national report of philippines on the formulation of a

U N E P / S C S / N a t i o n a l R e p o r t 5 - P h i l i p p i n e sU N E P / S C S / N a t i o n a l R e p o r t 5 - P h i l i p p i n e s

National Report of Philippines on theNational Report of Philippines on theFormulation of a Transboundary DiagnosticFormulation of a Transboundary Diagnostic

Analysis and Preliminary Framework of aAnalysis and Preliminary Framework of aStrategic Action Programme for the SouthStrategic Action Programme for the South

China SeaChina Sea

2

NATIONAL REPORT

FOR THE FORMULATION OFA Transboundary Diagnostic Analysis

for the South China Sea

PHILIPPINES

iii

CONTENTS

1.0 INTRODUCTION ................................................................................................................. 11.1 AIM OF THE NATIONAL REPORT..................................................................................... 11.2 MAJOR WATER-RELATED ENVIRONMENT PROBLEMS ................................................... 11.3 COUNTRY BACKGROUND............................................................................................... 21.4 GEOGRAPHIC DIVISIONS USED IN THE ANALYSIS .......................................................... 3

2.0 DETAILED ANALYSIS OF MAJOR WATER-RELATED CONCERNS AND PRINCIPAL

ISSUES............................................................................................................................... 52.1 POLLUTION...................................................................................................................... 5

2.1.1 Sources of pollution..................................................................................................... 52.1.2 Pollution hot spots..................................................................................................... 102.1.3 Sensitive and high risk areas...................................................................................... 11

2.2 FRESHWATER SHORTAGE AND THE DEGRADATION OF ITS QUALITY ........................... 112.2.1 Surface water............................................................................................................ 112.2.2 Groundwater.............................................................................................................. 16

2.3 EXPLOITATION OF LIVING AQUATIC RESOURCES .............................................................. 212.3.1 Living freshwater resources ........................................................................................ 212.3.2 Living marine resources ............................................................................................. 22

2.4 MODIFICATIONS OF AQUATIC HABITATS........................................................................ 342.4.1 Freshwater................................................................................................................ 342.4.2 Marine habitats and resources .................................................................................... 342.4.3 Critical habitats, ecosystems and species of transboundary importance......................... 46

3.0 NATIONAL ANALYSIS OF THE SOCIAL AND ECONOMIC COSTS OF THE IDENTIFIEDWATER-RELATED PRINCIPAL ENVIRONMENTAL ISSUES ............................................... 58

3.1 SOCIAL AND ECONOMIC COSTS OF POLLUTION ........................................................... 593.2 SOCIAL AND ECONOMIC COSTS OF WATER SHORTAGE AND DEGRADATION OF ITS

QUALITY ........................................................................................................................ 603.3 SOCIAL AND ECONOMIC COSTS OF OVER-EXPLOITATION OF AQUATIC RESOURCES . 613.4 SOCIAL AND ECONOMIC COSTS OF HABITAT CHANGES................................................................. 62

4.0 ANALYSES OF THE ROOT CAUSES OF THE IDENTIFIED WATER-RELATED ISSUES ......... 624.1 ROOT CAUSES OF POLLUTION...................................................................................... 63

4.1.1 Domestic and solid wastes ......................................................................................... 634.1.2 Agrochemical loading................................................................................................. 644.1.3 Siltation/sedimentation............................................................................................... 644.1.4 Organic pollution in terms of biological oxygen demand (BOD)....................................... 644.1.5 Toxic and hazardous waste [THW] including heavy metals and mine tailings................... 644.1.6 Oil pollution............................................................................................................... 654.1.7 Harmful algal bloom (HAB)......................................................................................... 65

4.2 ROOT CAUSES OF WATER SHORTAGES AND QUALITY DEGRADATION ........................ 664.2.1 Surface water quantity and quality............................................................................... 664.2.2 Groundwater quantity and quality................................................................................. 664.2.3 Hydrological alterations .............................................................................................. 664.2.4 Freshwater issues related to global changes (for example, El Ni effects)..................... 664.2.5 Maritime transport environment ................................................................................... 67

4.3 ROOT CAUSES OF OVER-EXPLOITATION OF AQUATIC RESOURCES ................................. 674.3.1 Unclear access arrangements (for example, overlapping roles of stakeholders)............... 674.3.2 Overpopulation, allocation and insufficient preferential access rights (for example, integrated

fisheries management)............................................................................................... 674.3.3 Absence of coastal zoning programmes ...................................................................... 684.3.4 Poor policies and weak law enforcement...................................................................... 684.3.5 Others ...................................................................................................................... 69

4.4 ROOT CAUSES OF THE DEGRADATION OF HABITATS AND THEIR MODIFICATION ........ 694.5 NON-MARKET OPERATIONAL ALLOCATIONS AND MARKETING BASED

INTERVENTION .............................................................................................................. 70

iv

5.0 ONGOING AND PLANNED ACTIVITIES RELEVANT TO THE IDENTIFIED WATER-RELATEDPRINCIPAL ENVIRONMENT ISSUES ................................................................................ 70

5.1 ONGOING AND PLANNED ACTIVITIES FOR POLLUTION ABATEMENT............................. 715.2 ONGOING AND PLANNED ACTIVITIES TO MITIGATE WATER SHORTAGES ..................... 725.3 ONGOING AND PLANNED ACTIVITIES TO REGULATE OVER-EXPLOITATION

OF AQUATIC RESOURCES............................................................................................ 735.4 ONGOING AND PLANNED ACTIVITIES FOR APPROPRIATE LAND AND COASTAL

ZONING.......................................................................................................................... 78

6.0 CONSTRAINTS TO ACTION............................................................................................... 786.1 POLLUTION ABATEMENT AND WASTE MANAGEMENT .................................................. 79

6.1.1 Information, scientific uncertainties and public awareness............................................. 796.1.2 Financial and economic ............................................................................................. 806.1.3 Legal, institutional and managerial .............................................................................. 80

6.2 WATER SHORTAGE AND DEGRADATION OF WATER QUALITY ...................................... 806.2.1 Information, scientific uncertainties and public awareness............................................. 806.2.2 Financial and economic ............................................................................................. 816.2.3 Legal, institutional and managerial .............................................................................. 81

6.3 OVER-EXPLOITATION OF FRESHWATER AND MARINE RESOURCES............................. 816.3.1 Information, scientific uncertainties and public awareness............................................. 816.3.2 Financial and economic ............................................................................................. 816.3.3 Legal, institutional and managerial .............................................................................. 82

6.4 HABITAT MODIFICATION................................................................................................. 826.4.1 Information, scientific uncertainties and public awareness............................................. 826.4.2 Financial and economic ............................................................................................. 826.4.3 Legal, institutional and managerial .............................................................................. 82

7.0 SPECIFIC ACTION PROPOSED FROM IDENTIFIED ISSUES AND PROBLEMS.................... 837.1 POLLUTION (POLLUTION ABATEMENT AND WASTE MANAGEMENT PROGRAMME)...... 83

7.1.1 The legal and institutional framework ........................................................................... 837.1.2 Policy initiatives and indicative guidelines .................................................................... 847.1.3 Public education and participation (especially in pollution control and abatement and waste

minimization) ............................................................................................................ 847.1.4 Monitoring, evaluation and control system.................................................................... 847.1.5 Capacity-building....................................................................................................... 85

7.2 FRESHWATER SHORTAGE AND DEGRADATION OF WATER QUALITY(SURFACE WATER ENHANCEMENT AND GROUNDWATER REHABILITATION ANDMANAGEMENT PROGRAMME)....................................................................................... 85

7.2.1 The legal and institutional framework ........................................................................... 867.2.2 Policy initiatives and indicative guidelines .................................................................... 867.2.3 Public education and participation............................................................................... 867.2.4 Monitoring, control and evaluation ............................................................................... 877.2.5 Capacity-building....................................................................................................... 87

7.3 OVER-EXPLOITATION OF LIVING AQUATIC RESOURCES (SUSTAINABLE MARINEAND AQUATIC RESOURCES UTILIZATION PROGRAMME)............................................... 87

7.3.1 The legal and institutional framework ........................................................................... 887.3.2 Policy initiatives and indicative guidelines .................................................................... 887.3.3 Public education and participation............................................................................... 897.3.4 Monitoring, Evaluation, Control and Surveillance (MECS) System................................... 897.3.5 Capacity-building....................................................................................................... 90

v

7.4 HABITAT MODIFICATION (LAND CARE AND INTEGRATED COASTAL MANAGEMENTPROGRAMME)............................................................................................................... 90

7.4.1 The legal and institutional framework ........................................................................... 907.4.2 Policy initiatives and indicative guidelines .................................................................... 907.4.3 Public education and participation............................................................................... 907.4.4 Monitoring, control and evaluation ............................................................................... 917.4.5 Capacity-building....................................................................................................... 91

8.0 IMPLICATIONS OF THE PROPOSED ACTION BY SECTOR ............................................. 918.1 FINANCE........................................................................................................................ 96

8.1.1 Financial planning and sustainability ........................................................................... 968.2 ECONOMIC DEVELOPMENT .................................................................................................... 96

8.2.1 Sustainable healthy environment integral to development .............................................. 978.2.2 Sustainability and equity ............................................................................................ 97

8.3 FISHERIES..................................................................................................................... 988.3.1 Food security and sustainable fisheries ....................................................................... 98

8.4 AGRICULTURE.................................................................................................................... 988.5 FORESTRY ....................................................................................................................... 99

8.5.1 Watershed management and silviculture...................................................................... 998.6 MANUFACTURING............................................................................................................... 99

8.6.1 Industrial zones......................................................................................................... 998.6.2 International maritime areas ......................................................................................100

8.7 MINING AND ENERGY ..........................................................................................................1008.9 LABOUR..........................................................................................................................1018.10 CONSUMERS ....................................................................................................................102

9.0 SUMMARY ......................................................................................................................102

vi

LIST OF TABLES

Table 2.1 Estimated daily solid waste generation in the PhilippinesTable 2.2 Average composition of solid waste in the PhilippinesTable 2.3 Income levels and the physical character of wasteTable 2.4 Estimated THW arising by industry sector in Metro Manila,

Region 3 and 4Table 2.5 Classification and use criteria of fresh surface watersTable 2.6 Classification and use criteria of coastal and marine watersTable 2.7 Status of Philippine coral reefs based on surveys by three projectsTable 2.8 Critical coral reef areas in terms of siltation, pollution, fishing and storm

impactsTable 2.9 Mangrove forest in the Philippines from 1920-94 (x 100 ha)Table 2.10 Seagrass assessment in seven sites in the PhilippinesTable 2.11 Conservation/utilization of seagrass beds in the PhilippinesTable 2.12 Priority issues and possible management options in the various

biogeographic sectorsTable 2.13 Sample exercise (not validated) to help elicit vulnerable and sensitive areasTable 3.1 Philippine nature sector accounts, 1988Table 5.1 Number of qualified SWIM projects by region and agencyTable 8.1 Matrix of past and present policies affecting the use of coastal resources

LIST OF FIGURES

Figure 1.1 Schematic territorial boundaries mapFigure 2.1 Coastal populations and regional industrial centresFigure 2.2 Pollution hot spots, sensitive and vulnerable areasFigure 2.3 Pollution high risk areasFigure 2.4 Groundwater map of the PhilippinesFigure 2.5 El Nino vulnerability map for the PhilippinesFigure 2.6 Philippine fish productionFigure 2.7 Biogeographic subdivisions based on coral reef affinitiesFigure 2.8 Mangrove cover and fishpond construction from 1920 to 1994Figure 2.9 Alternative strategies for existing Philippine mangrove resourcesFigure 2.10 Guidelines for the selection of mangrove areas for preservation, conservation

and fishpond developmentFigure 5.1 Fisheries sector programme (FSP) and coastal environmental programme

(CEP) sitesFigure 8.1 A coastal cross-section documenting major interrelationships between

economic policies and the utilization of coastal resources

UNEP SCS/National report PhilippinesPage 1

1.0 INTRODUCTION

1.1 AIM OF THE NATIONAL REPORT

This report provides a synoptic review of the state of water-related issues andproblems. It seeks to characterize water-related problems in terms of the environmentalstresses which accrue from pollution, freshwater shortage, over-exploitation of the aquaticresources and habitat modification. The evaluation of these problems is based on insightsfrom the emergent spatio-temporal patterns and the processes that may have brought themabout. It aims to assess the social and economic costs and the root causes of the issues andproblems as the bases for deriving possible solutions in the formulation of a framework foraction. The framework for action proposes changes in the perspective "that what is goodbusiness sense without sustainable development require shifts in the business as usualattitude" (for example, coming up with a functional zonation system and capacity-building forthe transboundary water concerns of the country). The programmes also suggest someareas of reform especially in some of the processes in the joint participation by governmentand stakeholders in the identification of site specific problems and solutions. This effort isprimarily an inter-agency governmental initiative of some of the national governmentorganizations under the coordination of the Department of Environment and NaturalResources - Environmental Management Bureau (DENR-EMB).

Although the inputs are primarily written by individuals from these agencies, theimportance of identifying institutional ownership and responsibilities for the proposed actionsin order to deal with water-related issues and problems needs to be re-emphasized andfurther processed. The Philippine contribution to the transboundary diagnostic study of theEast Asian Seas (EAS) region under the United Nations Environment Programme (UNEP) ispart of the project development phase to establish a joint transboundary programme forpossible funding by the World Bank Global Environmental Facility (WB-GEF). The report notonly provides the stimulus for a joint regional undertaking but the synopsis can serve as achecklist or a sort of report card system for evaluating these water-related issues bothnationally and in relation to regional and global partners. Despite the constraints in undertakingall the proposed actions, if the feedback cycle of monitoring, evaluation and adaptive actionwere enhanced by this study then this effort would already be a positive step forward.

1.2 MAJOR WATER-RELATED ENVIRONMENT PROBLEMS

The Philippines as a country that aspires to the status of a newly industrializingeconomy (NIE) by the year 2000, has to contend with the development option of how to findthe proper harmony in sustaining economic growth with enhanced social development in asetting of long-term environmental health and viability. To date, this seems to be an elusivegoal since most of the issues of pollution, freshwater shortage, over-exploitation of aquaticresources and habitat modification have worsened in many areas of the country (Ali 1997,unpublished). In addition, the question can be addressed as to how environmental resourcescan be allocated to provide sufficient benefits and responsibilities to the local people and thenation so that a realistic response to the regional and global community can be envisioned.


The root causes of the issues and problems related to the water environment can beboth systemic (for example, common property rights and zoning) and issue specific (such asenvironmental impact assessments (EIA) and the water code as it relates to pollution). Thus,the options for their appropriate solutions require an integrated approach which facilitatescoordinated action rather than overemphasizes sectoral concerns. At the same time, theappropriateness of these actions recognizes the specificity of both the local and nationalconcerns together with the general and specific relevance to the issues at hand. This meansthat clearly defined roles and responsibilities should be established so that improvedcoordination is facilitated.

Water-related issues pertaining to impacts on the environment and its resources areprimarily under the mandate of the Department of Environment and Natural Resources(DENR) and the Department of Agriculture (DA) especially the DA-Bureau of Fisheries andAquatic Resources (DA-BFAR). Unfortunately, there is a considerable chasm in coordinatingthe efforts of both institutions. In addition, concerns on freshwater utilization are in mostrespects under the National Water Regulatory Board (NWRB) under the Department of PublicWorks and Highways (DPWH) which is often quite inadequate to deal with issues related tothe environment such as watershed management and resource extraction. Nevertheless, theconstraints exhibited within national government organizations have been more thanovercome by the laudable initiatives of local governments (for example, Palawan) and non-governmental organizations (NGOs).

Some crucial information is derived from sources: (a) Deocadiz (1997) for issuesrelating to pollution; (b) Jacinto and Gervacio (1997) review of ongoing projects andprogrammes on the coastal and marine environment; (c) JICA study (1997) on ground andsurface water sources; (d) DENR marine affairs and policy; and (e) PCSD (1997) Action Planfor Philippine Agenda 21 for sustainable development.

1.3 COUNTRY BACKGROUND

The Philippines is considered part of the centre of marine biodiversity found in theIndo-West Pacific region. Around two thirds of its population of around 70 million Filipinos livewithin the coastal zone (Chua 1997). An annual population growth rate of around 2.3 per centwhich is largely dependent on fish as the main protein source suggests that fish productionrequirements would reach 2.7 million metric tons by the year 2010 (Bernaesck 1996). Theseestimates indicate that increased pressures on the path of upstream sources anddownstream receptors of water-related environmental concerns will need urgent proactiveaction. Nevertheless, a considerable increase has been gained to date in the enlightenment ofFilipinos, resulting from the seminal inflow of environmental consciousness in the early1980s. This provides an opportunity not only for a paradigm shift in the views towardsimproved environmental management in general but also a positive movement especially inthe integrated coastal zone management (ICZM) arena (see also Chua 1977). Aside from thewealth of expertise on matters of ICZM in the Philippines, its experience in community basedcoastal resources management (CBCRM) has been exemplary (OECF 1997). Based on theidentification of the strengths and weaknesses found in the history of the Philippineenvironmental movement and the government policies for environmental management, thereis cause for optimism.


This optimism holds despite the dire condition projected for the Philippines against theodds for the coming year as a consequence of the financial crisis starting in 1997. ThePhilippine situation should be taken as a lesson to be more conservative in makingunsustainable economic projections and that "sound economic fundamentals" require soundenvironmental fundamentals (Montes 1994). This principle of wise use to be sustained for thelonger term and the equitable allocation of the resources can be considered as inherentaspects in the evaluation of the water-related issues/problems, their causes and options forenhanced management. Much of the country's development is the result of the processes thecountry has taken in response to the socio-economic and biophysical forces of its history.

The country exhibits a north-south and east-west gradient, both as a result of thenorth-east and south-west monsoons and the influence of the Spanish and American colonialexperience. Historically, the country developed in the northern main island of Luzon where thenational capital was established in the Spanish period. The past resistance of the Muslimcommunities in the southern island of Mindanao to the predominantly catholic nationalgovernment has often marginalized this region. In the central region of the Visayan islands,the maritime and fishing industries have developed owing to its strategic position as a tradingcentre and the traditional fishing affinity of island communities. The influence of typhoons hasalso affected the social development of various regions, as seen in the northern Batanes andeastern parts of the country such as the Isabela, Aurora, Bicol and Samar areas which havebeen less accessible to past national development pushes.

The geological development of the archipelago has resulted in both distinct bioticdistributions, economic and socio-cultural development. The archipelago's position in thenorth-eastern flank of the South China Sea not only serves as a buffer to the typhoons and theinfluences of the Kuroshio currents but it is critical in the consideration of its national andtransboundary context in coping with pollution and biodiversity issues.

1.4 GEOGRAPHIC DIVISIONS USED IN THE ANALYSIS

The archipelago, composed of over 7,000 islands, is bounded by the Batanes regionin the north and the Palawan region in the south-west area (figure 1.1). Two main categoriesfor classifying geographic divisions are used in this study: one based on the politicaljurisdictions (15 regions) of the national government agencies and the other based on abiogeographic perspective (six to seven zones identified by Ali and Gomez 1994 andHayden and others 1984). Merging the two geographic classification schemes is pragmatic inorder to provide the functional context, taking into consideration the processes involved in theinteractions of human society and its biophysical environment.

In practice, it involves moving the government polity together with the community in theinstitutionalization and implementation of actions in a biophysical setting which is dynamic inits ecological and evolutionary nature. Some of the issues are: (a) the relevance of theprogrammatic environment impact assessments (EIA) to the regional industrial centres (RIC);(b) the problems of coping with the territorial jurisdictions of municipal and commercialfisheries; (c) the matching of the scales of management regimes for marine ecosystemssuch as in the large marine ecosystem concept utilized in the establishment of the Sulu andthe Celebes Sea Commission; (d) the transboundary treaty with Malaysia and the Philippinesfor the joint marine protected area management of the Turtle Islands; and (e) theestablishment of an area of peace and prosperity in the dangerous grounds area of the SouthChina Sea.

Figure 1.4.1 Schematic territorial boundaries map


110.00 115.00 120.00 125.00 130.00 135.000 .00

5 .00

1 0 . 0 0

1 5 . 0 0

2 0 . 0 0

2 5 . 0 0

East Longitude (degrees)

North

Latit

ude

(deg

rees)

-10000.0

-9000.0

-8000.0

-7000.0

-6000.0

-5000.0

-4000.0

-3000.0

-2000.0

-1000.0

-200.0

0.0

Depth (meters)

Straight BaselinesTreaty Limits200 n.mi. E.E.Z.Kalayaan Claim

- Republic Act No. 3046 amended by R.A. 5446- Treaty of Paris (1898)- Presidential Decree No. 1593; 1978- Presidential Decree No. 1595; 1979


2.0 DETAILED ANALYSIS OF MAJOR WATER-RELATED CONCERNS ANDPRINCIPAL ISSUES

The archipelagic nature of the Philippines provides some general features in its landand sea interaction. Its effect in the South China Sea is predominantly the landwardinfluences to the sea coming from the western sections of the country. Specifically theseareas would be from the north and south-western sectors of Luzon and western Palawan.Aside from its buffering effect on the influence of the Pacific north equatorial current, thecirculation of the inland waters has a great influence on the fisheries productivity andmovement of the straddling and shared stocks of the country. Interrelated concerns areinherent in the fluid nature of the water medium aside from the highly mobile attributes of itsassociated resources. For example, pollution in a water body not only affects the biota of theecosystem but can also modify the carrying capacity in the fisheries exploitation levels andeffect habitat changes or modification (for example, eutrophication from impoundment andreclamation in bays).

2.1 POLLUTION

2.1.1 Sources of pollution

2.1.1.1 Rivers

The status of the various river basins according to their classification shows that theydo not exceed acceptable criteria, but it is well known that the Pasig River basin is wellbeyond acceptable limits. The river basin area that drains into the Lingayen Gulf andBatangas Bay as of the moment may still be within acceptable levels but it is expected toexperience greater vulnerability in the future.

2.1.1.2 Coastal cities and coastal populations

As noted by Deocadiz (1997), 70 per cent of the country's population is found incoastal cities (figure 2.1). An ongoing collaborative study by the World Resources Institute(WRI) with the International Centre for Living Aquatic Resource Management (ICLARM) andothers uses the geographic information system (GIS) analytical tools together with expertvalidation of decision rules to highlight areas where reefs are at risk from coastal development(including pollution and maritime transport), siltation and overfishing. Some of the criteria setfor decision rules propose a potential area of impact depending on the area of influence asrelated to proximity to population centres. The synoptic map is utilized to obtain some firstapproximations of the general priority areas considered relevant to the South China Sea andthe country report. The primary pollution concerns relevant to coastal populations is sewageand solid waste disposal. Sewage affects BOD levels and reduces system carrying capacity. Around 34,307 tons of solid wastes are produced daily of which 62 per cent are collected(table 2.1). Around 72 per cent of what is collected is being dumped in open dumpsites whilethe rest is either recycled by scavengers or dumped in waterways. Deocadiz (1997)estimates that the main contributors for solid wastes are from residential areas (50 per cent),street sweepings (19 per cent) and markets (11 per cent).


Figure 2.1 Coastal populations and regional industrial centres (RIC)


Table 2.1 Estimated daily solid waste generation in the Philippines

1989Per capita daily ratePopulation, millionsDaily quantity, tonnesDaily quantity in coastal areas, tonnes

0.46 kg64.9029,85420,898


0.50 kg68.634,30724,015


0.60 kg85.5051,30035,910

Source: Deocadiz 1997.

Table 2.2 Average composition of solid waste in the PhilippinesTable 2.1

Component % By weightYard and field waste 33.5Fines and inerts 12.9

Wood 11.5Food waste 11.0

Paper and cardboard 10.2Plastic and petroleum Prod. 9.8Textiles 4.1Metals 3.3Glass 1.9Leather and rubber 1.8Total 100

Source: Adopted from Deocadiz 1997 citation of Consoer and others (1988).


Table 2.3 Income levels and the physical character of waste (percentage by weight)

Residential

Area income LevelWaste component

LowLowLowLowLowLowLowLow

(%)

Medium(%)

HighHighHighHighHighHighHighHi

gh(%)

Paper 6.26 9.04 7.56Cardboard 2.67 3.82 2.77Food and kitchen waste 8.35 11.38 10.16Plastic 13.50 8.86 5.60Textiles 8.39 3.12 2.85Rubber and leather 3.13 1.88 1.06Petroleum products 0.01 0.01 3.73Yard and field wastes 24.42 29.37 37.50Wood 7.66 11.74 13.12Fines 13.43 9.87 7.61Metals 3.64 4.73 2.51Glass 2.58 2.55 1.84Inerts 5.97 3.86 3.22Total 100.01 100.23 99.53

Source: Adopted from Deocadiz 1997 citation of Consoer and others (1988)

2.1.1.3 Industrial pollution from coastal installations

Decocadiz (1997) reports that of the 11,005 manufacturing establishments in thecountry more than half are found in Metro Manila. Of the 10,466 establishments which employmore than 10 people, around 47 per cent are found in Metro Manila manufacturing food (24per cent), wearing apparel except footwear (16 per cent), publishing industries and alliedindustries (6 per cent), textiles (5 per cent) and fabricated metals (5 per cent).


2.1.1.4 Discharge from upland and lowland based activities, by sector

Table 2.4 Estimated THW arising by industry sector in Metro Manila, Region 3 and 4

PSIC CODE Sector THW (Te/y) Arisings (%)12 Agriculture 4 021 Mining 327 031 Food and Drink 40829 1732 Textile 40143 1733 Wood 1968 134 Paper 3816 235 Chemicals 48929 2136 Non-Metallics 15629 737 Basic Metals 11809 538 Engineering 17642 839 Other Manufacturing 5862 340 Power Generation 10130 460 Distribution 78 070 Transport 24 0

973 - 411 0Healthcare 18000 8Construction 5000 2Municipal sludges 5000 2Municipal solids 6000 3Total 231601 100

Source: Deocadiz 1997; data were adopted from Entec Europe Ltd and others 1996.

2.1.1.5 Ports, harbours and maritime transport

One of the ways to evaluate the potential risks from port and harbour activities utilizedby the project of the World Resources Institute was to set up a risk criteria classification forreefs based on high or medium risk as follows:

(a) High risk areas are those within 20 km of a port and within 20 km of an oil rig;

(b) Medium risk areas are those within 20-100 km of a port and in congested shipping areasbased on the known shipping routes and narrowness of the passage.

This exercise (WRI and others 1998 ongoing) can serve as an initial indicator for thisstudy since reefs are among one of the most sensitive and valuable habitats in the marineenvironment. Nevertheless other sites without reefs and with less relevance to the SouthChina Sea transboundary site are important but are not considered for this report. The highestrisk areas considered are located in: Manila Bay, Subic Bay, Batangas Bay and Puerto GaleraBay whereas the medium risk areas are the areas in Bacuit Bay and the Malampaya Shell -Oxy exploration site. Note should be taken of the internal waters in the Mindoro Strait areawhich are considered at medium risk and similar narrow passage ways in the central andeastern Visayas.


Despite the low risk from maritime and harbour activities for the Spratlys (known asthe Kalayaan Island Group [KIG]) in the Phippines), one may consider this a sensitive areaconsidering the high level of shipping activity and the potential conflicts which may arise fromthe conflicting claims to the area.

2.1.1.6 Seabed exploration

In the Philippines, the only area with a potential offshore seabed development at themoment is located around 50 kilometres from the north-west Palawan area. Initialenvironmental impact studies on the development of an underwater gas pipeline from thePalawan offshore site crossing towards the Mindoro Straits into Batangas Bay and Bataansuggests some possible areas of concern. A possible oil blow-out in these areas maythreaten the environmentally critical areas of north-west Palawan within five days of a majoroil spill in the area. On the other hand these prospects may be remote and the developmentactivities at the moment concentrate on gas development.

2.1.1.7 Marine dumping

As mentioned in the previous accounts, Manila Bay has the highest impactsexperienced from marine dumping. Large fishkills and red tide occurrences have beenattributed to toxic waste dumping, domestic sewage and pollution from the factories aroundthe bay. Relevant to the South China Sea are the areas of Batangas Bay and Puerto Galerawhich are moving towards a medium to high risk condition. Frequent anecdotal accounts ofgarbage being dumped in these routes are cause for concern. The fishing and maritime tradeactivities in these areas have also a considerable link to shipping activity in the dangerousground areas of the South China Sea.

In addition, Subic Bay, Zambales which has accelerated its shipping activity and link toManila Bay is the next most important area for land-based influences in the marineenvironment.

2.1.1.8 Atmospheric inputs to the aquatic environment

Atmospheric inputs to the aquatic environment have often been attributed to someindustries and natural catastrophic events. Only the Calaca coalfired plant in Batangas mightbe considered to have affected the South China Sea through atmospheric inputs (attributed tohuman activity).

The Mt. Pinatubo eruption in June 1992 shows that the world’s atmospheric conditionhas been affected, aside from direct ashfall coming from the eruption itself. Initial estimatesof annual fisheries losses for that period are around $0.5 million (Ochavillo and others 1992).

2.1.2 Pollution hot spots

Pollution hot spots derived from areas considered to be regional growth centres andwhere there have been incidences of red tide suggest that the pollution hot spots which haveprimary importance to the South China Sea are the following: (a) Manila Bay and theCalabarzon area; (b) the Zambales area where the Subic Bay free port is located; and (c) theMindoro Straits where Batangas Bay and Puerto Galera Bay interact (figure 2.2). Importantprotection buffers should be considered between the Lubang areas, Mindoro and the BalayanBay and Batangas areas (i.e., the Verde Island Passage areas).


In addition, the inputs from mining activities in the Agno and Vi s river basins intoLingayen Gulf have primarily localized effects. Initial indications of interaction among theirhighly migratory fish species with the South China Sea is seen in some genetic affinities ofthe gulf and those from Zambales coast and northward in the Curimao area (Ochavillopersonal communication).

2.1.3 Sensitive and high risk areas

Areas with red tide occurrences are considered high-risk areas (figure 2.3). Thehighest occurrence of red tide is in Manila Bay with only occasional and localized records inthe Masinloc, Zambales area. Other areas are more eastward and found in constrictedpassages in the Visayas region. Although only in the initial stages, oil and gas development isongoing in the Malampaya and Camago field areas off north-west Palawan. Potential conflictsin the South China Sea, especially in the Spratlys, could create a high-risk situation owing tothe presence of a considerable number of military installations from the claimant countries.

Sensitive areas have high fisheries and ecological values and functions. Thesepriority areas in relation to the South China Sea are: the North-western Palawan areasespecially Bacuit Bay and the Mindoro Straits (including Apo reef) since they are knownpassage ways and spawning areas of endangered species and important fisheries stocks(for example, tuna and groupers or "lapu-lapu"). In addition proposals for marine protection fornesting areas of marine turtles and seabirds have been proposed in the Spratlys Islands andthe Batanes Islands biogeographic zone.

Radioactive waste dumping areas have not been documented for the area althoughproposals for consideration have been made to the Philippine Government.

2.2 FRESHWATER SHORTAGE AND THE DEGRADATION OF ITS QUALITY

2.2.1 Surface water

2.2.1.1 Sources of surface water and current status

Table 2.5 shows the classification of the main freshwater bodies in the Philippines,according to the standards of DENR. In general the JICA (1997) study suggests that evenwith half of the areas still having an AA or A classification, areas around Metro Manila showconsiderable problems from contamination of domestic, industrial and agricultural effluents.The rivers, which were vigorously monitored, were the Pasig River, Marikina River, and theTullahan-Tenejeros River. Aside from the pollution related problems, soil erosion anddeforestation are considered the most important concerns in sustaining surface water supplyand its quality.


Figure 2.2 Pollution hot spots, sensitive and vulnerable areas


Figure 2.1.3.1 Pollution high risk areas


Table 2.5 Classification and use criteria of fresh surface waters

Classification Beneficial useClass AA Public Water Supply Class I. Waters having

watersheds which are uninhabited andotherwise protected and which require onlyapproved disinfection in order to meet theNational Standards for Drinking Waters(NSDW) of the Philippines.

Class A Public Water Supply II. Sources of watersupply that will require complete treatment(coagulation, sedimentation, filtration anddisinfection) in order to meet the NSDW.

Class B Recreational Water Class I. Waters forprimary contact recreation such as bathing,swimming, skin diving etc. particularly thosedesignated for tourism purposes.

Class C 1. Fishery Water for the propagation andgrowth of fish and other aquatic resources.

2. Recreational Water Class II (Boatingetc.)

3. Industrial Water Supply Class I (formanufacturingprocesses after treatment)

Class D 1. For agriculture, irrigation, livestock wateringetc.

2. Industrial Water Supply Class II (e.g.cooling)

3. Other inland waters, by their quality, belongto this classification

Source: Department of Environment and Natural Resources.


Table 2.6 Classification and use criteria of coastal and marine waters by the Department of Environment and Natural Resources (DENR)

Classification Beneficial useClass SA 1) Waters suitable for the propagation,

survival and harvesting of shell fish forcommercial purposes.

2) Tourist zones and national marine parksand reserves established underPresidential Proclamation No. 1801existing laws and/or declared as such bythe appropriate government agency.

3) Coral reef parks and reserves designedby law and concerned authorities.

Class SB 1) Recreational Water Class I (Areasregularly used by the public for bathing,swimming, skindiving etc.)

2) Fishery Water Class I (Spawning areasfor Chanos chanos or Bangus andsimilar species)

Class SC 1) Recreational Water Class II ( e.g.boating)

2) Fishery Water Class II (Commercial andsustenance fishing)

3) Marshy and/or mangrove areas declaredas fish and wildlife sanctuaries.

Class SD 1) Industrial Water Supply Class II (e.g.cooling)

2) Other coastal and marine waters, by theirquality, belong to this classification.

Source: Department of Environment and Natural Resources.

In addition, Laguna Lake, which is presently under the jurisdiction of the Laguna LakeDevelopment Authority, has been considered a possible water source for the Calabarzonarea. Some considerable drawbacks have been pointed out for Laguna Lake mainly: (a) theproblem of eutrophication and pollution, and (b) costs in pumping water to Metro Manila mightnot be feasible since the level of the intake is low. As a result of the alarming rate ofdeforestation (2 per cent a year from 1990 to 1994), and despite considerable conservationefforts, an additional nine (from the original 99) watershed areas were established in 1994.Around 1.4 million hectares were proclaimed watershed forest reserves. A list of the reservesof from the Parks and Wildlife Bureau of the Department of Environment and NaturalResources (PAWB-DENR),which includes some noteworthy species, is available in the JICA(1997) report.

2.2.1.2 Water demand by sector

The total municipal and industrial water demand for Metro Manila, which is suppliedfrom surface water, is estimated to reach 72 m3 per sec in 2025. Around 25 m3 per sec inthe vicinity of Metro Manila is needed. This may come after the completion of the UmirayAngat trans-basin project. The following are alternative surface water sources which arebeing considered for further development: (a) Marikina river basin (Wawa dam); (b) Kaliwa


river basin (Laiban dam); (c) Kanan river basin (Kanan dam); (d) Umiray river basin (underconstruction); and (e) Pampanga river basin (Ring Dike around the Candaba swamp).

2.2.1.3 Impact areas for shortage or low quality surface water

An assessment of the water resources potential in each water resources region(WRR) using a water balance study (JICA 1997, sec. H) was undertaken, the total waterresources potential being derived from the sum of the groundwater and surface water.

This study suggests that the discharges of 80 per cent firmness in river basins ofLuzon island are small compared with those of Mindanao. Mindanao seems to have sufficientsupply owing to its more favourable climatic conditions. Surface waters in Luzon might alsobe affected by irrigation diversion in the upstream areas. Agricultural water will still bedominant in 2025 in most of the WWR except in Metro Manila where a large part of the supplywill be utilized by the municipal and industrial demand. As mentioned earlier, it is suggestedthat Metro Manila will have a severe water deficit by the year 2025 unless additional watersources are tapped.

2.2.1.4 Causes of issues and problems including sectoral demands and market failures

The unabated extraction of groundwater resources and the pollution of surface waterseem to continue and are aggravated by the disequilibrium in investment in the sector and therapid growth of the population (JICA 1997).

There exists a very fragmented approach by the regulatory government agencies.Private sector participation needs stimulating. In addition, there is a need to clarify ownershipof water districts and to define where the proceeds of privatization will accrue once a waterdistrict is privatized.

2.2.1.5 Impacts and global changes

As seen in the El Ni vulnerability maps, the western sector of the country is mostsusceptible to drought conditions.

2.2.1.6 Proposed interventions and sustainable rates of extraction

Most of the proposed interventions in the surface water use are geared to:

(a) Improving policies, laws and institutional arrangements such as the establishment of a super body to upgrade the National Water Regulatory Board;

(b) Establishing and implementing a master plan to integrate the various uses such asirrigation, watershed management, inland fishery, flood control, power generation anddomestic water supply;

(c) Establishing and implementing the Small Water Impounding Management (SWIM)project;

(d) Coordinating watershed management programmes for water resources development;(e) Rationalizing the privatization process especially water pricing and water rights

allocation.2.2.2 Groundwater

Freshwater resources have been classified as surface water and groundwaterresources. Present conditions suggest that groundwater resources grants occupy around3.4 per cent of freshwater use. Of these water resources grants, around 92 per cent is


consumed by the irrigation sector while the municipal (3.5 per cent), industrial (3.1 per cent)and others (1.5 per cent) occupy a small percentage (JICA 1997).

2.2.2.1 Groundwater aquifers and current status

Figure 2.4 shows a map of the groundwater aquifers and their status as of 1997. InLuzon, groundwater is utilized in a greater proportion than surface water while in the Visayasand Mindanao surface water is mainly utilized (JICA 1997).

2.2.2.2 Demand for its use (by sector)

(a) For level III (water districts supply system), 85.9 per cent use groundwater. Most ofthis production comes from wells rather than from springs. Around 560 Mecum/yr isproduced from groundwater for domestic use (Level III) (JICA 1997).

(b) Level I (areas outside level III with parts from rural and urban areas) groundwaterproduction is around 159.3 Mecum/yr with Central Luzon (42.4 Mecum/yr) and MetroManila (31.2 Mecum/yr) as the highest consumers of domestic water (level I) (JICA1977).

c) Level II water supply systems (communal faucet systems, barangay level watersupply) produce a total of groundwater production of 57.4 Mecum/yr with Metro Manila(11.3 Mecum/yr) and Central Luzon (7.0 Mecum/yr) as the highest consumers (JICA1977).

2.2.2.3 Impact areas of groundwater shortage and low quality groundwater

The groundwater potentials of the WRR have been calculated based on their relativesurface area, hydrogeology and the amount of precipitation they receive.

Based on the land-use patterns in these areas and a recharge rate based on around 5per cent of their annual precipitation volume, the impacts of water shortage have beenestimated for the WRR/provinces. This is tabulated in table C5 - C7 of the JICA (1997)report. It was also pointed out that urban development reduces groundwater rechargebecause of the reduction in the porosity of surface areas owing to covering by concrete,asphalt and other non-porous material.


Figure 2.4 Groundwater map of the Philippines


According to the Metropolitan Waterworks and Sewerage System (MWSS) as of 1995out of the 265 wells they owned 156 (58.9 per cent) were abandoned because of saline waterintrusion, lowered water levels or deterioration of the facilities (JICA 1997).

In the JICA report, table G7 shows that the projected water shortages and saline waterintrusion are related to the projected economic growth scenarios. The coastal areas of MetroManila have an estimated 1086 per cent demand/recharge ratio and Batangas 226 per cent.The projected shortage of level III supply systems and saline water intrusion are expected bythe year 2025 for Metro Manila, Zambales, Oriental Mindoro and Palawan (JICA 1997).

2.2.2.4 Causes of issues and problems including sectoral demands and market failures

Similar to the surface water situation, the causes of the issues and problems areprimarily socially induced, such as the following:

(a) No comprehensive water resources management plan;(b) Ineffective coordination of water resources management;(c) No clear basis for appropriating water grant amounts;(d) Inadequate measures and capacity to regulate users of water facilities;(e) Groundwater pollution and saline intrusion has been attributed to over-exploitation of

groundwater because of the above constraints.

2.2.2.5 Impacts of global change

Please see the El Ni vulnerability map (figure 2.5) to gauge how global changesaffect the Philippines.

2.2.2.6 Proposed interventions for sustainable rates of extraction

(a) Establish a Groundwater Resources Development Plan (GRDP)

(b) Prioritize projects according to needs: (i) Metro Manila and outskirts, (ii) Central Luzonplain area, and (iii) provincial cities water supply (water districts)

(c) More detailed groundwater balance study to be undertaken in the groundwater shortageareas (JICA 1997).

In general, it is reiterated that:

(a) The creation of a "super" regulatory body be established;(b) The National Water Regulatory Board be strengthened as an interim measure;(c) An independent regulatory body be established especially in the arbitration of water

rights;(d) Incentives for private sector participation to develop water resources with adequate

safety nets to safeguard the public and the water resources be provided.


Figure 2.5 El Nino vulnerability map for the Philippines


2.3 EXPLOITATION OF LIVING AQUATIC RESOURCES

2.3.1 Living freshwater resources

2.3.1.1 Status: productivity, catch levels, fishing pressure

Municipal inland production contributes only around 7 per cent (186,760 tons in 1996)of the total fisheries production in the country (JICA 1997). Most of the evaluation of theexploitation of freshwater resources was based on the medium term fisheries managementand development programme for the period 1993 - 1998. It mainly concentrates onaquaculture productivity targets to be set at around 156,910 hectares for fishpond areas. Theprojected fishpond area of 340,300 hectares was estimated based on socio-economicprojection targets.

The estimated water demand for aquaculture has doubled in recent years. This isnearly half the quantity for what would be needed for irrigation and a little over five times whatis needed for poultry and livestock for same period (2025).

The introduction of six species of tilapia and nine hybrid tilapia needs to be monitoredand evaluated. Through the Genetically Improved Female Tilapia (GIFT) - the production ofYY tilapias may improve fish yields in inland fishponds and cages and provide a cheap sourceof protein.

2.3.1.2 Endangered/transboundary/migratory species

`Of the 21 fish species reported by Conlu (1986) at least three endemic species havebeen noted: Harengula tawilis in Taal Lake, Mistichthys luzonensis, a goby which has beenconsidered the smallest fish in the world and is found only in Lake Bato, Lake Buhi andManapao, and Camarines and Pandaca pygmaea found only in the Navotas and MalabonRivers (McManus 1997).

2.3.1.3 Major problems/issues

(a) Introduced species may outcompete endemic and native species;(b) Groundwater extraction and other competing uses may affect the viability of fishpond

production;(c) Pollution of aquifers and saline water intrusion needs to be addressed especially in

coastal areas.

2.3.1.4 Economic losses because of over-exploitation

Undetermined but anecdotal accounts of fishkills and localized loss of native specieshave been reported for some areas.

2.3.1.5 Causes including sectoral demands and failures and internal and external marketdemands

The causes of the increase in freshwater loadings including sectoral demands(internal and external market demands) and failures are the following:

(a) Increased demand in aquaculture for higher value fish products;


(b) Increased population and human settlements that have resulted in greater demand forwater-use and associated resources;

(c) Aquaculture exports.


Although no unequivocal evidence has been shown in terms of the effects of globalchange in the productivity of marine fisheries resources, some anecdotal accounts of loweredproduction levels may be surmised from the 1997 El Ni year. In Bolinao, Pangasinanwhere the University of the Philippines Marine Sciences Institute (UPMSI) has been doingsome fisheries catch monitoring in the area, a considerable decrease has been observed (atleast three to four times lower in 1997 than in the early 1990s) in reef fisheries and milkfish frycaught in the estuarine area. This decrease may not be fully attributed to effects of overfishingalone since the possible increase in fishing effort may not be able to account for thisdrastically reduced catch. The low estimates may also be the cause for the low estimates(i.e., based on an underwater fish visual census) seen in the Spratly Islands as comparedwith those of past cursory records in the area. Yap and Gomez (1989) have suggested thatthe higher mortality and bleaching of some corals being monitored in 1982-83 may beattributed to the elevated sea water temperatures in the Bolinao reef flats. Perhaps, withlonger time series monitoring and retrospective analyses of standard fish catch per unit effortand non-fishery dependent aquatic resources estimates, the effects of human inducedreduction of aquatic resources vis-à-vis global impacts will be clearer.

2.3.1.7 Proposed interventions

(a) Expand water classification from criteria based only on beneficial human use to includeecosystem functional use;

(b) Implement integrated strategic action plan for freshwater ecosystem management andfisheries management;

(c) Prioritize proposed researches into indigenous species and find mechanisms for theirenhancement and conservation.

2.3.2 Living marine resources

Living marine resources include all living plants and animals found in the marinewaters, which extend from the coastal to the offshore areas of the archipelago. The majorecosystems bordering the coastline represented by the highly productive mangroveswamps/forest, seagrass beds and coral reefs are examples of thriving communities whichserve as breeding areas and habitat of fishes and other vertebrates, invertebrates and marineplants. These ecosystems also support endangered and threatened marine life such asmarine turtles, dugongs/sea cows and dolphins. The offshore waters support an array ofboth small and big pelagic species, i.e., tuna and tuna-like species, seerfishes and marinemammals such as whales and dolphins.

With the adoption of the United Nations Convention on the Law of the Sea (UNCLOS)and the extension of the maritime zone of coastal states to the additional 200-mile exclusiveeconomic zone, the Philippine territorial waters now approximately measure 2,200,000square kilometres with a coastal regime of 226,000 square kilometres and an oceanic regimeof 1,934,000 square kilometres. The shelf area which extends to a depth of 200 metres andrepresents 184,620 square kilometres is where the highly productive ecosystems are foundand where the bulk of fishing activities are conducted.


Noteworthy features of the coastal areas are the fringing reefs covering some 27,000-44,000 square kilometres (depending on the depth contour used, which is between 10-40fathoms) which border the country's 18,417 kilometre coastline. Coral reefs areconcentrated in the following areas: Palawan group of islands (37.86 per cent), Suluarchipelago (27.31 per cent), Visayas group (21.7 per cent), Northern Luzon (7.63 per cent),central and southern Mindanao (3.21 per cent), and the Turtle Islands Group (1.74 per cent).Philippine reefs serve as a habitat to 488 species of corals under 78 genera, 971 species ofbenthic algae and some 2,000 species of fish. Regrettably, almost 70 per cent of thecountry's coral reefs are in the fair to poor condition and only about 5 per cent are in excellentcondition (see also the section on habitat modification for causes of damage).

In conjunction with coral reefs are the mangrove forests which serve as nurserygrounds for fishes and invertebrates. Of the estimated 500,000 hectares of mangrove coverin 1918, only about 139,725 hectares now remain. Apparently, around a third of the seagrassbeds, which add to the stability of much of our shoreline and which also serve as criticalhabitat for many invertebrates and fish as well as endangered/threatened marine life, areestimated to have been damaged.

2.3.2.1 Status of productivity/ catch levels/fishing pressure

2.3.2.1.1 Productivity

Productive coastal ecosystems are significant sources of food, marine products andlivelihood in the Philippines. The ASEAN-Australia Coastal Living Resources Project (CLRP)in the Philippines showed a considerable number of fish species in mangroves, seagrassbeds and coral reefs. There are indications that certain species are common among theseecosystems. Those in mangroves and seagrass beds are mostly juveniles supporting furtherthe nursery functions of these habitats. Some pelagic species (for example, barracudas) anddemersal (for example, mangrove jack, snapper) spend their juvenile stages in mangrovesand go to deeper waters as adults. These observations indicate the interconnection of thesecoastal ecosystems. The exportation of particulate matter by mangroves and seagrass bedscontributes substantially to the energy requirements of the nearshore benthos. Efforts on theconservation and management of these ecosystems are principal concerns since ournearshore fisheries are highly dependent on them.

Coral reefs

In general, coral reefs, which are essentially distributed in warm tropical waters, havea primary productivity in the order of 1500-3500 gCm-2. Valuable reef resources are fishes,invertebrates and seaweeds. In the Philippines, fisheries (reef fish and invertebrates) yield is1-2 tons/ km-2/yr-1 for damaged reefs to 37 tons km-2 yr-1 for pristine or healthy reefs (Alcalaand Gomez 1985). However, these estimates had reached about 50 -70 tons km-2 yr-1 forpristine reef areas, such as the Spratly Islands (Ali and others 1997). Groupers, snappers,carangids and caesionids are among the commercially sought fish harvested from reef areasalong with the various species for the tropical aquarium fish industry. Of themacroinvertebrates, lobsters, crabs, prawns and cephalopods are highly priced catches.Other than these, some 160 species of macro invertebrates are commercially exploited onthe reef flat in Bolinao (McManus and others 1992). As for Philippine seaweeds, 350 recordedspecies have economic significance. Technology for commercial exploitation is available forsome species (Llana 1990).


Mangroves

Mean production measured from Philippine mangrove sites ranges from 10.72 to23.98 kgC10-4m-2d-1. Production rates are directly proportional to interstitial salinity,temperature and canopy cover and inversely proportional to soil erosion and light penetrationthrough the canopy (Fortes 1991). Mangroves are significant as nursery and feeding groundsof a variety of marine organisms. Primary production in mangroves supports not only theorganisms they harbour but also those in the adjacent areas through nutrient enrichment.Organic matter contained in ebb-tide waters of undisturbed mangrove areas is found to be2,947.6 gm. (PNMC 1986). About 54 species of crustaceans, 63 species of mollusks and 110species of fish have been reported in Philippine mangroves (PNMC 1987 in PCAMRRD 1991;de la Paz and Aragones 1985 in Dolar and others 1991), a number of which are commerciallyimportant (Camacho and Bagarinao 1986).

Mangroves are important sources of fishery products (for example, fish, shrimps,mollusks, crabs, fry) and forest products such as timber/wood and non-timber. They are alsosites of aquaculture, salt production and human settlement.

Seagrasses

Seagrass beds are likewise highly productive ecosystems. Tropical seagrass bedshave an average gross primary productivity of 4.650 gCm-2yr-1 on an average of 12.9 gCm-2day-1 (Philipps and Me z 1988). A study in the Philippines recorded a production value of0.9 gCm-2day-1 (Fortes 1995). Fish yield from seagrass beds indicates more than 10 mtkm-2yr-1 of fish alone with a production potential of 20 mtkm-2yr-1 in biomass of fish,invertebrates and seaweeds (McManus and others 1992). Siganids are the most abundantfish and occur in seagrass beds as adults and juveniles; others are mostly represented byjuveniles. Seagrasses support the siganid fry industry. The estimated annual catch of siganidfry from one sampling area in north-western Philippines is 2.6 million pcs. in 1986 and 12.2million pcs. in 1987 (Ungson 1990). In Bolinao, northern Philippines, a dominant species ofsiganid, Siganus fuscescens, registered an estimate mean biomass of 2 t km-2 and afrequency catch of 4 t km-2 yr-1 in seagraa beds (del Norte and Pauly 1990).

Of the invertebrates, shrimps, prawns and crabs are of commercial significance.Other economically important products with mariculture potential are sea urchins and seacucumbers.

In contrast to the high productivity of our coastal ecosystems, productivity of thePhilippine offshore waters is low. Data taken from the larger oceanographical expeditionssuch as the Dama Albatrosss and the Galathea described the surface layers of South-EastAsian waters as extremely poor in nutrients (Wyrtki 1961). Megia (1952) described thesurface waters in and around the Philippines as nutrient poor. A small organic production ofless than 0.5 gCm-2day-1 was reported from the China Sea, Philippine waters and theCelebes Sea (Nielsen and Jensen 1952; Doty 1958) without considering the verticaldistribution of productivity and depth of the phytoplankton layer. In contrast, production is highover the Sunda Shelf (i.e., the Gulf of Thailand, Malacca Strait, Java Sea and the watersbetween Sumatra and Borneo) where a value of 1.0 gCm-2day-1 is often exceeded. There isalso high production of 1.2-1.8 gCm-2day-1 in the Banda Sea, which is ascribed to upwellingin the area during the period of May to September. This situation supported the suggestionthat the interplay between wind and current systems acts to promote mixing through gyresand upwelling which may enhance the productivity of the region (Munro 1986). An overview ofthe Philippine offshore environment is provided by Villanoy and Jacinto (1993).


2.3.2.1.2 Production/catch levels

Philippine fisheries are known for their high diversity of the faunal assemblages onwhich the sector relies. Seventy-one species/groups of fishes (out of the 2,400 recordedspecies in Philippine waters) and 29 kinds of molluscs, crustaceans, reptiles and aquaticplants are listed in the BFAR catch statistics. Because of the multispecies nature of thefisheries, fishing gears and techniques used vary from 12 to 21 kinds of commercial andmunicipal fishing gear, respectively. To date, municipal fishing gear are classified as thoseusing boats up to 3 gross tons. Commercial fishing utilizes boats greater than 3 gross tons.

A review of the marine capture fisheries comprising production contribution from bothmunicipal and commercial fisheries by Silvestre (1989) showed trends of production from the1946 to 1984 level. In 1984, total landings by the marine sector totalled 1,303,000 mt. of fishand invertebrates valued at P16.8 billion. This represents a 15-fold increase from the 1946level of about 80,000 mt. The trend of landings showed three marked periods: (a) slowincrement from 1946-62; (b) a rapid phase of increase from 1962-75; and (c) a levelling ofcatches from 1975 to 1984 with some signs of increase in the early 1980s because ofincreased municipal catches. The municipal sector contributed the bulk of landings except inthe period 1962-65 when the commercial sector contributed the most (figure 2.3.2.1.2.1).

A current review of production level is incorporated in the 1996 Phase 1 Report of theFisheries Sector Development Project of the Government of the Philippines financed by theAsian Development Bank (ADB) and cited below:

In 1993, the total fisheries production of the country was estimated at 2.65 million tonsvalued at over P71 billion. In 1994, the total volume of production went up by only 1.5 per centbut its value increased by 14.3 per cent to over P81 billion. From 1985-1994, total productionincreased steadily from 2.0 million to 2.69 million tons, representing a 31 per cent increase forthe period. Although the output of municipal fisheries declined, commercial fisheries andaquaculture registered significant production gains. The growth rate of the value of the sectoroutput outpaced the growth rate of the volume of fisheries production, with municipal andcommercial capture fisheries showing an increase in nominal value of 103 per cent against acombined production volume increase of only 22 per cent for the period under review.Aquaculture production increased by 61 per cent during the same period, although its nominalvalue increased by 306 per cent.

The total production from commercial fisheries in 1993 accounted for 0.845 milliontons, representing an incremental growth of 0.332 million tons or 65 per cent since 1984. From 1984-1988, marine production was almost static, with only a 0.067 million ton changes.The increase in production occurred between 1988-1993, with production going up from 1.670million ton in 1988 to 1.875 million ton in 1993. While municipal production remained ataround one million tons, the commercial catch jumped by 347,000 tons during this period. The share of municipal fisheries had an imperceptible movement between 1984 - 1993, with production ending at a lower level in 1993 than 1984. The landings of fish from themunicipal subsector slowly increased from 1985 to 1990, but by 1993 decreased to the 1985level. In 1985, the catch was 1.045 million tons; this increased to 1.131 million tons in 1991and to 1.03 million tons in 1993. Although the tonnage remained fairly static, there was anincrease of about 75 per cent in the nominal value of the catches between 1985-1994.


Figure 2.6 Philippine fish production

Source: Bureau of Fisheries and Aquatic Resources Fisheries Statistics Profile, 1995.

FISHERIES PRODUCTION (1986-1995)

0

200000

400000

600000

800000

1000000

1200000

1400000

1986 1987 1988 1989 1990 1991 1992 1993 1994 1995

year

prod

uctio

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etric

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MUNICIPALCOMMERCIALAQUACULTURE


From the 1977-1993, commercial fisheries gradually absorbed the share of municipalfisheries which used to be twice that of the commercial subsector. The increase incommercial landings could be due to the increase in the number of fishing days available torelatively the same number of catcher vessels as a result of the introduction of fish carriersand other support vessels, the operation of a few fleets in the waters of neighbouringcountries, and the opening of relatively new fishing grounds such as Western Palawan, theSulu Sea, and the Moro Gulf in the mid-1980s.

Aquaculture resources in the Philippines consist of freshwater and brackishwaterearthen ponds, lakes, rivers and water impoundments. Of the total aquaculture area of487,831 hectares only about 53 per cent, or 260,000 hectares, were actually farmed in 1990.In terms of farmed area, the most extensive, as of 1990, were the brackishwater fishpondscovering an area of 223,000 hectares (ADB 1993). Some 14,531 hectares of freshwaterfarms were under cultivation that same year and only 21,040 hectares were effectively utilizedout of the extensive lake, river and coastal mariculture areas.

BAS statistics showed that overall production from aquaculture has consistentlyincreased over the past ten years, from 494,742 tons in 1985 to 791,444 tons in 1994. Itscontribution to the total national fish production rose from less than 10 per cent in 1975 toalmost 30 per cent in 1994, and although it represents only 29 per cent of the total fisheriesproduction, which makes it the smallest contributor to total fish production, it has the highestshare in terms of the total value of production, with 43 per cent in 1994.

In fact, the total value of aquaculture output increased by 305 per cent from P8.7 billionin 1985 to P35.3 billion in 1994. With the exception of seaweeds, the largest output camefrom brackishwater aquaculture, with milkfish accounting for 62.8 per cent of all foodfishproduction and prawns about 15.57 per cent. On the other hand, the value of aquacultureproducts rose by 157 per cent from 1985-1990; in particular, the output from brackishwatermilkfish farming was valued at P6.6 billion in 1990.

In 1993, the Philippine seaweed industry generated US$73 million in revenue. Rankingas the country's third fishery-based industry, its 18.8 per cent growth in the export industry isexpected to increase in the coming years (Trono 1995).

2.3.2.1.2 Fishing pressure

Marine capture fisheries consistently remained the most important sector of thecountry's fisheries. It is described as predominantly municipal (artisanal/small-scale) but witha considerable extent of commercial (large-scale) fishing activities. Based on availablestatistical data, the country's fisheries suffer from biological overfishing owing to excessivefishing effort, including the capture of young/juvenile fish.

Estimates of maximum sustainable yield (MSY) range from 1.2-2 mt.: 500,000 to1,000,000 mt. for coastal pelagics; 200,000-300,000 mt. for oceanic pelagics; and 500,000-700,000 mt. for demersal species. A conservative estimate of the 1996 Fisheries SectorDevelopment Project report indicates that the 1993 marine production of 1.7 million mt. nearlyreaches the higher estimates of the country's maximum sustainable yield (Christensen andPauly 1994). Based on various studies and observations, fisheries scientists obtain a generalperception that current harvests of small pelagics and demersal species, as well asinvertebrates in most nearshore areas, have already exceeded their sustainable levels. Thefollowing are examples to support this perception:


1. The Bolinao sea urchin industry collapsed in early 1990s because of over-exploitation.During the 1980s, sea urchin, Tripneustes gratilla, was commercially collected in Bolinao forits roe. The monthly harvest was registered at 1.7 tons in 1989 and declined to only 0/0003tons in 1992. Natural densities of the species declined from 0.11-2.14 individuals /m2 in 1987to 0.0-7 ind/m2 in 1992 in a major collection site. Before the collapse, the sea urchin industrycontributed a monthly income of P2, 700 (US $25.30) per fisher family (Juinio-Menez andothers 1995).

2. Preliminary analysis of the results of the tuna tagging experiment, a component of thePhilippine Tuna Research Project (PTRP) from 1992 to 1993, elicited concerns about thefishing pressure exerted on the tuna resource. Natural mortality rates estimated for thespecies of skipjack, yellowfin and bigeyes are very high compared with values estimated fortropical Pacific waters. Estimated fishing mortality rates are also high for the Celebes Sea,Sulu Sea and the Philippine Sea compared with estimates for adjacent areas in the westernPacific (Hampton 1993). In the Celebes Sea, fishing mortality rates are estimated at 0.40 forskipjack, 0.44 for yellowfin, and 0.53 for bigeye tuna, all of which indicate heavy exploitation.The Sulu Sea is less heavily exploited (0.30 for skipjack, 0.17 for yellowfin, and 0.17 for bigeyetuna) while the Philippine Sea values are 0.56 for skipjack, 0.44 for yellowfin and 0.14 forbigeye tuna. From these estimates, it can be gleaned that the exploitation rates for theCelebes Sea and the Philippine Sea (with the exception of the bigeye in the latter area)represent a considerable risk of recruitment overfishing. An exploitation rate of 0.4 should beconsidered a long-term maximum, while an exploitation rate of 0.5 poses a substantial risk ofrecruitment overfishing. The analyses of tagging data indicate that these exploitation rates areamong the highest in the world for tropical tunas.

Although the exploited nearshore areas and traditional fishing grounds are overfished,considerable potential for expansion still exists. Offshore hard/coral grounds west of Palawanin the Spratly Islands and the Pacific coast have the potential for demersal fisheries. Offshoreareas in the Pacific Ocean and the South China Sea are potential expansion areas for theoceanic pelagic fisheries (Ali and others 1997). Although these are potential expansionsites for capture fisheries, prerequisites for expansion activities are availability of reliableresource assessment data and development of appropriate capture technology for thesustainable development of these areas.

2.3.2.2 Endangered species/transboundary/migratory species

2.3.2.2.1 Endangered species

Giant clams

Giant clams, which are valued for their meat and adductor muscles, are heavily fishedin the Philippines and the entire South-East Asian region. Three species, Tridacna gigas, T.derasa and Hippopus porcellanus, occurring in Philippine waters are all endangered.


Marine turtles

Marine turtles are exposed to high predation during their life cycle. Man and otheranimals take their eggs from nesting grounds. The young are subjected to predation and toharsh natural conditions. In the sea, marine turtles are hunted and are caught by commercialfishing gear such as entangling nets, drift-nets, harpoons, big longlines for tuna fishing,grapnels and hooks. Some are taken as by-catch in shrimp trawls, set nets, gill nets andbeach seines.

In the Philippines, the Ministry of Natural Resources (MNR) Administrative Order 12,1979 provided for the conservation of marine turtles. Collection, gathering, utilization,possession, transport and disposal of marine turtles and turtle eggs have been banned. Aninter-agency task force on Pawikan was then formed. Currently, the conservation of marineturtles is the function of the DENR-PAWB. A major breakthrough was the establishment of aTurtle Island Heritage Protected Area in Region 9 through a Memorandum of Agreement inkedbetween Malaysia and the Philippines on 31 May 1996. The five species of marine turtles recorded in the Philippines are:

1. Caretta caretta (loggerhead). Usually confused with the olive ridley turtle in South-EastAsia but its occurrence in the Philippines is confirmed by Japan-tagged individuals retrievedfrom the waters of Basilan and Albay.

2. Chelonia mydas (green sea turtle). Recorded in the islands of Mindoro, Antique, Samar,Romblon and Palawan. Nesting sites are in the Sulu Sea, primarily on San Miguel Islandsand the Turtle Islands with some nesting reported at Tubbataha. Nesting occurs from July toAugust. Seagrass beds are utilized as feeding areas. Man and other animals take their eggseither from nesting grounds or from butchered turtles. They are caught by commercial fishinggear such as entangling nets. The species is widely distributed in neighbouring countriessuch as Indonesia, Malaysia and Thailand. A number of recovered individuals from the TurtleIslands bear Malaysian tags and some of those recovered from the Sabah Turtle Islands havePhilippine tags. Although not recently observed, green sea turtles were also noted inCambodia way back in 1941. Green sea turtles are favoured for their meat and oil. Althoughcommercial trading is banned, capture for food and local consumption is allowed in someparts of South-East Asia.

3. Eretmochelys imbricata (hawksbill sea turtle). The species has been observed in MindoroOccidental, Sorsogon, Negros and Antique; in certain parts of Davao, Basilan, Cotabato,Lanao del Norte, Zamboanga der Sur and Surigao, and in Cuyo Islands, Turtle Islands and theSulu Archipelago. They are widespread in South-East Asia, in Indonesia, Malaysia andThailand, with early (1941) records in Viet Nam and Cambodia. It is believed that migrationalong the islands of the Philippines, Indonesia, Java, peninsular Malaysia and Sarawak isperformed by solitary or small groups of turtles. Low level nesting is recorded in thePhilippines, in southern Negros and Sumilon Island, Cuyo Islands, Turtle Islands and possiblyin some parts of Palawan and the Sulu Archipelago during the period May-August. Theseturtles are captured for their eggs, meat and shell which is used for jewellery. Juveniles arecaught for stuffing and are sold as souvenir items. Large exporters of these materials inSouth-East Asia, such as the Philippines, Indonesia and Singapore, were already parties ofthe Converntion on International Trade in Endangered Species of Wild Founa and Flora(CITES) even before 1990. Thus the trade has been significantly lowered in the region.


4. Lepidochelys olivacea (olive ridley turtle). This is generally rare in South-East Asia but hasbeen sighted in the Philippines. It is known to migrate along continental shelves to feed inshallow waters.

5. Dermochelys coriacea (leatherback turtles). Recorded in the Cuyo Group of Islands, Diitand Maniguin Islands. A leatherback retrieved from Cebu bore an Irian Jaya tag. Other thannatural predation and capture, leatherback mortality is also caused by swallowed plasticwastes which they mistake for jellyfish, a main part of their diet.

Marine mammals

Marine mammals are protected in the Philippines by Fisheries Administrative Order(FAO) 185, 1992 which prohibits the taking, catching, sale, purchase, possession, transportand export of whales and porpoises. An amendment, FAO 185-1, 1997 was issued to coverdolphins as well. Jurisdiction of these types of marine mammals falls under the DA-BFAR.Early on, DENR Administrative Order 55, 1991 was issued to protect and conserve the seacow, dugong, under the jurisdiction of the DENR-PAWB. Twenty-two species of marinemammals have been confirmed in Philippine waters.

2.3.2.2.2 Transboundary straddling stocks/species

These are marine life distributed in areas crossed by a common boundary betweenthe exclusive fishing zones of two adjacent countries (Naamin 1992). A good example in theregion is the Spratlys where the living resources are shared by coastal states because ofoverlapping boundaries. The Spratlys is an ideal "resource savings bank" as it is not over-exploited and it replenishes heavily exploited areas around it by supplying these areas withlarvae of commercially important fish and invertebrates (McManus and others 1992).

2.3.2.2.3 Migratory straddling stocks/species

This includes species that migrate beyond the border of one economic exclusion zone(EEZ) and are grouped into two: (a) stocks that are restricted to sea areas which are closelywithin the limit of two or more adjacent EEZs; and (b) stocks which occur in one or moreEEZs and also extend to the open sea/high seas beyond (i.e., large tunas, skipjacks, billfishesand seerfishes).

The country's migratory species of fish are mostly determined from catches of fishinggear for tuna. These are: (a) tunas and tuna-like - Thunnus albacares, T. obesus, T. tonggol,T. alalunga and Katsuwonus pelamis; (b) seerfishes - Scomberomorus commerson,Gymnosarda unicolor and Grammatorcynus bicarinatus; (c) billfishes - Makaira mazara andM. indica; and (d) dolphinfish - Coryphaena hippurus.

The Philippine Tuna Research Project (1991-1993) conducted by PRIMEX and theSouth Pacific Commission established the movement of tuna within Philippine waters andbetween the Philippines and adjacent areas. Local movement is significant from the CelebesSea to the Sulu Sea. Movement to adjacent areas suggests the mixing of stocks between thePhilippines and eastern Indonesia and the large purse seine fishing grounds to the east. ThePTRP Phase I Final Report, December 1993 includes illustrations of movement of tuna withinthe Philippine waters and movement to and from adjacent areas.


2.3.2.3 Major problems/issues

Major problem: OVER-EXPLOITATION OF MARINE LIVING RESOURCES

Issues:

(a) Reduced fishing stock/low biomass(b) Reduced coastal productivity(c) Reduced biodiversity(d) Loss of protection of the terrestrial zone(e) Loss of commercial value(f) Low catch rates and income levels(g) Increased poverty(h) Increased conflict among resource users(i) Increased competition between municipal and commercial fishermen(j) Degradation of habitat

Transboundary consequences:

(a) Lower productivity and carrying capacity affects shared and straddling stocks;(b) Excessive by-catch (i.e., marine mammals such as the dugong and other endangered

species such as marine turtles);(c) Recruitment;(d) Spawn-stocking biomass collapse.

2.3.2.4 Economic losses because of over-exploitation

The Philippines is an important fish producer in the world, ranking twelfth among thetop 80 fish-producing countries in 1993. It is the second biggest tuna and tuna-like producerin the Indian Ocean and in the Association of Southeast Asian Nations(ASEAN) region. Itstotal fish production in 1993 reached about 2.65 million mt. valued at approximately P71 billionor US$2.73 billion (BFAR 1995). Fishery is an important sector, its contribution to the grossnational product (GNP) in 1994 was 3.9 and 4.3 per cent respectively in current and constantprices. Its net foreign exchange earnings amounted to P12.52 billion, with the value of export(P15.65 billion) exceeding the value of imports (P2.92billion) by almost five times. However,during the first quarter of 1996, an apparent increase was observed in the importation offrozen fish for domestic consumption, being retailed in the wet markets at prices significantlylower than domestically caught fresh fish.

The fisheries sector also provides direct and indirect employment to over one millionpeople representing about 5 per cent of the natural labour force. This can be broken down to65 per cent in municipal fishing, 25 per cent in aquaculture, 5 per cent in commercialfisheries, and 5 per cent in ancillary activities (i.e., post-harvest handling, processing,transport, marketing, boat-building and repair, and manufacturing or distribution of fish-relatedactivities.

If we are to seriously consider the above attributes of the fisheries sector, atremendous debacle on the country's economy will ensue if the major problem of over-exploitation is not dealt with.


Preliminary estimates of consequent rent dissipation because of over-exploitationamount to as high as US$400 million annually for the demersal and pelagic fisheries alone(Silvestre 1989).

Another factor that contributes to economic losses in the fisheries sector is illegalfishing (for example, poaching in offshore areas, smuggling, use of prohibited gear). Incomparison to the landed value of Philippine fisheries of about US$2 billion a year, harvestsby illegal fishing activities have been valued at more than US$1.5 billion or P40 billion a year.

2.3.2.5 Causes including sectoral demands and failures and internal and external marketdemands

Population growth

Population growth causes an increased demand for fish for domestic humanconsumption, Filipinos being among the highest fish consumers in the world. Of the totalfishery production of 2.93 million tons in 1994, 1.95 million tons (67 per cent) are allocated fordomestic consumption. Between 1994 and 2010, the population is expected to increase byabout 23.5 million people. This will require an additional fishery production of 719,000 tons inorder to maintain the present level of per capita fish supply of 28.5 kg/yr. Based on trends insupply and demand parameters, two scenarios are possible by the year 2010 (Bernacsek1996):

1. A sustainable scenario would be a rise in domestic food fish production to 3.2 million tonsby 2010 and an import quantity of 97,000 million tons to maintain the per capita food fishsupply of 24.7 kg/yr. This is assuming that all positive interventions in the fisheries sector aresuccessful;

2. A pessimistic or unsustainable scenario assumes that no positive interventions areinstituted in the fisheries sector. This will mean a food fish production of as low as 940,000million tons by 2010 and a per capita foodfish supply of 10.5 kg/yr. In order to meet the deficitof 18.7 kg/person/yr import quantity should be 1.8 million tons of foodfish.

Alarmingly, the country's maximum sustainable yield of 1.2-2 million tons for capturefisheries has been nearly reached based on the 1993 marine production of 1.7 million tons. Moreover, nearshore catches have already exceeded sustainable levels.

Employment needs

In view of the free and open access to fisheries, marginalized labourers and migrantsthat have no access to land-based resources turn to the sea for a livelihood. This uncontrolledincrease in the number of fishers results in the over-utilization of marine resources. Despitedeclining yields, the number of fishermen continues to increase as the sea is regarded as the"employer of last resort" in many coastal areas.


Growth and recruitment overfishing in municipal waters

This is due to the increase in the number of fishers, the use of efficient gear and thelack of and non-implementation of control measures.

Overcapitalization of the fishing industry

There is an increased world demand for seafood products, either for direct humanconsumption or indirectly for feeds for livestock and poultry.

International demand

There is an increased world demand for seafood products, either for direct humanconsumption or for feeds for livestock and poultry. The principal species exported by thePhilippines are shrimps and prawns, tuna and seaweeds. The Fisheries Sector DevelopmentProject 1996 report reveals that the unit terms of international trade of the Philippine fisheriessector are very favourable as foodfish exports have exceeded imports by a factor of 1.75 involume and 23 in value. This is because the Philippine exports high-value products (prawnsand fresh-chilled tuna) while it imports lower-value frozen fish (canning-grade sardines andmackerel). It should be noted, though, that the country is still highly depended on theJapanese market for prawn exports. While the country imports significant quantities offishmeal, which are the principal ingredients in livestock feed production, it remains theworld's largest producer and exporter of dried seaweed used as raw material for themanufacture of carageenan.

In general, it is considered that fisheries resources around the world are beingexploited at, or very close to, the maximum sustainable yield levels of production. Commercialcatches in the world have remained almost stagnant since 1989 at a level of 100.1 milliontons as against the steady increase from 3.3 million tons in 1958 to the 1989 level. For theperiod 1989 to 1993, Japan, the United States of America and the European Union (EU) allreported increases in their imports, which account for over 75 per cent of the value of fishimports. The value of world imports increased by 24 per cent in this period. It is expected thatper capita fish consumption will further increase in developed countries as rising healthconsciousness appears to be causing a shift in food preference from red meat to fish andother marine products. The increase in world demand for seafood will require an increase infish production in the face of resource depletion in major fishing grounds.


(See the previous discussion on El Ni and reduced fisheries production, section 2.3.1.6).

2.3.2.7 Proposed interventions

(a) Evaluation of current resource uses (rates of exploitation, carrying capacity ofresources, users' conflicts, socio-economic aspects, political environment, existinglegal and institutional framework);

(b) Alleviation of pressure on heavily exploited resources through the introduction ofalternative environment-friendly livelihoods that are socially acceptable and feasible;

(c) Encouragement of lightly-exploited areas including the EEZ (this calls for resourceassessment, development of capability to explore offshore waters, formulation of


appropriate fishery and related policies, establishment of means of policing offshorewaters);

(d) Development of capability for resource management at the community, municipal andregional levels through training and public education programmes;

(e) Establishment of marine reserves and provision of means for management by localcommunities;

(f) Policy revision and formulation to suit present resource conditions and uses;

(g) Improved enforcement of fishery laws and regulations.

2.4 MODIFICATIONS OF AQUATIC HABITATS

2.4.1 Freshwater

2.4.1.1 Freshwater and coastal wetlands

At present there has been no sufficient appreciation of the effects of changes infreshwater and coastal wetlands. In the water resources master plan some suggested criteriafor evaluating the effects have been proposed (JICA 1997) but no documentation has beenmade on a comparative evaluation of overall effects on these habitats. Anecdotal accountshave shown that the reduction of water and impoundments of water bodies have affected theflora and fauna of areas such as the Candaba swamp and those in the Angat Dam. Inaddition, the location of industries around Laguna Lake and the establishment of fishpenshave lowered the water quality and have modified the integrity of the lake habitat.

2.4.2 Marine habitats and resources

The major marine habitats are functionally linked and interconnected from thebreeding and nursery grounds of the mangroves and seagrasses to the diverse coral reefssurrounded with soft bottom areas distributed onwards to the oceanic region. Based on thepresent review, the marine resources and habitats in the country have generally been over-exploited and drastically degraded. There are many factors that interplay and impact on themarine environment. Pauly and Lightfoot (1992) described a hypothetical coastal cross-section illustrating biomass and cash flows between a community of small-scale fishers,processors/intermediaries and the nearby city. Coastal conversion is one of the mainconcerns affecting the marine environment especially in the context of renewability andrehabilitation. The ecological importance of these coastal ecosystems as buffers whichprotect the land from the erosional effects of waves and the sea from the destructive activitiesfrom the land is well known. The destructive effects of upland activities, such as deforestationand dredging, result in the degradation of the marine habitats through increasedsedimentation run-off. The loss of the natural protective buffers will exacerbate man-induceddestructive practices especially in combination with natural stresses such as storms andfloods. The destruction of the habitats will likewise effect a decline of the marine resourcesdependent on these habitats. Further, the high poverty rate in coastal communities forcesmarginalized fishermen into fishery putting additional heavy pressure and burden on theresources (Malthusian overfishing from Pauly and others 1989). The open-access nature ofthe marine environment has led to heavy exploitation and abuse of the resources.

Another important factor that undoubtedly influenced the rate of utilization of theseresources is the Government's economic policies that have inadvertently increased the


pressure and burdens on the marine environment. De los Angeles and Padilla (1992)attributed the accelerated rate of degradation of coastal resources to economic policies suchas subsidies, incentives, tax exemptions and lower tariff rates that resulted in increasedfishing intensity, encouraged coastal conversion and decreased wild stock resources. Thisredounds on the economic viability of coastal industries (mariculture, tourism, fishing, and fishprocessing and other related industrial/agricultural ventures) and the importance of the marineenvironment. The case study in Bacuit Bay, Palawan by Hodgson and Dixon (1988) is theonly example in the country that examined the economic benefits of logging versus tourismand marine fisheries. The study showed a reduction in gross revenue of $40 million over a10-year period with continued logging compared with the revenue generated if a logging banhad been implemented.

2.4.2.1 Estuaries and embayments

(See Mangrove habitats and FSP bays)

2.4.2.2 Coral reefs

The Philippines holds the distinction of being the first country in the world to conduct anationwide assessment of coral reefs (Gomez and others 1994). Coral reefs in thePhilippines are the most extensively surveyed in the South-East Asian region (Ali andothers 1995). Estimates on the areal extent of these coral reefs range from 25,000 squarekilometres (Gomez and others 1994) to 33,500 square kilometres (Carpenter 1977)depending on the varying assumptions of the maximum depth limits of where corals can befound.

The most recent countrywide status reviews for coral reefs in the Philippines havebeen undertaken by Gomez and co-workers in collaboration with the group of Alcala (Alcalaand others 1987; Gomez and Alcala 1979; Gomez and Yap 1985a; Gomez and others 1981,1994a-b; UPMSI 1979, 1980, 1982). The health of the reefs was calculated on the arbitrary percentage quartile classification of live coral cover (i.e., 0.1-24.9 per cent = poor; 25-49.9 percent = fair; 50-74.9 per cent = good; and 75-100 per cent = excellent. The overall condition ofthe reefs in the country has been evaluated based on samplings gleaned from over 700transects sampled in over 14 provinces.

These nationwide surveys made in the 1970s showed 5 per cent of the reefs to be inexcellent condition, 25 per cent good, 39 per cent fair and 30 per cent poor (Gomez andAlcala1979). Further studies in the 1980s (see table 2.7) showed 70 per cent of our reefs in poor tofair condition, with less than 50 per cent living coral. Despite the ongoing debate on how tocome up with a better indicator of the condition of reefs (for example, the quadrat method and percentage live cover; belt transect and coral mortality index) it is generally accepted thatthere is an urgent need to turn the tide against the unabated destruction of coral reefs in thecountry (Gomez and others 1994a; Alino and others in press).


Table 2.7 Status of Philippine coral reefs based on surveys by three projects

Excellent(75-100%)

Good(50-74%)

Fair(25-49%)

Poor(0-2.4.9%)

Source No. oftransect

s(stations

)

No. % No. % No. % No. %

Yap and Gomez(1985)

632 35 5.5 153 24.2 242 38.3 202 32.0

ASEAN-AustraliaMSP LCR

103 4 3.9 32 31.1 46 44.7 21 20.4

ASEAN-US CRMP 40 0 0.0 18 45.0 17 42.5 5 12.5

There are various natural and man-induced impacts, degradations and problems thathave resulted in the decline of live coral reefs in the country. Coral reefs are natural buffersagainst the erosive action of waves and typhoons, yet in some areas these reefs weredestroyed by strong typhoons, for example, Mactan, Cebu (Gomez 1988). In some localizedareas, natural events, such as the infestations of Acanthaster planci in the Visayas and thegastropod Drupella rugosa in Mactan, destroyed the reefs (Alcala 1976; Ali and others1981; Gomez 1988).

The most common problems are sewage and fertilizer pollution. Impacts fromnearshore development, dredging, mining and industrial pollution follow. Many other factorscontributing to the loss of this natural buffer are the collection of corals (for building material),pollution and mine tailings. Tourism-derived impacts compete between recreational benefitsversus unregulated shore development, such as dredging and sewage pollution resulting incoastal degradation.

There are three factors that are most common and influential in affecting coral reefs inthe country, namely, sedimentation, overfishing and destructive fishing (Ali and Campos1995).

Siltation is the most important factor influencing conditions in coral reefs, either bynatural processes or anthropogenic events. The eruption of Mt. Pinatubo in June 1990dramatically changed coral cover to 10-20 per cent a week after the eruption from 60-70 percent cover before the eruption (Atrigenio and others 1992). Anthropogenic effects of siltationare mostly in reefal areas near rivers because of upland deforestations, for example, BacuitBay, Palawan (Ali and Campos in press) and industrial sites, for example, Toledo City,Cebu (Ali 1984). The sediments physically smother the corals, further reduce recruitmentsuccess owing to poor larval settlement and increase post-larval mortality (Gomez and others1994a).

Fisheries-related destruction, such as dynamite fishing and cyanide, affects coralreefs. It takes up to five years for only half of the original cover to return. Other factorscausing negative impacts may prolong the recovery period (Yap and Gomez 1985).

The prevalence of the impacts of the three most common factors affecting coral reefswas determined by Ali and others (1995) based on the frequency distribution of reefsexperiencing each intensity level for each type of impact per location, expressed as apercentage. To get a better picture of the impacts of these factors, the studied sites weregrouped and zoned geographically and the percentages averaged. An estimate on the impact


of each factor in a particular geographical zone was determined. From these frequencies, thethree topmost sites considered as critical areas for that particular impact were determined(table 2.8).

Table 2.8 Critical coral reef areas in terms of siltation, pollution, fishing and storm impacts

IMPACT TYPE AREAS

Siltation Agricultural Palawan (PAL)Southern Mindanao (MDS)Southeast Luzon (LSE)

Industrial Southwest Luzon (LSW)Northern Mindanao (MDN)Visayas (VIS)

Pollution Agricultural Northwest Luzon (LNW)Southeast Luzon (LSE)Southwest Luzon (LSW)

Industrial Southern Mindanao (MDS)

Northern Mindanao (MDN)Central Visayas (VSC)

Fishing Overfishing Palawan = Northern MindanaoCentral Visayas = NE & SE Luzon

Destructive Southern MindanaoSouthwest and Northeast Luzon

Palawan is the critical area for siltation damage brought about by high and mediumintensity agricultural activities, followed by southern Mindanao, and south-east Luzon. Thepriority areas for demonstrating the effects of siltation from industrial activities are in northernMindanao, followed by central Visayas and lastly in south-west Luzon especially in Zambalesprovince. These areas are where most of the industrial plants in the country are located.

Interestingly, the effect of pollution from agriculture was concentrated in Luzon whereagricultural activities dominate. The frequency is high in the north-west, followed by the south-east and lastly, the south-west.

Pollution from industries was found to have had a considerable effect in Mindanao andVisayas where most of the industrial zones are located. The impact is highest in Mindanao,particularly in the south and then in the north, and lastly, in the Visayas.

The effect of overfishing has been observed to be high in Luzon, both south-east andnorth-east, followed by northern Mindanao, and lastly, by south-west Luzon. Palawan, north-west Luzon and southern Mindanao are overfished areas, albeit of medium intensity only.Destructive fishing is very rampant in south-east Luzon, followed by central Visayas, andlastly, north-east Luzon.


Tropical storms that frequent the country were felt at high intensities in northernMindanao specifically in the Siargao group of islands. Unlike in Mindanao, most of the reefalareas in north-west Luzon are strongly influenced by medium and high storm intensities. Theeastern portion of Luzon followed by the north and the south showed impacts of bothintensities.

The importance of coral reefs to the fisheries, the ecological well-being of the coastalhabitats, recreation and tourism has been well documented in the country. Coral reefs arenatural buffers against the erosive action of the waves and typhoons (Gomez 1988) and thisis especially significant in the Philippines where there are on the average 20 typhoons a year(Gomez and others 1994b).

About 4,000 species of fish are associated with coral reefs in the Indo-Pacific, morethan a thousand species are found in the Philippines (Na la and others in press). Coral reefscontribute significantly to the country's fisheries, 8-15 per cent of the finfish catches asidefrom other seaweeds and invertebrates collected in the reefs (Gomez 1988) providesubsistence livelihood to coastal dwellers.

The cottage industry heavily relies on shells and other invertebrates collected from thereefs for the curio trade (Gomez 1988). A significant part in the tourism industry benefits fromthe numerous diving spots that attract both local and foreign tourists which support numerousresorts and other related establishments (Gomez 1988).

In the Philippines, biogeographic zones have been proposed by the University of thePhilippines Marine Science Institute to help the Government with the management of the coralreef resources, for example, representative sites for the National Integrated Protected AreasSystem (NIPAS) (Ali and Gomez 1990) (Figure 2.4.2.2.1).


Figure 2.4.2.2.1 Philippine biogeographic subdivisions based on coral reef affinities


Recommendations for priority national programmes on coral reef conservation andmanagement have been proposed (Gomez 1988, Gomez and others 1994a and b). Thepriority government concerns in coral reef management in the Philippines were highlighted inthe Subic workshop (see Ali and others in press). Intergovernmental commitments for reefmanagement have been proposed in the International Coral Reef Initiative Workshop held inDumaguete City (1997). Various regional workshops have also been organized to come upwith an action plan for the East Asian Seas region (UNEP/COBSEA (1996) in Bali, Indonesia;UNEP COBSEA in Okinawa Japan). PhilReefs, a network of coral reef practitioners organizedto follow up on the information exchange needs pointed out in the Subic Workshop (1995),have also proposed over 30 recommendations that need to be addressed.

2.4.2.3 Mangroves

Among the different habitats in the marine environment, the mangroves are the mosteasily perceived coastal habitat perhaps because of its more conspicuous nature in beingabove the water. Estimates of its coverage by different studies started in the early part of thecentury and continue up to the present (table 2.9).

Table 2.9 Mangrove forests in the Philippines from 1920 to 1994 (x 1000 hectares)including the geographical distribution in Luzon, Visayas, Mindanao andPalawan

YEAR TOTAL LUZON VISAYAS MINDANAO PALAWAN1920 4501968 448 47 228 125 471969 295 43 77 128 481970 288 42 78 124 441971 287 42 77 123 441972 284 41 77 122 441973 270 36 72 119 431974 256 30 67 117 421975 254 28 67 117 421976 252 27 67 116 411977 249 26 67 116 411978 247 25 66 116 401979 245 24 66 115 401980 242 23 66 115 391981 240 21 66 114 391982 211 17 55 107 321983 211 17 55 107 321984 236 17 65 112 371988 2281994 200

Source: 1920-1984 (BFD Statistics); 1988 (Ronquillo 1988); 1994 (Calumpong 1994)


In the early part of the century, mangrove coverage in the country was estimatedaround 400,000-500,000 hectares (Brown and Fischer 1918). In 1984, only 230.000 hectares(51 per cent) of the mangrove forest remained (BFD 1984). Table 2.4.2.3.1 shows the rateof exploitation in the mid-1980s in the different regions in the country. The highest was in theVisayas at 72 per cent and Luzon at 64 per cent. Mangroves were intensively utilized in theseregions compared with Mindanao (10 per cent) and Palawan (21 per cent) where the oldgrowth stands in the country are still found (PNMC 1986). In the mid-1990s, mangrove forestswere estimated to be only 200,000 hectares which indicates a loss of 60 per cent from the1920 estimate. Although these estimates should be treated with caution since there is a highvariability in the various sources of data, the data still indicate a rapid decline of the mangroveforests.

Based on the time estimates (1920-1994), it can be surmised that around 60 per centof the mangrove habitat has been lost. The exploitation of mangroves for their forest productsby the local populace is one of the significant causes for the decline in the area and volume ofmangrove forests in the country (PNMC 1986; Evangelista 1992). The mangroves areeconomically important as sources of timber, firewood, charcoal, tannin, tanbark, nipa sapand shingles. The economic importance of mangroves has been well recognized in thePhilippines and well documented, but there is as yet no quantitative estimate from theselosses. Perhaps, the major cause of the reduction of mangrove forest in the country is itsconversion into fishponds. As seen in figure 2.8, the increase in fishpond development overtime corresponds to the decline in the coverage of the mangrove forest.

Mangrove fishpond conversion increased more than 100 per cent from 1952-1975from 88,000 hectares to176,000 hectares. The conversion was mainly for the cultures ofbangus (Chanos chanos) and sugpo (Penaeus monodon) (Datingaling 1977; NMC 1986). In1982, brackishwater fishponds increased further to more than195,000 hectares (Gomez andothers 1990). In 1988, mangrove areas converted to fishponds totalled 224,000 almost equalto the remaining mangrove swamplands of 228,000 hectares (Ronquillo 1988; Primavera1993) (see figure 2.8).

Based on the 1920 estimate of 500,000 hectares, around 45 per cent (224,000hectares) of these have been converted to fishponds and the rest for other purposes. Most ofthe fishponds in the country are located in sites where mangroves abound. Conversion toindustrial and human settlements, at present, is mostly localized and minor compared withthe extent of fishpond areas in the country (PNMC 1986).

The loss of mangrove swamps into fishponds corresponds to a loss of coastalproductivity affecting coastal fisheries (Primavera 1993; Camacho and Bagarinao 1986;Silvestre 1989). Fishponds bring about pollution through the use of organic/inorganicfertilizers, chemical toxins, antibiotics etc. that reduce the quality of the mangrove swamps(NMC 1986; Primavera 1991). This correspondingly affects the coastal dwellers dependent onthe mangrove swamps compared with the minority working in the aquaculture farms(Primavera 1991). The loss of mangrove habitats is the loss of its commercial value as animportant fertile breeding, nursery and feeding grounds of economically important fish (mullet,milkfish, tilapia, eel, kitang) and invertebrates (shrimp, prawns, molluscs and sea cucumber)(see Zamora 1981; de la Paz and Aragones 1985; Alcala 1982; Calumpong 1994 and NMCCountry Report 1986 for detailed listings). The fry gathered in the mangrove areas, especiallyof milkfish (Chanos chanos), shrimps (Penaeus monodon), and prawn (Penaeusmerguiensis), contributed greatly to the country's fry gathering industry and have becomeimportant species in aquaculture (Gonzales 1977).


Figure 2.8 Mangrove cover and fishpond construction from 1920 to 1994

The salinization of the water aquifer of the adjacent lands from the drawing of seawater for fishponds is creating stress in some areas of the country, for example in centralVisayas (Borjal 1989). Heavy extraction of water lowers the water table resulting in thecontamination of the water aquifer with sea water (Singh 1987). The impact of salinizationfrom shrimp ponds is still localized in the Philippines, compared with other countries whererice production has decreased owing to the loss of soil fertility (Primavera 1993).

The mangrove resources in the country are threatened by the loss of the renewabilityof the resource brought about by coastal conversions especially fishponds (Hamilton andSnedaker 1981). This creates social inequity between the marginalized fishermen and thefew fishpond entrepreneurs (Primavera 1993). A large percentage of the coastal populacedepend on coastal fisheries for subsistence and income compared with the seasonal andundependable employment in aquaculture farms (Primavera 1991). However, the increasingcontribution of aquaculture to the total fishery income in the country indicates the economicviability of this venture (BFAR Statistics; Camacho and Bagariano 1986). Hence, fishponddevelopment has been the recipient of government support, such as loans, incentives, taxprivileges, since its inception (Primavera 1993).

Yet, the most important but least appreciated value of mangroves is its role as acoastal buffer. Mangrove forests serve as a buffer to coastal erosion, protecting the terrestrialzone from the erosion effects of waves and preventing accelerated sedimentation andsiltation of offshore and nearby ecosystems (Zamora 1981; Hamilton and others 1989; Singh1987). Perhaps its importance has now been recognized and felt in the loss of property andlives in some coastal areas significantly influenced by the loss of mangrove strips as stormbuffers along the coastline: in 1976, approximately 3,000 deaths in Zamboanga; 1,000 innorthern Panay in 1984; and 7,000 in Ormoc and Leyte in 1991 (Primavera 1993).

The valuation of mangroves, especially the true costs of mangrove loss, is veryimportant especially in cases where mangroves are converted for national and industrialdevelopment. Before the Government used the Fishpond Lease Agreement (FLA) set to aslow as PhP 50/ha/yr which encouraged conversion. Recent studies by Evangelista (1992) putthe pricing as high as PhP 3,296/ha/yr. This was based on the economic or resource rent that

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puts value on access to a valuable resource in limited supply. Nevertheless, the true value ofthe mangrove ecosystem requires comprehensive economic studies since it involves anaccounting of the marketable (for example, forest products) and non-marketed value (forexample, storm buffer), and on-site (for example, poles) and off-site (for example, nearshorefisheries) values (Dixon 1989; Hamilton and others 1989; ENRAP 1994).

Mangrove scientists, resource conservationists and aquaculturists agree thatimmediate measures are needed to offset the almost irreversible trend of destruction. Previous policy recommendations for the management of mangroves have been outlined byZamora (1981) but as yet no comprehensive nationwide monitoring and evaluation has beenmade on these proposals. Presented below are the summary guidelines for policyconsiderations (see figures 2.4.2.3.2 and 2.4.2.3.3). Strategic and tactical action programmesneed to be formulated and undertaken for each of these priority management options. Aschedule for realistic targets to be achieved needs to be pursued consistently. Primavera(1995) has also updated the management issues to be considered in relation to theinteraction of mangroves and mariculture activities. Camacho and Bagarinao(1986)presented strategies, which in brief indicates that the government should implementrules to rehabilitate and conserve the existing mangrove areas and prevent further expansionsand conversion into other uses.

Figure 2.9 Alternative strategies for existing Philippine mangrove resources

Source: Zamora 1981.


Figure 2.10 Guidelines for the selection of mangrove areas for preservation, conservationand fishpond development

Source: Zamora 1981.

2.4.2.4 Seagrass beds

No comprehensive evaluation on the extent of seagrass habitats in the country hasbeen undertaken. Probably this is due to the extensive depth range of seagrass communitiesin the intertidal and subtidal (at around 1-30 m) region. Studies conducted in the country,although more extensive compared with other Association of Southeast Asian Nations(ASEAN) members, were mainly in conjunction with environmental impact assessments(EIAs) of industries along the coast, for example, for a power plant, in ecologicalassessments in degraded fishing grounds and in coastal management issues. The integrityof seagrasses communities as significant ecosystems on their own has only been recentlyappreciated (Fortes 1994 and 1995).

The only estimate of seagrass coverage in the country was done in connection withthe ASEAN-Living Coastal Resources Project on seven sites in the country using remotesensing techniques (see table 2.10) (Fortes 1995). Most of the sites have fair to goodseagrass beds except in south-east Luzon where 60-100 per cent of the seagrass beds inPagbilao, Calauag and Calancan Bays are in poor condition.


Table 2.10 Seagrass assessment in seven sites in the Philippines

STATUSSITE AREA(sq km) GOOD FAIR POOR

Cape Bolinao 25 38% 49% 13%Calauag Bay 7.7 33% --- 67%Pagbilao Bay 1.89 --- --- 100%Puerto 1.14 70% --- 30%Ulugan Bay 2.97 17% 51% 32%Banacon 7.81 73% 27% ---Calancan 0.07 29% --- 71%

Source: Fortes 1995.

As with the other coastal resources and ecosystems, seagrass beds are also subjectto over-exploitation and conversion to other land uses. In the Philippines, seaweed farms, likeEucheuma, are mostly associated with seagrass beds (Trono 1986).

Fortes (1995) made an inventory on the conversion and uses of seagrass areas in thePhilippines (table 2.11). Industrial development, ports and recreation are the major use ofseagrass beds. The impacts of waste disposal and boat traffic are widespread but moderate.Aquaculture farms of fish, prawns and crabs from seagrass areas are still localized, rangingfrom minor to major usage. Localized but major habitat modification effects on seagrass bedsare in urban development and mining, followed by conversion to solar salt, and lastly, minoruse for sugar cane and airports.

Seagrass beds are also subject to unsustainable practices of collection of the othereconomically important invertebrates that abound in this habitat. The bed is commonly rakedto collect shells for the ornamental trade, trawled to harvest shrimps and prawn, andconstructed with fish corrals for the collection of rabbitfishes. Sea cucumbers are easilyharvested for food, sea urchins for the gonads, and sea hares for their eggs.

The effect of land clearing and deforestation in the watershed areas and from swiddenagriculture or kaingin result in the sedimentation of seagrass beds. In addition coastaleutrophication from industrial, residential and commercial facilities are additional stresses onthe seagrass community.

The loss and degradation of the seagrass beds will also affect the adjacent coral reefarea and mangroves. Seagrasses are functionally linked to coral reefs and mangroves(Fortes 1988, 1991, 1995). The interconnectivity of coral reefs to mangroves throughseagrass beds makes the latter more sensitive to changes in the environment. This makesseagrasses a good indicator of the health of the coastal ecosystem (Fortes 1995).Seagrasses are protective buffers against sedimentation, preventing the further transfer ofsediments to nearby coral reef areas. Seagrasses are effective retainers of sedimentsbecause of the thick mass of their underground systems (Fortes 1995). The root systems areanchors that bind the sediments, and without these anchors sediments become loosecausing erosion and sedimentation of the habitats. They also act as a buffer to the coastalzone from strong waves and surges, especially during tropical cyclones (Fortes 1988).


Table 2.11 Conversion/utilization of seagrass beds in the Philippines

ACTIVITY USE RANKINGIndustrial development widespread Major usePorts widespread Major useRecreation widespread Major useWaste disposal widespread Moderate useBoat Traffic widespread Moderate useAquaculture-Fish localized Major useUrban development localized Major useMining Localized Major useAquaculture-Prawns Localized Moderate useSolar salt Localized Moderate useFlood run-off Localized Moderate useAquaculture-crabs Localized Minor useSugarcane Localized Minor useAirports localized Minor use

Source : Fortes 1995.

The over-exploitation and degradation of seagrass beds will inadvertently threaten thepopulations of some endangered organisms such as dugongs and marine turtles found inseagrass beds (Fortes 1995). Dugongs and turtles have been hunted for subsistence andtheir commercial trade in the Indo-Pacific region has endangered them. CITES actually listedthese species as endangered (IUCN 1983).

Human society benefits from seagrass beds which could supply around 30 per cent ofthe fishes caught in nearshore areas (Fortes 1994). Seagrass meadows are also fishinggrounds for juveniles and small adults of the economically important rabbitfish, Siganus.Siganids dominate the fish catch in seagrass areas, for example, reaching up to 80 per centat Cape Bolinao, Pangasinan (Fortes 1995). The composition of organisms collected from atrawl sample in the beds comprised 28.6 per cent fish and 71.4 per cent prawns (Fortes1995). Seven species of prawns, including commercially important species were found inseagrasses (Fortes and Flores 1994).

Recommendations for the management, conservation and sustainable use ofseagrasses in the country have been made by Fortes (1995), as well as for an integratedapproach towards seagrass and mangrove ecosystems, focusing on the interconnections ofthese habitats (Fortes 1988, 1991).

2.4.3 Critical habitats, ecosystems and species of transboundary importance

Critical to the goal of sustainable development of the marine ecosystem is the aim toprotect, to sustain and to enhance these resources. Understanding the impacts on the marineenvironment from natural and human factors is crucial in the planning and management ofthese resources. Information on the differential contributions of these factors and theirinteractive effects are important for decision makers to adapt to the changing needs ofsociety. The status review of the various ecosystems presented earlier can provide anobjective basis for the strategic prioritization of critical marine habitats.

At present, aside from looking at the condition of various habitats and resources in themarine environment, various programmatic approaches (for example, the EIA system of the


Environmental Management Bureau and the coastal environment programme) are beingundertaken by various institutions to help understand and manage these resources.

Strategically, the protection of critical marine habitats and their biodiversity implies thatthe evaluation of their importance places a high priority on the significance of their integratedand multifunctional roles (for example, as a spawning and nursery ground and feeding area).The following criteria may be considered to identify and resolve the importance andsignificance of a particular area:

(a) Biodiversity values primarily refer to the degree of importance of the area based on thediversity of habitats, trophic levels, species and genetic pool. This also includes theappreciation of the significance of unique (for example, endemic) and endangeredspecies;

(b) Ecological values refer to the evaluation of the role of the ecosystem as a geologicalbuffer (for example, as in the prevention of coastal erosion) and its role in theinterconnectivity of the resources, for example, as source and sink for both biotic andphysical attributes (such as upstream and downstream features of pollutants);

(c) Fisheries values refer to the evaluation of the resources based on the potential forsustainable utilization (i.e., fisheries potential);

(d) Tourism values refer to the evaluation of the aesthetic values of the resources (forexample, presence of scenic and recreational areas);

(e) Pragmatic considerations refer to social and economic attributes that interact with thebiophysical attributes of the ecosystem which either enhance or attenuate the areassustainable development.

In table 2.12, some management and policy considerations are proposed to highlightthe possible options dealing with some priority areas and issues. Although the cases cited arenot all encompassing, they provide useful lessons. The sectoral classification is based on thebiogeographic areas of Ali and Gomez (1994) and is useful in a strategic sense since it is anatural ecosystem framework. If one looks in the preceding sections for importance values,two (biodiversity and ecological) of the values are primarily related to the natural ecosystemfeatures while the other three are more related to the ecosystems value to the Philippinesociety and its responses to it. The significance in the international and national levelillustrates the high premium placed on the natural ecological heritage and its intergenerationalimportance. Another emergent insight is that in aspects where sustainable utilization is aprevalent objective (for example, FSP sites and regional growth centres for possibleprogrammatic EIA) the primary role of local government becomes critical. Nevertheless, theemergence and heightened appreciation of community-based coastal resourcesmanagement, with the establishment of municipal marine reserves and fish sanctuaries, areamong the primary tools for management. It is only recently that the appreciation of coastalzoning and the harmonization of multiple uses through an inter-municipality or inter-provincialundertaking (for example, as in the FSP bays) makes coordinated and larger scalemanagement units a challenge. In these situations, the need for coordination can befacilitated by the national government agencies through technical support, networking andleveraging of funds to where it is most appropriate.

How are the assessments of the various areas matched with ongoing and otherprogrammes? The main programmes and relevant institutions which have direct bearing are


the following: National Integrated Protected Areas System (NIPAS) under the PAWB, theenvironmental impact assessment system under the Environmental Management Bureau, thecoastal environment programme, the Department of Agriculture - BFAR fisheries sectorprogramme, and other associated programmes,for example, USAID - CRMP, UNDP- DENR-ICZM, and Monitoring, Control and Surveillance (MCS).

There is a need to evaluate the sustainable development needs of our nationalindustrialization strategy through the integration of the regional growth centres inconsideration of the programmatic EIA and the industrial environmental managementprogramme recommendations. The usual EIA procedure is an important starting point thatneeds to be further integrated. The local government code appropriately provides jurisdictionfor the local government units, a 15-km zone of municipal marine territorial waters. ThePhilippines, a signatory to UNCLOS and pursuing an archipelagic doctrine, subscribes to a200 nautical mile exclusive economic zone. Further integration can be achieved withenhanced coordination and complementation at the various levels of government. Forexample, in areas of national and international significance the primary role of the nationalGovernment is crucial while more effective implementation can be achieved in the greater roleof the local government units in the regional and local setting. In addition, while concernssuch as the connectivities of genetic resources and transboundary issues (for example, thetuna as a straddling stock) are necessarily a national concern, on-the-ground efforts by thelocal communities can have an affect and these need to be coordinated.

The evaluation of these importance values should be viewed in an integratedperspective with the objective of determining how the multiple uses are harmonized to assureits sustainable development. These are also viewed according to their degree of significancein the international (for example, based on international conventions), national (for example,national heritage area) and local (regional and provincial) perspective.

If we look at table 2.12, we will notice that of all the sectors the Sulu Sea sector hastwo areas which are internationally significant (followed by those off the western coast of thePhilippines facing the South China Sea). Can this imply a marine resource ecosystemstrategic interconnectivity? This further implies that future marine affairs policy may requirethat these questions be addressed as a priority research gap agenda.

Perhaps one will notice that there is a north to south trend (albeit weak) superimposedwith that of a north-east and south-west monsoon influence. This generalized influence of themonsoons together with the tectonic history primarily defines the objective constraints of ourmarine affairs. Our developmental thrust, as an archipelago should take this condition intogreater consideration. It seems that despite the relatively more conducive conditions (forexample, in the biophysical aspects such as high fisheries potential) for the development ofthe marine resources in the south and south-west sectors, relatively few governmentprogrammes have been undertaken. This highlights the great influence of the socio-economic conditions of the area (for example, the peace and order situation).

Consider also the marine resources evaluation exercise in table 2.13, which may helpus qualitatively gauge the vulnerability and sensitivity of the sample cases. One can utilize theconcept of the pressure-state-response model (IUCN/UNEP/WWF 1991) to elicit which areasare vulnerable or sensitive employing the importance values mentioned earlier. Going throughthis exercise, the vulnerable areas can be determined if one can glean which are the areaswith high impacts (as in the coral reef evaluation approach of Ali and Campos 1994; Aliand others in press) and high importance values. Note that vulnerability here then implies thatthe type of human activities (i.e., use of the ecosystem) characterize the vulnerability of theseareas. Sensitivity would refer to more objective criteria strictly based on the marine


ecosystems ecological value (i.e., a turtle nesting area is more sensitive than a non-turtlenesting area regardless of use). For example, the areas in the Spratlys are highly sensitiveareas because of the presence of endangered species and high clusters of reefassemblages. Although it is less vulnerable in its present state, it could become morevulnerable in the future depending on the social response (for example, effectiveness ofprogrammes on these areas and increased political conflicts) of the times.

In addition, it is also apparent that no sufficient monitoring and evaluation programmes(especially on the effect of their protection, the improvement on the marine ecosystem andtheir allocation of benefits to the programmed beneficiaries) are in place to provide adequateinputs on how to adapt to the changing scenario and needs of these areas. The last columnof table 2.12 is a summary of some general recommendations to encapsulate the generalissues mentioned above. These recommendations should be considered as an initial tool (likea straw man) which can be used to help evolve a participatory overall framework for a marineaffairs policy.

Lessons learned on the exploitation of marine resources

Based on the time estimates (1920-1994) already quoted, it can be surmised thataround 60 per cent of the mangrove forest in the country has been lost to coastal conversion,mainly to fishpond developments. From a 1920 estimate of 500,000 hectares, only 200,000hectares remained (as of 1994). In the mid-1980s, 45 per cent of mangrove loss has beenconverted to fishponds and the rest for other purposes (for example, exploitation for its forestproducts: timber, firewood, tannin, nipa). Recent stock assessment of coral reefs in thecountry showed about 70 per cent of the coral reefs have less than 50 per cent living coralcover. Siltation, overfishing and destructive fishing have been recognized as the three mainfactors affecting coral reefs. Although these three are equally prevalent, sedimentation is themost important factor. Seagrass beds in the country are also converted to other uses, forexample, ports, industrial developments and recreation. However, no comprehensiveevaluation on the seagrass cover in the country has been undertaken to date. Pelagic anddemersal fisheries have been biologically and economically overfished. The soft-bottom areasand the oceanic regions are highly overfished communities. Around 80 per cent of our marineenvironment comprises sandy/muddy habitats and oceanic areas, yet these two are the leastappreciated. For a complete tabulated listing of the status, uses and threats of these coastalecosystems, see Fortes (1996).

Bioeconomic studies demonstrate that the combined ecological and economicstudies on the coastal zone attempt to maximize economic benefit while minimizing socialand environmental costs. Policies with a sound scientific basis are advocated for thereorientation of economic policies. The concept of resource or economic rent has only justbeen recognized and adapted by the Government. The employment of resource/economicrent imposes on the users near the true value of the resource. This is often abused in open-access exploitation. The open-access characteristics of the marine environment can bemanaged with community-based management for the rational use of the resources. Existingrecommendations for different marine ecosystems can be initially used to provide theconceptual framework for the conservation, management and sustainable use of thesemarine resources.

Table 2.12 Priority issues and possible management options in the various biogeographicsectors


Sector Areas and Priority Issues and Concerns Level Policy and Management Options

I. Western Palawan I.1. Spratlys and the Kalayaan Islands Group (KIG) - I I.1.a. Establish internationally recognized (e.g., proto- disputed areas, political conflicts threaten critical cols or conventions) marine protected areas (jointly- habitats (small island coral reef ecosystem) and managed or stewardship arrangements) in these associated endangered species (McManus and others 1992; areas to enhance its importance as an Asian or Ali and others 1996) world heritage site.

I.1.b. Agree on stewardship arrangements (within the status quo) for the importance and establishment of strict marine conservation and protection zones w/in each base area and agree on grey zones for joint scientific and conservation efforts.I.1.c. Identify highly critical areas (e.g. seabirds and marine turtle nesting areas, marine mammal migratory corridors) as objective bases for a common heritage area.

I.2. Calamianes Group - unique and threatened N I.2-I.4 a) Clarify and resolve delineation of importance coastal habitats (e.g., Coron, Calauit) for national and local jurisdiction based on its rela-I.3. Bacuit Bay - unique and threatened coastal N tive importance as national and local heritage zones. habitats (e.g., El Nido's pristine reefs and b) Emphasize and coordinate integrated activities presence of Dugongs and marine turtles) to optimize sustainable and equitable benefits atI.4. Ursula Island - endangered seabirds R/P all levels.

c) Enhance the complementation of ecotourism and biodiversity protection and management as the preferred development goal to the sustainable utilization of fisheries.

I.5. Ulugan Bay - sustainable utilization of coastal R/P I.5-I.6 a) Estimate carrying capacity (e.g., fisheries and resources tourism of the bays and regulate harmonious usesI.6. Malampaya Sound - sustainable utilization of R/P accordingly (zoning and regulatory guidelines per coastal resources (esp. mangroves) zone)

b) Establish sustainable local environment and resources councils (LERC) which are integrated at all hierarchical levels (e.g., barangay to the provincial level). c) Promulgate programmatic EIAs in these priority bays and/or sectors.

Significance Level: I=International; N=National; R/P=Regional and Provincial (local significance).



II. North of Mindoro to II.1. Scarborough Shoals - high diversity coral reef I II.1.a. Link this reef area to the more internal waters NW Luzon area together with presence of endangered (e.g., through the validation of source and sink

species relationships or marine larvae and adults in the other sectors of the country).II.1.b. Establish the area as a national marine protected area (MPA) for the sustainable utilization of marine resources in the coastal areas of the country.

II.2. Puerto Galera, Mindoro Oriental - UNESCO MAB N II.2.a. Coordinate with the UNESCO Man and the -need to enhance ecological protection and high- Biosphere (MAB) program, LGU and the DOT's light educational value short and long term plan and implementation for

coastal management in the area.II.2.b. Establish the area as a demonstration site to highlight the education and cultural value of the area as a model for harmonious uses through tourism, ecological value appreciation and fisheries potential.

II.3. Apo Reef, Mindoro Occidental N II.3.a. Highlight Apo Reef as a critical gateway to the -need to enhance ecological protection and high- Sulu Sea (SS) and the South China Sea (SCS) and light educational value is at the intersection between sectors I, II, IV and V.

II.3.b. Establish research and monitoring programs as way of evaluating the pulse of the SS and SCS.II.3.c. Since this area has no resident population, it has a high probability of success to consolidate gains of the CEP.

II.4 Batangas Bay and Balayan Bay I/N II.4-II.8 a) Consolidate gains of the area by phasing -requires improvement in the effective manage- over most internationally initiated activities to ment to assure sustainable use (for II.4 to II.8) locally implemented sustainable pursuits.II.5. Manila Bay N b) Transform CEP led coordinated programs in theII.6 Subic Bay R/P area to CEP technically assisted programs.II.7 Lingayen Gulf N c) Enhance local capabilities through internationalII.8. Oyon Bay R/P recognition, training and collaboration in order to

assure sustained ICZM in the area.



III.a. NE Luzon III.a.1. Batanes Islands (e.g. Yan-i Islands) - flyway I/N III.a.1-III.a.3 a) Due to the areas' susceptibility to the (Batanes to Casi- and seaway of many important seabirds and NE monsoon ("amihan"), these sectors' relative in- guran Peninsula) endangered species (e.g. marine turtles, turban accessibility has been afforded natural protection

shells) so that no new high level development thrustsIII.a.2. Fuga Island - potential ecozone, privately N should be encouraged. owned but with significant manta ray b) Ecotourism can be the development thrust but population, high diversity and tourism value sustaining these activities without upscaling theIII.a.3. Palanan Wilderness Coastal Area N market demands requires innovative approaches; -downstream sensor for one of the few remaining these approaches remain to be further explored. coastlines adjacent to ultrabasic primary forests c) Increased access by land in the long term will

create greater pressure on the eastern coasts (e.g., from siltation) and further infrastructure development would entail the EIAs on their socio- ecological impacts be carefully considered so as to maintain and reserve these pristine areas.

III.b. Aurora to III.b.1. Pollilio and Minasawa Island R/P III.b-III.c a) In order to facilitate the harmonious uses Catanduanes -need to harmonize biodiversity protection within through protection and regulated use - the estab-

sustainable use (for III.b to III.c) lishment and institutionalization of marine protect-III.b.2. FSP Bays on the Pacific side (e.g. Calauag R/P ed areas (especially in the island ecosystems as Bay, Lagonoy Gulf, etc) municipal marine reserves and fish sanctuaries).

b) Planning and implementation of coastal zoningIII.c. Pacific Coasts III.c.1. Guian R/P mechanisms to be merged with the bay manage- of Samar & Leyte III.c.2. Limasawa Island R/P ment councils need to be further pursued.



IV. West & Central IV.1. Taklong Island N IV. This sector by far has the most number of local Visayas; West -enhance gains of local initiatives to integrate initiatives and these gains need to be consolidated Coasts of Samar and impacts for optimal benefits to the regional and so that sustainability is assured and its benefits are Leyte and Northern national (for IV.1 to IV.5) optimized; Mindanao IV.2. Olango Island and vicinity (including MEPZ) N In order for these successes to be sustained and

IV.3. Pamilacan Island - marine mammals N optimized, consolidation can be achieved byIV.4. Apo Island R/P pursuing the following mechanisms:IV.5. FSP Bays (e.g., Ormoc, Sogod, Carigara) R/P a) that highlight these successes in order to engen-

der recognition of the lessons learned, b) that explore and pursue integrative value added activities to explore interconnectivities of island ecosystem clusters so as to cope with increased marine waters usage, c) where EIA programs, NIPAS and maritime activities will need to adapt to these developmental transport inevitably making the fluid conditions a crucial test case for strategic planning, d) where each of the local initiatives will require the appreciation of large scale processes which can affect their Territorial Use Rights Fisheries (TURF) areas



V. The Coasts and V.1. Tubbataha Reefs (including Basterra) I/N V.1 and V.2. The Sulu Sea can be considered as a Oceanic Regimes of -need to assure the sustained protection of these relatively large marginal sea (embayment vis-à-vis the Sulu Sea unique and threatened habitats; requires enhance- others in the country) which is the Philippines'

ment of its national and international significance internal gateway of the Pacific Ocean to the South -high diversity China Sea. This feature affords this sector with -world heritage site other unique assets whereby in its heart and bossom -National Marine Park two significant international areas are situated (theV.2. Turtle Islands - nesting area of 80% of the marine I/N Tubbataha Reefs and Turtle Islands). In order to green turtle population (Chelonia mydas ) assure the enhancement of the national and inter-

national heritage values of these areas, protection and preservation of these areas are the primary goals with the options to: a) Implement effectively the proposed management plans for the Turtle Islands and Tubbataha Reefs. b) Foster greater participation of local multisectoral stakeholders in the area. c) Assure that in the long term, greater responsibility is afforded the local governments involved with the national agencies defining their role in technical assistance, coordination, administration and funds leveraging.

V.3. Sta. Cruz Island, Zamboanga R/P V.3-V.4 a) Ecostourism activities should be harmonized -harmonize tourism and ecological value with sustainable uses by emphasizing the areas'V.4. Taytay Bay (northeastern Palawan) N ecological values aside from the pure recreational -harmonize tourism and ecological value assets. -marine mammals (Dugon dugong ) b) A sustained activity for Dugong dugong conser-

vation program and other endangered species in this sector needs to be established.



VI. Eastern Mindanao VI.1. Siargao Island, Surigao del Norte N VI. For the two areas of Eastern Mindanao, the range -unique coastal habitats of multiple uses are exhibited by a spectrum of high -marine crocodiles (extensive mangroves) ecological, biodiversity, tourism and fisheries values.VI.2. Pujada Bay, Davao Oriental R/P Considering these potential environmentally sensitive -habitat for endangered marine organisms values, the following options may be pursued: -start of Red Tide a) Operationalize the Siargao and Pujada Bay

management plans taking into consideration the range of harmonious multiple uses of the area within the context of the overall national strategy. b) The degree and direction for industrial development in Siargao Island (as an Island ecosystem) should be minimal and the ecotourism push be regulated according to the carrying capacity (targets) since the area's susceptibility to the north- east monsoon can accentuate high levels of human impacts. c) On the other hand, Pujada Bay being as enclosed bay in the northern mainland of Mindanao will experience a high rate of agro-industrial activity and thus critical protection zones (e.g. Pujada Is.) should be operationalized and buffer zones within the bay heads and belly be established.



VII. Southern Mindanao VII.1. Davao Gulf R/P VII. The Southern Mindanao sector is the least exposed and the Celebes -requires identification of more priority MPAs to to typhoons and has its rich fisheries potential as its Sea harmonize sustainable use objectives (for VII.1 to most significant asset. There is a need to harmonize

VII.3) the likely increased utilization of on-stream programsVII.2. Moro Gulf R/P (e.g. FSP-Phase II, IDRC-MCS and the DENR-CEPVII.3. Saranggani Bay R/P at Mabini Island) that have been initiated. Since the

initiatives are relatively new and the socio-political climate are quite unique, the following options can be pursued: a) Enhance participation and capacity of LGUs and NGOs in the area with the proper mixture of co- management and CB-CRM approaches in relation to sustainable fisheries utilization and marine biodiversity protection. b) Consider inter-agency bay consultative committees and enhance the integration of NIPAS, CEP, FSP and EIS procedures into the economic zone (SPCPD) development agenda. c) Establish the interconnectivity of the genetic stocks in these three bays with its shared stocks of the Celebes Sea with Indonesia.


Table 2.13 Sample exercise (not validated) to help elicit vulnerable and sensitive areas (based on biodiversity significance level and pragmatic value)

*F=Fisheries; E=Ecological; T=Tourism

*Values of 5 = High value, 3 = medium and 1 = low are based on expert evaluation of theauthor

Significance VALUE* P R O G R A M S Sector

Level F E T NIPAS CEP EIA FSP Otherneed Programs

I.1 Spratlys 5 5 5 1 XI.2 Calamianes 3 5 3 3 XI.3 Bacuit 3 3 5 5 X HI.4 Ursula 1 5 3 3 XI.5 Ulugan 1 5 1 1 M XI.6 Malampaya 1 5 1 1 M X

II.1 Scarborough Shoals 5 5 5 1 L XII.2 Puerto Galera 3 1 3 5 X X L XII.3 Apo Reef, Mindoro 3 1 5 5 X LII.4 Batangas and Balayan Bay 4 1 3 5 X H XII.5 Manila Bay 3 5 1 3 H XII.6 Subic Bay 1 3 1 5 X H XII.7 Lingayen Gulf 3 5 3 3 X H XII.8 Oyon Bay 1 3 1 1 H X

III.a.1 Batanes 4 4 5 3 X MIII.a.2 Fuga 3 1 5 4 H XIII.a.3 Palanan 3 1 3 3 X MIII.b.1 Pollilio 1 5 3 1 M XIII.b.2 FSP Bays 1 5 1 1 H XIII.c.1 Guian 1 3 1 1 X LIII.c.2 Limasawa 1 3 1 1 L

IV.1 Taklong Island 3 3 5 3 X X MIV.2 Olango Island 3 3 5 5 X X H XIV.3 Pamilacan Island 3 3 5 5 X M XIV.4 Apo Island 1 3 3 5 X M XIV.5 FSP Bays 1 5 1 1 X H X X

V.1 Tubbataha 5 3 5 5 X LV.2 Turtle Islands 5 3 5 5 X LV.3 Sta. Cruz Island 1 1 1 5 X HV.4 Taytay Bay 3 1 5 5 H X

VI.1 Siargao Island 3 3 5 1VI.2 Pujada Bay 1 3 3 3

VII.1 Davao Gulf 1 5 3 3 X H XVII.2 Moro Gulf 1 5 3 3 X M XVII.3 Saranggani Bay 1 5 3 3 X H X


3.0 NATIONAL ANALYSIS OF THE SOCIAL AND ECONOMIC COSTS OF THEIDENTIFIED WATER-RELATED PRINCIPAL ENVIRONMENTAL ISSUES

The following sections are constrained by the paucity of information available toprovide quantified estimates of social and economic costs. Despite these constraints, thisreport attempts to explore some possible indicators (for example, utilizing descriptiveaccounts from many disaggregate and discrete sources) which may help one to surmise therange and extent of the costs in the water-related issues. Moreover, we also call attention tocaveats on the available information to show the need to further investigate and establish aninformation system for decision support on these issues. This can be developed in anadaptive management approach in which interventions do not have to be delayed but withbest guess or information available, measures are implemented (utilizing precautionaryprinciples). Adequate information feedback to adapt or adjust the management mechanismsto appropriately respond to the situation should be an inherent aspect in this adaptivemanagement approach.

Cross-sectoral relationships in freshwater and marine, upstream and downstreameffects are difficult to cost but can be estimated based on some crude indicators (forexample, Hodgson and Dixon study in Palawan 1988). As mentioned, the need for a morecomprehensive and ongoing national and environmental resource accounting systemintegrated into government policy has been pointed out by many (Cruz and Repetto 1992, delos Angeles 1994, Montes 1994 and Constanza and others 1997). In order to evaluate thesesocio-economic costs, the cause and effect relationships in the following areas have to bewell established:

(a) The variability of effects in habitat change and resource over-exploitation;(b) The intersectoral effects of natural and environmental use changes by the

stakeholders (for example, materials intensive and industry intensive industrialgrowth and increasing pollution);

(c) The interpersonal effects of unemployment, poverty and population pressure onmarginal resources (Cruz and Repetto 1992).

The stabilization mechanisms and structural adjustment policies of the Governmentand how they impact on the environment and the water-related issues need to be proactivelyexamined so as to cope with the present local and global changes. Since cause and effectindicators in environmental and resources utilization together with their effects are onlystarting to be incorporated into government policy and management of programmes (seeMendoza and Magpantay 1997), many of the descriptive accounts outlined below can beutilized to design and quantify forthcoming data inputs.

Biodiversity losses and habitat change in water-related concerns are not wellquantified especially in terms of socio-economic values. Only indirect measures aredescribed to give an indication of the possible socio-economic costs. For example, one candescribe the decline in forests as related to effects on the watershed source of water andconcomitant effect of erosion and siltation on water reservoirs.

How effective is the establishment of protected areas in reducing costs to theenvironment? The need sustain financial resources is also very fuzzy at the moment. It isnot clear how capacity-building efforts, especially in manpower and research, have an effectin solving the problems concerned with water-related issues.


Table 3.1 Philippine nature sector accounts, 1988 (in million pesos)INPUT Amount Pct to GDP

Environmental Damagesa. Airb. Water

1022,507 0.3

total 2,609 0.3Net Environmental Benefit 24,214 3.0NATURE SECTOR INPUT 26,823 3.3Nature/Env’l Depreciation (1,949) 0.2NET NATURE SECTOR INPUT 26,874 3.1

OUTPUT Amount Pct to GDP

Final Demand for NonmarketedEnvironmentalWaste Disposal Services

c. Aird. Water

5,14920,094

0.62.5

total 25,243 3.1Direct Nature ServicesDivingForest RecreationCoastal Beaches

0.9713

1,566 0.2Total 1,580 0.2NATURE SECTOR OUTPUT 26,823 3.3Nature/Env’l Depreciation (1,949) 0.2NET NATURE SECTOR INPUT 24,874 3.1Source: Angeles, Peskin and Bennaga 1994

3.1 SOCIAL AND ECONOMIC COSTS OF POLLUTION

Estimates of the economic costs of water-related sewage are around 2.5 per cent ofGDP. While it may seem low, this can be significant considering that the Philippine foreigndebt servicing is around 3.6 per cent of GDP (Montes 1994). In addition since many pollutionproblems and habitat modification have long-term effects on ecosystem changes, annualestimates on environmental costs as a proportion of GDP should be viewed carefully. Thiscaveat relates to the averaging of cost estimates of environmental damage which is carriedover the years (giving lowered estimates) when in reality some cumulative effects may beaccrued (for example, biological accumulation and entrainment of pollutants in sink areassuch as lakes and embayments).

Social costs related to the loss of employment associated with poor health andreduced fish production may eventually lead to the marginalization of the poor in the coastalareas. In many of the manufacturing coastal areas, squatter colonies aggregate to provideservices to the labour population in the area including the proliferation of sex workers, drugusers and criminals.


Ethical and cultural costs accrue from a loss of respect for the water environment

because of their sense of helplessness in not being able do something about their condition. This feeling of helplessness occurs especially in areas that are located as downstreamreceptors of accumulated pollutants from upstream manufacturing firms.

Health costs from diseases such as diarrhoea and gastro-enteritis from ingestion ofpoor quality seafood affected by pollutants have not been fully estimated. Often reports of foodpoisoning from seafood intake are seen in newspapers. Death from paralytic shellfishpoisoning has often been an indicator that a harmful red tide bloom has occurred. Othereffects from biomagnification of toxic and hazardous chemicals have not been welldocumented but some reports have implicated potential hazards from mercurycontamination.

3.2 SOCIAL AND ECONOMIC COSTS OF WATER SHORTAGE AND DEGRADATIONOF ITS QUALITY

A study funded by the Japan International Cooperation Agency (JICA) for the NationalWater Regulatory Board that classified the country into freshwater regions based on riverbasins and projected simulations of trends from 1995 to 2025 showed that the NationalCapital Region (NCR) had the lowest (1.8 per cent) annual average growth rate from 1995 to2025 of the water regions classified. However, it still had the highest level of per capitaincome (P42,962) followed by central Luzon and southern Tagalog. Judging from the grossvalue added projections in all sectors (industry, agriculture and services) for these waterregions, it was obvious that the regions that were projected to have the highest gross valueadded were found in very limited water resources regions (III, IV, VII, VIII and X) and riverbasins (Pasig- Laguna Bay, Mindanao and Cagayan). This suggests that a more balanceddevelopment needs to be carried out in these water resources regions or they will have tocontend with water constraints.

Saline water intrusion and groundwater pollution have been identified as the two mainproblems pointed out by the study although it did not gauge the magnitude of these problems. Despite the identified causes of over-exploitation of groundwater and pollution from increasedpopulation activities, there is as yet no national evaluation of socio-economic costs accruingfrom these problems. The high incidence of anecdotal and circumstantial evidence indicatesthat these problems may have the highest costs in Metro Manila and Metro Cebu areas.

Environmental socio-economic costs associated with flooding on land have also notbeen fully evaluated but have been reported to have caused major damage to life and propertyand to have reduced economic productivity.

The impact of the construction of dams and related engineering facilities has beenwell recognized, for example, the modification of freshwater habitats and species compositionchanges. This area is another gap that requires further investigation.

In the environmental section of the study, it identifies soil erosion as a problem inmany catchment areas but the social-economic costs have not been evaluated. Furthermore, insufficient surface water classification has led to inconsistent uses and waterquality problems.

In Region VII, especially for Cebu and Bohol, the catchment area has experiencedwater quality problems because of the increasing population.


Since the social and economic costs have not been elucidated, one can onlyspeculate on the possible costs. Dependent on development trends and the distortionsbrought about by water shortages and pollution, employment will be affected by changes ineconomic activity. In addition, costs to the community from poor health and disease (forexample, malnutrition, hepatitis and diarrhoea) which result from lowered and inadequatewater supplies have been considered but not quantified.

3.3 SOCIAL AND ECONOMIC COSTS OF OVER-EXPLOITATION OF AQUATIC RESOURCES

Around 0.1 per cent of GDP natural resource depreciation was estimated by Angelesand others (1994) as cited by Montes (1994). But Lacanilao (1997) points out that from apeak of 1.2 million tons of fish caught by municipal fishers in 1991, this catch volume droppedto 0.9 million tons in 1996. This may be indicative of possible over-exploitation since hepointed out that 1996 saw a drop in the total fisheries catch despite an increase inaquaculture and commercial fish production. If we were to estimate the total cost of thisdecrease it would amount to around $30 million a year, 0.01 per cent of GDP. On the otherhand, Saeger (1994) provided more detailed estimates of the annual economic and financiallosses and rent dissipation from the different fisheries subsectors, as follows:

1. Demersal fisheries: rent dissipation of between US$100 million and US$160 million(with an assumed average of US$130 million)

2. Small pelagics: rent dissipation of US$242 million3. Large pelagics: rent dissipation of US$300 million4. Brackishwater aquaculture and destroyed mangrove areas: rent dissipation of

US$ 242 million5. Collection of aquarium fish: rent dissipation of US$242 million6. Spoilage from improper post-harvest handling: losses of US$390 million

Based on these conservative estimates, the combined annual rent dissipation andlosses in the fisheries sector total at least US$1.23 billion. To be added to this figure are thelosses of fish harvests because of poaching by foreign fishing vessels, worth about P50billion since 1989, equivalent to annual losses of approximately US$57 million. Theseharvest losses may be classified as lost fishing opportunities and the activities certainlycontributed to the current problem of overfishing. If these losses are added to the estimatesabove, then the aggregate deficit will total US$1.8 billion or P50.4 billion annually.

The social and economic costs to more than 90 per cent of the total fishing populationin reduced incomes and loss of possible livelihood is mind-boggling. Approximately 20 percent of fishing may need to be reduced to restore sustainable levels.


3.4 SOCIAL AND ECONOMIC COSTS OF HABITAT CHANGES

As mentioned in the earlier sections it is difficult to evaluate the socio-economic costsof habitat changes since no nationwide study has been completed to draw these estimates.We utilize examples from two (the coral reef and the mangrove habitat) of the most highlyproductive areas in the country to show the possible magnitude of these losses. It is in thesetwo habitats that areal cover estimates of these ecosystems have been made.

For the coral reef, areal cover estimates range from 25,000 - 33,500 squarekilometres. Gomez and others 1994 estimated that only around 5 per cent are in excellentcondition whereas around 20 per cent are in poor condition. Based this information, Ispeculate that the shift from excellent to poor may be initially equivalent to a loss of around 5per cent of its total productive area (range: 1,250 - 1,670 square kilometres). If one utilizes aninitial benchmark estimate of Constanza and others (1997) at $6,075 per hectare the losswould already be around $0.7 - 1billion. Note though, that it is difficult to gauge the loss on anannual basis and efforts to look at the recovery rates of reefs might be the approach towardsresolving this concern.

On the other hand, consider the loss of mangroves of around 260,000 hectares (1994) from an original area of around 400,000 to 500,000 hectares in the early 1900s. Againutilizing a median value of around $10,000 per hectare from Constanza and others (for coralreefs at $6,075 to estuarine areas of $16,000 per hectare) we have an estimate of $2.6billion. Again, there is a problem of how to evaluate this loss on an annual basis.

As mentioned in the introductory part of this section, the social costs may be evenmore difficult to evaluate.

4.0 ANALYSES OF THE ROOT CAUSES OF THE IDENTIFIED WATER-RELATEDISSUES

Aside from the specific issues, there are some cross-cutting causes which may beconsidered systemic in nature. De los Angeles and Padilla (1992) have diagrammaticallypresented some of these concerns in relation to a cross-transect approach starting from thewatershed down to the offshore areas. The demographic shifts into the coastal zone, whichcreate increasing pressures in the main population centres, may be traced to disproportionatelevels of development in the urban and rural areas. Fettered by a semi-feudal history, thelarge chasm between the landlord and tenant farmers who have access to natural resourceshas created a pull towards the sea where an open access situation prevails. In addition, thisis exacerbated by inadequate coastal (marine) and land use zoning in most of themunicipalities of the Philippines.

The lack of coordination and integration of administrative and jurisdictionalmechanisms in order to solve water-related issues may be rooted in the insufficient legal andinstitutional conditions in the country. It has often been said that many of the laws onenvironment and natural resources are in place, and that what is needed is the political will toenforce them. Although there is some truth to this, there are macroeconomic and politicalconditions which may need to be addressed. The appropriate mix between central controlsand private access arrangements especially in areas of common property should be wellthought out.

One of the root causes may also be related to the effects of the increasing rate ofglobalization on the economy of the Philippines and the world in general. For example,production for exports and import substitution and enticements for increased investment into


the country require caution. Instead of putting environmental controls and safety nets aside tobe globally competitive, innovative taxation measures can be explored and other mechanismsfor value added products can be undertaken (for example, improved processing andmarketing and eco-labelling).

Some of these systemic root causes will be considered initially as constraints (seesection 6) although it has to be emphasized that there exists a consistent lack of capacity inmany of these areas (for example, economic, financial, scientific information andadministrative organization).

4.1 ROOT CAUSES OF POLLUTION

4.1.1 Domestic and solid wastes

Only Metro Manila is served by a sewerage system (the Metropolitan Waterworks andSewerage System, MWSS) which caters to around 1.2 million people of the estimated 9.45million in the metropolis. According to Deocadiz (1997), the households of middle incomefamilies (about 4.8 million people) often have septic tanks which are adequately servicedwhile others utilize an "unconventional sewage system".

The implication of the inappropriate waste management system in Metro Manila isexacerbated several fold in over nearly 30 major human settlements in the country. Asidefrom Metro Manila, Metro Cebu and Davao City with urban populations of over one millionpeople also experience similar conditions.

This insufficiency of sewage treatment facilities is also paralleled in the lack of a solidwaste disposal system. For example, only 60-70 per cent of daily solid waste generated iscollected and absorbed in dumpsites and landfills. The rest is burnt or immediately dumpedas waste in tributaries and coastal waters. It is interesting to note that in the solid wastegeneration of 0.2 kg day, 1. 43 per cent consists of putrescible matter (i.e., included in the listof toxic and hazardous waste)(NCSO 1983).

In the Batangas Bay Region (ENROPGB 1996), solid waste is accumulated for thefollowing reasons:

1. Inadequate dump sites;2. Low collection efficiency;3. Random dumping of uncollected waste;4. Wastes from ships especially domestic passenger vessels;5. Absence of incinerators;6. Lack of collection fleets;7. Narrow roads for large garbage vehicles;8. Irregular street sweeping and open drain cleaning; 9. Lack of incentives and penalties to implement waste minimization,

segregation and recycling. The social cost of absorbing the sewage and solid waste is as yet not clearly defined.

There is a need to clarify who would absorb the responsibility, either civil society or theGovernment for the sharing of allocations. There is a need for planning the financial allocationfor the public and private sector cost sharing for the establishment of a comprehensive wastedisposal system. This should include waste minimization and recycling programmes at thelocal, regional and national levels.


4.1.2 Agrochemical loading

The livestock waste as of the moment has no clear limits in terms of the stockingdensity of poultry and livestock. No limits in poultry and livestock density leads to excessiveand unregulated livestock waste. Since there are no estimates and regulations for thecumulative effects of this agrochemical input, then an integrated system similar to theprogrammatic EIAs may be needed to deal proactively with these problems.

Farm inputs, fertilizers (for example, urea and NPK) and pesticides (for example,insecticides, herbicides and molluscicides) have no clear guidelines on what are the propercrop and livestock raising practices. In effect legal controls of waste from farm outputsbecome voluntary and may be susceptible to consumer preferences and pressure. Pesticideand nutrient inputs are considered primarily for production without sufficient controls onenvironmental impacts. Regulation and control of pesticide manufacture is also necessary tolimit the impact of this issue.

4.1.3 Siltation/sedimentation

Natural coastal erosion and sedimentary depositional shift as well as recreational andcoastal activities primarily lead to heavy siltation and sedimentation in low lying areas ordepressions, rivers and coastal areas (for example, Manila Bay, Lingayen Gulf, Cebu andMarinduque). Aside from natural factors, intensified deforestation and subsequent landconversion is a major source of these problems. Strict implementation of laws regardingillegal logging activities is needed to minimize its effect. In addition, adaptation of proper andadequate soil erosion measures in the specific area of concern and land use planning shouldbe instituted.

4.1.4 Organic pollution in terms of biological oxygen demand (BOD)

Deocadiz (1997) enumerated the five major manufacturing industries (foodprocessing; sugar mills, refineries and distilleries; desiccated coconut and coconut oil mills;pulp and paper; and textiles) that contribute largely to the organic pollution load in rivers andstreams and coastal areas. In addition, waste generated by these industries (for example,food processing) also includes effects on the COD, suspended solids and nutrients. Theremoval of these nutrients in the wastewater treatment facilities is not given proper care andimportance and is often neglected. Significant discharges from the manufacturing processneed monitoring and control to minimize organic pollution loadings.

4.1.5 Toxic and hazardous waste [THW] including heavy metals and mine tailings

Most manufacturing industries (for example, mining and processing factories) haveinsufficient waste disposal mechanisms and unsafe practices owing to the lack of capacity ofthe public and private sectors to monitor, evaluate and control these practices. For example in1993, over 11,000 manufacturing industries existed with over half of these in Metro Manila.The major THW contributors by industry sector are chemicals, food and drink, and textileswhich accounted for over 50 per cent of the total THW loading in Metro Manila, Region 3 and4. It was observed that liquid THWs are currently discharged in an uncontrolled manner tosewers and watercourses. Moreover, chlorinated organics, trace metal, pathogens and oilywastes enter the inland water system and seas (IMO 1995). There are also toxic wastescritical to the health of humans and associated organisms being dumped at municipallandfills. This implies that the Environment Management Bureau has insufficient governmentresources, including manpower and time, to monitor and control industrial waste.


Listed below are other general observations on the generation of toxic and hazardouswaste in the Philippines (IMO 1995):

1. Geothermal plants generate ash residues with very high concentrations ofheavy metals;

2. Oil residues and volatile organic carbons originate from petroleum refineries, bulk depots and storage tanks in industrial plants;

3. Oxides and sulphides of arsenic and other heavy metals are produced from copper roasting and smelting processes;

4. Used polyethylene bags impregnated with pesticides from banana plantationsare disposed of in an uncontrolled manner;

5. Mercury contamination originates from small-scale mining in Mindanao, andchromium wastes are produced by leather tanning and finishing operations;

6. Heavy metals such as cadmium, chromium, zinc, nickel and copper originatefrom metal plating and finishing plants;

7. Hospital and laboratory wastes containing pathological and infectious agentsand other toxic chemicals are normally co-disposed with municipal wastes.

Moreover, mining and quarrying operations not only dump wastes which have heavymetals but also contribute significantly to problems of sedimentation and erosion. In theBatangas Bay region, the significant contributory factor to the issue of mine wastes is theunregulated environmentally destructive practices (for example, the open-pit mining method).

4.1.6 Oil pollution

The issue of oil contamination from shipping and sea transportation is criticalespecially in the western Luzon area. There are three major coastal refineries in the country(Bataan Refining in Limay, Bataan, Caltex South of Luzon and Pilipinas Shell in Batangas)which contribute to incidents of oil spill. There is insufficient institutional and administrativecapacity to ensure environmentally responsible maritime practices. Moreover, there isimproper siting and no strategic coastal development plans in the country.

In addition, oil spills caused by shipping accidents (from discharge, spillage, groundingand sinking incidents) in Philippine waters reached 14 cases in 1978 from the list of theNational Operation Centre for Oil Pollution. These incidents are expected to continue becauseof insufficient understanding of navigational routes and inadequate contingency plans.

Increased threats of oil discharges from industries (for example, in the Batangas Bayregion) is primarily due to insufficient control and lack of proactive measures (for example,readiness and effective response and active preventive management). There is also aprevalence of inadequate skills to detect, control and enhance areas of spills.

4.1.7 Harmful algal bloom (HAB)

Outbreaks of toxic and harmful red tide are caused by human and naturally inducedconditions. According to Deocadiz (1997), from 1983 to 1994 there were 16 areas all over thecountry that had been affected by red tide and paralytic shellfish poisoning. Eutrophicationfrom sewage, other pollutants (for example, phosphate and nitrate from fertilizers) andutilization of coastal waters from aquaculture have also been attributed to cause some of thealgal blooms, which in turn sometimes lead to fish kills and paralytic shellfish poisoning.Nutrient accumulation can also be due to the inefficiency of the existing wastewater treatment


facilities of some of the industries to remove excess nutrients. In this regard consideration ofa harmful algal bloom facility is necessary. This facility can provide monitoring control andsurveillance (MCS) and at the same time provide strategic policy guidelines and proactivetactical interventions in the issues related to harmful algal bloom.

4.2 ROOT CAUSES OF WATER SHORTAGES AND QUALITY DEGRADATION

4.2.1 Surface water quantity and quality

Contamination of surface water resources (for example, groundwater and sewers) isprimarily caused by improper disposal of waste including THWs, insufficient sanitary landfillsfor municipal waste disposal and contamination by septic tanks effluents. In Metro Manila, onlytwo sanitary landfills have been developed and operated since the 1990s (in San Mateo, Rizaland Carmona, Cavite) (Deocadiz 1997). According to Deocadiz (1997), all surface waters inMetro Manila are highly contaminated with human wastes. Other urban centres (for example,Metro Cebu, Davao and Cagayan de Oro) are also contaminated with domestic waste in theform of sewage, solid waste and leachate from dumpsites. There were reports thatcontamination of drinking water in Metro Manila also originated from a local timber mill inQuezon City which improperly discharged wastewater with Cr, Ar and Cu (IMO 1995). Othertoxic chemicals were also detected in the surface waters of Manila Bay, Calancan Bay,Davao and Palawan. This leads to a conflict of surface water uses. There should be effectiveregulation of waste disposal in tandem with the establishment of an efficient enforcementbody.

4.2.2 Groundwater quantity and quality

Depletion of water in reservoirs and salt water intrusion in Metro Manila and Cebu isprimarily due to unregulated water consumption or overextraction. As noted in the globalwaste survey by the International Maritime Organization (IMO), in the Philippines in general,there is poor pollution control and waste management around groundwater resources.Shallow groundwater resources have been contaminated by septic tank effluents and THWs,which are improperly disposed of by several manufacturing industries. Moreover, sanitarylandfills for municipal waste disposal is insufficient to accommodate the waste generated byhouseholds, commercial establishments and industries.

4.2.3 Hydrological alterations

Development activities such as damming of rivers can alter the existing hydrology inan area. Changing a riverine environment to lacustrine has a high impact on the aquaticenvironment and hydrology of the area. Although development like this can alleviate theshortage of freshwater in the metropolis, there should be a comprehensive EIA study tominimize the adverse impact on the surrounding environment, including the socio-economicconflicts that would arise from this development.

4.2.4 Freshwater issues related to global changes (for example, El Ni effects)

Naturally occurring pollution (for example, tropical cyclones, earthquakes, volcaniceruption and El Ni effects) can affect the freshwater resources of the country. The Mt.Pinatubo eruption in 1991 obliterated the surrounding river channels and floodplains of centralLuzon. Floods damaged property and crops and caused increased turbidity, highconcentrations of suspended solids and silt in the streams and rivers. Deocadiz (1997) alsonoted that surface and groundwater in the Philippines contain natural background levels ofheavy metals or elements in trace levels (for example, arsenic).


4.2.5 Maritime transport environment

In the marine transport environment the following issues: unregulated dumping ofdomestic sewage and solid waste in the coastal waters, THWs pollution (for example, deepsea dumps of radioactive wastes), and oil spill accidents from refineries or floating barges areimportant. In many cases, transnational ships dump waste 500 to 600 kilometres offshorebefore entering the country. In addition, there have been attempts to illegally dump waste,such as alkaline, petrochemical tank residues, mine tailings, dredge material from coastalreclamation zones and THWs, in Philippine territorial waters (IMO 1995). From 1986 to 1992,the Philippine Coast Guard issued ocean-dumping permits for caustic soda (IMO 1995). ThePhilippines is said to be a signatory of the MARPOL 73/78 but to date it has not been ratified.

4.3 ROOT CAUSES OF OVER-EXPLOITATION OF AQUATIC RESOURCES

4.3.1 Unclear access arrangements (for example, overlapping roles of stakeholders)

Resource depletion in coastal areas (i.e., mostly traditional fishing grounds) is oftenthe product of the "open access" nature of the fishing industry. Despite legal restrictions onthe access of commercial fishers into municipal water (for example, less than 7 kilometresfrom shore) competition exists for common fisheries and their fishing grounds. Commercialfishing boats usually encroach into the 7-15 km zones of the more productive municipalwaters.

In the Philippines most of the fishing grounds experience a certain degree of resource-use conflict in terms of the area of operation and the target species. The difference lies in theavailability of resources of the stakeholders. Most of the time, artisanal fishers have limitedresources (i.e., not enough capital) to afford them effective and high-tech fishing gear forthem to venture into areas fished by commercial fishers.

Moreover, the overlapping roles of stakeholders result from the influence of the vestedinterests of politicians and the elite on resource use arrangements.

Increasing offshore developments (for example, oil drilling exploration) and othernearshore coastal development have constricted access to coastal fishers and user groups.Restriction on fishing activities occurs when companies operate wharves (oil companies) orconduct oil drilling exploration activities. The exclusion zone puts some limitation to the fishinggrounds especially if it is within the 15-km municipal waters. Although the municipality directlybenefits from these activities (for example, tax), small-scale fishers suffer from a limited areafor fishing. Provisions can be given to these fishers by most of the operators or companies ofthese explorations (for example, employing some of the members of the municipalitiesdirectly affected and allowing fishers to fish in areas where fully lighted boundaries arelocated).

4.3.2 Overpopulation, allocation and insufficient preferential access rights (forexample, integrated fisheries management)

A high exploitation rate of the fisheries resources is currently being experienced bythese fishing grounds (i.e., both the hard and soft bottom areas of fishing grounds). Thetwelve priority bays included in the Fisheries Sector programme of the Department ofAgriculture were the following: Carigara Bay, Panguil Bay, Calauag Bay, San Miguel Bay,


Manila Bay, Ormoc Bay, Tayabas Bay, Ragay Gulf, Sorsogon Bay, Lagonoy Gulf, San PedroBay and Sogod Bay.

The use of destructive fishing methods such as blast fishing and cyanide fishingfurther exacerbates the heavy exploitation status of most of the traditional fishing grounds.The Government still has to explore incentives for the exploitation of lightly exploited areas (forexample, Palawan waters, the Babuyan and Batanes group).

Overlap between coastal communities in access to the resources are alsoexperienced by most of these traditional fishing grounds. There are cases in which onecoastal municipality benefits more from the local resources of another coastal community.The increasing number of fishing vessels (including commercial fisheries) and theunregulated fishing activities by various groups complicate the situation.

The increasing problem of poverty in the country greatly affects low-income fisherfamilies. Owing to limited access to other sources of income, there is a tendency topopulation growth and migration to the coast. One action that should be taken in this issue isto harmonize economic and social incentives to establish comprehensive coastal communitydevelopment (for example, livelihood opportunities and a proper mix for rural and urbanareas).

4.3.3 Absence of coastal zoning programmes

Upland and coastal activities that include conversion into fishponds, industrialestablishments (including mining activities) and human settlements, including changes in thedevelopment thrusts of urban and rural settings, greatly affect the existing landscape of thearea. The absence of coastal zoning mechanisms led to the degradation of coastal habitatsand the denudation of the coastal ecosystem, eventually decreasing the effective fishing area.

One issue is the loss of coastal productivity and safe habitats for juveniles because ofthe destruction of mangrove swamps. An increase in nearshore activities such as theconversion of domestic ports into international ports (for example, Batangas) can result in theloss of marine biodiversity. Pollution from oil spill/discharges including unregulated wastedisposal from land and water based sources could also affect the coastal areas. Theabsence of a harmonious land and sea use classification and guidelines lead to increasedconflicts, thus hastening resource degradation and depletion.

4.3.4 Poor policies and weak law enforcement

Annex V presents some of the existing environmental legislation regarding fisheries.However, because of the poor living conditions of many of the fishing people, they tend todepend on illegal means of fishing. The Bantay Dagat and coastguards of each area shouldgive particular attention to the increasing problem of illegal fishing. Equivalent sanctionsshould be properly enforced when the law is violated. The existing fishery decrees and lawsare not properly enforced and there are times when these are neglected. Law enforcers areoften implicated in illegal activities themselves. Supplemental strategies for enforcing lawsand regulations should also be initiated.

Encroachment of commercial fishing boats in the 7-15 km zone of the municipalwaters is prevalent in many parts of the country. Most of the operators of these commercialvessels belong to the elite. Instead of increasing competition (i.e., in terms of space andresource) between the small-scale and commercial fishers in traditional fishing grounds, the


Government should encourage joint venture arrangements in international waters. To date,many offshore areas and the exclusive economic zones are under-utilized.

4.3.5 Others

The over-exploitation of the marine resources in the country is also caused by theinadequate policy to implement realistic coastal resource economic values and rent systems.There are studies on the existing economic valuation of coastal resources in the country (forexample, Evangelista 1992). Ignoring the economic loss of resources results in anunderestimation of its implications for the country's GDP.

Integrated coastal management programmes of DENR mainly focus on the planning

aspects of the coastal resources dealing with the management, technical skills andinformation needed for sustainable development. However, the issue of the over-exploitationof fisheries resources is not linked in the planning perspective of this programme.Implementation of coastal zoning should be integrated with fisheries management.

4.4 ROOT CAUSES OF THE DEGRADATION OF HABITATS AND THEIR MODIFICATION

The coastal habitat change or loss is influenced by human intervention and naturalphenomena that affect the sustainable development of marine resources. Habitat degradationand modification caused by human impacts can be a result of both direct and indirect causes.The major causes include:

(a) Illegal and destructive upland activities that cause siltation and sedimentation, such as deforestation;

(b) Devalued resource rents;(c) Absence or inappropriate zoning classification and negligence of acquisition

of proper permits from regional growth centres and national integrated protected areas;

(d) Inappropriate tenurial arrangements (human settlement, industrial zones and coastal conversion, for example, mangroves into fishponds);


(e) Unclear jurisdictional responsibilities (administration, ancestral domain, autonomous region and exploration);

(f) Inadequate procedural mechanisms ( for example, EIAs);(g) Coastal pollution (for example, indiscriminate dumping of uncollected and

untreated waste);(h) Illegal means of fishing;(i) Law enforcers are often implicated in illegal activities themselves.

Natural effects include typhoons and volcanic eruptions. The Philippines is visitedannually by at least 12 tropical cyclones accompanied by floods. Aside from environmentaland property damage, there are human deaths and injuries. The 1991 Mt. Pinatubo eruptioncaused physical and economic dislocation to about a million residents and heavy siltation inriver channels and coastal waters.

For mangrove forests, there are proposed alternative management strategies that willsuspend large-scale exploitation while conducting research studies with time allocated forrecovery and preservation, conservation and some fish pond development. Public educationon adaptive management schemes is needed to cope with the interaction of natural andhuman induced effects. In addition, coastal development plans should be harmonized atvarious levels (local, regional and national levels).

4.5 NON-MARKET OPERATIONAL ALLOCATIONS AND MARKETING BASED INTERVENTION

Pollution problems in the environmentally critical areas such as coastal areas areemphasized in the environmental impact statement (EIS) system. However, the individualEIAs of each development activity in an area is not sufficient or adequate to accommodate theenvironmental problems of the water-related issues of the ecosystem. Proper allocationquotas for pollution loads (i.e., taxation and financial interventions or debts swaps) should beimplemented, including both the industry and the household based estimated cumulativeeffects of the system’s carrying capacity. The programmatic EIA by the DENR incorporatesall aspects of environmental problems resulting from different causative factors or activitiesaround the area. Quotas derived from carrying capacity estimates can include non-marketpreferential allocations to provide some safety nets to marginalized sectors. Co-management by the private and public sector is the primary builder of sustainable communitydevelopment. With the carrying capacity principle, public responsibility in resource use andmanagement can be appropriately accounted for while some private sector allocations canalso be facilitated by market based interventions (for example, individual transferable quotasand pollution loads).

5.0 ONGOING AND PLANNED ACTIVITIES RELEVANT TO THE IDENTIFIEDWATER-RELATED PRINCIPAL ENVIRONMENT ISSUES

The Philippines has formulated national programmes to prevent, minimize and controlthe consequences/ impacts of the water-related issues especially in the transboundarylocation of a body of water. The existing legal and administrative laws tackle issues on thesovereignty, allocation, regulation and protection of the natural and human resources in thePhilippines. Different approaches (national programmes and projects) have been formulatedand implemented to preserve and conserve freshwater and coastal ecosystems.

The major national legislation that incorporates environmental law and policies are thePhilippine Constitution and Presidential Decree (PD) 1151, known as the Philippine


Environmental Policy. A summary of the ongoing and planned activities relevant to theidentified water-related principal environmental issues can be seen in annexes IV and V.

5.1 ONGOING AND PLANNED ACTIVITIES FOR POLLUTION ABATEMENT

Deocadiz (1997) enumerated the major laws, rules, regulations and standards forpollution control and residuals management:

1. Republic Act 6969. The Toxic Substances and Hazardous Wastes Control Actof 1990. The act prohibits the entry, even in transit, of hazardous wastes and their disposalwithin Philippine territorial limits. It provides for the proper management of hazardous wastesby specifying the responsibilities of wastes generators, wastes transporters and wastestreaters and mandates registration of all waste generators in a prescribed form. It establishesa manifest system to be maintained, which includes waste transport records, specificationsof waste storage and labelling, and the issue of permits for new waste treatment and disposalfacilities.

2. Marine Pollution Decree of 1976. National Operations Centre for Oil Pollution(NOCOP) under the Philippine Coast Guard for combating marine pollution including oil spills.

3. Toxic Substance and Hazardous and Nuclear Wastes Control Act of 1990.This act controls all activities regarding chemical substances and mixtures includinghazardous and nuclear wastes that present unreasonable risks and/or injury to health or theenvironment.

4. Presidential Decree 1586. Environmental Impact Statement System (1978)DAO 96-37, revised EIA system. This introduces a system for environmental impactassessment.

5. DENR Administrative Order 34. Revised Water Usage and Classification/Water Quality Criteria. This incorporates the different classifications of freshwater andcoastal/marine waters in terms of usage and criteria values for conventional parameters andtoxic/deleterious parameters.

6. DENR Administrative Order 35. Revised Effluent Regulations of 1990. This define theeffluent quality of discharge into different classifications of receiving bodies.

7. DENR Administrative Order 29. This provides for the implementing Rules andRegulations of RA 6969.

Following are the programmes and projects related to the pollution issue. Theycontributed to the system of pollution management assessment of priority industrieshighlighting the promotion of waste minimization measures (Deocadiz 1997):

1. Industrial Efficiency and Pollution Control programme funded by the WorldBank/ Japan Bank;

2. Metropolitan Environmental Improvement programme funded by the WorldBank;

3. Industrial Environment Management programme funded by USAID.


The industrial efficiency and pollution control programme was designed to prevent andreduce pollution at source by utilizing manufacturing process improvements that increase theprofits of the participating companies, reclaim industrial wastes and encourage cost effectivepollution abatement technologies (Jacinto and Gervacio 1997). The four components of theproject were as follows: (a) pollution reduction, (b) policy studies and public/private dialogues,and (c) a capacity-building component.

Several other projects emanated from the framework of the Sewerage and SanitationMaster Plan (Year 2000 Plan) under the auspices of the Metropolitan Waterworks andSewerage System (Deocadiz 1997):

1. Sewerage Development programme - aims to rehabilitate the centralsewerage system in Metro Manila and expand the collection system, construct monitoringfacilities for wastewater disposal, and monitor programmes and complementary activities;

2. Sanitation programme - aims to improve the health situation in denselypopulated, low income areas.

To account for the litter and solid waste problem in the country, the ntegrated nationalsolid waste management framework was established under the leadership of the PresidentialTask Force on Solid Waste Management in collaboration with the Environmental ManagementBureau of DENR and the Metropolitan Manila Development Authority.

Other support projects were undertaken to alleviate the increasing problem ofpollution, such as the nationwide clean-up activities during Earth Day on 22 April, theEnvironment Month in June, the National Clean-up Month in September and tree plantingactivities. Environmental quality monitoring activities are conducted in Manila Bay, Pasig Riverand selected river systems in various parts of the country (Deocadiz 1997).

Several other research activities are currently being undertaken to monitor and assessthe behaviour and transport of land-based pollution (Deocadiz 1997). Database systems arebeing made at different levels of development and technology in various agencies,programmes and projects.

5.2 ONGOING AND PLANNED ACTIVITIES TO MITIGATE WATER SHORTAGES

The Philippine Environment Code (1977) prescribes management guidelines toprotect and improve the quality of the environment particularly the water resources. Theprotection of the surface water systems takes the form of water quality classification basedon DENR Administrative Order 34 in 1990. At present the National Water Regulatory Boardidentified 421 principal river systems, of these only 168 (40 per cent) are officially classified(Deocadiz 1997). According to Deocadiz, classification of water bodies is an importantcomponent of water quality management especially in the application of effluent standardsand ambient water quality criteria.

Watershed management is one of the areas prioritized in terms of the rehabilitationactivities of the Government. It basically aims to increase forest cover and reduce sedimentand pollution loads downstream (Deocadiz 1997). Other areas were the appropriatemanagement of agriculture to reduce siltation and toxic chemicals-laden runoff in the riversystems (for example, Pasig River, Boac River).

The JICA (1997) study provides a comprehensive review of the status of groundwaterand surface waters, including an indicative water resources master plan. Last March 1997,


JICA completed the master plan study on the small water impounding management (SWIM)which was developed for the following purposes:

(a) Irrigation;(b) Watershed management;(c) Inland fishery;(d) Flood control;(e) Mini-hydro power generation;(f) Domestic water supply.

Out of 501 SWIM projects, 230 projects were selected for earlier implementationbased on guidelines and development scales set by the Department of Public Works andHighways, National Irrigation Authority, National Electrification Administration and the Bureauof Soils and Water Management. Candidate SWIM projects by geographic water resourcesregion are shown in the following table.

Table 5.1 Number of qualified SWIM projects by region and agency

Region No. No. ofcandidateprojects

No. of qualified SWIM projects(classification by agency)

DPWH NIA BSWM

I 63 41 6 24II 62 35 4 31III 63 27 1 17IV 38 11 5 4V 55 20 1 5VI 15 9 1 8VII 82 35 0 9VIII 44 14 1 8IX 14 8 0 7X 25 10 0 10XI 15 10 1 9XII 25 11 3 8Total 501 230 23 140

Note: DPWH = Department of Public Works and HighwaysNIA = National Irrigation AuthorityBSWM = Bureau of Soils and Water Management

5.3 ONGOING AND PLANNED ACTIVITIES TO REGULATE OVER-EXPLOITATION OF AQUATIC RESOURCES

The Fisheries Decree of 1975 (PD 704) covers all existing laws regarding fisheryactivities and the development of the fishery industry under Philippine jurisdiction. Aside fromthis, there are many initiatives regarding the management of Philippine coastal areas andresources. One of the major completed government programmes under the Department of


Agriculture is the fisheries sector programme. This is a five-year project (1990-1995)addressing the declining productivity in the marine fisheries and the deteriorating coastalenvironment. Twelve priority bays in the country were included in the programme, whichinvolved an institutional network of government agencies, non-government organizations andacademic institutions.

Jacinto and Gervacio (1997) explicitly enumerated the following objectives of thefisheries sector programme (figure 5.1):

1. To regenerate coastal resources, rehabilitate the coastal environment and alleviatepoverty among municipal fishermen particularly through diversification of theirsources of income;

2. To intensify aquaculture production, particularly for the benefit of domesticconsumption but within the limits of ecological balance;

3. To induce commercial fishing away from overfished nearshore areas into offshorewaters.


Figure 5.1 Fisheries sector programme (FSP) and coastal environmental programme(CEP) sites


The following were the six components of the programme:


I. Resource and ecological assessment which involves the appraisal of fisheriesresources and ecosystems in priority areas, the establishment of a national fisheriesinformation system to monitor fish stocks, habitats, ecological parameters and socio-economic indicators;

II. Coastal resources management which involves the encouragement of community-based initiatives in resource management and resource enhancement measures, andthe development of viable alternative livelihood projects to draw fishermen into othereconomic activities, thus relieving the pressure in overfished coastal waters;

III. Research and extension which includes the preparation of a comprehensive nationalfisheries research programme, including the networking and upgrading of existingresearch facilities, provision of scholarships and training to meet long-term researchand extension staffing needs; the conduct of priority studies and expansion of fisheriesextension services.

IV. Law enforcement which involves the training and logistical support to community-based task forces such as the local police, government personnel and the localfishermen;

V. Credit which includes the support of income diversification programmes for small-scale fishermen, intensification of aquaculture production and identification ofalternative financing schemes;

VI. Infrastructure and marketing support which involves the establishment of post-harvestfacilities such as fish landings, cold storage and processing centres; and research todevelop and promote technologies that will reduce spoilage and upgrade the quality offishery products.

The fisheries resources management project is one of the proposed projects tocontinue under the second phase of the fisheries sector programme which aims to 'reversethe trend in fisheries resource depletion with its long-term goals to obtain sustainabledevelopment in the sector and to reduce poverty among municipal fisherfolks' (Jacinto andGervacio 1997).

An example of a national ongoing project is the coastal environment programme (figure 5.1, annex V). This aims to promote community-based sustainable use of resources incoastal areas by encouraging the use of environment friendly technologies, providing livelihood opportunities to coastal communities, promoting equitable access to resourcesand building DENR capacities in the management of coastal areas (Jacinto and Gervacio1997).

The programme started in 1993 with 61 sites proposed all over the country involvingabout 168 organizations from the government and non-government sectors. According toJacinto and Gervacio (1997) the strategies are community organizing (i.e., involvement ofcommunities in the protection and management of coastal ecosystems), mobilization offinancial and administrative resources from public and private sectors and the use ofcontingent approaches in identifying issues, problems and opportunities for human andenvironmental details.

The coastal resources management project primarily aimed to achieve sustainablemanagement of the fisheries resources in coastal waters in selected areas in the Philippines(in Palawan, Visayas and Mindoro) in order to offset the current trends in resourcedegradation (Jacinto and Gervacio 1997). It involves stakeholders, local authorities and therelevant social and economic sectors in planning, implementing and decision-making.


The five components of the community-based coastal resources management project areas follows:

(a) Community management of coastal resources for widespread implementation;(b) Local government capacity-building;(c) National agency policy implementation;(d) Information, education and communication;(e) Special activities to enhance local and national capacity to support implementation.

Integrated coastal management takes on a planning perspective that gives a broadercoverage of the coastal resources management project (for example, the framework plan forLingayen Gulf and the strategic environmental management plan for the Batangas Bayregion). For example, the strategic environmental management plan covers the following keycomponents (Deocadiz 1997):

(a) Legal and institutional mechanisms;(b) Integrated policy and planning systems;(c) Integrated management systems and technical interventions;(d) Management and technical skills improvement;(e) Information base improvement;(f) Sustainable financing development.

5.4 ONGOING AND PLANNED ACTIVITIES FOR APPROPRIATE LAND AND COASTAL ZONING

The coastal zone environmental and resource management project is under theauspices of the ASEAN-Australia Economic Cooperation programme (Phase III). The projectfocuses on 'institutional strengthening through development and maintenance of a nationaldirectory of coastal and marine data; and utilization of information technology tools to resolvenational priority issues in coastal zone resources management through a case study'.Lingayen Gulf in north-western Luzon was chosen as the case study for the Philippines.

Some of the government-planned programmes regarding this issue are the following:

1. Municipal coastal environmental initiatives emanating from the industrial environmentmanagement programme and the coastal resources management project aiming tocombine industrial pollution reduction and coastal zone management;

2. Development of a marine environmental master plan for the Philippines;3. Mapping and land cover assessment of mangrove areas using small format aerial

photogrammetry;4. Strengthening of marine environmental monitoring assessment and conservation

programme;5. Geosciences for coastal and environmental studies;6. Integrated coastal zone management project of DENR;7. Integrated coastal zone management of industrially threatened biodiversity-rich bays

and river tributaries of DENR in collaboration with Silliman University, the ICLARM,concerned local government units, industries in the area and local non-governmentalorganizations.

6.0 CONSTRAINTS TO ACTION

In the section 4 on root causes, mention was made regarding cross-sectoral and interactiverelationships of water-related issues. This interrelationship often refers to the causes, which


are systemic in nature or linked in the pathway of the problem. Inherent in all the issues arethe following constraints in:

(a) The understanding and scientific uncertainties of experts and the public;(b) Financial and economic capacity of the stakeholders in actualizing the solutions;(c) The policy environment, legal instruments, institutional arrangements and

administrative and managerial capacity.

6.1 POLLUTION ABATEMENT AND WASTE MANAGEMENT

6.1.1 Information, scientific uncertainties and public awareness

As can be derived from the evaluation of the issues, causes and possible solutions,there are many information needs especially in areas outside Metro Manila and Cebu City.Only limited endowments in terms of technical and financial capacity for research andtechnical expertise are present in the north-western region except for areas such as theLingayen Gulf where a growing collaborative effort is being undertaken by the institutionsaround the Gulf.

Information in the western areas in Palawan is only starting to be generated, especiallyin the Mindoro area. Around the area in Batangas, the initiatives by UNDP-IMO have providedthe initial environmental and socio-economic profile of the area. This state of patchy andinsufficient information on the levels of pollution and measures for waste management isprevalent in the areas mentioned earlier.

A wide range of uncertainties exists in the understanding of pollution effects, especiallyin terms of evaluating the cumulative and interactive effects. In addition, the relation of waterquality standards and criteria to the health and well-being of biological organisms andecosystems is not yet well understood. This is complicated by the inadequate monitoring andinfrastructure which exists in these areas, both in terms of the point and non-point sources ofpollutants. In many areas conflicting uses of the water environment are occurring which leadsto inadequate regulatory mechanisms to deal with pollution. This often arises because of theabsence of land and water use zoning classification.

A mistaken tautology exists which says that for every development there will alwaysbe wastes and pollutants. This perspective may also be related to the lack of publicawareness of options in waste management and recycling approaches and techniques.Some areas in the EIA process are unclear and compliance and environmental monitoringare inadequate in providing appropriate solutions. Only a few success stories are available inpollution abatement and waste management.


6.1.2 Financial and economic

Inadequate allocation of financial resources for pollution abatement and wastemanagement is prevalent to such an extent that the prevention of pollution is considered aluxury. Insufficient revenues in most of the municipalities constrain the setting up of sewagedisposal and treatment facilities for the community. Environmental taxation schemes are notin place or are insufficient to make environmental management effective. In addition, marketbased interventions have not been established. The Environmental Guarantee Funds (EGF)are not yet fully operational and in many areas non-existent.

6.1.3 Legal, institutional and managerial

At present the mechanisms for taking into consideration the carrying capacity ofecosystems into a legal and institutional framework are not fully in place. Some initialguidelines in the establishment of a programmatic EIA have been hampered by theinadequate capacity of personnel to undertake ecoprofiles of whole bay ecosystems or islandwide ecosystems. The criteria and management rules for allocating quotas to stakeholdersare hindered by the lack of financial and economic valuation and pricing mechanisms fortranslating these measures into fees, permits and taxation. In addition, these socio-economicinstruments are based on carrying capacity assumptions which have not been fully validatedas practical applications in tropical resource management systems.

This framework also assumes that administrative and technical coordination withcompetent Department of Agriculture and DENR personnel are available, together withstrengthened regulatory powers. Most often since both personnel and technical capacity maybe limited, these constraints have to be overcome by capacity-building efforts at many levelsof the institutional framework (see capacity-building aspects in section 7).

The success of the programmatic EIA also requires that a high level of participationtakes place among stakeholders. Ideally, the set-up needs sufficient understanding andinformation to be available in order to have a good basis to make informed decisions on adiverse array of choices. In multiple use areas where some protected areas are situated, thelocal resource management councils or committees should have enhanced capacity toincorporate and manage the ecosystem concerns of the area.

6.2 WATER SHORTAGE AND DEGRADATION OF WATER QUALITY


With increased usage of water resources more detailed information of water sourcesare needed. At present, there is insufficient information of water bores and the extent ofreservoirs in watersheds. This is needed in order to evaluate the viability of water supply anddegree of contamination of the water sources. In the face of these uncertainties it is oftenbetter to be on the conservative side and remember to apply the precautionary principle inwater use. This also requires that mechanisms need to be established to enhance publicawareness of water conservation measures and the ongoing status and dynamics of theseresources (for example, the work being done in relation to the El Ni situation).



Water resources management requires adequate public awareness and political willto implement decisively the needed measures with the participation of the community. Sincewater resources are a basic human and social need it should be an integral quality-of-lifeindicator. This means that this has to be linked to how public and private investments areplaced into these goods and services and how the costs and benefits are allocated to thevarious stakeholders.


Water policy in the granting of water rights and the privatization schemes are not fullyimplemented and may have to expand their criteria in terms of sustainability and equityprinciples. In effect the pricing for water services is not yet clearly established.

It also presupposes that institutional arrangements in monitoring and evaluation are inplace. At the moment they are still highly inadequate.

6.3 OVER-EXPLOITATION OF FRESHWATER AND MARINE RESOURCES


In order to have sufficient capacity to implement regulatory and enhancementmeasures, knowledge of the maximum economic and sustainable yields and carryingcapacities of the ecosystem are needed. To date, in many areas there are insufficient datainputs, which creates uncertainties in estimating the carrying capacities and sustainableyields in relation to the South China Sea. It is probably only in Manila Bay where sufficientinformation can approximate some estimation of maximum sustainable yield and carryingcapacity. Batangas Bay and Lingayen Gulf may also have approached some level ofunderstanding regarding the level of resources exploitation. In the Palawan area, most of theinformation and understanding of resource exploitation is quite limited.


Some of the recommendations to diffuse and overcome the over-exploitation ofresources suggest alternative and diversified areas of exploitation so as not to deplete theresources.

One of the alternatives is to encourage offshore exploitation and joint ventures withforeign investors. These options have not yet been well implemented as there have beenmany constraints in stimulating offshore exploitation and joint ventures. Insufficient financialresources and the prevailing economic deflation are not conducive for its implementation. Notenough financial resources are available to improve infrastructure, such as post-harvest andprocessing facilities. If these are established, greater effort should be taken to provide socialservices to the marginal fishing communities and the poor. This is constrained because of thelarge gap between the rich and poor which exists in the country. This affects resourceallocation and access arrangements that result from resource management interventions.



Initially, the proposed fisheries code was lobbied in order to empower the marginalfishing communities and the supporting government institutions such as the Bureau ofFisheries and Aquatic Resources. The current bill has been watered down to provideloopholes on the provisions which profess to restrict the access of commercial fisheries inmunicipal waters. Concern from many scientific personalities suggests that the proposedrevisions of the fisheries code are inadequate and may cater to greater resources use conflictbetween commercial and municipal fishermen.

Institutional arrangements of provincial organizations and local government unitsneeds to be better defined in order to emancipate access and tenurial relations among thevarious stakeholders in the community. Critical to the improvement of regulatory mechanismsto prevent over-exploitation is the archaic licensing and permit procedures in the variousagencies. These functions for government need to be expanded and, where appropriate,shared by the private sector.

6.4 HABITAT MODIFICATION


Since underwater habitats and resources are difficult to evaluate and ecosystemresponses to human alterations unclear, the scientific uncertainties are often large.Nevertheless, since these systems are dynamic and some habitat modification requiresurgent action then management interventions may not be as ideal and efficient in respondingto the needs of the situation. It is also important that the public is aware of these constraintsso that undue expectations are minimized. Public awareness and education in the Philippinesetting is a balancing act between not being sensational and not being boring so that themessage for improved effective action is not lost in all the statistics.


Since ecosystem understanding and management are often complex and need to beundertaken on a sufficiently large and appropriate scale, there are often financial and technicalincapacities in the development and implementation of ecosystem management strategies.Increasingly, access to ecosystem services is not equitable.

Continued economic losses from habitat modification require greater expendituresthan original ecosystem values. Restoration and enhancement efforts may not necessarilybenefit the present generation and thus incentives to motivate action require innovativeapproaches.


Ecosystem and habitat management systems require that the concept be integratedin policy formulation. Presently, ecosystem level management is not yet clear in theconsciousness of policy makers.

In addition, institutional arrangements and proper valuation of resource rents need tobe incorporated in monitoring and control systems and operations. These conditions are notas easily forthcoming in the short term but can be undertaken possibly within the next fiveyears.


7.0 SPECIFIC ACTION PROPOSED FROM IDENTIFIED ISSUES AND PROBLEMS

Various general principles for the sustainable development of the Philippineenvironment are embodied in the Philippine Constitution and the Philippine Strategy forSustainable Development (see annex VI-VII). A recent draft for a comprehensive marineaffairs policy also reinforces the country's commitment to address land and sea interaction(DENR 1997). A cabinet committee on marine environment policy also reaffirms somestrategic actions proposed by Deocadis (1997) to address land-based pollution affecting themarine environment.

In order to plan and implement the following programmes proposed below, a nationalcoordinating advisory council could serve as a programme management body under thecabinet committee for marine environment policy. This would facilitate the integration oflessons learned and enhance quick decisions for action. In addition, a databasemanagement system needs to be established within an information network system, which isinteractive among the components of the programme through, for example, the NationalEnvironment Resources Information Centre (NERIC). It could incorporate a computer-baseddecision analyses support system similar to those of the SIMCOAST programme (see alsoLuna 1993 and the CZERM 1995). Critical to making informed decisions would be theinformation derived from resource valuation analyses such as cost-benefit approaches andother politico-economic considerations in various site-specific scenarios. Enforcement andpolitical will are inherent elements in the effective implementation of the programmes whichhas to be taken in the context of public education and participation and the inputs derived fromthe monitoring, evaluation and control systems for each programme.

The proposed actions outlined below, as component programmes to address thegeneral water-related issues, are broad guidelines which have generic and interrelatedstrategic and tactical action agenda. Each subcomponent requires further refinements withindicative financial planning and prioritization to phase the schedules and put into contextrealistic timeframes to actualize the programme milestones.

7.1 POLLUTION (POLLUTION ABATEMENT AND WASTE MANAGEMENT PROGRAMME)

Goal: Sustain industrial and agricultural development in the context of environmentalsensitivity and minimization of environmental costs.

Objectives:(a) To proactively mitigate for pollution effects by the various industries(b) To minimize waste disposal from the various industrial sectors

7.1.1 The legal and institutional framework

The legal and institutional framework needed to mitigate pollution in water-relatedissues should:

(a) Establish legal and institutional mechanisms for environmental monitoring andcompliance systems which involve public and private sector participation (i.e., such asthe implementation of programmatic EIAs);

(b) Facilitate market and non-market based interventions utilizing user pay principles;


(c) Utilize precautionary principles in which the onus of proof of compliance toenvironmental criteria and standards rests on the potential locator or source ofpollutants.

7.1.2 Policy initiatives and indicative guidelines

Various initiatives and indicative guidelines need to be reaffirmed and consolidated toactualize national policies on water-related issues:

(a) Initiate classification and standardization of programmatic quotas on wastedischarges to include cumulative, interactive and ecosystem effects of pollutants;

(b) Implement guidelines for toxic and hazardous waste disposal;(c) Clarify how the allocation of market and non-market based revenues from user fees

can be allocated for the optimum benefit of the most disadvantaged sectors;(d) Institutionalize policy review and evaluation to respond to adaptive management

strategies.

A multisectoral policy advisory committee on pollution needs to be established. Thiscommittee to be chaired by the Environment Management Bureau, can facilitate the fleshingout of general and specific concerns for policy consideration. 7.1.3 Public education and participation (especially in pollution control andabatement and waste minimization)

In order to enhance the capacity of the public to participate in actions towards pollutionabatement and prevention, a public education programme is needed. Such a programmefacilitates consultations, consensus and ownership of outcomes derived from public actionagainst pollution and moves towards appropriate waste disposal. The programme canprimarily target the following sectors, their possible roles and targets:

(a) Strengthen the role of consumers in preventing pollution and in minimizing waste;(b) Enhance the role of family households in reducing pollution through the establishment

and subscription of appropriate sewerage and garbage disposal systems;(c) Improve the multisectoral participation of the public and private sectors in monitoring

and evaluating pollution abatement programmes.

7.1.4 Monitoring, evaluation and control system

Monitoring and evaluation mechanisms are cost-effective measures which facilitatefeedback and control in tackling problems such as pollution. One of the most commonstrategies to prevent industries and other potential polluting firms from exceeding pollutionstandards and classification criteria is to establish a multisectoral monitoring group in theirlocality. This programme may address the mechanisms which enhances the monitoring andevaluation capacities in these localities and the strategic roles they can play in the planningand regulatory processes to prevent pollution and effect appropriate waste disposal.

These mechanisms require the coordinated action of multisectoral groups with clearlydefined roles and responsibilities in the monitoring, evaluation and control system (MECS). The following priority strategies are needed:

(a) An enhanced technical capacity for MECS to be implemented by establishing and/orimproving strategic pollution MEC centres;


(b) Improved interaction between the academic and government sectors to providetechnical assistance and training to various multisectoral MECS groups;

(c) An increased representation of civil society in the MECS groups and an increased rolein consumer education, public awareness and private sector monitoring.

7.1.5 Capacity-building

There is a limited capacity to plan and implement solutions in water-related issues inpollution prevention and appropriate waste disposal. In around at least 20 priority hotspots inthe country the inadequacy of human resources and technical facilities is prevalent. Aconsiderable allocation of the Environmental Guarantee Fund in the municipalities can bebudgeted for capacity-building requirements in these areas. Infrastructure investments(waste treatment and monitoring facilities) and technical support in training and other humanresources development needs can be stimulated by appropriate sourcing of financialassistance. The following capacity-building strategy needs may be considered:

(a) Enhance the technical capabilities of human resources and the infrastructure base inat least 20 priority hotspots in the country;

(b) Allocate funds for capacity-building in the Environmental Guarantee Funds of eachmunicipality;

(c) Sustain financial capacity through innovative financing schemes.

Capacity-building can be further facilitated by projecting the human resourcesdevelopment needs for each region. At least six PhD and twelve MSc scholarships forpollution monitoring, evaluation and control systems and related fields may be needed toenhance the success of a national integrated programme to control pollution andmanagement disposal systems. Aside from enhancing the high level of managementexpertise in the country, assistance should be provided in the social preparation and capacity-building of various communities into local organizations.

7.2 FRESHWATER SHORTAGE AND DEGRADATION OF WATER QUALITY(SURFACE WATER ENHANCEMENT AND GROUNDWATER REHABILITATION ANDMANAGEMENT PROGRAMME)

Goal: Enhance the surface and groundwater capacity and maintain water quality for sustained use and development in the near and long term

Objectives:(a) Improve water resources use and management(b) Rehabilitate insufficient water supply and degraded water quality conditions



Adequate and good quality water resources are basic requirements for society. Thefollowing integrated legal and institutional arrangements have been suggested:

(a) Strengthen legal and institutional support for integrated watershed managementsystems;

(b) Enhance the legal framework of the management of the surface and groundwaterresources especially the private and public interaction in the management process;

(c) Assist the strengthening of institutional arrangements that prioritize water conservationand management of the regeneration of degraded water reservoirs;

(d) Improve the legal and institutional powers of the water resources development boardsat the local, regional and national levels.

The National Water Resources Development Board can take the lead in theformulation of a comprehensive and responsive programme with the participation of thestakeholders in the community.


In a move towards a highly deregulated water resources management system anintegrated and strategic watershed and water resources management policy is needed. Thispolicy framework provides the principles for a sustained development of strategic watershedsand increased quality services and goods for a rational freshwater and groundwater usage.Coordination and sufficient implementing powers to provide the teeth to enhance coordinationis crucial to consolidate the deregulated environment into an effective sustainabledevelopment agenda.

(a) Improve the implementation of the water code through the clarification of roles andresponsibilities;

(b) Integrate actions needed in the coordination of general and specific needs of waterresources management;

(c) Establish mechanisms for the prevention of contamination of critical ground andsurface waters and the maintenance of improved water quality standards and criteria;

(d) Improve arbitration and conflict resolution procedures.

As mentioned earlier, the realization of the interrelated concerns of the issues areespecially relevant for water shortages and reduced water quality. Thus it may be importantfor the NWRB to consider the best and appropriate cabinet department for implementation(for example, to be transferred to DENR).

7.2.3 Public education and participation

Public education and participation in water resources conservation and managementshould focus on the following priority concerns:

(a) How individuals and households can contribute to water conservation measures;(b) How non-governmental organizations and provincial organizations can assist local

government units in community-based interventions in integrated watershedmanagement;

(c) How alternative and complementary measures of the different stakeholders canintegrate the sustained development of water resources.


Since water resources and their associated services are one of the basic needs ofhuman society, programmes on public education and participation of the private and publicwater utilities bodies may provide mechanisms whereby the priority concerns outlined abovecan be pursued.

7.2.4 Monitoring, control and evaluation

Water conservation and management efforts require proper monitoring, evaluationand control systems. A biannual review of the implementation of the proposed programmes inthe master plan study on water resources management in the Philippines is needed (JICA1997). Efforts can focus on some of the priority areas:

(a) Public and private waterworks use and rates monitoring;(b) Monitoring of the effectiveness of market and non-market interventions (pricing and

market forces);(c) MECs on the effectiveness of watershed management on the charge and recharge

capacities of groundwater sources.

Consumers and consumer groups can be primary targets to provide the motive forceto participate in the MECs to complement government and corporate management initiatives.


Capacity-building efforts in developing human resources and institutional capacitywould need to emphasize the following concerns:

(a) Enhance the understanding and capacity of water resources users in implementingwater resources conservation and management;

(b) Improve institutional capacity in integrating watershed management to water uses;(c) Establish capacity to sustain the development of water resources without unduly

reducing water supply and maintain their appropriate use values.(d) Establish capacity in the infrastructure base to cope with water shortage problems

and provide adaptive mechanisms to detect and sustain water supply and quality;(e) Sustain financial capacity for integrating watershed management and providing an

adequate water supply.

The capacity-building initiatives can focus in areas where there are considerableproblems of water shortage and degradation of water quality (for example, in Metro Cebu andMetro Manila). 7.3 OVER-EXPLOITATION OF LIVING AQUATIC RESOURCES (SUSTAINABLEMARINE AND AQUATIC RESOURCES UTILIZATION PROGRAMME)

Goal: Sustain fisheries resource utilization and other resource extractive uses under theaegis of the carrying capacities of the multispecies resources.


Objectives:(a) Regulate harvests to assure sustained harvests in perpetuity;(b) Initiate resource enhancement measures in over-exploited areas;(c) Identify and establish strategic marine protected areas which are critical in providing

the sustained replenishment of genetic and biodiversity resources.


(a) Clarify jurisdictional complementation and institutional coordination;

(b) Identify areas of overlap and utilize complementary confidence-building activities tominimize accentuating turf problems and distinguish responsibilities where specificroles are more appropriate. Example: Fishing boat licensing are distinctly BFAR'sresponsibilities whereas the dugong and marine turtle protection and management areunder the DENR's Parks and Wildlife Bureau.

(c) Institutionalize inter-agency action programmes concerning aquatic and marineresources conservation and management into a unified implementing body;

(d) Facilitate the regularization of programmes through proactive administrative, financialand management planning; Example: Bay management councils and Fisheries andAgricultural Resources Management Councils (FARMC) should be made compulsoryand other MOAs be given more implementing powers through appropriate legislation.

(e) Provide mechanisms to concretize sustainable use and allocation of benefits;

(f) Stimulate private and public sector cooperation through the modernization ofcommercial offshore fisheries and the establishment of a common fund;

(g) Institutionalize a multisectoral council (Marginal fishermen, local government units,government organizations and commercial fishing operators) to implement regulatorymeasures in resource use and afford equitable access arrangement;. Example: Manyconsultative bodies and networks are ad hoc bodies which are issue based and thus itis crucial that strategic programmes be put in place to implement sustainable fisheriesand other marine resources management.

(h) Create a national and a regional fisheries management council;

(i) Harmonize economic and social incentives to establish comprehensive coastalcommunity development (for example, livelihood opportunities and a proper mix forrural and urban areas).


The Philippines as an archipelagic country found in the highest marine biodiversityregion of the world requires some important policy innovations and needs to implement thefollowing indicative guidelines:

(a) Incorporate sustainable use principles such as the concept of carrying capacity andmultispecies interactions;

(b) Reform existing mechanisms which do not adequately address sustainabledevelopment objectives and implement appropriate quotas, taxation, licensing andpermits etc.;


(c) Clarify management and development goals;(d) Clarify alternative measures to minimize growth overfishing;(e) Explore incentives for the exploitation of lightly exploited areas;(f) Encourage joint venture arrangements in international waters;(g) Implement coastal zoning and integrate fisheries management;(h) Allocate municipal fishery rights for small fishers;(i) Organize private fisheries interest groups;(j) Provide incentives for the commercial fisheries sector to fish farther in the EEZ;(k) Manage and regulate the exploitation of internationally-shared tuna stocks.


Since the exploitation of living water resources is a multi-stakeholder situation, itrequires a high degree of public participation and awareness. In order to achieve these, thefollowing actions can be pursued:

(a) Incorporate the concept of sustainable use indicators and mechanisms into formaland non-formal education venues;

(b) Encourage information and education campaigns (IEC) to facilitate participatory actionbased on a range of legal, scientific, and managerial mechanisms (for example,harvest controls with appropriate resource rents values through licensing, permits andother tax measures);

(c) Facilitate regular multisectoral consultations to tackle urgent needs and planproactively for future decisions and actions;

(d) Strengthen environmental awareness;(e) Empower local of communities to enable them to make decisions and plans on the

use and conservation of living marine resources and the provision as to how they maytake part in implementing the plan.

7.3.4 Monitoring, Evaluation, Control and Surveillance (MECS) System

(a) Explore ways of viably reducing fishing effort through the licening and social pressuremodes ;

(b) Explore supplemental strategies for enforcing laws and regulations (for example,market and non-market incentive strategies);

(c) Strengthen fisheries conservation through law enforcement and non-regulatorymeasures (for example, education);

(d) Establish adaptive management mechanisms in the monitoring of resource uses andenhancement interventions;

(e) Identify appropriate indicators to measure the impact or effectiveness of harvestregulations and other management interventions through question oriented researchand applications for resource management;

(f) Clarify management decisions based on monitoring and evaluation feedback and actaccordingly at the right time, at the right degree and level.



(a) Improve the personnel of the various levels of government organizations and localgovernment units to implement the regulation of harvest controls and resourceextraction through apprenticeship programmes and formal scholarship grants;

(b) Enhance the absorptive capacity of institutions to efficiently utilize funds and sustainfinancial capacity after programme phase-out;

(c) Allocate funds for human resources development in the various common funds forresource management and appropriate incentives for improved performance ofharvest controls and resource extraction.

(d) Establish and maintain infrastructure (for example, ships and equipment) tomodernize government capacity to manage water-related resources.

7.4 HABITAT MODIFICATION (LAND CARE AND INTEGRATED COASTAL MANAGEMENT PROGRAMME)

Goal: To harmonize the land and coastal zoning and management measures in order tofacilitate the sustainable development of the land and water ecosystems without undue stressfrom habitat modification

Objectives:(a) Establish land care measures (such as zoning and resource extraction regulations)

which assure soil conservation and watershed management;(b) Initiate and establish a national functional zonation scheme for the country in order to

harmonize multiple use sustainable development needs;(c) Integrate land and coastal zone development plans and implement appropriate

management at various hierarchical levels.


DENR as the government institution that is in the strategic position and has themandate to safeguard and manage our natural ecosystem can take the lead in pursuing thefollowing actions:

Integrate land care (for example, agriculture and watershed management) and integratedcoastal management through legislative enactment and other paralegal measures;

(b) Enact appropriate land use and coastal zonation plans for all municipalities.


Policies and their appropriate guidelines, which tend to facilitate the integration ofmanagement initiatives, should be undertaken to be more effective. In this regard, thefollowing principles can be initiated:

(a) Incorporate considerations of land and sea interactions into all land and coastal uses;(b) Effectively implement the principles of ecosystem carrying capacities and

connectivities in zoning plans, together with doable implementing guidelines


There is insufficient understanding and appreciation of the ecosystem values andservices that are provided. Public education and participatory action researches are needed


in order to overcome inappropriate habitat and resource uses and transform these intoactions that lead to their wise utilization. The following actions can be considered:

(a) Facilitate the awareness of the community into joint land care and ICM practices in theindividual, household, village and municipality levels;

(b) Enhance provincial, regional, national and global mechanisms for assistance, supportand coordination;

(c) Incorporate participatory education and action researches into the land care and ICMprogrammes.

Owing to the large extent of the needs for protecting critical habitat and ecosystemneeds, enforcement measures through direct regulatory means and police action, thoughnecessary, will be very expensive. Public education and participation in sustainable land andcoastal zoning development and protected area management are cost effective alternativesand complementary to enforcement, surveillance, research and monitoring.

7.4.4 Monitoring, control and evaluation

(a) Improve the monitoring and evaluation of the impacts of land care and coastalmanagement especially in soil conservation of agriculture practices and land andcoastal conversions;

(b) Sustain research into better agricultural and forest management measures to facilitatebetter control of erosion and minimize coastal conversion;

(c) Incorporate adaptive and proactive feedback into research, monitoring and evaluationof land care and integrated coastal zone management programmes.


There is an insufficient number of integrated coastal managers who appreciate theland and water interaction so as to adequately plan and manage these strategically importantlife support ecosystems. In order to address the capacity-building needs to assure thesustainable development of ecosystem services of the country, the following concerns havebeen proposed:

(a) Expand and strengthen the cadre of watershed managers who relate with farmers’organizations to integrate and harmonize zoning with coastal zone planning andmanagement to meet sustainable development goals;

(b) Enhance the capacity of networks and coordinating institutions to facilitate theeffectiveness of actions at all hierarchical levels (local, regional, national and global);

(c) Sustain the financial viability of land care and integrate coastal management throughthe appropriate valuation of ecosystem services, inputs and outputs effects of theseecosystems, and implement a comprehensive revenue system for these values inorder to sustain the use and equitable allocation of ecosystem benefits.

The priority action criteria are to assure the protection of strategic watersheds and criticalecosystem habitats which integrate land to sea water-related ecosystems. The need toconsolidate and sustain a representative system of network integrated protected areas shouldbe a priority agenda (i.e., at least one, large enough to be of national significance, in each ofthe ten marine biogeographic zones).

8.0 IMPLICATIONS OF THE PROPOSED ACTION BY SECTOR


The proposed actions will require adjustments both philosophically and pragmaticallyin various sectors. The priority sectors concerned in relation to the effective implementationof the programmes of actions to address the major water-related issues can be related to thecause and the solution to the problems outlined previously. In this regard, the actions shouldnot be considered as separate sectors but as multisectoral and interactive with each other(see table 8.1 and figure 8.1). For example, the implications to the financial sector require thatthe economic sector pave the way to be able to sustain the capacity to implement theproposed actions. In addition, industries in the forestry, fisheries and agriculture sectorrequire that regulations and harmonized programmes recognize and deal with their inherentand inter-sectoral water-related concerns (for example, the downstream effects ofdeforestation on agriculture and fisheries). The following are the possible conflicting policyimperatives in the socio-economic environment and the sustainable development needs:

1. Fisheries production needs for food as compared with the "carrying" capacity of fisheries and the conservation needs for the ecological integrity of the life-givingattributes of the coastal and marine ecosystems;

2. Pollution may be expected to increase and habitats change with the industrialtrajectory of the nation (for example, the regional industrial centres and programmaticEIA, the mining act and tourism master plan);

3. Freshwater needs and habitat change together with increases in population create agreater demand at all levels of resource use and the governance which accrues fromit (for example, the forestry master plan, the national integrated protected areassystem act, and the water master plan).

4. Transboundary concerns in terms of living and non-living resources, together with thedemands of global liberalization and breakage of trade barriers (for example, maritimeand transboundary concerns).

Looking at the first area of possible policy conflicts listed above, the followingconcerns need to be addressed. One of the strategic issues which faces difficulty inachieving a consistent sustainable development trajectory is the concern for food security andthe need to increase fish production in situations of dwindling resources. The nationalagencies concerned such as BFAR, PFDA and DENR, need to:

(a) Monitor and evaluate their production targets and the concomitant programmes;(b) Harmonize policies towards a common sustainable development agenda; (c) Coordinate the short- and long-term implementation of its action.


Table 8.1. Matrix of past and present policies affecting the use of coastal resources (seealso figure 8.1)

Economic policies Coastal activities affected Environmental impactsA. Applicable incentives fromBoard of Investments(Executive Order 226)

- Income-tax holidays- Tax and dutyexemption from importedcapital- Tax credits onimported capital, feedsfor grow-out and rawmaterials

Preferred areas of investmentwhich vary yearly, for 1989;

Ø Capture fisheries(upgrading andmodernization of vessels)

Ø Fry production for seabass, grouper, milkfish andspiny lobster

Ø Seaweed production

Ø Increases fishingintensity/ and stockdepletion

Ø Decreases pressure onwild fry but may putpressure on cultureenvironment

Ø Decreases pressure onwild stocks; widespreadseaweed farming maydisturb coral reefecosystems

B. Interest rate subsidies(through, e.g., BiyayangDagat Programme) andguarantee schemes

Activities financed such as pondconstruction and improvement,shrimp farming, among others

Encourages mangroveconversion into fishponds;encourages capitalintensive productiontechnologies; providesalternative employment tofishers which may reducefishing pressure

C. Tax exemption anddrawback schemes for fuel(Executive Order 1047)

Fishing in international waters Reduces fishing pressureon the country’s EEZ

D. Subsidy on diesel fuel Nearshore and offshore fishingoperations

Increases fishing pressureon offshore and nearshorestocks

E. Subsidy on inorganicfertilizers

Fishpond aquaculture Promotes intensive culturemethods; possibly slowsdown mangrove conversionto ponds

F. Reduced import duties on(used) fishing vessels,factory ships etc. (ExecutiveOrder 364)

Commercial fishing operations(presumably on offshore fishstocks)

Increases fishing pressureon offshore stocks

Source: Padilla and de los Angeles 1992.


Figure 8.1 A coastal cross-section documenting major interrelationships betweeneconomic policies and the utilization of coastal resources in the Philippines(Padilla and de los Angeles 1992)

Some of the possible mechanisms to facilitate the monitoring and evaluation of thetargets and programmes are through the following:

(a) Enhance the sharing of resource information on the status and use of themarine and freshwater resources and habitats through the a national environmentalinformation system (for example through the National Environment Resources InformationCentre);

(b) Foster participation of stakeholders in monitoring and evaluation, as partners inpublic education and in the feedback process of adaptive management;

(c) Restore and enhance the life-support functions of critical ecosystems throughthe development of more marine protected areas and sustainable types of aquaculturewhich considers equitable access of other stakeholders in the longer term perspective.

In addition, the harmonization of goals and the coordination of the implementation ofthe action programmes require that the Philippine Agenda 21 be consonant with the proposedPLAN 21. Greater emphasis should be made on establishing an archipelagic focus in nationalpolicy (i.e., in PLAN 21). This sustainable development strategy implies the delicate harmonyof use and development takes into consideration the ecosystem conservation needs ofdevelopment. Appropriate matching of production targets needs to be clearly defined withadequate environmental safeguards (for example, aquaculture proliferation) throughresources conservation (for example, establishment of marine protected areas) andmanagement (for example, fisheries regulation and management). The present state ofmarine affairs in the country is still wanting in these concerns.

The second possible conflict concerned pollution and industrial development. Pollution may be expected to increase and habitats change with the industrial trajectory of thenation. One of the strategic mechanisms which requires urgent implementation is the


establishment of integrated coastal and land-use zoning. The establishment of functionalzones (i.e., tourism zones, marine protected areas, and regional agro-industrial zones) whichare harmonized with ecological and sustainable perspectives needs more comprehensiveguidelines and an effective EIA system. Pollution loading and conversion of habitats, whichthreaten the existence of adequate ecosystem services, require the incorporation of improvedprocedures. Improvement should incorporate the projection of cumulative human impacts onthe environment in appropriate spatio-temporal scales, and the cost and benefits ofecosystem services vis-à-vis conversion and other uses.

The proliferation of strategic master plans in the various sectors (such as tourism,forestry and mining) shows an inadequacy and lack of appreciation of the coastal and marineimpacts of these developmental thrusts. Since more and more of these plans are beingimplemented by government programmes, then the involvement of the public and privatesector should be enhanced. In order to obviate increased wastes and minimize pollution andcoastal conversion, the following can be of priority concern:

(a) Minimize siltation and pollution from the various human settlements, industrial growthareas and poor agricultural practices. This necessitates the development of coastaland marine development plans which facilitate coordination of the hierarchicalconcerns of local (barangay and municipal levels), provincial, regional, national andglobal responsibilities and commitments;

(b) Utilize innovative market and non-market interventions among the variousstakeholders;

(c) Incorporate precautionary and user-pay principles into the EIA system and include thisconsciousness in most urban and rural activities in the various sectors.

The third area of conflict concerned freshwater needs and habitat change together

with increases in the population. An inadequacy in the present manifestations of the strategicpolicies of the forestry master plan, and the national integrated protected areas system act isapparent. An appreciation of the holistic attributes of the ecosystem services is lacking in theevaluation of their implications to natural resources management decisions.

This can be illustrated in the following examples:

(a) Emphasis on the amount of sustainable timber utilization is the prevalent basis formuch of the area targets for the maintenance of forest areas in the country instead ofdetermining the area needed to maintain a sufficient water supply in the watershedsand minimize soil erosion and siltation of downstream receptors;

(b) Representative sites within the NIPAs needs to be improved from that based onmammalian biogeographic distribution to a network of protected areas which does notonly consider the corridors of dispersal of organisms but also the ecosystemconnectivities of habitats and human societal needs;

(c) The appropriate mix of surface water uses in industrial, municipal and agriculturalsectors does not adequately consider the cumulative ecosystem impacts, forexample, dams for hydroelectric power and cooling water. These constraints requirethat the seemingly disjointed localized and fragmented impacts at the different sectorsbe evaluated in an integrated manner. For example, the emerging technologies in


alternative energy generation and the rates of consumption and production levelsshould wisely balance the short-term needs with those of the next generation.

The fourth area of conflict concerned living and non-living resources, together with thedemands of global liberalization and breakage of trade barriers. With quantum leaps in theinformation age, decisions are made faster without adequate information inputs of ecosystemvalues. Decisions to open shorter maritime routes may lead to the extinction of the lastpopulations of migratory birds and marine turtles which move from the South China Sea tothe Turtle Islands. The interference of reproductive events, larval dispersal and tuna migratorypatterns from increased transport activity (for example, ballast water introduction of exoticspecies and higher probability for oil spills) causes recruitment collapse. The cluster ofcoralline islands and shoals in the Spratlys is not only one of the richest marine biodiversitycentres in the world but is increasingly gaining a wide variety of uses from militaryreservations, tourism, fishing, and mining.

In addition, increased tension from conflicting claims in the South China Sea maypotentially cause environmental disasters if there is military conflict. A military engagementmay cause greater navigational hazards, ship sinkings and the destruction of offshore oilwells in Brunei or from the offshore oil and natural gas development of the western coasts ofPalawan. The proposal for stewardship arrangements for marine biodiversity conservation tobe fostered among claimants in the South China Sea area may be an important honourablemechanism for the countries in the region. The establishment of a transboundary marineprotected area for all to preserve in perpetuity may be a worthwhile lasting legacy of this TDAproject.

8.1 FINANCE

8.1.1 Financial planning and sustainability

The recognition of the need to incorporate environmental costs in water-relatedissues, as in all other environmental concerns, requires that appropriate mechanisms on howto provide funding sources and rationalize areas in the national budgetary framework beestablished. In order to sustain development without unduly jeopardizing the futuregeneration’s access to these ecosystem services and benefits, at the very least the allocationof the country's financial resources should at be the level of $9 billion (assuming 3 per centenvironmental cost of GDP, de los Angeles and others 1993).

The present EIA system has incorporated the concept of an Environmental GuaranteeFund (EGF) as a mechanism for applicants seeking an environmental compliance certificate. How effective and how best to utilize these instruments should be made a major componentof the action agenda of the Government.

At present, in addition to establishing some degree of environmental investmentindices as a step towards estimating the allocation of the municipal development fund,internal revenue allocations and other taxation and fees schemes might be considered. Otherinnovative mechanisms can also be elicited from the private sector and international financialinstitutions (for example, environment credits and productivity based indicators) and the publicsector (for example, debt for nature swap). Moreover, it is important to explore the means toactualize and expand the coverage of implementing the user-pay principles into both financingand investment mechanisms.

8.2 ECONOMIC DEVELOPMENT


8.2.1 Sustainable healthy environment integral to development

As indicated in many environmental and natural resource accounting initiatives, thecosts to the environment of development projects and other ongoing human activities shouldbe an integral consideration in the evaluation and eventual implementation of controlmechanisms.

More comprehensive ongoing investigations need to be undertaken to determinewhether incorporating considerations of environmental costs into many or all economicactivities has a direct impact on economic growth (Cruz and Repetto 1992, de los Angelesand others 1994 and Montes 1994). The combined effects of the present economic crisis andstabilization policies (for example, exchange and interest rates) which have led tounemployment and income decline needs to be met with adequate safety nets to preventincreased pollution, over-exploitation and habitat degradation.

At least this lack of information did not deter President Fidel V. Ramos from espousingthe goal of becoming an Asian green tiger (AsiaWeek 1996). These attempts are also seen insome of the national policy statements especially in the Philippine Agenda 21 known as thePhilippine Strategy for Sustainable Development (PSSD) which the National Economic andDevelopment Authority (NEDA) serving as chair through the Philippine Council for SustainableDevelopment (PCSD). The quest for economic growth by becoming a newly industrializingeconomy within a highly competitive global economy has both positive and negative aspectsin relation to the environment.

Enhanced recognition of the importance of a sustainable environment and naturalresources has positively affected economic activity. Increasingly these factors areincorporated into annual projections of how they may affect expected targets of annual growthand diversification of economic activities (for example, the El Ni phenomenon, watershortages affecting food production). In addition, the appreciation of questions on theallocation of costs and benefits as a crucial concern in evaluating environmental and naturalresources and services as a corollary to the criteria of economic growth per se isencouraging. The consideration of rates of change and the proper timing and allocation will beimportant determinants in dealing with the positive (sustained use and development) andnegative (increasing costs from environmental degradation and depletion and unsustainabledevelopment) effects of the nation's development trajectory.

8.2.2 Sustainability and equity

As mentioned earlier, the implications of decisions and actions which consider thesustainability of water-related environmental goods and services should also integrate theimplications on how the costs and benefits are allocated. These considerations in principlehave a basis in the Social Reform Agenda. For example, embodied in the agenda are theconcerns for preferential use rights for marginal fishing and indigenous communities. Moreoften capacity-building mechanisms are required in order to pave the way for the appropriatemanifestation and concrete pursuit of the sustainable development of the marginalized ordisenfranchized sectors in society.

Cruz and Repetto (1992) have suggested that there is a need to strengthen resourcerent and property taxation. On the other hand, Montes (1994) further cautions that not allenvironmental outcomes can be understood in terms of the impact of pricing policies; forexample, the distribution of income and asset control and regulatory capability are alsoimportant. Safety nets are needed for an increasing number of poor Filipinos who are


suffering from economic contraction and reduced access to dwindling resources and unfaircompetition with the elite. Provision of credit for livelihood activities through cooperatives andpeople’s organizations should be expanded through greater contributions (for example, taxes)from the elite.

Montes (1994) has suggested that barring significant social restructuring (for example,sufficient access control through agrarian reform and controlling the entitlement of the elite towater-related resources), increasing the technical ability of the bureaucracy, strengtheninggroups outside the formal state apparatus and reorienting external assistance (for example,debt for nature swaps) can be second best interventions.

8.3 FISHERIES

8.3.1 Food security and sustainable fisheries

An often repeated dilemma is how to attain food and cash security and at the sametime control pressures resulting from the increased over-exploitation of the water-relatedenvironment and resources. Reducing fishing effort through alternative livelihood activitieshas been proposed, activities that are not solely based on extraction or harvests from thefisheries sector. However, this does not deal with the question of the possibility of foodshortages. At the moment, no creative strategic food supply projections have been explored interms of their carrying capacities and other scenarios for alternative production and feedingmodes.

For example:

1. Since many of the water-related habitats are downstream receptors constrained bylight and nutrient conditions, only a certain carrying capacity can be sustainablyaccessed by a population; the appreciation of limits to growth, especially in the waterecosystem, requires that in the long term both the supply and demand side (forexample, family planning) capacities should be appropriately addressed.

2. The dietary preference of the population and a re-examination of the mixture ofproduction targets of high value and low cost protein sources such as fish should alsoconsider the impacts on the ecosystem.

3. Food security projections should be rationalized with sustaining the supply side offisheries (both in the wild harvests and aquaculture).

8.4 AGRICULTURE

The importance of fisheries as a critical food source has guaranteed that it beconsidered primarily as a concern of agriculture despite its specific ecosystemcharacteristics which are different from a terrestrial ecosystem. This misconception of thewater environment has been transposed to the idea that the water ecosystem's carryingcapacity can be enhanced in the same way as agriculture approaches such as nutrientenrichment and predation control. In some mariculture systems these similarities can existonly to a limited extent especially because of the different thresholds of light and nutrientconstraints. Moreover, the fluid nature of how light and nutrients are utilized as mediated byhydrography and topographic attributes are different.

Human society's increased appreciation of the water world's specific uniqueness canpave the way to the emancipation of agriculture systems into a more integrated and


ecologically based perspective. Increasingly polyculture and integrated farming systems areincorporating ecologically sound approaches to food production and trade. Will it be possibleto set ecozones and buffers and agriculture and productive centres which may pave the wayto demarcating areas for agriculture zones while still maintaining critical watershed areas and meeting food security production targets?

In the short term, the urgency of some concerns are deflected from the root causes.For example, the shortage in rice production may be linked to the reduction of rice landsbecause of conversion into subdivisions and industrial zones. In addition, watershed andirrigation areas are being converted to other functional uses such as golf courses thuschanging the food production and ecological capacities of these ecosystems.

Cruz and Repetto (1992) have aptly noted that structural adjustments could eliminatebias against agricultural activities that are environmentally friendly. In addition, improvedaccess to agricultural resources by the poor would have favourable economic, social andenvironmental effects.

8.5 FORESTRY

8.5.1 Watershed management and silviculture

As in the agriculture sector, an increasing appreciation of the ecological functions ofthe forests, separate from the timber industry, has changed the perspective for thesustainable development of the forestry sector. The problem of erosion and the conversioninto agriculture areas have been tactically approached through integrated agroforestryschemes (OECF 1997). Replanting and reforestation are becoming more integrated,rehabilitating and enhancing its hydrologic and erosion buffer value. The problem of thedegradation of forests in watershed areas despite their proclaimed priority use and value as asource of water and erosion and nutrient buffer is starting to be afforded high protectionstatus. If this positive trajectory is to be expanded and consolidated, an even greatercapacity in this sector is needed so that it can absorb proposed programmes that areintroduced. There have been some initiatives at providing cross-sectoral programmes inorder to address these water-related issues such as the central Visayas resourcesprogramme and the OECF-ICZM programme in southern Mindanao. It is important to notethat the modalities and mechanisms for coordination within these sectors can be improvedespecially in the following areas:

(a) Minimize the turf and jurisdictional concerns of the Department of Agriculture andDENR though coordinated efforts at enhancing technical assistance to localgovernments;

(b) Clarify the roles and responsibilities of local government units and the participation ofthe stakeholders;

(c) Enhance the capacity-building of concerned stakeholders to implement the desiredprogrammes.

8.6 MANUFACTURING

8.6.1 Industrial zones


Increased pollution loads and social pressure have facilitated a slow realizationespecially for the bigger manufacturing industries that in future it cannot be business asusual. In the past, when the business climate was bad the environment was the first tosuffer. A paradigm shift is very slowly emerging among emancipated industrialists that hasfacilitated their willingness to pay the environmental costs for the use of environmental goodsand services. The sharing of environmental and resources costs can be facilitated bygovernment and civil society. Some examples can be seen in how the environmentalguarantee funds are established and implemented. The allocation of sharing the costs andbenefits is critical in order to sustain the harmonious relationships of the different users. It iscritical that the cost sharing responsibilities arrive at some equitable arrangements toharmonize their goal for sustainable development. These concerns refer to how taxation andincentives, together with in-kind contributions (for example, environmental monitoringservices) actually affect big and small manufacturing companies. Some investigations by theindustrial environment management programme with assistance from USAID provide important guidelines to evaluate and respond to the implications of water-related programmesto the sector. Important are the market and non-market instruments which are proposed toovercome the resistance to change in the monitoring, control and evaluation of environmentalcost sharing mechanisms.

8.6.2 International maritime areas

The transport of goods and services and the utilization of maritime areas bothdomestically and internationally will have increasing importance especially in transboundaryconcerns. Despite the ratification by the Philippines of many international protocols andconventions the commitment can be found wanting in the actual implementation of theseagreements. Harnessing the political will and capacity requires that the sector is providedsufficient support in exchange for specific roles and responsibilities for such assistance. Inorder to facilitate programmes such as pollution abatement and waste minimization in thetransport sector, the concessionary credit facilities necessary to stimulate infrastructureinvestment needs to be established. Initiatives need to be taken together with technicalassistance in human resources and curricular development to enhance the technical skillsand knowledge of the transport sector (especially maritime).

In addition to the water based transport facilities, land and transport infrastructure (forexample, roads and ports) have made considerable habitat changes, which both directly andindirectly relate to water utilization. Directly, road construction (including reclamation forcoastal roads) and development of communication facilities (underwater cables) haveprofound effects on habitat integrity. Development in these sectors should seriously considerhow erosion can be minimized and siltation impacts on the water environment reduced.Indirectly, the profound effects in increasing access to watersheds, forest areas, coastal andmarine habitats are often not adequately considered. In the programmes of action mentionedabove careful consideration in the transport and maritime industry and the linkages totransboundary areas should be given in the planning and implementation of integrated coastaland land use plans.

8.7 MINING AND ENERGY

The stimulus for increased investments in the mining sector and the implications ofhow the action programmes can provide for a environmentally friendly mining industry is adifficult but important task. The programmes to deal with habitat modification and extractionof resources, together with the responsibility for pollution abatement and waste management,require the following considerations:


(a) Identification of strategic mining areas and energy development and the setting ofindustry quotas as targets to evaluate the effectiveness of waste treatment;

(b) Agreement on a sustainable development rate that considers the recovery andregeneration rates affected by habitat modification and extraction activities;

(c) Safety and environment planning will be integrated as part of an integratedmanagement practice.

(d) Classification of strategic areas to be identified so as to harmonize priority uses formining zones, which should not contradict strategic national and local protected areasand other land and water use classifications.

8.8 Urban and rural development regimes

The criteria for choosing priority areas for programme implementation and theprocess of producing the most effective impact ranges from highly urbanized areas to theleast developed rural areas. To evaluate the effectiveness of water-related issues, replicatesamples are needed from a hierarchical and nested representation of a gradient of high to lowgravity of the problems and causes. The prioritized list derived from the set of decision criteriaprovides some decision rules whereby adaptive management mechanisms can be learnedand practised at the same time. In effect the implementation of the action programmes havethe following expected outputs for representative human settlement and developmentregimes:

(a) Representative zoning master plans of inland waters and coastal zones whichimplement integrated waste management systems, pollution abatement andsustainable fisheries management;

(b) Implementation of participatory action research, development interventions andadaptive management based on the plans and guidelines;

(c) Evaluation of the effectiveness of management measures at the different stages ofimplementation, including process documentation of lessons learned and analyticalinstruments.

National and local government counterparts may need to be identified in conjunctionwith the participation of concerned stakeholders in the civil society.

8.9 LABOUR

The effect of the programmes will most likely expand employment opportunities sothat a new labour force may emerge to provide for sustainable environmental goods andservices. At present, the specific and general role of the labour sector is not well recognizedand thus not as well developed in the Philippines. Only in the recent decade haveenvironmental issues been incorporated into labour and management collective bargainingagreements. Urban and rural workers will have varying manifestations of how they will relateto the various water-related issues. Their strategic role in the production process makes themcrucial in the effective implementation of solutions to water-related issues. In addition, theheavy dependence of the nation on remittances from overseas Filipino workers may in factfurther facilitate interventions in the transboundary concerns of water-related issues (forexample, those in the maritime and mining industries).


The interrelated concerns of unemployment, poverty, and population pressure have aprofound effect on the marginal resources such as the watersheds and coastal areas. Afailure in economic expansion produces net upland and coastal migration into open accessareas. These tend to increase the degradation and depletion of upland watersheds andcoastal zones and fisheries resources.

8.10 CONSUMERS

Consumers are an important sector in the pursuit of market and non-marketinstruments as part of the solutions to water-related issues. A comprehensive approach atthe individual and institutional level is required. Responsible and proactive consumerism canbe a potent force especially in public awareness and education campaigns. Sustaining theconsciousness of consumer protection as linked to environmental action will requireconsiderable capacity-building (for example, organizing consumer groups) and socialpreparation. The recognition and actual effect on prices of value added products, which areenvironmentally friendly, are highly dependent on consumer sensitivity and social pressure.

9.0 SUMMARY

This country report aims to facilitate the establishment of a "report card" system onwater-related issues of the Philippines which can be compared with information from othercountries in the UNEP-East Asian Seas region. The attempt to identify transboundaryconcerns within the South China Sea is important especially to the coastal States bordering it. The Philippines is one of the countries occupying the eastern border of the South China Seaand is dependent on the South China Sea as an important life support system. In addition,the Philippines is one of the claimants to the Spratly islands, wherein the Kalayaan IslandGroup occupies a portion of the contested area. Despite the conflicting claims thetransboundary concerns of the water-related issues, pollution, water supply, over-exploitationand habitat modification, are concerns of all the coastal states. Highlighting the gravity ofthese concerns are attempts to estimate the socio-economic losses that may be accruedfrom these stresses. A wide indicative range of around $0.3 - 9 billion annually has beensuggested.

As an archipelago, the major concerns of the Philippines focus primarily in thewestern part of the country from the northern area in the Batanes region and north-westernLuzon to the southern sections of Mindoro and Palawan.

Regarding pollution the highest concern is around the Metro Manila area, and ofintermediate concern is the Lingayen Gulf and Batangas-Verde Island Passage area and to alesser degree the area in north-west Palawan. Water shortages and contamination offreshwater supplies follow a similar pattern of concern as both are related to populationgrowth and urban development. Over-exploitation of living resources and habitat changes arealso associated with these development trends, although understanding the natural variabilityof ecosystems and natural populations cautions us not to trivialize and make broadgeneralizations. The reiteration of the need to incorporate the concept of carrying capacityand sustainable yields in good management practice is also necessary.

Inversely, the importance of establishing protected areas can focus on a network of large national representative sites of highly sensitive areas such those in western Palawan (including the Kalayaan Island Group) and the Batanes region.


Understanding and action leading to adaptive management approaches also has to bepursued in the context of the proposed social-economic options available in the areasconcerned. Since the issues are caused primarily by human activities interacting with theenvironment, then interventions have to deal with the holistic nature (i.e., natural and maninduced) of the problem. Specific actions are proposed for each issue ranging from: (a) thepolicy concerns and guidelines for action, (b) legal and institutional arrangements, (c)monitoring, evaluation and control mechanisms, (d) public education and participation and (e)capacity-building needs.

Although all the concerns are interrelated in a geographic and issue perspective,treatments per topic are made only for emphasis. But time and again, mention is made of theneed to consider the interconnected nature of transboundary issues (for example. pollutionand endangered species and habitats). In addition, the context of how they are going to besolved requires an appreciation of the necessary complementary action from the local,national, regional and global setting. Intersectoral coordination will facilitate integrated actionin a multidimensional regime.


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