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Summary of Preliminary Study Result for Grant Aid Project

Date (prepared): March 17, 2008

1. Title of the Project and implementing agency Full title of the Project: Disaster Prevention and Reconstruction for Camiguin Island in the Republic of the Philippines

Implementing agency: Department of Public Works and Highways (DPWH)

2. Categorization and its reason Categorization: B Reasons: - Relocation of a house may be necessary. - Private properties need to be acquired or temporarily used. - Cash crops need to be removed for the construction of access road, bridge and sabo dams. - Some adverse impacts on traffic, water supply, air pollution, waste management, landscape,

noise and vibration are expected.

3. Outline of the Project

3-1. Background Establishment of disaster prevention measures has been essential for the economic development

and social stability in the Republic of the Philippines. The Province of Camiguin was hit by debris flows and flash floods due to Typhoon Nanang in 2001, which took a heavy toll of lives and damaged houses and infrastructures including roads, bridges, water supply systems, power transmission lines and schools. After the event, JICA Basic Study on Disaster Prevention and Reconstruction Project for Camiguin Island was conducted in 2003 and identified 4 river basins (risk category AA) that were considered to be most vulnerable to attack of debris flows and floods. The study, in particular, strongly recommended construction of sabo facilities in the Pontod River basin and reconstruction of the damaged Hubangon Bridge across Hubangon River (see Fig. 1), as urgent structural measures because there is a huge volume of unstable and collapsible sediment remaining on these river basins, which might renewedly cause debris flows in the event of heavy rainfall. Construction of sabo facilities is, therefore, highly expected to improve the security in the threatened area. The reconstruction of Hubangon Bridge is also critical to sustain economic development of the province in view of the fact that it is one of bridges on the national highway connecting Benoni Port, the main ferry port of the province, to Mambajao, capital of the province. Following the recommendation of the previously conducted Basic Study, the Republic of the Philippines requested the government of Japan for grant aid cooperation in the construction of sabo dams and reconstruction of Hubangon Bridge in June, 2006. 3-2. Objectives

Objectives of the proposed project are as follows: - Improvement of the living condition and standard in hazard occurrence areas - Enhancement of the safety and reliability of the national highway, the main artery in the province - Effective utilization of land that is protected by sabo structures - Improvement of agriculture-based economy and tourism

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3-3. Number of beneficiaries - Direct beneficiaries

Sabo dams 1,630 local residents living in the catchment area of Pontod River and Hubangon River

Hubangon Bridge 74,232 residents living in the Province of Camiguin

- Indirect beneficiaries 76,504,077 people (population of the Republic of Philippines as at 2000)

3-4. Justification The Medium-Term Philippine Development Plan (2006-2010) has recognized the disaster

prevention sector as one of the top-priority areas for the socio-economic development of the nation. The proposed project will contribute to socio-economic development and poverty alleviation in the Province of Camiguin by improving living conditions in hazard areas and the safety and reliability of the national highway. 3-5. Project components

Proposed project is comprised of two components. One is construction of two sabo dams in the Pontod River basin. The other is reconstruction of Hubangon Bridge. Figure 2 shows the locations of 4 candidate sites for sabo dam construction. Figure 3 shows the location of Hubangon Bridge.

Fig. 1 Satellite imagery of Camiguin Island from Google (with a registered license) showing the location of Pontod River and Hubangon River (white solid lines).

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Fig. 2 Location of candidate sites for sabo dams, Sudlon, Comon, Pontod and Hopucan. Aerial photo was taken in the JICA Basic Study in 2003.

Fig. 3 Location of Hubangon Bridge (yellow circle) and Pontod Culvert (light-blue circle). Aerial photo was taken in the JICA Basic Study in 2003.

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4. Outline of the location

4.1. Natural settings Camiguin has a total land area of 238 km2 and measures 37 km at its longest and 14 km at its widest. The island emerged from the Mindanao Sea as the result of volcanic activity and is made up of volcanic deposits. There are active volcanoes that still have been discharging volcanic deposits. There are about 28 major catchments that are characterized by steep slopes in the highlands and gradually reducing gradients toward the low-lying lands.

Camiguin is a tiny island richly endowed with nature like lush forest, volcanoes, springs, pristine beaches, waterfalls, wildlife including endemic species, endangered species, and so on. There is one strictly protected area “Puntoong Hibok-Hibok Natural Monument” that was designated in 2003 by the Republic Act 7586 “National Integrated Protected Areas System (NIPAS)”, which supports a precious ecosystem together with scientifically important flora and fauna. There is no mangrove swamp at the mouth of Pontod River and Hubangon River and no coral communities off shore lines in the proximity of both rivers.

Annual average rainfall is 2,300 mm, and the months between October and February receive the greatest amount of precipitation (>300mm/month), out of which October through January is the typhoon season for the province.

4.2. Socio-economic conditions Camiguin has a population of 74,232 in 2000, and is comprised of 5 municipalities, i.e.

Mambajao, Mahinog, Catarman, Sagay and Guisiliban. The proposed project sites are located in Municipality of Mahinog that includes13 barangays with a population of 12,590. Population within the basins of Pontod River and Hubangon River is 1,109 and 521, respectively.

Camiguin’s main port, Benoni, is located in south Mahinog and is the primary point of access for the trade and arrival of people. The national highway between Benoni and Mambajao, which Hubangon Bridge is located, is the artery supporting the main physical distribution in the Province of Camiguin.

The present land use in Camiguin is categorized into a) commercial, b) residential, c) utilities, d) agriculture, e) forest, f) protected agriculture, g) protected forest, h) tourism, i) institutions, j) riceland, j) grassland/brushland, and k) perennial trees. In comparing the patterns of land use in Mahinog on the years 1985, 1988 and 1996, there is an apparent trend of increasing agricultural, forest and built-up lands. Similar in the province, agriculture is the dominant land use covering 75% of the total municipality area (2,446 has).

The economy of Camiguin primarily depends on agriculture and fisheries, which support 51.5 % of the households in the province as income source. Seventy-one percent of employees are engaged in agriculture and fisheries. Coconut, rice and lanzones are the crops with relatively high economic values. Mahinog and Mambajao are the top rice producers with 36% and 53% contribution to the provincial production, respectively.

Average household income in Mahinog is 43, 872 Philippine Peso (PhP) in 1996. The poverty incidence in Mahinog is 73.21% (regional poverty threshold: PhP51, 563/year). The highest provider of income is labor and employment with PhP43, 161, closely followed by business with PhP43, 082. Agriculture and fishing fall almost last with only PhP11, 861 and PhP26, 581, respectively.

Camiguin has several tourist attractions ranging from natural, historical, scientific (endangered species), religious and cultural spots and events. 4.3. Problems

Huge amounts of unstable deposit (sediment) still remain, particularly on the slope of river basins, and would likely run off in future events of heavy rainfall. The JICA Basic Study identified hazardous conditions of Pontod River and Hubangon River, which means that debris flow and flood are likely to devastate the basin areas again. Identified problems are described below. - Hubangon Bridge, one of the most vital infrastructures for physical distribution in Camiguin, was

seriously damaged by the Typhoon Nanang in 2001. The bridge must be improved as soon as possible otherwise debris flows and/or flash floods would collapse the bridge and consequently damage the economy of the province.

- Huge volume of deposit still remains in the catchment area of Pontod River. If debris flow changed its present river course accidentally, huge casualties and damages would be expected in the Barangays of Hubangon, San Jose, Catohugan, and so forth.

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5. Legal framework of environmental and social considerations

5-1. Laws and regulations - Environmental Policy of Republic of the Philippines

PD (Presidential Decree) 984：National Pollution Control Law 1976 PD 1151: Philippine Environment Policy 1977 PD 1152: Philippine Environmental Code 1977

- Selected laws and regulations related to Environmental Impact Assessment (EIA) or Environmental Impact Statement System (EIS System)

PD 1586 (Philippine Environmental Impact Statement System 1978) Presidential Proclamation No. 803: Definition of Environmentally Critical Areas (ECAs)

1981 Presidential Proclamation No. 2146: Definition of Environmentally Critical Projects

(ECPs) 1981 Office Circular No. 3 (1983): Technical Definitions and Scope of the Environmentally

Critical Projects and Areas Enumerated in PP No. 2146 DAO (DENR Administrative Order) 92-12 (Revision of PD 1586) prescribing the

notification of policy, objectives, procedures, public hearing, Environmental Compliance Certificate (ECC) and monitoring

DAO 92-21: Devolution of the EIS to the EMPAS (EMB Regional Offices) DAO 96-37: An attempt to further streamline the EIS system, to strengthen the processes

for its implementation, and to expressly give importance to meaningful public participation and transparency of the EIS process

DAO 99-37: Operationalization of the Environmental Revolving Fund (ERF) DAO 2000-05: Programmatic Compliance DAO 2000-37: Standard Costs and Fees Relative to the Implementation of the EIS System DAO 2003-30: Implementing Rules and Regulations (IRR) of the Philippine EIS System DAO 2004-61: Delegation of Authority to the General Manager of the Laguna Lake

Development Authority to Grant or Deny the Issuance of ECC/CNC for Projects located in Environmentally Critical Areas (ECAS) within the Laguna De Bay Region

DAO 2005-06: Guidelines for the Institution of the System of MEIC DMC (DENR Memorandum Circular) 2007-08: Simplifying the requirements for

Environmental Compliance Certificate or Certificate of Non-Coverage Applications - Laws and regulations related to property acquisition and resettlement

Philippine Commonwealth Act 141 or Public Land Act(1936): Prescribes a twenty-meter strip of land reserved by the government for public use, with damages being paid for improvements only.

Article III, Section 9, Bill of Rights of the 1987 Philippine Constitution: Private property shall not be taken for public use without just compensation.

RA 6389 (1971）：Provides for disturbance compensation to agricultural lessees equivalent to 5 times the average gross harvest in the last 5 years.

Executive Order (EO) 621 (1980) and EO 113 (1995): Prescribes that national roads shall have an ROW width of at least 20m in rural areas which may be reduced to 15 meters in highly urbanized areas.

Memorandum Order (MO) 65, Series of 1983: Easement and quit claim EO 1035 (1985): Provides procedures and guidelines for the expeditious acquisition by the

government of private real properties or rights thereon for infrastructure and other government development projects

RA 8974 (2000): An act to Facilitate the acquisition of right-of-way, site or location for national government infrastructure projects and for other purposes

Department Order 5 (DPWH Order), Series of 2003: Creation of the Infrastructure Right-Of-Way IIROW) and resettlement Project Management Office (PMO) and the implementation of the improved IROW process.

Several basic principles and operational policies for resettlement adopted by Asian Development Bank (ADB) and World Bank are used by the DPWH.

5-2. Guidelines and manuals - EIS System

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MC (Memorandum Circular) 2001-01: Guidance on the Implementation of DAO 2000-05, Scope of the EIS Programmatic Compliance Policy

MC 2002-15: Scope and Guidelines for the Imposition of Fines and Penalties under the Philippine EIS System

MC 2003-21, Part 1 & Part 2: Environmental Impact Assessment (EIA) Review Manual MC 2004-001: Non-requirement of Barangay and/or local government unit Endorsement

and Locational Clearances for CNC Applications MC 2004-002: Non-requirement of Barangay and/or local government unit Endorsement

and Locational Clearances for CNC Applications MC 2004-04: IEE Checklist for Economic Zone Enterprises MC 2005-01: Procedural Manual for DENR Administrative Order No. 30 Series of 2003

(DAO 03-30) MC 2005-06: Guidelines for the Institution of the System of MEIC (Mandatory

Environmental Insurance Coverage) MC 2005-07: Environmental Performance Report and Management Plan (EPRMP)

Checklist for Economic Zone Enterprises MC 2005-21: Supplemental Guidelines to MEIC MC 2006-01: Suspension on the Implementation of the MEIC MC 2006-03: IEE Checklist for Wind Energy Projects MC 2006-05: Clarificatory Guidelines in the implementation of DENR Administrative

Order No. 30 Series of 2003, IRR for the PEIS MC 2007-01: Environmental Impact Assessment (EIA) Review Manual MC 2007-02: Revised Procedural Manual for DAO 03-30. DENR. Aug. 2007

- Property acquisition and resettlement Infrastructure Right-Of-Way (IROW) Procedural Manual (01 April, 2003) prepared by

DPWH Land Acquisition, Resettlement and Rehabilitation Policy (LAEEP), 3rd Edition (2007)

prepared by Environment & Social Services Office (ESSO), DPWH

5-3. Procedures and requirements for environmental impact assessment Environmental Management Bureau (EMB), a subordinate organization of Department of Environment and Natural Resources (DENR), is the supervisory authority for the whole EIA process. Requirement of incorporating environmental and social considerations in project planning was formally instituted with the establishment of the Philippine EIA system under the PD 1586 issued in 1978. Proponents of Environmentally Critical Projects (ECPs) and those located in Environmentally Critical Areas (ECAs) are required to examine impacts of the projects on the environment, and secure an Environmental Compliance Commitment (ECC) from the President or his/her duly authorized representative. A Certificate of Non-Coverage (CNC) is issued for a project that is not covered by the EIS system, which is judged after examination of a submitted Project Description Report (PDR) by EMB.

There are 158 types of project listed in the project grouping matrix from the latest version of Procedural Manual for the Philippine EIA System (revised in August 2007). The proposed project may be categorized as “Group V – Unclassified Projects” according to the manual. For this group, project proponent (DPWH) needs to submit a PDR as an interim documentary requirement. This project may be covered or non-covered by the EIS System, which is subject to EMB Review of the PDR. The outcome of review will be a recommendation on the final EIS report type to be submitted as basis for issuing a CNC or ECC. Table 1 shows, for reference, EIA report types and certificates that are required for construction of minor irrigation dams (not sabo dams), bridges and roads pursuant to the manual. There are 12 ECAs that EMB has defined. Table 2 shows the listing of ECAs.

For infrastructure development projects of DPWH, Environment and Social Services Office (ESSO), a subordinate section of DPWH, prepares EIA reports (e.g. PDR, Initial Environmental Examination or IEE, EIS) and provide technical guidance and support in land acquisition. Flowcharts of the EIA process and land acquisition are summarized in Fig. 4 and Fig. 5, respectively.

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Table 1 Required EIA report type, certificate and maximum time to grant or deny application for ECC/CNC for the construction of irrigation dam, bridge and road

Project component

Project site1

(ECA/ Non-ECA)

Project size

Category/ Group pursuant to the project

grouping matrix2

EIA report type required

Certificate required 3

(CNC/ ECC)

Max. time to grant or

deny application (working

days) Construction of irrigation dam

ECA Reservoir flooded area < 25 hectares or

Water storage capacity < 20 million m3

II (Non-ECP) Minor dam

Initial Environment Examination (IEE) Report (IEER)1

ECC 60 days

IEE Checklist (IEEC) 1 ECC 30 days

Non-ECA Ditto III (Non-ECP in a Non-ECA)

PDR (optional) CNC 15 days

Construction of bridge

ECA Length < 80m II Minor bridge

PDR ECC 15 days

Non-ECA Length < 10km III PDR (optional) CNC 15 days Construction of access road

ECA Length ≧ 2km II IEER1 ECC 60 days IEEC 1 ECC 30 days

ECA Length < 2km II PDR ECC 15 days Non-ECA Length with no critical

slope < 20km, or Length with critical

slope < 10km

III PDR (optional) CNC 15 days

Source: EMB (2007) Revised Procedural Manual for DAO 03-30. 1 EMB will advise DPWH about which EIA report type, IEER or IEER, is appropriate. Table 2 Listing of Environmentally Critical Areas (ECAs) No. List of ECA Categories

1 All areas declared by law as national parks, watershed reserves, wildlife preserves, sanctuaries 2 Areas set aside as aesthetic potential tourist spots 3 Areas which constitute the habitat of any endangered or threatened species of Philippine wildlife (flora and fauna) 4 Areas of unique historic, archaeological, or scientific interests 5 Areas which are traditionally occupied by cultural communities or tribes 6 Areas frequently visited and/or hard-hit by natural calamities (geologic hazards, floods, typhoons, volcanic activity, etc.) 7 Areas with critical slopes 8 Areas classified as prime agricultural lands 9 Recharged areas of aquifers 10 Water bodies characterized by one or any combination of the following conditions: tapped for domestic purposes; within the

controlled and/or protected areas declared by appropriate authorities; which support wildlife and fishery activities 11 Mangrove areas characterized by one or any combination of the following conditions: with primary pristine and dense

young growth; adjoining mouth of major river systems; near or adjacent to traditional productive fry or fishing grounds; areas which act as natural buffers against shore erosion, strong winds and storm floods; areas on which people are dependent for their livelihood.

12 Coral reefs characterized by one or any combination of the following conditions: With 50% and above live coralline cover; Spawning and nursery grounds for fish; Act as natural breakwater of coastlines

Source: EMB (2007) Revised Procedural Manual for DAO 03-30.

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Fig. 4 Summary flowchart of the EIA process (source: Revised Procedural Manual for DAO 03-30)

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Fig. 5 Summary flowchart of land acquisition by DPWH (drawn from Infrastructure Right-Of-Way Procedural Manual. DPWH. 2003).

6. Analysis of alternatives and selection of construction sites for sabo dam

6-1. Alternative improvement schemes of Pontod River and Hubangon River Sabo dams cannot control flooding while it can control the debris flow. Therefore, in the

process of concept formation of the proposed project, an overall idea of the best flood control for Pontod River and Hubangon River was discussed within the study team. Two alternative improvement schemes for the flood control were selected. One is “Independent River Scheme” that completely separates two river flows by constructing dikes between two rivers (Fig. 6). The other is “Unified River Scheme” that unifies two rivers by introducing the river course of Pontod River into Hubangon River with a new channel that is constructed across a settlement area of Capagong (Fig. 6).

Project Identification Feasibility Study

Infrastructure Right-Of-Way (IROW) Action Plan Preparation

EIS System (Environmental Impact Assessment)

Update IROW Action Plan Based on Result of Detailed Design

Conduct of Parcellary Survey

Relocation of Public Utilities

Preparation of Land Acquisition Plan and Resettlement Action Plan (LAPRAP)

Clearing of Structures along the ROW

Turnover of IROW through Donation

IROW Acquisition through Purchase

Preparation of Deed of Absolute Sale

Transfer of Title/Tax Declaration

Expropriation (if owner does not

accept offer)

IROW Acquisition through Deed of

Exchange

Clearing of Other Improvements along the IROW

Clearing of Perennial Trees along the ROW (A “Permit to Cut” from DENR needs to be acquired.)

Preparation of IROW Completion Report

Processing of Title Documents