i

EXECUTIVE SUMMARY

The Community-Based Forest Management Program (CBFMP)

revolutionized forest development and rehabilitation efforts of the government

when it was institutionalized in 1995 by virtue of Executive Order No. 263.

Before the adoption of the CBFM approach, the sole motivating factor of

contract reforestation awardees was primarily financial gains. With the

implementation of the Forestry Sector Project (FSP) using CBFM as its main

strategy to rehabilitate the upland ecosystem, it empowered beneficiary

communities economically, socially, technically and politically while transforming

them into environmentally responsible managers. The tenurial right to develop

subproject sites alongside the various inputs from the Subproject deepened

their commitment to collaborate with other stakeholders in the implementation

of these subprojects.

The Mananga-Kotkot-Lusaran Watershed Subproject is in Cebu Province

and covers the cities of Cebu, Talisay and Danao and the municipalities of

Minglanilla, Lilo-an, Consolacion, Compostela and Balamban. The rehabilitation of

the MKL Watershed is significant considering the declining underground water

supply aggravated by salt-water intrusion on the one hand and the continuing

and pressing demand for water for Metro Cebu’s industries and residents on

the other.

The implementation of Comprehensive Site Development ( CSD )

activities for the MKL Subproject involved the participation of 13 People’s

Organizations to cover the entire expanse of the three watersheds. With an

original target of 5,688 hectares, accomplishment reached only a total of

4,920.75 hectares due to the heavy damage caused by the El Nino phenomenon

in 1998 to some 1.0 million seedlings. Realignment of targets focused

development and maintenance activities on the improvement of these 4,920.75

hectares.

The CSD activities as well as Infrastructure Development nevertheless

provided employment to the local community as well as some technical persons in

need of work. A total of 498,685 man days were generated that resulted to an

estimated increase of 59% in the average annual household income from PHP

15,976 before the project to PHP 25,330 during the project.

The Subproject has succeeded in diverting concentration on forest-

based source of income to non-forest based income sources as PO members

invested part of the PHP 1,868,709.56 Community Forest Development Fund on

various livelihood projects.

ii

In terms of infrastructure, beneficiaries find the farm-to-market roads,

the hanging bridges and footbridges very helpful in facilitating mobility and

ease in transporting their farm products to places of commerce. The irrigation

system and water supply structures on the other hand supplement water supply

requirements of the communities.

The MKL Subproject suffered several setbacks in its implementation but

the same problems had taught valuable insights to both implementers and

beneficiaries.

LIST OF ACRONYMS

ANR Assisted Natural RegenerationAP Assisting ProfessionalBAKANTI Banikanhong Kapunongan Alang sa Nasudnong TingusbwanCBFM Community Based Forest ManagementCBFMP Community Based Forest Management Program

CCCICSM Central Cebu Center for Integrated Catchment System ManagementCCIC CENRO Composite Inspection CommitteeCCNP Central Cebu National ParkCO Community OrganizingCOMMITTA Camp 4 - Manipis - Minglanilla - ToongCOSU Community Organizing and Strengthening UnitSCD Comprehensive Site Development COSW Cebu Uniting for Sustainable WaterDA Department of AgricultureFORI Forest Reseach DevelopmentGIS Geographical Information SystemIEC Information, Education and CommunicationIGP Income Generating ProjectIPBA Institutional Project Benefits AssessmentJBIC Japan Bank International CooperationKLRWFR Kot-kot Lusaran River Watershed Forest ReserveLFA Licos Farmers AssociationLGU Local Government UnitM & E Monitoring and InformationMALTAJ Maghaway-Lagtang-Tapul-JaclupanMCFA Mulao Compostela Farmers AssociationMFMFC Mulao Compostela Farmers Multipurpose CooperativeMWFR Mananga Watershed Forest ReserveNAGMATA Nagkahiusang Grupo sa mga Mag-uuma sa Tag-ubiNGO None-Government OrganizationOECF Overseas Economic Cooperation FundOIDCI Orient Integrated DevelopmentPCEEM Philippine Canadian Environmental and Economic Management ProjectPO Peoples OrganizationPSBA Pamutan Sang Daku Buot - Taop Assn.PSMPC Pung-ol Sibugay Multipurpose CooperativeRAFI Ramon Aboitiz FoundationSDMU Site Development and Management UnitSEC Security Exchange CommisionSMP Survey, Mapping and PlanningSNP Sudlon National ParkSSSFAI Sinsin-Sudlon I Sudlon II Farmers Assn.SUSIMO Subproject Site Management officeTMPC Tabla Multipurpose CooperativeUFMPC United Farmers Multipirpose CooperativeVBU Validation and Billing UnitWFP Work and Financial Plan

TABLE OF CONTENTS

Executive Summary ------------------------------------------------------------------ i

I. Subproject Description ----------------------------------------------------------- 1

1. Purpose/ Objectives

2. Subproject Scope and Dimension

A. Comparison of Original and

Actual Scope and Dimensions

B. Reasons for Revision/ Modification

Of Scope and Dimensions

C. Contribution of Subproject to

Relevant (Sub) Sectors

II. Subproject Implementation --------------------------------------------------- 19

1. Organizations for Implementing

Subproject

2. Implementation Period

3. Subproject Cost

4. Comments on Performance of

AO, AP, PO, M&E, and Infra Contractors

5. Other Matters Relating to

Subproject Implementation

III. Action taken by the AO, AP, and PO ---------------------------------------- 39

Relating to Recommendation(s)

IV. Initial Operation and Maintenance

Of the Subproject Facilities -------------------------------------------------- 41

1. Present Condition of Facilities

2. Organization for Operation and Maintenance

3. Annual Budget or Actual Expenditure

For Operation and Maintenance (by year)

4. Maintenance Method

V. Benefits Derived from the Project -------------------------------------------- 48

1. Indirect Effects

VI. Conclusions and Recommendations -------------------------------------------- 51

LIST OF TABLES:

Table 1 : Trainings Attended by the People’s Organization ---------------------52

Table 2 : Subproject Performance ------------------------------------------------54

Table 3 : Subproject Site Management Office Equipment --------------------- 55

Table 4 : Trainings Attended by SUSIMO --------------------------------------- 56

Table 5a : Swine Production Livelihood Project ----------------------------------57

Table 5b : Rice and Corn Retail Livelihood Project ------------------------------ 58

Table 5c : Micro-Lending Livelihood Project ------------------------------------- 59

Table 5d : Rice and Corn Retail Livelihood Project ------------------------------- 60

Table 5e : Swine Production Livelihood Project -----------------------------------61

Table 5f : Cattle Dispersal Livelihood Project ------------------------------------62

Table 5g : Poultry Raising Livelihood Project -------------------------------------63

Table 5h : Swine Production Livelihood Project ----------------------------------64

Table 5i : Consumer Store Livelihood Project ------------------------------------65

Table 5j : Micro-Lending Livelihood Project ------------------------------------- 66

Table 5k : Consumer Store Livelihood Project ----------------------------------- 67

Table 5l : Micro-Lending Livelihood Project --------------------------------------68

Table 5m : Livestock Dispersal Livelihood Project ------------------------------ 69

Table 5n : Consumer Store Livelihood Project ------------------------------------70

Table 5o : Micro-Lending Livelihood Project --------------------------------------71

Table 5p : Livestock Dispersal Livelihood Project -------------------------------72

Table 5q : Consumer Store Livelihood Project ----------------------------------- 73

Table 5r : Rice and Corn Retail Livelihood Project ------------------------------- 74

Table 5s : Consumer Store Livelihood Project ----------------------------------- 75

Table 5t : Consumer Store Livelihood Project ----------------------------------- 76

Table 5u : Micro-Lending Livelihood Project ------------------------------------- 77

Table 5v : Livestock Dispersal Livelihood Project -------------------------------- 78

Table 5w : Trucking Livelihood Project ------------------------------------------- 79

Table 5x : Rice and Corn Livelihood Project -------------------------------------- 80

Table 6 : Subproject Status Report ---------------------------------------------- 81

Table 7 : Community Organizing Cost Estimate per Activity --------------------82

Table 8a : Cost Estimate for Agroforestry Per Activity ------------------------ 83

Table 8b : Cost Estimate for Enrichment Planting Per Activity----------------- 84

Table 8c : Cost Estimate for Bamboo Plantation Per Activity--------------------85

Table 8d : Cost Estimate for Rattan Plantation Per Activity--------------------86

Table 8e : Cost Estimate for Tree Plantation Per Activity ----------------------87

Table 9 : Monitoring and Evaluation Cost Estimate Per Activity --------------- 88

Table 10 : Infrastructure Project ------------------------------------------------ 89

Table 11 : Annual Work and Financial Plan ---------------------------------------- 98

ANNEXES:

1. Organizational Structure ------------------------------------------------------ 102

1a. PO

1b. M&E

1c. SUSIMO

1d. Infrastructure Contractor

2. Pictures ------------------------------------------------------------------------- 120

3. CSD Accomplishment Map ----------------------------------------------------- 123

1

SUBPROJECT COMPLETION REPORT

of

MANANGA-KOTKOT-LUSARAN WATERSHED SUBPROJECT

Forestry Sector Project

Loan Agreement No. PH-P 135

I. Subproject Description

The Mananga-Kotkot-Lusaran Watershed Subproject is located within the

cities of Cebu , Talisay, and Danao, and the municipalities of Minglanilla, Lilo-

an, Consolacion, Compostela and Balamban, all in the province of Cebu. It lies in

10º 19' 47.49" to 10º 23' 42.77" latitude and 123º 47' 25.15" to 123º 00'

50.17" longitude.

The rehabilitation of the critical Mananga-Kotkot-Lusaran Watershed was

considered by the then Overseas Economic Cooperation Fund (OECF) of Japan

now the Japan Bank for International Cooperation (JBIC) as one of the

subprojects of the Forestry Sector Project – Loan II in Central Visayas in

view of the increasing demand of Metro Cebu’s industries and populace for

potable water.

1. Purpose/Objectives

A) Original (at the time of appraisal)

1. To establish, manage, and safeguard protection zones for

sustenance of water yield and for natural as well as permanent

habitat of endemic wildlife;

2. To rehabilitate and re-vegetate degraded lands in the restoration

zone with indigenous species and to establish soil and water

conservation measures especially along water channels;

2

3. To establish, manage and develop multiple-use zone for the

production of land-based goods and services applying appropriate

land-use technologies;

4. To develop and manage sustainable use zone by improving existing

land uses and by introducing alternative non-forest based

livelihood activities;

5. To establish and develop riparian zones through stream bank

stabilization, planting of bamboo, fruit trees and endemic forest

tree species for erosion control;

6. To educate watershed residents and increase their awareness on

watershed protection, biodiversity conservation, wildlife

conservation and appropriate upland farming technologies.

7. To enforce forest protection laws, rules and regulations through

community-based and multi-sectoral approaches; and,

8. To institutionalize community-based and multi-sectoral capability

in watershed planning and management.

B) Modification

a. Modified purpose/objectives (No Modification was made)

b. Reasons for modification (Not applicable)

(with detailed explanation of the discrepancy between the original

and modified basic plans, where applicable)

2. Subproject Scope and Dimension

A. Comparison of Original and Actual Scope & Dimensions

A.1. Please check: There has been ( revision and/or modification or

no revision and/or modification) of the Subproject scope and

dimensions.

3

A.2. If “revision and/or modification”, please complete the Table.

ITEM Original Scope and

Dimensions (At the

time of

appraisal/Planned)

Revised/Modified

(Actual)

1. REFORESTATION/

WATERSHED/CBFM

A. SMA

B. CO1

RAFI

CRMOI

VALUES

Blessed

Philippines

Total

Year 1

Year 2

5,688 hectares

February 1997 to

February 1999

782.33 hectares

February 1997 to

February 1999;

999.75 hectares

February 1997 to

February 1999;

1,034.74 hectares

February 1997 to

February 1999;

1,210.18 hectares

4,027 hectares

IEC activities

Assistance to

CSD activities

Assistance on

Networking

and Linkaging

Organizational

Development

and Capacity

Building

Livelihood

Project

implementation

Monitoring and

Evaluation

5,688 hectares

February 1997 to

July 2001

230.08 hectares

February 1997 to

July 1999

1,288.08 hectares

February 1997 to

July 2000

1,088.88 hectares

February 1997 to

July 2000

1,601.42 hectares

4,208.46 hectares

IEC activities

Assistance to

CSD activities

Assistance on

Networking and

Linkaging

Organizational

Development and

Capacity Building

Livelihood Project

implementation

Monitoring and

Evaluation

4

C. CSD

1. SOIL EROSION CONTROL

a. Infrastructure

gabion

b. Trail and footpath

c. Tree Plantation

c.1 Riparian Zone

(Bamboo)

2. VEGETATIVE MEASURES2

a. Agroforestry

b. Assisted Natural

regeneration

c. Enrichment Planting

d. Tree Plantation

d.1 Bamboo

d.2Rattan (Protection

Forest)

d.3 Mangrove

d.4 Plantation Spp.

(Production Forest)

e. Timber Stand

Improvement

TOTAL:

3. INVENTORY RESIDUAL

FOREST

4. INCOME ENHANCEMENT

SUBPROJECT

5. INFRASTRUCTURE

Look-out tower

Bunkhouse

Graded trail

Footpath

D. INFRASTRUCTURE

COMPONENT

Hanging bridge

o Brgy. Buot-Taup

(proper), Cebu City

1 unit

1,146 hectares

1,129 hectares

396 hectares

899 hectares

2008 hectares

5,578 ha.

9 units

6 units

1,000 km

30,000 sq.m

1 unit

1,149.20 hectares

1,945.51 hectares

68 hectares

750.11 hectares

1,007.93 hectares

4,920.75 ha.

9 units

5 units

1,300 km

30,000 sq.m

A 62-meter

hanging bridge;

made up of two

(2) 7.90-meter

concrete towers,

5

o Brgy. Lagtang and

Lwaan II, Talisay City,

Cebu.

o Brgy. Mulao,

Compostela Cebu

Concrete Footbridge

o Brgy. Pamutan, Cebu

City

high tensile

strength (HTS)

cables with

lightweight steel

channels for floor

joists, welded

wire mesh

flooring and

cyclone wire

sidings.

An 80-m hanging

bridge connecting

Brgy. Lagtang and

Lawaan II,

Talisay City. It is

made up of two

11.30-meter

concrete towers,

High Tensile

Strengths (HTS)

cables with

lightweight steel

channels for floor

joists, welded

wire mesh

flooring and

cyclone wire

sidings.

A 50-m hanging

bridge made up of

HTS with

lightweight steel

channels for floor

joists, wielded

wire mesh

flooring and

cyclone wire.

A 21-meter

Concrete

Footbridge; made

up of concrete

slab resting on a

6

Water Supply Structures

o Brgy. Pamutan, Cebu

City

o Brgy. Jaclupan,

Talisay City, Cebu

A Pump Irrigation System

o Brgy. Sinsin, Sudlon I,

Sudlon II, Cebu City

single concrete

beam supported

by concrete

columns. It has

G.I pipe railings

and compacted

fill with grouted

riprap

approaches.

A small scale

Water Irrigation

System composed

of a concrete

intake box, one

distribution tank

(capacity 17.248

cu.m.) and

interconnected by

a 227.34 meters

polyethylene

pipeline.

A water system

at Brgy. Jaclupan,

Talisay City,

Cebu. The water

system is

composed of s

concrete intake

box, one concrete

distribution tank

(capacity=17.248

cu.m.) and

interconnected by

a 1.04921-km.

Polyethelyne

pipeline.

Five (5)

distribution tanks

(capacity 17.28

cu.m), a concrete

relief box, and

interconnected by

7

Farm to Market Road

Rehabilitation Project

o Brgy. Tagba-o, Cebu

City

o Brgy. Magsaysay,

Talamban, Cebu City

E. MONITORING AND

EVALUATION

Physical Validation

Year 1

Year 2

Year 3

Inspection Chart

Mapping

9,420 km

polyethylene

pipeline.

A 1.91120-km

rehabilitated

farm to market

road.

A 2.532- km Farm

to Market Road

Sitio Sunog-Sitio

Manunggal

Crossing to Sitio

Sandayong at

Brgy. Magsaysay,

Balamban, Cebu.

Portion of the

road (1.809 km) is

concreted.

Conducted in three

(3) passes;

December 1999 to

May 31, 2003;

4,920.75 hectares

Verification of

boundaries,

monuments, and

block corner

posts

Seedling

production

inventory analysis

Survival Counting

with 20%

sampling

intensity,

including mapping

of developed

areas

8

Institutional and Project Benefit

Assessment

Height and

diameter

measurement,

assessment of

overall health/

appearance

Inspection of

physical

infrastructure

Conducted in two (2)

passes:

June 2002 to June

2003; 4,920.75

hectares

Assessment of

the overall

development of

the PO

Assessment of

the capability of

the PO to pursue

sustainable

resource

management and

sustain its

livelihood

initiatives

Identification of

various

issues/problems/

constraints

related to the

development and

strengthening of

the PO and the

relevant support

systems

Identification of

immediate

benefits of the

project and

9

2. SUSIMO

Equipment provided to

the Office3

evidences that

would indicate the

intermediate and

long-term socio-

economic and

environmental

impacts.

1 unit truck

1 unit Power

Generator

1 set Computer w/

software

1 unit UPS 500VA

1 unit GIS

Software

2 units GPS

1 set Base Radio

Transceiver

4 sets Handheld

Radio Transceiver

2 units Forester’s

Transit

1 unit Typewriter

Manual

4 units Brunton

Compass

6 units Steel

cabinet

1 unit Water

pump

2 units

Steel/Nylon

1 unit Tape/Chain

2 units Diameter

I unit Tape

1 unit Cassette

Recorder

1 unit Planimeter;

1 unit

4 units Abney

Hand Level

1 unit Rain Gauge

. Binoculars

10

Researches conducted

Trainings4

Others

o SUSIMO

Building

4 units Calculator

1 set lettering

1 unit Drafting

Table

12 units Desks &

Chair

2 pcs Camera

1 unit Scanner

2 units Printer

50 pcs Plastic

Chairs

7 pcs VHF-FM

radio

None

Simple

Bookkeeping.

Simple

Worksheet &

Simple

Financial

Statement

Preparation.

Forest

Protection &

Fire Mgt and

Control.

Workshop on

Organizational

Mgt. & CO

Milestones.

Simple Process

Documentation

& record

Keeping.

Basic Auditing

for Non-

Auditors.

Financial Mgt.

Integration.

Renovated the

old Forest

11

o Turned-over

facilities of

Infrastructure

Research

Institute

(FORI) building

at Camp7,

Minglanilla,

Cebu having an

approximate

area of 400

square meters,

worth P200T.

Two four wheel

drive vehicles

(Nissan path

finder & Izuzu

fuego),

Two Cameras,

(Kodak

Advantix)

Two desktop

computers ,

(Compaq)

1 Please refer to Table 1 for the details on training attended by the POs 2 Table 2 details the subproject performance in terms of area planted

3 Table 3 shows the details of the equipment provided to the SUSIMO

4 Please refer to Table 4 for the training attended by the SUSIMO staff

B. Reasons for Revision/Modification of scope and Dimensions

B.1. Where there has been “revision/modification” of the Subproject

scope and dimensions.

Please choose the reason(s) from the following list and check.

Revision of the superior plan (e.g. sector development plan, etc.)

Revision of the supply-and-demand estimate

Large fluctuation in the Subproject cost

Substantial revision of design due to the unforeseeable physical

condition at the time of the original design (e.g. poor soil

condition, etc.)

Natural disaster/unseasonable weather

Unusual circumstances beyond the control of the Executing

Agency

12

Structural and organizational problems of the agencies concerned

(e.g. lack of staff, inadequate coordination with other agencies,

etc.)

Availability of funds (e.g. lack of funds, use of contingency,

fluctuation of the exchange rate, etc.)

Unrealistic initial plan/Technical problems

Procurement problems

Performance of contractor/supplier

Performance of consultant

Change in construction period

Others

B.2. Detailed statement of reasons (with background).

Natural Disaster/Bad Weather.

The occurrence of the El Nino phenomenon in 1998 brought damage to

the seedling production of the People’s Organizations (POs) of

Mananga-Kotkot-Lusaran. Approximately 1.0 million seedlings of

different species for agro forestry and reforestation components

worth millions of pesos were affected by the El Nino phenomenon.

Taking into account the number of seedlings to be produced again and

the cost it may incur, the PO will not be able to generate the required

number of seedlings for reforestation component. This prompted the

DENR and POs to realign the target of different components of CSD.

Performance of contractor/supplier

After five years of project implementation, the PO established only a

total of 4,920.75 hectares out of 5,688 hectares. Result of

assessment conducted in year 2000 however, dictated the revision of

the targets of all subprojects under the Forestry Sector Project

funded by JBIC. Development and other maintenance activities were

focused on the improvement of the 4,920.75 hectares established

plantation.

Others

o On Monitoring & Evaluation (Policy Change)

Before the adoption of MC 2001-04 entitled “Revised Guidelines in

the conduct of Monitoring and Evaluation in the Forestry Sector

Project”, monitoring and evaluation (M&E) of FSP subprojects’

accomplishments employed the Inspection Chart Mapping (ICM)

system, whereby, there was a 100% counting of seedlings planted and

13

dealt only on the physical aspect. Review of policy, however, resulted

to the adoption of MC 2001-04 that specified the conduct of an

independent review and assessment of not only the physical

components of the subproject but also came up with the Institutional

and Project Benefit Assessment (IPBA).

o On Infrastructure Component (added component of the

FSP)

An intensive review and assessment of the status of each subproject

was conducted by the NFDO through the Technical Assistance team

in CY 2000. Results of the assessment justified the inclusion of the

Infrastructure Support Project in the FSP II. The Infrastructure

Support Project aimed to promote the livelihood development of the

PO through the rehabilitation of the poor road condition that

hindered livelihood development and /or other infrastructure support

that the PO deemed necessary for the promotion of their livelihood

projects.

o On SUSIMO Creation (Project Management Office

Initiative)

Results of the assessment likewise, compelled NFDO to institute a

system that would provide effective and efficient management of the

Subproject on the ground level. Creation of the Subproject Site

Management Office (SUSIMO) manned by the DENR permanent

personnel was found to be the proper approach, hence, the issuance

of the Department Administrative Order (DAO) No 2000-65 that,

mandated the Regional Office and the field Offices to install the

SUSIMO for each subproject site. Simultaneous with SUSIMO

creation was the capability building of its staff through the provision

of the technical, financial and management trainings. Facilities such as

buildings and other equipment were likewise provided to the SUSIMO

for sound subproject administration.

C. Contribution of Subproject to Relevant (Sub) Sector(s)

c.1. (Sub) Sector(s) to which the Subproject belongs

Electric power and Gas Telecommunication Social

services

(Multipurpose) Dams Telecommunications Water

supply

Power Plants Broadcasting Sewerage

Transmission lines Education

14

Distribution Systems Irrigation and Flood control Health

Gas Irrigation Tourism

Others Flood control Others

Transportation Agriculture, Forestry and Fisheries

Roads Agriculture and Forestry

Bridges Fisheries

Railways

Airport Mining and Manufacturing

Ports Mining

Marine Transportation Manufacturing

Others

C.2. Original (At the time of appraisal/Planned)

Item Description

1.Site development and rehabilitation

2. Livelihood Development Projects

3. Management of the Community

Based Forest Management Agreement

The Subproject at full development

is expected to increase the extent

of forested area in the watershed,

which in turn will increase volume

of wood and minor forest products

at a substantial level, bringing

about stumpage and other

plantation products build-up.

The water yield of watersheds is

expected to increase substantially

and will generate sufficient and

sustained amount of water in Cebu

City and nearby municipalities.

It will provide positive economic

spillover downstream.

Additional livelihood projects will

be identified and implemented by

the communities to augment

household income of the watershed

communities while waiting for major

harvests from the agro forestry

component of the Subproject.

CBFMA management will generate

employment opportunities

15

(CBFMA) Area.

equivalent to 11.81 million person-

days for a period of 26 years or an

annual average of 454,295 person-

days. This is equivalent to a total

labor of 47,247 workers in 26

years or an average of 1,817

workers annually.

There will be an increase in annual

household income estimated at

P6,025 for the first year up to

P26,268 for the fifth year or a

total of P112,155 for five years.

This will give an average increase of

P22,432 per household annually.

C.3. Present situation and outlook for the future

Item Description

1.Issuance of land tenure

2. Established plantation

Instead of CBFMA, PACBRMA will be issued to

the POs since MKL is within the proclaimed

protected area. The 13 POs of MKL through

the SUSIMO already submitted their

application for PACBRMA to the respective

Protected Area Management Boards (PAMBs)

of MKL Watershed Subproject. To date,

issuance of PACBRMA is still being processed.

Delay in the formulation of the implementing

guidelines for the issuance of PACBRMA

greatly affects the trust & confidence of the

upland communities. Once the PACBRMA is

issued to the POs, they will be motivated to

manage the area sustainably.

Efficiency and effectiveness of the POs in

protected area management will depend on the

assistance to be provided by the DENR-PAMB

and SUSIMO.

The CSD area of BUKID MPC and UFMPC

includes the remaining natural growth of Mount

Manunggal and the Tabunan Forest

respectively. The vegetation on the slopes

towards Mt. Manunggal still contains species

16

3. Livelihood Development5

commonly found only in natural forest, although

there is great reduction in big trees. Several

dipterocarp species are still present in big part

of such slopes.

Based on the CUSW’s Final Pass Report, Eight

(8) out of thirteen PO’s are above the standard

Weighted Average Survival Rate (WASR), with

WASR ranging from 82% to 93%, while the

other five (5) PO’s are below standard WASR,

ranging from 30% to 79%. Eventually, four (4)

POs passed and claimed their respective

retention fees.

A total of 4,920. 75 hectares was established

by the POs with a weighted average survival

rate (WASR) of 85.46%. With the above

accomplishment the extent of forested area in

the watershed increased. At full development,

there will be an increase in wood volume and

quantity of minor forest products at a

substantial level. Thus, stumpage and other

plantation products build-up in the long run.

The water yield of watershed will also increase

substantially and will generate sufficient and

sustained amount of water in Cebu City and

nearby municipalities, thus, there will be

positive economic spill-over downstream.

The Subproject implementation has diverted

the attention of the community from forest-

based source of income to non-forest based

income sources. Presently, the POs of MKL are

investing much of their CFDF into individual

livelihood projects. Some POs are engaged in

vegetable production and have tied up with

MACRO supermarket for the marketing of

their products. Other POs are into consumer

stores, grocery stores, micro-financing and

others. A cumulative CFDF is P1,868,709.56,

with P11,550.00 as the smallest and

P1,258,000.00 as biggest CFDF among the 12

POs.

17

4.Comprehensive Site

Development Activities

5.Agroforestry

development

Given the necessary support through

continuous trainings on technical aspects of

livelihood projects, marketing, linkaging and

financial management systems, competency

level of these thirteen POs will increase, thus,

will enable them to expand their livelihood

projects and do away with the forest-based

means of livelihood,

The Subproject generated employment

opportunities equivalent to 1,050 workers

(employment ranging from 90 to 700 days) for

a period of seven (7) years from different CSD

activities and infrastructure development.

The Subproject activities increased the annual

household income at an estimate of 59% or

an annual additional household income of

P9,354.00 for seven (7) years.

Planted fruit trees, particularly cacao are

growing well and becoming visible vegetative

component of developed areas, although these

are in relatively small parcels. There are some

indigenous tree species that exhibit promising

growth performance, such as pangantoon,

bagalunga, himbabalud and molave. Mangiums

planted in 1998 showed highest average

diameter of seven centimeters (7 cm.) and

eight meters (8 m.) in height for SSSFAI and

MCFA plantations.

The agro forestry component of BUKID MPC is

associated to intensive human intervention and

if applied to areas with natural growth, the

project is expected to do more damage than

development to the natural resources and soil

conservation. It was also noted that BUKID

MPC’s activities did not include schemes for

protection and production forests (ViFARD 2nd

Pass Report). This observation is also true with

UFMPC CSD areas near the Tabunan Forest.

BUKID MPC’s CSD area has a wide coverage.

Similar rehabilitation works should be

18

6. Conduct of Maintenance

and Protection activities

expanded to adjoining area that needs similar

land development. The PO has the advantage of

having big areas needing development, since

the area can be used to request for additional

funds or to secure new project. However, the

organization should continue concentrating on

degraded areas that are more or less

dominated by grass. While much of the planted

sites are indeed in denuded sites, isolated

parcels of this kind within the covered areas

remain unplanted.

A total of 1,945.51 hectares was planted to

agroforestry crops and has a weighted average

survival rate of 84.78%. Harvest will be

abundant in just few years to augment annual

household income of the community. Once

harvests of agro forestry products boom,

processing of such is deemed necessary to

optimize gain from the products. Trainings and

capability development as well as funds support

are encouraged to sustain the agro forestry

development as an alternative source of

income.

Further development is likewise encouraged

for the optimum use of the land.

There is no more funds for maintenance and

protection activities, but through the CFDF,

allocation for such has been provided.

Presently, the PO has been able to meet the

standard survival percentage.

Maintenance of established plantations must

be continued especially that the plantations

are in their critical stage. Funding must either

be allocated from the regular DENR budget or

solicited from other funding agencies including

the private sector. NGOs working in the area

must be encouraged to participate in

supporting the maintenance activities, such as

adopting a particular plantation area and

working with POs concerned.

19

7.Infrastructure

Development/Rehabilitation

Through the effort of the SUSIMO, the

Philippine Canadian Environmental and Economic

Management Project (PCEEM) installed the

water system benefited by almost 380 families

in barangay Mulao, Lupa, Compostela Cebu.

Different infrastructure projects have been

constructed/rehabilitated in the site to

support the livelihood development activities of

the POs, such as:

o The rehabilitated farm-to-market

roads, hanging bridges and footbridges

provide accessibility to the community as

well as ease of transport of the farm

products thus, increasing profitability.

o Irrigation system and water supply

structures that provide irrigation and

domestic water supply to Brgys. Pamutan,

Jaclupan, Sinsin, Sudlon I and Sudlon II.

5 Please refer to Table 5 for the livelihood projects being implemented by the POs

II. Subproject Implementation

1. Organizations for Implementing Subproject

Function in the Name of Organization Reasons for

Subproject

Implementation

(1) Original (2) Changed Change

1. SMA

2. AO for CO

3. AP

By Administration

o BLESSED Phils.

Inc.

o VALUES Inc.

o CRMOI

o RAFI

JUDAH ALIPOSA

JUSTINO

BRIONES

JUSTINO

BRIONES

ISIDRO

DINEROS

BRIGITTE

YANOC

JUDAH

ALIPOSA

resigned from

OIDCI as an AP

after receiving

a better job

20

4. PO

5.M&E Contractor

Physical

Component

and Socio-

institutional

Institutional

and Project

Benefit

Assessment

(IPBA)

6. Infrastructure

Contractor

1. MALTAJ

2. CAMMITA

3. SSSFAI

4. PSBA

5. PSMPC

6. UFMPC

7. TMPC

8. MFMPC

9. MCFA

10. NAGMATA

11. BAKANTI

12. LFA

Cebu Uniting for

Sustainable Water

(CUSW) Inc.

1. PMC

Construction

2. WERR Corp.

(International)

o BUKID MPC

ViSCA Foundation

for Agric’l. and

Rural Dev’t.

(VIFARD)

offer from FPE

in terms of

salary & scope

of work.

Additional PO

was tapped by

DENR to be

contracted for

the

establishment

of backlog in

CSD

Both Physical

and

Institutional

components

were awarded to

CUSW, but

CUSW did not

complete the

IPBA. Hence, a

new contract

for Institutional

& Project

Benefit

Assessment was

awarded to

VIFARD.

21

Please state:

1.1 Reasons for the change

On Assisting Professional (AP)

After a year of being an AP of the MKL Watershed Subproject, Mr.

Judah S. Aliposa, resigned to pursue a career development path.

Considering the number of POs in MKL that need assistance,

replacement of Mr. Aliposa was deemed necessary, hence, SUSIMO

requested the Project Management Office (NFDO) and the OIDCI to

hire not just one but two AP’s in the persons of Mr. Isidro Dineros

and Ms. Brigitte Yanoc.

On Comprehensive Site Development

The willingness of the BUKID MPC to implement and complete the

backlogs in CSD area and with the strong support of LGUs of

Balamban, Cebu City encouraged the SUSIMO to award a 600-hectare

CSD contract to BUKID MPC. BUKID MPC was organized by the LGU

of Balamban, Cebu City in 2000 while, strengthening and capability

building trainings were conducted and facilitated by the SUSIMO and

AP.

On Monitoring & Evaluation

The original contract of CUSW was designed to conduct both the

physical evaluation and Institutional & Project Benefit Assessment of

the POs of MKL Watershed Subproject. Considering the area

coverage and the scattered location of the area of the thirteen POs,

it seemed that CUSW could not cope with conducting both activities

at once. Consequently and in compliance with MC 2001-04, the DENR

decided to split the M&E activities and awarded the Institutional and

Project Benefit Assessment to ViFARD, Inc. to ensure completion of

M&E activities on time.

1.2 Problems arising, counter measures adopted and results

Problems Measures Adopted Results

A.. On Community

Organizing

1. The AO (VALUES)

abandoned its CO

contract in 1999 and

The Regional DENR

management provided

project officer, aside

The PO was able to

recover the backlog of

SSSFAI.

22

left some financial

obligation to SSSFAI.

2. Weak Organizational

and Financial

Management of POs.

3. Lack of appreciation

and awareness about the

project by some PO

members brought about

cultivations in portions

of developed areas by

claimants (tenants or

absentee claimants) for

their basic needs.

from the site

coordinator, to supervise

the implementation of

the CO and SSSFAI CSD

contract in 1999.

The SUSIMO and PO

conducted Training

Needs Assessment TNA),

thus, prioritized the

conduct of trainings and

seminars on record

keeping, bookkeeping,

auditing, and

documentation of

minutes of meeting.

SUSIMO and AP

intensified the IEC

and conducted house

to house

meetings/discussions

during regular,

emergency and BOD

meetings.

The SUSIMO and AP

adopted a Joint

monthly meeting

among the 13 POs,

SUSIMO and APs to

discuss all issues,

problems, and

concerns in the

project

implementation.

Some PO association/

organization

capacitated on

organizational and

financial aspect

Systems on

organizational and

financial aspects were

installed

functional/operational

.

Clarified roles,

responsibilities and

functions of PO

Officers, members

and BODs.

Increased awareness

of PO in project

implementation, thus,

encouraged other

interested claimants

and tenants to

participate in the

plantation

establishment

Increased degree of

coordination between

and among the DENR,

POs and LGUs.

Shared lessons

learned.

POs’ monthly action

plan prepared.

23

B. On Comprehensive

Site Development

1. Unsatisfactory per-

formance of AO and

some POs at the early

stage of project

implementation.

Only one site

coordinator was assigned

at first to monitor the

project implementation

covering 12 POs of 39

Barangays with an area

of more than 5,000 ha.

The site coordinator,

being alone, could not

monitor the

performance of the AO

and PO properly. This

resulted to poor

performance (average

survival of 65%) of the

project.

2. Regional directive to

conduct 100% inventory

of the CSD

accomplishments.

3. Unavailability of area

to be developed under

the CSD.

Most of the members of

the organized PO have

SUSIMO installation:

SUSIMO staffs were

deployed to monitor and

supervise the CSD

activities of two-three

POs.

Provision of three

AP’s to assist the 13

POs as part of the

SUSIMO installation

and capacitation.

Close monitoring and

supervision by the

SUSIMO and AP was

employed.

POs were assisted in

the preparation of

the monthly CSD

work plan as their

basis in the regular

assessment of CSD

performance.

No action

Canvassers

(approximately 65

There was sufficient

staff to monitor and

supervise the

performance of the

AP and PO. Validation

and billing process

was shortened and

facilitated from an

average of 3 months

to 1 month.

Improved quality of

plantation

Out of 13 PO’s, 12

have claimed their

retention fees. Only

one PO (PSMPC) did

not receive the

retention fee because

of low survival rate

(35% survival rate),

but was able to

manage the livelihood

project.

Incurred delays in the

processing of billings due

to extensive validation

procedure, which caused

loss of interest of some

POs to perform the CSD

activities.

The POs of MKL were

able to meet the revised

24

no area to be developed.

Sometimes the tenant

wanted the area be

planted but the

absentee claimant did

not allow planting, or

vice versa.

4. Poor Quality of

plantations due to

absence of maintenance

activities.

5. Lack of support from

Local Government Units,

except for BUKID MPC

(Barangay level), most

members of the PO was

influenced by the LGUs.

6. Rodents attacking

jackfruit plantations at

an alarming (90%

damaged) rate,

particularly SSSFAI’s

plantations. These pests

ate the succulent part

of the stem and barks of

the jackfruit seedlings

once out planted in the

field.

persons) were employed

by the PO to identify the

area for development

charged to CSD fund, it

incurred approximately

an amount of P572,000

for the canvasser only.

The SUSIMO conducted

intensive IEC on the

project to win the

support of most LGUs in

the subproject site.

The POs applied chemical

(COALTAR) to minimize

infestation.

The PO changed the

species used for planting

from jackfruit to

starapple.

target but of different

area per component. Most

of the target area under

reforestation was

converted into

agroforestry.

The very low survival

rate of PSMPC is

attributed to stray

animals, and apathy or

loss of interest and

dissatisfaction of

stakeholders

concerned who

allegedly did not allow

the conduct of

maintenance activities

in the plantation

within their claimed

area.

After series of dialogue,

coordination and IEC, the

SUSIMO and the PO

gained support of the

LGUs concerned.

No significant effect

because the smell would

fade after several days

of exposure.

Rodents no longer attack

starapple seedlings,

apparently because of its

hardness.

1.3 The latest organization chart (or equivalent) for the implementation

of the Subproject is ( attached or not available).

25

Organizational Charts of the thirteen (13) POs, M&E Contractors, and

Infrastructure Contractors are attached and marked as Annexes

1a1-1a13, 1b1-1b2 and 1d1-1d2, respectively.

1.4 If the organizational chart (or equivalent) is not available, please

state the reason.

Organizational Charts of the CO contractors (RAFI, CRMOI,

VALUES, Blessed Philippines) are not on file. Securing of such was

explored by the region, but still neither Organizational Structure nor

its equivalent was secured.

2. Implementation Period

A. Comparison of Original Schedule and Actual Period

Please fill in the following blanks with actual period for each item.

ITEM

ORIGINAL SCHEDULE

ACTUAL PERIOD

1. SMA

1. Contract of AO for CO

2.1 RAFI

2.2 VALUES

2.3 CRMOI

2.4 BPI

3. Contract of PO for

CSD

3.1 MALTAJ

3.2 CAMMITA

3.3 SSSFAI

3.4 PSBA

3.5 PSMPC

3.6 UFMPC

3.7 MFMPC

3.8 MCFA

3.9 LFA

3.10 TMPC

3.11 NAGMATA

3.12 BAKANTI

3.13 BUKID-MPC

4. Contract of NGO for

M&E

February 1996 – July 1996

Feb. 12, 1997 – Feb. 12. 1999

Feb. 12, 1997 – Feb. 12. 1999

Feb. 12, 1997 – Feb. 12. 1999

Feb. 12, 1997 – Feb. 12. 1999

Oct. 15, 1997 – Oct. 15, 2000

Oct. 15, 1997 – Oct. 15, 2000

Oct. 15, 1997 – Oct. 15, 2000

Oct. 15, 1997 – Oct. 15, 2000

Nov. 14, 1997 – Nov. 14, 2000

Nov. 14, 1997 – Nov. 14, 2000

Nov. 27, 1997 – Nov. 27, 2000

Nov. 26, 1997 – Nov. 26, 2000

Nov. 26, 1997 – Nov. 26, 2000

Nov. 27, 1997 – Nov. 27, 2000

Nov. 27, 1997 – Nov. 27, 2000

Nov. 27, 1997 – Nov. 27, 2000

Dec. 28, 2000 – Jun. 30, 2003

February 1996 – July 1996

Feb. 1997 – July 2001

Feb. 1997 – Jan. 2000

Feb. 1997 – June 1999

Feb. 1997 – July 2000

Oct. 1997 – June, 2003

Oct. 1997 – June, 2003

Oct. 1997 – June, 2003

Oct. 1997 – June, 2003

Nov. 1997 – June, 2003

Nov. 1997 – June, 2003

Nov. 1997 – June, 2003

Nov. 1997 – June, 2003

Nov. 1997 – June, 2003

Nov. 1997 – June, 2003

Nov. 1997 – June, 2003

Nov. 1997 – June, 2003

Dec. 200 – June, 2003

26

4.1 CUSW

4.2 ViFARD

5. Contract of

Infrastructure

Component

5.1 PMC

5.2 WERR Corp.

Completion

(completion of

Subproject)

Dec. 1999 – June 2001

June 2002 – June 2003

Dec. 12, 2002 – June 30, 2003

Dec. 12, 2002 – June 30, 2003

June 30, 2000

Dec. 1999 – May 20‘03

June 2002 – June 2003

Dec. 12, 2002 – July 31,

2003

Dec. 12, 2002 – July 31,

2003

October 24, 2003

Please refer to Table 6 for the subproject status report

Notes: Completion of the Subproject was defined as ( completion ceremony or

final disbursement or other than the above.

The completion date was scheduled for June 30, 2000 (at the time of

appraisal) and is indicated (thus ) in the above Table.

B. Reasons for Delay or Early Completion

B.1. In case of delay or early completion, please choose the reason(s)

from the following list and check.

Change in scope/dimensions

Natural disaster/bad weather (e.g. earthquake, typhoon, etc.)

Shortage of funds/Fluctuation of the exchange rate

Problems in procurement

Inflation

Unusual circumstances beyond the control of the Executing

Agency

Structural and organizational problems of the agencies concerned

(e.g. lack of staff, inadequate coordination with other agencies,

etc.)

Legislative matters

Unrealistic initial plan/Technical problems

Performance of contractor/supplier

Performance of consultant

Others

27

B.2. Reasons and background for delay or early completion

Change in scope and dimension

o On Comprehensive Site Development

Intensification of maintenance activities such as: ringweeding,

cultivation and application of fertilizers (RCF) and patrolling to

improve the quality of plantation brought the change in schedule of

the implementation period of the CSD activities pursuant to MC

2000-19 entitled “Guidelines Governing the updating of Cost and

Intensification of Maintenance activities in the FSP Subprojects

funded by JBIC.”

o On Infrastructure

Duration of the infrastructure activity was affected by different

variation orders made by the contractors for effective and efficient

use of different infrastructure projects, such as:

a. Pump Irrigation System : A need to install the 3- Phase electrical

power supply to Sinsin-Sudlon Pump Station. Originally, installation

of power lines is not incorporated in the technical plan of the

water system in Barangay Sinsin, Sudlon I, Sudlon II, but, during

its initial operation it was found out that there is no power supply

to operate the pump irrigation system, thus, this variation order;

b. Hanging bridge: Transfer or relocation of the original contract for

a 72-meter hanging bridge at Brgy. Jaclupan to an 80 meters

hanging bridge at Brgy.

Lagtang, Talisay Cebu.

Jaclupan is accordingly

the site of another

proposed bridge to be

constructed from the

Countrywide Development

Fund (CDF) of the

Congressman of Talisay

City.

28

Natural Disaster/Bad Weather.

o On Comprehensive Site Development

The occurrence of the El Niño Phenomenon in 1998 hampered the PO’s

production of planting materials and also caused high mortality (50%)

of out planted seedlings. It was aggravated by Typhoon Nanang that

hit Cebu in November 2001 causing landslides, gully erosion and

floods. This brought considerable damage (30% of the area) to the

established plantations of MALTAJ, PSMPC,PSBA,SSSFAI, UFMPC

and BUKID MPC. Re-planting and other maintenance activities to

recover the damage were conducted during the extension period.

o On Infrastructure

Typhoon in 2002 damaged a portion of the rehabilitated farm-to-

market road in Barangay Magsaysay, Balamban, Cebu City. The

contractor again conducted the repair job which delayed the

completion of infrastructure project.

Problems in procurement

Difficulty in procuring the services of the Community Organizing

contractor had been the experience of the MKL, attributed to the

cost allocation over the location and size of the target communities.

The DENR Region 7 had posted notice of bidding for the conduct of

the community organizing for Mananga-Kotkot-Lusaran, only one (1)

NGO had shown interest. So, it was declared failure of bidding due to

insufficient number of bidders. Other NGOs had backed-out before

the bidding process, apparently, due to low CO cost.

Structural and Organizational Problems of the Agencies

Concerned

At the start of implementation, only one site coordinator (which later

became three) was assigned to facilitate and supervise the

Subproject implementation. Being alone, supervision and monitoring

the performance of the four (4) AOs and twelve (12) POs of thirty-

nine (39) barangays covering an area of 5,578 hectares became

ineffective that resulted to poor quality of the plantation with just

an average survival of 65%.

Poor performance of the POs is also attributed to the procedure and

composition of team that conducted inspection and validation of

accomplishments of AOs and POs. Composite Inspection Team (CIT)

29

or Composite Inspection Committee (CIC) members were not on full

time basis in the FSP as evaluators. Delay in the conduct of validation

also delayed the processing and release of payments to the POs, with

the domino effect in the implementation of the CSD activities of the

POs.

Installation of SUSIMO by virtue of DAO 2000-65 seemed to be the

appropriate strategy for effective and efficient management of the

Subproject but in the case of MKL, it did not easily materialize.

Considering the need for 19 SUSIMO staff for MKL alone, the DENR

R-7 could only deploy even just eight (8) personnel, which is still

insufficient to carry out the tasks mandated by DAO 2000-65.

Delays in the provision of assistance, facilitation, supervision and

validation of POs accomplishments were still encountered, although

minimized.

Legislative Matters.

Since MKL Watershed Subproject is within the four (4) proclaimed

protected areas of Cebu namely; Mananga Watershed Forest Reserve

(MWFR), Kotkot-Lusaran River Watershed Forest Reserve (KLRWFR),

Sudlon National Park (SNP) and Central Cebu National Park (CCNP),

CBFMA could not be issued to the 13 POs, hence, occupants were

hesitant to participate in the project. In 2002 through DAO No. 02

the establishment and management of the Community Based Program

within the protected area has been allowed through the issuance of

the PACBRMA as its tenurial instrument. Henceforth, requirements

for the processing and issuance of PACBRMA had been worked out

and complied with by the POs, SUSIMOs and Protected Area

Management Boards (PAMBs). However, issuance of the tenurial

instrument is still pending due to the long delay in the approval of the

management zones of MKL. Thus, loss of trust and confidence to the

DENR by the occupants further contributed to the non-participation

of the residents in the project implementation.

Unrealistic initial plan/Technical Problem/Performance of the

Contractor/Supplier

During the preparatory stage, appraisal of the site had been

conducted by the DENR personnel to evaluate the feasibility, viability

(economic and financial aspects), and social acceptability of the

project. Local communities had been consulted; however, there was no

direct participation of local communities in the planning process even

in the preparation of the Work and Financial Plans (WFPs) of the POs.

This resulted to rejection of some recommended species by the local

30

communities, primarily, due to its poor performance in that area as

observed by the POs during implementation; over-estimation of areas

for plantation over the actual available area due to the resistance of

the absentee claimants to plant their claimed lots and low acceptance

of the project by the communities.

Convincing the target participants to implement the project took long,

since the Community Organizing activity was awarded in 1996, but the

PO started nursery operations only in 1998. Another contributing

factor to the delay was the need to revise the WFPs to incorporate

the preferred species of the communities in order to gain their active

participation and willingness to plant their claimed area for the

project.

Deployment of inexperienced and not well-trained CO staff resulted

to resistance of the community to accept the project. There was

weak information, education and communication campaign by the CO-

workers. Furthermore, the CO activities were conducted as what the

guidelines provided and not based on the needs of the community.

Performance of the Contractor/Supplier

Since, the contractor awarded with the infrastructure component is

based in Luzon, heavy equipment necessary for the farm-to-market

road construction such as bulldozer, dump truck and the like, need to

be transported from Luzon, and thus incurred significant delay in the

completion of the infrastructure project. Further, a portion of the

rehabilitated farm-to-market road in Brgy. Magsaysay was of

substandard quality and was easily damaged by the typhoon.

Others (Insufficient fund for M&E activity and Policy Change)

Considering the size and location of approximately 3,000 patches

plantations (with an average of 1.3 ha per patch) of thirteen (13) POs

in MKL, the cost provided for the conduct of monitoring and

evaluation was not sufficient enough prohibiting the CUSW to hire

required number of workers to do the M&E activity. There was

therefore a delay in its completion.

Another factor that affected the schedule of the M&E activity was

the adoption of the MC 2001-04 or the “Revised guidelines in the

Conduct of the Monitoring and Evaluation” wherein contracts for the

Institutional and Project Benefit Assessment (IPBA) and Physical

components must be awarded separately.

31

C. Remedial Action Taken in Each Case of Delay

Change in scope and dimension

o On Comprehensive Site Development

Pursuant to MC 2000-19, corresponding revision of the WFPs and

amendment of the CSD contracts were undertaken by the PO and the

site coordinator, to effect the increase in frequency of the ring

weeding passes, application of fertilizer and the conduct of patrolling

in the area for further improvement in the quality of the established

plantations.

o On Infrastructure

As regards the infrastructure project, different variation orders

made by the infrastructure contractors had been approved by the

PMO.

Natural Disaster/ Unseasonable weather

To minimize damage of El Nino phenomenon, the POs were instructed

to apply leaf pruning and practice mulching (in the plantation) to

lessen the transpiration rate of seedlings; provide additional shade in

the nurseries; purchase additional watering equipment/ tools/

facilities like drums, hose and water pump; construct water-

impounding dams for nursery and encourage backyard nursery.

Moreover, the POs conducted intensive replanting in the damaged

area. Likewise, they implemented the maintenance and protection

activities specified in MC 2000-19 during the extension period.

Problems in procurement

Since, there was a failure of bidding for Community Organizing, a

negotiated bidding took place. Hence, CRMOI, VALUES, RAFI and

BLESSED Philippines were awarded with the Community Organizing

contract for Mananga-Kotkot-Lusaran in 1996.

Structural and Organizational Problems

Implementing the DAO 2000-65 or the SUSIMO creation was

deemed appropriate for effective and efficient management of the

Subproject in the field level. In the case of MKL however, this was

not the outright solution as called for by the need to deploy 19

SUSIMO staff. The SUSIMO instead adopted the following

32

strategies to address the need of the POs on technical, financial and

management aspects:

a. Site Coordinator scheme in the supervision and provision of

technical assistance to the PO in the plantation establishment,

maintenance and protection activities;

b. Tapping the technical assistance of the personnel from the

DENR-RO, Central Cebu Center for the Integrated Catchment

System Management (CCCICSM), PENRO and CENROs for the

conduct of technical, financial and management trainings for

POs’ strengthening and conduct of field validation.

c. Hired foresters on a contractual basis (charged to the

project) in the last quarter of CY-2001 as approved by the

PMO Central Office and fielded to the different POs of MKL

Watershed Subproject to provide technical assistance/advice

and to oversee the actual CSD implementation of the POs.

Legislative Matters.

The MKL SUSIMO encouraged PO presidents/chairpersons to apply

for membership in the PAMB (some are already PAMB members) so

that they

could participate in the planning and development of the protected

area. For the PACBRMA issuance, the SUSIMO also sent tracer-

letters to the offices concerned on the status of the POs application

for PACBRMA and for the PAMB to make follow-ups in the DENR

Central Office with regard the submitted management zones.

Unrealistic Initial Plan/Technical Problems/Performance of the

Contractor.

The SUSIMO instructed the POs to prepare resolutions for

changing/adding of species to be planted in their respective areas and

assisted in the preparation of their plans and resolutions. For the POs

who had difficulty in accomplishing their target areas as per CSD

contract, the SUSIMO successfully convinced these POs to reduce

their areas based on their capabilities and award the same to POs of

good standing. Likewise, corresponding revision and extension of

contracts have been undertaken.

Extension of the contract duration was granted for infrastructure.

33

Others (Insufficient cost for M&E activity and policy change)

The Regional Office encouraged the M&E contractor to undertake

the activity by allowing them to just identify and indicate the relative

location of the patches plantation while the SUSIMO would

determine the area planted per stakeholder.

In compliance with MC 2001-04, issuance of separate contracts for

socio-institutional and physical components had been made.

3. Subproject Cost

A. Comparison of Original Estimated Cost and Actual Expenditure (by

Component)

Item

Original Cost

(based on appraisal)

(in M pesos)

Actual Expenditures

(in M pesos)

SMA

Community

Organization

Comprehensive

Site Development

Monitoring

and Evaluation

Infrastructure

Dev’t

Subproject

Coordinating

Office

(SUSIMO)

7.248600

100.835388

5.938672

31.940664

3.019450

6.388486

94.753681

5.921526

33.655122

3.019450

Total 148.982774 143.738265

Please refer to Tables 7, 8a-e and 9 for the details on cost of CO, CSD and M&E,

respectively. List of Infrastructure projects with its corresponding cost is also attached as

Table 11.

B. Reasons for Difference between Original Estimated Cost and

Actual Expenditure

B.1. If there is any difference between Table a.1 and Table a.2 in

Paragraph a, please choose the reason(s) from the following list

and check.

34

Increase in reconstruction cost arising from natural

disaster/unreasonable weather (e.g. earthquake, typhoon, etc.)

Increase or decrease arising from a change in construction period

Increase or decrease arising from inflation

Increase or decrease arising from fluctuation in the exchange

rate

Increase or decrease arising from a change in the scope/work

volume of the Subproject

Decrease arising from keen competition in tender

Unusual circumstances beyond the control of the Executing

Agency

Unrealistic cost estimates/Technical problems

Others

B.2. Description of the detailed reason(s) and background

Increase or decrease arising from a change in the scope/work

volume of the Subproject

o On Comprehensive Site Development

Despite updating of cost and intensification of the maintenance

activities of the POs per MC 2000-19, as well as the granting of

contingency funds to some POs, still the CSD cost decreased because

of the series of revision, reduction and re-alignment of targets from

one PO to another.

o On Monitoring and Evaluation

Although, implementation of MC 2001-04 brings an increase in cost

of the M&E because of the increase in cost per hectare on physical

aspect and additional fund provided for IPBA, this was not the case

for MKL. Adoption of the revised guidelines brought a decrease in

the number of passes and the area covered by the M&E and thus

reduced the M&E cost.

o On Infrastructure

Different variation orders brought decrease in cost of some specific

infrastructure projects, however, installation of the electrical power

supply in pump irrigation system in Brgys Sinsin, Sudlon I and Sudlon

II caused increase in total cost of infrastructure project.

35

Unusual circumstances beyond the control of the Executing

Agency

Decrease in cost of the Community Organizing was caused by the loss

of interest by the CRMOI to claim the retention fee due to the billing

requirements of the DENR.

Others (performance of the contractors)

o On Community Organizing

Decrease in cost was mainly due to the unaccomplished CO activities

of some AOs, whereby only two (2) of the four AOs successfully

received their respective retention fees.

o On Comprehensive Site Development

Reduction in CSD cost is an indication of the poor performance of the

contractors. Failure of the POs to establish the target up to CY2000

forced the DENR to reduce the 5,688 hectares to 4,920.75 hectares.

C. Action taken in Case of Cost Overrun and Results

Additional obligation and corresponding revision of the WFP on

infrastructure component was undertaken. The financial obligation

was paid for corresponding physical accomplishments.

D. Comparison of Original Estimated Expenditure and Actual

Expenditure (by Year)

Calendar

Year

Original Cost

(based on Original

Contracts)

(in M pesos)

Actual Expenditures

(in M pesos)

1997

1998

1999

2000

2001

2002

2003

19.447047

56.544947

16.576002

15.515992

1.539750

0.599000

32.821364

1.817131

25.925880

17.579311

15.379566

22.383793

14.574059

40.156999

Total 148.982774 143.738265

Please refer to Table 12 for the details of the Annual Work and Financial Plan

36

4. Comments on Performance of Assisting Organizations (AOs),

Assisting Professionals (APs), Peoples Organizations (POs), M&E and

Infrastructure contractors.

Please describe the performance of each organization after checking the

item(s) in the relevant lists on which you have any comment.

A. Performance of Assisting Organizations & Assisting Professionals (if

any) Peoples Organizations, M&E and Infrastructure contractors

A.1. Overall performance Design

Contract administration Construction supervision

Expertise Staff qualifications

Coordinating ability Compliance with Contracts

Performance related to any other than the Subproject scope,

if any.

Others

A.2 Description (in detail)

o Over-all Performance

Assisting Organizations

In general, the Assisting Organizations (AOs) in MKL can be rated

fair, since, only two have successfully accomplished their CO

activities namely: BLESSED Phils. Inc. (BPI) and Ramon Aboitiz

Foundation, Inc. (RAFI), while the personnel of VALUES, Inc.

abandoned their site during the later part of their contract

duration after one of its personnel borrowed a considerable

amount of money from their PO and never paid it back. Cebu

Resource Management Organization, Inc. (CRMOI) on the other

hand, submitted a terminal report to the DENR but it had lost

interest in complying with other billing requirements until its

contract expired.

Assisting Professionals

The Assisting Professionals (APs) performance in the delivery of

their duties and obligations to the PO’s of MKL Watershed

Subproject was satisfactory. They had successfully instituted

reforms in the project management particularly in financial aspect.

The APs helped the PO to improve the systems and procedures in

project management and conducted all other activities left by the

AOs some of which were installation of systems and procedures on

financial management, proper bookkeeping, preparation of

37

feasibility studies, and record keeping. Presently, most POs are

practicing the systems instituted by the AP’s.

People’s Organization

In the midst of the contract duration, only one (1) out of thirteen

(13) POs was able to deliver satisfactory performance in terms of

physical accomplishment (standards and compliance to

instructions). Majority (12 POs) did not internalize the trainings

and coaching provided by the AOs during the CO works. As a

result, most PO’s encountered financial losses, huge debts and

failures in livelihood development activities. Continued assistance

however, was provided by the DENR and APs until the POs were

able to plant a total of 4,920.75 hectares and was able to receive

their retention fees.

The M & E Contractors

Initially, only the CUSW was contracted to do the monitoring and

evaluation of the MKL both for the physical and institutional

aspect. However, it was observed by the DENR that CUSW had

difficulty in completing the task considering that almost 3,000

patches of plantations were covered by the M&E contract, thus,

Vifard was tapped to perform other activities. This was to ensure

the completion of the activity particularly the institutional and

project benefit assessment. Performance of both contractors can

be considered satisfactory since they delivered the expected

outputs.

The Infrastructure Contractors

There were two contractors for the MKL-WSP Infrastructure

Projects, however, none of them delivered good performance.

Without extension and revision of the contract, none of the

structures would be finished. This could be attributed to the fact

that the contractors were not based locally and that they lacked

logistical and financial support from their respective head offices.

Expertise and Staff Qualifications

Assisting Organization

Expertise and staff qualifications greatly affected the

administration of CO contracts. Some AOs employed experienced

personnel while others utilized fresh graduates, apparently new in

38

community organizing works. In terms of staff qualifications, high-

ranking officials of the AOs were highly trained and experienced,

however, the time spent by these officials was not as often as

expected particularly during community immersion.

Assisting Professional

The expertise and qualifications of the APs are beyond question.

The time frame however, was not enough considering the number of

POs in the Subproject. The activities undertaken by the APs were

very important to ensure the sustainability of the organization.

5. Other matters relating to Subproject Implementation

Please choose the item(s) from the following list on which you have

any comment, check it (them), and describe it (them) with measure

and results in (B) below.

A. Technical Financial Institutional Economic

Social/Distributional Others

B. Description (in detail)

Lack of technical knowledge and skills in the project implementation.

There were undertakings within the Subproject that differ from one

PO to another that could not be explained by different site

coordinator; e.g. planting of fruit trees in almost all management

zones. This would have been clear had enough technical training were

provided to the site coordinators. On the other hand, only selected

personnel could handle other aspects of the project implementation.

Measures undertaken and Results:

Training and coaching in skills development and capacity building of

the SUSIMO Staff were facilitated by the SMO to make them

effective and efficient in carrying out the tasks, such as:

(1) Training on bookkeeping attended by the Validation and Billing

Unit,

(2) Survey and Mapping attended by the Administrative and Support

Unit staff, and;

(3) Different technical trainings attended by the Site Development

and Management Unit (SDMU) staff.

39

Through this initiative, the SUSIMO was able to assist, monitor,

supervise and manage the thirteen (13) POs of MKL.

III. Action Taken by the AOs, APs and POs relating to Recommendation(s)

1. Recommendation(s) made by SUSIMO

Recommendations Action Taken by APs and

PO’s

Results

1. Conduct of Joint

monthly

meetings

between

SUSIMO, POs

and APs as a

venue for

resolving issues

and problems

and sharing of

experiences in

the project

implementation.

2. Hiring of

technical

support staff

for the

SUSIMO

Since the creation of

SUSIMO MKL, monthly

meetings were regularly

undertaken, to create a forum

in discussing issues affecting

each organization’s

performances and problems.

During these meetings, POs

were given time to present

their monthly accomplishments

and problems and their views

on issues that they may have

encountered. This also served

as a venue whereby the

SUSIMO and APs would know

the training needs of the POs

and for the SUSIMO and APs

to formulate strategies and

come up with appropriate

training designs for each POs

specific need.

After a few months since the

creation of SUSIMO, the

SMO requested for additional

allotment for hiring of

additional technical personnel

on contractual basis. When the

request was granted, these

technical personnel were

assigned to the different POs

of MKL Watershed

Subproject whose functions

were similar to those of the

“Site Coordinators”.

Close coordination

between SUSIMO

and POs. Issues and

problems were

addressed on time,

thus, facilitated the

implementation of

the CSD activities.

Immediate response

to the need of the PO

was provided. It also

facilitated the billing

process of the POs

accomplishments.

40

3. Development of

skills and

knowledge of

the SUSIMO

staff and the

PO members

through training

on technical,

financial and

management

aspects.

4. Proposed the

creation of

Composite team

from region,

PENRO and

CENROs to

validate the

accomplishment

s of 13 POs in

MKL. Also,

requested the

other CENRO

staff to cross

validate the

accomplishment

s of other POs

outside the

jurisdiction of

Upon hiring, the SUSIMO

staffs were assigned to

respective POs to act as

SDMU and at the same time as

project site coordinators.

Validation and Billing

Unit attended the

Bookkeeping and

Financial Management

training.

SDMU attended

different Technical

training.

Admin staff attended

Survey and mapping

(basic) training.

PO were trained on the

different aspects

conducted by the

SUSIMO

SUSIMO staff and

the PO members were

capacitated on

different aspects of

project management.

Facilitated the

conduct of validation

and billing of

accomplishment.

41

their respective

CENROs

5. Initiated the

conduct of

Financial Audit

per POs.

The AP assisted the SUSIMO

and POs in the conduct of

Financial Audit.

Transparency on

financial transaction

was established.

IV. Initial Operation and Maintenance of Subproject Facilities

1. Present Condition of Facilities

A. Please check: This article is ( applicable due to problem(s) or not

applicable. No particular problem has occurred since the initial operation

started). If there have been any problems, please check the relevant

space in the Table.

For the PO:

Item Status Initial

Operation

Maintenance Manage

ment

Others

1.Bunkhouse

2.Computer

3.Canter

vehicle

4.Motorcycle

5.Water pump

6.Multicab

Serviceable

serviceable

serviceable

Serviceable

Serviceable

Serviceable

For the SUSIMO

Item Status Initial

Operation

Maintena

nce

Manage

ment

Other

s

1. KIA cross truck,

4x4

2. Power Generator

3. Computer

4. Printer (HP840C)

5. AVR

6. UPS

Serviceable

Needs repair

Serviceable

Needs Repair

Serviceable

Serviceable

Serviceable

Serviceable

42

7. GIS Maptitude

8. GPS

9. Handheld Radios

10. Foresters Transit

11. Base Radio

12. Manual

Typewriter

13. Brunton Compass

14. Steel Tape

15. Diameter Tape

16. Planimeter

17. Abney Hand Level

18. Rain Gauge

19. Lettering Set

20. Binocular

21. Clerical Tables &

Chairs

22. Drafting Table

23. Camera

24. Cassette

Recorder

25. Scanner

26. Printer (LQ300)

27. Steel Cabinet

28. Water Pump

29. Printer (HP5550)

30. SUSIMO Office

Unserviceable

Serviceable

Serviceable

Serviceable

Serviceable

Serviceable

Serviceable

Serviceable

Serviceable

Serviceable

Serviceable

Serviceable

Serviceable

Serviceable

Serviceable

Serviceable

Serviceable

Serviceable

Serviceable

Serviceable

Serviceable

Serviceable

Serviceable

Serviceable

Serviceable

B. Please check: The Problem(s) has arisen owing to the following

reason(s).

Technical Financial Institutional Economic

Social/Distributional Others

C. Description (in detail)

The Uninterrupted Power Supply (UPS) has lost the compression, but

no available spare parts could be found locally. Other equipment that

encountered problems need replacement of defective parts but no

spare parts available locally.

D. Aspect of utilizing the Subproject facilities.

For the PO:

43

For the SUSIMO

2. Organization for Operation and Maintenance.

A. Name of PO.

A.1. Please give the name of PO and/or Body in charge of O/M.

PO : 1. MALTAJ

2. CAMMITA

3. SSSFAI

4. PSBA

5. PSMPC

6. UFMPC

7. MFMPC

8. MCFA

9. LFA

10 TMPC

11. NAGMATA

12. BAKANTI

13. BUKID-MPC

Item Original Plan Actual Operation

1.Bunkhouses

2.Computers

3.Canter vehicle

4.Motorcycles

5.Water pumps

6.Multicabs

For the use of PO’s of

MKL

-do-

-do-

-do-

-do-

For the use of PO’s of MKL

-do-

-do-

-do-

-do-

-do-

Item Original Plan Actual Operation

1. KIA cross truck, 4x4

2.Power Generator

3. Computer

4.Printer (HP840C)

5.AVR

6. UPS

7. GIS Maptitude

8. GPS

9. Handheld Radios

10. Foresters Transit

11. Base Radio

12. Water Pump

13. Printer (HP5550)

14. SUSIMO Office

For the use of

SUSIMO MKL

Watershed

Rehabilitation

Subproject

-do-

-do-

-do-

-do-

-do-

-do-

-do-

-do-

-do-

For the use of

SUSIMO MKL Watershed

Rehabilitation Subproject

-do-

-do-

-do-

-do-

-do-

-do-

-do-

-do-

-do-

-do-

-do-

44

SUSIMO : SUSIMO MKL Watershed Subproject

A.2. Please check:

The latest organizational charts (or equivalent) for the O/M of

the subproject facilities are attached or not availabl