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Document of
The World Bank
FOR OFFICIAL USE ONLY
Report No: 82274-PH
PROJECT PAPER
FOR
SMALL RECIPIENT EXECUTED TRUST FUND GRANT
US$0.7 MILLION
TO THE
REPUBLIC OF THE PHILIPPINES
FOR A
PHILIPPINES WEALTH ACCOUNTING AND VALUATION OF ECOSYSTEM SERVICES
PROJECT
November 6, 2014
Philippines Sustainable Development
East Asia and Pacific Region
This document has a restricted distribution and may be used by recipients only in the
performance of their official duties. Its contents may not otherwise be disclosed without World
Bank authorization.
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CURRENCY EQUIVALENTS
(Exchange Rate Effective October 25, 2013)
Currency Units = USD = 1 USD
FISCAL YEAR
July 1 – June 30
ABBREVIATIONS AND ACRONYMS
ABS Australian Bureau of Statistics
ANI Adjusted Net Income
ANS Adjusted Net Savings
ANU Australian National University
APCPI Agency Procurement Compliance and Performance Indicator
APP Annual Procurement Plan
AusAID Australian Agency for International Development
BAC Bids and Awards Committee
BAS Bureau of Agricultural Statistics
BETF Bank-executed Trust Fund
BLES Bureau of Labor and Employment Statistics
CCC Climate Change Commission
CCRES Capturing Coral Reefs and Related Ecosystem Services, World Bank project
COA Commission on Audit
CPS Country Partnership Strategy
CW Comprehensive Wealth
DA Department of Agriculture
DBM Department of Budget and Management
DENR Department of Environment and Natural Resources
DOF Department of Finance
EITI Extractive Industries Transparency Initiative
ENRA Environmental and Natural Resource Accounting subprogram of the IEMSD
program (UNDP-funded, implemented by NSCB from 1995-2001)
ENRAP Environmental and Natural Resources Accounting Project (USAID-funded,
implemented by DENR from 1991-2000)
ESO Economic Statistics Office, NSCB
FM Financial Management
FPIC Free and Prior Informed Consent
GFI Government Financial Institution
GoP Government of the Philippines
GPM Generic Procurement Manual
GPP Global Partnership Program
IAC-AFS Interagency Committee on Agriculture and Fishery Statistics
IAC-ENRS Interagency Committee on Environment and Natural Resources Statistics
IAF Integrated Assessment Framework
IEMSD Integrated Environmental Management for Sustainable Development
programme, UNDP program led by NSCB from 1995-2001
IFR Interim Financial Reports
IOC Incremental Operating Costs
IPs Indigenous Peoples
KPI Key Performance Indicator
LBP Land Bank of the Philippines
LGU Local Government Unit
LLDA Laguna Lake Development Authority
MOA Memorandum of Agreement
MTR Mid-term Review
NCA Natural Capital Accounting
NCCAP National Climate Change Action Plan
NCIP National Commission on Indigenous Peoples
NEDA National Economic and Development Authority
NPPS National Planning and Policy Staff, NEDA
NSCB National Statistical Coordination Board
NSO National Statistics Office
OPAEP Office of the Presidential Adviser for Environmental Protection
OPIF Organizational Performance Indicator Framework
PCSD Palawan Council for Sustainable Development
PDP Philippine Development Plan
Phil-WAVES Philippine Wealth Accounting and Valuation of Ecosystems
PP Procurement Plan
PSA Philippine Statistical Agency
PSS Philippine Statistical System
PWSC Phil-WAVES Steering Committee
RETF Recipient-executed Trust Fund
SEEA System of Environmental-Economic Accounting
TA Technical Assistance
TEV Total Economic Valuation
TOR Terms of Reference
TWG Technical Working Group
ULAP Union of Local Authorities of the Philippines
UNDP United Nations Development Programme
UNEP United Nations Environment Programme
WAVES Wealth Accounting and Valuation of Ecosystem Services
Regional Vice President: Axel van Trotsenburg
Country Director: Motoo Konishi
Sector Director: John A. Roome
Sector Manager: Ousmane Dione
Task Team Leader: Stefanie Sieber
PHILIPPINES
Philippines Wealth Accounting and Valuation of Ecosystem Services Recipient-Executed
Trust Fund
TABLE OF CONTENTS
Page
I. STRATEGIC CONTEXT ...............................................................................................10
A. Country Context .......................................................................................................... 10
B. Sectoral and Institutional Context ............................................................................... 11
C. Higher Level Objectives to which the Project Contributes ........................................ 14
II. PROJECT DEVELOPMENT OBJECTIVES ..............................................................15
A. PDO............................................................................................................................. 15
Project Beneficiaries ......................................................................................................... 15
PDO Level Results Indicators ........................................................................................... 15
III. PROJECT DESCRIPTION ............................................................................................16
A. Project Components .................................................................................................... 16
B. Project Financing ........................................................................................................ 18
Instrument ......................................................................................................................... 18
Project Cost and Financing ............................................................................................... 18
C. Lessons Learned and Reflected in the Project Design ................................................ 18
IV. IMPLEMENTATION .....................................................................................................20
A. Institutional and Implementation Arrangements ........................................................ 20
B. Results Monitoring and Evaluation ............................................................................ 21
C. Sustainability............................................................................................................... 21
V. KEY RISKS AND MITIGATION MEASURES ..........................................................22
A. Risk Ratings Summary Table ..................................................................................... 22
B. Overall Risk Rating Explanation ................................................................................ 24
VI. APPRAISAL SUMMARY ..............................................................................................24
A. Economic Benefits and Costs ..................................................................................... 24
B. Financial Management, Procurement and Safeguards Issues ..................................... 24
Annex 2: Detailed Project Description .......................................................................................30
Annex 3: Implementation Arrangements ..................................................................................33
A. Financial Management Arrangements ........................................................................ 34
B. Disbursement Arrangements ....................................................................................... 35
C. Procurement Arrangements ........................................................................................ 35
D. Environmental and Social safeguards arrangements .................................................. 37
E. Monitoring & Evaluation ............................................................................................ 37
F. Role of Partners........................................................................................................... 38
Annex 4: Memorandum of Understanding between the World Bank and ABS ....................39
Annex 5: Detailed Cost Table .....................................................................................................44
DATA SHEET
Philippines
Philippines Wealth Accounting and Valuation of Ecosystem Services Recipient-Executed Trust Fund
Small RETF Grant Project Paper
.
East Asia and Pacific Region
EASPS
.
Basic Information
Date: November 6, 2014 Sectors: Other Mining and Extractive Industries (50%), Forestry (20%),
General public administration sector (20%)
Country Director: Motoo Konishi Themes: Economic statistics, modeling and forecasting (70%), Climate
change (10%), Environmental policies and institutions (10%),
Land administration and management (10%)
Sector Manager/Director: Ousmane Dione / John A.
Roome
EA Category: B
Project ID: P146075
Instrument: Lending TA
Team Leader(s): Stefanie Sieber
.
Recipient: Department of Finance
Executing Agency: National Statistical Coordination Board
Contact: Jose Ramon G. Albert Title: Secretary General
Telephone No.: (632) 895-2767 Email: [email protected]
.
Project Implementation Period: Start Date: 01/27/2014 End Date: 12/31/2015
Expected Effectiveness Date: 01/27/2013
Expected Closing Date: 12/31/2015
.
Project Financing Data(US$M)
[ ] Loan [X] Grant [ ] Other
[ ] Credit [ ] Guarantee
For Loans/Credits/Others
Total Project Cost : 0.7 Total Bank Financing : 0.7
Total Cofinancing : Financing Gap :
.
Financing Source Amount(US$M)
BORROWER/RECIPIENT
IBRD
IDA: New
IDA: Recommitted
Others 0.7
Financing Gap
Total 0.7
.
Expected Disbursements (in USD Million)
Fiscal Year 2014 2015 2016
Annual 0.2 0.3 0.2
Cumulative 0.2 0.5 0.7
.
Project Development Objective(s)
The objective of the Philippine Wealth Accounting and Valuation of Ecosystems Recipient-executed Trust Fund (Phil-WAVES RETF)is to
support institutionalization of selected modules of the System of Environmental-Economic Accounting (SEEA) 2012.
.
Components
Component Name Cost (USD Millions)
Development of macroeconomic indicators based on WB methodology 0.01
Development of physical and monetary accounts for minerals and mangroves based
on the UN’s 2012 SEEA.
0.07
Capacity building for the institutionalization of the selected SEEA modules 0.45
Project Oversight and Management 0.17
.
Compliance
Policy
Does the project depart from the CPS in content or in other significant respects? Yes [ X ] No [ ]
.
Does the project require any exceptions from Bank policies? Yes [ ] No [ X ]
Have these been approved by Bank management? Yes [ ] No [ X ]
Is approval for any policy exception sought from the Board? Yes [ ] No [ X ]
Does the project meet the Regional criteria for readiness for implementation? Yes [ X ] No [ ]
.
Safeguard Policies Triggered by the Project Yes No
Environmental Assessment OP/BP 4.01 X
Natural Habitats OP/BP 4.04 X
Forests OP/BP 4.36 X
Pest Management OP 4.09 X
Physical Cultural Resources OP/BP 4.11 X
Indigenous Peoples OP/BP 4.10 X
Involuntary Resettlement OP/BP 4.12 X
Safety of Dams OP/BP 4.37 X
Projects on International Waters OP/BP 7.50 X
Projects in Disputed Areas OP/BP 7.60 X
.
Legal Covenants
Name Recurrent Due Date Frequency
Description of Covenant
The Recipient shall prepare Project Reports in accordance with Section 2.06 of Standard Conditions and
on the basis of indicators acceptable to the World Bank. Each Project Report shall cover the period of
one (1) calendar semester, and shall be furnished to the World Bank not later than forty-five (45) days
after the end of the period covered.
The Recipient shall prepare the Completion Report in accordance with the provisions of Section 2.06 of
the Standard Conditions. The Completion Report shall be furnished to the World Bank not later than six
(6) months after the Closing Date.
The Recipient shall furnish to the World Bank the interim unaudited financial reports as part of the
Project Report not later than forty-five days after the end of each calendar semester.
The Recipient shall have its Financial Statements audited in accordance with the provisions of Section
2.07(b) of the Standard Conditions. Each such audit of the Financial Statements shall cover the period of
one fiscal year of the Recipient. The audited Financial Statements for each such period shall be furnished
to the World Bank not later than six (6) months after the end of such period.
No withdrawals shall be made prior to the countersignature of the Grant Agreement.
.
Team Composition
Bank Staff
Name Title Specialization Unit UPI
Stefanie Sieber Environmental Economist Task-Team Leader EASER 364876
Maya Gabriela Q. Villaluz Senior Operations Officer Co-Task-Team Leader EASPS 207949
Christophe Crepin Sector Leader Sector Leader Environment EASER 175113
Cecilia D. Vales Lead Procurement Specialist Lead Procurement Specialist EASR1 112632
Juanito Gomez III Consultant Procurement Specialist EASR1 368038
Tomas JR. Sta.Maria Financial Management
Specialist
Financial Management Specialist EASFM 321127
Vidya Narasimhan Finance Officer Finance Officer CTRLN 255977
Victoria Florian S. Lazaro Operations Officer Social Safeguards Specialist EASPS 302062
Danielle Malek Roosa Senior Counsel Senior Council LEGES 289007
Brenda Morata Legal Analyst Legal Analyst LEGES 22294
Glenn-Marie Lange Senior Environmental
Economist
Senior Environmental Economist AES 202797
Sofia Elisabet Ahlroth Senior Environmental
Economist
Senior Environmental Economist AES 452110
Kai-AlexanderKaiser Senior Economist Senior Economist EASPP 224729
David Llorico Llorito Communications Officer Communications Officer EAPXT 338576
Sonu Jain Communications Officer Communications Officer AES 360799
Ngozi Blessing Obi Malife Program Assistant Program Assistant EASER 246355
Mildren H. Penales Program Assistant Program Assistant EACPF 359435
Elisea Gozun Consultant Institutional Specialist EASPS 65453
Ana Theresa Potenciano Santos Consultant Communications Officer EASPS 457038
Paul D. Mitchell Consultant Senior Communications Officer EASPS 88474
Non Bank Staff
Name Title Office Phone City
John Power Centre of Environment
Statistics, Environment
Statistics and Integration
Branch, Australian Bureau of
Statistics
+61 (0) 2 6252 6205 Canberra
.
Locations
Country First Administrative
Division
Location Planned Actual Comments
Philippines All Areas All Areas All areas The project will develop national
accounts for minerals and
mangroves and macroeconomic indicators
.
10
I. STRATEGIC CONTEXT
A. Country Context
1. Ecosystems are deteriorating worldwide and with them the capacity to support human
well-being; a problem that is exacerbated by climate change and threatens to undermine the
achievement of the World Bank’s strategic twin objectives of reducing extreme poverty and
increasing shared prosperity. Part of the solution lies in policy making that takes into account the
full value of natural capital – i.e. agricultural land, minerals, energy, forests, fisheries, and water
– and the associated ecosystem services, including air and water filtration, flood protection,
carbon storage, pollination for crops, and habitat for fisheries and wildlife. To achieve this,
ecosystem valuation activities are increasingly focused on ‘greening’ national income accounts.
National income accounts are crucial because they constitute the primary source of information
about the economy and are widely used for assessments of economic performance and policy
analysis.
2. The objective of the Global Partnership Program (GPP) on Wealth Accounting and
Valuation of Ecosystem Services (WAVES) is to promote sustainable development worldwide
through the implementation of wealth accounting that focuses on the value of natural capital and
on integrating Natural Capital Accounting (NCA) in development planning and policy analysis.
In particular, WAVES will: (i) implement NCA based on the UN’s 2012 System of
Environmental-Economic Accounting (SEEA) in 6-10 developing and developed countries; (ii)
incorporate natural capital accounts in development planning and policy analysis; (iii) develop
internationally accepted, standardized guidelines for ecosystem accounting; and (iv) establish a
partnership to promote widespread adoption of NCA beyond the core implementing countries.
WAVES is a trust funded partnership, which is managed by the World Bank in partnership with
the United Nations Environment Programme (UNEP), interested developing and developed
countries, NGOs and other organizations.
3. Past attempts to institutionalize NCA – both globally and in the Philippines – have often
failed due to the lack of a clear policy link, disagreements on methodology, lack of global
leadership as well as limited capacity and resources. The WAVES GPP tries to tackle these
issues by (i) helping countries adopt and implement NC accounts that are relevant for their
policy priorities; (ii) using a universally accepted standard – SEEA 2012 – for NCA and
establishing a partnership to develop methodologies for ecosystem accounting; (iii) using the
convening power of the World Bank to rebuild a consensus; and (iv) building capacity.
4. The Philippines was identified as one of the core implementing countries for WAVES,
because: (i) there is a high Government demand for indicators, tools and methodologies that will
help determine the sustainable use of natural resources and inform development planning and
policy analysis; (ii) a more sustainable use of natural resources could potentially have a large
impact on the poor and thus economic growth, as the most vulnerable groups of society – the
rural poor, indigenous peoples (IPs) and women – disproportionately depend on natural
resources for their livelihood and as an insurance against income shocks; and (iii) the
Government of the Philippines (GoP) has a high latent capacity in NCA from previous
initiatives, while academic and private organizations have the necessary skills for ecosystems
accounting.
11
5. The implementation of NCA in the Philippines is well-timed. The new political
leadership emphasizes governance reforms that include transparent and science-based decision-
making, while pursuing sustainable, inclusive, pro-poor and resilient growth. Approaches such as
NCA, market-based instruments, environmental valuation and payments for ecosystem services,
which are mentioned in the Philippine Development Plan (PDP) and the National Climate
Change Action Plan (NCCAP), would be facilitated by the regular production of selected SEEA
modules. Indicators derived from NC accounts would also provide a transparent tool to inform
decision making and improve governance; a stated goal in the Government’s Social Contract.
6. The Philippine Wealth Accounting and Valuation of Ecosystems (Phil-WAVES)
technical assistance (TA) is funded out of the WAVES multi-donor trust fund, comprising both
recipient and bank-executed activities. The Phil-WAVES recipient-executed trust fund (RETF,
P146075, US$0.7 million), the objective of this project paper, is being set up at the explicit
request of the Government to support the institutionalization of the selected SEEA modules. It
will focus on capacity building and on generating data and indicators for key natural resources.
The Phil-WAVES Bank-executed Trust Fund (BETF, P133810, US$0.8 million), on the other
hand, will focus on the policy analysis at both the national and the local level of the generated
data and compile two ecosystem accounts for Southern Palawan and the Laguna Lake basin. The
Phil-BETF has already been set up with the concept note approved by management on February
7, 2013.
B. Sectoral and Institutional Context
7. The PDP recognizes the importance of natural capital for reaching the twin objectives of
reducing extreme poverty and increasing shared prosperity. Initial estimates suggest that NC
accounts for about one third of the Philippines’s total wealth (World Bank, 2006). Agricultural
land accounts for the highest proportion followed by forest land and timber, minerals and
protected areas. Agriculture, forestry and fisheries also account for 18.4 percent of GDP and a
third of employment in the Philippines in 2011, providing an important livelihood for many
Filipinos. However, the poverty incidence in these sectors is high, reaching 27.9 percent in 2009
(NSCB, 2012). Sustainable management of these resources is thus critical to ensure that growth
is pro-poor and inclusive.
8. In addition, the country’s environment and natural resources are deteriorating, a trend
exacerbated by strong demographic and economic pressures. Problems include low agricultural
productivity and food insecurity due to conversion of agriculture land to other uses, limited
irrigation and extensive land degradation. The country’s forest resources are also increasingly
threatened by wood gathering, slash-and-burn practices, upland agricultural cultivation, illegal
logging and a growing poor rural population. Despite being one of the most marine biodiversity
rich countries, unsustainable management of fisheries is causing severe development challenges.
Furthermore, rapid population increase, urbanization, economic growth and high levels of
pollution are causing water stress in major urban centers and shortages during the dry season.
9. Another key challenge is the management of the small but contentious mining sector,
which has large growth potential. The Philippines is rich in mineral resources with about 30
percent of its land area considered having high mineral potential, yet its contribution to GDP is
less than 2 percent. Therefore, questions are frequently being raised about the benefits of the
12
country from the mining industry, including from the collection of taxes and royalties as well as
the sharing of benefits with IPs and local communities. In addition to land and resource use
conflicts, environmental and social costs to local communities as well as high levels of poverty
and health costs in the small scale mining sector are often considered to be much greater than the
financial returns.
10. Lastly, the Philippines is among the top global disaster hotspots and is exposed to a wide
range of natural hazards, whose intensity will be further exacerbated by changes in global
climate with economy wide impacts. The country is prone to earthquakes, volcanic eruptions,
along with the tropical storms and floods. Over the last five years, the Philippines have
experienced severe weather events that resulted in considerable damages and losses with the
poor often disproportionately affected. The intensity of these weather-induced disasters is
expected to increase even further with time, while sea level rise of up to 30 cm by 2050 pose a
direct risk to a large share of the population living along coastal areas. Substantial warming of
more than 4°C that could occur by as early as 2060 by recent projections would exacerbate these
risks even further. Particularly vulnerable to a great range of climate change impacts in the
Philippines are agriculture, water resources, coastal ecosystems and infrastructure, which will in
turn disproportionately affect the poor and vulnerable groups of society.
11. During the feasibility phase, this broad range of policy issues was extensively discussed
with key stakeholders led by National Economic and Development Authority (NEDA), National
Statistical Coordination Board (NSCB), Department of Environment and Natural Resources
(DENR), Laguna Lake Development Authority (LLDA), Department of Agriculture (DA) and
academic and research institutions at various stages of the preparation and finalization of the
feasibility studies. The draft results of the feasibility studies were presented to the stakeholders to
solicit their comments and further enhance its recommendations for the next phase.
12. Out of this long list of potential policy issues, minerals, mangroves and water resources
were prioritized for Phil-WAVES. The main reasons for this selection are (i) urgency for policy
inputs; (ii) potential of high impacts on poverty and economic growth; and (iii) complementarity
with other World Bank, GoP and development partner initiatives.
(a) Minerals were prioritized, because there is a strong demand from the NEDA,
Department of Finance (DOF), DENR and the Climate Change Commission (CCC)
to develop tools and indicators for sustainably managing mineral resources. In fact,
Executive Order 79 on institutionalizing and reforming the Philippine mining sector
refers to WAVES as a significant tool for conducting resource accounting and cost-
benefit analyses. This is necessary at both the national and regional level to evaluate
not only possible revenue and benefit sharing arrangements but also the potentially
large environmental, health and social costs associated with mining. Southern
Palawan was selected as a case study for ecosystem accounts, since it is an area
known for its rich biodiversity and protected areas, but also the many conflicting and
overlapping land claims of its different users and uses (e.g. mineral extraction,
forests, industrial plantations for palm oil and rubber, protected areas, and ancestral
domain of IPs).
13
(b) Mangroves were prioritized, as they provide a wide range of ecosystem services
closely linked to key GoP priorities of higher economic growth and climate change
resilience, in particular provisioning as well as shoreline and storm surge protection
services. Mangrove reforestation has long been a policy priority though survival
rates have often been low. Given the urgency to accelerate the application of climate
change adaptation and disaster risk management tools a careful analysis of the role
mangroves play in enhancing resilience as well as incomes will be essential.
(c) Water accounts cannot be constructed at the national level due to their complexity
and limited budget resources under Phil-WAVES, but Laguna Lake basin was
selected as a case study for ecosystem accounts at the request of the LLDA. The
basin provides many ecosystem services, including habitat for capture and culture
fisheries, drainage of a highly urbanized watershed and flood control, whilst being
exposed to pollution and potential water demand from Metro Manila. Any
sustainable management of this highly human-impacted basin will need to take into
consideration a comprehensive valuation of ecosystem services.
13. The capacity and institutional assessment concluded that the necessary legal and policy
framework, government ownership and capacity to institutionalize SEEA are in place.
Furthermore, past initiatives led by both NSCB and DENR have introduced the concepts
underlying WAVES and have thus laid the institutional foundation for its implementation.
Resource valuation is also a priority in the PDP and NCCAP, which explicitly call for a proper
valuation of natural resources as a tool for science-based development planning and policy
decisions as well as climate change adaptation. The lead agency – NEDA – will be in a good
position to advocate for the adoption and institutionalization of WAVES with support from other
government agencies, NGOs and the private sector, because it is primarily responsible for the
country’s development blueprint.
14. However, given that past NCA initiatives could not be continued to due to a lack of
capacity and resources, NSCB has explicitly requested the Phil-WAVES TA to support the
institutionalization of the selected SEEA modules. For this reason this project will set up the
Phil-WAVES RETF to support in-house capacity building at the NSCB. This will involve hiring
four technical staff that will be in charge of compiling the NC accounts. Their salaries and terms
of employment will be similar to other NSCB staff, thus helping to facilitate their integration into
Government staff once the project closes. In addition to the data and indicator generation, the
NSCB will also lead training activities and supporting studies for the SEEA 2012
implementation, drawing on local resources where possible. Additional TA will be provided by
the Australian Bureau of Statistics (ABS) through Australian Agency for International
Development (AusAID) financing.1
1 A memorandum of understanding has been signed between ABS and the WAVES GPP on August 28 describing the
ABS/AusAID support to the Asia-Pacific region under WAVES (funds have already been transferred from AusAID to ABS).
Country-level support will be provided to Indonesia, the Philippines and Vietnam for three years, involving (i) two trips per year
to provide hands-on training and technical support, (ii) remote follow-up support, (iii) participation of two Government
representatives at the annual training course on environmental accounting at the Australian National University (ANU). Since the
other two countries to be supported - Indonesia and Vietnam - are still in the preparation stage, more support was allocated to the
Philippines this fiscal year (until June 2014), involving three trips with planned training sessions on minerals accounts and
ecosystem accounts and the participation of eight Government staff at the ABS-ANU training course.
14
15. Ownership of the initiative will also be built broadly from the start, engaging all the key
GoP agencies. For example, the chair and vice chair of the Steering Committee are from NEDA
and the Department of Budget and Management (DBM) respectively and a country coordinator
and assistant will be hired through the RETF to assist with inter-agency coordination and
collaboration. The Phil-WAVES RETF will also be complemented by the Phil-WAVES BETF
(P133810), which is financing the associated policy analysis at the national and local level. This
will include the policy analysis of the generated data and indicators and the compilation of two
ecosystem accounts for Southern Palawan and the Laguna Lake Basin. The latter will not be
implemented by NSCB, since not international agreed methodology currently exists for
ecosystem accounting.
16. To further support institutionalization, the Phil-WAVES TA will also: (i) provide training
for Government staff and other key stakeholders; (ii) establish an active collaboration with local
academe, the private sector, NGOs and civil society to build capacity more broadly; (iii)
introduce Key Performance Indicators (KPIs) in medium- and long-term development plans and
the Organizational Performance Indicator Framework (OPIF); (iv) synchronize project activities
with the long-term planning processes of NEDA, DOF, DBM and relevant statistical and sector
agencies; and (v) use existing institutional mechanisms where possible, including interagency
committees and technical working groups.
C. Higher Level Objectives to which the Project Contributes
17. In the higher-level strategic context, the project contributes to the achievement of the
seventh Millennium Development Goal to “ensure environmental sustainability”. In particular, it
will contribute to target 7.A to “integrate the principles of sustainable development into country
policies and programmes and reverse the loss of environmental resources” by providing quality
data on the current state of natural capital in the Philippines using an internationally accepted
methodology. The policy analysis supported by the Phil-WAVES BETF will furthermore help
inform development planning and policy analysis on the sustainable use of key natural resources.
18. The project is also consistent with the new Country Partnership Strategy (CPS), which is
currently being developed for endorsement by the Board in FY14. The team has ensured
coherence of Phil-WAVES with the selected objectives of the new CPS. In particular, the work
under the Phil-WAVES RETF is most closely linked to Engagement Area 5 “Environmental
Sustainability, Climate Change and Disaster Risk Reduction and Management”, which supports
the Government in implementing climate change action, disaster risk reduction and environment
management and in ensuring that the necessary reforms and capacity are in place. Quality data
on physical, human and natural capital as well as the use of an internationally accepted standard
will be essential to achieve this objective. In particular, the Phil-WAVES RETF will support the
operationalization of the PDP in terms of developing indicators on sustainable and inclusive
growth as well as the institutionalization of selected SEEA modules.
15
II. PROJECT DEVELOPMENT OBJECTIVES
A. PDO
19. The objective of the Philippine Wealth Accounting and Valuation of Ecosystems
Recipient-executed Trust Fund (Phil-WAVES RETF) is to support institutionalization of selected
modules of the System of Environmental-Economic Accounting (SEEA) 2012.
Project Beneficiaries
20. The primary project beneficiary of the Phil-WAVES RETF is the NSCB, which will
receive financial and capacity building support for the compilation of natural capital accounts in
priority sectors. NEDA will also receive project management support through the country
coordinator and his/her assistant to ensure effective interagency coordination and collaboration.
21. The secondary beneficiary group includes the other major statistical agencies of the
Philippine Statistical System (PSS), namely, the National Statistics Office (NSO) and Bureau of
Agricultural Statistics (BAS), as well as sector agencies, such as DENR and DA. Moreover,
academia, other development partners, the private sector and NGO will also benefit from the
project, as they are in charge of compiling, generating and processing data from surveys and
other primary sources and make them available to the public.
PDO Level Results Indicators
22. The results framework for the Phil-WAVES TA builds on the monitoring and evaluation
framework of the WAVES GPP for country level reporting. These indicators have been modified
for the Philippine country context and are highlighted below.
23. The PDO level results indicators are:
(a) Functioning system for the regular compilation of selected modules of System of
Environmental-Economic Accounting (SEEA). (WAVES GPP indicator)
24. The key intermediate results indicators of the project are:
(a) Macroeconomic indicators based on NCA compiled regularly. (WAVES GPP
indicator)
(b) Asset accounts for mineral resources compiled regularly. (WAVES GPP indicator)
(c) Flow accounts for mineral resources compiled regularly. (WAVES GPP indicator)
(d) Asset accounts for mangroves compiled regularly. (WAVES GPP indicator; after
mid-term review)
(e) Flow accounts for mangroves compiled regularly. (WAVES GPP indicator; after
mid-term review)
16
(f) Selected NSCB and Government staff trained to compile and maintain natural
capital accounts.
(g) Regular Steering Committee meetings organized.
(h) Capacitated Procurement Support Unit established and maintained.
III. PROJECT DESCRIPTION
A. Project Components
Description
25. The Philippines is one of the core implementing countries in the WAVES GPP, which
promotes the implementation and institutionalization of NCA in 6-10 developing and developed
countries over a five year period. The objective of the Phil-WAVES TA is to inform
development planning and policy analysis on the sustainable use of key natural resources. It
includes both recipient and bank-executed activities that will complement and mutually reinforce
each other.
26. The activities financed under the Phil-WAVES RETF (P146075, US$ 0.7 million) will
generate the data and indicators necessary to inform development planning and policy analysis
on the sustainable use of key natural resources and will support institutionalization of the
selected SEEA modules. In particular, this will be achieved by: (i) developing macroeconomic
indicators that account for natural capital values; (ii) developing national accounts for prioritized
natural resources – minerals and mangroves – based on the UN’s 2012 SEEA; and (iii) building
capacity for institutionalization of the selected SEEA modules.
27. This work will be complemented by activities financed under the Phil-WAVES BETF
(P133810, US$ 0.8 million), which will focus on policy analysis at the national and local level.
This will be achieved by (i) analyzing the macroeconomic indicators to measure the
sustainability of economic development, (ii) analyzing the data and indicators generated by the
selected SEEA modules to study the impact of different natural resource management and
revenue sharing scenarios on income and economic development; and (iii) developing and
constructing ecosystem accounts for Southern Palawan and the Laguna Lake basin and analyzing
the trade-offs associated with different resource and ecosystem use scenarios.
28. The below describes in more detail the activities to be financed under the Phil-WAVES
RETF:
Component 1. Development of macroeconomic indicators based on WB methodology (US$
0.01 million).
29. The Economic Statistics Office (ESO) of NSCB will lead the development of the
macroeconomic indicators, using the WB methodology for computing adjusted net investment
(ANI), adjusted net savings (ANS) and comprehensive wealth (World Bank 2006). This activity
will build on existing WB estimates, which will be further refined through the compilation of the
selected SEEA modules, in particular the mineral NC account. During this process, NSCB (ESO)
17
will provide feedback and advice to the source agencies on data requirements and quality. NSCB
(ESO) will also identify the training needs of the statistical and source agencies.
30. The component will finance consultants, travel, workshops, training, and data collection
and dissemination.
Component 2. Development of physical and monetary accounts for minerals and
mangroves based on the UN’s 2012 SEEA (US$ 0.07 million).
31. Given resource and staff constraints at NSCB, a phased approach will be adopted in the
implementation of the NC accounts. As minerals are a GoP priority, the minerals accounts will
be constructed in the first two years, followed by mangroves accounts in the last two years of
project implementation.
32. NSCB (ESO) will lead the development of individual NC accounts based on the SEEA
2012 to construct, update and refine the physical and monetary accounts. Each activity will start
out with an initial evaluation of existing data against the SEEA methodology, which will identify
data and quality gaps that will be resolved in subsequent years. The NSCB (ESO) will be advised
by the technical working groups (TWGs) of Interagency Committee on Environment and Natural
Resources Statistics (IAC-ENRS) and Interagency Committee on Agriculture and Fishery
Statistics(IAC-AFS), who will oversee the generation of data and indicators, provide guidance,
assure quality and coordinate between GoP agencies. The construction of the NC accounts will
also be supported by special studies to support SEEA implementation as well as training and TA
provided by ABS/AusAID. NSCB (ESO) will also be in charge of leading the dialogue with the
source agencies on data requirements and quality and will identify the training needs of the
statistical and source agencies.
33. The component will finance consultants, travel, workshops, training, and data collection
and dissemination.
Component 3: Capacity building for the institutionalization of the selected SEEA modules
(US$ 0.45 million).
34. The objective of the training component is to build capacity for the institutionalization of
the selected SEEA modules primarily in the Philippine government agencies. Four technical staff
will be hired to support SEEA implementation. In addition, NSCB (ESO) will identify the
training needs in the PSS and the associated data providers. Training will be provided with the
technical support from ABS/AusAID and will focus on the methodologies and components of
SEEA; data collection, survey as well as data storage and management skills (to be determined).
35. A Mid-term Review (MTR) for components 1-3 is planned at the beginning of the third
year of implementation to review the delivered products and assess the work plan to finalize the
task by June 2016. At that time, the update and refinement of the physical and monetary accounts
for minerals will have been completed. A detailed draft work plan for the remaining two years
will also be prepared for the MTR, including the update and refinement of the physical and
monetary accounts for mangroves. The MTR will thus provide guidance on the quality of the
completed work and scope, objective and methodology for the proposed work plan.
18
36. The component will finance consultants, travel, workshops, training, data collection and
dissemination, and computer equipment.
Component 4: Project Oversight and Management (US$ 0.17 million).
37. NEDA will lead Phil-WAVES through the Phil-WAVES Steering Committee (PWSC),
which will provide the overall guidance and strategic direction, by (i) facilitating implementation
and serving as PWSC Secretariat; (ii) reviewing work plans, progress reports and findings for the
PWSC approval; and (iii) monitoring the project progress and reporting regularly to the PWSC,
WB and WAVES GPP. NEDA will be supported by a country coordinator and his/her assistant
to be hired through the Phil-WAVES RETF. NEDA has oversight responsibility over NSCB,
with NEDA Director General mandated by law as the Chairman of the NSCB Board.
38. The component will finance consultants, travel, communication and limited office
equipment and supplies.
B. Project Financing
Instrument
39. The Phil-WAVES RETF will be financed by grant funds in the amount of US$ 0.7
million under the multi-donor trust fund of the WAVES GPP. A summary of project costs is
provided in the table below. The activities under the RETF are complemented and supported by
the Phil-WAVES BETF (P133910), which is financed by grant funds in the amount of US$ 0.8
million also under the multi-donor trust fund of the WAVES GPP. A detailed cost table is
provided in Annex 5.
Project Cost and Financing
Project Components Project cost
US$ million
Grant Financing
US$ million % Financing
1. Development of macroeconomic indicators based on WB methodology
2. Development of physical and monetary accounts for minerals and
mangroves based on the UN’s 2012 SEEA 3. Capacity building for the institutionalization of the selected SEEA modules
4. Project Oversight and Management
Total Baseline Costs
Physical contingencies
Price contingencies
0.01
0.07
0.45
0.17
0.7
0
0
0.01
0.07
0.45
0.17
0.7
100%
100%
100%
100%
100%
Total Project Costs Interest During Implementation
Front-End Fees
Total Financing Required
0.7 N/A
N/A
0.7
0.7
0.7
100% N/A
N/A
100%
C. Lessons Learned and Reflected in the Project Design
40. The project builds on the lessons learned from the past NCA initiatives in the Philippines:
(i)the Environmental and Natural Resources Accounting Project (ENRAP) led by DENR from
19
1991-2000 and funded by USAID2 and (ii)the Integrated Environmental Management for
Sustainable Development (IEMSD) programme, which included a subprogram on Environmental
and Natural Resource Accounting (ENRA) that wasled by NSCB from 1995-2001 and funded by
the United Nations Development Programme (UNDP)3.
41. The main lessons learned include:
(a) Interagency coordination: Strong coordination among Government agencies was
critical for success in compiling asset and economic accounts at the national,
regional and provincial level. The institutional arrangement included a steering
committee representing as well as interagency committees and TWGs.
(b) Competing frameworks: Confusion was created by the parallel implementation of
two frameworks: the Peskin approach under ENRAP and the SEEA approach under
ENRA. This created competition between the two implementers, who however
managed to collaborate well on data collection and processing
(c) Institutionalization: Project activities could only be sustained in a limited manner
after project closure due to a lack of funds and broad Government ownership.
42. The project has integrated these lessons into the project design in the following manner:
(a) Interagency coordination: The institutional arrangement of the Phil-WAVES TA
will involve a steering committee made up of all the key Government agencies,
including NEDA, DBM, DOF, NSCB and the sector agencies. The project will also
build on existing multi-stakeholder and interagency committees and working groups
where possible and avoid setting up parallel structures.
(b) Competing frameworks: The project will support the implementation of the UN’s
2012 SEEA central framework, which is an internationally accepted standard.
(c) Institutionalization: To support in-house capacity building the project will finance
the hiring of four technical staff that will be based at the NSCB and be in charge of
compiling the selected SEEA modules. Their salaries and terms of employment will
be similar to other NSCB staff, thus helping to facilitate their integration into
Government staff once the project closes. Extensive training for Government staff
and other key stakeholders will also be provided with the support of the
ABS/AusAID, including hands-on training and study tours. The early development
of a strategic communications plan will further help build broad-based Government
2 Under the ENRAP, the DENR took the lead in integrating data from various agencies and generated Philippine asset accounts,
e.g. for forest resources and pollution. It also addressed the formulation of economic instruments for supporting environmental
policy objectives. After project completion, fiduciary limitations led to a hiatus in the project. However, the application of NCA
principles has been continued by various government and NGOs which have conducted site specific total economic valuation
(TEV) studies on natural resources and environment services. The Palawan Council for Sustainable Development (PCSD), for
example, has conducted TEV studies on the Mount Matalinhagan mountain range in Southern Palawan. 3 In 1998, with funding from the UNDP, the NSCB began the implementation of the UN 1993 SEEA framework as a pilot
program. Under this project, physical and monetary environment accounts were compiled, e.g. for agriculture, fishery and
forestry, manufacturing, mining, electricity generation and transport services for 1988-1994 together with a series of studies.
However, due to budget limitations and lack of funding, NCA has only been implemented minimally over the last 10 years.
20
ownership as well as the active engagement of all key Government agencies from
the start.
IV. IMPLEMENTATION
A. Institutional and Implementation Arrangements
43. Institutional arrangements. The project will be implemented by the NSCB on the basis
of an agreed work program and be monitored through Project progress reports prepared every six
months. To ensure prompt and smooth implementation and support institutionalization, the
following arrangements have been made. Further details are provided in Annex 3.
(a) Steering Committee. The PWSC is composed of the NEDA (chair), DBM (vice-
chair), DOF, NSCB, DENR, DA, CCC, Office of the Presidential Adviser for
Environmental Protection (OPAEP) and the Union of Local Authorities of the
Philippines (ULAP). The PWSC was convened for the first time on July 26, 2013.
(b) Lead Agency. NEDA will lead the Phil-WAVES TA by organizing and chairing the
PWSC with the support of the National Planning and Policy Staff (NPPS) to serve as
secretariat for the PWSC. The secretariat will be supported by a country coordinator
and his/her assistant to be hired under the Phil-WAVES RETF to ensure effective
interagency coordination and collaboration.
(c) Implementation of SEEA 2012: The NSCB(ESO) will be responsible for (i)
implementing SEEA by constructing both the macroeconomic indicators and NC
accounts and (ii) leading the learning among the statistical and source agencies. The
SEEA implementation will be supported by four technical staff to be hired under the
Phil-WAVES RETF and the TWG of IAC-ENRS and IAC-AFS.
44. Financial Management Arrangements. Financial Management (FM) matters will be
handled by the Budgeting, Accounting and Cashiering Units under the Administrative Services
Division led by its Chief. The project will maintain separate books of accounts to facilitate the
preparation of the financial reports. The project will also use the National Government
Accounting System chart of accounts prescribed by the Commission on Audit (COA).
Transactions will be summarized through the use of excel spreadsheets. The processing of
financial transactions from budgeting, disbursements, accounting and financial reporting will be
mainstreamed. The approval process of project transactions will follow the Agency’s level of
authority. Further details of the FM Implementation Arrangements are in Annex 3.
45. Procurement arrangements. The procuring entity shall be the NSCB with its Bids and
Awards Committee (BAC) as the body responsible for handling all procurement required for the
Project. The Procurement Unit as created under Special Order No. 138-A13 issued on October
28, 2013 will be the support implementing unit of the BAC. The BAC and the Procurement Unit
will follow the administrative processes, including keeping of records and documents, approving
authority, contract preparation and implementation as prescribed by the Generic Procurement
Manual (GPM) that was harmonized with the ADB, JBIC (now JICA) and the WB. The GPM’s
Volumes 1 (System and Organization) and 2 (Procurement of Goods and Services) l forms part
21
of the project’s operations manual and attached as Annex 3 and 4 thereof. The following
procurement arrangements will be made (for more details see Annex 3):
(a) All goods and non-consulting services requirement for the Project and to be financed
out of the proceeds of the Grant shall be procured in accordance with the
requirements set forth in “Guidelines: Procurement under IBRD Loans and IDA
Credits” dated January 2011. They will be conducted following Shopping and Direct
Contracting methods under Sections 3.5 and 3.6 of the Guidelines respectively.
(b) All consulting services requirement for the Project and to be financed out of the
proceeds of the Grant shall be procured in accordance with the requirements set
forth in “Guidelines: Selection and Employment of Consultants under IBRD Loans
and IDA Credits and Grants by World Bank Borrowers” published by the World
Bank in January 2011.
(c) Particular methods for the procurement of Consultants’ Services are: (i) Quality and
Cost Based Selection, (ii) Selection based on Consultants Qualification; (iii) Fixed
Budget Selection; (iv) Single Source Selection; (v) Individual Selection; and (vi)
Individual Selection Sole Source.
(d) The procurement plan (PP) will be prepared by the Procurement Unit and submitted
to the BAC, which will then submit officially to the Secretary General of NSCB
regularly on annual basis, and will be revised as the need arises. It shall set forth the
contracts that will be subject to prior review. All other contracts are subject to post
review.
(e) Monitoring of the PP will be the responsibility of the Procurement Unit and the
BAC. The PP will indicate which procurement has been completed. Monitoring of
the performance of the procurement system will use the Agency Procurement
Compliance and Performance Indicator (APCPI) system of the Government.
B. Results Monitoring and Evaluation
46. Achievement of the project development objective will be measured by the monitoring
indicators specified in the Results Framework and Monitoring Table in Annex 1. The country
coordinator will be responsible for submitting quarterly reports on the progress of achieving
intermediate results. In addition, he/she will report progress toward the achievement of the
project development objectives on a six-monthly basis and at the end of the project
implementation period.
C. Sustainability
47. The capacity and institutional assessment conducted during the feasibility stage of the
Phil-WAVES TA concluded that the time is right to support NCA in the Philippines (Jensen,
2012). Different to past initiatives, the probability of sustaining the activities financed under
Phil-WAVES TA is high because: (i) the legal and policy framework for NCA is already in
place, (ii) the concept is not new and the Philippines has the institutional foundation to
implement WAVES, (iii) resource valuation is a priority in the PDP, (iv) there is a lead agency
22
that can advocate for the adoption and institutionalization of SEEA, (v) the project is not
considered by the Government as a WB “imposed” activity due to the extensive consultations
during the feasibility stage, (vi) increasing GoP concerns about climate change, and (vii) the
implementing mechanism will build on existing technical and advisory committees and TWG.
48. The NSCB was created under Executive Order No. 121 issued on January 30, 1987;
hence, it has been in existence for 26 years. However, the Philippine Statistical Act of 2013
proposes to integrate NSCB, NSO, BAS and Bureau of Labor and Employment Statistics
(BLES) into the Philippine Statistical Agency (PSA). The PSA was signed into law by the
President on September 12, 2013. It will be the highest policy-making body on statistical matters
and will be primarily responsible for all national censuses and surveys, sectoral statistics,
consolidation of selected administrative recording systems and compilation of the national
accounts once the bill is enacted into law. It is expected that the Implementing Rules and
Regulations will be drawn up not later than the second half of 2014. NEDA as the mother agency
of NSCB and lead agency of the Phil-WAVES TA, has given its written commitment to the
continuous operation and completion of the TA despite the possible reorganization of the NSCB.
V. KEY RISKS AND MITIGATION MEASURES
A. Risk Ratings Summary Table
Risk Rating Mitigation measures
Stakeholder Risk - M The proposed mitigations measures include (i) using and
experienced local team under the supervision of the respective
GoP departments to maintain an active dialogue with senior and
technical GoP counterparts and other key stakeholders; (ii)
ensuring that the schedule for the data collection, processing and
submission of the data by NSCB is in sync with the GoP
development planning, programming, and budgeting cycles and
processes; (iii) demonstrating benefits of the project to policy
makers and producing preliminary results without compromising
quality; (iv) carrying out a stakeholder assessment and
developing a communication and outreach strategy (draft
currently under review); (v) obtaining NEDA’s commitment to
complete the Phil-WAVES TA despite the planned restructuring
of NSCB into the PSA (received August 15, 2013); and (vi)
working with the client to ensure that the four technical staff to
be hired are included in any future DBM-approved
rationalization plans for the new PSA.
Implementing Agency Risk
- Capacity - M A re-orientation on World Bank policies on FM and
Disbursements shall be conducted to FM and project staff upon
grant signing. Client connection and E-disbursement training will
also be provided to facilitate submission of withdrawal
applications. Furthermore, technical staff will be hired for the
life of the project to support SEEA implementation. Capacity
will be built at multiple institutions and stakeholders, including
local academe to offset unexpected staff turn-over.
- Governance - S (Proc) Establishment of a capacitated procurement support unit to the
BAC (Special Order No. 138A-13 on the Establishment of the
NSCB Procurement Unit was issued on October 28, 2013).
Training on procurement management for key personnel planned
23
for Q1 2014. A detailed list of the planned FM and procurement
mitigation measures to be undertaken by this project are listed in
the annexes to the Integrated Assessment Framework (IAF).
Project Risk
- Design - S The activities financed under this grant require coordination and
collaboration across different Government agencies as well as
active engagement of other stakeholders, including CSOs,
NGOs, academe and the private sector. To ensure effective
coordination and collaboration a steering committee was set up
that includes all key Government agencies. Existing interagency
and multi-stakeholder committees and working groups will also
support implementation.
- Social and Environmental - L The project activities financed are designed to build the
Government’s capacity to set up and institutionalize national
mineral and mangrove accounts. They will not entail any
physical activity, or produce a master plan or feasibility study of
an investment project that may cause any environmental or social
impact. A series of national and local consultations were
conducted to gather issues and concerns from public and private
sector stakeholders to help frame the design and detailed work
and financial plan of the project. A stakeholder assessment was
conducted and a communications strategy is being prepared to
ensure that the primary and secondary stakeholders are given the
chance to identify development priorities and institutional
reforms. The WB OP 4.10 Indigenous Peoples is triggered by the
project because the two pilot sites for the ecosystem accounts
(financed under the BETF) are known to have IPs. Compliances
to both the free and prior informed consent mandated by IPRA
and meaningful engagement with IPs premised on respect for the
dignity and right of IPs prescribed by OP 4.10, the project has
agreed with the National Commission on Indigenous Peoples
(NCIP) to consider this as a joint research. Further, safeguard
policies and considerations consistent with World Bank
safeguard policies will be integrated into the TORs of various
studies. Policy analyses, recommendations and advice to the
Government will also be made consistent with the World Bank’s
safeguard policies.
- Program and Donor - L The Phil-WAVES TA is part of the WAVES GPP, which is a
growing partnership of interested developed and developing
countries as well as other international organizations. The
implementation of the Phil-WAVES RETF can thus draw on a
broad range of national as well as international expertise – most
notably on TA by the ABS/AusAID and is supported by a global
initiative that is gaining momentum.
- Delivery Monitoring and
Sustainability
- S NEDA – as national planning agency – is best placed to monitor
project implementation and coordinate a broad range of
Government agencies and stakeholders. In this task, it will be
supported by a full-time country coordinator and his/her assistant
to be financed under the Phil-WAVES RETF. Until the Phil-
WAVES RETF is signed an interim country coordinator, who
has already been hired, will carry out this function. Sustainability
will also be encouraged through the project support to
institutionalization of the selected SEEA modules through
training, provision of critical staff and early outreach and policy
dialogue involving a broad range of stakeholders.
Overall Implementation Risk M
24
B. Overall Risk Rating Explanation
49. The overall risk rating of this project is moderate given the complexity of this project and
identified procurement risks and capacity constraints. In addition, there are several stakeholder
risks, ranging from problems with timely access and release of data to change in Government
support and institutional restructuring to reputational concerns due to the contentious nature of
mining. However, the mitigation measures put in place, including a lead agency that is able to
effectively monitor and coordinate the project, targeted training and support for staffing, and the
early development of a strategic communications plan should effectively mitigate these risks. For
a detailed discussion of the implementation risk is presented in the Simplified Operational Risk
Assessment Framework, which is part of the project file.
VI. APPRAISAL SUMMARY
A. Economic Benefits and Costs
50. The economic benefits of this project are tied to those of the overall Phil-WAVES TA.
The primary benefit of the Phil-WAVES TA is an increased capacity to quantify and understand
the value of key natural resources and to analyze the associated policy options for managing the
natural capital of the Philippines in a sustainable and responsible manner. Having this
information will allow the GoP to make informed choices about development planning, ranging
from the use of economic instruments for managing key natural resources to the choice between
different regional development paths.
51. The cost of the Phil-WAVES TA is US$1.5 million. Quantifying the benefits of the
project is more difficult and will in fact be an output of the project itself. The Phil-WAVES TA
will assesses the value of key natural resources and analyze the social, economic and
environmental trade-offs and beneficiaries of different management schemes and resource uses.
This information will in turn inform policy analysis and development planning, ultimately
leading to an improved management of these natural resources. The associated benefits are
expected to be substantial. For example, Barbier (2011) showed that the value of a mangrove
forest increases substantially once its coastal zone protection benefits are taken into account; far
exceeding any benefits derived from converting the mangrove e.g. to a shrimp farm.
B. Financial Management, Procurement and Safeguards Issues
52. Financial Management. The financial management system of NSCB meets the financial
management requirement as stipulated in OP/BP 10.00. The proposed FM arrangement for the
project is considered adequate and will be periodically reviewed to ensure its effectiveness
during implementation. The assessed FM risk is negligible and implementation of the following
proposed FM arrangements will help ensure satisfactory FM performance:
(a) Maintenance of separate books of accounts for the project.
(b) Opening of a Designated Account at Land Bank of the Philippines (LBP) for grant
proceeds.
25
(c) Submission of semi-annual unaudited Interim Financial Reports (IFR) within 45
days after the end of each calendar semester.
(d) Annual audit by COA and submission to the Bank of the Annual Audit Report
together with a Management Letter (report on issues and recommendations) within
six (6) months after the end of each fiscal year.
53. Procurement. A Procurement Assessment was conducted of NSCB to determine its
capacity to handle the procurement function, generally, and the risk that the procurement under
the Grant in particular, will encounter. The Procurement Assessment report is part of the project
file. Based on its result, the overall risk assessment rating is substantial. Below are
recommendations to mitigate the identified risks:
(a) Establish a procurement unit composed of sufficient number of staff with proper
training on procurement. The procurement unit should have the capacity, including
equipment and tools, to prepare the procurement plan, execute the plan and monitor
and report the performance of the system.
(b) Prepare Annual Procurement Plan (APP) and have it approved for implementation.
The APP shall be a good basis to diligently manage procurement of an agency. More
importantly, any procurement not found in the APP shall be disallowed by auditors.
(c) Improve or sustain the use of public bidding as the default method of procurement.
(d) Proactively invite more bidders in public procurement to increase the level of
competition to increase the average number of bidders who acquired and submit bid
documents, as well as, those who passed eligibility stage. Related to this, procuring
entities must consider the conduct of activities to inform and update prospective
bidders and other stakeholders on public procurement.
(e) Identify ways and seek assistance from concerned groups to solicit participation of
observers in all public procurement activities.
(f) Develop an appropriate system to evaluate the performance of procurement
personnel.
54. Environmental Safeguards. The Philippine WAVES project will support the generation
of data and indicators necessary to inform development planning and policy analysis on the
sustainable use of key natural resources. Particularly under the RETF, it will support the capacity
building efforts of the Government of the Philippines to institutionalize the use of selected SEEA
modules in key government agencies which is synchronized with the technical assistance
activities of the BETF. Policy analysis of the generated data will be conducted under the BETF
to inform policy and planning decisions and contribute to the achievements of the Environment
and Natural resources (ENR) sustainable development goals under the Medium term Philippine
Development Plan (MTPDP). To ensure that environmental safeguards are considered under the
policy analysis, each Terms of Reference (TOR) will require the consideration of environmental
and social safeguard policies, principles and requirements in the preparation of the studies,
recommendations and policy advice to the Government. As the WAVES project is designed to
26
estimate the environment and social values of the natural ecosystems in the pilot areas, it will
highlight environment and social considerations that are essential in the decision making process
of the government.
55. Social Safeguards. The project will provide information to the Philippine
macroeconomic planning process using sustainable use of natural resources towards improved
economic gains and promoting equitable distribution of development benefits especially to those
generally left behind including IPs and other vulnerable sectors. The WB OP 4.10 Indigenous
Peoples is triggered by the project because the two pilot sites for the ecosystem accounts
(financed under the BETF) are known to have IPs. To facilitate project understanding,
discussions have been held with the NCIP both at the National and Regional level generating
acceptance of the project and agreements to support its implementation in the pilot areas. It was
agreed that FPIC of affected IP communities will be sought through a Memorandum agreement
that will present the project as a joint project with NCIP. It has been clarified that the project will
focus on the ecosystems and will not be able to account for cultural values of the involved IPs.
56. No separate safeguards instrument is required for the project. The procedures for
acquiring the FPIC in the Philippine require the formulation of a Memorandum of Agreement
(MOA) between the affected IP communities and the project proponent facilitated by the NCIP.
It details the roles and responsibilities of both parties in project implementation by project stage
including monitoring and evaluation. It is premised on the principle of respecting the dignity and
rights of the IPs to their culture and to participate in the project. It serves the purpose of the
Indigenous Peoples Plan which in general have the same contents. In pursuit of the MOA the
task team shall require the implementing agency in the two pilot sites to include compliances to
the MOA in their progress reports. The same will also be subject of supervision visits and
discussions by the task team during its supervision missions. To enhance that cultural ways are
not violated and other safeguard policies and considerations consistent with World Bank
safeguard policies are integrated, the TORs of various studies will incorporate these concerns.
Policy analyses, recommendations and advice to the Government will also be made consistent
with the World Bank’s safeguard policies.
57. DENR (FASPO) and LLDA, partner agencies for Southern Palawan and Laguna Lake
Basin ecosystem account respectively have both been implementing projects funded by the
World Bank for many years now. They have generally demonstrated knowledge and skills in
complying with OP 4.10 and their respective IP Frameworks for the Laguna de Bay Institutional
Strengthening and Community Participation Project, Philippines Climate Change Adaptation
Project, National Program Support for Environment and Natural Resources Management Project
[ENRMP]). Both agencies have engaged IP communities through mechanisms that help ensure
that the project process respects the dignity, human rights, economies and culture of the IPs.
Safeguard Policies Triggered by the Project Yes No
Environmental Assessment OP/BP 4.01 X
Natural Habitats OP/BP 4.04 X
Forests OP/BP 4.36 X
Pest Management OP 4.09 X
27
Physical Cultural Resources OP/BP 4.11 X
Indigenous Peoples OP/BP 4.10 X
Involuntary Resettlement OP/BP 4.12 X
Safety of Dams OP/BP 4.37 X
Projects on International Waters OP/BP 7.50 X
Projects in Disputed Areas OP/BP 7.60 X
28
*Please indicate whether the indicator is a Core Sector Indicator (see further http://coreindicators)
**Target values should be entered for the years data will be available, not necessarily annually Project Development Objective (PDO): The objective of the Philippine Wealth Accounting and Valuation of Ecosystems Recipient-executed Trust Fund (Phil-WAVES RETF) is
to support institutionalization of selected modules of the System of Environmental-Economic Accounting (SEEA) 2012.
PDO Level Results Indicators*
Co
re
Unit of Measure Baseline
Cumulative Target
Values** Frequency Data Source/
Methodology
Responsibility
for Data
Collection
Description (indicator
definition etc.) YR 1 YR 2 YR 3
Indicator One Functioning system
for the regular compilation of
selected modules of System of
Environmental-Economic
Accounting (SEEA).
Evidenced by dedicated
government staff for
NCA & regular
reporting mechanism
for production of natural
capital accounts Y/N
N N Y Y Annual
Annual progress
report & final
report
NSCB and TTL
INTERMEDIATE RESULTS
Intermediate Result (Component One):
Intermediate Result indicator One:
Macroeconomic indicators based on
NCA compiled regularly.
Number of indicators
produced and updated 0 0 2 3 Annual
Annual progress
report & final
report
NSCB and TTL Based on the World
Bank methodology
Intermediate Result (Component Two):
Intermediate Result indicator One:
Asset accounts for mineral
resources compiled regularly.
Account maintained and
updated 0 1 1 1 Annual
Annual progress
report & final
report
NSCB and TTL Based on SEEA 2012
Intermediate Result indicator Two:
Flow accounts for mineral resources
compiled regularly.
Account maintained and
updated 0 1 1 1 Annual
Annual progress
report & final
report
NSCB and TTL Based on SEEA 2012
Intermediate Result indicator Three:
Asset accounts for mangrove
resources compiled regularly.
Account maintained and
updated 0 0 0 1 Annual
Annual progress
report & final
report
NSCB and TTL Based on SEEA 2012
Intermediate Result indicator Four:
Flow accounts for mangrove
resources compiled regularly.
Account maintained and
updated 0 0 0 1 Annual
Annual progress
report & final
report
NSCB and TTL Based on SEEA 2012
Intermediate Result (Component Three):
Intermediate Result indicator One:
Selected NSCB and Government
staff trained to compile and
maintain natural capital accounts.
Number of People
trained per training 0 30 60 90 Annual
Annual progress
report & final
report
NSCB and TTL
Intermediate Result (Component Four):
Intermediate Result indicator One:
Regular Steering Committee
meetings organized
Number of meetings 0 4 8 16 Quarterly
Quarterly progress
report, annual
progress report
NSCB and TTL
29
&final report
Intermediate Result indicator Two:
Capacitated Procurement Support
Unit established and maintained
Unit established and
maintained Y/N N Y Y Y Quarterly
Quarterly progress
report, annual
progress report &
final report
NSCB and TTL
The procurement unit
should have sufficient
staff, equipment &tools
to prepare &execute the
procurement plan, &
monitor & report the
performance of the
system
30
Annex 2: Detailed Project Description
PHILIPPINES: Philippines Wealth Accounting and Valuation of Ecosystem Services
Recipient-Executed Trust Fund
1. The Philippines is one of the core implementing countries in the WAVES GPP, which
promotes the implementation and institutionalization of NCA in 6-10 developing and developed
countries over a five year period. The objective of the Phil-WAVES TA is to inform
development planning and policy analysis on the sustainable use of key natural resources. It
includes both recipient and bank-executed activities that will complement and mutually reinforce
each other.
2. The activities financed under the Phil-WAVES RETF (US$ 0.7 million) will generate the
data and indicators necessary to inform development planning and policy analysis on the
sustainable use of key natural resources and will support institutionalization of the selected
SEEA modules. In particular, this will be achieved by: (i) developing macroeconomic indicators
that account for natural capital values; (ii) developing national accounts for prioritized natural
resources – minerals and mangroves – based on the UN’s 2012 SEEA; and (iii) building capacity
for institutionalization of the prioritized SEEA modules.
3. This work will be complemented by activities financed under the Phil-WAVES BETF
(P133810, US$ 0.8 million), which will focus on policy analysis at the national and local level.
This will be achieved by (i) analyzing the macroeconomic indicators to measure the
sustainability of economic development, (ii) analyzing the data and indicators generated by the
selected SEEA modules to study the impact of different natural resource management and
revenue sharing scenarios on income and economic development; and (iii) developing and
constructing ecosystem accounts for Southern Palawan and the Laguna Lake basin and analyzing
the trade-offs associated with different resource and ecosystem use scenarios.
4. The below describes in more detail the activities to be financed under the Phil-WAVES
RETF:
Component 1. Development of macroeconomic indicators based on WB methodology (US$
0.01 million).
5. NSCB (ESO) will lead the development of the macroeconomic indicators, using the WB
methodology for computing ANI, ANS and comprehensive wealth (World Bank 2006). This
activity will build on the existing WB estimates, which will be further refined through the
compilation of the selected SEEA modules, in particular the mineral NC account. NSCB (ESO)
will thus start out in the second year of implementation to calculate ANI and ANS and add
mineral depletion to these macroeconomic indicators. They will be updated each year as new
data is collected on proven resources. Based on availability of resources, NSCB (ESO) will also
compute estimates of produced capital and CW towards the end of project implementation.
During this process, NSCB (ESO) will provide feedback and advice to the source agencies on
data requirements and quality. NSCB (ESO) will also identify the training needs of the statistical
and source agencies.
31
6. The component will finance consultants, travel, workshops, training, and data collection
and dissemination.
Component 2. Development of physical and monetary accounts for minerals and
mangroves based on the UN’s 2012 SEEA (US$ 0.07 million).
7. Given resource and staff constraints at NSCB, a phased approach will be adopted in the
implementation of the NC accounts. As minerals are a GoP priority, the minerals accounts will
be constructed in the first two years, followed by mangroves accounts in the last two years of
project implementation.
8. NSCB (ESO) will lead the development of individual NC accounts based on the SEEA
2012 to construct, update and refine the physical and monetary accounts. Each activity will start
out with an initial evaluation of existing data against the SEEA methodology, which will identify
data and quality gaps that will be resolved in the subsequent years. The NSCB (ESO) will be
advised by the TWGs of IAC-ENRS and IAC-AFS, who will oversee the generation of data and
indicators, provide guidance, assure quality and coordinate between GoP agencies. The
construction of the NC accounts will also be supported by special studies to support SEEA
implementation as well as training and TA provided by ABS/AusAID. NSCB (ESO) will also be
in charge of leading the dialogue with the source agencies on data requirements and quality and
will identify the training needs of the statistical and source agencies.
(a) Sub-component 2.1. Minerals. NSCB (ESO) with support of the TWG on Minerals
and under guidance of the IAC-ENRS will construct, update and refine the physical
and monetary accounts for large-scale metallic minerals based on the SEEA 2012.
After an initial evaluation of existing data against the SEEA methodology for
mining sector accounts, NSCB (ESO) will compile mineral accounts with the
available data in the first year of implementation focusing on large-scale copper,
nickel and gold mining. These accounts will be updated each year, as new data is
collected on proven resources. The calculation of the monetary asset accounts will
also include a study to predict changes in world market prices to capture current and
future values of the selected mineral assets. Studies on small-scale mining are also
being considered, given the importance of small-scale gold mining in the
Philippines.
(b) Sub-component 2.2. Mangroves. NSCB (ESO) with support from DENR and under
guidance of the IAC-ENRS will construct, update and refine the national physical
and monetary asset accounts for mangroves and the provisioning services of species
associated with mangroves (fisheries, tourism and non-timber products) based on the
SEEA 2012. After an initial evaluation of existing data against the SEEA
methodology for mangrove sector accounts, NSCB (ESO) will compile mangrove
accounts with the available data in the third year of implementation. These accounts
will be updated the following year, as new data is collected. The World Bank project
on Capturing Coral Reefs and related Ecosystem Services (CCRES) will provide the
data and analysis on the linkages between mangroves, fisheries and coral reefs.
These calculations will be supported by two studies to determine the factors
32
affecting stocks (e.g. climate change, subsistence demand) and asset values (e.g.
current and future market trends in timber, fisheries and tourism) respectively.
9. The component will finance consultants, travel, workshops, training, and data collection
and dissemination.
Component 3: Capacity building for the institutionalization of the selected SEEA modules
(US$ 0.45 million).
10. The objective of the training component is to build capacity for the institutionalization of
the selected SEEA modules primarily in the Philippine government agencies. NSCB (ESO) will
identify the training needs in the Philippine Statistical System (PSS) and the associated data
providers. Training will be provided with the technical support from ABS/AusAID and will
focus on the methodologies and components of SEEA; data collection, survey as well as data
storage and management skills (to be determined).
11. The component will finance consultants, travel, workshops, training, data collection and
dissemination, and computer equipment.
12. A Mid-term Review (MTR) for components 1-3 is planned at the beginning of the third
year of implementation to review the delivered products and assess the work plan to finalize the
task by June 2016. At that time, the update and refinement of the physical and monetary accounts
for minerals will have been completed. A detailed draft work plan for the remaining two years
will also be prepared for the MTR, including the update and refinement of the physical and
monetary accounts for mangroves. The MTR will thus provide guidance on the quality of the
completed work and scope, objective and methodology for the proposed work plan.
Component 4: Project Oversight and Management (US$ 0.17 million).
13. NEDA will lead Phil-WAVES through the PWSC, which will provide the overall
guidance and strategic direction, by (i) facilitating implementation and serving as PWSC
Secretariat; (ii) reviewing work plans, progress reports and findings for the PWSC approval; and
(iii) monitoring the project progress and reporting regularly to the PWSC, WB and WAVES
GPP. NEDA will be supported by a country coordinator and his/her assistant to be hired through
the Phil-WAVES RETF.
14. The component will finance consultants, travel, communication, and limited office
equipment and supplies.
33
Annex 3: Implementation Arrangements
PHILIPPINES: Philippines Wealth Accounting and Valuation of Ecosystem Services
Recipient-Executed Trust Fund
Project Institutional and Implementation Arrangements
1. Institutional arrangements. The Government has been and will be fully engaged in the
preparation, implementation and follow-up on this activity. The prioritization of NC accounts
and policy concerns was based on GoP expectations and follow-up discussions during
preparatory workshops with officials from policy, planning, NRM sector agencies, statistics
offices, NGOs, CSOs and academia, as well as meetings with senior GoP officials.
2. To ensure prompt and smooth implementation and support institutionalization, the
following arrangements have been made:
(a) Steering Committee. The PWSC is composed of the NEDA (chair), DBM (vice-
chair), DOF, NSCB, DENR, DA, CCC, OPAEP and ULAP. The PWSC will provide
strategic direction and guidance by (i) facilitating implementation; (ii) reviewing and
approving work plans, progress reports and Phil-WAVES analysis; and (iii)
establishing channels for policy dialogue.
(b) Lead Agency. NEDA will lead the Phil-WAVES TA by organizing and chairing the
PWSC with the support of NPPS to serve as secretariat for the PWSC. The
secretariat will (i) monitor the progress of the project and report regularly to the
PWSC; (ii) review and endorse work plans for PWSC approval; and (iii) coordinate
the policy dialogue and uptake of Phil-WAVES findings. It will be supported by a
country coordinator and his/her assistant to be hired under the Phil-WAVES RETF
to ensure effective interagency coordination and collaboration.
(c) Implementation of SEEA 2012: NSCB (ESO) will be responsible for (i)
implementing SEEA by constructing both the macroeconomic indicators and NC
accounts and (ii) leading the learning among the statistical and source agencies. The
SEEA implementation will be supported by four technical staff to be hired under the
Phil-WAVES TA. In addition, the TWGs of IAC-ENRS and IAC-AFS will (i)
oversee the generation of data and indicators; (ii) provide technical advice and
guidance; (iii) assure quality; (iv) ensure that detailed and quality data is made
available; and (v) coordinate and collaborate across GoP agencies.
3. The capacity and institutional assessment identified both a budget deficiency and
manpower shortage as possible constraints to Phil-WAVES implementation. The potential
budget deficiency will be addressed through the engagement of staff from the DBM early on
through the PWSC to ensure that the creation of SEEA units is included in their rationalization
plans. The manpower shortage is addressed upfront by augmenting existing staff through project-
funded staff, including the four technical staff to be based at NSCB and the country coordinator
and his/her assistant to be based at NEDA. An assessment of FM and procurement has also been
undertaken. The identified constraints and proposed mitigation measures are discussed in more
detail in the following section.
34
Financial Management, Disbursements and Procurement
A. Financial Management Arrangements
4. Accounting System. The project will maintain separate books of accounts to facilitate the
preparation of the financial reports. The project will also use the National Government
Accounting System chart of accounts prescribed by the COA. Transactions will be summarized
through the use of excel spreadsheets. Additional schedules and analyses will also be prepared
through excel spreadsheets.
5. The processing of financial transactions from budgeting, disbursements, accounting and
financial reporting will be mainstreamed. The approval process of project transactions will
follow the Agency’s level of authority.
6. Financial Reporting. The project shall report to the Bank the status of implementation of
the recommendations of the independent external auditor 60 days after receipt of the audit report.
7. The project will be required to prepare and submit semi-annual IFRs for use by the
project management in assessing the financial performance of the project and its linkage to the
physical progress.
8. External Audit. The project shall be subject to the annual audit by COA. NSCB shall
provide COA with project documents and will invite them in meetings. Regular coordination will
be made to ensure timely completion of audit and resolution of any audit issues.
9. FM Assessment. The FM system of NSCB meets the FM requirement as stipulated in
OP/BP 10.00. The proposed FM arrangement for the project is considered adequate and will be
periodically reviewed to ensure its effectiveness during implementation (for more detail see the
IAF and the associated annexes).
10. FM Risks and Mitigation Measures. The assessed FM risk is negligible and
implementation of the following proposed FM arrangements will help ensure satisfactory FM
performance:
(a) Maintenance of separate books of accounts for the project.
(b) Opening of a Designated Account at the LBP for grant proceeds.
(c) Submission of semi-annual unaudited IFR within 45 days after the end of each
calendar semester.
(d) Annual audit by the COA, and submission to the Bank of the Annual Audit Report
together with a Management Letter (report on issues and recommendations) within
six (6) months after the end of each fiscal year.
35
B. Disbursement Arrangements
11. Fund Flow. Funds will flow from the Bureau of Treasury to be downloaded on a separate
bank account specifically maintained for the project. This will facilitate monitoring of funds.
Prompt submission of withdrawal application shall be made by NSCB to avoid funds run out due
to delay in crediting the grant to the project’s Designated Account.
12. Designated Account. The Agency will maintain a separate bank account to appropriately
monitor funds flow. It is required that Government agencies maintain bank accounts at
Government Financial Institution (GFI). NSCB has existing banking arrangements with Land
Bank of the Philippines, a GFI acceptable to the Bank.
13. Disbursement Methods. Method of disbursements that may be used includes advance
(through Designated Account), reimbursement and direct payment. Reports on liquidations
should be supported by the Statement of Expenditures. Proposed ceiling for the Designated
Account – USD 140,000 to be liquidated at least on a quarterly basis, or as necessary.
14. Disbursement Categories. The project will have one disbursement category as outlined in
the table below:
Category Amount of the credit
allocated (expressed in
USD)
Percentage of expenditures
to be financed (inclusive of
taxes)
Goods, consultants’ services, non-
consulting services, Training, and
Incremental Operating Costs
700,615 100%
C. Procurement Arrangements
15. Entity. The procuring entity shall be the NSCB with its BAC as the body responsible for
handling all procurement required for the Project. The Procurement Unit as created under Special
Order No. 138-A13 issued on October 28, 2013 will be the support implementing unit of the
BAC. The BAC and the Procurement Unit will follow the administrative processes, including
keeping of records and documents, approving authority, contract preparation and implementation
as prescribed by the Generic Procurement Manual (GPM) that was harmonized with the ADB,
JBIC (now JICA) and the WB. The GPM’s Volumes 1 (System and Organization) and 2
(Procurement of Goods and Services)l forms part of the project’s operations manual and attached
as Annex 3 and 4 thereof
16. Procurement of Goods and Non-consulting Services. All goods and non-consulting
services required for the Project and to be financed out of the proceeds of the Grant shall be
procured in accordance with the requirements set forth in “Guidelines: Procurement under IBRD
Loans and IDA Credits” dated January 2011. They will be conducted following Shopping and
Direct Contracting methods under Sections 3.5 and 3.6 of the Guidelines respectively.
17. Procurement of Consulting Services. All consulting services required for the Project and
to be financed out of the proceeds of the Grant shall be procured in accordance with the
36
requirements set forth in “Guidelines: Selection and Employment of Consultants under IBRD
Loans and IDA Credits and Grants by World Bank Borrowers” published by the World Bank in
January 2011.
18. Selection of Consultants. Particular methods for the procurement of Consultants’
Services are: (i) Quality and Cost Based Selection, (ii) Selection based on Consultants
Qualification; (iii) Fixed Budget Selection; (iv) Single Source Selection; (v) Individual
Selection; and (vi) Individual Selection Sole Source.
19. Procurement Plan. The PP will be prepared by the Procurement Unit and submitted to
the BAC, which will then submit officially to the Secretary General of NSCB regularly on
annual basis, and will be revised as the need arises.
20. Prior Review Thresholds. Prior review thresholds shall be indicated in the PP and it will
set forth those contracts that will be subject to prior review. All other contracts are subject to post
review.
21. Procurement Supervision. Monitoring of the PP will be the responsibility of the
Procurement Unit and the BAC. The PP will indicate which procurement has been completed.
Monitoring of the performance of the procurement system will use the APCPI system of the
Government.
22. Procurement Assessment. The review adopted the APCPI system used by the Philippine
Government Procurement Policy Board in assessing the performance of the procurement systems
of procuring entities. The APCPI is based on the OECD-DAC/WB standards to assess the
performance of a well-functioning procurement system called the Baseline Indicator System or
Methodology for the Assessment of a National Procurement System. The system covers 4
Pillars, namely: (i) legislative and regulatory framework; (ii) institutional framework and
management capacity; (iii) procurement operations and market practices; and (iv) integrity and
transparency of agency procurement system. The Procurement Assessment report is part of
project file (for more detail see the IAF and the associated annexes).
23. Procurement Risk and Mitigation Measures. Based on its result, the overall risk
assessment rating is substantial, however, the following mitigation measures are proposed:
(e) Establish a procurement unit composed of sufficient number of staff with proper
training on procurement. The procurement unit should have the capacity, including
equipment and tools, to prepare the PP, execute the plan and monitor and report the
performance of the system.
(f) Prepare APP and have it approved for implementation. The APP shall be a good
basis to diligently manage procurement of an agency. More importantly, any
procurement not found in the APP shall be disallowed by auditors.
(g) Improve or sustain the use of public bidding as the default method of procurement.
(h) Proactively invite more bidders in public procurement to increase the level of
competition to increase the average number of bidders who acquired and submit bid
37
documents, as well as, those who passed eligibility stage. Related to this, procuring
entities must consider the conduct of activities to inform and update prospective
bidders and other stakeholders on public procurement.
(i) Identify ways and seek assistance from concerned groups to solicit participation of
observers in all public procurement activities.
(j) Develop an appropriate system to evaluate the performance of procurement
personnel.
24. Procurement issues are being addressed by NSCB starting with the creation of a
Procurement Unit. An action plan was agreed to address all remaining issues.
D. Environmental and Social safeguards arrangements
25. Under the BETF, the LLDA and the DENR together with the Palawan Council for
Sustainable Development (PCSD) are the partner agencies for ecosystem account respectively in
the Laguna Lake basin and Southern Palawan. Other stakeholders in the pilot sites are the DA,
concerned local government units, IPs, academic and research institutions, CSOs, NGOs,
business enterprises, land developers, and private investors who are involved in the sustainable
management and protection of the pilot sites. Consultations with project affected people both IPs
and non IPs will be managed in support of these two agencies.
26. It will also involve the NCIP particularly in ensuring that FPIC of IPs present in pilot
sites are done in adherence to the WB OP 4.10 and the NCIP Administrative Order #3 series of
2012. To further characterize the engagement with IPs consistent with respect for the dignity,
human rights, economies and culture of the IPs the TORs of various studies including policy
assessment and recommendations to the Government will be include the principles of OP 4.10. It
is clear however that the project will focus on the valuation of the ecosystem and will not be able
to account for the cultural values the concerned IP community may have placed on the items that
will be accounted.
27. A series of consultations with a diverse group of national and local stakeholders were
conducted by DENR with the assistance of PCSD in Southern Palawan, and LLDA in the
Laguna Lake Basin. This is in line with fulfilling the WB safeguards due diligence requirements
to ensure that key stakeholders are properly identified and adequately consulted before the
ecosystem accounts are set up.
28. The results of the studies will help inform the Philippine to identify and design its
sustainable development strategies that will help avoid or minimize adverse impacts.
E. Monitoring & Evaluation
29. A monitoring framework for the project has been prepared. Data will be collected by
NSCB and monitored by the Bank every six months. The M&E data to be collected is largely
related to the activities being implemented by NSCB and so no major issues are seen in acquiring
the data. The data collected will be used to assess the progress of activities and make adjustment
to the implementation schedule if necessary.
38
F. Role of Partners
30. AusAID has provided funding to enable the ABS to contribute to the implementation of
environmental accounts according to SEEA in the Asia-Pacific. In this, support for the
Philippines was specifically identified. The support is for the three years to 30 June 2016 and
involves (i) two trips per year to provide hands-on training and technical support, (ii) remote
follow-up support, (iii) participation of two Government representatives at the annual training
course on environmental accounting at the Australian National University (ANU).The ABS and
the WB have entered into a Memorandum of Understanding to guide this work (see Annex 4).
39
Annex 4: Memorandum of Understanding between the World Bank and ABS
PHILIPPINES: Philippines Wealth Accounting and Valuation of Ecosystem Services
Recipient-Executed Trust Fund
40
41
42
43
44
Annex 5: Detailed Cost Table
PHILIPPINES: Philippines Wealth Accounting and Valuation of Ecosystem Services Recipient-Executed Trust Fund
COMPONENTS AND ACTIVITIES Procurement category FY14 FY15 FY16 TOTAL
1. Development of macroeconomic indicators - 12,600 - 12,600 1.1 Estimation of Adjusted Net Income (ANI) and Adjusted Net Savings
(ANS) - 4,200 - 4,200
Quarterly Mini Workshops to estimate ANI and ANS Training & Workshop
4,200
4,200
1.2 Estimation of produced capital (PC) - 4,200 - 4,200
Quarterly Mini Workshops to estimate Produced Capital Training & Workshop
4,200
4,200
1.3 Estimation of comprehensive wealth (CW) - 4,200 - 4,200
Quarterly Mini Workshops to estimate Comprehensive Wealth Training & Workshop
4,200
4,200 2. Development of physical and monetary accounts for minerals and
mangroves 7,500 36,075 27,075 70,650
2.1 Minerals Accounts 7,500 28,575 - 36,075
Quarterly Mini Workshops to compile Mineral Accounts Training & Workshop
4,200
4,200 Special Study on estimating production, tons mined and tailing generated by
small-scale gold production Consultants' services 3,750
3,750
Special Study on estimating environmental and health costs of small-scale
gold mining Consultants' services 3,750
3,750
Validation Workshop of the Preliminary Results of the Asset Accts for
Mineral Resources
-
Venue and Logistics Training & Workshop
16,375
16,375
Cost of 2 local resource person Incremental operating costs
500
500
Publication Accounts
-
Mineral Accounts Non-consulting services
7,500
7,500
2.2 Mangroves (tbc at mid-term) - 7,500 27,075 34,575
Quarterly Mini Workshops to compile Mangrove account Training & Workshop
4,200 4,200
Special study on Mangroves Consultants' services
3,750
3,750
Special study on the Mangrove valuation and factors that affect stocks Consultants' services
3,750
3,750
Publication Accounts
-
Mangrove Accounts Non-consulting services
7,500 -
Dissemination of Project Output
-
Conducted Dissemination Forum Training & Workshop
15,375 15,375 3. Capacity building for the institutionalization of the prioritized SEEA
modules 165,044 206,723 75,348 447,115
45
3.1 Training and knowledge sharing 165,044 206,723 75,348 447,115 Hired Technical Staff (4 TA for the whole project lifetime plus 2 Short term
TA) Incremental operating costs 40,974 75,348 75,348 116,322
Capital Outlay
-
Acquired IT Equipment for the Project Goods 20,500
20,500
Trained Staff on 2012 SEEA
-
Training & Workshop 35,445
35,445
Cost of foreign resource person Consultants' services 40,000
40,000 Trained staff on the WB Methodology on Estimating Adjusted Net Income
(ANI) & Adjusted Net Savings (ANS)
-
Venue and Logistics (live-out for 5 days; 30 NSCB pax) Training & Workshop
23,625
23,625
Cost of foreign resource person Consultants' services
30,000
30,000 Trained staff on the WB Methodology on Estimating Produced Capital &
Comprehensive Wealth
-
Venue and Logistics (live-out for 5 days; 30 NSCB pax) Training & Workshop
23,625
23,625
Cost of foreign resource person Consultants' services
30,000
30,000 Hands-on Training on the Physical and Monetary Asset Accounts for
Mineral Resources
-
Venue and Logistics Training & Workshop 23,625
23,625
Cost of 2 local resource person Incremental operating costs 500
500 Hands-on Training on the Physical and Monetary Asset Accounts for
Mangrove resources
-
Venue and Logistics Training & Workshop
23,625
23,625
Cost of local resource person Incremental operating costs
500
500
Training on fiduciary issues
-
Improved capacity in Procurement for WB projects Training & Workshop 3,500
3,500
Procurement staff training Training & Workshop 500
500
4. Project Oversight and Management 35,750 54,500 80,000 170,250
4.1 Strategic Direction & Guidance 35,750 54,500 80,000 170,250
Country Coordinator (Basic +HMO+SSS/GSIS) Incremental operating costs 19,500 39,000 58,500 117,000
Junior (Basic +HMO+SSS/GSIS) Incremental operating costs 6,000 12,000 18,000 36,000
Supplies Incremental operating costs 750 500 500 1,750
Equipment Goods 5,000 - - 5,000
Communications Incremental operating costs 4,500 3,000 3,000 10,500
TOTAL RETF 208,294 309,898 182,423 700,615