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National Conference on

Environment and Natural

Resources Financing

“Helping Local Governments

Fund Good Projects”

Crowne Plaza
September 23-24, 2009
Background and Rationale
• Increasing need for sound ENR management
• Requires sustainable sources of funding to
support programs and projects
• Adequate and appropriate options for ENR
financing has become a crucial concern for
DENR, OGAs, LGUs and civil society
• Opportunity to educate actors on the various
options for ENR financing
• A survey of LGUs covered by the DENR’s
programs and projects was conducted
from June-August 2009

• Baseline information gathered on the level

of knowledge, experience and interest of
LGUs with respect to the various
mechanisms for financing ENR
Profile of Respondents
No. of Provinces 32

No. of LGUs 107

No. of Respondents 172

- Male 124
- Female 48

Sources of funds for on-going ENR


• Internal Revenue Allotment (IRA)

• DENR and other government agencies

• NGOs, CDF, private sector, etc

◘ Government:

IRA (92%)
CDF (79%)
Public Bank Loan (68%)

◘ Private Sector:

Grant (56%)
Commercial loan (52%)

◘ MBI:

CSR (23%)
EMS (20%)
 Issues/Constraints in Accessing

◘ Process too bureaucratic

◘ LGUs are not familiar with schemes/

procedures for accessing private sector
financing windows

◘ Too many documentary requirements

 ENR Programs/Projects Planned for the Next
2-3 Years
◘ Environment

- SLF Construction/Operation
- MRF/Composting Facility

◘ Forest and Forestland Management

- Watershed Management/Upland Rehabilitation

- FLUP preparation/implementation

◘ Coastal Resources Management

- Implementation of CRM project

- Mangrove rehabilitation/reforestation
Possible Sources of Funds for
Proposed Projects

• Internal Revenue Allotment (IRA)

• DENR/other government agencies

• Bilateral/Multilateral agencies.
Conference Objectives

General Objective:

To provide the venue for creating further

awareness on ENR financing and
strengthening the ability of LGUs to
generate and access financing for their
ENR projects.
Specific Objectives:

a. To discuss various sources of environment

and natural resource finance, including
government (public sector), private sector and
market-based instruments;

b. To gain a better understanding of the

challenges, constraints and opportunities to
sustainable financing of environmental

Specific Objectives:

c. To provide a venue for sharing of “good

practices” in environment and natural resource
financing; and

d. To identify policy recommendations and

formulate a work program for the DENR and its
partners that will focus on capacity building
and other support in the area of ENR
Conference Design and

• Combination of plenary and small group


• Market place sessions where LGU

proposed projects will be presented
Anticipated Outputs
a. Better understanding of the range of sources,
options and mechanisms for ENR financing;
b. LGUs are able to identify and qualify areas where
capacity building is required, and take steps to
addressing these challenges in ENR financing;
c. Project concepts and ideas identified by LGUs for
ENR financing;
d. Work program developed by the DENR and its
partners that could consist, among others, the
following elements:

i. development of an information base of key sources of

ENR financing in the Philippines

ii. establishment of a formal network of local

governments in the Philippines focused on ENR
iii. design of a proposed series of sector-based round
table investment forums

iv. national and sub-national policy recommendations

and related capacity-building initiatives.