Mid-Term Review

JBIC ODA Loan Project Mid-Term Review 2006
Evaluator: Asahi Ltd. (Toru Suetake)
Mid-Term Review Field Survey: January 2007
Project Title: The Republic of the Philippines “Sustainable Environmental Management Project in Northern Palawan” (PH-P225)[Loan Outline]
Loan Amount / Contract Approved Amount / Disbursed Amount: 2,034 million yen / 1,809 million yen / 1,473 million yen (as of the end of September 2006)
Loan Agreement: May 2001 (5 years after signing the L/A)
Original Project Completion Date: June 2006
Revised Project Completion Date: December 2006
Loan Expiry Date: September 2009
Executing Agency: Department of Tourism (DOT), Palawan Council for Sustainable Development Staff (PCSDS), Department of Public Works and Highways (DPWH)
Operation and Maintenance Agency: LGU (monitoring of ECAN Zone), DPWH (roads, following construction of soil erosion prevention works)
Selection Criteria for Mid-Term Review: Particular Theme (Eco-Tourism)[Project Objective]
The objective of this project is to promote environment and ecosystems management in the area of northern Palawan through (1) drawing up ECAN zoning, (2)constructing soil erosion prevention works along coastal road (target road: El Nido—Taytay segment), and (3) undertaking project supervision and promotion of
eco-tourism.
Consultants: Filipinas Dravo Corporation (Philippines), Philipp’s Technical Consultants Corp (Philippines), Sustainable Ecosystems International Corp. (Philippines), TCGIEngineers (Philippines), Certeza Surveying and Aerophoto Systems, Inc. (Philippines), Daruma Technologies Incorporated (Philippines), Geo-Surveys & Mapping, Inc.
(Philippines), ALMEC Corporation (Japan), Pacific Consultants International (Japan), CEST, Incorporated (Philippines), CHL Consulting Group (Ireland)
Contractors: Goldrock Construction and Development Corporation (Philippines), WELEX Construction (Philippines)

1Mid-Term Review[Mid-Term Review Result]
Item
Relevance

Ex-ante Evaluation (at time of appraisal) (March 2001)(1) National Policy Level
・Because deterioration of the ecosystem has progressed in theform of forest destruction and extinction of coral reefs due tochaotic development in the Philippines, environmental
management is positioned as an important issues in the Medium
Term Philippines Development Plan (1999—2004) (see Note 1).

Result of mid-term review and ex-post evaluation results
as estimated at time of mid-term review(1) National Policy Level
・In the Medium Term Philippines Development Plan (1999–2004), only
protection of the natural environment was the policy goal. However, in
the Medium Term Philippines Development Plan (2004–2010) (see Note2) of the current presidential administration, while there is no change inthe fact that the natural environment protection policy is a priority
policy, it does differentiate between land that should be protected andland that is permitted for development. In addition, the policy haschanged slightly regarding land that is permitted for development, to apolicy of environmental harmonization wherein the environment is used
to improve the lives of residents while emphasizing harmony with theenvironment. This project is positioned as a pilot project which defines
protected land and land permitted for development, promotes regulation
by local government units, and offers methods to improve the lives ofresidents with emphasis on harmony with the environment such as
through eco-tourism. As such, the project is consistent with thePhilippines’ national policy and possesses sufficient relevance.

(2) Policy Level(2) Policy Level
・The Strategic Environmental Plan Special Law (Republic Law ・By January 2007, regulation was issued that prescribed land use zoning
No. 7611) was passed to promote sustainable growth andby every single local government unit in the northern Palawan area,
preservation of the particular natural environmental resources
which is the target area of this project. There was no revision orof Palawan Province. The law prescribes that land development
establishment of new legal systems including laws or regulations thatbe conducted in accordance with land use zoning based on
affect to the above regulation. Rather, there is a trend of passing laws
regulation of land use zoning by the local government unit.
applying method for clearly defining land use zones gained from thisproject outside the project area, as well. Moreover, this trend is clearlystated in Palawan: Vision of Development and in the Palawan Medium
Term Development Plan (see Note 3). Consequently, the relevance is2Mid-Term Review

determined to be sufficient at the policy level.

Effectiveness(Impact)(3) Planning Level(3) Planning Level
・ It was necessary to immediately halt the decline topsoil ・At the time of the survey, the work of clearly defining land use zones
conservation capacity and water resources build-up capacity(ECAN zoning) was completed and the zones were passed into law bycaused by the sudden drop in forest area due to deforestation
the local government units in the project area. At the time of the project
and to halt the loss of tourism resources due to the rapid decline
appraisal, there existed no study of the precise amount of forest area inin ocean resources, with the cooperation of the local residents
the northern Palawan area. However, the precise amount of forest areaand based on a long-term viewpoint. Enforcement ordersthat should be protected can be measured for the first time by thisrelated to environmental protection such as the Strategic
project.
・Environmental
Conditions found at the time of the appraisal, such as theEnvironmental Plan Special Law were prescribed and an
environmental protection policy was prepared, but due to thedecline in topsoil conservation capacity and water resources build-up
Philippine government’s lack of funds and personnel, it wascapacity as well as the loss of tourism resources due to the sudden drop
difficult to implement the infrastructure development andin ocean resources, are gradually being improved through thesystem-building necessary for the policy. Consequently, highestablishment of a system to crackdown on violations of the law.
priority was placed on the implementation of this project.
However, issues still remain, such as the inability to crackdown on
illegal fishing by fishermen from neighboring countries. Henceforth, it
is necessary to strengthen activities that promote observance of the law.
Provision of residents with alternative methods of earning a livelihood,such as eco-tourism, is proving effective, and because promotion ofconservation project in harmony with the environment will be desired
even more henceforth, the project is determined to have high relevance.
(1) Operation and effect indicators(1) Operation and effect indicators(i) Quantitative effects(i) Quantitative effects
Forecast for Time ofIndicator
2001 Actual2006 Planned
Indicators
2006 Actual
Project Completion(1)ECAN Zoning(1)ECAN Zoning
Enactment of ECAN
05Enactment of ECAN
55zoning regulations
zoning regulations(number of local(number of local
government units)
government units)
Enactment of renewed0
11
Enactment of renewed
11
11
ECAN map regulations
3

Mid-Term Review(number of local
ECAN map regulations
government units)(number of local
government units)(2) Soil Erosion Prevention(2) Soil Erosion Prevention
Soil erosion prevention 0 km
61 km
Soil erosion prevention 59 km (Immediately 59 km(road improvement(road development
after project start,
extension)
extension)
the distance was(3) Development of Eco-tourism
re-measured and
Implementation of0changed from 61
training for local
km to 59 km)
government units(3) Development of Eco-tourism(times)
Implementation of7
Number of residents
160(2003–2006 cumulative)
training for local
participating ingovernment units (times)
training
Number of residents
870
ECAN: Environmentally Critical Areas Network
participating in training (2004–2005 cumulative)
Note: ECAN zoning regulation is the one that divides
・Regarding ECAN maps, because the plan is to have all 11 local
development areas from protected areas, and permits development
government units initially targeted in northern Palawan introduce them
only in the development areas. ECAN map regulation is the one
by January 2007 and then prescribe zoning regulations based on theseto introduce a map system for clearly defining land use zones into
land use zoning maps and promote land use, the project can be assessed
local government policies. Areas to be protected are clearlyas having displayed effectiveness with regard to prescription of land use
specified by preparing ECAN maps, but even if areas are clearlyzones. However, outcome indicators for quantitative effects were not set
specified as “protected areas”, they cannot be immediately
and agreed upon at the time of appraisal, and only the output indicators
designated as protected areas due to conflicts of residents’
were agreed upon. By the time of project completion, it is desirable tointerests such as their livelihood measures. Then related parties
set indicators to quantitatively measure achievement of outcome and to
hold discussions using the ECAN maps, and based on the result ofmonitor those indicators. Proposed draft indicators are shown below
the discussions, protected areas are formally established by ECAN
under “Indicators set for use at the time of ex-post evaluation.”zoning regulations.
(ii) Qualitative effects
1) Protection of the natural environment
・Regarding the decline of topsoil conservation capacity and water resource
nourishment function caused by the drop of forest areas in northern
Palawan as seen at the time of appraisal, no supportive data forquantitative analysis could be obtained over a span of years. However,(ii) Qualitative effects
1) Protection of the natural environment4Mid-Term Review

because this project clearly defined the forest area and the protected
area, one result of this project is that it is now possible to know theactual declining amount of the forest area. According to an interview
survey by the Palawan Council for Sustainable Development Staff(PCSDS), El Nido, and Taytay, the number of cases of illegal
deforestation has decreased and the forest is steadily being protected
since laws that strengthen forest protection, such as the chainsaw law,were passed and enforcement was strengthened.
2) Local promotion and employment expansion through 2) Local promotion and employment expansion through sustainable use ofsustainable use of natural resources
natural resources
・The project component to provide alternative means for livelihood has
been effective. It has increased employment of local residents in
manufacturing souvenirs and in vegetable and fruit production andproduce cash income for them.
・This project held a series of training sessions on eco-tours to develop
eco-tour menus, in consultation with PCSDS, which protected natural
resources in the core zone as a protected area; however, among the local
tour operators in the cities of El Nido and Taytay, there are still none thathave developed adequately to the point where they have the ability tooffer their own unique tours. Furthermore, there are only a few tour
operators in the Philippines that offer eco-tours, and so local promotionand employment expansion through sustainable use of natural resources
is still limited.
(2) Factors which may influence the effectiveness and impact of the project・Given that most illegal fishing is done by intruders from other areas
including from neighboring countries, it is necessary not only for thegovernment of Palawan Province but also for the Philippine government
to establish a policy and system in response to this. Currently, the systemof regulation is not adequately established; tourism resources are
declining due to overfishing of ocean resources, and there is concern that5

Mid-Term Review

this will limit the project effectiveness (impact). Specifically, according
to PCSDS’s interview study in El Nido and Taytay, the dynamite fishingmethod is strictly prohibited and is declining, but the fishing method
using hydrocyanic acid is still fairly rampant. In a sample study at a test
station in Puerto Princesa, hydrocyanic acid was detected in nearly 10%of the fish caught in some samples.
・The goal of soil erosion prevention works (for topsoil erosion prevention)
has been achieved. However, due to the poor condition of the accessroad (Roxas—Taytay segment [approximately 60 km], not part of the
Project) used by many tourists who come overland from the provincial
capital of Puerto Princesa to the project area, there is concern that the
project will have limited effects on the development of the local
economy, which was anticipated as one impact of the project.
(3) Factors which may influence the sustainability
・Because the Roxas regional office of DPWH, which is an operation andmaintenance agency, does not have adequate personnel or budget, they
do not take any measures to budget for operation and maintenance after
the completion of road improvements of the El Nido-Taytay segment.
It is necessary to secure and implement a reliable budget.
Information for reference(1) Output
Efficiency
Indicator
2001 Actual2006 Planned(1) Output(1) Drawing up of ECAN Zoning(i) Related equipment
for ECAN map
preparation(ii) Preparation and
0 areas5 high-priority areas
digitalization of ECAN
(to be expanded to 6
maps
areas of less highpriority)(iii) Equipment and(1) Output
Indicator
2006 Actual(1) Drawing up of ECAN Zoning(i) Related equipment for
Purchased and
ECAN map preparation
positioned(ii) Preparation and
16 areas including 11
digitalization of ECAN
areas with JBIC
maps
components(iii) Equipment andPurchased andvehicles for environmental positioned
and ecological studies
62008 PlannedSame as 2006
actualSame as 2006
actualSame as 2006
actualMid-Term Review

vehicles forenvironmental andecological studies(iv) Coastal and ocean
resources studies(v) Strengthening of
implementation
capability and buildingof a structure for
ECAN zoning
1) Assessment of needfor training
2) Strengthening of
local system andsupport system
necessary for preparing
and enforcing ECAN
zoning3) Development andimplementation ofalternative means of
livelihood program4) Review andimplementation ofmonitoring andevaluation system
5) Review andimplementation ofprogram forenvironmental
education andspreadingunderstanding(2) Soil erosion
prevention (road3 studies
1) Assessment of needfor training
2)- Workshops andseminars- Comprehensive
area management
plan
3)- Alternative meansof livelihood
program- Local resident
training
4)Monitoring andevaluation system
5)Program forenvironmental
education (educational
campaign) andspreadingunderstanding

0 km

61 km

7

(iv) Coastal and ocean
resources studies(v) Strengthening of
implementation capability
and building of a structure
for ECAN zoning
1) Assessment of need fortraining
2) Strengthening of local
system and support system
necessary for preparing
and enforcing ECAN
zoning3) Development andimplementation ofalternative means of
livelihood program4) Review andimplementation ofmonitoring and evaluation
system5) Review andimplementation ofprogram of environmental
education and spreading
understanding(2) Soil erosion prevention(road improvement
extension)

3 studies completed
1) Assessment of needfor training
2)- Workshops andseminars- Comprehensive area
management plan3)
- Alternative means of
livelihood program- Local resident
training
4) Monitoring andevaluation system
5) Program forenvironmental education(educational campaign)
spreading understanding

59 km (Immediately
after project start, thedistance wasre-measured andchanged from 61 km to
59 km)(3) Development of eco-tourism(i) Preparation of standards (i) Standards andand guidelines for
guidelines forSame as 2006
actualSame as 2006
actualSame as 2006
actualSame as 2006
actualMid-Term Review

improvement
extension)(3) Development of eco-tourism(i) Preparation ofstandards andguidelines for
implementation of
eco-tourism(ii) Preparation ofpromotion plan for
eco-tourism(iii) Promotion ofresident participation in
eco-tourism andimplementation ofnecessary training(Busuanga)(i) Standards andguidelines for
implementation of
eco-tourism(ii) Promotion plan for
eco-tourism(iii) Promotion ofresident participationin eco-tourism andtraining program

8

implementation of
eco-tourism(ii) Preparation ofpromotion plan for
eco-tourism(iii) Promotion of resident
participation in
eco-tourism andimplementation ofnecessary training(Busuanga)

implementation of
eco-tourism(ii) Promotion plan for
eco-tourism(iii) Promotion ofresident participation in
eco-tourism and training
program(Supplementary explanation of specific points)(1) (iv) Coastal and ocean resource studies: These coastal and ocean
resource studies, which were conducted for the purpose of designatingareas to be protected when ECAN maps were prepared, were all carriedout according to plan and a written report was completed. Based on the
results of these studies, areas to be protected were designated.
(2) (v) Strengthening of implementation capability and building of astructure for ECAN zoning: The following five activities were carriedout.
1) Assessment of need for training: A study to assess training needs was
implemented and a training plan was prepared based on the study.
2) Strengthening of local system and support system necessary for
preparing and enforcing ECAN zoning: Support and training were
provided for the purpose of preparing and enforcing ECAN zoning
regulations.
3) Development and implementation of alternative means of livelihood
program: A program was developed and implementation began, withlocal government receiving support from NGOs, etc. To provide
alternative means of livelihood, each local government and NGOs, etc.,
undertook construction of pilot farms, mangrove planting projects, andMid-Term Review

micro-finance, in keeping with the plan of this project.
4) Review and implementation of monitoring and evaluation system:
Monitoring of ECAN zoning, and in particular a regulatory system toenforce the law in case of violations, was established within each local
government. Local governments collaborate through committees that
periodically discuss results and problem points.
5) Review and implementation of program for environmental educationand the spread of understanding: A program for environmental educationand spreading understanding was developed by PCSDS, and within that,development of guidelines and curriculum for environmental education
at elementary and secondary schools in Palawan Province weredeveloped. Together with distributing these to each elementary andsecondary educational institution, workshops were also held for
instructors and education-related persons.
(3) Development of eco-tourism: The following activities were planned
and all were implemented within the planned period.
(i) Preparation of standards and guidelines for implementation of
eco-tourism
・Eco-tourism implementation standards and eco-tourism guidelines werecompleted as a result and were distributed to each local government andrelated institution.
(ii) Preparation of promotion plan for eco-tourism
・A promotion plan for eco-tourism was prepared as a result, incorporated
into the tourism development master plan, and distributed to each local
government unit and related institution. Also, related workshops andtraining were held.
(iii) Promotion of resident participation in eco-tourism and implementationof necessary training (Busuanga)
・A training program for eco-tourism was developed, and a series oftraining sessions were held as planned for residents in Busuanga and El
Nido.
9Mid-Term Review

・Consultants: 87 M/M
・Local Consultants: 136 M/M

・ Consultants: 87 M/M
・ Local Consultants: 136 M/M(2) Project period(2) May 2001–June 2006 (61 months)(2) May 2001–December 2006 (69 months)(3) Project cost
Lessons Learned andRecommendations(3) 2,712 million yen (ODA loan portion: 2,034 million yen)
(3) 2,712 million yen (ODA loan portion: 2,034 million yen)
Awareness was low at the executing agency that it should be monitoring the project results, and based on that, evaluate the results of the project
activities on its own. At the time of this mid-term review, it was recommended that the executing agencies figure out outcome indicators, suchas core zone areas, number of tourists, and household income, etc., and then establish a system to monitor and evaluate the project results basedon such indicators. It is desirable for the executing agencies to establish outcome indicators and to monitor them as recommended below.
N.A.
Indicators recommended at the time of the mid-term review to the
executing agency as outcome indicators for use in the ex-post evaluation.
・ Square area of forest in project area (ha)・ Number of illegal tree-cutting cases exposed・ Number of illegal fishing cases exposed・ Number of eco-tourism promotion plans implemented
・ Number of tourists in the project area
・ Income produced by alternative means of livelihood supported by
local governments and NGOs, etc.

Indicators set for use attime of ex-post
evaluation

Note 1) Medium Term Philippines Development Plan 1999-2004, National Economic and Development Authority, 1999
Note 2) Medium Term Philippines Development Plan 2004-2010, National Economic and Development Authority, 2004
Note 3) Palawan Tomorrow: Vision of Development, first section of “Long Term Development Plan of Palawan 2005-2014”, Provincial Government of Palawan, 2005
Palawan Medium Term Development Plan 2006-2010, Provincial Government of Palawan, 2005
Palawan Annual Investment Program 2006, Provincial Government of Palawan, 2005

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