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 The World Bank Group

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December 2004

The Philippines The Philippines

Environment Monitor 2000 Environment Monitor 2002
presented snapshots of the on air quality.
general environmental trends
in the country. The Philippines The Philippines
Environment Monitor 2001 Environment Monitor 2003
on solid waste management. on water quality.

The World Bank Group seeks to help the Philippines improve the lives of its citizens through sustainable economic
growth and greater social inclusion. Fiscal stability (in the short term) and public institutions that serve the
common good (in the medium term) are critical to these objectives. Our strategy is to support Islands of Good
Governance–those government agencies, local governments, and dynamic sectors in the Philippines that demonstrate
how improved accountability and service delivery will lead to better economic and social outcomes. We help to
expand these successful experiences and thus stimulate a cycle of more effective, transparent and responsive public
institutions, fiscal stability, sustained economic growth and poverty reduction, and wider sharing of development
benefits, especially among the poor. Our vision is that the Philippines will truly become the Islands of Good
Governance.
This report is a product of the staff and consultants of the International Bank for Reconstruction and
Development / The World Bank. The findings, interpretations, and conclusions expressed in this report does not
necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent.
The World Bank does not guarantee the accuracy of the data included in this report. The boundaries, colors,
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TABLE OF CONTENTS

Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i
Acknowledgements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ii
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iv
Environmental Quality at a Glance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v
Abbreviations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii

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

GREEN ENVIRONMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Land Use Classification. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Biodiversity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Resource Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Legislation and Institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
BROWN ENVIRONMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Solid Waste Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Air Quality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Water Quality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Mining Related Pollution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Legislation and Institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
BLUE ENVIRONMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Coastal and Marine Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Legislation and Institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
GLOBAL ENVIRONMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
CHALLENGES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

Relevant Websites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Philippines at a Glance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
FOREWORD

T
he Philippine archipelago is home to a rich diversity of natural resources, from mangroves to seagrasses,
to endemic types of flora and fauna. Yet, population growth and economic development have created
pressures on many of these resources causing declines in forest cover, soil fertility and fish catches.
In addition, the quality of life in crowded, often unplanned urban areas has also deteriorated as a result of
increasing levels of air, water and soil pollution.

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

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

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

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

Maria Teresa Serra Joachim von Amsberg

Sector Director, Environment and Social Development Country Director, Philippines
East Asia and Pacific Region East Asia and Pacific Region
The World Bank The World Bank

i
 PHILIPPINES ENVIRONMENT MONITOR 2004
ACKNOWLEDGEMENTS

T
his document was prepared by a team composed of staff and consultants in the East Asia Environment
and Social Unit, Washington DC, and the Philippines Country Office in Manila. Team members who
prepared the report are Giovanna Dore, Cesil Gomez, Elisea (Bebet) Gozun, Tanvi Nagpal, Jitendra
Shah (Task Team Leader), Josefo Tuyor, and Maya G. Villaluz, under the guidance of Maria Teresa Serra,
Magda Lovei (EASES) and Joachim von Amsberg (Philippines Country Office). The document was peer-
reviewed by Kulsum Ahmed, Dan Biller, Julien Labonne, Warren Evans, and Keith Robert A. Oblitas, World
Bank. Rita Lohani and Adam Pollack provided assistance with research and fact checking. James T. Cantrell
designed the cover and Nona Sachdeva coordinated production. Jose Eric Maglanque, Leonora Gonzales,
and Anissa Tria are responsible for dissemination.

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

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

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

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

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

People’s Day at the DENR Office.

Source: DENR-Public Affairs Office.

iii
 PHILIPPINES ENVIRONMENT MONITOR 2004
EXECUTIVE SUMMARY

T
he 2004 Philippines Environment Monitor updates progress in natural resources management;
biodiversity conservation; solid waste, air and water pollution control; and coastal and marine
management. Since the publication of the first Philippines Environment Monitor in 2000, the
Government of the Philippines has adopted overarching legislation aimed at improving air and water quality
in the country, and preserving precious, often-threatened, environmental resources. New environmental
and economic policies have been put into place. Greater civil society participation and dialogue, and a more
engaged private sector, are evidence of a paradigm shift in environmental governance, with increased
importance being accorded to local-level decision-making and implementation.

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

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

While each sector faces specific problems, the general challenges to environmental management are
cross-cutting and relate to environmental governance, policy-making and implementation. The following
are key challenges:
1. Long-term national commitment to environmental protection to reverse degradation.
2. Encourage greater public awareness and involvement to create political will.
3. Increase private sector participation for environmental services to reduce capital investment by
the Government.
4. Improve coordination and capacity to harmonize the decentralization process.
5. Modernize monitoring, enforcement, and public disclosure to ensure compliance.
6. Streamline bureaucratic processes to encourage investment in natural resources.

iv
ENVIRONMENTAL QUALITY AT A GLANCE

BROWN ENVIRONMENT
Air Pollution in Metro Manila (MM) and urban centers
Ambient TSP level in MM, Declining particulate concentrations in urban centers
Cebu, Davao, Baguio but annual averages still exceed national standards.
Non-conventional and area sources like biomass
burning and re-suspended dust need controlling.
Number of highly polluting Declining number of polluting vehicles and rising
vehicles on Metro Manila production of cleaner motorcycles and vehicles. Rapidly
roads rising vehicle population points to urgent need for
public transport and transport management.
River and coastal water quality
% population with access to Access to sanitation rising slowly. Urban access to piped
sanitation and sewerage sewerage in Metro Manila is very low (8%) as the
investments in sewerage are inadequate.
Contamination of Total coliform contamination increasing with domestic
groundwater wastewater accounting for majority of the pollution
load.
% industrial waste treated More waste treated but the total production as well as
illegal solid, toxic/hazardous waste, dumping is rising.
Solid hazardous waste
Solid and hazardous waste Total waste generation is rising with population while
generated services are not keeping up with the demand.
% of waste recovered for More LGUs practicing ecowaste management. Level of
recycling composting and recycling is rising.
% of residual waste Open dumping and burning continue as main means of
disposed in environmentally disposal.
sound manner
Mining Pollution
No. of closed / abandoned Twenty sites surveyed for rehabilitation and
mines revegetation.
Mercury levels in surrounding Mercury pollution resulting from artisanal mining. Better
and downstream water management of mining sites and handling of wastes
bodies needed.
GREEN ENVIRONMENT
Forest Cover
% of forest cover Total forest cover improving but forest protection and
rehabilitation needs expanding.
Annual rate of reforestation Annual reforestation rate slowing in recent years.
Low Priority Medium Priority High Priority

v

ENVIRONMENTAL QUALITY AT A GLANCE
Open access areas
Critical habitats and biodiversity
Number of rare, threatened,
and endangered wildlife
species
Soil erosion and flooding
Yield / hectare (mt/ha)
Water Supply
Water supply (in per capita
availability / year)
Water demand in major cities
(in MCM / year)
% of population with access
to improved water source
Watersheds
% of watersheds considered
degraded
Coastal and marine resources
Mangrove cover
% coral reefs in excellent
condition
Sea grass cover
Fishery production from
municipal waters
ODS consumption (in metric
tons)
Low Priority
PHILIPPINES ENVIRONMENT MONITOR 2004
Forest areas under management or co-management
increasing.
One of the highest biodiversity loss rates in the world.
Shrinking habitat along with commercial exploitation
inspite of more area under protection.
Increasing soil erosion and flooding. Deforestation and
land conversion continue to add to the problem.
Static yield / hectare increasing despite inputs.
Deforestation from logging, natural disasters, and
residential development.
National water demand expected to outstrip supply.
Critical seasonal shortages worsening as demand
continues with population and economic growth.
Steady improvements in access to improved water
source.
Minor improvements noted.
Mangrove cover increasing but threats continue.
Fast track reversion and rehabilitation of abandoned
fishponds and saltbeds to mangroves.
Destructive fishing, construction, solid and hazardous
waste disposal continue to threaten coastal and marine
resources. More active participation of LGUs and
communities needed.
Reclamation and pollution continue to threaten
seagrasses. IEC on value of seagrasses, coral reefs and
mangroves needed.
Production going down with even increased fishing
effort. Delineation of municipal waters needs to be
completed with LGUs effectively managing same.
ODS consumption in the Philippines declined to 1422
MT by 2003, ahead of international commitments.
Medium Priority High Priority
vi
ABBREVIATIONS & ACRONYMS

ADB Asian Development Bank MARPOL International Convention for the Prevention
ASEAN Association of Southeast Asian Nations of Marine Pollution from Ships
BFAR Bureau of Fisheries and Aquatic Resources mcm million cubic meters
BOD Biochemical Oxygen Demand mg/l milligrams per liter
CAA Clean Air Act MGB Mines and Geosciences Bureau
CBFM Community-based forest management MMDA Metro Manila Development Authority
CDM Clean Development Mechanism MT Metric ton
CFC Chlorofluorocarbons MWSS Metropolitan Waterworks and Sewerage
System
CITES Convention on International
Trade in Endangered Species of Flora and NBSAP National Biodiversity Strategy
Fauna and Action Plan
CLASP Community Livelihood NGO Non-governmental organization
Assistance Special Program NIPAS National Integrated Protected Areas System
CMS Convention on the Conservation NSWMC National Solid Waste Management
of Migratory Species of Wild Animals Commission
CO Carbon monoxide NWRB National Water Resources Board
DA Department of Agriculture O3 Ozone
DAO Department Administrative Order ODP Ozone Depleting Potential
DENR Department of Environment and Natural ODS Ozone Depleting Substance
Resources OSPAR Oil Spill Preparedness and Response
DO Dissolved oxygen OSRAP Oil Spill Response Action Plan
EMB Environmental Management Bureau PAB Pollution Adjudication Board
EMPOWER Environment Management with Public and PAMB Protected Areas Management Boards
Private Sector Ownership
PBE Philippines Business for the Environment
EO Executive Order
PBSP Philippines Business for Social Progress
EPIC Environmental Management Programme for
Industry Competitiveness PCF Prototype Carbon Fund
ESWMA Ecological Solid Waste Management Act PD Presidential Decree
FAO Food and Agriculture PET Polyethelyne terapthalate
Organization PHP Philippines Peso
FMB Forest Management Bureau PM10 particulate matter lesss than 10 microns
FTAA Financial and Technical Application PO Peoples’ Organization
Agreement POP Persistent Organic Pollutants
GDP Gross domestic product RA Republic Act
GEF Global Environment Facility RAMSAR Ramsar Convention on Wetlands
GOP Government of the Philippines SWM Solid Waste Management
ICLARM International Center for Living Aquatic TLA Timber License Agreement
Resources Management
TSP Total Suspended Particulates
IPAF Integrated Protected Areas Fund
UNCLOS United Nations Conference on
ITTO International Tropical Timber Organization the Law of the Sea
JICA Japanese International UNDP United Nations Development Programme
Cooperation Agency
UNFCC United Nations Framework for Climate
km2 square kilometer Change
LGU Local Government Unit USAID United States Agency for International
LISCOP Laguna de Bay Institutional Strengthening Development
and Community Participation Project WBCP Wild Bird Club of the Philippines
m3 cubic meter
Exchange rate 1USD = 56.16 Philippine peso, November 20, 2004

vii
 PHILIPPINES
PHILIPPINE ENVIRONMENT MONITOR 2004
ECONOMIC GROWTH AND THE ENVIRONMENT

Over the years, economic growth has paid rich Table 1. Growth and Poverty Reduction in Selected
dividends to the Philippines. Infant mortality rates Asian Countries
have fallen, life expectancy has grown, and increasing Growth (% p.a.)
Poverty Reduction
(headcount index, in %)
numbers of Filipinos have access to education and GDP Per
COUNTRY
diverse employment opportunities. However, such Growth Capita $1/day $2/day
Growth
development has been accompanied with significant 1999- 1999- 1998 2003 1998 2003
degradation of natural resources and declining 2003 2003
Philippines 3.9 1.7 12.1 11.1 45.2 44.1
environmental quality. Poor water-, land-, and air Indonesia 3.4 2.1 12 6.2 65.1 50.1
quality not only exact a toll on overall quality of life Malaysia 4.8 2.5 < 0.5 < 0.5 12.9 8.7
Thailand 4.7 4.0 3.3 1.6 34.1 23.7
and human health, but also jeopardize future
Korea 6.4 5.7 < 0.5 < 0.5 < 0.5 < 0.5
economic growth. China 7.9 7.1 16.1 11.7 49.8 34.8
India 5.2 3.6

Economy. After growing very rapidly in the mid- Source: World Bank, Briefings for the Philippines, 2004.

1990s, the Philippine economy has been outperformed

by its neighbors, especially in terms of annual Figure 1. Gross Domestic Product by Sector,
economic growth rates and declining incidence of 2003

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

12.3%
from Vietnam, China, and India. In addition, in the Fishery
2.2%
2002–2003 Global Competitiveness Report released Forestry
by the World Economic Forum, the Philippines 0.1%

slipped 13 places, to number 61 (measured by growth Other

Service
and microeconomic competitiveness), out of 80 39.3%
countries. Low ratings for public institutions,
Manu-
technology index, and quality of the national business facturing
environment contributed to its overall slide. 22.9%

The Philippines economy remains acutely dependent Other Industry

on natural resources. The rural sector employs some
11.2 million people; and is a substantial contributor
to national gross domestic product (GDP; Figure 1).
In 2003, it generated 632 billion Philippines pesos
(PhP) through agriculture, fisheries, and forestry-
based industries. The rural sector grew at an average
of two percent per year between 1988 and 2002; most
of this increase was in agriculture (12.5 percent of
GDP) and fisheries (2.2 percent of GDP). Tourism
(foreign visitors and overseas Filipinos) has also been
a significant contributor to GDP (nine percent in
2002), not only in terms of foreign exchange, but also
of employment growth, and ecotourism. In 2003, the
mining sector contributed 1.52 percent of GDP.
Trade
13.8%
13.8%
Total: PhP 4,359 billion
Source: National Statistical Coordination Board.
While the country is richly endowed in mineral
resources,1 the role of mining has been declining over
the last decade due to a soft international market
with low world prices for principal metal products,
limited capital for needed exploration work, strong
1
The Philippines has an estimated endowment of 10.5 billion
metric tons of metallic (mineral) resources, and 81.2 billion metric
tons of nonmetallic ones.

1
anti-mining sentiments, and the constitutional
challenge to the Philippine Mining Act of 1995.2
Forty-four percent of Filipinos still earn less than two
dollars per day (Table 1), and about two-thirds of
them are engaged in activities that rely heavily on
environmental and natural resources. Approximately
20 million people reside in and around forests, and
60 million live within 100 km of the Philippine
coastline. Evidence, mostly anecdotal, suggests that
poor people, and those whose income and welfare are
more tightly linked to environmental and natural
resources, are disproportionately affected by the
continuing declines in environmental quality. Poor woman and child.
Source: Authors.
Coastal and forest communities, and residents of
poorer areas of municipalities and rural barangays,3
which are under-served in the provision of urban Figure 2. Public Perception of Air Pollution
environmental services, are worst off. They also bear
the highest income losses due to sickness and medical
expenses related to water and air pollution.
The annual economic losses caused by water pollution
are estimated at PhP67 billion (US$1.3 billion). These
include PhP3 billion for health, PhP17 billion for
fisheries production, and PhP47 billion for tourism.
In 2001 alone, the health costs of particulate (PM10)
pollution in the four largest cities were estimated to
be more than US $400 million. Losses due to
environmental damage in terms of compensation
and claims are also on the rise in the Philippines.4
Surveys suggest that citizens sense official apathy
toward their situation. For example, a perception
survey on air pollution, conducted in 2001 by the
Philippine Information Agency, revealed that more Source: Knowledge, Awareness and Practice Survey in the Metro Manila
Airshed, DENR and Philippine Information Agency, 2001.
than 72 percent of Manila’s residents were alarmed
by air pollution and 73 percent said they were not
aware that the government was taking any actions Legal and Institutional Framework. The
to control it (Figure 2). ecological, economic, and social importance of sound
environmental management is no longer a matter of
2
See also Brown Environment Section. debate in the Philippines. Successive administrations,
3
A barangay is the smallest local government unit in the Philippines. the private sector, and civic groups have collaborated
4
See also Water Pollution Section.

2

in enacting such important legislations as the Clean
Air Act in 1999, Ecological Solid Waste Management
Act in 2000, and Clean Water Act in 2004. The
use of economic instruments such as user-fees,
environmental taxes and levies is also on the rise.
Numerous mechanisms have been put into place
to strengthen stakeholder participation in decision-
making, and the role of non-governmental
organizations (NGOs) and local government units
(LGUs) has been expanded.
Despite such legal and policy responses, environmental
degradation continues and the government has yet to
implement an effective system of environmental
governance. Some of the reasons cited for ineffective
environmental management in the last decade include:
(1) unclear distinction between responsibilities of the
Department of Environment and Natural resources
(DENR) and other government agencies and local
governments, and the perception among local
government officials that they are being required to
fulfill unfunded mandates, despite limited resources
and personnel; (2) lack of routine environmental
monitoring, and poor use and dissemination of
environmental information, when it is available; (3)
weak enforcement of existing laws, owing to
inadequate financial and human capital and conflicts
of interest at the local level; (4) absence of land use
planning and zoning, and unclear property rights; and,
(5) lack of explicit environmental objectives/programs
in many agencies, and inadequate leadership of sector
agencies for sector-specific analysis of environmental
policies and investment options.
While the contributions of the private sector and
civic society groups have been recognized, there is
still a general public perception that environmental
management and protection are ultimately the
responsibility of the Government, and that it is not
doing enough to protect resources and reduce
pollution. In this sense, while the past five years have
PHILIPPINES
PHILIPPINE ENVIRONMENT MONITOR 2004
been marked by the passing of important legislation,
environmental management continues to remain
problematic, and the nature of the problems is largely
unchanged.
Public and Corporate Social Responsibility.
In 1996, the Government of the Philippines (GoP)
endorsed the Philippines’ National Agenda for
Sustainable Development for the 21st Century
(Philippine Agenda 21). Since then DENR and the
Department of Trade and Industry have stepped up
their efforts to build awareness of the importance of
sound environmental management practices within
the business community. The incorporation of
environmental provisions in the Magna Carta for
Small Enterprises, known as Republic Act (RA) No.
6977, and the launch of two programs, gave an even
stronger signal of the GoP’s willingness to promote
and support private sector participation in
environmental management. Private Sector
Participation in Managing the Environment
Program, and the Environmental Management
Programme for Industry Competitiveness, are two
programs sponsored by the GoP and the United
Nations Development Programme (UNDP).
Reforestation of the La Mesa Dam Watershed under the Bantay
Kalikasan Program of the ABS-CBN Foundation.
Source: Authors.
3

Corporate employees in coastal clean-up.
Source: DENR.
The good practices of leading companies build a base
for the behavioral change of others.5 In the last
decade, many companies have implemented measures
to address pollution, trying to ensure that their
operations do not compromise natural ecosystems.
In addition, some of these companies have initiated
and supported projects that contribute to wildlife
conservation, watershed reforestation, coastal resources
management, and river rehabilitation. Of particular
importance and visibility are the activities of the
Development Bank of the Philippines, and the Land
Bank of the Philippines, which began granting
preferential credit access to industrial enterprises
seeking financing for environmentally-sound
projects. The Philippine Environment Partnership
Program promotes mandatory self-monitoring and
compliance with environment standards, encourages
self-regulation, and provides for grant of incentives
and assistance to industries.
Role of Civil Society and NGOs. The Philippines
is home to a vibrant community of environmental
NGOs and civic groups. By 1995, the Securities and
Exchange Commission had registered 60,000 non-
stock, non-governmental institutions—50,000 NGOs
5
International Finance Corporation, 2002.
4
and 10,000 Peoples’ Organizations (POs). The
number of development-oriented NGOs is probably
closer to 3,000–5,000, and of these, a small percentage
are devoted solely to the environment. These groups
have been very active in establishing partnerships
with businesses and the Government to raise
awareness about environmental stewardship. Since
1992, The Philippines Business for the Environment
(PBE) has been helping the Filipino industrial
sector to address its environmental concerns and
impacts. It has been successful in making
environmental information available to industry.
Most notable among PBE’s activities include the
Industry Waste Exchange Program, which matches
companies generating wastes with companies that
can re-use them; the program for Environmental
Management with Public and Private Sector
Ownership, which aims at improving industry
access to integrated environmental information;
Environmental Management Programme for
Industry Competitiveness. Component on the
institutionalization of the environmental manage-
ment systems in small and medium enterprises;
and, the preparation and adoption of Business
Agenda 21 by 83 Industry Associations.
Driven by civic pressures for a better living
environment, and the awareness that good
environmental practices promote more cost-efficient
business operations, the Philippine Business for
Social Progress (PBSP), has become the nation’s
largest and most influential business-led foundation.
The Foundation focuses on socially- and
environmentally-conscious business development.
Through the Corporate Social Responsibility Program
and its strong advocacy and education agenda, PBSP
encourages companies to take responsibility and
assume accountability for any adverse impact their
operations have on the environment.6
6
Private sector involvement in the Green, Brown and Blue sectors
is highlighted in subsequent sections.

Environmental Information. Reliable and
regularly-updated environmental data are essential
to good environmental policy. As civic groups and
businesses gain access to timely and accurate
information, they are able to stay better engaged in
the policy process, and exert pressure on their local
officials to implement laws and policies that are
already on the books. The Government has taken
steps to improve access to environmental information,
and recognizes the importance of public disclosure
programs. The DENR website contains links to
important environmental laws, decrees and
memoranda, as well as the latest environmental
trends. While such efforts are important, until local
governments themselves can produce, check and use
reliable environmental information, there will be
little improvement in enforcement.
The private sector has created information clearing
houses that provide resources on environmental
topics relevant to businesses. Organizations such as
PBE, a local partner of the World Business Council
One of the many beaches in the country.
Source: Authors.
PHILIPPINES
PHILIPPINE ENVIRONMENT MONITOR 2004
on Sustainable Development, and the Pollution
Prevention Roundtable not only provide important
environmental information but also help create links
between different enterprises that are looking for or
providing environmental services. Non-governmental
organizations, as well as bilateral and multilateral aid
agencies, also contribute to the development of the
knowledge base on the environment.
Environmental Champions. Concerned
individuals, governments and informal
organizations have also relied on local resources and
demonstrated a strong political will to become
pioneering champions of environmental protection.
Representing a cross-section of Philippine society,
they have addressed environmental issues such as
forest and biodiversity protection, coastal resource
management, and air pollution. Some of these
individuals and organizations have become widely
known, while others have remained unrecognized
outside their own communities.
5
GREEN ENVIRONMENT

Of the 52 percent of the country’s population that

lives in rural areas, 22 percent reside in or near forests.
A majority of these people rely on forest resources for
their livelihood, making sustainable land and forest
management a critically important challenge for the
Philippines. This section presents the major trends in
land and forest resources management in the country
over the past five to ten years. While there has been
some increase in forest cover owing to reforestation
efforts and natural regeneration, per capita forest
cover in the Philippines is still the lowest in Asia.
Moreover, the remaining primary or intact forests
remain under threat.
LAND USE CLASSIFICATION
Box 1. Reclassification of Pamilacan Island
Pamilacan Island is situated in the Province of Bohol.
The Island has a total land area of 140,766 hectares.
In 1927, it was an unclassified public forest according
to cadastral maps. However, a cadastral survey done in
1963 indicated that it already had 239 lots. Based on
this, DENR issued 84 Free Patents while Department of
Agrarian reform issued 183 Emancipation Patents (37.8
ha). With the DENR’s Anti-Fake Title Program in 1999,
78 Free Patents and 118 Emancipation Patents were
found to still be within the classified forestlands of the
island. Cancellation proceedings were thus initiated
in the courts. Considering that the area is almost fully
settled, a draft bill has now been submitted to Congress
to reclassify the island as alienable and disposable and
thus legitimize existing titles/patents of residents who
have long settled and tilled the area.
Source: DENR-Region 7.

Fifty percent or 15 million hectares of the total land is

Figure 3. Forest Cover by Region
classified as forestland, 47 percent of the land is (in ha), 2003
classified as alienable and disposable, while three
1,200,000
percent remains unclassified.7 It is now evident that
1,000,000
significant portions of land that had been classified as
800,000
(in hectares)

forests are no longer forested, and have been put to

600,000
use for agriculture or settlements (Box 1). Yet, such
land has not been reclassified. Also, despite stringent 400,000

laws, land continues to be converted from agriculture 200,000

to other uses. From 1988 to 2000, a total of 34,207 0

hectares of alienable and disposable land—an average

of 2,631 hectares per year—was converted from
NCR
CAR
Region I
Region II
Region III
Region IV a
Region IV b
Region V
Region VI
Region VII
Region VIII
Region IX
Region X
Region XI
Region XII
Region XIII
ARMM
agriculture to other land uses. Inaccurate information
on land classification not only impacts conservation
goals, but also leads to conflicts over ownership and Plantation
Closed Forest Open Forest Mangrove
Forest
management, ultimately serving as a disincentive
for protection. Source: DENR-Forest Management Bureau.

The forest cover for each region of the Philippines is
shown in Figure 3. In 2003, the Philippines moved to
the internationally-accepted classification system of
the Food and Agriculture Organization (FAO).
Consistent with this system, DENR now uses a total
of 19 categories and sub-categories8 under the general
heading of land use status, compared with nine in the
past. For example, instead of referring to primary
virgin and residual forests, the categories now used
are closed-canopy and open-canopy forests.

7 8
DENR-Forest Management Bureau, 2004. DENR-Forest Management Bureau, 2004.

6

Forest land. Forest cover had declined from an
estimated 21 million hectares or 70 percent of the
country’s total land area in 1900, to only 5.4 million
hectares or 18.3 percent by 1988. However, recent
official estimates, based on the 2002 satellite images
of the entire country (Figure 4), show the country’s
forest cover increasing to 7.168 million hectares or 24
percent of total land area in 2002. This forest cover is
broken down into 2.56 million hectares of closed
canopy forest, 4.03 million hectares of open canopy
forest, 247,362 hectares of mangroves, and 329,578
hectares of plantations. According to the Forest
Management Bureau (FMB), 91 percent of this forest
area has been validated on the ground. However,
estimates from other sources disagree with FMB. An
alternative estimate of 5.789 million hectares has
been published by FAO.9
The DENR attributes the rise in forest cover to
stronger public awareness about the value of forests,
especially after the Ormoc flashfloods in 1991. The
floods led to public pressure for reforestation, and
renewed reforestation efforts by national government
agencies, local government units, communities
(through the community-based forest management
program), and the private sector. Massive reforestation
efforts were also undertaken by the donor-supported
National Forestation Program and Forestry Sector
Program Loans. The overall success of these programs
compared to past reforestation efforts has been
attributed to the following factors:
(i) Shift in government policy from reforestation by
the administration, where individual upland
settlers were merely employed as daily workers,
9
FAO, 2001. The assessment was “largely based on information
provided by the countries themselves and a remote-sensing survey
of tropical countries, supplemented by special studies undertaken
by FAO.”
PHILIPPINES
PHILIPPINE ENVIRONMENT MONITOR 2004
to contract reforestation10 where upland settlers
are given three-year contracts to plant and
maintain an area. Communities now have a
greater incentive to ensure the survival of what
they plant, since they may eventually receive a
grant to manage these planted areas for 25 years;
(ii) The fact that 645,000 hectares of this forest cover
is found in privately titled lands; and
(iii) Stricter enforcement of the reforestation
requirements for various DENR licensees/lessees.
While the total amount of forest cover remains a
matter of some debate, there is widespread agreement
that the overall decline in forest cover over the past
three decades is alarming. Among 89 tropical
countries, the Philippines is one of 11 with the lowest
forest per capita (at 0.085 hectare/capita)11—and
most of its watersheds are considered degraded. Land
conversion is the principal cause of deforestation;
other causes include slash-and burn farming, illegal
logging, forest fires, pest infestations, and typhoons.
Land Degradation. Of the total land area, 76
percent faces some extent of degradation. Forty five
percent of the total arable land, and 66 percent of
non-agricultural land, have been moderately to
severely eroded, triggering the movement of
subsistence farmers to marginal lands to meet their
daily food requirement. Approximately 5.2 million
hectares are seriously eroded, resulting in 30-50
percent reduction in soil productivity and water
retention capacity. This situation predisposes degraded
lands to drought and other water availability problems.
10
An assessment of reforestation efforts in the 1980’s had shown
that survival rates are very low. One of the reasons was that local
communities hired to undertake the reforestation actually burned
the plantations so that they would again be hired by government
in the succeeding years.
11
Guiang, E.S., 2001.
7
 Figure 4. Land/Forest Cover Status, CY 2003

Source: DENR-Forest Management Bureau.

Note: Satellite images only capture higher density growth, it is difficult to see open forest areas.

8

Areas classified as having no apparent erosion are
mainly prime agricultural lands in Region III; while
35 percent of the total area of Regions IV, V, and VII
are characterized as slightly eroded. Moderate erosion
accounts for approximately 8,446 hectares or 28
percent of the country’s soil-eroded area; and these
are classified as marginal lands. Other types of soil
degradation associated with soil erosion are loss of
soil nutrients and organic matter, river erosion,
flooding, and water logging.12
From 1988 to 2000, there was a doubling in the
economic value of nutrient loss due to soil degradation
(from PhP635 million in 1988 to PhP1.16 billion in
2000). To compensate for this loss, outlays for
fertilizer have increased; from PhP41.7 million to
PhP154 million over the same period.13 Also, land
degradation has played an increasingly significant
role in the incidence of natural disasters in the
country during the past decade. The World Bank
values direct damage caused by disasters between
1970 and 2000 at PhP15 billion per year. In 2000
alone, damage to property due to flooding is an
estimated PhP1.67 million.
BIODIVERSITY
The Philippines is one of the world’s 18 “mega-
diversity” countries, which together account for between
60 and 70 percent of global biodiversity. It has also
been identified by the International Union for
Conservation of Nature (IUCN) as a biodiversity
“hotspot”—a country where biodiversity is
extremely threatened by deforestation, conversion,
fragmentation of natural habitats, unregulated
trade, and overall low environmental quality.
12
Bureau of Soils and Water Management, 2004.
13
National Statistical Coordination Board, 2003.
PHILIPPINES
PHILIPPINE ENVIRONMENT MONITOR 2004
Environmental Champion — WILD
BIRD CLUB OF THE PHILIPPINES
WILD BIRD CLUB
OF THE PHILIPPINES
A group of bird watchers started WBCP. Soon members
realized that the only way they could continue watching
the many birds in the country was to ensure the protection
of habitats. This led to the transformation of WBCP into
an advocacy group—identifying critical habitats and
raising awareness about the need for their protection.
Recently, some of the Club’s volunteers were part of
the scientific expedition that discovered an unknown
bird species—the Calayan Rail in Babuyan Islands in the
province of Batanes.
Through their efforts, and working in partnership with
other environmental groups, members have identified
about 100 bird species and their habitats within Metro
Manila. They organize bird watching trips, attend various
meetings, and set up exhibits to bring Philippine bird
biodiversity, and the threats to bird habitats, to the
public’s attention.
Source: Authors.
The 1997 National Biodiversity Strategy and Action
Plan (NBSAP) set forth concrete policy and
management measures for developing programs and
projects that would address pressing issues and
concerns in biodiversity conservation and
management. The NBSAP noted that the most
effective way to conserve biodiversity is to protect
habitats and strengthen the National Integrated
Protected Area System (NIPAS). It also listed 91
critically endangered species, 74 endangered, and 253
vulnerable species.
In 2002, an iteration of the NBSAP was undertaken
through the Philippine Biodiversity Conservation
Priorities Program. Integral to this program are five
strategic actions that the government needs to take to
9
 ensure that the biodiversity crisis is addressed.
Foremost is the need to enhance and strengthen the
Protected Area System. The program also recommends
the prioritization of 206 sites which would need to be
established under NIPAS, of which 132 sites overlap
with the 209 initial components of NIPAS.
A subsequent study in 2004 provides an empirical
examination of how, and to what extent, population
variables influence biodiversity and the environment.
The study also provides maps illustrating the
vulnerability of conservation-priority sites to socio-
economic and demographic pressures; and identifies
13 Conservation Priority Areas with an “extremely
high/urgent” index of priority. It recommends the
integration of population and socio-economic
dimensions in conservation strategies and programs
at the national and local levels.14
Illegal logging. Illegal logging has not ceased,
despite the logging-ban imposed in many parts of the
country (Box 2). A large volume of illegally-cut logs
and lumber is apprehended by DENR field personnel,
the military, NGOs, and other partners. The volumes
of confiscations were highest in 1996 (14,499 m3),
2001 (14,368 m3) and 2002 (12,957 m3). However, the
number of apprehensions and volume of logs and
lumber apprehended or confiscated are not very good
indicators of the extent of illegal logging and
poaching. A more reliable and scientific basis for
assessing illegal logging is needed.
Commercial logging. The number of Timber
License Agreements (TLAs) granted for commercial
logging (and allowable cuts) has continued to
decline—from over 137 in 1987 to 14 TLAs in 2004,
covering 566,589 hectares (with only six of these
actually operating). A total of 195 Integrated Forest
Management Agreements (covering 704,328 hectares),
14
Lasmarias, N.O. et. al., 2004.
10
Box 2. Illegal Logging in Isabela, 1988 – 2000
Isabela is the largest province in northern Luzon, with
a land area of 13,643 km2 and a population of nearly
1.3 million, settled mainly in the Cagayan river valley
in the eastern part of the Province. The western part,
mountainous and densely forested, is the location of the
395,500 hectares Northern Sierra Madre Natural Park.
This park is considered one of the Philippines’s most
intact and important protected areas. According to a
detailed field study carried out in 1997, illegal logging
and encroachment by small farmers are the main threats
to the park, which has 24,000 inhabitants.
The local furniture industry, with 13 cooperatives and
numerous shops, is the driving force behind illegal
logging in Isabela and the corruption that it engenders.
Narra (Pterocarpus indicus) is the timber of choice for the
furniture industry, but the species is increasingly rare and
is subject to a variety of DENR harvest restrictions. Thus,
industry buyers mainly rely on illegally cut sources provided
by small teams of loggers. Because such transactions are
illegal, the principals involved—middlemen, sawmills,
furniture makers, cooperatives, and the Cagayan Valley
Chamber of Furniture—must make regular payments to
a variety of civilian and military officials (including some
DENR community and provincial offices). The Isabela case
is unique only in that it has been so carefully documented.
An investigation of fraud in the awarding of integrated
forest management agreements (IFMA), for example,
concluded that “a widespread pattern of fraud in the
awarding of the agreements has resulted in rampant
tree-cutting in areas intended for forest protection.”
Source: World Bank, 2003.
and 1,635 Socialized Forest Management Agreements
(covering 41,872 hectares) have also been awarded.
The total allowable cut in 2003 for all these agreements
was around 880,000 m3, down from 4.3 million m3 in
1990 for TLAs alone.
Although the number of TLAs has declined,
encroachment and illegal extraction continue, and
upland areas remain threatened. Reports indicate
that the country now imports about 60 percent of the
wood and wood products it consumes. To address the
need for wood and wood products, classified
forestlands have been further delineated into
protection forests and production forests. Production

forests are to be offered to the private sector for
industrial tree plantations. Guidelines are now being
revised to streamline procedures, provide incentives,
and make industrial tree plantations more attractive
to the private sector. On the other hand, protection
forests are to be rehabilitated and protected under
co-management with LGUs and communities.
RESOURCE MANAGEMENT
Community-based forest management.
Expansion of community-controlled forests is one of
the main official strategies for reforming the once
TLA-controlled timber industry. The Community-based
Forest Management (CBFM) Program consolidated
the Integrated Social Forestry Program, Community
Forestry Program (Box 3), Coastal Environmental
Program, and the Ancestral Domains Program. For
the Government, CBFM represents a fundamental
shift from seeing forest dwellers as enemies who
destroy natural resources, to partners in the protection
of the forests (Box 4). However, the actual performance
of this program, in terms of forest protection and
health, has not been rigorously analyzed.
The 1990 Philippine Master Plan for Forestry
Development stipulated that 1.5 million hectares (54
percent of the remaining 2.8 million hectares of
secondary growth forest below 50 percent incline
slopes) would be placed under CBFM during the
1990s. In addition, current and potential open access
areas, estimated at 5.9 million hectares, were also
slated to be placed under community-based
management. A DENR plan for CBFM currently
envisions that nine million hectares of forest land—
30 percent of the country’s total land area—will be
placed under community management by 2020.
As of June 2004, there are 5,503 CBFM sites, covering
a total tenured area of about 4.9 million hectares. Of
these sites, 1,577 (1.5 million hectares) are covered by
agreements which contain resource management
PHILIPPINES
PHILIPPINE ENVIRONMENT MONITOR 2004
Box 3. Philippine-German Community Forestry
Project – Quirino
The Philippine-German Community Forest Project-Quirino
or CFPQ started in 1988 as a Social Forestry Component of
the Philippine-German Dipterocarp Forest Management
Project. The project was renamed as Philippine-German
Integrated Rainforest Management Project in 1991 when
a new phase expanded the coverage to five barangays.
It focused on organizing and strengthening communities
in preparation for the issuance of a forestry management
agreement. The Project used an integrated approach with
the communities managing the natural forest and utilizing
the resources. Other components were included – natural
forest management, sustainable agriculture, alternative
income generation and community organizing.
Among its accomplishments, the Project has 19
peoples’ organizations (PO) and 12 CBFMAs, 15
municipal councils have adopted CBFM as a core natural
management program, and GIS has been installed. The
POs have been provided with technical assistance on
financial and business management with 10 modules on
financial management having been prepared. They are
now marketing their agricultural products and effectively
protecting and managing their areas. Their experience is
recognized as a best practice in CBFM implementation
and was featured during the Forestry Forum in Geneva
in 2004.
Source: World Bank, 2003.
Box 4. Community-based Forest Management in
Bayombong, Nueva Vizcaya
The project “Developing Tropical Forest Resources through CBFM” in
Bayombong, Nueva Vizcaya transformed grasslands into plantation/
agroforestry, and enhanced natural regeneration within the 3000 ha
forestlands. With secured tenure, existence of livelihood options, and
strengthened POs, there are indications that the gains of the project
will be sustained by the community.
Source: DENR-Forest Management Bureau.
11
 frameworks and work plans. In addition, there are
180 ancestral lands with Certificates of Ancestral
Domain Claims covering an area of 2.5 million
hectares, some of which already have Certificates of
Ancestral Domain Titles. The Government envisions
that while these communities will still be allowed to
benefit from the forests, the residents will gradually
need to rely more on alternative sources of livelihood.
However, such alternative livelihoods are currently
not available to the majority of such communities.
Although CBFM is an alternative to top-down
management, many areas set aside for community
forestry are currently not under effective communal
management. Conversion of degraded forest lands to
agriculture remains a common practice. Local
governments continue to lack the technical and
manpower resources to assist communities in drafting
or implementing forest management plans.
While it is now possible for communities to gain
formal, legal tenure to forest land if they agree to
abide with conservation rules, the hand-over to
communities has not been smooth. There is an
apparent lack of social preparation. A recent
assessment of community-based forestry identified
the following key legal and institutional problems:15
• Communities are dependent on DENR clearance
and approval for acquisition of land rights. Even
where such rights have been granted, the long and
complicated process of securing the “Environmental
Compliance Certificate” makes it difficult for
communities to exercise their rights. Communities
can only take advantage of land rights after DENR
approves their resource management frameworks
and annual work plans. These documents are too
complex to be prepared independently by
15
World Bank, 2003a.
12
communities, and are often produced by NGOs
or consultants.
• Local governments’ role relative to the DENR is
unclear, as the former is unable to issue resource-
use permits, file cases, or award land tenure.
• Community-based groups not only face
bureaucratic barriers, but they do so with very
limited physical, human, and financial resources.
Given the limitations within which they continue
to operate, it is difficult to see how they can be
expected to manage forest resources—a task that
much better funded government agencies and timber
companies have failed to accomplish. In reality,
communities that are unable to use their land rights
to gain access to forest land for conservation or
reforestation tend to bring more forest lands into
crop production since DENR does not regulate
the production and marketing of cash crops.
Forestry authorities, including those within DENR,
have acknowledged many of these shortcomings.
New programs, such as the Community Livelihood
Assistance Special Program or CLASP, are being
developed to provide alternative sources of livelihood
and access to micro-financing. Since its inception
in 2002, a total of 113 CLASP projects have been
funded, benefiting around 6,000 families in CBFM
areas all over the country.
Protected areas management. At least half the
identified protected areas still have no Protected Area
Management Boards (PAMBs), which are responsible
for developing and implementing area-specific
management plans. Unless an area assessment is
completed and the management plans subsequently
developed are adopted, there will be no clear
operational guidelines to protect core zones, restore
degraded zones, or develop multiple use and
buffer zones.

In 2002, the combined budget for protected areas and
wildlife management, and DENR’s Protected Areas
and Wildlife Bureau, accounted for about four percent
of DENR’s total budget. Between 1998 and 2003,
protected areas received PhP1.4 billion from the
DENR budget and from government counterpart
funding (for projects receiving official development
assistance). Allocations to protected areas peaked
in 1998, but had fallen by 25 percent by 2003.
The Protected Areas and Wildlife Bureau budget
was almost halved, from PhP151.786 million to
PhP80.592 million between 1998 and 2003 due
to reductions in the maintenance and operating
expenses of some projects.
The Integrated Protected Areas Fund (IPAF)
generated PhP62 million between 1998 and 2001.
This fund was set up to provide resources to PAMBs
to implement local management and protection plans.
However, the decision of the original IPAF Governing
Board to include IPAF in the General Appropriations
Act—which goes through executive and legislative
approval, has made the process of accessing the fund
very tedious. Local communities and governments
Environmental Champion — ASIN
The folk music group “ASIN” (Salt)
was formed in the late 1970’s. It was
a group of innovative musicians who
offered alternative Filipino music, using
indigenous musical instruments to
celebrate Filipino culture. Composed
of Lolita Carbon, Cesar Banares, Mike
Pillora, and Pendong Aban Jr., ASIN was
the first popular group to write songs
containing environmental messages at a
time when environmentalism was not yet
well understood.
Aban and Banares came from Mindanao
in Southern Philippines. Their experiences in their hometowns
inspired their songs. They witnessed what was happening
in the uplands—rampant illegal logging as well as violence.
PHILIPPINES
PHILIPPINE ENVIRONMENT MONITOR 2004
view the process as a disincentive to actively support
protected areas within their jurisdiction.
NGO/PO-initiated forest management.
Community forestry projects have also been
independently initiated by NGOs and POs. These
projects are different from NGO-assisted projects
that are funded by the Government. Detailed
documentation of such projects is not easily available.
Long-standing examples include the Kalahan
Educational Foundation in Luzon, and the Mag-
uugmad Foundation in Visayas. Active in community
forestry since 1973, Kalahan Educational Foundation
manages 14,730 hectares of ancestral lands covering
five barangays in Santa Fe municipality, Nueva
Vizcaya Province.
Private sector management. Perhaps the most
important change in forestry management has been
the shift away from TLAs to community-based
forestry, and the granting of land rights to
communities. However, the private sector has also
undertaken initiatives in conjunction with the DENR
to manage small but important plantations and
In their own words, they say that
they “just wrote about what they knew.”
Their simple lyrics and melodies spoke
of a reality with which people could
identify.
Their most famous song Masdan Mo Ang
Kapaligiran (literally means, Look at Your
Surroundings) released in the late 70’s,
made people realize that environmental
degradation was a commonly-felt
problem about which something had
to be done. This song has now become
a battle cry of the environmental
movement in the Philippines. Now in its 25th year,
ASIN remains an active advocate for the environment
and Filipino culture.
Source: Authors.
13
 watersheds. Notable among these initiatives is a
program started by the Manila Electric Company
(Meralco), in association with the DENR. Since 1992,
Meralco has been sponsoring the Tree Plantation
Project in Montalban, Rizal, to reforest some 930
hectares of rugged land with 700,000 acacia and
bagras trees. In addition, it has also invested in two
large nurseries for acacia and mahogany trees.

The ABS-CBN Foundation, through its Bantay

Kalikasan, has adopted the 2,700 hectare La Mesa
watershed and mobilized cross-sectoral support for
rehabilitation and protection of 1,400 degraded
portions of the watershed, as well as the development
of some areas as an ecopark. Executive Order No. 233
(Series of 1997) gave the Philippines National Oil A panoramic view of a watershed.
Company (PNOC) the responsibility to manage Source: DENR-Protected Areas and Wildlife Bureau.

watershed areas within its four geothermal

exploration sites. The social forestry program started
by PNOC-EDC in 1985 now benefits 73 communities

Environmental Champion — RAUL ZAPATOS

In 1990, Raul Zapatos, a forest guard
in the DENR was involved in a shooting
incident in Bayugan, Agusan del Sur. His
team was manning a DENR checkpoint
when it apprehended a truck that lacked
the necessary permit to transport logs. It
was alleged that the Mayor owned the
truck and that the logs were supposed
to go to the Mayor’s sawmill. Even when
the Mayor talked to him, Raul refused to
change the report he had submitted to his
superior, the Community Environment and
Natural Resource Officer (CENRO). Upon the
Mayor’s request, CENRO released the truck
but confiscated the logs. A few months later,
Raul Zapatos’ team again apprehended the
same truck and confiscated both the logs
and the truck. Raul Zapatos’ refusal to give in to the Mayor’s
demands angered the Mayor. One night, the mayor and
his men went to the checkpoint and fired at it. Raul, fired
back in self defense, not knowing who had fired at him. He
later discovered that he had shot and killed the mayor and
wounded one of his bodyguards. Raul surrendered and was
brought to trial. While he won the case at
the Regional Trial Court, the Mayor’s family
filed another case with the Sandiganbayan.
Raul Zapatos was found guilty, sentenced
to life imprisonment, and committed to the
New Bilibid Prison in Metro Manila.
During the years of his imprisonment,
his wife and seven children struggled to
survive. With the help of his superiors,
fellow workers, and sympathizers, Raul
appealed his case with the Supreme Court.
In September 2003, after thirteen years,
the Supreme Court reversed the decision
of the Sandiganbayan and acquitted Raul.
After his release, the DENR gave him a
spot promotion, back salaries, and he was
honored in official ceremonies. In spite of management’s
concerns for his safety, Raul remained steadfast in his
commitment to protect the forest and immediately wanted
to get back to work. He continues to work at the DENR
Region X office where he is an inspiration to all his colleagues
and clients.
Source: Authors.

14
 PHILIPPINES
PHILIPPINE ENVIRONMENT MONITOR 2004

These will be implemented under the recently-

approved ITTO-GoP pilot project.

Despite the issuance of several acts, bans on logging,

and apparent promotion of community-based
forestry, forested areas and biodiversity are under
constant threat in the country. Significant hurdles
against effective natural resources management
include: conflicting agendas; lack of national and
local government capacity to effectively monitor
forests, implement policies, and engage local
communities in effective dialogue and decision-
Kaliwa Watershed. making; lack of livelihood for poor upland and
Source: DENR-Public Affairs Office.
lowland settlers; and insufficient funds for protected
areas management.
and more than 3,000 families in Leyte, Negros
Oriental, Bicol, and North Cotabato. The company
has established 8,049 hectares of plantations to
replace the 445 hectares it has developed for
geothermal projects. It allocates 67 percent of its
annual environment budget to watershed
management, and has been recognized nationally
by both government and non-governmental groups
for its contributions.

LEGISLATION AND INSTITUTIONS

In June 2004, the Government issued Executive Order

No. 318 entitled “Promoting Sustainable Forest
Management in the Philippines”. It updated PD 705
(Revised Forestry Code of the Philippines). The order
identified watersheds as ecosystem management
units to be managed through a scientific and
community-based approach that would involve
LGUs, and recognize and respect the rights of
indigenous peoples. The order aims to clarify the
categorization of state forests and stem the conversion
of forests into non-forest uses. An updated Sustainable
Forestry Act is under discussion in Congress. The
DENR has recently adopted the criteria and indicators
for sustainable forestry, developed with the An endangered, old tree.
Source: DENR-Public Affairs Office.
International Tropical Timber Organization (ITTO).

15
BROWN ENVIRONMENT
For the past three decades, economic growth in the
Philippines has been fueled by rapid industrialization,
urbanization, and intensified agricultural production.
In the absence of effective environmental management,
these growth engines have also resulted in air-, water-,
and soil pollution. As urban centers have grown, there
have been significant negative impacts on quality of
life, especially for the poorest residents. Owing to its
size and importance in the national economy, Metro
Manila has the most pressing air, water, and solid
waste pollution.
Community-based and private sector initiatives are
on the rise in almost all areas. While these initiatives
have succeeded in raising awareness, and assist
communities in assuming responsibility for
environmental improvement, the Government still
has a critical role to play in the provision of
environmental public goods.
This section outlines trends in solid waste
management, and air- and water pollution. It also
covers the main legislative and institutional changes
needed to better address waste management
and pollution.
SOLID WASTE MANAGEMENT 16
Mismanagement of waste has serious environmental
consequences: ground and surface water
contamination, local flooding, air pollution,
exposure to toxins, and spread of disease. Many of
the disposal sites contain infectious material, thus
threatening sanitation workers and waste-pickers.
Organic waste decomposition releases greenhouse
gases, and burning of waste releases toxic gases. Odors
from non-sanitary landfills can be so bad that people
living in the surrounding areas are taken ill.
16
This section builds on the Philippines Environment Monitor on Solid
Waste 2001b.
16
Figure 5. Household Waste Composition in
Five LGUs of Metro Manila, 2003
Food / Kitchen Wastes
45%
Glass and
Wood
Plastic 9%
15%
Others
Paper 15%
16%
Source: DENR-National Solid Waste Management Commission.
Even to the casual observer, the environmental,
human health, and aesthetic impacts of solid waste in
Philippines’ urban areas are substantial. While the
former have been studied at length, there are few
reliable cost estimates of either human health or
environmental impacts of solid waste mismanagement
in the Philippines.
Solid waste generation. Solid waste generation in
the Philippines is comparable to that in other low-
middle income countries. An average Filipino
generates 0.3 and 0.5 kilograms (kg) of garbage daily
in rural and urban areas respectively.17 The National
Capital Region and Southern Tagalog Regions
respectively account for 23 percent and 13 percent of
the total garbage generated annually. A recent ADB
study showed that 6,700 MT of waste is generated
daily in Metro Manila alone with composition shown
in Figure 5.18 Annual waste generation is expected to
grow 40 percent by 2010. Improvements in recycling,
17
Report from the National Solid Waste Management Commission.
Makati City, the richest LGU, has a per capita waste generation rate of
0.71 kg.
18
Asian Development Bank, 2004.
 PHILIPPINES ENVIRONMENT MONITOR 2004

collection, and disposal will become even more

critical as garbage production continues to increase
with population growth and economic development.

Collection. It has been estimated that over PhP3.54

billion is spent annually on collection and disposal
of Metro Manila’s solid waste. In 2001, anywhere
from five to 24 percent of the total expenditures of
Metro Manila’s local governments went to solid
waste management. Most of this money was spent
on private hauling contracts. Despite this high
percentage of spending, the system requires
significant improvement. Open Dumpsite.
Source: DENR-National Solid Waste Management Commission.
The 1998 National Demographic and Health Survey
reported that 30 percent of households had access to
solid waste collection at varying frequencies, ranging contamination of ground and surface water, and foul
from twice a week to once every two weeks. More odors. As a result of the closure of these landfills,
recent estimates by the National Solid Waste garbage is now disposed in six open or controlled
Management Commission have put collection dumps in Metro Manila (Figure 6). However, these
efficiency at 70 and 40 percent in urban and rural sites have the capacity to accept waste for only two
areas, respectively. In areas where residents lack access more years. According to a 2004 ADB study, the
to solid waste collection, garbage continues to be Rodriguez and Payatas waste sites generate an
thrown indiscriminately or burned. In Metro Manila, estimated 26 kilograms of lead and 76 kilograms of
burning of waste by individuals and at illegal arsenic annually. These contaminants are released
dumpsites also contributes to a significant percentage into the water bodies surrounding Metro Manila.
of the city’s particulate pollution.19

Disposal. Solid waste disposal continues to be a

growing crisis in urban centers in the Philippines. In
Metro Manila, two landfills—Carmona in Cavite
Province, and San Mateo in Rizal Province—both
operated by the Metro Manila Development Authority
(MMDA)—were closed in 1998 and 2000 respectively.
Together, these two landfills had accepted between 40
and 50 percent of Metro Manila’s daily garbage.
Although they had been designed as sanitary landfills,
they were not operated as such, and were closed due
to environmental and social concerns, including
Controlled Dumpsite in San Fernando, La Union.
Source: DENR-National Solid Waste Management Commission,
19
Briefing Report, 2004.
DENR-Environment Management Bureau, 2002.

17
 A sanitary landfill is being developed within the
Rodriguez controlled dumpsite to serve the needs of
Metro Manila. Construction of this landfill is expected
to begin in the first quarter of 2005. Sites are also
being surveyed by DENR and MMDA for two
possible final disposal sites in Quezon province.
While the Ecological Solid Waste Management Act
(ESWMA) had set February 2004 as the deadline for
shifting from open to controlled dumping, waste
continues to be disposed in 866 open dumpsites
outside Metro Manila. There are only 125 operating
controlled-dumpsites nationwide. The law also
mandates the shift to sanitary landfills by February
2006. Yet, there are only two operating sanitary
landfills,20 with two others under construction (at
Puerto Princesa City, Palawan and Bais City, Negros
Oriental). Another 109 sanitary landfill site-proposals
are under various stages of development.
Recycling. There is no reliable data on the extent of
recycling and composting in the country, as recycling
remains largely an informal-sector activity. Data from
some sectors indicate that recycling is on the rise. Yet,
only a small percentage of the total waste generated
Bins for waste segregation.
Source: DENR-National Solid Waste Management Commission.
20
Two sanitary landfills serve the Clark EcoZone and the province of
Tarlac in Luzon, and Cebu City in the Visayas.
18
Figure 6. Metro Manila Dumpsites Capacity,
2004
3,500
3,500
3,000
2,500
2,200
2,000
1,500
1,200
1,000
800
500
180 200 160 210
0
Payatas
Rodriguez
Bagumbong
Lingunang
Pulang Lupa
Doña Petra
Tanza
Catmon
Source: Asian Development Bank, 2004.
Note: Controlled Dumpsites: Rodriguez, San Isidro; and Linginang,
Pulang Lupa, Doña Petra, and Tanza in Metro Manila. Open
Dumpsites: Payatas, Quezon City; Bagumbong, Caloocan City; and
Catmon, Malabon.
in the Philippines is recycled or composted. In 1997,
six percent of solid waste was recycled in Metro
Manila. By 2000, this had grown to 13 percent,
primarily due to efforts made by the MMDA and
NGOs to promote segregation at source, composting,
and recycling. An MMDA Ordinance passed in 1999
mandated source segregation. With the passage of the
ESWMA, a growing number of LGUs are
implementing integrated waste management, which
encourages reduction, recycling, composting, and
reuse of material. As of mid-2004, 397 LGUs (24
percent) are known to practice ecological waste
management. A total of 976 materials recovery
facilities serve either one or a cluster of barangays, or
an entire LGU. Of these facilities, 126 are in Metro
Manila. From 1998 to 2003, the volume of waste
traded by the Federation of Multipurpose
Cooperatives in Metro Manila (an association of junk
dealers) has tripled from 69,400 MT to 209,770 MT,
and it’s value has increased from PhP95 million to
PhP268 million. Data from the operator of the
Rodriguez controlled-dumpsite shows a recovery rate

of 25–30 percent on incoming waste through
secondary sorting prior to final disposal.
Hazardous and infectious waste. Approximately
2.3 million MT of hazardous waste is generated by
industries every year. By 2004, 3,015 hazardous waste
generators had been registered with the Environmental
Management Bureau (EMB).21 Oil, immobilized
waste, containers, and plating waste make up more
than half (55 percent) of recorded hazardous waste
nationwide. Hospitals generate an additional 6,750
tons of infectious waste annually. The national capital
region contributes 34 percent of hazardous and 47
percent of infectious waste.
About half the waste generated by registered industries
is treated off-site, and 2.5 percent of this waste is
recycled. A quarter of the total hazardous waste
generated is also recycled. As of July 31, 2004, DENR-
EMB had recognized 92 treaters/recyclers and 308
transporters of hazardous waste. More than half the
recycled hazardous wastes are oils (51 percent) and
49 percent are inorganic chemicals.
Community-based waste management.
A number of successful community-based ecological
waste management projects can now serve as model
initiatives (Box 5). Several LGUs and NGOs have
initiated community-based campaigns to reduce and
recycle waste. To encourage communities to undertake
such projects, DENR, the Department of Interior and
Local Government, and NGO and business partners
recently launched a Nationwide Search for Model
Barangays for Ecowaste Management. More than 500
barangays participated; and the top winner received
PhP1 million from the Office of the President.
While such campaigns do have positive local impacts,
waste management is still perceived by many as the
responsibility of governments. Public participation
21
This is a large increase from the 721 generators that were registered in
2001-DENR-EMB, 2004.
PHILIPPINES ENVIRONMENT MONITOR 2004
Box 5. Payatas, Rising From Tragedy
Payatas dumpsite, has been Quezon City’s solid waste
disposal site for almost three decades—serving its 2.3
million people who generate about 1,500 tons of waste
daily. In July 2000, a landslide of garbage that killed
more than 200 waste pickers prompted the enactment
of the Ecological Solid Waste Management Act. As
required by the Law, Payatas was immediately converted
to a controlled dump facility, and some danger zones
completely closed.
Today, Payatas has been transformed into a waste
disposal facility with organic waste composting,
recyclable wastes recovery, and landfill gas extraction.
A one-megawatt Payatas Methane Gas to Power
Generation Project (the first in the country), which will
supply electricity to 2,000 households in the area over
the next 10 years, was commissioned in July 2004. Other
initiatives to make Payatas a self-sustaining community
include providing security of housing tenure under the
government’s Community Mortgage Program, improved
access to basic services, especially clean water, scholarship
grants to students, construction of access roads, credit
cooperatives, and livelihood programs.
Source: Asian Development Bank, 2004.
in waste management, especially in segregation at
source, remains limited. More extensive awareness-
raising activities and training on ecological waste
management are needed, together with stricter
enforcement.
Private sector initiatives in waste management.
(Box 6). In addition to ensuring that their operations
comply with environmental laws, more manufacturers
are actively implementing schemes to recover waste
and to recycle products. The Philippine Business for
the Environment, in cooperation with companies
and NGOs, holds the Annual Recyclables Collection
Event where anyone can recycle materials such as
paper products, recyclable plastic bottles, aluminum
cans, polystyrene packaging waste, and old or broken
electronic equipment. This event has been so
successful in Metro Manila, Laguna, and Quezon
City, that it has now become a regular feature of
the celebration of Earth Day in the Philippines, and
19
 Box 6. Private sector activities in ecological solid waste management
• Polystyrene Packaging Council of the Philippines is a group of 21 foam polystyrene producers who have set up a recycling
plant. The Council advocates for localized recycling of packaging waste, and recovered 8000 cubic meters in 2003.
• Coca Cola Bottlers Philippines Inc. manages a major campaign to promote the recovery of non-returnable but recyclable
soft drinks containers. Cans are processed into aluminum sheets and tubes, which are then turned in various consumer
products, including mobility aids for people with disabilities. In 2002, Coca Cola also begun recycling plastic (polyethelyne
terapthalate–PET) bottles. This recycling program has recovered 4.1 million aluminum cans, and three million PET
containers.
• Pulp and Paper Manufacturers Association is collaborating with various sectors to improve the recovery of wastepaper.
Many government agencies have an ongoing wastepaper recycling program with Recyclean Foundation. The foundation
collects the wastepaper based on a pre-agreed schedule and returns paper products needed by the concerned offices.
• The Philippine Recyclers Inc., an NGO, Bantay Kalikasan, and DENR have together launched an advocacy campaign to
improve the recovery and recycling of used lead-acid batteries. About 30 percent of the 200,000 lead-acid batteries sold in
the country are not properly recycled. The project continues to grow; collecting 204 tons in 2003 and 340 tons in the first
three quarters of 2004. This is equivalent to 73,759 liters of sulfuric acid and 590 tons of lead prevented from polluting
the environment. More than 50 companies are now actively supporting the campaign.
• San Miguel Corporation is establishing three PET recycling plants, and working closely with Coca Cola bottlers. It has also
entered into an agreement with the DENR and the Department of Education to institutionalize recovery of PET bottles from
public schools in the Metro Manila region.
Source: Authors.

has been expanded to Baguio, Cebu, and Davao. The performance of cities and municipalities in solid
Economic value gained from the event totaled waste management continues to be poor. Insufficient
PhP285, 000 in 2004. numbers or inappropriate collection vehicles, their
inability to reach households or collection stations,
LEGISLATION AND INSTITUTIONS and shortage of transfer points are the main
infrastructure problems. Metro Manila and 11 other
The Ecological Solid Waste Management Act calls for
cities and municipalities have contracted garbage
the institutionalization of a national program that
collection to the private sector to improve coverage.
will manage the transfer, transport, processing, and
Although many local governments spend a high
disposal of solid waste in the country. The National
percentage of their budget on solid waste management,
Solid Waste Management Commission (NSWMC) is
they are not able to recover significant portions of
the major agency responsible for providing guidance
these expenses through fees assessed on either
and overseeing the implementation of this Act.
households or businesses. Local businesses pay for
According to the Act, different levels of local
solid waste management through their annual
government are responsible for various aspects of
business permits. However, these charges are
waste management. The barangays are responsible
unrealistically low, are seldom revised to reflect higher
for ensuring segregation at source, collection of the
costs, and do not accurately reflect the actual cost of
bio-degradable and recyclable components, and
collection and disposal. Only a few of the wealthier
setting up materials-recovery facilities. The city or
barangays have implemented household fees, and
municipality takes care of collecting the residual
some studies suggest that the willingness to pay for
non-biodegradable and hazardous waste, and its
services is still very low.
final disposal, except in Metro Manila where disposal
is within the mandate of the Metro Manila Multi-sectoral solid waste management Boards at the
Development Authority. province, city, and municipal levels have been created

20

in almost all LGUs to develop and implement
ten-year solid waste management plans. Some of
these boards are receiving assistance from UNDP;
however, most are not actually functional. In fact,
of 117 cities and 1500 municipalities, only nine cities
and 46 municipalities have prepared and submitted
their ten-year plans to the National Solid Waste
Management Commission for review. The actual
implementation of these plans may, however, be
constrained by the current level of government
appropriation, inadequate technical capacity to
operationalize these plans, and the lack of political
will among local and national leaders to enforce
the law.
Environmental Champion — AYALA FOUNDATION
The Ayala Foundation is the social-responsibility wing of
the Ayala Corporation, a leading business conglomerate
in the Philippines. In 1996, Ayala with assistance from
the Metropolitan Environmental Improvement Program,
began implementing ecological waste management in
four buildings it owned. Residents were encouraged to
segregate their waste at source. The building administrators
provided a system for the recovery of biodegradable
and non-biodegradable components of the waste.
Relationships with buyers of the recyclables were formalized.
Working with environmental NGOs, Ayala Foundation
provided orientation and training to the building occupants.
Soon, all tenants of the Ayala Commercial Center were
also required to segregate their waste and implement
ecological waste management, even before a law requiring
the same was passed.
PHILIPPINES ENVIRONMENT MONITOR 2004
AIR QUALITY22
Air pollution. Urban smog, smoke-belching buses,
and industrial smoke stacks are visible reminders of
air pollution. However, air pollution is not just an
aesthetic problem; it also causes acute- and long-term
health problems (Figure 7). Thus, the costs of air
pollution are felt not only at the individual, but also
at the national level. Diesel emissions from buses,
jeepneys, utility vehicles, and trucks are estimated to
be the largest contributor to urban air pollution, and
are also recognized carcinogens. Fine particulate
matter (PM10) penetrates the upper defenses of the
respiratory tract and deposits deep in the lungs, and
affects human health.
By 2001, the campaign was expanded to other
buildings and firms in the central business
district of Makati City. Cooperators included
the Management Association of the Philippines,
the Makati Commercial Estate Association,
and the Ayala Center Association. The target
was to reduce non-recyclable by 25 percent in
two years. This has been exceeded with waste
decreasing from 80 tons to 24 tons per day. As
of July 2002, 160 buildings were implementing
waste segregation with six buildings doing
their own composting. An average of 34,600
kg of recyclables is produced every month. In addition, a
Materials Recovery Facility (MRF) has been set up within the
commercial center (a first in the country) where anyone can
bring waste materials for composting or recycling.
The Ayala Town Center in Muntinlupa City, Ayala Center in
Cebu City, and the Cebu Business Park have adopted similar
waste management practices. The Foundation and Ayala
Land Inc. in Cebu are also involved in reforesting Kotkot
Lusaran and Mananga watersheds. A nursery area has been
established to house about 100,000 seedlings every year.
About 40,000 seedlings are now being grown, together
with 5,000 saplings of indigenous species. The group aims
to cover the 70 hectare Ayala Property within the area with
gabions and check dams for water conservation.
Source: Authors.
22
This section builds on the 2002 Philippines Environment Monitor on
Air Quality, 2002.
21
 Figure 7. Type of Illness 1992-2000 Sources. Air pollution is generated by point sources
Circulatory Others
such as vehicles, industries, and power plants, and
3% 4% Water-Related area sources such as road dust, construction, waste
Diseases
31%
burning, and open cooking in urban and rural areas.
There are over 100 identified air pollutants that can
be categorized as particulates of various sizes (TSP—
or total suspended particulates, is used as proxy
measure for all particulates), oxides of sulfur and
nitrogen, volatile organic compounds, and ozone.
Noise and odor are under the jurisdiction of local
Respiratory
System governments and are considered a nuisance. Indoor
62% air pollution is equally a concern, as the levels of
Source: DOH-National Epidemiology Center. contaminants are higher inside confined spaces where
people may spend most of their time. Common
sources of indoor pollution are cigarette smoking,
Numerous international studies have computed the
and burning of kerosene, liquid petroleum gas, and
numbers of pollution-related excess-deaths and
biomass fuel (e.g. wood and charcoal) for cooking
incidence of disease, and associated costs.23 Based on
and lighting.
established methods, the health costs of PM10
pollution in four cities (Metro Manila, Davao, Cebu, The transport sector continues to be a significant
and Baguio) for the year 2001 have been estimated to contributor to air pollution. In 2003, there were 4.3
be more than US$400 million. These costs account million registered vehicles in the country (Figure 8)
for 2.5 to 6.1 percent of per capita income in these —a threefold increase within the past two decades.
cities, equivalent to 0.6 percent of the country’s GDP. This trend is expected to continue as vehicle
The population of the four cities represents 28.4 ownership usually rises with increases in income.
percent of the total urban population. If the rest of Of all vehicles, 70 percent are gasoline-powered and
the country’s population is assumed to be exposed to the rest use diesel. However, most of the high-mileage
pollutant levels similar to those in these four cities, a
high annual estimate for urban health cost for the
country is over US$1.5 billion.
In addition, recent studies in the Metro Manila
airshed have found that the levels of outdoor and
indoor PM10 have a strong positive correlation at
statistically significant levels; and that exposure to
high levels of indoor air pollution is a major health
problem.24 However, the extent of indoor air pollution
in the country is yet to be quantified.

23
Clean Air Initiative for Asian Cities website: http://www.cleanairnet. Waste Segregation.
org/caiasia. Source: DENR-Public Affairs Office.
24
Department of Health, 2004.

22

Figure 8. Nationwide Motor Vehicle Registration,
2003
Total Vehicles: 4,292,272
Trailers 1% Cars 17%
MC/TC
36%
Utility
Vehicles
Buses 1% 36%
Trucks 6%
Sports Utility Vehicle 16%
Source: DOTC-Land Transportation Office.
public utility vehicles are diesel-powered. Diesel-
powered vehicles emit a significant amount of fine
particles. Nationally, utility vehicles outnumber
personal cars by a ratio of 2:1. Despite advances in
pollution-control technology, a large increase in
utility vehicles combined with low turnover
contribute significantly to air pollution.
On the positive side, sales of four-stroke engines for
motorcycles increased dramatically in the first nine
months of 2004—accounting for 91.5 percent of the
total motorcycle market. Four-stroke engines account
for 75 percent of motorcycles sold for use in three-
wheelers within the same period, up from only 25
percent in 2001. If this growth is sustained, the
Philippines will be able to catch up with other
countries in the region that have completed the
transition to four-stroke engines in motorcycles,
thereby reducing the pollution from particulate
matter, hydrocarbons, and carbon dioxide, and also
reducing noise.
Industrial emissions are also significant polluters. A
1998 DENR survey of 737 industrial establishments
revealed that nearly two-thirds did not have the
PHILIPPINES ENVIRONMENT MONITOR 2004
necessary air-pollution-control facilities.25 The air-
pollution control devices installed in the remaining
third were not operational because companies
believed that these were very expensive to operate.
However, a total of 8,024 pollution permits were
issued by the EMB regional offices in 2003. Of these,
63 percent were for air-polluting industries. By June
2004, another 7,104 permits had been issued. The
majority of industrial sources are located in the Metro
Manila airshed.26 Since the number of air pollution
permits granted since 1998 has risen steeply, it would
be interesting to see how many industries that applied
for permits actually installed air-pollution-control
devices, what percentage of these devices is operational,
and whether these devices have contributed to
improvements in air quality.
Power generation is a major source of sulfur-dioxide.
The lowering of the sulfur content of industrial diesel
to 0.3 percent in January, 2001, and the planned shift
Traffic congestion leads to increased pollution.
Source: DENR-Public Affairs Office.
25
DENR, 1998.
26
As required by the Clean air Act, EMB has designated the National
Capital Region, and the area between Batangas to the South and Bataan
to the North, as the Metro Manila Airshed.
23
 to natural gas under the Philippine Energy Plan, will Figure 9. Annual Total Suspended Particulate (TSP)
reduce sulfur dioxide emissions from the power Concentration, 2003-2004
generation sector. The share of natural gas is to 350
increase to 7.9 percent of the primary energy mix
300
by 2007.27

TSP Concentration, ug/Ncm

250
Area sources of pollution are widespread, difficult to
200
estimate, and generally overlooked even though
150
controlling these sources is a cost-efficient way to
improve air quality. Unpaved roads and pavements, 100

unturfed center islands, building and road 50

Jaro
San Fernando City
Makati

Ateneo
Mandaluyong
Manila
Pasig
Pasay
Baguio City

Saluysoy
Station I (Cavite)
Station 2 (Batangas)
Legazpi City
Panganiban Drive

La Paz Plaza
Oportos Residence

Canos Residence
Station 1
Station 2
Station 3
Station 5
Station 7
Station 8
Station 9
Gen. Santos
South Cotabato
North Cotabato
Butuan City
East Ave.

Baricuatros Residence
Congressional Ave.
Valenzuela

Tuguegarao
construction, and traffic are the main contributors
to re-suspended dust. The contribution of refuse-
burning to local air pollution has not yet been well-
quantified, although it is known to be a major source

NCR

CAR
Region I
Region II
Region III
Region IV

Region V

Region VI

Region VII

Region IX

Region XI

Region XII

Region XIII
of air pollution.

With stronger enforcement of the requirement for
submission of quarterly self-monitoring reports,
major industries, particularly power and cement
plants, now regularly prepare reports that monitor
compliance to emission standards. Additionally, as of
2003, in compliance with Department Administrative
Order (DAO) 2000-81, Continuous Emission
Monitoring Systems (CEMS) for particulates, and
STANDARD -- 90ug/Ncm 2003 2004
Source: DENR-Environment Management Bureau, Central and Region
Offices – CAR, R7, and R11.
sulfur and nitrogen oxide emissions have been
installed in 12 industrial plants.28
Air pollution trends. Manual samplers are used by
DENR to monitor TSP at over 40 stations nationwide
(Figure 9). Data in 2003 and 2004 show that majority
of the stations exceed the standards although there
is a slight improvement. Thirty-one percent (31%)
were within the standards in 2004 up from 23% in
2003. Highest record was in Station 9, Davao (2003)
and Bocaue, Bulacan (2004).

In Manila there is a decline in the incidence of daily

average TSP levels exceeding guidelines. As of 2003,
TSP annual mean concentrations of ambient air in
most monitoring stations in Metro Manila decreased
by an estimated 14 percent compared with those
recorded in 2000.29 This improvement can be partly
Emission Testing.
Source: DENR-Public Affairs Office.
28
This includes eight power plants, two cement plants and two refineries.
DENR-EMB, 2002.
29
27
Department of Energy, 2003. DENR, 2003.

24
 PHILIPPINES ENVIRONMENT MONITOR 2004

attributed to repeated anti-smoke belching campaigns
carried out by local governments, MMDA, Land
Transport Offices of the Department of Transport
and Communication, and NGOs, and to the lowering
of the sulfur content of diesel. Ambient concentrations
of ozone and nitrogen oxides, while still within the
standards, are on the rise, mostly due to a rapid
increase in the number of motor vehicles.
LEGISLATION AND INSTITUTIONS
The Clean Air Act (1999) aims to provide a
comprehensive air pollution control policy for the
country. However, implementation difficulties point
to the complexities associated with solving a problem
involving many agencies. Inter-agency collaboration
remains a challenge despite many multi-sectoral
working committees and memoranda of agreement.
Lack of provincial and local government capacities
for air quality management will be further exposed
as these entities are under-prepared to carry out
the functions devolved to them by the Clean Air
Act (CAA).
Preliminary estimates for implementing parts of the
Act indicate that the country will need to spend at
least PhP25 billion between 2000 and 2010.
Notwithstanding limited funding, progress in the

Environmental Champion — PUERTO PRINCESA CITY, PALAWAN PROVINCE

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

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

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

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

25
 implementation of the CAA has been achieved in the In an attempt to reduce noise pollution, in May 2004
following areas: the government issued an order imposing a fine on
• Rise in the number of designated airsheds from six the use of vehicle-horns while traveling on major
in 2003 to 14 by August 2004; highways around Metro Manila.
• Intensified anti-smoke-belching drives in urban
Public awareness and participation. Active
areas;
non-governmental initiatives have raised public
• Further reduction of aromatics in unleaded
awareness; and provide examples of possible actions
gasoline, from 45 percent in 2000 to 35 percent in
on a small scale (Box 7). However, a Knowledge,
2003, and the lowering of benzene content, from
Awareness and Practice Survey, conducted by the
four to two percent;
Public Information Agency for DENR in 2001 (Figure
• A 75 percent reduction in the sulfur content of
2), noted that although more than 72 percent of
automotive diesel by January 2004;
Manila’s residents were alarmed by air pollution, only
• Nationwide implementation of emissions-testing
28 percent said they were aware of government
requirement prior to registration;
actions to control this pollution. The results of this
• Ban on incineration;
survey highlighted the need for more targeted
• Setting-up of 12 networked electronic stations;
information, education, and communication
• Improvement in automotive technology;
campaigns using mass media and interpersonal
• Promotion of coco-methyl ester and bio-diesel;
communications. The Partnership for Clean Air and
• Expansion of the mass-transit system within Metro
DENR are using the results of the survey to guide
Manila, and improvement and extension of the
them in preparing a public awareness action plan
North and South Rails; and,
under the Metro Air Program.30 To judge the
• Switch to natural gas use in power plants and
industries, as well as for public buses.

Environmental Champion — SISTER AIDA VELASQUEZ

Sister Aida Velasquez of the Missionary Benedictine Sisters Order was trained as a chemical engineer. In
1976 she helped organize the people in San Juan, Batangas province, to oppose a proposed copper smelter
project. The suspension of the project is considered a milestone in Philippine environmental protection
advocacy. Her missionary work in Leyte, Bataan and Marinduque often involved local environmental risks.
Through information campaigns on the hazards of nuclear power, and popular mobilization she opposed
the commissioning of the Bataan Nuclear Power Plant. Sister Aida also worked with communities in
protesting against Marcopper’s polluting operations, especially the dumping of highly toxic mine tailings
into Calancan Bay.
Sister Aida now serves as Coordinator of “Lingkod Tao Kalikasan” (In the Service of Human-Earth
Community), an NGO that was formed in 1985. Its main focus is ecological education in rural areas. Siste
Aida kept vigil for the cause of Raul Zapatos, a DENR forest guard who was unjustly imprisoned, providing
a voice for Raul, calling for justice until the Supreme Court finally acquitted him.
Sister Aida frequently represents the country in international conferences such as the Earth Summit and
the World Summit for Sustainable Development. She was instrumental in drafting the Philippine Agenda
21. In 1997, UNDP honored her as one of 25 Women Leaders in Action.
Source: Authors.

30
Metro Manila Air Quality Improvement Sector Development Program.

26
 PHILIPPINES ENVIRONMENT MONITOR 2004

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

Miriam College, a private school in Metro Manila, has taken a leadership role in educating people on the importance of clean
air. The School took a lead role in organizing a loose coalition of twelve schools in Metro Manila that regularly hold education
seminars and street campaigns to raise public awareness about the issue. Clean Air Camps are organized to deepen student
and faculty understanding of air pollution problems. The college also engages students in advocacy through its series of
Dialogues with Legislators. In addition, Miriam College practices what it preaches. From 1992 to 2002, all vehicles that
required a sticker to park at the school were subject to emissions testing. A minimal fee was charged for the testing, which
was conducted with the support of the DENR-EMB, MMDA and private groups. Approximately 5,860 student and faculty
vehicles, and 140 school buses were tested annually. In 2001, bus owners were also trained on preventive maintenance.
Realizing that many highly-polluting three-wheelers (tricycles) also enter their campus, Miriam College also developed and
implemented a program for emissions testing and preventive maintenance for these tricycles. Free emissions testing of almost
300 tricycles was undertaken in partnership with the MMDA.
The Ateneo de Manila University also adopted a similar program starting in 2000. The school tapped its Environmental
Science students and made emissions testing part of their school practicum. An average of 12,600 vehicles were tested each
year. Revenue from the emissions testing was used to purchase the school’s own emissions testing equipment. In addition,
the University’s Manila Observatory has been monitoring PM10 since July 2000. PM10 level within the campus average 70
ug/Ncm, or is moderate with no cautionary indicators. Both these emissions testing programs were stopped after the Land
Transportation Office implemented mandatory emissions testing of all vehicles in January 2003.
Miriam College also organized the Usapang Trike project. This included a series of meetings, and preventive maintenance
training to reduce hydrocarbon and carbon monoxide (CO) emissions. The project was conducted in partnership with the
Motorcycle Development Participants Program Association, the National Federation of Tricycle Owners and Drivers, and the
Academy of Educational Development. One of the key findings of the Usapang Trike project was that the use of high quality
2T oil for two-stroke engines leads to a dramatic decrease in both CO and hydrocarbon emissions (45 percent and 42 percent
respectively). The CO levels achieved were half of those emitted by four-stroke engines. The drivers also reported that the
use of high quality oil improved the performance of their motorcycles and lowered their daily fuel consumption by 1.5 liters.
These lessons were shared in a forum in Tuguegarao City. Finally, a national conference was held as the culminating event to
share significant lessons learned, present successful initiatives, and agree on resolutions to improve tricycle emissions.
Source: Authors.

effectiveness of these information, education, and
communication campaigns and to identify other
perceived areas of concern, another Knowledge,
Awareness, and Practice Survey is expected to be
undertaken in 2005.
WATER QUALITY 31
Data on surface and groundwater quality and
availability indicate that access to clean water is
becoming an acute seasonal problem in many urban
and coastal areas. Poor water quality has large
economic and quality-of-life costs in terms of health
impacts, potable water costs, foregone tourism
31
This section builds on the Philippines Environment Monitor on Water
Quality, 2003.
revenues, lost fisheries production etc. Sanitation and
sewerage remain problematic, as only a small percentage
of the population is connected to sewerage systems.
In urban areas, discharge of domestic waste water is a
major source of water pollution. This section briefly
examines the current state of water supply and
sanitation in the country, and gives an overview of
recent legislative and institutional innovations to
improve access to clean water and related services.
Surface and ground water resources. Overall,
the Philippines is endowed with rich water resources.
Rivers and lakes cover 1,830 km2 or 0.61 percent of
the total area. The Philippines has 421 river basins in
119 proclaimed watersheds. However, within South
Asia, it ranks among the lowest in terms of annual

27
 freshwater availability per capita. At 1,907 m3, per Table 2. Annual Renewable Water Resources
capita availability is lower than Asian and world Country Total Resources 2000
averages (Table 2).32 Country water demand is 3
(km ) 3
(m /person)
expected to increase from 1,303 m3 in 1995 to 3,955 World 42,655.0 7,045
m3 in 2025. Water resources are unevenly distributed Asia 13,508.0 3,668
throughout the country, often resulting in water United States of 2,460.0 8,838
America
shortages in highly populated areas, especially during
Japan 460.0 3,393
the dry season. Several river basins (Pampanga, Agno,
Lao People’s Dem 190.4 35,049
Pasig-Laguna, and on the island of Cebu) are also Rep
experiencing generalized water scarcity (Table 3). Malaysia 580.0 26,074
Myanmar 880.6 19,306
Access to an improved water source. As of 2003, Indonesia 2,838.0 13,380
86 percent of the total population has access to an Cambodia 120.6 10,795
improved water source; with 79 percent and 91 Vietnam 366.5 4,591
percent access in rural and urban areas, respectively.33 Philippines 146.0 1
1,9071
In Manila, the Metropolitan Waterworks and Thailand 110.0 2
1,8542
Sewerage System (MWSS) serves approximately 65 Source: World Resources Institute, 2000-2001.
1. JICA Master Plan on Water Resources Management in the
percent of Metro Manila’s water demand. However, Philippines, 1998.
26 percent of Manila residents (3 out of 12 million) 2. World Bank Thailand Environment Monitor, 2001.

Table 3. Water Demand and Availability of Major Cities in the Philippines in million cubic meter (mcm) / year
Metro Metro Cagayan
Year Total Davao Baguio Angeles Bacolod Iloilo Zamboanga
Manila Cebu de Oro

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

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

Groundwater 759 191 60 84 15 137 103 80 34 54

Availability

Surplus / 1995 -877 1 34 3 126 66 71 5 26

Deficit

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

Deficit

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

are still not connected to piped water. In Cebu, 55
percent of residents are serviced by water utilities,
and about 600,000 people use other water sources,
including private sellers. The projected water demand
for Cebu for the year 2025 is estimated at 342 mcm,
32
with a demand to supply ratio of 0.18, indicating an
acute shortage in the future.
As of December 2003, 17,447 water permits had been
granted to water users for use of surface water (53
percent), groundwater (37.5 percent), and spring
water (9.5 percent). Slightly more than half the water

33
Water Resources Institute, 2000-2001. permits are used for irrigation. At approximately 83
World Bank, 2004b.

28
 PHILIPPINES ENVIRONMENT MONITOR 2004

Figure 10. Water Permits Granted By Use, 2003 Over-abstraction from 6,441 registered wells has led
to the lowering of aquifers, resulting in saline water
Domestic Use
30% intrusion and ground subsidence in some areas.
Irrigation
57% Water quality. Surface-water quality can be assessed
by using Dissolved Oxygen (DO) and Biochemical
Oxygen Demand (BOD) as parameters.34 The
Industries National Capital Region (Metro Manila), Central
6%
Luzon, Southern Tagalog, and Central Visayas are the
Fisheries four critical urban regions in terms of water quality
6% and quantity. Government monitoring data indicate
Power 1%
the following:
Other 6%
• Approximately 42 percent of the country’s river
Total Permits: 17,447 systems are classified as sources of public water
Source: National Water Resources Board.
supply (Figure 11).
percent of total volume of water used, irrigation is • Up to 58 percent of groundwater sampled is
the dominant water user (Figure 10). Water users are contaminated with coliform bacteria, and needs
charged per connection at either a flat rate, based on treatment.
the size and population of residence or business, or a • Just under a third, or 31 percent, of illnesses
metered rate, based on the volume of water used. monitored for a five-year period were caused by
water-borne pathogens.
Groundwater use. Groundwater contributes 14
percent of the total water resources potential of the
Philippines; groundwater recharge or extraction Figure 11. River Water Classification, 2002

potential is estimated at 20,200 mcm per year. Class D 4% Class AA 1%

Northern Mindanao has the lowest potential source

of ground water compared to its surface water
potential; while Ilocos and Central Visayas have the Class A
42%
highest potential. About half the population uses Class C
34%
groundwater for drinking purposes.
According to 2003 data, 63 percent of groundwater is
consumed by the domestic sector, and the remaining
is shared by agriculture (17 percent), industry (13
percent), and other sectors (7 percent). In terms of Class B 19%
sectoral demand, agriculture has the highest demand, Total Number of Sampling Points = 400
85 percent, while industry and domestic sectors have
Source: Philippine Statistical Yearbook, 2003.
a combined demand of only 15 percent.
About 60 percent of groundwater extraction is
without water-right permits, resulting in indis- 34
National standards for DO vary from 2 to 5 mg/l and for BOD from 1 to
15 mg/l based on beneficial water usage and classification (Table 4).
criminate withdrawal. Some 86 percent of piped-
water supply systems use groundwater as a source.

29
 • 15 rivers nationwide have dissolved-oxygen at or Figure 12. Estimated Share of Domestic, Industrial,
below zero, indicating that they are “dead” during and Agricultural BOD at the National Level,
the dry months. 1999-2000

Water quality monitoring has not been carried out

on a regular basis for all major rivers and bays in the Agricultural
37%
country. Sampling of 51 rivers in 2002 showed that
69 percent of all samples were within the criterion for Domestic
48%
BOD, with 30 rivers (59 percent) having a passing
rate of 100 percent.35 Sampling for DO shows a
similar result, with 68 percent of samples within the
criterion. However, only 22 (43 percent) of the 51
rivers passed all the time. Monitoring for BOD in Industrial 15%
2003 shows a slight improvement, with 76 percent of Total Number of Sampling Points = 400
samples within the criterion.36 Source: Philippines Environment Monitor, 2003.

Pollution sources. There are three main sources of

different amounts of wastewater depending on the
water pollution—domestic (municipal), industrial,
product and process used, and the scale of production.
and agricultural. More than 2.2 million MT of organic
They receive permits from the EMB to discharge
pollution are produced annually by domestic (48
wastewater into a receiving water body. To receive
percent), agricultural (37 percent), and industrial (15
and maintain a permit, the industry must comply
percent) sectors (Figure 12). In the four water-critical
with the provisions of the Pollution Control Law of
Regions, water pollution comes mainly from domestic
1976 (PD 984), and not discharge into either Class
and industrial sources. Estimates of total pollution
AA or Class SA water. Of the total permits issued in
do not include pollution from solid waste discharge
2003, 23 percent were permits to discharge wastewater.
and leachate. Solid waste disposed either at the
Most of the water pollution-intensive industries are
dumpsite or directly into water bodies, generates high
in National Capital Region, Calabarzon, and Region III.
rates of organic and inorganic pollution. Leachate
Food manufacturing, piggeries, and slaughterhouses
contaminates groundwater or seeps into rivers, lakes,
are the main sources of organic pollution.
and coastal waters. Despite the passage of the
ESWMA, open dumpsites still operate throughout Exposure to such chemicals may result in a range of
the Philippines (see section on solid waste), and solid health effects including headache, nausea, blurring of
waste remains a major water pollutant. vision, poisoning, male sterility, and immune system
impairment.
Industrial wastewater may contain organic and/or
inorganic pollutants. Industries produce vastly The major trends in water quality recorded for the
four critical regions are briefly discussed below.
35
A passing rate of 100 percent means that all samples taken during the National Capital Region. Domestic sources,
year met the standards.
36
Water classification is based on the following: Classes AA and SA industries, and solid waste contribute 65 percent, 30
generally have the most stringent requirements as these cover water for percent and five percent, respectively, of the BOD
the public water supply and coastal and marine waters that may have
fisheries, national parks, or coral reefs and other reserves; Classes D and loading of the Pasig River system. Between 1996–
SD have the least stringent requirements.
2001, EMB monitored 141 rivers, five of which are in

30
 PHILIPPINES ENVIRONMENT MONITOR 2004

Metro Manila (Paranaque, San Juan, Marikina, Pasig, Table 4. Water Classification by Beneficial Use
and Navotas-Malabon-Tullahan-Tenejeros). The San Classification Beneficial Use
Juan river had the highest average BOD and lowest For Fresh Surface Waters (rivers, lakes, reservoirs, etc.)
DO, and did not meet criteria for Class C water. The Class AA: Waters that require disinfection to meet
Marikina river had the lowest average BOD and met Public Water the National Standards for Drinking Water
Supply (NSDW)
standards set for beneficial uses (Table 4). At some
Class A: Public Waters that require complete treatment to
point during the monitoring, all four rivers exhibited Water Supply meet the NSDW
a zero reading for DO, indicating that they were Class B: Waters for primary contact recreation (e.g.
Recreational bathing, swimming, skin diving, etc.)
“biologically dead” during those periods. There had Water
been a noticeable improvement in Pasig river water Class C: • Water for the fishery production
quality from 1992 to 2002, owing to the government’s • Recreational Water Class II (boating, etc.)
• Industrial Water Supply Class I
rehabilitation effort. However, monitoring in 2003
Class D: • For agriculture, irrigation, livestock
showed that water quality had worsened between watering
2002 and 2003, with DO values lower than the • Industrial Water Supply Class II
• Other inland waters
minimum values in six of the eight stations, with the For Coastal and Marine Waters (as amended by DAO 97-23)
annual DO average decreasing by 30 percent. The Class SA • Waters suitable for the fishery production
same is true for BOD, with two stations exceeding the • National marine parks and marine
reserves
guideline values compared to only one station in • Coral reefs parks and reserves
2002, and the BOD annual average increasing by 65 Class SB • Tourist zones and marine reserves
percent. The reduction in rainfall in 2003 could partly • Recreational Water Class 1
• Fishery Water Class 1 for milk fish
be the reason (Figures 13 and 14).
Class SC • Recreational Water Class II (e.g. boating)
• Fishery Water Class II (commercial)
Total coliform and fecal coliform count of bathing • Marshy and/or mangrove areas declared
beaches in Manila Bay, on the other hand, remain as fish and wildlife sanctuaries
Class SD • Industrial Water Supply Class II
high (Figures 15 and 16). The refined risk assessment (e.g. cooling)
• Other coastal and marine waters
Sources: DENR Administrative Order No. 34, series of 1990 and DENR
Administrative Order No. 97-23.
Figure 13. DO Levels in the Pasig River system,
1999-2004
of Manila Bay,37 which evaluates the impacts of
10
9
pollutants on human and ecological targets, shows
8 that the following contaminants need to be addressed
7 immediately: (a) fecal coliform (due to sewage
Mean DO Level (mg/li)

6
discharged directly into the bay, or into the river
5
4 systems entering the bay); (b) lead and mercury; and
3 (c) pesticides.
2
1 Routine monitoring from 1990 to 2003, at five
0
1999 2000 2001 2002 2003 2004 stations within the Laguna de Bay, shows that it meets
Manila Bay
STANDARD -- 5mg/L
Lambingan Laguna
class C water quality criterion, except for a spike in
Jones Guadalupe Vargas one station in 1991. Although BOD in the lake is not
Sanchez/San Juan Bambang Marikina

Source: DENR-Environment Management Bureau. 37

PEMSEA and MBEMPTWG-RRA 2004.

31
 Figure 14. BOD Levels in Pasig River system,
households and manufacturing establishments. It is
1999-2004 also the third highest contributor to national income.
35.00 In Central Luzon, 51 percent of BOD loading is
30.00 generated by domestic sources, 14 percent by
25.00
industrial, and 35 percent by the agricultural sector.
20.00 Based on EMB monitoring, 60 percent of the rivers in
BOD (mg/li)

15.00 this region fall under class C waters. In the Bataan

10.00 coastal area, four monitoring stations (Matell, Villa
5.00 Carmen, Villa Leonora, and Barangay Wawa) show
0 total coliform count above the water quality criterion
1999 2000 2001 2002 2003 2004

STANDARD -- 10mg/L
of 5000 most probable number (MPN)/100 ml (Class
Manila Bay Lambingan Laguna

Jones Guadalupe Vargas Figure 16. Total Coliform Count of

Sanchez/San Juan Bambang Marikina
Bathing Beaches in Manila Bay, 1996-2004
Source: DENR-Environment Management Bureau.
350,000

currently a problem, siltation continues to be an 300,000

TOTAL COLIFORM COUNT (mpn/100ml)

issue. Of greater concern are the increasing levels of 250,000

heavy metal. The Laguna de Bay Institutional 200,000

Strengthening and Community Participation Project 150,000

(LISCOP) is expected to improve environmental 100,000

quality in the lake and its watershed, and will 50,000

strengthen the institutions that are responsible for its 0

1996 1997 1998 1999 2000 2001 2002 2003 2004
management. STANDARD -- 1000 mpn/100ml

Punta Grande Beach Celebrity Beach Lido Beach Navotas Fishport

Region III-Central Luzon. Although it has a small Costa Eugenia Beach San Isidro Beach Bacoor Garden Coast Beach

Villamar Beach Luneta Park

land area, this region ranks third in the number of Source: DENR-Environment Management Bureau.

Figure 15. Fecal Coliform Count of Bathing Beaches SC). Thus, in 2003, these beaches were not suitable
in Manila Bay, 1996-2004 for recreational use.
200,000

Region IV—Southern Tagalog. Region IV A & B

FECAL COLIFORM COUNT (mpn/100ml)

180,000
160,000
are comprised of 11 provinces: six on mainland
140,000
120,000 Luzon, and five island provinces that are coastal
100,000 tourist attractions. Rivers were not monitored for
80,000
BOD and DO from 1996 to 2001. Instead, four bays
60,000
40,000
were monitored in this period: Cajimos, Calancan,
20,000 Puerto Galera, and Pagbilao. All of the bays passed
0
1996 1997 1998 1999 2000 2001 2002 2003 2004 the 5mg/l criterion for Class SA, SB, and SC for DO
STANDARD -- 200 mpn/100ml
measurements.
Punta Grande Beach Celebrity Beach Lido Beach Navotas Fishport

Costa Eugenia Beach San Isidro Beach Bacoor Garden Coast Beach

Villamar Beach Luneta Park Region VII—Central Visayas. Three bays were
Source: DENR-Environment Management Bureau. sampled in the region from 1996 to 2001. Only DO

32

levels were checked, and these indicated that all of the
bays passed the Class SC criterion.
Pollution costs. The total annual economic loss
caused by water pollution is estimated at PhP67
billion (US$1.3 billion). This figure includes, PhP3
billion for health costs, PhP17 billion for lost fisheries
production and PhP47 for lost tourism revenues.
Losses due to environmental damage, in terms of
compensation and claims, are also on the rise in the
Philippines.
Chronic or preventable diseases impose large
economic and social costs stemming from worker
days lost, and excess morbidity and mortality.
Contaminated drinking water is one of the most
prevalent causes of illness in the Philippines. Thirty-
one percent of illnesses between 1994 and 2000 were
traced to water-related diseases.38 Known diseases
caused by polluted water include gastro-enteritis,
diarrhea, typhoid, cholera, dysentery, and hepatitis.
According to the Department of Health, in 2000,
more than 500,000 morbidity and 4,200 mortality
cases were attributed to water-related disease.
Avoidable annual health costs due to losses in direct
income and medical expenses are estimated at
PhP3.3 billion.
The Philippines has beautiful beaches, which are its
main tourist attraction. In addition to recreational
use of beaches, coral reef diving, and whale watching
also draw tourists. In 1997, the pristine waters of
Boracay Island, an international tourist destination
in Region VI, experienced a 60 percent decline in
occupancy rate at area hotels because of the news of
high levels of coliform bacteria. What happened in
Boracay could easily happen on other equally-fragile
islands of the country unless something is immediately
done to address the pollution problem.
38
DOH-National Epidemiology Center.
PHILIPPINES ENVIRONMENT MONITOR 2004
The recently launched Beach Ecowatch (Box 8)
project of the DENR-EMB aims to use public
disclosure to put pressure on local governments,
resort owners, and communities to protect the water
quality at their beaches and ensure sustainable
tourism development. In addition, losses to family
income due to the demand for safe bottled water are
not insignificant.
The widespread use of bottled water may also be
considered an indirect cost of water pollution.
According to the Water Quality Association of the
Philippines, almost 45 percent of Metro Manila
residents (4.8 million people) are willing to buy
bottled water. At PhP50 for five gallons (or PhP2,642
per m3), bottled water is 100 times more expensive
than tap water, which would cost PhP10–19, per
cubic meter of water (Box 9). The poor, who rely on
vended water as their main source, devote nine
percent of their household expenditure to buying
water (Figure 17).
Box 8. Beach EcoWatch in the Philippines
The Beach EcoWatch Program is an environmental
improvement and monitoring program to improve public
awareness of water quality at Philippines beaches, and
improve compliance by hotel and resort owners, and
LGUs. Information provided by the Beach EcoWatch
Program allows the public to persuasively promote the
improvement of beach water quality. The ultimate goals
of the program are tourism promotion, ensuring the
safety of swimmers, and supporting an informed use of
beach resources.
Source: Authors.
Sewerage and sanitation. Indiscriminate disposal
of domestic wastewater is one of the main reasons for
degradation of water quality in urban areas. Unlike
the agricultural and industrial sectors, where the cost
of controlling water pollution can be passed on to the
polluters themselves, off-site domestic wastewater
collection, treatment, and disposal are considered
basic public services.
33
 Box 9. The Cost of Water to the Poor Figure 17. Share of vended water as percentage of
total household expenditure
Poor households in the Philippines spend a greater
proportion of their income per month on water than 10
9%
do rich households. Although half of all poor and rural 9
households consume less than 41.6 l/person/day, the 8
expenditure shares for water are considerable. Self- 7
provisioning and vended water account for the greatest 6
5%
portion of the cost. % 5
4
Only 25 percent of the poor access the full waterworks
3
systems that have individual household connections.
Thirteen percent of poor households access piped systems 2

with community faucets, and 31 percent are provided 1

water from springs or protected wells. The remaining 0

Poor Rich
water supply is provided to households in self-provision Source: World Bank, 2001a.
and vended water—29 percent and 2 percent respectively.
An average poor household, reliant on vended water
as the main water source, spends 80 percent more on
urban water supply and sanitation services. The
vended water than an average rich household. Manila Water Company, Inc., a concessionaire of the
Source: Asian Development Bank, 2004. MWSS for the east zone, is in the process of setting
up 29 decentralized sewerage treatment plants and
Only one percent of the country’s total population is three septage treatment plants. The World Bank
connected to sewer systems (Table 5). The National continues to assist the Government in expanding
Urban Sewerage Strategy of 1994 holds LGUs sanitation coverage through the Metro Manila Second
responsible for the provision of sewerage and Sewerage Project (1996–2003), LGU Urban Water
sanitation improvements.39 However, water supply Supply and Sanitation Project (1997–2010), and the
and sanitation systems outside Metro Manila, which Water District Development Project (2001–2006).
were turned over to LGUs in poor condition, have On the whole, sanitation and sewerage investments
not been effectively managed or improved. Local are a small fraction of the total investment in the
governments lack the capacity, technical knowledge, “Water Supply and Sanitation Sector” (Table 6), and
and funds needed for proper management and there is considerable under-investment in sanitation
maintenance of these systems. While LGUs were given and sewerage. It is estimated that over a ten-year
the option to form semi-autonomous water districts period, the country will need to invest PhP250 billion
to manage their urban water supply and sewerage (nearly US$5 billion) in physical infrastructure
systems, with support from the specially-created (Figure 18).
Local Water Utilities Administration, the provision of
Table 5. Sanitation Services in the Philippines
sanitation services have not been assigned a high
Population Access to sanitation services
priority.40 Sewerage services outside Metro Manila
(millions) sewerage on-site none
are almost non-existent, leaving most urban poor
Metro 13.3 4% 41% 55%
excluded from sewerage services. Manila
(MWSS)
In the capital city, the Metropolitan Waterworks and Other 63 0% 88% 12%
Sewerage System (MWSS) is responsible for providing urban and
rural
National 76.3 1% 74% 25%
39
ADB, 1999.
40
Source: Robinson, 2003.
Robinson, 2003.

34
 PHILIPPINES ENVIRONMENT MONITOR 2004

LEGISLATION AND INSTITUTIONS Figure 18. Project Investment Plan for Sanitation
The Clean Water Act was passed in 2004. Rules and 8,000 7380
regulations for this Act are currently being drafted 7,000 6488

and debated. The Act seeks to designate specific water 6,000 5596

Cashflow million PhP

5,000 4704
quality management areas. These will be managed by 4384 4459 4459
4,000
a governing board composed of political leaders,
3,000
representatives of government agencies, registered
2,000
NGOs, water utilities, and the private sector. The
1,000
Board will be responsible for formulating strategies
0
that will effectively implement the Act’s provisions.

1999/00

2000/01

2001/02

2002/03

2003/04

2004/05

2005/06
In areas where water pollution has already exceeded
limits, further polluting sources will not be allowed. Source: NEDA, Medium Term Public Investment Program and National
The Act also establishes a National Sewerage and Strategy and Action Plan for Philippines Urban Sewerage and
Sanitation,1999.
Septage Management Program that will allot funds
for construction and rehabilitation of infrastructure
for wastewater management. A five-year time horizon Although the National Water Resources Board
has been provided to connect existing sewage lines in (NWRB) is the primary agency tasked with enforcing
business centers and households with the available the Water Code of the Philippines (PD 1067), there
sewage system in Metro Manila and other urbanized are approximately 30 government agencies currently
areas. A Water Quality Fund will be created to partly involved in water resource management. In addition
meet the requirements of the Act. The Act also to operating under unclear and overlapping mandates,
supports the implementation of a wastewater charge many of these agencies also lack sufficient budgets. In
system in all management areas including the Laguna 2002, NWRB was reorganized, with major activities
Lake Region. decentralized to three water operations offices in
Luzon, Visayas, and Mindanao, so as to provide
Table 6. Investment in Sanitation and Sewerage increased local autonomy in decision-making.
Coverage Population Service Investment
Area (in million) Coverage Requirement Government-public initiatives are making the water
(in million) (in PhP B) management approach more comprehensive in
2005 2015 2005 2015 2005 2015
scope and reach.
Urban 48.85 55.58 9.77 27.79 55.69 158.40
(58%) (60%) (20%) (50%)
Rural 35.37 37.06 17.69 18.53 50.42 52.81
Inadequate technical staff and resources, and
(42%) (40%) (50%) (50%) insufficient data on polluters point to the need for
Sub- Total 84.22 92.64 27.46 46.32 106.11 211.21 more targeted inspections. The processes of the
(100%) (100%) (33%) (50%)
Program Support Pollution Adjudication Board could be more
Operating Costs Urban 3.91 11.12 streamlined and decentralized, to make enforcement
Operating Costs Rural 6.28 6.58 actions more effective. Long-term environmental
Support Activities 13.79 27.46 monitoring programs for major waterways are not
TOTAL 130.09 256.37
regularly undertaken for such basic indicators as
Source: ADB, 2001.
Notes: Investment requirement was computed based on constant BOD and DO, making it difficult to establish trends
2002 rates. Support activities were estimated at 13% of the Capital and understand changes.
Cost.

35

Dirty water is a health threat.
Source: DENR-Public Affairs Office.
Small but positive steps: Given the financial
constraints LGUs face in implementing sanitation
and sewerage projects, a way forward is to take small
steps such as scaling-up pilot projects and low-cost
initiatives. Examples of such initiatives include the
following:
• Drainage project of Cabanatuan City, which has
integrated dry weather flow interceptors;
• Sewage interceptor systems and treatment in
Boracay and Dumaguete City;
• Communal septage collection, treatment, and
disposal in communities (Barangay Environmental
Sanitation Project’s sub-project initiatives) in
several barangays in Palawan and Panabo City); and
• Low-cost technology options for ecological
sanitation that are being piloted in San Fernando
City, and low-cost treatment initiatives with private
participation in LISCOP and Local Initiatives for
Affordable Wastewater sub-project sites.
MINING-RELATED POLLUTION
Recognizing its significant potential for fueling
sustained economic growth, the government has
moved from a policy of tolerance to that of active
promotion of environmentally- and socially
responsible mining.
36
Environmental impacts. The greatest risk arising
from a medium- or large-scale mining operation is a
major tailings spill, such as the Marcopper mine
accident (Box 10). Environmental effects of artisanal
mining are mostly related to mercury pollution, soil
erosion, sedimentation of water bodies, and a total
lack of land-reclamation after closure. Of these
impacts, the most dangerous and irreversible for
human health is mercury contamination. Several
studies have looked into mercury pollution, based
mainly on the experience in Diwalwal, Compostela
Valley—the largest and most controversial small-
scale mining site in the country. These provide
evidence of worsening mercury pollution due to
mining activities in the area. In the past years,
water samples at the mining site in Diwalwal showed
higher concentrations of mercury than those in other
gold rush areas in the world.41 Results of a recent
survey conducted in two other important small-scale
mining sites further highlight the extent of mercury
pollution in the country. The majority of ball-mill
operators practicing amalgamation do not wear
protective gloves while handling mercury and other
chemicals used in processing. Some blowtorch the
amalgam indoors, seldom using retorts that could
prevent mercury from escaping into the air. While
some sites had tailings ponds, upon inspection, these
were found to be inadequate to handle the volume of
wastes produced.
The Mining Act of 1995 requires mining companies
to prepare Environmental Work Programs. Such plans
are meant to detail a company’s plans to achieve its
environmental objectives and commitments, including
the protection and rehabilitation of the disturbed
environment. Plans are expected to include the budget
(at least 10 percent of exploration expenditures) to
ensure that sufficient funds are available to meet
41
With Diwalwal under direct state utilization, and more effort exerted
to address the pollution problem, monitoring of the Naboc river shows
mercury levels are well within the standards.
 PHILIPPINES ENVIRONMENT MONITOR 2004

Box 10. The Marcopper Mine Accident

The Government estimated that the accident caused the loss of marine and fresh water life, estimated at PhP1.8 million.
In addition, the 27-km long Boac River was declared dead after the incident. Following the accident, cases were filed
against Marcropper and DENR officials. The Government halted mining operations, and measures were taken to contain the
continuing leakage.
A subsequent United Nations report defined the tailing spill as an ‘environmental disaster’, and estimated clean up costs
around $100 million, to be paid by Placer Dome, the Canadian company that owned Marcropper. While Placer Dome sold
its stake in the Philippine mine soon after the accident, it continues to pay the cost of the cleanup.
A comprehensive assessment of the impacts of the spill conducted by experts led by the US Geological Survey has been
commissioned by the Government . The study will look at the technical/mining, environmental, and health impacts of the
spill aims to determine the best options for a comprehensive rehabilitation of the area. Results of the study are expected to
be released soon and agreements made for both short term and long term actions. In the meantime, damages amounting
to PhP61 miilion for families affected by the spill have been paid with additional claims for PhP27million for Boac and PhP21
million for Mogpoc under process. The United States Geological Survey team’s monitoring of the Boac river in 2004 showed
that the river water is not toxic (using the Sea Urchin Toxicity Test), and that it meets US Environmental Protection Agency
criteria for cadmium, zinc, copper, lead, and nickel.
Source: http://www.twinside.org.sg/title/toxic-ch.htm, and DENR/MGB reports.

commitments. In addition, mining companies are also
required to prepare a comprehensive environmental
management plan for the life of the mining project or
an Environmental Protection and Enhancement
Program. An environmental guarantee fund mechanism
is being implemented to ensure just and timely
compensation for damages and progressive and
sustained rehabilitation. Monitoring and enforcement
need to be substantially strengthened. To improve
compliance with existing laws, and to increase the
efficiency of monitoring inspections, DENR’s Mines
and Geosciences Bureau (MGB) and EMB have
recently decided to form joint inspection teams for
each mining site. While it is still too early to assess the
impacts of this measure, the deployment of joint
teams is expected to ease the inspection burden on
DENR and the private sector.
Abandoned Mines. During the last two decades,
low economic viability, labor disputes, environmental
impacts, and intense public scrutiny have contributed
to the closure of a number of large and medium-scale
mines. Aware of this situation, the government is
attempting to address the issue of abandoned mines.
Twenty abandoned/inactive mines and quarry sites
have been surveyed for rehabilitation. The
enhancement and revegetation of the 120-hectare
tailing dam No. 3 of Maricalum Mining Corporation
in Sipalay, Negros Occidental, has been completed.
Three major strategies are being pursued—the
prevention of further abandonment through the
strict implementation of the Environmental
Protection and Enhancement Program and the Final
Mine Rehabilitation and Decommissioning Plan; the
rehabilitation and remediation of inactive mines; and
planning for the future through the formulation of
new guidelines. If properly implemented, these plans
will go a long way in restoring trust in the government,
especially among anti-mining groups.
Geohazard mapping. Landslides, such as those
that occurred in Panaon Island, Southern Leyte, in
Surigao City in December 2003, and in Aurora and
Quezon in November 2004, have been occurring
more frequently all over the country. These disasters
have highlighted another important aspect of the
work of the mining sector in the country—that of
geohazard assessment and the preparation of
geohazard maps. Geohazard assessment (which
involves the analysis of several thematic maps,

37

Artisanal mining.
Source: DENR-Public Affairs Office.
such as topography, vegetation, soil characteristics,
geology, fault line, rainfall, and population centers)
identifies the geohazards within an area, and what
type of development can be allowed to prevent or at
least minimize the impact of a particular geohazard.
Such mapping should serve as the basis for the
comprehensive land-use and development plan of
any locality. While DENR-MGB has been undertaking
this activity, it has only covered a small portion of the
country due to limited funds.
LEGISLATION AND INSTITUTIONS
The 1995 Mining Act is the main legislative provision
regulating the mining sector. At the same time, RA
No. 7076 regulates small-scale mining activities. An
earlier law, PD 1899, passed in 1984, was the first
legislation to legalize small-scale mining. It provided
for a licensing system which includes issuing permits
for small-scale mining within existing mining claims,
subject to the consent of the claim holder. Small-scale
mining, as defined in this law, refers to any single unit
of the mining operation having an annual production
of not more than 50,000 MT of ore, involving work
that is artisanal (either open-cast or shallow
underground mining without the use of sophisticated
mining equipment), with minimal investments in
38
infrastructure and processing, and relying heavily on
manual labor. Small-scale mining safety rules and
regulations were also promulgated in 1997, making
the Philippines the only country to have such a
separate and distinct safety rule for small scale
mining. Inspite of these rules, small scale mining in
the country has largely been been illegal and
uncontrolled. The DENR-MGB is tasked to regulate,
supervise, and support the minerals industry in the
country. It was only in 2004 that a small-scale Mining
Unit has recently been established within the Bureau
to handle the specific concerns of that subsector.
The Fraser Institute, in its 2004 Annual Survey of
Mining Companies, indicated that the Philippines
ranks high in terms of mineral potential but low in
terms of policy regime. Regulatory uncertainties and
strong social activism against current mining practices
are believed to have played a significant role in
slowing-down foreign and local investments in
mining. In addition, there are emerging concerns
about the government lacking the financial, technical
and institutional resources to execute the National
Minerals Action Plan.
Indigenous peoples, civil society groups, and the
Catholic Church have challenged some provisions of
the Mining Act of 1995, specifically the
constitutionality of the Financial and Technical
Application Agreement (FTAA), which allows up to
100 percent foreign ownership of mining projects.
These groups also contest that there is potential
conflict between the Mining Act of 1995 and the
Indigenous Peoples Reform Act. After over four years
of uncertainty, in January 2004, the Supreme Court
ruled that indeed the FTAA is unconstitutional, and
that exploration and mineral processing permits
may not be granted to foreign-owned corporations.
The motion for reconsideration filed by Western
Mining, the Chamber of Mines of the Philippines
and DENR was recently decided in their favor with
the Supreme Court reversing its original decision.
 PHILIPPINES
PHILIPPINE ENVIRONMENT MONITOR 2004
BLUE ENVIRONMENT

Approximately 60 percent of the population lives Figure 19. Current Status of Coral Reefs
within the 832 municipalities situated along 36,289 60
km of coastline. Coral reefs, mangrove forests, and
50
seagrass beds contribute to the richness, diversity and

% COVER OF LIVE CORALS

productivity of coastal and marine fisheries. These 40

resources also attract tourists, creating local business 30

opportunities, and generating income and

20
employment. While the Philippines has some of the
10
world’s most unique marine ecosystems, these have
been increasingly threatened by pollution, over 0
1981 1991 2000 2004
fishing, and other anthropogenic activities. This YEAR
Excellent Good Fair Poor
section presents the most recent trends in coral reefs, Source: Nanola C.L., H. Arceo, A. Uychaioco and P. Alino, 2004.
mangrove forests, seagrass beds, and coastal and
fisheries management. Figure 20. Reefs at Risk in East Asia
(as a percentage of total Coral Reefs)
COASTAL AND MARINE RESOURCES
Coral reefs and seagrass beds. The Philippines
archipelago lies in the “coral triangle”, the center of
the most diverse habitat in the marine tropics. The
reef area of the Philippines is about 26 percent of the
total reef area in Southeast Asia.42 The country’s coral
reefs are among the richest and most diverse in the
world, with about 464 species of hard corals and more
than 50 species of soft corals. However, over 30
percent of the reefs in the country are in poor Source: World Resources Institute, 2002.

condition. Moreover, there has been a steady decline

in the quality of the coral reefs—and only about 0.24
percent were reported to be in excellent condition in
2004, as compared to 4.3 percent in 2000 and 5.3
percent in 1991 (Figure 19). Ninety-eight percent
of these reefs are under medium or high threat
(Figure 20).43
Compared to other countries in the Region, Philippine
seagrasses are moderately studied (Table 7). A recent
survey of 96 sites identified a total of 978 km2 of
seagrass beds in the country.44 These beds are located
42
Nanola et. al., 2004.
43
Licuanan and Gomez, 2000.
44
Fortes and Santos, 2004.
in discontinuous areas along the shallow portions
of coastlines.
Despite a sophisticated understanding of the problems
associated with seagrass habitats, valuable seagrass
beds have declined continuously since the mid-1990s.
Natural causes aside, man-made impacts, especially
population growth close to shallow bays, lagoons, and
islands fringed by seagrass beds, and coastal
eutrophication have impacted seagrasses. Rising
poverty in coastal areas may be contributing to short-
sighted resource overuse and destruction. Destructive
fishing (blasting and poison) and over-fishing
continue to top the list of anthropogenic impacts on
the country’s reefs and seagrass areas. Poaching,

39
 Table 7. Status of Information about Seagrass including by local communities, and fishing-related
Habitats in the Philippines and other Asian Countries environmental risks were identified as the worst
Country Species A B C D E threats to reefs in the Visayan Sea. Sedimentation and
Australia 30 XXX X XX XXX XXX tourism-related activities were next in rank. In the
Philippines 16 XX X XX XX XXX Sulu and Celebes Seas, destructive fishing, over-
Vietnam 15 X X XX XX X fishing, sedimentation, and pollution were identified
Indonesia 13 X X XX XXX XX as the most common threats causing reef decline in
Malaysia 12 X X X XX XX the Philippines.45
Thailand 12 X X X X X
Singapore 7 X X X XX XX Nevertheless, the number of marine protected areas
Cambodia 6 X X XX XX XX is growing. These areas are displaying improved reef
China 3 X X XX XX XX parameters of living coral cover and fish abundance
Source: Fortes and Santos, 2004. and healthy seagrass beds, both inside and adjacent
Legend:
A: extent of the major beds that may be affected to the sanctuary portion of the protected areas. 46
B: status and uses of the beds
C: quantification of sediment loads, nutrients, organic materials &
toxic chemicals affecting the beds
Mangrove forests. There are conflicting estimates
D: identification of other related environmental problems of the remaining mangrove forest in the country.
E: whether there is are known solutions for the existing problems
XXX: well-studied; XX: moderately studied; X: not studied/ Estimates using straight line projection of data
implemented; plans exist
gathered from 1985 satellite images placed mangrove

Panoramic view of Mangroves before reforestation in 2002.

Source –DENR-Region 9.

Same panoramic view of Mangroves after reforestation in 2002.

Source –DENR-Region 9.
Taken before,1992, when the area was an abandoned fishpond & salt bed, and in 2002, after the mangrove reforestation in Barangay Mampang,
Zamboanga City.

45
Wilkinson et al., 2002.
46
Nanola et. al, 2004 and White et al., 2002.

40

cover between 112,000 to 140,000 hectares.47 However,
2002 satellite images analyzed by the National
Mapping and Resource Information Authority show
mangrove forest at 248,450 hectares. The vast majority
of the remaining mangroves (95 percent) are
secondary growth in areas with mixed uses- and types
of forest. Only five percent are old or primary
mangroves, and these are mostly found in Palawan.48
Conversion to fishponds, charcoal-making and over-
harvesting are the major causes of mangrove loss.
The most rapid decrease occurred during the 1960s
and 1970s when government policies encouraged the
expansion of aquaculture. Today, fishponds cover
about 289,000 hectares, 80 to 90 percent of which are
in areas once covered with mangroves.49 This
expansion occurred largely during a period when real
prices for fish and shrimp were steadily rising.
Between 1980 and 1988, despite a 1980 government
policy banning further conversion of mangroves to
fishponds and mandating the reversion of idle
fishponds back to mangroves, the rate of conversion
Mangrove plantation in Pagbilao, Quezon.
Source: DENR-Public Affairs Office.
47
DENR. Revised Master Plan for Forestry, 2003.
48
White and de Leon, 2004 and DA-BFAR, 2004.
49
ADB, 1993.
PHILIPPINES
PHILIPPINE ENVIRONMENT MONITOR 2004
was still about 8,200 hectares/per year.50 Illegal cutting
of mangroves for fuel wood, charcoal-making, and
construction is probably the second-most pervasive
intrusion on the resources.51
Coral reefs and associated species.
Source: DENR-Protected Areas and Wildlife Bureau.
Fisheries. On a national scale, fisheries contributed
2.2 percent of the GDP and 15.2 percent of gross
value added in the agricultural, fishery, and forestry
sectors in 2002. In the same year, exports of fishery
products amounted to PhP26 billion, with the top
commodity exports being tuna, shrimp, and seaweed.
In addition, the Philippines is the largest producer of
aquaculture products in Southeast Asia, with seaweed
production making the biggest contribution. In 2002,
a total production of 3.4 million tons of seafood was
registered, with an average annual rate of production
increase of 2.5 percent between 1990 and 2002. The
fishing industry provides employment to about one
million people (3.3 percent of the country’s labor
force), of which 68 percent is accounted for by the
municipal fishing sector, 26 percent by aquaculture,
and the remaining 6 percent by commercial fishing.
50
DENR, 1988.
51
White and de Leon, 2004.
41
 Figure 21. Decline in Philippine Fish Catch, Table 8. Economic Costs to Municipal Fishery
1950 to 2000 Production, 1997 to 2004
Ave.
Change Direc- Prod’n
Unit Loss.
Prod’n in tion of Val.
Year Prod’n (PhP
(in MT) Prod’n Change (PhP
Value B)
(%) (%) B)
P/MT
1997 924,466 – – 29,631 27.4 11.7
1998 891,146 -3.6 – 32,504 29.0 12.4
1999 924,693 3.8 204 33,561 31.0 13.3
2000 945,945 2.3 -39 34,459 32.6 14.0
2001 969,535 2.5 9 35,297 34.2 4.7
2002 988,938 2.0 -20 36,432 36.0 15.4
Sources: Dalzell P., P. Corpuz, R. Ganaden and D. Pauly, 1987 and 2003 998,665 1.0 -51 37,807 37.8 16.2
NSO, 2000,cited in http://www.oneocean.org.
2004 1,015,202 1.7 68 38,895 39.5 17.0
Ave. 924,466 1.4 – 34,298 31.7 14.7
It is also estimated that more than one million small-
scale fishermen depend directly on reef and other and small surface-living fish (mainly roundscads,
near-shore (mostly benthic)52 fisheries for their anchovies, sardines, mackerels, and round herrings)—
livelihood. The contribution of reef fish to total may be a combined effect of excessive fishing effort,
fisheries is estimated to be between eight to 20 percent inappropriate exploitation patterns, and coastal
(or between 143,200–358,000 tons per year). environmental degradation.

In the early 1980’s, municipal fisheries dominated the
sector, contributing more than half the national
output; but by the late 1990s, this share was down to
30 percent. In addition, the rate of increase in total
production of commercial fisheries has slowed
considerably, suggesting that there might be resource
limitations in fish capture, thereby threatening its
long-term sustainability.
A recent study by ENRAP (Knowledge Networking
for Rural Development in Asia/Pacific Region)
indicates a decline of 30 percent in selected municipal
fisheries and five percent in commercial fisheries due
to sedimentation, siltation, blast fishing, and muro-
ami, among others. The use of cyanide has also been
noted as a cause of habitat destruction. A recent
United States Agency for International Development

There is also clear evidence that over-fishing,

accompanied by greater effort needed per kilogram
of fish caught, is occurring in all important fisheries
of the country (Figure 21). Various country-wide and
site-specific fisheries assessments conclude that there
is an excessive fishing effort expended in surveyed
areas.53 The decline of fishery resources in the
country—particularly of coastal bottom-living fish

52
“Benthic” describes anything of, relating to, or occurring at A harvest of Tilapia at Taal Lake in Batangas.
the bottom of a body of water. Source: DENR-Public Affairs Office.
53
Green et al., 2003.

42
 PHILIPPINES
PHILIPPINE ENVIRONMENT MONITOR 2004

(USAID) report estimates that the Philippines loses Table 9. Cost to Commercial Fishery Production,
around $420 million annually in potential revenues 1997 to 2004
due to mismanagement of fisheries resources (Tables Ave.
Change Direc- Prod’n
8 and 9).54 Over-fishing alone is estimated to lead to Unit Loss.
Prod’n in tion of Val.
Year Prod’n (PhP
(in MT) Prod’n Change (PhP
annual losses of about US$125 million.55 Where there (%) (%)
Value
B)
B)
P/MT
have been overall yield increases, they can be
1997 884,651 – – 29,317 25.9 1.4
attributed to the compensatory contribution of 1998 940,533 -6.3 – 31,617 29.7 1.6
aquaculture. The importance of environmental 1999 948,754 0.9 86 33,984 32.2 1.7
concerns associated with aquaculture should, however, 2000 946,485 -0.2 -127 35,795 33.9 1.8
be seriously considered (see Mangroves in this section). 2001 976,539 3.2 1428 36,956 36.1 1.9
2002 1,041,360 6.6 109 37,366 38.9 2.0

LEGISLATION AND INSTITUTIONS 2003 1,045,316 0.4 -94 39,563 42.4 2.2
2004 1,070,725 2.4 540 40,908 43.8 2.3
The Philippines has numerous laws aimed at Ave. 956,387 2.8 – 34,295 32.8 2.0
protecting coral reefs, seagrasses, mangroves, and
their associated resources. Coral collection was and their related resources (Box 11). Laws have been
banned in 1978, and reefs and seagrass beds are passed to conserve and protect the remaining
considered environmentally-critical habitats under mangroves in the country, and policies have been
national law. The Fisheries Code (RA No. 8550) of promulgated to provide economic disincentives to
1998 addresses the need to manage and protect reefs the conversion of mangrove forests for fishpond use.

Box 11. Coastal Resources Management and Use Rights

Coastal waters are not subject to the same range of tenurial instruments and control and supervision by the central
government, as are forests. The Local Government Code provides a legal basis for local governments to establish use- rights
for coastal waters. Both the Local Government Code and the Fisheries code hold coastal local governments responsible for
planning, legislating, regulating, enforcing, monitoring, and evaluating sustainable coastal resource-use in municipal waters
and coastal areas. The Code uses municipal ordinances to declare certain areas sanctuaries or limit resource-use to particular
users. In limited cases, indigenous peoples may be able to use the Indigenous Peoples Rights Act to do the same. Use of the
Code, however, has been sporadic, and most coastal waters and resources remain open-access resources and face continued
overexploitation and resource degradation.
Fishpond license agreements are the only real tenurial instrument for coastal waters established by national law and policy.
These have generally been monopolized by the wealthy. This is because the majority of small-scale fishers have neither the
money nor the technical know-how needed to set up aquaculture projects. They also lack the political connections that
facilitate the granting of licenses and permits.
Municipal fishers are largely unhampered in moving from one municipal fishing ground to another. Moreover, municipal
governments are generally ineffective in protecting their marine waters from commercial fishers and in enforcing laws and
regulations. Development of coastal-resources-management best practices should benefit from the lessons learned in use
of forest-related tenurial instruments, where such instruments have been effective. Lessons are also available from local
governments and communities that have taken steps to establish de-facto tenurial arrangements in the form of marine
sanctuaries, zones, fishing regulations, and others using the authority devolved by the Local Government Code or, in some
cases, the Indigenous Peoples Rights Act.
Source: Adapted from World Bank 2004b.

54
DA-BFAR, 2004.
55
ICLARM, 2001 and Green, et al., 2003.

43
 The 1990s saw the issuance of new regulations
defining access and conservation of mangrove forests.
The Wildlife Resources Conservation and Protection
Act of 2001 aims to conserve and protect wildlife
species and their habitats, promote ecological balance,
and enhance biological diversity. In 2002, the Coastal
and Marine Management Office was formalized
within DENR to provide coordination both within
DENR and among national agencies and local
governments for integrated coastal management, and
to strengthen DENR’s Coastal Environment Program
initiated in 1993. In spite of these legislative and
institutional innovations, the Philippines still does not
have a nationally-recognized coral reef action plan,
and the Executive Order for Integrated Coastal
Management is pending approval by the President.
The Fisheries Code (1998) devolves protection of
coastal and marine resources, up to 15 km of the
general coastline, to municipalities and cities. To fully
operationalize this, the delineation of municipal
waters for local governments with islands needs to be
completed and coastal municipalities and cities need
to pass their local ordinances. However, guidelines
for delineating municipal waters for LGUs with
islands have yet to be issued. While some LGUs (100
of the 832 coastal municipalities and cities) are
beginning to implement integrated coastal resource
management programs that include coral reefs and
other habitats, many others lack the training and
resources to effectively implement such programs.
National government agencies, namely the DENR
and Bureau of Fisheries and Aquatic Resources
(BFAR), also have limited capacity to assist LGUs in
implementing such programs.
charcoal-making. Boundary delineation of mangrove
protection forests is found wanting in most areas of
the country.
Current mandates of DENR and BFAR tend to
separate fisheries from the coastal ecosystem. Several
DENR bureaus have contributed to coastal
management implementation, while BFAR considers
fisheries management within the realm of its expertise.
A Joint Memorandum Order between BFAR and
DENR, in principle, coordinates the activities of the
two agencies for coastal management; but in practice,
this coordinating mechanism has not been adequately
operationalized.
Role of NGOs, community-based groups, and
the private sector. National and international
NGOs, with their local partners, have been key actors
in gathering and sharing information on the status of
marine resources in the Philippines. Although there
has been no systematic official assessment of
Philippine reefs since the landmark nationwide
survey of coral reefs in the late 1970s, NGOs and
academic institutions have been providing data on
the status of Philippine coral reefs. In the last decade,
Earthwatch teams, fielded by the Coastal Conservation
and Education Foundation, have monitored several
reef sites in Mabini and Tingloy, Batangas (Box 12);
southern Bohol Island and Panglao; Negros Oriental;

Various community-based projects have engaged

coastal residents in reforestation, rehabilitation and
management efforts. Despite these interventions,
mangrove areas continue to be degraded and are Mangrove reforestation.
Source: DENR-Public Affairs Office.
threatened with conversion for settlement and

44
 PHILIPPINES
PHILIPPINE ENVIRONMENT MONITOR 2004

Box 12. Management, Tourism and Conservation at Mabini and Tingloy, Batangas
Mabini and Tingloy areas in Batangas Province are home to diverse and abundant coral reefs. These reefs provide fish to local
communities, and attract thousands of tourist scuba divers and snorkellers. This mix of beneficiaries presents a balancing
problem for reef managers.
The history of coral reef management in this area is closely linked to tourism. Scuba divers called for protection of their
best dive sites when one of the first diving resorts in the Philippines started in 1975. After the first area surveys in 1980,
tourist operators concerned about rampant illegal and destructive fishing proposed in 1982 a national marine park for
Sombrero Island and parts of Caban and Maricaban Islands. Since then a number of NGOs (Haribon Foundation; Earthwatch
expeditions; Biodiversity Conservation Network; Worldwild Fund for Nature; Friends of Balayan Bay Association; and Coastal
Conservation and Education Foundation, formerly Sulu Fund) have worked with the local communities to promote reef
conservation and develop alternative livelihoods. These NGOs have also monitored the reefs, including recording uses such
as the number of fishing boats, dropping of anchors, divers, shoreline development, and any other activities likely to damage
the reefs.
Although some damage from anchors, divers, and construction continues to occur, this area has seen success in reducing
overfishing and illegal fishing. The condition of the reef sites surveyed has been stable since 1997, with an abundance
of new coral growth and little evidence of physical damage. It is important that management in Batangas continue to
improve so that coral regrowth is encouraged and sustained. Barangay Sto. Tomas has recently declared the Batalang Bato
Reef (known as Pulang Buli Reef to divers) as a marine sanctuary that is off-limits to diving and fishing activities. Coastal
Conservation and Education Foundation started a community-based coastal resource management project in Tingloy in late
1999. Conservation was initiated by the tourism sector, and now the community and municipality are accepting responsibility
in caring for their surroundings.
Enforcement efforts have yielded several arrests and have expanded to three more towns within Balayan Bay. User-fee
collections from divers have generated more than PhP1 million which is enough to cover annual costs of the Bantay Dagat.
An integrated coastal management plan for Balayan Bay has been prepared, along with workshops and educational programs
for stakeholders.
Source: Adapted from World Bank 2004b.

and Tubbataha Reefs, among others. The Marine
Science Institute of the University of the Philippines,
and Silliman University have also conducted reef-
monitoring in many areas. More recently, Reef Check
has used volunteers to monitor reefs in selected
municipalities in the Visayas. Monitoring has also
taken place under bilateral or multilateral projects,
such as the USAID-funded Coastal Resource
Management Project. Among the reefs carefully
monitored in this project are six declared- and
proposed Marine Protected Areas. These are mostly
located in the south, such as Calape in Bohol and
Kiamba in Sarangani.
In a recent workshop conducted on Ecowatch for
Beaches in the Philippines (May 31–June 2, 2004),
citizens expressed the view that most successful “blue”
initiatives are those that empower communities and
their respective local governments to enforce laws
and manage resources within their jurisdiction. There
is widespread use of community-based management
in the establishment of marine sanctuaries. However,
these sanctuaries have only been effective in areas
where the local governments work in partnership
with the coastal community.
The private sector plays a vital role in supporting
adequate environmental compliance and enforcement
to improve the country’s existing environmental
record in coastal and marine resources management.
Tourism operators and small-scale enterprises are
highly dependent on the inflow of tourists to beaches,
coral reefs, and marine sanctuaries. These resources
need to remain pristine in order to sustain interest
and appreciation, and spur increased demand.

45
 Environmental Champion — EUGENIO PADEN
The first mangrove plantation in Banacon island, Bohol Province was established by Mr. Eugenio
Paden on his own. When he started planting mangroves in 1957, Mang Denciong, as he was
popularly called, was driven by curiosity and the need for continuous source of firewood and poles
for his nipa dwelling and fish coral. He was chided for being “crazy”, since no one in the island could
understand what he was doing. His first harvest ten years later yielded raw materials and cash from
the sale, prompting other islanders to start their own plantations. But the clamor for more space and
boundary-conflicts necessitated the intervention of the Bureau of Forest Development. The island
was placed under the Community Tree Farm (CTF) Program in 1980, and the Banacon Fisherfolks and
Mangrove Planters Association (BAFMAPA) was officially formed. Field technicians were assigned to
the area and mangrove plantations flourished. At the same time, fisherfolk saw the productivity of
their area improving, with more crabs, shrimps, shellfish, and fish. They also started seaweed farming.
As they harvested mature mangroves, they continued to plant new ones.
In 1989, DENR conferred a Likas Yaman Award (Natural Resource Award) on Mang Denciong for his pioneering efforts. The
Food and Agriculture Office (FAO) gave Mang Denciong the “Outstanding Tree Farmer Award” which he received in Bangkok
from the Princess of Thailand. In recognition of their accomplishments and dedication, the residents of Banacon were given
two community-based mangrove reforestation contracts and two family reforestation contracts for the Paden family. The
contracts have been completed and the areas turned over to the DENR. Banacon island now serves as a major source of
propagules for the DENR, the local government units, and private plantation efforts in Bohol and Cebu.
In 2003, the BAFMAPA received the first Philippine Wetlands Conservation Award for the people’s organization (PO) category,
a plaque, PhP50,000 as cash prize, and a nomination to the International Wetland Conservation Award. In 2004, BAFMAPA
was issued a Community-based Forest Management Agreement. While Mang Denciong has since passed away, his legacy
lives on in Banacon.

Mangrove underwater. Mangrove in Samar.

Source: DENR-Public Affairs Office. Source: DENR-Public Affairs Office.

46
 PHILIPPINES ENVIRONMENT MONITOR 2004
GLOBAL ENVIRONMENT

The Philippines is committed to implementing Figure 22. ODS Consumption in the Philippines
international environmental agreements. It is working and Montreal Protocol Phase-Out Schedule
closely with international and local partners to meet 4,000

global commitments. Notable among such 3,500

partnerships is the country’s program to support the 3,000

IN METRIC TONS
Montreal Protocol. Additionally, in 2003, the 2,500

government also ratified the Kyoto Protocol and the 2,000

Stockholm Convention. 1,500

1,000

Montreal Protocol. In 1991, the Philippines ratified 500

the Montreal Protocol, committing to progressively 0

1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
phasing out the use of Ozone Depleting Substances
Total ODS Consumption Montreal Protocol
(ODS), specifically chlorofluorocarbon (CFCs), until
Source: DENR-Environment Management Bureau-Philippine Ozone
a complete phase-out by 2010. In order to meet this Desk, 2004.
goal, CFC consumption must be reduced by 50
percent by 2005, and 85 percent by 2007 (from a Earth Probe TOMS Total Ozone
baseline of about 3000 MT in 1999). From 1995 to September 16, 2000
the end of 2003, CFC consumption fell by 58 percent,
from 3,382 to 1,422 MT, thus meeting the target
ahead of schedule. This performance was possible
due to the strict implementation of the quota system,
import licensing, and the National CFC Phase-Out
Plan, with active participation of Bureau of Customs,
the Technical Education and Skills Development
Authority of the Department of trade and industry
(Figure 22).

Further reduction in CFC consumption will be

addressed through the voucher system. Financial
assistance will be given to accredited refrigeration
and service shops to purchase tools and equipment
for better servicing, maintenance, and installation of
appliances, and air-conditioning in motor vehicles.
Piloted in November 2004, and to be implemented
nationwide in 2005, the voucher system targets the
servicing sector, which accounts for 75 percent of the
total CFC consumption in the country. Other sectors
to be regulated are foam and refrigeration
manufacturing and the metered-dose inhalers. To
control and regulate use, importation, and distribution
Source: NASA, 2000.
of methyl bromide,56 DENR and the Department of
Agriculture’s Fertilizer and Pesticide Authority jointly
developed a strategy, and have started to review
modified licensing and permits to purchase methyl
bromide.
UN Framework Convention on Climate
Change and the Kyoto Protocol. Philippines
ratified Kyoto Protocol in 2003. Climate change and
56
Another ODS and a broad spectrum pesticide.

47
 global warming are critical issues for the Philippines
because of its extensive coastline. Initial studies on
the impact of climate change in the Philippines show
that temperatures could rise by as much as 2.2 degrees
in the last quarter of this century. Moreover, many of
the scientific models confirm an increase in rainfall
in the wet seasons and a marked decline in dry
seasons. Preliminary maps show that Mindanao is
most vulnerable to projected temperature increase,
while Luzon is likely to be affected most by changing
rainfall patterns. Areas in Metro Manila could see a
rise in sea level ranging from 0.3 to 2 meters. This rise
could eventually impact freshwater aquifers and make
coastal communities increasingly vulnerable to
floods. A crop failure in Region II in the summer of
2003, and the bleaching of corals off Southern Luzon,
have both been attributed to temperature changes.
The Clean Development Mechanism (CDM) is a
cooperative mechanism established under the Kyoto
Protocol, to promote environmentally friendly
projects for sustainable development in developing
countries. The DENR, as the National Authority, will
undertake the assessment and approval of CDM
projects and monitor their implementation. To date,
DENR has endorsed four environmental projects for
Certified Emission Reduction credit purchase under
the PCF (Box 13). Related initiatives of the LLDA are
described in Box 14.
Stockholm Convention on Persistent Organic
Pollutants. Ratified in February 2004, a National
Implementation Plan that describes how the
Philippines will phase out sources of Persistent Organic
Pollutants (POPs) and remediate contaminated sites
in the country, is being prepared. An inventory of
POPs and the assessment of national infrastructure
and institutional capacity are being finalized. In
addition, a pilot project using non-burn technology
to treat polychlorinated biphenyls (PCBs) has been
prepared for possible GEF funding.
Basel Convention Hazardous Wastes. The
DENR-EMB, regulates the movement of hazardous
wastes to ensure that they are handled, collected,
treated, and disposed of in an environmentally sound
manner. Regular monitoring of the actual treatment
and disposal needs to be undertaken to ensure against
risks to people and the environment. The DENR has
registered 3,015 generators, 308 transporters, and 92
treaters/recyclers in 2004. Transboundary movement
of hazardous wastes for treatment and disposal
outside the country, import/export clearances, and
notifications are being issued.

Box 13. Clean Development Mechanism (CDM) initiatives under the Prototype Carbon Fund (PCF)
The PCF was created to pioneer emission reduction purchase transactions, and to support projects that generate high quality
certified emission reductions (CERs) suitable for registration with the United Nations Framework Convention on Climate
Change (UNFCC) as meeting targets for Kyoto Protocol. To date, DENR through the Inter-Agency Committee on Climate
Change has endorsed the following renewable energy projects for CER credit purchase: (1) 25 MW Ilocos Norte Wind Farm
Power Project; (2) 30 MW First Farmers Bagasse Cogeneration Project, Talisay, Negros Occidental; and (3) 50 MW Victorias
Bagasse Cogeneration Project, Victoria, Negros Occidental. Of the three, the Ilocos Norte Wind Farm Power Project is at an
advanced stage and will be ready for commissioning by the first quarter of 2005. The Ilocos Norte Windfarm Power Project
is located in the remote part of Luzon, in Bangui, Ilocos Norte. The first of its kind in Southeast Asia, it is a zero-emission
wind energy technology that displaces diesel-based power generation and thereby reduces carbon dioxide and other
greenhouse gas (GHG) emissions. The PCF will purchase an average of 47,000 tons of CO2 equivalent or TCO2 in each of the
first 10 years of the project. The project’s Emission Reduction Purchase Agreement (ERPA) was signed by the World Bank and
the Northwind Power Development Corporation (NWPDC) in December 2004. The PCF is also considering other renewable
energy sources, including the 42 MW PNOC-EDC North Luzon Wind Power Project, 20 MW Palinpinon Geothermal
Optimization Project in Negros Oriental and the 40 Northern Negros Geothermal Project in Negros Occidental.”
Source: Authors

48

Convention on Biological Diversity. Since the
adoption of NIPAS in 1992, biodiversity conservation
programs including the establishment and
management of Wildlife Rescue Centers are being
implemented all over the country. The National Bio-
safety Framework Project and the Philippine
Biodiversity Conservation Priority Setting Project
represent the second iteration of the NBSAP. The
following policies have also been issued and
implemented: a) RA 9147—Philippine Wildlife
Resources Conservation Act; b) RA 9072—National
Caves and Cave Resources Management and
Protection Act; c) EO 430, creating the National
Committee on Bio-safety of the Philippines, including
the signing of the Cartagena Protocol on Bio-safety;
and d) EO 111, establishing the Guidelines for
Ecotourism Development in the Philippines.
Ramsar Convention on Wetlands (RAMSAR).
A total of 133 wetlands have been identified as critical
to biodiversity conservation and proclaimed protected
areas. Four of these sites, listed below, are included in
the RAMSAR list of Wetlands of International
Importance.
• Olango Island Wildlife Sanctuary,
• Naujan Lake National Park,
• Agusan Marsh Wildlife Santuary, and
• Tubbataha Reefs National Marine Park
Olango Island Wildlife Sanctuary and Naujan Lake
National Park are also recognized internationally as
ShoreBird and Anatidae Site Networks, respectively,57
while Tubattaha National Marine Part has been
designated a World Heritage Site. Efforts to
mainstream wetland conservation activities within
national land use planning continue to be undertaken
as part of the Philippine Wetland Action Plan. The
“Philippine Wetlands Conservation Award” seeks to
57
An international program nominating key sites of global
importance to shorebirds and anatidae populations in the East
Asian-Australasian and East Asian Flyways, respectively.
PHILIPPINES ENVIRONMENT MONITOR 2004
Box 14. The Laguna de Bay Community Carbon
Project
The Laguna de Bay Community Carbon Project provides
Carbon Emission Reduction (CER) credits for
environmental interventions under the Laguna de Bay
Institutional Strengthening and Community Participation
(LISCOP). Within the framework of the Clean
Development Mechanism of the Kyoto Protocol,
LISCOP-funded subprojects and/or those identified in the
Lake Environmental Action Planning (LEAP) shall be
developed and CERs accounted for crediting under the
Community Development Carbon Fund (CDCF) and/or
BioCarbon Fund (BCF). Under the project, the Laguna
Lake Development Authority (LLDA) shall serve as the
carbon intermediary for various community activities
that result in verifiable CERs. Pilot subprojects that are
being developed include: (1) Tanay Microwatershed
Streambank Rehabilitation and Ecological Enhancement,
and (2) Tanay Solid Waste Composting Facility. Initial
estimates indicate that these pilots would result in CER
of 5,000-10,000 tons of atmospheric CO2 equivalent
(TCO2e) for 20 years and 4,039 TCO2e/year over 10-year
project lifetime, respectively. Other potential eligible
community activities include communal biogas
digester, reforestation, assisted-natural regeneration,
and agro-forestry.
Source: Authors.
Shoreland migratory birds, such as egrets are commonly found in
Olango waters.
Source: DENR-Public Affairs Office.
generate public and private interest in the wise use of
wetlands granted during the annual celebration of
World Wetlands Day.
Convention on International Trade in
Endangered Species of Flora and Fauna
(CITES). The implementation and monitoring of
49
 comprehensive program is being developed to
manage marine and coastal resources, and to ensure
the implementation of UNCLOS provisions.

International Convention for the Prevention

Long-tailed monkey, Macaca fascicularis.
Source: DENR-Public Affairs Office.
wildlife trade regulations has been strengthened by
the creation of 15 Regional Wildlife Monitoring
Teams. From 1995 to September 2004, 673 CITES
and 940 non-CITES permits were issued by PAWB,
generating an average income of PhP4.9 million and
PhP0.4 million respectively. Restaurants serving
exotic food are regularly monitored for infraction of
the Convention.
of Marine Pollution from Ships (MARPOL).
The Philippine Coast Guard is responsible for the
prevention and control of pollution in the country’s
territorial waters. In 1998 it established the Marine
Environmental Protection Command to ensure
compliance with marine pollution laws. The country
is an active participant in the implementation of
regional agreements, including the ASEAN Oil Spill
Response Action Plan (OSRAP), and Oil Spill
Preparedness and Response (OSPAR) Project; and in
the maintenance of OSPAR equipment and
information network system. There are four oil-spill
response centers in Manila, Cebu, Palawan, and
Davao. The coast guard continues to enhance its
capability through research on oil analysis, and
providing adequate response to abatement,containment,
and recovery of major- and medium oil spills.

Bonn Convention on the Conservation of

Migratory Species of Wild Animals (CMS).
The Philippines has worked toward the inclusion
of five species of migratory birds under the
2002 Conference of the Parties. These are:
Gorsachius goisagi, Platalea minor, Tringa guttifer,
Eurynorhynchus pygmeus, and Sterna bernsteini.

A landmark Memorandum of Understanding on the

conservation of marine turtles was signed by South
and East Asian nations in 2001.

Containment and recovery of oil spill.

United Nations Conference on the Law of the Source: PCG-Marine Environmental Protection Command.
Sea (UNCLOS). The National Marine Policy was
formulated to serve as the umbrella framework for
addressing ocean and marine concerns. A

50

CHALLENGES
Increased media scrutiny, public participation, and
awareness are leading to faster and more- effective
political decisions on environmental protection. As a
result, laws and ordinances have become more
comprehensive over time; yet their implementation is
found to be lagging. People are losing confidence in
the government’s ability and willingness to implement
policies and programs to improve the environment.
Based on the review presented in previous sections,
the following major challenges are identified.
Strengthening long-term national
1 commitment to environmental protection
is crucial to reversing current patterns of
resource use, and for implementing pollution-
prevention programs on a larger scale. Although
national laws should be upheld irrespective of the
administration in power, in reality, the priorities
change each time a new government is elected. This
leads to discontinuities and programmatic break-
down in bureaucratic agendas. In addition, a pervasive
culture of political patronage in government agencies
is seen as a significant obstacle to the systematic
implementation of regulations, and to improving the
quality of environmental governance.
Heightened public awareness will exert
2
pressure on both the private and public
sectors to uphold their responsibilities and
follow the law. Timely and accurate information on
environmental quality indicators and costs can
catalyze public participation. Sharing such
information encourages environmental stewardship
among citizens, improves the willingness to pay for
environmental services, and enhances the effectiveness
PHILIPPINES ENVIRONMENT MONITOR 2004
of economic instruments in achieving compliance.
For example, in the case of solid waste management,
low willingness to pay for garbage collection is a result
of poor services in the past and a lack of information
on the true costs and benefits of solid waste
management. Similarly the unwillingness to pay for
cleaner vehicles or fuel can be related to the absence
of easy to understand information on the health
effects of air pollution. Strong opposition to the siting
of waste treatment facilities is rooted in the not-in-
my backyard (NIMBY) syndrome.
3
Supporting private sector in the provision
of environmental services will help bridge
the gap between local government and
DENR responsibilities and resources. Budgetary
shortfalls significantly limit agencies’ ability to
implement environmental policies and services.
Despite budgetary shortfalls, most local government
units have not explored alternatives to large scale
public sector infrastructure projects. Partnerships
with the private sector are an alternative mechanism
for providing much needed environmental services.
For example, more private resources can be harnessed
to improve sanitation in Manila, which has one of the
lowest access rates for piped sewerage services among
Asian cities. The private sector or a quasi-government
organization may be allowed to collect, treat, and
dispose wastewater for a fee. Since the provision of
financing for such facilities is new to commercial
banks, there is a need to reduce investment
uncertainties and risks by considering preferential
credit and guarantees.
51
 Improved coordination and capacity
4 within local agencies is crucial to harmonize
the decentralization process of DENR with
that of the Local Government Units. For example,
institutions responsible for allocating land and
resource use permits rely on uncoordinated maps
and data sets. Local government agencies also need to
coordinate with other agencies to better provide
environmental services.
Modernizing monitoring, enforcement,
5 and public disclosure will strengthen
environmental compliance and
enforcement. Current enforcement efforts appear to
be constrained by weak and uncoordinated
monitoring systems, and by a lack of basic capacity to
translate information into environmental priorities.
To complement existing command-and-control
regulations, successful initiatives to promote
community participation, industry self regulation,
public-private partnerships, and market-based policy
Through industrial tree plantations denuded mountains are transformed into thriving production forests.
Source: DENR.
52
instruments could be scaled up. Examples include the
environmental user fee in Laguna de Bay and
EcoWatch, privatizing provision of environmental
services, and enterprise level and industry-wide
pollution efforts.
Streamlining bureaucratic processes will
6
encourage investment in natural resources.
Tenurial instruments issued by DENR,
under programs such as community-based forest and
coastal resources management policies, have formally
strengthened local rights. Yet, bureaucratic
complexities and delays have often resulted in
conflicts on the ground, and limited the potential of
these instruments to provide incentives for sustainable
management and investments. New institutional
arrangements such as Protected Area Management
Boards and provincial environmental councils could
bypass many of the existing institutional and
bureaucratic constraints, and encourage local
stewardship of natural resources.

RELEVANT WEBSITES
Organization
Department of Environment and Natural
Resources (DENR)
Environmental Management Bureau (EMB) www.emb.gov.ph
Department of Health (DOH)
National Water Resources Board (NWRB)
Laguna Lake Development Authority
(LLDA)
Asian Development Bank (ADB)
Partnership in Environmental Management
for the Seas of East Asia
Bureau of Fisheries and Aquatic Resources
(BFAR)
US-Asia Environmental Partnership
(US-AEP)
US Environmental Protection Agency
(USEPA)
United Nations Development Programme
(UNDP)
United Nations-Habitat (Water and
Sanitation in the World’s Cities)
Water Supply and Sanitation Performance
Enhancement Project (WPEP)
World Bank Water and Sanitation Program
(WSP)
World Health Organization (WHO)
Center Science and Environment (CSE)
World Bank
World Bank Water
National Environment Agency (Singapore)
Pollution Control Department (Thailand)
Environmental Protection Department
(Hong Kong)
The Ministry of Water Resource
(The People’s Republic of China)
Partnerships in Environmental
Management for the Seas of East Aisa
(PEMSEA)
Network of professional institutions in
Mediterranean (MEDCOAST), including
ICCOPS of Italy, Institute for Remote
Sensing of EU, and PAP/RAC of Croatia.
PHILIPPINES ENVIRONMENT MONITOR 2004
Web Address Description & Content
www.denr.gov.ph Overview of the programs and projects that help protect,
preserve, and enhance the natural resources of the
Philippines.
Focuses on environmental laws for various environmental
media, standards, and environmental quality status of the
country.
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environmental management of the Seas of East Asia,
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55
PHILIPPINES—AT A GLANCE
GEOGRAPHY
Area:. Total ......................................... 300,000 sq. km
Land ......................................... 298,170 sq. km
Water .................................... 1,830,830 sq. km
Boundaries:
North: Balintang Channel
South: Sulu and Celebes Seas
East: Philippine Sea/Pacific Ocean
West: South China Sea
Coastline:....................................................17,460 km
Maritime claims:
Total territorial water area incl.
Exclusive Economic Zone ...... 2,200,000 sq. km
Coastal ..................................... 266,000 sq. km
Oceanic.................................. 1,934,000 sq. km
Continental shelf area .............. 184,600 sq. km
Climate: Tropical: northeast monsoon (Nov. to
April); southwest monsoon (May to October)
Terrain: Mostly mountains, with narrow to
extensive coastal lowlands
Elevation extremes:
Lowest point: ..................... Philippine Sea 0 m
Highest point: ........................ Mt. Apo 2,954 m
Natural resources: timber, nickel, cobalt, silver, gold,
salt, copper, petroleum
Land use:
Arable land: ................................................19%
Permanent pastures: .....................................4%
Permanent crops: ........................................12%
Forest & wetlands: ......................................46%
Others: ........................................................19%
Environment – International agreements:
party to: Climate Change, Endangered Species,
Hazardous Wastes, Marine Dumping, Nuclear Test
Ban, Ozone Layer Protection, Biodiversity, Wetlands,
Whaling, POPs
Source: National Statistics Office. National Economic and Development Authority, Medium Term Philippine Development Plan 2001-2004 and Medium Term
Development Plan 2004-2010., National Economic and Development Authority, Recent Economic Performance and Prospects for 2004.Presentation, March
4, 2004. 2001 Philippine Fisheries Profile, Bureau of Agricultural Statistics, 2000 Philippines Statistical Yearbook-National Statistical Coordination Board.
World Health Organization, 2004. World Development Indicator 2000.
56
ECONOMY / SOCIETY
GDP (2004) ................................................ 1,148,003 T
GDP growth rate (2004)........................................6.1%
GDP – composition by sector:
Agriculture ..........................................................18.19%
Industry ..............................................................30.75%
Services ...............................................................43.67%
Unemployment rate (2003): ...............................11.4%
Gross Domestic Investment/GDP: .....................20.6%
Exports of goods and services/GDP: ..................46.2%
Gross domestic savings/GDP:.............................19.5%
Gross national savings/GDP: ..............................26.8%
Industrial production growth rate: ......................5.3%
Agricultural production growth rate: ..................4.9%
Agriculture-products: rice, coconut, corn, sugarcane,
banana, hog, broiler chicken, layer chicken, carabao,
beef cattle, dairy cattle, duck, goat, chicken eggs, duck
sardines, milkfish, oyster, mussels, tilapia, catfish
Exports (2004): ...................................... PhP 530,394 B
Imports (2004): ...................................... PhP 622,853 B
Exchange Rate: ...............................................56.04 PhP
Population (2000): ..................................... 76.5 million
Population growth rate: ......................................2.36%
Urban population (% of total population): .......... 56.9
Birth rate (2004): .....................24.63/1,000 population
Death rate (2004): ......................5.66/1,000 population
Infant mortality rate (2003):........... 29/1,000 live birth
Access to safe water (% of population): ......... 81.7%**
Access to sanitation (% of population): ............ 81%**
Life expectancy at birth: ..............70.15 years (average)
Literacy (total population): .................................92.3%
Elementary participation rate (2003): ...............90.1%
National capital: Manila
Administrative divisions (July 2004): 17 regions,
79 provinces
Independence: June 12, 1898
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