Inremp Pam

Project Administration Manual
Project Number: 41220

Loan and/or Grant Number(s):
October 2012
Republic of the Philippines: Integrated Natural

Resources and Environmental Management Project
Contents
ABBREVIATIONS
I. PROJECT DESCRIPTION 1
II. IMPLEMENTATION PLANS 2
A. Project Readiness Activities 2
B. Overall Project Implementation Plan 7
III. PROJECT MANAGEMENT ARRANGEMENTS 11
A. Project Implementation Organizations – Roles and Responsibilities 11
B. Key Persons Involved in Implementation 15
C. Project Organization Structure 16
IV. COSTS AND FINANCING 19
A. Detailed Cost Estimates by Expenditure Category 21
B. Allocation and Withdrawal of Loan and Grant Proceeds 23
C. Detailed Cost Estimates by Financier 26
D. Detailed Cost Estimates by Outputs/Components 28
E. Detailed Cost Estimates by Year 30
F. Contract and Disbursement S-curve 31
G. Fund Flow Diagram 32
V. FINANCIAL MANAGEMENT 33
A. Financial Management Assessment 33
B. Disbursement 37
C. Accounting 40
D. Auditing 41
VI. PROCUREMENT AND CONSULTING SERVICES 42
A. Assessment of Procurement Capacity 42
B. Advance Contracting 42
C. Procurement of Goods, Works and Consulting Services 43
D. Procurement Plan 44
E. Consultant's Terms of Reference 49
VII. SAFEGUARDS 52
VIII. GENDER AND SOCIAL DIMENSIONS 64
IX. PERFORMANCE MONITORING, EVALUATION, REPORTING AND
COMMUNICATION 66
A. Project Design and Monitoring Framework 66
B. Monitoring 69
C. Evaluation 69
D. Reporting 69
E. Stakeholder Communication Strategy 70
X. ANTICORRUPTION POLICY 72
XI. ACCOUNTABILITY MECHANISM 76
XII. RECORD OF PAM CHANGES 76
APPENDIXES
1. Implementation Arrangements
2. Detailed Cost Tables (Per Subcomponent)
3. INREMP Performance Based Grant System: Conceptual Framework
4. Implementation Arrangements and Funds Administration/Flow
5. Eligibility Criteria for Block Grant
6. National Government Accounting System for LGUs
7. Procurement Guidelines
8. Procurement of Goods and Services Checklist
9. Terms of Reference of Key Disciplines
10. Gender Action Plan
11. Suggested Report Formats
12. Suggested Formats for Progress, Status and Completion Reports
13. Sample Form of Auditor’s Opinion
14. Matrix of INREM Communication Plan
Project Administration Manual Purpose and Process
The project administration manual (PAM) describes the essential administrative and management
requirements to implement the project on time, within budget, and in accordance with Government and
Asian Development Bank (ADB) policies and procedures. The PAM should include references to all
available templates and instructions either through linkages to relevant URLs or directly incorporated in
the PAM.
The Department of Environment and Natural Resources (DENR) is wholly responsible for the
implementation of ADB financed projects, as agreed jointly between the borrower and ADB, and in
accordance with Government and ADB’s policies and procedures. ADB staff is responsible to support
implementation including compliance by DENR of their obligations and responsibilities for project
implementation in accordance with ADB’s policies and procedures.
At Loan Negotiations the borrower and ADB shall agree to the PAM and ensure consistency with the
Financing and Grant agreements. Such agreement shall be reflected in the minutes of the Loan
Negotiations. In the event of any discrepancy or contradiction between the PAM and the Financing and
Grant Agreements, the provisions of the Financing and Grant Agreements shall prevail.
After ADB Board approval of the project's report and recommendations of the President (RRP) changes
in implementation arrangements are subject to agreement and approval pursuant to relevant
Government and ADB administrative procedures (including the Project Administration Instructions) and
upon such approval they will be subsequently incorporated in the PAM.
Abbreviations
ADB = Asian Development Bank

ADF = Asian Development Fund
AFS = audited financial statements
CHARMP = Cordillera highlands agricultural resources management project
CQS = consultant qualification selection
DBM = Department of Budget and Management
DENR = Department of Environment and Natural Resources
DMF = design and monitoring framework
EA = executing agency
EARF = environmental assessment and review framework
EIA = environmental impact assessment
EMP = environmental management plan
ESMS = environmental and social management system
GACAP = governance and anticorruption action plan
GDP = gross domestic product
IA = implementing agency
ICB = international competitive bidding
IEE = initial environmental examination
IFAD = International Fund for Agricultural Development
INREMP = integrated natural resources and environmental management project
IPP = indigenous people plan
IPPF = indigenous people planning framework
LAR = land acquisition and resettlement
LIBOR = London interbank offered rate
LGU = local government unit
NCB = national competitive bidding
NGOs = nongovernment organizations
PAI = project administration instructions
PAM = project administration manual
PIU = project implementation unit
QBS = quality based selection
QCBS = quality- and cost based selection
RRP = report and recommendation of the President to the Board
SBD = standard bidding documents
SFM = sustainable forest management
SGIA = second generation imprest accounts
SOE = statement of expenditure
SPS = Safeguard Policy Statement
SPRSS = summary poverty reduction and social strategy
TOR = terms of reference
WA = withdrawal application
I. PROJECT DESCRIPTION
1. The Integrated Natural Resources and Environmental Management (INREM)1 Project

(hereinafter referred to as Project) will address unsustainable watershed management in four
priority river basins: (i) the Chico River Basin in the Cordillera Administrative Region, Northern
Luzon; (ii) the Wahig–Inabanga River Basin on the island of Bohol; (iii) the Lake Lanao Basin in
the Autonomous Region of Muslim Mindanao; and (iv) the Upper Bukidnon River Basin in
Bukidnon, Northern Mindanao. With particular focus on indigenous peoples and resource-poor
communities, the project will reduce and reverse degradation of watersheds and associated
environmental services caused by forest denudation and unsustainable farming practices. It will
also provide incentives to local communities, local government units (LGUs), and the
Department of Environment and Natural Resources (DENR) for improving natural resource
management by generating sufficient and tangible economic benefits. Mechanisms to achieve
these project objectives include (i) payments for environmental services (PES) including water
regulation, soil conservation, carbon offsets, and biodiversity; (ii) income generation from
sustainable use and management and value-added processing of timber and non-timber forest
products; (iii) improved natural resource productivity; and (iv) improved climate resilience in
project watersheds.
2. Impact and Outcome. The Project impact will be improved condition of watersheds
generating livelihood benefits in the four URBs. The project outcome will be increased rural
household incomes and LGU revenues in selected watersheds in the four URBs.
3. Outputs. The Project outputs are consolidated based on extensive consultations with
stakeholders and beneficiaries.
a. Output 1: River basin and watershed management and investment plans
established. Indicative development plans (IDPs) will be developed for the four
URBs to be adopted by regional development councils and/or provincial
legislative councils. IDPs will be based on land capability assessments and
participatory land use classification to identify appropriate management zones,
and will be drawn up by the regional and provincial offices of the DENR in
coordination with national agencies and LGUs.2 Watershed management plans
(WMPs) will be prepared for the selected watersheds based on the IDPs. The
WMPs will define and prioritize subprojects and establish a work program for
implementation by LGU clusters and municipal development councils. The WMPs
will take account of existing tenurial arrangements and treat ancestral domains as
management subunits.3 A geographical information system (GIS) based database
for performance monitoring will be established.
b. Output 2: Smallholder and institutional investments in conservation
increased and URB productivity enhanced in the forestry, agriculture and
rural sectors. Subproject investments will be undertaken within the 23 project
watersheds based on outputs from river basin-wide planning (output 1).
Interventions for watershed restoration and rehabilitation covering more than
325,590 ha will be implemented by the DENR to include community-based
protection, reforestation and/or assisted natural regeneration, production forestry
1
ADB. 2009. Technical Assistance to the Republic of the Philippines for the Integrated Natural Resources and
Environmental Management Project. Manila. (TA 7109-PHI).
2
Integrated ecosystem management will be made operational within the priority watershed by assimilating science-
based land management regimes with local indigenous knowledge and practices.
3
As defined in the Indigenous Peoples Right Act, 1997.
1
including demonstrations on agroforestry and commercial plantations, and
conservation farming. Livelihood improvement investments to be undertaken by
municipal LGUs include (i) 645 kilometers of rural access roads and foot trails; (ii)
communal irrigation systems servicing 3,040 ha; (iii) 275 units of potable
community water facilities; (iv) a provincial trading and processing center
supporting farming communities; and (v) seed funds for replication and/or
expansion of tested and mature farming technologies.
c. Output 3: River basin and watershed management capacity and related
governance mechanisms strengthened. The project will (i) assist LGUs to
establish operational clusters at watershed and river basin levels; (ii) train LGUs
and local community organizations on land resource assessments, land use
planning, and watershed management and monitoring; (iii) provide support for
technical extension-information, education and communication (TE-IEC); (iv)
capacitate LGUs in carbon stock enhancement and land management practices to
reduce carbon dioxide emissions and land-based pollution, and (v) support the
establishment of community watershed protection brigades.
d. Output 4: Project management and support services delivered. The project

will support the establishment of a national project coordination office (NPCO),
regional project coordinating offices (RPCO), provincial project management
offices (PPMO) and watershed management and project coordination offices
(WMPCO) at the DENR. The NPCO will (i) coordinate consultant recruitment and
supervision; (ii) conduct procurement of materials, equipment, and vehicles during
project implementation; (iii) operationalize the project monitoring and evaluation
system; (iv) mobilize resources for capacity building of DENR’s regional and
provincial units and the LGUs; (v) consolidate the annual program and budgets
received from provincial and regional levels; and (vi) conduct gender and
safeguard monitoring and reporting.
II. IMPLEMENTATION PLANS
A. Project Readiness Activities
4. The Project readiness and its filters are shown in the tables below.
Months
Indicative Activities 3-4 6 7 8 9 10 11 12 Who responsible
Advance contracting actions √ DENR
Establish project implementation
arrangements √ DENR, ADB
ADB Board approval √ ADB
Loan signing √ ADB, DOF
Government legal opinion provided √ DOF
Government budget inclusion √ DBM, DENR
Loan effectiveness √ ADB
2
Project Readiness Filters
(As of Loan Negotiations)
Item Key Project Readiness Stage of Project Preparation Remarks
Indicators Identification/ Factfinding/ Negotiations Within 1 month
Conceptualization Appraisal of Effectiveness
1 Project is consistent with
MTPDP/MTPIP and CPS, and IS Confirmed
included into CIIP (for
infrastructure project loans)
2 EA/IA-Related Assessments:
a. Sector’s Institutional and
Political Economy Context Done
b. Stakeholder Analysis
c. Procurement Capacity
Assessment Done
d. Financial management Done
capacity assessment
e. Governance risk assessment Done
Done
3 Feasibility Study and/or Completed
Preliminary Design
4 Project Location Map Done
5 Safeguards:
a. Environmental Assessment Draft EARF reflected in
b. Involuntary Resettlement PAM
Assessment Draft RF reflected in PAM
- Right-of-way (ROW)
acquisition and Resettlement
st
action plan (at least for 1
year) with specific attention to
(i) sufficient budget or payment
of ROW acquisition; (ii)
availability of legal staff in
ROW issues; and (iii)
coordination with National
Housing Authority on people
relocation
c. Indigenous Peoples Draft IPPF reflected in
Assessment PAM
6 Co-financing in Place Commitment letters
received
7 Design and Monitoring
Framework
3
a. Project M&E (cost, EA staff, Done; reflected in RRP’s
consultants’ TOR, timing) Appendix 1
arrangements Confirmed by EA
b. Baseline data Collected
8 Project Implementation
Mechanism
a. Analysis whether a PIU is Done
needed
b. Identification of Project Director Identified; EA
and EA/IA project management administrative
team to be responsible for orders issued
project implementation;
definition go their project-
related ToR, accountability
mechanisms, and back-up
arrangements to ensure
continuity
c. Office, equipment, and other
facilities for project
implementation
Confirmed and reflected in
PAM
9 Procurement Issues
a. Advance contracting of Included in Procurement
goods, works and services Plan
b. Procurement plan (at least
first 18 months) with details Finalized and
on each contract’s schedule agreed with EA
and approval flow chart
c. TORs and RFPs for
consultancy contracts
(including Project
Management Consultants, if Included in Procurement
needed) Plan
d. Bidding documents for all
contracts on works and goods
to be procured in the first 18
months
10 Project Administration Manual Agreed
4
11 Counterpart Funding DBM certification
of budget cover
availability
received
12 Philippines Authorities’ Approvals
in Place
a. Latest mission’s MoU signed Done
by DOF (with agreed policy
matrix)
b. LGU-level projects: Regional Done
Development
Committee/MMDA (NCR
projects), ARMM-RPDO
(ARMM projects) endorsement
c. Projects or Bureaus or
attached agencies: Done
Endorsement from mother
agency/
department level
d. GOCC/GFI projects: DOF-CAG
review n.a.
e. For non-GFI relending projects:
NCC review n.a.
In LGU-involved projects (for pre-

identified LGUs):
a. Approvals of city (Sangguniang
Panlungsod), municipality Done
(Sangguiniang Bayan), and
provincial (Sangguniang
Panlalawigan) legislatures
obtained
b. Sufficient budget allocation and
clearly defined implementation
schedule to be paid specific
attention
c. Certificates of credit- Done
worthiness obtained from
BLGF (if MDFO/GFIs act as
conduits
d. Fact-finding mission (or latest
5
mission’s ) MoU signed by Done
EA/DOF
e. Forward obligatory authority
issued
f. NEDA Board confirmation of
ICC approval Done
g. Monetary Board’s “in principle”
approval
h. Special Presidential Authority Cleared by DBM
to negotiate and sign loan
agreement Cleared by NEDA
i. Monetary Board’s final
approval
j. Legal Opinion Cleared by BSP
Cleared by
DOF/OP
Cleared by BSP
MTPDP=Medium Term Philippine Development Plan; MTPIP=Midterm Public Investment Program; CPS=Country Programming Strategy; IS= Investment Strategy;
CIIP=Comprehensive and Integrated Infrastructure Program; EA/IA=Executing Agency/Implementing Agency; EARF=Environmental Assessment and Review
Framework; RF/RP=Resettlement Framework/Resettlement Plan; IPPF/IPP=Indigenous People Planning Framework/Indigenous Peoples Plan; PIU=Project
Implementation Unit; DBM=Department of Budget and Management; DOF=Department of Finance; MoU=Memorandum of Understanding; MMDA=Metro Manila
Development Authority; NCR=National Capital Region; ARMM-RDPO=Autonomous Region of Muslim Mindanao-Regional Planning and Development Office;
GOCC=Government Owned of Controlled Corporations; GFI=Government Financial Institutions; DOF-CAG=Department of Finance’s Corporate Affairs Group’
NCC=National Credit Council; LGU-Local Government Unit; BLGF=Bureau of Local Government Finance under Department of Finance; NEDA=National
Economic and Development Authority; BSP=Bangko Sentral ng Pilipinas; OP=Office of the President
6
B. Overall Project Implementation Plan
Yr 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Yr 8

Activities 2012 2013 2014 2015 2016 2017 2018 2019 2020
A. DMF
1. River basin and watershed m anagement plans established
1. NPCO design and establish GIS-based database for performance monitoring,

including the training of DENR regional and prov incial and LGU staff in the four → → → → → → → →
selected riv er basins by end month 24
2. NPCO acquires remote sensing data and completes baseline assessment of
→ → → → → → → →
land uses in URBs including ground truthing by end of month 24
3 NPCO prepares detailed v ulnerability and adaptation assessment plans in the
→ → → → → →
four selected riv er basins by month 18.
4 NPCO, through the PPMO and WMPCO, assesses land use capability and
participatory land use classification, zoning, and adoption in four selected riv er → → → → → → → →
basins by month 24.
5 NPCO, dev elops and implements carbon stock baseline assessments in the
→ → → → → →
four selected riv er basins by month 24.
6. PPMO delineates and demarcates forest boundaries in consultation w ith local → → → → → → → → → → → → → → → → → → → → →
communities from month 18 to month 80.
7 LGUs issue enabling legislativ e instruments as prescribed in the URBMPs,
including appropriate tenure and PES, for local community participation in → → → → → → → → → → → → → → → → →
INREM in the four selected riv er basins by month 60.
2. Smallholder and institutional investments for conservation increased and livelihoods improved in the URBs
1. RPCO, prepares project plans including inv estment strategies for priv ate
sector participation, based on inv entories and analy ses for conserv ation areas
→ → → → → →
and buffer zones to support dow nstream inv estments in the four selected riv er
basins by month 24.
2 WMPCO implements project plans in selected riv er basins by subprojects in
accordance w ith agreed land use classification and zoning from month 18 to → → → → → → → → → → → → → → → → → → → → → →
month 84
and management of protected areas w ith community participation; and forest-
based sustainable liv elihoods and rural infrastructure rehabilitation and
→ → → → → → → → → → → → → → → → → → → → → →
improv ements in production forest areas and agricultural land from month 18 to
month 84.
4 PPMO, based on the agreed criteria, selects additional subprojects, undertake
necessary assessment for preparation of subproject feasibility studies consistent
→ → → → → → → → → →
w ith prescriptions in the URBMPs in four selected riv er basins, from month 18 to
month 48.
5 Participating LGUs prov ide infrastructure maintenance funding and carry out
→ → → → → → → → → → → →
routine O&M starting from month 49 (one y ear after completion of infra projects).
7
Activities 2012 2013 2014 2015 2016 2017 2018 2019 2020
3. River basin and watershed management capacity and related governance mechanisms strengthened
1 NPCO assesses capacity building needs in the project area, and complete
→ → → → → →
training for staff concerned by end of month 18
2 NPCO dev elops TE-IEC program for each selected riv er basin by end of 18 → → → →
3 PPMO undertakes field implementation of TE-IEC in the four selected riv er
→ → → → → → → → → → → → → → → → → → → → →
basins from month 18 to month 84 (including aw areness raising)
4 NPCO implements capacity building and skills transfer training ev ents
cov ering natural resource management, climate change, mainstreaming of → → → → → → → → → → → → → → → → → → → → → →
biodiv ersity , PES, and REDD
4. Project Management and Support Serv ices deliv ered

1 WMPCO enforces regular and effectiv e rules and regulations required for
effectiv e implementation of URBMP through field v isits and patrolling in the four → → → → → → → → → → → → → → → → → → → → → →
selected riv er basins from month 19 to month 84.
2. NPCO carries out regular M&E and integrates results in the 6-monthly and
→ → → → → → → → → → → →
annual project progress reports
3 NPCO formulates terms of reference and carries out relev ant studies required
for project deliv ery ; feeds in results for project improv ement and enhancement → →
by end of month 3
4 NPCO carries out and documents gender- and indigenous-peoples-related
safeguard studies (including monitoring of inv oluntary resettlements) and prepare → → → → → → → → → → →
annual reports for dissemination and inclusion in project annual progress reports
B. Management Activities
1. Mobilization of staff & consultants, setting up Project organization at national,
→ →
regional, prov incial & municipal lev els
1. Official designation of Project officers and staff; definition of functions and
delineation of responsibilities of the v arious play ers from central office dow n to →
the PENRO/CENRO lev el. (Issuance of Department Adminstrativ e Order)
2. Orientation and planning w orkshops: national, regional and PENRO/CENRO -
→ → → →
LGU lev el
3. Recruitment of Project assisting professionals (7 NPCO based); 12
→ → → →
ex tension w orkers, 3 per URB)
2. Procurement of satellite imagery ; aerial photography ; equipment and serv ices: → → → → →
1 Inv entory of sattelite data already av ailable at and in the process of
→ →
procurement by DENR, NAMRIA, DA and other gov ernment agencies.
2 Preparation of the list and specfications of sattelite imagery and aerial
→
photography
3. Preparation/finalization of TORs and Specifications for Consulting Serv ices,
→ →
and procurement documents & announcements
4. Inv entory of GIS softw are and hardw are av ailable at DENR(FMB),
→
Regional/Prov incial Offices and NAMRIA
8
Activities 2012 2013 2014 2015 2016 2017 2018 2019 2020
5. Preparation of list of equipment, its specifications and procurement documents
→ →
& announcements
6. Procurement of sattelite imagery ; aerial photography → → →
7. Procurement of Consultancy Serv ices → → → →
8. Procurement of equipment (GIS, ICT, v ehicles and other office equipment for
→ → → → → → → → →
Regional/prov incial DENR offices and participating LGUs)
9 Preparation of TORs/specifications for the conduct of training or capacity
building activ ities for: (a) conserv ation farming; (b) fund administration (project, → → → →
grant, and liv elihood funds); (c) IEC for technical ex tension
10. Procurement of v ehicles and computers for the participating LGUs → → → → → → → → →
3. Preparation/finalization (formulation or adaption) and adoption, through
administrativ e issuances, manuals, criteria, standards, guidelines and/or procedures
→ → → →
for approv al and undertaking of sub-projects, activ ities, funds/grants administration,
particularly for but not limited, to the follow ing:
1 Manual for Riv er basin/w atershed management to guide the WMCs on land
capability & participatory land use classification, zoning, approv al and adoption → → → →
(including criteria/standards and guidelines for preparation and acceptability of
URBMPs/WMPs)
2 Criteria for selection, assessment and approv al for subprojects for Component
→ → → →
2 of INREMP, Smallholder/imstitutional inv estments; namely :
a. community -based protection
b. afforestatioon/ reforestation
c. assisted natural regeneration
d. sustainable forest management
e. demo commercial forest plantation
f. agro forestry (w ith community participation)
g. rehabilitation or improv ement of rural access roads /foot trail
h. communal irrigation sy stems
i. potable community w ater facilities
j. trading center (in Chico URB)
k. conserv ation farming training and liv elihood support
3 Criteria and procedures for LGU participation → → → →
4 Dev elopment and adoption of mechanism for the use of block grant for forest
protection and funding support for community liv elihood through conserv ation → → → → → →
farming
4. Dev elopment of training/capacity building acitv ities → → → → → →
Counduct of training courses: → → → → ∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞ →
5. Env ironmental management plan activ ities
1.Capacity building → → → → → → → →
2. Monitoring → → → →
9
Activities 2012 2013 2014 2015 2016 2017 2018 2019 2020
6. Gender action plan kety activ ities
1. Participation on establishment of committees → → → → → → → → → →
2. Capacity building → → → → → → → → →
7. Communication strategy key activ ities

1. Internal communication → → → → ∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞ →
2. Technical communication → → → → ∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞ →
3. Adv ocacy and public communication → → → → ∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞ →
4. Dev elopment support communication → → → → ∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞∞ →
8. Annual/Mid term rev iew → → → → → → → → → → → →
1. Assessment of project progress in the selected riv er basin → → → → →
2. Assessment of PBGS implementation → → → →
Project Completion
1. Upon termination/completion of Project, turnov er of Project assets to LGUs or
→ → → →
DENR as appropriate or as agreed upon.
2. Preparation & submission of Project Completion Report → → →
3. Final Accounting & Auditing of funds/disbursements → → → →
4. Ev aluation of Project results and impacts → → →
10
III. PROJECT MANAGEMENT ARRANGEMENTS
A. Project Implementation Organizations – Roles and Responsibilities
Project implementation
Management Roles and Responsibilities
organizations
 Executing agency –  Supervision and responsibility for over-all
Department of administration and management of the Project.
Environment & Natural Administer imprest accounts for proceeds from
Resources (DENR) ADB loan, IFAD loan, GEF grant and CCF grant.
 Project specific  The NPCO will be based at the DENR-Forest

management body Management Bureau (FMB) and shall be headed
(either stand-alone or by the FMB Director, to be assisted by a Deputy
within the executing Project Manager. The FMB Director will facilitate
agency) – INREMP coordination across the technical bureaus. NPCO
National Project will be staffed with seconded DENR personnel with
Coordinating Office appropriate skills and expertise related to INREM.
(NPCO)/DENR-FMB  The NPCO will lead and oversee Project
implementation in collaboration with various
operating units of the DENR and Local
Governments concerned, and in close coordination
with oversight agencies and ADB.
 Ensure timely provision of logistics for all aspects of
Project implementation;
 Lead the conduct of necessary policy analyses and
policy adjustments to support INREM;
 Mobilize resources for capacity-building
requirements of LGUs for URB planning and
implementation;
 In terms of project components, responsible for
Component D: Project Management and Support
Services, with the assistance of consultants, other
government agencies, and non-government
institutions/organizations;
 Coordinate with DENR-FASPO and FMS in the
consolidation of expenditure reports and
preparation of Statement of Expenditures (SOEs).
 Project Steering  NPSC will provide policy guidance for the smooth
Committee – National implementation of the Project.
Project Steering  Chaired by a DENR Undersecretary, with
Committee (NPSC) membership composed of Undersecretaries of
oversight and relevant Departments and senior
11
organizations
representatives from concerned agencies and
chairmen of leagues of LGUs.
 Membership: Undersecretaries of the Department
of Agriculture (DA), Department of Agrarian Reform
(DAR), Department of Budget and Management
(DBM), Department of Interior and Local
Government (DILG), senior representative from
National Economic and Development Authority
(NEDA), Chairman of the National Commission on
Indigenous Peoples (NCIP), Chairmen of the
Leagues of Provinces, Municipalities and Cities
within the INREMP regions.
 Interagency Technical  Provide support the NPSC/NPCO.
Working Group (TWG)  Coordinate their respective agencies’ work to
support Project implementation, and the necessary
interagency linkages and coordination.
 The TWG shall be chaired by the NPCO Deputy
Project Manager and co-chaired by the member-
representative from Protected Areas and Wildlife
Bureau (DENR-PAWB). Members shall be
designated technical staff from concerned
departments and other operational agencies/units
of the DENR.
 Review the Consultants’ outputs.
 Regional Project  Coordinate with national government agencies at
Coordination Office (at regional level. The RPCO will be based at the
DENR Regional DENR-Regional Office and shall be headed by the
Offices) Regional Executive Director, to be assisted by the
RTD (FMS or PAWS concerned).
 With NAMRIA technical guidance, lead the conduct
of land use assessment and URB management
planning
 Administer project subaccounts for each of the
sources of funds received for undertaking project
activities.
 Responsible for the full supporting documentation
of disbursements made from their project
subaccounts and submitting the original to
NPCO/DENR-FMB and safekeeping copies of such
documents.
12
organizations
 DENR - Foreign  Administer the Project funds/accounts;
Assisted and Special  FMS shall download funds to FMB (NPCO), DENR
Projects Office Regional and Provincial offices and other
(FASPO) and Financial implementing units, upon recommendation by the
Management Services NPCO;
(FMS)
 FASPO, through its Accounts Management
Division, shall consolidate reports of expenditures;
prepare and submit Statement of Expenditures
(SOE) and Withdrawal Applications (WAs) to ADB;
 Prepare and submit proposals, reports and
requests for the annual appropriation, budget
allotment advices and notices of cash allocations
for the Project to DBM;
 Coordinate and liaise with oversight national
government agencies and funding institutions
(ADB, IFAD and GEF) regarding the administration
of the Project Funds.
 FASPO, through its Procurement Unit, will be
responsible for undertaking procurement activities
of the project.
 Provincial Project  Provide guidance and technical support to
Management Offices implementing provincial LGUs;
(PPMO) in each of the  Coordinate and undertake liaison works among
participating provinces agencies at the provincial level;
under the DENR
Provincial Environment  Coordinate the implementation of URB forest
and Natural Resources conservation, protection and rehabilitation, and the
Office (PENRO) execution of technical extension and IEC.
 Watershed  Coordinate the implementation of rural

Management and rehabilitation and improvement works by municipal
Project Coordination LGUs;
Offices (WMPCO)  Coordinate the implementation of models for forest-
covering project based investments by communities, POs and IPOs,
sites/municipalities and private investors: agroforestry, conservation
under the DENR- farming, forest plantations, sustainable forest
Community management, including REDD and climate change
Environment and adaptation activities.
Natural Resources
Office (CENRO)
13
organizations
 Implementing agency 1  Coordinate with DENR/NPCO on the
- Municipal implementation of LGU projects qualified to be
Development Fund funded from the INREMP loan proceeds.
Office, Department of  Act as conduit for funding projects to be
Finance implemented by the LGUs.
 Administer the imprest accounts for loan proceeds
from ADB and IFAD.
 Prepare and submit withdrawal applications;
consolidate expenditure reports and prepare and
submit SOEs.
 Implementing agency  Coordinate with DENR/NPCO on the
2- Department of implementation of LGU projects in CHARM 2
Agriculture Project areas within Chico River Basin qualified to
be funded INREMP loan proceeds.
 Release funds to participating LGUs.
 Administer the imprest account for loan proceeds
from ADB.
 Prepare and submit withdrawal applications;
consolidate expenditure reports and prepare and
submit SOEs.
 ADB  Provide guidance to EA and oversee
implementation.
 Orientation to EA and Implementing Agencies
 Disbursement of ADB Loan and Grant Proceeds
 Administer ADB and IFAD Loan and GEF and CCF
Grants
 IFAD  Providing co-financing for INREMP.
 Supervision of the implementation of the ADB-
provided co-financing for CHAMRP2.
 Participation in the ADB supervision missions for
INREMP.
14
B. Key Persons Involved in Implementation
Executing Agency
Agency Name Atty. Analiza Teh
Undersecretary/ Chief of Staff
929 66 26 local 2249
Visayas Avenue, Diliman, 1100 Quezon City, Philippines
tehanna08@gmail.com; analiza@denr.gov.ph
ADB
Environment, Natural Resources Javed H. Mir
and Agriculture Division Director
Southeast Asia Department Environment, Natural Resources and Agriculture Division
Southeast Asia Department
Tel. No. +632 632 6234
jhmir@adb.org
Mission Leader Pavit Ramachandran
Environment Specialist
Tel. No. +632 632 50 54
pramachandran@adb.org
IFAD
Asia and the Pacific Division Youqiong Wang
Programme Management Country Programme Manager
Department Asia and the Pacific Division
Programme Management Department
IFAD
Via Paolo di Dono 44
00142 Rome, Italy
Tel. +39 06 5459-2076
Fax + 39 06 5459-3076
E-Mail Address: y.wang@ifad.org
Yolando C. Arban
Country Programme Officer, Philippines
International Fund for Agricultural Development (IFAD)
Philippines IFAD Country Office
30th Flr., Yuchengco Tower 1
RCBC Plaza, 6819 Ayala Avenue
Makati, Metro Manila, Philippines
Tel. +632.9010230
Fax. +6329010200/8897177
E-Mail: y.arban@ifad.org
15
C. Project Organization Structure
IMPLEMENTATION ORGANIZATION CHART

DENR Secretary National Project

Steering Committee
Undersecretary (PSC Chair) (NPSC)
National
DENR‐ FASPO and
FMS

Forest Management Bureau
Interagency Technical

National Project Working Group
(TWG)
Consultants
Coordination Office (NPCO)
Project

Regional
DENR Regional Office
Regional Executive Director Regional Development
Regional Project Council
Coordination Office (RDC)

Provincial INREM
DENR PENRO Councils (PINREM‐C)
Technical Advice and Capacity‐Building
Provincial
Provincial Project
Management Office
(PPMO) Provincial Governments

(P/LGU)

Municipal Cluster

Municipal Governments
DENR CENRO (M/LGU)
Watershed

Watershed Management &
Project Coordination Office
Watershed Management

Councils

Sub‐project/ site level

Communities and Organizations
(CBOs, IPs, POs, NGOs, Private Sectors,
Institutions)
Implementation of Project sub‐
components and activities

Line Function Technical Assistance, Advisory & Coordination
16
5. The Department of Environment and Natural Resources (DENR) will be the Executing
Agency (EA) and will assume full supervision and responsibility in the administration and
management of the Project. An interagency National Project Steering Committee (NPSC), chaired
by a DENR Undersecretary, will be established at the DENR Central Office (CO) to provide policy
guidance for the smooth implementation of the Project. A National Project Coordination Office
(NPCO)4 will be the main Project implementing unit of the DENR as Executing Agency. The
NPCO shall be assisted by an inter-agency Technical Working Group (TWG). A pool of Project
Consultants5 commissioned by the Project shall provide services for: (a) developing the technical
expertise in DENR, other NGA, and LGU staff to scientifically guide policy-makers and ENR
stakeholders in managing river basin and watershed resources; (b) establishing the knowledge-
based decision-support systems and Information infrastructure for environment and natural
resources management in river basin context.
6. Other implementing agencies will be Municipal Development Fund Office (MDFO) and
Department of Agriculture (DA). MDFO will administer the funds for rural infrastructure
improvements which will be implemented by the municipal LGUs except for those covered by the
Cordillera Highland Agricultural and Resources Management (CHARM) Project which will be
administered by DA.
7. Foreign Assisted and Special Projects Office (FASPO) and the Financial Management
Service (FMS) of the DENR shall coordinately administer the Project funds and accounts.
FASPO, through its Accounts Management Division, shall be responsible for the preparation
and/or consolidation and submission of Withdrawal Applications (WAs) and SOEs to ADB. FMS,
in coordination with FASPO, shall be responsible for the preparation and submission of the
Project’s annual/3 or 5 year budget proposals and requests for release of Allotment Advices and
Notices of Cash Allocations to DBM. FASPO, through its Procurement Unit, shall be responsible
for the timely procurement of goods, works and services, including consultancy services, for the
Project. FASPO shall initiate preparatory activities indicated in the more detailed description of the
implementation arrangements presented in Appendix 1. FMB shall assign a counterpart staff in
the FASPO, Procurement Unit to coordinate INREMP’s procurement requirements with NPCO.
8. At the regional level, there shall be a Regional Project Coordination Office. The Regional
Development Councils shall provide policy guidance for the Land Use Assessment, Land
Capability Analysis, and Management Planning work by ensuring (a) that the analyses and land
management planning processes are consistent with the regional development objectives; (b) the
process and the outputs are legitimized by RDC supporting decisions.
9. At the municipal level, the following situations exist: (1) a watershed is under the full
administrative jurisdiction of a single municipality; (2) a watershed straddles across administrative
boundaries of several municipalities. In both cases, a multi-sectoral Watershed Management
Council (WMC) shall be established. The WMC shall be the forum for arriving at consensus on
land-use and natural-resource-based investments within their watershed. The legitimacy of these
WMCs would be strengthened if the municipal governments concede to the advisory ‘authorities’
of these WMCs; a national legislation or Presidential Executive Order would strengthen the
participatory governance influence of these WMCs.
4
All DENR Project units at all levels shall be composed of seconded regular staff of appropriate expertise. Depending
on the needed workloads and expertise as identified by the respective project coordinators at various levels, these
staff may be seconded as full-time or part-time. This is to ensure institutionalization of Project skills and expertise
that will be developed. Additional contractual staff may be engaged only if the skills required are not available within
the DENR.
5
Refer to Section VI.E. Consultants’ Terms of Reference
17
10. The administrative and technical focal point for the project at the watershed level is the
Watershed Management and Project Coordination Office based at the DENR-CENRO. This office
will oversee the implementation of project activities and demonstration projects by Communities
and Organizations (CBOs, IPs, POs, NGOs, Private Sectors, and Institutions). Its administrative
operations shall be guided by the DENR functional rules regarding INREMP. In terms of
prioritizing projects, locating project investments sites and similar concerns, the WMPCO shall
closely coordinate with the M/LGUs in the watershed, and the Watershed Management Council,
particularly in cases where conflicts among stakeholders occur.
11. The technical resources of the P/LGUs and the M/LGUs (e.g., LGU planning and
development offices, provincial and municipal agriculture offices, LGU environmental
management offices, engineering departments, etc.) are expected to be mobilized by the
respective LGUs in support of on-ground INREM project implementation. The Project will support
incremental operating requirements of these LGUs in this regard.
1. Lake Lanao and ARMM
12. As a protected area, Lake Lanao River Basin (LLRB) falls within the jurisdiction of DENR
-Region X. However, its geographic location falls entirely within the province of Lanao del Sur
which within the jurisdiction of the Autonomous Region of Muslim Mindanao (ARMM). With the
overlapping jurisdiction over the area, DENR Region X shall coordinate the implementation of the
Project with DENR-ARMM and the LGUs. The details of the implementation arrangements for
LLRB shall be described in a Memorandum of Agreement (MOA) between/among DENR- Region
X and DENR-ARMM and the Province of Lanao del Sur. The duties and responsibilities of each
entity involved shall be specified in the said MOA.
13. For LLRB, INREMP’s PPMO shall be based at Lanao del Sur Provincial government,
Environmental and Natural Resources Office (ENRO). The Provincial Government, through its
designated PPMO, shall coordinate and orchestrate on the ground activities and investments that
shall be undertaken by the participating municipal LGUs.
14. Prior discussions have been conducted and as preparatory activity, the details of the
implementation arrangements shall be further discussed and finalized in a MOA. The MOA shall
include, among others, (i) the requirement of the commitment, participative preparation and
adoption of the INREMP watershed management and investment plans by all concerned LGUs
within the watershed prior to any investment under Component 2, Smallholder and institutional
investments; and (ii) option of the DENR (Region X) to terminate MOA and prioritize another river
basin in case of more than a year delay in the undertaking of initial activities in LLRB.
2. Phased Implementation
15. At the Watershed level and investment stage, the project approach shall be phased: (i)
Implementation within Core Watersheds and (ii) upscaling to other Watersheds within the River
Basins. Project implementation after river basin-wide planning shall initially be limited to the four
core watersheds assessed during the Feasibility Study. These core watersheds were: (i) scoped
out for subprojects; (ii) assessed to have watershed management plans in place and/or in
an advanced preparation stage; (iii) the focus of detailed stakeholder sensitization and orientation
and capacity needs assessments, including LGU implementation and fiscal capacities. (See
Appendix 1. Implementation Arrangements).
18
IV. COSTS AND FINANCING
16. Cost Estimates. The Project is estimated to cost US$154.13 million equivalent,
including contingencies, taxes and duties.6 The cost estimates for the Project outputs namely: (i)
River Basin and Watershed Management and Investment Plans; (ii) Smallholder/Commercial/
Institutional Investment; (iii) Enhanced Capacity for River Basin and Watershed Management; and
(iv) Project Management and Support Services are shown in details in Table 1. Detailed cost
tables per sub component are presented in Appendix 2.
Table 1: Project Investment Plan

($ million)
Item Amounta
b
A. Base Cost
1. Output 1: River basin and watershed planning 11.72
2. Output 2: Smallholder and institutional investments 115.85
3. Output 3: Capacity building 2.11
4. Output 4: Project management and support services 14.04
Subtotal (A) 143.72
c
B. Contingencies
1. Physical contingencies 1.47
2. Price contingencies 1.79
Subtotal (B) 3.26
C. Financial Charges During Implementationd 7.15
Total (A+B+C) 154.13
a
Includes taxes and duties of $8.5 million.
b
In mid-2011 prices.
c
Physical contingencies computed at 0, or 3%–5% for most expenditure categories. On foreign exchange costs, price
contingencies are computed at 0.3% for 2013 and 0.5% for 2014–2019; on local currency costs, price contingencies
are computed at 4% for 2013–2019; costing includes provision for potential exchange rate fluctuation under the
assumption of a purchasing power parity exchange rate.
d
Includes interest and commitment charges financed by ADB.
Source: Asian Development Bank estimates.
17. Financing Plan. The financing plan is in Table 2. The Government of the Philippines
(GOP), through DENR, has requested a loan of $100 million equivalent from ADB’s ordinary
capital resources to help finance the Project. The ADB loan will have a 20-year term, including a
grace period of 8 years and annuity-type repayment method, an interest rate determined in
accordance with ADB’s London interbank offered rate (LIBOR)-based lending facility, a
commitment charge of 0.15% per annum and other such terms and conditions set forth in the draft
loan agreement. Based on these loan terms and repayment method, the average loan maturity is
20 years and the maturity premium to ADB is 0.10% per annum. Financial charges and interest
during implementation will be capitalized.
18. IFAD is expected to provide a $20 million loan (approximately equivalent to

SDR13,250,000) subject to intermediate terms and conditions for middle-income countries, which
currently includes a 20-year term and a grace period of five years. The IFAD loan will be partially
administered by ADB as a parallel co-financing agreement. IFAD funds are expected to finance
participatory management planning in Lake Lanao and Upper Bukidnon river basins; all other
project activities within selected watersheds in Upper Bukidnon river basin (except for SFM,
agroforestry and commercial forest plantation); and Project support staff consultants at the NPCO
and regional/provincial project offices.
6
The taxes and duties are to be financed by the Government.
19
Table 2: Financing Plan
Source Amount ($ million) Share of Total (%)
Asian Development Bank 100.00 64.90
International Fund for Agricultural Developmenta 20.00 13.00
a
Climate Change Fund 1.41 0.90
Global Environmental Funda 2.50 1.60
National government 15.31 9.90
Local government units (with in-kind contribution) 8.49 5.50
Beneficiaries (in-kind contribution) 6.42 4.20
Total 154.13 100.00
a
To be administered by the Asian Development Bank. Funds administered by the Asian Development Bank may
finance transportation and insurance costs.
Source: Asian Development Bank estimates.
19. GEF has committed to provide grant co financing of $2.5 million equivalent and the
Climate Change Fund has committed to provide $1.41 million, both to be administered by ADB.
GEF grant will be used to provide substantial support for (i) the preparation of URB and
watershed management plans (Output 1); (ii) in investment in watershed conservation and
management (Output 2); (iii) in capacity building (Output 3); and (iv) for Project management
(Output 4). CCF grant will support (i) forest conservation and watershed management; (ii) river
basin and watershed management plans; and (iv) capacity building.
20. GOP will provide funding equivalent of $15.305 million through taxes and duties ($7.604
million) and project staff, facilities, management and other recurrent costs ($7.601 million); local
government units will provide $8.49 million, including taxes and duties ($0.92 million), in equity
and in-kind contribution; and $6.426 million in-kind contribution will be provided by beneficiaries.
20
A. Detailed Cost Estimates by Expenditure Category
Expenditure Accounts Project Cost Sum m ary (P '000) ($ '000) % Total

Local Foreign Total Local Foreign Total Costs Base
I. Investm ent Costs

A. Civil Works
ADB-funded Civil Works 859,582 318,959 1,178,541 20,646 7,661 28,306 20
IFAD-funded Civil Works (Bukidnon only) 163,269 57,214 220,483 3,921 1,374 5,296 4
LGU_Counterpart Civil Works 218,949 93,835 312,785 5,259 2,254 7,513 5
Subtotal Civil Works 1,241,800 470,008 1,711,809 29,826 11,289 41,115 29
B. Equipm ent
Vehicles 11,365 17,048 28,413 273 409 682 -
Vehicles (IFAD) 3,699 5,548 9,247 89 133 222 -
GIS Netw ork-Computer Package 11,557 17,336 28,893 278 416 694 -
IFAD_GIS Netw ork-Computer Package 3,143 4,714 7,857 75 113 189 -
GEF-Funded Computer Packages 765 1,148 1,914 18 28 46 -
Subtotal Equipm ent 30,529 45,794 76,323 733 1,100 1,833 1
C. Satellite Images & Data Acquisition 17,420 26,130 43,550 418 628 1,046 1
D. Conservation Forestry
Protection & Monitoring (Block Grant) 143,605 - 143,605 3,449 - 3,449 2
IFAD_Protection & Monitoring (Block Grant) 75,241 - 75,241 1,807 - 1,807 1
CCF-Funded Protection & Monitoring (Block Grant) 13,256 - 13,256 318 - 318 -
Establishment & Maintenance Costs 1,402,876 - 1,402,876 33,695 - 33,695 23
IFAD_Establishment & Maintenance Costs 140,043 - 140,043 3,364 - 3,364 2
GEF-Funded Conservation Forestry 15,056 - 15,056 362 - 362 -
Subtotal Conservation Forestry 1,790,076 - 1,790,076 42,994 - 42,994 30
E. Com m ercial Forestry
CCF-Funded Sustainable Management 23,249 613 23,862 558 15 573 -
Establishment & Maintenance Costs 574,337 17,763 592,100 13,795 427 14,221 10
Beneficiary Contribution to Costs 246,108 7,612 253,719 5,911 183 6,094 4
Subtotal Com m ercial Forestry 843,693 25,987 869,681 20,264 624 20,888 15
F. Livelihood Inputs
Livelihood Inputs (except Bukidnon) 122,339 6,439 128,778 2,938 155 3,093 2
Livelihood Inputs (Bukidnon only) 262,811 13,832 276,643 6,312 332 6,644 5
GEF-Funded Livelihood Inputs (Block Grant) 6,329 333 6,662 152 8 160 -
Subtotal Livelihood Inputs 391,478 20,604 412,083 9,403 495 9,898 7
21
Expenditure Accounts Project Cost Sum m ary (P '000) ($ '000) % Total
Local Foreign Total Local Foreign Total Costs Base
I. Investm ent Costs

G. Consultants
Consultants - ADB 162,703 - 162,703 3,908 - 3,908 3
Consultants - IFAD 58,960 - 58,960 1,416 - 1,416 1
GEF-Funded Consultants 28,542 17,444 45,985 686 419 1,104 1
CCF-Funded Consultants 6,202 5,984 12,186 149 144 293 -
Subtotal Consultants 256,407 23,428 279,835 6,158 563 6,721 5
H. Locally Contracted Services
Locally Contracted Services 44,563 2,345 46,908 1,070 56 1,127 1
GEF_Locally Contracted Services 11,191 - 11,191 269 - 269 -
Subtotal Locally Contracted Services 55,754 2,345 58,100 1,339 56 1,395 1
I. Capacity Building, Studies and Surveys
Capacity Building, Studies and Surveys 106,721 5,617 112,338 2,563 135 2,698 2
Capacity Building, Studies and Surveys_IFAD 30,446 1,602 32,049 731 38 770 1
GEF-Funded Capacity Building, Studies & Surveys 15,149 797 15,946 364 19 383 -
CCF-Funded Capacity Building, Studies & Surveys 12,074 984 13,058 290 24 314 -
Subtotal Capacity Building, Studies and Surveys 164,390 9,001 173,391 3,948 216 4,165 3
J. Increm ental Operating Costs
1. Incremental Operating Costs 148,166 7,798 155,964 3,559 187 3,746 3
2. IFAD_Incremental Operating Costs 50,375 2,651 53,026 1,210 64 1,274 1
3. GEF_Incremental Operating Costs 16,578 873 17,451 398 21 419 -
Subtotal ncrem ental Operating Costs 215,119 11,322 226,441 5,167 272 5,439 4
Total Investm ent Costs 5,006,667 634,620 5,641,288 120,251 15,242 135,494 94
II. Recurrent Costs
A. Recurrent Government Expenditure 316,634 - 316,634 7,605 - 7,605 5
B. O&M Community Infrastructure 9,055 - 9,055 217 - 217 -
C. O&M LGU Infrastructure 16,640 - 16,640 400 - 400 -
Total Recurrent Costs 342,329 - 342,329 8,222 - 8,222 6
Total BASELINE COSTS 5,348,997 634,620 5,983,617 128,474 15,242 143,716 100
Physical Contingencies 57,961 3,544 61,504 1,392 85 1,477 1
Price Contingencies 604,128 102,742 706,869 1,528 260 1,788 1
Total PROJECT COSTS 6,011,085 740,905 6,751,990 131,394 15,588 146,982 102
Interest During Implementation - 290,331 290,331 - 6,518 6,518 5
Commitment Charges - 28,972 28,972 - 632 632 -
Total Costs to be Financed 6,011,085 1,060,208 7,071,293 131,394 22,738 154,132 107
22
B. Allocation and Withdrawal of Loan and Grant Proceeds
ALLOCATION AND WITHDRAWAL OF LOAN PROCEEDS

(Integrated Natural Resources and Environmental Management Project)
CATEGORY ADB FINANCING BASIS
Total Amount Allocated for Percentage of ADB Financing

ADB Financing from the
($) Loan Account
Number Item Category Subcategory
1 Works 25,694,000 89 percent of total expenditure
claimed
2 Equipment 1,126,000
2A Vehicles 495,000 70 percent of total expenditure
claimed
2B Equipment 631,000 88 percent of total expenditure
claimed
3 Satellite Images & Data 946,000 88 percent of total expenditure
Acquisition claimed
4 Conservation forestry 37,232,000
4A Protection & Monitoring 3,540,000 100 percent of total expenditure
(Block Grant) claimed*
4B Establishment & 33,692,000 100 percent of total expenditure
Maintenance Cost claimed*
5 Commercial forestry 14,475,000 100 percent of total expenditure
claimed*
6 Livelihood Inputs 2,803,000 89 percent of total expenditure
claimed
7 Consulting Services 3,662,000 88 percent of total expenditure
claimed
8 Locally contracted 1,032,000 88 percent of total expenditure
services claimed
9 Capacity Building 2,477,000 88 percent of total expenditure
claimed
10 Incremental Operating 3,403,000 88 percent of total expenditure
Costs claimed
11 Interest and 7,150,000 100 percent of amounts due
Commitment Charge
Total 100,000,000
* Exclusive of taxes & duties within the territory of the Philippines.
23
ALLOCATION AND WITHDRAWAL OF LOAN PROCEEDS
Total Amount Allocated for Percentage of IFAD
IFAD Financing ($) Financing from the
Number Item Category Subcategory Loan Account
1 IFAD-Civil Works 4,812,000 90 percent of total
expenditure claimed
2 Equipment (IFAD) 336,000
70 percent of total
2.a Vehicle (IFAD) 162,000
expenditure claimed
2.b IFAD –GIS Network 174,000 88 percent of total
Computer expenditure claimed
3 Conservation forestry - 5,306,000
IFAD
3a IFAD–Protection & 1,942,000 100 percent of total
Monitoring (Block Grant) expenditure claimed *
3b IFAD Establishment & 3,364,000 100 percent of total
Maintenance Costs expenditure claimed *
4 Livelihood Inputs (Bukidnon 6,322,000 89 percent of total
only) expenditure claimed
5 Consulting Services -IFAD 1,323,000 88 percent of total
expenditure claimed
6 Capacity Building -IFAD 713,000 88 percent of total
expenditure claimed
7 IFAD Incremental operating 1,188,000 88 percent of total
costs expenditure claimed
Total 20,000,000
*No taxes and duties.
ALLOCATION AND WITHDRAWAL OF GRANT PROCEEDS

Number Total Amount Percentage of GEF Financing from
Allocated for GEF the
Financing ($) Grant Account
Item Category
1 Computer Packages 41,000 88 percent of total expenditure claimed
2 Funded Conservation 370,000 100 percent of total expenditure
Forestry claimed*
3 Livelihood Inputs (Block 160,000 100 percent of total expenditure
Grant) claimed*
4 Consulting Services 980,000 88 percent of total expenditure claimed
5 Locally Contracted Services 243,000 88 percent of total expenditure claimed
6 Capacity Building 337,000 88 percent of total expenditure claimed
7 Incremental Operating Costs 369,000 88 percent of total expenditure claimed
Total 2,500,000
* Exclusive of taxes and duties imposed within the territory of the Recipeint.
24
ALLOCATION AND WITHDRAWAL OF GRANT PROCEEDS
CATEGORY ADB FINANCING
Amount Allocated for Percentage and Basis for

Number Item CCF Financing ($) Withdrawal from the Grant
Category Account
1 Protection and Monitoring 326,000 100 percent of total expenditure
claimed*
2 Sustainable Management 526,000 89 percent of total expenditure
claimed
3 Consulting Services 274,000 88 percent of total expenditure
claimed
4 Capacity Building 284,000 88 percent of total expenditure
claimed
Total 1,410,000
* Exclusive of taxes & duties within the territory of the Philippines.
25
C. Detailed Cost Estimates by Financier
Government LGUs
Expenditure Accounts by Financiers ADB % of IFAD % of GEF % of CCF % of Base Duties Total % of Base Duties Total % of BENEs % of Total % of
($ '000) Amount Category Amount Category Amount Category Amount Category Cost & Taxes Amount Category Cost & Taxes Amount Category Amount Category Amount Total
I. Investment Costs
A. Civil Works
ADB-funded Civil Works 25,694 89.2 - - - - - - 3,126 3,126 10.8 - - - - 28,820 18.7
IFAD-funded Civil Works (Bukidnon only) - - 4,812 89.6 - - - - 559 559 10.4 - - - - 5,370 3.5
LGU_Counterpart Civil Works - - - - - - - - 0 0 - 6,738 919 7,656 100.0 - - 7,656 5.0
Subtotal Civil Works 25,694 61.4 4,812 11.5 - - - - 3,685 3,685 8.8 6,738 919 7,656 18.3 - - 41,846 27.1
B. Equipment
Vehicles 495 70.0 - - - - - - 212 212 30.0 - - - - 707 0.5
Vehicles (IFAD) - - 162 70.0 - - - - 69 69 30.0 - - - - 231 0.1
GIS Netw ork-Computer Package 631 88.0 - - - - - - 86 86 12.0 - - - - 717 0.5
IFAD_GIS Netw ork-Computer Package - - 174 88.0 - - - - 24 24 12.0 - - - - 198 0.1
GEF-Funded Computer Packages - - - - 41 88.0 - - 6 6 12.0 - - - - 46 -
Subtotal Equipment 1,126 59.3 336 17.7 41 2.1 - - 397 397 20.9 - - - - 1,900 1.2
C. Satellite Images & Data Acquisition 946 88.0 - - - - - - 129 129 12.0 - - - - 1,074 0.7
D. Conservation Forestry
Protection & Monitoring (Block Grant) 3,537 100.0 - - - - - - - - - - - - - 3,537 2.3
IFAD_Protection & Monitoring (Block Grant) - - 1,942 100.0 - - - - - - - - - - - 1,942 1.3
CCF-Funded Protection & Monitoring (Block Grant) - - - - - - 326 100.0 - - - - - - - 326 0.2
Establishment & Maintenance Costs 33,695 100.0 - - - - - - - - - - - - - 33,695 21.9
IFAD_Establishment & Maintenance Costs - - 3,364 100.0 - - - - - - - - - - - 3,364 2.2
GEF-Funded Conservation Forestry - - - - 370 100.0 - - - - - - - - - 370 0.2
Subtotal Conservation Forestry 37,231 86.1 5,306 12.3 370 0.9 326 0.8 - - - - - - - 43,232 28.0
E. Commercial Forestry
CCF-Funded Sustainable Management - - - - - - 526 89.0 65 65 11.0 - - - - 591 0.4
Establishment & Maintenance Costs 14,475 100.0 - - - - - - - 0 - - - - - 14,475 9.4
Beneficiary Contribution to Costs - - - - - - - - 0 0 - - - 6,203 100.0 6,203 4.0
Subtotal Commercial Forestry 14,475 68.1 - - - - 526 2.5 65 65 0.3 - - 6,203 29.2 21,269 13.8
F. Livelihood Inputs
Livelihood Inputs (except Bukidnon) 2,803 89.2 - - - - - - 340 340 10.8 - - - - 3,143 2.0
Livelihood Inputs (Bukidnon only) - - 6,322 89.2 - - - - 767 767 10.8 - - - - 7,089 4.6
GEF-Funded Livelihood Inputs (Block Grant) - - - - 160 100.0 - - - - - - - - - 160 0.1
Subtotal Livelihood Inputs 2,803 27.0 6,322 60.8 160 1.5 - - 1,107 1,107 10.7 - - - - 10,392 6.7
26
C. Detailed Cost Estimates by Financier (1/2)
Government LGUs
Expenditure Accounts by Financiers ADB % of IFAD % of GEF % of CCF % of Base Duties Total % of Base Duties Total % of BENEs % of Total % of
($ '000) Amount Category Amount Category Amount Category Amount Category Cost & Taxes Amount Category Cost & Taxes Amount Category Amount Category Amount Total
I. Investment Costs
G. Consultants
Consultants - ADB 3,662 88.0 - - - - - - 499 499 12.0 - - - - 4,162 2.7
Consultants - IFAD - - 1,323 88.0 - - - - 180 180 12.0 - - - - 1,503 1.0
GEF-Funded Consultants - - - - 980 88.0 - - 134 134 12.0 - - - - 1,113 0.7
CCF-Funded Consultants - - - - - - 274 88.0 37 37 12.0 - - - - 312 0.2
Subtotal Consultants 3,662 51.7 1,323 18.7 980 13.8 274 3.9 851 851 12.0 - - - - 7,091 4.6
H. Locally Contracted Services
Locally Contracted Services 1,032 88.0 - - - - - - 141 141 12.0 - - - - 1,173 0.8
GEF_Locally Contracted Services - - - - 244 88.0 - - 33 33 12.0 - - - - 277 0.2
Subtotal Locally Contracted Services 1,032 71.2 - - 244 16.8 - - 174 174 12.0 - - - - 1,450 0.9
I. Capacity Building, Studies and Surveys
Capacity Building, Studies and Surveys 2,477 88.0 - - - - - - 338 338 12.0 - - - - 2,815 1.8
Capacity Building, Studies and Surveys_IFAD - - 713 88.0 - - - - 97 97 12.0 - - - - 811 0.5
GEF-Funded Capacity Building, Studies & Surveys - - - - 337 88.0 - - 46 46 12.0 - - - - 383 0.2
CCF-Funded Capacity Building, Studies & Surveys - - - - - - 284 88.0 39 39 12.0 - - - - 323 0.2
Subtotal Capacity Building, Studies and Surveys 2,477 57.2 713 16.5 337 7.8 284 6.6 520 520 12.0 - - - - 4,331 2.8
J. Incremental Operating Costs
1. Incremental Operating Costs 3,403 88.0 - - - - - - 464 464 12.0 - - - - 3,867 2.5
2. IFAD_Incremental Operating Costs - - 1,189 88.0 - - - - 162 162 12.0 - - - - 1,351 0.9
3. GEF_Incremental Operating Costs - - - - 369 88.0 - - 50 50 12.0 - - - - 420 0.3
Subtotal ncremental Operating Costs 3,403 60.4 1,189 21.1 369 6.6 - - 676 676 12.0 - - - - 5,637 3.7
Total Investment Costs 92,849 67.2 20,000 14.5 2,500 1.8 1,410 1.0 - 7,604 7,604 5.5 6,738 919 7,656 5.5 6,202.72 4.5 138,223 89.7
II. Recurrent Costs
A. Recurrent Government Expenditure - - - - - - - - 7,698 3 7,701 94.8 423 \a 423 5.2 - - 8,124 5.3
B. O&M Community Infrastructure - - - - - - - - - - - - - 223.43 \a 100.0 223 0.1
C. O&M LGU Infrastructure - - - - - - - - - - - 411 \a 411 100.0 - - 411 0.3
Total Recurrent Costs - - - - - - - - 7,698 3 7,701 87.9 834 833 9.5 223.43 2.6 8,758 5.7
Total PROJECT COSTS 92,849 63.2 20,000 13.6 2,500 1.7 1,410 1.0 7,698 7,607 15,305 10.4 834 8,490 5.8 6,426.15 4.4 146,982 95.4
Interest During Implementation 6,518 100.0 - - - - - - - - - - - - - 6,518 4.2
Commitment Charges 632 100.0 - - - - - - - - - - - - - 632 0.4
Total Disbursement 100,000 64.9 20,000 13.00 2,500 1.6 1,410 0.90 7,698 7,607 15,305 9.90 7,571 919 8,490 5.5 6,426.15 4.2 154,132 100.00
\a - In kind Contribution
27
D. Detailed Cost Estimates by Outputs/Components
Enhance d
Rive r Capacity
Bas in and Sm allholde r / for Rive r
Expe nditur e Accounts by Com pone nts Wate r s he d Com m e r cial/ Bas in and Pr oje ct
- Base Costs M anage m e nt % of Ins titutional % of Wate r s he d % of M anage m e nt % of % of
($ '000) Plans Cate gor y Inve s tm e nts Cate gor y M anage m e nt Cate gor y Suppor t Cate gor y Total Total
I. Inve s tm e nt Cos ts
A. Civil Wor k s
ADB-f unded Civil Works - 28,306 100.0 - - 28,306 19.3
IFA D-f unded Civil Works (Bukidnon only) - 5,296 100.0 - - 5,296 3.6
LGU_Counterpart Civil Works - 7,513 100.0 - - 7,513 5.1
Subtotal Civil Wor k s - 41,115 100.0 - - 41,115 28.0
B. Equipm e nt
Vehicles - - - - 682 100.0 682 0.5
Vehicles (IFAD) - - - - 222 100.0 222 0.2
GIS Netw ork-Computer Package 517 74.4 - - - 177 25.6 694 0.5
IFA D_GIS Netw ork-Computer Package 123 65.2 - - - 66 34.8 189 0.1
GEF-Funded Computer Packages - - - - - 46 100.0 46 0.0
Subtotal Equipm e nt 640 34.9 - - - 1,194 65.1 1,833 1.2
C. Satellite Images & Data A cquisition 1,046 100.0 - - - - - 1,046 0.7
D. Cons e r vation For e s tr y
Protection & Monitoring (Block Grant) - - 3,449 100.0 - - - 3,449 2.3
IFA D_Protection & Monitoring (Block Grant) - - 1,807 100.0 - - - 1,807 1.2
CCF-Funded Protection & Monitoring (Block Grant) - - 318 100.0 - - - 318 0.2
Establishment & Maintenance Costs - - 33,695 100.0 - - - 33,695 22.9
IFA D_Establishment & Maintenance Costs - - 3,364 100.0 - - - 3,364 2.3
GEF-Funded Conservation Forestry - - 362 100.0 - - - 362 0.2
Subtotal Cons e r vation For e s tr y - - 42,994 100.0 - - - 42,994 29.3
E. Com m e r cial For e s tr y
CCF-Funded Sustainable Management - - 573 100.0 - - - 573 0.4
Establishment & Maintenance Costs - - 14,221 100.0 - - - 14,221 9.7
Benef iciary Contribution to Costs - - 6,094 100.0 - - - 6,094 4.1
Subtotal Com m e r cial For e s tr y - - 20,888 100.0 - - - 20,888 14.2
F. Live lihood Inputs
Livelihood Inputs (except Bukidnon) - - 3,093 100.0 - - - 3,093 2.1
Livelihood Inputs (Bukidnon only) - - 6,644 100.0 - - - 6,644 4.5
GEF-Funded Livelihood Inputs (Block Grant) - - 160 100.0 - - - 160 0.1
Subtotal Live lihood Inputs - - 9,898 100.0 - - - 9,898 6.7
G. Cons ultants
Consultants - A DB 706 18.1 239 6.1 134 3.4 2,829 72.4 3,908 2.7
Consultants - IFAD - - - - 393 27.8 1,023 72.2 1,416 1.0
GEF-Funded Consultants 877 79.4 - - 149 13.5 78 7.1 1,104 0.8
CCF-Funded Consultants 293 100.0 - - - - - - 293 0.2
Subtotal Cons ultants 1,875 27.9 239 3.5 677 10.1 3,931 58.5 6,721 4.6
H. Locally Contr acte d Se r vice s
Locally Contracted Services 1,127 100.0 - - - - - - 1,127 0.8
GEF_Locally Contracted Services 269 100.0 - - - - - - 269 0.2
Subtotal Locally Contr acte d Se r vice s 1,395 100.0 - - - - - - 1,395 0.9
I. Capacity Building, Studie s and Sur ve ys
Capacity Building, Studies and Surveys 1,353 50.1 - - 657 24.3 688 25.5 2,698 1.8
Capacity Building, Studies and Surveys_IFA D 361 46.8 - - 328 42.5 82 10.6 770 0.5
GEF-Funded Capacity Building, Studies & Surveys 150 39.2 - - 233 60.8 - - 383 0.3
CCF-Funded Capacity Building, Studies & Surveys - - 100 31.9 214 68.1 - - 314 0.2
Subtotal Capacity Building, Studie s and Sur ve ys 1,864 44.7 100 2.4 1,431 34.4 770 18.5 4,165 2.8
J. Incr e m e ntal Ope r ating Cos ts
1. Incremental Operating Costs 3,583 95.6 - - - - 163 4.4 3,746 2.5
2. IFAD_Incremental Operating Costs 933 73.2 - - - - 341 26.8 1,274 0.9
3. GEF_Incremental Operating Costs 381 91.0 - - - - 38 9.0 419 0.3
Subtotal ncr e m e ntal Ope r ating Cos ts 4,897 90.0 - - - - 542 10.0 5,439 3.7
Total Inve s tm e nt Cos ts 11,717 8.6 115,233 85.0 2,108 1.6 6,436 4.7 135,494 92.2
II. Re cur r e nt Cos ts
A . Recurrent Government Expenditure - - - - - - 7,605 100.0 7,605 5.2
B. O&M Community Inf rastructure - - 217 100.0 - - - - 217 0.1
C. O&M LGU Inf rastructure - - 400 100.0 - - - - 400 0.3
Total Re cur r e nt Cos ts - - 617 7.5 - - 7,605 92.5 8,222 5.6
Total BASELINE COSTS 11,717 8.2 115,851 80.6 2,108 1.5 14,041 9.8 143,716 97.8
Physical Contingencies 299 20.2 471 31.9 55 3.7 652 44.1 1,477 1.0
Pr ice Continge ncie s 120 6.7 1,405 78.6 25 1.4 238 13.3 1,788 1.2
Total PROJECT COSTS 12,136 8.3 117,727 80.1 2,188 1.5 14,931 10.2 146,982 100.0
28
Enhance d
Rive r Capacity
Bas in and Sm allholde r/ for Rive r
Expe nditure Accounts by Com pone nts Wate rs he d Com m e rcial/ Bas in and Proje ct
- Totals Including Contingencies M anage m e nt % of Ins titutional % of Wate rs he d % of M anage m e nt % of % of
($ '000) Plans Cate gory Inve s tm e nts Cate gory M anage m e nt Cate gory Support Cate gory Total Total
A. Civil Work s
ADB-f unded Civil Works - 28,820 100.0 - - 28,820 19.6
IFAD-f unded Civil Works (Bukidnon only) - 5,370 100.0 - - 5,370 3.7
LGU_Counterpart Civil Works - 7,656 100.0 - - 7,656 5.2
Subtotal Civil Work s - 41,846 100.0 - - 41,846 28.5
B. Equipm e nt
Vehicles - - - - 707 100.0 707 0.5
Vehicles (IFAD) - - - - 231 100.0 231 0.2
GIS Netw ork-Computer Package 532 74.2 - - - 185 25.8 717 0.5
IFAD_GIS Netw ork-Computer Package 130 65.5 - - - 68 34.5 198 0.1
GEF-Funded Computer Packages - - - - - 46 100.0 46 0.0
Subtotal Equipm e nt 662 34.8 - - - 1,238 65.2 1,900 1.3
C. Satellite Images & Data Acquisition 1,074 100.0 - - - - - 1,074 0.7
D. Cons e rvation Fore s try
Protection & Monitoring (Block Grant) - 3,537 100.0 - - - 3,537 2.4
IFAD_Protection & Monitoring (Block Grant) - 1,942 100.0 - - - 1,942 1.3
CCF-Funded Protection & Monitoring (Block Grant) - 326 100.0 - - - 326 0.2
Establishment & Maintenance Costs - 33,695 100.0 - - - 33,695 22.9
IFAD_Establishment & Maintenance Costs - 3,364 100.0 - - - 3,364 2.3
GEF-Funded Conservation Forestry - 370 100.0 - - - 370 0.3
Subtotal Cons e rvation Fore s try - 43,232 100.0 - - - 43,232 29.4
E. Com m e rcial Fore s try -
CCF-Funded Sustainable Management - 591 100.0 - - - 591 0.4
Establishment & Maintenance Costs - 14,475 100.0 - - - 14,475 9.8
Benef iciary Contribution to Costs - 6,203 100.0 - - - 6,203 4.2
Subtotal Com m e rcial Fore s try - 21,269 100.0 - - - 21,269 14.5
F. Live lihood Inputs -
Livelihood Inputs (except Bukidnon) - 3,143 100.0 - - - 3,143 2.1
Livelihood Inputs (Bukidnon only) - 7,089 100.0 - - - 7,089 4.8
GEF-Funded Livelihood Inputs (Block Grant) - 160 100.0 - - - 160 0.1
Subtotal Live lihood Inputs - 10,392 100.0 - - - 10,392 7.1
G. Cons ultants -
Consultants - ADB 751 18.0 253 6.1 142 3.4 3,016 72.5 4,162 2.8
Consultants - IFAD - - - - 412 27.4 1,092 72.6 1,503 1.0
GEF-Funded Consultants 881 79.2 - - 149 13.4 83 7.5 1,113 0.8
CCF-Funded Consultants 312 100.0 - - - - - - 312 0.2
Subtotal Cons ultants 1,944 27.4 253 3.6 703 9.9 4,191 59.1 7,091 4.8
H. Locally Contracte d Se rvice s -
Locally Contracted Services 1,173 100.0 - - - - - - 1,173 0.8
GEF_Locally Contracted Services 277 100.0 - - - - - - 277 0.2
Subtotal Locally Contracte d Se rvice s 1,450 100.0 - - - - - - 1,450 1.0
I. Capacity Building, Studie s and Surve ys -
Capacity Building, Studies and Surveys 1,409 50.1 - - 687 24.4 718 25.5 2,815 1.9
Capacity Building, Studies and Surveys_IFAD 382 47.2 - - 341 42.1 87 10.8 811 0.6
GEF-Funded Capacity Building, Studies & Surveys 150 39.2 - - 233 60.8 - - 383 0.3
CCF-Funded Capacity Building, Studies & Surveys - - 100 31.0 223 69.0 - - 323 0.2
Subtotal Capacity Building, Studie s and Surve ys 1,941 44.8 100 2.3 1,485 34.3 806 18.6 4,331 2.9
J. Incre m e ntal Ope rating Cos ts -
1. Incremental Operating Costs 3,695 95.6 - - - - 172 4.4 3,867 2.6
2. IFAD_Incremental Operating Costs 988 73.1 - - - - 363 26.9 1,351 0.9
3. GEF_Incremental Operating Costs 381 90.9 - - - - 38 9.1 420 0.3
Subtotal ncre m e ntal Ope rating Cos ts 5,064 89.8 - - - - 573 10.2 5,637 3.8
Total Inve s tm e nt Cos ts 12,136 8.8 117,093 84.7 2,188 1.6 6,807 4.9 138,223 94.0
II. Re curre nt Cos ts -
A. Recurrent Government Expenditure - - - - - - 8,124 100.0 8,124 5.5
B. O&M Community Inf rastructure - - 223 100.0 - - - - 223 0.2
C. O&M LGU Inf rastructure - - 411 100.0 - - - - 411 0.3
Total Re curre nt Cos ts - - 634 7.2 - - 8,124 92.8 8,758 6.0
Total PROJECT COSTS 12,136 8.3 117,727 80.1 2,188 1.5 14,931 10.2 146,982 100.0
29
E. Detailed Cost Estimates by Year
Expe nditur e Accounts by Ye ar s Bas e Cos t ($ '000)
-- Bas e Cos ts Total 2013 2014 2015 2016 2017 2018 2019
A. Civil Wor k s
A DB-f unded Civ il Works 28,306 - 1,375 3,628 5,804 8,273 7,032 2,195
IFA D-f unded Civ il Works (Bukidnon only ) 5,296 - 427 1,396 1,560 1,366 547 -
LGU_Counterpart Civ il Works 7,513 - 441 1,033 1,611 2,207 1,712 509
Subtotal Civil Wor k s 41,115 - 2,243 6,057 8,974 11,846 9,290 2,704
B. Equipm e nt
V ehic les 682 - 243 206 234 - - -
V ehic les (IFA D) 222 - 82 66 75 - - -
GIS Netw ork-Computer Pac kage 694 - 232 237 225 - - -
IFA D_GIS Netw ork-Computer Pac kage 189 - 149 11 29 - - -
GEF-Funded Computer Pac kages 46 23 - - 23 - - -
Subtotal Equipm e nt 1,833 23 705 519 586 - - -
C. Satellite Images & Data A c quis ition 1,046 - 716 330 - - - -
D. Cons e r vation For e s tr y
Protec tion & Monitoring (Bloc k Grant) 3,449 - 72 206 516 782 867 1,005
IFA D_Protec tion & Monitoring (Bloc k Grant) 1,807 - 31 90 278 417 464 526
CCF-Funded Protec tion & Monitoring (Bloc k Grant) 318 - 5 13 50 76 84 91
Es tablis hment & Maintenanc e Cos ts 33,695 - 3,140 6,374 11,956 4,936 4,294 2,995
IFA D_Es tablis hment & Maintenanc e Cos ts 3,364 - 336 757 925 505 505 336
GEF-Funded Cons erv ation Fores try 362 - 65 100 121 56 20 -
Subtotal Cons e r vation For e s tr y 42,994 - 3,650 7,539 13,846 6,772 6,234 4,954
E. Com m e r cial For e s tr y
CCF-Funded Sus tainable Management 573 - 84 185 209 94 - -
Es tablis hment & Maintenanc e Cos ts 14,221 - 1,072 2,495 4,838 2,240 2,029 1,546
Benef ic iary Contribution to Cos ts 6,094 - 460 1,069 2,073 960 869 662
Subtotal Com m e r cial For e s tr y 20,888 - 1,616 3,750 7,121 3,295 2,898 2,208
F. Live lihood Inputs
Liv elihood Inputs (ex c ept Bukidnon) 3,093 - 558 618 618 618 618 62
Liv elihood Inputs (Bukidnon only ) 6,644 - 1,199 1,328 1,328 1,328 1,328 133
GEF-Funded Liv elihood Inputs (Bloc k Grant) 160 - 20 50 60 30 - -
Subtotal Live lihood Inputs 9,898 - 1,776 1,997 2,007 1,977 1,947 195
G. Cons ultants
Cons ultants - A DB 3,908 422 785 756 637 514 419 374
Cons ultants - IFA D 1,416 117 234 222 210 210 210 210
GEF-Funded Cons ultants 1,104 224 453 221 83 38 24 62
CCF-Funded Cons ultants 293 - 73 73 - 73 73 -
Subtotal Cons ultants 6,721 763 1,546 1,273 930 836 727 647
H. Locally Contr acte d Se r vice s
Loc ally Contrac ted Serv ic es 1,127 - - 114 214 342 457 -
GEF_Loc ally Contrac ted Serv ic es 269 - 67 67 - 67 67 -
Subtotal Locally Contr acte d Se r vice s 1,395 - 67 181 214 410 524 -
I. Capacity Building, Studie s and Sur ve ys
Capac ity Building, Studies and Surv ey s 2,698 164 705 769 343 370 256 91
Capac ity Building, Studies and Surv ey s _IFA D 770 62 223 232 114 93 46 -
GEF-Funded Capac ity Building, Studies & Surv ey s 383 52 87 90 65 65 24 -
CCF-Funded Capac ity Building, Studies & Surv ey s 314 29 75 72 82 55 - -
Subtotal Capacity Building, Studie s and Sur ve ys 4,165 307 1,091 1,164 603 583 325 91
J. Incr e m e ntal Ope r ating Cos ts
1. Inc remental Operating Cos ts 3,746 86 806 1,463 1,215 59 59 59
2. IFA D_Inc remental Operating Cos ts 1,274 111 372 469 154 56 56 56
3. GEF_Inc remental Operating Cos ts 419 36 143 154 74 - - 13
Subtotal ncr e m e ntal Ope r ating Cos ts 5,439 232 1,321 2,087 1,443 115 115 127
Total Inve s tm e nt Cos ts 135,494 1,325 14,731 24,896 35,724 25,832 22,060 10,926
II. Re cur r e nt Cos ts
A . Rec urrent Gov ernment Ex penditure 7,605 521 1,034 1,149 1,211 1,230 1,230 1,230
B. O&M Community Inf ras truc ture 217 - - - - 43 67 108
C. O&M LGU Inf ras truc ture 400 - - - - 77 135 188
Total Re cur r e nt Cos ts 8,222 521 1,034 1,149 1,211 1,350 1,432 1,526
Total BASELINE COSTS 143,716 1,846 15,765 26,045 36,935 27,182 23,492 12,451
Phy s ic al Contingenc ies 1,477 69 275 300 261 226 213 133
Pr ice Continge ncie s 1,788 2 65 186 357 434 466 277
Total PROJECT COSTS 146,982 1,918 16,105 26,530 37,554 27,842 24,171 12,861
% of Total 100.0 1.3 11.0 18.0 25.6 18.9 16.4 8.8
30
F. Contract and Disbursement S-curve
*Disbursements of ADB and IFAD loans and GEF and CCF grants only.
31
G. Fund Flow Diagram
ADB (loan), IFAD (loan), GEF (grant) CCF (grant)
Government of the Philippines
Department of Finance (Treasury)

Department of Budget and Management (DBM)
$20.6 million $93.31 million ($74.2 ADB loan,

$10 million ADB Loan
($15.8 ADB loan, $4.8 IFAD loan) $15.2 IFAD loan, $2.5 mil GEF grant, $1.41 mil CCF grant)
Department of Environment and Natural

Department of Agriculture (DA) Municipal Development Fund Office (MDFO) Resources (DENR)
(1 Imprest Account) (2 Imprest Accounts) (4 Imprest Accounts - 1 for ADB loan, 1 for
IFAD loan, 1 for GEF grant, 1 for CCF
grant)
Certification of block grant

DENR Regional Office budget and work plan
Participating LGUs covered by
Participating LGUs (DENR-RO) block
CHARM Project in support of not covered by CHARM Project DENR Provincial Office (PENRO) grants to
INREMP sub-projects (Sub-accounts) (Sub-accounts) beneficiary
(Sub-accounts) groups
Land Use Planning; Agro forestry & URB Forest Conservation Livelihood Activities,
Rehabilitation and Improvement of Rural Infrastructure Capacity Building; Commercial Forest and Protection Biodiversity conser-
and Project Plantation and SFM vation, protection
Management and rehabilitation
ADB - Asian Development Bank; CCF - Climate Change Fund; DBM - Department of Budget and Management; DENR - Department of Environment and Natural
Resources; DENR-RO - DENR Regional Office; GEF - Global Environmental Facility; IA - imprest account; IFAD - International Fund for Agricultural Development; and URB-Upper River Basin
Source: Asian Development Bank
32
V. FINANCIAL MANAGEMENT
A. Financial Management Assessment
1. Assessment of Executing Agencies and LGUs

21. DENR has considerable experience in managing and implementing foreign assisted
projects (FAPs). As of November 2011, DENR-FASPO has 35 on-going foreign assisted and
special projects, of which 4 are loans/loans with grants. National Expenditure Program (NEP)
showed actual expenditure level of P 643 million for 2010, P420 million estimated for 2011 and
P552 million programmed for 2012.
22. The financial management system of the DENR and its field offices follow the National
Government Accounting System (NGAS) and auditing rules and regulations in so far as internal
control, accounting and reporting are concerned. Budgeting, accounting and cashiering
functions are segregated and performed by different persons/divisions. The NGAS/ eNGAS has
adequate processing and reporting features to facilitate effective financial management.
23. At the Central Office, the Financial Management Service (FMS) has a Management
Division in addition to the Accounting and Budget Division. Cashiering falls within the
Administrative Services, under the General Services Division. Except for the Internal Audit
Service, the Finance and Administrative Services are replicated in the DENR ROs and PENROs
in lesser scale. The CENROs are under the PENROs and do not have separate financial
support services.
24. Foreign Assisted and Special Projects Office (FASPO) is responsible for planning,
programming, operations and management of foreign assisted and special projects (FASPs) of
the DENR. FASPO coordinates with funding and oversight agencies in programming, monitoring
and evaluation of FASPs. Among its divisions/units are Procurement Unit and Project Accounts
Management Division (PAMD) which are responsible for the procurement requirements and
administration of funds of foreign assisted projects. FASPO (PAMD) is responsible for timely
processing of Project disbursements, preparation and audit of Statement of Expenditures
(SOEs) of FASPs. The FMS assigns counterpart personnel to FASPO to ensure the integration
of FASPs in the Central Office’s budgeting and accounting systems and processes. Contractual
personnel are hired by job order to complement FASPO and FMS regular staff in the
management of Projects and administration of funds.
25. For the ROs, support services include: Planning & Management Division; Administrative
Division and Finance Division among others. While the PENROs, with lesser number of staff,
have Planning, Administrative and Accounting and Finance Services.
26. The DENR has taken efforts to address audits findings particularly those for 2008 and
prior. It has made progress in minimizing its outstanding receivable and payable accounts.
Such effort, which is part of strengthening internal control under Internal Audit Service, should
be continued and applied consistently for foreign assisted projects like INREMP. Review of
2005-20010 Audit reports on the DENR and on the Official Development Assistance (ODA)
showed common findings on unliquidated cash advances/fund transfers and outstanding
accounts payables for more than two (2) years.
27. Department of Agriculture (DA) has been implementing projects funded by ADB and
other funding institutions. It is the Executing Agency of the ADB-funded Cordillera Highland
33
Agricultural Resources Management (CHARM) Project 1 and 2, among a number of foreign-
assisted projects.
28. The Municipal Development Fund Office (MDFO) is the office that manages the special
revolving fund (Municipal Development Fund) that serves as the mechanism to enable LGUs to
avail funds of local and international assistance for the implementation of livelihood
interventions, including rural infrastructure support. MDFO has managed the fund for the last 25
years. However, staffing constraints and volume of LGU submissions have often impeded timely
liquidation and replenishment of cash advances and imprest account turnover.
29. The Local Government Units that may participate in the Project belong to different
income classes and accordingly have different levels of financial resources and capabilities.
However, all of them follow the New Government Accounting for LGUs that requires the basic
segregation of financial management functions. As specified in the Local Government Code
(LGC) of 1991 and government accounting and auditing rules and regulations, cashiering and
treasury functions are performed by the Local Treasurer (appointed by the Secretary of the
Department of Finance) who is also responsible for collecting revenues. The Local Accountant
performs the internal control/audit functions, in addition to the basic accounting functions of
recording, summarizing and reporting of financial transactions. Budgeting activities are under
the Budget Division.
30. The income classification of the LGUs, which is based on the average regular income for
at least four consecutive years, is indicative of LGU capacities in terms of human and financial
resources. The amount the LGU can allocate for salaries and wages as well as the salary
grade-rates that it can use are determined according to its income class. (Personal Services
should not exceed 45% of regular income for the preceding year for 1st to 3rd class and 55% for
4th to 6th class.)
31. Of the 5 cities, 2 cities are classified as 1st class, the three others are 3rd, 4th and 5th
classes. The 81 municipalities are classified as follows: 7 (8.6%) – 1st class; 4 (5%) – 2nd; 15
(18.5%) - 3rd; 30 (37%) – 4th; 19 (23.5%) – 5th; 6 (7.4%) – 6th class. Those classified as 4th to 6th
class compose 67.9% of municipalities/cities in the 4 river basins.7
32. Based on the income classification of the LGUs in the different river basins, it can be
concluded that Lake Lanao River Basin will pose the most challenges not only because of its
low financial and human capacities but also because of its security conditions. Next challenging
area is the Chico River Basin because of its size, location and capacities of many of its LGUs.
Upper Bukidnon River Basin may have the highest probability of success based on the financial
capacities of the provinces (especially Bukidnon Province) and municipalities. Bohol may be the
most manageable because of its relatively small size and average capacities of its municipalities
(most belong to 4th income class).
2. Mitigating Measures
33. To facilitate efficient utilization of loans and grants proceeds, officers and personnel who
will be involved in the administration of the funds will be oriented/trained to the Project’s
organization, implementation arrangements, activities, requirements, particularly to ADB and
local procurement procedures (RA 9184 and its IRR) and the ADB’s disbursement procedures
before the start or at the beginning of Project implementation. DENR will undertake advance
contracting for capacity building, including tailor-made training and refresher packages on
7
As of 2009 status.
34
financial management, disbursement and procurement of subprojects.
34. Full-time staff shall be assigned for project and financial management and contract
administration at DENR- CO, RO and PENRO.
35. Senior level staff from the Budget and Accounting Divisions of the FMS, Administrative
and Internal Audit Services shall be designated to assist NPCO in the administration of the
Project funds. These concerned staff will attend and ensure compliance to procedural,
administrative, documentary and other requirements of their respective divisions/services from
the Project.
36. A staff or two of FASPO/NPCO, RPCO and PPMO staff shall be assigned to manage or
administer contracts and/or MOAs entered into in relation to the implementation of the Project.
Such staff, in coordination with the DENR Legal Office, shall be responsible for ensuring that
contracts/MOAs are legal and in order; and for monitoring that milestones or outputs, goods and
services are delivered on time, in quality and quantity specified in their respective
contracts/MOAs. He/she shall bring to the attention of the Project management and/or officers
concerned of any deviation from what is expected as indicated in the plans or terms and
conditions of the contracts/MOAs.
37. Two to three staff consultants will be assigned at the MDFO to (i) assist in
coordinating/processing and monitoring LGU submissions; and (ii) coordinate with the regional
and provincial Commission’s on Audit (COAs) for timely submission of audited financial
statements. The initial number of 2- 3 staff consultants will be increased to as many as 5 as
LGU participation in the Project increases.
38. Based on reviewed financial information of LGUs, maintenance of rural infrastructure

projects can be financed through their regular revenues (all the LGUs reflect positive net income
ranging from 5%-30%). The Project will also strengthen O&M capacity for rural infrastructure in
selected LGUs.
39. The Project will undertake information dissemination, education and communication
(IEC) among LGUs regarding commercial financing opportunities.
40. Portion of ADB and IFAD loan proceeds for rural infrastructure rehabilitation shall be
used for INREMP Performance Based Grant System (PBGS) for LGUs’ participation in the river
basin management and investment in rural infrastructure. $3.5 million (around 11% of the loan
amount allocated to rural infrastructure) is programmed for the implementation of the INREMP
PBGS. Qualified participating LGUs will be entitled to: (i) 30% of the PBGS capital grant upon
completion of governance conditions (including, establishment of BACs, and State of Local
Governance reports); and (ii) 70% upon confirmation of LGUs accomplishment of performance
indicators specified in the INREMP PBGS guidelines that will be developed with and approved
by the MDFO-PBGS Technical Committee and Steering Committee during the first year of
project implementation and considered acceptable by ADB. Performance indicators will include
those related to land use planning and zoning, forest conservation, protection and rehabilitation,
availment of more than 50% of the MDFO-INREM funded rural infrastructure subproject and
development of supporting ordinances. (See Appendix 3 for the conceptual framework of
INREMP PBGS) By the end of the 4th year of project implementation, the rate of availment of
the PBGS shall be assessed and the allocated funds for PBGS shall be reprogrammed as
deemed appropriate by the DENR, in consultation with MDFO, and acceptable to ADB.
35
3. Eligibility criteria of subprojects for Project financing
41. Subprojects will be located in the four river basins as stated in para 1, and in the
Cordillera triboundary of Chico-Agno-Magat river basins for the GEF biodiversity subprojects. By
the middle of the second year of project implementation, the DENR shall assess its progress in
each of the selected river basins. The DENR may choose to prioritize other river basin(s), in
view of overriding reasons or circumstances, such as peace or security situation or LGU
willingness to participate, that hinder immediate or effective execution of the project in the
selected river basin. Such change should, however, be made prior to undertaking any land use
and capability assessments, ensuring the effective use of project funds is not sacrificed, the
integrity of the watershed ecosystem is preserved, and the INREM Project Impacts and
Outcomes are achieved. Any change in river basin will also need to be endorsed by ADB.
42. Subprojects, to be designed during implementation, will be selected according to the

need for remedial measures to reduce watershed degradation and an assessment of the
magnitude of the socio-economic benefits that can be achieved. Subprojects will need to be
aligned with provincial/national development strategies, particularly their impacts on rural
poverty reduction. The ecological significance of the subprojects will be assessed in terms of
biodiversity and carbon sequestration potential and the potential for reducing soil erosion. Post-
investment financial sustainability of the subprojects will also be carefully examined.
43. Watersheds and LGUs will be prioritized for implementation based on their willingness
and organizational and institutional capacity/preparedness to participate in URB/watershed
management planning, and ability to share in the costs of local infrastructure projects as
required under the NG-LGU cost sharing scheme Policy (LGU share of 20% of the Project costs
per the NEDA recommended policy, Nov 2011 and as provided in the loan agreement). In
addition, institutional criteria that will impact on implementation include (i) LGUs' willingness to
carry out the necessary surveys and safeguards assessments for individual subproject
feasibility studies; (ii) social acceptability of the design and implementation arrangements; (iiii)
willingness of LGUs to abide by ADB and government procurement, disbursement and
anticorruption policies, and to enforce proper financial due diligence and fiduciary management;
(iv) commitment of LGUs to facilitate resolution of any social or environmental problems; (v)
willingness of LGUs and concerned regional and national agencies to support and facilitate
operations and maintenance of facilities supported by the Project.
44. As far as practicable, there shall be no financing overlap of proposed subprojects from
any other ODA source, which implement projects or activities of similar nature as INREM in that
subproject watershed. Subproject packages should also constitute a complete watershed.
45. To facilitate efficient fund utilization, preparatory/approval activities for subproject(s) for
infrastructure and forestry projects shall be allowed to be undertaken by the concerned LGU
even if the pertinent watershed management/investment plans are not yet completed and
officially approved; provided that (i) development of watershed management plan under
INREMP has been initiated; (ii) in an existing physical or URB or watershed management
framework approved by the DENR, the proposed subproject is allowed or not prohibited; (iii)
based on land use assessment (even if preliminary), such subproject(s) is fully justified; and (iv)
the WMC ensures and certifies that the sub-project(s) will be included in the final watershed
management/investment plans. The justifications and certification that the subproject will
eventually become part of the watershed management plan/investment plan will be attested to
by the DENR and Project officer in-charge of the area of the subproject based on the above
stated conditions. The concerned LGU will justify the undertaking of the subproject(s) and
36
commit to participate in the completion of the Watershed Management/Investment Plan and
include the subproject’s requirements (establishment, operations and maintenance) in its own
(LGU’s) annual investment plans and appropriations.
46. Funding/disbursement for subprojects approved in accordance with the preceding

paragraph will comply with all other relevant prescribed processes and procedures.
B. Disbursement
47. The ADB and IFAD loans and GEF & CCF grants proceeds will be disbursed in
accordance with ADB’s Loan Disbursement Handbook (2012, as amended from time to time),8
and detailed arrangements agreed upon between the Government and ADB. For IFAD
disbursements, the EA/IA will submit the WAs to ADB, who will review the WAs and advise
IFAD to make the disbursement to EA/IA’s Imprest Account for IFAD.
48. Pursuant to ADB's Safeguard Policy Statement (2009) (SPS),9 ADB funds may not be
applied to the activities described on the ADB Prohibited Investment Activities List set forth at
Appendix 5 of the SPS. All financial institutions will ensure that their investments are in
compliance with applicable national laws and regulations and will apply the prohibited
investment activities list (Appendix 5 - SPS) to subprojects financed by ADB.
49. Loan proceeds for the Sub Component on Rehabilitation and Improvement of Rural
Infrastructures (total amount of $30.6 million, $25.8 from ADB and $4.8 from IFAD) will be
released to the LGUs through the MDFO ($20.6 million, $15.8 from ADB and $4.8 from IFAD)
and through DA ($10 million from ADB for the CHARM 2 areas within Chico River Basin). (See
Section IV.G. INREM Project Funds Flow Diagram) The LGUs will access funds for rural
infrastructure projects specifically included in the indicative URB Management Zoning or in the
LGU’s approved Watershed Management Plan through the MDFO or DA, or as qualified for
priority implementation by the NPCO and PPMO at the beginning of implementation when
management zoning/plans are still being prepared. The LGUs may be allowed to use force
account up to a maximum amount of $100,000 per sub project in undertaking infrastructure
projects subject to conditions set in para 105. The use of force account requires the borrower to
submit certifications on the project’s (i) physical and (ii) financial progress. The release of loan
disbursements will be based on the rate of progress of the works as certified by the project
engineer or authorized representative of the EA/IA.
50. Infrastructure projects will be funded following the “NG-LGU Cost-Sharing Scheme”
provided in the Loan Agreement. The project may fund as much as 80% of the subproject cost
as National Government grant to the LGU, with the LGU, providing a maximum of 20% of the
project cost, based on its income class.
51. If an LGU lacks the funds to fully finance its share, it may source its requirements from
any other source including the MDFO. Lending operation, if required by any LGU, will be most
efficiently effected by MDFO because the grant funding, which covers about 80 percent of
project cost, will be coursed through MDFO. Following a process of financial capacity
evaluation and approval by the MDFO Policy Governing Board (PGB)10, the financing
agreement will be embodied in a sub loan agreement between the MDFO and the LGUs
8
Available at: http://www.adb.org/Documents/Handbooks/Loan_Disbursement/loan-disbursement-final.pdf
9
Available at: http://www.adb.org/Documents/Policies/Safeguards/Safeguard-Policy-Statement-June2009.pdf
10
The scope of this financial evaluation and a delineation of responsibilities will be agreed upon in a memorandum of
agreement (MOA) to be completed between DENR and DOF.
37
concerned. The subloan agreement will contain the terms and conditions for the subloan to the
LGU including the maturity period and interest rate, and provision of internal revenue allotment if
the LGU does not pay promptly. The PGB, which determines on lending terms on an annual
basis, will be requested to make these terms as competitive as possible.
52. Prior to approval of LGU projects to be funded from the loan (ADB and IFAD) proceeds,
specific cost items will be identified and segregated for funding from specific sources of funds,
that is, (i) from the NG-Grant, which will be funded from the ADB and IFAD loan proceeds; (ii)
from the loan portion- share of the LGU, if any, which may come from other sources such as
other financial institutions, including the MDFO; and (iii) from the equity portion of the LGU
share, which comes from the LGU’s own fund and in the form of cash contribution. The
conclusion of an implementation agreement between the LGU and the MDFO/DA on the cost-
sharing responsibilities will be a precondition of support to any subproject.
53. The LGUs will access the Performance-Based Grants (PBGs) through the MDFO.
Details regarding the mechanics of implementing the PBGs will be developed for INREM to
provide incentives for improvement in the area of environment and natural resources
management by the LGUs. This will be presented for approval by the PBGS Technical and
Steering Committee and acceptable to ADB during the first year of implementation.
54. Imprest Account (IA). To expedite project implementation through the timely release of
funds for eligible expenditures, an imprest fund procedure will also be applied. Under this
procedure, Bureau of Treasury will channel the loan and grant proceeds directly to seven (7)
imprest accounts11 (IAs) which will be established by the Executing and Implementing Agencies
at a bank acceptable to the ADB immediately after loan effectiveness for exclusive use of ADB
and IFAD loan proceeds and the GEF and CCF grant funds. These IAs will include: one (1) for
DA (for ADB loan), two (2) for MDFO (one for ADB loan and one for IFAD loan), and four (4) for
the DENR (one for ADB loan, one for IFAD loan, one for GEF grant, and one for CCF grant). In
this same bank, peso current accounts will also be opened by the EA and Implementing
Agencies for actual disbursements. These pesos current accounts will be funded by dollar
accounts with the GOP bearing the gain or loss on foreign exchange. The IAs will be used to
facilitate day-to-day expenditures of the INREM Project to ensure speedy implementation,
following detailed arrangements and actions agreed upon by the Government and ADB in
accordance with ADB’s Loan Disbursement Handbook (2012) as amended from time to time.
55. The DA's IA will be administered by the DA to finance rehabilitation and improvement of
rural infrastructure in the Chico River Basin areas covered by the CHARM Project. The
maximum ceiling for this IA will be 6 months of estimated expenditures to be funded from the IA,
or $1.0 million (10% of $10.0 million), whichever is lower.
56. The MDFO's IAs will be administered by the MDFO to finance rehabilitation and
improvement of rural infrastructure in areas not being covered by the CHARM Project. The
maximum ceiling for the IAs will be 6 months of estimated expenditures to be funded from the
IAs, or $1.58 million (10% of $15.8 million) for ADB loan, and $0.48 million (10% of $4.8 million)
for IFAD loan, whichever is lower.
57. The four DENR's IAs (one for ADB loan, one for IFAD loan, one for GEF grant, and one
for CCF grant) will be administered by the DENR to finance agro forestry and commercial forest
plantation, URB forest conservation and protection, sustainable forest management, livelihood
activities, land use planning, capacity building, and project management. The maximum ceiling
11
Bank Charges will be financed from the ADB and ADB administered funds.
38
for the ADB loan fund IA will be 6 months of estimated expenditures to be funded from the IA, or
$7.4 million (10% of $74 million) and for the IFAD loan fund IA, the ceiling will be 6 months of
estimated expenditures to be funded from the IA or $1.52 million (10% of $15.2 million),
whichever is lower. The maximum ceiling of the IA for the GEF grant will be 6 months of
estimated expenditures to be funded from the IA, or $0.25 million (10% of $2.5 million), whereas
the maximum ceiling of the IA for the CCF grant will be 6 months of estimated expenditures to
be funded from the IA, or $0.14 million (10% of $1.41 million), whichever is lower.
58. Each participating LGU, DENR regional office (DENR-RO), and DENR provincial office
(PENRO) will establish a subaccount for each funding source in a bank acceptable to the
government and ADB for project expenditures. Loan and grant proceeds will be made available
from the IAs to the subaccounts subject to the work plans approved by NPCO/MDFO/DA to
finance locally purchased equipment and materials, contractual services, and small-scale
training activities at geographically dispersed locations in the project provinces. These
subaccounts will be managed by the recipient-participating LGUs, DENR-ROs, and PENROs.
The liquidation and replenishment of funds in the subaccounts will be based on the submission
of full supporting documentation of project expenditures to DA/MDFO/DENR-CO, who will be
responsible for consolidating the liquidation reports and submitting the SOEs to the ADB for
their respective IAs as well as for the safekeeping of the supporting documents.
59. The request for initial advance to the imprest account should be accompanied by an
Estimate of Expenditure Sheet12 setting out the estimated expenditures for the first six (6)
months of project implementation, and submission of evidence satisfactory to ADB that the
imprest account has been duly opened. For every liquidation and replenishment request of the
imprest account, the borrower will furnish to ADB (a) Statement of Account (Bank Statement)
where the imprest account is maintained, and (b) the Imprest Account Reconciliation Statement
(IARS) reconciling the above mentioned bank statement against the EA’s and Implementing
Agencies’ records.13
60. The ADB SOE procedures will be used for reimbursement and liquidation and
replenishment of the imprest accounts. Each individual payment reimbursed or liquidated using
the SOE procedures will not exceed $100,000 equivalent, otherwise full supporting
documentation for those individual payments in excess of $100,000 should be submitted to
ADB.
61. Payments can be made from the imprest accounts for all eligible goods and services
and will include payments to contractors and suppliers of materials. For expenditures exceeding
US$100,000 equivalent per transaction, direct payment method shall be used whenever
possible. SOE records should be maintained and made readily available for review by ADB's
disbursement and review mission or upon ADB's request for submission of supporting
documents on a sampling basis, and for independent audit.14
62. Funds shall be transferred to offices within the DENR through Sub-allotment Advice,
which shall be the basis of the concerned office to incur obligation. Funding checks/bank
transfers will be issued by the DENR CO, upon recommendation by NPCO to transfer cash from
the EA’s IA to the participating Regional/Provincial Offices’ subaccounts.
12
Available in Appendix 10B of the Loan Disbursement Handbook.
13
Follow the format provided in Appendix 10C of the Loan Disbursement Handbook.
14
Checklist for SOE procedures and formats are available at:
http://www.adb.org/documents/handbooks/loan_disbursement/chap-09.pdf
39
63. DENR will transfer fund to other government agencies or LGUs for undertaking specific
activities of the project (other than rehabilitation and improvement of local infrastructures), by
executing Memorandum of Agreement with the concerned party, specifying the terms and
conditions of the release of funds and the corresponding duties and responsibilities. (See
Appendix 4. Fund Administration)
64. Community-based protection and monitoring will be implemented through the voluntary
undertaking and commitment of participating communities who will be given block grants. Block
grants, amounting to not more than $20,000 each, are provided in tranches based on work and
financial plan and performance indicators agreed upon with the beneficiary group. Indicators
must relate to physical conditions of the protected forest rather than to labor or materials inputs.
For IPOs identified for the implementation of “PES” or payment for environmental services, the
block grants will be used for the establishment of revolving fund which will eventually receive
‘PES’ revenues for sustainably managing their area in the watershed. The DENR-CENROs will
validate and certify the completion/performance of the specified indicator(s) for each beneficiary
group and submit to the DENR- NPCO for approval. Funds, amount per tranche, will be
transferred from appropriate imprest accounts to the beneficiaries’ bank accounts, as a block
grant. Liquidation of the amounts provided as block grants will be done against the
Memorandum of Agreement between the EA/IA and the IPO/PO on the grant and the related
bank statement of the respective PO/IPO. Eligibility criteria for block grant and monitoring
mechanism are presented in Appendix 5.
65. Before the submission of the first withdrawal application, the borrower should submit to
ADB sufficient evidence of the authority of the person(s) who will sign the withdrawal
applications on behalf of the borrower, together with the authenticated specimen signatures of
each authorized person. The minimum value per withdrawal application is US$100,000, unless
otherwise approved by ADB. The NPCO/Implementing Agencies are to consolidate claims to
meet this limit for reimbursement and imprest account claims. Withdrawal applications and
supporting documents will demonstrate, among other things that the goods, and/or services
were produced in or from ADB members, and are eligible for ADB financing.
C. Accounting
66. The DENR, DA and MDFO will maintain separate project accounts and records by
funding source for all expenditures incurred on the Project. Project accounts will follow National
Government Accounting System (NGAS) principles and practices.15
67. The participating LGUs will likewise follow the NGAS for accounting Project funds that
will be transferred to them from DENR, DA or MDFO. Project funds that may be transferred by
the DENR to the LGU through Memorandum of Agreement for undertaking specific activities
shall be treated as Trust Fund by the LGU. Funds transferred through the DA/MDFO for rural
infrastructure requiring counterpart funding or contribution from the LGU shall not be recorded
as Trust Fund but as Special Account in the General Fund of the LGU. Separate bank account
for each funding source will be maintained for the Trust Fund, MDFO Special Account and LGU
contribution or counterpart funds.
68. The LGU asset (including bank accounts), liability and equity accounts for the Trust fund,
MDFO Special Account and counterpart fund must be closed upon project completion, with all
the balances transferred to the appropriate accounts in General Fund of the LGU. (See
15
National Government Accounting System as updated through COA issuances.
40
Appendix 6 for pertinent excerpts of NGAS for LGUs. Trust Fund and Special Funds for
Accounting for the Project Funds)
D. Auditing
69. The Executing Agency will cause the detailed consolidated financial statements to be
audited in accordance with COA's audit regulations by an auditor acceptable to ADB. The
audited financial statements will be submitted in the English language to ADB within 9 months of
the end of the fiscal year by the executing agency in view of the decentralized nature of the
project and difficulty of LGUs in submission of documents. The annual audited financial
statements will include a separate audit opinion on the use of the imprest accounts and the SOE
procedures. The Government and the Executing Agency have been made aware of ADB’s
policy on delayed submission, and the requirements for satisfactory and acceptable quality of
the audited financial statements. ADB reserves the right to verify the project's financial
statements to confirm that the share of ADB’s financing is used in accordance with ADB’s
policies and procedures.
41
VI. PROCUREMENT AND CONSULTING SERVICES
A. Assessment of Procurement Capacity
70. DENR adopted a Customized Manuals of Procurement, which was approved by the
Government Procurement Policy Board (GPPB) in its Resolution No. 31-2007. The Manual is
consistent with the local procurement procedures and with ADB Procurement Guidelines. In
adopting the Customized Manuals of Procurement, DENR has maintained in its FASPO, a
separate Bids and Awards Committee (BAC) and institutionalized the ad-hoc BAC Secretariat
into a Procurement Unit within FASPO.
71. Improved procurement capacity of the DENR is apparent in the improved disbursement
rate, a measure of financial performance used in the ODA Portfolio Review together with
availment rate. NEDA’s ODA Portfolio Review for 2009 to 2011 used a 70% benchmark on the
availment and disbursement to measure annual and historical financial performance of the IA16.
For 2009, DENR was not able to achieve the 70% benchmark for disbursement; for 2010, its
disbursement rate improved rising above 70%. However, for 2011, disbursement rate again fell
below the 70% benchmark, mainly due to Integrated Coastal Resources Management Project
(ICRMP). Its availment rate was below the benchmark for the 3 years under review.
72. For 2010 & 11, prolonged procurement was experienced by 2 of 4 DENR projects, (1 for
each year) evaluated for ODA Portfolio Review; ICRMP in 2010 and National Program Support
for Environment and Natural Resources Management Program (NPSENRMP) in 2011,
Prolonged procurement in 2011 was attributed to “poor bid evaluation practices of some
Regional Offices” of cadastral bidding documents. It should be noted that this procurement
issue concerns Regional offices rather than the CO, highlighting the improved CO capacities
and the need for further enhancement at the Regional Offices. Procurement is prolonged as
compared to the timeline prescribed in the guidelines of Development Partner or RA 9184
(GPPB).
73. DENR also approved in March 2010 and is piloting the CDD Procurement Manual for
Community-Based Watershed/Ecosystem Management. The Manual is in the process of GPPB
approval.
74. To prevent delays in project implementation due to procurement, advance contracting

will be undertaken under this project.
75. Advisory and consultancy services on procurement will be made available before and
during project implementation by the ADB.
B. Advance Contracting
76. All advance contracting will be undertaken in conformity with ADB’s Procurement
Guidelines (April 2010, as amended from time to time) (ADB’s Procurement Guidelines)17 and
16
The indicative performance benchmark is based on historical disbursement and availment fogures, where
availment and disbursement rates averages for the last 10 years do not fall below 70 percent. (From 2011 ODA
Portfolio Review)
17
Available at: http://www.adb.org/Documents/Guidelines/Procurement/Guidelines-Procurement.pdf; http://csrn.adb.
org; http://csrn.adb.org:8080/csrn/login.jsp; http://wwwadb.org/Consulting/loan-rfp.asp; http://adb.org/Consulting/all-
42
ADB’s Guidelines on the Use of Consultants (2010, as amended from time to time) (ADB’s
Guidelines on the Use of Consultants).18 The issuance of invitations to bid under advance
contracting will be subject to ADB approval. The Executing and Implementing Agencies have
been advised that approval of advance contracting does not commit ADB to finance the Project.
77. The Project will undertake advance contracting for Project related eligible expenditures.
Such expenditures must be related to enabling the Executing and Implementing Agencies/Units
to immediately operate and undertake Project activities upon effectiveness of the loan. These
expenditures include procurement of office facilities, equipment, satellite data, communication,
consultancy and other services necessary for the NPCO and participating DENR Field Offices to
readily operate at the start of the Project period and reduce lag time during implementation.
Details of these advance procurement must be in accordance with pertinent ADB Guidelines.
C. Procurement of Goods, Works and Consulting Services
78. All procurement of goods and works will be undertaken in accordance with ADB’s
Procurement Guidelines.
79. Procurement of civil works and goods will be carried out in accordance with ADB's
Procurement Guidelines (2010, as amended from time to time). Since the amounts of the
contracts are not large enough to attract foreign suppliers and contractors, majority of the
contracts will be tendered using National competitive bidding (NCB). Smaller contracts (below
$100,000) will be procured using Shopping or Force Account. Purchases of small or off-the shelf
items for amount less than US$500.00 equivalent will be undertaken by the NPCO without
consultation with Executing Agency and ADB but will be included in its monthly financial report.
80. Before the start of any procurement ADB and the GOP will review the public
procurement law and IRR to ensure consistency with ADB’s Procurement Guidelines and
updated National Competitive Bidding Annex.
81. An 18-month procurement plan indicating threshold and review procedures, goods,
works, and consulting service contract packages and national competitive bidding guidelines is
in Section D.
82. Relevant excerpts from the ADB’s Guidelines for Procurement are summarized in
Appendix 7. A checklist for procurement of goods and services is provided in Appendix 8.
83. All consultants including nongovernment organizations (NGOs) will be recruited

according to ADB’s Guidelines on the Use of Consultants (April 2010, as amended from time to
time).19 Procurement of consulting packages shall be advertised through the Consulting
Services Recruitment Notice (CSRN) at www.adb.org and in the Philippine Government
Electronic Procurement System (PhilGEPS). The terms of reference for all consulting services
are detailed in Section VI.E.
methods-loan.asp; http://www.adb.org/Consulting/ICS-Contract-Loan.pdf; http://www.adb.org/Documents/Manuals/

Consulting-Services-Operations-Manual/CSOM.pdf; http://www.adb.org/Consulting/toolkit-template.asp
18
Available at: http://www.adb.org/Documents/Guidelines/Consulting/Guidelines-Consultants.pdf
19
Checklists for actions required to contract consultants by method available in e-Handbook on Project
Implementation at: http://www.adb.org/documents/handbooks/project-implementation/
43
D. Procurement Plan
Basic Data
Project Name: PHI: Integrated Natural Resources and Environmental Management Project
Executing Agency:
Country: PHI Department of Environment and Natural Resources
Loan and Grant Amounts: $100 million loan from ADB
Ordinary Capital Resources, $20 million loan from IFAD,
$2.5 million grant from GEF and $1.41 million grant from
CCF Loan (Grant) Number: XXXX
Date of First Procurement Plan: 21 June 2012 Date of this Procurement Plan: 21 June 2012
1. Process Thresholds, Review and 18-Month Procurement Plan
a. Project Procurement Thresholds
84. Except as the Asian Development Bank (ADB) may otherwise agree, the following
process thresholds shall apply to procurement of goods and works:
Procurement of Goods and Works

Method Threshold
International Competitive Bidding (ICB) for Works Above $5,000,000
International Competitive Bidding (ICB) for Goods Above $1,000,000
National Competitive Bidding (NCB) for Works Beneath that stated for ICB, Works
National Competitive Bidding for Goods Beneath that stated for ICB, Goods
Shopping for Works Below $100,000
Shopping for Goods Below $100,000
Force Account for Works Below $100,000
Community Participation Works Below $50,000
b. ADB Prior or Post Review

85. Except as ADB may otherwise agree, the following prior or post review requirements
apply to the various procurement and consultant recruitment methods used for the project.
Procurement Method Prior or Post Comments

Procurement of Goods and Works
NCB Works Prior The first NCB procurement for Goods and
NCB Goods Prior the first NCB procurement for Works shall
be submitted for ADB prior review and
approval; subsequent NCB procurements
shall be subject to post reviews
Shopping for Works Post
Shopping for Goods Post
Force Account Prior Prior review of first document
Community Participation Works Post Prior review of first document
Recruitment of Consulting Firms
Quality- and Cost-Based Selection (QCBS) Prior Quality-cost weighting ratio
of 80:20
Consultants Qualifications Selection (CQS) Post
Recruitment of Individual Consultants
Individual Consultants Prior Applied in accordance with the
Guidelines on the Use of Consultants
(2010, as amended from time to time)
44
c. Goods and Works Contracts Estimated to Cost More Than $1 Million
86. The following table lists goods and works contracts for which procurement activity is
either ongoing or expected to commence within the next 18 months.
Contract Procurem
Value ent Prequalification Advertisement
General Description ('$000) Method of Bidders (y/n) Date (quarter/year) Comments
None
d. Consulting Services Contracts Estimated to Cost More Than

$100,000
87. The following table lists consulting services contracts for which procurement activity is
either ongoing or expected to commence within the next 18 months.
Contract Advertisement International or

Value Recruitment Date National
General Description ('$000) Method (quarter/year) Assignment Comments
877.0 QCBS (80:20) QIV/2012/ International and GEF Funded
Consulting services for - STP QI 2013 National
Watershed Management,
Biodiversity and
Investment Plans
Consulting Services: 1,416.1 Individual QIV 2012/Q1 2013 National Advance
Project Management contracting to be
Office – assisting done by NPCO;
Professionals and IFAD Funded
Technical Extension Staff
Consulting services for 4,473 QCBS (80:20) Q1/2013 International/ ADB Funded
Project Management and FTP National
implementation
Carbon Baseline Survey 268.8 QCBS (80:20) QII/2013 International and Advance
– STP National contracting; to be
done by NPCO
QCBS - quality and cost based selection; FTP - full technical proposal; STP - simplified technical proposal
e. Goods and Works Contracts Estimated to Cost Less than $1 Million

and Consulting Services Contracts Less than $100,000
88. The following table groups smaller-value goods, works and consulting services contracts
for which procurement activity is either ongoing or expected to commence within the next
18 months.
Value of
Contracts Procurement /
General ('$000, Recruitment
Description cumulative) Number of Contracts Method1 Comments
Satellite Images & Data 716.0 2 NCB

Acquisition
GIS Data Base 476.0 5 NCB
Installation
45
Value of
Contracts Procurement /
General ('$000, Recruitment
Description cumulative) Number of Contracts Method1 Comments
4-wheel double cab 127.7 4 Shopping
pickup, for regional
offices
Motorcycles for Municipal 196.6 4 Shopping
Offices
Computers/printers for 68.9 4 Shopping
provinces
Computers/printers for 31.5 4 Shopping
Municipal Government
Units
Equipment for Project 23 1 Shopping
Performance, Monitoring
& Evaluation (computer,
software and peripherals)
2. Indicative List of Packages Required Under the Project
89. The following table provides an indicative list of all procurement (goods, works and
consulting services) over the life of the project. Contracts financed by the Borrower and others
should also be indicated, with an appropriate notation in the comments section.
Indicative List of Packages Required Under the Project
Estimated Value
General Description ($'000, Estimated No. of Contracts Procurement methods Comments
cumulative)
Component 1: Land Use Assessment & Planning
1.1 Sattelite Images & Data Acquisition (4 packages) 1,046.0 4 NCB
1.2 Carbon Baseline Survey 268.8 1 QCBS (80:20) - STP
1.3
GIS Data Base Installation
- URB GDSS Central Operations Center
639.5 5 NCB
- URB GDSS Nodes
1.4 Consulting services for Watershed Management, Biodiversity and 877.0 2 QCBS (80:20) - STP
Investment Plans
Component 2: URB Field Investments
2.1 Civil Works (rural roads, small-scale irrigation, water supply,
21,629.2 Multiple NCB With 20% LGU
trading centers, and others to be determined at the detailed
financing
subproject feasibility phase) 16,000.0 Multiple FA
2.2 Conservation Forestry 42,630.9 Multiple CPW
Exclusive of
2.3 Commercial Forestry 16,562.7 Multiple CPW beneficiary
contribtion in kind
2.4 Conservation Farming 8,785.5 Multiple CQS (national)
Component 3: Capacity Building
3.1 Land use assessment and URB/WS Management Planning 937.5 5 CQS (national)
3.2 Institutional and policy support for LGUs 465.7 4 CQS (national)
3.3 REDD 140.8 1 CQS (national)
3.4 Watershed Management 454.8 3 CQS (national)
Component 4: Project Management & Support Services
4.1 4-wheel double cab pickup, for regional offices 127.7 4 Shopping
4.2 Computers/printers for provinces 68.9 4 Shopping
4.3 Motorcycles for Municipal Offices 776.9 4 Shopping
4.4 Computers/printers for Municipal Government Units 174.3 4 Shopping
4.5 Consulting Services: Technical Extension Implementation (Staff 393.1 12 Individual (National)
4.6 Consulting services for Project Management and Implementation 4,473.6 4 QCBS (80:20) - FTP
4.7 Consulting Services: Project Assisting Professionals 1,023.0 7 Individual (National)
4.8 Consulting service for Project Performance, Monitoring & 116.1 3 CQS (national)
4.9 Equipment for Project Performance, Monitoring & Evaluation
(computer, software and peripherals) 46.0 2 Shopping
Total packages 117,638.0

NCB - national competitive bidding; QCBS - quality and cost based selection; CQS - Consultants' qualification selection
FTP - full technical proposal; STP - simplified technical proposal; FA Force Account
CPW - Community participation
46
3. National Competitive Bidding
a. General
90. The procedures to be followed for national competitive bidding shall be those provisions
referring to open competitive bidding procedures set forth in Republic Act 9184 the Republic of
the Philippines, effective 26 January 2003, and its Revised Implementing Rules and
Regulations, effective 2 September 2009, with the clarifications and modifications described in
the following paragraphs required for compliance with the provisions of the Procurement
Guidelines, Section I and paras. 3.3 and 3.4 of Section III.
b. Eligibility
(i) Eligibility screening shall not be applied. However, bids that do not contain any of
the following documents will not pass the documentary compliance check: (i)
evidence of the required financial, technical or production capability; (ii) audited
financial statements; (iii) credit line, or cash deposit certificate; (iv) bid security;
and (v) authority of the bid signatory.
(ii) National sanction lists may be applied only with prior approval of ADB
c. Advertising
91. Bidding of NCB contracts estimated at $500,000 or more for goods and related services
or $1,000,000 or more for civil works shall be advertised concurrently with the general
procurement notices on ADB’s website.
d. Price of Bidding Document

92. The price of bidding documents should be nominal, covering only reproduction and
mailing/courier costs.
e. Price Ceiling
93. The approved budget for the contract (ABC) may be published, but it shall not be stated
or implied that bid prices may not exceed the ABC, or that bid evaluation will in any way take
into account the ABC. The ABC, budgetary allocation, ceiling price, or similar estimates of
contract value may not be used to reject bids without prior concurrence of ADB.
f. Preferences
(i) No preference of any kind shall be given to domestic bidders or for domestically
manufactured goods.
(ii) Suppliers and contractors shall not be required to purchase local goods or
supplies or materials.
(iii) Foreign suppliers and contractors from ADB member countries shall be allowed to
participate, if interested, without first being required to associate with, or enter into
joint venture with, local firms.
(iv) Foreign suppliers and contractors from ADB member countries shall be allowed to
bid, without registration, licensing, and other government authorizations, leaving
compliance with these requirements for after award and before signing of
47
contract.
g. Experience Qualification
94. For works contract, the experience qualification requirement shall be: (i) at least one
previous contract at 80% of the estimated cost of the contract being procured; and (ii) an annual
turnover from all works averaged over the last three years equal to 100% of the estimated cost of
the contract being procured.
h. Anticorruption Provisions in Bidding Documents

95. Anticorruption provisions in the Instructions to Bidders section of ADB standard bidding
documents (SBDs) shall be incorporated into NCB bidding documents including those under
“Corrupt Practices” and “Eligible Bidders” clauses of the SBDs.
i. Bidding Period
96. Bidders shall be given a minimum period to prepare and submit bids of 4 weeks,
counted from the date of invitation to bid or the date of availability of bidding documents,
whichever is later.
j. Single Bid Submission

97. When a lone bidder obtains a bidding document and submits a bid at the deadline for bid
submission under a post qualification bidding, bid opening and evaluation shall not proceed but
it shall be considered a failure of bidding. Before taking any alternative procurement action, a
proper assessment of the cause of lack of participation shall be made and ADB prior approval
shall be sought for any proposed subsequent action.
k. Shopping Method
98. If included as a procurement method in the Procurement Plan, “Shopping” shall be
undertaken in accordance with the ADB Procurement Guidelines (April 2010, as amended
from time to time).
l. Contract Amendment
99. In case of contracts for prior review, modifications exceeding 15% of contract amount
and material changes in the conditions during implementation require prior ADB concurrence.
m. Member Country Restrictions

100. Bidders must be nationals of member countries of ADB, and offered goods must be
produced in member countries of ADB.
101. Most, if not all, rural infrastructure projects that will be funded from loan proceeds are
relatively small and unlikely to attract international contractors.
102. In accordance to ADB procurement guidelines, contracts costing less than

US$5,000,000 equivalent will be awarded through National Competitive Bidding (NCB) and will
be guided by R.A. 9184 otherwise known as the “Government Procurement Reform Act” as long
as the provisions are consistent with ADB Procurement Guidelines for civil works.
48
103. LGUs signifying intention to implement by “Force Account” will be evaluated by the
NPCO, through the DENR Regional/Provincial Offices or the PPMO for technical and equipment
capability and will secure authorization from this office. Procurement of “Goods” under “Force
Account” works will also be guided by R.A. 9184 consistent with ADB Procurement Guidelines
for goods.
104. Procurement of “Civil Works” and “Goods” will be the main responsibility of the municipal
LGU through its duly constituted Bids and Awards Committee (BAC) in accordance with the
provisions of R.A. 9184.
105. In support to the national government’s employment generation program and in

consideration that majority of the sub-components are small scale. Labor Based–Equipment
Supported (LB/ES) methods of construction shall be adopted whenever possible. This should
also allow communities to be engaged as “pakyaw” labor contractors to ensure full involvement
as well as help in the process of people empowerment and in building up a sense of ownership
and responsibility.
106. Regardless of whether implementation is carried out by contract or by LGU “Force

Account,” pursuant to R.A. 5635 dated December 12, 1988, at least fifty (50) percent of the
unskilled and thirty (30) percent of the skilled labor requirement shall be taken from the
beneficiary community. Hence, beneficiaries within the community shall be the first priority in the
selection of labor force. The women shall be given equal opportunity to join the labor force.
107. In involving community participation in undertaking Project activities, particularly in

forestry protections, conservation, rehabilitation and reforestation, the NPCO shall propose
procedures, specifications and contract packaging for the Project that are acceptable to ADB for
approval by the Government Procurement Policy Board (GPPB) or apply the recently adopted
DENR’s CDD Procurement Manual for Community-Based Watershed/Ecosystem Management.
Local community participation in service delivery is allowed under Sec 53.12 the IRR of RA
9184 if it will ensure project sustainability and meet social objectives, with the procedures
subject to approval by the GPPB Community participation is also allowed under ADB
Procurement Guidelines, para 3.17 and will be followed.
108. Where community, PO/IPO, private entity, NGO, or local government participation is in
the nature of partner-implementer, the DENR can, directly or indirectly through its participating
Regional or Provincial Offices, execute partnership agreements with the particular community or
LGU for specific undertaking in their area with terms and conditions acceptable to ADB.
109. DENR/NPCO and Project Implementing Agencies/Units will monitor and inspect all
contractors’ activities related to fund withdrawals and financial settlements. The NPCO will
further ensure that all contracts financed by the Loan proceeds include provisions specifying the
ADB’s right to audit and examine the records and accounts of contractors, suppliers,
consultants and other service providers as they relate to the Project.
E. Consultant's Terms of Reference
110. A total of 778 person months (PM) of international (30 PM) national (748 PM)
consultants (breakdown presented below) would be assigned to various coordination offices at
the national and at the provincial level to provide assistance in implementation of the Project
with concurrent support in capacity building including preparation of INREM Indicative
Development Plans for each River Basin, Watershed Management Plans for each watershed
49
and associated subproject level feasibility studies, including various environmental and social
safeguards documents to be approved for financing under the Project. In addition, 1,464
person-months of contractual personnel, composed 492 Assisting Professionals (7) to staff the
NPCO and 936 person-months of (12) field staff to assist in the implementation of Technical
Extension will be contracted.
SUMMARY OF CONSULTING SERVICES Unit 2013 2014 2015 2016 2017 2018 2019 Total
Component 1. River Basin and Watershed Management Plans
Internatioinal Consultants
Biodiversity Specialist - Int'l Consultant p-m 1.0 2.0 - - - - - 3
Climate Change and REDD, Intl p-m - 2.0 2.0 - 2.0 2.0 - 8
Carbon Stock Assessment Specialist p-m 3.0 6.0 3.0 - - - - 12
Watershed Management Specialist- Int'l p-m 2.0 3.5 - - - - - 5.5
National Consultants p-m
Biodiversity Specialist - National p-m 3.0 7.0 4.0 2.0 - - - 16
Climate change and REDD, Natl p-m - 4.0 4.0 - 4.0 4.0 - 16
Environmental Safeguards and Cumulative Environmental Assessment p-m 3.0 4.0 4.0 4.0 4.0 4.0 4.0 27
Geographical Information Systems & Mapping p-m 2.0 2.0 2.0 2.0 - - - 8
Information, Education and Communication and Public Participation p-m 3.0 4.0 4.0 4.0 4.0 - - 19
Land Use and Land Capability Assessment, Planning and Management p-m 3.0 5.0 4.0 - - - - 12
Legal and Institutional Specialist p-m 3.0 3.0 3.0 3.0 3.0 - - 15
Market Specialist /w p-m 3.0 12.0 12.0 3.0 - - - 30
Planning and Regulatory Specialist p-m 3.0 5.0 4.0 - - - - 12
Policy, Institutions and Legislation p-m 3.0 8.0 8.0 8.0 6.0 4.0 3.0 40
Resource Economist p-m - 4.0 4.0 4.0 - - - 12
Social Safeguards (incl. IPs and Resettlement), Poverty and Gender p-m 2.0 8.0 8.0 8.0 4.0 2.0 - 32
Strategic Environmental Assessment p-m 2.0 6.0 6.0 2.0 - - - 16
Watershed Management Specialist p-m 3.0 12.0 8.0 3.0 - - - 26
Unallocated p-m - 7.0 9.0 9.0 10.0 9.0 - 44
Resettlement Specialist
Component 2 Smallholder/Commercial/institutional Investments
National Consultants
Conservation Farming/Technical Extension p-m 3.0 12.0 12.0 12.0 - - - 39
Rural infrastructure engineer p-m - 4.0 4.0 4.0 4.0 - - 16
Rural Infrastructure Economist p-m - 4.0 4.0 4.0 4.0 - - 16
Component 3 Enhanced Capacity for River Basin and Watershed Management
GIS Training for Participatoy Planning/Monitoring -GIS Specialist p-m 3.0 6.0 6.0 6.0 6.0 6.0 - 33
Institutional Assessment and Capacity Building p-m 3.0 9.0 6.0 - - - - 18
Training of Tainers/Community Based Info Sharing p-m 2.0 1.0 1.0 1.0 - - - 5
Training Specialist p-m 3.0 9.0 6.0 4.0 - - - 22
Component 4. Project Management & Support Services
International Consultant
Project Performance Evaluation Specialist- Int'l p-m - - - - - - 1.5 1.50
Lead Consultant, Ntrl Rsrcs & Frstry p-m 3.0 10.0 10.0 6.0 6.0 6.0 6.0 47
River Basin Based, Ntrl Rsrcs & Frstry p-m 24.0 36.0 36.0 36.0 28.0 20.0 18.0 198
Financial Management, Procurement and PBGS p-m 2.0 6.0 4.0 - - - - 12
GIS-based Database development for Project performance Monitoring and E p-m 3.0 2.0 2.0 - 2.0 1.0 - 10
Project Performance Evaluation Specialist p-m - - - - - - 2.0 2
Project Performance, Monitoring & Evaluation Specialist p-m 1.0 - - 2.0 - - 2.0 5
50
Summary
Component 1. River Basin and Watershed Management Plans
International Consultants p-m 6.0 13.5 5.0 - 2.0 2.0 - 28.50
National Consultants p-m 33.0 91.0 84.0 52.0 35.0 23.0 7.0 325.00
Component 2. Smallholder/Commercial/institutional Investments
International Consultants p-m - - - - - - - -
National Consultants p-m 3.0 20.0 20.0 20.0 8.0 - - 71.00
International Consultants p-m - - - - - - - -
National Consultants p-m 11.0 25.0 19.0 11.0 6.0 6.0 - 78.00
International Consultants p-m - - - - - - 1.5 1.50
TOTAL
International Consultants p-m 6.0 13.5 5.0 - 2.0 2.0 1.5 30.00
TOTAL CONSULTANTS - PERSON-MONTHS 86.0 203.5 180.0 127.0 87.0 58.0 36.5 778.00
Contracted Project Staff (NPCO)

Support Staff: Technical Extension Implementation p-m 72.0 144.0 144.0 144.0 144.0 144.0 144.0 936
Project Assisting Professionals

Project Manager (Deputy Project Director) p-m 6.0 12.0 12.0 12.0 12.0 12.0 12.0 78
Social Development Specialist p-m 6.0 12.0 12.0 12.0 12.0 12.0 12.0 78
Development Communications Specialist p-m 6.0 12.0 12.0 12.0 12.0 12.0 12.0 78
Monitoring and Evaluation Specialist p-m 6.0 12.0 12.0 12.0 12.0 12.0 12.0 78
Finance and Procurement Specialist p-m 6.0 12.0 12.0 12.0 12.0 12.0 12.0 78
Investment and Marketing Specialist p-m 6.0 12.0 12.0 12.0 12.0 12.0 12.0 78
GIS Specialist p-m 6.0 12.0 6.0 - - - - 24
Total Contracted Project Staff 114.0 228.0 222.0 216.0 216.0 216.0 216.0 1,428
111. Detailed Terms of Reference for key disciplines are presented in Appendix 9.
51
VII. SAFEGUARDS
112. Project activities, including those under subprojects, will comply with (a) applicable laws
and regulations of the Philippines; (b) ADB and IFAD environment policies and regulations,
specifically ADB's Environment Policy 2002; (c) environmental assessment and review
procedures framework as prepared and agreed for the Project; and (d) the environmental
monitoring plan as set out in the SIEE, including preparing IEE reports for subprojects. The
Government will report compliance with ADB's Environment Policy in DENR's quarterly progress
reports.
113. The following table summarizes the anticipated environmental impacts under the Project
as well as the respective mitigation measures and institutional arrangements to address the
same.
Summary of Environmental Impacts, Mitigation Measures and Institutional Arrangement

Stage/Component/
Mitigation Measures Institutional Arrangements
Environmental Impacts
Project Location/Design Stage
URB Field Investment Component
through Forest Protection, ANR
and Demonstration Farms:
No significant impact Nothing to mitigate but additional PPMO, with PTFCF and ICRAF
environmental safeguards are technical assistance, to
recommended coordinate and supervise the
implementation of additional
environmental safeguards
URB Livelihood Enhancement
Component through Rural
Infrastructure Rehabilitation and
Improvement:
No significant impact Nothing to mitigate but additional PPMO and municipalities of
environmental safeguards are Bauko, Sagada and Sabangan to
Construction/Establishment Stage
No significant impact Nothing to mitigate but additional PPMO, with PTFCF and ICRAF
environmental safeguards are support, to coordinate and
recommended supervise the implementation of
additional environmental
safeguards
Improvement:
No significant impact Nothing to mitigate but additional PPMO and the municipalities of
environmental safeguards are Bauko, Sagada and Sabangan to
Operation/Maintenance Stage
Reduce access to forest resources  consultation with the affected people PPMO to conduct consultation in
52
Stage/Component/
Mitigation Measures Institutional Arrangements
Environmental Impacts
due to effective forest protection or group coordination with DENR field
office and municipalities of Bauko,
Sagada and Sabangan
 conduct of technical extension and PPMO with support from DENR
information, education and field offices and relevant NGAs, to
communication (TE-IEC), undertake this activity with target
community/group
 provision of appropriate property right DENR to provide appropriate
or tenurial instruments, tenurial instrument
 land use zoning DENR Regional Office, in
coordination with National Project
Coordinating Office (NPCO) and
municipalities of Bauko, Sagada
and Sabangan
 establishment of agroforestry and ICRAF to provide technical
commercial tree plantation assistance to farmers/private
sectors interested in agroforestry
and commercial tree plantation
Improvement:
For road access rehabilitation and For road access and potable water supply, PPMO and the municipalities of
Level 2 potable water supply— No there is nothing to mitigate but additional Bauko, Sagada and Sabangan to
significant impact environmental safeguards are coordinate and supervise the
recommended for this component; implementation of additional
For CIS: Excessive use of irrigation  regulate the application of irrigation Farmers-irrigators association to
water, which could lead to increase water regulate the use of irrigation
leaching of soil nutrients, water, with technical assistance
change/degrade soil characteristics from National Irrigation
of farms, induce scouring of Administration (NIA) and the
irrigation canals and reduce municipalities of Bauko, Sagada
downstream water supply and Sabangan
 training, monitoring and supervision of The municipalities of Bauko,
farmers-irrigators on proper use of Sagada and Sabangan to conduct
irrigation system. training, monitoring and
supervision of farmers-irrigators,
with technical assistance from
NIA
114. The Project and its subprojects and components will be governed by the RF and IPPF to
be approved by the government and ADB. Where involuntary resettlement will occur (e.g.,
acquisition of assets and sources of livelihood and incomes, and/or restriction to hitherto
held/occupied land or resources) in any Project subproject or component, a RP will be prepared
and submitted to ADB for approval prior to actual displacement. Where the Project subproject or
component is located in areas occupied by IP communities, an IPP will be prepared and
submitted to ADB for approval as a precondition to the appraisal (and inclusion in the Project) of
that subproject or component. Both plans will include a strategy for addressing gender concerns
and ensuring the meaningful participation of women in the project.
115. There are two social safeguards critical for monitoring: IP and IR safeguards. It is
recommended that in project sites where there are IPs, project M&E for the IPP and RP will be
conducted as one joint activity to avoid redundancy, save on resources, and lessen disturbance
on affected households. As separate undertakings though, the key monitoring considerations
are presented in the subsequent sections of this document.
53
116. Grievance Redress Mechanism. The grievance redress mechanism (GRM) is meant
for people seeking satisfactory resolution of their complaints on the environmental performance
of the project. The mechanism will ensure that (i) the basic rights and interests of every affected
person by poor environmental performance of the project are protected, and (ii) their concerns
arising from the poor environmental performance of the project during the phases of design,
construction and operation activities are effectively and timely addressed.
117. The NPCO, the Regional Project Coordination Office (at the respective DENR Regional
Office) and the PPMO will make the public aware of the GRM through public awareness
campaigns, training and capacity building. The contact details of the people in charge of
grievance handling in the respective PPMO, the Regional Project Coordination Office, and the
NPCO will be placed on notice boards outside their offices.
118. Grievances will be handled following the procedures outlined below:

(i) The grievance shall be filed by the affected person with the PPMO who will act
within 15 days upon receipt thereof;
(ii) If no understanding or amicable solution can be reached, or if the AP does not
receive a response from the PPMO within 15 days of registry of the complaint,
he/she can appeal to the concerned Regional Project Coordination Office, which
will act on the complaint/grievance within 15 days from the day of its filing;
(iii) If the affected person is not satisfied with the decision of the Regional Project
Coordination Office, he/she can appeal to NPCO within 15 days of receiving the
decision of the Regional Project Coordination Office.
(iv) If the affected person is not satisfied with the decision of the NPCO, he/she as
the last resort can submit the complaint to any court of law.
119. Affected persons shall be exempted from all administrative and legal fees incurred
pursuant to the grievance redress procedures. All complaints received in writing from affected
persons will be documented and shall be acted upon immediately according to the procedures
detailed above.
A. IP Safeguards Monitoring
120. There will be two monitoring mechanisms for the IPP/ADSDPP: internal monitoring and
external monitoring that will determine if the IPP/ADSDPP is being carried out in accordance
with the IPPF. The NPCO shall conduct the supervision and in-house monitoring of
implementation of the IPP/ADSDPP. The procedure for monitoring will be guided by the
monitoring, evaluation, and reporting arrangements set forth in the IPP/ADSDPP. The external
monitoring agency (EMA) will verify internal monitoring reports. Prescribed indicators for internal
monitoring as well as guidance for measuring each indicator are presented below.
54
IP Safeguards Internal Monitoring Indicators
Monitoring
Basis for Indicators
Indicators
1. Budget and  Have capacity building and training activities been completed on schedule?
timeframe  Are IPP and MOA activities being implemented and targets achieved against the agreed time
frame?
 Are funds for the implementation of the IPP/ADSDPP allocated to the proper agencies on time?
 Have agencies responsible for the implementation of the IPP/ADSDPP received the scheduled
funds?
 Have funds been disbursed according to the IPP/ADSDPP?
 Has social preparation phase taken place as scheduled?
 Have all clearance been obtained from the NCIP?
 Have the consent of the IP community in the affected ancestral domain been obtained?
2. Public  Have consultations taken place as scheduled including meetings, groups, and community
Participation activities? Have appropriate leaflets been prepared and distributed?
and  Have any APs used the grievance redress procedures? What were the outcomes?
Consultation  Have conflicts been resolved?
 Was the social preparation phase implemented?
 Were separate consultations done for Indigenous Peoples?
 Was the conduct of these consultations inter-generationally exclusive, gender fair, free from
external coercion and manipulation, done in a manner appropriate to the language and customs of
the affected IP community and with proper disclosure?
 How was the participation of IP women and children? Were they adequately represented?
3. Benefit  What changes have occurred in patterns of occupation, production and resources use compared to
Monitoring the pre-project situation?
 What changes have occurred in income and expenditure patterns compared to pre-project
situation? What have been the changes in cost of living compared to pre-project situation? Have
APs’ incomes kept pace with these changes?
 What changes have taken place in key social and cultural parameters relating to living standards?
 What changes have occurred for IPs?
 Has the situation of the IPs improved, or at least maintained, as a result of the project?
 Are IP women reaping the same benefits as IP men?
 Are negative impacts proportionally shared by IP men and women?
Adapted from ADB’s Handbook on Resettlement: A Guide to Good Practice. 1998.
121. External Monitoring Agency. External Monitoring will be commissioned by the NPCO
to undertake independent external monitoring and evaluation. The EMA for the Project will be
either a qualified individual or a consultancy firm with qualified and experienced staff.
122. The Terms of Reference for the EMA shall be prepared by the NPCO and shall be
acceptable to ADB prior to engagement. NPCO is responsible for the engagement of the EMA;
ensures that funds are available for monitoring activities; and submits monitoring reports to the
ADB.
123. Specifically, the activities of the EMA are as follows:
(i) Verify results of internal monitoring;

(ii) Coordinate with the NCIP regarding the monitoring and evaluation of the situation
of affected IP communities, whether inside (covered by ADSDPP) or outside
ancestral domains (covered by the IPP);
(iii) Verify and assess the results of the Project IEC for IPs and non-IPs;
(iv) Assess efficiency, effectiveness, impact and sustainability of IPP/ADSDPP
55
implementation;
(v) Suggest modification in the implementation procedures of the IPP/ADSDPP, if
necessary, to achieve the principles and objectives of the IP Framework;
(vi) Review of the handling of compliance and grievances cases.
124. Indicators and guide measures for external monitoring are presented in the table below.
IP Safeguards External Monitoring Indicators
Monitoring
Basis for Indicators
Indicators
1. Basic information  Location
on AP households  Composition and structures, ages, education and skill levels
 Gender of household head
 Ethnic group
 Access to health, education, utilities and other social services
 Housing type
 Land use and other resource ownership and patterns
 Occupation and employment patterns
 Income sources and levels
 Agricultural production data (for rural households)
 Participation in neighborhood or community groups
 Access to cultural sites and events
 Value of all assets forming entitlements and resettlement entitlements
2. Levels of AP  How much do IPs know about grievance procedures and conflict resolution procedures? How satisfied are
Satisfaction those who have used said mechanism?
 How much do the affected IP communities know about the IP framework?
 Do they know their rights under the IP framework?
 How much do they know about the grievance procedures available to them?
 Do they know how to access to it?
 How do they assess the implementation of the IPP/ADSDPP?
3. Other Impacts  Were there unintended environmental impacts?
 Were there unintended impacts on employment or incomes?
4. IP Indicators  Are special measures to protect IP culture, traditional resource rights, and resources in place?
 How are these being implemented?
 Are complaints and grievances of affected IPs being documented?
 Are these being addressed?
 Did the project proponent respect customary law in the conduct of public consultation, in IPP/ADSDPP
implementation, in dispute resolution?
 Did the project proponent properly document the conduct of public consultations, the formulation and
implementation of the IPP/ADSDPP?
 Were the public consultations inter-generationally inclusive?
 Were women and children proportionally represented?
 Were representatives of the NCIP present in the public consultations? During the monitoring of
IPP/ADSDPP implementation?
Adapted from ADB’s Handbook on Resettlement: A Guide to Good Practice. 1998.
125. Schedule of Monitoring and Reporting. The NPCO shall establish a schedule for the
implementation of MOAs and IPPs taking into account the project’s implementation schedule. It
is expected that one month prior to the start of subproject implementation, internal and external
monitoring key actors shall have determined all IPP activities.
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126. Internal monitoring will be done by NPCO, while external monitoring will be carried out
by an External Monitoring Agency to be commissioned by the Project.
127. Compliance Monitoring. This is the first activity that both internal and external
monitoring entities shall undertake to determine whether or not IPPs and MOAs were carried out
as planned and according to this policy. The EMA will submit an Inception Report and
Compliance Monitoring Report one month after receipt of Notice to Proceed for the
engagement. The engagement of the EMA is scheduled to meet the Policy’s requirement of
concluding MOA and IPP implementation activities at least one (1) month prior to the start of
zoning and/or civil works.
128. Quarterly Monitoring. The EMA will be required to conduct quarterly monitoring of
MOA and IPP implementation activities.
129. Final Evaluation. Final evaluation of the implementation of the IPP will be three months
after its completion. The EMA shall coordinate with the NCIP and the affected IP community on
the dates of the final evaluation for both the IPP and the MOA.
130. Post-Evaluation. This activity will be undertaken one year after the completion of a
project/subproject in order to determine whether the social and economic conditions of the
affected IPs have improved or have been restored to their pre-project levels.
131. Internal and external monitoring reports will be made available to all implementing units,
including the IP communities. The EMA is accountable to the NPCO. The NPCO submits
copies of internal and external monitoring reports to ADB.
B. IR Safeguards Monitoring
132. Internal Monitoring. The main objective of monitoring the implementation of the RPs,
MOA with IPs in ADs, and IPPs is to determine if these RPs, MOA, and IPPs are being carried
out in accordance with this RF.
133. The NPCO shall conduct the supervision and in-house monitoring of implementation of
the RPs and the IPPs. The procedure for monitoring the MOA that the project proponent enters
into with affected IPs inside ADs will be guided by the monitoring, evaluation, and reporting
arrangements set forth in that MOA. The monitoring of the IPP for affected ICCs/IPs living
outside ancestral domains will fall under IM in coordination with the NCIP. EM will verify IM
Reports. IM indicators and guidance for measures per indicator are presented in the table
below. IM reports will be made available to all implementing units, including the APs. The NPCO
submits copies of IM Reports to ADB.
IR Safeguards Internal Monitoring Indicators

Monitoring Indicators Basis for Indicators
1. Budget and timeframe  Have all land acquisition and resettlement staff been appointed and mobilized for the field and office
work on schedule?
 Have capacity building and training activities been completed on schedule?
 Are resettlement implementation activities being achieved against the agreed implementation plan?
 Are IPP and MOA activities being implemented and targets achieved against the agreed time frame?
 Are funds for resettlement being allocated to resettlement agencies on time?
 Are funds for the implementation of the IPP and MOA allocated to the proper agencies on time?
 Have resettlement offices received the scheduled funds?
 Have agencies responsible for the implementation of the IPPs and MOA received the scheduled
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funds?
 Have funds been disbursed according to the RP?
 Have funds been disbursed according to the IPPs and MOA?
 Has the social preparation phase taken place as scheduled?
 Has all land been acquired and occupied in time for project implementation?
 Have all clearance been obtained from the NCIP?
 Have the consent of the IP community in the affected ancestral domain been obtained?
2. Delivery of Compensation  Have all APs received entitlements according to numbers and categories of loss set out in the
and Entitlements entitlement matrix?
 Have APs received payments for affected structures and lands on time?
 Have APs losing from temporary land been compensated?
 Have all received the agreed transport costs, relocation costs, income substitution support and any
resettlement allowances, according to schedule?
 Have all replacement land plots or contracts been provided? Was the land developed as specified?
Are measures in train to provide land titles to APs?
 How many APs opted to donate their land to the government?
 How many APs did not receive payment?
 How many APs opted to donate their lands to the government?
 How many landholdings were subjected to quit claim? Easement?
 How many APs accepted the first offer at zonal valuation?
 How many APs rejected the first offer and accepted the second offer?
 How many APs resorted to expropriation?
 How many AP households have received land titles?
 How many APs have received housing as per relocation options in the RP?
 Does house quality meet the standards agreed?
 Have relocation sites been selected and developed as per agreed standards?
 Are the APs occupying the new houses?
 Are assistance measures being implemented as planned for host communities?
 Is restoration proceeding for social infrastructure and services?
 Are the APs able to access schools, health services, cultural sites and activities at the level of
accessibility prior to resettlement?
 Are income and livelihood restoration activities being implemented as set out in income restoration
Plan? For example utilizing replacement land, commencement of production, numbers of APs
trained and provided with jobs, micro-credit disbursed, number of income generating activities
assisted?
 Have affected businesses received entitlements including transfer and payments for net losses
resulting from lost business and stoppage of production?
3. Public Participation and  Have consultations taken place as scheduled including meetings, groups, and community activities?
Consultation Have appropriate resettlement leaflets been prepared and distributed?
 How many APs know their entitlements? How many know if they have been received?
 Have any APs used the grievance redress procedures? What were the outcomes?
 Have conflicts been resolved?
 Was the social preparation phase implemented?
 Were separate consultations done for Indigenous Peoples?
 Was the conduct of these consultations intergenerationally exclusive, gender fair, free from external
coercion and manipulation, done in a manner appropriate to the language and customs of the
affected IP community and with proper disclosure?
 How was the participation of IP women and children? Were they adequately represented?
4. Benefit Monitoring  What changes have occurred in patterns of occupation, production and resources use compared to
the pre-project situation?
 What changes have occurred in income and expenditure patterns compared to pre-project situation?
What have been the changes in cost of living compared to pre-project situation? Have APs’ incomes
kept pace with these changes?
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 What changes have taken place in key social and cultural parameters relating to living standards?
 What changes have occurred for vulnerable groups?
 Has the situation of ICCs/IPs improved, or at least maintained, as a result of the project?
 Are IP women reaping the same benefits as IP men?
 Are negative impacts proportionally shared by IP men and women?
Derived from ADB Handbook on Resettlement: A Guide to Good Practice. 1998.
134. External Monitoring and Evaluation. External monitoring, to be carried out on a

quarterly basis, will be commissioned by the NPCO as an independent external exercise. The
EM for the Project will be either a qualified individual or a consultancy firm with qualified and
experienced staff. The Terms of Reference for the EM shall be prepared by the NPCO and shall
be acceptable to the Bank prior to the engagement. NPCO will be responsible for the
engagement of EM; ensuring that funds are available for monitoring activities both for the EM
and IM; and submitting EM and IM Monitoring Reports to the ADB. The NPCO shall provide
copies of RPs, IDPs, MOA and other related documents of the monitoring activities for EM.
Specifically, EM activities are as follows:
135. Verify results of internal monitoring;
136. Coordinate with the NCIP regarding the monitoring and evaluation of the situation of
affected IP communities, whether inside (covered by the MOA) or outside ancestral domains
(covered by the IPP);
a. Verify and assess the results of the information campaign for APs rights and
entitlements, including the consultation with affected IPs living outside ancestral
domain;
b. Verify that the compensation process has been carried out with the procedures
communicated with the APs and affected IPs during the consultations;
c. Assess whether resettlement, MOA, and IPP objectives have been met;
specifically, whether livelihoods and living standards have been restored or
enhanced;
d. Assess efficiency, effectiveness, impact and sustainability of resettlement, IPP,
and MOA implementation, drawing lessons as a guide to future resettlement and
indigenous peoples’ policy making and planning;
e. Ascertain whether the resettlement, MOA, and IPP entitlements were appropriate
to meet the objectives, and whether the objectives were suited to AP and IP
conditions;
f. Suggest modification in the implementation procedures of the RPs, MOA, and
IPP, if necessary, to achieve the principles and objectives of the Resettlement
Policy and IP Framework;
g. Review on how compensation rates were evaluated; and
h. Review of the handling of compliance and grievances cases.
137. EM reports will be made available to all implementing units, including the APs. The EM
contractor is accountable to the NPCO and reports to the NPCO. The NPCO submits copies of
EM Reports to ADB. Monitoring indicators and guidance for measures of listed indicators are
shown below.
59
IR Safeguards External Monitoring Indicators
1. Basic information on AP  Location
households  Composition and structures, ages, education and skill levels
 Gender of household head
 Ethnic group
 Access to health, education, utilities and other social services
 Housing type
 Land use and other resource ownership and patterns
 Occupation and employment patterns
 Income sources and levels
 Agricultural production data (for rural households)
 Participation in neighborhood or community groups
 Access to cultural sites and events
 Value of all assets forming entitlements and resettlement entitlements
2. Restoration of living  Were house compensation payments made free of depreciation, fees or transfer costs to APs?
standards  Have APs adopted the housing options developed?
 Have perceptions of “community” been restored
 Have APs achieved replacement of key social cultural elements?
 Have affected IP communities at least maintained their living standards prior to the project?
 Have proper measures been undertaken to protect their customs, indigenous structures?
3. Restoration of  Were compensation payments free of deduction for depreciation, fees or transfer costs to the APs?
Livelihoods  Were compensation payments sufficient to replace lost assets?
 Was sufficient replacement land available of suitable standard?
 Did transfer and relocation payments cover these costs?
 Did income substitution allow for re-establishment of enterprises and production?
 Have enterprises affected received sufficient assistance to re-establish themselves?
 Have vulnerable groups been provided income-earning opportunities? Are these effective and
sustainable?
 Do jobs provided restore pre-project income levels and living standards?
4. Levels of AP  How much do APs know about resettlement procedures and entitlements? Do APs know their
Satisfaction entitlements?
 Do they know if these have been met?
 How do APs assess the extent to which their own living standards and livelihood been restored?
 How much do APs know about grievance procedures and conflict resolution procedures? How
satisfied are those who have used said mechanism?
 How much do the affected IP communities know about the IP framework in the RP?
 Do they know their rights under the IP framework?
 How much do they know about the grievance procedures available to them?
 Do they know how to access to it?
 How do they assess the implementation of the MOA and the RPs?
5. Effectiveness of  Were the APs and their assets correctly enumerated?
Resettlement Planning  Was any land speculators assisted?
 Was the time frame and budget sufficient to meet objectives?
 Were entitlements too generous?
 Were vulnerable groups identified and assisted?
 How did resettlement implementers deal with unforeseen problems?
6. Other Impacts  Were there unintended environmental impacts?
 Were there unintended impacts on employment or incomes?
7. IP Indicators  Are special measures to protect IP culture, traditional resource rights, and resources in place?
 How are these being implemented?
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 Are complaints and grievances of affected IPs/ICCs being documented?
 Are these being addressed?
 Did the project proponent respect customary law in the conduct of public consultation, in RP and
MOA implementation, in dispute resolution?
 Did the project proponent properly document the conduct of public consultations, the formulation and
implementation of the RP and the MOA?
 Were the public consultations inter-generationally inclusive?
 Were women and children proportionally represented?
 Were representatives of the NCIP present in the public consultations? During the monitoring of RP
and/or MOA implementation?
Derived from ADB Handbook on Resettlement: A Guide to Good Practice. 1998
138. Compliance Monitoring. This is the first activity that both IMA and EMA shall undertake
to determine whether or not the RPs, IPPs, and MOA were carried out as planned and
according to this policy. The EMA will submit an Inception Report and Compliance Monitoring
Report one month after receipt of Notice to Proceed for the engagement. The engagement of
the EMA is scheduled to meet the Policy’s requirement of concluding RP, MOA, and IPP
implementation activities at least one (1) month prior to the start of zoning and/or civil works.
139. Quarterly Monitoring - The EMA will be required to conduct quarterly monitoring of
RP, MOA, and IPP implementation activities.
140. Final Evaluation. Final evaluation of the implementation of RPs will be conducted three
months after the completion of payments of compensation to APs and three months after the
completion of the IPP. The EMA shall coordinate with the NCIP and the affected IP community
on the dates of the final evaluation for the MOA.
141. Post-Evaluation. This activity will be undertaken a year after the completion of
resettlement in a particular subproject in order to determine whether the social and economic
conditions of the APs and the affected IPs have improved or have been restored to their pre-
project levels.
1. Disclosure of Information
142. For IP communities, pertinent information for disclosure are: (i) notices of meetings/
consultation, (ii) INREM concept and implementation arrangements, (iii) results/minutes/
agreements made during meetings/consultations, grievance redress mechanisms, results of
assessment studies, IPPs, and M&E results.
143. Disclosure modalities will be in accordance with prevailing customs and traditions and
shall be written in English or Pilipino and in the IP language and authorized by community
elders/leaders shall be delivered and posted in conspicuous places or if lengthy, copies
provided to community elders/leaders and IPO organizations. Popular forms of printed materials
include: fact sheets, flyers, newsletters, brochures, issues papers, reports, surveys etc.
Popularized materials aim to provide easily read information. These materials may be in the
local dialect enhanced with drawings, to inform a wide range of IPs about the planning and
assessment processes and activities.
144. Aside from those discussed in the previous paragraphs, disclosure of the following
documents is strongly indicated in the new ADB SPS:
61
(i) Draft IP and resettlement plans and/or IP/IR framework endorsed by the
borrower/client before project appraisal;
(ii) The final IP/IR plan endorsed by the borrower/client after the census of affected
persons has been completed;
(iii) A new IP/IR plan or an updated IP/IR plan, and a corrective action plan prepared
during project implementation, if any; and
(iv) The IP and IR monitoring reports.
145. IEC materials will be produced in popularized form for all APs across implementation
levels. The ADB SPS requirements (SR 2 & 3) as well as the ADB Public Communication Policy
will serve as guide. The documents listed above will be uploaded in the INREM management
information system for interconnectivity as well as the ADB website.
2. Grievance Redress Mechanisms
146. A mechanism made known to IPs and other affected persons to receive and facilitate
resolution of concerns, complaints, and grievances will be crafted in a manner that it is culturally
appropriate, gender responsive, and timely, at no cost and without retribution to the concerned
parties. Inasmuch as IPs cross over project concerns in terms of purely IP and IR safeguards,
the two modalities of grievance redress will have to be observed, based on the concern.
a. IP Safeguards Grievance Redress Mechanism
147. A grievance redress mechanism shall be generated through a participatory process and
describe how redress procedures are accessible to IPs in a culturally appropriate and gender
sensitive fashion. Complaints of any member of the IP communities regarding the project will be
addressed within the community itself in the context of its customary law and customary dispute
resolution processes and mechanisms, in the presence of the relevant staff of the NCIP office
with jurisdiction over the area. Inter-community conflicts will be addressed between the
communities themselves, according to their customary or agreed upon dispute resolution
processes and mechanisms. If an outside facilitator, mediator, or arbiter is required or requested
for, the National Project Coordinating Office (NPCO) and the implementing agency (IA) will
request the NCIP to act as facilitator, mediator, or arbiter.
148. The NCIP/IP focal person will document the proceedings of the discussion or
negotiations. If no satisfaction is obtained or an impasse results, the IP communities can elevate
their complaints and grievances to the next higher level of the INREM structure, whichever is
most logical; depending on the IA for that particular activity. Should an impasse persist, the
complaint/grievance can be elevated to the NCIP legal unit (Region / Central) for the necessary
action/decision.
b. IR Safeguards Grievance Redress Mechanism

149. It is recognized that IR safeguards can cover both IP and non-IP groups within INREM
areas. For IP groups, concerns may be within ancestral domains and outside ancestral
domains, hence variations of approaches are provided in this section.
150. For Non-IP Affected Persons. Grievances related to any aspect of the project or
subproject will be handled through negotiations and are aimed at achieving consensus following
the procedures outlined below:
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(ii) The grievance shall be filed by the AP with the RIC who will act within 15 days
upon receipt thereof;
(iii) If no understanding or amicable solution can be reached, or if the AP does not
receive a response from the RIC within 15 days of registry of the complaint,
he/she can appeal to the concerned DENR Regional Office, which will act on the
complaint/grievance within 15 days from the day of its filing;
(iv) It the AP is not satisfied with the decision of the Regional Office, he/she, as a last
resort, can submit the complaint to any court of law.
151. APs shall be exempted from all administrative and legal fees incurred pursuant to the
grievance redress procedures. All complaints received in writing from APs will be documented
and shall be acted upon immediately according to the procedures detailed above.
152. For IPs inside Ancestral Domains. Conflicts within the affected IP/ICC will be
addressed within the community itself in the context of its customary law and customary dispute
resolution processes and mechanisms, in the presence of the relevant staff of the NCIP office
with jurisdiction over the area. Inter-community conflicts will be addressed between the
communities themselves, according to their customary or agreed upon dispute resolution
processes and mechanisms. If an outside facilitator, mediator, or arbiter is required or requested
for, the NPCO and IAs will seek the intervention of the NCIP to act as facilitator, mediator, or
arbiter. The RP focal person at the IA unit with the assistance of NPCO and RIC shall
document the proceedings of the discussion or negotiations. The IP/ICC may have their own
documentation. If no satisfaction is obtained or an impasse results, the IP communities can
elevate their complaints and grievances to the next higher level of the INREM structure,
whichever is most logical; depending on who the IA is for that particular activity.
153. The grievance procedure established herein in no way substitutes for or replaces the
grievance procedure set forth in FPIC Guidelines of 2006. At their choosing, IPs may avail of the
grievance procedure and mechanisms spelled out in Section 47 of the FPIC Guidelines of 2006
for complaints regarding the MOA.
154. For IPs outside Ancestral Domains. Affected ICCs/IPs living outside ancestral
domains can file their grievance or complaint with the RIC. Procedures applicable to non-IPs
shall apply to affected ICCs/IPs living outside ancestral domains especially if they are not
members of another domain, or the same tribe as the affected ICC. In settling complaints and
grievances, the first option is to use customary dispute resolution processes. Conflicts should be
resolved at the ICC/IP level first before elevating it to the RIC. A representative of the NCIP
should be present during the community dispute resolution process to serve as witness or
translator. With the concurrence or at the request of both the project proponent and the
ICC/IPs, the NCIP may facilitate the dispute resolution process.
155. Pertinent to the GAP, project M&E will have to ensure that the targets reflected in the
table below are incorporated and that all activities and data collection will reflect gender
disaggregated data:
63
Community Level Project Management Level
Women’s representation during Gender Specialist included in production of training modules and
consultations (30%). establishment of trainers’ pool.
Committees to be established at least Gender sensitive training material in local dialects to be prepared in close
are 30% women. consultation with beneficiaries.
Hands-on attendees and beneficiaries GAP implementation and reporting on gender related achievements
of training activities at least 30% reflected in quarterly progress reports to ADB.
women.
For infrastructure construction and local Implementing agencies to appoint project staff as gender focal point
labor, at least 35% of local labor responsible for monitoring GAP implementation.
reserved for local rural women,
particularly the poorer and more
vulnerable.
50% beneficiaries of subsidized inputs The terms of reference of all consultants will include responsibilities to
will be women. ensure GAP implementation as related to their work.
Gender-sensitization training carried out as part of project orientation, for
all levels of staff, consultants, contractors, and facilitators.
Both female and male staff given equal opportunity to participate in non-
gender related training and capacity development programs.
A national social development/gender consultant recruited to (i) build
capacity of project management units on gender responsive design and
analysis; (ii) preparation of gender sensitive indicators; and (iii)
preparation of checklists for evaluation of gender responsiveness of
proposed subprojects.
Sex-disaggregated indicators to be established for project performance
monitoring and evaluation.
Mid-term view Mission to assess gender related achievements and
constraints to GAP implementation and propose adjustments for better
project performance.
VIII. GENDER AND SOCIAL DIMENSIONS
156. The Project’s gender classification is “effective gender mainstreaming” (EGM). A Gender
Action Plan (GAP), details of which are presented in Appendix 10, has been prepared based on
findings from Social Assessment using the Asian Development Bank (ADB) Handbook for
Social Assessment, in close consultation with stakeholders that significantly include women and
women leaders. This GAP is designed to address three key issues: empowerment for
participation and decision-making on natural resource management, improved access to
services which will in the end redound to decreased time and effort for performing household
reproductive activities.
157. A gender specialist will be included in the Loan Implementation Consultant team to
support the implementation of GAP. An awareness raising campaign will be undertaken for each
subproject on issues identified during the consultation process.
158. The GAP includes the following target and design features/activities:
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Output Gender Design Features/Activities
Output 1: River Basin  At least 30% women’s representation during consultations and assessment for
and watershed developing watershed management plans and river basin indicative
management and development plans.
investment plans  At least 30% women participated in the watershed management activities and
established land use planning.
 At least 30% women in the water management committees to be established by
the Project.
 At least 30% of women trained and involved in PES mechanisms and at least 3
related NGOs can support and/or facilitate participation of women in the river
basin management.
Component 2:  At least 30% of women in the committees to be established and/or consolidated
Smallholder and by the Project.
institutional investments  50% of beneficiaries of subsidized inputs (i.e., seedlings/fertilizers) will be
in conservation women.
increased and URB  Where infrastructure construction involves the employment of local labor at least
productivity enhanced 35% of this local labor will be reserved for local rural women with priority for the
in the forestry, poorer and more vulnerable women.
agriculture and rural  At least 40% of women are trained in commercial plantation, conservation
sectors farming, agro-forestry and sustainable forest management.
Components 3 & 4:  Gender Specialist included in production of training modules and establishing
River basin and trainers’ pool.
watershed  Gender sensitive training material in local dialects to be prepared in close
management capacity consultation with beneficiaries (avoiding gender stereotype materials)
and related governance  NPCO and Project Director responsible for overseeing GAP implementation and
mechanisms reporting on gender related achievements in quarterly progress reports to ADB.
strengthened and  Implementing agencies to appoint project staff as gender focal point responsible
Project management for monitoring GAP implementation and report gender related achievements and
and support services constraints to NPCO.
delivered  TOR of all consultants will include responsibilities to ensure GAP
implementation as related to their work.
 Gender-sensitization training carried out as part of project orientation, for all
levels of staff, consultants, contractors, and facilitators.
 Both female and male staff given equal opportunity to participate in non-gender
related training and capacity development programs.
 A national social development/gender consultant to be recruited to (i) build
capacity of project management units across levels, project staff and facilitators
in gender responsive design and analysis; (ii) preparation of gender sensitive
indicators; and (ii) preparation of checklists for evaluation of gender
responsiveness of proposed subprojects.
 Facilitate access to health, sanitation and credit facilities for women through
cooperation with other agencies.
 Sex-disaggregated indicators to be established for project performance M&E
system; monitoring will be on-going to ensure activities are effectively carried out
and targets reached; progress reports to include gender-related achievements
and constraints.
 Mid-term review Mission to assess gender related achievements and constraints
to GAP implementation and propose adjustments for better project performance.
DENR = Department of Environment and Natural Resources; GAP = gender action plan; LGU = local government
unit; M&E= monitoring and evaluation; NCIP = National Commission on Indigenous Peoples; NPCO = National
Project Coordination Office; NGO= nongovernment organization; PES = payment for environment services; TOR=
terms of reference; URB = upper river basin.
65
IX. PERFORMANCE MONITORING, EVALUATION, REPORTING AND
COMMUNICATION
A. Project Design and Monitoring Framework
Data Sources and

Performance Targets and Indicators with Reporting
Design Summary Baselines Mechanisms Assumptions and Risks
Impact By 2025: Assumption
Improved Forest loss reversed and forest cover in DENR and NAMRIA Economic growth of the
condition of URBs increased by at least 10% updates on forest country remains steady and
watersheds (2010 baseline)a cover government continues to
generating 220,000 household beneficiaries, 73.5% of NSO and NSCB place priority on the
livelihood which are indigenous peoples, with census and poverty economic development of
benefits in the diversified and increased incomes data the project areas
four URBs (2009 baseline) DENR-RBCO reports Risk
on adoption of INREM Political instability or
approach in partisan rivalry in subproject
management of other sites
watersheds
Outcome By 2020: Assumptions
Increased rural Rural household incomes in project areas Income class ranking The government’s timely
household increased by 30% from 2009 levels of river basin LGUs approval of land use
incomes and (P60,000–P90,000 per annum) and households in IPO assessments and zoning
LGU revenues in Poverty incidence rate in the project areas areas plans
selected decreased to 25% from 47% (2009 BLGF’s income Appropriate government
watersheds in baseline) classification of LGUs directives enabling
the four URBs (every 4 years) convergence of respective
Revenues of participating municipalities in NSO and NSCB institutional mandates
the URBs increased by 10% from 2010 census and poverty Risks
income levels (ranging from 30 to 105 data Delays in approval of
million pesos) through project investments DENR-RBCO and management plans for
in livelihood, biodiversity protection and NEDA annual reports selected URBs
conservation, and PES.
Project monitoring Revenue streams from
reports generated REDD and local PES
under RBCO mechanisms not realized
management system Extreme weather events
impact negatively on
ecosystem services
Outputs Assumptions
1. River basin By 2015, river basin indicative DENR and NEDA Government counterpart
and watershed development plans and watershed annual reports inputs are provided on time
management and management plans adopted in four Satellite imagery/maps and are adequate
investment plans project sites covering 1.13 million ha from NAMRIA Target LCO and IPO
established By 2016, four updated URB land use LGU beneficiaries are able to
plans delineated and mapped with comprehensive/forest effectively participate in
effective zoning ordinances land use plans and training programs
By 2016, 81 watershed management investment plans Potential negative climate
and investment plans adopted by the DENR watershed change impacts are
LGUs reports and appropriately addressed
By 2015, A GIS based database, management plans and can be mitigated
including remote sensing information for River basin Communities see sufficient
performance monitoring established development and incentives in diversification
At least 30% of watershed management management plans of agricultural techniques
committees and/or council members Project baseline Delays in government
are women. surveys and project procurement can be
results monitoring and minimized
evaluation reports
66
Data Sources and
Performance Targets and Indicators with Reporting
Design Summary Baselines Mechanisms Assumptions and Risks
2. Smallholder By 2017, over 200,000 ha effectively Review mission reports
protected through community based Risks
and institutional Project progress High staff turnover
investments in monitoring in the four URBs reports
Government budgetary
conservation By 2018, 94,010 ha of natural forestland Project completion support dwindles
increased and rehabilitated through reforestation and report
URB productivity assisted natural regeneration Armed conflict (political and
enhanced in the tribal) persists
By 2018, establishment of pilot
forestry, demonstrations of 5,370 ha for sustainable LCOs ban access of
agriculture and forest management surveyors and officials to
rural sectors CAD-T areas
By 2018, 24,450 ha of agroforestry with
community participation, and 5,950 ha of
commercial plantation
By 2017, 14,350 ha of conservation
farming demonstration established
By 2016, income-enhancing small scale
infrastructure improvements including 560
km of rural access, 85 km of foot trails, and
1 provincial trading center; communal
irrigation systems for about 3,040 ha; and
275 units of potable water supply (level II –
spring development) schemes
At least 35% of local labor for infrastructure
construction will be reserved for local rural
women.
3. River basin By 2017, 9,000 local beneficiaries trained
and watershed on (i) land use assessment and URBMP;
management (ii) land use planning, watershed
capacity and management and monitoring and REDD
related and (iii) TE-IEC
governance b
By 2018, 1,332 barangays capacitated in
mechanisms developing land management systems to
strengthened reduce carbon dioxide emissions
By 2018, 23 community watershed
protection brigades organized with at least
30% female membership
4. Project By March 2013, 1 NPCO, 4 RPCOs and at
management least 4 PPMOs established
and support By June 2013, Project implementation
services consultants recruited
delivered
By 2014, Project M&E, including GIS-
based database, established at the NPCO
and provincial and watershed units of
DENR
Gender action plan implementation and
reporting reflected in quarterly progress
reports to ADB
Activities with Milestones Inputs
1. River basin and watershed management and investment Loan
plans established ADB: $100 million
1.1 NPCO designs and establishes GIS-based database for Item Amount ($ million)
performance monitoring, including the training of DENR
regional and provincial and LGU staff in the four selected river Civil works 25.70
basins by end month 24. Equipment 1.13
1.2 NPCO acquires remote sensing data and completes baseline Data acquisition 0.95
Conservation forestry 37.23
67
assessment of land uses in URBs including ground truthing by Commercial forestry 14.48
end of month 24. Livelihood inputs 2.80
1.3 NPCO prepares detailed vulnerability and adaptation Consultants 3.66
assessment plans in the four selected river basins by month Locally contracted
18. 1.03
services
1.4 NPCO, through the PPMOs and WMPCOs, assesses land use Capacity building,
capability and participatory land use classification, zoning, and 2.47
studies
adoption in four selected river basins by month 24. Incremental operating
1.5 NPCO develops and implements carbon stock baseline 3.40
costs
assessments in the four selected river basins by month 24. Interest and charges 7.15
1.6 PPMOs delineate and demarcate forest boundaries in
consultation with local communities from month 18 to month
80. Government: $15.31 million
1.7 LGUs issue enabling legislative instruments as prescribed in Item Amount ($ million)
the URBMPs, including appropriate tenure and PES, for local Taxes and duties 7.61
community participation in INREM in the four selected river Recurrent expenditure 7.70
basins by month 60.
2. Smallholder and institutional investments in conservation International Fund for Agricultural
increased and URB productivity enhanced in the forestry, Development: Loan $20 million
agriculture and rural sectors Item Amount ($ million)
2.1 RPCOs prepare project plans including investment strategies
for private sector participation, based on inventories and Civil works 4.81
analyses for conservation areas and buffer zones to support Equipment 0.34
downstream investments in the four selected river basins by Conservation forestry 5.31
month 24. Livelihood inputs 6.32
2.2 WMPCOs implement project plans in selected river basins by Consultants 1.32
subprojects in accordance with agreed land use classification Capacity building,
and zoning from month 18 to month 84 0.71
studies
2.3 PPMOs undertake field activities of URBMP including Incremental operating
rehabilitation, protection, and management of protected areas 1.19
costs
with community participation; and forest-based sustainable
livelihoods and rural infrastructure rehabilitation and
Global Environment Fund grant: $2.5 million
improvements in production forest areas and agricultural land
Item Amount ($ million)
from month 18 to month 84.
Equipment 0.04
2.4 PPMOs, based on the agreed criteria, select additional
subprojects, undertakes necessary assessment for preparation Conservation forestry 0.37
of subproject feasibility studies consistent with prescriptions in Livelihood inputs 0.16
the URBMPs in four selected river basins, from month 18 to Consultants 0.98
month 36. Locally contracted
0.24
2.5 Participating LGUs provide infrastructure maintenance funding services
and carry out routine O&M starting from month 49 (one year Capacity buildings
0.34
after completion of infra projects). studies
Incremental operating
3. River basin and watershed management capacity and 0.37
expense
related governance mechanisms strengthened
3.1 NPCO assess capacity building needs in the project area, and
complete training for staff concerned by end of month 18 Climate Change Fund grant: $1.41 million
3.2 NPCO develops TE-IEC program for each selected river basin Item Amount ($ million)
by end of 18 months Conservation forestry 0.33
3.3 PPMOs undertake field implementation of TE-IEC in the four Commercial forestry 0.53
selected river basins from month 18 to month 84 (including Consultants 0.27
awareness raising) Capacity building, studies 0.28
3.4 NPCO implements capacity building and skills transfer training
events covering natural resource management, climate Local government units: $8.49 million
change, mainstreaming of biodiversity, PES, and REDD
4. Project management and support services delivered Civil works 6.74
4.1 WMPCOs enforce regular and effective rules and regulations Recurrent expenditure 0.42
required for effective implementation of URBMP through field O&M LGU infrastructure 0.41
visits and patrolling in the four selected river basins from Taxes and duties 0.92
month 19 to month 84.
68
4.2 NPCO carries out regular M&E and integrates results in the 6- Beneficiaries: $6.42 million (in kind)
monthly and annual project progress reports
4.3 NPCO formulates terms of reference and carries out relevant
studies required for project delivery; feeds in results for project Commercial forestry 6.20
improvement and enhancement by end month 3
4.4 NPCO carries out and documents gender- and indigenous- O&M community
peoples-related safeguard studies (including monitoring of 0.22
infrastructure
involuntary resettlements) and prepares annual reports for
dissemination and inclusion in project annual progress reports
ADB = Asian Development Bank; BLGF = Bureau of Local Government Finance; CAD-T = Certificate of Ancestral Domain Title;
DENR = Department of Environment and Natural Resources; GIS = geographic information system; ha = hectare; IPO = indigenous
peoples organization; km = kilometer; LCO = local community organization; LGU = local government unit; M&E = monitoring and
evaluation; NAMRIA = National Mapping and Resource Information Authority; NEDA = National Economic Development Authority;
NPCO = National Project Coordination Office; NSCB = National Statistical Coordination Board; NSO = National Statistics Office;
O&M = operation and maintenance; PES = payments for environmental services; PPMO = Provincial Project Management Office;
REDD = reduced emissions from deforestation and degradation; RPCO = Regional Project Coordination Office; TE-IEC = technical
extension, information, education, and communication; URB = upper river basin; URBMP = upper river basin management plan,
WMPCO = Watershed Management and Project Coordination Office.
a
The 2010 forest cover data will be based on the National Mapping and Resources Information Authority assessment report which will be
officially released by the end of 2012.
b
Smallest administration region in the Philippines.
Source: Asian Development Bank.
B. Monitoring
159. Project performance monitoring. Monitoring and evaluation of sub-components

implementation will be the main responsibility of the M and E unit at all levels. ADB at anytime
will send supervision mission to selected sites to monitor and evaluate the progress and status
of the implementation and management of the Project. The findings of the mission will be
embodied in an aide memoire and will be submitted to the NPSC copies of which will be
furnished all concerned stakeholders and Project implementors. NPCO will be responsible for
the overall coordination and will actively participate in the conduct of all ADB supervision
missions. DENR RO and PPMO will likewise participate in said missions.
C. Evaluation
160. Within 6 months of physical completion of the Project the Executing Agency will submit a
project completion report to ADB.20
D. Reporting
161. The Executing Agency will provide ADB with (i) quarterly progress reports in a format
consistent with ADB's project performance reporting system; (ii) consolidated annual reports
including (a) progress achieved by output as measured through the indicator's performance
targets, (b) key implementation issues and solutions; (c) updated procurement plan and (d)
updated implementation plan for next 12 months; and (iii) a project completion report within 6
months of physical completion of the Project. To ensure projects continue to be both viable and
sustainable, project accounts and the executing agency AFSs, together with the associated
auditor's report, should be adequately reviewed.
162. The NPCO will maintain monthly financial reports in order to regularly monitor the loan
status. Such reports will be consolidated by the Executing Agency in the preparation of quarter,
20
Project completion report format is available at: http://www.adb.org/Consulting/consultants-toolkits/PCR-Public-
Sector-Landscape.rar.
69
semi-annual and annual reports for auditing and submission to the DBM, ADB, with copies to
the NPSC. A suggested format for the preparation of Loan Status Report is in Appendix 11.
163. An inception report will be submitted upon completion of site validation, which is within 6
months after the project mobilization. Regular quarterly progress reports will be submitted by
the Executing Agency to the ADB for the entire duration of the project. In the first year of
implementation, semi-annual project review reports will be submitted indicating the physical and
financial performances on the implementation of Project components. In the following years,
annual project review reports will be submitted. The progress and review reports shall contain
project achievements for a specific period, description of problems encountered and the
corresponding actions that were taken to resolve them. Other required reports include a project
completion report and a poverty reduction impact report. Suggested formats for progress,
review and completion reports are in Appendix 12.
164. In cases where some project sub-components will be taken in partnership with the
academe, research institutions and/or NGOs, the NPCO shall require such partners to submit
quarterly progress to monitor their performance. Such reports, however, will be internally
maintained by the NPCO while summary and/or highlights of the same shall be incorporated in
the preparation of the project’s progress and review reports.
165. Annual audit reports will be prepared by the Executing Agency and submitted to the
DBM and ADB, with copies to the NPSC. The Project will abide by the General Accounting
Procedures, which shall be the basis for the Internal Audit and Evaluation of the Internal Control
System. Indicators that have been established will be examined during the auditing process.
The Project shall retain the services of the Commission on Audit (COA) to examine its accounts,
records and financial statements. The records of the NPCO shall be audited annually in
accordance with sound auditing principles by auditors whose qualifications and terms of
reference are acceptable to ADB. Nine months after the close of the Project, ADB shall be
furnished with the auditor’s report on the consolidated Project accounts and financial
statements, which will include the auditor’s opinion on the use of the loan, compliance with
financial covenants and the provision of counterpart funds.
166. The audit report shall contain certified copies of audited accounts and financial
statements and the report of the auditors relating to these including their opinion on the use of
the loan proceeds as well as on the use of the procedures for imprest account in English
language. A sample form of auditor’s opinion is in Appendix 13.
E. Stakeholder Communication Strategy
167. Results of the poverty reduction and social assessment underscore the need for a
Consultation and Participation plan. C&P increases the level of support for an ADB-assisted
activity from a range of stakeholders, which can speed up processing and reduce challenges
during implementation. More generally, C&P improves the effectiveness, relevance, and
sustainability of development activities. It contributes to good governance, economic growth,
and the empowerment and social inclusion of disadvantaged groups. ADB recognizes that C&P
is a process through which stakeholders influence and share control over development
initiatives, and the decisions and resources that affect them. ADB works on four different levels
of C&P to engage groups that have an interest or stake in its operations. It has been determined
through this assessment that the identified vulnerable stakeholders require a C&P plan that will
in the end empower them even beyond INREM for sustainability.
70
168. It is in this context that a C&P plan is proposed highlighting the need to transpose such a
plan into a more operable Communications Plan. The very basic tenets of natural resource
management and poverty reduction have to be addressed. The assessment shows for instance
that there are information gaps in the mental constructs of stakeholders, made evident in their
mapping of root-cause analysis of their plight and problems they are faced with. The
C&P/Communications Plan intends to tackle these basic elements prior to the conduct of
investment activities across stakeholder groups; the institutional stakeholders on to the
vulnerable.
1. Rationale for a Communication Plan

169. The ADB Public Communications Policy seeks to encourage the participation and
understanding of people and other stakeholders affected by ADB-assisted activities. Information
on ADB-funded projects should start early in the preparation phase and continue throughout all
stages of project development, in order to facilitate dialogue with affected people and other
stakeholders. The EA should, as necessary, develop a project communications plan and
designate a focal point to maintain contact with affected people. With respect to land acquisition,
compensation and resettlement, information should be distributed to affected peoples (APs) and
publicly in the following manner: (i) prior to loan appraisal, the draft Resettlement Plan (RP); (ii)
following completion of the final RP, the final RP; and, (iii) following any revisions, the revised
RP. This information can be in the form of brochures, leaflets or booklets, in the local
language(s) as well as English, the working language of the ADB. When APs include non-
literate people, other appropriate methods of communications will be used.
170. Communication therefore is central enable meaningful participation that can lead to
stakeholder empowerment, which INREM aspires for. Without a well-planned course of action,
communication is fragmented, unfocused and highly reactive and results in waste of efforts and
resources. INREM therefore requires a coherent communication strategy as it engages in
different consultation and participation activities necessary to operationalize Project
components. There are also Project imperatives like the IP Plan (IPP), LARP, Gender Action
Plan (GAP), and Environmental Management Plans (EMP) that prescribe corresponding
consultation and participation strategies. All these would have to be consolidated into one plan:
the INREM Communication Plan.
171. General messages have to be communicated related to INREM overall objectives

directed to stakeholders at large. It is necessary for INREM to create its “corporate identity” that
makes it different from other initiatives especially with efforts convert watershed management
units into corporate entities taking charge of investments. Specific messages will likewise be
directed towards different and specific stakeholder groups as required by the LARP and IPP in
particular. At times, messages may emanate from within, as when the NPCO and its line-
implementing units have to be synchronized in its actions and understanding. For these
reasons, a communication plan is necessary.
2. The INREM Communications Plan

172. Objectives. The Project intends to: (i) Build the base of the Project implementers and be
effective partners in the management of watershed resources in the Upper River Basin (URB);
(ii) Support policies that enable smooth INREM implementation; (iii) Enhance awareness of
stakeholders/target audiences of the Project and to envision it as a source of authoritative
information in resource management; (iv) Increase appreciation of the Project’s priority
activities, policies and modalities in resource and land use management regimes; and (v)
71
Provide the appropriate IEC for desired behavioral change thus the need - to inform, to
convince, and to educate.
173. Based on Project components and demands, the communication modalities that are
needed fall under the following major classes:
a. Internal Communication – This aims to address communication requirements
within the Project implementing units at all levels to enhance the quality of work and
enable them to interact effectively with people outside the Project/institution on the basis
of a shared foundation about INREM;
b. Technical Communication – As INREM provides the required technical inputs to
land and resource management using advanced technologies and methods, these have
to be communicated to local stakeholders for their appreciation in order to rationalize
and harmonize land use classification and zoning for instance. Such an undertaking
should not compromise technical merits nor should local knowledge be overlooked.
Technical communication therefore focuses on technical and policy information
dissemination between Project experts and their counterparts in local governments,
intergovernmental organizations, NGOs-POs-IPOs, and research and academic
institutions.
c. Advocacy and Public Communication – It is desired that at Project
implementation greater understanding of, and build up support for INREM activities and
policies, especially among the common public, decision-makers and potential partners
will be generated.
d. Development Support Communication – Transfer of technology, for example
conservation farming and PES, are focused on delivering technologies and information
to the vulnerable sectors for them to fully participate in Project activities. The
development of IEC would have to emanate from stakeholder-preferred modalities.
174. Lastly, leeway should be provided for the development of new tools, especially in: (i)
Communication audit to evaluate current communications as an input for succeeding annual
communication planning; (ii) URB communication M&E as the tool that will measure the results
delivered through various communication strategies and channels by the different implementers
vis-à-vis the national plan, and (iii) for public disclosure. All communication activities and
products developed by the participating groups will have to be reviewed at the URB level and
holistically at the NPCO level in order to evaluate the objectives and determine the best strategy
to be used. The Communications Plan should provide quality control to ensure a sharp and
unified focus in the dissemination of information, thus preventing conflicting, confusing and
fragmented messages to all stakeholders. Details of the Plan are presented in Appendix 14.
X. ANTICORRUPTION POLICY
175. ADB reserves the right to investigate, directly or through its agents, any violations of the
Anticorruption Policy relating to the Project.21 All contracts financed by ADB shall include
provisions specifying the right of ADB to audit and examine the records and accounts of the
executing agency and all Project contractors, suppliers, consultants and other service providers.
Individuals/entities on ADB’s anticorruption debarment list are ineligible to participate in ADB-
financed activity and may not be awarded any contracts under the Project.22
21
Available at: http://www.adb.org/Documents/Policies/Anticorruption-Integrity/Policies-Strategies.pdf
22
Available at: http://www.adb.org/Documents/Policies/Anticorruption-Integrity/Policies-Strategies.pdf
72
176. The project design and implementation arrangements provide for mitigating corruption
risks. Risks associated with project management, including procurement and funds flow, will be
mitigated by using national, local, and field participatory management to improve transparency
and accountability in project administration. The proposed cost-sharing arrangement will
motivate LGUs to strive for economy and efficiency in project implementation. Specific risks and
the corresponding proposed ADB actions and indicators as presented in the Table below.
Risk Assessment and Risk Management Plan
Assessment Assessment
Without with
Risks Mitigation Management Plan Mitigation
Mainstreaming Medium (i) The project will pursue alignment with the Low
institutional convergence government’s Rationalization Plan expressed
under a decentralized in the Republic Act 7160, the Local
natural resource Government Code (1991) and the Joint
management framework DENR-DILG Memorandum Circular 2003-01.
might encounter (ii) LGU management of production areas
resistance from the under co-management regimes with the
national government, DENR will be pursued as part of the phased
particularly the DENR, devolution under the project, with DENR
and potentially also from shifting from the role of primary implementer
local communities to a facilitation and mentoring role with LGUs.
LGU stewardship of production areas, as part
of phased devolution, will ensure that local
communities and IPs are not displaced by
outside investors. Investment contracts will
be tailored to ensure that investors partner
with local people for production activities in
these areas.
(iii) Project activities will be integrated with
the planning, budgeting and performance
management system of DENR's major final
outputs under the Organizational
Performance Indicator Framework (OPIF)
established by the Department of Budget and
Management (DBM) as part of the
government’s results-based management
framework for sectors.
(iv) Business development capacities of
LGUs to establish livelihood enterprises and
capacities for land use planning as part of
LGUs comprehensive land use plans will be
strengthened during project implementation.
Budgetary support from Medium Budgetary allocations from the DBM will be Low
the national and local secured, including tagging of funds. Municipal
government might resolutions (Sanggunian Bayan) will be
dwindle over time secured to serve as binding agreements on
counterpart commitments and allow for
internal revenue allotment guarantee (or
‘intercept’) from the DBM to LGUs.
Political situation in some High In areas where peace and order instability Medium
subproject sites may persists, project activities will be suspended
worsen as a result of until peace prevails. Activities in other sites
May 2010 election will continue as scheduled to optimize project
outcomes in other areas. In parallel, the
73
Without with
project will pursue enhanced delivery of
services through policy dialogue, conflict
mediation, and coordination with local
government authorities and development
partners through the Philippine Development
Forum working group on rural development. If
political uncertainty persists and/or conditions
worsen, alternate watersheds may be
considered consistent with subproject
identification criteria. Such changes will be
made prior to undertaking any land use and
capability assessments. Any change in river
basin will need to be endorsed by ADB.
Revenue streams from Medium (i) Revolving funds will be established to Low
local PES mechanisms provide seed capital requirements. The
are not realized revolving funds will have flexible financing
schemes for project beneficiaries and will
consider their repayment capacities. The
implementation of PES will be
institutionalized through local ordinances or
agreement of parties.
(ii) An economic survey will be conducted to
estimate the demand for ecosystems services
provided by the river basins. The results of
the economic studies will be presented to (a)
various stakeholders of the watersheds,
including the local government councils, for
the possible issuance of council resolution
and ordinance to institutionalize PES in their
jurisdiction; or (b) the beneficiaries of
ecosystem services (including hydropower
plant operators, irrigation system
associations, water districts, and ecotourism
operators) for possible agreement on PES
schemes.
Governance. Poor Medium ADB’s Anticorruption Policy (1998, as Low
governance and amended to date) will be explained and
corruption may distort discussed with the DENR central, regional
the process of and provincial offices (as part of its
development and have a responsibility as executing agency) and with
disproportionate impact DA, and MDFO (as implementing agencies).
on the poor. The project design and implementation
arrangements include provisions for
mitigating corruption risks. Risks associated
with project management, including
procurement and funds flow, will be mitigated
by using national, local, and field-level
participatory management to improve
transparency and accountability in project
administration. The proposed cost-sharing
arrangement will motivate LGUs to strive for
economy and efficiency in project
implementation. ADB will closely review the
74
Without with
performance of the executing agency and
implementing agencies in terms of
governance through project monitoring ,
including during review missions.
Procurement and High (i) Advance contracting for capacity building, Low
Financial Management including tailor-made training and refresher
Capacities at DENR, packages on financial management,
MDFO. Insufficient disbursement and procurement of
capacity and/or subprojects will be provided during pre-
inefficiencies in DENR implementation and project start-up ;
and LGU procurement (ii) Full-time staff shall be assigned for (ii)
and liquidation financial management and contract
processes delay administration at the DENR Central,
implementation Regional and Provincial Office;
(iii) Two to three consultants will be
assigned at the MDFO to assist in
coordinating/processing and monitoring
LGU submissions; and coordinate with
the regional and provincial Commission’s
on Audit (COAs) for timely submission of
audited financial statements
(iv) Standard National Competitive Bidding
(NCB) documents for works and goods
will be drafted during pre-implementation
and will be approved by ADB.
(v) Procurement will be aligned with
processes prescribed under the Republic
Act 9184 and the customized
Procurement Manual adopted under
DENR AO 2007-08 and integrated within
the DENR’s Bids and Awards Committee
at all government levels.
Physical Risks. Extreme Medium Project investments in forest management, Low
weather events reforestation, and conservation farming
(excessive rainfall or address potential climate impacts. GEF and
extended periods of ADB’s Climate Change Fund (CCF)
drought) impact investments address climate change
negatively on natural adaptation and mitigation in project
regrowth of vegetation watersheds, including (i) demonstration
and consolidation of activities for carbon emission reductions
biodiversity and related to REDD, including forest protection,
ecosystem services agricultural intensification, community forest
(nonstabilization of water management, and commercial forest
flows downstream) management; (ii) pilot application of more
efficient technology for private sector
charcoal production in Bukidnon (based on
sustainably managed tree plantations for a
continuous retort process) to mitigate the
production of greenhouse gases; and (iii)
installing stream flow instrumentation within
upper river basin river systems to monitor
changes in hydrological flows and proactively
implementing mitigation measures.
75
Without with
Overall Medium Low
ADB = Asian Development Bank, DA = Department of Agriculture, DBM = Department of Budget Management,
DENR = Department of Environment and Natural Resources, DILG = Department of the Interior and the Local
Government, GEF= Global Environment Facility, LGU = local government unit, MDFO= Municipal Development Fund
Office, PES = payment for environmental services, REDD = Reduced Emissions from Deforestation and Degradation.
177. ADB’s Anticorruption Policy (1998, as amended to date) will be explained to and discuss
with the EA and IAs. Following ADB’s governance and anticorruption policies and Second
Governance and Anticorruption Action Plan (2006), EA and IAs shall mitigate governance and
corruption risk by improving financial management, strengthening procurement systems, and
combating corruption through preventative enforcement and investigative measures, throughout
project implementation. ADB will review EA and IAs’ performance in terms of governance
through project administration including review missions
XI. ACCOUNTABILITY MECHANISM
178. People who are, or may in the future be, adversely affected by the project may address
complaints to ADB, or request the review of ADB's compliance under the Accountability
Mechanism.23
XII. RECORD OF PAM CHANGES
179. All revisions/updates during course of implementation should be retained in this Section
to provide a chronological history of changes to implemented arrangements recorded in the
PAM.
23
For further information see: http://compliance.adb.org/.
76
Appendix 1
APPENDIX 1. IMPLEMENTATION ARRANGEMENTS
I. Implementation Arrangements
A. National and Regional Implementation Arrangements
1. The Department of Environment and Natural Resources (DENR) will be the Executing
Agency (EA) and assume full supervision and responsibility in the administration and
management of the Project. An interagency National Project Steering Committee (NPSC),
chaired by a DENR Undersecretary, will be established at the DENR Central Office (CO) to
provide policy guidance for the smooth implementation of the Project. It will be composed of
Undersecretaries from the Department of Agriculture (DA), Department of Agrarian Reform
(DAR), Department of Budget and Management (DBM), Department of Interior and Local
Government (DILG), senior-level representatives from the National Economic and Development
Authority (NEDA), National Commission on Indigenous Peoples (NCIP), Chairmen of the
League of Provinces and representatives of Leagues of, Municipalities and Cities within the
project regions.
2. Other implementing agencies will be Municipal Development Fund Office (MDFO) and
Department of Agriculture (DA). MDFO will administer the funds for rural infrastructure
improvements which will be implemented by the municipal LGUs except for those covered by
the Cordillera Highland Agricultural and Resources Management (CHARM) Project which will be
administered by DA.
3. A National Project Coordination Office (NPCO)1 will be the main Project implementing unit
of the DENR as Executing Agency. It shall lead and oversee implementation of all Project
components in collaboration with various operating units within the DENR and its attached
agencies, the Local Governments concerned, Peoples’ Organizations (POs), Civil Society
Organizations CSOs and Indigenous Peoples’ Organizations (IPOs), and in close coordination
with the oversight agencies and the ADB on matters relating to loan/grant reviews and
disbursement of loan/grant proceeds. It will act as Secretariat to the NSPC. NPCO shall be
based the DENR- Forest Management Bureau (FMB). The DENR- FMB Director shall be
designated as Project Manager to head the NPCO. The Project Manager may be part-time, in
which case a full-time Deputy Project Manager of at least Director III or equivalent grade shall
be designated or a full time staff consultant shall be hired as NPCO Deputy Project Manager.
4. The NPCO, being the lead Project Manager in behalf of DENR, shall (i) have overall
coordination functions for the Project; (ii) ensure the timely provision of logistics for all aspects
of Project implementation; (iii) lead the conduct of necessary policy analysis and policy
adjustments; and (iv) mobilize resources for the capacity-building requirements of LGUs for
URB planning and implementation.
5. The NPCO shall be assisted by an inter-agency Technical Working Group (TWG) of
senior staff from relevant agencies who will coordinate their respective agencies’ work in
support of INREM implementation, and to provide the necessary interagency linkages and
coordination. The TWG will be chaired by the NPCO (Deputy) Project Manager and; co-chaired
by the member-representative from Protected Areas and Wildlife Bureau (PAWB). The inter-
agency TWG shall be composed of designated senior staff from National Economic and
Development Authority (NEDA), Department of Agriculture (DA), Department of Agrarian
Reform (DAR), National Commission on Indigenous Peoples (NCIP), Municipal Development
1
All DENR Project units at all levels shall be composed of seconded regular staff of appropriate expertise. Depending on the
needed workloads and expertise as identified by the respective project coordinators at various levels, these staff may be
seconded as full-time or part-time. This is to ensure institutionalization of Project skills and expertise that will be developed.
Additional contractual staff may be engaged only if the skills required are not available within the DENR.
Appendix 1
Finance (MDFO-DOF), Department of Budget and Management (DBM), Department of Interior

and Local Government (DILG), National Irrigation Administration (NIA), Watershed Management
Department of the National Power Corporation, National Water Resources Board (NWRB),
Remote Sensing and Resources Data Analysis Department (NAMRIA), and other DENR Offices
concerned (EMB, PAWB, LMB, MGB, ERDB, FASPO, Field Operations Office, Finance
Management Service, Planning and Policy Service Office, DENR-CARP Secretariat, and
RBCO).
6. A pool of Project Consultants2 commissioned by the Project shall provide services for: (a)
developing the technical expertise in DENR, other NGA, and LGU staff to scientifically guide
policy-makers and ENR stakeholders in managing river basin and watershed resources; (b)
establishing the knowledge-based decision-support systems and Information infrastructure for
environment and natural resources management in river basin context. The Project Consultants
shall be nominally based at the NPCO and shall be under the administrative supervision of the
Project Manager. They may be deployed to assist the various project coordinating units at the
regional, provincial and municipal levels, as well as at the project-site levels, as necessary.
7. The NPCO shall lead in implementing Project Component 1: River Basin and Watershed
Planning. In the conduct of Land Use Assessment, Land Capability Analysis, and Management
Planning for River Basin and Watershed, the NPCO, with inputs from the TWG and the
Consultants, shall provide the technical parameters and guidance to NAMRIA, the DENR
Regional Offices, and the LGUs and other stakeholders, to undertake this Project component.
The NPCO shall mobilize and deploy the technical expertise of the various DENR bureaus and
offices in support of the Regional Offices and LGUs. (Illustrated in Appendix 1 Section II)
8. Foreign Assisted and Special Projects Office (FASPO) and the Financial Management
Service (FMS) of the DENR shall coordinately administer the Project funds and accounts.
FASPO, through its Accounts Management Division, shall be responsible for the preparation
and/or consolidation and submission of Withdrawal Applications (WAs) and SOEs to ADB.
Through its Procurement Unit, FASPO shall be responsible for the timely procurement of goods,
works and services, including consultancy services, for the Project. FMB shall assign
counterpart staff in FASPO, Procurement Unit to coordinate INREMP’s procurement
requirements with NPCO.
9. FASPO shall initiate preparatory activities, including those indicated in para 13. It shall
coordinate with FMB for the identification and designation of staff to compose the NPCO and
cause the issuance of the appropriate department orders.
10. FMS, in coordination with FASPO and NPCO, shall be responsible for the preparation and
submission of the Project’s annual, multi-year budget proposals and requests for release of
Allotment Advices and Notices of Cash Allocations to DBM. FMS shall download funds to FMB
(NPCO), DENR Regional and Provincial offices and other implementing units, upon
recommendation by the NPCO.
11. At the level of the Regional Project Coordination Office, the DENR sectoral services
(Forestry, Protected areas, wildlife and coastal zone management, Ecosystems research and
development, Lands management) and the line bureaus – Environmental Management and
Mines and Geosciences – together with the DENR Regional Planning and Management Office,
Regional GIS Unit, and Regional Forest Information Systems Unit shall undertake Land Use
Assessment, Land Capability Analysis, and Management Planning for the Project river basins
and watersheds (WP 6: Land Use Assessment, Land Capability Classification, Zoning and
Delineation, see Appendix 1 Section III). The Regional Forest Management Service Office will
2
See Appendix 9. (Or refer to INREMP PPTA reports for recommended consultant and expert requirements.)
78
Appendix 1
be the focal point for coordinating all related work of the various DENR regional office units and
the PENROs and CENROs concerned in this regard.
12. The Regional Development Councils shall provide policy guidance for the Land Use
Assessment, Land Capability Analysis, and Management Planning work by ensuring (i) that the
analyses and land management planning processes are consistent with the regional
development objectives; and (ii) the process and the outputs are legitimized by RDC supporting
decisions.
13. NAMRIA shall define the specifications of the satellite imageries and other data
requirements for proper procurement. It shall analyze satellite imageries, compile and analyze
relevant GIS data for the river basins and watersheds, prepare maps, and develop the
necessary resource information databases for the Project. The DENR Regional Offices, through
their Forest Land Evaluation Parties (LEPs) shall undertake the necessary ground surveys,
resource inventories and validation based on guidelines and standards provided by NAMRIA. In
case the technical resources of NAMRIA and the Regional Offices are insufficient to provide the
required analyses and information in a timely manner, other technical or professional
organizations with like expertise shall be contracted to augment and complement the expertise
pool required. The Project will provide technical consultants and experts to guide this process.
14. Preparatory Activities. The Project will therefore support establishment of the NPCO at
DENR tasked to implement key preparatory activities to ensure that capacities of the
implementing units are in place prior to project start. The NPCO, together with the FASPO, will
mobilize the project staff, initiate consultant recruitment, setup Project organization at national,
regional, provincial and municipal levels, as well as start the procurement of materials, satellite
data, office equipment, facilities and consulting services. Enabling mechanisms will have to be
established with active participation of the NPSC/TWG/NPCO, FASPO, NAMRIA and RO focal
persons. A Project Operations/ Administrative Manual will be prepared.
15. Aside from administrative operational concerns, an URB/Watershed Management Manual
will be prepared. Said manual recognizes the need to formulate and adopt standards and
guidelines to ensure consistent and effective implementation of INREMP processes and
procedures. Enabling mechanisms include but are not limited to (i) Project goals and objectives;
(ii) target outputs and accomplishments; (iii) criteria/standards, specifications and guidelines for
land use and land capability assessment; (iv) criteria and procedures for LGU participation; (v)
criteria for acceptability of Upper River Basin Management Plans (URBMPs) and Watershed
Management Plans (WMPs), (vi) criteria for selection of consultancy services, service providers
and partners; and (vi) guidelines for the establishment and operation of PINREM-Cs, PPMOs
and WMPCOs, including minimum criteria for evaluation of subprojects).
B. Implementation Arrangements at the River Basin Level
16. Selection of the four river basins was based on their representative biophysical conditions,
socioeconomic and conservation values, taking account of installed water management
infrastructure, the state of land and forest degradation. Final selection of the four river basins
was largely anchored on availability of river basin-wide data. All four river basins have existing
river basin-wide and comprehensive management plans currently requiring updates and
refinement with tools and methods the project has to offer. In the case of Bukidnon, the
provincial government implements all investments as generated through each watershed, which
has management plans as managed by its respective watershed management councils.
Further, unique to Bukidnon is the ongoing ADB Capacity Development Technical Assistance
that technically and socially prepares the province for INREMP implementation.
79
Appendix 1
17. River Basin-Wide Activities. Upper River Basin Management Plans (URBMPs) will be
developed for the four URBs to be adopted by Regional Development Councils (RDCs) and/or
Provincial Legislative Councils. Provincial LGUs (P/LGUs), as coordinated by their respective
Provincial INREM Councils (PINREM-C) shall spearhead URB management planning. The
Provincial Project Management Office (PENRO-PPMO) at the DENR PENRO shall be the
technical arm of the P/LGU and the PINREM-C. It is the repository of the data generated in the
land use assessment and land capability analysis; it shall manage these data through the
provincial node of the INREMP GIS database, which is based at the PENRO-PPMO. (See
Appendix 1. Section V. GIS Mapping, Modeling and Database Development) The technical
inputs to this river basin and watershed management planning process are the resulting
analyses and information generated in the Land Use Assessment and Land Capability Analysis.
The URB management planning process shall be fully participatory in nature, involving all river
basin stakeholder sectors (communities, barangay and municipal governments, peoples’
organizations, relevant CSOs, indigenous peoples’ groups and councils, etc.) and relevant
government agencies. Where necessary, participatory planning facilitators shall be contracted
by the Project to assist the PLGUs. Technical consultants will also be provided by the Project.
18. The URB Management Planning process shall lead to the development of river basin and
watershed management plans that are consistent with the government’s Integrated Watershed
Ecosystems Management Framework as operationalized by the INREM Strategy, which is at
the core of this Project. All local governments concerned and the necessary local legislations
shall formally adopt the management plans and ordinances shall be enacted by the LGUs to
enforce the management plans.
19. Specific river basin-wide activities related to the development of URBMPs are: (i) Baseline
survey/assessment for the Project; (ii) Capacity building needs assessment in the PA, and
initiation and completion of concerned staff enhanced through capacity building programs; (iii)
Development of geographical information system-based database including the training of staff
and operations manual for the DENR Central and Regional staff and Provincial local
government unit staff; (iv) Development of TE-IEC program for each selected RB; (v) Remote
sensing data acquisition and analysis for natural resources for land use assessment and
groundtruthing for field verification; (vi) Land capability and participatory land use classification,
zoning, approval, and adoption; (vii) Design and commissioning of research and studies on
various aspects of INREM including climate change related aspects; (viii) Development and
adoption of Guides and Manuals on climate change mitigation and adaptation; (ix) Development
and operation of Monitoring and Evaluation system linked to GIS database to monitor Project
progress; and (x) Preparation of URBMPs including private sector participation, based on
inventories and analyses for conservation areas and buffer zones to support downstream
investments, taking into account results of analyses and studies
20. Further, project implementers and other key stakeholders, on a river basin-wide scale,
shall be trained/capacitated as regards land use assessments and watershed
management/planning and livelihood enhancement through conservation farming. Box 1 shows
the capacity building program.
BOX 1. INREMP Capacity Building

I. Preparatory Orientation and Workshops
A. Institutional and policy support: national - B. Institutional and policy support: local - Institutional
Institutional and policy support: and policy support: national and local levels
national/regional levels (province-based)
1. Orientation (includes safeguards) - for central, 1. Orientation on INREM - Provincial venues, for LGUs
regions, and Provinces (Bukidnon, Misamis and stakeholders
Oriental, Lanao del Sur, Bohol, Apayao, 2. Consensus building and dispute resolution: Consensus
80
Appendix 1
BOX 1. INREMP Capacity Building

Banguet, Ifugao, Kalinga, and Mt. Province) building and alternative dispute resolution for
2. Trainers training on phased implementation - DENR/DA, and LGUs
Trainers training on phased implementation of 3. Enforcement program and local legislation for LGUs
INREM 4. LGU enterprise management - Local government
3. Legislative agenda and policy adjustment - for enterprise management
DENR/DA
C. Preparation for LUA and URB D. Assistance in project financial management and
Management Planning - Land use procurement
assessment and upper river basin 1. Project disbursement and procurement for (i) DENR
management planning national and regional; DENR national and regional staff
1. Use of GIS for ENR A, M&E - Basic and and (ii) LGU level workshops: Provincial and municipal
advanced GIS and applications to staff
environment and natural resources 2. Project planning and budgeting management for (i)
assessment, monitoring, and evaluation for DENR national and regional; DENR national and
each of the 23 watersheds regional staff, and (ii) LGU level workshops; Provincial
2. Land use planning for LGUs - Land use and municipal staff
planning for LGUs held for each of the 23 3. Project mid-term workshop: Taking stock of project
watersheds implementation progress: problems and proposed
3. Community mapping and land use zoning - solutions and changes -- prior to midterm evaluation
Community mapping and land use zoning review; (i) DENR national and regional staff, and (ii)
(watershed level) for LGUs held for each of LGU level workshops: Provincial and municipal staff
the 23 watersheds
4. Assistance for IP planning - Assistance for
IPs in planning and INREM integration, held
for each of the 23 watersheds
5. Assistance for social assessment for or each
of the 23 watersheds
E. Technical extension and IEC - G. Capacity Building in Watershed Management -
Presentation/review of site-specific technical GEF- Funded Capacity Building on Watershed
studies for dissemination at the local level Management
1. National level - Site-specific studies and 1. Awareness raising /Info Campaigns for PES
applications 2. Technical Training on ANR/ Enrichment Planting for
2. River Basin level - Site-specific studies and Biodiversity
applications 3. PES Training - For Chico and other URBs
F. REDD Capacity Building 4. IPO Revolving Fund
5. Financial Management Training for IPOs Revolving
Fund
6. GIS Training for Participatory Planning/ Monitoring
7. Training of Trainers/Community Based Information
Sharing
8. LULUCF Capacity Building Activities: Climate Change
and LULUCF Sustainable energy production
II. Livelihood Enhancement thru conservation farming: Chico, Wahig-Inabanga, Upper Bukidnon, and
Lake Lanao
A. Hands-on Training cum practicum B. Training on compost making and vermiculture
1. Natural Vegetative Strips
2. Bio-Intensive Gardening/Organic Vegetable C. Provision of Inputs for technology
Farming replication/upscaling for deserving vulnerable
3. Masipag Rice Technology farming households
4. Agro-forestry (intercropped with cash crops):
Agro-forestry with 70:30 ratio (70% fruit trees
and 30% perennial trees)
5. Community nursery establishment
81
Appendix 1
C. Implementation Arrangements and Phased Approach at the Watershed Level
21. At the Watershed level and investment stage, the project approach shall be phased: (i)
Implementation within Core Watersheds and (ii) Upscaling to other Watersheds within the River
Basins. Project implementation after river basin-wide planning shall initially be limited to the four
core watersheds assessed during the Feasibility Study. These core watersheds were: (i) scoped
out for subprojects; (ii) assessed to have watershed management plans in place and/or in
an advanced preparation stage; (iii) the focus of detailed stakeholder sensitization and
orientation and capacity needs assessments, including LGU implementation and fiscal
capacities.
22. Table A1.1 shows the core watersheds per river basin along with the covered
municipalities.
Table A1.1 Core Watersheds and Covered LGUs
River Basin/Sub- Estimated Covered
Region Province
Watershed (SWS) Area (ha) Municipality / City
BUKIDNON
Manupali-Kitanglad 50,957 3
X Bukidnon Lantapan
Bukidnon Talakag
Bukidnon Valencia City
CHICO
Bauko 30,111 6
CAR Mt. Province Sabangan
Mt. Province Bauko
Mt. Province Sagada
Mt. Province Bontoc
CAR Ifugao Tinoc
Ifugao Hungduan
CAR Benguet (Buguias)
LAKE LANAO
Bubong 19,546 6
ARMM Lanao del Sur Bubong
Lanao del Sur Ditsaan Ramain
Lanao del Sur Maguing
Lanao del Sur Marawi City
Lanao del Sur Mulondo
Lanao del Sur Taraka
WAHIG-INABANGA
Wahig-Pamacsalan 13,889 5
VII Bohol Duero
Bohol G. Hernandez
Bohol Jagna
Bohol Pilar
Bohol Sierra Bullones
TOTAL 114,503 4 6 20
Phase 1. Implementation within Core Watersheds

23. At the municipal level, the four core watersheds straddle across administrative
boundaries of several municipalities. A multi-sectoral Watershed Management Council (WMC)
shall be established in each core watershed. The WMC shall be the forum for arriving at
consensus on land use and natural resource-based investments within their watershed.
82
Appendix 1
24. The administrative and technical focal point for the project at the watershed level is the
Watershed Management and Project Coordination Office (WMPCO) based at the DENR-
CENRO. This office will oversee the implementation of project activities and demonstration
projects by Communities and Organizations (CBOs, IPs, POs, NGOs, Private Sectors, and
Institutions). Its administrative operations shall be guided by the DENR functional rules
regarding INREMP. In terms of prioritizing projects, locating project investments sites and
similar concerns, the WMPCO shall closely coordinate with the M/LGUs in the watershed, and
the Watershed Management Council, particularly in cases where conflicts among stakeholders
occur.
25. LGUs shall mobilize technical resources at the provincial and municipal levels (e.g., LGU
planning and development offices, provincial and municipal agriculture offices, LGU
environmental management offices, engineering departments, etc.) in support of on-ground
INREM project implementation. The Project will support incremental operating requirements of
these LGUs in this regard.
26. Core-Watershed Management and Planning Activities. Watershed Management
Plans (WMPs) will be prepared for the four core watersheds based on the URBMPs. WMPs will
define and prioritize subprojects and establish a work program for implementation by LGU
clusters and Municipal Development Councils. WMPs will take account of existing tenurial
arrangements and treat Ancestral Domains (AD) as management sub-units.3
27. Activities under watershed management planning may commence at the start of URB
management planning. Specifically, the setting up of LGU level organizations may be done
since initial mobilization shall have been included at preparatory stage. Key activities under
watershed management planning within the four core watersheds are:
(i) Land capability and participatory land use classification, zoning, approval, and
adoption
(ii) NPCO, DENR Field Offices and LGUs to set up LGU level organizations;
(iii) Enabling legislative instruments as prescribed in the URBMPs shall be issued,
including appropriate tenure and payment for environmental services, for local
community participation in INREM;
(iv) Delineation and demarcation of forest boundaries, buffer zones, and land
management zones based on URBMP prescriptions and zoning in the four core
watersheds; and,
(v) Implementation of TE-IEC in the four core watersheds.
Core Watershed On-Ground Investments.

28. Subproject investments will be undertaken within the four core watersheds based on
outputs from river basin-wide planning. Interventions for watershed restoration and rehabilitation
will be implemented by DENR to include community based protection, reforestation and/or
assisted natural regeneration, production forestry including demonstrations on agroforestry and
commercial plantations, and conservation farming (refer to Appendix 1 Section VI for the details
of conservation farming).
29. Livelihood enhancement investments to be undertaken by Municipal LGUs include rural
access roads and foot trails, communal irrigation systems, potable community water facilities,
and provincial trading/processing center supporting farming communities. Detailed description
of the Implementation Arrangements for Rural Infrastructure is presented in Appendix 1 Section
30. The menu of possible INREMP subprojects are:
3
As defined in the Indigenous Peoples Right Act (IPRA) 1997.
83
Appendix 1
(i) Forest rehabilitation and protection

(ii) Sustainable forest management
(iii) Agroforestry
(iv) Commercial plantation
(v) Conservation farming
(vi) Rural access infrastructure, foot trails, and 1 provincial trading center
(vii) Improved Communal Irrigation Systems
(viii) Potable Water Supply units
31. Prior to subproject implementation, the following conditions will have been satisfied:
(i) LGUs within the core watersheds are clustered evidenced through a memorandum
of agreement;
(ii) Site identification for the subproject is consistent with prescriptions in the URBMPs
and the WMP;
(iii) Social mobilization and capacity building related to the subproject being proposed
have been conducted at the community level and the necessary community
organization is in place;
(iv) While it is not necessary that the WMP is already approved and adopted,
subproject feasibility studies are prepared, submitted, assessed and approved;
(v) Proof that the MLGU, Barangay Officials and communities were actively involved in
the selection and approval process and in the case of rural infrastructure, willing to
put up the required equity contribution and agree to maintain the completed
facilities; and
(vi) Investment sites must be free from social and environmental problems and issues,
or alternatively feasible mitigating measures will have to be provided.
Phase 2. Upscaling to Other Watersheds
32. Scaling up and/or replication into additional watersheds will depend on (i) demonstration
of progress in the 4 watersheds provide the necessary learning’s for scaling up. In particular,
completion of the core watershed management plan and conduct of social mobilization and
capacity building within the core watershed have been completed; (ii) Should several LGUs
constitute a watershed, these LGUs agree to cluster through a memorandum of agreement and
individually, their respective Chief Local Executives are signatories to the adoption of the
URBMP; If there is only one LGU within a watershed, that LGU must have been a signatory to
the URBMP adoption; (iii) Capacity building and social preparedness activities have been
conducted in the target watersheds; and (iv) other implementation considerations, including
subproject conditionalities stipulated for the core watersheds.
33. In particular, the following triggers should be met during the implementation of the initial
phase before expansion and/or scaling up into additional watersheds shall have been
completed:
(i) LGU adoption of URBMP
(ii) Completion of the core WMP
(iii) WMC created and functional; LGUs clustered
(iv) PO/IPO accreditation and organizational capacity development
(v) Capacity building for watershed management and planning and livelihood
development conducted
(vi) LGUs that constitute core watersheds cluster through a memorandum of
agreement
(vii) Chief Local Executives of core watershed LGUs are signatories to the adoption of
the URBMP
84
Appendix 1
(viii) Capacity building and social preparedness activities on livelihood and FS

development
(ix) Subprojects are compliant to prescriptions and siting with respect to URBMPs
(x) LGUs and communities actively involved in subproject FS preparation, selection
and approval
(xi) LGU willingness to put up required equity contribution and agree to maintain
completed facilities
(xii) Compliance to safeguards (Environment/subproject siting, resettlement, and
indigenous peoples)
34. Arrangement and criteria for review. Inasmuch as the administrative and technical focal
point for the project at the watershed level is the Watershed Management and Project
Coordination Office based at the DENR-CENRO, it has to closely coordinate with the M/LGUs in
the watershed, and the Watershed Management Council. These bodies will work towards
compliance of project progress.
35. The technical resources of the P/LGUs and the M/LGUs (e.g., LGU planning and
development offices, provincial and municipal agriculture offices, LGU environmental
management offices, engineering departments, etc.) are expected to be mobilized by the
respective LGUs in support of on-ground INREM project implementation.
36. The regional office in close coordination with the provincial project office will lead the
review on the implementation progress. NPCO/consultants & other GAs will act as oversight to
provide the necessary objectivity.
37. The following review criteria will be used at the end of the initial phase to assess
implementation progress and compliance with the pre-determined triggers for expansion and/or
scaling up into additional watersheds:
(i) LGU clustering and adoption of URBMP
(ii) Level of WMP development
(iii) Organizational development of WMC and IP/IPO
(iv) Extent of social marketing/ Consultations
(v) Trainings conducted
(vi) Subproject FS prepared, approved and implemented/ Compliance to URBMP
(vii) Subprojects free from social and environmental problems/issues, or feasible
mitigating measures be provided
38. Field implementation of subproject activities as detailed in the URBMPs will be continued
and more specifically identified in subproject feasibility studies following the same procedure
and timing as in the subprojects in the four core watersheds.
D. Implementation Schedule
39. All preparatory activities shall be completed by Year 1 inasmuch as all river basins have
existing river basin-wide management plans and that the INREMP feasibility study already
developed indicative management prescriptions that will be subject to updating and refinement.
River basin management planning activities shall commence on Year 1, for completion by Year
2.
40. Watershed management planning of the four core watersheds as well as the other non-
core watersheds may start simultaneously with the URBMP preparation given that these
watersheds constitute the URBs. It is however acknowledged that DENR and LGU capacities in
different URBs may vary: some may be proactive, while others may have constraints and issues
to resolve that may take time. As this is a demand driven project, watershed-specific activities
85
Appendix 1
within the four core watersheds may start simultaneous with the URBMP preparation especially
for those that are already prepared. For investment replication and/or upscaling to other
watersheds, these may commence as early as 6 months after core watershed start up.
41. However, all activities, whether core or non-core will have a project duration until project
ends as it is anticipated that such activities like protection and legislation may last beyond
project life.
86
Appendix 1
IMPLEMENTATION ORGANIZATION CHART

DENR Secretary National Project

Steering Committee
Undersecretary (PSC Chair) (NPSC)
National
DENR‐ FASPO and
FMS

Forest Management Bureau
Interagency Technical

National Project Working Group
(TWG)
Consultants
Coordination Office (NPCO)
Project

Regional
DENR Regional Office
Regional Executive Director Regional Development
Regional Project Council
Coordination Office (RDC)

Provincial INREM
DENR PENRO Councils (PINREM‐C)
Technical Advice and Capacity‐Building
Provincial
Provincial Project
Management Office
(PPMO) Provincial Governments

(P/LGU)

Municipal Cluster

Municipal Governments
DENR CENRO (M/LGU)
Watershed

Watershed Management &
Project Coordination Office
Watershed Management

Councils

Sub‐project/ site level

Communities and Organizations
(CBOs, IPs, POs, NGOs, Private Sectors,
Institutions)
Implementation of Project sub‐
components and activities

Line Function Technical Assistance, Advisory & Coordination
87
Appendix 1
II. FLOWCHARTS: IMPLEMENTATION OF LAND USE/CAPABILITY ASSESSMENT

AND SMALLHOLDER/ COMMERCIAL/ INSTITUTIONAL INVESTMENTS
Figure II.1 Implementation of Land Use Assessment, Land Capability Assessment, and
Management Planning
88
Appendix 1
Figure II.2. Implementation of Smallholder/Commercial/Institutional Investments
89
Appendix 1
III. Land Use Asssessment, LandCapability Classification, Zoning and Delineation
A. Introduction
42. The Integrated Natural Resources and Environmental Management Project (the Project)
is envisioned to improve the quality of life of rural communities in the Upper River Basins
(URBs) by sustainably managing natural resources with stakeholder participation, and ensuring
that local institutions will effectively govern river basin resources as an enterprise that generates
revenue for conservation and livelihood. The Project has four major components, namely: a)
River Basin and Watershed Planning; b) Small Holder/Institutional Investments; c) Capacity
Building; and d) Project Management and Support Services.
B. Objectives
43. The overall objective of this component is to establish baseline information on the 23
watersheds within the four river basins initially included in the Project. This baseline provides a
picture of the subproject sites in terms of a) land use and land use cover; b) legal classification
(forestlands and A&D lands); c) inventory of bio-physical resources; (d) biodiversity potential; e)
climate change vulnerability, f) land ownership and tenure; g) physical attributes such as slope
and topography, geology and soils, h) socio-economic attributes; and i) land capability and
suitability. All these information will form part of the inputs to the preparation of the natural
resources management plans.
44. Apart from providing basic inputs for the preparation of URB Management Plans, the
output will also provide baseline information for the proposed GIS-based database development
for M&E (DDM&E) that will be developed in this Project. This will help decision and policy
makers in arriving at more optimal land use allocation decisions, sound investment decision for
potential investors, better conservation and management strategies and climate change
mitigation and adaptation measures. Moreover, the results from this component will also help in
rational zoning LGUs within these river basins and provide information to stakeholders that will
enable them to be more proactive and participate intelligently in activities related to the
management of these river basins.
C. Expected Outputs
45. The following are the major outputs: a) Comprehensive reports/maps on vegetation/land
cover, physical-ecological and socio-economic profile of project area; b) land capability
classification and land use suitability maps/reports; and c) maps/reports of zoning and
delineation.
D. Scope
46. This component will cover the entire Project area comprising four river basins with an
aggregate area of 1,138,553 ha. traversing nine (9) provinces from Luzon, Visayas and
Mindanao. These river basins and their respective area in ha and location are (Table A1.2): a)
Chico River Basin (454,552 ha) traversing the provinces of Ifugao, Mt. Province, Kalinga,
Benguet, and Apayao in the Cordillera Administrative Region (CAR); b) Wahig-Inabanga
(62,793 ha) in Bohol, Region 7; c) Upper Bukidnon River Basin (479,870 ha) in Bukidnon and
including some portion in Misamis Oriental of Region 10; and , d) Lake Lanao River Basin
90
Appendix 1
(141,339 ha) in Lanao del Sur of ARMM. Out of the four river basins, twenty-three (23)
watersheds have been identified. Consequently, the reports and maps that will be prepared as
output of this component will be for each watershed (subproject) and aggregated by river basin.
Table A1.2 Extent and Location of River Basins

Municipalities/
River Basin Estimated Relative Provinces Barangays
Cities
(No. of Proportion
(%) % of % of
Watershed) Area (ha) (Region) No. No.
Total Total
Apayao, Benguet,
Ifugao, Kalinga,
Chico (8) 454,552 39.9% 20 24.7% 259 19.4%
Mountain
Province, (CAR)
Wahig-
62,793 5.5% Bohol (R-7) 15 18.5% 130 9.8%
Inabanga (4)
Bukidnon,
Upper
479,870 42.1% Misamis Oriental 19 23.5% 212 15.9%
Bukidnon (6)
(R-10)
Lake Lanao Lanao del Sur
141,339 12.4% 27 33.3% 731 54.9%
(5) (ARMM)
9 Provinces (in 4
Total (23) 1,138,554 100.0% 81 100.0% 1,332 100.0%
Regions)
E. Tasks/Activities
47. Remote Sensing, ground truthing. This task will involve satellite imagery acquisition,
and image processing and interpretation. Satellite images, available maps both in analogue and
in digital formats shall be collected. It is expected that not all data collected will be digital or GIS
format and thus require extensive GIS processing. For the purpose of the feasibility study
preparation, GIS data were collected from DENR Forest Management Bureau (FMB) and River
Basin Control Office (RBCO). Likewise, maps were also procured from NAMRIA indicating
topography, drainage network and roads which were used in combination with GIS data in
characterizing the watersheds. Ground truthing is undertaken to validate interpretation of
satellite imageries and thus increase accuracy of results.
48. Baseline establishment. This includes: a) collection of secondary and primary data and
existing maps and b) consolidation and analysis of data and preparation of reports and maps.
The following are categories of data that will be collected:
i. Location – this refers to administrative boundaries: Region, District, Province,

Municipality/City, Barangay; Point Locator, Line/Polygon Locators, NAMRIA Map
Sheet Number
ii. Physical – this refers to natural features such as slope, elevation, aspect, geology,
soils and man-made infrastructure such as roads, bridges, buildings
iii. Hydrometeorology – this includes meteorological data such as rainfall, temperature,

and humidity and hydrologic data like water sources, discharge rates, water quality
iv. Environmental - this category includes presence of environmental hazards (e.g.
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landslide, flood, earthquake, seismicity, and pollution), presence of threatened,

endangered and vanishing species, and the presence of encroachment on forest
territory.
v. Biological – refers to vegetative description (e.g. forest cover, shrubs, grassland) or

biodiversity importance value; this may involve the conduct of resource inventory in
order to ascertain the potential economic and environmental value of resources. In
particular, this should include species of flora and fauna and estimated quantity. For
timber resources, this should result in the production of stand and stock table for
forest areas and an estimate of carbon stock.
vi. Socio-economic and cultural – this includes land use description (i.e. agriculture,
industry, etc.), livelihood opportunities, economic data, and social data about
included and adjacent human settlements especially IPs, legal land classification,
tenure (Forest, IPRAS, NIPAS, Ancestral domains – CADT/CALT, A&D), land use,
boundary conflicts
vii. Issues and concerns – this includes a description of major issues and concerns
obtaining within the watershed such as land use conversion to undesirable use,
forest or grass fire; slash and burn farming, illegal timber harvesting; and lack of
market or credit access among local communities.
49. The data enumerated above shall be consolidated and analyzed and comprehensive
reports shall be prepared for each watershed (subproject) and summarized by river basin. The
reports shall consist of both written reports and maps.
50. Land Capability and land use suitability analysis. Land capability classification and
land use suitability analysis will be determined following the model presented in the report on
database development for M&E (See Appendix 1. Section V. GIS Mapping, Modeling and
Database Development). This will involve determination of physical capacity of a location to
support a specific land use, which will result in minimum adverse impacts and will also take into
account susceptibility of the sites to accelerated erosion (Anderson (1987) as cited by Bantayan
(2009). The susceptibility may be expressed in terms of erosion potential estimate (EPE) which
is a function of current biophysical and climatic parameter like rainfall, soil propertied,
topography, vegetation cover and land management practices. 4
51. Zoning and delineation. The purpose of zoning is to identify and separate areas having
similar potentials and constraints for development. Consequently, each zone has similar
combination of constraints and potential for land use, and provides focus for formulation of
appropriate interventions or recommendations designed to improve the existing land use
situation. Such interventions should aim at increasing production or limiting land degradation or
both. Zones will be defined on the basis of combinations of soil, land form and climatic
characteristics. The parameters used in the definition shall focus attention on the climatic and
edaphic requirements of crops and on the management systems under which the crops shall be
grown. Finalization of zoning for the basin will involve iterative process of subjecting one zoning
option after another to an assessment of the potential outcomes and impacts particularly on but
not limited to water quality and quantity, biodiversity, carbon footprint, livelihood opportunities,
equity and food security to guarantee that the final zoning configuration of the basin will have
outcomes and impacts within the desired range.
4
Report on Forest Boundary Delineation Study, DENR’s Land Administration Management Program (LAMP)
92
Appendix 1
52. For the purpose of this project, stakeholders’ participation to establish consensus on the
final zoning shall be undertaken during the preparation of the management plans and not at the
assessment stage. Moreover, the delineation of the different zones shall be done on the map for
the all river basins and watersheds. In cases where the area under consideration is classified as
forest land, ground delineation shall also be carried out. This will help in ascertaining boundary
of each zone and facilitate implementation of the different ground interventions.
F. Assessment of the Project Area and Sample Subprojects
53. Preparation of the Feasibility Study. For the purpose of designing the Project and
preparing its feasibility study, the procedure discussed previously was applied to characterize
the project area as well as the watersheds selected, using mostly secondary data and GIS
approach. The characterization include the geographic location, physical description such as
slope, rivers and water bodies, man-made infrastructures, and built-up areas, land cover and
other land uses, and legal land classification. (The results of the characterization for the project
area are provided in Appendices 1. Sections IV and V - Project Area Description and GIS-based
database development for M&E.)
54. Briefly, the characterization shows that of the aggregate area of 1,139,000 ha, 720,000
ha or 63% are classified as forest land while 419,000 ha or 37% are alienable and disposable (A
& D) lands. Of the 720,000 ha of forestland, only 313,029 ha or 43% have forest cover, the
remaining 407,000 ha or 57% are either cultivated, grasslands, shrubs, wooded grassland or
built-up areas. On the other hand, of the 419,000 ha of A& D lands, 314,000 ha or 76% are
cultivated and planted to annual crops and the rest are shrubland or cultivated land planted to
perennial crops or grassland or built-up areas. Overall, although the project area has 720,000
ha of forest land, its current forest cover is only 319,000 ha or 28% of the entire project area, out
of which 98% is in legally classified forest land. Of the total forest cover, 170,124 ha or 54% are
closed forest5, 143,000 ha or 45% open forest, and 5,000 ha or 2% plantation forests. The
details of the Project Area description in provided in a separate report.
55. The four watersheds (sample subprojects), one from each river basin, were selected for
detailed study for the project design based on their biophysical conditions, socioeconomic and
conservation values, and the state of their degradation. These watersheds are: a) Bauko
watershed in Chico river basin; Wahig-Pamacsalan watershed in Wahig-Inabanga; the
Manupali-Kitanglad watershed in Upper Bukidnon; and Bubong watershed in Lake Lanao.
56. The results of the characterization6 done on the sample watersheds are detailed in
Appendix 1. Section IV. – Subproject Area Description. Briefly the results show that the
estimated total area of the four watersheds (subprojects) is 114,500 ha spread over 24 cities
and municipalities and 218 barangays. Largest of these is Manupali-Kitanglad watershed in
Upper Bukidnon with almost 51,000 ha and traversing Lantapan, Talakag, and Valencia City.
5
Closed canopy forest – formation where trees in various storey and undergrowth cover a high proportion (>40
percent) of the ground and do not have a continuous dense grass layer. They are either managed or unmanaged
forests, in advance state of succession and may have been logged over one or more times, having kept their
characteristics of forest stands, possibly with modified structure and composition; Open-canopy forest – formations
with discontinuous tree layer with coverage of at least 10% and less than 40%. They are either managed or
unmanaged forests, in initial state of succession.
6
A more detailed description of the four subproject areas is provided in a separate report titled “Project Area
Description”
93
Appendix 1
This is followed by Bauko in Chico River with 30,000 ha and spanning Bauko, Sabangan,
Sagada and Bontoc in Mt. Province and Hungduan and Banaue in Ifugao; Bubong in Lake
Lanao with 20,000 ha and cutting across Bubong, Ditsaan Ramain, Maguing, Marawi City,
Mulundo, Kapai, and Taraka in Lanao del Sur; and Wahig-Pamacsalan in Wahig Inabanga with
14,000 ha and covering Sierra Bullones, Pilar, Garcia-Hernandez, Jagna, Duero and
Guindulman in Bohol.
57. In addition, sixty-six percent of the total area are classified as forest lands. Bauko has
the highest proportion of legally classified forest land at 95%, followed by Bubong at 74%,
Manupali-Kitanglad at 54% and Wahig-Pamacsalan at 34%. The average forest cover of the
subprojects is about 42%, with Bubong having the highest forest cover at 72%, followed by
Bauko at 49%, and Wahig-Pamacsalan and Manupali-Kitanglad at 30% each. Thirty nine
percent of the subproject area are cultivated and planted to annual crops, of which, Wahig-
Pamacsalan has the highest proportion at 60%, followed by Manupali-Kitanglad at 58%, Bubong
at 25% and Bauko at only 5%.
58. The characterization was used as basis for determining and identifying the management
regimes7 appropriate for a given land use category under each river basin and each subproject.
The different management regimes are as follows:
 Above 30% Slope

o Conservation and protection of natural forests
o Reinforced protection of conservation and protected areas
o Reforestation/afforestation
o Assisted natural regeneration
o Smallholder Agroforestry or Other Appropriate Livelihood
 30% Slope and Below
o Sustainable forest management
o Commercial plantations with community
o Smallholder agroforestry (Forestland)
o Other categories:
 Conservation farming, organic farming and infrastructure
 Conservation farming, agroforestry extension/demonstration
 Includes inland waters, marshlands, mangroves, barren lands
59. The results of the analysis for the Project area and the subprojects are given in Tables
A1.3 and A1.4, respectively.
60. Project Implementation. At project implementation, a more detailed study of each of the
23 subprojects will be undertaken following the same procedure above. Data gathered during
the preparation of the feasibility study will be updated and augmented with primary data derived
from interpretation of the most recent satellite images, groundtruthing, resource inventory, data
on soils and other physical and hydrological data, and participatory community mapping.
61. The land use assessment, land capability classification, land capability classification and
suitability and zoning and delineation will be carried out during the first two years of project
implementation. The outputs from these tasks include among others a comprehensive
report/map in terms of geographic and administrative location, biophysical features, hydro-
7
The detailed procedure for determining the appropriate management regimes for each land use category in both the project area
and sample watersheds is provided in a separate report, Supplementary Appendix F GIS-based database development for M&E.
94
Appendix 1
meteorological, environmental and socio-economic and cultural characterization of each

watershed, land capability classification and land suitability, and zoning and delineation on
maps. These outputs will serve as input to the preparation of management plan for each river
basin and the prescription or intervention in each of the watersheds. Moreover, these outputs
will also serve as basis for identifying and packaging potential investments in the project area
and as baseline information for the proposed URB GIS-based database development for M&E.
G. Implementation arrangements and Resource Requirements
62. The implementation of this component of the Project will follow the implementation
arrangement of INREM detailed in the River Basin and Watershed Planning Component. It is
envisioned that the primary data gathering and the detailed land capability and suitability
analysis and zoning will be contracted at the rate of about P200/ha or approximately
USD4.7million at the rate of PhP48/USD for the entire Project Area.
Table A1.3. Management regime for the Project area (Indicative)

By River Basin
Project
Management regime Wahig- Upper Lake
Chico Area
Inabanga Bukidnon Lanao
ABOVE 30% SLOPE
Conservation and Protection of Natural
Forests 116,691 6,652 66,193 11,942 201,478
Reforestation/ Afforestation 18,934 2,236 14,839 1,742 37,751
Assisted Natural Regeneration 159,957 5,825 66,510 6,979 239,271
Smallholder Agroforestry or Other Appropriate
16,329 7,107 65,524 1,957 90,917
Livelihood [A&D]
Sub Total 311,911 21,820 213,066 22,619 569,417
30% SLOPE AND BELOW
Sustainable Forest Management 13,179 1,282 6,529 61,777 82,767
Commercial Plantations with Community
57,482 1,034 22,459 5,102 86,077
Participation
Smallholder Agroforestry [Forestland] 9,545 2,675 44,839 14,199 71,258
Other Categories: conservation farming,
organic farming and infrastructure 52,295 31,069 143,431 32,669 259,464
improvement
9,997 4,389 49,177 4,625 68,188
agroforestry extension/demonstration
Other Categories: include all forestlands
below 30% slope that are inland waters,
143 523 371 346 1,383
barren land, marshlands, mangroves,
settlements
Sub Total 142,641 40,972 266,806 118,718 569,137
Total 454,552 62,792 479,872 141,338 1,138,554
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Appendix 1
Table A1.4. Management regime for the Core Subproject Areas

By Watershed Subproject
Wahig- Manupali- Bubong,

Management regime Bauko, Pamaksalan, Kitanglad, Lake Total
Chico River Wahig- Upper Lanao
Basin Inabanga Bukidnon River
River Basin River Basin Basin
ABOVE 30% SLOPE
Conservation and Protection of Natural Forests 9,680 696 4,444 747 15,566
Reforestation/ Afforestation 391 1,460 1,851

-
Assisted Natural Regeneration 12,597 2,202 17,968 412 33,179
889 1,183 5,258 7,331
Livelihood [A&D]
Sub Total 23,166 4,472 29,130 1,159 57,927
30% SLOPE AND BELOW
Sustainable Forest Management 3,185 900 642 12,230 16,957

commercial Plantations with Community
3,016 215 157 3,389
Participation
Smallholder Agroforestry [Forestland] - 355 2,604 1,106 4,065
Other Categories: conservation farming, organic
473 6,292 14,340 4,391 25,495
farming and infrastructure improvement

225 1,654 4,084 518 6,481
Other Categories: Includes inland waters,
marshlands, mangroves, barren lands, 47 143 190
settlements
Sub Total 6,945 9,417 21,827 18,387 56,576
Total 30,111 13,889 50,957 19,546 114,503
REFERENCES
ADB. 2009. INREM Concept Paper.
DENR. 2008. DENR Administrative Order No. 2008-24. Guidelines for the Assessment and Delineation of
Boundaries Between Forestlands, national Parks and Agricultural Lands. Visayas Avenue, Diliman,
Quezon City.
Project Area Description. INREM Report
Report on Forest Boundary Delineation Study, DENR’s Land Administration Management Program
(LAMP)
Subproject Area Description, INREM Report
Verburg. P. H. and A. Veldkamp. 2004. Projecting land use transitions at forest fringes in the Philippines
at two spatial scales.
http://www.springerlink.com/content/w3n22087568138x4/fulltext.pdf?bcsi_scan_D4A612CF62FE9576=P
96
Appendix 1
2kDfDGPQhNbqFXngv6pvBwAAAAm9Jgb&bcsi_scan_filename=fulltext.pdf Accessed on July 6, 2009.
Yongyuan Yin And J. T. Pierce. 2004. Integrated Resource Assessment and Sustainable
Land Use. http://www.springerlink.com/content/f485185042552672/fulltext.pdf, Accessed on July 7, 2009.
IV. Detailed Description of Study Sites
A. Introduction
63. Project site selection was guided by the interagency Technical Working Group (TWG)
chaired by the Department of Environment and Natural Resources (DENR), after consultations
with different sectors and agencies. The TWG recommended study of four representative river
basins that encompass the entire range of river basin issues ensuring that lessons learned can
be replicated across the country. The location of Project sites are: (i) Chico River Basin in the
Cordillera Administrative Region (CAR), (ii) Wahig-Inabanga River Basin in Bohol Province,
Visayas, (iii) Bukidnon River Basin, Bukidnon Province, Mindanao, and (iv) Lake Lanao River
Basin of Lanao del Sur, Autonomous Region in Muslim Mindanao (ARMM)
64. The Project sites are comprised of 23 watersheds extending to over 11,385.55 km2
(Table A1.5) with an estimated population of around 1.8 million. Approximately 223,000
household beneficiaries are targeted under the Project covering 9 provinces, 81 cities and
municipalities, and some 1,332 barangays. Main beneficiaries are marginal households with
small landholdings. Indigenous peoples (IP) and other ethnic minorities8 (EM) constitute around
75% of the total beneficiaries that reside in headwaters of the river basins (See Working Paper
#1).
Table A1.5. INREMP Coverage Area
River Basin/ % of River Population No of No of No of
Component watershed Area (km2) Population*
Region/Province Basin Density (km2) Municipalities* Barangays Households
Chico 1 Tabuk 605.39 13 73,327 121.12 4 41 9,166
CAR: 1. Apayao 2 Conner 568.48 13 42,170 74.18 3 20 5,271
2. Benguet 3 Tuao 796.81 18 120,655** 151.42 7 8 1,078
3. Ifugao 4 Balbalan 776.75 17 24,583 31.65 5 42 3,073
4. Kalinga 5 Lubuagan 729.24 16 38,167 52.34 6 50 4,771
5. Mt. Province 6 Bontoc 411.88 9 28,731 69.76 8 23 3,591
7 Barlig-Tanudan 355.86 8 8,345 23.45 6 21 1,043
8 Bauko 301.11 7 43,735 1.45 6 54 5,467
SubTotal Area 4,545.52 100 379,713 83.54 45 259 33,460
% from Total INREMP Area 40
Wahig-Inabanga 1 Wahig-Pamaksalan 138.89 22 41,174 296.45 5 36 5,147
Region 7: Bohol 2 Danao 133.39 21 14,616 109.57 5 18 1,827
3 Dagohoy 216.37 35 46,370 214.31 7 32 5,796
4 Inabanga 139.28 22 37,618 270.09 4 44 4,702
SubTotal Area 627.93 100 139,778 222.6 21 130 17,472
Upper Bukidnon 1 Manupali 509.57 11 59,299 116.37 3 16 8,471
Region 10: 2 Talakag 650.07 14 31,801 48.92 1 21 4,543
1. Bukidnon 3 Sumilao-MF-Malitbog 1,326.05 28 91,264 68.82 4 32 13,038
2. Misamis Oriental 4 Malaybalay-Impasugong 525.85 11 178,614 339.67 4 45 25,516
5 Baungon-Libona 948.21 20 91,887 96.91 5 34 13,127
6 Kalatungan-Muleta 838.96 17 118,874*** 141.69 10 64 17,340
SubTotal Area 4,798.70 100 571,739 119.14 27 212 82,035
8
EM of Lake Lanao known as Meranao, generally of Muslim affiliation; prefer to be identified as EM.
97
Appendix 1
River Basin/ % of River Population No of No of No of

Component watershed Area (km2) Population*
Region/Province Basin Density (km2) Municipalities* Barangays Households
Lake Lanao 1 Bubong 195.46 14 73,743 377.28 6 89 9,218
ARMM: Lanao del Sur 2 Malaig 354.03 25 94,875 267.99 7 87 11,859
3 Taraka Gata 547.89 39 170,007 310.29 7 199 21,251
4 Saguiaran-Marawi 141.05 10 222,633 1,578.40 3 153 27,829
5 West 174.96 12 159,391 911.01 11 203 19,924
SubTotal Area 1,413.39 100 720,649 509.87 34 731 90,081
Grand Total Area 11,385.55 100 1,811,879 159.14 127/81* 1,332 223,048
*The total 81 avoids double counting as some municipalities straddle more than 1 watershed.
65. Chico River Basin has the most number (08) of component watersheds or
subwatersheds, followed by Upper Bukidnon (06), Lake Lanao (05) and Wahig-Inabanga (04).
In terms of area, Upper Bukidnond is the largest, which constitutes 42% of the total INREMP
sites, followed by Chico (40%), Lake Lanao (12%) and Wahig-Inabanga at 6%.
66. Of the aggregate Project area 63% are classified as forest land while 37% are alienable
and disposable (A & D) lands. Of the 719,985 ha of forestland, only 312,585 ha or 43% have
forest cover, the remaining 407,400 ha or 57% are either cultivated, grasslands, shrubs,
wooded grassland or built-up areas. On the other hand, of the 418,570 ha of A& D lands,
314,193 ha or 76% are cultivated and planted to annual crops and the rest are shrubland or
cultivated land planted to perennial crops or grassland or built-up areas.
B. Upper Chico River Basin
1. Geographic Location and Importance to the Philippines

67. The Chico River Watershed9 was established by virtue of Proclamation No. 573, signed by
President Ferdinand E. Marcos on June 26, 1969. Part of Proclamation 573 is Parcel No. 2, which
comprises the Chico Forest Reserve. It covers areas extending from Mt. Province down to Ifugao,
Kalinga and Apayao. The basin lies between 16 49’28” to 17 57’58” north latitude and 120 50’37” to 120
33’14” east longitude.
68. Chico River Watershed has vast potentials for development. Being one of the major river
systems in CAR, it has potentials for electric power, irrigation and domestic purposes,
recreation, and other varied uses. The river harnesses the major irrigation systems to water its
vast rice lands. As a result, Kalinga has been promoted as a rice granary of the region on
account of its fertile plains and valleys. On the other hand, Mt. Province being the upper
catchment area of the watershed, has become the home to high value crops yielding
legumes/beans, carrots, root crops and other cash crops. White water rafting along the Chico
River is another potential attracting local as well as foreign tourists. As regards mineral
resources, these are still untapped with prospects that include gold, sulfur, copper, gypsum, clay
and gravel and other quarry resources. While some of these have been extensively assessed
particularly in the Kalinga side, the volume of deposits cannot be quantified since no actual
drilling has ever been conducted.
69. Issues and concerns surrounding the watershed include: (i) land use conversion to
inappropriate uses such as the conversion of mossy forest in Mt. Data to vegetable gardens; (ii)
decreasing water discharge as a result of drying up of water sources; (iii) diminishing
biodiversity that may be attributed to anthropogenic activities of man such as kaingin making,
illegal cutting, forest fires and chemical pollution; (iv) river siltation due to soil erosion and
9
Master Plan for the Management and Development of the Chico River Watershed. Regional Development Council-Cordillera
Administrative Region. 2009.
98
Appendix 1
landslides in upstream areas; (v) water pollution attributed to household and industrial wastes
from municipalities in Mt Province dumped into the main river or its main tributaries. The
watershed is thus beset with various problems such as decreasing water discharge, diminishing
biodiversity, river siltation, and river pollution. Built-up areas lined along headwaters increased
solid waste concerns. Potability is highly reduced in some areas. Soil cover is depleted which
impacts on water-holding capacity.
2. URB Coverage: Area, Geopolitical and Demograpgic Characteristics
70. An initial site assessment10 of the Chico River Basin was conducted which builds on data
generated through the CAR Regional Development Council (RDC)-TWG. To facilitate the
assessment process, the whole river basin was divided into inherent sub-watersheds (SWS) as
shown in Table A1.6 for a total of eight SWS management units. In maintaining the integrity of
the river basin, the PPTA identified the lower portion to cover parts of Cagayan Province in
Region II. The Chico River Basin therefore technically includes two regions: CAR and Region II.
Table A1.6. Sub-Watersheds and Coverage within the Chico River Basin
No SWS Area (km2) % From Total URB Municipalities No. of Barangays
1 Tabuk 60,539 13.32 4 41
Pinukpuk 6
Tabuk 33
Tanudan 1
Balbalan 1
2 Conner 56,848 12.51 3 20
Pinukpuk 2
Conner 17
Kabugao 1
3 Tuao 79,681 17.53 7 8
Pinukpuk 4
Rizal (Liwan) 1
Conner 3
4 Balbalan 77,675 17.09 5 42
Balbalan 14
Pasil 1
Pinukpuk 11
Tabuk 1
Conner 15
5 Lubuagan 72,924 16.04 6 50
Bontoc 1
Sadanga 5
Balbalan 1
Lubuagan 9
Pasil 14
Tinglayan 20
6 Bontoc 41,188 9.06 8 23
Barlig 3
Bontoc 12
Sadanga 3
Banaue 1
Hungduan 1
Lubuagan 1
Tanudan 1
Tinglayan 1
7 Barlig-Tanudan 35,586 7.83 6 21
Barlig 7
Bontoc 1
Natonin 1
Banaue 1
10
INREM-PPTA, 2009.
99
Appendix 1
Tabuk 1
Tanudan 10
8 Bauko 30,111 6.62 6 54
Bauko 15
Bontoc 3
Sabangan 15
Sagada 19
Hungduan 1
Tinoc 1
8 TOTAL 454,553 100.00 45/20 259
71. The peripheral areas of Abra were tentatively deleted since the geopolitical boundaries
within the river basin were at the time contentious. Benguet though with minimal land area
covered, was included under the Global Environmental Facility (GEF), though not reflected in
the loan component of INREMP, as it is contiguous with the shared headwaters of the Chico
River Basin and the Agno River Basin. In the end, Cagayan Province of Region II was likewise
excluded as the very concept of INREMP is to work more intensely in upper river basins,
Cagayan being located much more downstream of the river basin.
72. Thus a total of five provinces (Apayao, Benguet, Ifugao, Kalinga, Mt. Province) are
included, all from CAR, specifically covering 20 municipalities (note double counting in Table 3
as a result of municipalities that straddle more than one SWS) and 259 barangays.
73. Population density within the river basin is computed at 84 persons per km2 considered
relatively low as the 2007 national figure is 258 persons per km2. Poverty incidence ranges from
a low of 11.1% in Benguet to a high of 63.1% in Apayao, much higher than the 2006 national
figure of 32.9%. Indigenous peoples (IP) abound within the river basin, estimated at 95%. These
IPs generally are characterized as homogenous and dominant within the socioeconomic and
political landscape.
3. Biophysical Characteristics of Project Area
74. Climate and Rainfall. The Chico River basin has two types of climate based on the
modified Coronas’ classification of climate for the Philippines. The headwaters in Mt. Province
and the southwestern part of the Kalinga area have Type I Climate. The remaining parts of the
watershed are Type II. Type I climate has two pronounced seasons, namely dry from November
to April and wet for the rest of the year while for Type II climate, the seasons are not very
pronounced; relatively dry from November to April and wet for the rest of the year. The mean
annual rainfall in the area is 2,390 mm and the mean surface run-off is 7,237 million cum11
(mcm). The highest rainfall on record at the DENR for a given year and month is 6,693.7 mm in
1974.
75. Topography and Slope. The terrain on the Mt. Province side ranges from level on its
outlet north, gradually rising to high mountains at its headwaters on the south. Slopes on the
southern headwaters reach as high as 70 degrees. Elevation range is from 20 meters above
sea level (masl), where the river joins Cagayan River to 2,714 masl. Sharp ridges, deep v-
shaped gullies and ravines particularly on the southern and central portion of the watershed and
its tributaries characterize the river basin.
76. In the province of Kalinga, the topography of the Chico River watershed area is rugged
and sloping with mountain peaks ranging from 300 to 2,500 meters above sea level. The
feature consist a north-south trending assemblage of mountain chains, which is a prominent
regional geographic feature of the Central Cordillera. Sharp crested interlinking peaks and
valleys characterize the western part of the province. A peculiar feature in this part is the
11
Master Plan for the Management and Development of the Chico River Watershed (2007)
100
Appendix 1
presence of isolated plateaus and mesas of tuffaceaus rocks. Gradually sloping foothills and
rolling terrain characterize the northern portion. Some slopes simulate homoclinal ridges
generally trending north-south dipping moderately to the east towards the Cagayan basin.
77. Only about 15% fall under 0-18 degrees and the rest are above 18 degrees, which is 85%
of the total watershed area. Under the present land classification, areas up to 18 degrees slope
are classified as A&D lands and above 18 degrees as forestlands. The figure indicates limited
areas intended for agricultural purposes and the larger portion for forestry and agro-forestry.
78. The combined steep slopes and high topography of the watershed render it vulnerable to
soil erosion and landslides aggravated when there are land use changes such as inappropriate
kaingin making and road construction.
79. Water Resources. The Chico River Watershed has its headwaters coming from Mt. Data,
Bauko, Mt. Province and empties into the Cagayan River. In Mt. Province, the major tributaries
include the Bauko/Sabangan River, Betwagan River, Bayudan River, Malanas River, Aguyo
River, Agodong River, Malitep River, Tanudan River, Amlosong River and the Talubin River.
Main tributaries in the Kalinga Province include the Pasil River, the Tanudan River and the
Saltan River.
80. The Chico River is rich with aquatic resources with most of the residents dependent on the
river for additional income and sustenance. However, the introduction of exotic species like the
Golden Kohol, Gurami and others, disturbed the population of endemic species like mudfish,
native snails, etc.
81. This river is the main source of irrigation for all agricultural areas (both wet and dry) along
the river. At Mt. Data, competition exists in regard the use of the water coming from a single
small source, either for domestic or agricultural use. On the Mountain Province side, not a single
tributary has been tapped for its potential as a power source as it is mainly used to supply
agricultural lands, both wet and dry. As regards Kalinga, the river basin is the main source of
irrigation water for agricultural lands and partly supplies the irrigation needs of the neighboring
province of Isabela.
82. Forest and Vegetation Types. A total of 165,524 hectares of forest resources are found
in the Chico River Basin. Five vegetative characteristics are noted in the watershed, each
occupying a distinct ecozone starting from the riverbanks to the summit of the mountain ranges:
(i) Mixed vegetation of grass and scattered shrubs and small or medium sized trees are usually
found along or near river/stream banks and on grass ecosystems; (ii) A belt of forest dominated
by Benguet pine, between elevations 1,000 to 2,200 masl; (iii) Mixed dipterocarp forests usually
are found in the low-lying areas of Kalinga and Apayao, although some are found in Mountain
Province, particularly along Tanudan River; (iv) Mossy forests extending from the upper limits of
the pine formation to the mountaintops, which have not been invaded by the pine forests; and
(v) Grasslands, interspersed in the open canopy pine forests or appearing as islands between
forests. Grasslands found in the mossy forests are dominated by the dwarf bamboo (Yushania
niitakayamensus).
83. The present vegetative cover found in the province, particularly Benguet Pine indicates
that most of the pine forest areas are second growth and even aged. These are either
established plantations or natural regeneration on logged over areas. These natural
regeneration areas are slowly being converted into vegetable gardens as has happened to the
mossy forests, particularly in the southern headwaters. It is estimated that as much as 1,500
hectares of pine and mossy forest in the southern headwaters of the watershed have been
converted to vegetable gardens starting from 1960.
101
Appendix 1
84. Biodiversity Assets. There are several faunal species12 within the Chico River
Watershed area of which 28 are considered endemic, nine are resident-species, two are
migrants, and one insufficiently known. The skeleton of an eagle in Barlig has been verified to
be that of a Philippine Eagle, though no sightings of this bird has been made as of the moment.
Seven (7) are listed under CITES II13, two under CITES I14, two (2) considered endangered –
with a population extinction and whose survival is unlikely if the causal factors continue
operating. Several fish species are also found in rivers/creek.
85. The Balbalasang-Balbalan National Park is rich in faunal species such as deer, wild
pig, monkey and bats. Other local wildlife includes parrot, owl, kalaw, labuyo, bolog,
saysayapat , takka, ugachiw, tiktik, snakes, eels, motit and others. Some wildlife species
found at Mt. Data National Park are shack shrike, pygmy wood pecker, red button quail,
wild pigeon, Philippine bulbul, and mountain rats. These wildlife are considered endangered
and threatened due to hunting by the local residents for food, pet and sold for additional
income. The method of hunting are done through indigenous practices such as silo, lasag,
balais, bito and other means.
86. Floral species include gymnosperms and other non-dipterocarp species that are dominant
in western Mt. Province, while mixed dipterocarp species appear to dominate the eastern and
northern part of the watershed. The Balbalasang-Balbalan National Park in Kalinga shows that
the area is still thickly forested but there are areas encroached and devoted to kaingin making.
Dominant forest species are mossy, dipterocarps and some Benguet Pine stand.
4. Land Tenure and Ancestral Domains
87. Inasmuch as 85% of the total URB area is 18 degrees and above, present land
classification in said areas is forestland and only the remaining 15% are considered A&D.
Present residential/built-up areas far exceed the official classification and tax declarations are
made with respective LGUs.
88. As regards ancestral domains (AD) Certificates for Ancestral Domain Titles (CADT) are
issued to IP communities as well as individual land titles in the form of Certificate for Ancestral
Land Titles (CALT) in accordance with customary laws of the IP community as espoused in the
Indigenous Peoples Rights Act (IPRA) of 1997. In the case of CAR, 95% of the land area are
considered as ancestral domains, except Abra Province where 92 % are ancestral domains and
Baguio City (there is no application for CADT, but many applications for CALT).15 Table A1.7
shows the distribution of CADCs/CALTs within the river basin as of July 2010 with a total of
239,893 ha or 60 parcels either awarded or under processing. Table A1.8 on the other hand
reveal that only seven ADSDPPs have been officially processed/accepted with NCIP as of April
2009. There is a lag in plan formulation.
Table A1.7. Status of Ancestral Domain Processing in INREM URBs
Status No Hectares Beneficiaries
AD under social preparation/ boundary conflict 7 66,060.0 -
Completed survey (AD/AL) 1 1,672.1 -
Approved CADTs 4 55,115.1 64,633.0
AD ready for survey 3 115,896.5 -
Approved CALTs 45 1,149.9 642
Total 60 239,893.6 65,275
Source: ADO-NCIP 2009
Note: ADs are partially or wholly within URB.
12
Biological Profile of the Chico River Basin prepared by the Protected Areas and Wildlife Services (PAWS) of the DENR-CAR.
13
Trade of species and sub-species are strictly regulated.
14
Trade strictly prohibited except for educational or scientific research and study purposes.
15
Cordillera Administrative Region Development Plan 2004 – 2010 p. 44
102
Appendix 1
Table A1.8. ADs with ADSDPPs in INREM URBs

Location of ADs with Total ADSDPPs
Tribe Funding Comment
ADSDPPs in Region
Buguias, Benguet Kankanaey-Ibaloi NAPOCOR 7
Hungduan, Ifugao Tuwali LGU, PANCORDI, OPAPP
Tinoc, Ifugao Kalanguya LGU, PANCORDI, OPAPP, ESSC
Upper Bauko, Mt. Province Kankanaey NCIP & PAGCOR Bauko not in NCIP list but
Kadaclan, Mt. Province Ikacharay ADB/IFAD-CHARMP/DA, LGU ADSDPP draft completed for
Sabangan, Mt. Province Kankanaey ADB/IFAD-CHARMP/DA, LGU NCIP review
Sagada, Mt. Province Kankanaey ADB/IFAD-CHARMP/DA, NCIP
Sources: ADO-NCIP 2009 and INREM Field visits, February – April 2009.
5. Investments, Trade and Indistry Within the URB

89. Infrastructure. The Halsema Highway is the main access to the river basin from Baguio
City going to the provinces of Ifugao and Mt. Province. On the other hand, on the northeastern
side of the basin, the Maharlika Highway provides access to Kalinga, Apayao and Cagayan. Of
the total national and provincial road network within the river basin, only about 15% is paved
with either concrete or asphalt, while 55% is gravel and the rest are earth roads. Majority of
those classified as barangay and farm to market roads are unpaved and are impassable during
rainy season.
90. There are about 74,250 hectares of potential agricultural areas for irrigation in the Chico
River Basin of which only 37% are irrigated largely serviced by the communal type of irrigation
facilities (71%).
91. Agriculture. CAR has a strong agro-ecological advantage in the production of highland
vegetables like cabbage, white potato, pechay, carrot, and cauliflower accounting for 50%-90%
of the national production in 2004. In terms of area, 62% is used for paddy, the number one
crop produced in CAR in terms of its volume, and 9% are for vegetables. While paddy
accounted for the largest production volume among crops and vegetables in CAR, its share
accounted for only 2.5% of national paddy production in 2004.
92. In 2003, agriculture still accounted for 58% of total employment in CAR, as well as fulfilling
subsistence requirements of the rural community. Agriculture development initiatives in CAR
focus on strengthening of the existing vegetable production sub-sector. Other high value items
such as cutflowers, forest products and organic products are gaining ground.
93. Livestock production in the region consists mostly of backyard operations involving a few
heads of assorted animals such as hogs, cattle, carabao, goats and poultry, providing a ready
source of cash for farmers. Fish production in the region takes the forms of inland and
aquaculture fishing, which accounted for 0.6% and 0.1% of national production respectively in
2004.16
94. Mining. Mountain Province is endowed with the mineral resources such as gold and
copper ores extracted through small scale mining and sand and gravel quarrying.
Mineralization is confined along the western part of the province. The volume of deposits
cannot be quantified since no actual drilling has ever been conducted. Kalinga has vast
potentials of mineral deposits still untapped. It has been extensively prospected for gold,
copper, and other important metallic and non-metallic minerals.
95. Tourism. Chico River Watershed is a land of natural charm blessed with numerous tourist
attractions, both natural and man-made. Many of these were validated and documented as
potential tourist attractions including the festivals and events that are regularly conducted in the
area as part of the tourism industry. In support to these tourism activities and in response to the
16
Ibid.
103
Appendix 1
need of the positively increasing number of tourists arriving in the area, private sectors
established accommodations and transport facilities although majority are located in Tabuk and
Bontoc. Homestays are also available and maybe arranged in select municipalities.
96. The most promising and recent eco-tourism attraction in the area is the white water rafting
in Kalinga, managed by a private entity. The hanging coffins and caves in Sagada, Mt. Province
is still a primary tourist attraction in the watershed.
C. Wahig-Inabanga River Basin

97. The Wahig-Inabanga is located between 123°43’0” and 124°37’0” East longitude, and
between 9°33’0” to 10°12’0” North latitude. On September 26, 1994 it was proclaimed as a
Watershed Reservation under Proclamation No. 468. It is characterized with level to moderately
rolling agricultural lands and rolling to mountainous timberlands and a coastal influenced area of
31,325 ha. From the Northwest bay of the island, the river basin dissects the central part of the
Island, embracing a total land area of 628 km2 or 15.3% of the total land area of the Province.
98. Wahig-Inabanga has been considered as the largest and most important river within
Region VII due to its high potentials as source of surface water for agricultural, household,
commercial, industrial and recreational uses, its significant physical features and biological
resources, and its strategic location. It encompasses the large agricultural valley within the
municipalities of Sierra Bullones, Pilar, Dagohoy and San Miquel. The National Irrigation
Administration (NIA) in the Municipality of Pilar constructed an irrigation dam to service about
5,000 ha of agricultural lands17.
99. The river originates from the municipalities of Sierra Bullones and Pilar and empties into
the municipality of Inabanga discharging a daily average of 1.975 million cum of water into the
Cebu Strait that separates the Islands of Bohol and Cebu. This volume is enough to supply the
domestic daily needs of about 637,097 households18.
100. Some of the issues and concerns prevailing in the area are19: a) human settlement and
land cultivation; b) forest and grass fire; c) illegal timber cutting; d) unclear resource use rights;
e) sustainability of the watershed; f) lack of or inadequate technical/financial assistance on
farmers re: agroforestry and other livelihood system; g) access to credit or financial services and
social and health services; and h) provision of all-weather farm to market roads.
2. URB Coverage: Area, Geopolitical and Demographic Characteristics
101. The river basin is composed of four watersheds, namely: Wahig-Pamacsalan with an area
of 138.89 km2, Inabanga with 139.28 km2, Dagohoy with 216.37 km2 and Danao, 133.39 km2
(Table A1.9). It is the smallest river basin under INREMP. The river basin traverses 15
municipalities that comprise around 130 barangays with a potential 22,366 beneficiary
households and land coverage of 628 km2 ha covering about 15% of the Province in terms of
land area. Population density within the river basin is 222 persons per km2, much lower than the
provincial population density of 299 persons per km2.
Table A1.9. Sub-Watersheds and Coverage within the Wahig-Inabanga River Basin
No SWS Area (km2) % From Total URB Municipalities No of Barangays
1 Wahig-Pamaksalan 138.89 22 5 36
Duero 1
17
Management Plan for Wahig-Inabanga Watershed, Province of Bohol. 2000.
18
Based on recorded family domestic water consumption of 3.1 cum/day
19
Op cit
104
Appendix 1
No SWS Area (km2) % From Total URB Municipalities No of Barangays

G. Hernandez 1
Jagna 1
Pilar 13
Sierra Bullones 20
2 Danao 133.39 21 5 18
Buenavista 5
Danao 10
San Miguel 1
Trinidad 1
Talibon 1
3 Dagohoy 216.37 35 7 32
Carmen 2
Dagohoy 15
Danao 2
Pilar 5
San Miguel 2
Sierra Bullones 3
Ubay 3
4 Inabanga 139.28 22 4 44
Carmen 2
Danao 5
Inabanga 30
Sagbayan 7
4 TOTALS 627.93 100 21/15* 130
* Avoided double counting of covered municipalities and barangays.
102. The river basin has a computed poverty incidence of 46.9%, which is much higher than
the national 32.9%. Within the province, the top five poorest municipalities include Danao,
Buenavista, and Ubay that are covered under INREM.20
103. Topography and Slope. The elevation of the watershed ranges from 0 at the coastal
area to 860 masl at the headwaters in Sierra Bullones. About 53% of the area have slopes of
less than 18% (flat to rolling) while 12% have 18-30% slope (steep) and 35% have over 30%
slope (very steep to critical slope). Of the areas classified as forest lands, 12% have slopes of
less than 18%, while 88% have slopes of 18% or higher. For A & D lands, 73% have 0-18%
slope while 27% have slope over 18%. It may be noted that 12,000 ha of cultivated area planted
to annual crops constituting 19% of the total basin area are located in slopes of over 30%.
104. Climate and Rainfall. The area falls under the 4th climatic type (Coronas), where rainfall
is more or less evenly distributed throughout the year. Rainfall is deemed more than sufficient to
meet the moisture requirement of most plants. The annual average rainfall is 4,598 mm (4,614
mm in Pilar, 6,485 mm in Dagohoy, and 2,682 mm in Danao). The monthly average is 383 mm
while daily average is 12.6 mm.
105. Land Use and Land Classification. Out of the 62,793 ha of basin area, 20,227 ha or
32% have been classified as forestland, while 42,566 ha or 68% are A&D lands. Of the 20,227
ha of forest land, only 5,880 ha or 29% are with forest cover, 9,171 ha or 45% are cultivated and
planted to annual crops, 11% are grassland, 10% have shrubs and the remainder have
perennial crops or wooded grassland. On the other hand, of the 42,566 ha of A & D lands, 2,919
ha or 7% are with forest cover, 35,999 ha or 85% are cultivated and planted to annual crops,
1,242 ha or 3% are cultivated and planted to perennial crops and the remaining 5% have either
shrubs or wooded grassland.
20
2003 City and Municipal Level Poverty Estimates
105
Appendix 1
106. The river basin has only 14% forest cover or 8,799 ha out of 62,793 ha, of which 67% are
legally classified forestlands and 33% are A & D lands. The forest cover is composed of 4,164
ha or 47% open canopy forest, 4,280 ha or 49% plantation forest and 355 ha or 4% mangrove.
It is interesting to note that of the total plantation forests, 53% are in A & D lands.
107. Water Resources. The whole watershed has a nine order stream which has a total of 712
streams. The total stream length of subcatchments is 657.5 km. with an average length of 0.92
km. The Inabanga subcatchment has the longest stream length with 160 km while Mas-ing
River subcatchment has the shortest with 47.5 km. The average discharge of tributaries range
from as low as 36,146 m3/day in Sagnap to as high as 203,564 m3/day in Malitbog. Based on
the water quality standards for surface freshwater, the discharge of major streams inside the
Watershed are considered suitable for domestic, irrigation and industrial uses.
108. The Municipality of Inabanga has approximately 20 km of coastline from Tubigon to the
Baluarte River mouth in northwest Bohol. Only a strip of mangroves are found along the estuary
of Inabanga and along this strip are areas which have been converted into aquaculture ponds
and utilized by the locals for nipa plantation and harvesting. The intertidal zone is characterized
predominantly of mudflats with a high density of fish pens and islands with mangroves, rocky
outcrops and coral reefs. The marine benthic community is characterized by a diverse yet
disturbed reef affected by several factors: siltation, fishing activities of adjacent reef and a
possible outbreak of crown-of-thorns. The extent of siltation in Inabanga River is observed in
almost all coastal barangays. Sediments have covered the vast shallow reef flat area. In
general, all sites are under the category of fair coral cover having a good potential for resource
rehabilitation if properly managed.
109. The Inabanga estuary provides productive habitat for invertebrates, fish, and birds
including endangered species as well as spawning and nursery grounds for many species of
fish, supports seagrass vegetation, shellfish beds, and nesting grounds for a variety of birds.
Presently, it is also subjected to intense pressures (with the presence of fish pens, oyster farms
and fish ponds), recreational uses (bathing), and non-point source pollution (laundry) from
changing and intensifying land uses.
110. Tree Species/Vegetation. Wahig-Inabanga River Basin is almost all farmlands with
patches of grasslands, thickets and secondary forests save for some hilly areas. On the hilly
portion as well as flat lands are small patches of coconut plantations where in some cases small
trees, brushes and weeds are left to grow among the coconuts. Other areas such as along
feeder roads, boundaries of adjoining properties, and land not being used for planting short-term
crops such as rice and corn are planted to fast growing species like Gmelina arborea, Acacia
mangium, Acacia auriculiformis.
111. Biodiversity Assets. The watershed contains about 14%21 of the Rajah Sikatuna
Protected Landscape, one of the priority sites for conservation in the Philippines (KBA 92). In a
factsheet prepared by Bird International (2009), it is reported that this protected landscape has
most of the significant forest of Bohol and characterized by rolling hills with remnant natural
forest on steep limestone terrain surrounded by plantation forests, deforested hills and
grassland. Among the bird species found in the park are three species endemic to Eastern
Visayas: the Samar hornbill (Penelopides samarensis), Visayan hornbill (Penelopides panini),
and yellow-breasted tailorbird (Orthotomus samarensis). Furthermore, it is also reported that
10% of the park has been converted to agriculture land. Current threat to the park includes land
conversion (kaingin), collection of non-timber forest products, and hunting.
21
Personal Communication with Forester Ven Taer, PENRO, Bohol
106
Appendix 1
4. Land Tenure and Ancestral Domains

112. Tenure. Based on the assessment towards the preparation of the Management Plan, it
was established that the modal tenurial system across all Barangays is owner cultivatorship with
an aggregate proportion of about 59%. Amortizing owners only account for less than a percent
(0.8%). Claimant-cultivators account for roughly 1.6% of the total respondents. Close to 40% of
the respondents are either leaseholders or share tenants. In particular, the extent of share
tenancy is about 20%.
113. The average size of agricultural landholdings is only about 0.6 ha. The actual values
range from as low as less than 500 m2 to 5 ha. Across tenure, the lowest is about 0.4 ha
exhibited by amortizing owners and the highest is about 0.7 ha for leaseholders. Farm
households in the river basin are generally subsistence farmers. By tenure, owner cultivators,
amortizing owners, and claimant cultivators tend to be more subsistent than tenants as the
system is more secure. These are the sectors of the community with relatively broader access
to resources that they can afford to produce only for home consumption. In contrast, tenants are
the tenurial group with very limited opportunities. They have to sell more of their produce in
order to generate cash income to pay for the other subsistence requirements of the household.
114. Ancestral Domain. The Eskaya Tribe is the only indigenous community in Bohol and part
of its ancestral domain lies within the Wahig-Inabanga river basin reserve. The Ancestral
Domain Claim has an area of 3,173 ha, of which 700 ha are A&D land and 2,473 ha are
timberland. They were awarded a Certificate of Ancestral Domain Claim (CADC) in 1996 (CADC
No. R7-CADC-14) by President Fidel V. Ramos through the DENR prior to institutionalization of
NCIP. Certification is still being processed with the NCIP to date. The ancestral domain of the
Eskaya tribe is located within the barangays of Biabas, Guindulman, Taytay, Duero, Canta-ob,
Sierra Bullones, a portion of San Vicente, Pilar, a portion of Cadapdapan, Candijay, and a
portion of Bayong, Pilar. The area already has an approved Ancestral Domain Management
Plan (ADMP) based on DENR Administrative Order of 1992 that has to be enhanced based on
prescriptions of IPRA (1997). Geographically, it is 9º 45’ 28.4” longitude and 124º 21’ 12.2”
latitude.
5. Investments, Trade and Industry Within the URB
115. Infrastructure. The Province has a good network of national, provincial, and municipal
roads. All towns or even the farthest are accessible by land transportation. Wahig-Inabanga is
linked to the rest of Bohol through the national highway that originates from Tagbilaran and is
paved at different segments with concrete and gravel. The highway branches into the river basin
and connects all the Municipalities within the river basin reserve. Villages are accessible by
barangay roads and trails through motorcycles only, thereby contributing problems in transport
of materials, agricultural inputs and outputs during rainy seasons.
116. Two major road sections, Tagbilaran North Road (TNR) and Tagbilaran East Road (TER)
are also being improved under the Arterial Road Links Development Project. This would
traverse through several municipalities including those within the Wahig – Inabanga River
Basin.
117. NIA 2006 data shows that Bohol’s potential irrigable area is about 30,090 hectares with a
total service area of 14,388 hectares equivalent to 48% irrigation development rate. The biggest
national scheme in the province is the Bohol Irrigation Project (BIP) covering the 6 municipalities
of Alicia, Dagohoy, Pilar, San Miguel, Ubay and Trinidad all within the river basin with main
source of irrigation water supply from Wahig and Pamacsalan Rivers at the municipality of
Sierra Bullones. Aside from BIP, the river basin area also has an existing NIA assisted
communal irrigation schemes with an aggregate service area of about 2,363 hectares with
107
Appendix 1
several schemes proposed for rehabilitation and improvement under the NIA development
program.
118. In the municipality of Pilar, the Lumbay Hagdanan Irrigators Association has obtained
water rights for Bagon-an Creek to be used for communal irrigation system (CIS) in barangay
Lumbay. Communal Irrigation Systems are similarly present in other municipalities.
119. About 61% of the province’s total HHs is currently provided with safe drinking water from
Levels I, II and III systems. Levels I draw its source from sealed open dug wells while Levels II
and III are from natural spring development and deep well sources. However, based on the
1993 Philippine National Standards for Drinking Water, some of the water coming from springs
and deep wells are. Cadmium and lead contents of the water far exceed standard values.
120. Agriculture. The most common problem as regards agriculture revolve around the issues
of small farm parcels, barren soil, unfavorable climatic conditions, the cost of production inputs,
pest and diseases and soil degradation among others. In terms of marketing, the most glaring
problem is farm to market roads. The only regular transport towards the inner barangays in the
river basin is through the ‘habal-habal’ or motorcycle. Products are damaged during the travel.
Low product prices and price fluctuations similarly are identified constraints.
121. Quarrying. It is estimated that 65% of the province is covered with limestone of which
Garcia-Hernandez, one of the municipalities within the watershed, has the biggest quarry site.
122. Tourism. Tourism and recreation is alive within the river basin. Recreational activities at
present are confined to cave exploration and nature appreciation. The water reservoir in Pilar is
a growing attraction to both local and visiting tourists for picnic and boating. It is also known to
contain significant natural geological features, such as caves and chocolate-shaped hills that
are highly potential for ecotourism attractions. Also, the Watershed still contains significant
forests that are productive habitat for a good number of significant wildlife species in the Island,
such as the tarsier, flying lemur, fruit bats, tariktik, and others.
D. Upper Bukidon River Basins

123. Bukidnon22 is the only province in Mindanao that does not have a coastline. The whole
eastern and southwestern border adjoining Agusan, Davao and Cotabato are lofty mountains and
densely forested mountains. The greater part of the province is gently rolling grassland plateau with
deep and wide canyons of the Cagayan, Pulangui and Tagoloan Rivers.
124. The Mt. Kitanglad Range lies in between 8°7′42″N and 124°55′30″E. The importance of Mt.
Kitanglad extends to neighboring provinces. In terms of watershed, Mt. Kitanglad is the
headwater source of several major river systems draining North and Central Mindanao (Pulangi,
Manupali, Cagayan and Tagoloan rivers). It is also the homeland of the indigenous peoples
(Bukidnon, Higaonon and Talaandig tribes) who recognize Mt. Kitanglad as the wellspring of
their tradition. There is high floral and faunal diversity found only in Mt. Kitanglad where 168
birds (62% endemic), 58 families and 185 species of trees and other woody vegetations, 63
mammals (27% endemic) and 57% constitute amphibians and reptiles (about half of it are
endemic). Potentials for ecotourism in the Mt. Kitanglad Range Natural Park (MKRNP) is
currently being assessed as it is the second highest mountain next to Mt. Apo in Mindanao.23
Although MKRNP is a protected area, it is experiencing severe effects brought about by habitat
destruction or loss, decline and loss of wildlife species, reduction of water quality and quantity,
22
Bukidnon Socioeconomic Profile, 2008.
23
Mt. Kitanglad Range Natural Park handout, 2006.
108
Appendix 1
lower agricultural productivity and limited financial resources, agricultural development, and
cultural loss of indigenous people (Mirasol, 2003).
125. The Kalatungan Mountain Range is a mountain range located in the central portion of the
province of Bukidnon. It is one of the few areas in the province covered with old growth or mossy
forests. It covers an area of approximately 213.0134 km² (82.24493 mi²), with about 113.7175 km²
(43.90657 mi²) identified as part of the critical watershed area declared under Presidential Decree
127, issued on June 29, 1987 (Muleta-Manupali Watershed). The water from these two rivers
(Muleta and Manupali Rivers) is presently supporting the multimillion dam project of the National
Irrigation Administration (NIA) of the Philippines. They then ultimately drained into the Pulangi
River, which is the site of the hydroelectric dam of the National Power Corporation. The mountain
range is located in the central section of the province of Bukidnon. It lies between the coordinates
8°00’ and 8°60’ latitude and between 124°35’ and 124°60’ longitude. It is bounded on the north by
the municipality of Talakag, on the west by the municipality of Lantapan and the city of Valencia,
and on the south by the municipality of Pangantucan. Its eastern side is bordered by both Talakag
and Pangantucan.24
126. Among the issues and concerns are25: a) soil acidity and soil erosion especially in steeply
sloping farmlands; b) kaingin farming for high value crop production; c) pest infestation; d)
intensive use of chemicals and insecticide in vegetable farming; e) low potability of water
supply; f) occasional flash flooding; g) weak enforcement of forestry laws; and h) conflicting laws
particularly against tribal customs and traditions.
127. The Upper Bukidnon River Basin under INREMP covers the provinces of Bukidnon and
Misamis Oriental, though technically, it extends to North Cotabato at its lower reaches. The
headwaters of Upper Bukidnon River Basin is in Mt. Kitanglad Protected Area and drains into
several places. Clockwise from the north, it drains to the municipalities of Manolo Fortich,
Sumilao, Malaybalay City, Lantapan, Talakag, Baungon, and Libona. The river basin is divided
into six SWS (Table A1.10), of which the largest is Sumilao-Manolo Fortich-Malitbog with an
area of 1,326 km2 or 28% of the total basin area and the smallest is Kitanglad-Manupali with
510 km2 (11%).
Table A1.10. Sub-Watersheds and Coverage within the Upper Bukidnon River Basins
No SWS Area (km2) % from Total URB Municipality No of Barangays
1 Kitanglad-Manupali 509.57 10.6 3 16
Lantapan 14
Talakag 1
Valencia City 1
2 Talakag 650.07 13.5 1 21
Talakag 21
3 Sumilao-MF-Malitbog 1,326.05 27.6 4 32
Impasugong 1
Malitbog 5
Manolo Fortich 16
Sumilao 10
4 Malaybalay-Impasugong 525.85 11.0 4 45
Impasugong 6
Lantapan 5
Malaybalay 33
Valencia City 1
5 Baungon-Libona 948.21 19.8 5 34
24
Community Environment and Natural Resources Office (CENRO)-Malaybalay, Bukidnon (1987). "Assessment on the Vegetative
Cover of Mt. Kalatungan Range".
25
Based on issues and constraints presented in the Watershed Management Plan for Manupali Watershed.
109
Appendix 1
No SWS Area (km2) % from Total URB Municipality No of Barangays

Baungon 16
Libona 11
Manolo Fortich 0
Talakag 1
CDO 6
6 Kalatungan-Muleta 838.96 17.5 10 64
Damulog 6
Dangcagan 10
Don Carlos 11
Kadingilan 10
Kitaotao 6
Kibawe 11
Maramag 1
Pangantucan 9
6 TOTAL 4,798.70 100.0 27/19* 212
* Counting of covered municipalities avoided double counts.
128. The river basin covers 19 municipalities and cities and 212 barangays. The total
population of the watershed is estimated at 571,739 with population density of 120 persons per
km2. There is no estimate of poverty incidence in the river basin. However, for Bukidnon, the
poverty incidence in 2006 is 37.2%26.
129. The different indigenous people living within the watershed are Bukidnon, Talaandig,
Higaonon, Manobo, and Matigsalog. The indigenous inhabitants around Mt. Kitanglad are
known collectively as Bukidnon; but ethnolinguistically identified as Higaonon for those
indigenous communities north of Malaybalay down to the province of Misamis Oriental.
Southward from Malaybalay, specifically those communities around Lantapan and Talakag they
refer to themselves as Talaandig. These two groups speak the Binukid language, which is a
northern branch of the Manobo language stock. There are some minor dialectal variations
among these communities, especially in the inflections and lexicons.
130. Climate and Rainfall. The northern part falls under the third climatic type, where there is
no very pronounced maximum rain period with a short dry season lasting only for one to three
months. The southern part, beginning from Malaybalay, falls under the fourth climatic type
where there is no very pronounced maximum rain period and no dry seasons. Rains are very
frequent, almost daily for the rest of the year. The average annual rainfall is 2,447 mm based
from 2003-2007 PAGASA data in Malaybalay. The maximum rainfall occurs during September.
The rainy season generally starts in May and lasts until October.
131. Topography and Slope. The elevation of the watershed ranges from 0 masl at the
coastal area to 2,900 masl at the headwaters in Mt. Kitanglad. About 32% of the area have
slopes of less than 18% (flat to rolling), 19% have 18-30% slope (steep) and 49% have over
30% slope (very steep to critical slope). Of the areas classified as forest lands, 9% have slopes
of 0-18%, while 91% have slopes of 18% or higher. For A & D lands, 52% have 0-18% slope
while 48% have slopes over 18%. It may be noted that of the total cultivated area planted to
annual crops and perennial crops, 60% are in areas with slopes of greater than 30%.
132. Water Resources. The river basin has an estimated 1,725 km of rivers and major
tributaries. However, owing to its mountainous area, it has the least of inland waters with only
83 ha. From its headwaters in Mt. Kitanglad National Park, it drains to several municipalities,
namely: Manolo Fortich, Sumilao, Malaybalay City, Lantapan, Talakag, Baungon, and Libona.
The estimated stream flow ranges from 6.024 m3/sec to as high as 9.099 m3/sec.
26
Philippine Statistical Yearbook 2008.
110
Appendix 1
133. Forest and Vegetation Types. Out of the 479,871 ha of basin area, 221,739 ha or 46%
have been classified as forestland, while 258,131 ha or 54% are A&D lands. Of the 221,739 ha
of forest land, only 64,779 ha or 29% are with forest cover, 103,884 ha or 47% are cultivated
and planted to annual or perennial crops, and the rest are grassland, shrubs or wooded
grassland. On the other hand, of the 258,131 ha of A & D lands, 1,148 ha or 0.4% are with
forest cover, 222,812 ha or 86% are cultivated and planted to annual or perennial crops, and the
rest are shrubs, grassland, wooded grassland or built-up areas.
134. The River Basin has few remaining forest as a result of wanton logging activities in the
early 60s up to early 80s. The remaining forest cover is mostly in Mt. Kitanglad and Mt.
Kalatungan. At the lower portion of Mt. Kitanglad are minor forest species and residual
dipterocarp forest. Plant families include Fabacae, Lauraceae, Myrtaceae, Podocarpaceae, and
Clusiaceae.
135. Biodiversity Assets. The river basin includes Mt. Kitanglad Range Natural Park
(MKNRP) which has a unique and immense natural diversity of its flora and fauna and
contributes to national heritage27. Consequently, it is a priority area for biodiversity conservation
of the Philippines (KBA 106). Among the wild life species in this park are the Mindanao Lorikeet,
Mindanao Racquet-tail, Mindanao Scops-owl, Slaty-backed Jungle-flycatcher, Red-eared
Parrotfinch, Apo Myna, Philippine Duck, Philippine Eagle, Philippine Hawk-eagle, Mindanao
Brown-dove, Spotted Imperial-pigeon, Giant Scops-owl, Philippine Eagle-owl, Blue-capped
Kingfisher, Mindanao Broadbill, Shrew Mice, Kaguang, Monkeys, Philippine Pygmy Squirrel,
Mindanao Flying Squirrel, Bearded Pig, Philippine Deer and Philippine Leafbird.
136. Minerals Resources. The area is underlained by Quarternary volcanic flows and
pyroclastic materials. The volcanic flows are andesitic to basaltic in composition. Chemicals
have been observed within this rock suite to include pyrite (FeS4) and Chalcopythe (Cu2 Fe2),
and ore or copper, sphalrite and zinc. DENR data show that there are no mining claims on
record.
4. Ancestral Domains
137. Table A1.11 shows that of the four INREMP sites, Bukidnon has the largest area (738,628.00 ha)
with ADs partially or wholly covered by the Project.
Table A1.11. Ancestral Domains within the Upper Bukidnon River Basins
Status No Hectares Beneficiaries
AD under social preparation/ boundary
conflict 4 33,514.50 41,448
Completed survey (AD/AL) 5 539,279.90 -
Approved CADTs 7 146,067.10 18,611
AD ready for survey 2 17,893.50 -
Approved CALTs 4 1,872.90 1,679
Total 22 738,628.00 61,738
138. Conflicting Claims for Ancestral Domain. At present, there are three prominent
stakeholders within Mount Kitanglad. The immediate and culturally important stakeholders are
the Hiagaonon-Talaandig tribe, who are the indigenous cultural communities collectively
referred to as the Bukidnons. The various municipal governments and the dumagats constitute
the second set of stakeholders. Mt. Kitanglad is geopolitically connected to eight municipalities
surrounding it, namely: Malaybalay, Lantapan, Talakag, Baungon, Libona, Manolo Fortich,
27
Office of the Protected Area Superintendent, Mount Kitanglad Range Natural Park, DENR,
www.philcom.ph/gov/kitanglad/index.html, Accessed 28 June 2009.
111
Appendix 1
Sumilao, and Impasugong. The DENR represented by its regional units, is the third major
stakeholder. Since being declared as a protected area, Mt. Kitanglad is currently managed by
the Protected Area Management Board (PAMB) with the DENR and the LGU representatives
playing significant roles. Because of the various stakeholders and multiple policies governing
Mt. Kitanglad, there emerged two competing models for proposing an ancestral domain claim
application in the area. The first model is called the “Unified Claim” with the prominent leaders of
theTalaandig-Higaonon tribe as proponents. The second model is “by municipal claim”
proposed by the municipal mayors who are members of the PAMB.
139. Unified Claim. Prior to 1995, twelve (12) Higaonon-Talaandig tribes individually filed a
Certificate of Ancestral Domain Claim (CADC) with the Provincial Environment and Natural
Resources Office (PENRO) of Bukidnon. However, the processing of the individual claims was
delayed due to overlapping boundaries. To resolve the issue and simplify the application
process, the concerned tribal leaders held a consultative meeting and decided to unify their
claims by submitting only one application covering the entire Mt. Kitanglad Range Natural Park.
In simple terms, the “unified claim” implies a collective CADC application of multiple claimants.
The Higaonon-Talaandig Tribe submitted the unified ancestral domain claim to the PENRO of
Bukidnon on May 17, 1995, following the guidelines set forth by DAO 3-93. Consequently, the
unified claim covered a total land area of over 40,000 hectares, which included the entire Mt.
Kitanglad.
140. The tribal elders in Mt. Kitanglad consider the ‘unified claim’ as a cultural claim. The
elders averred that the cultural integrity of the tribe is centered on granting them security of
tenure over the land they consider as their ‘source of livelihood, place of worship, and their living
pharmacy’. While there are sub-groups among the tribes, they affirm that their common
language, history and ancestry bind them together. They contend subdividing their claims
according to municipal boundaries is tantamount to ‘dividing their culture, their oral history, their
spiritual beliefs, and their cultural integrity’.
141. Municipal Claim. Under NIPAS Law, the PAMB is the policy and management body within
a protected area. Eight PAMB members who are the current mayors of the municipalities
surrounding Mt. Kitanglad are against the ‘unified claim’ because they want the ancestral claim
to be done by municipality. The alternative to the Unified Claim proposes that indigenous
cultural community members can individually or collectively apply for CADC provided that the
land area claimed is not already titled to private individuals and within the boundary of the
municipality they reside. Municipal mayors are apprehensive that the selected IP leader under
the ‘unified claim’ would consequently exercise political jurisdiction of large areas of the affected
municipalities. Tribal leaders contend that a unified claim would provide an opportunity to
subscribe to a unified policy of sound environmental management and non-destructive
livelihood as may be specified in both the protected area and ADSDPPs. Lastly, local chief
executives believe that the indigenous cultural communities do not possess the capability and
resources to administer a vast land area with diverse natural resources.
5. Investments, Trade and Industry Within the URB
142. Infrastructure. The provinces of Bukidnon and Misamis Oriental have extensive road
connections via the national highway from any point in Mindanao and could be reached using all
modes of land transportation. About 57% of the national road in Bukidnon is paved with either
concrete or asphalt and the rest is gravel surface. Provincial road is only 3% paved and 97%
gravel, municipal roads 11% paved, 57% gravel and 32% earth while barangay roads are
mostly gravel and about 60% earth.
143. As of December 2006, estimated total irrigable area of the province is 87,700 hectares
and the total service area is 31,328 hectares equivalent to an irrigation development rate of
112
Appendix 1
36%. Within the river basin, the existing area under the communal scheme is about 2,180
hectares. The bigger area developed under irrigation covering the basin municipalities are those
that are under the Pulangui and Manupali RIS with a combined service area of about 14,941 ha.
144. Agriculture. Agriculture is the primary source of livelihood of the people in the basin with
64% of its area cultivated and planted to annual crops in addition to 6% that is planted to
perennial crops. Corn, palay and sugar are the three major crops produced although banana,
pineapple, coffee, cassava, rubber and abaca are also produced in commercial quantity. Due to
its unique agroecological characteristics quite similar o the Chico URB, Bukidnon is also
engaged in the production of priority and high value vegetable crops, such as asparagus,
lettuce, broccoli, and cauliflower. The province registered 1,355 farms with 5.66 million animal
heads in 2006. The establishment and operations of multi-national fruit plantations such as
DOLE Philippines, Inc. Mt. Kitanglad Agri-ventures, Inc. (MKAVI), Celebrate Life and Antonio M.
Soriano (AMS) group of companies also provide the impetus for economic development.
145. Tourism. Mt. Kitanglad has been regarded as one of the favorite trekking destinations by
local and foreign mountain enthusiasts. Records show that at least 1,400 individual visit the park
per year, of which 6% are foreigners. Nature trekking, camping, birdwatching, educational tour
and nature photography are among the existing ecotourism activities usually undertaken by the
visitors within the park. Complimentary to these activities (and planned for the future) are
butterfly garden/boardwalk, caving, canopy and waterfall adventure, rock climbing, botanical
gardens, horse trail riding, mountain biking, wildlife rescue station and medico-ecotourism.
Another tourist attraction is the so-called Asia’s longest Dual Cable Zipline housed at the
Dahilayan Adventure Park in Manolo Fortich, Bukidnon. Total length of cables is 2,460 meters
and elevation drop is 100 meters with estimated speed ranging from 60-100 kph.
146. A main tourism event within the province is the Kaamulan, a festival by tribal groups who
trek down from their traditional mountain dwellings to gather in unity, wearing their intricately
woven costumes studded with trinkets, anklets, earrings, necklaces, leg lets, headdresses and
amulets. The hill tribe’s members dance, chat, compete in indigenous sports and perform
ancient rituals. Each activity is a meaningful ceremony that reflects the richness and diversity of
their culture.
E. Lake Lanao Watersheds

147. Lake Lanao28 is located in the province of Lanao del Sur of the Autonomous Region of
Muslim Mindanao (ARMM). It is a proclaimed watershed reserve by virtue of Proclamation
No.871 issued on February 26, 1992 and is included in the initial components of the National
Protected Areas System (NIPAS) governed under NIPAS Act of 1992 (Republic Act No. 7586).
ARMM was created in August 1, 1989 by virtue of Republic Act No. 6734 or known as the
Organic Act of Autonomous Region of Muslim Mindanao. The province is located south of
Lanao del Norte province. On the east is Bukidnon province, and on the south, the provinces of
Maguindanao and North Cotabato. To the southwest is Illana Bay, part of the Moro Gulf.
148. Lake Lanao is the largest lake in Mindanao, the second largest in the Philippines and is
considered as one of the 15 ancient lakes in the world29. It has five watersheds with rivers and
major tributaries totaling 431 km. The waters from these rivers and tributaries drain into the lake
and goes out through only one outlet, the Agus River in Lanao del Norte that flows southwest
into Iligan Bay via two channels; Maria Cristina Falls, the largest waterfall in the country and
28
Lanao del Sur Socioeconomic Profile, 2007.
29
Samira Gutoc. http/www/maranao.org
113
Appendix 1
Linamon Falls. The total area of its inland water is 336 ha. Lake Lanao has a surface area of
about 36,300 ha.
149. A hydroelectric plant installed along Lanao Lake and Agus River generates 70% of the
electricity used by the people of Mindanao. Agus River supports seven (7) hydroelectric power
plants of the National Power Corporation (NPC) with a combined capacity of 727 megawatts.
150. Among the issues and concerns in this river basin are30: a) changes in climatological
conditions as manifested by i) rainfall irregularity, intensity and erosivity; and ii) reduction in
annual rainfall and rainy days; b) land degradation attributed to: i) slope and terrain of
watershed; ii) dislocation of timberlands in flatlands and A &D lands in slopes above 18%; iii)
deforestation; iv) agricultural activities encroachment into fragile ecosystems; and iv) sand and
gravel quarrying that is encroaching critical zones; and c) water utilization as exhibited by: i)
lake has lot of water for electric generation while most localities in the lake area do not have
water for drinking or irrigation; ii) most agricultural areas are rainfed; iii) serious siltation of the
littoral zones of Lake Lanao; iv) overdrawing of water from the lake; and v) unutilized aquifer in
Lumba-a Bayabo.
151. Lake Lanao, with an area of 36,274 ha, is the second largest lake in the Philippines. Its
water comes from five (5) watersheds around it. These are (Table A1.12): Taraka-Gata with an
area of about 548 km2 or 39% of the basin area, Malaig with 354 km2 (25%), Bubong with 195
km2 (14%), West with 175 km2 (12%) and Saguiaran-Marawi with 141 km2 (10%) for a total river
basin area of 1,413.39 km2. Its outlet, Agus River, with a total length of 36.5 km, cuts across the
municipalities of Saguiran, Pantar and Baloi and drains into Iligan Bay. The river basin covers
27 municipalities and city and 731 barangays.
152. The total population of the watershed is estimated at 720,649 or an average density of
510 persons per km2. There is no estimate of poverty incidence in the river basin. However, for
Lanao del Sur, the poverty incidence in 2006 is 58.5%31. It is the most populated INREMP site
though only third in terms of land area. Clustering of settlements is most discernible around the
lake.
Table A1.12. Sub-Watersheds and Coverage within the Lake Lanao River Basin
No of
No SWS Area (km2) % From Total URB Municipality
Barangays
1 Bubong 195.46 13.83 6 89
Bubong 31
Ditsaan Ramain 34
Maguing 4
Marawi City 12
Mulondo 7
Taraka 1
2 Malaig 354.03 25.05 7 87
Bayang 7
Butig 16
Lumba-Bayabao 6
Lumbatan 15
Lumbayanague 22
Masiu 19
S. Dumalondong 2
3 Taraka Gata 547.89 38.76 7 199
Lumba-Bayabao 32
Maguing 29
30
Integrated Development Plan: Lake Lanao-Agus River Watershed and its Environs
31
Philippine Statistical Yearbook 2008
114
Appendix 1
No of
No SWS Area (km2) % From Total URB Municipality
Barangays
Masiu 9
Mulondo 18
Poona Bayabao 25
Tamparan 43
Taraka 43
4 Saguiaran-Marawi 141.05 9.98 3 153
Saguiaran 30
Marawi City 86
Piagapo 37
5 West 174.96 12.38 11 203
Bacolod Grande 25
Balindong 34
Bayang 14
Binidayan 16
Ganassi 16
Madalum 37
Madamba 13
Marantao 15
Pagayawan 3
Pualas 13
Tugaya 17
5 TOTALS 1,413.39 100 34/27* 731
* Counting of covered municipalities avoided double counts.
153. Although only 21% of the area is cultivated and planted to annual crops, agriculture
remains the primary source of livelihood of the people. Rice, corn, coconut, root crops and
vegetables are cultivated but the agricultural production is not sufficient to meet the need of the
province. This is due to inadequate irrigation, inefficient farming methods, poor agricultural
facilities and post-harvest facilities. Other sources of income include handicrafts and timber
harvesting activities.
154. The Maranaos and External Relations. The indigenous peoples in the river basin are the
Maranaos, with pockets of Higaonon, Kolibugan and Iranon. Together, they constitute about
91% of the population of the province of Lanao del Sur. To many Filipinos, Mindanao is noted
for its Muslim secessionist movements and the so-called Mindanao problem. But unknown to
many, inter-marriage has found its way among the two major groups in Mindanao which had a
long history of prejudice and conflict - the Muslims and the Christians.32
155. The Maranao has to contend with layers of identity: tribal culture with attendant parochial
characteristics; identification with Bangsamoroness and struggle for self-determination; passport
affiliation as part of being Filipino;and part of the global Ummah. Any of these identities can
clash manifested in dilemmas such as: to use taritib or court system when dealing with murder
or rido; choosing to get married to mestizo or pure-bred Maranao. Solutions are being provided
in part on, “Towards a Culture of Peace.” Ongoing initiatives are directed towards: a culture of
dialogue that fosters interfaith and inter-tribal communications; a culture of life that denounces
killing as if one kills the whole of humanity; and Tawheed, or submission to the will of Allah.33
156. Climate and Rainfall. The basin area falls under the 4th climatic type (Corona’s
Classification) where there are no pronounced dry or wet seasons. The area is outside the
typhoon belt. The average annual rainfall is about 2,440 mm. The highest recorded annual
rainfall is 5,235 mm at Lumba-Bayabo station in 1992.
32
Myrma Jean Aban Mendoza. "Ethnic Identity Among Marginal Maranaos in Iligan City." 21 October 2004.
33
Samira Ali Gutoc. Critique Of The Meranao Peace Module. Undated.
115
Appendix 1
157. Topography and Slope. The elevation of the river basin ranges from 700 m at Lake
Lanao to 2,600 masl in the municipalities of Lumba-Bayabao. An estimated 62% of the total
area have slopes of 0-18% (flat to rolling), 22% have 18-30% slope (steep) and 16% have over
30% slope (very steep to critical slope). Of the areas classified as forest lands, 54% have slopes
of 0-18%, while 46% have slopes of 18% or higher. For A & D lands, 83% have 0-18% slope
while 17% have slopes over 18%. Of the total cultivated area planted to annual crops and
perennial crops, only 4% are in areas with slopes of greater than 30%.
158. Forest and Vegetation Types. Out of the 141,000 ha of basin area, 102,088 ha or 72%
have been classified as forestland, while 39,251 ha or 28% are A&D lands. Of the 102,088 ha of
forest land, 78,826 ha or 77% are with forest cover, while the remaining 23% are distributed
among other land uses such as built-up area, annual and perennial crops, shrubs and
grasslands.
159. On the other hand, of the 39,251 ha of A&D lands, 2,186 ha or 6% are with forest cover,
37,065 ha or 94% are currently under other land uses, most of which are cultivated and planted
to annual or perennial crops, and the rest are shrubs, grassland, wooded grassland or built-up
areas. About 81,012 ha or 58% of the basin have forest cover, of which 97% are legally
classified forest lands and 3% are A&D lands. The forest cover is composed of 46,220 ha or
57% closed canopy forest, 34,792 ha or 43% open canopy forest.
160. Based on the Lake Lanao Integrated Development Plan, there exist about 40,000 ha of
old growth dipterocarp forests, 35,000 ha of residual dipterocarp forests, 5,500 ha of sub-
marginal forests and 2,200 ha of mossy forests in the watersheds. There are also some 1,300
ha of residual dipterocarp forests within A&D areas. The old growth dipterocarp forest is
composed of 44% common hardwoods, 40% construction and furniture wood, and 16% other
species. Among the common hardwoods are Almon (Shorea almon), Bagtikan (Parashorea
plicata) Kalunti (Shorea kalunti), Mayapis (Shorea squamata), Nato (Palaqium luzoniensis), Red
lauan (Shorea negrosensis), Tanguile (Shorea philippinensis) and White lauan (Pentacme
contorta). The furniture and construction wood species are Apitong (Dipterocarpus grandiflorus),
Bangkal (Antocephalus cadamba), Batikuling (Litsea leytensis), Bolong-eta (Diospyrus
pilosanthera), Dalingdingan (Hopea foxworthii), Ipil (Instia bijuga), Kalumpit (Terminalia
microcarpa), Kamagong (Diospyrus philippinensis) and Katmon (Dillenia philippinensis).
161. Biodiversity Assets. Lake Lanao Watershed is an important biodiversity site in the
Philippines that is of global significance and is therefore one of the priority sites for conservation
(KBA 109). The lake is home to 18 endemic species of freshwater fish and supports a large
number of waterfowls. Among other species, the lake is home to the native cyprinids consisting
of 20 species of the genus Barbodes and several genera – Mandibularca, Spratellicypris,
Cepahlokompsus and Capatulus. These species are accordingly under threat by the
introduction of predatory marine species such as white goby. Though the watershed does not
have a good baseline data for biodiversity, it was reported that in two barangays that were
surveyed during the preparation of the Integrated Development Plan of the Watershed, 27
species of trees, shrubs, and vines were observed while 41 medicinal plant species were
recorded. Likewise, available information also shows that there are six (6) bird species in the
watershed. Among them are the Halikyon chloris (white collared kingfisher), Corvus enea
(slender bird crow), and the Dubulens ibis coromandus (cattle egret).
162. Mineral Resources. Metallic minerals are mostly found along the boundary of the
watershed with Lanao del Norte and North Cotabato. These include copper, gold, chromium,
manganese and silver. Non-metallic minerals are found in the North-eastern side of the
watershed. These are clay, gypsum, phosphate, bentonite sand, gravel and feldspar.
116
Appendix 1
4. Land Tenure
163. For lack of tenure data within INREMP sites, a case study was conducted in two
municipalities of the Lake Lanao River Basin. Based on interviews34, the following were
determined as regards land ownership and farming:
(i) Most of the attendees do not own the land, which they are farming but are instead
renting. The rent per hectare is equivalent to 30% of the harvest or about 14 sacks
of palay (paddy rice) on the average per harvest. They do not earn much from
farming but they engage in it since in the absence of a more financially rewarding
alternative. Even if they want to get into business, they do not have the needed
capital. They usually avail of loan from loan sharks outside of the community
although there are also money-lenders within the community. Even if they know that
what the loan sharks are doing is a sin, they still borrow money because if not they
will go hungry. Sometimes, the lenders are also Maranaoans. Although there are
government banks providing loan, they are not able to avail of it because they
cannot meet the bank requirements.
(ii) Most of them take out loans for farm inputs such as fertilizer. They usually take out
a loan equivalent to P10,000 per hectare of the land they farm. Of that amount,
P3,000 is spent for land preparation. Payment terms would be in the form of palay.
For example, if a farmer borrows two thousand, that amount is paid back with 10
bags of palay with each bag costing at least P500 if the palay is dry.
(iii) The cost of fertilizer is: P1,050 for 14-14; P1,100 for Urea; and P600 for 21-00.
They use 8 bags of fertilizer per hectare in irrigated land. If hybrid fertilizer is used
20 kilos is needed. Each 40 kg-bag of hybrid fertilizer costs P800.
(iv) Land is not enough for the farmers. To compensate for the size of the farms, the
participants suggested to INREMP to provide them with farm inputs, including farm
machineries, carabaos, and fertilizers. With additional inputs, they estimated that
they could increase the yield from 50 sacks to 200 sacks per ha.
(v) The yield per hectare if hybrid fertilizer is used is 80 bags while a non-hybrid
fertilizer will have a yield of 60 bags.
(vi) The farmers commonly grow rice, which yields them 50 sacks or 40 kilos per
harvest. Thirty percent of their harvest goes to the rent for the land that they are
farming. A sack of palay is valued at P350 during rainy season and P500 during dry
season. What they earn from farming is not even enough to pay the debts they have
incurred. Most of the time, there is no profit left for them after harvesting.
5. Infrastructure Investments Within the URB
164. Entry to the province is via the concrete paved national highway from Cotabato City or
Iligan City. All municipalities within the province are accessible during all weather condition by
any means of land transportation. Within the river basin, the national road is about 122
kilometers, majority of which is the Lake Lanao circumferential road connecting all the lakeshore
municipalities. Provincial road within the basin is about 374 km and municipal road is 344 km.
Of these total road length, 71 km are paved, 290 km gravel and 479 km are classified as earth
road.
165. The potential irrigable area within the basin is 15,116 ha with 9,300 classified as national
scheme and 5,816 ha as communal. Irrigated area within the basin to date is about 6,320 ha
equivalent to a development rate of 41.8%. Of these existing area, the 3,000 ha under Rugnan
RIS and 1,200 under Masiu IS are undergoing rehabilitation works under the ADB funded
34
PPTA fielding in Bubong, Lanao del Sur on 8 April 2009. Notes from Roberto Rapera.
117
Appendix 1
SPISP and CARP-IC, respectively, while about 1,963 ha of the existing communal scheme is
proposed for rehabilitation and improvement.
166. There is no disaggregated distribution of access to potable water supply by municipality
but the provincial figure shows that 68% of the total households have access to potable water
supply. The residents in barangays drawing potable water from Lake Lanao declare that these
sources are safe but looking at the health statistics of the province, the top two causes of
morbidity is diarrhea and skin diseases.
118
Appendix 1
V. GIS Mapping, Modeling and Database Development
Definition of Terms
Advanced Land Observing Satellite (ALOS) follows the Japanese Earth Resources Satellite-1 (JERS-1)
and Advanced Earth Observing Satellite (ADEOS) and will utilize advanced land-observing
technology. ALOS will be used for cartography, regional observation, disaster monitoring, and
resource surveying
Barren lands (also bare area) – land not covered by (semi-) natural or artificial cover. This includes
among others, sand dunes, river wash, lahar-laden areas and rocky or stony areas.
Broadleaved forest – Forest with a predominance (more than 75 percent of tree crown cover) of trees of
broadleaved species.
Built-up areas – composed of areas of intensive use with much of the land covered by structures. It
includes cities, towns, villages, strip developments along highways, transportation, power, and
communication facilities, and areas occupied by malls, shopping centers, industrial and
commercial complexes, and institutions that may, in some instances, be isolated from urban
areas.
Closed canopy forest – formation where trees in various storey and undergrowth cover a high proportion
(>40 percent) of the ground and do not have a continuous dense grass layer. They are either
managed or unmanaged forests, in advance state of succession and may have been logged over
one or more times, having kept their characteristics of forest stands, possibly with modified
structure and composition.
Conifer (coniferous) forest – Forest with predominance (more than 75 percent of tree crown cover) of
trees of coniferous species
Cultivated lands – land not classified as forest or other wooded land used by man for agriculture or
pasture
Cultivated lands planted to annual crops (also annual cropland) – land cultivated with crops with a
growing cycle of up to one year, which must be newly sown or planted for further production after
harvesting
Cultivated lands planted to perennial crops (also perennial cropland) – land cultivated with long term
crops that do not have to be replanted for several year after harvest. Harvesting components are
not timber but fruits, latex and other products that do not significantly harm the growth of the
planted trees or shrubs.
Decision support system - a computer-based system that helps decision-makers confront ill-structured
problems through direct interaction with data and analysis models
Forest plantations (also Plantation forest) – forest stands established by planting or seeding in the
process of afforestation or reforestation
Geographic Information System (GIS) - an organized collection of computer hardware, software,

geographic data, and personnel designed to efficiently capture, store, update, manipulate,
analyze and display all forms of geographically-referenced data and information
Grasslands – areas predominantly vegetated with grasses such as Imperata, Theneda, Saccharum spp.,
among others.
119
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Inland waters, including fishponds, lakes and water reservoirs – the bodies of water surrounded by land
(e.g. rivers, lakes, streams, mudflats, pods/fishponds, dams and reservoirs)
Mangrove forests – forested wetlands growing along tidal mudflats and along shallow water coastal areas
extending inland along rivers, streams and their tributaries where the water is generally brackish
and composed mainly of Rhizopora, Bruguiera, Ceriops, Avicenia, Aegiceras and Nipa (Nipa)
species.
Marshlands – a natural area usually dominated by grass-like plants such as cattails and sedges that are
rooted in bottom sediments but emerge above the surface of the water. It contains emergence
vegetation and usually develop in zones progressing from terrestrial habitat to open water.
Open-canopy forest – formations with discontinuous tree layer with coverage of at least 10% and less
than 40%. They are either managed or unmanaged forests, in initial state of succession.
Phased Array type L-band Synthetic Aperture Radar (PALSAR) is an active microwave sensor using L-
band frequency to achieve cloud-free and day-and-night land observation
Shrublands – land where the dominant woody vegetation are shrubs, generally of more than 0.5 meter
and less than 5 meters in height and maturity and without a definite crown. The growth habit can
be erect, spreading or prostate. The height limits for trees and shrubs should be interpreted with
flexibility, particularly the minimum tree and maximum shrub height, which may vary between 5 to
7 meters approximately.
Wooded grasslands – areas predominantly vegetated with grasses, such as Imperata, Themeda,
Saccharum and where the trees cover between 5 to 10% of the area and their height may reach 5
meters at maturity.
120
Appendix 1
A. Summary of the Report
167. This working paper describes the area to be included within the scope of Integrated Natural
Resources and Environmental Management Project (INREMP) from a spatial perspective. Geographic
information systems (GIS) played a major role in mapping and modeling of the project area (i.e. four river
basins and the twenty-three subwatershed subprojects). The report is divided into three parts: Part I
describes the process in characterizing the individual river basins on the basis of administrative
boundaries, land cover, land use, legal classification, slope and other biophysical descriptors. GIS was
also used in watershed analysis specifically in delineating the subwatersheds in each river basin. The
resulting spatially explicit information was used in the preparation of the INREM project feasibility study.
Part II discusses the same process as it should be applied during project implementation with particular
focus on the role of GIS in land capability classification, land use suitability analysis and zoning. Part III
describes the features of the Upper River Basin GIS database development for monitoring and evaluation
(DDM&E) of the project area. In addition, the DDM&E will provide a unified and standard geodatabase
design containing the characteristics of the natural resources and environment in the project area. In both
Part II and Part III processes and systems, the Project shall involve community stakeholders in the land
capability classification, land use suitability analysis and zoning and in the in the DDME.
168. Participatory GIS Mapping, Modelling and Database Management as applied would entail
the participation of local people/community stakeholders in the form of information sharing like
eliciting local people’s knowledge; consultation as undertaken in participatory resource
assessment; decision making to include analyses and finding solutions and community action
where community initiates activities or sub-projects. INREMP shall endeavour for community
participation in the GIS process as an indicator of empowering the local project stakeholders.
169. While the GIS exercise and other scientific tools like Erosion Potential Estimate (EPE) be
used by the project for data analysis and modelling, INREM project should be sensitive and
include in the whole process indigenous spatial knowledge (ISK) which has proven to be
effective as it embodies practical knowledge of generations. Furthermore, the project has to be
cautious and make the GIS tools accessible to the local people especially to the indigenous
peoples who largely populate targeted URBs.
170. The project area, which comprise the river basins of Chico in Luzon, Wahig-Inabanga in
the Visayas, Upper Bukidnon and Lake Lanao in Mindanao total an estimated 1,138,555 ha.
These are located in nine provinces, 81 municipalities and cities, and 1,332 barangays around
the country. Characterization was undertaken using data from various sources and organized
according to distribution and extent among the different local government units but more
importantly, among the different subwatersheds that were delineated in each river basin. A
spatial combination of land cover, land classification and slope categories was undertaken to
generate management prescriptions on a subwatershed basis. After careful processing, a total
of 23 subwatersheds were delineated for the project area: eight (8) in Chico river basin, four (4)
in Wahig-Inabanga river basin, and six (6) in Upper Bukidnon and five (5) Lake Lanao.
171. The total cost for GIS-based land capability classification, land use assessment and
zoning, including the construction, installation and operation of the DDM&E is estimated at
Thirty Seven Million Two Hundred Thirty Thousand Pesos (Php 37,230,000).
121
Appendix 1
B. GIS mapping, modeling and database development
1. Introduction
172. The INREM project approach recognizes that land use can only be sustainable if the
natural boundaries of ecosystems are used as basis for delineation and zoning. Government,
thru national agencies like the DENR, Department of Agriculture, among others and local
executives (i.e. in the provinces, municipalities/cities and barangays) should take cognizance of
this requirement for success. Thus, natural boundaries and legal boundaries should be
consequently visualized on maps in order to enhance understanding and allow for a targeted
and objective delineation of land use zones. On this premise, geographic information systems
(GIS) was used in mapping, analysis and modeling of the characteristics of the project area and
expressing these in terms of the administrative boundaries as well as the watershed
boundaries.
173. This report consists of three parts. Part I describes the GIS process in characterizing the
individual river basins on the basis of land cover, land use, legal classification, slope and other
biophysical descriptors and their distribution along the administrative boundaries. GIS was also
used in watershed analysis specifically in delineating the subwatersheds in each river basin.
The resulting spatially explicit information was used in the preparation of the INREM project
feasibility study. Part II discusses the same process as it should be applied during project
implementation with particular focus on the role of GIS in land capability classification, land use
suitability analysis and zoning. Part III describes the features of the Upper River Basin GIS-
based decision support system (RBMIMDSS) for monitoring and evaluation (M&E) of the project
area. In addition, the DDM&E will provide a unified and standard geodatabase design containing
the characteristics of the natural resources and environment in the project area.
174. For the INREM process, GIS mapping, analysis and modeling provide the foundation for
the targeting of interventions and the identification of management regimes in the context of the
INREM project. The values are expressed spatially thus enabling estimation of cost of
interventions on a per hectare basis and more importantly, their relative distribution and
estimated extent among the different affected local government units (ie. provincial,
municipal/city and barangay).
175. Available secondary data including those that were gathered from local sources during
fieldwork were collected, collated, georeferenced, digitized and converted into GIS format to
enable spatial analysis and modeling.
2. Brief Project Description
176. The project area encompasses four river basins totalling an estimated 1,138,555 ha.
located in nine provinces around the country (Table A1.13). These river basins are: Chico River
Basin located in the provinces of Apayao, Benguet, Ifugao, Kalinga, and Mt. Province (454,552
ha); Wahig-Inabanga in Bohol (62,793 ha); Lake Lanao in Lanao del Sur (141,339 ha); Upper
Bukidnon River Basin in Bukidnon and Misamis Oriental (479,870 ha).
122
Appendix 1
Table A1.13 INREM River Basins

Estimated
River Basin Area (ha) Provinces
Chico 454,552 Apayao, Benguet, Ifugao, Kalinga, Mt. Province
Wahig-inabanga 62,793 Bohol
Lake Lanao 141,339 Lanao del Sur
Upper Bukidnon 479,870 Bukidnon, Misamis Oriental,
Total 1,138,554 9
3. Data Collection Methods

177. Data collection methods included review of satellite images, available maps both in analog
(ie. printed) and digital formats. Expectedly, not all the data collected were in digital even GIS
format, thus, requiring extensive GIS processing. Fortunately, the river basins collected from the
river basin control office (RBCO) were expressed in GIS format and thus facilitated GIS
processing. Other available secondary data from national agencies particularly the DENR line
agencies and field offices were collected. These data were consequently mapped according to
the boundaries of the four core river basins: Chico River Basin, Wahig-Inabanga River Basin,
Upper Bukidnon River Basin and Lake Lanao River Basin. The maps were refined from data
collected at local sources (i.e. DENR field offices, provincial and municipal offices as well as the
NGOs operating in the area).
178. In particular, GIS data were collected from the DENR Forest Management Bureau, which
manages a substantial archive of digital data on forest cover. At the same time, the NAMRIA
produces general purpose maps at 1:50,000 scale showing topography, drainage network,
roads. All maps were projected to UTM Zone 51N with datum WGS84. During project
implementation, the Philippine Referencing System of 1992 (PRS92) should henceforth be used
as the datum. NAMRIA is currently conducting densification of ground control points (GCPs) in
the country for the full implementation of PRS92.
4. Characterization of the Project Area
179. The characterization of the project area, river basins and subwatersheds was undertaken
mostly on the basis of secondary data and limited field visits to the subwatershed subprojects.
The results of the analysis provide sufficient basis for identifying the management regimes for
each river basin.
a. Baseline Data and Information

180. The data and information on the project area are described in terms of site descriptors,
which fully capture and characterize the resources in the project area, whenever such data and
information are available and which form an integral part of project implementation. These
include location parameters (e.g. administrative boundaries from region, province,
city/municipality, barangay), physical description (physical features like river systems and water
bodies, slope, topography and physical infrastructure like roads, builtup areas) including legal
land classification (i.e. forestland, alienable and disposable land (A&D); biological description
(e.g. forest and other vegetation cover); socio-economic description (e.g. population,
presence/absence of indigenous peoples). In any case, the full characterization of the project
area which will include hydrometeorology (e.g. meteorological data such as rainfall,
temperature, and humidity including hydrologic data like water sources, discharge rates, water
123
Appendix 1
quality, among others) and environment (e.g. environmental hazards (e.g. landslide, flood,
earthquake, seismicity, pollution), presence of threatened, endangered and vanishing species,
and the presence of encroachment on forest territory, among others) will be done during project
implementation, more specifically, during the first two years when land classification and land
use zoning will be undertaken.
181. Consistent with the INREM35 (integrated natural resources and environmental
management) approach, the subwatershed boundaries as defined by the ridges (i.e.
topographic divide) and river system were delineated and used in geographically expressing the
extent and distribution of the project area in terms of administrative boundaries, land cover,
legal land classification and slope categories. This process is explained in detail in the following
sections.
b. Location
182. As mentioned earlier, the project area, which comprise the river basins of Chico in Luzon,
Wahig-Inabanga in the Visayas, Upper Bukidnon, and Lake Lanao in Mindanao, transcend nine
provinces. In terms of distribution of the river basins among the municipalities and cities. For
Chico River Basin, the municipalities Balbalan, Banaue, Barlig, Bauko, Bontoc, Conner,
Hungduan, Kabugao, Lubuagan, Natonin, Pasil, Pinukpuk, Rizal (Liwan), Sabangan, Sadanga,
Sagada, Tabuk, Tanudan, Tinglayan and Tinoc. For Wahig-Inabanga in Bohol province, the
municipalities are: Buenavista, Carmen, Dagohoy, Danao, Duero, G. Hernandez, Inabanga,
Jagna, Pilar, Sagbayan, San Miguel, Sierra Bullones, Talibon, Trinidad, Ubay. For Lake Lanao
River Basin, the municipalities are: Bacolod Grande, Balindong, Bayang, Binidayan, Bubong,
Butig, Ditsaan Ramain, Ganassi, Lumba-Bayabao, Lumbatan, Lumbayanague, Madalum,
Madamba, Maguing, Marantao, Marawi City, Masiu, Mulondo, Pagayawan, Piagapo, Poona
Bayabao, Pualas, S. Dumalondong, Saguiaran, Tamparan, Taraka, Tugaya (Table A1.14).
Lastly, for Upper Bukidnon, the municipalities and cities include: Baungon, Cagayan de Oro,
Damulog, Dangcagan, Don Carlos, Impasugong, Kadingilan, Kibawe, Kitaotao, Lantapan,
Libona, Malaybalay, Malitbog, Manolo Fortich, Maramag, Pangantucan, Sumilao, Talakag,
Valencia. There is an estimated total of 1,322 barangays encompassing the project area. More
than half of these are located in Lake Lanao while the least number is in Wahig-Inabanga.
Table A1.14 Administrative boundaries in the project area
No. of
Munici- No. of
Estimated No. of palities and Baran-
River Basin Area (ha) Provinces % Cities % gays %
Chico 454,552 5 56 20 25 259 19
Wahig-Inabanga 62,793 1 11 15 19 130 10
Upper Bukidnon 479,870 2 22 19 23 212 16
Lake Lanao 141,339 1 11 27 33 731 55
Total 1,138,554 9 100 81 100 1,332 100
c. Physical description
183. The information contained in this section (natural features such as slope, rivers, water
bodies, elevation, and man-made infrastructure such as roads, builtup areas) were largely
gathered from secondary data sources particularly from the digital archives of the Forest
Management Bureau and NAMRIA. Data on the boundaries of the river basins were provided by
35
Also IEM (integrated ecosystem management) approach
124
Appendix 1
the river basin control office (RBCO) of DENR. The fieldwork during the month of April 2009
enabled the team to refine the data based on what were, at the time of the visit, available and
accessible from local sources. These sources included, among others, the regional offices of
DENR, the provincial offices and NGOs working in the area. In this section, the physical
descriptors include topography, slope, river system, and water bodies.
d. Topography and Slope
184. In terms of topography, Upper Bukidnon river basin reaches up to 2,900 m followed
closely by Chico river basin which reaches up to 2,700 m. Lake Lanao, which is just west of
Upper Bukidnon goes as high as 2,600 in the municipality of Lumba-Bayabao. For Wahig-
Inabanga and Upper Bukidnon, whose outlets reach the coast, the minimum altitude recorded
for Chico and Lake Lanao are 100 m and 500 m, respectively (Table A1.15).
185. The slope categories, already available in GIS format from FMB, were generated using
NAMRIA topographic maps36, at the following categories: 0 – 3%; 3 – 8%; 8 - 18%; 18 to 30%;
30 to 50%; and above 50%. Table A1.15 shows the distribution of the slope categories in the
four river basins. For Chico river basin, 55.8% ( 253,415 ha) have slopes greater than 50%
along with Upper Bukidnon river basin with 32.8% (130,295 ha). For Wahig-Inabanga river
basin , 31.6% (19,854 ha) belong to slopes between 30% and 50%. Meanwhile, for Lake Lanao
river basin 47.2% (66,655 ha) have slopes 18 – 30%.
Table A1.15. Topography and slope categories in the project area.

Total 0-3 % 18-30% > 50 Altitude (m)
Min Max
(% of RB) (% of RB) (% of RB)
102,937 39,704 311,912
Chico 454,553 100 2700
(23) (9) (69)
33,574 7,399 21,820
Wahig-Inabanga 62,793 0 860
(53) (12) (35)
173,740 93,065 213,066
Upper Bukidnon 479,870 0 2900
(36) (19) (44)
88,290 22,619 30,430
Lake Lanao 141,339 500 2600
(62) (16) (22)
Total 1,138,555 398,540 170,598 569,417
% of Project
35 15 50
Area
e. River System and Water Bodies

186. In terms of river systems and water bodies, there is an estimated 4,556 km of rivers and
major tributaries in the project area with the longest in Chico river basin (2,142 km) followed by
Upper Bukidnon river basin (1,725 km). Lake Lanao river basin has 431 km while Wahig-
Inabanga has 258 km. We delineated eight subwatersheds in Chico river basin while there are
five in Upper Bukidnon and Lake Lanao and four in Wahig-Inabanga. (Table A1.16). Chico river
basin has the most extensive inland waters with about 1,940 ha while Upper Bukidnon river
basin has the least (83 ha), owing to its highly mountainous landscape.
36
Slopes in percent is the ratio of “rise” over “run”, i.e., a 10% slope represents a 10- meter vertical rise over a 100-
meter horizontal distance. Note that a 100% slope is NOT vertical (90 degrees), but rather a 45-degree slope; also,
the 18% threshold slope generally used to define the boundaries between “forestlands” and “alienable and
disposable lands” is approximately 10 degrees.
125
Appendix 1
187. The headwaters of Chico river basin start at Bauko subwatershed and drain to the outlet
in Cagayan is about 170 km. For Wahig-Inabanga, it is about 68 km, starting from the
municipalities of Sierra Bullones and Pilar down to the municipality of Inabanga . It is a different
case for Upper Bukidnon which drains to several places from the headwaters of Mt Kitanglad
protected area. Clockwise from the north, it drains to the municipalities of Manolo Fortich,
Sumilao, Malaybalay City, Lantapan, Talakag, Baungon, and Libona. For Lake Lanao, all water
drains to the lake before it goes out to Agus River in Lanao del Norte.
Table A1.16. Rivers and Water Bodies

Estimated Estimated length No. of Marshland Inland
Area (ha) of rivers and watersheds water
major tributaries
(km)
Chico 454,553 2,142 8 0 1,940
Wahig-Inabanga 62,793 258 4 0 182
Upper Bukidnon 479,870 1,975 6 0 316
Lake Lanao* 141,339 431 5 336 836
Total 1,138,555 4,556 23 336 3,042
*Note: Lanao lake has an estimated area of 36,300 ha;
5. Forest Cover and Other Land Uses
a. Forest Cover
188. In this report, two categories are used, namely: natural forests and plantations. Under
natural forests, these can either be coniferous or broadleaved forests. Further, such forests, can
either be closed canopy or open canopy. Closed canopy forests are formations where trees in
various storey and undergrowth cover a high proportion (>40 percent) of the ground and do not
have a continuous dense grass layer. On the other hand, open canopy forests are formations
with a discontinuous tree layer and coverage of at least 10% but less than 40%. Additionally,
when more than 75% of tree crown cover is composed of broadleaved species, it is considered
a broadleaved forest. The same goes for a coniferous forest - when more than 75% of tree
crown cover is composed of coniferous species. Forest plantations are forest stands that were
established either by planting or seeding thru reforestation or afforestation.
189. For the project area, about 30% or more than 315,000 ha are forests broken down into
broadleaved, coniferous, plantations and mangrove forests (Table A1.17). Among the river
basins, Chico contains the highest amount of forest, estimated at more than 163,000 hectares
(or about 52%). Wahig-Inabanga contains the least amount with less than 9,000 hectares (or
2.8%) of forest cover. Interestingly, Wahig-Inabanga contains the highest amount of forest
plantations, at almost 4,300 hectares. Chico River Basin has less than 1,000 hectares of forest
plantations. In terms of mangrove forest, only Wahig-Inabanga and Upper Bukidnon river basins
exhibit some amount. Understandably, Lake Lanao and Chico river basins do not contain
mangrove forest. The former is an inland lake while the latter’s outlet does not extend to the
coast. A majority of the forests in the project area are composed of broadleaved species, which
stands at almost 80%. This is followed by coniferous species (almost 20%) with small amounts
of plantations (1.6%) and mangroves (0.1%).
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Appendix 1
Table A1.17. Forest cover in the project area.

Forest Broadleaved Coniferous Plantations Mangrove Total %
Cover (ha) (ha) (ha) (ha) (ha)
Closed Open Closed Open
canopy canopy canopy canopy
Chico 70,597 29,283 45,673 16,869 903 - 163,324 52
Wahig- - 4,164 - - 4,280 355 8,799 3
Inabanga
Upper 7,635 58,187 - - - 106 62,371 20
Bukidnon
Lake Lanao 46,175 34,703 - - - - 80,878 26
Total 124,406 122,779 45,673 16,869 5,183 461 315,371 100
% 39 39 15 5 2 0.1
b. Other Land Uses
190. Approximately 70% (735,775 ha; Table A1.18) of the project area is devoted to other land
uses. In Chico river basin, 55.4% (160,323 ha) is composed of wooded shrubs while in the other
three river basins, cultivated annual crops dominate, 83.9% (45,170 ha) in Wahig-Inabanga,
76.2% (254,125 ha) in Upper Bukidnon, and 49.9% (29,530 ha) in Lake Lanao. In fact, in Lake
Lanao, an estimated 15,820 ha (26.7%) is devoted to cultivated perennial crops totaling 76.6%
(45,350 ha) of cultivated lands.
Table A1.18 Other Land Uses in the Project Area

Other Land cover* Cultivated Wooded land Natural Barren Builtup Total
areas
Annual Perennial Shrubs Grassland Grassland land
Chico 65,066 188 160,323 56,748 6,180 23 760
289,288
22 0 55 20 2 0 0
Wahig-Inabanga 45,170 1,398 2,950 1,760 2,282 - 252 53,812
84 3 5 3 4 0 0
Upper Bukidnon 295,452 31,244 44,013 27,702 10,547 - 4,576
333,521
89 9 13 8 3 0 1
Lake Lanao 29,530 15,820 4,030 4,438 4,205 - 1,132
59,155
50 27 7 8 7 0 2
Total 393,891 40,578 190,620 80,706 23,215 23 6,743 735,775
Note: *values in ( ) are %
6. Legal Land classification
191. Of the Philippines’ total land area of 30 million hectares, 15.05 million hectares is
classified as forestlands, 14.195 million hectares is alienable and disposable (A&D) lands, and
0.755 million hectares remain to be classified37. The latter category of unclassified lands is, by
default, regarded as forestland unless classified otherwise, i.e. A&D38. The maps and technical
descriptions of these forestlands and A&D lands are in the official archives of NAMRIA.
37
FMB. Forestry Statistics in http://forestry.denr.gov.ph/statglance.htm accessed 13 May 2009
38
Ibid.
127
Appendix 1
192. For the project area, 63% are forestlands while the other 37% are A&D (Table A1.19;).
Comparatively, forestlands dominate in Chico and Lake Lanao river basins (i.e. 83% and 72%,
respectively) while in the other two river basins, A&D lands dominate (i.e. 54% in Upper
Bukidnon and 32% in Wahig-Inabanga). Consequently, Chico has the longest perimeter length
(approximately 1,308 km) of its forestland, while Upper Bukidnon closely follows with an
estimated length of almost 1,300 km. These perimeter values will have a consequence to the
cost of establishing markers during project implementation.
Table A1.19. Legal land classification in the project area

Forestland Alienable and Disposable
Estimated Estimated
% of Perimeter % of Perimeter
Estimated river Length Estimated river Length
River Basin Area (ha) basin (km) Area (ha) basin (km)
Chico 375,931 83 1308 78,621 17 944
Wahig-Inabanga 20,227 32 256 42,566 68 281
Upper Bukidnon 222,000 46 1294 258,100 54 1225
Lake Lanao 102,088 72 294 39,251 28 290
Total 684,217 370,442
% of Project Area 65% 35%
a. Mapping and Analysis
193. As mentioned earlier, most of the data used in this report came from those existing at the
national offices of the DENR Forest Management Bureau as well as the NAMRIA. These were
refined as much as possible at the field offices of DENR and provincial and other local
governments at each of the river basins (e.g. DENR regional offices in Baguio (Region II), Cebu
(Region VI), DENR ARMM, provincial offices of Bukidnon in Malaybalay City, NGOs working in
the area, among others). An important part of the analysis took careful consideration of existing
information on land cover and land use in the project area. These were based on processed
satellite images (i.e. Landsat) published in 2003 by DENR. The project considered using the
official maps and statistics of DENR, specifically those from FMB and NAMRIA.
b. Land Cover
194. Land cover and land use in the project area (Table A1.20) consist of broadleaved and/or
coniferous canopy forests (closed or open canopy), mangrove forests, forest plantations,
wooded shrubs and grasslands, natural grasslands, barren lands, builtup areas, cultivated lands
(annual and/or perennial), fishponds, and inland water.
195. About 37.3% (393,891 ha) of the project area is devoted to cultivated annual cwhile 23.5%
(247,321 ha) is composed of broadleaved forests (closed canopy is 11.8% or 124,452 ha and
open canopy is 11.7% or 122,869 ha).
c. Legal Land Classification
196. Cross tabulating the land cover with the legal land classification (Table A1.21) reveals a
number of insights across the river basins as well as the occurrences inside the individual river
basins. On the average, forestlands account for 59% of the project area with a maximum of 83%
128
Appendix 1
in Chico river basin and a low of 32% in Wahig-Inabanga river basin. On the other hand, A&D
lands average 41% across the project area correspondingly with a high of 68% and a low of
17% in Wahig-Inabanga river basin and Chico river basin, respectively.
197. As expected, forests occur inside forestlands with patches in A&D particularly in Lake
Lanao and Upper Bukidnon river basins with 524 ha and 253 ha of closed canopy broadleaved
forest, respectively. There are also open canopy broadleaved forest inside A&D in Lake Lanao,
Upper Bukidnon, Wahig-Inabanga and Chico river basins amounting to 1,662 ha, 813 ha, 642
ha and 141 ha, respectively.
198. On the other hand, there are more than 127,000 hectares of cultivated areas (i.e. annual
crops about 110,000 ha, perennial crops more than 17,000 ha) inside forestlands. Annual crops
are planted inside forestlands in almost 73,000 hectares in Upper Bukidnon, almost 16,000 ha
in Chico, about 12,000 ha in Lake Lanao, and more than 9,000 ha in Wahig-Inabanga. At this
level of analysis, it can be shown that non-conforming uses pervade in the project area and
interventions need to be introduced to address further environmental degradation.
Table A1.20 Land cover/land use in the project area

Land Cover Estimated Area (ha) Total
Chico Wahig- Upper Lake
Inabanga Bukidnon Lanao
Closed forest, broadleaved 70,597 - 7,635 46,220 124,452
Closed forest, coniferous 45,673 - - - 45,673
Open forest, broadleaved 29,283 4,164 58,187 34,792 122,869
Open forest, coniferous 16,869 - - - 16,869
Forest plantations, broadleaved 903 4,280 - - 5,183
Other land, built-up area 760 95 4,576 1,132 6,494
Other land, cultivated, annual 65,066 45,170 295,452 29,530 393,891
crop
Other land, cultivated, perennial 188 1,398 31,244 15,820 40,579
crop
Other land, natural, marshland - - - 336 336
Other lands, grassland 6,180 2,282 10,547 4,205 23,214
Other wooded land, shrubs 160,323 2,950 44,013 4,030 190,620
Other wooded land, wooded 56,748 1,760 27,702 4,438 80,705
grassland
Inland water 1,940 182 316 836 3,041
Other land, natural, fishponds - 157 93 - 250
Other land, natural, barren land 23 - - - 23
Other land, mangrove forest - 355 105 - 461
Total 454,553 62,793 479,871 141,339 1,138,5
55
% Of River Basin 40 6 42 12
129
Appendix 1
Table A1.21 Crosstabulation of land cover with land classification in the project area
Land Chico Wahig- Inabanga Upper Bukidnon Lake Lanao
Classification Forest- A& Forest- A&D Forest- A & D Forest- A & D
land D land (ha) land (ha) land (ha)
(ha) (ha) (ha) (ha) (ha)
Land Cover
Closed forest, 70,594 3 - - 7,381 253 45,696 524
broadleaved
Closed forest, coniferous 45,639 34 - - - - - -
Open forest, 29,142 141 3,522 642 57,373 813 33,130 1,662
broadleaved
Open forest, coniferous 16,835 35 - - - - - -
Forest plantations, 891 12 2,017 2,263 - - - -
broadleaved
Other land, built-up area 212 547 12 83 74 4,502 11 1,121
Other land, cultivated, 15,815 49,2 9,171 35,999 84,028 211,42 12,011 17,519
annual crop 51 4
Other land, cultivated, 188 - 156 1,242 19,856 11,388 3,206 12,614
perennial crop
Other land, natural, - - - - - - 336 -
marshland
Other lands, grassland 5,786 394 2,225 57 5,015 5,532 1,342 2,863
Other wooded land, 146,639 13,6 1,967 983 29,031 14,982 2,785 1,246
shrubs 84
Other wooded land, 44,100 12,6 647 1,114 18,681 9,021 3,572 866
wooded grassland 48
Inland water 91 1,84 37 145 222 94 - 836
9
Other land, natural, - - 133 24 53 40 - -
fishponds
Other land, natural, - 23 - - - - - -
barren land
Other land, mangrove - - 341 14 24 81 - -
forest
Total 375,931 78,6 20,227 42,566 221,73 258,13 102,08 39,251
21 9 1 8
% 83 17 32 68 46 54 72 28
7. Slope Categories
199. In combination with land cover/land use and legal land classification, slope was also
included to show which land cover/land use that belong to either the state or privately-owned.
For one, intensive uses like agriculture should avoid steep slopes to avoid the danger of
accelerated soil erosion, and even mass soil movements (i.e. landslides). Table A1.22 shows a
three-dimensional crosstabulation of land cover, legal land classification and slope.
a. Analysis of the Sub-watersheds
200. The next step in the process is to determine the occurrences of these three site descriptor
parameters: land cover, legal land classification, and slope along the subwatersheds in each of
the individual river basins.
130
Appendix 1
b. GIS processing and analysis of sub-watersheds
201. Delineation of the subwatersheds proceeded with the use of digital elevation models
(DEM). With the DEM showing the ridges and the directional flow of water, GIS functionalities
were used in delineating the subwatershed boundaries. Since the resulting subwatersheds were
in raster form, these were consequently vectorized39 and fitted onto the rest of the thematic
layers of the project area. Table A1.23 shows the subwatersheds for each of the river basins in
the project area.
202. After careful analysis, a total of 23 watesheds were delineated for the project area: eight
(8) in Chico river basin, four (4) in Wahig-Inabanga river basin, and five (5) each in Upper
Bukidnon and Lake Lanao. In Chico river basin, Tuao subwatershed located downstream, is the
largest with an estimated size of 80,000 ha or 17.5%. It is also the biggest river basin. For
Wahig-Inabanga, the largest is Dagohoy subwatershed with an approximate size of 22,000 ha.
The other three subwatersheds are more or less evenly-sized. In the case of Upper Bukidnon,
the Sumilao-MFortich-Malitbog subwatershed is the largest at more than 132,000 ha (or 33.5%)
while the Taraka-Gata subwatershed in Lake Lanao stands at almost 55,000 ha (38.8%).
203. For the purpose of this study, the assignment of the names of the subwatersheds follows
the name of the major river or major tributary in the area. Also, naming is based on the most
prominent municipality or city encompassing the subwatershed.
c. Description of the sub-watershed subprojects
204. Representative subwatersheds have also been identified in each river basin (Table
A1.24), namely: Bauko subwatershed subproject in Chico river basin; Wahig-Pamaksalan
subwatershed subproject in Wahig-Inabanga river basin; the Manupali-Kitanglad subwatershed
subproject in Upper Bukidnon; and Bubong subwatershed subproject in Lake Lanao. These
subwatershed subprojects represent a cross-section of the biophysical characteristics, issues
and problems in the project area. For instance, Bauko, Wahig-Pamaksalan and Manupali-
Kitangald are located in the headwaters; illegal logging is rampant right in the middle of Bubong
subwatershed; intensive vegetable farming is being practiced in Bauko subwatershed. In
addition, Mt Data National Park and portions of Ambuklao-Binga protected subwatershed
(approximately 1,500 ha) intersect with Bauko subwatershed subproject. For Wahig-
Pamaksalan, an estimated 1,700 ha of Rajah Sikatuna National Park and Alijawan-Cansuhay-
Anibongan Watershed Forest Reserve are inside the subwatershed subproject.
205. There is an estimated total of about 114,500 hectares spread over 24 cities and
municipalities and 218 barangays (Table A1.24). Largest of these is Manupali-Kitanglad
subwatershed subproject with almost 51,000 ha while the smallest is Wahig-Pamaksalan
subwatershed subproject with almost 14,000 ha. There are 117 barangays encompassing
Bubong subwatershed subproject. Meanwhile, there are only 17 barangays in Manupali-
Kitanglad subwatershed subproject.
206. In Bauko subwatershed, 77% or 23,167 ha (19.6% or 5,898 ha with slopes of 30%-50%
plus 57.4% or 17,269 ha with slopes above 50%) are rugged and mountainous (Table A1.25).
Similarly in Manupali-Kitanglad component watershed, 57.2% or 29,160 ha (11% or 5,595 ha
with slopes of 30%-50% plus 46.2% or 23,565 ha with slopes above 50%) have steep slopes.
On the other hand, in Wahig-Pamaksalan and Bubong component watersheds, 5,639 ha
39
GIS analytical procedure that transforms raster datasets into vector polygons and polylines.
131
Appendix 1
(40.6%) and 9,972 ha (51%), respectively are moderately sloping (i.e. 8-18%). In terms of
drainage network, Manupali-Kitanglad component watershed subproject has 228 km of rivers
and major tributaries followed by 96 km, 58 km, and 45 km in Bauko, Bubong, and Wahig-
Pamaksalan component watersheds, respectively (Table A1.26).
207. In Bauko component watershed, 39.8% (11,793 ha) were recorded as having closed
canopy coniferous forest with 44.6% (13,416 ha) of wooded shrubs. For Bubong component
watershed, 72.4% (14,143 ha) were recorded as closed canopy forest (33.3% or 6,508 ha of
broadleaves and 39.1% or 7,635 ha coniferous). On the other hand, there are 71.9% (45,170
ha) and 58.7 (29,932 ha) of cultivated annual crops in Wahig-Pamaksalan and Manupali-
Kitanglad component watersheds respectively.
132
Appendix 1
Table A1.22 Spatial analysis in the project area

LAND COVER LAND CLASSI‐
< 18% % 18‐30% % >30% % Total (Ha) %
Forest Cover Forestland 48,978 16 34,469 11 229,139 73 312,585 43
A&D 2,729 42 1,659 26 2,089 32 6,477 2
Closed forest, broadleaved Forestland 23,478 19 13,188 11 87,005 70 123,671 40
A&D 184 24 340 44 256 33 780 12
Closed forest, coniferous Forestland 2,893 6 1,609 4 41,137 90 45,639 15
A&D 1 3 ‐ ‐ 33 97 34 1
Open foerst, broadleaved Forestland 20,968 17 18,061 15 84,138 68 123,167 39
A&D 980 30 1,120 34 1,158 36 3,258 50
Open forest, coniferous Forestland 1,135 7 1,435 9 14,264 85 16,835 5
A&D 17 50 ‐ ‐ 17 50 35 1
Forest plantations, broadleave Forestland 138 5 175 6 2,595 89 2,908 1
A&D 1,451 64 199 9 625 27 2,275 35
Mangrove forest Forestland 365 ‐ ‐ ‐ ‐ ‐ 365 0
A&D 96 ‐ ‐ ‐ ‐ ‐ 96 1
Other Land Uses Forestland 90,098 42 67,941 32 249,361 117 407,400 57
A&D 256,735 327 66,529 85 88,828 113 412,093 98
Other land, builtup area Forestland 147 1 ‐ ‐ 163 1 310 0
A&D 5,899 28 258 1 95 0 6,253 2
Other land, cultivated annual c Forestland 35,532 167 24,703 116 60,791 286 121,025 30
A&D 207,126 975 44,697 210 62,369 294 314,193 76
Other land, cultivated perennia Forestland 5,234 25 5,790 27 12,381 58 23,405 6
A&D 13,417 63 7,321 34 4,507 ‐ 25,245 6
Other land, natural, grassland Forestland 284 1 52 0 ‐ ‐ 336 0
A&D ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
Other lands, grassland Forestland 5,428 26 3,534 17 5,406 25 14,368 4
A&D 5,102 24 1,718 8 2,027 ‐ 8,847 2
Other wooded land, shrubs Forestland 22,855 108 19,292 91 138,274 ‐ 180,421 44
A&D 11,241 53 6,984 33 12,670 60 30,894 7
Other wooded land, wooded g Forestland 20,084 95 14,571 69 32,345 152 66,999 16
A&D 10,960 52 5,551 26 7,139 34 23,650 6
Inland water Forestland 349 2 ‐ ‐ 1 0 350 0
A&D 2,924 14 ‐ ‐ 0 0 2,925 1
Other land, fishponds Forestland 186 1 ‐ ‐ ‐ ‐ 186 0
A&D 64 0 ‐ ‐ ‐ ‐ 64 0
Other land, natural, barren lan Forestland ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
A&D 1 0 ‐ ‐ 21 0 23 0
Total Forestland 139,075 37 102,410 27 478,500 127 719,985 63
A&D 259,465 330 68,188 87 90,917 116 418,570 37
1,138,555
133
Appendix 1
Table A1.23. Component watersheds in the project area

% of River
River Basin Component watershed Area (ha)
Basin
Chico
1 Tabuk 60,539 13
2 Conner 56,848 13
3 Tuao 79,681 18
4 Balbalan 77,675 17
5 Lubuagan 72,924 16
6 Bontoc 41,188 9
7 Barlig-Tanudan 35,586 8
8 Bauko 30,111 7
Total Area 454,552
Wahig-Inabanga
1 Wahig-Pamaksalan 13,889 22
2 Danao 13,339 21
3 Dagohoy 21,637 35
4 Inabanga 13,928 22
Total Area 62,793
Upper Bukidnon
1 Manupali 50,957 11
2 Talakag 65,007 14
3 Sumilao-MF-Malitbog 132,605 28
4 Malaybalay-Impasugong 52,585 11
5 Baungon-Libona 94,821 20
6 Kalatungan-Muleta 83,896 17
Total Area 479,870
Lake Lanao
1 Bubong 19,546 14
2 Malaig 35,403 25
3 Taraka Gata 54,789 34
4 Saguiaran-Marawi 14,105 10
5 West 17,496 12
Total Area 141,339
Grand Total Area 1,138,554
Table A1.24 Administrative boundaries in the component watershed subprojects (core)

Component
watershed Estimated No. of
Subproject Area (ha) Municipalities and Cities Barangays
Bauko 30,111 Bauko, Sadangan, Sagada, portions of 54
Bontoc, Hungduan, Banaue
Wahig- 13,889 Sierra Bullones, Pilar, portions of 36
Pamaksalan G.Hernandez, Jagna, Duero,
Manupali- 50,957 Lantapan, Talakag, portions of Valencia 16
Kitanglad city
Bubong 19,546 Bubong, Ditsaan Ramain, Maguing, 89
portions of Marawi City, Mulondo, and
Taraka
Total 114,503 20 195
134
Appendix 1
Table A1.25. Topography and slope* in the component watershed subprojects

Component Estimate 0- 3-8 % 8- 18- 30- > 50% Min Max
watershed d Area 3% 18% 30% 50%
Subproject (ha)
Bauko 30,111 - 4,077 210 2,658 5,898 17,269 900 2,700
(0.0) (13.5) (0.7) (8.8) (19.6) (57.4)
Wahig- 13,889 - 1,152 5,639 2,626 3,056 1,416 140 660
Pamaksalan (0.0) (8.3) (40.6) (18.9) (22.0) (10.2)
Manupali- 50,957 3,764 8,686 4,041 5,306 5,595 23,565 400 2900
Kitanglad (7.4) (17.0) (7.9) (10.4) (11.0) (46.2)
Bubong 19,546 4,031 1 9,972 4,383 1,159 - 800 1400
(20.6 (0.0) (51.0) (22.4) (5.9) (0.0)
)
Total 114,503 7,795 13,916 19,861 14,973 15,708 42,250
% of total 6.8 12.2 17.3 13.1 13.7 36.9
Note: *values in brackets are % of component watershed area
Table A1.26. Rivers and water bodies in the component watershed subprojects
Component watershed Estimated length of Rivers and Inland water (ha)
Subproject tributaries (km)
Bauko 96 -
Wahig-Pamaksalan 45 182
Manupali-Kitanglad 228 -
Bubong 58 163
Total 427 345
Table A1.27 Forest cover and other land uses in the component watershed subprojects
Component watershed Bauko Wahig- Manupali- Bubong Total %
Subproject Pamaksalan Kitanglad
Closed forest, broadleaved - - - 6,508 6,508 4.0
(33.3)
Closed forest, coniferous 11,973 - - - 11,973 7.3
(39.8)
Open forest, broadleaved 62 3,440 15,290 7,635 27,150 16.6
(0.2) (24.8) (30) (39.1)
Open forest, coniferous 2,900 - - - 2,900 1.8
(9.6)
Forest plantations, - 735 - - 4,280 2.6
broadleaved (5.3)
Other land, built-up area 160 - - 11 266 0.2
(0.5) (0.1)
Other land, cultivated, annual 1,601 8,302 29,932 4,979 81,682 50.0
crop (5.3) (59.8) (58.7) (25.5)
Other land, cultivated, - - - 142 1,540 0.9
perennial crop (0.7)
Other land, natural, marshland - - - - - -
Other lands, grassland - - - - 2,282 1.4
Other wooded land, shrubs 13,416 - 4,204 - 20,569 12.6
(44.6) (8.2)
135
Appendix 1
Component watershed Bauko Wahig- Manupali- Bubong Total %

Subproject Pamaksalan Kitanglad
Other wooded land, wooded - 1,411 1,531 108 3,399 2.1
grassland (10.2) (3) (0.6)
Inland water - - - 163 346 0.2
(0.8)
Other land, natural, fishponds - - - - 157 0.1
Other land, natural, barren - - - - - -
land
Other land, mangrove forest - - - - 355 0.2
Total 30,111 13,889 50,957 19,546 163,407
Note: *values in brackets are % of component watershed area
Table A1.28 Legal land classification in the component watershed subprojects

Forestland Alienable and Disposable
Component Estimated % of sub- Estimated Estimated % of sub- Estimated
watershed Area watershed Perimeter Area watershed Perimeter
Subproject subproject Length subproject Length
(ha) (km) (ha) (km)
Bauko 28,522 94.7 205 1,589 5.3 98
Wahig-Pamaksalan 20,227 34.3 117 42,566 65.7 134
Manupali-Kitanglad 27,360 53.7 154 23,597 46.3 120
Bubong 14,433 73.8 86 5,113 26.2 53
Total 90,542 100.0 562 72,865 100.0 405
d. Delineation of the Proposed Management Regimes
i. Rationale for Delineation
208. For the purpose of delineating the management regimes of the project area, current land
cover and land use, legal land classification and slope categories were used. Land cover and
land use as derived from satellite imagery are classified according to the following: closed
canopy forest (broadleaved or coniferous); open canopy forest (broadleaved or coniferous);
forest plantations; other lands (builtup, cultivated crops (annual or perennial), natural marshland,
natural grassland, barren land, fishponds); other wooded lands (shrubs, wooded grassland);
mangrove forest and inland water.
209. Legal land classification was summarized into forestlands and A&D while the slope was
categorized into: level to rolling terrain (0-18%); rolling to moderately steep (18 – 30%); steep
(30 – 50%); and very steep (above 50%).
210. Assignment of management regimes follow an iterative process wherein the basic criteria
on land cover/land use, legal land classification and slope are progressively cross-referenced
against each other via pair-wise comparison. During project implementation, when the land use
zoning will be developed, additional criteria may include: ecological sensitivity which refers to
whether the area falls under NIPAS40, heritage site/geologic/natural monument, a critical
40
National Integrated Protected Areas System.
136
Appendix 1
watershed (i.e. watershed forest reserve), or a biodiversity hotspot (i.e. presence of rare,
endangered, or threatened flora and/or fauna), soil characteristics, rainfall pattern, soil erosion,
hazard and risk to climate change, among others.
ii. GIS Processing of Management Regimes
211. GIS played a critical role in the delineation of the proposed management regime. The
basic assumption is that steeper slopes (e.g. above 30%) are more appropriate for conservation
or protection purposes. The presence of forest cover is important for hydrology which ensures
that watershed functions are maintained. In addition, soils, microclimate and biodiversity are
also conserved. At lower slopes (e.g. at and below 30%), more intensive uses like agriculture
and settlements can be allowed. In terms of legal land classification, areas above 18% fall under
the jurisdiction of government (i.e. DENR) while areas below 18% are privately owned. As a rule
of thumb, contiguity and minimum area are important to ensure the viability of species if the
objective is biodiversity, or ensure cost-effectiveness if the objective is commercial production.
212. The management regimes can be summarized into seven major components (see Tables
A1.29 and A1.30), namely: [areas above 30% slope] conservation and protection of natural
forests, reforestation/afforestation, assisted natural regeneration; [areas at/below 30% slope]
sustainable forest management, commercial plantations with community participation;
smallholder agroforestry (inside forestlands for areas at/below 30% slope; inside A&D for areas
above 30% slope), and other categories. The management regimes are shown below:
137
Appendix 1
Table A1.29 Management regime for the Project area

By River Basin
Management regime Project Area
Chico Wahig‐Inabanga Upper Bukidnon Lake Lanao
ABOVE 30% SLOPE
Conservation and Protection of Natural
Forests
Reinforced protection of conservation 116,690.70 6,652.08 66,193.30 11,941.55 201,477.63
and protected areas
Reforestation/ Afforestation 18,934.42 2,235.72 14,838.69 1,742.12 37,750.95
Assisted Natural Regeneration 159,957.19 5,824.82 66,510.37 6,978.97 239,271.35
Smallholder Agroforestry or Other 16,329.29 7,107.56 65,523.67 1,956.59 90,917.11
Appropriate Livelihood [A&D]
Sub Total 311,911.60 21,820.17 213,066.04 22,619.24 569,417.05
30% SLOPE AND BELOW ‐
Sustainable Forest Management 13,179.43 1,282.50 6,528.68 61,777.46 82,768.08
commercial Plantations with Community 57,481.74 1,034.53 22,458.74 5,101.71 86,076.72
Participation
Smallholder Agroforestry [Forestland] 9,545.03 2,674.59 44,838.96 14,199.40 71,257.98
Other Categories: conservation farming, 52,295.44 31,069.43 143,430.62 32,669.05 259,464.54
organic farming and infrastructure
improvement
Other Categories: conservation farming, 9,996.68 4,388.98 49,177.01 4,625.32 68,188.00
Other Categories: Includes inland waters, 142.79 522.72 370.66 346.56 1,382.74
marshlands, mangroves, barren lands,
settlements
Sub Total 142,641.11 40,972.75 266,804.69 118,719.50 569,138.05
138
Appendix 1
Table A1.30: Management regime for the Subproject areas (Upper Bukidnon)
Management regime By Watershed
KITANGLAD‐ SUMILAO‐MF‐ MALAYBALAY‐ BAUNGON‐ KALATUNGAN‐
MANUPALI
TALAKAG
MALIBOG IMPASUGONG LIBONA MULETA
TOTAL
ABOVE 30% SLOPE
Conservation and Protection of Natural Forests
Reinforced protection of conservation and protected
areas 4,453 8,043 33,760 7,704 6,523 5,710 66,193
Reforestation/ Afforestation 1,460 84 3,211 6,166 3,061 857 14,839
Assisted Natural Regeneration 18,002 16,215 9,687 3,574 14,112 4,919 66,510
Livelihood [A&D] 5,245 11,967 27,693 2,717 13,125 4,776 65,524
Sub Total 29,160 36,311 74,351 20,161 36,821 16,262 213,066
30% SLOPE AND BELOW
Sustainable Forest Management 642 1,917 2,099 577 1,183 111 6,529
commercial Plantations with Community Participation 158 2,822 638 2,325 4,049 12,468 22,459
Smallholder Agroforestry [Forestland] 2,645 7,738 10,446 3,664 8,791 11,556 44,839
farming and infrastructure improvement 14,245 9,604 32,214 19,092 33,271 35,005 143,431
Other Categories: conservation farming, agroforestry
extension/demonstration 4,108 6,615 12,857 6,764 10,486 8,347 49,177
Other Categories: Includes inland waters, marshlands,
mangroves, barren lands, settlements ‐ ‐ ‐ 2 221 147 371
Sub Total 21,797 28,696 58,254 32,424 58,001 67,634 266,805
Total 50,957 65,007 132,605 52,585 94,821 83,896 479,871
139
Appendix 1
Table A1.30 continued….(Chico)

Barlig‐
Bauko Tabuk Conner Tuao Balbalan Lubuagan Bontoc tanidan TOTAL
ABOVE 30% SLOPE
Reinforced protection of conservation and protected are 10,379 264 20,230 1,708 36,145 25,119 13,983 8,862
116,691
Reforestation/ Afforestation ‐ 2,393 6,256 10,009 ‐ ‐ 268 8
18,934
Assisted Natural Regeneration 11,897 12,293 20,158 1,525 30,791 39,808 19,924 23,560
159,957
Smallholder Agroforestry or Other Appropriate Liveliho 890 5,337 642 4,039 2,442 1,973 512 494
16,329
Sub Total 23,167 20,288 47,286 17,281 69,378 66,900 34,687 32,925
311,912
Sustainable Forest Management 3,094 107 679 607 2,932 1,292 3,333 1,134 13,179
commercial Plantations with Community Participation 2,851 19,505 7,426 14,324 4,597 4,446 2,806 1,526 57,482
Smallholder Agroforestry [Forestland] 261 1,562 ‐ 7,053 611 ‐ 57 ‐ 9,545
farming and infrastructure improvement 474 15,375 1,329 34,738 47 41 290 1 52,295
Other Categories: conservation farming, agroforestry
extension/demonstration 225 3,702 128 5,589 108 244 ‐ ‐ 9,997
Other Categories: Includes inland waters, marshlands,
mangroves, barren lands, settlements 39 ‐ 0 90 ‐ ‐ 14 ‐ 143
Sub Total 6,944 40,252 9,562 62,400 8,297 6,024 6,501 2,661 142,641
Total 30,111 60,539 56,848 79,681 77,675 72,924 41,188 35,586 454,553
140
Appendix 1
Table A1.30 .continued….(Wahig-Inabanga)

Ma na gement regi mes for WAHIG INBANGA By Wa ters hed
Wahig-
Da gohoy Da na o Ina ba nga Pamaksalan Tota l
ABOVE 30% SLOPE
Reinforced protection of conservation and protected areas 2,100 3,706 150 696 6,652
Reforestation/ Afforestation 4 1,841 ‐ 391 2,236
Assisted Natural Regeneration 693 2,142 787 2,202 5,825
Smallholder Agroforestry or Other Appropriate Livelihood [A&D] 1,934 897 3,094 1,183 7,108
Sub Total 4,731 8,586 4,031 4,472
Sustainable Forest Management 382 ‐ ‐ 900 1,282
commercial Plantations with Community Participation 135 598 86 215 1,035
Smallholder Agroforestry [Forestland] 402 1,307 610 355 2,675
Other Categories: conservation farming, organic farming and infrastructure
improvement 15,563 1,904 7,309 6,293 31,069
extension/demonstration 411 943 1,381 1,654 4,389
Other Categories: Includes inland waters, marshlands, mangroves, barren
lands, settlements 13 ‐ 510 ‐ 523
Sub Total 16,906 4,753 9,897 9,417
Total 21,637 13,339 13,928 13,889 62,793
141
Appendix 1
Table A1.30 continued….(Lake Lanao)

TARAKA- SAGUIRAN-
WEST BUBONG MALAIG
GATA MARAWI TOTAL
SubProj SubProj SubProj
SubProj SubProj
ABOVE 30% SLOPE
Reinforced protection of conservation and protected areas 998 747 2,454 7,735 44 11,979
Reforestation/ Afforestation - - 1,709 33 - 1,742
Assisted Natural Regeneration 705 412 1,777 4,054 22 6,971
Smallholder Agroforestry or Other Appropriate Livelihood [A&D] 1,489 - 70 - 370 1,930
Sub Total 3,193 1,159 6,011 11,823 437 22,622
30% SLOPE AND BELOW
Sustainable Forest Management 435 12,230 18,815 28,911 1,122 61,513
commercial Plantations with Community Participation - - 2,340 2,708 220 5,268
Smallholder Agroforestry [Forestland] 1,256 1,033 7,574 1,089 5,018 15,970
Other Categories: conservation farming, organic farming and infrastructure
improvement 10,426 4,595 665 9,066 6,327 31,078
Other Categories: conservation farming, agroforestry extension/demonstration 2,187 518 - 856 981 4,543
Other Categories: Includes inland waters, marshlands, mangroves, barren
lands, settlements - 11 - 336 - 347
Sub Total 14,303 18,387 29,393 42,966 13,669 118,718
Total 17,496 19,546 35,403 54,789 14,106 141,339
B. Participatory GIS-based land capability classification, land use suitability

analysis and zoning
1. Process of Participatory GIS-based Land Capability Classification, Land

Use Suitability Analysis and Zoning
213. The process that was followed in the preparation of the feasibility study will also be the
same process that will be followed during project implementation. During implementation,
however, a more detailed study (Figure A1.3) will be undertaken for each of the 23 component
watersheds. While part I depended on secondary data, part II will make use of primary data
derived from interpretation of the most recent satellite images, ground truthing and participatory
community-mapping. The results of part I will be the basic input to part II. As described in Part I
of this report, the process involves data encoding and processing, data analysis and modeling,
and data output and display. It is expected that local people should participate in the whole
process. The degree of community participation would depend on the capability of the project to
make accessible to the local people the GIS tools used. Thus, the project should complement
the GIS with other methodologies to generate participation on the level of: information sharing,
consultation and decision making.
142
Appendix 1
Figure A1.3 Analytical procedure for Participatory GIS-based land capability classification, land use
suitability analysis and zoning
2. Data Encoding and Processing:
214. During data encoding and processing, the data produced during the preparation of the
feasibility study (F/S) will form the baseline for each of the 23 component watersheds. This
baseline will be updated and refined with the results of the resource assessment which will be
carried out during the first two years of Project implementation. Resource assessment will
include acquisition and interpretation of satellite images and groundtruthing. The groundtruthing
activities will have the participation of community stakeholders. The National Integrated
Protected Areas Programme (NIPAP) of the Protected Areas and Wildlife Bureau (PAWB),
DENR had experience in participatory processes and techniques by using the Participatory 3-
Dimensional Modelling for natural resource management41. INREMP can adopt the lessons
learned from NIPAP and apply them in the groundtruthing stage
.
215. Image analysis and groundtruthing will be conducted to produce land cover maps showing
forest areas (classified in terms of closed/open canopy cover and coniferous/ broadleaved
species), shrublands, grasslands, barelands, water bodies and river networks, builtup
areas/settlements, roads and other infrastructure, and agriculture, among others, . The baseline
maps will also include topography, geology, slope, soils, administrative boundaries (down to
barangay), legal land classification, tenure, socio-economic features of the area. Individual GIS
databases for each of the 23 component watersheds will be constructed corresponding to the
baseline maps.
41
RAMBALDI G., CALLOSA J. 2000. Manual on Participatory3-Dimensional Modeling for Natural Resource Management.Essentials
of Protected Area Management in the Philippines, Vol. 7NIPAP, PAWB-DENR, Philippines.
143
Appendix 1
3. Data Analysis and Modeling:
216. For GIS analysis and modeling, land capability classification and land use suitability
analysis will be conducted. Land capability classification42 involves determination of the physical
capacity of a location to support a specific land use, which will result in minimum adverse
impacts and will also take into account susceptibility of the sites to accelerated soil erosion. This
susceptibility can be expressed in terms of the Erosion Potential Estimate43 (EPE). EPE is a
function of current biophysical and climatic parameters like rainfall, soil properties, topography,
vegetation cover and land management practices. In equation form:
EPE = modified version of Wischmeier’s universal soil loss equation with localized (i.e.
Philippine conditions) coefficients; in tons/ha/yr
= R x K x LS x VM
where
R = rainfall erosivity
K = soil erodibility
LS = topographic factor
VM = vegetation management
R or rainfall erosivity is the potential ability of rain to cause soil erosion under a given set of
conditions. According to Wischmeier (1975), amount and duration of rainfall are important
considerations. Specifically, a 30-minuute rainfall (I30) is used to estimate rainfall or storm
erosivity based on all significant rainfall events (from 25 mm (David, 1988) or up to 127 mm
(Brooks, et al., 1992)). In the absence of rainfall duration, Bayotlang (1986) developed a
parabolic mathematical equation from 41 sites in the Philippines.
K or soil erodibility is defined in terms of soil pH, organic matter content and percentage
amounts of Sand, silt and Clay. The topographic factor or LS can be derived from slope
steepness and slope length. The basic assumption is that the steeper the slope, the more
susceptible is the area to soil erosion. The susceptibility is aggravated by slope length where
longer lengths accelerate soil erosion.
Vegetation management (VM) factor is a combination of vegetation cover and conservation
practice. The value is derived from approximations of percentages of canopy cover and ground
cover. Values range from 0.001 to 0.45. The VM values were derived from empirical studies
done in Mt Makiling, Philippines. Other values can be derived from Brooks, et al., et al (1992)
showing the relationships of forest canopy cover, ground cover and fine roots in the topsoil.
217. Furthermore, land capability is derived from an EPE value of 12.544 where any value
above this threshold leads to lowered agricultural productivity. Below this value, soil erosion
rates are considered acceptable. GIS maps of land capability classification will be produced for
each of the 23 component watersheds.
218. On the other hand, land use suitability analysis involves the determination of a particular
location for a specific land use. For instance, a land unit may be suitable to more than one land
42
Anderson, 1987
43
Based on the report of the Forest Boundary Delineation Study of DENR’s Land Administration Management Programme
(LAMP); see also Bantayan, 2006.
44
According to Brooks, et al. (1992), the maximum rate of soil erosion that will still permit a high level of productivity
to be sustained economically and ecologically usually fall within the range of 2.5 to 12.5 tons•ha-1•yr-1.
144
Appendix 1
use alternative. The analysis will produce a ranked order of suitabilities for the land units. GIS
maps of land use suitability will be produced for the 23 component watersheds.
219. The land capability maps and the land use suitability maps will be used to generate land
use zoning for the 23 component watersheds. The zoning exercises will be done thru
participatory community mapping. Community mapping engenders the participation of
stakeholders and allows them to explicitly visualize onto the maps their experiences and
perceptions on what is the best land use zoning for the area. GIS and associated data analysis
will be used to map the land use zones for the 23 component watersheds.
220. INREM Project has to take note and to respect local knowledge on resource management.
While using scientific knowledge generated from the GIS exercise and the use of other scientific
tools like EPE, the project which is working in generally IP areas, has to consider indigenous
spatial knowledge (ISK) which has proven to be effective for generations in land capability
classification and management. The Cordillera Highland Agricultural Resource Management
Project has documented indigenous NRM practices in the Cordilleras which can be applied to
INREM. INREM has to be cautious and sensitive in dealing with ISK which might be considered
more accurate because it embodies generations of practical knowledge and is working in
interactive, holistic systems.45
221. In all the activities relating to land capability classification, land suitability analysis and land
use zoning, GIS will play an important role in data organization, processing, analysis and layout.
Monitoring of the land use zones will include establishment of a GIS based decision support
system to monitor implementation at various levels of management. This is discussed in detail
in Part III of this report.
45
McCall 2004.
145
Appendix 1
D. GIS-based Monitoring of the Project Area
1. The River Basin Management Information, Monitoring and Decision

Support System
222. In 2000, a comprehensive database system (known as SusDev database or SUSDEVDb)

for development planning, field operations and monitoring at the watershed level was developed
for DENR by the team of Dr. Adolfo V. Revilla, Jr.46 This was later enhanced in a GIS database
(or geodatabase) and applied to the forest boundary delineation study in 200247 and produced
the forest boundary database (FBDb). The FBDb divides the Philippines into 25-ha grids and
fully describes each grid in terms of site descriptors as: location, physical, hydrometeorology,
environmental, biological and socio-economic description. In 2006, the geodatabase system
was further refined to provide detailed spatial units of regular-shaped polygons down to 100
square meters48. Hierarchically, the polygons are grid, quadrant, cell, square and granule with
the sizes equivalent to 100 ha, 25 ha, 1 ha, 0.04 ha, and 0.01 ha49, respectively.
223. INREMP proposes to use GIS in monitoring the resulting land use zones consistent with
the concept of the forest boundary database. Thus, the geodatabase shall be known henceforth
as the Upper River Basin database or URBDb. The methodology to be adopted forms an
integral part of the River Basin Database Development for Monitoring and Evaluation.
224. The DDM&E will provide a unified and standard geodatabase design containing the
general characteristics of the natural resources and environment in the project area (URBs)
(e.g. land cover, land use, settlement, agricultural production areas, infrastructure, etc.). Every
polygon in the geodatabase is unique and defined by the following:
 Grid_code is a 3-digit number from 00150 up to a possible and maximum 999
 Quadrant_code refers to A, B, C or D quadrant51. Each grid is divided into quadrants
 Cell_code refers to a 2-digit number where the first digit corresponds to the row
position52 and the second digit corresponds to the column position53. Each quadrant
contains 25 cells
 Square_code refers to a 2-digit number where the first digit corresponds to the row
position54 and the second digit corresponds to the column position55. Each cell contains
25 squares
 Granule_code refers to a, b, c or d section56. Each square is divided into four (4)
granules.
46
Former professor and dean, UPLB College of Forestry and Natural Resources.
47
See Annex A. SUSDEV database system description.
48
After Bantayan, 2006.
49
Bantayan, et al. 2008.
50
Counting starts from the southwesternmost part of the Philippine territory moving to the right and returning leftward
in an S-manner until the northeasternmost part of the Philippine territory is reached. Further, the coding is divided
into three major parts: Luzon, Visayas, and Mindanao.
51
Clockwise starting from the lower left quadrant.
52
Row designation is bottom up.
53
Column designation is left to right.
54
Similar to row designation for cells.
55
Similar to column designation for cells.
56
Similar to quadrant.
146
Appendix 1
225. The site descriptors in the URBDb are: location parameters, physical description, hydro-
meteorology; environmental description, biological description, and socio-economic description.
Location descriptor
Refers to Administrative Boundaries: Region, District, Province, Municipality/City,
Barangay; Point Locator, Line/Polygon Locators, NAMRIA Map Sheet Number
Physical description
Refers to natural features such as slope, elevation, aspect, geology, soils and man-
made infrastructure such as roads, bridges, buildings
Hydrometeorology
Refers to meteorological data such as rainfall, temperature, and humidity and hydrologic
data like water sources, discharge rates, water quality
Environmental description
This category includes presence of environmental hazards (e.g. landslide, flood,
earthquake, seismicity, pollution), presence of threatened, endangered and vanishing
species, and the presence of encroachment on forest territory.
Biological description
Refers to vegetative description (e.g. forest cover, shrubs, grassland) or biodiversity
importance value
Socio-economic description
This data category includes land use description (i.e. agriculture, industry, etc.),
economic data, and social data about included and adjacent human settlements, legal
land classification, tenure (Forest, IPRAS, NIPAS, A&D), land use, boundary conflicts,
among others
2. Implementation Arrangements
226. The DDM&E will be consistent with the INREM project implementation arrangement. It will
be placed at the monitoring and evaluation (M&E) units at each level (i.e. NPCO M&E, DENR
RO M&E, PPMO M&E, MUNICIPAL M&E). Thus, the infrastructure (Figure A1.4) for the
DDM&E will be a fully-equipped central operations center at the NPCO office, 4 nodes at the
DENR ROs (i.e. CAR, Region 7, ARMM, and Region 10), 4 nodes at the PPMO (i.e. Mountain
Province, Bohol, Lanao del Sur and Bukidnon), and 23 nodes at the component watershed
clusters, located in the municipal office which has the greater jurisdiction over that watershed.
147
Appendix 1
Figure A1.4 DDM&E infrastructure
SWS SWS
SWS SWS
SWS
PPMO SWS
Mt
Province
SWS
SWS
CAR
M&E
SWS
SWS
SWS PPMO R10 NPCO R7 SWS

Bukidnon PPMO
M&E M&E Bohol
SWS
SWS
SWS
SWS
ARMM
M&E
PPMO
Lanao del
Sur SWS
SWS
SWS
SWS
SWS
227. Municipal level M&E units will tap community-based organizations, people’s organizations
or barangay councils to participate in the operation of the DDME. Community-based DDME
committees with membership between 3-5 people will be organized. Their main function is to
assist the municipal M&E in the collection, validation and communication of data/ information.
This community-based DDME
228. The benefits of an operational DDM&E are many. These include:
148
Appendix 1
 A comprehensively characterized river basin using a standard and unified database and
mapping system
 The ability to communicate with stakeholders (i.e. decision-makers, businessmen,
farmers, researchers, scientists, among others)
 The ability to accommodate data in different spatial dimensions – i.e. sattelite images,
soil analysis, biodiversity surveys, cadastal surveys, irrigation service areas.
 The ability to predict the impact of a land use interventions on
o biodiversity
o hazards, risks and vulnerabilities due to climate change
o socio-cultural aspects like ancestral domain, historical significance
 Model land capability and land use potential for mining, agriculture, commercial forestry,
and other extractive uses
 Model the social impact brought about by migration, displacement of existing settlers,
indirect disturbance of nearby areas
 Model the impact of proposed land uses in terms of soil erosion, introduction of invasive
alien species (flora and fauna), among others.
229. Other benefits of the DDM&E are also listed in the NSDI57 plan of NAMRIA58. These
include:
 Check land ownership e.g. for the preparation of the environmental protection decision
of a coastline. The authority retrieves the information with a single query saving a week
of work in the archives59.
 Model via visualization and spatial analysis tools the environmental impact analysis of
e.g. a hydroelectric dam project.
 Estimate the total value of agriculture and other property losses after a strong typhoon
and flooding event in a rural district as geographic information on farms and properties
are integrated and fused with PAGASA information on the typhoon, facilitating faster
relief and rehabilitation activities and resource provisioning.
 Equip the agriculture extension worker with informationi to provide advise to farmer
customers on best crops to plant in a season, after accessing the agriculture information
database that provides a visualization of technical information related to farm lots in his
service area, as well as market conditions around the country.
 View cadastral records of the DENR and match these with the Land Titles Records of
the Land Registration Authority (LRA), making possible the speedy review and
examination of land transactions.
 Allow a municipal land use planner regularly update the municipal socio-economic and
physical profile of his town in a visual way by being able to link transactional and
statistical data to maps of the municipality that is available in the NSDI clearinghouse.
 Allow a real estate buyer connect to the NSDI clearinghouse node on land parcels to
search for property that is for sale in town A in Barangay X giving search parameters
such as distance to the city/municipal hall or church, within the Central District, along a
national road and finds out the market value of that property, its assessed value, owner,
57
National Spatial Data Infrastructure.
58
National Mapping and Resources Information Authority.
149
Appendix 1
and other legal documents on ownership and survey documentation.
Considering the need for a comprehensive design including the hardware, software and
technical staff requirements, the most feasible option is to house the central operations office
(NPCO) with NAMRIA. Also, preparations are underway to install a NAMRIA-wide spatial data
infrastructure (nSDI) with support from AusAID60. This is a prelude to the establishment of the
NSDI that has been on hold for 10 years due to lack of funding. AusAID is expected to complete
the preparation of a strategic and implementation plan for NAMRIA’s spatial data infrastructure
by June 2010.
3. Materials and Equipment
230. The materials and equipment required to install the M&E system thru the DDM&E consist
of satellite images, hardware and software for remote sensing and GIS. The hardware include
desktop computers, laptops, satellite-based navigation systems (GPS) receivers, handheld
GIS/GPS units, printers, scanners. The software include remote sensing and desktop GIS
including proprietary operating systems; antivirus, database management; application software
for text editing, spreadsheets, presentations, graphics; among others. These materials and
equipment should complement what can be found at the existing M&E units at DENR and at the
LGUs.
231. There should be at least three sets of satellite images during the implementation period of
7 years, that is, every three years, a new set of satellite images should be acquired and
processed to monitor change in land use and land cover specifically compliance with the land
use zoning. The first set (ALOS-PALSAR, 2008 series) is already available at NAMRIA and
undergoing processing. However, these need to be complemented with high resolution satellite
images covering the Project area and may cost up to P6 million pesos. The next two sets,
during the 4th and 7th years are estimated to cost P4 million pesos each61 for a total of P14
million pesos for the cost of satellite images. When necessary, other satellite images like
SPOT5 may be used to allow for the use of existing models for canopy density classification
(e.g. Forest Canopy Density software).
232. The cost for hardware, software at the DDM&E central operations center is estimated at
P2.11 million. Two units of workstations (desktop PCs) will be installed with appropriate remote
sensing software, storage media and other peripherals (Table A1.31). Other requirements
include desktop PCs (2 units), laptops (2 units), GPS receivers (4 units), A3 scanner (1 unit), A3
printer (1 unit), and supplies worth P30,000/year.
59
May be a mix of digital and analog files.
60
Australian Agency for International Development.
61
Based on discussions with NAMRIA technical staff led by For. Jo Cabanayan.
150
Appendix 1
Table A1.31 Estimated cost for materials and equipment for the DDM&E central operations center
Specifications Cost (PhP)
Advanced GIS software for editing, mapping, data integration and 900,000
analysis; Database management software [MSSQL]; Workstation for
high-end computing bundled with licensed operating system, application
softwares for text editing, spreadsheet, graphics, presentations,
antivirus bundled with branded PC workstation
Remote sensing software: reads imagery types gathered from 600,000
numerous satellite and airborne sensors; provides automated pre-
processing tools; includes a comprehensive suite of data analysis tools
bundled with branded PC workstation
Desktop PC for data processing and encoding (2 units) 80,000
Desktop PC for field data processing and encoding (2 units) 120,000
GPS receivers (4 untis) 120,000
A3 scanner 40,000
A3 printer 40,000
Supplies (P30,000/yr X 7 yrs) 210,000
Total 2,110,000
Each of the DDM&E node (4 ROs + 4 PPMOs + 23 component watersheds) should have the materials
and equipment, as indicated in Table 20.
Table A1.32 Estimated cost for materials and equipment for 30 DDM&Enodes
Specifications Unit Cost Total Cost
(Php) (Php)
Workstation for high-end computing bundled with 150,000 3,450,000
licensed operating system, application softwares for
text editing, spreadsheet, graphics, presentations,
antivirus; desktop GIS software for mapping, data
integration and analysis
GPS receivers 30,000 930,000
Mobile GIS/GPS 250,000 7,750,000
A3 scanner 40,000 1,240,000
A3 colour printer 40,000 1,240,000
Supplies (P30,000/yr X 7 yrs) 210,000 6,510,000
Total 21,120,000
151
Appendix 1
The total cost of P37.23 Million for the DDM&E is summarized below:
 Cost of satellite images Php 14 Million
 Cost of DDM&E central operations center 2.11 Million
 Cost of 30 DDM&E nodes 21.12 Million
The technical assistance required to construct and operationalize the DDM&E is discussed in
section 9 of this report.
4. Capacity Building and Training
i. Capacity Constraints
233. For resource assessment, there will be three major modules for capacity building. These
include: Module I on basic and advanced GIS for resource assessment; biodiversity
conservation and watershed management; Module II on land use planning for LGUs specifically
for 10 provinces; and Module III on community mapping delivered to 23 watersheds.
234. The participants will come from the municipalities where the component watersheds are
located. These participants are not expected to have sufficient knowledge on these modules
especially when the topics are contextualized along the concepts and principles of integrated
natural resources and environmental management. Planning officers of LGUs are usually
engineers who do not have sufficient background on forestry, watershed management,
biodiversity and integrated ecosystem management. Description of the Modules
235. The first module on GIS focuses on concepts, principles but more importantly on
applications to resource management. Resource managers should be aware of this technology
and integrate its use in day-to-day management. Moreover, resource managers need to have
an operational understanding of watershed management and biodiversity conservation in order
to make informed decisions. For the second module, the focus will be on the principles for
sound planning. The suitability of a certain land use alternative is based on important
environmental, technical and social factors. Knowledge on methods and techniques to generate
land capability classes and land use suitability categories is vital to sustainable management.
During this module, the factors that lead to accelerated soil erosion, especially inappropriate
land uses will be discussed.
236. The third module is on community mapping. Communities should be recognized for their
experiences in managing their environment. Their mental maps are important inputs to
community mapping. Thus, a combination of GIS and land use planning principles, and
implemented in a community mapping exercise will result to sustainable and practicable land
use zones.
ii. Details of the training modules
237. Details of the indicative training modules62 are shown below:
62
The 3 modules will be elaborated during project implementation. They serve only as guide.
152
Appendix 1
Module I: Basic and advanced GIS and applications to environment and natural
resources assessment, monitoring and evaluation
Objectives: At the end of the training, the participants are expected to:
 Understand the concepts and principles of geographic information system (GIS);
spatial analysis for environment and natural resources;
 Apply the concept of watershed management and techniques for
characterization;
 Conduct rapid assessment techniques for flora and fauna; evaluation of
biodiversity conservation values of flora and fauna
 Apply the concepts and principles of satellite-based positioning systems (i.e.
GPS); field inventory techniques using GPS
Table A1.33 Details of module I Basic and advanced GIS and applications to environment and
natural resources assessment, monitoring and evaluation
Cost of Cost
No. of Cost for Unit cost Total for 23
Venue Duration Training for
Participants trainor/s of training watersheds
Materials Venue
15 to 30 School
pax per PC lab/
5 days 100,0002 15,0003 157,5004 272,500 6,160,000
component Internet
1
watershed Café
Note: 1 An internet café will be rented for the duration of the training since the desktop
computers will be readily available. It is not expected that an LGU will have a computer center
with at least 15 PCs;
2
A training manual should be prepared beforehand for distribution during the training.
Technical assistance will be required to handle this;
3
Cost of rental of 15 PCs for 5 days at P300/day/PC;
4
Cost of 3 trainors for the 5-day training
Total number of participants is 660
Module II: Landuse Planning (for LGUs)
Objectives: At the end of the training, the participants are expected to:
 Understand the principles of land evaluation, land capability classification and
land use suitability assessment;
Table A1.34 Details of module II Landuse Planning

No. of Venue Duration Cost of Cost Cost for Unit Total for 23
Participants Training for trainor/s cost of watersheds
Materials Venue training
15 to 30 Province or 5 days 100,000 - 157,500 257,500 6,000,000

pax per Municipality
watershed
Note: A training manual should be prepared beforehand for distribution during the training.
Technical assistance will be required to handle this; Cost of 3 trainors for the 5-day training is
P157,500; Total number of participants is 660
Module III: Participatory Community Mapping and Land use Zoning (watershed level)
Objective: At the end of the training, the participants are expected to appreciate
153
Appendix 1
participatory techniques for resource assessment, mapping and land use zoning
Table A1.35. Details of module III Community Mapping and Land use Zoning
Cost of Cost Unit
No. of Dura Cost for Total for 23
Venue Training for cost of
Participants tion trainor/s watersheds
Materials Venue training
15 to 30 pax per Province or 5 100,000 - 157,500 257,500 8,910,000
component Municipality days
watershed
The summary of the cost is shown below:
Table A1.36 Estimated cost for capacity building

6,160,000
Module I: Basic & Advanced GIS, GIS-assisted Resource
Assessment, Biodiversity Conservation, Watershed Management
Module II: Land use planning 6,000,000
Module III: Community mapping 8,910,000
Total 20,735,000
5. Consulting Services
238. Expert technical assistance will be necessary to ensure the design, installation and
smooth operation of the DDM&Eat the URB COC and the other 30 nodes and undertake land
capability classification, land use assessment and zoning of the Project area. This requires the
services of a Geographic Information Systems/Mapping/Modeling and Decision Support System
Specialist.
239. Scope of Work: In close consultation with the team leader and other members of the
team, the Geographic Information Systems/Mapping/Modeling and Decision Support System
Specialist will undertake the tasks below:
240. Detailed Tasks:

a) Review and analyze data and information produced for the Project area covering the
river basins of Chico in Northern Luzon, Wahig-Inabanga in Bohol province, Upper
Bukidnon and Lake Lanao in Mindanao. Focus should be on the documents and GIS
files produced during project preparation.
b) Collect secondary and primary data and information on the biophysical, socio-economic
and political characteristics of the Project area, including but not limited to land cover,
land use, watersheds and component watersheds, administrative boundaries down to
barangay level, social and economic data including settlements, agriculture and other
social infrastructure, climate data including hazards, risks and vulnerabilities, rainfall,
geology and soil characteristics, topography and slope, biodiversity and other
environmental parameters, proclamations (in map form) affecting the area including but
not limited to watershed reserves, heritage sites, natural geologic monument, NIPAS,
CADC/CADT, mining permits and other relevant policies.
c) Lead in the design, development and operationalization of the DDM&E taking into
consideration the initiatives undertaken by NAMRIA in the establishment of the national
spatial data infrastructure. Study the advantages and disadvantages of NAMRIA hosting
154
Appendix 1
the DDM&E looking into its internal staff capacity and hardware and software
infrastructure.
d) Oversee the acquisition of satellite images, digital image processing, groundtruthing, and
interpretation towards the production of the vegetation and land cover data for the
project area. Processing should focus on delineating canopy cover of forests in
percentages using acceptable algorithms for canopy cover mapping. To this end, cause
the development of a system for canopy cover mapping to improve existing
methodologies and produce outputs useful for climate change studies and carbon stock
assessment
e) Prepare and produce land capability and land use suitability maps. Undertake GIS
modeling to produce soil erosion susceptibility maps as input to land use suitability
mapping.
f) Conduct capacity building sessions on basic and advanced GIS, at each of the 31
nodes. To this end, produce training manuals for delivery and dissemination to the
identified participants.
g) Assist the Team Leader in any other tasks relevant to the expertise of the consultant
including preparing various reports and other documents required by ADB and
concerned government institutions
241. Required level of input is 4 PM/year for 3 years. The Geographic Information
Systems/Mapping/Modeling and Decision Support System Specialist should have at least a
Masters Degree in related field (remote sensing and GIS or information technology/computer
science/MIS) with at least 10 years of experience in planning, designing/developing and
implementation of GIS including geodatabases with specific applications in agriculture, forestry
and natural resource management. Background in forestry or natural resources management is
an advantage.
155
Appendix 1
References
Anderson, Larz T. 1987. Seven methods for calculating land capability/suitability. American
Planning Association. Chicago. pp. 20.
__________. Forest Boundary Delineation Study of DENR’s Land Administration Management
Programme (LAMP)
Bantayan, Nathaniel C. 2006. GIS in the Philippines – Principles and Applications in Forestry
and Natural Resources. PARRFI and AKECU-AKECOP. Los Banos. 173 p.
Bantayan, N.C., E.R.G. Abraham, and E.S. Fernando. 2008. Geodatabase Development for
Forest Restoration and Biodiversity Conservation in the Mt. Makiling Forest Reserve. In:
The Philippine Agricultural Scientist Vol. 91 No. 4 (December 2008).
Bantayan, Nathaniel C. 1997. GIS-based estimation of soil loss. In: Pterocarpus.
Bayotlang, EL. 1986. Evaluation of erosivity, erodibility and crop management factors of the
universal soil loss equation. PhD thesis (unpublished), University of the Philippines.
McCall, Michael K, Can Participatory-GIS Strengthen Local-Level Spatial Planning?
Suggestions for Better Practice? Suggestions for Better Practice, A paper prepared for
GISDECO 2004 Sudaii, Johor, Malysia, 10-13 May 2004
Wischmeier. 1975. Estimating the soil loss equation's cover and management factor for
undisturbed areas. Paper read at Present and ProspectiveTechnology for Predicting
Sediment Yields and Sources, at Oxford, Mississippi November 28-30, 1972
http://www.eorc.jaxa.jp/ALOS/en/about/about_index.htm
http://srtm.csi.cgiar.org/
156
Appendix 1
VI. Conservation Farming
A. Introduction
242. Watershed degradation in the upper river basins (URBs), with its consequent impacts on
agricultural productivity reflects a vicious cycle of poverty63. In rural areas where economic
production is largely based on land and natural resources, poverty and environmental
degradation form a vicious cycle. From 2000 to 200464, the production of both rice and corn,
which accounts for more than half of the Philippine’s planted area, rose at an annual rate of 3.6
and 3.8% respectively. Despite an overall growth in gross value, the share of agriculture to the
national economy continued its long-term decline. Agriculture is more and more commonly
being practiced on marginal lands using environmentally unsustainable land use practices, often
resulting in alarming rates of soil erosion. About 16.3 million ha of the country’s total land
area of 30 million ha have slopes greater than 18% (BSWM, 1993). Approximately 13.63
million ha of land in the country are classified as moderately and severely eroded, while
about 7.25 million ha of land with potential for agricultural development have soils with
relatively low fertility (Concepción, 1995).
243. Similar to watersheds, the agriculture sector continues to be associated with poverty.
Significant poverty reduction in rural areas remains a challenge unless there are substantial
changes in farming methods, and these changes in turn, will depend on similarly fundamental
changes in the ways that farming is promoted and regulated65.
B. URB Stakeholders and Farming Communities
1. INREMP Stakeholders
244. The ADB Handbook for Social Assessment served as guide for the INREMP social
assessment (SA), which was participatory, consultative and transparent in all facets of said
undertaking. Multi-stakeholder consultations were conducted in Luzon, Visayas, and Mindanao
(February 2009) to officially commence the stakeholder assessment. Three rounds of site visits
and consultations in the four URBs were conducted from region to province, municipal and
village levels.
245. Key Institutional Stakeholders. The multi-stakeholder consultations enabled the
identification of URB stakeholders. Institutional stakeholders for INREMP are (i) DENR, (ii)
NCIP, (iii) Local Government Units, (iv) Department of Agriculture-National Irrigation
Administration (DA-NIA), (v) Department of Agrarian Reform (DAR), and the National Power
Corporation (NPC).
246. Perceptions on Performance of Institutions. On the average, the highest perceived
effectiveness in delivering innovations is largely attributed to the institutions’ clear understanding
of their well-defined missions and mandates. Among the partner institutions, DA has the highest
rating and the DENR obtained the lowest rating. Although DA was rated as the partner
institution with the clearest understanding of missions and mandate, it was also rated as the one
with the least defined responsibilities. Meanwhile, DENR was identified to be the institution with
the most defined responsibilities and most aware of public accountability. Finally, in terms of
63
ADB. 2008. Country Environmental Analysis (draft) 2008.
64
Bureau of Agricultural Statistics, 2006.
65
DO Manzanilla, et. Al., Conservation Agriculture in the Philippines: Perspective, RD&E programs, Issues, Gaps and Potentials.
2007.
157
Appendix 1
interaction with other national and local government units, private entities, and the civil society,
the highest rating was given to DENR. The lowest rating was given to NIA.
247. Institutionally, LGUs are consistently perceived to be at the forefront of natural resources
and environmental management, over and above the DENR across all sites. With comparatively
low ratings, Project measures have to be crafted to give credence to the DENR mandate as
regards natural resource management.
248. Vulnerable Stakeholders. The Social Assessment was able to identify vulnerable
stakeholders within the INREMP URBs: indigenous peoples (IPs), women, poor farmers,
internally displaced persons of Muslim Mindanao, and affected persons brought about by
involuntary resettlement.
249. Such stakeholder types require the design of a special participation plan that will enable
them to access project benefits. Stakeholders with high influence and low importance may not
be the targets of the project but may oppose interventions. They will need, as appropriate, to be
kept informed and their views acknowledged in order to gain support and to avoid disruption or
conflict.
2. URB Farmers: Characteristics, Issues and Concerns
250. The farming communities described below are the result of a Social Assessment across
the INREMP URBs, sampled by watershed section, upstream, midstream, and downstream.
These sections all within upper portions of INREMP river basins thus even those in downstream
communities strictly still fall within the upland category but are located closer to the delta or
confluence of a major river system, much closer to lowland ecosystems. Table A1.37 shows the
location of the sampled farming communities.
Table A1.37 Farming Communities under Social Assessment

Midstream Downstream
URB Upstream Communities
Communities Communities
Chico River Basin 1. Monamon Sur, Bauko, Mt. Tinglayan, Tabuk, Kalinga
Province Kalinga
2. Ahin, Tinoc, Ifugao
3. Lamayan, Buguias,
Benguet
Lake Lanao River Bubong, Lanao del Sur Taraka, Lanao Marawi City,
Basin del Sur Lanao del Sur
Upper Bukidnon Lantapan, Bukidnon Valencia City,
River Basin Bukidnon
Wahig-Inabanga Pilar and Sierra Bullones, Danao, Bohol Inabanga, Bohol
River Basin Bohol
251. Highland Upstream Farmers. Upstream farming households on the average have eight
household members, with average annual income of PhP60,000. Average size of farm lots
amongst upland farmers is 2.1 ha planted to mixed and alternate crops. These farm lots
generally are owned, followed by leasehold and as sharecroppers, though ownership is mostly
in terms of tax declarations or ADs. These areas generally are in forest reserves or protected
areas and thus cannot be titled.
158
Appendix 1
252. Across all sites, dominant crops based on production are vegetable crops, followed by
upland rice, and corn. The highest production is sub-temperate vegetables with approximately
20 tons per annum and average parcel for production is one hectare. The dominant primary
crop is rice, followed by corn. Other crops are vegetables, banana and cut flowers. Financial
services for agricultural production mostly are through relatives and small formal lending
institutions since these services are hard to come by in upstream areas. Farm suppliers and
middlemen proliferate in Chico upstream areas.
253. Most cited problems are mostly on forest denudation and poor rural infrastructure. Forest
denudation is greatly attributed to poverty manifested through illegal logging/timber
poaching/indiscriminate cutting of trees, tree cutting for charcoal making, banana plantation,
forest fires, loose soil due to frequent ploughing, and small scale mining. Poor rural
infrastructure, on the other hand, is deemed inevitable due to the topography, a major cause for
low production/income, limited access to government services, credit and marketing.
254. Midstream farming households on the average have 6.7 household members, with
average annual income of PhP43,333.00, average size of farm lots amongst upland farmers is
1.3 ha planted to mixed and alternate crops. These farm lots generally are leasehold except for
Chico which are within ADs. All these attributes are lower than those from highland-upland
farming households.
255. Across all sites, dominant crops based on production are rice and vegetables. Highest
production is vegetables with 5 MT per annum, followed by rice with 4.7 MT and corn (3 MT).
Financial services for agricultural production mostly are through relatives and small formal
lending institutions. In Chico however, there are no such services, formal or informal in
midstream areas (Tinglayan, Kalinga).
256. Midstream farming households cite forest denudation, poor rural infrastructure, and heavy
use of chemicals for farming to be paramount problems affecting farm productivity. With respect
to chemical use, these are believed to result to barren soil, polluted water system, and
destruction of living resources like fresh water fish and shrimps affecting livelihood activities.
257. URB Midstream Farmers - average annual income of PhP43,333.00, average size of
farm lots amongst upland farmers is 1.3 ha planted to mixed and alternate crops. These farm
lots generally are leasehold except for Chico which are within ADs. All these attributes are lower
than those from highland-upland farming households.
258. Across all sites, dominant crops based on production are rice and vegetables. Highest
production is vegetables with five MT per annum, followed by rice with 4.7 MT and corn (3 MT).
Financial services for agricultural production mostly are through relatives and small formal
lending institutions. In Chico however, there are no such services, formal or informal in
midstream areas (Tinglayan, Kalinga).
259. Midstream farming households cite forest denudation, poor rural infrastructure, and heavy
use of chemicals for farming to be paramount problems affecting farm productivity. With respect
to chemical use, these are believed to result to barren soil, polluted water system, and
destruction of living resources like fresh water fish and shrimps affecting livelihood activities.
260. URB Downstream Farmers - Downstream farming households on the average have 6.8
household members with average annual income of PhP71,250.00. Average size of farm lots
amongst upland farmers is 1.4 ha planted to mixed and alternate crops. These farm lots
generally are owned or leasehold and ownership is mostly in terms of tax declarations or
ancestral domains. Areas generally are agricultural in terms of land use classification but still
with A&D, AD, and forestlands.
159
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261. Across all sites, dominant crops based on production are rice and vegetables, followed by
corn and forest trees. Highest production is vegetables with approximately 4.7 tons per annum
followed by corn (3 tons) and rice (2.7 tons). Dominant primary crop is rice, followed by corn.
Other crops are vegetables, banana and cut flowers. Financial services for agricultural
production mostly are through formal lending institutions and pawnshops.
262. Downstream farming communities frequently cite erosion, poor rural infrastructure, and
chemical use to be key environmental issues resulting in barren soil, polluted water system, and
destruction of living resources like fresh water fish and shrimps.
263. Synthesis. Table A1.38 shows the summary characteristics of the three types of farming
communities in the INREMP-URBs. Household size is greater in the upstream section of the
river basin. Average income is estimated to be higher in downstream farming communities with
those along midstream as having the lowest as in the case of respondents from Tinglayan,
Kalinga, Taraka, Lanao del Sur and Danao, Bohol.
264. While upstream communities are more concerned about the forest denudation the most
pressing issue raised by downstream farmers is soil erosion. An issue common to all three
farming communities is poor rural infrastructure affecting access to social and financial services
as well as markets for produce.
Table A1.38 Summary Description of Farming Communities in INREMP-URBs
Parameters Highland-Upstream Midstream Downstream
HH size 8 6.7 6.8
Income PhP 60,000 PhP 43,333 PhP 71,250
Farm size 2.1 1.3 1.4
Tenure Owned, leasehold, & Leasehold Owned & leasehold
sharecropper.
66 67
Tenure modality TD & AD TD & AD A&D, TD & AD
Land classification Forest lands A&D, AD, & forestlands Agricultural, A&D, AD, &
forestlands
Dominant crops Sub-temperate vegetables, rice, Rice & vegetables Rice, vegetables, corn & forest
& corn trees
68
Production Vegetables – 20T Vegetables – 5T Vegetables 4.7T
Financial services Relatives & small formal lending Relatives & small formal Formal lending institutions &
institutions lending institutions pawnshops
Environmental problems Forest denudation & poor rural Forest denudation, poor Erosion, poor rural
infrastructure rural infrastructure, & infrastructure, & chemical use
chemical use
3. Local Farming Organizations within INREMP URBs
265. All farming communities assessed are replete with non-government/local/peoples’

organizations (NGO-PO), to wit: (i) Irrigators Association, (ii) White Water Rafters [operators of
ecotourism], (iii) Farmers Associations, (iv) Fisher folks Associations, (v) Small scale miners
Associations, (vi) IP Organizations and Provincial Consultation Body, (vii) Multi-purpose
Cooperatives, (viii) Women’s Associations, (ix) NGO Groups, (x) Youth Associations, (xi)
Livestock Raisers Associations, (xii) Religious Organizations, (xiii) Maranao POs, and (xiv) Out
of School Youth Associations.
266. Village level analysis69 shows that INREMP would require capacitating efforts to empower
vulnerable stakeholders and enable meaningful participation to natural resources management.
Similarly, much has to done as regards capacitating local organizations. In IFAD-CHARM
66
Tax declared
67
Alienable and disposable
68
Tons
69
See INREMP Main Social Report.
160
Appendix 1
projects across the Cordilleras, an assessment of POs reveal that while these POs are rated
low, there are good practices that can provide the impetus for INREMP partnership given more
organizational strengthening. Most Reforestation POs were existent prior to CHARM and the
basics in organizational management are still practiced70. The trend for these POs to access
and focus on current initiatives is a manifestation for organizational longevity to better access
services and benefits.
C. Opportunities for Conservation Farming, Livelihoods for the Poor
1. Conservation Farming Technologies: Menu of Options
267. Concerns on sustainable agricultural development include71: increasing soil erosion, low
soil fertility due to improper land use practices, decreasing availability of farm labor, and
unavailability of farm capital. The sloping agricultural land technology (SALT) is one technology
developed to address said concerns. It is a diversified farming system, which can be considered
agroforestry72. Rows of permanent shrubs are dispersed throughout farm lots, planted
alternately to cash crops and may include trees for timber and firewood. SALT was developed in
197173 in efforts to arrest the then growing problems of environmental degradation. Salient
characteristics of SALT are as follows: (i) adequately control soil erosion, (ii) help restore soil
structure and fertility, (iii) be efficient in food crop production, (iv) be applicable to at least 50
percent of hillside farms, (v) be easily duplicated by upland farmers with the use of local
resources and preferably without making loans, (vi) be culturally acceptable, (vii) have the small
farmer as the focus and food production as the top priority, (viii) be workable in a relatively short
time, (ix) require minimal labor, and (x) be economically feasible.
268. The National Agriculture and Resources Research and Development Network (NARRDN)
conducted 129 projects dealing with conservation agriculture from 1990-2005. Results of the
NARRDN initiatives identified gaps and weaknesses in popularizing conservation farming
technologies throughout the country. These gaps are summarized by Manzanilla, et al (2007) as
follows: (i) Holistic approach to assessment of package of technologies, (ii) Lack of production
resources and limited labor input, (iii) Proper matching of technologies to farmers’ resource
base, (iv) Establishing the profitability and other measure of benefits of conservation measures,
and (v) Farmers’ participation in research and documentation of their success stories. Validation
and institutionalization of indigenous technologies. Inclusion of other key players in the
conservation agriculture networking: a) Conflicting roles of key people, b) Lack of incentives for
the farmer-volunteers and change agents, c) Land not their own, and d) Lack of political
support.
269. Based on results of all these studies, a menu of conservation farming technologies in the
Philippines is made available as shown in Table A1.39.
Table A1.39 Menu of Conservation Farming Technologies
TECHNOLOGY COMMENT
Contour Farming Generally classified into vegetative barriers, physical barriers, canals and soil traps,
and farming systems in sloping lands
Structural produce fewer amounts of surface runoff and sedimentation than contour
Contour canal hedgerows but require higher establishment and maintenance cost.
Bench terrace
70
IFAD-CHARM Evaluation, 2006.
71
DO Manzanilla, et. Al., Conservation Agriculture in the Philippines: Perspective, RD&E programs, Issues, Gaps and Potentials.
2007.
72
DOST Agroforestry Information Network. http://www.pcarrd.dost.gov.ph
73
Mindanao Baptist Rural Life Center (MBRLC)
161
Appendix 1
TECHNOLOGY COMMENT
Live Fences Trees planted in a row formation to make a natural barrier.
Classified under vegetative barrier, is becoming popular for sloping lands in the
Alley cropping country
Hedgerows Trees, shrubs, or grasses are established along the contours of an area.
Naturally occurring vegetation like grasses and herbs are left in narrow strips to
Natural vegetative strips serve as barriers.
Sloping agricultural land technology Variation of alley cropping using A-frames to estimate appropriate slope set-up.
Home Gardens Trees in intimate association with annual and perennial agricultural crops and small
livestock within house compounds
Green Manure Suitability of non-grain green manure crops
Rapid composting Use of Trichoderma, a cellulose decomposer fungus
Cover crops Example is using Vetiver grass
Crops developed with agricultural biotechnology reduce the need for tillage or
Conservation tillage ploughing
Machinery for Minimum Tillage Development of appropriate machinery for minimum or zero tillage
Technology promoted together with multi-stakeholders, partnerships at the local
Extension and Promotion Modality communities
Conservation farming village Modality for enhancing the transfer of conservation farming technologies and
practices anchored on participatory planning, monitoring, and evaluation processes
at the community level.
Landcare Movement Farmer-led organizations supported by local governments with backstopping from
technical service providers
a. Livelihood Support for the Poor

270. Introduction of the packages will require the Project to provide a combination of training
and extension inputs, some credit support and assurance of appropriate post-harvest
management and marketing conditions; the three main critical milestones will therefore be:
extension and training; micro, small, medium-sized agro-agribusiness and post-harvest
management; business advisory, market linkages and linking to micro-credit/finance institutions.
271. The socio-economic absorptive capacity of the IPs and upland farming communities in
URBs will be among the defining measures in providing interventions. Provision of assistance
shall be categorized as follows:
i. Micro and small agro/agri-enterprise development
for the productive poor
272. The productive poor will be provided with technology assistance, business advisory, value
chain and market linkages; and, linking them to micro-finance institutions/credit facilities to
support the capital requirements of the up-scaled technology and/or for value addition,
specifically on the following:
i. Enhancement/improvement or development of the farm holdings to changes of
farm systems to intercropping, diversification, integrated and multi-cropping
systems through the adoption of soil and water conservation technologies;
ii. Working capital for agro-agri-based micro and small enterprises of the farmers and
their organizations; and
iii. Primary production, processing, manufacturing and other strategic technology and
livelihood development endeavours (e.g. charcoal making, village-level food
processing, handicraft making, etc.).
162
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ii. Agricultural assistance for the vulnerable farming

households
273. Livelihood assistance packages may be in the form of technology transfer-related training
with corresponding farm inputs (e.g. seeds and seedlings, organic fertilizer, farm implements,
small machinery/ equipment) through setting up demonstration farms.
iii. Setting up of seed fund for the replication/up-
scaling/expansion of tested and mature technologies adopted
by the non-bank eligible/vulnerable households
274. In the Project area about 58% are living below the poverty line, of which many are
severely poor. These households are among the target beneficiaries who will participate in the
technology training cum practicum and integral to it are the establishment of pilot
demonstrations/trials. Based on the experience of past IFAD-assisted projects, most
beneficiaries were constrained to replicate or scale-up the tested technology due to financial
limitations. Although credit windows were made available for those who are in need of credit,
the requirements are so stringent that most loan applicants could not access the credit fund.
275. To enable non-bankable or non-bank eligible household to replicate or scale-up mature
technologies, the Project will set aside funds for this purpose. The Project management will
provide the necessary assistance in kind, in the form of seeds, seedlings, organic fertilizers
and/or farm implements or small machinery, and market linkages. As the capacity and credit
worthiness of these stakeholders improves, either individually or organizationally, the Project will
link them to financial institution/s for their working capital requirements in agro-agri-based micro
and small enterprises that they may venture.
276. Scoping of vulnerable farming household. The Project management may use the
wealth ranking tool in identifying vulnerable households. IFAD characterized vulnerability using
parameters, which WMCIP (in the Kapitbahayan “neighborhood” Program) and NMCIREMP (in
Poverty Alleviation Fund) also adopted, in scoping the vulnerable households, as follows:
(i) Landlessness or limited access to land
(ii) Larger families with higher dependency ratio
(iii) Low educational attainment
(iv) Under employed or unemployment
(v) Lack of basic amenities such as water supply, sanitation and electricity
(vi) Limited or no access to credit, inputs and technology
(vii) Lack of market information, business and negotiate experience and collective
organization
(viii) Low level of social and physical improvements
(ix) Expose to famine and disease
(x) Prone to disaster, conflict and violence
(xi) Living in social seclusion and remoteness
(xii) Deprived of infrastructure.
277. Delivery Support Scheme. A seed fund in the amount of 50,000 pesos or less,
depending on the evaluation of the proposed technology-based farming enterprise to be
upscaled/replicated or expanded, will be provided to an existing organization comprising 15-20
vulnerable households. The assistance will be in kind. The Project management will formulate
operating guidelines for the seed fund program. A trust receipt/covenant or memorandum of
163
Appendix 1
agreement will be an instrument used in defining the accountability and sustainability of the
assistance received by the organizations.
2. Strategies for Conservation Farming Technology Adoption: Technical
Extension and Technology Promotion
278. The ADB Public Communications Policy seeks to encourage the participation and
understanding of people and other stakeholders affected by ADB-assisted activities. Initiatives
to address poverty reduction are useless if not communicated properly for synchronized efforts
of all key development actors. INREMP takes on poverty reduction undertakings, which greatly
demand behavioural change, specifically among the vulnerable stakeholders.
279. The Project is so designed that Component 2: URB field investments envisions the
following outputs: Field investments based on approved URB Management Plans will result in
the conservation and protection of the 478,000 hectares of natural forests through (i)
community-based protection and monitoring; (ii) rehabilitation of 74,000 ha out of a potential
area of about 280,000 ha through reforestation and assisted natural regeneration (that will be
prioritized during the management planning stage); (iii) establishment of pilot demonstrations of
forest and land management models; (iv) introduction of sustainable forest management over
10,000 ha of natural forest on areas with slopes less than 30%; (v) establishment of pilot
demonstrations of commercial plantations over 2,300 ha and agro-forestry over 2,300 ha to
address the imbalance between supply and demand for timber and charcoal and facilitate
participatory private sector investments in a further 80,000 ha. of managed natural forests,
(75,000 ha of commercial plantations, and 60,000 ha of AF); (vi) TE-IEC program
implementation to promote improved and more profitable farming systems and enhance
awareness regarding appropriate land use, protection and conservation, climate change
adaptation and mitigation, and conservation farming.
280. Aside from conservation and protection of the natural forest, the Project will implement
livelihood enhancement through rehabilitation and improvement of rural infrastructure and
livelihood support for the poor. Rural infrastructures will include an estimated (a) 560 km of rural
access roads; (b) about 3,040 ha of communal irrigation schemes; (c) 275 units of potable water
supply schemes (Level II – Spring Development); and (d) TE-IEC program implementation to
improve effectiveness of technical extension services.
281. Another sub-component is the livelihood support for the poor, which is designed to
encourage farming communities to participate in forest protection and farming conservation
efforts and at the same time address the issue of food insecurity.
282. Existing local POs have to be strengthened to be the arena for participation especially
among early adopters. Local NGOs on the other hand can likewise provide the technical
expertise and form the pool of trainers, or engage in M&E activities to ensure that farmers adopt
the conservation farming technologies and that farm inputs and information are received in a
timely manner.
283. Several modalities for extension can be crafted similar to those developed by LANDCARE
under the Western Mindanao Community Initiatives Project (WMCIP) of the Department of
Agrarian Reform-IFAD, where the following were conducted: (i) on-farm researches, (ii) cross
farm visits, and (iii) farmers forums. While not all of these were successful in the course of
WIMCIP implementation, key lessons learned were that the identification of sustainability
indicators at project start as well as formulation of project-exit plans is imperative.
284. Lastly, IEC materials will be prepared as part of the development support communication
provided in the C&P plan in order to enhance the informed decision-making process among the
164
Appendix 1
vulnerable stakeholders. Materials will be developed according to the needs and preferences of
the community. For instance, some IP groups still prefer interpersonal communication as the
most effective way of informing and educating farmers, especially when role-paying is included.
For other stakeholders, print and audiovisual materials are more than enough. Along with site-
specific matching of conservation farming technology is the need to match the appropriate and
preferred IEC modalities. These have to be included in the Social Assessment to be conducted
immediately before investments are made.
a. Community-Based Technical Extension Processes
285. The enhancement of productivity systems in order to mitigate the downward trend of its
resource-use functions rests upon the foundations of a strong, persistent and improved quality
and coverage of extension services.
286. A participatory field appraisal focusing on farmers’ demands will allow the selection of
packages and determine the training/demonstration trials needed for implementation, which will
include:
(i) Specific farmer group training at the barangay level
(ii) On-farm trials to test, verify and adapt the technologies for local use
(iii) Appropriate field practical work to develop on farm training based on results of
trials
(iv) Assistance to implementing farmers that apply the adapted package and
(v) Participatory evaluation and updating/upgrading of developed packages
287. Extension delivery will build on existing staff principally in the service providers, either the
municipal agriculture office, NGO or academe. Where necessary, they will be provided with a
professional training scheme; and specialist consultancy inputs will be provided, particularly in
less favoured CADC/IP areas.
288. A Farming Systems Development approach will be utilized where all the relevant National
Agencies, LGUs and NGOs will be involved during program orientation. Technical training and
field studies will be undertaken. Training in environmental conservation, perennial crop
production, and integrated pest management, utilizing the Farmers Field School Systems, will
also be done.
289. Every extensionist/technologist will assist in setting up an on-farm participatory trial plot in
a specified barangay or cluster of barangays with the participation of the LGUs, concerned
National Agencies, and the farmer leaders representing the farmers’ organization and the
women’s group.
290. The Project will develop community para-technicians as champions for technology
transfer. They will serve as farmer to farmer educators and assist the Project management in
mobilizing farmers and in monitoring technology adoption.
291. The Project will set up improved information and communication and monitoring and
evaluation systems. The latter will cover: human resources and training per staff and farmer
leader involved; the technical monitoring of every ongoing on-farm trial and of
demonstration/adaptive research activities developed by partners; and periodic reassessment of
constraints identified by farmers in the area. It will feed the reassessment and updating process.
b. Technology Promotion for Conservation/Upland Farming
292. There are two major farming systems that can be promoted in the river basins: (a) a
diversified farming system (multi-cropping system) and (b) an integrated upland farming system
(crops+animals+ fishery).
165
Appendix 1
293. The principal opportunities for farming systems improvement for the upland and
undulating land areas are: to target fruit tree micro-plantations, timber-diversified planting and
replanting of coconut with hybrid varieties on a wide row base to facilitate inter-planting to coffee
or any market-driven crops; and to support sedentarization of slash and burn farmers with
development of timber, intercropped banana, and livestock fattening.
294. In every upland barangay, at least one five-hectare agro-forestry system will be
established. Tree plantations can be 70:30 ratio (70% fruit trees+ permanent/perennial trees),
and plant cash crops in between alleys as practicable. This will be supported by setting up
nurseries to complement the seedling requirements of the potential adopters.
295. At the farm level, risk aversion that arises from poverty drives decision-making and is a
major constraint. The first focus is on food security through diversified cropping; second is cash
generation, at least 40% of production has to be market-oriented. Aside from introduction of
agro-forestry systems it will include soil and water conservation technologies in slopes, such as
establishing hedgerows along vegetable gardens; contour farming; slope agricultural land
technology, natural vegetative strips. In addition, the farmers will be trained on organic fertilizer
production, such as: vermin-culture, green manuring, composting, and the like.
296. Effective raising of farm HH productivity and incomes requires specific interventions for
which the following adapted production packages are proposed:
i. Chico River Basin
(i) No more expansion of production area for vegetable growing but instead intensify
production of the existing vegetable plots through greenhouse farming (vegetable
and cut flowers) adopting the bio-intensive gardening or applying organic
fertilizer/pesticides and with established hedge rows along slopes;
(ii) Agro-forestry (fruit trees+ perennial trees), and plant cash crops in between alleys
until practicable. Tree plantation can be 70:30 ratio (70% fruit trees) or depending
on the farmer’s best option. There may be an integration of fast growing trees for
firewood or charcoal making;
(iii) Generate business-oriented sustainable timber tree planting of mahogany, teak, ipil
and any indigenous species;
(iv) Setting up community nurseries to support the seedling requirements of the agro-
forestry system adopters. This will also be the learning site or farmer field school of
interested farmers;
(v) Complementary livestock fattening in cereal-based systems and vegetable feeds;
(vi) Rice production in irrigated areas applying the Masipag Rice Technology; and
(vii) Support for mung bean in mixed cropping or in post-cereal cropping.
ii. Wahig-Inabanga River Basin
(i) Replacing of old mono-crop with wide row hybrid coconut intercropped with rice,
corn and perennials;
(ii) Enhance the existing backyard vegetable garden applying the bio-intensive/organic
farming
(iii) Developing micro-plantations of banana, mango and pineapple for which marketing
facilities/trade post and technical knowledge are best in the area;
(iv) Generate business-oriented sustainable timber tree planting, of mahogany, teak,
ipil and any indigenous species;
(v) Agro-forestry (fruit trees+perennial trees), and plant cash crops in between alleys
as practicable. Tree plantation can be 70:30 ratio (70% fruit trees) or depending on
166
Appendix 1
the farmer’s best option. Fast growing trees can be integrated for
firewood/charcoal;
(vi) Setting up a community nursery to support the seedling requirements of the agro-
forestry system adopters. This shall also be the learning site or farmer field school
of interested farmers;
(vii) Complementary livestock fattening in cereal-based systems with paddy husk and
coconut cake feeds;
(viii) Rice production in irrigated areas applying the Masipag Rice Technology; and
(ix) Support for mung bean in mixed cropping or in post-cereal cropping.
iii. Bukidnon River Basin
(i) Planting of abaca or rubber micro-plantations - with complementary activities in
order to avoid mono-cropping;
(ii) Generate business-oriented sustainable timber tree planting of mahogany, teak, ipil
and any indigenous species; or any fast growing trees for firewood/charcoal. Silicor
is potential market for charcoal;
(iii) Smallholder coffee micro-plantations, especially for experienced, cooperative
member farmers;
(iv) Agro-forestry (fruit trees+perennial trees), and plant cash crops in between alleys
as practicable. Tree plantations can be 70:30 ratio (70% fruit trees) or depending
on the farmer’s best option. Fast growing trees can be integrated for
firewood/charcoal. Silicor is a potential market for charcoal;
(v) No expansion of area for vegetable growing but instead intensify production of
existing vegetable plots through greenhouse farming (vegetable and cut flowers)
adopting the bio-intensive gardening or applying organic fertilizers with established
hedge rows along slopes;
(vi) Developing micro-plantations of banana, mango and pineapple for which marketing
(vii) Setting up a community nursery to support the seedling requirements of the agro-
(viii) Complementary livestock fattening in cereal-based systems with paddy husk and
vegetable feeds;
(ix) Rice production in irrigated areas applying the Masipag Rice Technology; and
(x) Support for mung bean in mixed cropping or in post-cereal cropping.
iv. Lanao Lake Basin
(i) Replacing of old mono-crop with wide row hybrid coconut intercropped with rice,
corn and perennials;
(ii) Enhance existing backyard vegetable garden applying the bio-intensive/organic
farming
(iii) Developing micro-plantations of banana, mango and pineapple for which marketing
(iv) Generate business-oriented sustainable timber tree planting of mahogany, teak,
ipil, any indigenous species, and/ or fast growing species for charcoal making.
Silicor is a potential market for charcoal.
(v) Agro-forestry (fruit trees+perennial trees), and plant cash crops in between alleys
as practicable. Tree plantations can be 70:30 ratio (70% fruit trees) or depending
on the farmer’s best option. Fast growing trees can be integrated for
firewood/charcoal;
167
Appendix 1
(vi) Setting up a community nursery to support the seedling requirements of the agro-
(vii) Complementary livestock fattening in cereal-based systems with paddy husk and
coconut cake feeds;
(viii) Rice production in irrigated areas applying the Masipag Rice Technology; and
(ix) Support for mung bean in mixed cropping or in post-cereal cropping.
D. Implementation Arrangements
297. The URBs, except in Wahig-Inabanga, cover more than one province. The Chico River
Basin covers CAR and Cagayan provinces; municipalities of Lanao del Norte are located in both
Lake Lanao and Bukidnon River Basins. Bukidnon River Basin covers the provinces of Misamis
Oriental, Lanao Norte, and Bukidnon. To ensure coherence and consistency in implementing
sub-projects across municipalities within the river basin, a Provincial Project Coordinating Office
will be set up taking into consideration the geographical coverage and not by political
boundaries. To complement the PPMO, an office shall be established in each watershed, which
will be called Watershed Project Coordination Office (WPCO) to be lodged at the concerned
DENR-CENRO.
298. The NPCO/PPMO in coordination with the Municipal Agriculture Offices (MAOs) and
Municipal Environment and Natural Resource Officers (MENROs) will engage service providers
through competitive bidding or through a memorandum of agreement for the implementation of
the livelihood enhancement, including livelihood support for the poor.
299. The seed fund for replication/expansion of matured technologies will be managed by
DENR.
300. Discussions were held during the Fact Finding Mission with international and national
NGOs, academe, and R&D institutions with relevant experience and specialized technical
capacity within the project areas, such as the Philippine Tropical Forest Conservation
Foundation (PTFCF) and the World Agroforestry Center (ICRAF). It is proposed that NPCO
shall establish prequalification criteria and interested service providers will submit
proposals/bids for the implementation of specific activities in particular locations.
E. Sustainability Mechanisms
301. DENR, through the NPCO, in coordination with the concerned LGUs, will put in place
sustainability mechanisms at the outset of project implementation to ensure that the IPs/farmers
and community-based organizations continue to sustain the operationalization of their programs
and projects.
302. The PPMO has to ensure that community members and their organizations are actively
involved in the selection, prioritization, design, implementation, monitoring and evaluation of
programs/ projects/services in order for them to inculcate the sense of ownership and
accountability even after the end of assistance.
303. The management plans of the URBs will be integrated into the development plans of the
concerned LGUs to ensure a smooth transition of roles from DENR to the LGUs when the
INREMP ends. The LGUs should maintain the facilitation role: providing technical guidance and
linking communities to relevant agencies. Working with existing structures and enhancing such
systems will enable communities and LGU field personnel to work efficiently and effectively.
168
Appendix 1
VII. IMPLEMENTATION ARRANGEMENT FOR RURAL INFRASTRUCTURE
304. Appraisal and approval of INREMP financed rural infrastructure sub-components

proposed by partner communities through the MLGUs shall be the responsibility of the
Provincial INREM Council (PINREM-C). This will be an inter-agency group the composition of
which will be technical representatives from relevant oversight and national government
agencies at the provincial level.
305. The Project will utilize the existing supporting units of the municipal LGU like the
accounting and budgeting offices and the Bids and Awards Committee (BAC) for the
procurement of works and goods in accordance with R.A. 9184 as harmonized with the ADB
Procurement Guidelines.
306. A Monitoring and Evaluation (M and E) unit will also be established for INREMP utilizing
existing M and E units of the MLGUs. The monitoring and evaluation specialists of these units
will assist the NPCO in the design and implementation of the INREMP M and E systems
including the preparation and consolidation of regular quarterly and annual progress reports
required by the Project.
A. Rehabilitation And Improvement
307. Implementation Processes and Procedures. Implementation of the rural infrastructure

sub-components will be according to the following processes and procedures:
308. Sub-Component Identification, Prioritization and Validation. The community will have the
sole responsibility of identifying and prioritizing rural infrastructure sub-components during the
conduct of participatory planning and consultations. Technical assistance and guidance will be
provided by the MLGU.
309. Identified and prioritized sub-components shall be subject to field validation by the
PPMO with support from the technical consultants prior to the preparation of the individual
Feasibility Study (FS) and Detailed Engineering (DE) Documents.
310. The Municipal Planning and Development Office (MPDO) will ensure that all sub-
components identified and prioritized by the community will be endorsed by the Barangay
Development Council (BDC) to the Municipal Development Council (MDC) for integration to the
Municipal Development Plan (MDP) and concurred by the Sangguniang Bayan (SB).
311. Sub-Component Preparation. Sub-component preparation will cover activities necessary
to conduct the feasibility analysis, detailed survey, engineering design and preparation of
detailed engineering plans, specifications and Programs of Work (POW). The preparation of
Feasibility Study (FS) of each individual proposed sub-component will be the main responsibility
of the MPDO while the conduct of field surveys and preparation of detailed engineering
documents will be through the MEO. Completed FS and DE documents will be reviewed by the
PPMO with support from the technical consultants and endorsed to the PINREM-C for final
appraisal and approval.
312. During sub-component preparation, clearances and certifications from government
regulatory agencies will be worked out by the MLGU. The basic geometric and design
specifications to be adopted by INREMP for each type of rural infrastructure sub-component are
attached.
313. Sub-Component Technical Review, Appraisal and Approval. Initial technical review of
sub-component documents prepared by the MLGU will be done by the PPMO with support from
the technical consultants and endorsed to the PINREM-C for final review, appraisal and
approval.
169
Appendix 1
314. Prior to PINREM-C approval, PPMO will conduct field pre-appraisal of sub-components
proposed for funding. A pre-appraisal report will be prepared by PPMO as basis for PINREM-C
decision during sub-component deliberation. All documents necessary for PINREM-C
deliberation will be prepared by PPMO as the designated PINREM-C secretariat.
315. Procurement Methods and ADB Guidelines. Majority if not all rural infrastructure sub-
components under INREMP financing are expected to be relatively small involving small work
contracts and are unlikely to attract international contractors.
316. In accordance to ADB procurement guidelines, contracts costing less than
US$5,000,000 equivalent will be awarded through Local Competitive Bidding (LCB) and will be
guided by R.A. 9184 otherwise known as the “Government Procurement Reform Act” as long as
the provisions are consistent with ADB Procurement Guidelines for civil works.
317. However, individual sub-components costing less than US$100,000 may be
implemented by LGUs through “Force Account” or by administration as long as the total value of
all civil works carried out on “Force Account” basis for INREMP will not exceed in total of
US$16,000,000.
318. LGUs signifying intention to implement by “Force Account” will be evaluated by the
PPMO for technical and equipment capability and will secure authorization from this office.
Procurement of “Goods” under “Force Account” works will also be guided by R.A. 9184
consistent with ADB Procurement Guidelines for goods.
319. Procurement of “Civil Works” and “Goods” will be the main responsibility of the municipal
LGU through its duly constituted Bids and Awards Committee (BAC) in accordance with the
provisions of R.A. 9184.
320. Conditions for Fund Release. Upon PINREM-C approval of rural infrastructure sub-
components and completion of procurement activities, the releases of Certificate of Availability
of Funds (CAF) and corresponding funding support will be according to the procedures and
conditions in the PAM.
321. Implementation Mode. In support to the national government’s employment generation
program and in consideration that majority of the sub-components are small scale. Labor
Based–Equipment Supported (LB/ES) methods of construction shall be adopted whenever
possible. This should also allow communities to be engaged as “Pakyaw” labor contractors to
ensure full involvement as well as help in the process of people empowerment and in building
up a sense of ownership and responsibility.
322. Regardless of whether implementation is carried out by contract or by LGU “Force
Account” and pursuant to R.A. 5635 dated December 12, 1988, at least fifty (50) percent of the
unskilled and thirty (30) percent of the skilled labor requirement shall be taken from the
beneficiary community. Hence, beneficiaries within the community shall be the first priority in the
selection of labor force. The women shall be given equal opportunity to join the labor force.
323. Sub-Component Execution and Supervision. Implementation of rural infrastructure sub-
components under INREMP will require full attention from the MLGUs as the executing units.
The MLGU through the designated technical staff will be the main responsible office for the
execution and daily supervision of sub-components implementation regardless of whether
implemented by contract or force account. The PPMO will provide overall supervision to MLGUs
within its respective jurisdiction with the full involvement of the communities.
324. Monitoring and Evaluation. Monitoring and evaluation of sub-components
implementation will be the main responsibility of the M and E unit at all levels.
170
Appendix 1
325. ADB at any time will send supervision mission to selected sites to monitor and evaluate
the progress and status of the implementation and management of the Project. The findings of
the mission will be embodied in an aide memoire and will be submitted to the NPSC copies of
which will be furnished all concerned stakeholders and Project implementors.
326. NPCO will be responsible for the overall coordination and will actively participate in the
conduct of all ADB supervision missions. DENR RO and PPMO will likewise participate in said
missions.
327. Completed Sub-Component Turn-Over. All completed rural infrastructure sub-
components will be turned over to the MLGU represented by the Municipal Mayor. However,
there will be instances where completed facilities like communal irrigation schemes and post
harvest facilities will be placed under a Memorandum of Agreement (MOA) with the farmers’
association or people’s organizations (FA or PO) for appropriate operation and maintenance to
ensure that responsibility is clearly delineated for sustainability.
328. The NPCO will have the sole responsibility to turn over the completed facilities after the
conduct of final inspection and after it has determined that the sub-component has been
completed to the satisfaction of the Project. Turn-over documents may include but not limited to:
i) Implementation Completion Report (ICR); ii) Pictorials taken before, during and after
construction of specific segments of civil works; iii) Final inspection reports; and iv) As built
plans reflecting actual deviations from the approved documents.
329. Sub-Component Operation and Maintenance Arrangement. Basically, each type of
completed facility will require a specific unit or organization to operate and maintain the
completed facility. This will be dependent on who will be the direct or end users or beneficiaries
of the facility. The type of infrastructure facilities to be provided by INREMP can be appropriately
operated and maintained either by the municipal LGU or People’s Organizations.
B. Basic Geometric and Design Specifications (Rural Infrastructure)
RURAL ACCESS
Sub-Component Type Basic Geometrical and Design Specifications
Barangay/Farm to Market Roads, Tire Tracks, Tramlines, Foot Paths, Connecting Bridges
Standard Gravel Road 4.00m wide carriageway with 1.00m shoulder and trapezoidal drainage ditch on both sides; 15cms
aggregate base course of Item 201 on top of 10cms sub-base course of Item 200 with well graded
gravel surface course (armouring)
Tire Tracks (for road gradients of 12% 2 – 60cms wide x 20cms thick 3,000psi concrete tire tracks on 10cms gravel base course with grass
and above) “creeps” along center gap of 0.90meter and shoulders of 1.00m wide on both sides
Trails and Foot Paths 1.00m wide carriageway with triangular drainage ditch on both sides; 10cms aggregate base course of
Item 201 with no sub-base course; 0.60m x .10m un-reinforced concrete block pavement for steep
slopes of 12% and above
RCDG type (for traffic volume of 20 4.00m. wide (single lane) of 3,000psi concrete pavement on Reinforced Concrete Deck Girder (RCDG)
vehicles per day or more up to 30.00
meters span)
Rock Causeway and Spillways 4.00m wide concrete paved carriageway on piled boulders with provision of reinforced concrete pipe
(where appropriate in lieu of bridge) culverts (RCPC) with sufficient number and diameter; 15cms concrete upstream and downstream
aprons with energy dissipators and cut-of walls of sufficient design depths with temperature bars
Tramlines 0.90m x 1.20m carriage of ga. #16 HRS checkered plate with 18mm diameter Schedule 40 G.I. pipe
frame and twin rollers on 20mm diameter cable wires with 12mm diameter cable tag lines and gas
driven engine prime mover
Hanging foot bridges 1.20m wide walkway with 50mm x 150mm floor planks or ga. #16 HRS checkered steel mats on 25mm
diameter cable suspensions and concrete abutments
SMALL SCALE COMMUNAL IRRIGATION SCHEMES and POST HARVEST FACILITIES

Category and Sub-Component Type Geometrical and Design Specifications
Communal Irrigation Schemes
171
Appendix 1
Diversion or Intake Type for CIS (for Diversion Works:

areas of 25 has and above with  Run-of-river type adopting ogee or trapezoidal sections and check gate or teruvian intake
streams or creeks of sufficient and schemes as deemed appropriate by NIA design engineers.
dependable flow adopting NIA
specifications) Main Canal, laterals and sub-laterals:
 Trapezoidal section with slide slopes (SS) of 1½:1 for most earth canals and 1:1 or 0:1
(rectangular) for lined canals
 Earth canals shall have a permissible velocity of not less than 0.30 m/sec. and not more than
1.00 m/sec.
 Canal freeboard shall be a minimum of 0.30m or 40% of designed water depth
 Canal top berm width shall be 0.40m
e: canal concrete lining shall not be allowed unless highly justified thru actual measurement of losses
to seepage or other valid reasons.
Structures:
 Water level and distribution control devices as needed
 Thresher Crossing – one (1) unit for every 500m in the absence of road crossings along main
canals, laterals and sub-laterals
 Road and Drainage Crossings as dictated by actual canal alignment and terrain
Drip or Sprinkler Irrigation (in upland  Spring intake box shall be of 3,000psi concrete mixed with water proofing compound
areas for high value crops with spring  Polyethylene (PE) pipe main line of 25-50mm diameter provided with 60-100mesh or 250 –
sources of sufficient head over 5micron filters at the intake side
irrigable area)  Lateral and sub-lateral PE pipes of 12-20mm diameter with 1mm orifice emitters
 May be used in combination with transferable sprinklers on poles attached to lateral PE pipes in
lieu of orifice emitters
 Post Harvest Facilities
Warehouses, Trading Centers and  All floors (including solar driers) shall be 10cms. thick of 3,000 psi concrete provided with gravel
Solar Driers base and temperature bars of 10mm diameter spaced at 40 cms. on center both ways
 All walls shall be of 10cms. thk. concrete hollow blocks
 Roofing shall be of ga. #26 corrugated G.I. sheets while gutters shall be of ga. #24 plain G.I.
sheets
 Warehouses shall have a floor area of 50 sq m, trading centers 500sqm and solar drier 100 sq m
POTABLE WATER SUPPLY

Sub-Component Type Basic Geometrical and Design Specifications
Level I Jetmatic Pumps (Point  Located at least 25m. from any potential sources of pollution
Source)  Farthest user is not more than 250m. from point source
 Designed to deliver at least 20 liters per capita per day (lpcd)
 To serve an average of 15 households per unit
 Adopt 100mm diameter of steel casing with 50mm diameter of G.I. intake pipe with suction rod,
100mm diameter of low carbon steel screen and 10mm diameter gravel packing materials; all G.I.
pipes shall have a minimum strength equivalent to schedule 40
Level II Spring Development (note:  Farthest house shall not be more than 25m. from the nearest communal faucet
design provisions for Level III to be  Designed to deliver at least 50 liters per capita per day
incorporated if LGU or community  Communal faucet to serve an average of 10 households
decides to upgrade in the future)  Spring box shall be made of 3000 psi reinforced concrete mixed with water proofing compound
 Ground distribution reservoir shall be located on high ground and made of 3000 psi reinforced
concrete mixed with water proofing compound
 Main pipeline shall be a combination of 50 – 100mm diameter G.I., UPVC and polyethylene (P.E.)
pipe of sufficient strength
 Intermediate distribution lines shall be of ½” – ¾” diameter of P.E. pipe
 All pipes shall be rated for use of water at 23 oC and at a minimum working pressure of 1.10Mpa
or as dictated by actual hydrostatic head
 All pipes shall be embedded at a minimum of 50cms. below natural ground
 Communal faucets shall be of heavy duty brass type provided with concrete apron and tub of
appropriate size and design
172
Appendix 1
C. General Operation and Maintenance (O&M) Arrangement
Type of Sub-
O and M Responsibility Strategy and Support Mechanism
project
Rural Access The Municipal and Barangay  PPMO and Municipal LGU to assist in organizing, training and operationalization of
(roads, bridges, LGU and community thru the community O and M Committee
spillways, establishment of an O and M  Municipal LGU to provide regular annual routine
footpaths) Committee (OMC) maintenance fund
 Maintenance fund to be augmented thru the imposition of road users' fee if feasible
 OMC to formulate an annual maintenance program
 Municipal LGU to involve community thru commissioning of "pakyaw" groups to
undertake maintenance adopting the "length man" system
 Periodic maintenance to make use of the "Bayanihan System"
Potable Water The Community thru the  PPMO and Municipal LGU to organize, train and operationalize the BAWASA
Supply establishment of a Barangay  DILG to assist in organizing the BAWASA
Waterworks and Sanitation  BAWASA to develop systems and procedures for levying water charges to cover
Association (BAWASA) maintenance and operating cost
 Local Water Districts to provide technical assistance to BAWASA through a MOA with
the LGU
Post-Harvest The identified proponent  Community PO to undertake regular maintenance of facilities through its members
Facilities community PO  Community PO to develop systems and procedures for collecting users fee if facility is
including income generating to cover maintenance and operating cost
Tramlines
Communal The Farmers thru the  Municipal LGU through a MOA with and under the technical guidance of NIA to
Irrigation establishment of Irrigators’ organize, train and operationalize the IA
Schemes Association (IA)  Municipal LGU with technical assistance from NIA to develop O and M manual to
include the policies, systems and procedures to be adopted by the IA in collecting
irrigation service fees (ISF) from members for operation and maintenance use
Provincial The Provincial Government  Provincial LGU to develop systems and procedures for collecting users’ fee
Trading  Provincial LGU to include regular O and M budget in its annual provincial expenditures
Center
173
Appendix 2
APPENDIX 2. DETAILED COST TABLES (PER SUBCOMPONENT)
($ 1 = P 41.635)
(P 1= US$ 0.24)
174
Table 1. River basin and w atershed management plan O
De taile d Cos ts Quantitie s Unit Cos t Unit Cos t Bas e Cos t ($ '000)
Unit 2013 2014 2015 2016 2017 2018 2019 Total (P '000) ($ '000) 2013 2014 2015 2016 2017 Fin. Rule
(100%) Exclusive
I. Inve s tm e nt Cos ts of Taxes
A. As s e s s m e nt of Curr e nt Land Us e s
1. Assessment & Mapping of Current Land Uses /a ha 57 171 455 455 - - - 1,138 62.45 1.500 85.5 256.5 682.5 682.5 - A DB ( 100% )
2. Data Acquis ition /b
Aerial Photography /c sheet - 40 44 - - - - 84 208.18 5.000 - 200.0 220.0 - - A DB ( 100% )
Satellite Imagery -1:50,000 /d scenes - 29 - - - - - 29 582.89 14.000 - 406.0 - - - A DB ( 100% )
Satellite Imagery -1:10,000 /e scenes - 22 22 - - - - 44 208.18 5.000 - 110.0 110.0 - - A DB ( 100% )
Subtotal Data Acquis ition - 716.0 330.0 - -
Subtotal As s e s s m e nt of Cur r e nt Land Us e s 85.5 972.5 1,012.5 682.5 -
B. Land Us e Capability As s e s s m e nt & Rive r Bas in Zoning
1. Land Us e Capability As s e s s m e nt & URB Zoning
Satellite Image Analysis /f Scenes - 20 30 25 - - - 75 204.01 4.900 - 98.0 147.0 122.5 - A DB (100% )
Compilation, V alidation, Modelling & Mapping /g Sheet - 32 60 70 - - - 162 83.27 2.000 - 64.0 120.0 140.0 - A DB (100% )
Subtotal Land Us e Capability As s e s s m e nt & URB Zoning - 162.0 267.0 262.5 -
2. Carbon Baseline Assessment & Changes Monitoring /h ha - 140 140 - 140 140 - 560 19.98 0.480 - 67.2 67.2 - 67.2 GEF ( 100% )
3. Boundary Demarcation /i km - - 326 610 978 1,305 - 3,219 14.57 0.350 - - 114.1 213.5 342.3 A DB ( 100% )
Subtotal Land Us e Capability As s e s s m e nt & Rive r Bas in Zoning - 229.2 448.3 476.0 409.5
C. Par ticipator y M anage m e nt Planning /j
1. Participatory Management Planning ha - 212 272 121 - - - 605 72.86 1.750 - 371.0 476.0 211.8 - A DB ( 100% )
2. Participatory Management Planning_IFA D ha 51 186 240 56 - - - 533 72.86 1.750 89.3 325.5 420.0 98.0 - IFA D ( 100% )
3. Participatory Management Planning_ GEF (Ancestral Domains in Chico) /k no - 1 1 1 - - - 3 2,539.74 61.000 - 61.0 61.0 61.0 - GEF ( 100% )
Subtotal Participator y M anage m e nt Planning 89.3 757.5 957.0 370.8 -
D. GIS Data Bas e Ins tallation
1. URB GDSS central operations center /l no. - 1 - - - - - 1 1,020.06 24.500 - 24.5 - - - A DB ( 100% )
2. CO URB GDSS Operating Expenses /m /yr - 1 1 1 1 1 1 6 74.94 1.800 - 1.8 1.8 1.8 1.8 A DB ( 100% )
3. URB GDSS node s /n
URB_GDSS Nodes no. - 8 8 8 - - - 24 853.52 20.500 - 164.0 164.0 164.0 - A DB ( 100% )
URB GDSS Nodes_IFAD no. - 6 - - - - - 6 853.52 20.500 - 123.0 - - - IFA D ( 100% )
Subtotal URB GDSS node s - 287.0 164.0 164.0 -
4. Nodal URB GDSS Operating Expenses /o /yr - 7 22 30 30 30 30 149 32.06 0.770 - 5.4 16.9 23.1 23.1 A DB ( 100% )
Subtotal GIS Data Bas e Ins tallation - 318.7 182.7 188.9 24.9
E. Wate r s he d M anage m e nt, Biodive rs ity Cons e r vation and Cor r idor P
1. Cons ultants
Biodiversity Specialist - Int'l Consultant /q Person-Month 1 2 - - - - - 3 839.36 20.160 20.2 40.3 - - - GEF (100% )
Biodiversity Specialist - National /r Person-Month 3 7 4 2 - - - 16 139.89 3.360 10.1 23.5 13.4 6.7 - GEF (100% )
Watershed Management Specialist- Int'l /s Person-Month 2 3.5 - - - - - 5.5 839.36 20.160 40.3 70.6 - - - GEF (100% )
Watershed Management Specialist /t Person-Month 3 12 8 3 - - - 26 139.89 3.360 10.1 40.3 26.9 10.1 - GEF (100% )
Carbon Stock Assessment Specialist /u Person-Month 3 6 3 - - - - 12 839.36 20.160 60.5 121.0 60.5 - - GEF (100% )
Planning and Regulatory Specialist /v Person-Month 3 5 4 - - - - 12 139.89 3.360 10.1 16.8 13.4 - - GEF (100% )
Market Specialist /w Person-Month 3 12 12 3 - - - 30 186.52 4.480 13.4 53.8 53.8 13.4 - GEF (100% )
Legal and Institutional Specialist /x Person-Month 3 3 3 3 3 - - 15 186.52 4.480 13.4 13.4 13.4 13.4 13.4 GEF (100% )
Subtotal Cons ultants 178.1 379.7 181.4 43.7 13.4
2. Suppor t- Wate r s he d M anage m e nt Planning /y
International A ir Travel Trip 1 2 - - - - - 3 249.81 6.000 6.0 12.0 - - - GEF (100% )
Domestic Air Travel Trip 2 6 6 - - - - 14 8.33 0.200 0.4 1.2 1.2 - - GEF (100% )
Domestic Ground Travel Trip 2 12 12 2 2 2 - 32 8.33 0.200 0.4 2.4 2.4 0.4 0.4 GEF (100% )
Per Diem - Consultants & Staf f Trip 2 12 12 2 2 2 - 32 24.98 0.600 1.2 7.2 7.2 1.2 1.2 GEF (100% )
Per Diem - International Consultants Mon 3 5.5 - - - - - 8.5 167.87 4.032 12.1 22.2 - - - GEF (100% )
Subtotal Suppor t- Wate r s he d M anage m e nt Planning 20.1 45.0 10.8 1.6 1.6
3. Biodiversity Inventory, Habitat Mapping, Corridor Planning & GIS Database ha 10 35 40 - - - - 85 97.22 2.335 23.4 81.7 93.4 - - GEF (100% )
4. Market Studies A nd Feasibility Analyses Lump Sum - 0.25 0.25 0.25 0.25 - - 1 6,245.25 150.000 - 37.5 37.5 37.5 37.5 GEF (100% )
Subtotal Wate r s he d M anage m e nt, Biodive r s ity Cons e r vation and Cor 221.5 543.9 323.1 82.8 52.5
Total 396.3 2,821.8 2,923.7 1,800.9 486.9
_________________________________
\a Includes ground control survey, IFSAR - DEM f or Minadanao, digital conversion of contour maps and map updating (including biological resources)
\b Purchase of satellite images; conduct aerial photography
\c For high-resolution satellite; f or Luzon & Bohol coverage
\d 1:50,000 scale
\e 1:10,000 scale f or use in management planning
\f SPOT Image Analysis
\g GIS Compilation & A nalysis, Land Use Modelling, Ground Validaton and Mapping
\h Development & Implementation of carbon stock & CO2 emissions baseline assessments & monitoring of changes
\i Delineation - f orest and non f orest areas and physical demarcation on the ground
\j With the participation of stakeholders; including assistance f or ADSDPP f ormulation enhancement
\k GEF support to community-based planning w ithin ancestral domain lands (3)
\l Central Of f ice Set of : GIS Work Station, laptops, GPS receivers, A 3 Scanner/Printer
\m Operations center URB GDSS annual supplies
\n 30 nodes: Set of GIS w ork stations, laptops, GPS receivers, mobile GIS, A3 Scanner/printer
\o URB GDSS node (30) annual supplies
\p Biodiversity Assessment & Mapping; Corridor planning in Chico RIver Basin (GEF Funded)
\q A ssessment of Biodiversity Assets/Mapping
\r Assessment of Biodiversity Assets/Mapping - National
\s Biodiversity Corridor Planning & Zoning - Planning/Reg. Specialist_ Int'l
\t Biodiversity Corridor Planning & Zoning - Planning/Reg. Specialist (Local)
\u Bukidnon & Chico RBs - Climate Change-LULUCF - Carbon Stock Assessment Specialist (Int'l)
\v Prod. Landscapes:Protection Regulatory Framew ork - Planning/Reg. Specialist
\w PES - Chico RB: PES Specialist f or market surveys/implementation
\x With Contract Experience: PES Legal/Institutional Specialist
\y Travel Fare and Expenses f or BD & PES
\z GEF land use planning
Appendix 2
175
Appendix 2
Table 2. Conservation, rehabilitation, and protection of URB State forests Unit Unit Oth
Detailed Costs Quantities Cost (P Cost ($ Base Cost ($ '000)
Unit 2013 2014 2015 2016 2017 2018 2019 Total '000) '000) 2013 2014 2015 2016 2017 2018 2019 Total Fin. Rule
(100%) Exclusive
I. Investment Costs of Taxes
A. Community-based protection and monitoring /a
Chico River Basin ha - 9,600 27,000 70,014 105,022 116,691 135,931 464,258 0.29 0.007 - 67.27 189.19 490.59 735.89 817.65 952.47 3,253.06 ADB ( 100% )
Wahig-Inabanga ha - 696 2,328 3,659 6,652 7,100 7,548 27,983 0.29 0.007 - 4.88 16.31 25.64 46.61 49.75 52.89 196.08 ADB ( 100% )
Upper Bukidnon ha - 4,444 12,858 39,716 59,574 66,193 75,121 257,906 0.29 0.007 - 31.14 90.10 278.29 417.44 463.81 526.37 1,807.15 IFAD ( 100% )
Lake Lanao ha - 747 1,797 7,187 10,781 11,942 12,983 45,437 0.29 0.007 - 5.23 12.59 50.36 75.54 83.68 90.97 318.38 CCF ( 100% )
Subtotal Community-based protection and monitoring - 108.52 308.19 844.88 1,275.48 1,414.90 1,622.70 5,574.66
B. Afforestation and Reforestation (Establishment & 3 years maintenance) /b
Chico River Basin /c ha - - 1,400 2,750 950 1,300 1,200 7,600 23.34 0.561 - - 784.84 1,541.65 532.57 728.78 672.72 4,260.56 ADB ( 100% )
Wahig-Inabanga River Basin ha - 80 145 246.25 120 111.25 97.5 800 23.34 0.561 - 44.85 81.29 138.05 67.27 62.37 54.66 448.48 ADB ( 100% )
Upper Bukidnon River Basin ha - 600 1,350 1,650 900 900 600 6,000 23.34 0.561 - 336.36 756.81 924.99 504.54 504.54 336.36 3,363.60 IFAD ( 100% )
Lake Lanao ha - - 75 343.75 100 118.75 162.5 800 23.34 0.561 - - 42.05 192.71 56.06 66.57 91.10 448.48 ADB ( 100% )
Subtotal Afforestation and Reforestation (Establishment & 3 years maintenance) - 381.21 1,664.98 2,797.39 1,160.44 1,362.26 1,154.84 8,521.12
C. Assisted natural regeneration (ANR) - Support for 4 years /d
Chico River Basin /e ha - 5,808 9,834 18,816 7,920 6,336 4,086 52,800 15.08 0.362 - 2,103.08 3,560.89 6,813.27 2,867.83 2,294.27 1,479.54 19,118.88 ADB ( 100% )
Wahig-Inabanga ha - 198 450 558 270 216 108 1,800 15.08 0.362 - 71.70 162.95 202.05 97.77 78.21 39.11 651.78 ADB ( 100% )
Upper Bukidnon ha - 2,432.1 4,427.5 7,654.1 3,316.5 2,653.2 1,626.6 22,110 15.08 0.362 - 880.66 1,603.20 2,771.55 1,200.90 960.72 588.99 8,006.03 ADB ( 100% )
Lake Lanao ha - 110 382 819 315 285 189 2,100 15.08 0.362 - 39.83 138.32 296.56 114.06 103.20 68.44 760.41 ADB ( 100% )
Total - 3,584.99 7,438.53 13,725.70 6,716.48 6,213.55 4,953.61 42,632.88
_________________________________
\a Through voluntary undertaking & commitment of participating communities/POs/IPOs; involves monitoring, forest patrols & protection against intrusion & unauthorized land conversion w ithin conservation areas; no labor payments but "block grants" to
POs/IPOs
\b Areas for afforestation and reforestation w ill be conserved & protected after 4 years of support.
\c Phase: 1st yr - 50%, 2nd & 3rd yr @ 12.5%; 4th yr - 25%
\d Target areas are degraded natural forest and brushland, soil depth >0.5 m. Areas covered for assisted natural regeneration w ill be conserved and protected after 4 years of ANR activities.
\e Phase: 1st yr 55%, next 3 yrs @ 15%
176
Table 3. Sustainable forest management, agroforestry and commercial forest plantation w ith community participation Unit Unit O
Detailed Costs Quantities Cost (P Cost ($ Base Cost ($ '000)
Unit 2013 2014 2015 2016 2017 2018 2019 Total '000) '000) 2013 2014 2015 2016 2017 2018 2019 Total Fin. Rule
(100%) Exclusive of
I. Investment Costs Taxes
(<100%>FT) Inclusive
A. Sustainable Forest Management /a of Taxes
Chico River Basin ha - 650 1,300 1,300 650 - - 3,900 1.08 0.026 - 16.9 33.7 33.7 16.9 - - 101.2 CCF ( 100% )
Wahig-Inabanga ha - 65 130 130 65 - - 390 1.08 0.026 - 1.7 3.4 3.4 1.7 - - 10.1 CCF ( 100% )
Upper Bukidnon ha - 325 650 650 325 - - 1,950 1.08 0.026 - 8.4 16.9 16.9 8.4 - - 50.6 CCF ( 100% )
Lake Lanao ha - 750 1,500 1,500 750 - - 4,500 1.08 0.026 - 19.5 38.9 38.9 19.5 - - 116.8 CCF ( 100% )
Subtotal Sustainable Forest Management - 46.5 92.9 92.9 46.5 - - 278.7
B. Agro-forestry with community participation /b
1. Agro-forestry- establishment and 3 years maintenance: ADB Share /c
Chico River Basin - Agroforestry (establishment & 3 yrs maintenance) ha - 105 381.5 1,046.5 420 413 364 2,730 28.20 0.677 - 71.1 258.4 708.9 284.5 279.8 246.6 1,849.3 ADB ( 100% )
Wahig-Inabanga - Agroforestry ha - 105 241.5 304.5 168 147 84 1,050 28.20 0.677 - 71.1 163.6 206.3 113.8 99.6 56.9 711.3 ADB ( 100% )
Upper Bukidnon - Agroforestry ha - 875 2,012.5 3,990 1,835.75 1,660.75 1,281 11,655 28.20 0.677 - 592.7 1,363.3 2,702.8 1,243.5 1,125.0 867.7 7,895.1 ADB ( 100% )
Lake Lanao - Agroforestry ha - 168 260.4 575.4 268.8 222.6 184.8 1,680 28.20 0.677 - 113.8 176.4 389.8 182.1 150.8 125.2 1,138.0 ADB ( 100% )
Subtotal Agro-forestry- establishment and 3 years maintenance: ADB Share - 848.8 1,961.7 4,007.8 1,823.9 1,655.1 1,296.4 11,593.7
2. Agro-forestry -establishment & 3 years maintenance: Beneficiary Contribution /d
Chico River Basin - Agroforestry ha - 45 163.5 448.5 180 177 156 1,170 28.20 0.677 - 30.5 110.8 303.8 121.9 119.9 105.7 792.6 BEN ( < 100% >, FT )
Wahig-Inabanga - Agroforestry ha - 45 103.5 130.5 72 63 36 450 28.20 0.677 - 30.5 70.1 88.4 48.8 42.7 24.4 304.8 BEN ( < 100% >, FT )
Upper Bukidnon - Agroforestry ha - 375 862.5 1,710 786.75 711.75 549 4,995 28.20 0.677 - 254.0 584.3 1,158.4 532.9 482.1 371.9 3,383.6 BEN ( < 100% >, FT )
Lake Lanao - Agroforestry ha - 72 111.6 246.6 115.2 95.4 79.2 720 28.20 0.677 - 48.8 75.6 167.0 78.0 64.6 53.7 487.7 BEN ( < 100% >, FT )
Subtotal Agro-forestry -establishment & 3 years maintenance: Beneficiary Contribution - 363.8 840.7 1,717.6 781.7 709.3 555.6 4,968.7
Subtotal Agro-forestry with community participation - 1,212.5 2,802.4 5,725.4 2,605.6 2,364.5 1,852.0 16,562.4
C. Commercial forest plantation with community participation /e
1. Commercial forest plantation_ Establishment & 3 years maintenance: ADB Share /f
Chico River Basin: CPF-CP ha - 279.5 642.35 809.9 446.9 390.95 223.4 2,793 26.26 0.631 - 176.3 405.1 510.8 281.9 246.6 140.9 1,761.5 ADB ( 100% )
Wahig-Inabanga - CPF-CP ha - 5 11.5 14.5 8 7 4 50 26.26 0.631 - 3.2 7.3 9.1 5.0 4.4 2.5 31.5 ADB ( 100% )
Upper Bukidnon - CFP-CP ha - 52.5 138.25 416.5 166.95 158.2 145.6 1,078 26.26 0.631 - 33.1 87.2 262.7 105.3 99.8 91.8 679.9 ADB ( 100% )
Lake Lanao - CFP-CP ha - 17.5 54.25 75.95 38.5 36.4 22.4 245 26.26 0.631 - 11.0 34.2 47.9 24.3 23.0 14.1 154.5 ADB ( 100% )
Subtotal Commercial forest plantation_ Establishment & 3 years maintenance: ADB Share - 223.6 533.8 830.5 416.5 373.7 249.4 2,627.5
2. Commercial forest plantation _Establishment & 3 years maintenance: Beneficiary share /g
Chico River Basin - CPF-CP ha - 119.5 275.35 347.2 191.5 167.65 95.8 1,197 26.26 0.631 - 75.4 173.7 219.0 120.8 105.7 60.4 754.9 BEN ( <100% >, FT )
Wahig-Inabanga - CPF-CP ha - 2.5 4.25 5.8 3.25 2.6 1.6 20 26.26 0.631 - 1.6 2.7 3.7 2.0 1.6 1.0 12.6 BEN ( <100% >, FT )
Upper Bukidnon - CFP-CP ha - 22.5 59.25 178.5 71.55 67.8 62.4 462 26.26 0.631 - 14.2 37.4 112.6 45.1 42.8 39.4 291.4 BEN ( <100% >, FT )
Lake Lanao - CFP-CP ha - 7.5 23.25 32.55 16.5 15.6 9.6 105 26.26 0.631 - 4.7 14.7 20.5 10.4 9.8 6.1 66.2 BEN ( <100% >, FT )
Subtotal Commercial forest plantation _Establishment & 3 years maintenance: Beneficiary share - 95.9 228.4 355.7 178.4 160.0 106.8 1,125.2
Total - 1,578.4 3,657.5 7,004.6 3,246.9 2,898.2 2,208.2 20,593.8
_________________________________
\a SFM: includes Preharvest planning, supervision & w orkers' training. Demo areas w ill be managed/covered for 2 years., w ith unit cost of P1,000/ha for 1 year
\b Agro-foresty projects are cost-shared w ith the beneficiary-communities (shoulder equivalent to 30% of the project area/cost)
\c Phase: 1st yr - 50%, 2 & 3 yrs @ 15%, 4 yr - 20%
\d Beneficiary share - equivalent to 30% of agro-foresty project area
\e Phase- 1 yr 50%, 2 & 3 yrs @ 15%. 4 yr - 20%
\f Project (ADB) Share - 70%
\g Beneficiary share: Commercial forest plantation (30% of project area/cost)
Appendix 2
177
Appendix 2
Table 4. Rehabilitation and improvement of rural inf rastructure
Unit 2013 2014 2015 2016 2017 2018 2019 Total (P'000) ($ '000) 2013 2014 2015 2016 2017 2018 2019 Total Fin. Rule
(100%) Exclusive of
I. Inve s tm e nt Cos ts Taxes
(<100%>FT) Inclusive of
A. Rural Infras tructure Taxes
1. Chico rural infras tructure /b
Rural access km - 13.2 23.2 25.8 34.8 53.8 25.2 176 1,750.60 42.046 - 555.0 975.5 1,084.8 1,463.2 2,262.1 1,059.6 7,400.1 ADB ( 100% )
Small-scale irrigation improvement ha - 48.6 102.6 214.2 303 322 129.6 1,120 97.26 2.336 - 113.5 239.7 500.3 707.8 752.2 302.7 2,616.2 ADB ( 100% )
Potable w ater supply (level II) no. - 6 16 26 36 16 - 100 972.55 23.359 - 140.2 373.7 607.3 840.9 373.7 - 2,335.9 ADB ( 100% )
Provincial trading center /c center - - 0.6 0.4 - - - 1 3,890.21 93.436 - - 56.1 37.4 - - - 93.4 ADB ( 100% )
Subtotal Chico rural infras tructure - 808.7 1,644.9 2,229.9 3,011.9 3,388.0 1,362.3 12,445.7
2. Wahig-Inabanga rural infras tructure /d
Rural access km - 4.2 10.6 13.6 23.6 12 - 64 1,750.60 42.046 - 176.6 445.7 571.8 992.3 504.6 - 2,691.0 ADB ( 100% )
Small-scale irrigation improvement ha - 16.2 37.8 50.4 66 29.6 - 200 97.26 2.336 - 37.8 88.3 117.7 154.2 69.1 - 467.2 ADB ( 100% )
Potable w ater supply (level II) no. - 1.8 3.6 7 3.6 - - 16 972.55 23.359 - 42.0 84.1 163.5 84.1 - - 373.7 ADB ( 100% )
Subtotal Wahig-Inabanga rural infras tructure - 256.5 618.1 853.1 1,230.6 573.7 - 3,531.9
3. Uppe r Buk idnon rural infras tructure /e
Rural access km - 4.8 15.2 22.4 26.4 11.2 - 80 1,750.60 42.046 - 201.8 639.1 941.8 1,110.0 470.9 - 3,363.7 IFAD ( 100% )
Foot trail km - 40.8 27.2 - - - - 68 70.03 1.682 - 68.6 45.7 - - - - 114.4 IFAD ( 100% )
Small-scale irrigation improvement ha - 19.2 41 62 77.4 32.4 - 232 97.26 2.336 - 44.8 95.8 144.8 180.8 75.7 - 541.9 IFAD ( 100% )
Potable w ater supply (level II) no. - 4.8 8 8 3.2 - - 24 972.55 23.359 - 112.1 186.9 186.9 74.7 - - 560.6 IFAD ( 100% )
Subtotal Uppe r Buk idnon rural infras tructure - 427.4 967.5 1,273.5 1,365.6 546.6 - 4,580.6
4. Lak e Lanao rural infras tructure
Rural access km - 4.2 13.6 31.2 53.8 25.2 - 128 1,750.60 42.046 - 176.6 571.8 1,311.8 2,262.1 1,059.6 - 5,381.9 ADB ( 100% )
Small-scale irrigation improvement ha - 27 72 154.8 218.4 281.8 126 880 97.26 2.336 - 63.1 168.2 361.6 510.2 658.3 294.3 2,055.6 ADB ( 100% )
Potable w ater supply (level II) no. - 3 6.8 11.6 20.6 26.8 11.2 80 972.55 23.359 - 70.1 158.8 271.0 481.2 626.0 261.6 1,868.7 ADB ( 100% )
Subtotal Lak e Lanao rural infras tructure - 309.7 898.9 1,944.4 3,253.4 2,343.8 555.9 9,306.2
5. Other Inf rastructures LS - - 0.6 1 1 0.4 - 3 3,501.19 84.093 - - 50.5 84.1 84.1 33.6 - 252.3 ADB ( 100% )
6. Pe rform ance Bas e d Grants
ADB_ Perf ormance Based Grants LS - - 0.6 1 1 1 0.4 4 28,836.40 692.600 - - 415.6 692.6 692.6 692.6 277.0 2,770.4 ADB ( 100% )
IFAD Perf ormance Based Grants LS - - 0.6 0.4 - - - 1 29,769.03 715.000 - - 429.0 286.0 - - - 715.0 IFAD ( 100% )
Subtotal Pe rform ance Bas e d Grants - - 844.6 978.6 692.6 692.6 277.0 3,485.4
Subtotal Rural Infras tructure - 1,802.3 5,024.4 7,363.6 9,638.2 7,578.4 2,195.3 33,602.1
B. Rural Infras tructure _LGU Counte rpart
1. Chico rural infras tructure /f
Rural access km - 3 5.6 6.6 8.8 13.6 6.4 44 1,750.60 42.046 - 126.1 235.5 277.5 370.0 571.8 269.1 1,850.0 LGUS ( < 100% >, FT )
Small-scale irrigation improvement ha - 12 25.4 53.6 76 80.6 32.4 280 97.26 2.336 - 28.0 59.3 125.2 177.5 188.3 75.7 654.1 LGUS ( < 100% >, FT )
Potable w ater supply (level II) no. - 1.2 3.8 6.8 9.2 4 - 25 972.55 23.359 - 28.0 88.8 158.8 214.9 93.4 - 584.0 LGUS ( < 100% >, FT )
Provincial trading center /g center - - 0.6 0.4 - - - 1 972.55 23.359 - - 14.0 9.3 - - - 23.4 LGUS ( < 100% >, FT )
Subtotal Chico rural infras tructure - 182.2 397.6 570.9 762.4 853.5 344.8 3,111.4
2. Wahig-Inabanga rural infras tructure /h
Rural access km - 1.2 2.6 3.6 5.8 2.8 - 16 1,750.60 42.046 - 50.5 109.3 151.4 243.9 117.7 - 672.7 LGUS ( < 100% >, FT )
Small-scale irrigation improvement ha - 3.6 9 12.8 17 7.6 - 50 97.26 2.336 - 8.4 21.0 29.9 39.7 17.8 - 116.8 LGUS ( < 100% >, FT )
Potable w ater supply (level II) no. - 0.6 1 1.6 0.8 - - 4 972.55 23.359 - 14.0 23.4 37.4 18.7 - - 93.4 LGUS ( < 100% >, FT )
Subtotal Wahig-Inabanga rural infras tructure - 72.9 153.7 218.6 302.3 135.5 - 883.0
3. Uppe r Buk idnon rural infras tructure /i
Rural access km - 1.2 3.8 5.6 6.6 2.8 - 20 1,750.60 42.046 - 50.5 159.8 235.5 277.5 117.7 - 840.9 LGUS ( < 100% >, FT )
Foot trail km - 10.2 6.8 - - - - 17 72.94 1.752 - 17.9 11.9 - - - - 29.8 LGUS ( < 100% >, FT )
Small-scale irrigation improvement ha - 4.8 10.4 15.6 19.2 8 - 58 97.26 2.336 - 11.2 24.3 36.4 44.8 18.7 - 135.5 LGUS ( < 100% >, FT )
Potable w ater supply (level II) no. - 1.2 2 2 0.8 - - 6 972.55 23.359 - 28.0 46.7 46.7 18.7 - - 140.2 LGUS ( < 100% >, FT )
Subtotal Uppe r Buk idnon rural infras tructure - 107.6 242.7 318.6 341.0 136.4 - 1,146.3
4. Lak e Lanao rural infras tructure
Rural access km - 1.2 3.8 8 13 6 - 32 1,750.60 42.046 - 50.5 159.8 336.4 546.6 252.3 - 1,345.5 LGUS ( < 100% >, FT )
Small-scale irrigation improvement ha - 6 17.8 39.2 54.8 70.6 31.6 220 97.26 2.336 - 14.0 41.6 91.6 128.0 164.9 73.8 513.9 LGUS ( < 100% >, FT )
Potable w ater supply (level II) no. - 0.6 1.6 3.2 5.2 6.6 2.8 20 972.55 23.359 - 14.0 37.4 74.7 121.5 154.2 65.4 467.2 LGUS ( < 100% >, FT )
Subtotal Lak e Lanao rural infras tructure - 78.5 238.7 502.7 796.1 571.4 139.2 2,326.6
5. Other Inf rastructures LS - - - - 0.6 1.6 2.6 4.8 392.43 9.425 - - - - 5.7 15.1 24.5 45.2 LGUS ( < 100% >, FT )
Total Inve s tm e nt Cos ts - 2,243.5 6,057.1 8,974.4 11,845.7 9,290.3 2,703.8 41,114.7
II. Re curre nt Cos ts
A. Rural Infras tructure O&M
Rural roads routine /j km - - - - 55 94 132 281 58.35 1.402 - - - - 77.1 131.7 185.0 393.8 LGUS ( < 100% >, FT )
Small-Scale irrigation improvement ha - - - - 229 374 755 1,358 0.97 0.023 - - - - 5.4 8.8 17.7 31.8 BEN ( < 100% >, FT )
Potable w ater supply no. - - - - 32 50 77 159 48.63 1.168 - - - - 37.4 58.4 89.9 185.7 BEN ( < 100% >, FT )
Trading center center - - - - - 1 1 2 121.57 2.920 - - - - - 2.9 2.9 5.8 LGUS ( < 100% >, FT )
Total - 2,243.5 6,057.1 8,974.4 11,965.5 9,492.1 2,999.3 41,731.8
_________________________________
\a Rehabilitation and improvement of rural inf rastructure to support investments in production areas
\b Through DA f or areas w ithin CHARM project ($10 Million)
\c For Mtn Province w here the existing trading center of La Trinidad, Benguet is too distant.
\d Wahig-Inabanga river basin
\e Upper Bukidnon river basin
\f Chico w atershed
\g For Mt Province w here the existing trading center of La Trinidad, Benguet is too distant.
\h Wahig-Inabanga river basin
\i Upper Bukidnon river basin
\j LGU responsibility
178
Table 5. Livelihood Enhancement thru conservation f arming Unit Unit
De tailed Cos ts Quantitie s Cos t Cos t Bas e Cos t ($ '000)
Unit 2013 2014 2015 2016 2017 2018 2019 Total (P '000) ($ '000) 2013 2014 2015 2016 2017 2018 2019 Total Fin. Rule
I. Inve s tm e nt Cos ts (100%) Exclusive

A. Chico of Taxes
1. Hands -on Training cum practicum
Natural Vegetative Strips - meals /a batch - 13 13 13 13 13 - 65 4.90 0.118 - 1.5 1.5 1.5 1.5 1.5 - 7.7 ADB ( 100% )
Natural Vegetative Strips - materials (seeds, seedlings, organic f ertilizers, and ruminant) /b ha - 390 390 390 390 390 - 1,950 16.34 0.392 - 153.0 153.0 153.0 153.0 153.0 - 765.2 ADB ( 100% )
Bio-Intensive Gardening/Organic Vegetable Farming - Meals batch - 13 13 13 13 13 - 65 4.90 0.118 - 1.5 1.5 1.5 1.5 1.5 - 7.7 ADB ( 100% )
Bio-Intensive Gardening/Organic Vegetable Farming - materials/inputs (seeds, organic f ertilizers, insect repellant) /c batch - 13 13 13 13 13 - 65 10.89 0.262 - 3.4 3.4 3.4 3.4 3.4 - 17.0 ADB ( 100% )
Bio-Intensive Gardening/Organic Vegetable Farming - Installation of Green House /d pc - 26 26 26 26 26 - 130 87.14 2.093 - 54.4 54.4 54.4 54.4 54.4 - 272.1 ADB ( 100% )
Masipag Rice Technology - meals /e batch - 3 3 3 3 3 3 18 4.90 0.118 - 0.4 0.4 0.4 0.4 0.4 0.4 2.1 ADB ( 100% )
Masipag Rice Technology - materials/inputs (seeds, organic f ertilizers, insect repellant) /f batch - 3 3 3 3 3 3 18 5.61 0.135 - 0.4 0.4 0.4 0.4 0.4 0.4 2.4 ADB ( 100% )
Agro-f orestry (intercropped w ith cash crops) - meals /g batch - 13 13 13 13 13 - 65 4.90 0.118 - 1.5 1.5 1.5 1.5 1.5 - 7.7 ADB ( 100% )
Agro-f orestry (intercropped w ith cash crops) - materials/inputs (seeds, organic f ertilizers, insect repellant) ha - 65 65 65 65 65 - 325 32.68 0.785 - 51.0 51.0 51.0 51.0 51.0 - 255.1 ADB ( 100% )
Community nursery establishment module - 13 13 13 13 13 - 65 16.34 0.392 - 5.1 5.1 5.1 5.1 5.1 - 25.5 ADB ( 100% )
Subtotal Hands -on Training cum practicum - 272.3 272.3 272.3 272.3 272.3 0.8 1,362.4
2. Training on com pos t m aking & ve rm i-culture
Meals batch - 26 26 26 26 26 - 130 4.90 0.118 - 3.1 3.1 3.1 3.1 3.1 - 15.3 ADB ( 100% )
Materials/ Inputs (w orms, shading materials) batch - 26 26 26 26 26 - 130 5.45 0.131 - 3.4 3.4 3.4 3.4 3.4 - 17.0 ADB ( 100% )
Subtotal Training on com pos t m ak ing & ve rm i-culture - 6.5 6.5 6.5 6.5 6.5 - 32.3
3. Provision of Inputs f or technology replication/upscaling
f or deserving vulnerable f arming households /h group - - 26 26 26 26 26 130 48.63 1.168 - - 30.4 30.4 30.4 30.4 30.4 151.8 ADB ( 100% )
Subtotal Chico - 278.8 309.2 309.2 309.2 309.2 31.1 1,546.5
B. Wahig-Inabanga
Natural Vegetative Strips - meals batch - 5 5 5 5 5 - 25 4.90 0.118 - 0.6 0.6 0.6 0.6 0.6 - 2.9 ADB ( 100% )
Natural Vegetative Strips - materials (seeds, seedlings, organic f ertilizers, and ruminant) ha - 150 150 150 150 150 - 750 16.34 0.392 - 58.9 58.9 58.9 58.9 58.9 - 294.3 ADB ( 100% )
Bio-Intensive Gardening/Organic Vegetable Farming - materials/inputs (seeds, organic f ertilizers, insect repellant) batch - 5 5 5 5 5 - 25 10.89 0.262 - 1.3 1.3 1.3 1.3 1.3 - 6.5 ADB ( 100% )
Bio-Intensive Gardening/Organic Vegetable Farming - Installation of Green House pc - 10 10 10 10 10 - 50 87.14 2.093 - 20.9 20.9 20.9 20.9 20.9 - 104.7 ADB ( 100% )
Masipag Rice Technology - meals batch - 1 1 1 1 1 1 6 4.90 0.118 - 0.1 0.1 0.1 0.1 0.1 0.1 0.7 ADB ( 100% )
Masipag Rice Technology - materials/inputs (seeds, organic f ertilizers, insect repellant) batch - 1 1 1 1 1 1 6 5.61 0.135 - 0.1 0.1 0.1 0.1 0.1 0.1 0.8 ADB ( 100% )
Agro-f orestry (intercropped w ith cash crops) - meals batch - 5 5 5 5 5 - 25 4.90 0.118 - 0.6 0.6 0.6 0.6 0.6 - 2.9 ADB ( 100% )
Subtotal Hands -on Training cum practicum - 104.7 104.7 104.7 104.7 104.7 0.3 523.8
Meals batch - 10 10 10 10 10 - 50 4.90 0.118 - 1.2 1.2 1.2 1.2 1.2 - 5.9 ADB ( 100% )
f or deserving vulneable f arming households group - - 10 10 10 10 10 50 48.63 1.168 - - 11.7 11.7 11.7 11.7 11.7 58.4 ADB ( 100% )
Subtotal Wahig-Inabanga - 107.2 118.9 118.9 118.9 118.9 11.9 594.6
C. Uppe r Buk idnon
Natural Vegetative Strips - meals batch - 56 56 56 56 56 - 280 4.90 0.118 - 6.6 6.6 6.6 6.6 6.6 - 33.0 IFAD ( 100% )
Natural Vegetative Strips - materials (seeds, seedlings, organic f ertilizers, and ruminant) ha - 1,680 1,680 1,680 1,680 1,680 - 8,400 16.34 0.392 - 659.2 659.2 659.2 659.2 659.2 - 3,296.2 IFAD ( 100% )
Bio-Intensive Gardening/Organic Vegetable Farming - Meals batch - 56 56 56 56 56 - 280 4.90 0.118 - 6.6 6.6 6.6 6.6 6.6 - 33.0 IFAD ( 100% )
Bio-Intensive Gardening/Organic Vegetable Farming - materials/inputs (seeds, organic f ertilizers, insect repellant) batch - 56 56 56 56 56 - 280 10.89 0.262 - 14.6 14.6 14.6 14.6 14.6 - 73.2 IFAD ( 100% )
Bio-Intensive Gardening/Organic Vegetable Farming - Installation of Green House pc - 111 111 111 111 111 - 555 87.14 2.093 - 232.3 232.3 232.3 232.3 232.3 - 1,161.6 IFAD ( 100% )
Masipag Rice Technology - meals batch - 13 13 13 13 13 13 78 4.90 0.118 - 1.5 1.5 1.5 1.5 1.5 1.5 9.2 IFAD ( 100% )
Masipag Rice Technology - materials/inputs (seeds, organic f ertilizers, insect repellant) batch - 13 13 13 13 13 13 78 5.61 0.135 - 1.8 1.8 1.8 1.8 1.8 1.8 10.5 IFAD ( 100% )
Agro-f orestry (intercropped w ith cash crops) - meals batch - 56 56 56 56 56 - 280 4.90 0.118 - 6.6 6.6 6.6 6.6 6.6 - 33.0 IFAD ( 100% )
Agro-f orestry (intercropped w ith cash crops) - materials/inputs (seeds, organic f ertilizers, insect repellant) ha - 280 280 280 280 280 - 1,400 32.68 0.785 - 219.8 219.8 219.8 219.8 219.8 - 1,098.9 IFAD ( 100% )
Community nursery establishment module - 56 56 56 56 56 - 280 16.34 0.392 - 22.0 22.0 22.0 22.0 22.0 - 109.9 IFAD ( 100% )
Subtotal Hands -on Training cum practicum - 1,171.0 1,171.0 1,171.0 1,171.0 1,171.0 3.3 5,858.3
Meals batch - 111 111 111 111 111 - 555 4.90 0.118 - 13.1 13.1 13.1 13.1 13.1 - 65.3 IFAD ( 100% )
Materials/ Inputs (w orms, shading materials) batch - 111 111 111 111 111 - 555 5.45 0.131 - 14.5 14.5 14.5 14.5 14.5 - 72.6 IFAD ( 100% )
f or deserving vulneable f arming households group - - 111 111 111 111 111 555 48.63 1.168 - - 129.6 129.6 129.6 129.6 129.6 648.2 IFAD ( 100% )
Subtotal Uppe r Buk idnon - 1,198.6 1,328.2 1,328.2 1,328.2 1,328.2 132.9 6,644.5
D. Lak e Lanao
Natural Vegetative Strips - meals batch - 8 8 8 8 8 - 40 4.90 0.118 - 0.9 0.9 0.9 0.9 0.9 - 4.7 ADB ( 100% )
Natural Vegetative Strips - materials (seeds, seedlings, organic f ertilizers, and ruminant) ha - 240 240 240 240 240 - 1,200 16.34 0.392 - 94.2 94.2 94.2 94.2 94.2 - 470.9 ADB ( 100% )
Bio-Intensive Gardening/Organic Vegetable Farming - materials/inputs (seeds, organic f ertilizers, insect repellant) batch - 8 8 8 8 8 - 40 10.89 0.262 - 2.1 2.1 2.1 2.1 2.1 - 10.5 ADB ( 100% )
Bio-Intensive Gardening/Organic Vegetable Farming - Installation of Green House pc - 16 16 16 16 16 - 80 87.14 2.093 - 33.5 33.5 33.5 33.5 33.5 - 167.4 ADB ( 100% )
Masipag Rice Technology - meals batch - 2 2 2 2 2 2 12 4.90 0.118 - 0.2 0.2 0.2 0.2 0.2 0.2 1.4 ADB ( 100% )
Masipag Rice Technology - materials/inputs (seeds, organic f ertilizers, insect repellant) batch - 2 2 2 2 2 2 12 5.61 0.135 - 0.3 0.3 0.3 0.3 0.3 0.3 1.6 ADB ( 100% )
Agro-f orestry (intercropped w ith cash crops) - meals batch - 8 8 8 8 8 - 40 4.90 0.118 - 0.9 0.9 0.9 0.9 0.9 - 4.7 ADB ( 100% )
Subtotal Hands -on Training cum practicum - 167.6 167.6 167.6 167.6 167.6 0.5 838.6
Meals batch - 16 16 16 16 16 - 80 4.90 0.118 - 1.9 1.9 1.9 1.9 1.9 - 9.4 ADB ( 100% )
f or deserving vulneable f arming households group - - 16 16 16 16 16 80 48.63 1.168 - - 18.7 18.7 18.7 18.7 18.7 93.4 ADB ( 100% )
Total - 1,756.2 1,946.5 1,946.5 1,946.5 1,946.5 195.2 9,737.5
_________________________________
\a Conduct 1 batch/course per barangay (Max:30 person per batch)
\b P 15,000/ha f or materials such as seed, seedling, organic f ertilizers and ruminant
\c Materials/inputs such as seeds, organic f ertilizers, inset repellant @ P10,000 per batch
\d Demonstration f arms shall serve as f armers' f ield school
\e Trials shall be done w ithin CIS service area. - irrigated agriculture; average - 25 ha per barangay
\f Materials/inputs - seeds, organic f ertilizers, insect repellant
\g Agro-f orestry w ith 70:30 ratio (70% f ruit trees and 30% perennial trees); at least 5 ha per barangay
\h P50,000 per Self help Group/Org per barangay
Appendix 2
179
Appendix 2
Table 6. Invesment in Watershed Management /a
Detailed Costs Quantities Unit Cost Unit Cost Base Cost ($ '000)
(100%) Exclusive
I. Investment Costs /b of Taxes
Nurseries for Mossy Forest- Indigenous Spp /c unit - 1 1 1 - - - 3 241.48 5.800 - 5.8 5.8 5.8 - - - 17.4 GEF ( 100% )
Assisted Natural Regeneration /d ha - 12 20 20 8 - - 60 14.57 0.350 - 4.2 7.0 7.0 2.8 - - 21.0 GEF ( 100% )
Buffers w ith Mixed Vegetation Cover /e ha - 12 20 20 8 - - 60 14.57 0.350 - 4.2 7.0 7.0 2.8 - - 21.0 GEF ( 100% )
IPO - Revolving Fund Establishment (Seed Capital) /f IPO - 1 2.5 3 1.5 - - 8 832.70 20.000 - 20.0 50.0 60.0 30.0 - - 160.0 GEF ( 100% )
Pilot demonstration activities for emissions reduction /g no - 0.5 0.8 1 0.5 0.2 - 3 4,194.31 100.740 - 50.4 80.6 100.7 50.4 20.1 - 302.2 GEF ( 100% )
Bioenergy Plantation In Bukidnon /h ha - 54 132 166 68 - - 420 29.19 0.701 - 37.9 92.5 116.4 47.7 - - 294.4 CCF ( 100% )
Study on establishment of Charcoal Retort w ith the private sector /i unit - - 0.5 0.3 0.2 - - 1 4,163.50 100.000 - - 50.0 30.0 20.0 - - 100.0 CCF ( 100% )
Total - 122.4 292.9 326.9 153.6 20.1 - 916.0
_________________________________
\a GEF & CCF Investments in Watershed Management
\b GEF Investment in w atershed management
\c Nursery - for Mossy Forest Species
\d ANR in Chico RB
\e Creating Buffers -Biodiversity
\f Indigenous People's Groups for PES: to be released through Block Grants
\g Climate Change (1) -GEF funded (Phase of implementation - 50%, 30%, 20%)
\h Identification & demarcation & establishment of biomass enegy plantations - Bukidnon
\i Feasibility study on Government's participation in pilot charcoal retort investment w ith the Private Sector, in Bukidnon or Misamis Or. (completion - 50%, 30%, 20%)%
180
Table 7. Preparatory Orientation and Works hops Unit O
De taile d Cos ts Quantitie s Unit Cos t Cos t ($ Bas e Cos t ($ '000)
Unit 2013 2014 2015 2016 2017 2018 2019 Total (P '000) '000) 2013 2014 2015 2016 2017 2018 2019 Total Fin. Rule
I. Inve s tm e nt Cos ts (100%) Ex c lus iv e

A. Ins titutional & policy s uppor t: national /a of Taxes
1. Or ie ntation /b
Central of f ic e venue/materials LS 1 1 1 - - - - 3 9.81 0.236 0.2 0.2 0.2 - - - - 0.7 A DB ( 100% )
Central of f ic e trainers /f ac ilitators LS 1 1 1 - - - - 3 27.23 0.654 0.7 0.7 0.7 - - - - 2.0 A DB ( 100% )
Region 10 venue/materials /c LS 1 1 1 - - - - 3 22.87 0.549 0.5 0.5 0.5 - - - - 1.6 IFA D ( 100% )
Region 10 trainers/f acilitators LS 1 1 1 - - - - 3 65.35 1.570 1.6 1.6 1.6 - - - - 4.7 IFA D ( 100% )
Region 10 trav el/acc ommodation /d LS 1 1 1 - - - - 3 65.35 1.570 1.6 1.6 1.6 - - - - 4.7 IFA D ( 100% )
Region 7 v enue/materials /e LS 1 1 - - - - - 2 11.44 0.275 0.3 0.3 - - - - - 0.5 A DB ( 100% )
Region 7 trainers /f ac ilitators LS 1 1 - - - - - 2 54.46 1.308 1.3 1.3 - - - - - 2.6 A DB ( 100% )
Region 7 travel/ac commodation LS 1 1 - - - - - 2 35.40 0.850 0.9 0.9 - - - - - 1.7 A DB ( 100% )
CA R (Chico) venue/materials LS 1 1 1 - - - - 3 15.25 0.366 0.4 0.4 0.4 - - - - 1.1 A DB ( 100% )
CA R (Chico) trainers/f ac ilitators LS 1 1 1 - - - - 3 54.46 1.308 1.3 1.3 1.3 - - - - 3.9 A DB ( 100% )
CA R trav el/acc ommodation LS 1 1 1 - - - - 3 43.57 1.047 1.0 1.0 1.0 - - - - 3.1 A DB ( 100% )
Subtotal Or ie ntation 9.7 9.7 7.3 - - - - 26.8
2. Tr aine r s tr aining on phas e d im ple m e ntation. /f
V enue/materials LS 1 2 2 - 2 - - 7 32.68 0.785 0.8 1.6 1.6 - 1.6 - - 5.5 A DB ( 100% )
Travel/ac c ommodation /g LS 1 2 2 - 2 - - 7 163.39 3.924 3.9 7.8 7.8 - 7.8 - - 27.5 A DB ( 100% )
Trainers /f ac ilitators LS 1 2 2 - 2 - - 7 108.93 2.616 2.6 5.2 5.2 - 5.2 - - 18.3 A DB ( 100% )
Subtotal Tr aine r s tr aining on phas e d im ple m e ntation. 7.3 14.7 14.7 - 14.7 - - 51.3
3. Le gis lative age nda and policy adjus tm e nt /h
V enue/materials LS - 6 6 - 6 6 - 24 54.46 1.308 - 7.8 7.8 - 7.8 7.8 - 31.4 A DB ( 100% )
Travel/ac c ommodation /i LS - 6 6 - 6 6 - 24 163.39 3.924 - 23.5 23.5 - 23.5 23.5 - 94.2 A DB ( 100% )
Trainers /f ac ilitators LS - 6 6 - 6 6 - 24 185.18 4.448 - 26.7 26.7 - 26.7 26.7 - 106.7 A DB ( 100% )
Subtotal Le gis lative age nda and policy adjus tm e nt - 58.1 58.1 - 58.1 58.1 - 232.3
Subtotal Ins titutional & policy s uppor t: national 17.1 82.5 80.0 - 72.7 58.1 - 310.4
B. Ins titutional & policy s uppor t: local /j
1. Or ie ntation on INREM /k
V enue/materials Prov inc e 4 9 2 - 2 - - 17 14.10 0.339 1.4 3.0 0.7 - 0.7 - - 5.8 A DB ( 100% )
Travel/ac c ommodation /l Prov inc e 4 9 2 - 2 - - 17 10.89 0.262 1.0 2.4 0.5 - 0.5 - - 4.4 A DB ( 100% )
Trainers /f ac ilitators Prov inc e 4 9 2 - 2 - - 17 54.46 1.308 5.2 11.8 2.6 - 2.6 - - 22.2 A DB ( 100% )
Subtotal Or ie ntation on INREM 7.6 17.2 3.8 - 3.8 - - 32.4
2. Cons e ns us building&dis pute r e s olution /m
V enue/materials Prov inc e - 4 5 - 5 - - 14 32.68 0.785 - 3.1 3.9 - 3.9 - - 11.0 A DB ( 100% )
Travel/ac c ommodation Prov inc e - 4 5 - 5 - - 14 32.68 0.785 - 3.1 3.9 - 3.9 - - 11.0 A DB ( 100% )
Trainers /f ac ilitators Prov inc e - 4 5 - 5 - - 14 326.78 7.849 - 31.4 39.2 - 39.2 - - 109.9 A DB ( 100% )
Subtotal Cons e ns us building&dis pute r e s olution - 37.7 47.1 - 47.1 - - 131.9
3. Enfor ce m e nt pr ogr am & local le gis lation /n
V enue/materials Prov inc e - 4 5 - 5 4 - 18 32.68 0.785 - 3.1 3.9 - 3.9 3.1 - 14.1 A DB ( 100% )
Travel/ac c ommodation Prov inc e - 4 5 - 5 4 - 18 32.68 0.785 - 3.1 3.9 - 3.9 3.1 - 14.1 A DB ( 100% )
Trainers /f ac ilitators Prov inc e - 4 5 - 5 4 - 18 326.78 7.849 - 31.4 39.2 - 39.2 31.4 - 141.3 A DB ( 100% )
Subtotal Enfor ce m e nt pr ogr am & local le gis lation - 37.7 47.1 - 47.1 37.7 - 169.5
4. LGU e nte r pr is e m anage m e nt /o
V enue/materials Prov inc e - 4 5 - 5 - - 14 32.68 0.785 - 3.1 3.9 - 3.9 - - 11.0 IFA D ( 100% )
Travel/ac c ommodation Prov inc e - 4 5 - 5 - - 14 32.68 0.785 - 3.1 3.9 - 3.9 - - 11.0 IFA D ( 100% )
Trainers /f ac ilitators Prov inc e - 4 5 - 5 - - 14 326.78 7.849 - 31.4 39.2 - 39.2 - - 109.9 IFA D ( 100% )
Subtotal LGU e nte r pr is e m anage m e nt - 37.7 47.1 - 47.1 - - 131.9
Subtotal Ins titutional & policy s uppor t: local 7.6 130.2 145.1 - 145.1 37.7 - 465.7
C. Pr e par ation for LUA & URB M anage m e nt Planning /p
1. Use of GIS f or ENR A , M&E /q no. 3 8 8 4 - - - 23 265.02 6.365 19.1 50.9 50.9 25.5 - - - 146.4 A DB ( 100% )
2. Land use planning f or LGUs /r no. 3 8 8 4 - - - 23 250.43 6.015 18.0 48.1 48.1 24.1 - - - 138.3 A DB ( 100% )
3. Community mapping and land use z oning /s no. 3 8 8 4 - - - 23 393.88 9.460 28.4 75.7 75.7 37.8 - - - 217.6 A DB ( 100% )
4. A s sis tanc e f or IP planning /t no. 3 8 8 4 - - - 23 393.88 9.460 28.4 75.7 75.7 37.8 - - - 217.6 IFA D ( 100% )
5. A s sis tanc e f or social ass es sment /u no. 3 8 8 4 - - - 23 393.88 9.460 28.4 75.7 75.7 37.8 - - - 217.6 A DB ( 100% )
Subtotal Pr e par ation for LUA & URB M anage m e nt Planning 122.3 326.1 326.1 163.0 - - - 937.5
D. As s is tance in pr oje ct financial m anagm e nt and pr ocur e m e nt
1. Pr oje ct dis bur s e m e nt and pr ocur e m e nt
DENR national and regional /v batc h 1 1 - - - - - 2 277.76 6.671 6.7 6.7 - - - - - 13.3 A DB ( 100% )
LGU level w orks hops /w batc h - 4 5 - 5 - - 14 326.78 7.849 - 31.4 39.2 - 39.2 - - 109.9 A DB ( 100% )
Subtotal Pr oje ct dis bur s e m e nt and pr ocur e m e nt 6.7 38.1 39.2 - 39.2 - - 123.2
2. Pr oje ct planning and budge ting m anage m e nt
DENR national and regional /x batc h 1 1 - - - - - 2 204.24 4.905 4.9 4.9 - - - - - 9.8 A DB ( 100% )
LGU level w orks hops /y batc h - 8 10 7 - - - 25 326.78 7.849 - 62.8 78.5 54.9 - - - 196.2 A DB ( 100% )
Subtotal Pr oje ct planning and budge ting m anage m e nt 4.9 67.7 78.5 54.9 - - - 206.0
3. Pr oje ct m id-te r m w or k s hop /z
DENR national and regional /aa batc h - - - 2 - - - 2 47.06 1.130 - - - 2.3 - - - 2.3 A DB ( 100% )
LGU level w orks hops /bb batc h - - - 4 4 4 2 14 88.23 2.119 - - - 8.5 8.5 8.5 4.2 29.7 A DB ( 100% )
Subtotal Pr oje ct m id-te r m w or k s hop - - - 10.7 8.5 8.5 4.2 31.9
Subtotal As s is tance in pr oje ct financial m anagm e nt and pr ocur e m e nt 11.6 105.8 117.7 65.7 47.7 8.5 4.2 361.2
E. Te chnical e xte ns ion and IEC /cc
1. National le ve l
Site-s pecif ic studies and applic ations no. - 2 2 2 2 2 - 10 54.46 1.308 - 2.6 2.6 2.6 2.6 2.6 - 13.1 A DB ( 100% )
Workshops no. - 2 2 2 2 2 - 10 269.05 6.462 - 12.9 12.9 12.9 12.9 12.9 - 64.6 A DB ( 100% )
Materials no. - 2 2 2 2 2 - 10 16.80 0.404 - 0.8 0.8 0.8 0.8 0.8 - 4.0 A DB ( 100% )
Subtotal National le ve l - 16.3 16.3 16.3 16.3 16.3 - 81.7
2. Chico Rive r Bas in
Workshops no. - 2 2 2 2 2 - 10 269.05 6.462 - 12.9 12.9 12.9 12.9 12.9 - 64.6 A DB ( 100% )
Materials no. - 2 2 2 2 2 - 10 16.80 0.404 - 0.8 0.8 0.8 0.8 0.8 - 4.0 A DB ( 100% )
Subtotal Chico Rive r Bas in - 16.3 16.3 16.3 16.3 16.3 - 81.7
3. Wahig-Inabanga Rive r Bas in
Workshops no. - 2 2 2 2 2 - 10 269.05 6.462 - 12.9 12.9 12.9 12.9 12.9 - 64.6 A DB ( 100% )
Materials no. - 2 2 2 2 2 - 10 16.80 0.404 - 0.8 0.8 0.8 0.8 0.8 - 4.0 A DB ( 100% )
Subtotal Wahig-Inabanga Rive r Bas in - 16.3 16.3 16.3 16.3 16.3 - 81.7
4. Uppe r Buk idnon Rive r Bas in /dd
Site-s pecif ic studies and applic ations no. - 2 2 2 2 2 - 10 54.46 1.308 - 2.6 2.6 2.6 2.6 2.6 - 13.1 IFA D ( 100% )
Workshops no. - 2 2 2 2 2 - 10 269.05 6.462 - 12.9 12.9 12.9 12.9 12.9 - 64.6 IFA D ( 100% )
Materials no. - 2 2 2 2 2 - 10 16.80 0.404 - 0.8 0.8 0.8 0.8 0.8 - 4.0 IFA D ( 100% )
Subtotal Uppe r Buk idnon Rive r Bas in - 16.3 16.3 16.3 16.3 16.3 - 81.7
5. Lak e Lanao Rive r Bas in
Workshops no. - 2 2 2 2 2 - 10 269.05 6.462 - 12.9 12.9 12.9 12.9 12.9 - 64.6 A DB ( 100% )
Materials no. - 2 2 2 2 2 - 10 16.80 0.404 - 0.8 0.8 0.8 0.8 0.8 - 4.0 A DB ( 100% )
Subtotal Lak e Lanao Rive r Bas in - 16.3 16.3 16.3 16.3 16.3 - 81.7
Subtotal Te chnical e xte ns ion and IEC - 81.7 81.7 81.7 81.7 81.7 - 408.7
F. REDD Capac ity Building LS 2 6 - 4 4 - - 16 366.47 8.802 17.6 52.8 - 35.2 35.2 - - 140.8 CCF ( 100% )
G. Capacity Building in Wate r s he d M anage m e nt /e e
A w arenes s raising /Inf o Campaigns /f f LS 2 2 2 2 2 - - 10 84.10 2.020 4.0 4.0 4.0 4.0 4.0 - - 20.2 GEF ( 100% )
Technic al Training on A NR/ Enric hment Planting /gg Module 3 3 3 3 3 3 - 18 139.89 3.360 10.1 10.1 10.1 10.1 10.1 10.1 - 60.5 GEF ( 100% )
PES Training /hh Module 3 3 3 - - - - 9 139.89 3.360 10.1 10.1 10.1 - - - - 30.2 GEF ( 100% )
PES Inf o/Training Materials LS 2 2 2 - - - - 6 93.26 2.240 4.5 4.5 4.5 - - - - 13.4 GEF ( 100% )
IPO Rev olv ing Fund - Training Materials/Starter Kit /ii LS 3 2 3 - - - - 8 93.26 2.240 6.7 4.5 6.7 - - - - 17.9 GEF ( 100% )
Financial Mgnt Training f or IPOs -Rev olv ing Fund /jj Module 3 3 3 3 3 3 - 18 139.89 3.360 10.1 10.1 10.1 10.1 10.1 10.1 - 60.5 GEF ( 100% )
GIS Training f or Participatoy Planning/Monitoring -GIS Specialis t /kk p-mon 3 6 6 6 6 6 - 33 139.89 3.360 10.1 20.2 20.2 20.2 20.2 20.2 - 110.9 GEF ( 100% )
Training of Tainers /Community Bas ed Inf o Sharing p-mon 2 1 1 1 - - - 5 139.89 3.360 6.7 3.4 3.4 3.4 - - - 16.8 GEF ( 100% )
Training V enue & Meals Batc h 2 2 2 1 1 1 - 9 139.89 3.360 6.7 6.7 6.7 3.4 3.4 3.4 - 30.2 GEF ( 100% )
Domes tic A ir Fare Trip 3 4 4 3 2 2 - 18 10.73 0.258 0.8 1.0 1.0 0.8 0.5 0.5 - 4.6 GEF ( 100% )
Domes tic ground trav el trip 3 4 4 3 2 2 - 18 10.73 0.258 0.8 1.0 1.0 0.8 0.5 0.5 - 4.6 GEF ( 100% )
Per Diem of Consultants trip 3 4 4 3 2 2 - 18 27.98 0.672 2.0 2.7 2.7 2.0 1.3 1.3 - 12.1 GEF ( 100% )
LULUCF Capac iy Building A ctivities /ll Module 2 4 4 3 - - - 13 233.16 5.600 11.2 22.4 22.4 16.8 - - - 72.8 CCF ( 100% )
Subtotal Capacity Building in Wate r s he d M anage m e nt 83.8 100.6 102.9 71.4 50.1 46.1 - 454.8
Total 259.9 879.7 853.5 417.1 432.6 232.0 4.2 3,079.1
_________________________________
\a Institutional and policy s upport: national/regional lev els
\b f or central and regions, DENR
\c f or Bukidnon and Lanao del Sur
\d f or out-of -tow n trainees
\e f or Bohol
\f Trainers training on phas ed implementation of INREM
\g f or out-of -tow n trainees
\h f or DENR/DA an local c ounterparts
\i f or out-of -tow n trainees
\j Ins titutional and polic y support: national and loc al levels -> prov ince-based
\k Provincial venues, f or LGUs and stakeholders ; 20 participants per province; 1-day orientation
\l f or out-of -tow n trainees
\m Cons ens us building and alternative dis pute res olution: DENR/DA , LGUs , s takeholders ; 50 trainees per prov inc e; 3-day training
\n Enf orc ement program and loc al legis lation f or law enf orcement s upport: LGUs ; 50 trainees per provinc e, 3-day training
\o Loc al government enterpris e management: LGUs (peer-to-peer); 50 trainees per province; 3-day training/visit
\p Land us e as ses sment and upper river bas in management planning
\q I: Bas ic and advanc ed GIS and applications to env ironment and natural res ourc es ass ess ment, monitoring, and evaluation; f or eac h of 23 w atersheds, 15-30 repres entatives, 5 day w orks hop
\r II: Land use planning f or LGUs held f or each of 23 w aters heds ; 15-30 participants per w aters hed, 5 day w orks hops
\s III: Community mapping and land us e zoning (w atershed level) f or LGUs held f or each of 23 w aters heds ; 15-30 representativ es per w atershed, 5 day training
\t A ss is tanc e f or IPs in planning and INREM integration, held f or eac h of 23 w atersheds; 15-30 repres entatives per w aters hed, 5 day w orks hop
\u For each of 23 w aters heds ; 15-30 representativ es per w atershed, 5 day w orkshop
\v DENR national and regional staf f , 34 pax in 1 batc h, basis P1,500/pax /day s tay-in, 5 days
\w Provincial and munic ipal staf f , 40 pax in 1 batc h, bas is P1,500/pax/day stay-in, 5 day s
\x DENR national and regional staf f , 25 pax /batch in 2 batches , basis P1,500/pax /day s tay -in, 5 days / f or project planning and f ormulating annual program of w ork
\y Prov inc ial and municipal s taf f , 40 pax/batc h in 25 batc hes, basis P1,500/pax /day s tay-in, 5 days / f or projec t planning and f ormulating annual program of w ork
\z Taking stoc k of project implementation progress : problems and propos ed s olutions and changes -- prior to midterm evaluation rev iew
\aa DENR national and regional s taf f , 48 pax/batc h in 1 batc h, bas is P900/pax/day, 1 day-only (not s tay-in) / f or taking s tock and propos ing improv ements /changes
\bb Provincial and munic ipal staf f , 90 pax /batch in 14 batches , bas is P900/pax /day , 1 day -only (not stay-in) / f or taking stock and proposing improvements /c hanges
\cc Presentation/rev iew of s ite s pec if ic technic al s tudies f or dis semination at the local level
\dd IFA D f unded
\ee GEF- Funded Capacity Building on Watershed Management
\f f For PES
Appendix 2
\gg For Biodiversity
\hh For Chic o & other URBs
\ii Training Materials
\jj Training Course
\kk GIS Consultant
\ll CC - LULUCF - Sus tainable energy produc tion
181
Appendix 2
Table 8. Technical Studies/Extension & Support Services O
I. Investment Costs (100%) Exclusive of

A. Development and implementation of TE/IEC Taxes
1. Development of Technical Extension & IEC Materials /a LS 0.5 1.5 1 - - - - 3 3,122.63 75.000 37.5 112.5 75.0 - - - - 225.0 ADB ( 100% )
2. Support to Technical Extension implementation /b
Operational Support to Technical Extension Implementation year - - 4 4 4 4 4 20 899.32 21.600 - - 86.4 86.4 86.4 86.4 86.4 432.0 ADB ( 100% )
Support Staff: Technical Extension Implementation p-mon 72 144 144 144 144 144 144 936 17.49 0.420 30.2 60.5 60.5 60.5 60.5 60.5 60.5 393.1 IFAD ( 100% )
Subtotal Support to Technical Extension implementation 30.2 60.5 146.9 146.9 146.9 146.9 146.9 825.1
3. Support to implementation of IEC program /c Year - 1 1 1 1 1 - 5 1,228.23 29.500 - 29.5 29.5 29.5 29.5 29.5 - 147.5 IFAD ( 100% )
4. Social Preparation & marketing of the Project to Stakeholders /d LS 1 2 2 1 - - - 6 1,249.05 30.000 30.0 60.0 60.0 30.0 - - - 180.0 IFAD ( 100% )
Subtotal Development and implementation of TE/IEC 97.7 262.5 311.4 206.4 176.4 176.4 146.9 1,377.6
B. Government Management Support
1. Regional offices /e
4-w heel double cab pickup, regions /f no. - 4 - - - - - 4 1,062.94 25.530 - 102.1 - - - - - 102.1 ADB ( 100% )
4-w heel double cab pickup, Region X no. - 1 - - - - - 1 1,062.94 25.530 - 25.5 - - - - - 25.5 IFAD ( 100% )
Subtotal Regional offices - 127.7 - - - - - 127.7
2. Provincial offices (LGU & DENR) /g
Computer/printer - provinces /h no. - 9 12 - - - - 21 106.17 2.550 - 23.0 30.6 - - - - 53.6 ADB ( 100% )
Computer/printer - provinces (IFAD) no. - 6 - - - - - 6 106.17 2.550 - 15.3 - - - - - 15.3 IFAD ( 100% )
Internet access, annual /i /yr - 7 7 7 7 7 7 42 24.98 0.600 - 4.2 4.2 4.2 4.2 4.2 4.2 25.2 ADB ( 100% )
Internet access, annual (IFAD) /j /yr - 2 2 2 2 2 2 12 24.98 0.600 - 1.2 1.2 1.2 1.2 1.2 1.2 7.2 IFAD ( 100% )
Subtotal Provincial offices (LGU & DENR) - 43.7 36.0 5.4 5.4 5.4 5.4 101.3
3. Municipal offices (LGUs and DENR)
Motorcycle, Municipal Offices /k no. - 60 88 100 - - - 248 97.43 2.340 - 140.4 205.9 234.0 - - - 580.3 ADB ( 100% )
Motorcycle, Municipal Offices (IFAD) no. - 24 28 32 - - - 84 97.43 2.340 - 56.2 65.5 74.9 - - - 196.6 IFAD ( 100% )
Computer/printer, Municipal Government Units no. - 10 20 29 - - - 59 87.43 2.100 - 21.0 42.0 60.9 - - - 123.9 ADB ( 100% )
Computer/printer, Municipal Government Units (IFAD) no. - 5 5 14 - - - 24 87.43 2.100 - 10.5 10.5 29.4 - - - 50.4 IFAD ( 100% )
Internet access, annual /l Year - 10 30 59 59 59 59 276 20.82 0.500 - 5.0 15.0 29.5 29.5 29.5 29.5 138.0 ADB ( 100% )
Internet access, annual (IFAD) Year - 5 10 24 24 24 24 111 20.82 0.500 - 2.5 5.0 12.0 12.0 12.0 12.0 55.5 IFAD ( 100% )
Subtotal Municipal offices (LGUs and DENR) - 235.6 343.9 440.7 41.5 41.5 41.5 1,144.7
Subtotal Government Management Support - 406.9 379.9 446.1 46.9 46.9 46.9 1,373.6
Total 97.7 669.3 691.3 652.5 223.3 223.3 193.8 2,751.2
_________________________________
\a Identification and development of materials for technical extension.
\b support to local dissemination of technical studies
\c Development and implementation of IEC plan.
\d Introduction of the project and social preparation of local/on site stakeholders, LGUs and IPs
\e DENR: double cab pickups, 1 for each region
\f 1 each for R7 & ARMM; 2 for CAR
\g 9 provinces
\h 3 sets per Province (LGU, PENRO & WMC)
\i (ADB) Operational costs for netw orking w ith the environmental decision support system (DSS), annual connection service
\j (IFAD) Operational costs for netw orking w ith the environmental decision support system (DSS), annual connection service
\k 83 municipalities: (4 per MLGU & CENRO)
\l Operational costs for municipality netw orking w ith the environmental decision support system (DSS), annual connection service
182
Table 9. Project Management /a O
I. Inve s tm e nt Cos ts (100%) Exclusive of

A. Cons ultants Taxes
(<100%>FT) Inclusive of
1. Ce ntral s pe cialis ts input /b Taxes
Lead Consultant, Ntrl Rsrcs & Frstry /c Person-Month 3 10 10 6 6 6 6 47 186.52 4.480 13.4 44.8 44.8 26.9 26.9 26.9 26.9 210.6 ADB ( 100% )
Climate Change and REDD, Intl Person-Month - 2 2 - 2 2 - 8 839.36 20.160 - 40.3 40.3 - 40.3 40.3 - 161.3 CCF ( 100% )
Climate change and REDD, Natl Person-Month - 4 4 - 4 4 - 16 139.89 3.360 - 13.4 13.4 - 13.4 13.4 - 53.8 CCF ( 100% )
Land Use and Land Capability Assessment, Planning and Management Person-Month 3 5 4 - - - - 12 139.89 3.360 10.1 16.8 13.4 - - - - 40.3 ADB ( 100% )
Institutional Assessment and Capacity Building Person-Month 3 9 6 - - - - 18 139.89 3.360 10.1 30.2 20.2 - - - - 60.5 ADB ( 100% )
Geographical Inf ormation Systems & Mapping /d Person-Month 2 2 2 2 - - - 8 139.89 3.360 6.7 6.7 6.7 6.7 - - - 26.9 ADB ( 100% )
Policy, Institutions and Legislation Person-Month 3 8 8 8 6 4 3 40 139.89 3.360 10.1 26.9 26.9 26.9 20.2 13.4 10.1 134.4 ADB ( 100% )
Inf ormation, Education and Communication and Public Participation Person-Month 3 4 4 4 4 - - 19 139.89 3.360 10.1 13.4 13.4 13.4 13.4 - - 63.8 ADB ( 100% )
Strategic Environmental Assessment Person-Month 2 6 6 2 - - - 16 139.89 3.360 6.7 20.2 20.2 6.7 - - - 53.8 ADB ( 100% )
Environmental Saf eguards and Cumulative Environmental Assessment Person-Month 3 4 4 4 4 4 4 27 139.89 3.360 10.1 13.4 13.4 13.4 13.4 13.4 13.4 90.7 ADB ( 100% )
Social Saf eguards (incl. IPs and Resettlement), Poverty and Gender Person-Month 2 8 8 8 4 2 - 32 139.89 3.360 6.7 26.9 26.9 26.9 13.4 6.7 - 107.5 ADB ( 100% )
Financial Management, Procurement and PBGS /e Person-Month 2 6 4 - - - - 12 139.89 3.360 6.7 20.2 13.4 - - - - 40.3 ADB ( 100% )
Rural inf rastructure engineer Person-Month - 4 4 4 4 - - 16 139.89 3.360 - 13.4 13.4 13.4 13.4 - - 53.8 ADB ( 100% )
Rural Inf rastructure Economist Person-Month - 4 4 4 4 - - 16 139.89 3.360 - 13.4 13.4 13.4 13.4 - - 53.8 ADB ( 100% )
Resource Economist Person-Month - 4 4 4 - - - 12 139.89 3.360 - 13.4 13.4 13.4 - - - 40.3 ADB ( 100% )
GIS-based Database development f or Project perf ormance Monitoring and Evaluation Person-Month 3 2 2 - 2 1 - 10 139.89 3.360 10.1 6.7 6.7 - 6.7 3.4 - 33.6 ADB ( 100% )
Training Specialist Person-Month 3 9 6 4 - - - 22 139.89 3.360 10.1 30.2 20.2 13.4 - - - 73.9 ADB ( 100% )
Conservation Farming/Technical Extension /f Person-Month 3 12 12 12 - - - 39 139.89 3.360 10.1 40.3 40.3 40.3 - - - 131.0 ADB ( 100% )
Unallocated Person-Month - 7 9 9 10 9 - 44 139.89 3.360 - 23.5 30.2 30.2 33.6 30.2 - 147.8 ADB ( 100% )
Subtotal Ce ntr al s pe cialis ts input 121.0 414.4 390.9 245.3 208.3 147.8 50.4 1,578.1
2. Rive r bas in-bas e d: Cons ultants
River Basin Based, Ntrl Rsrcs & Frstry /g Person-Month 24 36 36 36 28 20 18 198 139.89 3.360 80.6 121.0 121.0 121.0 94.1 67.2 60.5 665.3 ADB ( 100% )
3. Ce ntral s pe cialis ts s uppor t
International travel /h Trip - 1 1 - 1 1 - 4 255.22 6.130 - 6.1 6.1 - 6.1 6.1 - 24.5 CCF ( 100% )
Domestic air travel -CCF /i trip - 4 4 - 4 4 - 16 9.79 0.235 - 0.9 0.9 - 0.9 0.9 - 3.8 CCF ( 100% )
Domestic ground travel - CCF /j Trip - 4 4 - 4 4 - 16 9.79 0.235 - 0.9 0.9 - 0.9 0.9 - 3.8 CCF ( 100% )
Per diem consultants & staf f -CCF /k Trip - 4 4 - 4 4 - 16 32.89 0.790 - 3.2 3.2 - 3.2 3.2 - 12.6 CCF ( 100% )
Per diem, TL (international) /l Month - 2 2 - 2 2 - 8 171.54 4.120 - 8.2 8.2 - 8.2 8.2 - 33.0 CCF ( 100% )
Domestic air travel /m trip 82 60 56 34 30 24 28 314 9.79 0.235 19.3 14.1 13.2 8.0 7.1 5.6 6.6 73.9 ADB ( 100% )
Domestic ground travel /n Trip 82 60 56 34 30 24 28 314 9.79 0.235 19.3 14.1 13.2 8.0 7.1 5.6 6.6 73.9 ADB ( 100% )
Per diem consultants & staf f /o /trip 82 60 56 34 30 24 28 314 32.89 0.790 64.8 47.4 44.2 26.9 23.7 19.0 22.1 248.1 ADB ( 100% )
CO Operation Cost /p Month 6 12 12 12 12 12 12 78 62.45 1.500 9.0 18.0 18.0 18.0 18.0 18.0 18.0 117.0 ADB ( 100% )
Subtotal Ce ntr al s pe cialis ts s uppor t 112.4 113.0 108.0 60.9 75.2 67.7 53.3 590.4
4. Rive r bas in-bas e d Cons ultants & Staff s uppor t
Domestic air travel /q trip 24 24 24 24 24 24 24 168 9.79 0.235 5.6 5.6 5.6 5.6 5.6 5.6 5.6 39.5 ADB ( 100% )
Domestic ground travel /r Month 24 48 48 48 48 48 48 312 62.45 1.500 36.0 72.0 72.0 72.0 72.0 72.0 72.0 468.0 ADB ( 100% )
Per diem river-basin - Consultants & Staf f /s Month 24 48 48 48 48 48 48 312 52.21 1.254 30.1 60.2 60.2 60.2 60.2 60.2 60.2 391.2 ADB ( 100% )
Operating costs /t Month 24 48 48 48 48 48 48 312 62.45 1.500 36.0 72.0 72.0 72.0 72.0 72.0 72.0 468.0 ADB ( 100% )
Subtotal Rive r bas in-bas e d Cons ultants & Staff s upport 107.7 209.8 209.8 209.8 209.8 209.8 209.8 1,366.8
Subtotal Cons ultants 421.7 858.2 829.7 636.9 587.5 492.5 374.0 4,200.5
B. Proje ct As s is ting Pr ofe s s ionals
1. Pr oje ct As s is ting Profe s s ionals /u
Project Manager (Deputy Project Director) Person-Month 6 12 12 12 12 12 12 78 104.09 2.500 15.0 30.0 30.0 30.0 30.0 30.0 30.0 195.0 IFAD ( 100% )
Social Development Specialist Person-Month 6 12 12 12 12 12 12 78 83.27 2.000 12.0 24.0 24.0 24.0 24.0 24.0 24.0 156.0 IFAD ( 100% )
Development Communications Specialist Person-Month 6 12 12 12 12 12 12 78 83.27 2.000 12.0 24.0 24.0 24.0 24.0 24.0 24.0 156.0 IFAD ( 100% )
Monitoring and Evaluation Specialist Person-Month 6 12 12 12 12 12 12 78 83.27 2.000 12.0 24.0 24.0 24.0 24.0 24.0 24.0 156.0 IFAD ( 100% )
Finance and Procurement Specialist Person-Month 6 12 12 12 12 12 12 78 83.27 2.000 12.0 24.0 24.0 24.0 24.0 24.0 24.0 156.0 IFAD ( 100% )
Investment and Marketing Specialist Person-Month 6 12 12 12 12 12 12 78 83.27 2.000 12.0 24.0 24.0 24.0 24.0 24.0 24.0 156.0 IFAD ( 100% )
GIS Specialist Person-Month 6 12 6 - - - - 24 83.27 2.000 12.0 24.0 12.0 - - - - 48.0 IFAD ( 100% )
Subtotal Proje ct As s is ting Pr ofe s s ionals 87.0 174.0 162.0 150.0 150.0 150.0 150.0 1,023.0
2. Suppor t to PAPS
Domestic air travel /v Trip 30 60 60 60 60 60 60 390 9.79 0.235 7.1 14.1 14.1 14.1 14.1 14.1 14.1 91.7 IFAD ( 100% )
Per diem f or PAPS /w Trip 30 60 60 60 60 60 60 390 8.24 0.198 5.9 11.9 11.9 11.9 11.9 11.9 11.9 77.2 IFAD ( 100% )
Operating expenses Month 6 12 12 12 12 12 12 78 58.29 1.400 8.4 16.8 16.8 16.8 16.8 16.8 16.8 109.2 IFAD ( 100% )
Subtotal Support to PAPS 21.4 42.8 42.8 42.8 42.8 42.8 42.8 278.1
Subtotal Pr oje ct As s is ting Pr ofe s s ionals 108.4 216.8 204.8 192.8 192.8 192.8 192.8 1,301.1
Total Inve s tm e nt Cos ts 530.1 1,075.0 1,034.5 829.7 780.3 685.3 566.8 5,501.7
II. Re cur re nt Cos ts /x
A. Gove rnm e nt office s uppor t
DENR of f ice staf f support /y amt 500.0 1,002.0 1,110.0 1,127.0 1,146.0 1,146.0 1,151.0 7,182.0 GOVT
DENR of f ice space support /z amt 4.0 4.0 4.0 4.0 4.0 4.0 4.0 28.0 GOVT
LGU of f ice staf f support /aa amt 17.0 28.0 35.0 80.0 80.0 80.0 75.0 395.0 LGUS ( < 100% >, FT )
Total Re cur re nt Cos ts 521.0 1,034.0 1,149.0 1,211.0 1,230.0 1,230.0 1,230.0 7,605.0
Total 1,051.1 2,109.0 2,183.5 2,040.7 2,010.3 1,915.3 1,796.8 13,106.7
_________________________________
\a Project Management w ith Recurrent Costs
\b National unless otherw ise indicated
\c Team Leader, national, natural resources and f orestry specialist
\d Geographic inf ormation systems, mapping and modeling, and decision support system
\e Financial management and procurement
\f 3 mos per URB
\g Deputy Team Leaders (4), natural resources and f orestry specialists, based at the river basins
\h International RT airf are
\i P10K per RT, assume 1 trip per person-month consultant
\j 10 days per trip x P1,000/day at 1 trip per person-month (amounts can be combined f or multiple team members to secure vehicle)
\k 10 days per trip at P3,000/day
\l $120/day f or 30-day month at
\m P10K per RT, assume 1 trip per person-month consultant
\n 10 days per trip x P1,000/day at 1 trip per person-month (amounts can be combined f or multiple team members to secure vehicle)
\o 10 days per trip at P3,000/day
\p Operating expenses - communications, materials, messengerial, etc.
\q P10K per RT, assume 6 trips per year per consultant, 4 consultants
\r P 64,000/mon
\s Per Diem during travel (2400x20d)
\t Of f ice, materials, communications, and other operating operating expenses, assume P2,400/day
\u To assist in the management of the project on f ull-time basis
\v P10K per RT, assume 1 trip every month/person
\w 5 days per trip at P1,500/day
\x Government of f ices in management of INREMP
\y DENR national and regional of f ice staf f support : share of salary based on estimated time dedicated to project management of current staf f and of f iers.
\z DENR of f ice space support - 50 m2 of f ice at P15,000/mon
\aa LGU of f ice staf f support : share of salary-based on estimated time dedicated to project management/implementation of current staf f and of f icers
Appendix 2
183
Appendix 2
Table 10. Project Performance Monitoring & Evaluation /a Oth
(100%) Exclusive
I. Investm ent Costs of Taxes
Project Performance, Monitoring & Evaluation Specialist /b p-mon 1 - - 2 - - 2 5 178.20 4.280 4.3 - - 8.6 - - 8.6 21.4 GEF ( 100% )
Project Performance Evaluation Specialist- Int'l /c p-mon - - - - - - 1.5 1.5 801.89 19.260 - - - - - - 28.9 28.9 GEF ( 100% )
Project Performance Evaluation Specialist p-mon - - - - - - 2 2 178.20 4.280 - - - - - - 8.6 8.6 GEF ( 100% )
Per Diem /d Mon 1 - - 2 - - 4 7 31.23 0.750 0.8 - - 1.5 - - 3.0 5.3 GEF ( 100% )
Domestic Air Travel /e Trip 1 - - 1 - - 3 5 8.33 0.200 0.2 - - 0.2 - - 0.6 1.0 GEF ( 100% )
International Air Travel Trip - - - - - - 1 1 249.81 6.000 - - - - - - 6.0 6.0 GEF ( 100% )
Per Diem - International Consultants Mon - - - - - - 1.5 1.5 167.87 4.032 - - - - - - 6.0 6.0 GEF ( 100% )
Domestic Ground Travel Trip 1 - - 1 - - 3 5 10.83 0.260 0.3 - - 0.3 - - 0.8 1.3 GEF ( 100% )
Periodic Evaluation Activities /f No. 1 - - 1 - - 1 3 522.73 12.555 12.6 - - 12.6 - - 12.6 37.7 GEF ( 100% )
Equipment Package /g no. 6 - - 6 - - - 12 159.46 3.830 23.0 - - 23.0 - - - 46.0 GEF ( 100% )
Total 41.0 - - 46.1 - - 75.0 162.1
_________________________________
\a GEF - Funded Project perfomance monitoring & evaluation
\b M & E Specialist
\c Independent Consultant for terminal evaluation
\d M & E - Specialist's Per Diem
\e Air Fare
\f Monitoring & Evaluation w orkshops; Inception, mid-term and final/end of project.
\g Equipment: Computer, softw are and peripherals
184
Appendix 3
APPENDIX 3. INREMP PERFORMANCE BASED GRANT SYSTEM: CONCEPTUAL

FRAMEWORK
185
Appendix 3
CONCEPTUAL FRAMEWORK OF PERFORMANCE-BASED GRANT SYSTEM (PBGS)
I. Rationale
1. Management of the river basin, which is the natural geographic boundary for surface
water resources, requires the cooperation, participation and collaborative management by all
entities with jurisdiction over the area. It requires the participation in the preparation of and
adherence to the management plan for that river basin by all the local government units (LGUs)
and agencies in it. While a river basin or watershed can fall within a single province, it almost
always covers more than two (2) municipalities. It is therefore important for the successful
management of the river basin or watershed to get the commitment and actions of all concerned
LGUs in line with a unified river basin and watershed management plan.
2. The Performance-Based Incentive Policy (PBIP) is an incentive framework to rationalize
National Government (NG) intergovernmental fiscal transfers to LGUs towards improving overall
LGU performance in governance. The mechanism on how to implement the policy is the
Performance-Based Grant System (PBGS). PBGS provides capacity building or capital grants
for improved performance of an LGU in certain key areas of over-all governance. Performance
is measured based on a predetermined and agreed indicator(s).
3. Under the PBIP, participating LGUs would be encouraged to undertake reforms in key
governance areas of planning, budgeting, revenue mobilization, financial management and
budget execution, procurement, and resource mobilization to enhance their institutional capacity
and strengthen local governance and service delivery.
4. Current indicators include: planning; budgeting-own source revenues - actual vs. target;
fiscal capacity and revenue mobilization - % increase in own source revenues; financial
management and budget execution - Personnel Services/total expenditures; development
expenditures/total expenditures or IRA; clean audit report or progress in addressing audit
findings; procurement - compliance with E-Procurement Law, BAC composition and use of
website; transparency and accountability - use of the LGPMS, submission of SIE to BLGF.
5. INREM can use the PBIP as the vehicle to encourage the concerned LGUs in the
watersheds within the river basins to improve the management of their land and water
resources. Incentive grants may be given to LGUs properly planning for the management of
their watersheds; improving their natural resources management practices; and, conserving
their watersheds from revenues generated by the LGUs for the proper and legal use of natural
resources.
6. The INREM-PBGS will be designed to encourage the LGUs within the INREM Project
area to:
a. join and collaborate with adjacent LGUs within the watershed to prepare a
management plan following the INREM process (scientifically-based/supported
and widely participatory);
b. take appropriate legislative and executive actions to implement the watershed

management plan and continually improve it (CLUP, CDP-ELA, AIP, Zoning
and/or business enterprise);
c. adopt measures to generate revenues for the conservation of the watershed from
legal and proper use of natural resources within the watershed, such as payment
for environmental services (PES), etc.
186
Appendix 3
7. The Project Area comprises four river basins that are widely dispersed and have an
aggregate area of over one million ha. These are: a) Chico River Basin in the Cordillera
Administrative Region (CAR) with an area of about 455,000 ha (40%); b) Wahig-Inabanga in
Bohol, 63,000 ha (6%); c) Upper Bukidnon River Basin in Bukidnon and including some portion
in Misamis Oriental and Lanao del Norte, 480,000 ha (42%); and d) Lake Lanao River Basin in
Lanao del Sur and in some parts of Lanao del Norte, 141,000 ha (12%). The four river basins
cover 23 watersheds in territories of 88 cities and municipalities in 12 provinces of six (6)
regions. Of the 5 cities, 2 are classified as 1st class; others are 3rd, 4th and 5th class. The 81
municipalities are classified as follows: 7 (6%) – 1st class; 4 ( 5%) – 2nd; 15 (18.5%) - 3rd; 30
(37%) – 4th; 19 (23.5%) – 5th; 6 (7.4%) – 6th class. Those classified as 4th to 6th class compose
67.9% of municipalities/cities in the 4 river basins.
8. About a third of all the cities and municipalities have areas falling within two or more
watersheds. Twenty-two (22) municipalities fall within two watersheds; five have areas within
three watersheds; and two municipalities cover four watersheds. Hence, counting the LGUs in
each and every watersheds, there are in effect 126 LGUs in the 23 watersheds. A municipality
in Bukidnon, Talakag, covers three watersheds; and one of these watersheds (Talakag
watershed) falls entirely within its territory.
II. Proposed INREM Performance-Based Grant System
9. The proposed INREM Performance-Based Grant System will substantially follow the
mechanism adopted by the national PBGS Steering Committee. Adapting the mechanism for
INREM Project, it will involve the following:
a. Amount allocated for the PBGS: $3.5 Million or PhP 150 Million (11% of the
amount allocated to rural infrastructure, inclusive of it.)
b. Target LGU participants: Initially the (81) Municipalities and cities with areas
falling within the 23 watersheds initially covered by the Project.
c. Type of Grant: INREMP will provide Capital Grant, the monetary incentive for
LGU investment in infrastructure and basic services.
d. Amount of Grant: The amount of capital grant of an LGU within a watershed will
be based on the following allocation formula.
Criteria Weight Reference/Data Source

Population (within the 40% NSO
watershed)
Land Size (within the 25% LMB/National Project Coordination
watershed) Office (NPCO)/DENR-RO
Equal Share (126 LGUs 15% NPCO
within the 23 watersheds)
Poverty Incidence 20% NEDA/NSCB
(city/municipal level)
e. Prequalification Requirements:
187
Appendix 3
i. Letter of intent to participate in the INREMP-PBGS

ii. Letter of intent to avail of INREMP infrastructure fund from MDFO
iii. Eligibility Requirements:
1. NPCO Certification of Participation in the particular Watershed
Management Planning within the River Basin covered by
INREMP. An LGU is expected to participate in the management
planning of each and every watershed within its territorial
jurisdiction and may apply for capital grant for all watersheds it
participates in management planning.
2. Statement of Receipts and Expenditure (SRE) from the Bureau of
Local Government Finance (BLGF); and
3. COA Audited Report (prior 3 years)
f. Conditions of the INREMP Capital Grant:
i. Governance conditions:
1. Comprehensive Land Use Plan that incorporates the
recommendations/results of the INREM watershed management
planning;
2. Annual Investment Program that includes at least five (5) of the
top priority investments identified in the particular watershed
management plan;
3. Budget Approved includes provisions for the management
activities of the watershed and priority watershed management
investments;
4. Legislative Agenda includes adoption of applicable Payment for
Environmental Services or PES for its watershed;
5. No adverse audit report;
6. Bids and Awards Committee (BAC) established and functional;
7. State of Local Governance Report (SLGR); and,
8. Proof of equity contribution for the availed INREMP Infrastructure
sub-project.
ii. Performance Indicators subject to performance contracting. Performance

contracting is an agreement between the LGU and NG/DENR on the
LGU’s target areas of accomplishment within a year that is basis for grant
allocation. For INREMP, it is proposed that the following should be among
the areas of accomplishment:
1. Substantial (more than 50%) availment of the MDFO-INREMP
fund for rehabilitation of rural infrastructures under the NG-LGU
Cost Sharing Scheme;
2. Participation and substantial accomplishment in forest
conservation and protection and forest rehabilitation projects of
the INREMP;
3. Institution watershed management in its land use management
and planning functions.
4. Ordinance adopting measures to generate revenues for
watershed conservation from environmental services (PES) or
other sources.
g. Release of INREMP Capital Grant:
188
Appendix 3
i. 30% of the amount of the capital grant will be release upon completion of
assessment that the governance conditions are complied with.
ii. 70% of the amount of the capital grant will be released upon confirmation
of LGU’s accomplishment contracted performance indicators by assigned
group of assessors. Semi-annual on-the-spot evaluation will be
undertaken by a group of assessors.
h. Use of INREMP Capital Grant. The capital grant can be used for Basic
Infrastructures and/or for undertaking Basic Services.
i. Basic Infrastructure within or outside watershed

1. Roads, transport services, and traffic management
2. Water resources management, water supply and irrigation
3. Solid Waste Management, Water Supply and Irrigation
4. Drainage, flood control, sewerage/sanitation
5. Energy Supply
6. Telecommunications
ii. Basic Services

1. Land use management and planning
2. Agricultural and fisheries research, extension services
3. Industrial research and development Services
4. Natural resources management (including community forestry)
5. Health services
6. Educational services
7. Social welfare services
8. Information services
i. Negative List: Capital grant should be not used for the following:
i. Tax payment
ii. Salaries and recurrent costs, e.g., maintenance; and,
iii. Micro-credits/loans
III. Steps to Implement INREM PBGS
10. Implementation of the INREM PBGS. PBGS Implementation must be approved by the
PBGS Technical Committee and Steering Committee (expanded MDFO–PBG) which is
composed of different National Government and sectoral agencies.
11. The development of the mechanics or guidelines for implementation must include the
following:
a. The designation of officers/technical staff from DENR and oversight agencies to

develop and implement the INREM PBGS, with clearly defined responsibilities.
b. Determination of the amounts of grants that will be allocated for each grant.
c. Setting-up of parameters/indicators to measure performance.
d. Determination of qualified LGUs;
e. Identification of target beneficiary LGUs.
189
Appendix 3
f. Development of procedures for evaluating status or gathering baseline data of

the participating LGUs.
g. Development of procedures for registering and availing of the grants.
h. Formulation of criteria or guidelines for the verification and evaluation of claimed
performance.
i. Determination of the method of release and accounting/reporting on the
utilization of the grant.
j. Development of procedures for the monitoring and evaluation of the
implementation of the INREM PBGS.
References:
Jesper Steffensen, Henrik Fredborg Larsen, 2005, Conceptual Basis for Performance Based
Grant Systems and Selected International Experiences
DBCC Certification on the approval of Performance-Based Incentive Policy and the

Performance-based Grant System on February 20, 2009.
PBGS-Technical Secretariat Presentation on Performance-Based Incentive Policy and the

Performance-based Grant System, 19 November 2009
190
Appendix 4
APPENDIX 4. IMPLEMENTATION ARRANGEMENTS AND FUNDS

ADMINISTRATION/FLOW
191
Appendix 4
Implementation Arrangements and Fund Management:

Lead Implementing
Component Agency/Unit Fund Administration-Flow
1. River Basin and Watershed The NPCO, based at FMB, DENR-CO, the EA, will
management Plan: - with the assistance of transfer funds to FMB/
 Assessment of Current Land NAMRIA, consultants, NPCO, NAMRIA and other
Use institutions implementing units based on
 Assessment and Mapping - through the DENR-RO with a MOA and/or approved
of current land use participation of the offices of Work and Financial Plan
 Data acquisition National Government Agencies (WFP) through sub-allotment,
 Land Use Capability (NGAs) at the province (NIA, check payment or bank
Assessment & River Basin NCIP, NPC); transfer.
Zoning - under the guidance of the
 Land use Capability NPSC; and, DENR-FASPO, will be
assessment & URB Zoning - with the participation of the responsible for the
 Carbon baseline survey municipalities/cities, preparation/ consolidation
 Boundary Delineation communities, indigenous and submission of
 Participatory Management peoples’ organizations, NGOs Withdrawal Application and
Planning (including IP, gender and POs in the area. Statement of Expenditures
and other safeguard concerns) (SOEs) to ADB for timely
 GIS Data base Installation DENR- FASPO will undertake fund releases.
 Central Operations Center procurement for the Project at
 URB Nodes the Central Office.. DENR-CO – thru the DENR-
 GEF – Watershed RO.
management, biodiversity and Transfer of funds from CO
investment plan thru sub allotment to ROs
based on approved Work and
Financial Plan.
DENR CO or RO may opt to

contract or sub-contract the
undertaking of specific
activities to other government
agencies, private firms/
consultants.
2. Small holders/ institutional Provincial Project Management DENR – CO thru the
Investments Office (based at the PENRO), RO/PENRO
2.1 Conservation, Rehabilitation and with the guidance of Provincial
Protection of URB State Forest inter-Agency INREM Council, Based on MOA between the
 Community based protection support of the offices of DENR/PENRO-PPMO and
and monitoring; national agencies at the the implementing unit (NGO,
 Rehabilitation through province will coordinate the PO, IPO or LGU)
reforestation; implementation Component 2.
 Assisted natural regeneration;
2.2 Sustainable forest management, The participating
agroforestry and commercial cities/municipalities will
plantation with community implement the activities on the
participation ground.
 Sustainable Forest
Management Activities may be contracted
 Agroforestry with Community directly to private or non-
Participation (with Beneficiary government organizations
(in kind) contribution (NGOs), communities, IPs,
 Commercial Forest Plantation peoples’ or farmer
organizations as maybe
192
Appendix 4
Lead Implementing
with community participation recommended by
(with Beneficiary –In kind PINREMC/WMPCC or DENR-
contribution) CENRO
2.3 Rehabilitation and Improvement of Participating City/Municipal Municipal Development Fund

rural infrastructures LGUs. Office – Municipal LGUs (for
 Rural access roads, with infrastructure projects)
safeguards to avoid subject to the NG-LGU cost
encroachment into forests sharing per Loan agreement
through investments in
improving agricultural DA for Project in CHARM 2
productivity on land already Areas in the Chico River
cleared of forest; Basin
 Communal irrigation schemes;
and
 Potable Water Supply (Level II
– Spring Development)
 Foot-Trail & Trading Center
 other Infrastructures, identified
as necessary in the Watershed
Management Plans
 Performance-Based Grants to
LGUs
2.4 Livelihood enhancement thru The DENR- PENRO/ PPMO in Thru the DENR-PENRO
conservation farming close coordination with the based on WFP and MOA
 Extension and training; micro, Municipal Agriculture Office and between DENR-
small, medium-sized agro- municipal environment and PENRO/PPMO and
agribusiness and post-harvest Resource Officer (MENRO) of NGO/PO/LGU, the
management; business participating LGUs; and implementing unit.
advisory, market linkages and assistance/ participation of
linking to micro-credit/finance qualified service providers (e.g.
institutions; academe, NGOs) in the area.
 Introduction and promotion of
improved conservation farming
practices and proven
technologies;
 Seed fund for the self-help
groups composed of poorest of
the poor/vulnerable households
for the replication/up-
scaling/expansion of tested and
matured technologies
2.5 Investment in watershed DENR-CO/NPCO through the DENR-CO/NPCO.,
Management (GEF& CCF) RO/PENRO, with option to RO/RPMO or PENRO/PPMO
 Nursery for Mossy forest- contract or sub-contract the – based on MOA/WFP or
indigenous species undertaking of specific activities contract for the undertaking
 Assisted Natural Regeneration to other government agencies, of specific activity (ies) by
 Buffers with Mixed Vegetable private firms/consultants, LGUs other government agencies,
Cover and/or NGO/POs. private firms/consultants,
 IPO-Revolving Fund LGUs and/or NGO.
Establishment (Seed Capital) Assisted by Consultants,
 Bioenergy Plantation in Consulting firms,
193
Appendix 4
Lead Implementing
Bukidnon International/Local Non-
 Contribution – establishment of government Organizations,
Pilot Charcoal Retort Academe or other institutions.
3. Enhanced capacity for river basin
and watershed Management
 REDD Capacity Building DENR-FASPO will undertakes
 Awareness and Info Campaign procurement.
 PES Training
 LULUCF Capacity Building
4 Project Management and Support
Services
 Consultants' recruitment and
supervision;
 Procurement of materials,
equipment and vehicles;
 Improved institutional capacity
for participating communities
and organizations (including
indigenous peoples'
organizations) responsible for
INREM in all selected URBs;
 Design and development of a
networked GIS-based
Database System (GIS-DBS) at
national, provincial and
municipal LGUs for monitoring
and decision making
 Development of TE-IEC
program that will document, for
implementation and further
dissemination, technologies
and good practices promoted
and undertaken by the Project
on agroforestry, sustainable
forest management,
conservation farming and
others introduced in support of
livelihood.
 Project Performance
Monitoring & Evaluation
DENR = Department of Environment and Natural Resources; DENR-CO = Department of Environment
and Natural Resources Central Office; DENR-RO = Department of Environment and Natural Resources
Regional Office; PENRO – Provincial Environmental and Natural Resources; LGU = local government
unit; URB = upper river basin.
194
Appendix 4
INREM Project Funds & Reports Flow
Asian Development Department of Finance

Bank (ADB) (DOF)/Bureau of
(IFAD, GEF, CCF) Treasury (BOT
Department of Budget &

Management (DBM)
Municipal Development Fund Department of DENR – CO NPCO/DENR-

Office (MDFO) Agriculture (DA) FASPO FMB
FMS
DENR –Regional Office (RO)

Provincial Environmental &
Participating LGUs Natural Resources Office
(Provincial/Municipal) (PENRO)
Community /Indigenous Peoples’ (IPOs) or Non-Government Organizations

Local Institutions or Contractors
(Beneficiaries/Partner Implementors)
Funds are transferred based on approved Work & Financial Plan

or Memorandum of Agreement
For infrastructure & performance based grants system. LGU applies to

avail of the funds
Withdrawal applications (WAs) and/or Statement of

Expenditures (SOEs)/Financial Statements/Reports
IFAD – International Fund for Agricultural Development

GEF – Global Environmental Facility
CCF – Climate Change Fund
DENR – Department of Environment & Natural Resources
FASPO – Foreign Assisted and Special Projects Office
FMS – Financial Management Office
FMB – Forestry Management Bureau
NPCO – National Project Coordination Office
195
Appendix 5
APPENDIX 5. ELIGIBILITY CRITERIA FOR BLOCK GRANT
196
Appendix 5
Eligibility Criteria For Block Grant And Monitoring Mechanism
1. The GEF grant component of the Integrated Natural Resources and Environmental
Management Project (INREMP) consist of activities for: (i) Biodiversity inventory, habitat
mapping and GIS-based database management; (b) Community-based community
conservation planning in ancestral domains; (c) Biodiversity corridor planning; (d)
Mainstreaming biodiversity conservation in the production landscape through protection,
regeneration and appropriate mixed use agroforestry, and; (v) Policy and regulatory framework
support through biodiversity corridor planning.
2. Block grants as means of support to IPOs/POs for the protection and conservation of the
forests/watershed will be piloted through the GEF supported activities/areas. The pilot tested
mechanism will then be applied in other watersheds supported by ADB, IFAD and CCF.
3. Initially, the partner-implementors are the indigenous peoples organizations (IPOs) in the
Chico-Agno-Magat River Basins triboundary in the Central Cordilleras with contiguous ancestral
domains titles (CADTs) in this triboundary area: the Kabatangan Ancestral Domain Indigenous
Peoples Organization (KADIPO) in Buguias, Mt. Province; the Buguias Ancestral Domain
Alternative Native Governance (BADANG) IPO in Buguias, Benguet; and the Kahakey ni Man-
Ilin Itinek(KMI) in Tinoc, Ifugao. The coverage of the CADTs of these three IPOs are: KADIPO -
9,456 ha.; BADANG – 17,155 ha.; KMI – 21,371 ha.
4. Other POs/IPOs in the other INREM Project river basins (supported from the proceed of
loans from ADB and IFAD and CCF grant) will be engaged in similar block grant agreements
based on experience and lessons from the above initial implementation, including the
operations of PES arrangements intended to result from the block grant arrangements.
5. The IPOs shall be assisted by INREMP in mainstreaming biodiversity conservation within

their ancestral domains. Direct support shall be provided through technical assistance (TA) and
block grants amounting to USD 20,000 each as seed funds their conservation programs, and for
providing seed capital to members for conservation-oriented livelihood activities. The seed fund
for conservation, rehabilitation and protection is expected to be leveraged towards a payment-
for environmental services (PES) arrangement with environmental-services beneficiaries.
Initially, depending on the needs of the members of the IPO, fifty percent of the block grant may
be allocated as seed fund for livelihood facilities of the IPO; the other 50% will be for initial
conservation, protection and rehabilitation of the biodiversity resources, environmental
functions, forests and watersheds in their respective ancestral domains. These funds shall be
managed as Revolving Funds (RFs) of the IPOs for these and other purposes that may be
agreed upon with IPOs.
6. Three phases of setting up the block grant operations are: (i) preparatory phase – in year 1;
(ii) Community-based conservation planning and PES pre-contracting – in year 1 through 2; (iii)
GEF conservation project implementation – year 2 onwards [the phasing of work will depend on
the state-of readiness of each participating IPO, and flexibilities in this respect should be
considered during implementation].
7. The Preparatory Phase consists of developing the IPO’s capacities: (i) to administer the
two sub-funds of the block grant ( liivelihood and/or conservation funds), (ii) to enable the IPO to
be a party to legal agreement(s) in a PES arrangement, (iii) to enable the IPO to enforce its
ownership rights over its ancestral domain in the context of land, forest, biodiversity and
197
Appendix 5
watershed conservation; and (iv) to effectively implement its conservation commitments in

compliance with its PES agreement(s).
8. For the Community-based Conservation Planning and PES-Pre-contracting Phase the

major activities and responsibility-centers shall be:
(i) For DENR and NCIP: to facilitate the formulation of the appropriate conservation
plans by the IPO, drawing largely from the remote-sensing and ground surveys,
and employing customary participatory methods of the IPO concerned; the
conservation plans shall include: criteria, indicators and verification methods for
both performance outputs (physical) and outcomes (quantitative and qualitative);
(ii) For the INREM(-GEF) Project Coordination Group for the Cordillera Triboundary:
to facilitate the participation of other watershed stakeholders, particularly the
potential environmental-services beneficiaries, in the planning process;
(iii) For the INREM project implementing units in (i) and (ii): to facilitate the
negotiations process and firming up of agreements between the IPO and PES-
buyer1.
(iv) For the INREM project implementing units in (i) and (ii): to evaluate the state-of-
readiness of the IPO to start implementing the INREM-GEF conservation plan(s)
and the block grant for its RF.
9. The IPO commitments and activities enunciated in the IPO conservation plans shall, at the
minimum, include:
(i) Indication of the metes and bounds of the area covered by the ancestral domain
title (CADT), with technical descriptions and appropriate maps projected on GOP
official control maps;
(ii) Indication on the ancestral domains map the areas (natural forests [mossy,
broadleaf, coniferous], critical biodiversity habitats, human settlements and
agricultural production areas, IP culturally- and historically-significant areas, etc.)
subject of the conservation plan;
(iii) Land-management zones (conservation, protection, rehabilitation, conservation
farming and agroforestry zones) identified and decided upon through
participatory processes, and incorporated in the IPO ADSDPP;
(iv) Criteria, indicators and means of validation for monitoring and evaluation of the
plan implementation agreed upon with the Project Implementing Agency.
10. An IPO shall be deemed as ready and qualified to implement the grant project and financing
when the following minimum conditions are in place:
(i) The metes and bounds of the IPO’s ancestral domains is clearly defined and
delineated and demarcated;
(ii) The conservation plans formulated pursuant to para. 8(iii) above are confirmed
for implementation by its membership;
(iii) It has been registered with the SEC, DOLE or CDA and is deemed eligible to
assume the legal obligations and liabilities as a party to a PES contract; it has
complied with the necessary documentation as a juridical entity with other
oversight agencies of the national and local government;
1
For the Agno-Chico-Magat basins triboundary, the National Power Corporation and the three IPOs identified herein
are expected to be the parties to an initial PES agreement; the National Irrigation Administration, local
governments and municipal waterworks districts, and irrigators associations are expected to subsequently be
parties to next-generation PES agreements.
198
Appendix 5
(iv) It has clear rules of operation for its Revolving Fund (both the livelihood and
conservation sub-funds), including the minimum necessary financial
management capabilities - bookkeeping and accounts management, banking
transactions, credit funds management, as evaluated by the Implementing
Agency.
11. Upon determination that the conditions in para. 8 and 9 above are in place, the DENR shall
release to the IPO the INREM (-GEF) block grant in two tranches, as follows:
The first tranche of USD10,000:
(i) The IPO informs DENR that it is ready to implement the INREM (-GEF) grant
project as embodied in its conservation plan, and that the INREM-GEF Project
Coordination Group for the Cordillera Triboundary has evaluated it as ready to
implement (see para. 10(iv above);
(ii) The DENR National Project Coordination Office (NPCO) authorizes the DENR
Regional Office, CAR, to release the first tranche of USD 10,000 block grant to
the IPO’s GEF project bank account, from the DENR GEF imprest account2.
(iii) The IPO acknowledges receipt of the INREM-GEF block grant;
(iv) GEF implements the INREMP-GEF grant project pursuant to the agreed-upon
conservation plans for its ancestral domain area.
The second tranche of USD10,000:
(i) Validation by an evaluation team3 that the conditions for the continued
implementation of the evaluation plan are in place, pursuant to the agreed-upon
criteria, indicators and means of verification (see para 8(iv above);
(ii) The DENR National Project Coordination Office (NPCO) authorizes the DENR
Regional Office, CAR, to release the second tranche of USD 10,000 block grant
to the IPO’s GEF project bank account, from the DENR GEF imprest account.
12. The Conservation Project Implementation by the grantee-IPO shall be largely

autonomous in nature, i.e., the IPO implements its conservation plan in accordance with its
internal procedures (as laid out in the conservation plan). DENR, and the INREM(-GEF) Project
Coordination Group for the Cordillera Triboundary, are however expected to institute
monitoring and evaluation of IPO implementation progress as part of the overall INREMP
M&E framework which will include the appropriate grievance mechanism acceptable to
both the communities/IPOs and ADB, and as part of the GOP oversight responsibilities for
the whole INREM project. Such M&E work is also necessary to provide guidance for the
upscaling of conservation implementation in the river basin under expanded PES arrangements.
2
Refer to RRP Appendix 8 – Disbursement Arrangement and Project Fund Flow
3
The DENR may opt to commission an independent third-party evaluation team for this purpose
199
Appendix 6
APPENDIX 6. NATIONAL GOVERNMENT ACCOUNTING SYSTEM FOR LGUS
200
Appendix 6
National Government Accounting System For LGUs
Relevant Excerpts From the Manual:
Chapter 3.
Sec. 168. Project Equity (502). This account represents the equity of national
government agencies, local government agencies, government owned and controlled
corporations, foreign funding corporations and private individuals for funds granted to local
government agencies under specific conditions and/or for specific purposes and
projects. This account shall be used in the Trust Fund books of LGUs only.
Debit this account for:
Transfer of completed projects to the General Fund of LGUs

Closing of expenditures at year end or upon project completion
Credit this account for:
Receipt of funds for specific purposes and projects under the Trust Fund
For purposes of identifying the accounts, the following sub-accounts shall be used:
502 – 01 National Government Agency

502 – 02 Local Government Unit
502 – 03 Government Owned and Controlled
Corporation
502 – 09 Others
Chapter 5 - Special Funds
B. TRUST FUND
Sec. 94. Definition of Trust Fund. – Trust Fund shall consist of private and public monies which
have officially come into the possession of the local government or of a local government official as
trustee, agent or administrator, or which have been received as a guaranty for the fulfillment of some
obligation. A trust fund shall only be used for the specific purpose for which it was created or for which it
came into the possession of the local government unit.
Sec. 95. Receipts Accruing to the Trust Fund. – Grants and donations coming from foreign
funding institutions, other levels of government and private institutions/individuals for specific
projects/purpose shall accrue to the Trust Fund. Equity of the LGU on projects under a trust agreement
shall also accrue to the Trust Fund. These receipts shall be credited to the Project Equity account.
Loans of LGUs for income generating projects from the Municipal Development Fund Office
(MDFO) requiring counterpart funding from LGUs shall not be recorded in the Trust Fund but as a Special
Account in the General Fund.
Sec. 96. Collection Procedures for the Trust Fund. – Cash collections for the Trust Fund shall
be acknowledged through the issuance of an official receipt. Procedures for the turn over of collections,
frequency of deposit of collection with the bank, preparation of report of collections, verification of
collections and accountable forms, preparation of report of accountability for accountable forms as well as
consolidation of reports of accountable forms shall be the same as that prescribed for collections in the
General Fund.
201
Appendix 6
In case of receipt of funds through the bank, the Accountant shall draw a JEV based on the bank
credit memo.
Sec. 97. Project Expenditures. – The construction period theory shall apply for expenditures on
infrastructure projects of the Trust Fund. For other projects, expenditures shall be debited to the
appropriate expenditure account. Expenditures shall be closed to Project Equity account at year-end or
upon project completion, whichever comes first.
Sec. 98. Separate Cashbooks for Trust Fund. – The Treasurer and/or the concerned
accountable officers shall maintain separate cashbooks for the Trust Fund which shall be in accordance
with the prescribed format.
Sec. 99. Separate Books of Accounts and Financial Reports for Trust Fund. – The Chief
Accountant shall maintain separate books of accounts for Trust Fund. He shall likewise prepare separate
financial reports such as the Trial Balance, Balance Sheet, Statement of Cash Flows and supporting
schedules, to be submitted within the prescribed timeframe.
Sec. 100. Disbursements within Trust Agreement/Approved Budget. – Disbursements from
trust funds shall be in accordance with the specific purpose stated in the trust agreement/approved
budget between the trustor and trustee (LGU) as certified by the Chief Accountant. The certification on
the DV as to existence of funds held in trust shall serve this purpose.
Sec. 101. Certification and Approval of Disbursements from Trust Funds. – Disbursements
from the Trust Fund shall require:
a. Certification and approval of vouchers and payrolls as to validity, propriety and legality
of the claim involved by the department/ office head concerned;
b. Certification as to existence of funds held in trust and completeness and propriety of
supporting documents by the Accountant;
c. Certification as to cash availability by the Treasurer; and
d. Approval by the Administrator of the fund.
Sec. 102. Disbursement Process. – Disbursements from the Trust Fund shall be as
follows:
a. Disbursement by check
PROCESS PERSON / UNIT RESPONSIBLE
I. Gather supporting documents, Concerned Office
prepare DV/payroll and
forward to Head of
Department.
I. Sign Box A of DV and submit Supervisor/Head of Department
to the Accounting Unit.
I. Check completeness of Accounting Unit
documents and verify
existence of funds held in
trust, assign number to
DV/Payroll, sign Box B and
forward to Treasurer.
V. Verify claim, certify cash Treasurer
availability (Box C) and
forward to approving officer.
V. Approve transaction (Box D) Local Chief Executive/ Administrator of
and forward DV to Cashier. the Fund
I. Prepare and sign check and Treasurer
forward check with DV to
countersigning officer.
I. Countersign check and Administrator
forward to Accountant for
preparation of the
202
Appendix 6
PROCESS PERSON / UNIT RESPONSIBLE

Accountant’s Advice.
I. Prepare Accountant’s Advice
of Local Check Disbursements Accountant
and return DV, check and
supporting documents to
Cashier/Treasurer.
X. Issue check to claimant. Treasurer
Record disbursement in
Cashbook – Cash in Bank.
Prepare Report of Checks
Issued (RCI), forward RCI with
DV and supporting documents
to Accounting Unit.
X. Prepare the JEV based on Accounting Unit
individual checks/voucher;
sign “Prepared By” portion
(approved by Chief
Accountant), and record JEV
in the Check Disbursements
Journal. Post monthly to the
General Ledger/Subsidiary
Ledgers
I. Forward RCI, DV, supporting Accountant
documents and JEV to the
Office of the Auditor for final
custody and post audit.
b. Payments through cash advances

For payments through cash advances, procedures 1 to 5 for check disbursement shall be
followed. The rest of the procedures shall be the same as that of the General Fund.
Sec. 103. Inventory Process. – The perpetual inventory method and the moving average
method shall likewise be adopted in the accounting and costing of inventory. The general procedures,
the forms and reports for the holding of inventory shall also be followed. However, separate perpetual
inventory records and stock cards shall be maintained by the Accounting Unit and the General Services
Officer or the Treasurer as the case maybe. Likewise, separate weekly Summary for Supplies and
Materials Issued pertaining to the fund shall be prepared.
Sec. 104. Pro-forma Accounting Entries for Trust Funds. – Accounting entries for typical
transactions under the trust funds are as follows:
1.
Particulars Account Title Acct. Code Credit
1. Receipt of grant from NGA
a. Receipt of grant direct to

bank from NGA for:
a. Construction of road – Cash in Bank – 110 2,500,000
P2M LCCA
Project Equity
b. Purchase of construction 502-01 502 2,500,000
203
Appendix 6
1.

Equipment – P500,000 P2,500,000
b. Issuance of check with Construction in

approved DV for payment to Progress –
contractor upon receipt of Roads,
first billing – 50% Highways & 232 1,000,000
accomplished Bridges
Withholding Taxes 410 100,000
Payable 110 900,000
Cash in Bank –
LCCA
c. Submission of statement of No entry

disbursements to grantor
d. Issuance of check with Construction in

contractor upon receipt of Roads,
second billing – 100% Highways & 232 1,000,000
accomplished Bridges
Withholding Taxes 410 100,000
Payable 110 900,000
Cash in Bank –
LCCA
e. Transfer of completed Public 243 1,000,000

construction to Public Infrastructures
Infrastructure Construction in
Progress –
Roads, 232 1,000,000
Highways &
Bridges
f. Remittance of taxes w/held Withholding Taxes

Payable 410 200,000
Cash in Bank – 110 200,000
LCCA
g. Purchase of equipment Construction and

Heavy 212 500,000
Equipment
Withholding Taxes
Payable 410 50,000
Cash in Bank – 110 450,000
LCCA
h. Payment of withholding tax Withholding Taxes

Payable 410 50,000
Cash in Bank – 110 50,000
LCCA
204
Appendix 6
1.

i. Submission of full liquidation Project Equity 502 2,500,000
to grantor and transfer of Public 243 2,000,000
completed road and Infrastructures
equipment to GF for LGU use Construction and 212 500,000
Heavy
Equipment
Note: Under the GF books, completed infrastructure project shall be recorded in the Registry of
Public Infrastructures with the TF JEV No. as basis. The transferred equipment shall be recorded
as follows:
General Fund Books: Public 243 2,000,000
Infrastructures
Construction and
Heavy 212 500,000
Equipment
Invested Equity 537 2,500,000
At the end of the year:
a. Closing of Invested Equity to Invested Equity 537 2,500,000

Government Equity Government 502 2,500,000
Equity
b. Transfer of Public Infra- 502 2,000,000

structure to RPI 243 2,000,000
205
Appendix 6
1.
2. Receipt of grant with counterpart fund from LGU
a. Project budget as agreed

upon between grantor and
LGU for project:
Grantor
Building - 1.2M
Equipment - .3M
LGU Funded
Office supplies -1M
Salaries of project
Personnel - .4M
Total 2M
b. Receipt of funds from foreign Cash in Bank – 110 2,000,000

funding institution thru LCCA 502 2,000,000
national government agency Project Equity
502-01 -
1,500,000
502-02 -
500,000
Note: Entry in LGU General Fund books shall be –
Grants and 889 500,000

Donations
Cash in Bank – 110 500,000
LCCA
c.Issuance of check with Construction in
206
Appendix 6
1.

contractor for Construction of Agency Assets 230 500,000
Building, 50% accomplished. Withholding Taxes
Payable 410 50,000
Cash in Bank – 110 450,000
LCCA
d. Remittance of withholding Withholding Taxes

tax Payable 410 50,000
LCCA
e. Issuance of check with Cash – Disbursing

approved DV for cash Officers 107 170,000
advance on salaries and Cash in Bank – 110 170,000
wages of project LCCA
administrative personnel
f. Liquidation of Cash Salaries and

Advances Wages –
Casual/ 803 200,000
Contractual
Withholding Taxes
Payable 410 30,000
Cash – Disbursing
Officers 107 170,000
g. Remittance of tax withheld Withholding Taxes

Payable 410 30,000
LCCA
h. Issuance of check with Office Supplies

approved DV for purchase of Inventory 149 100,000
supplies and materials Cash in Bank – 110 100,000
LCCA
i. Issuance of office supplies Office Supplies

Expenses 849 60,000
Office Supplies
Inventory 149 60,000
j. Purchase of IT equipment IT Equipment and

Software 215 250,000
Withholding Taxes
Payable 410 25,000
Cash in Bank – 110 225,000
LCCA
207
Appendix 6
1.
k. Remittance of withholding Withholding Taxes

tax Payable 410 25,000
LCCA
l. Issuance of check for IT Equipment and

installation of equipment Software 215 50,000
LCCA
End of Year
m. Closing. of expenses to Project Equity 502 260,000

Project Equity 502-02 -
P260,000
Salaries and
Wages – 803 200,000
Casual/
Contractual
Office Supplies
Expenses 849 60,000
Succeeding year
o. Remittance of Withholding Taxes

withholding tax Payable 410 70,000
LCCA
p. Transfer of construction Property Plant and

in progress to property, plant Equipment –
and equipment account Building 204 1,200,000
Construction in
Progress –
Agency Assets 230 1,200,000
q. Issuance of check for Cash – Disbursing

cash advance on salaries and Officers 107 170,000
wages Cash in Bank – 110 170,000
LCCA
r. Liquidation of salaries and Salaries and

wages Wages – 803 200,000
Casual/Contract
208
Appendix 6
1.

ual
Withholding Taxes
Payable 410 30,000
Cash – Disbursing
Officers 107 170,000
s. Remittance of withholding tax Withholding Taxes

Payable 410 30,000
LCCA
t. Issuance of office supplies Office Supplies

Expenses 849 40,000
Office Supplies
Inventory 149 40,000
End of Year
u. Closing of expenses to Project Equity 502 240,000

Project Equity Salaries and
Wages –
Casual/ 803 200,000
Contractual
Office Supplies
Expenses 849 40,000
Project Completion
v. Transfer of building and Project Equity 502 1,500,000

equipment to the General Building 204 1,200,000
Fund as follows: IT Equipment and
General Fund Books: Building 204 1,200,000

IT Equipment and
537 1,500,000
209
Appendix 6
1.
At end of year: Invested Equity 537 1,500,000

Government 501 1,500,000
Equity
210
Appendix 7
APPENDIX 7. PROCUREMENT GUIDELINES
In carrying out procurement of works, goods and services for the Project, the ADB’s Guidelines
for Procurement (2010) Under Asian Development Bank Loans will be followed. Relevant
excerpts follow:
A. Shopping
Shopping is a procurement method based on comparing price quotations obtained from several
suppliers (in the case of goods) or from several contractors (in the case of civil works), with a
minimum of three, to assure competitive prices, and is an appropriate method for procuring
readily available off-the-shelf goods or standard specification commodities of small value, or
simple civil works of small value. Requests for quotations shall indicate the description and
quantity of the goods or specifications of works, as well as desired delivery (or completion) time
and place. Quotations may be submitted by letter, facsimile or by electronic means. The
evaluation of quotations shall follow the same principles as of open bidding. The terms of the
accepted offer shall be incorporated in a purchase order or brief contract.
Shopping (page 35 of the Guidelines)
B. Force Account
Force account, that is, construction by the use of the borrower’s own personnel and equipment1,
may be the only practical method for constructing some kinds of works. The use of force
account may be justified where:
a. quantities of work involved cannot be defined in advance;
b. works are small and scattered or in remote locations for which qualified construction
firms are unlikely to bid at reasonable prices;
c. work is required to be carried out without disrupting ongoing operations;
d. risks of unavoidable work interruption are better borne by the borrower than by a
contractor; or
e. there are emergencies needing prompt attention.
Forced Account (page 36 of the Guidelines)
C. Community Participation in Procurement

Where, in the interest of project sustainability, or to achieve certain specific social objectives of
the project, it is desirable in selected project components to (a) call for the participation of local
communities and/or nongovernmental organizations (NGOs) in the delivery of services, or (b)
increase the utilization of local know-how and materials, or (c) employ labor-intensive and other
appropriate technologies, the procurement procedures, specifications, and contract packaging
shall be suitably adapted to reflect these considerations, provided these are efficient and are
acceptable to ADB. The procedures proposed and the project components to be carried out by
community participation shall be outlined in the financing agreement and further elaborated in
the procurement plan or the relevant project implementation document approved by ADB.
Community Participation in Procurement (page 40 of the Guidelines)
1
A government-owned construction unit that is not managerially and financially autonomous shall be considered a force account
unit. “Force account” is otherwise known as “direct labor,” “departmental forces,” or “direct work.”
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APPENDIX 8.PROCUREMENT OF GOODS AND SERVICES CHECKLIST
1. Preparation of Bid Packages
(a) Implementing Agency:

 prepare list of goods to be procured
 Group of goods into contracts
 Submit to ADB
(b) Executing Agency:

 Review bid packaging
 Provide comments for necessary amendments
 Approve/Disapprove.
 Endorse to ADB
2. Preparation of Bidding Documents

 prepare bidding documents
 Submit to AB (voluntary; for compliance checking and guideline)

 Review bidding documents
 Provide comments for necessary amendments
3. Advertisement and Notification

 advertise in English language newspaper of general distribution, either
(i) Invitation of Bids, or
(ii) Invitation of Express Interest
 For specialized contracts advertise in well known technical magazines or trade

publications or newspaper of wide international circulation
 Issue bidding documents to:
(i) to all firms which want to participate
(ii) to all least three firms from more than one eligible source country
4. Preparation of Bids
Bidder - prepare bids

Implementing Agency
- Answer inquires of bidders during clarification period
- Prepare and send Q&A documents to all bidders
Bidder - Submit bid
5. Public Opening of Bids

 Open bids received in public
 Announce and record:
(i) Name of bidder
(ii) Total bid price
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(iii) Price of alternative bid if any

(iv) Discounts, if any
(v) Presence of bid security, amount and validity
(b) Bidder:
 Sign attendance register
 Sign record of public bid opening
6. Evaluation of Bids

 Evaluate bids
 Seek clarification from bidders if necessary
 Prepare bid evaluation report
 Submit bid evaluation to ADB (voluntary; for compliance checking and guideline)

 Review bid evaluation
 Provide guideline on necessary actions to obtain Bank approval
7. Award of Contract

 Send letter of notification of award including contract form to successful bidder
(b) Bidder:
 Sign contract and return to EA
 Obtain Performance Security and submit to EA
(c) Implementing Agency:

 Sign contract
 Submit to ADB
 Summary of evaluation of bids
 Justifications of award
 Contract as executed
(d) Executing Agency:

 Review documents submitted
 Approve/Disapprove
 Endorse to ADB
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Appendix 9
APPENDIX 9. TERMS OF REFERENCE OF KEY DISCIPLINES
1. Lead Consultant: Integrated Natural Resources and Forest Management (50

PM)
1. The Team Leader (TL)/ Chief Technical Advisor (CTA) provides the leadership to the
consulting team for the achievement of the Project objectives during implementation.
Specifically, the TL/CTA will guide implementation of the major components, resulting in
achievement of both physical and financial disbursement targets as stipulated in the RRP. The
consultant will Review the Project related documentation to better understand the Integrated
Natural Resources and Forest Management implications of proposed investments under the
Project. In ensuring effective implementation of the Project, the consultant will:
2. The TL/CTA will be responsible for the following specific activities during
implementation, with the assistance of other team members, as appropriate:
(i) Organize and oversee implementation of land use and land capability assessment
component, and associated analyses and assessments, as stipulated in the RRP
and detailed in various core and supplementary appendixes on Implementation
Arrangements.
(ii) Oversee collection and analysis of the agro-ecological condition of selected priority
watersheds in selected river basins that impact its ecological functions, including
an assessment of current land use patterns, determine appropriateness of existing
land use patterns.
(iii) Socioeconomic analysis of potential beneficiaries, with special reference to poor
and vulnerable, and indigenous people, if any.
(iv) Documentation of social, technical, policy, legislative and institutional constraints
that must be addressed to ensure restoration of ecological functions of the
selected watersheds. Organize stakeholder workshops at the national, provincial,
and local government levels to present the data on land use and land capability
assessments and other social and environmental data and present options for
investments to be included in the management plan;
(v) Oversee associated assessments in social, environment (including potential
climate change impacts), institutional, and policy aspects to be undertaken by
other members of the team with a view to generate adequate and appropriate data
for preparation of management plans for the watersheds within the selected river
basin; particular focus on traditional sustainable development management
practices in line with the needs and aspirations of the indigenous population;
(vi) Based on a thorough review of lessons learned in natural resources, and
environmental management of watersheds, design an appropriate monitoring and
evaluation framework for monitoring progress and performance of the Project in
accordance with ADB Guidelines and documentation provided as part of the RRP;
(vii) Organize and guide the Strategic Environmental Assessment (SEA) of the
management plans prepared for the watersheds in each river basin and ensure
that climate change considerations are embedded in the SEA for the management
plan;
(viii) Finalize the Management Plans for the watersheds in each river basin in the
selected river basins in the Philippines;
(ix) Provide the guidance to the consultants´ team in the preparation of the feasibility
study for integrated natural resources and environmental management (INREM)
investment program, encompassing appropriate investments and associated policy
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Appendix 9
adjustments to ensure appropriate levels of conservation, rehabilitation, and

management of selected critical watersheds of priority river basins;
(x) The management plans will include investment options for natural resources
conservation, rehabilitation and management of selected watersheds within the
selected priority river basins, identifying various investment packages and their
climate change risks and mitigation under each option together with indigenous
Peoples’ Development Plan (if applicable), Involuntary Resettlement Plan (if
applicable), Institutional capacity building plan, cost estimates for investments,
financing options (including options for grant financing under various global
conservation/environmental funds (GEF/CDM/Others), economic and financial
analysis, and policy adjustments indicating milestones for compliance and bench
marks for monitoring;
(xi) Organize and conduct training workshops for raising environmental awareness
and environmental management at the LGU level (provincial and municipality); and
(xii) Organize river basin level stakeholder workshops and obtain feedback and
concurrence on proposed investment options.
3. In undertaking the activities, the TL will work with the concerned national agencies,
coordinate closely with concerned government agencies, development partners and other
stakeholders’ groups in the preparation of the management plans, and update the ADB,
concerned national government agencies and other development partners of the progress of
work through periodic reports and regular meetings and submit periodic progress reports that
the ADB requires.
2. Climate Change and REDD (International 8 PM; National 16 PM)
4. Consultants will assist the appropriate institutions within the EA and other GOP agencies
in preparing and addressing various aspects of Climate Change REDD as envisaged in the CC
REDD Application approved by ADB. Among other things, the assignment will include the
following tasks:
(i) With reference to National REDD Readiness Capacity Building the consultants will
work with a wide range of stakeholders from national level down to the grass roots
to address various issues and concerns to enhance understanding and capacities.
At national level there are policy issues relating to securing international payments
for Emission Reduction Certificates, establishment of protocols for national,
regional and local emission baselines, the appropriate regulatory and legal
framework for undertaking REDD activities, and measures for dealing with issues
of “leakage” and "permanence". At the local level the issues relate to
implementation, and the design of interventions that will actually achieve
reductions in emissions, estimation of current carbon stocks, assessment of future
emissions in the absence of interventions, evaluation of emission reductions and
securing agreement among stakeholders as to how the proceeds from emission
reductions will be shared. Capacity will need to be developed at all levels to
handle all these issues effectively in the future, which will need a combination of
technical assistance and the provision of advice and on-the-job training. The
consultants will provide advice to the appropriate authorities at national, regional
and local levels in relation to the policy and regulatory issues and the practical
aspects of carbon stock assessments and establishment of emission baselines.
The technical support will include capacity building through on-the-job training,
development of training materials and implementation of training courses and
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Appendix 9
workshops.
(ii) With reference to Carbon cycle assessments the consultants will evaluate and
assess a wide range of land-use/land management systems applied in forestry,
agriculture and horticulture. Each of these systems has different implications with
regard to carbon cycles through variations in life cycles, rates of carbon
sequestration and the ultimate utilization of the products and residues. In order to
support better carbon management by all stakeholders concerned with land
management it is necessary to undertake research and studies of the carbon
cycles in all, or as many as practicable, of the land management systems
currently in use in the URBs covered by the INREM Project. These studies should
lead to recommendations for improvements in practice that will reduce and
minimize unnecessary emissions of CO2. The consultants will assist the relevant
authorities with the design and supervision of studies to compare life cycle carbon
stocks in major land management systems (to include the growing cycle of
sequestration and decomposition and the subsequent utilization cycle with
different carbon conservation regimes)
(iii) With reference to Baseline Assessment of Carbon Stocks, assuming that an
international protocol for REDD will be agreed and include the provision that
payments for emission reductions be based on measurable reductions in CO2
emissions below a baseline level that represents what emissions would have
been without interventions. As a first step, the geographic area to which the
baseline applies will have to be agreed. In order to reach a decision,
investigations will be needed to assess the pros and cons of using either
administrative boundaries, and if so what level is appropriate for physical
boundaries such as river basins or sub-basins. Establishment of baselines will
also be dependent on the availability and reliability of historical data on land-use
within the chosen area. The consultants will assist the relevant authorities at
national, regional and local level to reach the necessary decision regarding the
geographical area to which base-line studies will apply and then to identify
available sources of the necessary data to establish credible and verifiable base-
lines. Where reliable data is not available, the consultants will advise on the best
proxy data to be used and on the steps needed to develop the necessary data
and information at the earliest possible time. The consultants will provide the
technical support in undertaking the capacity building, develop training materials,
and undertake the required training, and will advise on the establishment and
management of a database within an appropriately qualified national institution.
(iv) With reference to Design of Pilot Activities, given that different land management
systems create different sources of emissions of CO2 and involve different sets of
stakeholders, which tends to influence both the quality of management and the
scale of operations, Pilot activities shall have to be designed that test as many as
possible combinations. The consultants will assist project management to
identify various options under various land use scenarios and design appropriate
pilot activities, and where there are multiple potential partners for implementing
the pilot activities to design a selection process that may include some form of
competitive bidding. One criteria for selection of pilot activities would be the
replicability of the activity throughout the river basin in which the demonstrations
will be established as well as regionally and nationally. A further criteria would be
the marketing of emission reductions from the activity and the way in which the
proceeds are distributed among stakeholders, which should ensure that there is
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Appendix 9
adequate incentive to participate, equity among stakeholders that reflects each

party’s contribution and sustainability. The demonstration activities should be
designed with a view to the development of a REDD-related land management
investment portfolio.
3. Institutional Assessment and Capacity Building (18 PM, Intermittent)
5. The consultant will review the Project related documentation, including the FSR and
consultants reports produced during project preparation, to better understand the current LGU
capacity and capacity building objectives and implications of proposed investments under the
Project. The consultant will work in close collaboration and consultation with other members of
the team, participating beneficiaries and the private sector to ensure effective implementation of
the Project objectives. In this context, the consultant will:
6. Based on the updated input received from various members of the team as well as the
capacity building plan prepared during the project preparation phase, assess the current
capacities of LGUs and participating Local Community Organizations (LCOs) or Peoples’
Organizations (POs) to (i) handle and effectively implement various Project activities including
land use and land capability assessment, INREM planning, participatory demarcation and
zoning, and other activities. In this context, the consultant will:
(i) Undertake a needs assessment at various levels of implementation (regional,

provincial, and municipality) within government and nongovernment institutions,
LCOs and POs to determine the capacity building needs at these levels:
(ii) Based on the assessment, develop a comprehensive Capacity Building Plan to
ensure effective implementation of the Project at all levels of implementation;
(iii) Determine the appropriate mechanism and methodologies for capacity building at
various levels;
(iv) In consultation with other members of the team, develop training/capacity building
modules, and identify the means and the mechanisms for imparting the training
needed for capacity enhancement at various levels;
(v) In consultation with other members of the team, organize and conduct training
workshops for raising environmental awareness and environmental management
at the LGU level (provincial and municipality); and
(vi) Assist the Team Leader in any other tasks relevant to the expertise of the
consultant including preparing various reports and other documents required by
ADB and concerned government institutions.
4. Land Use and Land Capability Assessment, Planning and Management (12
PM, Intermittent)
7. The consultant will Review the Project related documentation, including the FSR and
consultants reports produced during project preparation, to better understand the objectives and
implications of Land Use and Land Capability Assessment, Planning and Management in the
proposed investments under the Project. In ensuring effective implementation of the Project, the
consultant will:
(i) Develop a strategy for undertaking land use and land capability assessment of
selected river basins with the aim of determination of the most appropriate land
use that ensures integrity of the watersheds and reverses the trends of watershed
degradation. In this context. He/she will supervise the desk based analysis and
217
Appendix 9
field surveys and mapping required to collect data for analysis; the information
thus generated and analyzed would serve as the basis for land capability
classification, zoning and management planning;
(ii) Participate and act as resource person, on matters related to land use planning
and management, in stakeholders’ workshops that will be conducted in Luzon,
Visayas, and Mindanao to identify and document localized issues and concerns in
land use planning, classification, zoning and management planning with active
participation of stakeholders’ in ensuring sustainable natural resources
management;
(iii) Based on the watershed land use assessment, alternative land use options, and
other information relevant to his expertise, contribute to the development of the
river basins natural resources management plan;
(iv) Organize and conduct training workshops for capacity building in the relevant field
accordance with the capacity building plan at the LGU level (provincial and
municipality); and
(v) Assist the Team Leader in any other tasks relevant to the expertise of the
5. Geographical Information Systems (GIS) & Mapping (8 PM, Intermittent)
consultants reports produced during project preparation, to better understand the GIS based
Monitoring and Evaluation objectives and implications of proposed investments under the
Project. The consultant will work in close collaboration and consultation with other members of
the team, participating beneficiaries and the private sector to ensure effective implementation of
the C&P objectives. The consultant will the contractors for land use and land capability
assessment to develop appropriate maps and datasets for establishment of a spatial data base
as the saline for longer term monitoring of land use information for informed decision making. In
this context, the consultant will:
(i) Review satellite images and work with other specialists in updating the data on
the bio-physical, socioeconomic, climatic, and institutional conditions of the
watersheds in selected river basins to update their characterization in accordance
with integrated watershed management Guidelines;
(ii) In coordination with other consultants, prepare maps including on land uses,
drainage, political boundaries, hydrological vulnerabilities, population and
settlement, infrastructure, location of indigenous peoples, cultural resources and
critical areas for biodiversity conservation in the watershed;
(iii) Establish whether target end-users require software upgrading and data
management training to enable effective use of the procured/developed GIS data
sets from the modelling studies;
(iv) Establish data presentation formats following ADB guidelines on logos and
spellings, and interface it with the INREM information systems so that data can be
made available to partners in a user-friendly format for maps and presentations
and program implementation;
(v) Collaborate closely with concerned government agencies involved in monitoring
and spatial mapping;
(vi) In consultation with other members of the team, organize and conduct training
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Appendix 9
(vii) Assist the Team Leader in any other tasks relevant to the expertise of the
6. Policies (,Institutions) and Legislation (42 PM, Intermittent)
consultants reports produced during project preparation, to better understand the policy and
legislation objectives and implications of proposed investments under the Project. In this
context, the consultant will undertake review and analysis of natural resources, environmental
management policies associated with land use and land tenure, and other relevant issues and
provide appropriate input for preparation of river basin level INREM Plans for selected river
basins under the Project. In this context, the consultant will be responsible for providing
contribution and assistance in:
(i) Collection and documentation of available information and secondary data for
assessment of the current policies and associated issues with specific reference
to INREM of selected river basins in each of the major administrative regions at
the national and provincial level;
(ii) Analysis of policy adjustment needs to ensure effective implementation of INREM
plans at the LGU level, addressing the associated climate change implications, as
well as issues pertaining to land and tree tenure;
(iii) Drafting of appropriate legislation (ordinances, executive orders, etc) that would
be required for effective implementation of INREM plans and effective operation of
Payment for Environmental Services;
(iv) Identify critical institutional issues including those relating to un-sustainable
logging, mining concessions and inadequate enforcement and implementation of
stated policies as relevant to environmental management in coordination with
other national consultants;
(v) Propose policy adjustment options (including climate adaptation policy options) for
effective implementation the selected investment options for the INREM plans for
selected river basins;
(vi) Organize and conduct training workshops for capacity building in the relevant field
municipality);and
Consultant including preparing various reports and other documents required by
7. Social Safeguards (incl. IPs and Resettlement), Poverty, and Gender (32 PM
Intermittent)
legislation implications of proposed investments under the Project. In this context, the consultant
will be responsible for assessment of the social dimensions (including indigenous people,
resettlement, risk reduction, gender & development, land tenure, institutions, stakeholder
participation, organization of workshops, and participant feedback). The consultant will:
(i) Prepare a socio-economic database at the beneficiary and

village/township/county level in a participatory manner that will serve as the
219
Appendix 9
benchmark (baseline) information for the input, output, and outcome monitoring
and evaluation indicators for assessing the poverty, social, and gender impacts of
the Project components and for the Project as a whole. Information to be collected
through a combination of primary and secondary data gathering as well as
quantitative and qualitative approaches; will include but will not be limited to,
demographic information of the poor disaggregated by gender and minority/social
groupings, definitions and perceptions of poverty in Project sites, economic,
environmental, and noneconomic features of poverty, resource assets and
systemic constraints of the poor, typology of the poor in the Project sites, and
institutional bottlenecks to poverty reduction;
(ii) Using the data gathered, prepare socio-economic and poverty profiles of the
prospective stakeholders and beneficiaries to be impacted by the component and/or
sub-project, using both quantitative and qualitative and participatory techniques.
Undertake a needs assessment/beneficiary analysis in the Project sites and
prospective Project sites and identify the causes of income and non-income
poverty. Undertake a SWOT analysis of the poor, women, and minority groups in
the initial phase of the Project. After which, design a participatory poverty analysis
that will involve as many of the stakeholders as possible; this will serve as the
format for future poverty profiling and assessments;
(iii) Formulate recommendations to bring about greater accountability and
transparency in the development process itself at the local level through
empowered communities and genuine participation in the development
processes;
(iv) Ensure that INREM plans development processes actually use participatory
approaches effectively, and include the poor, assetless, vulnerable sections in
local planning, resource allocation decisions, and benefit flows from such
development interventions. Identify examples, and analyze and discuss to
understand the extent to which such approaches can actually help to unlock the
potential of the rural poor and gain them access to factor and product markets;
(v) In consultation with relevant members of the team, carry out an analysis of policy
adjustments related to social dimensions (with specific reference to INREM
planning and implementation) such as: land and tree tenure, vulnerability of
human settlements and rural livelihoods to climate impacts, micro credit,
institutions, etc for inclusion into a policy dialogue with the government;
(vi) Assist in formulation of appropriate and acceptable proposals regarding sharing of
downstream revenues with upstream communities for recompensing
environmental services as integral parts of the INREM plans;
(vii) Make appropriate recommendations regarding the means that make conservation
and watersheds management profitable for upstream communities, who are most
often indigenous people, and measures to ensure that such environmental service
costs actually reach the communities in the manner and forms they require and
benefit them;
(viii) Based on the social assessment and where indigenous peoples will be
involved/affected directly or indirectly, recommend culturally appropriate strategies
and options to mitigate impacts as a result of new schemes to be introduced and
which will potentially change livelihoods and/or demand for socio economic
services
(ix) Organizing stakeholder workshops to seek agreement with stakeholders on
criteria for classification of watersheds and river basins into various categories ;
(x) Prepare an Initial Social Analysis report, an Indigenous Peoples´ Development
Plan and/or Involuntary Resettlement Plans for the INREM Program, if deemed
220
Appendix 9
necessary, in accordance with ADB Policies and Guidelines and the IPD
Framework and IR Framework;
(xi) Prepare a Gender Action Plan for each watershed in accordance with ADB
Gender Policy;
(xii) In consultation with relevant members of the team, propose options for capacity
building of various local community groups/organizations that may be involved
with implementation of the Project, identifying the means and institutions for such
capacity building measures. This can include community-based public education
and outreach activities related to climate risk reduction and adaptive water
management practices;
(xiii) In consultation with other members of the team, organize and conduct training
workshops for capacity building in the relevant field accordance with the capacity
building plan at the LGU level (provincial and municipality); and
(xiv) Assist the Team Leader in any other tasks relevant to the expertise of the
8. Information, Education and Communication and Public Participation (20

PM, Intermittent)
consultants reports produced during project preparation, to better understand the Information,
Education and Communication and Public Participation objectives and implications of proposed
investments under the Project. The consultant will work in close collaboration and consultation
with other members of the team, participating beneficiaries and the private sector to ensure
effective implementation of the C&P objectives. Specifically, the consultant will:
(i) Develop complementary arrangements with academe and research-extension
agencies within the river basins to engage in resource and information sharing
and provision of technical assistance;
(ii) Promote the adoption of conservation farming technologies by adherence to
consultation and participation with and among stakeholders especially the
vulnerable and incentive-providers, the LGUs;
(iii) Strengthen the existing POs in the arena for participation especially among early
adopters. Involve local NGOs to provide the technical expertise and form the pool
of trainers, or engage in M&E activities to ensure that farmers adopt the
conservation farming technologies and that farm inputs and information are
received in a timely manner;
(iv) Develop IEC materials as part of the development support communication
provided in the C&P plan in order to enhance the informed decision-making
process among the vulnerable stakeholders. Materials will be developed
according to the needs and preferences of the community. For instance, some IP
groups still prefer interpersonal communication as the most effective way of
informing and educating farmers especially when role-paying is included. For
other stakeholders, print and audiovisual materials are more than enough. Along
with site-species matching of conservation farming technology is the need to
match the appropriate and preferred IEC modalities. These have to be included in
the Social Assessment to be conducted immediately before investments are
made;
(v) In consultation with other members of the team, organize and conduct training
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Appendix 9
(vi) Assist the Team Leader in any other tasks relevant to the expertise of the
9. Environmental Safeguards and Cumulative Environmental Assessment (28

PM, Intermittent)
legislation implications of proposed investments under the Project. In this context, the consultant
will review various reports/assessments and other relevant background information available
with the team or collect additional information to update him/herself with the current status of
environment related aspects in the selected river basins and proposed subprojects. He/she will
visit the field sites, familiarize him/herself with potential environmental issues relevant to the
proposed interventions in each subproject area and evaluate the implications of the INREM
plans and subproject feasibility studies on the environment and conduct an Initial Environmental
Examination of the subprojects in accordance with applicable ADB and National Environmental
Assessment Guidelines and in accordance with the Develop Environmental Assessment and
Review Framework (EARF). The consultant will:
(i) Thoroughly familiarize him/herself with the proposed interventions by reviewing

available documentation, field visits, discussions and interviews, and discussions
with concerned members of the consultants' team;
(ii) Propose options for enhancement of the role of local communities in monitoring
environmental compliance dimensions during implementation of the INREM plans;
(iii) In consultation with other members of the team, propose capacity building options
for various local community groups/organizations that may be involved with
monitoring of environmental compliance dimensions including climate risk
reduction during implementation, identifying the means and institutions for such
capacity building measures;
(iv) Conduct an environmental assessment of the subprojects under each intervention
and prepare an initial environmental examination (IEE) reports for each
component and over all environmental impacts of all the interventions within the
river basin; in this context, the consultant will use an area based approach, using
the selected river basin to determine the scope of the IEE, and all interventions
with as interventions for assessment of environmental impacts;
(v) Present the IEEs to the stakeholders in a stakeholder workshop and obtain
feedback and incorporate comments and concerns of stakeholders, as
appropriate;
(vi) Finalize the IEE and prepare a Summary IEE as part of the final report; the IEE
report will include appropriate appendixes in accordance with ADB Environmental
Guidelines and national guidelines, policies and procedures;
(VII) Provide technical and administrative support to the team leader in carrying out
various tasks related to implementation of the PPTA;
(VIII) In consultation with other members of the team, organize and conduct training
workshops for capacity building in the relevant field accordance with the capacity
building plan at the LGU level (provincial and municipality); and
(ix) Assist the Team Leader in any other tasks relevant to the expertise of the
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Appendix 9
10. Strategic Environmental Assessment (National, 16 PM, Intermittent)
12. For the strategic and cumulative environmental assessment, the consultant will assess
the broad level strategic and cumulative impact on the environment as a consequence of
various INREM plans prepared under the INREM process and identify any impacts (adverse or
positive) that may result and how any of these adverse impacts may be addressed/mitigated,
both within the project and external to the project. The basic steps to be conducted in the
strategic environmental assessment are as follows:
(i) Conduct screening and scoping. Confirm that the investment program is the
appropriate plan to be the focus of assessment;
(ii) Define indicators. Review available sustainability indicators, adopt/adapt a simple
and clear set of indicators to evaluate environmental effects;
(iii) Engage stakeholders. Identify and analyze interests, incentives, roles, mandate,
and linkages of the various stakeholders;
(iv) Identify, predict, and evaluate effects. Identify social and economic changes that
will be created by the investment program;
(v) Integration. Integrate the environmental criteria in the INREM plans that will be
specified for each river basin;
(vi) Mitigation. Based on the review, feedback from stakeholders, and assessment of
critical environmental issues, make appropriate recommendations for
incorporation in the INREM plans and overall implementation of the investment
program;
(vii) Monitoring. Prepare a monitoring plan to measure environmental effects of
mitigation measures;
(viii) Independent review. Submit strategic and cumulative environmental assessment
and documents for independent review;
(ix) In consultation with other members of the team, organize and conduct training
(x) Assist the Team Leader in any other tasks relevant to the expertise of the
11. Financial Management, Procurement and PBGS (National, 12 PM,

Intermittent)
consultants reports produced during project preparation, to better understand the financial
management, procurement, and PBGS objectives and implications of proposed investments
under the Project. The consultant will work in close collaboration and consultation with other
members of the team, participating beneficiaries and the private sector to ensure effective
implementation with specific reference to financial fund flows and operation of PBGS.
Specifically, the consultant will:
(i) Review the objectives, scope, activities, management, implementation

arrangements for various components and subprojects and determine their
appropriateness in achieving the objectives, and in achieving expected benefits;
(ii) Evaluate and assess the project flow of funds and ascertain that all parties
concerned understand the flow of funds (including approvals and authorizations)
under the Philippine government system to be utilized under the project;
223
Appendix 9
(iii) Assess and describe the accounting systems, controls and capacities of the
stakeholders to be partners in the in the chain. Discuss greatest vulnerabilities in
the system and make recommendations to improve controls and efficiency;
(iv) Identify and describe areas where strengthening of accounting and finance
procedures will be required for various stakeholder participants in handling of
finances from a multilateral-funded project;
(v) Design a training program to address areas needing strengthening to enable
efficient project start-up and flow of funds. Identify the participants, the thematic
area to be covered, timing of the training, the instructors, duration of instruction,
venue and costs;
(vi) Formulate a financial management manual to provide guidance for those officers
involved both at the start-up of the project and for other financial officers who may
be transferred in later during the duration of the project period;
(vii) Assess the fiscal requirements and impact of the Project on the Government of
the Philippines, and the various agency and local government levels; assess
budgetary sustainability and LGU or beneficiary ability to provide required funding
for operations and maintenance of management institutions and project-funded
facilities; in this regard, assess viable options for payment for environmental
services (PES), workable arrangements and requirements (institutional and legal),
and make recommendations to address remaining gaps;
(viii) Identify and model suitable and potentially viable private sector enterprises,
considering the setting and conditions of the watershed, opportunities, risks, and
market access and costs; Identify the constraints for private sector development
and linkages, and make recommendations for how best to address these in the
context of sustainable watershed management;
(ix) Assess the availability of credit for household and firm financial needs in the
watersheds. Identify gaps and potential partnerships, and make recommendations
for strengthening workable linkages for rural finance. If this should include
workshops and training, formulate the program inputs, costs, participants,
duration, venues, and outputs;
(x) Taking account of ADB requirements and national guidelines, update the
procurement plan for the Project at the national, regional, provincial and
municipality level;
(xi) Prepare a report that contributes to the preparation of the feasibility studies for
various subproject under various INREM plans; and
(xii) Assist project team with any matters pertaining to finance and project activity
models (taxes, import duties, transport, etc.), if any;
(xiii) In consultation with other members of the team, organize and conduct training
(xiv) Assist the Team Leader in any other tasks relevant to the expertise of the
12. Rural Infrastructure Engineering (16 PM, Intermittent)
consultants reports produced during project preparation, to better understand the Rural
Infrastructure Engineering objectives and implications of proposed investments under the
Project. The consultant will have the following functions and responsibilities in supporting the
PSO and PC:
224
Appendix 9
(i) Conduct a thorough evaluation of MLGUs to determine their eligibility for project
support in relation to their technical, administrative and financial capacity to
implement proposed rural infrastructure sub-components;
(ii) review specifications for rural infrastructure works (rural access, communal
irrigation schemes, post-harvest facilities and potable water supply schemes) and
prepare and agree on standard designs and specifications for use by MLGUs,
(iii) check, review and evaluate detailed engineering plans, design, drawings,
PERT/CPM, Gantt Chart and S-Curve, detailed estimates and programs of work
submitted by the MLGU through the PSO for approval by the PC;
(iv) establish mechanisms and standard costs to be used in determining the work item
unit costs that would be used as the means to release funds to MLGUs for
completed work and establish procedures for approving variations in planned
work and resolving claims for extra payments;
(v) review contractors’ claims for additional payments, extension of time or other such
claims as recommended by MLGU;
(vi) propose revision, where necessary, to procedures, standard specifications and
work item unit cost calculations;
(vii) review, analyze and evaluate periodic reports of sub-components implementation
as submitted by the MPO, conduct field inspection if necessary and recommend
solutions to problems encountered;
(viii) review completion reports, conduct final field inspection, prepare final inspection
report and recommend turn-over of completed facilities to the LGU and end users;
(IX) Organize and conduct training workshops for capacity building in the relevant field
municipality); and
(X) Assist the Team Leader in any other tasks relevant to the expertise of the
13. Rural Infrastructure Economist ( 16 PM, Intermittent)
consultants reports produced during project preparation, to better understand the Rural
Infrastructure Economics objectives and implications of proposed investments under the
Project. The consultant will be responsible for effectively and efficiently carrying out the approval
process of all sub-project investments funded by the project and ensure that final approval
would be obtained, based on agreed criteria, in a timely manner. He/she will have the following
functions and responsibilities in supporting the PSO and PC:
(i) Manage the sub-components’ appraisal process, and take responsibility for
ensuring that the PSO and PC has the appropriate skills to focus on reviewing
each individual sub-component proposal;
(ii) set up investment benchmarks to be used in initial sub-component screening for
different types of investment and establish detailed models and working
procedures in coordination with relevant line agencies;
(iii) establish and disseminate a set of procedures to ensure an orderly and timely flow
of rural infrastructure investment proposals;
(iv) together with the RIS, agree on a series of time-bound processing targets for rural
infrastructure appraisal process;
(v) conduct thorough review and evaluation of sub-component feasibility study
225
Appendix 9
submitted by MLGUs and conduct field appraisal visits if necessary;

(VI) prepare documents and recommend feasible sub-components for deliberation and
approval by the PC; Organize and conduct training workshops for capacity
building in the relevant field accordance with the capacity building plan at the LGU
level (provincial and municipality); and
14. Resource Economics (12 PM, Intermittent)
16. The consultant will work closely with the Resource Economist, review the Project related
documentation, including the FSR and consultants reports produced during project preparation,
to better understand the Resource Economics objectives and implications of proposed
investments under the Project. The consultant will work in close collaboration and consultation
with other members of the team, participating beneficiaries and the private sector to carry out
economic and market demand analysis of various components and/or sub-projects, assigned by
the NPCO. Specifically, the consultant will:
(i) Review the objectives, scope, activities, management, implementation

arrangements for various components and subprojects and determine their
appropriateness in achieving the objectives, and in achieving expected benefits;
(ii) Review and analyze the economic and financial viability and market demand
aspects of the proposed sub-projects, and undertake an analysis should any of
these aspects be found to be deficient in any manner; identify any significant
changes in the financial and economic environment that may affect the design
and implementation of the sub-project;
(iii) Review and revise, as necessary, the parameters used in the economic and/or
market demand analysis of the proposed component or sub-project;
(iv) Review input-output and price parameters used in the financial and economic
modeling of proposed sub-project activities and expand and/or revise models to
reflect changes in both the economic and financial environment and in model
parameters;
(v) Based on the revisions to scope and activities, revise and update the cost
estimates and financing plan. Discuss detailed cost estimates with the team
leader and the NPCO and brief concerned national and provincial agencies about
the feasibility or otherwise of the proposed sub-project;
(vi) Prepare an overall Project economic/financial analysis and market demand
analysis based on revised Project scope and activities and input-output and price
parameters. This should identify the number of beneficiaries of the proposed sub-
projects, in particular the proportion that will fall within the poverty target group;
(vii) Periodically monitor the impact of the Project in terms of generation of fiscal
revenues, i.e., taxes, duties;
(VIII) Organize and conduct training workshops for capacity building in the relevant field
municipality); and
(ix) Assist the Team Leader in any other tasks relevant to the expertise of the
15. Geographical Information Systems (GIS) based Database development for
226
Appendix 9
Project performance monitoring (10 PM, intermittent)
consultants reports produced during project preparation, to better understand the GIS based
database management objectives and implications of proposed investments under the Project.
In ensuring effective implementation of the Project, the consultant will:
(i) Provide appropriate assistance and supervision support in the development of

GIS-based natural resources management information systems to ensure regular
monitoring of project implementation performance as well as the status of natural
resources in all the river basins within the scope of the Project;
(ii) Provide necessary assistance and support to the Project team with development
of data sets needed for the establishment of baselines for an assessment of
carbon stocks in the river basins and identification of appropriate management
prescriptions for their conservation and management to enhance biodiversity
conservation and reduction in the emission of greenhouse gases (GHGs).
(iii) Based on the information generated under (i) above, prepare the required maps
and date sets with specific reference to biodiversity areas, degraded areas in
need of rehabilitation, and areas with potential for effective protection to enhance
carbon sequestration and reduce emission of GHGs in the priority watersheds
included under the INREM Project.
(iv) Produce thematic maps of existing and potential run-of-the river hydropower sites,
cities or urban areas adjacent to watershed catchments, and significant irrigation
areas in the country.
(v) In consultation with other members of the team, facilitate mapping of the areas
with potential scope of applying PES in the relevant sectors (hydropower,
irrigation, domestic and industrial water use, and water code) to finance
watershed conservation and management. Analyze map overlays resulting from
the mapping exercise, and identify priority watershed areas for PES program
design.
(vi) For information management and environmental monitoring, review the current
system of environmental monitoring with specific reference to biodiversity
conservation, climate change impacts, land use changes, deforestation, soil
erosion and pollution and contamination of water resources, and determine its
appropriateness for application in the Project area.
(vii) Taking into account the framework for GIS based decision support system (DSS)
developed under the INREM PPTA, and in collaboration with concerned
government agencies involved in monitoring and spatial mapping, design an
appropriate monitoring system, linked to the DSS, which supports decision making
at various national, regional and LGU levels, and enhances the current level of
monitoring of environmental conditions of watersheds in the selected river basins,
as well as generate data for monitoring Project performance including biodiversity
conservation and carbon sequestration benefits, with potential for expansion to
other similar areas of the country.
(viii) Identify target end-users under the Project, and establish whether they require
software upgrading and data management training to enable effective use of the
procured/developed GIS data sets from the modelling studies (if so, prepare a
detailed training program, including magnitude, venues, timeframe, and costs);
(ix) Collaborate closely with concerned government agencies involved in monitoring
and spatial mapping;
(x) Organize and conduct training workshops for capacity building in the relevant field
227
Appendix 9
municipality); and
(xi) Assist the Team Leader in any other tasks relevant to the expertise of the
228
Appendix 10
APPENDIX 10. GENDER ACTION PLAN

1. National concerns. Filipino women may be considered as relatively advanced in the
areas of education, profession, politics and legislation1 but they also suffer from domestic
violence, economic disadvantages, discrimination in the workplace, exploitation as migrant
workers and prostituted women, and war displacement. Women are largely visible within the
government bureaucracy but these mostly are technical or second-level positions. Employed
women2 (13.3 million) were lower in number than that of men (21.3 million) and about 54.7
percent of female OFWs in 2008 were laborers and unskilled workers, including domestic
helpers, cleaners, and manufacturing laborers. Remittances from female OFWs were relatively
lower than the males. As regards violence against women (VAW)3, the number of reported
cases increased to 37.4 percent from 2008 to 2009. It is recognized that the data reflects merely
what is reported to the PNP and that unreported cases are possible. In general, women are in
disadvantaged position due to differences in gender roles that limit their access to productive
resources and basic services.
2. Site-based concerns. Data resulting form the social assessment reveal that the Project’s
regional stakeholders, largely INREM institutional stakeholders, perceive women to be low in
terms of importance and influence in river basin management. At the village level consultations
with local communities resulted in women being rated as moderately important but with much
influence in community concerns. Lake Lanao village level consultations in the municipalities of
Bubong, Taraka, and Marawi City ascertain that women are perceived to be of low importance
and influence as regards natural resource management. Across river basins, household and
community levels of interaction reflect strengths in the assertions of women in natural resources
management especially marketing, credit, and household reproductive activities. Brought to a
higher level of social interaction, power dynamics can be described as subdued for women
where they largely become silent participants to planning and decision-making specifically in
regard to land use planning.
3. Another key gender issue is the minimal and unsatisfactory access to social and financing
services as perceived by women stakeholders. Social services cited were on education, health,
water and electricity. By and large, those from the downstream areas of Wahig-Inabanga and
Upper Bukidnon River Basins responded more positively.
4. IP Women. There are no manifest conflicts between genders. However, in the vegetable
producing areas of CAR and Bukidnon, women are paid much less than their male counterparts
notwithstanding the fact that tasks accorded to women are less physical demanding. Local
leadership at the project sites is still highly male-dominated, but this does not prevent women
from taking the necessary initiative to organize and perform localized decision-making. Women
in the Chico River Basin have been known to influence local ordinances directed to their
menfolk to limit domestic violence by controlling drinking sprees with specific curfew hours
provided.
5. Women in Conflict-Affected Areas. Women play major roles in social protection4 within
conflict-affected areas of Mindanao. While men join the battlefield or are in some cases their
mobility is restricted, households have become dependent on women for survival. Some women
play significant roles in supporting the mujahideen as they provide food and medicine, and act
as emissaries.
1
Philippines Development Plan: 2011-2016
2
2009 Labor Force Survey
3
Philippine Commission on Women, 2010
4
Joint Needs Assessment for Conflict-Affected Communities In Mindanao: Human Development Sector. Draft Integrated Report.
The World Bank. October 2004.
229
Appendix 10
Gender Action Plan. Per result of the Social Analysis, a Gender Action Plan (GAP) is
presented in Table A10.1 designed to address three key issues: empowerment for participation
and decision-making on natural resource management, improved access to services which will
in the end redound to decreased time and effort for performing household reproductive
activities.
Table A10.1: Gender Action Plan

Output Gender Design Features/Activities
Output 1: River Basin  At least 30% women’s representation during consultations and assessment for
and watershed developing watershed management plans and river basin indicative
management and development plans.
investment plans  At least 30% women participated in the watershed management activities and
established land use planning.
 At least 30% women in the water management committees to be established by
the Project.
 At least 30% of women trained and involved in PES mechanisms and at least 3
related NGOs can support and/or facilitate participation of women in the river
basin management.
Component 2:  At least 30% of women in the committees to be established and/or consolidated
Smallholder and by the Project.
institutional investments  50% of beneficiaries of subsidized inputs (i.e., seedlings/fertilizers) will be
in conservation women.
increased and URB  Where infrastructure construction involves the employment of local labor at least
productivity enhanced 35% of this local labor will be reserved for local rural women with priority for the
in the forestry, poorer and more vulnerable women.
agriculture and rural  At least 40% of women are trained in commercial plantation, conservation
sectors farming, agro-forestry and sustainable forest management.
Components 3 & 4:  Gender Specialist included in production of training modules and establishing
River basin and trainers’ pool.
watershed  Gender sensitive training material in local dialects to be prepared in close
management capacity consultation with beneficiaries (avoiding gender stereotype materials)
and related governance  NPCO and Project Director responsible for overseeing GAP implementation and
mechanisms reporting on gender related achievements in quarterly progress reports to ADB.
strengthened and  Implementing agencies to appoint project staff as gender focal point responsible
Project management for monitoring GAP implementation and report gender related achievements and
and support services constraints to NPCO.
delivered  TOR of all consultants will include responsibilities to ensure GAP
implementation as related to their work.
 Gender-sensitization training carried out as part of project orientation, for all
levels of staff, consultants, contractors, and facilitators.
 Both female and male staff given equal opportunity to participate in non-gender
related training and capacity development programs.
 A national social development/gender consultant to be recruited to (i) build
capacity of project management units across levels, project staff and facilitators
in gender responsive design and analysis; (ii) preparation of gender sensitive
indicators; and (ii) preparation of checklists for evaluation of gender
responsiveness of proposed subprojects.
 Facilitate access to health, sanitation and credit facilities for women through
cooperation with other agencies.
 Sex-disaggregated indicators to be established for project performance M&E
system; monitoring will be on-going to ensure activities are effectively carried out
and targets reached; progress reports to include gender-related achievements
and constraints.
 Mid-term review Mission to assess gender related achievements and constraints
230
Appendix 9
to GAP implementation and propose adjustments for better project performance.

DENR = Department of Environment and Natural Resources; GAP = gender action plan; LGU = local government
unit; M&E= monitoring and evaluation; NCIP = National Commission on Indigenous Peoples; NPCO = National
Project Coordination Office; NGO= nongovernment organization; PES = payment for environment services; TOR=
terms of reference; URB = upper river basin.
231
Appendix 11
APPENDIX 11. SUGGESTED REPORT FORMATS
Suggested Loan Status Report Format
Year 1, Suggested Format
Budget Items Actual Expenditures
First Quarter
Quarterly total Actual Expenditures
Second Quarter
Third Quarter
Fourth Quarter
Quarterly Total
Yearly Total
Explanation for variances:
232
Appendix 11
Year 2, 3 and 4, Suggested Format
Variance
Budget Items Actual Expenditures (Positive or Negative)
First Semester
Semi-Annual Total
Second Semester
Semi-Annual Total
Grand Total
Explanation for Variance
233
Appendix 12
APPENDIX 12. SUGGESTED FORMATS FOR PROGRESS, STATUS AND COMPLETION

REPORTS
Suggested Formats for Progress, Status and Completion reports
Quarterly Progress Report
Component Title: (e.g., Land Use Assessment and Planning)

Year_______, Quarter ______
Specific Activities Problem/s Action/s

Objective(s) Undertaken Encountered Taken
Some Examples:
 Supportive policy and

regulatory framework in
place
 River basin “indicative

development plans” and
watershed management
plans adopted in four
Project sites covering 1.13
million ha in total
 88 Watershed
management and
investment plans
established
Risk Assessment Suggested Risk Management Mitigation

Actions
Integrative Narrative:
Conclusions and Recommendations for Next Implementation Quarter:
234
Appendix 12
SUGGESTED FORMAT AND GUIDELINES FOR THE PREPARATION

OF SEMI-ANNUAL OR ANNUAL REVIEW REPORTS
TABLE OF CONTENTS
I. INTRODUCTION
II. DESCRIPTIION OF CONTENT
A. Summary
B. Technical/project components
C. Financial
D. Management and Operation
E. Other Miscellaneous Matter
III. OTHERS
IV. CONCLUSION
235
Appendix 12
I. INTRODUCTION
1. Semi-annual Review Reports on the implementation of the Project should be prepared

and submitted to the Executing Agency and ADB, with copies to Project Steering Committee, six
months after inception workshop and six months thereafter during the first year of Project
implementation. Annual review reports, however, shall be submitted on the succeeding years
following fiscal year of Project implementation. Such review reports may take this format
comprising the following parts:
A. Summary
B. Technical/project components
C. Financial
D. Management and operation
E. Other Miscellaneous Matters
II. DESCRIPTION OF CONTENTS
2. The following paragraphs illustrate and highlight the type of information the ADB would
like to receive on a semi-annual basis on the implementation of the Project and the operation of
the Project facilities.
A. Summary
3. This part should contain a summarized version of the Project implementation status for
immediate and ready reference. It should analyze original and revised schedules and actual
achievements, shortfalls in terms of physical and financial targets and accomplishments, both
during the reporting period and up to the next reporting period (preferably in terms of broad
components of identifiable physical elements). It would also contain conclusions about the
viability of the original (as indicated in the JFPR Paper) cost estimate and expected date of
completion of the Project.
B. Project components
4. The purpose of this part is to provide information on significant physical activities, which
took place during the reporting period with an assessment of progress achieved and a
projection of progress expected to be achieved in the next reporting period. This should contain
information at least in the following aspects:
 Physical works accomplished during the reporting period

 Comparison of the actual progress of activities as at the end of each reporting
period with that of the original forecast
 Changes in the original/revised plan and schedules or deviations therefrom (both
actual or expected), except that changes requiring ADB’s approval should be
reported to ADB immediately and subsequently mentioned in the semi-annual
report
 Other changes, modifications, deviations or events which affected physical
progress during the reporting period which are likely to affect project
implementation in the nest reporting period
 The expected dates of completion of major components (physical elements) of the
236
Appendix 12
Project
5. Progress in each Project components should be covered.
 Measures taken or planned to correct factors responsible for delay during the
reporting period or which are likely to affect physical progress in the future
 Any delay or expected in the delivery of services and activities
 Any unusual occurrences affecting the progress of the Project components
C. Financial
6. The annual financing plan for the Project and achievements in financial terms during the
reporting should be supported by appendix/table. The details should at least covet the following:
Amount allocated for the Project $____________

Amount approved by the EA in the annual budget $____________
Amount utilized to date $____________
7. A review of actual achievements during the reporting period and revisions of projected
dated and amount in respect of contracts yet to be signed and activities yet to be done, with
brief reasons for revisions should be made.
D. Management and Operation
8. This part meant to be descriptive and should highlight, among others:
 Actual or prospective changes in the organization of the Executing Agency and

NPCO
 Status of the project office
 Problems encountered, and measures taken
 A statement of the progress of such other activities, i.e. coordination with NGOs
E. OTHERS
9. Wherever applicable, and if possible, the semi-annual progress report, as designed

should be supplemented by the following graphs: (i) scheduled and actual accomplishment of
the Project on overall basis with reference to accomplishments in percentage of the Project
duration by months; (ii) scheduled and actual expenditures in terms of total Project cost and the
Project duration by months; (iii) status of disbursement (scheduled and actual) relating to the
Project cost and the Project duration.
III. CONCLUSION
10. The format of the Project and guidelines enunciated above are for guidance only and
should be adjusted keeping view of the implementation status.
237
Appendix 12
Project Completion Report

(Suggested Format)
Project Component: ______________________________________________________

(Land Use Assessment and Planning)
Specific Objectives Specific Interventions Outputs and Results Integrative

Narrative
Assessment
A. Supportive policy (1) Amendments to RA 7160

and regulatory (Local Government Code)
framework in place
(2) Adoption of local zoning
ordinances
B. River basin (1) Preparation of land use

“indicative development maps and zones using GIS
plans” and watershed technologies
management plans
adopted in four Project (2) Conduct stakeholders’
sites covering 1.13 dialogues
million ha in total;
C. 88 Watershed (1) Assessment of sub-Project

management and sites
investment plans
established (2) Preparation of detailed
technical design of the
selected sub-Project sites
including management and
investment plans
238
Appendix 13
APPENDIX 13. SAMPLE FORM OF AUDITOR’S OPINION
IMPREST ACCOUNT
We have examined the Statement of Imprest Account of ADB (loan number and title), for the period
_______________ up to ______________ pursuant to the Loan Agreement signed between the
Government of the Philippines and The Asian Development Bank on _____________ 201__.
Our examinations were made in accordance with generally accepted auditing standards emphasizing the
adequacy and completeness of the supporting documents of the Imprest Account and other auditing
procedures, as we considered necessary in the circumstances.
In our opinion, the Statement of Imprest Account and supporting documents and information submitted
with them can be fairly relied on to support the application for reimbursement/payment in accordance with
the Bank’s requirements as set out in the Loan Agreement.
_________________ _________________
Signature/s and Date Signature/s and Date
239
Appendix 14
APPENDIX 14. MATRIX OF INREM COMMUNICATION PLAN
Phases & Communication Plan Intended Communication strategies, Implementing

Targets Success Criteria
Components Objectives Stakeholder channels Unit
Component 1: Develop manuals, hand- Provincial & Face-to-face communication Workshops/ Workshop DENR-RO
River Basin/ outs on land use municipal LGUs (Workshops and meetings) meetings documentation
Watershed assessment & zoning documentation completed
Management Document URB MP Select community Mediated communication Publications & other # of publications and DENR-RO
and workshops & package representatives [Publications (e.g. manuals IEC materials IEC disseminated
Investment results on land capability
Planning classification and zoning,
and on developing URB
MPs; packaged URB MPs,
etc.)]
Promote the URB MPs to Media, URB Press releases, Community Popular articles, # of articles published, LGUs and/or
generate support for stakeholders newsletter, Community Presentations/ posted or printed, No. community reps
implementation meetings briefings of meetings
Component 2: Enhance understanding All stakeholders Appropriate technical Extension materials No. of materials NPCO, Key
Smallholder & and skills in effective extension materials and IEC and IEC developed disseminated NGAs
institutional protection and related Consultants
investments in activities SUCs, Regional IEC on IPRA, FPIC, NCIP
conservation R&D consortia ADSDPP etc.
increased and (OSIS & FITS
URB centers), media
productivity Enhance community Community Tri-media info campaign Hand-outs Info campaign PPMO, MLGUs
enhanced in participation in watershed stakeholders implemented
the forestry, protection brigades Community briefings IEC disseminated DENR-CO & RO
agricultural & Briefings conducted PENRO,
rural sectors. CENRO
Disseminate information Farmers in target IEC on best practices IEC developed # of materials MLGUs PPMO,
on appropriate models for areas disseminated DENR
commercial forest-based Media, SUCs, Field days Media conferences DENR RO,
investments Regional R&D conducted PENRO,
consortia (OSIS & CENRO
FITS centers)
Promote investments in Potential investors Packaged investment Investment briefs or # of IEC disseminated MLGUs PPMO,
forest-based ventures with portfolios investment DENR
commercial potential packages developed # of initial offers DENR RO,
PENRO,
240
CENRO
Develop a Technical PPMO Workshop/ meeting Technical Extension Plan developed, and PPMO
Extension Communication DENR RO, Consultation Com Plan implemented DENR RO,
Plan PENRO, CENRO, PENRO,
Relevant NGAs, CENRO,
URB stakeholders Relevant NGAs
Equip implementers with PPMO Publication Program brief and Publication DENR RO
information on guidelines Implementing disseminated PENRO,
for implementation guidelines CENRO,
Relevant NGAs
Promote relevant Farmers in target IEC on best practices IEC developed # of materials MLGUs PPMO,
technologies and best areas, Media, disseminated DENR CO &
practices SUCs, Regional RO, PENRO,
R&D consortia CENRO
(OSIS & FITS
centers)
Inform stakeholders of URB stakeholders Info campaign Radio clips, posters Radio clips MLGUs
recipient target areas on developed, broadcasted, Posters
activities to be/being Community developed, Briefings
undertaken in the Briefings conducted
Component
Components Develop an integrated All program Appropriate communication Integrated INREM Plan developed & All stakeholders
3 & 4: River NRM Communication Plan stakeholders strategies and channels Communication implemented
basin & Develop appropriate IEC Plan M&E at strategic points
watershed on component messages of plan implementation
management for target audiences
capacity & (LARP, IPDP, GAP)
related Develop report & All implementers Meetings Program report and Report & NPCO
governance documentation documentation documentation formats
mechanisms formats/forms for program formats developed & used
strengthened activities
and Project Set and disseminate Communication Milestones set,
management communication M&E and M&E milestones disseminated & adhere
& support disclosure milestones for to
services program activities
delivered Enhance understanding All stakeholders Appropriate technical Extension materials # of materials NPCO, Key
and skills in effective extension materials and IEC and IEC developed disseminated NGAs
protection and related Consultants
241
Appendix 14
activities SUCs, Regional IEC on IPRA, FPIC, NCIP
R&D consortia ADSDPP etc.
(OSIS & FITS
centers), media
Inform major actors and Government Conferences, meetings, 1 Info campaign # of specific audiences DENR and other
stakeholders about the (DENR) and tri-media, press releases, reached CO levels
adjustments made to technical publications, web releases Partnerships with Info dissemination through the
current policy and the organization other institutions partnerships forged NPCO and multi-
impacts, if any, of these counterparts, (media/ LGUs) agency RTWG
adjustments on current NGOs, media, and/or individuals
processes LGUs for info
dissemination
Publications and other IEC # of Publications and IEC
materials disseminated
Develop appropriate training All field target groups CNA/TNA, Training assistance Modules, Training materials # of modules/ training materials NPCO, LGUs Trainers
modules and materials produced pool, NGAs
Document trainings and package Trainers pool (& future Training documentation Documentation # of trainings documented Trainers pool
training evaluation results users of training
materials)
Validate/revise modules/training NPCO Modules LGUs
materials
Training materials # of modules/training materials NPCO
validated and revised
242

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Project Administration Manual

Project Number: 41220

Republic of the Philippines: Integrated Natural

ADB = Asian Development Bank

1. The Integrated Natural Resources and Environmental Management (INREM)1 Project

d. Output 4: Project management and support services delivered. The project

II. IMPLEMENTATION PLANS

A. Project Readiness Activities

10 Project Administration Manual Agreed

In LGU-involved projects (for pre-

Yr 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Yr 8

1. River basin and watershed m anagement plans established

1. NPCO design and establish GIS-based database for performance monitoring,

4. Project Management and Support Serv ices deliv ered

7. Communication strategy key activ ities

A. Project Implementation Organizations – Roles and Responsibilities

 Project specific  The NPCO will be based at the DENR-Forest

 Watershed  Coordinate the implementation of rural

Line Function Technical Assistance, Advisory & Coordination

Table 1: Project Investment Plan

18. IFAD is expected to provide a $20 million loan (approximately equivalent to

Expenditure Accounts Project Cost Sum m ary (P '000) ($ '000) % Total

I. Investm ent Costs

I. Investm ent Costs

ALLOCATION AND WITHDRAWAL OF LOAN PROCEEDS

CATEGORY ADB FINANCING BASIS

Total Amount Allocated for Percentage of ADB Financing

ALLOCATION AND WITHDRAWAL OF GRANT PROCEEDS

CATEGORY ADB FINANCING

Amount Allocated for Percentage and Basis for

ADB (loan), IFAD (loan), GEF (grant) CCF (grant)

Government of the Philippines

Department of Finance (Treasury)

$20.6 million $93.31 million ($74.2 ADB loan,

Department of Environment and Natural

Certification of block grant

Source: Asian Development Bank

A. Financial Management Assessment

1. Assessment of Executing Agencies and LGUs

38. Based on reviewed financial information of LGUs, maintenance of rural infrastructure

42. Subprojects, to be designed during implementation, will be selected according to the

46. Funding/disbursement for subprojects approved in accordance with the preceding

A. Assessment of Procurement Capacity

74. To prevent delays in project implementation due to procurement, advance contracting

C. Procurement of Goods, Works and Consulting Services

83. All consultants including nongovernment organizations (NGOs) will be recruited

methods-loan.asp; http://www.adb.org/Consulting/ICS-Contract-Loan.pdf; http://www.adb.org/Documents/Manuals/

1. Process Thresholds, Review and 18-Month Procurement Plan

a. Project Procurement Thresholds

Procurement of Goods and Works

b. ADB Prior or Post Review

Procurement Method Prior or Post Comments

d. Consulting Services Contracts Estimated to Cost More Than

Contract Advertisement International or

e. Goods and Works Contracts Estimated to Cost Less than $1 Million

Satellite Images & Data 716.0 2 NCB

2. Indicative List of Packages Required Under the Project

Total packages 117,638.0

d. Price of Bidding Document

h. Anticorruption Provisions in Bidding Documents

j. Single Bid Submission

m. Member Country Restrictions

102. In accordance to ADB procurement guidelines, contracts costing less than

105. In support to the national government’s employment generation program and in