fee collections from divers have generated more than PhP1 million which is enough to cover annual costs of the Bantay Dagat. An integrated coastal management plan for Balayan Bay has been prepared, along with workshops and educational programs for stakeholders.Source: Adapted from World Bank 2004b.

and Tubbataha Reefs, among others. The Marine

Science Institute of the University of the Philippines,

and Silliman University have also conducted reef-

monitoring in many areas. More recently, Reef Check

has used volunteers to monitor reefs in selected

municipalities in the Visayas. Monitoring has also

taken place under bilateral or multilateral projects,

such as the USAID-funded Coastal Resource

Management Project. Among the reefs carefully

monitored in this project are six declared- and

proposed Marine Protected Areas. These are mostly

located in the south, such as Calape in Bohol and

Kiamba in Sarangani.

In a recent workshop conducted on Ecowatch for

Beaches in the Philippines (May 31–June 2, 2004),

citizens expressed the view that most successful “blue”

initiatives are those that empower communities and

their respective local governments to enforce laws

and manage resources within their jurisdiction. There

is widespread use of community-based management

in the establishment of marine sanctuaries. However,

these sanctuaries have only been effective in areas

where the local governments work in partnership

with the coastal community.

The private sector plays a vital role in supporting

adequate environmental compliance and enforcement

to improve the country’s existing environmental

record in coastal and marine resources management.

Tourism operators and small-scale enterprises are

highly dependent on the inflow of tourists to beaches,

coral reefs, and marine sanctuaries. These resources

need to remain pristine in order to sustain interest

and appreciation, and spur increased demand.

46

Environmental Champion — EUGENIO PADEN

The first mangrove plantation in Banacon island, Bohol Province was established by Mr. Eugenio Paden on his own. When he started planting mangroves in 1957, Mang Denciong, as he was popularly called, was driven by curiosity and the need for continuous source of firewood and poles for his nipa dwelling and fish coral. He was chided for being “crazy”, since no one in the island could understand what he was doing. His first harvest ten years later yielded raw materials and cash from the sale, prompting other islanders to start their own plantations. But the clamor for more space and boundary-conflicts necessitated the intervention of the Bureau of Forest Development. The island was placed under the Community Tree Farm (CTF) Program in 1980, and the Banacon Fisherfolks and Mangrove Planters Association (BAFMAPA) was officially formed. Field technicians were assigned to the area and mangrove plantations flourished. At the same time, fisherfolk saw the productivity of their area improving, with more crabs, shrimps, shellfish, and fish. They also started seaweed farming. As they harvested mature mangroves, they continued to plant new ones.

In 1989, DENR conferred a Likas Yaman Award (Natural Resource Award) on Mang Denciong for his pioneering efforts. The Food and Agriculture Office (FAO) gave Mang Denciong the “Outstanding Tree Farmer Award” which he received in Bangkok from the Princess of Thailand. In recognition of their accomplishments and dedication, the residents of Banacon were given two community-based mangrove reforestation contracts and two family reforestation contracts for the Paden family. The contracts have been completed and the areas turned over to the DENR. Banacon island now serves as a major source of propagules for the DENR, the local government units, and private plantation efforts in Bohol and Cebu.

In 2003, the BAFMAPA received the first Philippine Wetlands Conservation Award for the people’s organization (PO) category, a plaque, PhP50,000 as cash prize, and a nomination to the International Wetland Conservation Award. In 2004, BAFMAPA was issued a Community-based Forest Management Agreement. While Mang Denciong has since passed away, his legacy lives on in Banacon.

Mangrove underwater.


Mangrove in Samar.



IN M

ETR

IC T

ON

S

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Total ODS Consumption Montreal Protocol

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

47

Earth Probe TOMS Total Ozone September 16, 2000

GLOBAL ENVIRONMENT

Source: DENR-Environment Management Bureau-Philippine Ozone Desk, 2004.

The Philippines is committed to implementing

international environmental agreements. It is working

closely with international and local partners to meet

global commitments. Notable among such

partnerships is the country’s program to support the

Montreal Protocol. Additionally, in 2003, the

government also ratified the Kyoto Protocol and the

Stockholm Convention.

Montreal Protocol. In 1991, the Philippines ratified

the Montreal Protocol, committing to progressively

phasing out the use of Ozone Depleting Substances

(ODS), specifically chlorofluorocarbon (CFCs), until

a complete phase-out by 2010. In order to meet this

goal, CFC consumption must be reduced by 50

percent by 2005, and 85 percent by 2007 (from a

baseline of about 3000 MT in 1999). From 1995 to

the end of 2003, CFC consumption fell by 58 percent,

from 3,382 to 1,422 MT, thus meeting the target

ahead of schedule. This performance was possible

due to the strict implementation of the quota system,

import licensing, and the National CFC Phase-Out

Plan, with active participation of Bureau of Customs,

the Technical Education and Skills Development

Authority of the Department of trade and industry

(Figure 22).

Further reduction in CFC consumption will be

addressed through the voucher system. Financial

assistance will be given to accredited refrigeration

and service shops to purchase tools and equipment

for better servicing, maintenance, and installation of

appliances, and air-conditioning in motor vehicles.

Piloted in November 2004, and to be implemented

nationwide in 2005, the voucher system targets the

servicing sector, which accounts for 75 percent of the

total CFC consumption in the country. Other sectors

to be regulated are foam and refrigeration

manufacturing and the metered-dose inhalers. To

control and regulate use, importation, and distribution

of methyl bromide,56 DENR and the Department of

Agriculture’s Fertilizer and Pesticide Authority jointly

developed a strategy, and have started to review

modified licensing and permits to purchase methyl

bromide.

UN Framework Convention on Climate Change and the Kyoto Protocol. Philippines

ratified Kyoto Protocol in 2003. Climate change and

Source: NASA, 2000.

56 Another ODS and a broad spectrum pesticide.

Figure 22. ODS Consumption in the Philippines and Montreal Protocol Phase-Out Schedule

48

global warming are critical issues for the Philippines

because of its extensive coastline. Initial studies on

the impact of climate change in the Philippines show

that temperatures could rise by as much as 2.2 degrees

in the last quarter of this century. Moreover, many of

the scientific models confirm an increase in rainfall

in the wet seasons and a marked decline in dry

seasons. Preliminary maps show that Mindanao is

most vulnerable to projected temperature increase,

while Luzon is likely to be affected most by changing

rainfall patterns. Areas in Metro Manila could see a

rise in sea level ranging from 0.3 to 2 meters. This rise

could eventually impact freshwater aquifers and make

coastal communities increasingly vulnerable to

floods. A crop failure in Region II in the summer of

2003, and the bleaching of corals off Southern Luzon,

have both been attributed to temperature changes.

The Clean Development Mechanism (CDM) is a

cooperative mechanism established under the Kyoto

Protocol, to promote environmentally friendly

projects for sustainable development in developing

countries. The DENR, as the National Authority, will

undertake the assessment and approval of CDM

projects and monitor their implementation. To date,

DENR has endorsed four environmental projects for

Certified Emission Reduction credit purchase under

the PCF (Box 13). Related initiatives of the LLDA are

described in Box 14.

Stockholm Convention on Persistent Organic Pollutants. Ratified in February 2004, a National

Implementation Plan that describes how the

Philippines will phase out sources of Persistent Organic

Pollutants (POPs) and remediate contaminated sites

in the country, is being prepared. An inventory of

POPs and the assessment of national infrastructure

and institutional capacity are being finalized. In

addition, a pilot project using non-burn technology

to treat polychlorinated biphenyls (PCBs) has been

prepared for possible GEF funding.

Basel Convention Hazardous Wastes. The

DENR-EMB, regulates the movement of hazardous

wastes to ensure that they are handled, collected,

treated, and disposed of in an environmentally sound

manner. Regular monitoring of the actual treatment

and disposal needs to be undertaken to ensure against

risks to people and the environment. The DENR has

registered 3,015 generators, 308 transporters, and 92

treaters/recyclers in 2004. Transboundary movement

of hazardous wastes for treatment and disposal

outside the country, import/export clearances, and

notifications are being issued.

Box 13. Clean Development Mechanism (CDM) initiatives under the Prototype Carbon Fund (PCF)

The PCF was created to pioneer emission reduction purchase transactions, and to support projects that generate high quality certified emission reductions (CERs) suitable for registration with the United Nations Framework Convention on Climate Change (UNFCC) as meeting targets for Kyoto Protocol. To date, DENR through the Inter-Agency Committee on Climate Change has endorsed the following renewable energy projects for CER credit purchase: (1) 25 MW Ilocos Norte Wind Farm Power Project; (2) 30 MW First Farmers Bagasse Cogeneration Project, Talisay, Negros Occidental; and (3) 50 MW Victorias Bagasse Cogeneration Project, Victoria, Negros Occidental. Of the three, the Ilocos Norte Wind Farm Power Project is at an advanced stage and will be ready for commissioning by the first quarter of 2005. The Ilocos Norte Windfarm Power Project is located in the remote part of Luzon, in Bangui, Ilocos Norte. The first of its kind in Southeast Asia, it is a zero-emission wind energy technology that displaces diesel-based power generation and thereby reduces carbon dioxide and other greenhouse gas (GHG) emissions. The PCF will purchase an average of 47,000 tons of CO

2 equivalent or TCO

2 in each of the

first 10 years of the project. The project’s Emission Reduction Purchase Agreement (ERPA) was signed by the World Bank and the Northwind Power Development Corporation (NWPDC) in December 2004. The PCF is also considering other renewable energy sources, including the 42 MW PNOC-EDC North Luzon Wind Power Project, 20 MW Palinpinon Geothermal Optimization Project in Negros Oriental and the 40 Northern Negros Geothermal Project in Negros Occidental.”Source: Authors


49

Convention on Biological Diversity. Since the

adoption of NIPAS in 1992, biodiversity conservation

programs including the establishment and

management of Wildlife Rescue Centers are being

implemented all over the country. The National Bio-

safety Framework Project and the Philippine

Biodiversity Conservation Priority Setting Project

represent the second iteration of the NBSAP. The

following policies have also been issued and

implemented: a) RA 9147—Philippine Wildlife

Resources Conservation Act; b) RA 9072—National

Caves and Cave Resources Management and

Protection Act; c) EO 430, creating the National

Committee on Bio-safety of the Philippines, including

the signing of the Cartagena Protocol on Bio-safety;

and d) EO 111, establishing the Guidelines for

Ecotourism Development in the Philippines.

Ramsar Convention on Wetlands (RAMSAR). A total of 133 wetlands have been identified as critical

to biodiversity conservation and proclaimed protected

areas. Four of these sites, listed below, are included in

the RAMSAR list of Wetlands of International

Importance.

• Olango Island Wildlife Sanctuary,

• Naujan Lake National Park,

• Agusan Marsh Wildlife Santuary, and

• Tubbataha Reefs National Marine Park

Olango Island Wildlife Sanctuary and Naujan Lake

National Park are also recognized internationally as

ShoreBird and Anatidae Site Networks, respectively,57

while Tubattaha National Marine Part has been

designated a World Heritage Site. Efforts to

mainstream wetland conservation activities within

national land use planning continue to be undertaken

as part of the Philippine Wetland Action Plan. The

“Philippine Wetlands Conservation Award” seeks to

Shoreland migratory birds, such as egrets are commonly found in Olango waters.


generate public and private interest in the wise use of

wetlands granted during the annual celebration of

World Wetlands Day.

Convention on International Trade in Endangered Species of Flora and Fauna (CITES). The implementation and monitoring of

Box 14. The Laguna de Bay Community Carbon Project

The Laguna de Bay Community Carbon Project provides Carbon Emission Reduction (CER) credits for environmental interventions under the Laguna de Bay Institutional Strengthening and Community Participation (LISCOP). Within the framework of the Clean Development Mechanism of the Kyoto Protocol, LISCOP-funded subprojects and/or those identified in the Lake Environmental Action Planning (LEAP) shall be developed and CERs accounted for crediting under the Community Development Carbon Fund (CDCF) and/or BioCarbon Fund (BCF). Under the project, the Laguna Lake Development Authority (LLDA) shall serve as the carbon intermediary for various community activities that result in verifiable CERs. Pilot subprojects that are being developed include: (1) Tanay Microwatershed Streambank Rehabilitation and Ecological Enhancement, and (2) Tanay Solid Waste Composting Facility. Initial estimates indicate that these pilots would result in CER of 5,000-10,000 tons of atmospheric CO

2 equivalent

(TCO2e) for 20 years and 4,039 TCO

2e/year over 10-year

project lifetime, respectively. Other potential eligible community activities include communal biogas digester, reforestation, assisted-natural regeneration, and agro-forestry.Source: Authors.

57 An international program nominating key sites of global importance to shorebirds and anatidae populations in the East Asian-Australasian and East Asian Flyways, respectively.

50

wildlife trade regulations has been strengthened by

the creation of 15 Regional Wildlife Monitoring

Teams. From 1995 to September 2004, 673 CITES

and 940 non-CITES permits were issued by PAWB,

generating an average income of PhP4.9 million and

PhP0.4 million respectively. Restaurants serving

exotic food are regularly monitored for infraction of

the Convention.

Bonn Convention on the Conservation of Migratory Species of Wild Animals (CMS). The Philippines has worked toward the inclusion

of five species of migratory birds under the

2002 Conference of the Parties. These are:

Gorsachius goisagi, Platalea minor, Tringa guttifer,

Eurynorhynchus pygmeus, and Sterna bernsteini.

A landmark Memorandum of Understanding on the

conservation of marine turtles was signed by South

and East Asian nations in 2001.

United Nations Conference on the Law of the Sea (UNCLOS). The National Marine Policy was

formulated to serve as the umbrella framework for

addressing ocean and marine concerns. A

comprehensive program is being developed to

manage marine and coastal resources, and to ensure

the implementation of UNCLOS provisions.

International Convention for the Prevention of Marine Pollution from Ships (MARPOL). The Philippine Coast Guard is responsible for the

prevention and control of pollution in the country’s

territorial waters. In 1998 it established the Marine

Environmental Protection Command to ensure

compliance with marine pollution laws. The country

is an active participant in the implementation of

regional agreements, including the ASEAN Oil Spill

Response Action Plan (OSRAP), and Oil Spill

Preparedness and Response (OSPAR) Project; and in

the maintenance of OSPAR equipment and

information network system. There are four oil-spill

response centers in Manila, Cebu, Palawan, and

Davao. The coast guard continues to enhance its

capability through research on oil analysis, and

providing adequate response to abatement, containment,

and recovery of major- and medium oil spills.

Long-tailed monkey, Macaca fascicularis.


Containment and recovery of oil spill.

Source: PCG-Marine Environmental Protection Command.


1

2

3

51

Increased media scrutiny, public participation, and

awareness are leading to faster and more- effective

political decisions on environmental protection. As a

result, laws and ordinances have become more

comprehensive over time; yet their implementation is

found to be lagging. People are losing confidence in

the government’s ability and willingness to implement

policies and programs to improve the environment.

Based on the review presented in previous sections,

the following major challenges are identified.

Strengthening long-term national

commitment to environmental protection

is crucial to reversing current patterns of

resource use, and for implementing pollution-

prevention programs on a larger scale. Although

national laws should be upheld irrespective of the

administration in power, in reality, the priorities

change each time a new government is elected. This

leads to discontinuities and programmatic break-

down in bureaucratic agendas. In addition, a pervasive

culture of political patronage in government agencies

is seen as a significant obstacle to the systematic

implementation of regulations, and to improving the

quality of environmental governance.

Heightened public awareness will exert

pressure on both the private and public

sectors to uphold their responsibilities and

follow the law. Timely and accurate information on

environmental quality indicators and costs can

catalyze public participation. Sharing such

information encourages environmental stewardship

among citizens, improves the willingness to pay for

environmental services, and enhances the effectiveness

CHALLENGES

of economic instruments in achieving compliance.

For example, in the case of solid waste management,

low willingness to pay for garbage collection is a result

of poor services in the past and a lack of information

on the true costs and benefits of solid waste

management. Similarly the unwillingness to pay for

cleaner vehicles or fuel can be related to the absence

of easy to understand information on the health

effects of air pollution. Strong opposition to the siting

of waste treatment facilities is rooted in the not-in-

my backyard (NIMBY) syndrome.

Supporting private sector in the provision

of environmental services will help bridge

the gap between local government and

DENR responsibilities and resources. Budgetary

shortfalls significantly limit agencies’ ability to

implement environmental policies and services.

Despite budgetary shortfalls, most local government

units have not explored alternatives to large scale

public sector infrastructure projects. Partnerships

with the private sector are an alternative mechanism

for providing much needed environmental services.

For example, more private resources can be harnessed

to improve sanitation in Manila, which has one of the

lowest access rates for piped sewerage services among

Asian cities. The private sector or a quasi-government

organization may be allowed to collect, treat, and

dispose wastewater for a fee. Since the provision of

financing for such facilities is new to commercial

banks, there is a need to reduce investment

uncertainties and risks by considering preferential

credit and guarantees.

4

5

6

52

Improved coordination and capacity

within local agencies is crucial to harmonize

the decentralization process of DENR with

that of the Local Government Units. For example,

institutions responsible for allocating land and

resource use permits rely on uncoordinated maps

and data sets. Local government agencies also need to

coordinate with other agencies to better provide

environmental services.

Modernizing monitoring, enforcement,

and public disclosure will strengthen

environmental compliance and

enforcement. Current enforcement efforts appear to

be constrained by weak and uncoordinated

monitoring systems, and by a lack of basic capacity to

translate information into environmental priorities.

To complement existing command-and-control

regulations, successful initiatives to promote

community participation, industry self regulation,

public-private partnerships, and market-based policy

instruments could be scaled up. Examples include the

environmental user fee in Laguna de Bay and

EcoWatch, privatizing provision of environmental

services, and enterprise level and industry-wide

pollution efforts.

Streamlining bureaucratic processes will

encourage investment in natural resources.

Tenurial instruments issued by DENR,

under programs such as community-based forest and

coastal resources management policies, have formally

strengthened local rights. Yet, bureaucratic

complexities and delays have often resulted in

conflicts on the ground, and limited the potential of

these instruments to provide incentives for sustainable

management and investments. New institutional

arrangements such as Protected Area Management

Boards and provincial environmental councils could

bypass many of the existing institutional and

bureaucratic constraints, and encourage local

stewardship of natural resources.

Through industrial tree plantations denuded mountains are transformed into thriving production forests.

Source: DENR.

PHILIPPINES ENVIRONMENT MONITOR 2004PHILIPPINES ENVIRONMENT MONITOR 2004RELEVANT WEBSITES

Organization Web Address Description & Content

Department of Environment and Natural Resources (DENR)

www.denr.gov.ph Overview of the programs and projects that help protect, preserve, and enhance the natural resources of the Philippines.

Environmental Management Bureau (EMB) www.emb.gov.ph Focuses on environmental laws for various environmental media, standards, and environmental quality status of the country.

Department of Health (DOH) www.doh.gov.ph Programs and projects to improve health and sanitation.

National Water Resources Board (NWRB) www.nwrb.gov.ph Water resource regions and water quantity and availability.

Laguna Lake Development Authority (LLDA)

www.llda.gov.ph Environmental quality of Laguna de Bay and its watershed, including the Environmental User Fee System.

Asian Development Bank (ADB) www.adb.org/water/ Information on water policy, water operations, water actions, and basic water sector information.

Partnership in Environmental Management for the Seas of East Asia

www.pemsea.org Marine pollution and initiatives in the 12 East Asian countries.

Bureau of Fisheries and Aquatic Resources (BFAR)

www.bfar.gov.ph Information on fishery laws and fishery resources, including production volume.

US-Asia Environmental Partnership (US-AEP)

www.usaep.org Information on recent development in environment and its own projects in the region.

US Environmental Protection Agency (USEPA)

www.epa.gov Extensive information available on all technical and legal aspects of environment, including water.

United Nations Development Programme (UNDP)

www.undp.org UNDP water related programs.

United Nations-Habitat (Water and Sanitation in the World’s Cities)

www.unhabitat.org Information on safe drinking water, and adequate and low-cost sanitation facilities.

Water Supply and Sanitation Performance Enhancement Project (WPEP)

www.wpep.org Sector studies and ex-post evaluations of water supply and sanitation projects in the Philippines.

World Bank Water and Sanitation Program (WSP)

www.wsp.org Description and details regarding the World Bank Water and Sanitation Program. Reports on best practices in water supply and sanitation.

World Health Organization (WHO) www.who.int/water_sanitation_health/en/

Water quality, particularly the 3rd edition of WHO Guidelines for Drinking Water Quality.

Center Science and Environment (CSE) www.rainwaterharvesting.org Comprehensive website on water issues in India, including information on water scarcity and legislation.

World Bank www.worldbank.org/html/fpd/water Water Supply and Sanitation website.

World Bank Water lnweb18.worldbank.org/ESSD/ardext.nsf/18ByDocName/StrategyWaterResourcesSectorStrategyAnOverview

World Bank Water Strategy.

National Environment Agency (Singapore) app.nea.gov.sg National Environment Agency (Singapore).

Pollution Control Department (Thailand) www.pcd.go.th/indexEng.cfm Provides information on water quality in Thailand.

Environmental Protection Department (Hong Kong)

www.epd.gov.hk/epd/eindex.html Provides information on water quality and water resources in Hong Kong.

The Ministry of Water Resource (The People’s Republic of China)

www.mwr.gov.cn/english Information about the water resource issues in China.

Partnerships in Environmental Management for the Seas of East Aisa (PEMSEA)

www.pemsea.org Provides information on the regional program on the environmental management of the Seas of East Asia, involving 12 East Asian countries and supported by the Global Environment Facility, UNDP, and IMO

Network of professional institutions in Mediterranean (MEDCOAST), including ICCOPS of Italy, Institute for Remote Sensing of EU, and PAP/RAC of Croatia.

www.medcoast.org.tr Supports and enhances integrated coastal management practices and beach areas in the Mediterranean and black sea countries.

53

54

APEC Tourism website: http://www.apec-tourism.org.ASEAN. 1993. Oil Spill Response Action Plan.ASEAN. 1993. Oil Spill Preparedness and Response.Asian Development Bank, 1993. Fisheries Sector Profile in the Philippines.Asian Development Bank. 1999. Metro Manila Air Quality Improvement Sector Development Program. Manila, Philippines._______. 1999. Urban Sector Profile Philippines. Manila, Philippines._______. 2004. The Garbage Book. Solid Waste Management in Metro Manila. Manila, Philippines.Burke, Lauretta, Elizabeth Selig and Mark Spalding. 2002. Reefs at Risk in Southeast Asia. World Resources Institute.Bureau of Soils and Water Management. 2004. Philippine National Action Plan to Combat Land Desertification, Degradation, Drought and

Poverty. BSWM. Quezon City Philippines.Clean Air Initiative for Asian Cities website: http://www.cleanairnet.org/caiasia.Dalzell P., P. Corpuz, R. Ganaden and D. Pauly. 1987. Estimation of Maximum Sustainable Yield and Maximum Economic Rent from the

Philippine Small Pelagic Fisheries. BFAR Tech Paper Series 10(3):23, National Statistics Office (2000).Department of Agriculture (DA)-Bureau of Fisheries and Aquatic Resources (BFAR). 2004. In Turbulent Seas: The Status of Philippine

Marine Fisheries. Coastal Resource Management Project of the Department of Environment and Natural Resources, Cebu City, Philippines, 378 p.

Department of Energy. 2003. “The Philippines Natural Gas Industry.” Presentation by Undersecretary J. V. Emmanuel A. de Dios. Available: http://www.doe.gov.

Department of Environment and Natural Resources (DENR), DA-BFAR and Department of Interior and Local Government (DILG). 2001. Philippine Coastal Management Guidebook Series (8 volumes). Coastal Resource Management Project of DENR, Cebu City, Philippines.

DENR. 2003. Annual Report._______1988. Mapping of the Natural Condition of the Philippines, Final Report. Swedish Space Corporation.DENR-Environmental Management Bureau (EMB). 2003. 2002 National Air Quality Status Report. Quezon City, Philippines. DENR-Forest Management Bureau (FMB). 2004. 2003 Philippine Forestry Statistics. Quezon City, Philippines.DENR-Forest Management Bureau. 2004. Indigenous Cultural Communities Definition Matrix, 2004. Website: http://www.forestry.

denr.gov.ph.DENR-Forest Management Bureau. 2003. Revised Master Plan for Forestry Development: Sustainable Forest Management, Poverty

Alleviation and Food Security in Upland Communities in the Philippines. Quezon City, Philippines.DENR-Mines and Geosciences Bureau. 2004. Mineral Action Plan for Executive Order No. 270 and 270-A: National Policy on Revitalizing

Mining in the Philippines.DENR-National Solid Waste Management Commission. 2004. Solid Waste Management Report. Quezon City, Philippines.DENR andPhilippine Information Agency. 2001. Knowledge, Awareness and Practice Survey in the Metro Manila Airshed.DENR-Protected Areas and Wildlife Bureau. 1996. Philippines National Wetlands Action Plan.DENR-USAID. 1994. ENRAP-Phase II.Department of Health (DOH). 2004. Public Health Monitoring of the Metro Manila Air Quality Improvement Sector Development Program

(MMAQUISDP) Main Report, DOH, Manila.Environmental Science for Social Change, Inc. 1999. Decline of the Philippine Forest. Quezon City, Philippines. FAO. 2001. State of The World’s Forests, 2003, Global Forest Resources: Main Report. FAO Forestry Paper 140. FAO. Rome.Fortes, M.D. and K. F. Santos. 2004. “Seagrass Ecosytem of the Philippines: Status, Problems and Management Directions” in DA-BFAR,

In Turbulent Seas: The Status of Philippine Marine Fisheries. Coastal Resource Management Project. The Department of Environment and Natural Resources, Cebu City, Philippines.

Green, S.J., A.T. White, J.O. Flores, M.F. Carreon III, and A.E. Sia. 2003. Philippine Fisheries in Crisis: A Framework for Management. Coastal Resource Management Project of the Department of Environment and Natural Resources, Cebu City, Philippines.

Guiang, E.S. 2001. “Efficacy of Removing Natural Forest from Timber Production as a Strategy for Conserving Forests in the Philippines.” In Forests Out of Bounds: Impacts and Effectiveness of Logging Ban in Natural Forests in Asia-Pacific. Durst, P., T. Waggener, T. Enters and T. Cheng eds. Bangkok: FAO.

http://www.oneocean.orgICLARM (World Fish Center). 2001. Sustainable Management of Coastal Fish Stocks in Asia. Project Final Report (March 1998–March

2001), ADB-RETA 5766.IFC. 2002. Developing Value—The Business Case for Sustainability in Emerging Markets. Washington, D.C.Israel, Daniel and Jasminda P. Asirot. 2000. “Mercury Pollution Due to Small-Scale Gold Mining in the Philippines: An Economic

Analysis,” Discussion Paper Series No. 2000-06, Philippine Institute for Development Studies, Makati City, Philippines.

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JICA. 1998. Master Plan on Water Resources Management in the Philippines.JICA-MDA. 1999. The Study on Solid Waste Management for Metro Manila in the Republic of the Philippines, Final Report, Manila.Lasmarias, N., O. Corosa, M. Silverio, F. Lansigan, D. Lagunsad and C. Morales. 2004. Mapping Population-Biodiversity Connections in the

Philippines. Department of Environment and Natural Resources Protected Areas and Wildlife Bureau, Conservation-International Foundation Philippines, and National Economic and Development Authority. Quezon City, Philippines.

Licuanan, W.Y. and E.D. Gomez. 2000. Philippine Coral Reefs, Reef Fishes, and Associated Fisheries: Status and Recommendations to Improve Their Management. Global Coral Reef Monitoring Network (GCRMN) Report.

Lopez, Antonio S. 2004. “Fighting Enemies of the Environment, Biodiversity”, Cover Story. BizNews Asia/June 21–June 28, 2004. _______. 2004. Q and A: Philip Romualdez, President and CEO, Benguet Corp, “Mining Industry has Tremendous Potential”. BizNews

Asia/June 21– June 28, 2004. Luna, C. Z., G. T. Silvestre, M. F. Carreon III, A. T. White and S. J. Green. 2004. “Sustaining Philippine Marine Fisheries Beyond Turbulent

Seas: A Synopsis of Key Management Issues and Opportunities,” In DA-BFAR. In Turbulent Seas: The Status of Philippine Marine Fisheries. Coastal Resource Management Project, Cebu City, Philippines, pp. 345-358.

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National Biodiversity Action Plan. DENR-Protected Areas and Wildlife Bureau (PAWB), Conservation International Philippines, Biodiversity Conservation Program-University of the Philippines Center for Integrative and Development Studies, and Foundation for the Philippine Environment. Quezon City, Philippines.

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GEOGRAPHY ECONOMY / SOCIETY

Area: . Total ......................................... 300,000 sq. km Land ......................................... 298,170 sq. km Water .................................... 1,830,830 sq. kmBoundaries: North: Balintang Channel South: Sulu and Celebes Seas East: Philippine Sea/Pacific Ocean West: South China SeaCoastline: ....................................................17,460 kmMaritime claims: Total territorial water area incl. Exclusive Economic Zone ...... 2,200,000 sq. km Coastal ..................................... 266,000 sq. km Oceanic .................................. 1,934,000 sq. km Continental shelf area .............. 184,600 sq. kmClimate: Tropical: northeast monsoon (Nov. to

April); southwest monsoon (May to October)Terrain: Mostly mountains, with narrow to

extensive coastal lowlandsElevation extremes: Lowest point: .....................Philippine Sea 0 m Highest point: ........................ Mt. Apo 2,954 mNatural resources: timber, nickel, cobalt, silver, gold, salt, copper, petroleumLand use: Arable land: ................................................19% Permanent pastures: .....................................4% Permanent crops: ........................................12% Forest & wetlands: ......................................46% Others: ........................................................19%Environment – International agreements: party to: Climate Change, Endangered Species, Hazardous Wastes, Marine Dumping, Nuclear TestBan, Ozone Layer Protection, Biodiversity, Wetlands, Whaling, POPs

GDP (2004) ................................................ 1,148,003 T GDP growth rate (2004) ........................................6.1% GDP – composition by sector:Agriculture ..........................................................18.19%Industry ..............................................................30.75%Services ...............................................................43.67%Unemployment rate (2003): ...............................11.4%Gross Domestic Investment/GDP: .....................20.6%Exports of goods and services/GDP: ..................46.2%Gross domestic savings/GDP: .............................19.5%Gross national savings/GDP: ..............................26.8%Industrial production growth rate: ......................5.3%Agricultural production growth rate: ..................4.9%Agriculture-products: rice, coconut, corn, sugarcane, banana, hog, broiler chicken, layer chicken, carabao, beef cattle, dairy cattle, duck, goat, chicken eggs, duck sardines, milkfish, oyster, mussels, tilapia, catfishExports (2004): ...................................... PhP 530,394 BImports (2004): ...................................... PhP 622,853 B Exchange Rate: ...............................................56.04 PhP

Population (2000): ..................................... 76.5 millionPopulation growth rate: ......................................2.36%Urban population (% of total population): .......... 56.9Birth rate (2004): .....................24.63/1,000 populationDeath rate (2004): ......................5.66/1,000 population Infant mortality rate (2003): ........... 29/1,000 live birthAccess to safe water (% of population): ......... 81.7%**Access to sanitation (% of population): ............ 81%**Life expectancy at birth: ..............70.15 years (average)Literacy (total population): .................................92.3%Elementary participation rate (2003): ...............90.1%National capital: ManilaAdministrative divisions (July 2004): 17 regions, 79 provinces Independence: June 12, 1898

56

PHILIPPINES—AT A GLANCE

Source: National Statistics Office. National Economic and Development Authority, Medium Term Philippine Development Plan 2001-2004 and Medium Term Development Plan 2004-2010., National Economic and Development Authority, Recent Economic Performance and Prospects for 2004.Presentation, March 4, 2004. 2001 Philippine Fisheries Profile, Bureau of Agricultural Statistics, 2000 Philippines Statistical Yearbook-National Statistical Coordination Board. World Health Organization, 2004. World Development Indicator 2000.

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