Philippines - Second Agrarian Reform Communities Development Project : environmental assessment

SECOND AGRARIAN REFORM COMMUNITIES DEVELOPMENT PROJECT Analysis, Guidelines And Framework For Environmental Safeguard Policies January 2002 E579 DEPARTMENT OF AGRARIAN REFORM GOVERNMENT OF THE P'HILIPPINES FILE COPY  A. INTRODUCTION B. STUDY FRAMEWORK B.1 Study Approach B.2 Organization of the Study Report C. CONCEPTUAL FRAMEWORK C.1 Conceptual Framework for Environmental Planning and Mbnagement C.2 Philippine Environmental Framework D. ENVIRONMENTAL ISSUES AND CONCERNS D.1 Integration of Environmental Considerations in Project Cycle D.2 Coverage under the Philippine EIS System (Issuance of CNC/ECC) D.3 Preliminary Environmental Assessment E. STRATEGIES AND APPROACHES E.1 Strategic Environmental Planning for ARCDP II E.2 Environmental Policies for ARCDP II E.3 Environmental Management Systern for ARCDP II Environmental Guidelines Comprehensive ARCD Plan Contractor's Environmental Management Guidelines IEC Plan Capability Building Plan Institutional Plan E.4 Implementation Requirements Strategic Environmental Framework for ARCDP II References Interview conducted Annexes A Letter-Agreement of DENR-EMB with ARCDP B Memorandum of Agreement between DENR and DPWH C Preliminary Environmental Assessment, ARCDP II D Tentative Outline, Environnmental Guidelines (Operation Manual)  ENVIRONMENTAL SAFEGUARDS A. INTRODUCTION The Department of Agrarian Reform (DAR) is currently undertaking preparation activities for Agrarian Reform Communities Development Project II (ARCDP II) for the consideration of World Bank (WB). ARCDP II is the successor project of WB-funded ARCDP that is also currently being implemented by DAR. In November 2000, a project preparation team was organized by DAR to prepare the necessary documents for the successor program. The Technical Assistant (TA) for environment was engaged 11 December 2000. The tasks of the TA are essentially to undertake environmental assessment of the project, determine potential environmental effects of design alternatives and identify measures that will address/mitigate them. The TA was also tasked to undertake environmental analysis of subprojects and adopt mitigating measures to counter any adverse environmental impact. B. STUDY FRAMEWORK The overall objective of this study is to assess the potential environmental impacts of ARCDP II based on experiences from ARCDP I. Furthermore, appropriate measures shall be recommended to either mitigate the negative impacts or enhance the positive impacts. In this context, the assessment was conducted using the study framework as presented in Figure 1. The framework adopted a broad perspective of sustainable development (SD) principles. Specifically, the principles embodied in the Operational Framework for Sustainable Developmente were used as the general premise. In this context, assessment of environmental factors included institutional and technical capabilities. These were undertaken with the goal of defining issues, constraints and opportunities with regard to environmental factors. Figure 1. Study Framework Examine Examine Examine Institutional Technical Operational Capabilities Capabilities Capabilities Operational Framework for Sustainable Development. UNDP-funded Integrated Environmental Management for Sustainable Development. Department of Environment and Natural Resources. 1997/1999 SECOND AGRARIAN REFORM COMMUNITIES DEVELOPMENT PROJECT (ARCDP 2) INDIVIDUAL TA REPORT Environmental Safeguards 1  B.1 Study Approach Inasmuch as ARCDP l1 is the successor of an existing project, the project implementation scheme of ARCDP I was used as the basis of the assessment. The institutional, technical and operational capabilities of the ARCDP project implementation system were assessed vis-a-vis potential environmental impacts and the need for environmental protection. On the institutional aspect, the assessment was conducted in terms of availability of any institutional system to monitor or assess environmental impacts. The assessment also covers the existence or non-existence of environmental standards or guidelines, the system of integrating environmental considerations in the project operational scheme, the designation of responsible party to monitor environmental issues, and such related institutional element. With regard to the technical aspect, the assessment was done to determine if environmental concerns were incorporated in the design and implementation criteria. The review also covers the technical capability of personnel (in a general sense) to incorporate environmental elements into design and implementation schemes and their capability to conduct basic environmental assessment. Finally, the assessment of the operational aspects was mainly in terms of the availability of formal systems that actually monitor environmental impacts of subprojects implemented in the field, and the results of such monitoring if available. B.2 Organization of the Study Report Section A of this Report is the introduction while Section B deals with the Study Framework or the methodology used in the Study. Section C discusses the Conceptual Framework that serves as the scope and basis of the assessment. Section D discusses the assessment of the institutional, technical and operational schemes of ARCDP I. Finally, Section E recommends some Strategies and Approaches through the development of a basic environmental management system. The annexes provide additional details such as the Letter-Agreement between DENR and ARCDP, Memorandum of A\greement between DENR and DPWH and the preliminary Environmental Assessment among others. C. CONCEPTUAL FRAMEWORK Sustainable development - the process of achieving economic development and environmental protection - is the core issue that affects the well-being of people and their natural habitat. Economic growth in the midst of growing poverty and continued environmental degradation will inevitably lead to disaster. In the context of SD, poverty is both a cause and effect of environniental destruction. Poverty is an overwhelming pressure on people who cannot meet their basic needs so that they continue exploiting an already degraded environmental resource/ecosystem. The conceptual framework of ARC Develcpment calls for the reduction of poverty and the enhancement of the quality of life of target beneficiaries.2 This calls for the empowerment of ARBs to improve their access to key support services and 2 Project Concept Document, ARCDP II. November 2000 SECOND AGRARIAN REFORM COMMUNITIES DEVELDPMENT PROJECT (ARCDP 2) INDIVIDUAL TA REPOR7 Environmental Safeguards 2  rural infrastructures so they can engage in econoriic activities that would increase their incomes. It also calls for an improved modality of land reform to speed up the implementation of CARP. The ARC Development approach requires a multi-sectoral approach to achieve sustainable rural development. The approach should insure the harmonious integration of a sound and viable economy, responsive government, social cohesion of the communities and ecological consideration in an integrated area development conceptual framework3. The significant accomplishments of ARCDF' provide the opportunity for the expansion of its roles in area-based development. Consequently, ARCDP II can now contemplate on the environmental aspects of its activities. The framework for integrated area development requires that environmental factors be taken into account in economic and development planning. The socio-economic benefits of ARCDP must not be negated by externalities due to the environmental consequences of the project both durng construction and operation phases. Proper design and planning can eliminate or reduce adverse environmental impacts to acceptable level, and enhance positive environmental impacts - thus optimizing overall project benefits. Incorporation of appropriate environmental protection measures can best be done through the EIA process. The EIA process must be seen as a complementary activity to the conventional FS regime. It should not be seen as a hindrance or obstacle to project implementation. EIA, if properly implemented, can enhance or enrich the project development activities. C.1 Conceptual Framework for Environmentall Planning and Management The planning and management of economic: development requires that there is continuous flow of information to decision makers. EIA is as useful as a process and as a- format, for acquiring, analyzing and reporting information about the natural environment. EIA complements and supplements the analysis and information obtained from economic and engineering studies. National needs and objectives are often mutually conflicting. The goal of clean environment often competes with the need for economic development (e.g., jobs, improved living standards, etc.). Conventional beliefs accept the fact that there is a need to degrade environmental quality to achieve economic growth. Contrary to negative (erroneous) conceptions like this, projects that were undertaken without concern for environment often resulted in unacceptable damages to air quality, water quality and other environmental resources including human health. In some cases, the extent of these damages led to the termination cr suspension of the project. The conduct of EIA can provide a roadmap of potential dangers to environmental resources as well as of opportunities to maximize the utilization of these resources. Contrary to common perception, EIA is a constructive and pro- development tool that will improve sustainability and enhance the success potential of any project. Experiences have shown that the EIA undertaken as part of the FS process is highly advantageous and cost effective. Close coordination and complementation 3 DAR MC-5, Series of 1999 SECOND AGRARIAN REFORM COMMUNITIES DEVELOPMENT PROJECT (ARCDP 2) INDIVIDUAL TA REPOR'T Environmental Safeguards 3  between the FS and EIA team allow for the mutual integration/use of the findings by each of the teams. This "exchange" of ideas during the study or project life removes the need for expensive re-study, which usually happens when EIA is done after the FS so that some re-computation in the FS miglht be required to account for recommended environmental measures. Furthermore, the findings of the EIA can help refine and enrich the criteria and specifications to be used in the detailed engineering phase. In the context of integrated area development, consideration or incorporation of environmental requirements or measures at the outset of the planning cycle had been found to be cost effective and have facilitated the EIA process for specific projects or modules of the master (development) plan. Environmental considerations can be integraled into either the project cycle or the development planning process under the concept of project-EIA and strategic environmental assessment, respectively. For discussion purposes, the role of EIA in the project cycle is presented in Figure 2. Figure 2. EIA Inputs in the Project Cycle --- '- --- - N Y l! Pre- Feasibility feasibility D Project Design and Concept Engineering Monitoring& m Evaluation Implementation The circle, representing the project cycle, had been the conventional approach since the 1960s. As an offshoot of the environmental movement, environmental considerations had been integrated into each major step of the project cycle. This is why it is important that the EIA be undertaken simultaneously with FS. C.2 Philippine Environmental Framework The 1987 Philippine Constitution lays down the basic framework for national policy on the environment. Section 16, Article II states that 'The State shall protect and advance the right of the people to a balanced and healthful ecology in accord with the rhythm and harmony of nature." Section 15 of the sam-re Article also mandates the State 'to protect and promote the people's right to health." Predating the constitution, Presidential Decree No. 1151 (otherwise known as the "Philippine Environmental Policy") is the first policy issuance on EIS System in the Philippines. Effective since 1977, section 4 thereof explicitly requires "all agencies and instrumentalities of the national govemment, including govemment-owned and controlled corporations, as well as private corporations, firms and entUtUes to prepare an environmental impact system (EIS) for every action, project or undertaking which significantly affects the quality of the environment." SECOND AGRARIAN REFORM COMMUNITIES DEVELO'MENT PROJECT (ARCDP 2) INDIVIDUAL TA REPORT Environmental Safeguards 4  The Philippine EIS System was formally established in 1978 by virtue of PD No. 1586. Reiterating the policy statement under PD 1151, it declared environmentally critical projects (ECPs) and projects within environmentally critical areas (ECAs) as projects which require the submission of an environmental impact statement (EIS). Section 4 thereof provides that "no person, partnership or corporation shall undertake or operate any in part such declared ECP orproject within an ECA without first securing an Environmental Compliance Certifcate (ECC)." PD 1586 also identified the lead agency for the implementation of the EIS System and provided sanctions for its violation. The major categories of ECPs and ECAs were identified through Presidential Proclamation No. 2146, series of 1981. The categories were given technical definitions by EMB's predecessor agency, the National Environmnental Protection Council (NEPC), through NEPC Office Circular No. 3, series of 1983. Since the issuance of the foregoing, the EIS system has undergone several refinements to make it a more effective planning, management, and regulatory tool in addressing environmental problems in the country. The DENR has consistently endeavored to strengthen and tighten the system, by continuously introducing new features and requirements in response to changing economic realities and the growing environmental consciousness of the Philippine populace. The latest of this effort is DENR Administrative Order (DAO) No. 37 series of 1996 or DAO 96-37, which expressly supersedes DAO 21 series of 1992. DAO 96- 37 is an attempt to further streamline the EIS system and to strengthen the processes for its implementation. D. ENVIRONMENTAL ISSUES AND CONCERNS Of the three components under ARCDP I, it was deemed that the rural infrastructure component will have the most significant environmental impact compared to the other components. Furthermore, l:he CD/TA and AED components are considered to have the potential to serve as vehicle to mitigate the negative environmental impacts and enhance the positive ones. As such, the focus of the environmental assessment is the rural infrastructure component. The scope of the rural infrastructure4 component includes the rehabilitation and construction of 810 km of roads and 810 meters of concrete bridges, rehabilitation and construction of communal irrigation facilities covering 10,000 hectares, provision of potable water supply systems for 100 ARCs, and construction of 80 units of multipurpose buildings. As of November 20005, the accomplishments include 419.11 km of road rehabilitation, 289.11 km of new road construction, irrigation facilities covering 4,850 hectares, 2,422.28 lineal meter of bridge construction, 72 units of water systems and 10 multipurpose buildings. D.1 Integration of Environmental Considerations in Project Cycle As implemented, there are three major pathways for integrating environmental considerations in the ARCDP project cycle. They are: 4 Progress Report for the World Bank Supervision Mission. November 2000 Progress Report for the World Bank Supervision Mission. November 2000 SECOND AGRARIAN REFORM COMMUNITIES DEVELOPMENT PROJECT (ARCDP 2) INDIVIDUAL TA REPORT Environmental Safeguards 5  * Preparation of individual subproject environmental assessment document/s - the preparation of the IEEs or IEE Checklist (as per DENR requirement for ECC issuances) is the most significant pathway or scheme for integrating environmental considerations. As conceived by DENR6, the EIA process is an opportunity where environmental concerns can be weighed against economic or developmental gains. It calls for the integration of sustainable development principles in project design and implementation. * Design and Construction guidelines -- ARCDP has formulated and implemented several guidelines covering the design, modes of construction and other technical aspects of the project. Technical guidelines, as a rule, can provide for a comprehensive list of options available for the design and construction aspects that can either enhance positive environmental impacts or mitigate the negative impacts. * Operation and Maintenance guidelines including M&E - ARCDP had likewise adopted several guidelines covering the operation and maintenance phase including the M&E scheme. As a general rule, the M&E during the O&M phase is an effective mechanism to monitor environmental impacts of the project by observing or measuring the improvement or deterioration of critical ecological systems affected by the project (e.g., river system, forest ecosystem, swamp land or marsh land, agricultural ecosystem, etc.) Based on a preliminary (very indicative) assessment as obtained from project personnel, there are major gaps in and/or failures to effectively utilized these pathways for environmental interventions. The preparation of environmental assessment document/s is the most under- utilized of these pathways. It is generally perceived, both by the project staff and LGU-proponent as another bureaucratic requirement. It is not used as an intervention mechanism in the evaluation of environmental aspects of the project. As a case in point, no environmental assessment was ever conducted on the use of the soil stabilizers in road construction. The continued use of these soil stabilizers is being assessed purely on technical and economic bases. In the aspect of design and construction, there are no formal systems that mandate the inclusion of environmental considerations in the design and construction. For example, design and construction of irrigation facilities are generally based on adequacy of water resources and potential conflicts in water rights (as based on the regime of NWRB water permits). There is no environmental assessment in terms of a long-term adequacy or sustainability of water resources, more so with the issue of potential conflicts in terms of existing and future beneficial uses of the water sources to be tapped for the irrigation system. Water quality, or more specifically, the impacts of agricultural practices on water quality downstream has never been a major consideration in the design or construction of the irrigation facilities. These systemic gaps or deficiencies are clearly demonstrated in the lack of M&E criteria for the environment. Impact assessment for the project is essentially limited to the study of its economic and social impacts. 6 DENR Administrative Order No. 96-37 (IRR for Philippine EIS System) SECOND AGRARIAN REFORM COMMUNITIES DEVELOPMENT PROJECT (ARCDP 2) INDIVIDUAL TA REPORT Environmental Safeguards 6  D.2 Coverage under the Philippine EIS System (Issuance of CNC/ECC) There is a standing agreement with DENR on the coverage of the project under the Philippine EIS System (Annex A). The only component covered is the rural infrastructure component at various levels (i.e., ECC or CNC requirements). Under the DENR-DAR agreement, a CNC shall be obtained from DENR regional offices for road reconstruction/rehabilitation, irrigation facilities rehabilitation, drinking water system rehabilitation and multipurpose buildings. An ECC shall be obtained from DENR regional offices for extension of irrigation facilities and construction of drinking water systems. Although not included in the listing, it is presumed that ECC had to be obtained for road construction in accordance with the provisions of the MOA between DENR and DPWH (Annex B). Existing guidelines7 requires the proponerit-LGU shall be responsible for procuring the ECC from the appropriate DENR offices including other permits or licenses from other government agencies. Reports from the field show significantly weak accomplishments in terms of insuring that appropriate pre-development requirements are fully complied with. In terms of compliance with the requirements of the Philippine EIS System, reasons often cited lor failure to submit ECCs/CNCs are the following: * Indifference or willful disregard by LGU concerned in obtaining ECC/CNC. * Lack of capability in preparing document/s that serves as basis for obtaining the ECC/CNC. * Loss of interest in follow-up of ECC/CNC' applications due to red tapes or bureaucratic obstacles/delays and/or alleged graft and corruptions systemic to the DENR review process. * Delay in processing of the ECC/CNC applications at the DENR Regional Offices. * Misunderstanding or misconception on the part of project staff with regard to the coverage of the Philippine EIS System. D.3 Preliminary Environmental Assessment There is a significant lack of environmental data, both baseline and monitoring, that will allow a meaningful environmental assessment of the project. Neither DENR nor ARCDP was able to conduct environmental quality monitoring both before and after project implementation. As such, the only possible environmental assessment that can be done at this stage is indicative - reflecting typical environmental impacts of similar or equivalent projects. Except in rare cases, agricultural practices that are technically sound and sustainable are also environmentally sound and sustainable. However, certain aspects of commonly accepted practices must be carefully considered. Large-scale conversion of ecologically important systems such as mangrove areas, marshlands, forestlands can bring about significant environmental impacts that may be adverse in the long term. Adoption of appropriate agricultural practices may not be enough to outweigh the negative impacts that may result from such conversion. Among the potential adverse impacts are loss of soil fertility andl erosion. 7 Implementing Manual for Rural Infrastructure Components (pp 12) SECOND AGRARIAN REFORM COMMUNITIES DEVELOPMENT PROJECT (ARCDP 2) INDIVIDUAL TA REPORT Environmental Safeguards 7  In the pursuit of development, environrnental considerations must be integrated into project planning and implementation. Potential adverse impacts from certain developmental projects can easily be mitigated by simple solutions. Annex C discusses potential impacts, both positive and negative, that may be brought about the Project. E. STRATEGIES AND APPROACHES The ARC Development framework embraces the concepts of sustainable rural development. Under this framework, DAR hopes to implement agrarian reform in order to attain social equity and promote sustainable development. The accomplishments under ARCDP I had a highly significant achievement in improving the economic outlooks of ARCs/ARBs. There is now a need for a paradigm adjustment in order to ensure that sustainability goes beyond the conventional perspective (i.e., the activities and impacts of the Project will be sustained beyond project life). The Project must also ensure that its activities shall be environmentally sustainable. The basic strategy (Figure 3) through which ARCDP II shall try to attain such objective will be through the formulation and implementation of a basic environmental management system (EMS). The preliminary elements of such EMS are discussed in the succeeding sections. E.A Strategic Environmental Planning for ARCDP II Sustainable development can only be achieved with the active and informed participation of the community and other stakeholders. Under this concept, public participation is a critical mode for achieving poverty alleviation and environmental protection. Development planners, in general, agree that public participation is an essential ingredient for the success of any project planning and development process. However, the elements that constitute public participation are morass of contradictions. The term "public" had always been confused or construed to mean the local leader/s who may have no democratic legitimacy beyond being a member of the social or economic elite. And, "participation" had oftentimes been interpreted as the role of the community to contribute manual labor to the project. Therefore, community empowerment is the key element of public participation. Finally, for community participation to be effective, it must be informed. Figure 3. Environmental Framework for Project Implementation K]Environmental Project J__ ECC/ } i LAssessment j j Design I CNC L;Env. Standards Project Environmenta | L.S&Criteria Implementation L Mgt. Plan f M& E Prolect Env. Monitornn i L System L Operation I -Pl _ SECOND AGRARIAN REFORM COMMUNITIES DEVELOPMENT PROJECT (ARCDP 2) INDIVIDUAL TA REPORT Environmental Safeguards 8  In this context, ARCDP II is at a crossroad of determining the direction of its environmental strategic framework. It can continue its present path of emphasizing economic growth and devote most of its investment to activities that will increase the average incomes in an ARC/ARB. Or, it can start incorporating the principles of sustainable development into the project process at a deeper, more meaningful level. It is proposed that the ARC-beneficiary under ARCDP II be viewed at a higher level - in terms of its contribution and role in local development. Similarly, environmental considerations should now be viewed at a more sophisticated level. Instead of focusing on the environmental impacts of the activity at a project level, the entire milieu of environmental system must be integrated into the planning process. As a case in point, the formal system of environmental assessment must not only consider the impact of an irrigation facility on water availability downstream, but also the impacts of watershed condition upstream of the project on the availability of water. Mitigation or enhancement measures to be implemented must not be limited to those that can be undertaken by project beneficiary, but must also include those within the purview of "higher" authorities (e.g., LGU, NIA, DENR, etc.). These measures will include such macro-efforts such as reforestation, watershed management, etc. Under this perspective, it is now imperative that a portion of project funds be invested in empowering the community through training and other capability building exercises on environmental issues and concems. Environmental awareness must now be included in all capability-building activities to be undertaken by the project. For example, training on livestock raising must nlow include discussions on the environmental impacts including measures or techniques that will mitigate adverse impacts. E.2 Environmental Policies for ARCDP II ARCDP II shall strive to achieve the mission8 of DAR in "implemenung CARP through the distribution of lands and provisions of support services in order to attain social equity and promote sustainable development'. In order to achieve this basic objective, ARCDP 11 shall meaningfully incorporate environmental consideration in its activities and subprojects. Therefore, ARCDP II adopts the following environmental goals as its guiding principles: . Procedures to implement sound environmental management practices that allow for continued improvement within the EMS. * Services that maximize the use of environment friendly materials or the use of environmentally sound technologies that conserve the use of non- renewable resources. * Methods to incorporate design and practice for environmental consciousness in the delivery of services. 8 DAR MC - 05 Series of 1999 SECOND AGRARIAN REFORM COMMUNITIES DEVELOPMENT PROJECT (ARCDP 2) INDIVIDUAL TA REPORT Environmental Safeguards 9  * Identification of relevant environmental and safety requirements to meet goals, objectives and targets formulated and defined through intemal/external assessments and review. E.3 Environmental Management System for ARCDP II In order to ensure that the environmental management system for ARCDP II is properly implemented, the following guidelines shall be adopted. The detailed mechanisms shall be incorporated in the Operation Manual that will be formulated for ARCDP II (see Annex D for the tentative outline of the environmental section/s for the Operational Manual). Environmental Guidelines Environmental considerations shall be integrated in all aspects of the implementation scheme for ARCDP II activities in the following manner: * All projects shall comply with relevant rules and regulations including but not limited to PD 1586 (Philippine EIS System) and the WB Safeguards on Environment. * All LGU-beneficiary shall demonstrate commitment and capability to integrate environmental considerations ir its program of activities or action plans. * All stakeholders (e.g., contractor, NGO-partners, etc.) shall comply with relevant environmental laws. * No activities/subprojects shall be approved without the submission of a CNC or ECC as the case may be. Comprehensive ARCD Plan As screening or selection criteria, the proponent will be required to prepare a comprehensive ARCD Plan. The incorporation of environmental considerations in the Plan shall be mandatory on a graduated scale. The requirements shall be discussed in detail in the Operation Manual. Contractor's Environmental Manaqement Guidelines In the selection of contractors for the implementation of any/all rural infrastructure component, the following guidelines shall apply: * Contractors shall demonstrate a good track record in terms of environmental management systems/plans before they shall be allowed to participate. Such instruments shall be in the form of ISO certifications or certification from DENR Regional OfficeXs concemed that they have not been cited for violations of any environmental laws. . All contractors, upon qualification, shall submit written commitment to comply with all environmental laws.