The World Bank Report No: ISR8304 Implementation Status & Results Philippines Laguna de Bay Institutional Strengthening and Community Participation/LISCOP (P070899) Public Disclosure Copy Operation Name: Laguna de Bay Institutional Strengthening and Community Project Stage: Implementation Seq.No: 17 Status: ARCHIVED Archive Date: 11-Nov-2012 Participation/LISCOP (P070899) Country: Philippines Approval FY: 2004 Product Line: IBRD/IDA Region: EAST ASIA AND PACIFIC Lending Instrument: Specific Investment Loan Implementing Agency(ies): Laguna Lake Development Authority Key Dates Board Approval Date 04-Dec-2003 Original Closing Date 31-Jan-2009 Planned Mid Term Review Date 15-Jan-2007 Last Archived ISR Date 01-Apr-2012 Effectiveness Date 02-Apr-2004 Revised Closing Date 30-Apr-2014 Actual Mid Term Review Date 15-Jan-2007 Project Development Objectives Laguna de Bay Institutional Strengthening and Community Participation/LISCOP (P070899) Project Development Objective (from Project Appraisal Document) The overarching objective of the proposed project is to assist the Laguna Lake Development Authority (LLDA), Local Government Units(LGUs) and other stakeholders to improve the environmental quality of the Laguna De Bay watershed. This will be achieved through: (i) behavioral changes and activities undertaken by watershed users to improve the environmental quality o f the lake and its watershed; and, (ii) improved planning, regulatory instruments and incentives, and participation in the environmental management o f the Laguna de Bay watershed. Has the Project Development Objective been changed since Board Approval of the Program? Yes No Component(s) Component Name Component Cost CO-MANAGED MICROWATERSHED ENVIRONMENTAL INTERVENTIONS 15.00 STRENGTHENING INSTITUTIONS AND INSTRUMENTS 5.00 Public Disclosure Copy Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Satisfactory Moderately Unsatisfactory Overall Risk Rating Implementation Status Overview The Additional Financing is 15 months behind the original schedule. At the time of the mission review, only nine (9) subprojects worth Php87.217 million ($2.1 million) have been approved and an additional nine (9) firm subprojects worth Php97.285 million ($2.4 million) is for approval before the end of 2012. This means that only about Php185.1 million ($4.48 Page 1 of 8 The World Bank Report No: ISR8304 million) out of the $10 million loan proceeds can be committed by end of the year leaving some $5.52 million uncommitted. There are five (5) additional more subprojects in the pipeline worth Php42 million ($1 million) but preparation has been very slow and they are unlikely to be approved within 2012. The current number of subprojects (about 23) is much lower than the 37 subprojects identified at appraisal of the additional financing. Some of the Local Government Units (LGUs) have dropped out or decided to delay or defer their subprojects because of such factors as the upcoming local election next year, the difficulty in securing the certificate of borrowing capacity from the Bureau of Local Government Public Disclosure Copy Finance and the availability of more attractive financing from local sources.. For completed subprojects financed under the Original Financing, there is a continuous improvement in operation and maintenance (O&M) of the subprojects. Of the 24 LGUs that implemented 33 subprojects, 18 LGUs continue to have proper O&M of their completed facilities, while six LGUs, continue to have some challenges in the O&M of their facilities that would require closer supervision and mentoring by the implementing agency. Nevertheless, the completed subprojects continue to serve their purpose. For example, the Material Recovery (MRF) and Composting Facilities and Sanitary Landfill continue to address the garbage problems in the LGUs, which would have ended up in the lake in the absence of the facilities financed by the project. Based on estimates, the six MRF subprojects have reduced solid waste generation to as much as 281.27MT per day in 2011 and biochemical oxygen demand loading in the lake to as much as 128,429kg in 2011. In addition, MRF and Environmental Enhancement subprojects continue to generate local employment as well as revenues for the LGUs. Partial monitoring data indicate that the LGU subprojects have generated at least 276 direct and 595 indirect employments and earned total revenues of at least Php5.4 million from January to September this year from the sale of recyclables and compost in MRFs and entrance fees for eco-tourism/environmental enhancement subprojects. For activities supported under Component 2 financed by the now closed grant from the Netherlands Government, as designed, they continue to be mainstreamed within LLDA as key components of strengthening its capacity and improving its planning and regulatory instruments as the apex agency mandated to manage the Laguna Lake. Moderate achievements have been noted in the expansion of the EUFS, in the plan to establish an Effluent Trading Scheme, in the Water and Sediment Quality Monitoring Program, Laguna de Bay Resource Information System, the use of the Decision Support System and in the preparations for the Public Perception Survey. The project is generally progressing well in terms of meeting the KPIs, except on the disbursement of loan proceeds from the additional financing and the re-investment of the environmental user fee system (EUFS) revenue through the Project Development Fund to the LGUs. In terms of project outcome indicators, three out of five indicators have already been achieved. These are: (i) at least 10 percent pollution reduction for regulated parameter (18 percent reduction of BOD loading from the 2003 baseline of 1065 regulated firms was attained as of 2011); (ii) all LGUs in at least 10 of the micro-watersheds have adopted multi-stakeholder micro-watershed planning as part of their municipal development planning process (All LGUs in 24 micro-watersheds of Laguna Lake adopted the Lake Environmental Action Plan); and (iii) At least 30 percent increase in the number of men and women from community and stakeholder groups that are involved in watershed planning and management (latest data indicate 300 percent increase from baseline). The other two outcome indicators, which are in progress status, pertain to the number and expected measurable environmental impacts of the additional LGU subprojects, which are to be attained by project closing. Locations Country First Administrative Division Location Planned Actual Philippines Calabarzon Victoria Public Disclosure Copy Philippines Calabarzon Teresa Philippines Calabarzon Taytay Philippines Calabarzon Tanay Philippines Calabarzon Siniloan Philippines Calabarzon Silang Philippines Central Luzon Santa Cruz Page 2 of 8 The World Bank Report No: ISR8304 Country First Administrative Division Location Planned Actual Philippines Calabarzon Pila Public Disclosure Copy Philippines Calabarzon Pangil Philippines Calabarzon Pakil Philippines Calabarzon Morong Philippines Calabarzon Majayjay Philippines Calabarzon Mabitac Philippines Calabarzon Liliw Philippines Calabarzon Province of Laguna Philippines Calabarzon Province of Laguna Philippines Calabarzon Kalayaan Philippines Calabarzon Cavinti Philippines Not Entered Laguna de Bay Philippines Calabarzon Baras Philippines Calabarzon Angono Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target At least a 10% reduction in pollution loading for Text Value BOD loading = 827.56MT 18% 10% regulated parameter. (based on the 1080 firms Public Disclosure Copy covered by the environmental use r fee system in 2003 before project commenced implementation) Date 31-Dec-2003 10-Oct-2012 30-Apr-2014 Comments Attained, even surpassed the BOD loading reduction target. (744.804MT BOD loading from 1080 firms) Page 3 of 8 The World Bank Report No: ISR8304 At least 30 % increase in compliance by Text Value 507 (enterprises/firms with 66% 91% (971 enterprises) enterprises. discharge permits) Date 31-Dec-2003 10-Oct-2012 30-Apr-2014 Public Disclosure Copy Comments Attained, even surpassed the target. All LGUs in at least 10 of the micro-watersheds Text Value none 24 24 have adopted multi-stakeholder micro- Date 31-Dec-2003 10-Oct-2012 30-Apr-2014 watershed planning as part of their municipal Comments All LGUS in 24 All LGUS in 24 development planning process. microwatershed adopted microwatershed adopted LEAP LEAP At least five of the micro-watershed Text Value none 33 subprojects 50 interventions that are implemented result in Date 31-Dec-2003 10-Oct-2012 30-Apr-2014 measurable reductions in important Comments environmental pressures. At least 30 percent increase in the number of Text Value 249 (men) + 162 (women) 300 percent+1644 (1080 men 300 percent men and women from community and =411 and 564 women) 1644 (1080 men and 564 stakeholder groups that are involved in women) watershed planning and management Date 31-Dec-2003 10-Oct-2012 30-Apr-2014 Comments 300 (Y2008) Attained, even surpassed the target. Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Monitoring and evaluation framework set up Text Value None M&E framework and system M&E framework and system and in use in place improved in in use Date 31-Dec-2003 10-Oct-2012 30-Apr-2014 Comments MIS benchmarking completed Yes/No Value No Yes Yes Public Disclosure Copy Date 17-Feb-2012 30-Apr-2014 Comments Completed Completed Multistakeholder planning process (Lake Text Value 0 24 Environment Action Planning-LEAP) conducted Date 31-Dec-2003 17-Feb-2012 30-Apr-2014 in 24 microwatersheds Comments Number of micro-watershed subprojects Text Value 0 45 50 identified and feasibility study completed Date 10-Oct-2012 Comments 90% of target Page 4 of 8 The World Bank Report No: ISR8304 At least 20 sub-projects approved with Text Value none 42 50 adequate time for their implementation within Date 31-Dec-2003 10-Oct-2012 30-Apr-2014 the project duration. Comments 84% of target Public Disclosure Copy Number of Subproject Loan Agreements Number Value 27.00 35.00 (SPLA) signed Date 10-Oct-2012 30-Apr-2014 Comments 77% of target More than 80 percent of subprojects that are Text Value 0 33 50 approved for funding are implemented and Date 31-Dec-2003 10-Oct-2012 30-Apr-2014 completed. Comments 66% of target LLDA has implemented the new structure and Text Value Approved Re-engineering New structure implemented Sustain implementation of completed its re-engineering program as Program in place based on approved new structure based on the envisioned in the LIDO. Rationalization Plan Date 30-Nov-2003 10-Oct-2012 30-Apr-2014 Comments Attained Data management systems improved Yes/No Value Yes Yes Date 10-Oct-2012 30-Apr-2014 Comments None 100% complete but plan to Data management systems make online PMES further improved and in use operational and linked to LdBRIS is currently suspended. Laguna de Bay Environment Monitor published Text Value none 5 Laguna de Bay 7 Laguna de Bay annually Environment Monitors Environment Monitors published. published Date 31-Dec-2003 10-Oct-2012 30-Apr-2014 Comments 71% of target Modified Environmental User Fee (EUF) Text Value Modified EUF formula Modified EUF formula formula officially adopted. adopted adopted Public Disclosure Copy Date 31-Dec-2003 10-Oct-2012 30-Apr-2014 Comments EUF parameters expanded. Text Value 1 3 (BOD,TSS, TSS/BOD) 3 (BOD,TSS, TSS/BOD) Date 31-Dec-2003 10-Oct-2012 30-Apr-2014 Comments Number of establishments covered by EUF Text Value 1000 3592 2482 increased by 300-400 Date 31-Dec-2003 10-Oct-2012 30-Apr-2014 Comments 145% of target Page 5 of 8 The World Bank Report No: ISR8304 85-90% of loan proceeds disbursed. Text Value 0 34.46% ($5.32M) at least 85% Date 31-Dec-2003 10-Oct-2012 30-Apr-2014 Comments Public Disclosure Copy 16-25% increase in revenue from EUF system Text Value 0 105 percent ($112.98M) 25% Date 31-Dec-2003 10-Oct-2012 30-Apr-2014 Comments Partial for 2012: P53M Revenues reinvested in environmental projects Text Value PHP18.45M PHP37M through PDF and other instruments by LGUs Cumulative since 2006 and the private sector Date 31-Dec-2003 10-Oct-2012 30-Apr-2014 Comments Operational guidelines for expansion of EUF to Text Value 0 Guidelines already developed Guideilnes adopted and new enterprises and their collection adopted and adopted sustained Date 10-Oct-2012 30-Apr-2014 Comments Public disclosure of industry and LGU Text Value 0 5 PDP Cycles for Industries 5 performance occurs at least twice. and 4 PDP Cycles for LGUs Date 31-Dec-2003 10-Oct-2012 30-Apr-2014 Comments Measures to upgrade permitting, monitoring, Text Value None PMEPP has been adopted PMEPP implemented enforcement, policy. and planning procedures Date 31-Dec-2003 10-Oct-2012 30-Apr-2014 (PMEPP) officially adopted in LLDA Comments Infrastructure strategy adopted by LLDA. Text Value none Infra Development Strategy Infra development strategy for LLDA Board approval adopted Date 31-Dec-2003 10-Oct-2012 30-Apr-2014 Comments Operational guidelines for EUF expansion to Text Value none Operational guidelines for Operational guidelines for households and regulation of water-use EUF expansion to households EUF expansion to households developed. nd water use regulation and water use regulation Public Disclosure Copy adopted adopted. Date 31-Dec-2003 10-Oct-2012 30-Apr-2014 Comments Attained Number of RC offices established Text Value Dropped Dropped Date 31-Dec-2003 30-Apr-2014 Comments Annual Conference/Learning Forum conducted Text Value 0 6 Conferences conducted 7 Conferences Page 6 of 8 The World Bank Report No: ISR8304 Date 31-Dec-2003 10-Oct-2012 30-Apr-2014 Comments 86% of target Capacity of 24 RCs substantially expanded by Text Value 3.59 Dropped Dropped Public Disclosure Copy at least 3 levels Date 31-Dec-2003 30-Apr-2014 Comments Public perception survey on effectiveness of Text Value None Preparations are underway. 3 surveys conducted (3rd IEC programs conducted at least twice by end Draft questionnaire has been survey conducted by 2013) of project. prepared Date 31-Dec-2003 10-Oct-2012 30-Apr-2014 Comments Number of watershed management-related SB Text Value 0 56 50 resolutions approved and/or enforced Date 31-Dec-2003 10-Oct-2012 30-Apr-2014 Comments 112% of target Data on Financial Performance (as of 02-May-2012) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P070899 IBRD-72050 Closed 04-Dec-2003 26-Jan-2004 02-Apr-2004 31-Jan-2009 30-Apr-2011 P070899 IBRD-80350 Effective 12-Apr-2011 12-May-2011 27-Jul-2011 30-Apr-2014 30-Apr-2014 P070899 TF-52826 Closed 26-Jan-2004 26-Jan-2004 26-Jan-2004 31-Jan-2009 30-Apr-2010 P088002 TF-56933 Effective 30-Jun-2006 30-Jun-2006 28-Feb-2018 28-Feb-2018 P094573 TF-56934 Effective 30-Jun-2006 30-Jun-2006 30-Jun-2006 30-Jun-2018 30-Jun-2018 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P070899 IBRD-72050 Closed USD 5.00 4.33 0.67 4.33 0.00 100.00 P070899 IBRD-80350 Effective USD 10.00 10.00 0.00 1.02 8.97 10.00 Public Disclosure Copy P070899 TF-52826 Closed USD 5.00 4.24 0.76 4.24 0.00 100.00 P088002 TF-56933 Effective USD 0.30 0.30 0.00 0.00 0.30 0.00 P094573 TF-56934 Effective USD 0.12 0.00 0.12 0.00 0.00 10.00 Disbursement Graph Page 7 of 8 The World Bank Report No: ISR8304 Public Disclosure Copy Key Decisions Regarding Implementation The $10 million Additional Financing became effective on July 27, 2011. Restructuring History Level two Approved on 30-Jul-2010, Level two Approved on 27-Jan-2011 Related Projects P088002-Laguna de Bay Community Carbon Finance Project, P094573-Laguna de Bay Community Watershed Rehab, P117470-Laguna de Bay Institutional Strengthening and Community Participation Project - Additional Financing Public Disclosure Copy Page 8 of 8