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• collecting the crown-of-thorns fish. There were no negative effects with respect to population increases, and introduction of new imports to the island. As to the effects on the fisherfolk, half of them seemed to think there was an increase in fish catch, although two of the fishermen interviewed thought otherwise. They largely attributed this to the presence of too many divers, which scared the fish away from the fishing grounds. Nevertheless, they acknowledged that there was an increase in fish yield due to protection efforts. The presence of the PA likewise had positive effects in introducing conservation practices among the local residents in the area. There seemed to be a very high level of environmental awareness, which is to be expected given the long history of the island in protection and conservation efforts. Despite all this positive impact of the PA on the lives of the local residents, there is still a low level of overall satisfaction with its management. Crucial to this is the fact that the PA was already being managed locally, and their efforts paved the way towards improvement of the area and its resources. When management was community-based, there was a sense of ownership of the PA. Income and revenue were lower, but most respondents preferred that arrangement to the current one. When Apo Island was subsumed under the NIPAS system, the original management body was dissolved, and the PAMB created in its place. The local residents and local government then lost control over the management of their protected area. In a way, it can be said that the institutional development on Apo Island regressed. The ideal situation is for the residents themselves to take responsibility over ensuring protection and conservation of their natural resources. National government should step in only if there is a perceived lack of capability at the local level. But if there exists a credible and viable institutional mechanism at the local level, the most that national government should do is to assist, ensuring that the assistance is within the established management framework of the community. Despite the sincerity and successes of the PAMB, respondents did not seem to approve of the way they were handling the PA. 4.1.7 Conclusion The case of Apo Island is unique in the sense that its institutional development for environmental management is not characteristic of how other protected areas have evolved in the country. Successful market development for environmental services, increased protection of natural resources, high levels of environmental awareness, and increased incomes for the people – all suggest that environmental protection can be compatible with economic development, and the former can be successful if community development is addressed as well. This case study has demonstrated this, albeit the rudimentary methods employed in data gathering. Unfortunately, the story does not end there. ‘Ownership’ of decisions on management is as important as economic implications. In areas where there have been local efforts in environmental protection, such efforts should be respected. Interventions by national government, despite increasing efficiency, will not be welfare maximising if social costs are increased in the process. Two recommendations, therefore, are for the PAMB to increase its efforts in being more transparent in its operations, and for its officials to work towards greater acceptance by the community. The latter can be achieved by increasing local residents’ participation in the decision-making process and conducting their information and education campaigns on a more inclusive scale. 69
4.2 Reforestation, Watershed Management, Health and/or Environment Enhancement Fund (RWMHEEF) of the Department of Energy 4.2.1 Definition The RWMHEEF of the Department of Energy (DOE) was first established through Republic Act No. 7638, 42 otherwise known as the Department of Energy Act of 1992. In its Implementing Rules and Regulations (IRR), as contained in Energy Regulations (ER) 1-94 43 , Section 6(f) entitled ‘Reforestation, Watershed Management, Health and/or Environment Enhancement Fund’, states that: One-half of one centavo (PhP0.005) per kilowatt hour of the total electricity sales of the energy-generating facility shall be set aside by the power producer to be used for reforestation, watershed management, health and/or environment enhancement. The power producer and the energy resource developer, to the extent of their respective contribution to the fund, shall each submit work programs for reforestation, watershed management, health and/or environment enhancement which would have to be approved by the DOE in consultation and close coordination with the DENR, the DOH, the relevant water districts, local government units, regional development councils, non-governmental organizations, and other affected parties… The guidelines and procedures for the administration of the fund are contained in Department Circular No. 95-11-009 44 of the DOE. Basically, the guidelines contain general provisions on the effectivity of the grant of financial benefits, the establishment of trust accounts through a Memorandum of Agreement (MOA) between DOE and the energy-resource developer or power producer, the administration of the fund, and some guidelines on project implementation. Department Circular No. 2000-03-003 45 of the DOE amended Section 6 of ER 1-94, whereby the electrification fund this time would get 50 per cent of one centavo for every kilowatt-hour generated, while the remaining 50 per cent would be shared equally between the Development and Livelihood Fund and the Reforestation, Watershed Management, Health and/or Environment Enhancement Fund. Republic Act No. 9136 entitled Electric Power Industry Reform Act of 2001 (EPIRA) adopted these amendments to ER 1-94. Of particular interest is Rule 29 of the EPIRA Implementing Rules and Regulations 46 which states that: ‘one centavo per kilowatt-hour of the total electricity sales’ of a generation company shall be applied as ‘financial benefit of the host communities of such generation facility…’ (see Appendix I). 47 This one centavo per kilowatt-hour allocation is divided into three types of funds, namely: 42 Republic Act No. 7638 entitled ‘An Act Creating the Department of Energy, Rationalizing the Organization and Functions of Government Agencies Related to Energy, and for Other Purposes’. 43 ER 1-94 entitled ‘Rules and Regulations Implementing Sections 5(i) of Republic Act No. 7638, Otherwise known as the Department of Energy Act of 1992’. 44 Department of Energy Circular No. 95-11-009 entitled ‘Guidelines and Procedures for the Granting of Financial Benefits under Energy Regulations 1-94’. 45 Department Circular No. 2000-03-003 entitled ‘Further Amending the Provisions of Energy Regulations 1-94’, and ‘Rules and Regulations Implementing Section 5(i) of Republic Act No. 7638, otherwise known as the Department of Energy Act of 1992 and its Attendant Rules and Procedures’. 46 Republic Act No. 9136 entitled ‘Electric Power Industry Reform Act of 2001, Implementing Rules and Regulations’. 47 Available at http://www.iied.org/eep/. 70
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Developing pro-poor markets for env
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Acknowledgements The author would l
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MES Markets for Environmental Servi
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Contents 1 Introduction 1 1.1 Backg
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List of tables Table 2.1 List of en
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1.2 Purpose and objectives of resea
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2 Markets for environmental service
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Environmental service Watershed pro
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Environmental service Carbon seques
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Chronology of activities • Presen
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Results of the travel cost model, M
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Box 2.2 Case study of development f
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Accomplishments With ample resource
Page 27 and 28: workers in some reforestation activ
Page 29 and 30: have sole commercial bioprospecting
Page 31 and 32: 2.6 Elevation services This last ty
Page 33 and 34: 3 Institutional support mechanisms
Page 35 and 36: from the PA Profiles and from the P
Page 37 and 38: Region Protected area Northwest Pan
Page 39 and 40: Region Protected area Location Area
Page 41 and 42: Region Protected area Location Area
Page 43 and 44: Box 3.1 ‘Establishment and Manage
Page 45 and 46: In some areas, such issues are reso
Page 47 and 48: Figure 3.2 shows the flowchart summ
Page 49 and 50: • Initao National Park • Biak n
Page 51 and 52: Region Protected area Area (in hect
Page 53 and 54: in its entirety. To do so, a nation
Page 55 and 56: PAMB. 19 A broad set of guidelines
Page 57 and 58: streams and rivers for their domest
Page 59 and 60: Pangil. A company there was issued
Page 61 and 62: Much remains to be done. The LK cla
Page 63 and 64: placed some boundary markers in the
Page 65 and 66: Another lesson learned is it is nec
Page 67 and 68: 4 Socio-economic framework for eval
Page 69 and 70: during this period because of the r
Page 71 and 72: 4.1.2 Economic profile The populati
Page 73 and 74: Table 4.2 Schedule of fees and char
Page 75 and 76: group representative, the mayor of
Page 77: Table 4.4 Results of the key-inform
Page 81 and 82: within 15 days of submission of the
Page 83 and 84: Figure 4.3 Program for Granting Fin
Page 85 and 86: Table 4.5 Preferred development and
Page 87 and 88: Table 4.7 Total generating capacity
Page 89 and 90: Table 4.8 Approved reforestation, w
Page 91 and 92: Figure 4.4 Flowchart of funds, paym
Page 93 and 94: Results of the survey of 100 respon
Page 95 and 96: In the event that allocations of gr
Page 97 and 98: DENR Administrative Order No. 13, S
Page 99: Republic Act No. 9136 (2001), ‘El
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