Master Plan for Agusan River Basin

Technical Assistance Consultants Report
Project Number: 36540-01

May 2008
Philippines: Master Plan for the Agusan River Basin
Prepared by CTI Engineering International Co. Ltd; Halcrow; and Woodfiled Consultants,
Inc.
Philippines
For Department of Environment and Natural Resources

National Water Resources Board
This consultants report does not necessarily reflect the views of ADB or the Government concerned, and
ADB and the Government cannot be held liable for its contents. (For project preparatory technical
assistance: All the views expressed herein may not be incorporated into the proposed projects design.
Master Plan for the Agusan River Basin Projecr Draft Final Report
MASTER PLAN FOR THE AGUSAN RIVER BASIN PROJECT
FINAL REPORT
TABLE OF CONTENTS
LIST OF TABLES .........................................................................................................v
LIST OF FIGURES .......................................................................................................viii
ACRONYMS and ABBREVIATIONS ...........................................................................ix
1.0 INTRODUCTION ..............................................................................................1-1
1.1 BACKGROUND....................................................................................1-1
1.2 STUDY AREA.......................................................................................1-1
1.3 GOAL AND OBJECTIVES....................................................................1-1
1.4 APPROACH AND METHODOLOGY....................................................1-2
1.5 KEY ACTIVITIES..................................................................................1-2
2.0 PHYSICAL AND ENVIRONMENTAL CONDITION..........................................2-1
2.1 GEOGRAPHIC SETTING.....................................................................2-1
2.2 CLIMATE ..............................................................................................2-3
2.3 RAINFALL ............................................................................................2-5
2.4 STREAMFLOW ....................................................................................2-7
2.5 GROUNDWATER.................................................................................2-9
2.6 ENVIRONMENTAL SETTING ..............................................................2-9
2.6.1 Natural Physical Environment ..................................................2-10

2.6.2 Biological Environment.............................................................2-13
3.0 SOCIO-ECONOMIC CONDITION ....................................................................3-1
3.1 ECONOMIC SETTING .........................................................................3-1
3.1.1 Economic Profile ......................................................................3-1
3.2 THE SOCIAL SETTING........................................................................3-10
3.2.1 Stakeholders of the Basin ........................................................3-11

3.2.2 Demographic and Socio-economic Profile ...............................3-15
i
4.0 REVIEW AND ASSESSMENT OF RELEVANT POLICIES AND PLANS........4-1
4.1 INTERNATIONAL ORGANIZATIONS INITIATIVES ON WATER

MANAGEMENT....................................................................................4-1
4.2 WATER POLICIES AND MULTI-LATERAL AGENCIES ......................4-2
4.3 NATIONAL POLICY OBJECTIVES ......................................................4-2
4.4 SECTOR POLICIES .............................................................................4-3
4.5 REGULATORY FRAMEWORK ............................................................4-4
4.6 REGIONAL AND PROVINCIAL POLICY OBJECTIVES AND

TARGETS.............................................................................................4-9
4.6.1 Caraga Region .........................................................................4-9

4.6.2 Davao Region...........................................................................4-12
4.7 AGUSAN RIVER BASIN WATER POLICY...........................................4-14
4.7.1 Assessment of Policy Context ..................................................4-14

4.7.2 Harmonization of the Basin Policy............................................4-15
4.8 GENDER AND DEVELOPMENT..........................................................4-18
4.8.1 Gender, Age and Household Distribution .................................4-18

4.8.2 Gender Analysis .......................................................................4-18
4.8.3 Policies and Institutions on Gender ..........................................4-24
5.0 INSTITUTIONAL FRAMEWORK .....................................................................5-1
5.1 Institutional Participation.......................................................................5-1
5.1.1 Existing Institutional Set-up in National Water Resources

Management ...........................................................................5-1
5.1.2 Institutional Stakeholders in the ARB .......................................5-1
5.2 MAJOR INSTITUTIONAL IMPEDIMENTS ...........................................5-2
5.2.1 National Level...........................................................................5-2

5.2.2 ARB Level ................................................................................5-3
5.3 FORMATION OF THE AGUSAN RIVER BASIN ORGANIZATION .....5-6
5.3.1 Tapping the Potentials of Existing Basin Organizations ...........5-7

5.3.2 Existing Working Models ..........................................................5-7
5.3.3 Imperatives for RBO Formation................................................5-12
5.4 FUNDING THE AGUSAN RIVER BASIN ORGANIZATION

AND ITS DEVELOPMENT ACTIVITIES ...............................................5-15
5.4.1 Identified Funding Sources of Selected IRBM Organizations ..5-15

5.4.2 Funding the Agusan RBO ........................................................5-17
ii
5.5 RBO FORMATION AND DEVELOPMENT...........................................5-21
5.5.1 Basin Governance Options ......................................................5-21

5.5.2 The Proposed RBO ..................................................................5-22
5.5.3 The Proposed Structure ...........................................................5-25
6.0 PARTICIPATORY APPROACHES AND DEVELOPMENT STRATEGIES......6-1
6.1 KEY ENVIRONMENTAL ISSUES AND STAKEHOLDER PRIORITIES.6-1
6.2 BASIN REALITIES AND KEYS TO INTEGRATION .............................6-5
6.2.1 Key Basin Realities .................................................................6-7

6.2.2 Keys to Integration ...................................................................6-8
6.3 ARBMP DEVELOPMENT VISION,GOALS AND OBJECTIVES...........6-11
6.3.1 Development Vision .................................................................6-11

6.3.2 Development Goal....................................................................6-12
6.3.3 Development Objectives ..........................................................6-12
6.3.4 VGO and the ARB Policy .........................................................6-13
6.4 ARB DEVELOPMENT STRATEGY......................................................6-15
6.4.1 General ....................................................................................6-15

6.4.2 Why a Governance Initiative and RBO Formation Strategy .....6-15
6.4.3 Why an Intervention Initiative and WRM Intervention Strategy..6-16
6.4.4 Why a Knowledge Development Initiative and GIS Development
Data Banking Strategy .............................................................6-17
6.5 UNITY OF THE DEVELOPMENT STRATEGY ....................................6-17
6.6 FROM POLICY TO STRATEGY TO PRINCIPLES ..............................6-19
6.7 FROM POLICY TO STRATEGY TO PROJECTS.................................6-20
7.0 BASIN PROGRAMS AND PROJECTS............................................................7-1
7.1 ASSESSMENT OF BASIN WATER CONTROL STRUCTURE ............7-2
7.1.1 Irrigation Development .............................................................7-2

7.1.2 Water Supply Systems .............................................................7-8
7.1.3 Flood Control............................................................................7-12
7.1.4 Roads and Bridges...................................................................7-13
7.1.5 River Transport ........................................................................7-13
7.1.6 Hydropower ..............................................................................7-14
7.2 PROGRAMS/PROJECTS BY KEY THEME .........................................7-14
7.2.1 Water Quality Management Program .......................................7-14

7.2.2 Flood Management Program....................................................7-15
7.2.3 Water Resources Development Program.................................7-17
7.2.4 Watershed Management Program ...........................................7-18
iii
7.2.5 Agusan Marsh and Wildlife Sanctuary (AMWS) Management

Program ...................................................................................7-23
7.2.6 Indigenous Peoples Development Program .............................7-24
7.2.7 River Basin Organization Development Program .....................7-27
8.0 IMPACT ASSESSMENT .................................................................................8-1
8.1 STRATEGIC ENVIRONMENTAL ASSESSMENT................................8-1
8.1.1 Objectives ................................................................................8-1

8.1.2 Methodology.............................................................................8-1
8.1.3 Categories of Projects ..............................................................8-3
8.1.4 Key Environmental Issues ........................................................8-3
8.1.5 Potential Environmental Impacts ..............................................8-3
8.1.6 Cumulative Impacts and Mitigating Measures ..........................8-8
8.1.7 Potential Benefits .....................................................................8-15
8.1.8 Institutional Requirements and Environmental Monitoring .......8-20
iv
LIST OF TABLES
Table 2-1 List of Tributaries

Table 2-2 List of Rainfall Stations
Table 2-3 List of Streamflow Gauging Stations
Table 2.4 Surface Water Potential of Sub-Basins, ARB, 20000
Table 3-1 Gross Value Added by Industry, Caraga Region
( in million at constant 1985 prices )
Table 3-2 Gross Value Added by Industry, Davao Region
(in million pesos at constant 1985 prices )
Table 3-3 Caraga Region: Projected Gross Regional Domestic Product
Table 3-4 Davao Region Fross Regional Domestic Products Actual and Targets
Table 3-5 Palay Production by Province, Caraga Region, 2002-2003
Table 3-6 Corn Production by Province, Caraga Region, 2002-2003
Table 3-7 Area and Production of Major Crops, 1998 Compostela Valley
Table 3-8 Employed Persons by Industry Group, Caraga Region, 1997-2002
Table 3-9 Employed Persons by Industry Group, Davao Region, 2003
Table 3-10 Family Income and Expenditure by Region, Philippines, 2001-2003
Table 3-11 Annual Per Capita Poverty Threshold and Poverty Incidence, 1997-2000
Table 3-12 Distribution of Municipalities and Cities in ARB Provinces, 2005
Table 3-13 Formal Users of Forestry, Mineral and Fisheries Within the ARB, 2005
Table 3-14 Population Size by Municipality and Growth Rates, ARB, 1960-2000
Table 3-15 Gender and Age Distribution of the Population in the ARB, 1980-1990
Table 3-16 Crude Birth Rate and Death Rate (Per 1000 population) ARB, 2004
Table 3-16 Mother Tongue in the ARB, 1980-2000
Table 3-17 Population by Ethnicity in the ARB, 2000
Table 3-18 Ethnics Groups in Barangays Covered by the Field Study, ARB, 2005
Table 3-19 Land Ownership among Households in the ARB, 2000
Table 3-20 Estimated Percentage of Households With Titled Land in Study
Barangays, ARB, 2005
Table 3-21 Land Use and Distribution, ARB, 2005
Table 3-22 Main Sources of Household Income, Gibong River Watershed, 2002
Table 3-23 Sources of Drinking Water among Households, ARB, 1980-1990
Table 3-24 Consensus on Sufficiency of Drinking Water ARB, October 2005
(N= 19 Barangays)
Table 3-25 Consensus on Drinking Water Characteristics ARB, October 2005
(N= 19 Barangays )
Table 3-26 Irrigated Ricelands in the ARB, 2004
Table 3-27 Consensus on Sufficiency of Irrigation Water ARB, October 2005
(N= 19 Barangays)
Table 3-28 Reasons for Insufficiency of Irrigation Water ARB, October 2005
(N= 19 Barangays)
Table 3-29 Morbidity (Per 100,000 Population), ARB, 2004
Table 3-30 Five-Year Mortality (Per 100,000 Population) ARB, 1999-2004
v
Table 3-31 Rate of Toilet Use of Households by Type of Toilet ARB, 1980-2000
Table 3-32 Cooking Fuel of Households, ARB, 1980-2000
Table 3-33 Walling Materials Used by Households, ARB, 2000
Table 3-34 Wellness Rating of Families by Wellness Indicators, ARB, 2002
Table 3-35 Percentage of Households by Type of Conveniences Owned, ARB,
1980-2000
Table 3-35 Positive Changes Noted in the Past 20 Years in Studied Barangays,
ARB, 2005
Table 3-36 Cooperative Efforts in Barangays, ARB, 2005
Table 4-1 Observations on Policy Environment on Water in the Philippines
Table 4-2 ARB Water Policy and GOP Water Policy, 2006
Table 4-3 ARBMP Water Policy, 2006
Table 4-5 Gender Analysis Framework, ARB, 2005
Table 4-6 Literacy Level (10 Years Old and Over), ARB, 1980-2000
Table 4-7 Average Number of Tasks Done by Men and Women, ARB, 2005
Table 4-8 Number of Barangays by Type of Changes in Work Distribution
Between Men and Women (last 20 Years Ago), ARB, 2005
Table 4-9 Average Number of Decision Situations Handled by Men and
Women, ARB, 2005
Table 4-10 Average Number of Assets Owned by Men and Women, ARB, 2005
Table 4-11 Holders of Forest Product User and Distributor Permits by Gender, ARB,
2005
Table 4-12 Key Issues and Objectives of Caraga Gender Development Directional
Plan, 2006-2010
Table 5-1 Sources of Funds for River Basin Organizations
Table 5-2 Summary of Aggregate Statement of Income and Expenses
For the Years Ended December 31, 2004
For Agusan del Norte, Butuan City, Agusan del Sur and Compostela
Valley (In thousand pesos)
Table 5-3 Summary of Aggregate Statement of Income and Expenses,
Local Government Units in the Agusan River Basin For the Years
December 31, 2003 and 2004,
All Funds (In thousand pesos)
Table 5-4 Approved Water Permits by the NWRB, 2004
Table 6-1 Primary Environmental Issues (Needs Assessment) ARB, 2005
Table 6-2 Priority Concerns on the Agusan Watershed, 2005
Table 6-3 IRBM Attributes and Preconditions and ARB Gaps/ Problems ARB,
2005-2006
Table 6-3 Priority Issues/ Special Case Themes in the ARB, 2005-2006
Table 6-4 Vision Statements from Stakeholder Groups December 2005 Workshop,
Butuan City
Table 6-5 ARB VGO and Water Policy, 2005
Table 6-6 ARB Policy Areas and Development Objectives, 2005
Table 6-7 Key Themes, Intervention Initiative, ARB Master Plan, 2005-2006
vi
Table 6-8 Vertical and Horizontal Integration, ARB Development Strategy

2005-2006
Table 6-9 Policy Initiatives to Development Programs/ Projects ARB Master Plan,
2006
Table 7-1 The 17 Sub-River Basins of the ARB, 2005-2006
Table 7-2 NWRB Water Permits, Selected Uses, ARB, 2005
Table 7-3 Communal Irrigation Systems, ARB, 2004
Table 7-4 National Irrigation Systems, ARB, 2004
Table 7-5 Proposed Dam Sites, ARB
Table 7-6 Water Permits and Discharges, Buenavista WD ARB, 2005
Table 7-7 Water Permits and Discharges, Bayugan WD ARB, 2005
Table 7-8 Water Permits and Discharges, Prosperidad WD ARB, 2005
Table 7-9 Water Permits and Discharges, San Francisco WD ARB, 2005
Table 7-10 Water Sources of Level III- Served Municipalities ARB, 1999
Table 7-11 Water Permits and Discharges, Nabunturan WD ARB, 2005
Table 7-12 Water Rates, Selected Water Districts
Table 7-13 Forecasted Municipal Water Demand ARB, 2000-2020 (unit: 1,000 cu.m)
Table 7-14 Forecasted Industrial water Demand ARB, 2000-2020 (unit: 1,000 cu.m)
Table 7-15 Water Balance (Municipal & Industrial Demand) ARB, 2005-2020
Table 7-16 Flood Control Structures, ARB, 2005
Table 7-17 Proposed Hydropower Projects, ARB
Table 7-18 Estimated Cost of Projects in Water Quality Management Program ARB
Master Plan, 2005-2006
Table 7-19 List of Proposed Flood Management Projects ARB Master Plan,
2005-2006
Table 7-20 List of Water Resources Development Projects ARB Master Plan,
2005-2006
Table 7-21 List of Watershed Management Projects ARB Master Plan, 2005-2006
Table 7-22 List of Agusan Marsh and Wildlife Sanctuary Management Projects ARB
Master Plan, 2005-2006
Table 7-24 List of Indigenous Peoples Development Projects, ARB Master Plan,
2005-2006
Table 7-25 List of Agusan River Basin Organization Development Projects ARB M
Plan,
2005-2006
Table 8-1 Checklist for Screening of Potential Environmental Impacts
ARB Master Plan
Table 8-2 Simplified Screening Matrix of Environmental Impacts SEA,
ARB Master Plan
Table 8-3 Summary of Significant Adverse Impacts & Mitigation Measures SEA,
ARB Master Plan
Table 8-4 Simplified Screening Matrix of Cumulative Impacts SEA,
ARB Master Plan
vii
LIST OF FIGURES
Figure 1 Location of Project Area, ARB, 2005-2006

Figure 2-1 Administrative and Basin Boundaries
Figure 2-2 Climatological Map
Figure 2-3 Location of the Rainfall Stations
Figure 2-4 Location of Streamflow Gauging Stations
Figure 3-1 2005 Gross National Regional Domestic Product
Figure 3-2 2005 per capita GRDP
Figure 3-3 Thousand Persons Employed, CARAGA 2001-2005
Figure 3-4 Comparative Distribution of Municipalities, ARB, 2005
Figure 3-5 Percentage Distribution of the ARB Population by Province, 2000
Figure 5-1 Proposed Structure for the Agusan River Basin Organization
Figure 6-1 Conceptual Framework of IRBM for Agusan River Basin
Figure 6-2 Development Approach to IRBM for Agusan River Basin
Figure 6-3 IRBM Strategy for the Agusan River Basin
Figure 7-1 Location of Projects for Water Quality Management Program,
ARB Master Plan, 2005-2006
Figure 7-3 Location of Projects for Flood Management Program,
Figure 7-4 Location of Projects for Water Resources Development Program,
Figure 7-5 Location of Projects for Watershed Management Program
Figure 7-6 Location of AMWS Management Program Projects,
Figure 7-7 Location of Projects for Indigenous Peoples Development Program,
viii
LIST OF ANNEXES
ANNEX 2A: RAINFALL INTENSITY DURATION FREQUENCY (RIDF)
ANNEX 2B: STREAMFLOW AVAILABILITY
ANNEX 2C: WATER BALANCE ANALYSIS
ANNEX 2D: FLOOD SIMULATION
ANNEX 2E: VULNERABILITY OF ARB TO HAZARDS
ANNEX 2F: ASSESSMENT OF MERCURY CONTAMINATION OF

AGUSAN RIVER SYSTEM
ANNEX 2G: BIO-PHYSICAL FEATURES OF THE AGUSAN RIVER BASIN
ANNEX 2H: BIO-PHYSICAL FEATURES OF ARB SUB-BASINS
ANNEX 2I: LAND USE AND LAND COVER
ANNEX 2J: MANAGEMENT OF AGUSAN MARSH AND WILDLIFE SANCTUARY
ANNEX 4A: GENDER ACTION PLAN
ANNEX 5A: SECRETARIAT ROLL-OUT STRATEGY
ANNEX 6A: INTER-RELATED CONCERNS
ix
ACRONYMS AND ABBREVIATIONS
AAGR Annual Average Growth Rate

ADB Asian Development Bank
AFF Agriculture, Fishery and Forestry
AFMA Agriculture and Fisheries Modernization Act
AMWS Agusan Marsh and Wildlife Sanctuary
ARB Agusan River Basin
ARBA Agusan River Basin Authority
ARBMP Agusan River Basin Master Plan
ARBO Agusan River Basin Organization
ARMM Autonomous Region of Muslim Mindanao
BOD Biological Oxygen Demand
BOT Build-Operate Transfer
BPO Business Process Outsourcing
BSWM Bureau of Soils and Water Management
CA Commission on Audit
CAR Cordillera Administrative Region
CARP Comprehensive Agrarian Reform Program
CBFMA Community-Based Forest Management Agreements
CEPA Communication, Education and Public Awareness
CIP Carbon-in-pulp
CIS Communal Irrigation Systems
CLT Certificate of Land Transfer
CLUP Comprehensive Land Use Plan
CN cyanide
COSTMA Co-o, Sinug-ang, Tinagoand Masabong
CPPAP Comprehensive Priority Protected Areas Project
CSC Certificate of Stewardship Contract
DA Department of Agriculture
DA-BFAR DA- Bureau of Fisheries and Aquatic Resources
DAO DENR Administrative Order
DENR Department of Environment and Natural Resources
DepEd Department of Education
DIDP Davao Integrated Development Program
DO Dissolved Oxygen
DOE Department of Energy
DOH Department of Health
DOT Department of Tourism
DPWH Department of Public Works and Highways
EHS Environmental Health and Sanitation
EIA Environmental Impact Assessment
EMB Environmental Management Bureau
EMP Environmental Management Plan
EU European Union
EVAT Expanded Value Added Tax
FAME Fishery, Agri-Forestry, Mineral and Ecotourism
FAO Food and Agriculture Office
GAD Gender and Development
x
GDP Gross Domestic Product

GIS Geographic Information System
GMA Ginintuang Masaganing Ani
GOCC Government-owned and Controlled Corporation
GOP Government of the Philippines
GRDP Gross Regional Domestic Product
GWP Global Water Partnership
Hg mercury
ICCs Indigenous Cultural Communities
IPM Integrated Pest Managements
IPs Indigenous peoples
IRA Internal Revenue Allotment
IRBM Integrated River Basin Management
IT Information Technology
IUCN International Union for the Conservation of Nature
IWRM Integrated Water Resources Management
JBIC Japan Bank for International Cooperation
JICA Japan International Cooperation Agency
LADA Lower Agusan Development Alliance
LADP Lower Agusan Development Project
LAMP Land Administration and Management Project
LCEs Local Chief Executives
LGAs Local Government Agencies
LGUs Local Government Units
LFPR Labor Force Participation Rate
LLDA Laguna Lake Development Authority
LMDA Lake Mainit Development Alliance
LWUA Local Water Utilities Administration
MAP Minerals Action Plan
MDB Murray-Darling Basin
MDG Millennium Development Goals
MIS Management Information System
MMT Multipartite Monitoring Teams
MOA Memorandum of Agreement
MOOE Miscellaneous and Other Operating Expenses
MSU- Naawan Mindanao State University Naawan
MT Metric tons
MTPDP Medium-Term Philippine Development Plan
MWSS Metropolitan Waterworks and Sewerage System
N Nitrogen
NCRFW National Commission of the Role of Filipino Women
NCR National Capital Region
NEDA National Economic and Development Authority
NGOs Non Governmental Organizations
NIA National Irrigation Administration
NIPAS National Integrated Protected Areas
NIPAS National Integrated Protected Areas System
NRMP Natural Resources Management Program
xi
NSCB National Statistical Coordination Board

NSO National Statistics Office
NTFP Non-timber Forests Products
NWRB National Water Resources Board
NWRB National Water Resources Board
NWRC National Water Resources Council
ODA Official Development Assistance
ODA Official Development Assistance
OPA Office of the Provincial Agriculture
OPV Office of the Provincial Veterinarian
P Phosphorous
PAGASA Philippine Atmospheric, Geophysical and Astronomical Services
Administration
PAP Public Awareness Pan
PBCPP Philippine Biodiversity Conservation Priority-setting Program
PCEEM People Collaborating for Environmental and Economic Management
PD Presidential Decree
PENRO Provincial Environment and Natural Resources Office
PHO Provincial Health office
PIA Philippine Information Agency
PIA Philippine Information Agency
PIPs Pump Irrigation Projects
PPA Philippine Port Authority
PPDCs Provincial Planning and Development Coordinators
PPFPs Provincial Physical Frameworks Plans
PPGD Philippine Plan for Gender-Responsive Development
PPPPs Policies, Plans, Programs and Projects
PSIWRM Philippine Strategy for Improved Watershed Resources Management
PTFWRDM Presidential Task Force on Water Resources Development and
Management
RA Republic Act
RBCO River Basin Control Office
RC Resource Capital
RDC Regional Development Council
RIARC Regional Integrated Agricultural Research Center
RIPs River Irrigation Projects
RIS River irrigation System
RPFP Regional Physical Framework Plan
RSALUP Regional Sustainable Agriculture Land Use Plan
RTDs Regional Technical Directors
RWDC Rural Waterworks Development Corporation
SAFDZs Startegic Agricultural and Fisheries Development Zones
SEA Strategic Environmental Assessment
SEC Securities and Exchange Commission
SIDA Swedish International Development Agency
SMEs Small and Medium Enterprises
SOCCSKSARGEN South Cotabato, Cotabato City, Sultan Kudarat, Sarangani and
General Santos City
TA Technical Assistance
xii
TG Theme Groups
TLW Talomo-Lipadas Watershed
TSS Total Suspended Solids
TWG Theme Working Groups
ULEG Unified Local Environmental Governance
UN United Nation
UNCED UN Conference on Environment and Development
UNDP United Nations Development Program
UNIDO United Nations International Development Organization
VGO Vision, Goals and Objectives
WB World Bank
WCED World Council on Environment and Development
WDs Water Districts
WQMA Water Quality Management
WRMPP Water Resources Policy Paper
WWC World Water Council
WWF World Water Forums
xiii
INTRODUCTION
Master Plan for the Agusan River Basin Project Final Report
1.0 INTRODUCTION
1.1 BACKGROUND
The Agusan River Basin (ARB) Master Plan (ARBMP) Project is a Technical Assistance (TA)
provided by the Asian Development Bank (ADB) to the Government of the Philippines (GOP) here
represented by the Department of Environmental and Natural Resources (DENR) and the
National Water Resources Board (NWRB) as co-Project implementers.
The TA Study is commissioned to the Consultants consisting of CTI Engineering International Inc.
(CTII, Japan), Halcrow (UK), and Woodfields Consultants Inc. (Philippines).
The TA is designed into two (2) phases. Phase I involves the formulation of the Water Policy and
Development Strategy; and Phase II, the Master Plan. Total Project duration is 12 months, from
August 2005 to July 2006.
1.2 STUDY AREA
The Agusan River Basin is the third largest river basin of the Philippines with drainage area of
10,921 km. It is located in the northeastern part of Mindanao as shown in Figure 1-1. The
Agusan River passes mainly through three (3) provinces in Region XI and Caraga. The River
originates from the slopes of Davao Oriental, traverses northward through Compostela Valley,
Agusan Marsh in Agusan del Sur, and Agusan del Norte, before draining into Butuan Bay.
Figure 1-1 Location of Project Area, ARB, 2005-2006
1-1
1.3 GOAL AND OBJECTIVES
The goal of the Master Plan is to map out a development strategy that, once implemented, will
promote optimal development of resources and reduce poverty in the Agusan River Basin. With
reference to the TOR, the specific objectives of the TA are as follows:
z Conduct of extensive consultations with stakeholders in the Agusan River Basin;

z Formulation of a plan to strengthen IRBM capability in relevant government
organizations as well as people in communities; and
z Identification of appropriate institutional arrangements for managing the Basin
1.4 APPROACH AND METHODOLOGY
The TA provided by ADB will assist DENR-NWRB in preparing a Master Plan for the Agusan
River Basin in Mindanao with the Integrated River Basin Management (IRBM) approach as its
development framework. The process shall involve participation of all stakeholders, including civil
society, the private sector, local government units (LGUs), and the National Government. IRBM
denotes the implementation of Integrated Water Resources Management (IWRM), while IWRM as
define by GWP is a process which promotes the coordinated development and management of
water, land, and related resources in order to maximize the resultant economic and social welfare
in an equitable manner without compromising the sustainability of ecosystems.
Implementing an IWRM process is particularly a question of getting the three pillars right on i)
Moving towards an enabling environment of appropriate policies and strategies for sustainable
development and management; ii) Putting in place the institutional framework through which
the policies and strategies may be implemented; and iii) Setting up the instruments required by
these institutions for appropriate action. The diagram showing the linkages of the pillars to the
master plan in order to attain the vision, goal and objectives is shown in Figure 1-2.
VISION
VISION
GOAL
OBJECTIVES
APPROPRIATE INSTITUTIONAL
MANAGEMENT
POLICIES and FRAMEWORK IN INSTRUMENT
PLACE SET
LEGISLATIONS
Master Plan for the Agusan River Basin
Strategies/Activities/Sub-Activities
Programs/Projects
Figure 1-2 Three Pillars Linkages Diagram

1-2
1.5 KEY ACTIVITIES
The TOR for the Consulting Services, as designed by ADB, consists of task activities grouped into
two (2) phases as follows.
Phase 1: Review of Water Policy and Strategy for Basin Development
Phase 1 involves an elaboration of a Development Strategy for the Basin, while the
highlights of major activities are:
(i) Collection of relevant statistical data relating to climatic, hydrologic, geographic, hydro
geological, environmental and socioeconomic conditions in the Basin; and review of
existing policies and strategies in water-related sectors. It includes a review of the
role and sustainability of river basin organizations, resource transfer mechanisms
between downstream residents and poor people in the upstream living in watershed
areas, and participatory approaches for stakeholder involvement in drawing up the
Master Plan.
(ii) Conduct of intensive consultation meetings with stakeholders in the downstream,

midstream and upstream areas to identify needs and resolve conflict of interests, and
determine approaches for future development of the Basin while protecting
environmental sensitive areas.
(iii) Assessment of the role of existing basin organizations, such as Laguna Lake
Development Authority and Agno River Basin Commission, with analysis of the
issues on sustainability of inactive organizations, such as the Cagayan River Basin
Commission and Bicol River Basin Commission.
(iv) Firming up of the development strategy for the Agusan River Basin, taking into
consideration the outcome of stakeholder consultations. The Consultants to hold a
workshop at the end of Phase 1 with representatives from the DENR, NWRB,
Department of Agriculture (DA), NIA, Department of Public Works and Highways
(DPWH), four (4) provincial governments of Northeastern Mindanao, Butuan City
government, non-government organizations (NGOs), and other stakeholders. The
workshop shall be the venue for discussing the Basin Development Strategy as well
as the results to be presented in the Interim Report. The development strategy will be
discussed at the Tripartite Meeting among representatives from the Government, the
Consultants, and ADB.
Phase 2: Formulation of a Master Plan
The key activity involves the formulation of a Master Plan for the Agusan River Basin
based on the Development Strategy agreed upon at the end of Phase 1. The Master Plan
will identify measures for strengthening capability for IRBM, and assess the necessity for
the Agusan River Basin Commission. Likewise, it will include the prioritized list of potential
projects in irrigation, watershed restoration and management, environmental protection,
hydropower, domestic and industrial water supply and other sectors, with preliminary cost
estimates of each project. This will be presented and discussed in a Final Workshop, and
will serve as baseline by the Government and ADB and other development partners for
future development activities in the Basin.
1-3
PHYSICAL AND ENVIRONMENTAL CONDTION
2.0 PHYSICAL AND ENVIRONMENTAL CONDITION

2.1 GEOGRAPHIC SETTING
An understanding of the physical system and its interaction with the environment is a prerequisite
for an effective planning and management of water resources.
The Agusan River Basin is a strategic water resource forming three (3) sub-basins in the
northeastern portion of Mindanao, popularly referred to as the Lower, Middle, and Upper Agusan
River basins.
x Lower Agusan River Basin (Downstream Watershed), which is the area downstream of
the Agusan wetland along the downstream reach from Talocogon in Agusan del Sur
Province;
x Middle Agusan River Basin (Midstream Watershed), which is the area along the reach
between Talocogon and Sta. Josefa in Agusan del Sur Province including the Agusan
wetland; and,
x Upper Agusan River Basin (Upstream Watershed), which is the area along the upstream
reach from Sta. Josefa in Compostela Valley Province
The Agusan River flows through three (3) provinces of Agusan del Norte, Agusan del Sur and
Compostela Valley in Mindanao as shown in Figure 2-1. It is the third largest river in the
Philippines with a total catchment area of about 10,920 km. Fed by eleven (11) principal
tributaries, the 350-km river originates from the slopes of Mounts Mayo and Tagopo in
Compostela Valley, traverses northward through Compostela Valley, Agusan Marsh in Agusan
del Sur, and Agusan del Norte, before draining into Butuan Bay. The Basin is comprised of 11
principal river systems as listed in Table 2-1.

2-1
Table 2-1 List of Tributaries
NWRB Drainage Area Estimated Annual

River Basin
Code (sq. kms.) Run-off (MCM)
10315 Agusan 10,921 27,880
10316 Ojot 765 19,523
10317 Wawa 795 2,030
10419 Andanan 380 970
10318 Libang 228 582
10319 Maosam 418 1,067
10320 Kasilan 284 725
10321 Gibong 824 2,104
10322 Adgaoan 965 2,464
10323 Simulao 944 2,410
10324 Kayonan 802 2,048
10325 Haoan 664 1,695
The Agusan River Basin is an elongated half-graben structure closely related to the Philippine
Fault Zone which transverses through the centre from north to south. The major physiographic
features of the basin are the Pacific Cordillera on the east and south, the Central Cordillera on the
west and the Davao-Agusan trough in the central part. The Pacific Cordillera forms the eastern
and southern boundaries of the region and separates it from the Pacific Ocean. Peak elevations
range from 1,700 m along the eastern boundary and 2,500 m in the southern mass. A low section
with elevations of a couple hundred meters exists adjacent to the central portion of the basin. The
Central Cordillera is a discontinuous mountain range and volcanic chain having peak elevations
over 1,700 m.
The southern portion of the basin, approximately 65 km in length, is narrow and mountainous with
an average width of only 25 km. The remaining basin averages 50 70 km in width. Within the
wider portion of the basin, an alluvial plain occupies the central part. This central flood plain
slopes gently downwards to the north and is generally less than 50 m above sea level and the
average width is approximately 30 km. Foothills occupy the area between the central alluvial
plain and the mountains.
An essential feature of the Basin is the wetland located in the middle reach of the river (Middle
Agusan), known as Agusan Marsh, which serves a flood retention basin that cuts peak discharge
of flash floods to downstream areas. The wetland also acts as a sediment trap during flood
season.
The wetland harbors unique and pristine habitats like sago, peat swamp forests and snails
carrying schistosomiasis parasites. It is also the habitat of rare and endangered fauna. Physically,
the Agusan Marsh is about 19,200ha, 14,836ha of which was proclaimed a Wildlife Sanctuary in
1996 and is registered under the Ramsar Convention, being the most important freshwater
wetland in the country. The Marsh is also a designated protected area under the National
Integrated Protected Areas System (NIPAS).
2.2 CLIMATE
The Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA)
utilizes three climatic classification systems, namely: Corona, Hernandez, and Koppen. The
Corona classification gives emphasis on season type, the Hernandez on the number of wet and
dry months, and the Koppen on the temperature range and the amount of rainfall in the driest
month.
Based on Corona Climatological Classification, the climate of the Agusan River Basin is generally
classified as Type 2, which is characterized by the absence of a dry season and a very pronounce
maximum rainfall occurring from November to January. However, the southern portion of the
2-2
basin, which covers the area of Compostela Valley exhibits the characteristic of Type 4. The
climate of the basin is described as no dry season with a very pronounced maximum rainfall
during the months of November to January.
Similarly, under the Hernandez classification, the basin belongs to Type A or rainy throughout the
year and under Koppen, Type A for tropical wet climate.
A map of the basin with the areas classified under the different types of climatic conditions is
shown in Figure 2-2.
Figure 2-2 Climatological Map
2-3
2.3 RAINFALL
Within the Agusan River Basin, the Philippine Atmospheric, Geophysical, and Astronomical
Services Administration (PAGASA) maintains only one rainfall recording station, which is located
at Bancasi Airport, Butuan City. Other nearby PAGASA stations include: Surigao City; Hinatuan,
Surigao del Sur; Cagayan de Oro, Misamis Oriental; Davao City; and Malaybalay, Bukidnon. The
data from these stations is almost continuous over the last 20 years.
Within the basin, daily rainfall information was made available from NIA irrigation system offices.
Generally this data is collected at the office compound and at the site of the irrigation diversion
structure, but the record length is not as long as that from the PAGASA stations. However, this
information is better distributed throughout the basin. Additional historic information, usually in
the form of monthly averages, has been extracted from previous reports. A summary of the
recording stations is given in Table 2-2.
Table 2-2 List of Rainfall Stations

Elevation
Latitude Year of Maintaine
Locations Province Above
Longitude Record d by
msl (m)
o
1. Butuan City Agusan del Norte 8 57' 1960 - 2001 PAGASA 18.00
o
125 33'
o
La Suerte, Prosperidad Agusan del Sur 8 27' 1981 - 2001 NIA 48.00
2. o
Pilot Demo Farm, GRIS 125 54'
o
Sta. Irene, Bayugan Agusan del Sur 8 44' 1981 - 2001 NIA 100.00
3. o
ARIS 125 57'
o
4. Gagbas, Bayugan Agusan del Sur 8 47' 1991 - 2000 NIA 38.00
o
Andanan RIS Compound 125
o
5. Patin-ay Agromet Station Agusan del Sur 8 36' 1970 - 1999 DA 45.00
o
Prosperidad 125 53'
o
6. NIA - PIO Agusan del Sur 8 27' 1989 - 1998 NIA 92.00
o
Rosario 125 53'
o
7. Simulao RIS Agusan del Sur 8 03' 1983 - 2001 NIA 60.00
o
Trento 126 04'
o
8. Tagum Agromet Station * Davao del Norte 7 25' 1972 - 2000 PAGASA 18.00
o
Twin River 125 48'
o
9. Malaybalay * Bukidnon 8 09' 1949 - 2000 PAGASA 627.00
o
125 05'
o
10. Hinatuan * Surigao del Sur 8 22' 1971 - 2000 PAGASA 3.00
o
126 20'
o
11. Davao City * Davao del Sur 7 07' 1902 - 2000 PAGASA 18.00
o
125 39'
o
12. Sagbayan, San Miguel * Surigao del Sur 8 56' 1990 - 2000 NIA 15.00
o
Tago RIS 126 02'
o
13. Compostela Compostela Valley 7 35' 1970 - 2000 NIA 140.00
o
Batutu RIS 126 6'
o
14. CMU, Musuan * Bukidnon 7 53' 1978 - 1999 PAGASA 350.00
o
125 02'
o
15. Cagayan de Oro City * Misamis Oriental 8 29' 1908 - 1999 PAGASA 6.00
o
124 38'
o
16. Surigao City * Surigao del Norte 9 48' 1902 - 2000 PAGASA 39.00
o
125 30'
o
17. Lumbia Airport * Misamis Oriental 8 26' 1977 - 2000 PAGASA 182.00
o
Cagayan de Oro 124 37'
Note:
* Rainfall Station located outside the Watershed
In total, rainfall information was available for 17 sites within the Agusan River Basin. Apart from
the PAGASA stations outside of the basin, the network is exclusively located on the east side of
the valley and the highest elevation of a station being 627 meters. The locations of the rainfall
recording stations are indicated in Figure 2-3.
2-4
Figure 2-3 Rainfall Stations and Isohyetal Map
An isohyetal map of average annual rainfall in the basin is also delineated in Figure 2-3. As
shown in this map, the average annual rainfall is not uniform throughout the basin. It varies from
2,000 mm to over 4,000 mm. The lowest accumulations occur in the area between Talacogon
and Butuan, and upstream of Sta. Josefa into the central portion of Compostela Valley. The
highest rainfall occurs in the mountains that bound the basin on the east and west. The rainfall in
the central portion of the basin varies between 3,300 and 3,600 mm. Of interest, Rosario, Agusan
del Sur has the highest recorded average annual rainfall of 3,633 mm although its elevation is
only about 60 m. As compared to Butuan City, the higher average depth in the central region is a
result of a greater number of days of rain and higher intensities.
Although outside the basin, the PAGASA station at Hinatuan has been selected as the index
station for the central and southern portions of the basin, Butuan has been used as the index
station for the northern region downstream of Talacogon
In the northern and southern portions of the basin, the average annual rainfall is about 2,000 mm.
The minimum and maximum annual rainfall for these areas is 1,000mm and 3,000 mm
respectively. In the central portion of the watershed, the long-term average annual is 3,600 mm
with the minimum annual rainfall being 2,200 mm and the maximum annual rainfall reaching
5,000 mm.
2-5
These values indicate that there is a very large variation in rainfall, not only between different
locations, but from year to year.
The rainfall intensity duration frequency (RIDF) is explained in Annex 2A.
2.4 STREAMFLOW
Discharge data is available from two primary sources: NIA and BRS (NWRB). The NIA data
consists of daily means and is collected at their diversion weirs for the larger irrigation systems.
The officially released BRS data consists of daily mean and in some instances daily maximum
values up to 1992. A 2004 publication is available from BRS but there are no river systems
included within the basin. The discharge values are determined through gauge readings
conducted three times a day and in the case of high flows, at a smaller interval.
A total of 18 NWRB or BRS gauging stations have been installed and operated in the basin at one
time or another. Presently, data is only being collected for 6 stations. Table 2-3 contains a
summary of the available data and other information about these stations, while their approximate
point locations are shown in Figure 2-4.
Table 2-3 List of Streamflow Gauging Stations
Zero Gage Max. Q

Drainage Year of Elev.(m) Latitude
No. Station ID River Name Station Name 2 Operational Min. Q
area (km ) Record Longitude
(cms)
Gage Height
(m)
O
10SW085252 Magsaysay Bridge, baan, - 8 57" -
1 Agusan River 11,510 1957-1991 Yes
PW005 Butuan City 4.95 125O32" -
10SW084254 Wawa, Bayugan, Agusan 98.52 8O49" 2,296.53
2 Wawa River 396 1981-1990 No
BRS032 del Sur 5.49 125O42" 0.60
10SW082454 Sta. Irene, Bayugan, - 8O45" 209.22
3 Andanan River 201 1983-1987 Yes
BRS033 Agusan del Sur 1.84 125O45" 3.52
10SW084254 Wawa, Esperanza, 0.427 (AMSL) 8O47" 841.00
4 Wawa River 1,031 1957-1984 No
BRS031 Aguasn del Sur 41.98 125O41" 0.020
10SW083253 Milagros, Esperanza, 8O38" -
5 Busilao River 316 1967-1970 No
PW009 Agusan del Sur 125O34" -
10SW083255 Bah-bah, Prosperidad, 5.96 8O36" 582.00
6 Gibong River 427 1964-1975 No
PW013 Agusan del Sur 5.20 125O54" 0.30
10SW083254 San Isidro, Talacogon, 98.02 8O32" -
7 Agusan River 7,390 No
PW010 Agusan del Sur 7.76 125O46" -
10SW082254 - 8O27" -
8 Kasilayan River Baylo, Talacogon, Agusan 209 1968-1969 No
PW012 - 125O42" -
10SW081254 Langasian, La Paz, 47.15 8O14" 530.66
9 Kayawan River 348 1967-1980 No
PW014 Agusan del Sur 3.80 125O42" 0.90
10SW081254 Halapitan, La Paz, Agusan - 8O14" -
10 Adgaoan River 820 1967-1970 No
PW015 del Sur - 125O45" -
10SW080255 Nueva Gracia, Loreto, - 8O06" -
11 Ihaoan River 667 1967-1968 No
PW017 Agusan - 125O52" -
10SW080255 San Teodoro, Bunawan, 92.414 8O09" 810.60
12 Simulao River 1,030 1981-1990 Yes
10SW080255 Sta. Josefa, Bunawan, - 7O59" 1,857.84
10SW080260 San Ignacio, Trento, - 8O01" 196.20
14 Simulao River 286 1984-1991 Yes
10SW074260 Magas, Mamonga, - 7O48" 544.20
15 Agusan River 1,522 1981-1986 No
BRS027 Monkayo, ComVal 6.88 126O03" 0.35
10SW073260 Camanlangen, New 92.96 7O31" 212.00
16 Agusan River 343 1967-1985 No
BRS026 Bataan, ComVal 3.12 126O07" 0.63
10SW075260 Kalaw Bridge, Monkayo, - 7O50" 2,114.00
BRS028 ComVal - 126O03" -
O
Batutu River Irrigation - 7 35" -
18 - Agusan River 290 Yes
System - 126O06" -
2-6
Figure 2-4 Location of Streamflow Gauging Stations
Dependability Analysis. To ensure adequate water supply during dry or drought conditions, a
low flow analysis has been conducted to establish available discharges on tributaries during these
periods. Flow duration curves for 15 tributaries at their confluence with the Agusan River have
been developed. Flow duration curves provide the percentage of time a certain flow is equaled or
exceeded. Dependable stream flow can be derived from these curves by reading off values for a
particular percentage of time, say 80%. Eighty percent (80%) dependability is the limit adopted
by NWRB in granting water rights.
2-7
For an exceedance probability of 80%, the surface water potential for each sub-basin has been
estimated as shown in Table 2-4. The streamflow availability analysis is presented in Annex 2B,
while the water balance analysis is shown in Annex 2C.
Table 2-4 Surface Water Potential of Sub-Basins, ARB, 2000

Potential Surface Water
Area (km2)
Sub-Basin No. Name of River (MCM)
1 Wawa 1,026 851.47
2 Gibong 1,269 473.04
3 Simulao 997 441.51
4 Upper Agusan 454.12
5 Manat 196 138.76
6 Boabo 141 44.15
7 Logum 151 50.46
8 Ihaoan 656 220.75
9 Umayam 782 315.36
10 Adgaoan 983 378.43
11 Kasilayan 300 378.43
12 Maasam 400 441.5
13 Libang 280 283.82
14 Ojot 805 756.86
15 Bugabus 184 145.06
Source: Study on Watershed Management and FWS of the Agusan River Basin
(DPWH, 2003)
2.5 GROUNDWATER
Recently the NWRB endeavored to consolidate all water resources developments and
corresponding data throughout the country. Well drillers and well owners have been required to
submit well-log data from their wells prior to their application of water permits. However, despite
rigorous campaign by the NWRB, the registration of water users still needs further enhancement.
Groundwater mining in the Agusan Basin shows total groundwater storage at an estimated 2,690
MCM with an inflow to the groundwater reservoir system of about 940 MCM/year (NWRC, 1983).
The recommended safe yield level is set at 940 MCM/year. Barring any major change, 994
MCM/year would be available for a 50-year mining withdrawal.
Groundwater availability is reportedly restricted by the occurrence of natural gas in the middle and
lower reaches of the river system (DPWH, 2003). Groundwater cannot be abstracted easily both
as a source of potable water and of irrigation water, due to its high iron content, a constraint for
use in some crop types in irrigation. There is also evidence of fecal pollution in groundwater,
particularly near large settlements, and of salinity in younger aquifers found near coastal areas.
2.6 ENVIRONMENTAL SETTING
Situational analysis of the environmental setting of the ARB covers four (4) essential aspects;
namely the: (i) natural physical environment, distinguished from the previous discussion by
providing corresponding environmental perspectives on several physical features of the Basin; (ii)
biological environment, as encompassed by forest-watershed resources/terrestrial, freshwater,
and marine habitats; (iii) environmental issues and social dimensions, taking into account of major
issues arising from interaction of social and environmental elements in the Basin, particularly of
human practices and decisions related to and impacting resource use and sustainability; and, (iv)
key environmental issues and stakeholder priorities, which is 2-tiered in dealing with local views
and positions on the environment as a whole, and on the status of watershed management in
particular.
2-8
2.6.1 Natural Physical Environment
(i) Atmosphere
The main consideration of air pollution in the ARB from the perspective of water
resources management is that pollutive air particles may land on the ground and find their
way into surface and groundwater systems. The potential sources of atmospheric
pollution are isolated industrial processing plants particularly in Butuan City, where there
is a concentration of wood processing. In Agusan del Sur, palm oil mills are potential air
polluters, although these tend to use generated organic waste as fuel rather than non-
renewable hydrocarbons. However, there is presently no baseline air quality monitoring
data by which to understand the extent of air pollution from such sources.
(ii) Climatic Conditions
From an environmental planning perspective, the daily distribution of rainfall is crucial to

the hydrology of the Basin. Intense localized monsoon rains of 3-5 days duration are
causes of significant flooding affecting even coastal areas from October to February each
year.
(iii) Flooding
Flood studies previously conducted on the Basin have indicated the flood-retarding
capacity of the Agusan Marsh. Flood analysis carried out in a 2003 DPWH Study1
showed that while behaving in Butuan City at 2,600m3/s for a 2-year return period and
nearly 5,000m3/s for a 30-year return period, peak discharges immediately downstream of
the Marsh tends to be slower at 1,000m3/s for a 2-year return period and 2,100m3/s for a
30-year return period.
The same flood analysis indicated that most peak flood events downstream of the
Agusan Marsh are due to flood conditions on its tributaries downstream. However, the
total discharge volume and duration of such flooding will still be influenced by flows
coming from the Marsh.
In the Upper Agusan River Basin, comprising of the municipalities of Monkayo,

Montevista, Compostela, New Bataan, Nabunturan and Maragusan, flooding is caused by
the overflowing of heavily silted rivers. Moreover, the meandering narrow gorge
downstream of Kalaw Bridge causes backwater to extend upstream of it, inundating large
agricultural lands.
The flood simulation discussion is presented in Annex 2D, while the vulnerability of the
basin to hazards is discussed in Annex 2E.
(iv) Surface Water
(a) Water Quantity
Shortages in surface water would be critical in the future at several sub-basins in the
ARB, due primarily to increases in population and expansion of irrigation
developments. To reiterate, eight (8) sub-basins would experience water deficit
before year-2030.
(b) Water Quality
Major surface water quality issues in the Basin are due to pollution from: 1) industry
including mining, palm and coco oil processing and wood-based industries, 2)
domestic waste water and solid waste, and (iii) agri-chemical use.
1
DPWH, 2003, Study on Watershed Management and FWS of the Agusan River Basin
2-9
1) Industry
Pollution from Mining. Two (2) gold mining areas exist in the Basin. One is within
the upper catchment in the Diwalwal gold rush area in Compostela Valley. In this
area, small and medium-scale illegal mining operations have been going on
unregulated for the last 20 years, until State control was imposed in late 2002.
The other is within the middle catchment in the Co-o, Sinug-ang, Tinago and
Masabong (COSTMA) area between Rosario and Bunawan in Agusan del Sur.
Here, a modern, closed-cycle system of carbon-in-pulp (CIP) milling and
treatment facilities is available but operates at only 6% of its design capacity,
alongside informal small-scale operations.
A serious environmental concern in both areas is the use of mercury (Hg) and
cyanide (CN) in the process of amalgamation and cyanidation to extract gold from
ore. The DENR-Environmental Management Bureau (EMB) XI started monitoring
mercury and cyanide levels in surface water only in 1995 but ceased after early
2003. Meanwhile, no regular data collection on these surface water environments
in being undertaken by DENR-EMB XIII.
Available surface water data show the alarming levels of toxic elements in several
river systems within or contiguous to the ARB especially those located close to
mining areas. The data likewise indicates the spread of mining pollutants into
agricultural and marine ecosystems.
DENR-EMB XI monitoring results until 2002 reveal that in Naboc River, about
5km downstream of the Diwalwal mine site, Hg levels in water were often more
than 10 times the national standard of 0.002 mg/L. In Agusan River, about 30km
from the confluence with Naboc River, Hg levels in water were as high as 4 times
the allowed limit. Hg levels in water were below standard only in 2002, during the
imposition of the state moratorium on mining in Diwalwal. After mining was
resumed in 2003, Hg levels in water once more soared to as high as 750 to 900
times the acceptable level.
A special UNIDO2-funded study carried out in Diwalwal by the British Geological

Survey (UNIDO, 2000) showed that Hg levels in polluted sediments from Naboc
River that found their way into irrigated rice paddies in nearby fields were as high
as 66mg/kg. Levels of Hg in bottom sediments in Agusan River downstream of
the confluence with Naboc River were as high a 55 times the Canadian standard
of 1 ppm or 0.001 mg/L. An assessment by DENR-MGB in 2002 confirms that Hg
levels in sediments were indeed as high as 13 times the Canadian standard in
the Diwalwal area and were at alarming levels (17.6 mg/L) in the Sinug-ang mine
area.
A marine resource assessment study conducted by the Mindanao State

University at Naawan (MSU-Naawan) for the DA-Bureau of Fisheries and Aquatic
Resources (DA-BFAR) in 2002 also confirmed that Hg concentrations in coastal
waters, sediments and fish samples were also a cause for alarm, as polluted river
sediments move into the marine system.
Pollution from Palm/Coconut Oil Processing. The concern on vegetable oil

processing is its production of waste with relatively high levels of organic matter
that could result to low levels of biological oxygen demand (BOD) in water and, in
extreme cases, render surface water pollution. Specific industrial pollutants
generated can also be major contributors of phosphorus (P) and nitrogen (N) that
may cause eutrophication of water bodies.
In the Basin, extensive palm oil plantations are found in its middle catchment,
notably in Rosario, San Francisco, Trento and Veruela in Agusan del Sur. A palm
2
United Nations International Development Organization (UNIDO)
2-10
oil processing plant is located in Rosario while a coconut oil processing plant is
operating in the coastal municipality of Magallanes in Agusan del Norte. These
industries were perceived by communities to have been responsible in the
incidence of fish kills in the Basin.
Regular DENR-EMB XIII monitoring show that dissolved oxygen (DO) and BOD
were consistently within acceptable levels. However, there is no regular point
source monitoring of effluents from these industries.
Pollution from Wood-based Industries. Match and plywood factories concentrated

near the mouth of Agusan River in Magallanes pose potential problems to surface
water quality of Agusan River as well as Butuan Bay due to high level of organic
wastes and chemical effluents disposed into these river systems. Aside than this,
manufacturing plants also produce noxious gases from smokestacks. Meanwhile,
most sawmills located in the banks of Agusan River in Butuan also discharge
waste directly into the river and burn these in the open, the practice causing ash
and other particulates to pollute both air and water. Other non-operational saw
mills, meanwhile, have abandoned waste stockpiles that become washed out
during flood events. Similar to processing plants, there is no regular point source
monitoring of effluents from these wood industries.
2) Pollution from Domestic Waste Water
The provision of sanitation facilities in the Basin is very inadequate. While it is

reported that sanitation has generally improved (with more than 90% of
households having sanitary toilets throughout the Basin), there are no closed
domestic wastewater collection systems or treatment facilities in the study areas,
not even in Butuan City, a settlement of more than 200,000 people. In areas
without sanitation facilities such as the marshland/wetland area, households
directly dispose human waste into the river system while also relying on this as a
direct source of domestic water supply during the dry months.
There is very limited DENR-EMB monitoring data on fecal coliform for the Davao
portion of the Basin and none for Caraga. However, the MSU study found that the
bacterial pour plate counts, total coliform bacteria, and fecal coliform levels were
high near major coastal settlements where human population is concentrated,
especially in Butuan City.
3) Potential Pollution from Agricultural Chemicals
The potential pollution from agriculture is associated with the use of agri-
chemicals in rice producing and palm oil areas. The practice is also suspect in
areas planted to banana and high-value vegetables in the uplands. It is, however,
difficult to assess the degree to which ecological health, especially of the Agusan
marshland/wetland and particularly fisheries habitats, have been compromised in
the absence of pertinent water quality monitoring data available on N and P as
well as pesticide and herbicide levels in these areas.
Indicative, however, is the MSU study of Butuan Bay that detected levels of
ammonia, nitrites, nitrates and phosphates in marine waters in 2000 and 2001 at
levels relatively high and at times way over national standards. The highest levels
tended to be at specific locations where smaller local catchments flow into the
Bay. Pesticide levels (specifically organochlorines and organophosphates) were
found to be low, but these are indicators of only a few of the wide range of agro-
chemicals available to farmers in the area. High levels of cadmium were
identified in the marine system, the source partly attributed to nitrate and
phosphate fertilizer.
Aquaculture may also be a potential source of pollution. Cadmium is considered

particularly problematic in its capacity to bio-accumulate like mercury.
2-11
In order to determine the status of mercury contamination an assessment was

conducted and discussed in Annex 2F.
(v) Erosion and Sedimentation
The assumption that sedimentation in the Basin is being caused primarily by upland
erosion due to the removal of primary forest cover in its upper catchment appears to be
unfounded. Field observations confirm that subsequent vegetation re-growth and
grassland succession have been strong and rapid enough to arrest erosion. In areas
where vegetation cover has been stripped for limited upland cultivation, the land has not
scarred or gullied.
Channel erosion and bed load (rocks and coarse gravels) deposition is a problem though
in the upstream catchment and has rendered parts of the Batutu irrigation facility in
Compostela Valley practically useless. In Monkayo and Nabunturan, the Upland
Development Project of the DA reports of severe erosion due to upland cultivation in
areas with steep slopes. Upland erosion is also a problem in mining areas particularly in
Diwalwal.
In midstream and downstream reaches, field observations confirm that the main
contributor of suspended sediment is riverbank erosion in specific locations, particularly
along river bends. The river picks up significant material upon leaving upland areas and
3
hits soft red/brown deposits in the floodplain, as earlier confirmed in a 1976 UNDP/FAO
study. The same study found out that going downstream, levels of total suspended solids
(TSS) increased from 140-180ppm in New Bataan to 233ppm in Compostela and 268ppm
in Monkayo.
Interestingly, the study also determined that sediment level at the point where Agusan
River leaves the Marsh in Talacagon was only 140ppm, about half the level of the inflow
water in Sta Josefa. However, within 30km downstream from Talacogon, the sediment
level almost doubled again to 270ppm, confirming the role of the Marsh as a natural
sediment catch basin. Interviews with marshland/wetland communities confirm that
Agusan River deposits as much as 30-50cm of sand, silt and organic materials with each
flood event. Moreover, field observations confirm that bank erosion is also actively going
on in inland tributaries downstream of the Marsh, for example, where Ojot and Wawa
Rivers meet the main Agusan River.
The MSU study earlier cited, meanwhile, found that Agusan River is by far the most
significant contributor of sediment deposition in Butuan Bay.
2.6.2 Biological Environment
(i) Forest-Watershed Resources/Terrestrial Habitats
(a) Development Trends
The ARB comprises an estimated 1,382,622ha of forest lands as of 2003, distributed over
Agusan del Sur (49%), Agusan del Norte (14%) and Davao del Norte (37%), the latter
considered representative of Compostela Valley. Correspondingly, its total A&D lands are
about 585,932ha and respectively distributed as follows: Agusan del Sur (38%), Agusan
del Norte (11%), and Davao del Norte (51%).
A land use dynamic is the trade off between A&D lands and forest lands, which in the
study areas is expected to follow the same trend as that observed for the Philippines as a
whole. The Philippines, from 1978 to 2003, has been experiencing a decline in forest land
at 6.38% alongside an increase in A&D lands of 8.22%. Forest lands covering
16,929,114ha in 1978 was down to 15,85,922ha in 2003. Correspondingly, A&D lands
expanded from 13,070,888ha to 14,145,078ha. Such trend could be assumed similar to
3
UNDP = United Nations Development Program; FAO = Food and Agriculture Office
2-12
the ARB based on the results of ocular field survey and the reported rapid cutting of
natural rain forest in the area as early as the 1960s. Remaining virgin forests in the whole
country may be estimated at less than 1 million ha at present; a state indicative of the
need to pursue protection and restoration strategies preservation and/or restoration of
productive and protective values of its forest lands including those within the ARB.
The ARB hosts several wood and forest-based industries generating income to the
national economy including forest management arrangements for the sustainable
development of forest resources. The reference shall be Caraga region, which represents
the majority of study areas.
Caraga happens to be fifth among all other regions as to total vegetative cover, the four
dominant of which are second growth forest (484,807ha), brush land (184,040 ha),
plantation forest (188,500ha) and old growth dipterocarp forests (78,619 ha). The region
th
hosts seven (7) watershed forest reserves (5 in all) although despite these forest assets,
Caraga has no declared national parks/national marine parks/national marine reserves, or
game refuge and bird sanctuaries.
Although possessing only the fifth largest forest lands, the region is the top producer of
major forest-based products (i.e., logs, lumber, veneer, plywood) in the entire country.
Total log production in Caraga from three (3) major sources (i.e., A&D lands, IFMA/TPLA
and TLAs), totaled 471,574.57 cu. m. as of December 2003. In 2001, the region then
generated about 480,777 cu. m. or 75% of log requirements in the country. Other than
this, the region particularly Butuan City hosts several wood processing plants that support
wood-based industries in the Philippines. The total annual log requirement of these
wood-processing plants was 964,124.71 cu. m. as of June 21, 2002. Wood-processing
plants are complemented by the presence of several TLAs in the area, the total number of
which has declined from six in 1994 to only two in 2003.
Substantial CBFM areas are also found within the ARB. In the Caraga Region alone in
2003, about 500,000ha are the sites of up to 517 CBFM areas benefiting about 51,514
households with 133 POs.
Further discussion on the bio-physical features of Agusan River Basin is in Annex 2G,
while the sub-basin is in Annex 2H.
(b) Environmental Conditions
There has been rapid removal of natural forest cover within the ARB during the logging
boom that may have started in the 1960s. By 1997, there remained a total of 867,321ha
of forest lands in the Caraga Region (ADN and ADS alone) broken down as follows:
unclassified forest lands (1,125ha) and classified forest lands (866,196ha). Classified
forest lands are further categorized into established forest reservations (212,389ha),
established timberland (647,601ha), and civil reservations (6,206ha). Total forestland in
this case constituted 75.05% of the total land area of Agusan del Norte and Agusan del
Sur.
When left alone, secondary re-growth (i.e., grasses, bushy/brushy and eventually,
secondary growth forest) tended to be rapid. On logged-over areas, 153,768ha have
been planted with fast-growing timber species, mostly falcata, gmelina and bagras. Such
trend was encouraged under the old reforestation paradigm of the DENR through its
various tenurial instruments (e.g., IFMA, TLA, ISF, SIFMA). These programs tended to be
counter-productive though in improving bio-diversity. Nonetheless, this situation may be
reversed with the paradigm shift to watershed rehabilitation using agro-forestry.
The degradation of forests in the ARB still continues though, as observed in several
agricultural and land use conversion practices. In some sloping lands, at present, cleared
forest areas have given way to unsustainable farming practices, including kaingin
(slash-and-burn) farming systems and conversion to plantations. In the Davao region,
some upland areas of Nabunturan, Compostela Valley have been devoted to large-scale
2-13
banana plantations operated by multi-national corporations. In the middle catchment

notably in Roasario, San Francisco, Trento and Veruela, more lands are being converted
to palm oil plantations.
In coastal areas within the Basin, much of saltwater mangrove forests have been
removed, partly to clear land for brackish water shrimp and saltwater fish aquaculture.
The removal of such vegetation has increased the risk of coastal erosion, considering that
mangrove vegetation is extremely effective at dissipating wave energy.
Cultivated areas, on the other hand, are concentrated in floodplains found in the middle
reaches of the Basin. The lowlands, notably Bayugan, Prosperidad, Rosario, Bunawan,
Esperanza and Sta. Josefa are primarily devoted to rice and, to a lesser degree, corn
production. The trend is towards expanding rice cultivation where possible and
intensifying this to two (2) crops a year with irrigation.
The discussion on Land use and land cover are further discussed in Annex 2I.
(ii) Freshwater Habitat
The Agusan Marsh Wildlife Sanctuary is the most ecologically sensitive area in the Basin
and requires utmost attention. It is included in the Philippine NIPAS and, owing to its
endemism and biological diversity, is among integrated priority conservation areas in
Mindanao, recognized under the Philippine Biodiversity Conservation Priority-setting
Program (PBCPP). To reiterate, the marsh is of international significance, having been
listed under the Ramsar Convention on Wetlands as the most important freshwater
habitat in the Philippines.
The designated protected area of the Marsh consists of 19,196ha, with 14,836ha defined
as the core by virtue of Presidential Proclamation 913 in 1996. There is a wider
management area of 111,540ha, presently considered as the buffer zone, which has
already been significantly encroached by human activity. A new bill filed in Congress
proposes to expand its marshland/wetland management areas to more than 40,000 ha.
During the dry months, the marshland/wetland is a series of isolated ponds or

interconnected lakes. However, during the rainy season, the perennially and seasonally
flooded water bodies merge into one lake system. The marshland/wetland area has
seven (7) major habitat types with three (3) very unique types of flood-tolerant vegetation
communities. It also contains a mossy forest with relic vegetation communities while a
large seasonal water body near Talacogon has unique grassland cover. A special feature
of the Marsh is its peat forest, which is beginning to draw worldwide conservation
interests.
A full species inventory of the Agusan Marsh was prepared in 2001 under the WB-funded
Comprehensive Priority Protected Areas Project (CPPAP). The inventory identified more
than a hundred species of terrestrial plants and freshwater flora that are adapted to its
flooding pattern. It also included hundreds of species of fauna including mammals,
herptiles, birds and fish species. Several of its species of freshwater crocodiles, flying
foxes, and soft-shelled freshwater turtles are on the International Union for the
Conservation of Nature (IUCN) Red List of threatened, endangered and critically
endangered species. Some of its reptiles, bats, frogs, geckos, skinks and snakes are
endemic, including the Reticulated Python and Philippine Cobra. The Marsh also hosts
rare species of butterflies, crocodiles, lizards, frogs and snakes.
On an international scale, the Agusan Marsh is recognized as a crucial link in the

migratory routing of birds between Siberia and Australia; the prime reason for which the
Marsh received recognition under the Ramsar Convention. With this function, several
migratory species including the purple heron and some ducks are already to habitate the
marshland/wetland.
2-14
The most productive fish habitats in the Marsh are its perennial water bodies. Fish
species disperse to breed and grow in seasonally flooded areas, retreating to perennial
water bodies as water levels fall. Its 2001 inventory includes both indigenous and
introduced fish species, two (2) species of which (i.e., mullet and tarpan) are migratory
and move seasonally between the marine system and the marshland/wetland area.
The management of Agusan Marsh and wildlife sanctuary is discussed in detailed in

Annex 2J.
(iii) Marine Habitats
Although the ARB covers only 10km of the coastline of Butuan Bay, complex interactions
and interface of habitats between these fluvial and marine systems need careful
consideration. These two (2) river systems therefore should not be studied in isolation of
each other.
To illustrate, the 2002 MSU study found that mangrove, coral reef, fish, seagrass and
seaweed, and soft bottom communities of Butuan Bay have been severely affected by
pollution from various natural and human sources. In particular, the potential of Hg
contamination from continuous sediment transport from Agusan River into the Bay is a
cause for concern.
2.7 CONCLUSIONS AND RECOMMENDATIONS
A primary concern in the water resources study is the coverage and quality of existing
hydrological and meteorological data. An upgrading of hydrological and meteorological data
collection networks may have to be implemented to develop a comprehensive knowledge base of
the ARB. A lead agency should be responsible for ensuring a quality data is collected and
reviewed. Such entity may also have to be equipped of facilities for proper data dissemination.
Specifically, the following recommendations may be considered: (a) installation of additional or
new monitoring stations for rainfall and stream flow, particularly new rainfall stations in high
elevations on the west side of the Basin; (b) establishment of new stream flow or water level
gauging sites on the Agusan River near Maragusan, between Kalaw Bridge and Sta Josefa,
within Agusan Marsh, and at the marsh outlet; (c) establishment of a sediment-monitoring
program; and (d) establishment of a system for groundwater data collection.
Available water in the Basin demonstrated in water balance studies are sufficient enough to meet
domestic demand, but the concern is on the present quality of waters that could be abstracted
from principal river sources considering the incidence of pollution, sedimentation and agricultural
run-off. Related to this is whether existing and potential groundwater sources are dependable
considering that in some areas, deep wells are generating water of high chemical content. The
continued assessment of the environment in the Basin should be conducted.
2-15
RAINFALL INTENSITY DURATION FREQUENCY (RIDF)
Agusan River Basin Master Plan Project ANNEX 2A
Final Report
ANNEX 2A: RAINFALL INTENSITY DURATION FREQUENCY (RIDF)
1.0 RAINFALL INTENSITY DURATION FREQUENCY (RIDF)
The first step in the derivation of the rainfall-intensity-duration frequency curves is frequency
analysis and selection of the fitted distribution. The synoptic rainfall stations operated by
PAGASA with applicable information for the above methodology are Cagayan de Oro,
Hinatuan, Malaybalay, Surigao City and Davao City.
1.1 Frequency Analysis
This involves the fitting of theoretical frequency distributions to the annual maximum rainfall
data. Four (4) types of theoretical distributions are used in this study, namely Extreme Value
Distribution (Gumbel), Log Pearson Type III Distribution, Log Normal Distribution, and 2-
Parameter Gamma Distribution.
(a) Extreme Value Distribution (Gumbel)
This distribution utilizes the Fisher-Tippet extreme value function which

relates magnitude linearly with the logarithm of the reciprocal of the
exceedance probability. Working equations are the following:
R Tr R K Tr S
K Tr
Y Tr Y n
Sn
Tr
Y Tr ( 0.83405 2.3025 log log )
Tr 1
Where,
R Tr Probable rainfall at return period Tr
R Mean of the annual maximum rainfall series
K Tr Frequency factor at return period Tr
S Standard deviation of annual maximum rainfall series
Y Tr reduced variate at return period Tr
Yn, S n reduced mean and reduced standard deviation
n = number years of record
Annex 2A-1 /6
Final Report
Table 2A-1 Reduced Mean and Standard Duration

n Yn Sn n Yn Sn n Yn Sn
0 0.4952 2 0.94963 21 0.52 519 1.06 938 31 0.53714 1 .11588
10 0.4952 2 0.94963 22 0.52 673 1.07 547 32 0.53803 1 .11927
11 0.4996 9 0.96753 23 0.52 819 1.08 115 33 0.53889 1 .12245
12 0.5034 8 0.98327 24 0.52 959 1.08 648 34 0.53959 1 .12557
13 0.5069 9 0.99712 25 0.53 084 1.09 143 35 0.54026 1 .12849
14 0.5100 0 1.00951 26 0.53 202 1.09 615 36 0.54107 1 .13127
15 0.5128 5 1.02055 27 0.53 326 1.10 048 37 0.54177 1 .13391
16 0.5154 2 1.03058 28 0.53 419 1.10 471 38 0.54243 1 .13649
17 0.5177 0 1.03972 29 0.53 533 1.10 860 39 0.54294 1 .13900
18 0.5197 8 1.04806 30 0.53 616 1.11 238 40 0.54363 1 .14130
19 0.5217 7 1.05575
20 0.5235 2 1.06282
(b) Log Pearson Type III Distribution
This distribution belongs to the family of distribution suggested by Pearson

with log transformation of rainfall data. The parameters used are the mean,
standard deviation and skewness coefficient. The working equations are the
following:
R Tr R K Tr S
2 G G
K Tr {[( K n ) 1]3 1}
G 6 6
Where
R Tr Log of probable rainfall at return period Tr
R Mean of the log of rainfall series
K Tr Frequency factor at return period Tr
S Standard deviation of the log of rainfall series
Kn Normal frequency factor (see table)

G = Skewness coefficient of the series
P = Probability
Annex 2A-2 /6
Final Report
Table 2A-2 Norman Frequency Factor

Kn P Tr Kn P Tr
-3 .7 1 9 0 2 0 .9 9 9 9 0 1 .0 0 0 0 .0 0 0 0 0 0 .5 0 0 0 0 2 .0 0 0
-3 .2 9 0 5 3 0 .9 9 9 5 0 1 .0 0 1 0 .1 7 7 3 3 0 .4 2 9 6 0 2 .3 2 8
-3 .0 9 0 2 3 0 .9 9 9 0 0 1 .0 0 1 0 .2 5 3 3 5 0 .4 0 0 0 0 2 .5 0 0
-2 .8 7 8 1 6 0 .9 9 8 0 0 1 .0 0 2 0 .5 2 4 4 0 0 .3 0 0 0 0 3 .3 3 3
-2 .5 7 5 8 3 0 .9 9 5 0 0 1 .0 0 5 0 .8 4 1 6 2 0 .2 0 0 0 0 5
-2 .3 2 6 3 5 0 .9 9 0 0 0 1 .0 1 0 1 .2 8 1 5 5 0 .1 0 0 0 0 10
-2 .0 5 3 7 5 0 .9 8 0 0 0 1 .0 2 0 1 .6 4 4 8 5 0 .0 5 0 0 0 20
-1 .9 5 9 9 6 0 .9 7 5 0 0 1 .0 2 6 1 .7 5 0 6 9 0 .0 4 0 0 0 25
-1 .7 5 0 6 9 0 .9 6 0 0 0 1 .0 4 2 1 .9 5 9 9 6 0 .0 2 5 0 0 40
-1 .6 4 4 8 5 0 .9 5 0 0 0 1 .0 5 3 2 .0 5 3 7 5 0 .0 2 0 0 0 50
-1 .2 8 1 5 5 0 .9 0 0 0 0 1 .1 1 1 2 .3 2 6 3 5 0 .0 1 0 0 0 100
-0 .8 4 1 6 2 0 .8 0 0 0 0 1 .2 5 0 2 .5 7 5 8 3 0 .0 0 5 0 0 200
-0 .5 2 4 4 0 0 .7 0 0 0 0 1 .4 2 9 2 .8 7 8 1 6 0 .0 0 2 0 0 500
-0 .2 5 3 3 5 0 .6 0 0 0 0 1 .6 6 7 3 .0 9 0 2 3 0 .0 0 1 0 0 1000
-0 .1 7 7 3 3 0 .5 7 0 4 0 1 .7 5 3 3 .2 9 0 5 3 0 .0 0 0 5 0 2000
0 .0 0 0 0 0 0 .5 0 0 0 0 2 .0 0 0 3 .7 1 9 0 2 0 .0 0 0 1 0 10000
(c) Log Normal Distribution
This method uses a 2-parameter function identical to the Log Pearson III
distribution except that the skew coefficient is neither computed nor used.
Values of frequency factor K which are related to the probability of
exceedance p and return period Tr are computed by the use of transformed
normal distribution function available in MS Excel.
(d) 2-Parameter Gamma Distribution
The method is identical to Gamma 3 except that the location parameter is set
to zero, hence only the shape and scale parameters are used in the
computation. Values of frequency factor K which are related to the probability
of exceedance p and return period Tr are computed by the use of the
Gamma Distribution function available in MS Excel. Input parameters to the
Gamma function in MS Excel are the alpha and beta variables which are
computed using the following working equations:
1 4 ( ln R 1 ln R )
D 1
3 n 'D
4 ( ln R 1 ln R )
n
E D 1n R
Where
R Annual maximum rainfall
R Mean of the rainfall series
n = number of years of records
Annex 2A-3 /6
Final Report
1.2 Selection of the Fitted Distribution Curve
From the above results on probable maximum rainfall of short duration, RIDF curves are
produced by converting the probable rainfall magnitudes into rainfall intensities and fitting
them to an exponential equation. Two types of exponential equation are tried to fit the rainfall
intensity duration. These RIDF equations are expressed as follows:
Type 1: R = A / (C + Tb)
Type 2: R = A / (C + T)b
where: R = Rainfall intensity (mm/hr);
T = Duration (min); and
A, b, C = Constants obtained from curve fitting.
RIDF equations, both for short (10 min to 1-hr) and long (1-hr to 1-day) duration, derived for
all return periods, the 2-yr, 5-yr, 10-yr, 25-yr, 50-yr and 100-yr for the five (5) synoptic stations
are shown in Figures 2A-1 to 2A-5. Selection of the fitted equations is based on both the
residual of the least square coefficients and visual fitting.
Figure 4.1
Rainfall Intensity Duration Frequency (Cagayan de Oro City)
Figure 2A-1
Rainfall Intensity Duration Frequency (Cagayan de Oro City)
Annex 2A-4 /6
Final Report
Figure 2A-2
Rainfall Intensity Duration Frequency (Davao City)
Figure 2A-3
Rainfall Intensity Duration Frequency (Hinatuan)
Annex 2A-5 /6
Final Report
Figure 2A-4
Rainfall Intensity Duration Frequency (Malaybalay)
Figure 2A-5
Rainfall Intensity Duration Frequency (Surigao City)
Annex 2A-6 /6
STREAMFLOW AVAILABILITY
Agusan River Basin Master Plan Project ANNEX 2B
Final Report
ANNEX 2B: STREAMFLOW AVAILABILITY
1.0 STREAMFLOW AVAILABILITY
A low flow analysis has been conducted to establish available discharges on tributaries during dry
or drought conditions to ensure adequate water supply during these periods. Since only few of
these tributaries have any discharge records, it was envisioned that the results for gauged
streams would be transferred to the ungauged ones.
1.1 Streamflow Duration Curves
In order to produce the desired curves, the daily streamflow information from ten (10) stations are
analyzed. Table 2B-1 listed the stations to be used for the analysis.
Table 2B-1
Selected Streamflow Gauging Stations
Latitude Longitude
River Area, km Q, m/s
deg min sec deg min sec
1 Agusan River, Kalaw Bridge, Monkayo 7 50 0 126 3 0 126.050 1,355.00 67.30
2 Agusan River, Camanlangan, New Bataan 7 30 33 126 6 18 126.105 343.00 17.10
3 Agusan River, Sta. Josefa, Bunawan 8 0 38 125 58 10 125.969 1,599.00 97.80
4 Agusan River, San Isidro, Talocogon 8 32 4 125 46 31 125.775 7,390.00 698.00
5 Wawa River, Wawa, Esperanza 8 47 4 125 41 23 125.690 396.00 17.48
6 Kawayan River, Langasian, La Paz 8 14 56 125 42 59 125.716 348.00 37.50
7 Adgaoan River, Malapitan, La Paz 8 14 56 125 45 8 125.752 820.00 69.80
8 Gibong River, Bahbah, Prosperidad 8 36 40 125 54 46 125.913 427.00 19.40
9 Andanan River, Bayugan 8 44 0 125 43 0 125.717 201.00 6.70
10 Busilao River, Milagros, Ezperanza 8 38 49 125 34 15 125.571 316.00 12.90
Again, the index stations identified in the runoff analysis plus the sub basin rainfall are used to
develop flow duration curves for each of the sub-basins.. For each of the index sites, daily
streamflow data are arranged from highest to lowest and plotted to form the flow duration curves.
Figure 2B-1 shows the derived flow duration for each of the stations.
The shape of the flow duration curves shows a rapid decrease from 0% of the time followed by a
long gently downward sloping portion which means there is not a large variation in the
dependable low flows in a system. The rapid drop in the curve reflects how uniform the rainfall in
the basin, wherein theres only a few extremely high rainfall events. For gauged rivers where the
discharge record was long enough, a statistical low flow analysis was performed to estimate the 5
and 10 year return period low flows. The resulting discharges are slightly larger than those
determined from the duration curves, corresponding approximately 90% and 80% dependable
flows. Therefore, it is felt that the use of the curves for this study is applicable as
conservative decisions would be made.
Annex 2B 1/2
Agusan River Basin Master Plan Project ANNEX 2B
Final Report
10000
1000
100
10
Streamfkow, m/s
1
0.1
0 10 20 30 40 50 60 70 80 90 100
Time in Percent of exceedance
Figure 2B-1
Flow Duration Curve
Annex 2B 1/2
WATER BALANCE ANALYSIS
Agusan River Basin Master Plan Project ANNEX 2C
Final Report
ANNEX 2C: WATER BALANCE ANALYSIS
1.0 WATER BALANCE ANALYSIS
1.1 Input Data
The following data are used in the analysis;

(a) Basin terrain model based on the SRTM (Shuttle Radar Topographic Mission) DEM
(Digital Elevation Model) with grid size of 3 arc seconds, approximately 92 m by 92 m in
metric scale.
(b) River system in the Basin.
(c) Sub basin flow duration curves, sub-basin monthly rainfall data and monthly evaporation
data
(d) 2000 Population Data, Barangay Level
(e) Barangay Map
(f) Land Use Map
(g) Land Cover Map
(h) Existing and proposed water resources development
1.2 Methodology
The assessment of the availability and dependability of water resource for development is
anchored on the extent of available information of the Basin under scrutiny. As discussed earlier,
the information available is not enough to directly use the information at hand to forecast water
balance analysis for planning purposes. Nevertheless, water balance analysis is required thus the
methodology applied herein will require mathematical modeling of the basin focused on the low
flow or dependable flow analysis.
The steps required in this endeavor are the following;

(a) Derivation of monthly sub-basin rainfall.
The available rainfall information is transformed into grid format (similar to isohyetal map)
using Arcview GIS software. By overlaying the sub-basin boundaries on the gridded data,
monthly rainfall data for each sub-basin will be computed through the use of the HEC-
GeoHMS ArcView Extension Software.
(b) Rainfall- Runoff Analysis

On the annual basis, relationship between rainfall, evaporation/evapotranspiration and
streamflow data by spatial correlation facilitated by HEC-GeoHMS ArcView Extension
Software is derived. End output of this step is the estimated annual flows for each of the sub-
basins.
(c) Flow Duration Curves for each of the Sub-basin
The output of step (c) can be converted into flow duration curves. This is undertaken using
the converted duration curve of the daily flows of the index streamflow stations earlier
discussed into dimensionless format and superimposing the derived annual flows based on
rainfall-runoff model for each of the sub-basins.
(d) Dependable Flow for each of the Sub-basin.

As defined in the Water Code and being practiced by local water resource planner, the
dependable flows are those amount available 80% of time of exceedance. Through the use of
the flow duration curves, dependable flows for each of the sub-basins are computed. This
step conclude the estimation of the water availability analysis
Annex 2C-1/7
Final Report
(e) Water Demand

On the other side of the water balance analysis is the estimation of the water demand for
relevant water resource development such as water supply and irrigation. It is consisted of
domestic and municipal water demand, industrial water demand and agricultural water
demand. Likewise, riprarian releases for environmental protection which is about one percent
(1%) of the dependable is included in the computation of the water demand.
(f) Water Balance

By equating the water availability with water demand with respect to the targeted planning
horizon, deficits on water availability can be estimated.
1.2.1 Sub-basin Rainfall
The monthly isohyetal maps developed from monthly rainfall data of various stations are
transposed into grid format. By clipping the gridded data using sub-basins boundaries earlier
presented, clipped rainfall grid data is converted into average values. This is done for the twelve
maps representing for the 12 months for each of the sub-basins. The result of the analysis is
shown in Table 2C-1.
Table 2C-1
Estimated Sub-basin Monthly Rainfall
Rainfall, mm
Basin Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual
1 Adgaoan 314 236 204 166 214 252 255 238 242 268 222 222 2,834
2 Bugabos 266 192 145 108 122 173 169 138 169 214 185 185 2,066
3 Gibong 514 383 312 226 185 201 201 153 179 245 300 300 3,199
4 Haoan 335 260 228 196 228 250 254 234 237 252 232 232 2,939
5 Kasilan 347 253 213 167 198 233 234 211 225 256 226 226 2,789
6 Kayonan-Umayam 276 214 190 165 227 267 270 261 258 278 215 215 2,835
7 Libang 280 192 156 126 169 214 215 191 214 245 196 196 2,394
8 Logom-Baobo 423 313 267 218 223 233 246 213 215 233 252 252 3,089
9 Maasam 252 178 150 128 186 237 238 221 236 260 195 195 2,478
10 Manat 587 393 330 251 187 198 195 154 163 194 307 308 3,268
11 Minor 412 304 247 185 174 201 202 165 188 233 253 253 2,817
12 Ojot 232 153 121 98 139 195 191 164 199 228 168 168 2,057
13 Simulao 588 418 349 266 218 225 228 182 191 221 318 317 3,520
14 Sulibao 562 414 345 253 220 214 235 183 200 248 309 309 3,491
15 Taguibo 499 400 314 220 140 163 165 115 150 203 326 326 3,021
16 Wawa-Andanan 481 375 297 211 152 178 174 129 156 218 305 305 2,982
Consistency test of the sum of the twelve months with the annual rainfall data is also undertaken
with positive result.
1.2.2 Sub-basin Streamflow Duration Curves
A low flow (duration curve) analysis has been conducted to establish available discharges on
tributaries during dry or drought conditions to ensure adequate water supply during these periods.
As only a few of these tributaries have any discharge records, it was initially envisioned that the
results for gauged streams would be transferred to the ungauged ones. In order to produce the
desired curves, estimated rainfall has been used instead.
The link between rainfall and runoff values is established by correlation. Table 2C-2 shows the
comparison.
Annex 2C-2/7
Final Report
Table 2C-2
Rainfall-Runoff Comparison
Latitude Longitude Area, km Q, m/s Yield Rainfall Ratio
River
deg min sec deg min sec mm mm
1AgusanRiver, KalawBridge, Monkayo 7 50 0 7.833 126 3 0 126.050 1,355.00 67.30 1,566 3,268 0.4793
2AgusanRiver, Camanlangan, NewBataan 7 30 33 7.509 126 6 18 126.105 343.00 17.10 1,572 3,268 0.4811
3AgusanRiver, Sta. Josefa, Bunawan 8 0 38 8.011 125 58 10 125.969 1,599.00 97.80 1,929 3,268 0.5903
4AgusanRiver, SanIsidro, Talocogon 8 32 4 8.534 125 46 31 125.775 7,390.00 698.00 2,979 3,107 0.9586
5WawaRiver, Wawa, Esperanza 8 47 4 8.784 125 41 23 125.690 396.00 17.48 1,392 2,982 0.4669
6KawayanRiver, Langasian, LaPaz 8 14 56 8.249 125 42 59 125.716 348.00 37.50 3,398 2,834 1.1989
7AdgaoanRiver, Malapitan, LaPaz 8 14 56 8.249 125 45 8 125.752 820.00 69.80 2,684 2,834 0.9471
8GibongRiver, Bahbah, Prosperidad 8 36 40 8.611 125 54 46 125.913 427.00 19.40 1,433 3,199 0.4478
9AndananRiver, Bayugan 8 44 0 8.733 125 43 0 125.717 201.00 6.70 1,051 2,982 0.3526
10BusilaoRiver, Milagros, Ezperanza 8 38 49 8.647 125 34 15 125.571 316.00 12.90 1,287 2,057 0.6260
It must be noted that the curves that have been produced are based on daily rainfall. In creating
the duration curves, days where the effective rainfall (rainfall minus evaporation) is zero were
removed from the records. The calculated discharges correspond only to rainfall events and loss
to storage and base flows were not accounted for. As a result, the peak discharges again will
most likely have been over estimated and the minimum flows under estimated.
The shape of the flow duration curves, a rapid decrease from 0% of the time followed by a long
gently downward sloping portion, means there is not a large variation in the dependable low flows
in a system. The rapid drop in the curve reflects how uniform the rainfall in the basin is with being
a few extremely high rainfall events. For gauged rivers where the discharge record was long
enough, a statistical low flow analysis was performed to estimate the 5 and 10 year return period
low flows. The resulting discharges are slightly larger than those determined from the duration
curves, corresponding approximately to the 90% and 80% dependable flows. Therefore, it is felt
that the use of the curves for this study is applicable as conservative decisions would be made.
The index stations identified in the runoff analysis plus Simulao, Agusan del Sur is converted into
dimensionless format and used for the target sub-basins. Attachment 3 contains the flow duration
curves for the each of the sub-basins.
1.2.3 Water Demand
Basically the water users can be classified as those that consumed water and those that can be
reuse. Domestic, municipal, industrial, and agricultural water demands are normally consumed
whereas those for hydro power can be re-used.
Target level is set for each water usage as shown below:
1) Domestic and Municipal Water Demand
The unit water consumption Water demand per head that is commensurate with the income level
is set. Not only the average income level but also its classification should be considered.
Multiplying this value with the estimated future population gives the domestic and municipal water
demand
Based on the Key Informant Interview of the different water districts, the unit water consumption
per capita ranges from 97 to 136 liters per capita per day (lpcd). They are as follows: Butuan WD
121 lpcd, Bayugan WD 98 lpcd, Prosperidad WD 136 lpcd, Bunawan WD 136 lpcd,
Nabunturan WD 97 lpcd. They are all within the set standard established under the NEDA
Board Resolution.
Other Level III system has exhibited similar characterization on the unit water consumption.
Crossing Gabi Rural waterworks System & Multipurpose Cooperative (Compostela) has water
consumption of 93 lpcd, Compostela Waterworks System (Compostela) has 112 lpcd unit
Annex 2C-3/7
Final Report
consumption,Maragusan Waterworks & sanitation Multipurpose Cooperative (Maragusan) has 92

lpcd consumption, Monkayo Waterworks System (Monkayo) has 149 lpcd water consumption,
Montevista water System & Multipurpose service Coop. (Montevista) has 123 lpcd, New Visayas
Rural Water & Sanitation association has 82 lcpd and Cabinuangan Rural waterworks &
Sanitation Association (New Bataan), Inc. Has 98 lpcd.
With the above information, the unit water consumption for the planning horizon is projected and
exhibited in Table 2C-3:
Table 2C-3
Unit Water Consumption for Level I, II, III and Water Districts
Level I, Level II, & Level III (Unit : lpcd)

Year Region Level I Level II Level III
Region XI 21 62 103
2005
Region XIII 21 63 106
Region XI 21 64 106
2010
Region XI 22 66 110
2020
Water Districts (Unit : lpcd)

Year City/Municipality Low Medium High
Butuan City 118 120 122
San Francisco 127 129 132
Bunawan 103 105 107
2005
Prosperidad 133 136 138
Bayugan 100 102 104
Nabunturan 100 102 104
Bunawan 109 115 119
2010
Bayugan 103 105 108
Bunawan 121 115 119
2020
Bayugan 115 105 108
2) Industrial Water Demand
The industrial water demand may be estimated from the water permits granted by NWRB. There
are only 13 water permits within the river basin classified under industrial use. The water permit is
limited in number and as the same time it is impossible to estimate the total volume of water
consumption from the water rights granted for industrial use.
In this case, the estimated industrial water demand is assumed to be certain percentage of the
domestic and municipal water demand. The industrial water demand is taken at 5, 8 and 10% of
domestic and municipal water demand for 2005, 2010 and 2020, respectively. Table 2C-4
presents the domestic, municipal and industrial water consumption for 2005, 2010 and 2020.
Annex 2C-4/7
Final Report
Table 2C-4
Domestic, Municipal and Industrial Water Demand (2005 2020)
Water Demand (x1000 m3)

Municipality 2005 2010 2020
Bayugan 980 1557 3139
Buenavista 563 921 1825
Bunawan 448 708 1310
Butuan City 4506 7338 11090
Cabadbaran 619 817 1214
Compostela 541 1077 2505
Esperanza 507 918 1963
La Paz 206 281 805
Laak 578 1027 2509
Las Nieves 298 445 1060
Loreto 341 661 1383
Mabini 299 413 903
Maco 634 802 1812
Magallanes 422 491 665
Maragusan 434 515 1289
Mawab 299 413 903
Monkayo 745 1405 3132
Montevista 330 542 1192
Nasipit 563 921 1825
New Bataan 452 652 1346
Pantukan 610 1084 2385
RT Romualdez 191 287 534
Rosario 663 871 1714
San Luis 278 538 1149
Sibagat 483 744 1358
Sta. Josefa 292 614 1393
Talacogon 445 713 1361
Trento 456 910 2066
Veruela 412 804 2146
3) Agricultural Water Demand
The main component for the agricultural water demand largely depends on the irrigation water
demand for a particular crop. The values are based on detailed analysis of parameters involving
soil type, crop factor, evaporation, evapo-transpiration, rainfall, seepage, and irrigation efficiency.
Existing as well as potential areas for irrigation are pre-determined. Using a water duty equal to
1.5-2.0 lps/ha as recommended by NIA, the irrigation water demand will be the product of the
water duty and the hectarage of the irrigation service area.
For the master planning exercise, the water duty of 1.5 lps/ha is adopted. This is applied to the
existing national and communal irrigation system for the planning horizon. Likewise, this also
applied for the proposed irrigation project under the Master Plan.
Annex 2C-5/7
Final Report
4) Environmental Protection
Under Article 66 of the Water Code and furtherance to Section 44 of the Implementing Rules and
Regulations of the Water Code, a minimum stream flow is required for the protection of the
environment, control of pollution, prevention of salt damage and general public use. This has
been known as the Riparian Flow. It has been generally accepted that the minimum stream flow
shall be 10% of the 80% of the flow duration curve. This flow should also be satisfied with the
water balance analysis for each of the basin.
Adopting the provisions of the Water Code, the domestic and municipal water demand are all
allocated and provided through the planning horizon of the water balance study. This only means
that even without the proposed water supply infrastructure, water will be made available to
domestic and municipal water supply. Furthermore, the environmental protection will be always at
all time present in the water balance.
In case of irrigation, the existing and those proposed irrigation projects will be inputted in the
water balance analysis. Thus, a role up water balance study has to be undertaken for upcoming
proposed irrigation projects to determine if there is available water from the basin.
1.3 Results
The water balance simulation result is as shown in Table 2C-5 below for the different sub-basin in
the Agusan River Basin,
It clearly shows that irrigation requires a lot of water allocation for agricultural production, though
most of the basin can still support the irrigation needs. However, Taguibo, Adgaoan and Sulibao
are the most stressed basins. At present, the Taguibo SB has two users (Butuan City Water
District and National Irrigation Administration) some water management plan is required. With the
domestic water supply as top priority, farmers should be informed ahead of the available irrigation
water.
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Final Report
Table 2C-5
Water Balance Analysis
Annex 2C-7/7
FLOOD SIMULATION
Agusan River Basin Master Plan Project ANNEX 2D
Final Report
ANNEX 2D: FLOOD SIMULATION
FLOOD SIMULATION
The migration of flood events along the Agusan River and its tributary is complex due to the lack
of elevation change, channel meandering, the existence of marshy areas and other topographic
features. Added to this, is the variability resulting from the distribution and intensity of rainfall
within the sub-basins and the entire basin. In order to develop a better understanding of the
processes involved, a numerical modeling exercise was undertaken in which basin runoff and
routing of the resulting discharge through the river network has been simulated. This results in
the creation of a tool that can be used to estimate conditions in the river network for a number of
scenarios, to observe the magnitude of discharges at areas of interest, and to examine the effects
of floods or impacts of control works.
Runoff modeling is used to estimate the flood magnitude and duration due to a rainfall event in a
sub-basin. Selected precipitation conditions are used in the form of a hyetograph to a numerical
model that predicts the runoff response as an output hydrograph. To transform the input
hyetograph to an output hydrograph, the model uses parameters that to some degree mimic the
physical processes of the drainage basin and channel network with respect to storage and
transmission of water. The numerical modeling programs used to convert precipitation into runoff
vary greatly in complexity, ranging from so-called black boxes to detailed representations of the
basin processes. Although estimates of parameter values can be derived from maps and
published articles, reasonable results require sufficient calibration information. For this study, the
US Army Corps of Engineers (USACE) HEC-HMS and HEC Geo HMS software has been
selected for the run-off modeling. HEC Geo HMS is an extension software for ArcView (GIS
software) program.
Once a flood hydrograph has been developed for a sub-basin, the flow has to be routed along the
tributary, combined with the flow in the main stem and then routed downstream through the
remaining portions of the system. As this combined flow travels downstream, other tributaries
may contribute additional flow, resulting in greater discharges and potential flooding of areas
adjacent to the river. Although the adopted software has a number of methods that can be used
to route the generated flows, none of them can simulate channel flow well if downstream
conditions have a significant impact on upstream flows or where the flow exceeds the channel
carrying capacity. Because of the complexity of the river network within the basin, a complete
hydraulic model is required to adequately model the routing of flows. The USACE HEC-RAS and
HEC Geo RAS are selected to model the routing of the flows throughout the basin. HEC Geo
RAS is another ArcView extension program. The latest versions of this program have the
capability to model dynamic conditions.
The hydrologic model of the Agusan River Basin created for this study consists of the sub-basins.
Attributes of each of the sub-basins are referred to Table 2D-1, while the boundaries are shown in
Figure 2D-1.
Table 2D-1
Sub Basins of Agusan River Basin System
River Index Catchment Percent of the Basin
Sub-Basins
Number Area Area
1 Bugabos 170.55 1.43
2 Ojot 924.20 7.74
3 Libang 246.56 2.07
4 Maasam 418.20 3.50
5 Kasilan 376.89 3.16
6 Adgaon 984.81 8.25
7 Kayonan 729.47 6.11
8 Haoan 746.34 6.25
9 Logom-Baobo 291.20 2.44
10 Manat 1,758.20 14.73
11 Simulao 978.38 8.20
12 Lagcogangan 159.75 1.34
13 Gibong 926.38 7.76
14 W awa-Andanon 764.14 6.40
15 Taguibo 75.72 0.63
Total 9,550.78 80.01
Basin Area 11,936.55
Annex 2D-1/ 7
Final Report
Figure 2D-1
Boundaries of the Sub-Basins of Agusan River
For each of the sub-basins, the hyetographs for various return periods within the boundary was
calculated using the RIDF v1.0 program developed by Woodfields Consultants Inc. for DPWH-
FCSEC for the assessment of flood design for ungaged river basin Depth reductions were
included to account for the transfer of point rainfall values to an area depth. As a number of
different return period scenarios were to be examined or modeled, hyetographs were created for
storm events with frequencies of 2, 5, 10, 20, and 30 years. For the preparation of flood hazard
map, the storm event applied is based on 10,000 years (almost equal to the Probable Maximum
Precipitation (PMP).
The Clark Unit Hydrograph method has been used to transform the rainfall information into runoff
values and the discharge hydrograph. To perform this calculation, four variables or parameters
Annex 2D-2/ 7
Final Report
must be specified: the loss rate, baseflow, and the transform parameters (time of concentration
and storage coefficient).
The loss rate, which represents the amount of rainfall that does not become runoff, has been
calculated using the Initial/Constant method with the values estimated from the meteorological
information available from a number of stations in the basin. A constant baseflow has been
assumed and has been estimated from the available discharge records. Time of concentration
has been estimated based on the tributary slope and length, and adjusted using engineering
judgment. The storage coefficient is an index of the temporary storage of precipitation excess in
the sub-basin as it drains to the outlet point. It has been estimated based on simulations of actual
events in some of the tributary systems.
For simplicity, and because there is not enough information to suggest otherwise, the modeled
storm events are assume to commence at the same time. No attempt has been made to simulate
the movement of a storm front across the basin.
The simulated runoff generated in a sub-basin, in the form of a hydrograph, is assumed to occur
at the center of the sub-basin. This wave of discharge must be routed through the
tributary/tributaries or over land to the Agusan River. Once reaching the Agusan River, the
inflows are added to the discharge in the main river, which is routed further down the system.
The USACE HEC-RAS program has been used to perform the routing of flows through the river
system in the basin. At the upstream end of the tributaries, a boundary condition or inflow
hydrograph is required which the HEC-HMS program produces. Flow from the three remaining
sub-basins has been modeled as lateral inflow or flow that enters the Agusan River over a length
of its course. The boundary at the downstream end of the Agusan River is the ocean. Tidal
conditions were not simulated but instead, a constant mean tide level was used.
In the model, rivers are represented by a series of cross sections. As there is no cross section
information available, channel geometry was estimated based on field observations while over
bank data was extracted from 1:50,000 scale mapping (10 m contours). The location of the cross
sections is determined by changes in topography, the location of tributaries, and areas of interest.
Variables or parameters that can be adjusted to modify the flow conditions in the system consist
of roughness coefficients, expansion and contraction coefficients, areas of ineffective flow, and
over bank distance between cross sections. Some adjustments were made based on discharge
records from the Agusan River in which the migration of flood waves down the system could be
observed.
A number of flood scenarios have been run using the same network. The entire basin has been
divided into three regions; upper, central and lower regions. In the scenarios, a probable rainfall
event was assigned to each of the regions. For example, one scenario has a 30-year rainfall in
the central portion, while a 10-year rainfall is used in the upper and lower portions. For the
scenarios, flood hydrographs have been extracted at the following locations: Compostela, Kalaw
Bridge, Upstream end of the Agusan Marsh, Agusan Marsh outlet, Esperanza, and Butuan.
It was determined that the most significant, and probably realistic, scenarios to examine in detail
would be the situation where 10 and 30 year events occur in the different regions of the
watershed. The discharge hydrographs for 3 scenarios are presented in Figures 2D-2 to 2D-4.
These represent the following conditions:
x Figure 2D-2: 30 yr rainfall in upper region, 10 yr in central and lower regions
x Figure 2D-3: 30 yr rainfall in central region, 10 yr in upper and lower regions
x Figure 2D-4: 30 yr rainfall in lower region, 10 yr in upper and central regions
Two additional scenarios have been run and reviewed to provide additional insight into the
conditions in the Agusan Marsh and what occurs during multiple rainfall events. In Figure 2D-5,
the total discharge entering the Agusan Marsh and the discharge exiting it are shown for a 30-
year rainfall event in both upper and central regions. In 2D-6 the discharges at the 6 locations
identified above are shown for the situation where a 10-year rainfall event, covering the entire,
occurs and then is followed by another 10-year event in the central and upper regions.
Annex 2D-3/ 7
Final Report
Figure 2D-2
30 yr Rainfall in Upper Region, 10 yr in Middle and Lower regions
Figure 2D-3
30 yr Rainfall in Middle Region, 10 yr in Upper and Lower Regions
Annex 2D-4/ 7
Final Report
Figure 2D-4
30 yr rainfall in Lower Region, 10 yr in Upper and Middle regions
Figure 2D-5
30 yr Rainfall in all Regions
Annex 2D-5/ 7
Final Report
Figure 2D-6
10 yr Rainfall in All Regions
Conclusions that can be derived from these hydrographs are:

Figure 2D-2 to 2D-4 Hydrographs
The Kalaw Bridge impedes the flow exiting Compostela Valley.
Peak discharges occur downstream of the Agusan Marsh prior to the peak outflow from the
marsh. Flooding downstream of the marsh is most likely due to rainfall in the lower region
(downstream of the marsh).
Once the peak outflow from the Agusan Marsh has been reached, discharges downstream mirror
that exiting the marsh.
The gentle decrease in outflow from the Agusan Marsh indicates that all tributaries entering the
marsh would experience backwater conditions for extended periods.
There is a very short lag between the marsh and Butuan. There would be little warning time
between the observation of flood flows at the marsh outlet and these flow arriving at Butuan
Figure 2D-5 Hydrographs
The travel time through the tributaries and upper Agusan River reduces the peak discharge in the
runoff hydrograph by 35%.
The Agusan Marsh reduces the magnitude of the peak discharge approximately to an 30%.
Without the marsh, discharges downstream would be significantly larger, probably leading to
more frequency and severe flooding downstream
Annex 2D-6/ 7
Final Report
Figure 2D-6 Hydrographs

Multiple storms in the central and upper regions will result in higher outflow from the Agusan
Marsh, opposed to a single event. But peak discharges in the lower region will still not be as
large as that created by a single event in the lower region.
An interesting feature of the Marsh outlet hydrograph in all of the figures is a negative discharge
in the upstream. Initially it was thought that this was a result of some error in the base network
pertaining to river geometry, variables used, or tributary locations. However, during discussion
with a member of CARBDP-PMO it was learned that this condition was observed during an over
flight of the area during a flood event. The event can be attributed to the gentle slope on the river
downstream of the outlet. During a flood event, the high discharges in the tributaries below the
outlet will cause the water elevation to rise at the confluence with the Agusan River. As this
occurs prior to the migration of floodwaters from the upstream portions of the basin through the
marsh, the water surface will be higher than that in the marsh, resulting in flow both down and up
stream.
The major finding of the flood routing analysis is the degree to which topographic features control
the movement of floodwaters in the system. The Agusan River can be visualized as a series of
shallow bowls interconnected by steeper sections of channel. The boundaries of these bowls are
defined by constrictions or the encroachment on the channel by the foothills. In addition, water
level conditions in the Agusan Marsh, which forms the largest bowl, dictate whether there is any
potential for additional flooding in the downstream reaches. The higher the water levels in the
marsh, the less ability it has to absorb additional inflows. The most significant findings indicated
by the numerical modeling is that most flood events downstream of the Agusan Marsh are due to
flow conditions on the tributaries downstream of the marsh. However, the magnitude and
duration of such flooding will still be influenced by the water level and flows into the marsh.
The routing model has also been run to observe whether the potential impacts that an envisioned
flood control structure on a tributary would have on the discharge observed on the Agusan River
downstream of the tributaries confluence. As it was identified that elevated discharges observed
at Butuan are primarily due to runoff from the region downstream of Talacogon, a potential site for
structural measures in Ojot River was examined. The best scenario for flood control purposes
would be an impounding reservoir that will retain 100% of the runoff created from rainfall event.
Therefore, the model was run with a 30-year storm covering the entire watershed, but no runoff
from Ojot River was allowed to enter the Agusan River.
The modeled effect of retaining all of the potential runoff was that the peak discharges observed
at Butuan decreased in the order of 15% only. Such a low decrease can be attributed to relatively
small proportion of the watershed area that this sub-basin occupies, especially since the location
of a retention structure would have to be built in the foothills, and because of the magnitude of the
runoff from the other tributaries located downstream of the marsh.
Because the retention of 100% of the potential runoff during the modeled event resulted in a low
reduction in discharges downstream in the system, there was no need to look at the potential
impact of reducing the retention percentage.
Annex 2D-7/ 7
VULNERABILITY OF ARB TO HAZARDS
Agusan River Basin Master Plan Project ANNEX 2E
Final Report
ANNEX 2E: VULNERABILITY OF ARB TO HAZARDS
1.0 VULNERABILITY OF ARB TO HAZARDS
1.1 GENERAL
The Mindanao Island, just like other areas in the Southeast Asia, is found to be naturally
vulnerable to environmental disasters. The situation plus other human and developmental
factors compound communities' incapacity to cope with such disasters.
The vulnerability of communities located within the Basin to hazards refers to their
susceptibility to and capacity to cope with environmental stresses. Recent and major events
as well as their cumulative impacts highlight the importance of identifying the vulnerability
levels of certain areas and segments of the population to collective hazards that form
disasters.
There are complex factors at play, which are climate/weather-related, geophysical, ecological
and anthropogenic. Identifying vulnerability and risk according to the above categories will
assist in completing scenarios, whether historical and/ or projected, and will enable
communities to cope with and adapt to environmental disasters.
The Project Report completed in April 2005 with the title Mapping Philippine Vulnerability
to Environmental Disasters undertaken by the Center for Environmental Geomatics and
the Manila Observatory identified the areas in the country that are at high vulnerability and
risk to environmental disasters. Hazards and disasters are mapped and analyzed via
geographic information systems (GIS), environmental modeling tools and resulting spatial
databases.
One of the output of the Project Study is an Atlas or collection of associated maps which will
be used to inform and develop policy recommendations. These maps and analytical results
are for dissemination to the public and concerned agencies who are responsible for disaster
management and environmental stewardship in the country.
The maps, when properly disseminated, also form decision tools towards better disaster
management and adaptation in the country. It is recommended that composite vulnerability
and risk indices using the GIS approach be further developed, that is, by and across
categories of factors. This is aimed at improving national and local assessment. Results may
then guide and strengthen capacity building in disaster preparedness and management.
1.2 METHODOLOGY
Recent and major events, as well as their cumulative impacts, highlight the importance of
identifying the vulnerability levels of certain areas and segments of the population to collective
hazards forming disasters. Vulnerability is defined as the susceptibility to stresses or hazards,
and the capacity (or lack thereof) to prepare, cope and recover from such hazards. Human
vulnerability, in particular, is a condition resulting from physical, social, economic and
environmental factors, which determine the likelihood and scale of damage from the impact of
a given hazard. Human vulnerability includes the vulnerability of social and economic
systems, health status, physical infrastructure and environmental assets.
Vulnerability is the concept that explains why a community is more or less at risk to a given
hazard. However, neither vulnerability alone nor hazard alone determines the occurrence of a
disaster. A hazard, by itself, is simply a potentially damaging event or physical disturbance. It
is in the coming together of hazard and vulnerability that disaster occurs. In recognition of
these different factors at play, the analytical framework for assessing risks to disasters, which
is adapted from the UNDP model and previously cited, is as follows:
Risk = Hazard x Exposure x Vulnerability
Risk as it is used here refers to the likelihood of disaster, loss or harm. It is a function of
hazard frequency or severity, the exposed element or element at risk, and the vulnerability of
Annex 2E-1/14
Final Report
that element. In the case that several hazards are under consideration, a composite measure
of risk can be attained by summing the risks to specific hazards as follows:
Rtotal = R1 + R2 + R3 + ... + Rn
This framework provides us with a simple method for determining risk based on existing
hazards, exposure levels and conditions of vulnerabilities. Risk assessment is both important
and urgent in that development scenarios and choices influence the distribution and
magnitude of disaster risk. Thus, adaptation as well as disaster prevention and mitigation
must be integrated into development strategies and plans by decreasing vulnerability levels,
or avoiding the impacts of hazards when possible.
1.3 HAZARDS
Hazards may be categorized into natural and anthropogenic hazards. Climate and weather-
related hazards, such as typhoons and droughts, as well as geophysical hazards, like
earthquakes, volcanic eruptions and tsunamis, are natural hazards.
Anthropogenic, or man-made, hazards include deforestation, mining and climate change.
The hazard maps, particularly climate/weather-related and geophysical, were intersected with
the base map from the National Mapping and Resource Information Authority (NAMRIA). The
base map shows the delineation of the political boundary of each province in the country.
Geographic Information Systems (GIS) software was used to overlay and multiply the hazard
scores with the population density scores and the Human Development Index (HDI).
A natural hazard is defined as a natural process or event that is potentially damaging in that it
may result in loss of life or injury, loss of property, socio-economic destruction or
environmental degradation. Climate- and weather-related hazards, in particular, refer to the
direct and indirect effects of observed changes and/or projected deviations from present-day
conditions of natural climate events (such as increases and decreases in precipitation and
temperature); and impacts of changes in the frequencies and occurrences of extreme
weather/climate events (such as tropical cyclones, droughts, and El Nio and La Nia
events).
Geophysical events are destructive phenomena. However, these are part of the normal
functioning of our dynamic planet. These so called hazards are due to naturally occurring
processes in the earth's interior.
Four hazards are considered under this category: Earthquakes, earthquake-induced
landslides, tsunamis and volcanic eruptions. Sources of data for these hazards include the
Philippine Institute of Volcanology and Seismology (PHIVOLCS) and the Earthquake and
Natural Resource Atlas of the Philippines of 1998.
A natural process that is hazardous is the movement of lithospheric plates (the solid crust and
a few kilometers of the upper mantle), which causes the tectonic earthquakes. US Geological
Survey defines the term earthquake as "both sudden slip on a fault, and the resulting ground
shaking and radiated seismic energy caused by the slip, or by volcanic or magmatic activity,
or other sudden stress changes in the earth (i.e. event by man made explosions)".
Furthermore, the resulting ground motion due to an earthquake produces another natural
hazard such as landslides and tsunamis. Landslide is the downslope movement of soil and/or
rock.
Tsunami is a sea wave of local or distant origin that results from large-scale seafloor
displacements associated with large earthquakes, major submarine slides, or exploding
volcanic islands.
One other example of a hazard is the ascent of molten material called magma beneath the
earth's surface, which results to eruptions of a volcano. A volcano is a vent at the Earth's
surface through which magma (molten rock) and associated gases erupt, and also the cone
built by effusive and explosive eruptions.
Annex 2E-2/14
Final Report
Reviewing the natural disaster record for the Philippines, volcano and earthquake disasters
are frequent in the top ten. (EM-DAT: The OFDA/CRED International Disaster Database,
www.em-dat.net - Universit catholique de Louvain - Brussels -- Belgium)
As with the climate- and weather-related hazards and to generate four risk maps, the resulting
normalized hazard maps are multiplied with maps of normalized gridded population density by
city and municipality in 2000 as well as the normalized inverse of the HDI by province in 2000.
Flooding is related to both natural and anthropogenic hazards. In the Agusan River Basin The
main causes of flooding in the Basin are the following:
(a) Excessive runoff due to the typhoons
(b) Compounded with the silted waterways due to excessive erosion from the deforested
catchment, mining and kaingin activities, settlement of the population along the river
banks, mismanaged implementation of land use plan and other related human
interventions.
Discussion and elaborations of flood hazards will be illustrated in Section 5 of this Report.
1.4 RISK
1.4.1 EXPOSURE
Data on the year 2000 population density in 5 km by 5 km grids was obtained from the
National Statistics Office and from municipal data. The gridded population density
represented the exposure.
Other available exposure factors include: Population Density by province (1995 and 2000),
Settlement Areas and Populated Places, and the state of the Ecological Resources.
1.4.2 VULNERABILITY
Provincialized Human Development Indices of the year 2000 was obtained from the Philippine
Human Development Report 2000 published by the UNDP and HDN. HDI encompasses
health, education and income factors. The inverse of the HDI represented the vulnerability
score.
Other available vulnerability factors include: incidence of poverty, access to urban centers
and transportation facilities, and the state of the natural environment.
1.4.3 RISK MAPS
The hazard scores, exposure scores and HDI scores were normalized by setting the highest
values as 100 and readjusting the rest accordingly.
Risk here distinctly represents risk to human life. As mentioned, it was computed using the
UNDP framework R = H*E*V, or, in this case:
Risk = (Normalized hazard score) x (Normalized exposure score) / (Normalized HDI).
The resulting risk scores are likewise gridded. For the purpose of dissemination to local
government units (LGUs), the risk scores are provincialized. The risk score for each province
is the sum of the weighted contributions of all grids intersecting the province, where the
weight is based on the area of the intersecting polygon. After provincializing, the risk scores
are again normalized with 100 as the highest value. The results were presented in map form
as follows:
(a) Risk to Typhoons
Figure 2E-1 shows that Northern Luzon, Southeastern Luzon and Eastern Visayas
are the areas highly at risk to the occurrence of tropical depressions, tropical storms,
typhoons and super typhoons.
Annex 2E-3/14
Final Report
(b) Risk to Earthquakes

Since 1968, PHIVOLCS has recorded twelve destructive earthquakes in the
Philippines. This record includes the infamous July 16,1990 Luzon earthquake which
caused innumerable injuries and at least 1,100 deaths. Seismicity (geographic and
historical distribution of earthquake events) is all over the country except in the
Palawan region.
La Union and Pangasinan are prone to earthquakes, especially the deep-focused
ones, due to the Manila Trench while Surigao del Sur and Davao Oriental have
earthquake hazards due to Philippine Trench and nearby active faults. Frequency of
shallow and left-lateral strike-slip earthquakes in Nueva Vizcaya, Nueva Ecija,
Eastern Pangasinan, Benguet and La Union can be attributed to its location along the
Philippine Fault Zone.
However, Ifugao, despite having less earthquake occurrences is at risk because of its
very high vulnerability to disasters. Figure 2E-2 delineates the risks related to
earthquakes.
(c) Risk to Earthquake-Induced Landslides
Most of the provinces, except Palawan, are susceptible to landslide hazards as
shown in Figure 2E-3.
Ifugao, Lanao del Sur and Sarangani ranked high because of their high vulnerability
to disasters while Rizal ranked the lowest. Benguet, despite its low vulnerability,
ranked four because of its high exposure factor or population density. Aurora ranked
higher than Davao del Sur and Davao Oriental despite its low vulnerability compared
with the other two provinces. This is due to the fact that the whole of Aurora is more
susceptible to landslide than the other two provinces.
(d) Risk to Tsunamis
In November 14,1994, a 7.1 magnitude earthquake in Mindoro triggered a tsunami
that left at least 41 persons dead, mostly children and old people.
Figure 2E-4 shows the risk to tsunamis. Most of the coastal areas have experienced
a tsunami or have a tsunami hazard potential.
Sulu and Tawi-tawi took the top two seats because of their high potential for tsunami
owing to their location between two nearby trenches namely, Sulu Trench and
Cotabato Trench. Moreover, both provinces are also densely populated and have
very high vulnerability. Similarly, most areas in Basilan and Romblon are at high risk
especially because they have been previously affected by a tsunami. (PHIVOLCS)
(e) Risk to Droughts
Areas highly at risk to El Nio-induced drought are Central and West Mindanao as
shown in Figure 2E-5.
Annex 2E-4/14
Final Report
Figure 2E-1
Risk to Typhoons
Annex 2E-5/14
Final Report
Figure 2E-.2
Risk to Earthquakes
Annex 2E-6/14
Final Report
Figure 2E-3
Risk to Earthquake-Induced Landslides
Annex 2E-7/14
Final Report
Figure 2E-4
Risk to Tsunamis
Annex 2E-8/14
Final Report
Figure 2E-5
Risk to Droughts (El Nio)
Annex 2E-9/14
Final Report
1.5 VULNERABILITY OF ARB
The concept of vulnerability and risk to environmental disasters, coupled with its geographic
or spatial perspective, gives us meaningful and useful insights. In particular, vulnerability and
risk mapping assist in spatial analyses towards the formulation of more effective ways to
respond in terms of policy and decision-making as well as strategizing adaptation and
mitigation at various scales.
As presented, the Agusan River Basin is vulnerable to earthquake and earthquake-induced
slides. The risk maps relative to these hazards show high probability of occurrence across the
Basin.
The risk maps, in general, aid in identifying areas where further study is both important and
urgent. Strengthening of the framework, R = HEV, is needed to more accurately portray
actual risk conditions. Techniques may include considering collateral hazards, varied exposed
elements, and multiple vulnerability indicators.
Moreover, national-scale mapping reveals trends and themes across categories that may
potentially be correlated. Future directions, therefore, can also include comprehensive studies
to establish if such correlations do exist, and how these connections influence vulnerability
and risk assessment.
1.5.1 EARTHQUAKE
The affected areas are on the Agusan Valley region where the southern segment of the
Philippine Fault passes through. The fault can be traced from the east side of the Malimono
Ridge or west Lake Mainit and traverses the Agusan Valley floor in a NW direction. Another
fault west of the ridge parallels the main trace and becomes indistinct in the town of
Cabadbaran. Meanwhile, a branch of the main fault swerves into the southeast towards the
shore town of Lianga. The town of Bayugan is at the junction where the SE-trending splay of
the NW-trending Philippine Fault branches off towards Lianga. A plot of earthquakes (Figure
2E-6) with Ms > 4.0 from 1960 to 1997 shows that seismicity in the epicentral area that
originates mainly from the activity of the Philippine Fault Zone (PFZ) is not so intense. The
plot shows that most events are found along the west Lake Mainit fault segment. Seismicity
is dispersed throughout the valley area; most of these have small magnitudes and shallow
depths. Seismicity in the region is lower as compared to the offshore area between the PFZ
and the Philippine Trench, which is also a source of significant seismic activity. Large
earthquakes had affected the Agusan Valley
On June 7, 1999, a Ms 5.1 earthquake occurred at 3:45 PM (local time) and damaged the
town of Bayugan in Agusan del Sur. Using the PHIVOLCS seismic network, its epicenter was
determined to be at 8.575 N lat, 125.754 E long or about 20 km south of the town of Bayugan
as shown in Figure 2E-7. Its depth is estimated at 7 km. After two days in June 9, an
aftershock occurred and damaged the town of Talacogon also in Agusan del Sur.
The epicentral areas of both events are located in the Agusan Valley region, previously called
by Maso (1911) as lying along one of the unstable portion of the line of fracture due to the
succession of damaging earthquakes that occurred in the area in the latter part of 19th
century.
Figure 2E-8 and 2E-9 are risk maps related to earthquake hazards.
Annex 2E-10/14
Final Report
Figure 2E-6
Plot of EQ
Figure 2E-7
June 7, 1999 Isoseismal Map
Annex 2E-11/14
Final Report
Figure 2E-8
ARB Risk to Earthquakes
Figure 2E-9
ARB Risk to Earthquake-Induced Landslides
Annex 2E-12/14
Final Report
1.6 DCOSs IN AGUSAN RIVER BASIN
The existing disaster coordinating organizations in the Agusan River Basin runs in parallel
with the existing local government units.
The aftermath of the recent disastrous event caused by various natural phenomena in some
areas made the Provincial Governments in Agusan Basin (Agusan del Norte, Agusan del Sur
and Compostela Valley through their respective Provincial Governors to reorganize and
reactivate the Provincial Disaster Coordinating Council (PDCC). The structure of PDCC as
shown in the Organizational Chart in Figure 2E-10 is divided into three (3) groups namely the
Executive Team, Staff Teams and Working Committees which will be under the control of the
chairman of the Council.
The Executive Team is composed of the Chairman, Vice Chairman and the Disaster
Operation Center (DOC). The Staff Team is composed of three (3) sub-groups namely,
Intelligence and Disaster Analysis, (b) Resources Management, and (c) Plan and Operation.
The Working Committees is composed of nine (9) committees namely; (a) Warning and
Communication, (b) Rescue and Recovery, (c) Welfare and Rehabilitation, (d) Relief, (e)
Police, (f) Medical, (g) Fire Brigade, (h) Transport and (i) Public Information
Figure 2E-10
Typical Structure of the Provincial Disaster Coordinating Council
Annex 2E-13/14
Final Report
1.6.1 DUTIES AND RESPONSIBILITIES
a) The PDCC Executive Team

Establishes a physical facility to be known as the Provincial Operations Center
(PDCC)
Establishes policies/guidelines on emergency preparedness and disaster
operations and management
Formulates a Plan on Action for disaster preparedness for the province in
accordance with the guidelines set by the Regional Disaster Coordinating Council
(RDCC)
Coordinates the disaster operation in the province
Implements within the province disaster management and operations according
to the guidelines set by the RDCC and the plan of action of the province
Advises the municipal disaster coordinating councils on disaster management
Submits appropriate recommendation to the RDCC, as necessary
Annex 2E-14/14
ASSESSMENT OF MERCURY CONTAMINATION
OF AGUSAN RIVER SYSTEM
Agusan River Basin Master Plan Project ANNEX 2F
Draft Final Report
ANNEX 2F: ASSESSMENT OF MERCURY CONTAMINATION OF

AGUSAN RIVER SYSTEM
1.0 BACKGROUND
Agusan River is one of the major water bodies in the CARAGA Region. It is the 2nd largest river in
Mindanao, with an approximate basin area of 10,921 square kilometers. The river is one of the
regions significant water resources, which is tapped by people for rice field irrigation and other
agricultural purposes. The main river is also used as a waterway, a means to transport forest and
agricultural products as well as a route to transport other goods in and out of Butuan City and the
surrounding localities. The headwater is located at the Compostela Province of Region XI with a
number of river tributaries draining from the Agusan Provinces. The river is classified as Class C
water body having the following beneficial uses: 1) Fishery Water for the propagation and growth
of fish and other aquatic resources; 2) Recreational Water Class II (boating, etc); 3) Industrial
Water Supply Class I (for manufacturing processes after treatment).
The river is also a recipient of pollution coming from households, agricultural run-offs and other
man-made activities, including soil erosion from the denuded forest and other areas, which
explains the rivers murky waters. Likewise, concerns on the degradation of the river, which was
allegedly caused by mercury contamination thru an amalgamation process in gold-containing ores
along Mt. Diwata (otherwise known as Mt. Diwalwal) and other gold mining/processing areas
within or in proximity with the Agusan River basin such as in Rosario, Bunawan and San
Francisco of the Province of Agusan del Sur, have been raised by various sectors since the early
1990s.
In the past (CY2000 and 2002), studies have been conducted to assess the nature and extent of
mercury contamination along the Agusan River System by the DENR-MGB Central Office, DENR-
MGB Regions 11 and 13, DENR-EMB Region 13, UNIDO/ DENR-MGB Manila and DA-
BFAR/MSU-Naawan, where some sampling stations were proven to be positive with mercury
contamination in sediments and even exceeds the standard established in the Sediment Quality
Criteria for the Protection of Aquatic Life (Environment Canada 1992, as quoted in Appleton 2000).
It may be noted that the DENR do not have soil or sediment quality criteria, while a concentration
of 1.0 ppm toxic effects threshold limit was established in the Sediment Quality Criteria for the
Protection of Aquatic Life, in Canada.
This survey/assessment intends to validate the secondary data on the mercury contamination in
sediments from selected sampling points found along the study area. The survey shall also tackle
on the mercury contamination in water (total mercury) and in the collected biota samples to
validate the study conducted by the DA-BFAR/ MSU Naawan on freshwater fish in year 2002. The
results of the study will tell whether there have been any changes thru time as it was believed that
many gold processing activities have shifted to the use of cyanide instead of mercury.
2.0 OBJECTIVES AND METHODOLOGY
This study is conducted to validate the secondary data on mercury contamination of the Agusan
River System, as reported in the previous studies, which in turn may be used to derive a partial
evaluation of its water quality regarding beneficial use and its relation to the water quality criteria
as embodied in the DENR Standard and other international standards in the absence of the local
or national standards such as for sediments and other criteria.
Annex 2F-1/6
Draft Final Report
The study will also give us a better understanding and would help us determine if there have been
significant changes, thru time, in the contamination level of mercury in the river sediments, and its
assimilation in the river waters. It will also validate the effect from switching the use of mercury in
the extraction of gold from its ores, with the use of cyanide in gold extraction. Cyanide is now
being widely used by small-and big-scaled gold mining companies.
The study areas of this survey include the upstream portion of the Agusan River, between the
Agusan Marsh and in confluence with the Naboc River, the Agusan Marsh, and the downstream
portion of the Agusan River System. The mercury contamination of Agusan River will be validated
by conducting lab analysis on river water, sediments and fishes in order to determine the spot
concentrations of mercury, the extent of mercury dispersion in sediments, and bioaccumulation in
certain species of fishes.
On January 28 31, 2008, a team comprised of technical personnel from DENR-EMB 13, DA-
BFAR 13 and a representative from the project consultants conducted water, sediment and fish
sampling at predetermined sampling locations along the Agusan River Basin. The spot
concentration of mercury was determined for the following sampling sites: a) Downstream of
Maputi Creek (San Francisco, Agusan del Sur), which is a tributary of the Agusan River where an
existing small-scale gold mining/ processing plant can be found somewhere in its upstream; b)
Point along Naboc River (Province of Compostela Valley) that is located near Mt. Diwalwal, a
known place for gold mining/ processing; c) Agusan River after confluence of Naboc River; d)
Upstream of the Agusan Marsh (Veruela, Agusan del Sur); e) Downstream of Agusan Marsh,
along Lake Himbang (Talacogon, Agusan del Sur); and f) Mouth of Agusan River (Magallanes,
Agusan del Norte) (see Figure 2F-1). Mercury analysis along Sampling points c) to d) would
indicate the presence or dispersion of mercury-containing contaminants along the River System.
3.0 SAMPLING AND ANALYTICAL PROCEDURES
As earlier mentioned, sampling for water, sediment and fishes were performed along the six (6)
identified sampling locations. Several mode of transportation were employed (i.e. motor boat,
motorbike and rented van) in order to get to all the sampling sites due to difficulty in access.
Water and Sediment Samples were collected along the active portions (such as curves,
confluences or along areas with highest sediment deposits) of the river and tributaries. At least
one (1) kilogram of sediment samples, from each sampling site, were manually collected (using a
make-shift dredge equipment made of PVC plastic material)l and stored in polyethylene plastic
bags. Water samples were obtained using a water sampler and placed in 1000 mL polyethylene
bottles. The water samples were fixed with Nitric acid to less than a pH of 2.0 to prevent the
reduction of mercury species thru retardation of biochemical degradation. This will preserve the
water samples for mercury analysis for 28 days. Fishes of different species (excluding janitor
fishes) were acquired on-site thru net fishing. This is to prevent potential contaminants from hooks
getting into the fish samples. Snails were collected along Maputi Creek (San Francisco, Agusan
del Sur) since no fish could be found within the specified sampling location. The fishes were
identified, weighed and measured on-site. Afterwhich were packed in aluminum foil and placed in
polyethylene bags. The fish samples were immediately stored in an ice chest to prevent advance
biological degradation, which could reduce the mercuric species absorbed in the fish tissues.
Cold Vapor Atomic Absorption Spectrophotometry (AAS) technique was used in the analysis of
total mercury in water and sediments (Toxic Characteristic Leaching Procedure or TCLP for
sediments prior AAS), while a Microwave Digestion and Hydride Vapor Generation Technique
was used in the analysis for total mercury in the fish samples collected. A third party laboratory
(Intertek Testing Services Philippines, Inc.), duly accredited by DENR and BFAR to conduct
Annex 2F-2/6
Draft Final Report
physico-chemical environmental analyses, was commissioned to perform the mercury analysis on

all acquired samples.
4.0 REPORT ON THE RESULTS OF MERCURY ANALYSIS
4.1 Water Quality
The Department of Environment and Natural Resources (DENR) had promulgated through
Department Administrative Order No. 34, (DAO No. 34), Series of 1990, a Revised Water Usage
and Classification/ Water Quality Criteria amending Section Nos. 68 and 69, Chapter III of the
1978 NPCC Rules and Regulations. Under this, a Water Quality Criteria for Toxic and Other
Deleterious Substances for Freshwater had been set for the protection of public health. Hence, for
this study, this National Standard shall apply.
The whole stretch of the Agusan River, which is located in Caraga Region 13, has been classified
by EMB as Class C water body. In the absence of the classification of its tributaries, a
classification of Class C may also be adapted. The established standard of total mercury per DAO
No. 34, for the protection of public health for Class C fresh water is 0.002 mg/L (ppm). All the
water samples collected at the established sampling sites have not been detected for presence of
mercury, thus these are free from mercury contamination (See Table 2F-1). The detection limit of
the instrument used for the analysis for total mercury in water is 0.1 ppb.
4.2 Sediment Quality
All the sediment samples collected at the identified sampling locations have not been detected for
presence of mercury, thus all the sediment samples are free from mercury contamination (See
Table 2F-1).
It may be noted that there is no National Standard established for soil or sediment quality criteria
for mercury. In the absence of this National Standard, a value of 1.0 ppm toxic effect threshold
limit established in the Sediment Quality Criteria for the Protection of Aquatic Life (Environment
Canada 1992, as quoted in Appleton 2000) may be used for the purpose of this assessment.
Based on the report of the analysis for mercury in the collected sediments from the Agusan River
System, none of these values exceeded the concentration of 1.0 ppm, hence, the mercury
concentrations of the rivers bottom sediments of the pre-selected sampling stations within the
Agusan River System is within that established Canadian standard.
4.3 Fish Samples Quality
Fish samples that were collected from the established sampling stations were analyzed for
mercury using Hydride Vapor Generation Technique. Similar with the results in water and
sediment analyses, all fish samples, including the snail samples, were found have negligible
amount of mercury contamination (See table XX). This result indicates that the fishes along the
identified sampling locations are safe for human and animal consumption in terms of mercury
contamination.
Annex 2F-3/6
Draft Final Report
5.0 CONCLUSIONS
1. Based from the result of the water samples collected from the established sampling stations
at the Agusan River System, starting from the Naboc River located at the Compostela Valley
Province down to the mouth of Agusan River along Butuan City and Magallanes, Agusan del
Norte, its stream waters are free from mercury contamination. This is because the elemental
mercury has low solubility in neutral waters, and no dissolutions of mercury from the mercury
contaminated river bottom sediments.
2. For the river bottom sediments, the mercury concentration, on all sampling locations, is below
detection limit. Compared to the study made in March 2002 by the joint team composed of
DENR-MGB Central/ Regional Offices 11, 13 and the DENR-EMB Region 13, the present
values of mercury in sediments from the same sampling stations are way below from those
values indicated in the previous study, which ranges from 0.170 ppm at the Mouth of Agusan
River and 1.910 ppm at Naboc River. This is an indication of improvement from switching the
use of mercury in gold processing with the use of cyanide in gold extraction from its ores.
3. All fish samples were found out to have mercury concentration less than the detection limit
(0.01 ppm). This implies that fishes that can be acquired from these areas are good for
consumption if to consider only mercury contamination.
6.0 RECOMMENDATIONS
1. To conduct regular monitoring of mercury levels in waters, sediments and fishes that thrives
in the Agusan River System.
2. To regulate the small-scale mining industries and promote the responsible use of chemicals in
the extraction of gold.
3. Conduct a region wide geo-chemical study of the Agusan River System for soils and
sediments to determine background concentrations of mercury to determine the quantity of
the mercury contamination of the rivers bottom sediments of the Agusan River System.
Annex 2F-4/6
Draft Final Report
Figure 2F-1. Location Map of Sampling Sites
Annex 2F-5/6
Draft Final Report
Table 2F-1. Location of sampling stations and quality of water, sediments and fish samples collected within the Agusan River System.
Station Location and Description Coordinates Water Samples Sediments Fishes/Snails

No.
Latitude Longitude pH Conductivity Salinity TDS DO Temp, Time Weather Hg Hg (Total) Samples Hg
o
(N) (E) (uS/mc/S/md) (ppt) (mg/L) (mg/L) C (HRS) Condition (Total), mg/kg (Total),
mg/L ppm
0 0
AR - 5 Mouth of Agusan River, 9 0' 37.2" 125 31' 28" 6.38 598.000 0.300 286.00 71.97 28.37 1530 Sunny, Windy BDL BDL Sapsap (Gazza ND
Magallanes, Butuan City minuta)
0 0
9 0' 50.2" 125 30' Lawayan ND
42.3" (Leiognathus
splendens)
Gisaw (Mugil ND
cephalus)
0 0
AR - Downstream of Agusan Marsh, 8 28' 9.21" 125 46' 6.31 613.000 0.300 290.00 72.50 28.30 0700 Cloudy skies BDL BDL Gurami (Gourami ND
18 Lake Himbang, Brgy. San 11.68" with Rainfall Belontiidae)
Nicholas, Talacogon, Agusan del not more than
Sur one (1) hr
before the
sampling
0 0
8 28' 9.21" 125 46' 6.39 605.000 0.300 288.00 71.30 28.40 Karpa (Cyprinus ND
11.68" carpio)
0
8 28' 12546'14.0 6.43 576.000 0.300 280.00 72.10 28.40 Pidjanga ND
8.57" 7" (Glossogobius giuris)
Hito (Clarias ND
macrocephalus)
0 0
AR - Mapute Creek, upstream of 8 29' 44.1" 125 58' 6.22 378.667 0.200 179.67 54.87 28.70 1000 Sunny, Windy BDL BDL Common Snails ND
24 bridge along national highway, 44.3"
San Francisco, Agusan del Sur
0 0
AR - Upstream of Agusan River, 8 4' 0.53" 125 57' 6.18 475.000 0.200 226.33 87.63 26.97 0400 Sunny BDL BDL Banak (Crenimugil ND
11 Veruela, Agusan del Sur 18.43" heterocheilos)
0 0
AR - Agusan River, after confluence of 7 45' 24.0" 126 4' 6.61 194.067 0.100 92.33 72.63 24.70 0900 Sunny BDL BDL Tilapia (Tilapia ND
32 Naboc River, Brgy. Mamunga, 20.1" nilotica)
Monkayo, Compostela Valley
Banak (Crenimugil ND
heterocheilos)
0 0
AR - Naboc River, Downstream of 7 45' 25.0" 126 5' 5.97 154.450 0.100 71.00 76.80 25.70 1715 Downcast BDL BDL Tilapia (Tilapia ND
31 Naboc Bridge, Monkayo, 19.5" sky, no wind, nilotica)
Compostela Valley slight rainfall
BDL - Below detection limit of 0.001 ppm for total mercury in water and sediment samples
ND - not detected (detection limit = 0.01 ppm for fish sample)
Annex 2F-6/6
BIOPHYSICAL FEATURES OF THE AGUSAN RIVER BASIN
Agusan River Basin Master Plan Project ANNEX 2G
Final Report
ANNEX 2G: BIO-PHYSICAL FEATURES OF THE AGUSAN RIVER BASIN
1.0 Bio-Physical Features of the Agusan River Basin
1.1 Land Classification
Table 2G-1 shows land classification in the Country.
Table 2G-1
Comparative Data on Land Classification in the Philippines
Year Total A and D Total Forest Total Area (ha)
Lands (ha) Lands (ha)
1978 13,070,886 16,929,114 30,000,000
1987 14,108,087 15,891,913 30,000,000
1996 14,117,244 15,882,756 30,000,000
2003 14,145,078 15,854,922 30,000,000
Source: Philippine Forestry Statistics, Forest Management Bureau
The following is a synthesis of Land Classification in the Philippines and in the ARB:
x The total Alienable and Disposable lands (A and D) in the whole country increased by
1,074,192 hectares (8.2%) with a corresponding decrease in total forest lands from 1978
to 2003.
x The general increased trend in total A and D lands and decreased in total forest lands in
the whole country is assumed to follow the same trend in the ARB.
x In Agusan del Norte, A and D lands is 66,630 hectares or 25.7% of the total land area of
259,029 hectares. Total forest lands is 259,029 hectares or 74.3% of the total land area.
x In Agusan del Sur, the total A and D lands is 221,628 hectares or 24.7% of the total
land area of 896,553 hectares while the total forest lands is 674,922 hectares or 75.3%
of the total land area.
x In Davao del Norte, the total A and D lands is 297,674 hectares or 36.6% of the total land
area of 812,975 hectares. Total forest lands is 515,301 hectares or 63.4% of the total
land area.
x The average % A and D and forest lands for Agusan del Norte, Agusan del Sur, and
Davao del Norte is 29.0 and 71.0 %, respectively.
1.2 Forest/Land Use Cover
Table 2G-2 shows forest/land use cover in the ARB analyzed by TA Team based on NAMRIA
2003 data. Table 2G-3 shows old growth forest cover, and Table 2G-4 shows residual forest
cover.
Annex 2G-1/5
Final Report
Table 2G-2
Forest Land Use Cover
Description Area (ha) % of Total Area

Built-up 2,304 0.2
Close Forest, Broadleaves 48,516 4.1
Cultivated, Annual 174,598 14.6
Cultivated, Perennial 146,944 12.3
Fishponds 2,522 0.2
Grasslands 22,988 1.9
Inland Water 6,066 0.5
Marshland 55,437 4.6
Natural, barren 66 0.01
Open Forest, Broadleaves 790 0.1
Open Forest, Coniferous 283,785 23.7
Wooded lands, shrubs 140,804 11.8
Wooded lands, fallow 3,484 0.3
Wooded lands, grasslands 305,445 25.5
Others 2,134 0.2
100.00
Total 1,193,655
Table 2G-3
Old Growth Forest Cover
1992 1997
Old Growth Old Growth
Total Forest Total Forest
Forest Forest
Philippines 5,900,200 804,900 5,391,717 804,900
Region 10
97,100 97,100
(incl. Caraga Region)
Region 11
89,200 89,200
Annex 2G-2/5
Final Report
Table 2G-4
Residual Forest Cover (ha): 1992 and 1997
1992 1997
Location Residual Residual
Forest Forest
Philippines 5,900,200 3,131,900 5,391,717 2,731,117
Region 10
533,700 463,839
Region 11
561,900 476,190
A brief synthesis of the forest/land use cover is follows:
x While the total forest lands (15,854,922 hectares) in 2003 is high compared to
16,929,114 hectares in 1978, the fact remains that not all these forest lands are
necessarily forested now. In fact, from 1992 to 1997, only 804,900 hectares remain as
old growth forest or virgin forest. From 1992 to 1997, the old growth forest in Regions 10
and 11 remained the same at 97,100 and 89,200 hectares, respectively. These figures
include CARAGA Region;
x Total forest cover in the country decreased from 5,900,200 hectares in 1992 to 5,391,717
hectares in 1997;
x For the same period, the total residual forest decreased from 3,131,900 to 2,731,117
hectares in the whole country. In Region 10, the decrease was from 533,700 to 463,839
hectares, while in Region 11, the decrease was from 561,900 to 476,190 hectares for the
same period;
x The average decrease in forest cover is 101,696.6 hectares per year for five years;
x Close forest (broadleaves) assumed as old growth forest/virgin forest, within the ARB is
48,516 hectares or 4.1% of the land total land area of 1,193,654 hectares. Open forest
(broadleaves and coniferous) has a total area of 284,575 hectares or about 23.8% of the
total land area. These areas are potential targets for forest protection;
x Wooded lands (shrubs, fallow, grasslands) have a total area of 449,734 hectares or
37.6% of the total land area of ARB. These areas are the potential areas for
restoration/rehabilitation;
x Cultivated areas for annual crops occupy 174,598 hectares. Cultivated areas planted
with annual crops are the target areas for boundary planting using permanent crops such
as fruit trees or timber species.
1.3 Reforestation
Table 2G-5 shows the reforestation trend in the Philippines. An analysis of reforestation trend in
the country by both the government and the private sector showed the following:
x The total area reforested by both the government and the private sector in 1990 and
2003 is 191,663 and 15,088 hectares, respectively. On the average, about 84% of the
total area was reforested by the government in both years. The highest total reforested
area (191,663 hectares) was attained in 1990 while the lowest (15,088 hectares) was
recorded in 2003;
Annex 2G-3/5
Final Report
x From 1991-2003, total reforested area per year ranged from 93,039 to 15,088 hectares
with an average of 42,898.6 hectares per year. From 1977 to 1989, the range was
53,263 to 131,404 hectares per year with an average of 62,269.5 hectares per year; and
x There was an increased trend in reforestation in the country from 1977 to 1989, reaching
its peak in 1990. On the other hand, reforestation had a decreasing trend from 1991 to
2003 with an average reforested area of 42,898.6 hectares per year. For both periods,
the average reforestation rate is 52,584.0 hectares per year.
The average reforestation rate of 52,584.0 hectares per year is way down the average forest
depletion of 101,696.6 hectares per year between 1992 and 1997.
Table 2G-5 AREA REFORESTED BY THE GOVERNMENT AND PRIVATE SECTORS: FY 1972-75 TO CY 2003 (In hectare)
Government Non-Government Sector

Year Grand Other Timber IFMA/SIFMA/CBFMA
Government TFLA/PLA/
1/
Total Total DENR Agencies Total Licensees ITPLA PD 1153 Others
CY 2003 15,088 13,195 6,565 6,630 1,893 842 1,034 - 17

2002 25,620 20,681 9,111 11,570 4,939 564 3,850 - 525
2001 24,847 19,927 19,887 40 4,920 1,410 2,721 - 789
2000 27,632 21,740 19,059 2,681 5,892 1,989 3,421 - 482
1999 42,167 31,184 30,831 353 10,983 6,904 - - 4,079
2/ 3/
1998 42,368 33,219 32,643 576 9,149 8,236 - - 913
2/
1997 66,237 49,301 48,490 811 16,936 14,357 - - 2,579
3/ 2/
1996 46,096 18,869 18,869 - 27,227 20,005 - - 7,222
3/ 2/
1995 65,233 21,841 7,840 14,001 43,392 30,380 - - 13,012
2/
1994 49,551 18,032 18,032 - 31,519 9,468 18,729 - 3,322
1993 19,211 6,347 6,347 - 12,864 12,692 172 - -
1992 40,593 24,304 24,304 - 16,289 11,683 4,606 - -
1991 93,039 73,602 72,238 1,364 19,437 18,089 1,348 - -
1990 191,663 153,949 146,718 7,231 37,714 33,443 3,749 - 522
1989 131,404 89,452 82,966 6,486 41,952 32,087 6,526 - 3,339
1988 64,183 31,226 30,890 336 32,957 23,126 9,831 - -
1987 39,811 28,843 27,558 1,285 10,968 7,956 1,118 1,296 598
1986 32,998 24,426 22,495 1,931 8,572 6,572 1,625 368 7
1985 24,231 12,684 12,201 483 11,547 8,148 1,500 1,228 671
1984 38,935 16,088 15,520 568 22,847 14,186 7,011 1,650 -
1983 78,538 42,239 27,155 15,084 36,299 31,703 3,554 1,042 -
1982 63,262 35,201 31,202 3,999 28,061 21,588 972 5,501 -
1981 64,541 33,296 30,707 2,589 31,245 20,096 6,482 4,667 -
1980 60,516 39,881 32,956 6,925 20,635 15,579 1,162 3,894 -
1979 79,397 51,858 35,305 16,553 27,539 20,132 545 6,017 845
1978 78,425 44,686 34,343 10,343 33,739 22,006 5,001 6,523 209
1977 53,263 33,365 23,677 9,688 19,898 17,276 1,088 500 1,034
1976 31,733 23,228 20,977 2,251 8,505 8,275 - - 230
FY 1974 - 75 15,280 15,280 15,280 - - - - - -

1973 - 74 4,994 4,994 4,994 - - - - - -
1972 - 73 5,787 5,787 5,787 - - - - - -
1/ 1990-1994 Including Enrichment Planting of Timber Licensees
2/ Including accomplishment of IFMA and SIFMA holders
3/ Private Lands and other organizations
Annex 2G-4/5
Final Report
1.4 Soil Erosion
Table 2G-6 shows a comparative soil erosion rates from selected watersheds. Three of these
watersheds are within the the Agusan River Basin.
Table 2G-6
Soil Erosion Estimate from Selected Watersheds
Soil
Name of Major Funding
Area (ha) Erosion Location
Watershed Infrastructure Agency
(tons/ha)
Tigum- 41,200 Iloilo Flood
2.26 Iloilo JBIC
Aganan Control Proj
Can-
3,872 20.72 NIA RIS Carcar, Cebu ADB
asujan
Prosperidad,
Gibong 41,554 26.11 NIA NIS ADB
ADS
Buenavista,
Calayagon 15,650 14.62 NIA CIS ADB
ADN
Logum- Comval and
21,003 14.94 NIA RIS ADB
Baobo ADS
The average soil erosion (tons/ha) in three watersheds (Gibong, Logum-Baobo and Calayagon) is
18.56 tons/ha compared to 20.72 tons/ha in Cana-asujan Watershed in Cebu. Both erosion rates
are higher than 10 tons/ha which are used as a tolerable limit for most soils. Only the Tigum-
Aganan Watershed in the Province of Iloilo has lower (2.26 tons/ha) soil erosion compared to the
tolerable soil erosion level.
Annex 2G-5/5
BIOPHYSICAL FEATURES OF ARB SUB-BASINS
Agusan River Basin Master Plan Project ANNEX 2H
Draft Final Report
ANNEX 2H: BIO-PHYSICAL FEATURES OF ARB SUB-BASINS
1.0 BIO-PHYSICAL FEATURES OF ARB SUB-BASINS
Seventeen (17) sub-basins are delineated for ARB, including the Agusan Marsh, which are
being proposed as the basic planning units for watershed management. The mapping of
these sub-basins is as shown in Figure 2H-1.1
Figure 2H-1
Sub-Basins within the Agusan River Basin
1
The map of the ARB has been initially presented in Volume IIIA of this Master Plan. It is once more
provided in this thematic report for presentation purposes.
Annex 2H- 1/5

Draft Final Report
1.1 Soils and Slopes
Sandy clay loam is the dominant soil texture in the ARB (Table 2H-1 and Figure 2H-2),
followed by clay loam, silty clay loam, loam and sandy loam. Sandy clay loam tends to be
associated with relatively high erosion potential when disturbed; thus, reminding of the
importance of vegetation cover on these lands to naturally arrest erosion.
Table2H-2 and Figure 2H-3 summarizes the slope classification prevailing within the Basin.
The dominant slope class on the average is 18-30% (20%) followed by slope class 8-18%
(12%). On the average, slope class 0-18 % comprises about 35% of the total area while
slope class 50% and above has about 14%.The slope class 0-18% is substantial. Denuded
portions of these areas are priority areas for restoration.
Table 2H-1
Soil Texture, ARB
SOIL TEXTURE
No Sub-basin Area (Ha) Sandy Silty
Sandy Silt Clay Hydro Undiffer
Clay % Loam % % % % Clay % Clay % % %
Loam Loam Loam sol entiated
Loam Loam
1 Adgaon 98,481 3748 4 99 0 3240 3 1661 2 89738 91
2 Bugabos 17,055 8568 50 8488 50
3 Gibong 92,638 45964 50 8918 10 1567 2 18950 20 17245 19
4 Haoan/Ihaoan 74,635 554 1 7682 10 21485 29 44920 60
5 Kasilan 37,689 779 2 282 1 36631 97
6 Kayonan/Umayam 72,947 1236 2 4993 7 2355 3 64368 88
7 Libang 24,656 485 2 24173 98
8 Logom-Baobo 29,120 1931 7 1697 6 1621 6 14794 51 9079 31
9 Manat 175,822 6523 4 154 0 28541 16 88601 50 24195 14 1851 1 25970 15
10 Maosam 41,820 319 1 41503 99
11 Ojot 92,419 349 0 1715 2 90361 98
12 Simulao 97,838 19151 20 5732 6 166 0 24983 26 2847 3 44965 46
13 Solibao 15,975 8119 51 457 3 489 3 6911 43
14 Taguibo 7,572 658 9 4794 63 2120 28
15 Wawa-Andanon 76,414 582 1 5031 7 36393 48 34413 45
Agasan-Flood
16 Plain 219,244
17 Agusan Marsh 19,331
TOTAL 1,193,655 6028 1 85363 7 37827 3 5583 0 100420 8 149863 13 24195 2 4980 0 540886 45
Source: TA Team
Annex 2H- 2/5

Draft Final Report
Figure 2H-2
Soil Texture Map of ARB
Annex 2H- 3/5

Draft Final Report
Table2H-2
Slopes, ARB
SLOPE
No Sub-basin Area (Ha) % 50 and
0-3 % 3-8 % 8-18 % 18-30 % 30-50 % %
above
1 Adgaon 98,481 8 7335 7 12968 13 9955 1024292 25 9656 10 34281 35
2 Bugabos 17,055 1 140 1 268 2 4906 29 6441 38 4512 26 790 5
3 Gibong 92,638 8 17047 18 33701 36 15438 1715166 16 6879 7 4258 5
4 Haoan/Ihaoan 74,635 6 3334 4 21144 28 21381 2921756 29 6305 8 721 1
5 Kasilan 37,689 3 865 2 4385 12 5142 1424984 66 265 1 2051 5
6 Kayonan/Umayam 72,947 6 4735 6 4365 6 2623 4 11131 15 26928 37 23170 32
7 Libang 24,656 2 335 1 1698 7 3487 14 9165 37 5018 20 4954 20
8 Logom-Baobo 29,120 2 4027 14 7305 25 12307 42 2393 8 2694 9 116 0
9 Manat 175,822 15 53276 30 23552 13 22291 1331280 18 22009 13 23099 13
10 Maosam 41,820 4 920 2 2301 6 1914 5 6724 16 8771 21 21190 51
11 Ojot 92,419 8 3127 3 5659 6 16374 1830967 34 17234 19 19065 21
12 Simulao 97,838 8 17112 17 18546 19 21324 2226609 27 12513 13 1693 2
13 Solibao 15,975 1 1156 7 7423 46 894 6 4657 29 1105 7 740 5
14 Taguibo 7,572 1 852 11 1988 26 2885 38 1848 24
15 Wawa-Andanon 76,414 6 6298 8 6251 8 3842 5 25205 33 10401 14 24423 32
Agasan-Flood
16 Plain 219,244 18
17 Agusan Marsh 19,331 2
TOTAL 1,193,655 100 120560 10 149565 13 141877 12 242756 20 137176 11 162399 14
Source) TA Team
Annex 2H- 4/5

Draft Final Report
Figure 2H-3
Slope Map of ARB
Annex 2H- 5/5

LAND USE AND LAND COVER
Agusan River Basin Master Plan ANNEX 2I
Project
Final Report
ANNEX 2I: LAND USE AND LAND COVER
1.0 LAND USE AND LAND COVER
The following major land uses are found in the basin area:
Land for settlements, villages and built-up areas for towns, industrial and commercial areas.
Agricultural land such as lands for rice, corn and other cereals, upland farms (mixed cropping or
intercropping) by small holders, grasslands, and plantations (coconut, rubber, oil palm, banana,
abaca) by commercial farmers.
Forested land (e.g. primary forest, second re-growth, reforested, shrub vegetation, production
timber)
Bare land (e.g. firstly logged-over and not reclaimed; only grasses are growing, mining areas)
Kaingin farming (shifting cultivation) by the indigenous people living in the tropical forest was the
predominant agricultural practice of the uninhabitable hinterland before the Second World War. In the
early 1970s, over 60% of the land was still covered with primary forest. By that time, intensive logging
operations were already taking place in the basin that continued into the early 1990s. Replanting or
selective logging was not largely carried out. At present, there is no more known virgin forest left in the
basin except a portion of only less than 1% of the area remained untouched (Gibong Watershed area,
national parks, and isolated patches along the Ojot River).
With the presence of naturally stable soils and uniform climate in the basin (soil in the basin has a high
infiltration capacity) a quick grass cover could be established so that the formation of gullies, further soil
degradation and massive sheet erosion could not take place. No large land slips can be seen on the
mountain slopes of the basin after some intensive rainfall. Where new land in the basin is open and
people got settled, agricultural production starts first on a small scale as domestic consumption.
Currently, there are a number of commercial plantations of coconut, rubber, oil palm, banana and
abaca with-in the basin. The last three items are still expanding due to its high demand in foreign
markets.
The land use groups concerns in the Agusan River Basin are important for environmental and socio-
economic considerations. Municipalities and provincial administrations have an important role in
developing and monitoring the land use pattern of each municipality to increase production and income.
Every 10 years, under the Local Government Code, the LGUs update their land use and physical
framework plans as a basic requirement for funding support from the national government. LGUs need
to set up a proper database to raise taxes for land use and administration. Mapping facilities of the
LGUs, however, will remain poor unless special funding is obtained for the said purpose. Maps are
generally not correct to scale and some are sketchy (not precise). The available 1:50,000 scale
NAMRIA topographic maps are hardly used as reference.
The land cover map relevant to the present land use delineated from 2002 satellite imagery of the Basin
is shown in Figure 2I-1.
Project
Final Report
Figure 2I-1
Land Cover Map of the Agusan River Basin
Project
Final Report
1.1 Land Classification
Land classification data in the Philippines reveal that total alienable and disposable lands (A
and D) increased by 1,074,192 hectares (8.2%) with a corresponding decrease in total forest
lands from 1978 to 2003, Table 2I-1. A similar trend is assumed to occur within the ARB.
Table 2I-1
Comparative Data on Land Classification in the Philippines, 1978-2003
Total A and D Total Forest

Year Total Area (ha)
Lands (ha) Lands (ha)
1978 13,070,886 16,929,114 30,000,000
1987 14,108,087 15,891,913 30,000,000
1996 14,117,244 15,882,756 30,000,000
2003 14,145,078 15,854,922 30,000,000
1.2 Forest/Land Use Cover
A. General
While total forest lands (15,854,922ha) in 2003 are high compared to 16,929,114ha in 1998,
not all these forest lands are necessarily forested now.
Total forest cover in the country decreased from 5,900,200ha in 1992 to 5,391,717ha in 1997
(Table 2I-2). In Region X, the decrease of the forest cover was from 533,700ha to 463,839ha
while in Region XI, the decrease was from 561,900ha to 476,190ha for the same period.
From 1992 to 1997, only 804,900ha remain as old growth forest or virgin forest. From 1992 to
1997, the old growth forest in Regions X and XI remained the same at 97,100 and 89,200
hectares, respectively. These figures include CARAGA Region. The rapid denudation of
forested areas resulted to the loss of the productive and protective values of the forest.
Table 2I-2
Old Growth Forest Cover (ha), ARB, 1992 and 1997
1992 1997
Location Old Growth Old Growth
Forest Forest
Philippines 5,900,200 804,900 5,391,717 804,900
Region 10
97,100 97,100
Region 11
89,200 89,200
Meanwhile for total residual forest, the reduction was from 3,131,900ha inn1992 to
2,731,117ha in 1997 in the whole country (Table 2I-3). The average decline in forest cover is
101,696.6ha per year for five (5) years. In Region X, the decrease was from 533,700 to
463,839 hectares, while in Region XI, the decrease was from 561,900 to 476,190 hectares for
the same period.
Project
Final Report
Table 2I-3
Residual Forest Cover (ha), ARB, 1992 and 1997
1992 1997
Location Residual Residual
Forest Forest
Philippines 5,900,200 3,131,900 5,391,717 2,731,117
Region 10
533,700 463,839
Region 11
561,900 476,190
Close forest (broadleaves), assumed as old growth forest/virgin forest, within the ARB is
48,516ha or 4.1% of the land total land area of 1,193,654ha. Open forest (broadleaves and
coniferous) has a total area of 284,575ha (23.8%). These areas are potential targets for forest
protection.
Wooded lands (shrubs, fallow, grasslands) have a total area of 449,734 hectares or 37.6% of
the total land area of ARB. These areas are the potential areas for restoration/rehabilitation.
Cultivated areas for annual crops occupy 174,598ha. Cultivated areas planted with annual
crops are the target areas for boundary planting using permanent crops such as fruit trees or
timber species.
B. Temporal Analysis of Land Cover Change from 1998 to 2003
Looking at the temporal land cover change in the ARB from 1998 to 2003, its close canopy
forest decreased from 14.4% down to 4.12% and the open canopy forest also decreased from
42.07% down to 23.79%. The cultivated-annual, on the other hand, increased from 5.5% to
14.59% and the cultivated-perennial also slightly from 11.66% to 12.32%. (Figure 2I-2 and
Figure 2I-3)
The changes tend to imply continuous encroachment in forested lands, and the subjecting of
more open lands to the cultivation of annual crops. There was not much planting of perennial
crops thus resulting to more denuded and abandoned grassland as shown in 2003 land cover.
This is observable also by the slow rate of increase in cultivated annual relative to the rate of
increase in open and closed canopy forest for the same period.
Based on close canopy cover, tremendous reductions can be observed in Adgaoan, Gibong,
Ihaoan,Lam-awan, and Ojot SBs. Open canopy decline is also noted in Agusan Marsh,
Bugabos and Logom-Baobo SBs although there was an increase in the Taguibo SB.
Project
Final Report
Figure 2I-2
Land Cover Map of ARB, 1998
Project
Final Report
Figure 2I-3
Land Cover Map of ARB, 2003
C. Area Covered by Tenurial Instrument and Other Land Classification Types

Project
Final Report
Spatial overlay analysis of tenurial land classification and sub-basin boundary maps was
made to isolate the areas considered as timberland, alienable/disposable land, and other land
classification types. Furthermore, the areas covered by tenurial instruments (i.e., IFMA, TLA,
CBFMA, CADC/CADT, and CSC) in timberland areas and other land classification types were
quantified.
Area covered by IFMA and TLA were lumped and separated from areas covered by CBFMA,
CADT/CADC, and CSC and those not governed by any instruments. The former is assumed
to be taken care of by licensees. The CBFMA, CADT/CADC, CSC and those not covered by
any tenurial instrument are the areas where project interventions can be concentrated.
Tables 2I-4 to 2I-6 show the different land classification that currently exist in the sub-basins
of ARB.
Project
Final Report
Table 2I-4
Land Cover of A & D Areas, ARB, 2003
Annex 2I-10/13
Project
Final Report
Table 2I-5
Land Cover of Timberland Area covered by CBFMA/ CADT/ CSC in the ARB, 2003
Annex 2I-10/13
Project
Final Report
Annex 2I-10/13
Agusan River Basin Master Plan
ANNEX 2I
Final Report
1.3 CRITICAL AREAS FOR INTERVENTIONS
While forest cover depletion in the country accelerated in a fast pace at an average of
101,696.6ha per year from 1992-1997, the rate of reforestation lagged behind. The estimated
rate of reforestation is only 52,584ha per year. This figure shows that reforestation is 48.3%
slower than the rate of forest cutting. This situation brought about the significant increase of
unproductive grasslands/brush lands in the entire country.
In the ARB, the estimated grassland areas alone are 305,445ha out of the total area of
1,193,655ha. These grasslands used to be the site of lush forested areas that once produced
timber products.
The once forested areas, which are now substantially under grassland cover, have lost their
productive as well as their protective roles to protect the environment. While grasslands have
their own protective values to control peak runoff and accelerated soil erosion, forested areas
have been observed to provide better hydrologic values compared to grasslands as to
controlling peak runoff. When peak runoff is controlled, the consequent accelerated soil
erosion is likewise controlled.
A study in the Subalpine Range Ephraim Watershed, Utah, USA showed that a reduction of
ground cover, particularly forest cover, from 60-75% to only 10%, will increase surface runoff
from 2% to 75% of rainfall. This increase shows that almost all the rainfall may appear as
surface runoff.
In this situation, the potential of peak runoff that may cause flash flooding is increased.
Likewise, the increase in soil loss is from about 0.07 tons/ha to about 20 tons/ha from the
same reduction in forest cover. This increase in soil loss (soil erosion) is two times the
tolerable soil loss (10 tons/ha) for most soil types.
In three (3) sub-watersheds in the ARB, the estimated average soil erosion is almost 19
tons/ha/year. These sub-watersheds are the Gibong and Logum-Baobo subwatersheds in
Agusan del Sur (ADS) and Calayagon subwatershed in Agusan del Norte (ADN). (Tables 2I-
7 and 2I-8) The average estimated soil erosion of about 19 tons/ha/year is almost two times
the tolerable soil loss of 10 tons/ha/year for most soil types.
Annex 2I-12/13
Final Report
Table 2I-7 Status of Watersheds within the Agusan del Norte
Annex 2I-12/13
Agusan River Basin Master Plan Project ANNEX 2I
Final Report
Table 2I-8
Status of Watersheds within the Agusan del Sur
Annex 2I-13/13
MANAGEMENT OF AGUSAN MARSH
AND WILDLIFE SANCTUARY
Agusan River Basin Master Plan Project ANNEX 2J
Final Report
ANNEX 2J: MANAGEMENT OF AGUSAN MARSH AND WILDLIFE SANCTUARY
1.0 MANAGEMENT OF AGUSAN MARSH AND WILDLIFE SANCTUARY
The Agusan Marsh and Wildlife Sanctuary (AMWS) is the most ecologically sensitive area within
the Agusan River Basin. It is one if not the most important wetland in the Philippines owing to its
biodiversity and habitat uniqueness. It is of international significance as a Ramsar-designated site
and as the wintering ground of migratory bird species.
The issues and concerns confronting the Agusan Marsh were tackled extensively in key informant
interviews with relevant institutions and community leaders as well as reiterative consultation fora
1
involving a wide range of stakeholders during Phase I of the project. These fora included Needs
Assessment Workshops, barangay consultations, Basin-Wide Consultation Workshop and
feedback-discussions with the Technical Assistance Steering Committee (TASC) and the
Technical Working Group (TWG). The outcomes of these consultations invariably reaffirmed the
need to treat the Agusan Marsh as a special planning unit within the Agusan River Basin and to
craft an appropriate program for managing it.
1.1 BACKGROUND
1.1.1 The Protected Area
The Agusan Marsh and Wildlife Sanctuary is located in the mid-stream catchment of Agusan
River Basin, extending from Veruela in the south to Lake Lumao near Talacogon in the north. In
recognition of its ecological significance, it was proclaimed a national protected area system
under the National Integrated Protected Areas System (NIPAS) Act by virtue of Presidential
Proclamation No. 913 issued in October 1996.
The protected area consists of 19,196 ha, with 14,836ha designated as core area and 4,360ha as
buffer zone. It covers significant portions of five (5) municipalities, namely Bunawan, Rosario,
Loreto, San Francisco and La Paz and a small part of the municipality of Veruela, all of Agusan
del Sur. (Figure 2J-1)
In 1999, the AMWS was registered with the Ramsar as a wetland of international importance
owing to its hydro-ecological significance, biological diversity and uniqueness as a natural wetland
of its type within the bio-geographic region where it is located. The Ramsar-designated area
corresponds to the 14,836-ha core protected area of the Marsh.
The AMWS belongs to the Mindanao Bio-geographic Zone. It supports the largest expanses left in
the Philippines of seven (7) habitat types; namely, (1) open water (oxbow lakes, floodplain lakes
and ponds); (2) flowing water; (3) herbaceous swamp; (4) scrub swamp; (5) swamp forest; (6)
riverbank; and, (7) inundated forest.
The very large areas of swamp forests in Agusan Marsh are not found anywhere else in the
country. The sago forest and peat swamps of the Marsh are of the kind that is found only in two
(2) other areas in the Philippines, namely the Leyte Sub-basin in the Visayas and Liguasan Marsh
in Central Mindanao.
1
Documentation of these activities are found in the working papers of the Environmental Specialist (Local)
found in Volume VIII (Working Papers) of this Master Plan.
Annex 2J-1/28
Final Report
Figure 2J-1
Location of Agusan Marsh and Wildlife Sanctuary, ARB Master Plan
The Agusan Marsh harbors pristine and natural habitats with a unique assemblage of flora and fauna. It
contains unique vegetation species that can withstand long periods of flooding. The Terminalia forest of
the Marsh is the most extensive of its kind left in the Philippines. It is host to some endemic species of
crocodiles and snakes, rare species of butterflies, and several threatened, critically threatened and
endangered that are included in the International Union on the Conservation of Nature (IUCN) Red List
Owing to its intrinsic ecosystem attributes, the Agusan Marsh has significant ecological, hydrological,
economic and social core values in both global and local terms. Foremost among its ecological values
are biodiversity conservation, nutrient cycling, soil fertility and food web support. In addition, besides
being a wintering ground for international migratory bird species, it serves as spawning area for some
marine and freshwater fish species. The Marsh also plays a significant global as well as local role in
atmospheric and climate regulation.
The Marsh performs two (2) very important hydrologic functions; namely, attenuating downstream
flooding and retaining sediments and other pollutants during flood events. It is often said that without
the Marsh acting as a natural catch basin, Butuan City would not be on the map.
The Marsh is crucial in the provision of economic goods and services. Its wealth of economic goods
includes water supply, food, fuel, forest products, fisheries and a highly diverse pool of biological
resources, many of which are rare or endemic and some of which are increasingly facing risk of
extinction.
In social terms, the Marsh is home to a significant population of indigenous people (IP) groups. Majority
of the IPs are Agusanon-Manobos, who are highly dependent on the natural resources of the Marsh
Annex 2J-2/28
Final Report
(water supply, fisheries, wildlife, timber and non-timber products, etc.) for a living. The cultural and
spiritual values attached to biological resources by these IPs further constitute a part of the social
wealth of the Agusan Marsh. Moreover, the pristine and unique land- and waterscapes have intrinsic
aesthetic worth and give the Marsh a high potential for recreational activities such as day-tour
navigation, bird-watching, and eco-educational trips.
Owing to its unique cultural and natural landscape, there is a local initiative to have the Agusan Marsh
registered among the United Nations Educational, Scientific and Cultural Organizations (UNESCO)
World Heritage Sites.
1.1.2 Wetland Management Issues and Threats
A myriad of issues and concerns pose a big challenge to the management of the Marsh. As discussed
below, both natural processes and anthropogenic activities continue to threaten the ecological integrity
and core values provided by it, and further undermine the sustainability of the resources on which its
occupants depend for survival.
A. Fragmentation
Since significant areas of it were already declared alienable and disposable (A and D), the Marsh has
increasingly been fragmented and degraded. Even with its proposed expansion under House Bill 1953,
the protected area of the Marsh will remain fragmented and disconnected. At least two (2) critical
observations confirm this, which merit reconsideration as far as the proposed expansion is concerned.
First, significant drainage areas of the Adgaoan River in La Paz and of the Agusan River near the
Marshs outlet in Talacogon are excluded in the proposed expansion. Second, the proposed expansion
is not congruent with the actual wetland extent.
As shown also in the previous Figure 2J-1 the actual extent of inundation covers 56,000ha based on a
satellite image of the Marsh taken during a peak flood event in year 2002. In contrast, the proposed
40,000-ha expansion excludes some perennially water-logged areas but includes areas that are not at
all being inundated.
Thus for example, judging from the flood extent, a large area of the proposed expansion within the
municipality of San Francisco is, technically speaking, no longer within the wetland complex while
significant portions of Veruela and other municipalities that were left out are actually still part of the
wetland complex.
B. Environmental Degradation
A number of natural and human-induced factors contribute to environmental degradation, which further
exacerbates the wetlands fragmentation.
(i) Flooding
Flooding in general is beneficial for maintaining the ecological function of the Marsh. However, to its
residents, flooding could be a boon or a bane, depending on the type of economic activities people
engage in. To most IPs who depend on fisheries resources for livelihood, flooding could mean more fish
catch. To some riparian farming communities it translates to more fertile floodplains on which to grow
seasonal crops. On the other hand, tenured rice farming communities and palm oil plantations in the
peripheries of the Marsh equate flooding with unwanted damage to crops and properties.
Most certainly, basin areas both upstream and downstream of the Marsh regard flooding as a major
economic deterrent. A proposal has been put forward in the past to drain the Marsh into another
catchment, partly to reduce flooding and partly to increase irrigable areas. This measure, of course,
was not found to be technically and economically feasible.
Annex 2J-3/28
Final Report
(ii) River Bank Erosion
Field evidence and anecdotal accounts confirmed that the main culprit causing the sedimentation and
siltation of Agusan River is river bank erosion. Local residents report of losing some riverine sitios or
villages completely to the meandering river channel. With each flood event, the river deposits as much
as 0.5m of sediments and organic debris in the Marsh.
The active erosion of river banks is a natural process and is typical of a river in its depositional stage.
This phase is also accompanied by active meandering of the river channel and formation of raised river
banks and oxbow lakes. In the Basin, this process has been hastened by the past wholesale clearance
of closed canopy forest cover.
As it stands, the current government program to establish replacement vegetation using single-stand,
mono-culture economic tree species is far less effective in delaying and dissipating the energy of
surface water run-off as it rushes from the hills and hits the flood plain. Moreover, current efforts are
also quite inadequate to protect the remaining primary forest cover and second growth vegetation from
illegal extraction.
(iii) Agricultural Practices
The practice of slash and burn cultivation along river banks for rice, corn, banana and other cash
crops further exacerbates river bank erosion. What is more alarming is that rare swamp and terminalia
forests within the seasonally dry areas of the Marsh are being burned and cleared for inland cultivation.
This unrestrained clearing of natural vegetation is contributing significantly to habitat fragmentation and
loss of biological diversity.
In addition, the peripheral areas of the Marsh are largely A&D lands that have been titled to migrants.
The continuous expansion of rice production and palm plantations threatens to undermine the natural
buffering protection afforded by these areas to the Marshs ecosystems.
(iv) Unsustainable Resource Extraction and Over-exploitation
The competition of a growing population over dwindling common resources only serves to hasten the
decline of biodiversity and fragmentation of the Marsh. Wildlife hunting and illegal harvesting of
remaining timber and non-timber forest products such as rattan, bamboo, fuel wood, thatch materials
and sago continue at unregulated rates. Unsustainable methods such as electric fishing and the use of
pesticides and unsuitable mesh are responsible for the drastic decline in fisheries resources.
(v) Tenurial Conflicts
The blatant disregard for customary and traditional rights and the issuance of overlapping and
inappropriate tenurial instruments only helped foment insecurity as to ownership, rights and access to
traditional and common resources, especially land. This has lead, in turn, to resource use conflict and
over-exploitation of resources.
Formal issuance of Certificates of Ancestral Domain Titles (CADTs) is being awaited for the two
Certificates of Ancestral Domain Claims (CADCs) in the Marsh. Portions of these areas, however,
overlap with areas for which rights were granted to tenured migrants (e.g., Certificates of Land
Ownership Agreements (CLOAs) issued by the Department of Agrarian Reform to its beneficiaries) and
to holders of resource-harvesting permits and other co-management agreements issued by the DENR.
The irrational manner in which tenurial rights are vested is exemplified in the case of a lake system in
the Marsh, for which a formal title was issued in the name of the DAR, supposedly for a proposed
Kaunlaran Resettlement site for agrarian reform communities (ARCs).
(vi) Land Conversion
The last few decades have seen the rapid conversion of extensive swamp forests and river bank areas
into fishponds, rice paddies and cultivation plots for cash crops. Moreover, the buffer areas of the
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Marsh that are largely classified as A&D lands are rapidly being converted to agricultural and other land
uses.
(vii) Species Introduction
Some portions of the Marsh have been converted into fishponds and there are future plans to convert
other areas for aquaculture.
The introduction of exotic species through aquaculture could pose a threat to the Marshs natural bio-
diversity because introduced species have the potential to overpopulate and increase competition for
food with native species. Some introduced species could become predators and threaten native
species to extinction. Such is the case in fact with the janitor fish, which a recent fisheries assessment
study has found to have invaded the Marsh.
C. Water Pollution
Figure 2J-2 shows that nine (9) major tributaries empty into the Marsh and thus contribute to its
pollution load, namely: Gibong River, Solibao River, Simulao River, Manat/Upper Agusan River,
Logom-Baobo River, Ihaoan River, Kawayanan River and Adgaon River. The potential sources of water
pollution in the Marsh are mining, agri-chemical run-off, domestic waste and sediments due largely to
2
riverbank erosion.
2
The Water Quality Management Program for the Agusan River Basin is discussed in this Master Plan in the
following chapters: IIIB (Chapter 7.0 and Appendix B) and as Chapter 2.0 in this Volume IV.
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Figure 2J-2
Major River Tributaries of Agusan Marsh
(i) Mining
There are three (3) mining areas that drain into the Marsh; namely, (1) Diwalwal in Monkayo; (2) the
eastern hills of Maco, Pantukan and New Bataan in Compostela Valley; and, (3) the Co-o-Sinug-ang-
Tinago-Masabong area (COSTMA) in Bunawan and Rosario, including a gold processing plant in San
Francisco, all in Agusan del Sur.
Mining and gold ore processing operations in these areas are largely unregulated and are known to use
mercury and cyanide in massive amounts. The possible concentration of Hg in sediments in the Marsh
over time is a cause for concern, since Hg is a heavy metal that readily adheres to sediments and may
be bio-accumulated in its food chain.
While periodic assessments have confirmed the seriousness of Hg contamination in tributaries

immediately draining these mining areas, the threat of Hg contamination in the Marsh has not been duly
studied. There has been no monitoring of water quality parameters, certainly none on Hg, within the
Marsh.
(ii) Agri-Chemical Run-off
The map also shows extensive agricultural areas devoted to rice, banana and palm oil plantations. The
agri-chemical run-off from these areas eventually finds their way into the Marsh. Incidents of fish kills
and poisoning of domestic animals have been reported by locals. However, these have not been
substantiated due to the absence of monitoring data and relevant studies.
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(iii) Domestic Waste
The absence of appropriate solid waste disposal and waste water treatment facilities in all communities
upstream of and within the Marsh is causing the spread of diseases from coliform and human waste
contamination.
The incidence of diarrheal diseases is rampant among Marsh occupants, many of whom heavily
depend on Agusan River for domestic water supply. Again, however, monitoring data on relevant water
parameters within the Marsh is wanting.
(iv) Sediments
The significant sediment load carried by the tributaries into the Marsh is aggravating the decline of
fisheries resources. Sediments prevent the penetration of sunlight thereby hindering the growth of algae
and thus limiting the food supply for fish population. At the same time, the possibility of Hg
contamination of these sediments due to mining is a serious concern as already mentioned.
D. Social Concerns
(i) Population Pressure, Poverty and Livelihood
Natural population increase coupled with uncontrolled in-migration continues to exert pressure on the
resources of the Marsh. This continues to worsen in the absence of a rational population program. The
increasing population pressure and the obvious lack of sustainable livelihood options to address the
stark poverty only serve to further hasten the ecological degradation and fragmentation of the Marsh.
(ii) Basic Health Needs
Most residents of the Marsh lack adequate potable water supply and sanitation facilities. Water from
rain collectors is never treated. During the drier months, when water delivery from more reliable sources
proves to be a strain on the household budget, the domestic water is sourced directly from rivers and
lakes. These water courses conveniently serve as public toilets in the absence of sanitary facilities at
the household level.
The health risk due to water contamination is serious, as indeed health data confirm. The absence of
sanitation facilities is aggravating the spread of schistosomiasis in irrigated rice cultivation areas.
Presently in the Basin, the highest incidence of schistosomiasis is found among rice farming
communities in Agusan del Sur. The provision of innovative solutions to these problems continues to be
a challenge.
E. Institutional and Management Issues
Community consultations and FGDs confirm that the following constitute the most serious institutional
constraints and management weaknesses that contribute to the ecological degradation of the Agusan
Marsh:
i. Poor public awareness and lack of appreciation of the ecological value of the Marsh
ii. Poor stakeholder participation in decision-making
iii. Weak planning, implementation and policy environment, as exemplified by the issuance of
conflicting and inappropriate tenurial instruments
iv. Overlapping mandates among institutions involved in the management of the area, as
exemplified by the duplication of functions between the PAMB and the Agusan Marsh Alliance
(AMA)
v. Poor knowledge/data base on which to base management decisions
1.1.3 Past, On-Going and Proposed Development Interventions
Several water-diversion structures have been undertaken and proposed; upstream of and within the
Marsh. These include flood diversion channels of the Department of Public Works and Highways
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(DPWH), hydropower projects of the Philippine National Oil Corporation (PNOC) and irrigation projects
of the National Irrigation Administration (NIA) and the Department of Agrarian Reform (DAR).
Any proposed water-abstraction scheme for irrigation, hydropower development and flood control may
have serious implications as to possible alteration of the Marshs hydrologic regime.
Thus, in any such project, measures must be in place to ensure that the wetlands life-sustaining
ecosystem and hydrologic functions are further enhanced instead of compromised. Also any proposed
irrigation expansion should not put the Marsh into greater risk of pollution from agri-chemical run-off or
increased spread of schistosomiasis and other water-borne diseases.
1.1.4 Trends and Internal/External Constraints
The prevailing trend characterized by unsuitable forestry programs, illegal or unsustainable resource
extraction, unsound agricultural practices, unregulated land conversion, insecurity of tenure, runaway
population growth, and uncontrolled in-migration are all antithetical to the protection of the ecological
integrity of the Marsh. Without sound integrated interventions to reverse this trend, the intrinsic hydro-
ecological values of the Marsh will continue to be compromised.
If left unaddressed, the continuing decline in Basin water quality due to pollution from mining,
agriculture, domestic waste and waste water and sediments will continue to threaten the natural
ecological, hydrologic, economic and social functions of the wetland.
Moreover, management and development of the Marsh will be further constrained if the present peace
and security problems as well as the externalities of Basin and country-wide political and economic
uncertainties prevail. The security risks in the Basin have to be addressed decisively if long-term
economic development options such as eco-tourism and the development of hydropower and other
resource-based industries including environmentally sound mine processing operations, for example,
are to be pursued.
1.1.5 Current Policy, Legislative, and Planning Frameworks
A. International Commitments
The Philippines is a signatory to several multi-lateral agreements in relation to the management of the
AMWS. These still need to be translated locally into frameworks of action and pursued in the overall
context of sustainable development (Agenda 21). Two (2) of these international initiatives are most
significant and are discussed below.
(i) Convention on Wetlands of International Importance (Ramsar, Iran, 1971)
The AMWS is of international importance and is included among Ramsar-designated sites. The Ramsar
Convention promotes the principle that wetland ecosystems are an integral component of the global
water cycle from which water resources are derived. It provides for the wise use of all wetlands and for
individual countries to nominate their significant wetlands for listing as wetlands of international
importance.
The principal expectation is that listed sites will be managed to protect the ecological character and
intrinsic features for which they were recognized. Any action that results in a deterioration of these
values is considered to be in violation of the treaty.
(ii) Wetlands Protocol (Paris, 1982)
The Paris Protocol places emphasis on the conservation of wetlands of international importance
especially as a waterfowl habitat. The Philippines has other international commitments to conserve
water resources and bio-diversity; and, protect endangered and migratory species, among others that
also relate to the management of the Marsh.
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B. Governing Philippine Legislations
The NIPAS Act (RA 7586, 1992) and its Implementing Rules and Regulations, namely DENR
Administrative Order (DAO) 92-25 constitute the basic national policy and legal framework for the
management of AMWS.
The NIPAS Act aims to protect important terrestrial, wetland or marine habitats of rare and endangered
flora and fauna species, bio-geographic zones and related ecosystems, by designating as Protected
Areas certain biologically diverse areas such as strict nature reserves, parks, sanctuaries, watershed
areas, protected landscapes and seascapes and natural biotic reserves, among others.
In 1996, the AMWS was designated as one of the components of the countrys integrated protected
area system by virtue of Presidential Proclamation No. 913.
Other local issuances bear on the management of wetland resources.
C. Responsible Institutions
(i) Multi-Sectoral Governing Board
The NIPAS Act places the Marsh under the direct management and oversight of the Protected Area
Management Board (PAMB).
The PAMB is an inter-sectoral, multi-stakeholder policy-making body chaired by the DENR-Regional

Executive Director. Its membership comes from the concerned Provincial Planning and Development
Council(s), municipal LGUs, barangays, indigenous communities, local NGOs and peoples
organizations (POs). The Protected Area Superintendent (PASu) staff serves as the Secretariat of the
Board. The PASu also acts as the chief administrative and regulatory officer to implement the PAs
management plan in the field.
(ii) Agusan Marsh Alliance
After the Conservation of Priority Protected Areas Project (CPPAP) ended, the Agusan Marsh Alliance
for Sustainable Integrated Area Development was created by virtue of an Executive Order issued by the
Provincial Governor of Agusan del Sur in 2004. The Alliance practically duplicates the mandates of the
PAMB, except that it covers the entire 13,000-ha watershed area that drain into the Marsh.
The Alliance has almost the same composition as PAMB, except that the Provincial Governor rather
than the DENR-RED chairs the Alliance, co-chaired by the Provincial ENRO. The Municipal Mayors of 8
(not 6) municipalities together with the PAMB Chairperson, representatives of the tribal datus of the
eight (8) municipalities, DENR-PASu, the four CENROs and the PNP sit as members.
The PPDO (not the PASu/PIU) serves as the Secretariat of the Alliance. A Technical Working Group
was also created under the EO to serve as the technical arm of the Alliance. The TWG is composed of
the Municipal ENROs and Municipal Planning and Development Coordinators (MPDCs) of the eight (8)
LGUs together with the PENRO, LGU-PENRO, PASu/PIU, PPDO and NCIP.
(iii) Government and Non-Government Agencies
At the national level, all NIPAS areas in the country are administered by the DENR through the Director
of the Protected Area and Wildlife Bureau (PAWB) and at the DENR regional level by the Regional
Technical Director for Protected Area and Wildlife Division (PAWD).
At the same time, the DENR-Forest Management Bureau, the National Water Resources Board
(NWRB), the Provincial/Community ENRO and the LGUs all have conflicting mandates over the
management of forestlands and water resources.
A&D lands in the Marsh are under the management of the Department of Agriculture (DA). The DA
currently implements programs providing production support, marketing assistance, micro-credit, post-
harvest facilities, research and development, agricultural extension, capability building and, more
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recently, bird flu monitoring through foreign-funded projects such as the WB-financed Mindanao Rural
Development Program (MRDP).
Some areas in the Marsh have been placed under the Comprehensive Agrarian Reform Program
(CARP). The DAR first made its presence felt in the Marsh during the implementation of the EU-
assisted Agrarian Reform Support Program (ARSP) until 2001. Other projects are on-going including
the JBIC-assisted Agrarian Reform Infrastructure Support Program (ARISP), AusAid-funded Philippine-
Australian Technical Support for Agrarian Reform and Rural Development (PATSARRD) and Mindanao
Sustainable Settlement Area Development Project (MINSSAD). These projects provide infrastructure
(farm-to-market roads and bridges, solar power generators, water supply, multi-purpose buildings,
schools and post-harvest facilities), resettlement, livelihood, institutional capacity building and credit
mobilization support to agrarian reform communities (ARCs). Through the IFAD-funded Northern
Mindanao Community Initiatives and Resource Management Project (NMCIREMP) DAR is currently
3
working with NCIP towards granting full tenurial security to indigenous communities of the Marsh.
The National Commission for Indigenous Peoples (NCIP) is responsible over indigenous communities
and their ancestral domains. The agency assists in the processing of (CADCs and CADTs as well as
the preparation of Ancestral Domain Management Plans.
Some national agency functions have been devolved to LGUs such as community-based forestry,
small-scale mining and watershed management. The Bureau of Fisheries and Aquatic Resources
(BFAR) and the LGUs have conflicting jurisdictions over the management of fisheries resources
including aquaculture. The Provincial Government of Agusan del Sur undertakes livelihood and
conservation projects with funding from the Philippine-Australian Community Assistance Program
(PACAP) and with technical advice provided by the international Volunteer Service Organization (VSO).
A number of non-government organizations (NGOs) are actively involved in various ways in the Marsh,
from hydrologic studies to research, organic farming, capability building and monitoring of illegal
activities, among others.
The apparent overlap if not unclear delineation of responsibilities as well as poor coordination among
implementing agencies has resulted to interventions that are often fragmented, piece-meal and
incongruous with the conservation priorities in the Marsh. Sometimes, conflicting interests have led to
serious misuse and abuse of the Marshs resources.
1.2 ASSESSMENT OF PRESENT AMWS MANAGEMENT PLAN (2001)
1.2.1 Basic Features
A. Scope
The AMWS is one of the 10 priority NIPAS areas in the Philippines for which management plans were
drawn up during the implementation of the CPPAP in 1994-2001. The Project was funded by the Global
Environment Facility (GEF) and the World Bank (WB). It was co-implemented by the DENR and a
national umbrella NGO organization called NGOs for Integrated Protected Area Project, Inc. (NIPA,
Inc.)
The AMWS Management Plan covers a total of 111,540ha, which includes practically all areas within
eight (8) municipalities of Agusan del Sur; namely, La Paz, Bunawan, San Francisco, Rosario, Veruela,
Loreto, Talacogon, Santa Josefa.
The Plan was to be implemented within a period of five (5) years from 2001 to 2006.
3
The NMCIREMP is earlier cited in the Thematic Report on IP Development (Chapter 6.0).
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B. Elements of the Plan
(i) Goals and Strategies
The AMWS Management Plan had (3) three goals: (1) to protect/conserve habitats and associated
species; (2) to improve local economy and tenurial security; and (3) to institutionalize PA management
system. These goals were translated into nine (9) strategies; namely:
1. IEC
2. Community Organizing and Empowerment
3. Capability Building for PAMB, PASu and the CPPAP Project Implementing Unit (PIU)
4. Designation of Management Zones
5. Formulation of Proposals
6. Designation of Tree Plantation Corridors (for community-based forestry)
7. Technology Transfer (timber processing)
8. Food Security Program
(ii) Health Program
Eco-tourism as a revenue generating option was explicitly endorsed in the Plan although the details of
implementation in support of the avowed management objectives were only haphazardly drawn.
(iii) Management Zones
The Plan divided the total area into seven (7) Management Zones; namely, 1) Strict Protection Zone, 2)
Multiple Use Zone, 3) Sustainable Use Zone, 4) Recreation Zone, 5) Cultural Zone, 6) Restoration Zone
and 7) Buffer Zone.
The Plan also described the function of each zone and prescribed the restrictions as well as activities
allowed. The criteria used for such zone classification and designation were not clear, however, and the
boundaries between zones were not actually delineated in the field.
(iv) Institutional Arrangements
The Plan upheld the institutional arrangements prescribed by the NIPAS Act, with the PAMB serving as
a policy-making body chaired by DENR-RED. The Board consisted of 76 members sitting en banc
representing six (6) LGUs, IP groups, NGOs and organized POs. The Project Implementing Unit (PIU)
headed by the PASu and in partnership with a local umbrella NGO (Karaga Biodiversity Linkages or
KABILIN) acted as the Secretariat of the PAMB. It was tasked with the implementation of the AMWS
Management Plan.
1.2.2 Status of Plan Implementation
Not surprisingly, the implementation of the AMWS Management Plan has become synonymous with the
implementation of the CPPAP. During the FGD, it was confirmed that five (5) years after formulation
many of the activities and programs outlined in the plan were not fully or satisfactorily implemented.
A. Specific Activities Completed or Sustained
(i) PA Management and Planning Activities
Some capability-building programs were undertaken to equip the PAMB, PASu and PIU to handle
planning and management responsibilities (lakbay-aral, trainings on bio-diversity monitoring, project
management, GIS, etc.) but these had limited impact.
The Management Information System (MIS) was also established.
To some extent, the PASu was able to sustain a number of activities, a few of which are still on-going
with limited funding from DENR. These include PAMB meetings, biodiversity monitoring, IEC and PA
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protection (patrol monitoring and apprehending illegal activities with the help of community volunteers
from 59 POs).
(ii) Boundary Demarcation
The delineation on the ground of the boundaries of the PA was contracted out in 1998 to a private
surveying firm. Indecision as to the actual scope of the PA (from 19,000ha to 110,000 ha) delayed the
delineation significantly. Finally, the delineation of the proposed 40,868-ha expansion was completed in
2005. As already mentioned, the actual extent of the seven (7) management zones was not at all
delineated on the ground.
(iii) Infrastructure Support
Some infrastructure facilities were constructed to support PASu activities as part of the
institutionalization of the PA management system including the PASU Office, Visitor Center, PAMB
Building, Ranger Stations and a watch tower in Lake Tikgon. A Level II potable water system (rain
collector) was also developed for wetland communities.
(iv) IEC
A 5-year IEC plan was crafted but it was only partly realized due to limited funds and personnel support.
The completed activities include installation of billboards, conduct of house-to-house campaigns, group
discussions, symposia and community advocacy through radio programs in partnership with the
academe.
(v) Community Organizing and Empowerment
A good number of POs, both consisting of IP groups and tenured migrants were organized and
federated at the municipal level. Community-based environmental protection volunteers (Bantay-Ilog)
were also organized in areas considered as hotspots of illegal resource extraction activities.
(vi) Livelihood Projects
Financial assistance was given to 39 POs to implement various livelihood projects, on the condition that
about half of the released amount will be paid back and deposited with the IPAF to sustain the financial
needs of the PA. The livelihood projects ranged from provision of fishing nets, farm implements and
farm inputs; hog raising; nursery and rehabilitation of lumbia plantation; dried fish processing; and novel
innovations such as mobile rice and corn mill (i.e., some of these were even floating)
The POs were also provided with trainings on enterprise development, leadership, livelihood
development and financial management, among others.
(vii) Tenurial Security
Under CPPAP, the indigenous communities were assisted in the processing of tenurial claims (from
CADCs to CADTs) and in the preparation of Ancestral Domain Strategic Development and Protection
Plans (ADSDPP).
Tenured migrants, on the other hand, were assisted in preparing their community-based Natural
Resources Management and Protection Plans (NRMPP).
B. Lessons Learned vs. Benefits Gained
As explained above, some of the obvious benefits gained from the CPPAP experience, besides the
formulation of the first ever Management Plan for the wetland, are the initiation of institutional
strengthening and forging of inter-agency collaboration towards protecting the Marsh, tenurial
processing, improving access to livelihood opportunities and awareness raising.
The FGD results confirmed that the CPPAP provided a wealth of lessons from which the next
Management Plan formulation and implementation could improve upon. Some of the more poignant
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ones are discussed below. In particular, the CPPAP experience highlighted the need to put in place
some mechanisms by which the initial gains made in the attempt to operationalize the Management
Plan could have been sustained.
(i) Institutional Capability
The PASu/PIU Office and the project coordinators did not have adequate personnel with sufficient
technical capability to implement the Plan. It was highly dependent on CPPAP project funds and the
expertise of consultants and NGOs commissioned by the project.
Thus, after the decommissioning of CPPAP in 2001, the sustaining financial resources, human
resources, and equipment necessary to implement the Plan were lacking in the PASu/PIU. Field and
office equipment (e.g., patrol boats, computers and vehicles) soon needed major repairs. Worse, most
of the PASu/PIU technical personnel and staff were either terminated or assigned to other offices.
There is inadequate human resource support and technical capability for data management. After
CPPAP decommissioning, some of the valuable data on AMWS were lost due to the fast turn-over of
personnel assigned to the PASu.
(ii) Unsustainable Livelihood Projects
The Management Plan called for establishment of tree plantation corridors, supposedly for sustainable
community-based forestry side by side with a support program to transfer the timber processing
technology.
The designated tree plantation corridor conflicts with some strict protection areas and it may be just as
well that the only attempt made at community-based forest management (CBFM) is the establishment
of a small lumbia nursery and rehabilitation of a limited area of lumbia forest. This venture, too, failed to
sustain itself.
Many of the livelihood projects pursued were either resource extractive (e.g., provision of gill nets and
fish processing) or incompatible with the intent to protect the Marsh from further degradation (e.g.,
provision of farm implements, inputs and floating rice/corn mill).
As in most failed livelihood programs, the dole-out mentality prevailed and prevented many of the
projects from taking off and becoming sustainable. Moreover, inefficiency in running the livelihood
program (by the host NGO) resulted in the withholding of project funds by the funding agencies and
caused much delay in project implementation.
(iii) Mishandling of Integrated Protected Area Fund (IPAF)
Repayments for soft loans used by POs for livelihood were supposed to revert back as seed money
and held in trust under the IPAF to sustain management activities in the PA. This did not happen,
though, and by the end of CPPAP, neither funds nor financial records were turned over to the PAMB or
PASu.
For lack of adequate understanding and clear guidelines, the eco-tourism program was a flop and failed
to generate the income that was expected to provide its own operating funds much less contribute to
IPAF coffers.
(iv) Community Empowerment?
That there was a genuine forged partnership with grassroots stakeholders remains doubtful, according
to FGD participants who share the following common observations:
1. Inadequate leadership among POs

2. Abuse of resource continues
3. Absence of sustained livelihood/project continuity
4. POs/communities were poorly capacitated to manage their common resource
5. Improper waste disposal
6. Rampant illegal activities
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7. No community participation in protection and conservation
(v) Violation of Management Zone Restrictions
Since management zones were not demarcated on the ground, it proved very difficult to enforce the
guidelines and restrictions. Hence, human encroachment and economic activities continued even in
areas designated as strict protection zone.
(vi) First Things First
Some of the problems encountered were inherent in the poor timing and procedural lapses committed
in the delivery of the CPPAP. For instance, some development interventions (e.g., IEC, livelihood) were
already being implemented while the plan formulation was still in progress.
Development interventions should have been introduced later after plan formulation to ensure that
projects were compatible with the overall management objectives and strategic framework.
C. Critical Shortcomings/Gaps in the Plan
The FGD revealed that the following are perceived to be among the critical shortcomings and gaps in
the present Plan which should be addressed during the next planning stage:
(i) Bottom-up Approach
Since the planning process failed to start with the formulation of local strategic plans, the local agenda
failed to be integrated into the mainstream Management Plan.
(ii) Fund Sourcing and Mobilization
Fund sourcing and mobilization was not an inherent component of the present Plan. This would have
ensured sustainability of the programs.
(iii) Simplified Zoning Scheme
The designated management zones covered 111,540ha or the entire area within the eight (8)
municipalities that comprise the AMWS. This does not coincide with either the actual scope of the
protected area or the actual extent of inundation of the wetland.
Moreover, the zoning scheme adopted in the Plan is overly complex with so many zones to manage.
The distinction between zones appears to be hazy and tended to be confusing. A simplified scheme of
designating management zones would have been more practical, with a minimum classification that will
ensure compatibility of zone designation with management objectives.
Similarly, the guidelines were not quite clear-cut and failed to take present realities into account, e.g.
strict protection areas already encroached by human activities, etc. Thus, the guidelines may be rather
difficult to enforce.
(iv) Data Management
The data base to begin with was insufficient. A thorough resource inventory using international
guidelines was not done and therefore there was no complete understanding of the actual state of the
Marshs ecological health.
The Management Plan thus failed to identify the key and critical areas that really needed managing.
Data collection and management was inadequate and did not help facilitate management decision.
Regular periodic monitoring was also inadequate and there was hardly any mechanism to assess
whether management objectives were being met.
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(v) Integration vis--vis Broader River Basin and Local Planning Objectives
The current AMWS Management Plan failed to integrate management concerns vis--vis a broader
river basin context. For example, water quality is a major issue right across the Basin and the effects of
pollutants coming from sources outside of the Marsh (e.g., mining in Diwalwal and agri-chemical run-off
from extensive banana plantations and rice-growing areas in the upper catchment) have management
implications for the Marsh.
In the same breath, the LGUs and regional planning units have their own legitimate development
agenda, the pursuit of which impinges on the Marsh and vice versa. The present Plan failed to consider
such geo-political realities and work towards harmonizing the elements of the Plan with local
development objectives to ensure sustained implementation, public participation and local ownership.
This often got in the way of collaboration towards protecting the Marsh due to the perception that
mandates of local Chief Executives were being encroached upon and the principle of decentralization,
pursuant to the Local Government Code, was being violated.
1.2.3 Post-AMWS Plan Developments and Planning Implications
A. Proposed Expansion of the PA
The proposed expansion of the PA from 19,000ha to 40,000ha has implications for the next wetland
planning exercise as to re-inventorying Marsh resources, redefining the management zones and
reformulating the corresponding guidelines.
The expansion would open more doors to wider public access and could increase the rate of in-
migration. More seriously, wider coverage will necessitate bigger budgets, human resource
requirements, technical expertise and equipment support. These are some aspects that the present
PAMB and PASu capability can not guarantee.
It was already pointed out (Section 7.1.2) that there is a problem of fragmentation due to the faulty
delineation of the proposed expended scope of the protected area under House Bill 1953.
It must be emphasized at this point that if Management Planning is to be done right, this demarcation
must be corrected first by ensuring that the planning unit of the Marsh is technically intact rather than
fragmented.
B. ASEAN Peatland Management Initiative (APMI)
The APMI is a regional cooperation among 10 countries including the Philippines to promote and
enhance conservation and sustainable use of peatlands in Southeast Asia. The initiative was
4
spearheaded by the Association of Southeast Asian Nations (ASEAN) Ministerial Meeting on Haze in
June 2002. Owing to the implications for sustaining wetland habitats and their hydro-ecological, bio-
diversity and carbon storage functions, the wise use of peat lands is also relevant to and is being
supported by the Ramsar Convention on Wetlands, the Convention on Bio-diversity (CBD) and the UN
Framework Convention for Climate Change (UNFCCC).
The Rehabilitation and Sustainable Use of Peat lands in Southeast Asia is a regional undertaking to
support the APMI.5 The Philippines through the DENR-PAWB is one of the participating countries in
this endeavor. One of the projects pilot sites is the Agusan Marsh, which may well hold the largest area
of peat land in the country. Two (2) areas of peat land within the Marsh have been confirmed one in
Bunawan and the other in Caimpugan in San Francisco. The latter exhibits the characteristics of a peat
dome, the first ever to be described in the Philippines. The Terminalia copelandi/ Metroxylon sagu
forests in the northwest portion of the Marsh may be the site of another peat land.
4
Regional grouping addressing the issue of forest and peat fires in the region.
5
It is jointly funded through PDF-funding by the Global Environment Facility (GEF) with the International Fund for
Agriculture Development (IFAD) as the GEF agency, and the ASEAN Secretariat and Global Environmental cemter
(GEC) as the executing agencies.
Annex 2J-15/28
Final Report
Among the activities undertaken are local stakeholder consultations and site assessments and a
National Action Planning (NAP) Workshop for the Sustainable Use of Philippine Peat Lands. The key
activities identified in the NAP are awareness raising, capacity building, inventory/assessment and
creating an institutional framework. To this end the PAWB is now forging a partnership with the
Philippine-Australian Cooperative Assistance Programme (PACAP), including possible piloting of an
eco-tourism project in Caimpugan.
C. Proposed World Heritage Site
Some civil society groups and advocates have been lobbying with the United Nations Educational,
Scientific and Cultural Organization (UNESCO) for designation of the Agusan Marsh as a World
Heritage Site in recognition of the wealth of socio-cultural and natural endowments that may be
considered of outstanding value to all humanity. World Heritage sites belong to all peoples of the world,
irrespective of the territory on which they are located, as embodied in an international treaty called the
Convention concerning the Protection of the World Cultural and Natural Heritage of 1972.
1.2.4 Need for Updating of AMWS Management Plan
A. Policy/Philosophy
There is an urgent need now to update and amend the management plan for the AMWS. It is timely to
do so after five (5) years since its preparation in 2001 and in the in the light of the proposed expansion
of the protected area.
The Agusan Marsh is Ramsar-designated wetland. Hence, the management plan should be updated in
accordance with international best practice and in accordance with guidelines prescribed under the
Ramsar Convention on Wetlands and by its attached agencies such as Wetlands International.
The Parties to the Ramsar Convention in Iran (1971) adopted the philosophy that wetland ecosystems
6
are an integral component of the global water cycle from which water resources are derived.
Consistent with this, the Agusan Marsh Management Plan should be guided by the following Ramsar
principles and ensure that the wetlands resources are:
i. Used sustainably (The Principle of Wise Use)

ii. Developed cautiously (The Precautionary Principle)
iii. Managed holistically vis--vis broader river basin, sectoral and geo-political objectives (The
Principle of Integration)
iv. Governed broadly (The Principle of Participation and Consultation)
B. Objectives
The objectives for managing the Marsh should consider the priorities that matter to the most number of
stakeholders, yet taking care to ensure that the overall goal is to protect and maintain its intrinsic
attributes, ecological character and core values in a manner consistent with the Ramsar Conventions
terms of agreement.
Mindful of this, the Management Plan for the Marsh should include, at the very least, the following
crucial objectives:
i. Protection and conservation of critical habitats and biodiversity

ii. Restoration of critically threatened or degraded areas
iii. Maintenance, if not enhancement, of the ecological character and core values (food web,
climate regulation, etc.) of the wetland
iv. Maintenance, if not enhancement of the hydraulic function (flood attenuation and sediment
retention, carbon storage, food web, etc.) of the wetland, i.e., making sure that adequate water
of the right quality at the right time and in the right place is available to support its life-sustaining
functions;
v. Protection and conservation of cultural heritage; and
6
The Ramsar Convention Manual, 3rd edition, April 2004. http://www.ramsar.org
Annex 2J-16/28
Final Report
vi. Sustenance of economic goods, services and livelihood
C. Core Data Collection and Updating
The AMWS Management Plan should be formulated based on adequate characterization of the wetland
complex as to its physico-chemical, biological and socio-economic environment as well as the
identification of the factors that critically influence the changes in its ecological character. This would
entail collection and synthesis of relevant updated data and information that will be useful for setting
priorities and establishing management objectives.
For Ramsar-registered sites, there are internationally recognized guidelines for data collection and
7
management. The Manual for Inventory of Asian Wetlands would be a useful guide for inventorying
Agusan Marsh, according to international best practice.
The use of time series data from radar and satellite imageries would be a more efficient way to
generate appropriate baseline information such as changes in flood extent, vegetation status and land
cover over time.
A hydrologic model of the wetland that could predict flood behavior as well as sediment and pollution
transport would also be useful in determining the water requirements (as to both quantity and quality)
for maintaining ecological integrity as well as enhancing the wetlands hydrologic and sediment retention
functions.
All data should be properly stored in a GIS facility to serve as a MIS. This knowledge base will facilitate
retrieval and feedback into monitoring and decision-making to ensure that management objectives are
being met, and that development interventions do not impinge on the ability of the wetlands to support
life.
D. Zoning System
(i) Zone Re-classification
A new zoning scheme will be necessary, especially in the light of the proposed expansion of the PA.
The designation of management zones should be in accordance with international best practice. The
Ramsar database on the web has provided adequate examples. Classification of the zones need not be
cumbersome; it should be as simple and practical as possible without compromising objectivity, given
present technical and funding limitations.
The criteria for designating the zones should be appropriate as to size, bio-diversity, naturalness, rarity,
fragility, typicality and potential for restoration or improvement.
In like manner, the guidelines and restrictions should be as clear-cut as possible for the purpose of
achieving the avowed objectives of the Management Plan. Most of all the boundaries of management
zones should be concretely delineated and ground-truthed through proper field surveys.
(ii) Management of Critical Zones
It may be necessary to prepare a separate Management Plan for each critical zone in the wetland. The
peat land(s) are a case in point.
Peat lands are wetland ecosystems that are characterized by the accumulation of organic matter called
peat which derives from decaying plant materials under highly saturated reducing environment. Peat
lands are of special interest because of the unique hydro-ecological values attached to them in local
and global terms.
7
Finlayson C.M., Begg G. W., Howes J., Tagi K., and Lowry J. A. Manual for an Inventory of Asian Wetlands:
VVersion 1.0, Wetlands International Global Series 10. Kuala Lumpur, Malaysia.
http://www.wetlands.org/awi/default.htm
Annex 2J-17/28
Final Report
Peat lands are the single largest terrestrial carbon sink, storing more carbon than all the vegetation of
the whole world and 75% of the carbon sequestered from the atmosphere. Therefore they play a very
significant role in regulating global greenhouse gas emissions and climate change.
Peat lands also have naturally high water holding capacity that helps regulate stream flows and hydro-
geologic regimes and therefore significantly influences the global water cycle besides effectively
attenuating downstream flooding. Owing to their ecological character, peat lands are a refuge of some
of the rarest and most unique species of flora and fauna that contribute significantly to the earths
genetic pool.
Initial assessment indicate that of the two confirmed peat land deposits in Agusan Marsh, the
Caimpugan peat dome may be the only one of its kind left in the Philippines. Its forest cover is still
relatively intact and would definitely need preserving at all cost. On the other hand, the vegetation of the
peat land in Bunawan has been cleared and burned for rice production but later abandoned when it
proved unproductive.
The areas occupied by the Bunawan peatland is now classified as A and D, hence it may be difficult to
manage it later for purposes of restoration. However, the Caimpugan peat dome is within an area
classified under the present AMWS Plan as strict protection zone.
Still, the possibility of these areas being utilized later as expansion areas for agricultural (palm oil)
plantations and industrial forestry (falcata, acacia mangium and other commercial tree species) cannot
be discounted. Even the Terminalia and sagu forests which may be potential peat land sites are now
encroached upon by human activities, having been generally considered as A&D lands.
There is now an urgent need to draw up appropriate guidelines and special management arrangements
and establish demarcation points on the ground. Unless this is done soon, this significant expanse of
peat forest may go the way of degraded peat lands in Indonesia, Malaysia and Brunei, which are
proving to be very difficult and costly to restore.
The IFAD-GEC funded initiative in the pilot study of the peat lands of Agusan Marsh is a good place to
start. The PAWB and the PAMB/PASu should move in parallel direction and find complementation in
this undertaking and in the activities that should lead to the eventual updating of the AMWS
Management Plan.
Ideally, pre-planning works should begin with the correction of the proposed scope of the expansion of
the protected area in order to preclude further fragmentation, as reiterated earlier. The resource
inventory using Ramsar-prescribed guidelines could be done side by side with the planned peat land
assessment. Further partnerships could be forged with other government agencies and civil society
groups to strengthen database build-up and awareness raising that will pave the way for meaningful
participatory planning for both initiatives.
E. Institutional Framework
(i) Appropriate Management Structure
The Draft AMWS Law (House Bill 1853) proposes to reconstitute the PAMB by including the Provincial
Governor as Co-Chairman and all Municipal Mayors as members representing the LGUs that comprise
the expanded AMWS jurisdiction.
The bloated membership of PAMB will be downsized by having only one (1) barangay captain and one
(1) tribal leader per municipality, to be selected from among barangays and tribal communities of the
component LGU, respectively. NGO and civil society participation will also be limited to a maximum of
six (6) representatives.
This proposed PAMB composition is a response to the clamor to rationalize and strengthen the present
management structure by accommodating representation by key legitimate stakeholders. This,
hopefully, will ensure integration of local initiatives in harmony with PA-wide objectives, engender wider
ownership of the Plan and encourage sharing and optimization of resources and technical expertise
Annex 2J-18/28
Final Report
towards long-term sustainability. This will also eliminate the duplication and overlapping of functions as
well as the protracted manner of implementing interventions in the wetland.
The reconstituted PAMB should work closely with the proposed Agusan River Basin Organization (i.e.,
ARBA) to address integration concerns vis--vis wider basin-wide objectives such as water quality and
watershed management.
(ii) Community Participation
A key element in sound wetland management is the involvement not only of the resource planners but
also of the community stakeholders who comprise the resource users. For this process to be
meaningful there is a need to build public awareness of the value of ecosystem services and how the
ecosystem health is influenced by the communitys day to day activities that impact the resource.
The decision-making process needs to be defined that establishes the desired ecological character of
the wetland. In this way, policies, legislation, and decisions that support the allocation and use of
wetlands resources will be better understood and more readily accepted.
Consensus building will be enhanced by encouraging grassroots stakeholder participation throughout

the management cycle, from data collection to planning implementation and monitoring. There roles
and responsibilities of each stakeholder group should be clearly agreed upon at the outset. This will
reinforce ownership of responsibility over the ecological state of common resources and sustain interest
in tracking the progress towards achieving the shared aspiration to conserve the goods and services
that these resources provide.
1.3 PROPOSED INTERVENTIONS
1.3.1 Priority Interventions
A. Criteria for Prioritization
The interventions described below were identified during the FGD in February 2006 and reiterated
during the basin-wide public consultation in June 2006 to address the most crucial management issues
and ecological threats concerning the wetland.
The most urgent task is the formulation of AMWS Management Plan, which should be implemented
over the next five (5) years from 2007-2011. The next priority interventions matter to the most number
of wetland stakeholders and include basic water-related projects that are linked to the basin-wide
development programs being proposed under the Master Plan. The public access project is a long-term
option that may be pursued up to year 2020.
Table 2J-1 summarizes the proposed interventions for managing AMWS, including the institutional and
regulatory framework, state of present data and data needs and the strategic measures required in
8
implementing them.
8
This matrix is first presented as one of the Goal Matrices under RBO Formation and Development (Appendix C of
this Volume IV).
Annex 2J-19/28
Agusan River Basin Master Plan ANNEX 2J
Final Report
Table 2J-1
Priority Interventions for the Management of Agusan Marsh and Wildlife Sanctuary (AMWS), ARB Master Plan
Priority Intervention Institutional Policy and Regulatory State of present data and Strategic measures to improve Other Remarks
Responsibility Framework data needs planning and implementation
(1) Updating/ PAMB/PASu RA 7586 (1992) - National Data inadequate and Resource inventory using Manual Congress passed House Bill
Reformulation of Integrated Protected Area outdated for Inventory of Asian Wetlands, as 1953 (Draft AMWS Law)
DENR-PAWB
AMWS Systems (NIPAS) Act and prescribed by Ramsar Convention recently, which is now being
Agusan Marsh Needs sufficient
Management Plan its IRR (DAO 92-25) on Wetlands and Wetlands deliberated in Senate. The Bill
Alliance updated data and
International proposes to expand the
RA 9147 (2001) - information based on
protected area of the marsh
Philippine Wildlife minimum required to Hydrologic Modeling of flood and
from 19,000 ha to 40,000 ha.
Resources Conservation characterize Ramsar- pollution load (especially mercury
The proposed expansion has
and Protection Act designated sites. and sediments)
serious implications in terms of
Rezoning/Delineation of rezoning and management of
Management Zones and formulation the PA. There is an urgent
of appropriate guidelines and need to redefine/ re-delineate
restrictions for each zone and rationalize the proposed
Formulation of Communication, expansion area, since it
Education and Public Awareness reinforces the fragmentation of
(CEPA) Plan in accordance with the wetland and may prove
Ramsar Guidelines even more difficult to manage,
Legal requirements: adoption of considering inadequacy of
AMWS Management Plan as a legal technical and resource
instrument capability of present
institutions.
Formulation of Monitoring Plan in
accordance with Ramsar Guidelines
(2) Water Supply LGUs PD 1067 (1976) Data inadequate and Innovative solutions to address water Particularly in relation to the
and Sanitation National Water Code outdated, if not non- and sanitation needs in the wetland basin-wide control of water-
existent (e.g.: floating water tanks and related diseases such as
PD 7160 (1991) Local
sanitary toilets; proper rainwater diarrhea and schistosomiasis
Government Code Needs updated data on
domestic water supply treatment and storage)
sources, availability and Should go hand-in-hand with the
potability status Health Education/ IP Development
/Population Programs, especially for
IPs, women and children under
Social Component
(3) Water Quality DENR-EMB RA 9275 (2004) Clean Water quality data in See separate report on Framework To be undertaken in relation to
Management Water Act the wetland non- for Water Quality Management broader basin-wide context vis-
existent -vis pollution from mining,
RA 9003 (2000)
palm oil industries, agri-
Ecological Solid Waste Needs periodically
chemicals, domestic waste and
Mgt. Act collected baseline data
soil erosion/ sedimentation/
DAO 34 and 35 not only of regular
siltation.
National Water Quality water quality
parameters especially
Annex 2J-20/28
Final Report
The twelve criteria listed below guided the selection of the above-listed interventions in their order of
priority:
i. Priorities that mattered to the most number of stakeholders based on various public
consultations, especially Needs Assessment in October 2005, the Focus-Group Discussion
(FGD) of February 2006 and the Public Consultation of June 2006.
ii. Compatibility with the countrys commitment to Ramsar Convention principles aimed at
conserving and protecting the inherent ecological character and values of the Marsh
iii. Effectiveness of intervention in addressing issues and threats to the ecological integrity of the
Marsh
iv. Potential to enhance the ecological values and hydrologic function of the Marsh
v. Potential to enhance social and economic conditions by providing sustainable livelihood to
wetland communities and improving their access to basic goods and services
vi. Technical and economic feasibility
vii. Potential to resolve tenurial and common resource use conflicts
viii. Potential to preserve cultural heritage and achieve cultural integration in harmony with the
natural attributes of the Marsh
ix. Social acceptability
x. Integration and harmony with broader basin-wide objectives
xi. Potential to strengthen institutional capability to manage Agusan Marsh
xii. Potential to improve knowledge base for informed decision-making and effective management
of the Marsh
B. Nature of Interventions
It is high time to formulate a new AMWS Management Plan; the existing management plan expired
early this year. This project is especially crucial in the light of the proposed expansion of the protected
area.
However, care must be taken to ensure that the Management Plan will cover the entire wetland
complex instead of only the currently proposed 40,000-ha expanded area of the AMWS. Based on
recent satellite images, this involves some 56,000ha, more or less, corresponding to the inundated area
that, technically speaking, represents the actual extent of the wetland.
The PAMB/PASu will spearhead the actual plan formulation. This should be done through a series of
consultative planning workshops to be attended by legitimate stakeholders consisting of the whole
range of planners and resource users, especially the Marsh communities.
The AMWS Management Plan will be a self-standing plan but will take into consideration local, regional
and basin-wide development agenda wherever integration is called for and where these support the
overall goal of protecting the ecological integrity of the Marsh. It will be a rolling plan and will be
reviewed every five (5) years.
The formulation and initial implementation of the Management Plan during the first 5-year planning
cycle is best undertaken through a Technical Assistance (TA) funded by foreign funding institution(s).
This TA will at the same time pave the way for strengthening of the technical and institutional capability
of the planning and implementing agencies, namely the PAMB, PASu, DENR and the concerned LGUs
including the grassroots communities who should be actively involved in managing the Marsh, as
explained below.
The following strategies and/or activities will be an inherent part of the Plan formulation and
implementation.
(i) Capability Building
The reconstitution of the PAMB as proposed in the Draft AMWS Bill is a move in the right direction to
improve capacity and streamline institutional arrangements to manage the Marsh. This, however, will
require the investment of sizeable financial and human capital. The national government should be
prepared to earmark funds to hire and train capable technical and support staff to man the PASu Office.
Annex 2J-21/28
Final Report
Agreements on institutional roles should be reached by consensus within the context of PAMB as
reconstituted, to avoid duplication of functions. As proven by the experience in other NIPAS areas,
workable arrangements should be explored which would allow greater involvement in planning and
management by local chief executives of concerned LGUS to ensure the integration of wetland
objectives into local development agenda and vice versa. Shared responsibility should also include
mechanisms to sustain management efforts through pooling of human, financial and technical
resources.
The capability of these offices and those of other concerned agencies including DENR-PWB/PAWD,
LGUs, POs and the grassroots communities need to be strengthened in the areas of:
i. Basics of management of Ramsar-designated wetlands;

ii. Wetland resource inventory;
iii. MIS and hydrologic modeling;
iv. Communications, education, and public awareness (CEPA)
v. Monitoring; and
vi. Management of public access program
These will be accomplished through basic technology transfer and hands-on trainings in these aspects
of management planning and implementation by way of a grant-funded TA and/or as part of the job
contracts, as will discussed later.
The training on MIS and hydrologic modeling will be provided under the RBO Program on capacity
building in Databanking and GIS-Based Decision Support System.
The AMWS Management Plan will be formulated through a series of stakeholder consultative
workshops, which are meant to promote local participation and ownership of the Plan.
(ii) Resource Inventory and Assessment
The first step in plan formulation is updating the existing data and information on the ecological
character of the Marsh to a level-- i.e., according to core or minimum data sets-- required by
international standards for Ramsarregistered sites. This will necessitate conducting a basic resource
inventory and assessment using the Manual for the Inventory of Asian Wetlands recently drawn up by
the Wetlands International (WI), now readily downloadable from the web.
Resource inventory will be greatly aided and facilitated by the use of remotely sensed data, hence it is
recommended to procure radar and land satellite images.
It would be advantageous to dovetail with this resource inventory the proposed resource assessment of
the Caimpugan Peat Dome under the ASEAN Peat Land Management Initiative. This will be done in
coordination with the DENR-PAWB and the partner agencies under this initiative.
At the same time, a socio-economic survey among the inhabitants of the Marsh is proposed to be
undertaken in parallel with the resource inventory. An NGO or a local university may be commissioned
to undertake the socio-economic survey.
(iii) Zone Re-classification and Ground Demarcation
With the results of the inventory, a simplified zoning scheme should be drawn up based on appropriate
classification criteria along with corresponding management guidelines and restrictions for each zone.
Demarcation of the zone boundaries on the ground should immediately follow. Survey and zone
boundary demarcation may be contracted out to a local surveying firm.
Some critical areas such as the Caimpugan peat dome may require further delineation to establish
actual limits and ascertain appropriateness of zone designation.
Annex 2J-22/28
Final Report
(iv) Management Information System (MIS) and Hydrologic Modeling
The first planning cycle will be crucial to the proper collection of essential data, especially on hydrology
and water quality of the Marsh. A minimum of 5-year regular data collection program will be necessary
to establish rainfall pattern, flow conditions and changes in critical water quality parameters. This will
pave the way for the eventual construction of a Hydrologic Model for the wetland using GIS facility, with
the help of remotely sensed data from available, time series satellite and radar images and aerial
photographs.
A Hydrologic Model will help provide better understanding of the hydro-ecological character of the
wetland and would greatly facilitate decision-making. The model should be able to simulate flood
events, sediment transport and pollution load-- particularly of Hg and other heavy metals in both water
and sediments-- with changing flow conditions over time. Hydrologic modeling will naturally require
highly skilled personnel, financial resources and appropriate equipment.
Over the long term, the model should be able to predict and alert management to any alteration in the
hydrologic regime that may potentially compromise the ecological functions of the wetland.
As more information becomes available over time, the initial database could be built up towards
eventual establishment of the wetlands MIS.
The databanking and hydrologic modeling will be undertaken as part of the centralized management
function of the River Basin Organization.
(v) Communication, Education and Public Awareness (CEPA) Plan
An enhanced program to improve awareness and encourage exchange of information with and among
Marshland communities will be necessary if they are to meaningfully participate in the planning process.
This program, initially, could build and improve upon the existing IEC activities that began under the
CPPAP.
Eventually this program should evolve into a continuing and long-term CEPA Plan crafted according to
Ramsar guidelines, to be targeted at different actors and resource users in the wetland.
The initial CEPA Plan implementation will include advocacy activities, the primary purpose of which is to
lobby for the:
i. Inclusion of the protection of AMWS in public school curriculum; and,

ii. Adoption of the AMWS Management Plan as a legal document, probably through a provincial
ordinance (to be elaborated below)
To this end, partnerships may be forged with other line agencies, civic groups, business sector, the
academe and the grassroots community. The CEPA Plan formulation and initial implementation could
be contracted out to a local consulting firm, university or NGO.
(vi) Monitoring
A continuing periodic monitoring program that is consistent with Ramsar guidelines should be put in
place. Results should immediately feed back into the MIS to track changes in the ecological character
of the wetland and assess whether management objectives are being met.
Again, a local university, research firm or NGO may be commissioned to formulate and initially
implement the monitoring plan.
(vii) Legislative/Legal Requirements
A legal imprimatur will be necessary so that the Management Plan could be effectively implemented
and its accompanying guidelines and restrictions fully enforced. The Plan should be adopted as a legal
document, possibly by virtue of a local legislation (say, a provincial ordinance) or through other
appropriate legal channels, with the full support of local chief executives.
Annex 2J-23/28
Final Report
(viii) Management Plan for Caimpugan Peat Dome
Based on the resource inventory, a separate management plan for the peat areas, notably the
Caimpugan Peat Dome, will be prepared as a sub-set of the AMWS Management Plan. This will be
necessary to emphasize the critical protection status of the pea land. This will be done in coordination
with the on-going APMI-supported peatland management program of PAWB but will not be funded
under this project.
C. Projects Linked to Basin-Wide Priority Programs 9
Some of the most urgent interventions in the Marsh are best undertaken in the context of integrated
basin-wide priority agenda within the next 15 years. These include the following programs.
(i) RBO Development
As already mentioned, the data collected during the initial AMWS planning cycle will be stored in a
centralized GIS-based data banking system. Along with the 5-year hydrologic and water quality data,
these will be used eventually for constructing a hydrologic model of the wetland.
The MIS for the wetland is inevitably linked to establishment of a Data-Banking and GIS-Based
Decision Support System and hydrologic modeling project under the RBO Formation and Development
Program.
(ii) Water Resources Development
The provision of adequate potable water supply and sanitation facilities is top priority to Marsh
inhabitants, who are forced to rely on Agusan River for both domestic necessities. However, the
availability and potability of drinking water supply from underground or other alternative sources have
not been adequately studied. The same is true with innovative solutions to address sanitation-related
health problems.
A water supply and sanitation (WATSAN) program for the wetland has been drawn up, which should be
implemented alongside a Health Education program targeted especially at IPs, women and children,
who are more vulnerable. This initiative is undertaken under the Water Resources Development
Program of this Master Plan.
(iii) Water Quality Management
The water quality management framework has been drawn up separately, with specific priority
elements within it that are particularly relevant to the Marsh. This includes the management of pollution
from industries (especially Hg from mining), agriculture, aquaculture and domestic waste.
Other priority interventions in the wetland such as hydrologic modeling, water supply and sanitation,
management of riverbank erosion and sedimentation are an integral part of the basin-wide program for
managing water quality.
(iv) Watershed Management
To manage river bank erosion and sedimentation in the Marsh a separate program has been drawn up
under the Watershed Management Program for the integrated basin-wide management of forest and
land resources. The program specifies appropriate re-vegetation measures and land management
prescriptions to reduce run-off velocity and address river bank degradation.
In support of this, livelihood development projects for the wetland are being proposed as part of the
Watershed Management Program. These should help ease the pressure on dwindling forest and
riparian resources and thereby avert further degradation and fragmentation of the Marshs ecosystems.
9
Programs referred to here are in the accompanying thematic reports to this Volume IV.
Annex 2J-24/28
Final Report
Livelihood options are needed which would not compromise the ability of the wetland to supply the
economic goods and ecological services that have sustained the life of its inhabitants for generations.
Regulation of economic activities according to a zoning plan will be an intrinsic part of wetland
management, as proposed in the preceding discussions. However, a suitable livelihood program should
be pursued over the long term, one that respects the cycle of resource production and renewal in the
Marsh and is compatible with the conservative patterns of resource use long held by wetland dwellers.
At the same time, a fitting review of all conflicting tenurial instruments issued within the wetland will be
an important agenda under the Watershed Management Program with a view to resolve tenurial
conflicts through consensus building. This might take a while to accomplish but may yet prove to be the
single most important step towards averting over-exploitation of threatened resources in the Marsh. It
will also help harmonize the various interventions to make them compatible with the management
prescriptions laid out in the AMWS Management Plan.
(v) IP Development
More than 60% of the Marshs inhabitants are IPs. IP communities and their social norms, cultural
traditions and resource use patterns comprise the wealth of the wetlands natural heritage that needs to
be respected and protected.
Programs are already on-going to assist the IP communities in the Marsh in the preparation of ancestral
domain management plans and processing of CADTs. A basin-wide program for the development of
IPs has been drawn up in this Master Plan, from which Agusanon-Manobos of the Marsh would greatly
benefit. The program includes priority projects that relate to tenurial security, indigenous knowledge,
systems and beliefs, education and customary law codification, among others.
(vi) Fisheries Resources Management
Fishery resources in the wetland have dwindled to critical levels. A recent fisheries assessment in the
Marsh confirmed the proliferation of invasive species such as the janitor fish in the wetland, which is
another cause for alarm. The trend needs to be reversed by drawing up a holistic program for fisheries
resources management under the auspices of BFAR in partnership with the LGUs. This may be
undertaken as an extension of on-going and proposed coastal and freshwater fisheries management
programs of these agencies.
A possible take off point is an in-depth fisheries resource and habitat inventory and assessment,
including a benchmark study to determine levels of potential contaminants such as Hg and other heavy
metals, agri-chemical residues and coliform, which may be significantly contributing to fisheries decline.
Other strategies could lend support to fisheries development such as the establishment of fish
sanctuaries for important species (e.g., migratory and commercial)as well as the development of fish
processing industries, where feasible. The pursuit of aqua-culture should be considered only where this
does not conflict with ecological objectives for the Marsh.
D. Regulated Public Access Project
The Agusan Marsh could also serve as a major tourist destination and should thus be promoted
together with other tourist attractions within the Agusan River Basin.
The proposed regulated public access project would take the place of the eco-tourism development
program under the previous AMWS Plan. It has to be limited in scope. Initially and until security risks
are decisively addressed, it would cater only to local visitors from near and far who wish to conduct
educational field trips, guided tours and family week-end trips to the Agusan Marsh. Visits would be
limited to day tours or, at best, an overnight stay (if host families could be organized). Most especially,
off-limits will be observed in strict protection zones such as the peat lands and during critical breeding
seasons.
As an innovative tourism come-on, an audio-visual center-cum-amphitheater and a floating museum will

be constructed. These will provide another avenue for raising public awareness and appreciation for
Annex 2J-25/28
Final Report
wetland conservation among non-residents by showcasing audio-visual presentations, exhibits, and

cultural shows among others.
Regulated tourism for locals has a high potential to generate self-sustaining revenues to fund the
management activities of the protected area, provided that the carrying capacity of the Marsh is
respected. Moreover, controlled operation of small floating hotels or boathouses might be a novel way
to generate income at the household or community level.
1.3.2 Program Implementation
A. Implementation Schedule
(i) AMWS Management Plan Formulation and Implementation Project
Table 2J-2 shows the proposed timetable for formulating and implementing the AMWS Management
Plan over the first 5-year planning cycle. Hopefully, this could start in early 2007 as the previous plan
has already expired this year.
Table 2J-2
Schedule of Formulation and Implementation of the AMWS Management Plan
ARB Master Plan
Activities 01 02 03 04 05 06 07-12
1. Engagement of consultants x x x x x x x
2. Training on basic management of x
Ramsar designated wetlands
3. Training on resource inventory x
4. Resource inventory x x x x x x
5. Training on socio-economic survey x
6. Socio-economic survey x x x
7. Training on zoning and zone x
management
8. Ground survey and zone
demarcation including preparation of x x x x x x
Caimpugan Management Plan
9. Training on CEPA x
10. Preparation of CEPA Plan x x x x x x
11. Training on Monitoring x
12. Preparation of Monitoring Plan x x x x
13. Formulation of AMWS Management
Plan (through consultative x x x x x x x
workshops)
14. Initial implementation of
x
Management Plan including CEPA
(ii) Regulated Public Access Project
The proposed regulated public access project is envisioned to be implemented over a 10-year period
after the initial AMWS management planning cycle starting year 2011, when some progress has been
achieved in protecting the Marsh. It will be undertaken by the PAMB through PASu and LGUs in
coordination with the RBO and linked to other tourism projects of DOT. It could eventually evolve into a
full-scale eco-tourism project after 2020. The proposed timetable of implementation is shown in Table
2J-3.
Annex 2J-26/28
Final Report
Table 2J-3
Implementation Schedule of the Regulated Project Access Project
AMWS Management Program, ARB Master Plan
Activities 11 12 13-20
1. Audio-visual center//mini-theater (construction, x
furnishings and audio-visual equipment)
2. Floating museum (construction, furnishings and x
display room materials)
3. Public Access Project Implementation x x
4. Operation and maintenance x x
Other priority interventions in the Marsh will be implemented in the context of basin-wide programs and
are dealt with in the respective reports of other consultants.
B. Resource Requirements
AMWS Management Plan reformulation and implementation in accordance with Ramsar guidelines will
require adequate human resources with technical capability and equipment support.
These are not available at present. Thus, a grant-funded technical assistance will be crucial during the
first year of the first 5-year planning cycle to build the PAMB, PASU, DENR and communities capability
to manage the Marsh.
The TA will provide the following pool of experts: (1) Wetland Specialist, (1) Environmental Specialist,
(2) two Flora Specialists, (2) Fauna/Wildlife Specialists, (2) Fisheries Specialists and (1) Remote
Sensing-cum-GIS Specialist. The experts will provide the direction as well as the hands-on training for
resource managers and users during various stages of plan formulation and initial implementation.
The local job contractors who will be commissioned for socio-economic survey, zoning, CEPA and
monitoring will provide complementary expertise. Counterpart technical, field and administrative support
personnel will be shared between DENR and the LGUs.
Field vehicles, equipment and camping paraphernalia will be necessary during the resource inventory
and monitoring activities. Two (2) speedboats will be procured under the TA to facilitate mobility in the
Marsh. A complete list of field equipment include spotting scopes, binoculars, GPS units, wildlife voice-
corder, camcorder, camping paraphernalia and sampling gadgets.
Office computers, printers and supplies will be used in all stages of the Plan preparation, but especially
during processing of resource inventory results.
Wetland inventory and assessment, zone delineation, monitoring and hydrologic modeling will be more
efficient and cost-effective if GIS-based map analyses will be employed using remotely sensed data
alongside topographic maps as well as ground surveys.
Technical experts will be commissioned. A highly skilled remote sensing-cum-GIS specialist will need
to be commissioned under the TA, since such expertise is not currently available. Staff trainings on the
proper conduct of inventory and the use of basic GIS and remote sensing technology will be necessary
to build the PASUs capability for the work.
Radar and satellite images will be acquired as they are not presently available or accessible; although
this would require substantial capital investment (i.e., for SPOT and ETM satellite images, and radar
images). Both the DENR and the Province of Agusan del Sur have a GIS system that is already
functional. Initially, this may prove useful for purposes of inventory.
Eventually, establishing a centralized Management Information System for a sustained data collection
and monitoring program in the basin (including the wetland) may necessitate acquiring new GIS
equipment and data processing sets). This is being proposed under the Data-banking and Decision
Support System under the River Basin Organization Formation and Development Program.
Annex 2J-27/28
Final Report
C. Funding Requirements
It is preferable to source out grants rather than secure loans from international funding institutions for a
1-year TA during the formulation and initial implementation of the AMWS Management Plan. The TA
will commission Wetland experts and other field consultants to transfer technology and provide
technical guidance in resource inventory, zoning and zone management, CEPA, hydrologic modeling,
monitoring, etc. It will also cover for the acquisition of GIS facility and image processors, field
equipment (speed boat, etc.), radar and satellite images and maps, as necessary. It may be necessary
to source out additional funding and expert assistance through partnerships with other international
donors, government agencies, NGOs, business groups and the academe.
A capsule proposal has been prepared, which may be useful for sourcing out grants for funding the
proposed priority projects in the Marsh. One potential donor is the Spanish Government-funded AECI
initiative, which has a keen interest in funding possible projects in the Agusan River Basin, the Agusan
Marsh in particular.
The NIPAS Law allows PAMB to receive donations and endowments from other sources. Other
potential sources of revenue are user fees, permits for resource use/extraction, eco-tourism/visitor
program, polluters fines and charges for zoning violations and the like, the mechanisms of which shall
be defined in the Plan. These will accrue to the trust fund of IPAF to support other activities of the
PAMB/PASu.
The national and local government should be prepared to earmark adequate funds to defray the
administrative/operational costs that will be entailed by manpower and logistics requirements of the
plan formulation and implementation, especially after the TAs decommissioning.
D. Estimated Project Cost
The estimated projects costs for the two (2) priority projects on AMWS Management Plan Formulation
and Implementation and Regulated Public Access are presented in detail in Volume IIIB (Chapter 7.0
Development Programs and Projects) and its Appendix B (Detailed Project Profiles).
E. Institutional Arrangements
The NIPAS Act has laid down the basic institutional framework for managing the AMWS through a
multi-stakeholder body, namely the PAMB. The present bloated membership of the PAMB, besides
proving to be dysfunctional and inefficient, lacks genuine representation by local executives and
decision-makers in the community. The latter is also the reason why the Agusan Marsh Alliance came
into being and practically duplicated its functions. This, hopefully, will be corrected once the proposed
AMWS Law is passed, which also fully defines the mandates of the policy-making body.
The PASu will also be strengthened with the passage of the AMWS Law by giving it more teeth and
police powers to prepare and implement the Management Plan. It shall be provided with adequate
technical and administrative support personnel to do the legwork. Once the reconstituted PAMB and
PASu are in place, the next round of AMWS management planning and implementation can proceed
very well in close coordination with the River Basin Organization (RBO).
Once the Agusan RBO is in place, complementation could be optimized where integration of wetland
objectives with Basin-wide plans will be necessary, as already pointed out. Specifically, data collection,
storage and retrieval should be a centralized function of the RBO once the Databanking and GIS-based
Decision Support System has been set up. Hydrologic modeling will be undertaken within the context of
the RBO in coordination with the PAMB and PASu.
The Management Plan should be broken down into specific time-bounded action plans later on. It may
be helpful to create cross-sectoral/inter-agency task committees or working groups to implement such
action plans. For example, the wetland and peat land resource assessments can be dovetailed with
each other but this will require forging stronger collaboration between PAWB, PAMB/PASu, the Agusan
Marsh Alliance and civil society groups now operating in the area while an appropriate and capable
institutional arrangement is still being worked out.
Annex 2J-28/28
SOCIO-ECONOMIC CONDITION
Master Pan for the Agusan River Basin Project Final Report
3.0 SOCIO-ECONOMIC CONDITION

3.1 Economic Setting
Similar to physical and environmental settings, the economic setting is essential primarily in
providing a baseline portrayal of the economic health of the city/provinces comprising the ARB
particular their economic performance and contribution to regional economies as a whole. In this
manner, one could assess the individual strength of concerned local economies as well as
weakness that provide economic justification for development potentials realizable under IRBM
for the ARB. As far as IRBM is concerned particularly its concerns regarding resource competition
and economic pricing, this section also delves on two (2) critical issues with vital economic
implications; namely, water pricing and funding for the proposed apex RB organization body.
Conclusions and recommendations for future development strategies related to these economic
issues are forwarded at the end of the discussion.
3.1.1 Economic Profile
(i) Gross Regional Domestic Product
To provide an economic perspective of the ARB, an assessment is made of the GRDP of Region
XI-Davao Region, and Region XIII-Caraga Region.1 GRDP is the regional breakdown of the
Philippines Gross Domestic Product (GDP), which is the aggregation of gross value added
contributions of the countrys domestic industries. There is no disaggregated estimate at the
provincial level.
(a) Comparative GRDPs
Davao Region registered a 2005 GRDP of PhP55.8 billion at 1985 constant prices, slightly lower
than the GRDP generated by Northern Mindanao (PhP58.1 billion), which was the highest in the
whole of Mindanao (Figure 3-1). Davao Region was the 7th highest in GRDP among the regions
in the Philippines including the National Capital Region (NCR).
Fig IIIA-2.2.3-1: 2005 Gross Regional Domestic Product
160
In Billion Pesos at 1985 Prices
140
120
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80
60
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Note: NCR: Metro Manila GRDP was PhP386 billion.

Source: National Statistical Coordination Board, Gross Regional Domestic Product, Base Year: 1985, 2003-2005.
Figure 3-1 2005 Gross Regional Domestic Product
1
Davao Region is composed of the provinces of Davao del Norte, Davao Oriental, Davao del Sur and Compostela Valley.
Caraga Region is composed of Agusan del Norte, Agusan del Sur, Surigao del Norte and Surigao del Sur. This Master
Plan Project concentrates mainly on the ARB in the provinces of Compostela Valley, Agusan del Norte and Agusan del
Sur.
3-1
In comparison, the Caraga Region notched a 2005 GRDP of PhP15.5 billion at 1985 constant
prices. Caraga Region recorded the second lowest GRDP, higher only to the Autonomous
Regional of Muslim Mindanao (ARMM), which produced a 2005 GRDP of PhP10.9 billion.
(b) Comparative Per Capita GRDP
The 2005 Philippine average per capita GRDP was PhP14,186 at constant 1985 prices (Figure 3-
2). Davao Region registered the 5th highest in the Philippines after the NCR, Cordillera
Administrative Region (CAR), Northern Mindanao, and CALABARZON. Its 2005 per capita GRDP
registered PhP13,892 at constant 1985 prices.
Fig IIIA-2.2.3-2: 2005 per Capita GRDP
20
18
16
14
12
10
8
6
4
2
0
Figure 3-2 2005 per capita GRDP
Meanwhile, the 2005 per capita GRDP of PhP6,690 of the Caraga Region, at constant 1985
prices, is only less than half of the national average per capita GRDP. This is the fourth lowest per
capita GRDP in the country, higher only to Eastern Visayas (PhP6,678), the Bicol Region
(PhP6,632) and the ARMM (PhP3,433).
(c) GRDP by Industry
1. Caraga Region
The Agriculture, Fishery and Forestry (AFF) sector accounted for 38.9% of the 2005 GRDP of the
Caraga Region at constant 1985 prices (Table 3-1). Industry accounted for 24% of its 2005
GRDP while Services made up for 37.1%. The Trade sub-industry was the major contributor to
output from the Services sector.
GRDP at constant 1985 prices grew at an average annual rate of 3.3% from 2003 to 2005. Per
capita 2005 GRDP was PhP6,691 at 1985 prices and PhP28,194 at current prices. Meanwhile,
real per capita GRDP grew at the rate of 1.3% average per annum from 2003 to 2005. To
promote real development among the people, per capita GRDP has to grow at a much faster rate.
3-2
Table 3-1: Gross Value Added by Industry, Caraga Region

(in million pesos at constant 1985 prices)
2005 AAGR
Industry
2003 2004 2005 % Share 03-05
I. AGRI., FISHERY & FORESTRY 5,650 5,845 6,037 38.9% 3.4%
a. Agriculture & Fishery 5,178 5,267 5,405 34.9% 2.2%
b. Forestry 471 578 632 4.1% 15.8%
II. INDUSTRY 3,602 3,635 3,718 24.0% 1.6%
a, Mining & Quarrying 435 441 426 2.7% -1.0%
b. Manufacturing 1,478 1,480 1,518 9.8% 1.3%
c. Construction 1,215 1,227 1,200 7.7% -0.6%
d. Electricity 474 488 573 3.7% 10.0%
III. SERVICES 5,287 5,503 5,753 37.1% 4.3%
a. Transport, Comm. & Storage 332 361 372 2.4% 5.9%
b. Trade 2,777 2,907 3,075 19.8% 5.2%
c. Finance 108 115 124 0.8% 7.0%
d. O. Dwellings & Real Estate 630 658 690 4.4% 4.6%
e. Private Services 385 408 426 2.7% 5.1%
f. Government Services 1,055 1,054 1,067 6.9% 0.6%
Gross Regional Domestic Product (GRDP) 14,539 14,984 15,509 100.0% 3.3%
Thousand Population of Caraga Region 2,231 2,274 2,318 ----- 1.9%
GRDP Pesos Per Capita 6,517 6,589 6,691 ----- 1.3%

AAGR -annual average growth rate
Source of Basic Data: National Statistical Coordination Board, Gross Regional Domestic Product,
Base Year: 1985, 2003-2005
AFF manifested an average growth of 3.4% per year during 2003 to 2005 as the sector began to
benefit from the Irrigation Component of the Lower Agusan Development Project. The Industry
sector grew at a low average rate of 1.6% per year due to the negative growths in Mining and
Quarrying and Construction, and the low growth in Manufacturing. The Services sector grew at an
annual average rate of 4.3% as a result of favorable increases in Finance (7.0% real growth from
2003 to 2005), Transport, Communications and Storage (5.9% average per year), and in Trade
(5.2% average per year).
2. Davao Region
The principal growth sector of Davao Region is Services (Table 3-2). In 2005, the Services sector
contributed 40.7% of total GRDP at constant 1985 prices. Industry, on the other hand, provided
32.0% while AFF accounted for 27.3%.
Palay and corn, and major plantation crops such as banana, pineapple, mango and coconut,
account mainly for the GVA of the AFF sector. Agro-based manufacturing accounted for 18.8% of
total 2005 GRDP at constant 1985 prices. Trade, on the other hand, accounted for more than half
of the GVA for Services.
The GRDP of Davao Region at 1985 constant prices grew at an annual average rate of 5.7%
while per capita GRDP grew at an average rate of 4.0% per year.
3-3
Table 3-2: Gross Value Added by Industry, Davao Region

(in million pesos at constant 1985 prices)
2005 AAGR
Industry
2003 2004 2005 % Share '03-'05
I. AGRI., FISHERY & FORESTRY 13,866 14,865 15,268 27.3% 4.9%
a. Agriculture & Fishery 13,803 14,772 15,176 27.2% 4.9%
b. Forestry 63 94 92 0.2% 20.8%
II. INDUSTRY 15,810 16,534 17,869 32.0% 6.3%
a, Mining & Quarrying 2,657 2,434 2,625 4.7% -0.6%
b. Manufacturing 8,955 9,626 10,521 18.8% 8.4%
c. Construction 3,948 4,206 4,430 7.9% 5.9%
d. Electricity 251 268 292 0.5% 7.9%
III. SERVICES 20,264 21,789 22,708 40.7% 5.9%
a. Transport, Comm. & Storage 2,145 2,516 2,702 4.8% 12.2%
b. Trade 10,940 11,745 12,249 21.9% 5.8%
c. Finance 696 737 788 1.4% 6.4%
d. O. Dwellings & Real Estate 2,429 2,533 2,600 4.7% 3.5%
e. Private Services 2,421 2,623 2,716 4.9% 5.9%
f. Government Services 1,632 1,635 1,653 3.0% 0.6%
Gross Regional Domestic Product
49,940 53,189 55,845 100.0% 5.7%
(GRDP)
Thousand Population of Davao
3,889 3,953 4,020 -- 1.7%
Region
GRDP Pesos Per Capita 12,841 13,455 13,892 -- 4.0%
AAGR -annual average growth rate
Source of Basic Data: National Statistical Coordination Board, Gross Regional Domestic Product,
Base Year: 1985, 2003-2005
AFF grew at an annual average rate of 4.9%, Industry by 6.3% and Services at 5.9% average per
year. In the Industry sector, Mining and Quarrying contracted at an average rate of 0.6% per year.
The major growth in the Services sector was accounted for by Transport, Communications and
Storage, which increased at an average rate of 12.2% per annum from 2003 to 2005.
(d) Projected GRDP
1. Caraga Region
The GRDP of Caraga Region is projected to grow from a 2005 value of PhP15,500 million at 1985
constant prices, to PhP19,286 million in 2010, based on actual 2005 figures and the growth
targets of Caraga Region as indicated in their Regional Development Plan (Table 3-3). These
represent annual average growth rates of 4.5% (2005-2010).
Table 3-3: Caraga Region: Projected Gross Regional Domestic Product

2005 Actual Growth Targets 2010
2005-10
In PhP In PhP Growth
Industry mln at % 2004 - 2005 - 2006 - 2007 - 2008 - 2009 - mln at % Rate per
1985 Share 2005 2006 2007 2008 2009 2010 1985 Share Year
Prices Prices
Agriculture, Fishery &
6,037 38.9% 3.3% 4.5% 4.3% 3.9% 3.8% 3.5% 7,345 38.1% 4.0%
Forestry
Industry Sector 3,718 24.0% 2.3% 2.9% 3.0% 3.4% 3.3% 3.0% 4,335 22.5% 3.1%
Service Sector 5,753 37.1% 4.5% 5.6% 5.8% 5.6% 5.7% 6.0% 7,605 39.4% 5.7%
Gross Regional
15,509 100.0% 3.5% 4.5% 4.6% 4.4% 4.4% 4.4% 19,286 100.0% 4.5%
Domestic Product
Population (000) 2,318 --- 1.9% 2.1% 2.1% 2.1% 2.1% 2.1% 2,572 --- 2.1%
Per Capita GRDP
6,691 --- 1.5% 2.4% 2.5% 2.3% 2.3% 2.3% 7,499 --- 2.3%
(PhP)
Sources: 1. 2004 & 2005 GRDP & population figures from NSCB, Gross Regional Domestic Product, Base Year: 1985, 2003-2005.
2. GRDP & population growth targets are from NEDA Caraga Region, Caraga Regional Development Plan, 2004-2010.
3-4
As to relative shares of industries, AFF would decrease from 38.9% in 2005 to 38.1% by 2010.
The relative share of Services is envisioned to increase from 37.1% in 2005 to 40% by 2010.
Per capita GRDP at 1985 prices is projected to increase from PhP6,691 in 2005 to PhP7,499 by
2010. Growth would accelerate from 2.3% average per annum during the projection period.
2. Davao Region
The GRDP of Davao Region would increase from PhP55,845 million at 1985 prices in 2005 to
PhP74,305 million in 2010 (5.9% AAGR from 2005-2010). (Table 3-4) The higher GRDP growth
of Davao Region could be attributed to its various agricultural crop exports, and expected growth
in manufacturing, mineral development, tourism, as well as information technology (IT) and
business process outsourcing (BPO) services.
Table 3-4: Davao Region Gross Regional Domestic Products - Actual and Targets
In PhP mln at 1985 Prices Thousand GRDP PhP
Year
AFF Industry Services Total Population Per Capita
2003 13,866 15,810 20,264 49,940 3,889 12,841
2004 14,865 16,535 21,789 53,189 3,953 13,455
2005 15,268 17,869 22,708 55,845 4,020 13,892
% 27% 32% 41% 100% 1.7% 4.0%
Annual Growth In PhP mln at 1985
Rate Prices Thousand GRDP PhP % Growth
Year
Population Per Capita Per Capita
Target Actual Actual Target
2004 4.5% 6.5% 53,189 3,953 13,455 4.8%
2005 4.8% 5.0% 55,845 4,020 13,892 3.2%
2006 5.0% 58,637 4,087 14,347 3.3%
2007 5.5% 61,862 4,155 14,887 3.8%
2008 5.9% 65,512 4,225 15,506 4.2%
2009 6.3% 69,639 4,295 16,213 4.6%
2010 6.7% 74,305 4,367 17,015 4.9%
Ave 2005-
5.9% 1.7% 4.1%
10
AFF 28.0% 20,805
Industry 30.0% 22,291
Services 42.0% 31,208
AFF - Agriculture, Forestry and Fishery
Sources: 1. National Statistical Coordination Board, Gross Regional Domestic Product, 2003-2005
2. NEDA Davao Region, Davao Regional Development Plan, 2004-2010
The relative shares to GRDP would be maintained during the projection period. The relative share
of AFF would still be about 28%, Industry 30% and Services 42%, based on the Davao Region
Regional Development Plan.
Per capita GRDP is projected to grow from PhP13,892 at 1985 prices in 2005 to PhP17,015 in
2010, representing an AAGR of 4.1%.
(ii) Major Agricultural Crops
(a) Caraga Region
Caraga Region registered a 2003 palay production of 344,706 metric tons (MT) over 113,926ha of
land area (Table 3-5), with such production level representing a 5.4% growth over 2002. Irrigated
and rain-fed areas showed incremental production increases of 5.0% and 6.5%, respectively.
Although contributing 37.0% of total 2003 production, Agusan del Sur was not able to realize
positive overall production growth. The same trend is observed for Agusan del Norte. On the
3-5
other hand, Surigao del Sur posted a 20.2% growth while Surigao del Norte registered a 14.5%
increase in production. These growth trends for Surigao del Sur and Surigao del Norte are
attributable to increased production areas, improved irrigation systems, application of appropriate
technologies, use of high yielding varieties and provision of subsidized farm inputs.
Table 3-5: Palay Production by Province, Caraga Region, 2002-2003
Area Harvested (ha) Production (MT)

Province
2002 2003 % Change 2002 2003 % Change
Agusan del Norte 22,785 22,110 -3.0% 77,692 74,647 -3.9%
Agusan del Sur 45,550 41,300 -9.3% 127,725 127,556 -0.1%
Surigao del Norte 27,405 27,546 0.5% 64,584 73,927 14.5%
Surigao del Sur 22,294 22,970 3.0% 57,069 68,576 20.2%
Total Caraga 118,034 113,926 -3.5% 327,070 344,706 5.4%
Production (MT)
Province Irrigated Rainfed
2002 2003 % Change 2002 2003 % Change
Agusan del Norte 56,377 54,258 -3.8% 21,315 20,389 -4.3%
Agusan del Sur 87,470 90,540 3.5% 40,255 37,016 -8.0%
Surigao del Norte 50,553 53,035 4.9% 14,031 20,892 48.9%
Surigao del Sur 44,030 52,463 19.2% 13,039 16,113 23.6%
Total Caraga 238,430 250,296 5.0% 88,640 94,410 6.5%
Source: NEDA, Region XIII - Caraga Development Plan, 2004 to 2010, @2004
Total 2003 corn production of 74,545MT in the Caraga Region increased by 9.6% from 68,043MT
in 2002. The production area was of 49,839ha (Table 3-6). The 90.1% increase in the corn
production of Agusan del Norte is attributable to favorable weather, i.e., long dry months and
short intermittent rainy days, and assistance through the Ginintuang Masaganang Ani (GMA) for
Corn Program. The decline, however, of corn production in Agusan del Sur is attributable to the
shift from corn to watermelon, peanuts, and other legumes. Other major agricultural crops planted
in the Caraga Region were coconut, banana, oil palm, rubber, mango, abaca, calamansi and
coffee.
3-6
Table 3-6 Corn Production by Province, Caraga Region, 2002-2003

Area Harvested (ha) Production (MT)
Province
2002 2003 % Change 2002 2003 % Change
Agusan del Norte 7,160 9,879 38.0% 7,542 14,334 90.1%
Agusan del Sur 37,412 33,030 -11.7% 52,810 50,707 -4.0%
Surigao del Norte 685 495 -27.7% 506 432 -14.6%
Surigao del Sur 6,100 6,435 5.5% 7,185 9,072 26.3%
Total Caraga 51,357 49,839 -3.0% 68,043 74,545 9.6%
Production (MT)
Province White Yellow
2002 2003 % Change 2002 2003 % Change
Agusan del Norte 7,542 12,344 63.7% 0 1,990 --
Agusan del Sur 43,340 39,529 -8.8% 9,470 11,178 18.0%
Surigao del Norte 7,416 197 -97.3% 275 235 -14.5%
Surigao del Sur 0 9,072 -- 0 0 --
Total Caraga 58,298 61,142 4.9% 9,745 13,403 37.5%
Source: NEDA, Region XIII - Caraga Development Plan, 2004 to 2010, @2004
(b) Compostela Valley
In 1998, Compostela Valley harvested various agricultural crops including palay (13,194ha), corn
(18,388ha), coconut (24,717ha) and banana (5,999ha). (Table IIIA-2.2.3-7)
Table 3-7: Area and Production of Major Crops, 1998

Compostela Valley
% to Total Production
Major Crop Area (ha)
Crop Land (MT)
Palay 13,194 9.2% 48,172
Irrigated 9,033 6.3% 35,771
Rainfed 4,161 2.9% 12,401
Corn 18,366 11.6% 33,015

White 16,578 11.6% 28,546
Yellow 1,787 0.0% 4,469
Banana 5,999 4.9% 83,120

Coconut 24,717 17.3% 203,670
Vegetables 730 0.5% 4,009
Root Crops 2,065 1.4% 7,928
Other Industrial Crops 39,417 27.5% --
Other Fruit Crops 3041.85 2.1% 11,810
Source: Compostela Valley Development Plan, 2000 to 2010
(iii) Employment
The number of employed persons in the Caraga Region2 increased from 888,000 persons in April
2001 to 976,000 persons in April 2005, reflecting an annual average growth rate of 2.4% (Figure
3-3). There was, however, a 7,000 decrease in the number of employed people in April 2004.
2
This is obtained by first multiplying the number of population 15 years old and over by the Labor Force Participation Rate
(LFPR) and then multiplying the result by the Employment Rate.
3-7
33000 1700
1600
32000
1500
31000 1400
1300
30000
1200
29000 1100
1000
28000
900
27000 800
Apr 2001 Apr 2002 Apr 2003 Apr 2004 Apr 2005
Philippines 29158.927 30192.457 30397.164 31542.046 32239.631
Davao Region 1507.3795 1535.4804 1548.5783 1630.3449 1622.6221

Caraga Region 887.94228 917.91554 941.49169 932.89547 975.67584
Source: National Statistics Office, Labor Force Surveys at w w w .census.gov.ph
Figure 3-3 Thousand Persons Employed, CARAGA 2001-2005
The annual average employment growth in the Caraga Region of 2.4% from 2001 to 2005 is
similar to the average annual national growth of 2.5%. However, employment growth for Davao
Region is relatively low at an annual average of 1.9% for the same period. Davao Region also
experienced a slight reduction in the total number of employed persons, from 1.630 million in April
2004 to 1.623 million in April 2005.
On a sector basis, about 52% of employed persons for the Caraga Region in 2002 belong to the
AFF industry group (Table 3-8). Services accounted for about 39% and only 9% for Industry.
Table 3-8: Employed Persons by Industry Group, Caraga Region, 1997-2002

1997 2002
Average
Sector Thousand Thousand
% Share % Share Growth/ Year
Employed Employed
AFF 451 52.9% 460 52.2% 0.40%
Industry 92 10.8% 80 9.1% -2.76%
Services 309 36.3% 341 38.7% 1.99%
Total/Average 852 100.0% 881 100.0% 0.67%
Source: NEDA,Region XIII: Caraga Development Plan, 2004-2010, @2004.
In the Davao Region, about 45% of employed persons in 2003 were in the Services sector while
about 43% were in the AFF sector (Table 3-9). Industry accounted for only 12% of total employed
persons in the Region.
Table 3-9 Employed Persons by Industry Group, Davao Region, 2003
Industry No. of Workers % Share

Agriculture, Fishery & Forestry 680,000 42.9%
Industry 196,000 12.4%
Services 708,000 44.7%
Total 1,584,000 100.0%
Source: NEDA, Davao Regional Development Plan, 2004-2010
3-8
(iv) Family Income and Expenditure
The 2003 average family income in the country amounted to PhP148,616 at current prices.
However, only NCR, CAR, Central Luzon and CALABARZON were able to realize regional-level
incomes above this average (Table 3-10). As to average saving, more regions achieved higher
levels than the PhP24,239 national average; namely, NCR, CAR, Cagayan Valley,
CALABARZON and SOCCSKSARGEN.3
Next to SOCCSKSARGEN, Davao Region had the highest 2003 average family income of
PhP114,065 in Mindanao. Caraga Region, on the other hand, had the second lowest 2003
average family income of PhP86,859, higher only to the ARMM. Caraga Region had the lowest
average saving among all regions in the country, at only PhP10,960.
When expressed in 2000 prices, there is a general deterioration of average family income for all
regions in the country from 2000 to 2003. The trend is likewise observed in average family saving
with the exception of Cagayan Valley, SOCCSKSARGEN, Caraga Region and ARMM. Among
the regions, Caraga Region had the lowest average family saving of PhP9,778 expressed in 2000
prices.
The equity of income distribution for both Caraga and Davao regions has also deteriorated from
2000 to 2003 as reflected by the Gini Concentration Ratio.
T a b le 3 -1 0 : F a m ily In c o m e a n d E x p e n d itu re b y R e g io n , P h ilip p in e s , 2 0 0 1 -2 0 0 3

2000 2003
R e g io n A v e ra g e A v e ra g e A v e ra g e A v e ra g e A v e ra g e A v e ra g e
In c o m e E x p e n d itu re S a v in g In c o m e E x p e n d itu re S a v in g
A t C u rre n t P ric e s
P h ilip p in e s 1 4 5 ,1 2 1 1 1 8 ,8 3 9 2 6 ,2 8 2 1 4 8 ,6 1 6 1 2 4 ,3 7 7 2 4 ,2 3 9
NCR 3 0 0 ,3 0 4 2 4 4 ,2 4 0 5 6 ,0 6 4 2 7 4 ,5 2 9 2 2 5 ,9 3 6 4 8 ,5 9 3
CAR 1 3 9 ,6 1 3 1 1 0 ,3 3 8 2 9 ,2 7 5 1 5 7 ,0 4 5 1 3 0 ,1 5 4 2 6 ,8 9 1
Ilo c o s 1 2 0 ,8 9 8 9 5 ,7 5 5 2 5 ,1 4 3 1 2 4 ,4 3 7 1 0 2 ,5 9 6 2 1 ,8 4 1
C a g a y a n V a lle y 1 0 8 ,4 2 7 8 8 ,6 5 6 1 9 ,7 7 1 1 2 4 ,3 7 5 9 7 ,9 4 5 2 6 ,4 3 0
C e n tra l L u z o n 1 5 0 ,5 0 4 1 1 9 ,4 5 4 3 1 ,0 5 0 1 5 8 ,0 7 5 1 3 6 ,5 4 8 2 1 ,5 2 7
C a la b a rz o n 1 7 8 ,6 0 0 1 4 9 ,5 9 2 2 9 ,0 0 8 1 8 5 ,6 6 1 1 5 9 ,2 6 7 2 6 ,3 9 4
M im a ro p a 9 9 ,4 3 8 7 9 ,8 7 6 1 9 ,5 6 2 9 7 ,3 9 4 8 0 ,7 3 2 1 6 ,6 6 2
B ic o l 9 5 ,2 9 9 8 2 ,3 6 6 1 2 ,9 3 3 1 0 6 ,8 1 3 9 3 ,6 6 6 1 3 ,1 4 7
W e s te rn V is a y a s 1 0 9 ,6 0 0 9 4 ,7 0 4 1 4 ,8 9 6 1 1 2 ,5 9 3 9 8 ,3 3 2 1 4 ,2 6 1
C e n tra l V is a y a s 9 9 ,5 3 1 8 3 ,6 4 4 1 5 ,8 8 7 1 1 9 ,1 1 9 1 0 0 ,1 6 8 1 8 ,9 5 1
E a s te rn V is a y a s 9 1 ,5 2 0 7 2 ,0 9 0 1 9 ,4 3 0 1 0 3 ,8 7 4 8 3 ,4 5 9 2 0 ,4 1 5
Z a m b o a n g a P e n in s u la 1 / 8 8 ,2 1 4 7 0 ,8 1 8 1 7 ,3 9 6 9 5 ,6 6 0 7 6 ,8 0 5 1 8 ,8 5 5
N o rth e rn M in d a n a o 1 0 8 ,4 8 0 8 3 ,2 6 3 2 5 ,2 1 7 1 0 6 ,8 9 7 8 9 ,5 9 2 1 7 ,3 0 5
D avao 1 0 7 ,9 7 6 9 0 ,4 9 6 1 7 ,4 8 0 1 1 4 ,0 6 5 9 7 ,5 0 5 1 6 ,5 6 0
S o c c s k s a rg e n 2 / 1 0 2 ,7 0 7 8 1 ,7 9 7 2 0 ,9 1 0 1 1 6 ,2 8 4 8 6 ,3 7 6 2 9 ,9 0 8
C a ra g a 8 1 ,5 1 9 7 2 ,1 0 8 9 ,4 1 1 8 6 ,8 5 9 7 5 ,8 9 9 1 0 ,9 6 0
ARM M 3/ 7 9 ,1 1 0 6 5 ,5 1 4 1 3 ,5 9 6 8 4 ,4 3 9 6 8 ,2 1 2 1 6 ,2 2 7
A t 2 0 0 0 P ric e s
P h ilip p in e s 1 4 5 ,1 2 1 1 1 8 ,8 3 9 2 6 ,2 8 2 1 3 0 ,5 9 4 1 0 9 ,2 9 4 2 1 ,3 0 0
NCR 3 0 0 ,3 0 4 2 4 4 ,2 4 0 5 6 ,0 6 4 2 3 9 ,7 6 3 1 9 7 ,3 2 4 4 2 ,4 3 9
CAR 1 3 9 ,6 1 3 1 1 0 ,3 3 8 2 9 ,2 7 5 1 3 6 ,3 2 4 1 1 2 ,9 8 1 2 3 ,3 4 3
Ilo c o s 1 2 0 ,8 9 8 9 5 ,7 5 5 2 5 ,1 4 3 1 1 0 ,2 1 8 9 0 ,8 7 3 1 9 ,3 4 5
C a g a y a n V a lle y 1 0 8 ,4 2 7 8 8 ,6 5 6 1 9 ,7 7 1 1 1 0 ,8 5 1 8 7 ,2 9 5 2 3 ,5 5 6
C e n tra l L u z o n 1 5 0 ,5 0 4 1 1 9 ,4 5 4 3 1 ,0 5 0 1 4 2 ,0 2 6 1 2 2 ,6 8 5 1 9 ,3 4 1
C a la b a rz o n 1 7 8 ,6 0 0 1 4 9 ,5 9 2 2 9 ,0 0 8 1 6 1 ,8 6 7 1 3 8 ,8 5 5 2 3 ,0 1 2
M im a ro p a 9 9 ,4 3 8 7 9 ,8 7 6 1 9 ,5 6 2 8 6 ,5 7 3 7 1 ,7 6 1 1 4 ,8 1 2
B ic o l 9 5 ,2 9 9 8 2 ,3 6 6 1 2 ,9 3 3 9 4 ,6 0 8 8 2 ,9 6 3 1 1 ,6 4 5
W e s te rn V is a y a s 1 0 9 ,6 0 0 9 4 ,7 0 4 1 4 ,8 9 6 9 9 ,1 1 4 8 6 ,5 6 0 1 2 ,5 5 4
C e n tra l V is a y a s 9 9 ,5 3 1 8 3 ,6 4 4 1 5 ,8 8 7 9 9 ,5 1 5 8 3 ,6 8 2 1 5 ,8 3 3
E a s te rn V is a y a s 9 1 ,5 2 0 7 2 ,0 9 0 1 9 ,4 3 0 9 2 ,7 4 5 7 4 ,5 1 7 1 8 ,2 2 8
Z a m b o a n g a P e n in s u la 1 / 8 8 ,2 1 4 7 0 ,8 1 8 1 7 ,3 9 6 8 6 ,8 8 5 6 9 ,7 5 9 1 7 ,1 2 6
N o rth e rn M in d a n a o 1 0 8 ,4 8 0 8 3 ,2 6 3 2 5 ,2 1 7 9 4 ,0 9 9 7 8 ,8 6 6 1 5 ,2 3 3
D avao 1 0 7 ,9 7 6 9 0 ,4 9 6 1 7 ,4 8 0 1 0 1 ,1 2 1 8 6 ,4 4 1 1 4 ,6 8 0
S o c c s k s a rg e n 2 / 1 0 2 ,7 0 7 8 1 ,7 9 7 2 0 ,9 1 0 1 0 4 ,4 7 8 7 7 ,6 0 6 2 6 ,8 7 2
C a ra g a 8 1 ,5 1 9 7 2 ,1 0 8 9 ,4 1 1 7 7 ,4 8 4 6 7 ,7 0 6 9 ,7 7 8
ARM M 3/ 7 9 ,1 1 0 6 5 ,5 1 4 1 3 ,5 9 6 7 3 ,6 1 7 5 9 ,4 7 0 1 4 ,1 4 7
G in i C o n c e n tra tio n R a tio 2000 2003
D a v a o R e g io n 0 .4 3 1 8 0 .4 5 5 0
C a ra g a R e g io n 0 .4 1 1 8 0 .4 2 5 6
N o te s : 1 / In 2 0 0 0 , B a s ila n in c lu d in g Is a b e la C ity w a s u n d e r R e g io n IX .
2 / In 2 0 0 0 , M a ra w i C ity is a p a rt o f R e g io n X II.
3 / B a s ila n P ro v in c e (e x c lu d in g Is a b e la C ity), w h ic h w a s p a rt o f R e g io n IX in 2 0 0 0 , h a s b e e n tra n s fe rre d to A R M M u n d e r E O 3 6 .
S o u rc e : N a tio n a l a n d S ta tis tic s O ffic e , F a m ily In c o m e a n d E x p e n d itu re S u rv e rys
3
SOCCSKSARGEN consists of 2 cities and 3 provinces; namely, South Cotabato, Cotabato City, Sultan Kudarat,
Sarangani, and General Santos City.
3-9
(v) Poverty Threshold and Incidence
The average annual per capita poverty threshold in the Philippines of PhP11,319 in 1997
increased to PhP13,913 in 2000 (Table 3-11). The poverty threshold is generally higher in the
urban areas compared to the rural areas. However, poverty incidence was more marked in
the rural areas vis--vis urban areas.
Table 3-11 Annual Per Capita Poverty Threshold and Poverty Incidence, 1997-2000
1997 2000
5HJLRQ
Total Urban Rural Total Urban Rural
3KLOLSSLQHV 11,319 12,577 10,178 13,913 15,667 12,227
Region X 10,440 11,259 9,869 12,131 12,907 11,580
Region XI 10,503 11,704 9,762 12,546 13,886 11,606
Region XII 11,119 12,468 10,573 12,247 14,396 11,238
Poverty Incidence of Families
1997 2000
5HJLRQ
Total Urban Rural Total Urban Rural
3KLOLSSLQHV 31.8% 17.9% 44.4% 34.2% 20.5% 47.4%
Region X 47.0% 34.2% 55.7% 45.7% 31.8% 55.3%
Region XI 38.2% 26.5% 45.8% 41.2% 28.5% 49.9%
Region XII 50.0% 35.8% 55.9% 50.9% 39.5% 56.2%
Source: National and Statistics Office, Family Income and Expenditure Surveys
Poverty incidence of families in the country was 31.8% in 1997 and 34.2% in 2000. However,
poverty incidences of families in Regions X, XI and XII (i.e., there was no report of Region XIII
in this statistical series) were worse than the national average.
The foregoing discussion has generally established that the Davao Region (although not
necessarily Compostela Valley) is a better economic performer than the Caraga Region
although several attributes of the latter tend to establish the importance of infusing more
investments and economic opportunities in the region in light of:
z The latent potential of its AFF sector that accounts mostly for the growth of its GRDP as
well as its Services sector;
z Higher employment rates registered from 2001-2005 (2.9% vs. 1.9% for Davao Region)
indicating the relative potential of its labor force for actual participation into the workforce
particular with respect to the anticipated growth and labor-absorbing capacity of its
Service sector; and,
z Relative potential for economic growth to be the prime engine in poverty reduction (but as
long as social equity objectives are fulfilled), particularly in raising average family incomes
and reducing poverty incidence rates at significant levels or at least way above generated
averages for Mindanao
These attributes of the Caraga Region and likewise for impoverished regions to be
encompassed by the Master Plan) signify the need for positive change realizable from a
package of development interventions that may be implemented under integrated
development of the ARB under IRBM.
3.2 THE SOCIAL SETTING
The assessment of the social setting is structured in six (6) parts beginning with a distinction
made between government and non-government stakeholders to set common understanding of
the attributes of stakeholders with regard use and management of natural resources. Following is
a comprehensive analysis of demographic, economic and social conditions inclusive of tenure,
livelihood, access to water supply services, health and hygiene, utilization of wood resources,
poverty situation and sources of social capital. A situational analysis of relevant IP groups in the
Basin is made in the third section particularly in regard social organization, resource use
management, integration and realization of rights recognized under the law. Analysis is further
3-10
extended to crosscutting concerns of IP groups with poverty, health, education and gender. In the
fourth part, a specific gender analysis is rendered framed first within the policy framework for
gender in the country and focusing consequently into the overall conditions of women and men in
study areas, and resulting gender situation at the community level. Taken mainly from the
workshops conducted, priorities of primary and stakeholder priorities are then defined, as well as
issues of significance to IP groups in the Basin. Finally, the assessment is concluded with a
prognosis of the social situation of the ARB in 2020 under a business-as usual scenario barring
any major change in its physical, political and socio-economic environment.
3.2.1 Stakeholders of the Basin
(i) Government Stakeholders
A&D areas in the Basin are generally privately owned while forestlands legally belong to the
national government, which regulates its use. The LGU is the main regulator in the use of A&D
areas, with the provincial physical framework plan and the comprehensive land use plan (CLUP)
as its main regulatory instruments.
(a) National Agencies
Being mandated as the primary government agency for natural resource management, the DENR
is the primary regulator of forestlands in the country. This regulation extends to other government
agencies utilizing basin resources mainly through its environmental impact assessment (EIA)
system. Due to human activities in A&D and forestland areas, various national agencies deliver
specialized and/or complementary services. Among these are the DPWH (infrastructure), DA
(irrigation and farm inputs), DOH (special health services), DepEd (education), DOE (energy
provision), DAR (land provision) and NCIP (IP concerns). Apart from regulation, the DENR
designates protected areas in line with natural resource conservation, for which it is presently
managing two (2) proclaimed and three (3) proposed protected areas. The Agusan Marsh Wildlife
Sanctuary is one of these proclaimed areas along with the Mainit Hot Spring National Park
(Nabunturan, Davao del Norte).
(b) Local Government Units
Within the Basin are 30 of the 36 combined municipalities of three (3) provinces and one (1) city
(Table 3-12).
Table 3-12 Distribution of Municipalities and Cities in ARB Provinces, 2005

Total Number of Municipalities Total Number Cities Within
Province
Municipalities in the Basin of Cities the Basin
Agusan del Norte 11 6 1 1
Agusan del Sur 14 14 - -
Compostela Valley 11 10 - -
Total 36 31 1 1
The municipalities in Agusan del Sur and Butuan City covers most of the downstream area of the
Basin while its midstream area is largely in Agusan del Norte and the upstream area in
Compostela Valley. (Figure 3-4)
3-11
Agusan del Norte Agusan del Sur Compostela Valley
Source: DENR/GIS TA team

Figure 3-4 Comparative Distribution of Municipalities, ARB, 2005
The Basin has more than 425 barangays (Annex F). As with all other areas in the Philippines, the
government of each barangay, municipality, province and city within the Basin represents LGU
authority. The role of the LGU and DENR as regulators vests in them the authority as main
government stakeholders in the ARB.
(ii) Non-Government Stakeholders
Resource users in the Basin are referred to as non-government stakeholders, which may further
be categorized into on-site or off-site stakeholders. The former consists of households and groups
who consider the Basin both their home and source of livelihood. The latter, comprising of either
be groups or corporations, profit from Basin resources but are based elsewhere.
Major groups of resource users in the Basin vary by slope (Table 3-13). As such, the categories
of resource users described in the succeeding includes those inhabiting the flatlands, lower
slopes, and upper slopes, other than IP groups and so-called informal regulators (i.e., insurgents).
The location of these resource users in the Basin is shown in Figure 3-5.
Table 3-13 Formal Users of Forestry, Mineral and Fisheries Within the ARB, 2005
Agusan Agusan Compostela

Users Type Total
Norte Sur Valley
WDs Corporation 5 4 2 11
IAs PO 19 74 14 107
Fishpond and fish cage
455 1,681 321 2,457
operators
Corporate plantations Corporation 1 2 3 4
Sawmills, mini-sawmills and re-
Corporation 32 6 15 53
sawmills operators
Wood products plant operators Corporation 13 2 4 19
Log, poles and piles dealers Corporation 6 7 - 13
Lumber dealers Corporation 44 10 19 73
CBFMA and FLMA holders PO 12 30 39 81
CSC holders Household 4,518 6,052 10,031 20,601
IFMA holders Corporation 2 12 2 16
PFDA holders Individual 2 81 - 83
SIFMA holders Corporation 2 1 - 3
CBRMP implementers PO 19 13 - 32
Private land timber permit
Individual - 16 - 16
holders
TLA Corporation - 2 - 2
Individual/
Rattan permit holders 3 8 2 13
PO/
3-12
Agusan Agusan Compostela

Users Type Total
Norte Sur Valley
Corporation
Active mines and mineral
Corporation - 1 2 3
processing permit holders
Active sand and gravel
Corporation 5 1 21 27
quarrying permit holders
CADC and CADT holders PO 1 2 8 11
Source: DENR, LWUA, NCIP, NIA and Agusan Sur and Compostela Valley Provincial
Agricultural Office (PAO)
(a) Stakeholders in the Flatlands
At the flat lands are organized water users and fishers, which include WDs, fishpond and fish
cage operators, and IAs.
There are 11 water districts in the Basin, of which 5 are in Agusan del Norte, 4 in Agusan del Sur,
and 2 in Compostela Valley. As of 2005, these WDs provide water security to at least 29,175
households. The Basin also has 117 IAs where 19 are in Agusan del Norte, 74 in Agusan del
Sur, and 14 in Compostela Valley. Alongside these are a total of about 2457 fish pond and fish
cage operators, the bulk of which are in Agusan del Sur (68%). These operators are generally
small-scale with production areas averaging only about 0.10ha. Both IAs and fishers primarily
account for food security in the Basin.
(b) Stakeholders in the Lower Slopes
Rice farmers, who are also in the production of non-rice crops, are a majority in flatlands and
lower slopes compared to its corn and commercial crop growers. Large commercial crop areas
are generally found in corporate plantations such as those engaged in banana production in
Agusan del Norte and Compostela Valley, and palm oil cultivation in Agusan del Sur. A total of six
(6) corporations have plantations in the Basin, of which one (1) manages between 500 to over
1000ha of planted land.
Corporate plantations have two (2) kinds of stakeholders; namely, small landowners and
corporations. Small landowners are those who lease their lands or are engaged in contract
growing as part of their operations. Corporations, on one hand, are those managing extensive
plantations, and whose corporate headquarters are domiciled either in Davao City or Metro
Manila. Smaller household-managed plantations, on the other hand, are those raising rubber,
coffee, abaca, and trees for fruit and timber.
The lower segments of the wood production supply chain are also found in flatlands and lower
slopes. These are the operators of sawmills, re-sawmills, and wood product plants as well as
dealers of logs, poles, piles, and lumber. Most of these are concentrated downstream particularly
in Butuan City and Magallanes (Agusan del Norte).
There are 53 sawmills and re-sawmills in the Basin and 19 wood product plant operators
producing veneer, plywood, match-splints and fibreboard. Some of these plants have corporate
headquarters in Metro Manila and Davao. Dealers, meanwhile, comprise the last segment of the
supply chain and connect directly with the demand chain. These consist of about 13 dealers of
logs, poles and piles, and 73 lumber dealers.
(c) Stakeholders in the Upper Slopes
In the upper slopes are the tree planters and log producers. In occupying lands generally
classified as forestland, producers are mostly holders of DENR-issued tenure instruments. The
issuance of these instruments is an exercise of regulatory function by the DENR. These
instruments are as follows:
z Certificate of Stewardship Contract (CSC)

z Community-Based Forest Management Agreements (CBFMA)
3-13
z Forestland Management Agreement (FLMA)

z Industrial Forest Management Agreement (IFMA)
z Private Forest Development Agreement (PFDA)
z Socialized Industrial Forest Management Agreement (SIFMA)
The CSC is no longer issued at present and areas under it are devolved to the LGU. For private
land utilized for log production, the DENR issues a Private Land Timber Permit (PLTP). In the
Basin, about 20,601 households hold CSCs while 81 POs have CBFMAs including FLMAs.
Meanwhile, 16 corporations have IFMAs and 3 corporations have SIFMA. On the other hand, 83
individuals are contracted into PFDAs. The WBfunded CBRMP also serves as vehicle of POs to
be involved in upland management where about 32 POs are planting trees under this project.
Operating throughout the Basin are various resource extractors, to which various permits are
being issued by the DENR for the harvest of timber, rattan, minerals, and earth materials. There
are two (2) corporations holding TLAs in the area alongside various individuals/ POs/corporations
holding a combined total of 13 rattan extraction permits. In mining, corporations also hold three
(3) active mines and mineral processing permits, and 27 active quarrying permits. The materials
quarried are gravel and sand, limestone and silica.
(d) Indigenous Peoples
The government has issued 11 CADCs and CADTs in the Basin, which encompass areas
occupied by about 26,500 IP households. These represent 9% of households found in its three (3)
provinces. These IP groups are the Manobos, Mamanwa and Higaonon in the lower and middle
section, and the Mandaya and Mansaka in the upper section. These areas cover about
296,157ha or 23% of the combined area of the three (3) provinces within the Basin. About eight
(8) more CADT areas in the ARB are being processed by the NCIP.
(e) Informal Regulators
Living around the Basin are bands of the New Peoples Army (NPA) who exercise informal
regulatory function such as the collection of resource use fees (revolutionary tax) from
corporations, mining operators, and commercial establishments in several areas. The NPA
generally relies on intimidation and arms to enforce compliance. Small commercial
establishments shell out PhP500.00/month while medium-size mining operators pay up around
PhP5,000.00/month. The rate for corporations is generally larger but negotiable.
(iii) Stakeholder Categories and Participation
Basin stakeholders and their interest in resource use are identified to ensure their participation in
the planning process. Stakeholders were categorized into two (2) groups; namely:
z Primary Stakeholders, which are direct users of Basin resources and as such, will be directly
affected (positively and negatively) by any intervention that implemented in it; and,
z Secondary Stakeholders, referring to government managers of the Basin and providers of
services.
The categorization of stakeholders facilitated the selection of stakeholder groups who would be
represented at planning activities. It also guided the development of the 2-level sampling frame
and in determining who will be part at each level (provincial stakeholder workshop and barangay
meetings). Identifying the stakeholders made it easy to set the representative number and
manageable size of participants for study activities. The selection of stakeholder groups has also
a bearing in strengthening their coordination considering what the ADB noted as the generally
weak coordination among river basin stakeholders (ADB, 2004).
3-14
3.2.2 Demographic and Socio-economic Profile
(i) Demography
(a) Population Size
As of 2000, Agusan del Sur and Compostela Valley accounted for 35% each of the Basin
population while Agusan del Norte cornered 30%. Around 68% of the total are rural based, the
highest percentage of which are in Compostela Valley (71%). This rural orientation predominates
as well Agusan del Norte (66%) and Agusan del Sur (65%). (Table IIIA-2.2.4-3)
Table 3-14 Population Size by Municipality and Growth Rates, ARB, 1960-2000
Municipalities in the Total Municipal Population by Census

Agusan River Basin 1960 1970 1980 1990 2000
Province: Agusan del Norte
Municipality Buenavista 17,927 24,753 31,531 39,331 50,612
Butuan City 177,333 131,094 172,489 227,829 267,279
Las Nieves 4,262 6,782 10,757 15,409 21,530
Magallanes Nd 7,377 15,994 16,211 19,895
RT Romualdez Nd Nd Nd 10,490 13,359
Cabadbaran 26,216 34,729 42,695 46,370 55,006
Nasipit 14,996 23,306 29,905 34,084 35,817
Province: Agusan del Sur
Municipality Bayugan Nd 37,816 56,367 78,725 93,623
Bunawan 11,423 8,656 12,719 21,105 26,704
Esperanza 31,825 21,051 25,257 36,139 44,151
La Paz 5,746 7,971 14,389 16,144 20,880
Loreto 6,248 13,057 18,781 21,133 31,365
Prosperidad 12,438 23,328 33,824 51,189 70,815
Rosario Nd 7,885 12,443 25,436 28,675
San Francisco 16,535 17,636 27,153 43,878 56,968
San Luis Nd 7,531 12,793 18,521 25,901
Santa Josefa 1,687 3,601 6,604 11,392 22,730
Sibagat Nd Nd Nd 24,004 28,685
Talacogon 4,861 7,719 11,452 21,655 30,879
Trento Nd 11,815 19,257 31,313 41,696
Veruela 2,914 6,626 13,991 20,129 36,222
Province: Compostela Valley
Municipality Compostela 20,444 17,159 30,538 53,546 61,667
Laak Nd Nd 31,581 35,895 59,450
Mawab 7,818 13,537 20,960 28,072 32,003
Maco Nd 29,693 41,017 55,991 65,181
Maragusan Nd Nd 20,220 40,982 45,937
Monkayo 16,062 24,597 37,571 58,239 85,830
Montevista Nd 11,945 20,626 29,789 33,225
Nabuntaran 21,860 27,689 37,292 53,410 60,543
New Bataan Nd 19,978 32,887 39,629 42,549
Pantukan 16,493 21,890 30,281 46,300 61,801
Totals: 417,088 569,221 871,374 1,252,340 1,570,978
Annual Population Growth (%) 3.16% 4.35% 3.69% 2.30%
Source: National Statistics Office (NSO)
Unlike other river basin systems, the population in the ARB does not substantially decrease
further upstream. Municipalities in Compostela Valley that constitute the upstream section have
548,168 inhabitants in 2000, a figure as much as those located downstream and midstream;
3-15
respectively, 463,498 inhabitants in Agusan del Norte was and 559,294 inhabitants in Agusan del
Sur for the same period. (Figure 3-5)
35% 30%
35%
Agusan del Norte Agusan del Sur
compostela Valley
Source: NSO
Figure 3-5 Percentage Distribution of the ARB Population by Province, 2000
(b) Geographic Distribution of the Population
The population within each section of the Basin though is not evenly distributed. Around 58% of
the downstream population is in Butuan City while the rest are in six (6) other municipalities. In
the midstream area consisting of 14 municipalities, two (2) are already cornering as much as 30%
(i.e., Bayugan 17% and Prosperidad 13%). The population in the upstream is more or less evenly
distributed among its 10 municipalities althousgh Monkayo still stands out as the most populated
(16%). The distribution of the population among the local units does not merely reflect the size of
their area considering that these also assume key roles in the resource use system of the Basin.
Butuan City has most of its wood processing and production industries and is the main
transhipment point of wood products out of the Basin. Bayugan is to a large degree a satellite of
Butuan City while Monkayo is a gold rush area.
(c) Population Growth
The Basin experienced massive population growth between 1960 and 1970 when its population
increased from 417,088 to 569,221, respectively. Within the 10-year period, population growth
was 3.16% per year, a figure slightly higher than the national growth rate of 3.0% for the same
period. From 1970 to 1980, growth accelerated even more at 4.35% yearly, despite a marked
reduction of annual population growth at the national level to only 2.8%. Population growth in the
Basin tapered off to 3.69% annually between 1980 and 1990, although this may still be
considered high considering that the national rate dipped even further to 2.4% for the same
period. Only from 1990 to 2000 did population increase in the Basin resembled that of the national
level by going to the same level of 2.30% per annum.
Population growth in the Basin tends to accelerate as movement into its headwaters becomes
more pronounced. Between 1960 and 2000, the downstream section grew at a conservative
figure of 1.65% yearly, compared to the annual growth of 4.57% for the midstream section and of
4.84% for Compostela Valley for the same 40-year period. The higher population growth in
midstream and upstream sections is largely due to in-migration considering that the rate of natural
increase (i.e., number of birth minus number of deaths) decreases towards the upstream. In 2004,
the highest natural increase occured downstream at 19.31 persons per 1000, compared to its
midstream (18.41 persons) and with Compostela Valley (14.87 persons). (Table 3-15) The
relatively low natural increase in Compostela Valley is due to low birth vis--vis a high death rate.
The natural increase in the whole Basin is 17.53 persons per 1000 or about the same as the
national rate.
3-16
Growth rate is extremely uneven among the municipalities, with only a handful, particularly 3
midstream and 2 upstream, exhibiting population increases at rates higher than the regional
growth rate from 1990 to 2000. These are the midstream municipalities of Sta. Josefa (7.15%),
Veruela (6.05%) and Loreto (4.02%), which are found in the Agusan Marshland; as well as the
upstream municipalities of Laak (5.17%) and Monkayo (3.95%).
The frontier location of these municipalities points not just where the present growth areas are but
also the type of migrants coming in. These are generally primary extractors of natural resources
(timber, minerals and fisheries) and subsistence farmers with low-value skills and cannot be
accommodated in the urban areas. The continuing movement of migrants into these
municipalities was confirmed in barangay meetings where participants estimated that 15-30% of
households settled in their respective barangays only for the last 10 years.
The location of high growth areas and the type of migrants have serious implications not only on
the conservation of Basin resources but also on the control of endemic diseases, protection of
indigenous peoples, and poverty reduction efforts. For instance, the settlers in Las Nieves
consider improvements in irrigation their priority if not, however, for its potential to attract
migrants. Migrant entry is believed to lead to further degradation of their watershed, increase the
threat of exposure to schistosomiasis, and among indigenous people, the risk of being
dispossessed from their lands.
Table 3-16 Crude Birth Rate and Death Rate (Per 1000 population) ARB, 2004
Agusan del Agusan del
Particulars Compostela Valley Average
Norte Sur
Crude Birth Rate 22.8 20.61 18.96 20.79
Crude Death Rate 3.49 2.20 4.09 3.26
Natural Increase 19.31 18.41 14.87 17.53
Source: Provincial Health Office of Agusan Norte, Agusan Sur and Compostela Valley
(d) Gender, Age and Household Distribution
Sex Ratio. The Basin has more men than women. The ratio is not widely skewed but is drifting
towards greater male dominance. Unlike in 1980 and 1990 where the sex ratio was constant at 94
women per 100, the trend for 2000 shows the relative decline of women at 91 per 100 men.
(Table 3-15) Throughout the Basin, the relative dominance of men in number could be observed
although it is in the downstream section where the largest reduction in the number of women have
been noted from 1980 to 2000. While quite stable in upstream and midstream sections, the sex
ratio downstream has dropped from 98 in 1980 to only 88 in 2000. The reason for this may be that
which enables men to keep their numerical dominance in the Basin; namely, the predominance of
economic opportunities largely based on extractive industries that tend to favor men.
Agusan del Agusan del Compostela
Particulars Total
Norte Sur Valley
No. of Women Per 100 Men (%)
1980 98 93 91 94
1990 97 93 92 94
2000 88 93 91 91
No. of Dependents per 100
Economically Active Adults (%)
1980 87 97 88 90
1990 78 89 94 87
2000 75 84 73 78
Average Household Size
1980 5.9 5.8 5.6 5.7
1990 5.6 5.7 5.5 5.6
2000 5.3 5.4 4.8 5.1
Source: National Statistics Office
3-17
Dependency Burden. Age distribution reflects the degree of dependency burden. The young (14
years and below) and the elderly (65 years and above) are considered dependent on
economically active persons (15 - 64 years old). In 2000, the age distribution in the Basin
indicated a young population that translates to a high dependency ratio of 78% or a total of 78
dependents for every 100 economically active persons. This is a marked improvement from 1980
and 1990 when the dependency ratio stood at 90 dependents and 87 dependents, respectively,
per 100 economically active adults.
Nonetheless, the 2000 dependency burden is still heavy with almost every economically active
person having one dependent to support. A high dependency ratio puts most of personal income
to support dependents rather than on savings that can be mobilized for investment. A high
dependency ratio also means higher government expenditure on basic services such as
education and health and, at the same time, lower revenues considering that the young does not
pay taxes. It has been pointed out, however, that many children in the study areas leave school
early to earn money at the earliest opportunity.
The decline in dependency burden between 1980 and 2000 occurred in all three (3) sections of
the Basin. However, the largest manifested in the upstream (Compostela Valley) where the
number of dependents per 100 economically active adults went down from 88 to 73 persons. The
reduction is almost the same in the midstream (Agusan del Sur) although its dependency burden
by 2000 remains to be the heaviest at 84 dependents per 100 economically active adults. For the
same year, there were only 75 in the downstream and 73 in the upstream.
The decline of the dependency burden is reflected in household size. The size of an average
household in the Basin shrank from 5.7 members in 1980 to 5.1 in 2000. With fewer children, the
household has become smaller and easier to manage. Having the least heavy dependency
burden, the upstream section has correspondingly the smallest average household with 4.8
members in 2000 compared to 5.7 in 1980. In 2000, downstream and midstream sections have
the largest households at 5.3 and 5.4 members, respectively. The average household size in
these areas is also getting smaller but not at the same rate upstream.
(e) Ethnicity
The 2000 NSO census came up with over a hundred self-ascribed ethnic categories in the Basin
thus reflecting the diversity of its ethnic composition after more than half a century of in-migration.
Nevertheless, the Bisaya or ethnic group from Central Visayas emerged dominant in the Basin.
Their dialect is also called by the same name or alternatively Cebuano or Boholano as is being
used in the island of Cebu and Bohol. In 1980, 83% of the population in the Basin reported Bisaya
as their mother tongue, the proportion barely changing in 1990 (Table 3-16). By 2000, the mother
tongue of Bisaya was reported only by 60%, suggesting greater ethnic diversification occurring in
the Basin during this period.
Table 3-16 Mother Tongue in the ARB, 1980-2000

Agusan del Agusan del Compostela Total
Mother Tongue
Norte (%) Sur (%) Valley (%) (%)
1980
Cebuano/Binisaya/ Boholano 93 74 82 83
Manobo 1 12 - 4
Mamanwa - - - -
Mandaya/Mansaka - 1 3 1
Higaonon - - - -
Others 6 13 15 12
Total 100 100 100 100
1990
Manobo 1 12 - 4
Mamanwa ` 1 - -
Mandaya/Mansaka - - 6 2
Higaonon - - - -
3-18

Mother Tongue
Others 9 14 12 12
Total 100 100 100 100
2000
Manobo 1 15 - 6
Mamanwa - - - -
Higaonon 1 2 - 1
Others 41 30 21 30
Total 100 100 100 100
The Bisaya were most dominant in Agusan del Norte in 1980, composing 93% of its population. In
comparison, its respective populations in Agusan del Sur and Compostela Valley were only 74%
and 82% of the total. Generally, the most drastic ethnic diversification occurred also in Agusan del
Norte. Correspondingly, its Bisayan population fell to only 57% in 2000 while an increase in non-
indigenous ethnic groups was experienced. The decline in Bisayan populations also manifested in
the two other provinces although not as sharply. For the whole ARB, non-indigenous ethnic
groups constituted a mere 12% in 1980 but already accounted for 30% of the total in 2000.
Ethnic diversification in the Basin turned IPs from a majority to a minority in less than 50 years.
Between 1980 and 1990 when migration-fueled population growth was very high, IPs composed
only 5-6% of the total population. When such growth tapered off between 1990 and 2000, the
proportion of IPs increased to 10%, as indicated not only by the number of persons using
indigenous language but also by those with indigenous ethnicity (Table 3-17).
Table 3-17 Population by Ethnicity in the ARB, 2000

Ethnicity
Manobo 1 16 - 6
Mananwa - - - -
Higaonon 1 2 - 1
Others 36 27 17 26
Total 100 100 100 100
The pattern of IP distribution in the Basin and of groups living in its downstream, midstream and
upstream sections, as revealed in the NSO census, is also confirmed in barangay studies. In four
(4) barangays downstream, the IPs comprise only 5% (Table 3-18). They are all Manobo with the
highest concentration in Buhang, Magallanes. At midstream, the IPs, which are also all Manobos,
account for an average of 77% of the populations in five (5) barangays, particularly those in
Bunawan. In the upstream, however, the IPs that constitute 23% of the population in nine (9)
barangays, particularly concentrate in upland barangays, and are mainly Mansaka and Mandaya.
Overall, IP groups comprised 38% of the population in barangays studied.
3-19
Table 3-18 Ethnic Groups in Barangays Covered by the Field Study, ARB, 2005
Estimated Size in
Indigenous Average
Location Barangay
People (%)
Population (%)
Poblacion, Magallanes Manobo 1
Buhang, Magallanes Manobo 10
Poblacion, Les Nieves Manobo 5
Maningalao. Les Nieves Manobo 5
Downstream Average 5
Bunawan Brook, Bunawan Manobo 100
San Marcos, Bunawan Manobo 99
Consuelo, Bunawan Manobo 95
Tagbayagan, Rosario Manobo 60
Bayugan Tres, Rosario Manobo 30
Midstream Average 77
Basak, Nabunturan Mandaya/ Mansaka 10
Santa Maria, Nabunturan Mandaya/ Mansaka 3
Mangayan, Panansalan, Tamya,
San Miguel and Ngan, Mandaya/ Mansaka 100
Compostela
Inambatan Mandaya 5
Macopa Mandaya 2
Upstream Average 23
General Average 38
The barangay meetings also confirmed massive and continuing migration into the Basin. While IP
groups are natives to these barangays, settlers came only in the last 50 years. Continuing
migration is confirmed in all barangays except in San Marcos, Bunawan. Noted impetus for
migrants are the influence of relatives who have established an asset base in the barangay as
well as improvements in service and ease in obtaining farmland. The highest influx occurred in
Buhang, Magallanes (40%), Poblacion, Las Nieves (30%) and Bunawan Brook, Bunawan (30%).
In spite of the close interaction of IP groups with outsiders, their worldviews and priorities remain
distinct in many ways.
(ii) Land Ownership
The opportunity to obtain land is one of the strongest pull-factors for in-migration into the Basin. In
its many parts, land is relatively easy to obtain despite laws securing the land and rights of IPs.
Legal tenure to land, however, is hard to come by. Only 52% of households in the Basin own or
are amortizing their home-lot (Table 3-19). The lowest home-lot ownership rate is in Agusan del
Norte (44%), compared to Agusan del Sur (56%) and Compostela Valley (54%). The greater ease
of obtaining secure tenure in these two (2) provinces may partly explain their higher in-migration
rate.
Table 3-19 Land Ownership among Households in the ARB, 2000
Agusan Agusan
Compostela
Particulars del Norte del Sur Total
Valley (%)
(%) (%)
Households who own their home lot 44 56 54 52
Households who own land other than a
36 80 30 44
home lot
Type of land Owned
Other Residential Land 31 27 24 26
Agricultural land 55 56 61 58
CLT-Acquired Land 8 9 10 9
Other land 6 8 5 7
Total 100 100 100 100
3-20
Households owning pieces of land other than their home-lot are even fewer, comprising only 44%
in the Basin. The highest ownership rate is in Agusan del Sur (80%), relative to those exhibited in
Agusan del Norte (36%) and Compostela Valley (30%). About 58% of these non-home lands are
agricultural.
This home-lot ownership rate obtained from the NSO census agrees with the results of the
barangay study. Participants herein estimated that only around 52% of households in their
barangays have land titles, acquired mostly through the Comprehensive Agrarian Reform
Program (CARP) (Table 3-20). Most of those with titles are in the upstream (72%) as compared
to those in the downstream (34%) and midstream (42%).
Table 3-20 Estimated Percentage of Households With Titled Land in Study Barangays,
ARB, 2005
Estimated Size
Average
Location Type of Title of Title
(%)
Holders (%)
Poblacion, Magallanes Regular Title 30
Buhang, Magallanes Regular Title 40
Poblacion, Las Nieves Regular Title 33
Maningalao. Las Nieves No data
Downstream Average 34
Bunawan Brook, Bunawan Regular Title 75
San Marcos, Bunawan CADC 100
Consuelo, Bunawan Regular Title 25
Tagbayagan, Rosario Regular Title 3
Bayugan Tres, Rosario Regular Title 10
Midstream Average 42
Basak, Nabunturan Regular Title 70
Santa Maria, Nabunturan Regular Title 24
Mangayan, Panansalan,
Tamya, San Miguel and Ngan, CADC 100
Compostela
Inambatan Regular Title 90
Macopa CLT* 80
Upstream Average 72
General Average 52
*CLT Certificate of Land Transfer
Providing secure land tenure is expected to stimulate investment and economic activities. It is a
particularly important step in alleviating poverty and supporting the rights of IPs, although also
with caveats as experienced in other projects. 4 In implementation, these risks include resistance
to land titling, illegal logging and mining, falsification of land records, unrestrained population
growth, and conflict between IPs and outsiders.
On the part of the government, there is confusion and contradictions over the interpretation of
land-related legislation and lack of relevant information. The process is also complicated,
expensive and protracted, with loopholes that tend to exclude genuine claimants and enable
opportunists to obtain titles. Tenure security, in general, would have to be linked to other activities
and requires an integrated approach with strong support from the highest levels. In the Basin, It is
an extremely important and highly sensitive issue, for which the success of an IRBM approach
could not do without.
4
The documented experiences of the WB/AusAID-funded Land Administration & Management Project (LAMP) are very
useful in recognising the problems related to land tenure. See Annex A (Bibliography) for more references to project
documentation
3-21
(iii) Livelihoods
Land is the main livelihood base in the Basin. This could be implied from the composition of
formal stakeholders (Table 3-21) whose income sources are largely land-based. This is also
mirrored in prevailing land use where 54% is devoted to forestry and 28% to agriculture (Table 3-
21).
Table 3-21 Land Use and Distribution, ARB, 2005

Agusan del Agusan Compostela
Particulars Total/Average
Norte del Sur Valley
Land Area 4,454.22 8,965.50 4,666.93 18,086.65
% Distribution of Land
Agricultural Area 31 18 30 26
Forest land 52 81 29 54
Mining and Quarrying - - 3 1
Agro-industrial 1 - 1 1
Pasture land 1 - 31 11
Others 15 1 6 7
Total 100 100 100 100
% Distribution of Cropland
Rice 28 24 31 28
Corn 12 18 48 26
Others 60 58 21 46
Total 100 100 100 100
Source: DENR, DA, Provincial Planning and Development Office of Agusan del Norte,
Agusan del Sur and Compostela Valley
Forestlands host agro-forestry plots, and support a range of wood production and processing
industries as well as non-timber forest products (NTFP) harvested at subsistence and commercial
scale. Agusan del Sur has the most forestland (81%), which includes the Agusan Marsh Wildlife
Sanctuary, when compared to Agusan del Norte (52%) and Compostela Valley (29%).
Meanwhile, croplands are cultivated mainly with rice (28%) and corn (26%).
Generally among Basin households, agriculture is important that it is considered the primary
income source. This has been the trend shown in a 2000 study on the Gibong Watershed where
98% of households upstream and 99% midstream relied mainly on farming (Table 3-22). To
more than half of the households in the two (2) sections of the watershed, farming is the only
source of income. In the lower part of the marshland, however, fishing is the year-round livelihood
source, although 62% of them still farm on soil enriched with flood-borne nutrients.
Table 3-22 Main Sources of Household Income, Gibong River Watershed, 2002
Upstream Mid-Stream Downstream

Income Sources
(N=85, %) (N=88, %) (N=55, %)
Farming 59 64 4
Fishing - - 12
Salary/wages 16 1 -
Business operation 2 - -
Farming and others 23 35 58
Fishing and vending - - 24
Fishing and wages - - 2
Total 100 100 100
Source: NIA, Environmental Impact Study of Gibong Irrigation System. 2003
3-22
(iv) Water Systems and Water Use
While land is the main livelihood base in the Basin, water is a vital component. Apart from its wide
use in agricultural production, water is critical for livelihood activities; namely, fisheries, livestock,
fodder production and grazing, and backyard gardens. Water is also indispensable for purposes
of health and sanitation as well as transport and access.
(a) Drinking Water
Access to safe drinking water in the Basin has dramatically improved in the past 20 years. Back in
1980, only 16% of its households drew water from faucets and 21% from deep wells (Table 3-23).
The rest relied on sources considered unsafe such as shallow wells, dug wells, rivers and other
open water sources. By 1990, the proportion of faucet users increased to 32% and to 39% by
2000.
Table 3-23 Sources of Drinking Water among Households, ARB, 1980-1990
Agusan del Agusan del Sur Compostela

Particulars Total (%)
Norte (%) (%) Valley (%)
1980
Faucet 28 8 12 16
Deep well 33 10 19 21
Others 39 82 69 63
Total 100 100 100 100
1990
Faucet 57 16 24 32
Deep well 23 17 22 20
Others 20 67 54 48
Total 100 100 100 100
2000
Faucet 57 28 36 39
Deep well 25 20 22 22
Others 18 52 42 39
Total 100 100 100 100
Between 1980 and 2000, faucet users increased by 23% primarily due to the establishment of 11
water districts in the Basin during the period. The proportion of the deep well users did not change
much though.
Among the three (3) provinces, Agusan del Norte has the most faucet users (57%) while Agusan
del Sur had the least (28%); the difference of which indicates the disparity in investment on safe
drinking water. From 1980 and 2000, the relative increase of faucet users was highest in Agusan
del Norte (29%), in contrast to only 20% in Agusan del Sur, and 24% for Compostela Valley. This
trend tends to suggest a downstream bias in the development of safe water systems. This bias
appears to have prevailed even as Agusan del Sur and Compostela Valley have always been
identified with higher poverty incidence than Agusan del Norte.
It also seems that downstream and midstream sections are getting more drinking water for its
requirements than upstream sections. All the four (4) barangays studied downstream and five (5)
barangays midstream reported sufficient drinking water (Table 3-24). On the other hand, only
75% of households in the upstream reported the same. Nonetheless, barangays that reported
sufficiency in drinking water constitutes 92% of the whole Basin.
3-23
Table 3-24 Consensus on Sufficiency of Drinking Water ARB,

October 2005 (N= 19 Barangays)
Particulars Agusan del Norte Agusan del Sur Compostela Valley Total
Insufficient - - 25% 8%
Sufficient 100% 100% 75 92
Total 100% 100% 100% 100%
However, negative observations on the characteristics of drinking water were expressed in all
barangays especially on water availability (Table 3-25). Meanwhile, among all barangays studied,
those in Compostela Valley report the most problems in water availability and quality.
In the downstream, water availability fluctuates by time of day. For example, the piped system in
some coastal barangays in Magallanes has water for only 1-2 hours a day. There are also
barangays with too few sources. Households collect water from dug wells for bathing and laundry
although these are shared with neighbours.
Table 3-25 Consensus on Drinking Water Characteristics ARB,

October 2005 (N= 19 barangays)
Agusan del Agusan Compostela

Characteristics
Norte del Sur Valley
Water Quality
Unpleasant odour X
Muddy and salty X
Low quality X
Water Availability
Limited to certain locations X
Limited to rainy season X X
Limited to certain hours of the day X
Far from the source X X
Limited number of sources X
No source except rainfall X X X
Dried-up sources X
Water Demand
Increase in population X
In the midstream and upstream, water availability fluctuates by season (rainy versus dry season).
In all sections of the Basin, there are barangays with no source of water at all except rainwater.
Some water sources have reportedly dried up due to forest denudation and overdrawing. Others
are simply contaminated due to poor maintenance. A river in the midstream is no longer used
because of garbage thrown into it. Without any other source, the locals harvest rainwater from
rooftops or buy water at PhP5.00-12.00 per 20-l container.
Observations on water quality also emerged in the down stream and upstream. Water supply
tends to be muddy and salty in downstream while unpleasant in odour upstream. The latter is
attributed mainly to natural mineral content, which turns water yellowish and smelly. Because of
this, water from these sources is usually only for bathing and laundry.
(b) Irrigation Water
As of 2004, about 72% of rice lands in the Basin were already irrigated (Table 3-26), the largest
of which are in Compostela Valley (79%), followed by Agusan del Norte (71%) and Agusan del
Sur (69%).
3-24
Table 3-26 Irrigated Ricelands in the ARB, 2004

Particulars Total
Norte Sur Valley
Total Riceland (ha) 23,414 43,175 23,475 90,064
Area of Irrigated Riceland (ha) 16,557 29,595 18,561 4,713
Irrigated Riceland to Total (%) 71 69 79 72
Source: Department of Agriculture
In spite of the relatively wide coverage of irrigation, irrigation water is judged insufficient in nine (9)
barangays covered by the system and included in the barangay study (Table 3-27).
Table 3-27 Consensus on Sufficiency of Irrigation Water ARB,

October 2005 (N= 9 Barangays)
Agusan del Norte Agusan del Sur Compostela Valley

(%) (%) (%)
Insufficient 100 100 100 100
Sufficient - - - -
Total 100 100 100 100
Insufficiency is generally attributed to limited coverage of the system (Table 3-28). In others, the
system is either non-existent or uncompleted. Interestingly, three (3) barangays (i.e., Maningalao,
Consuelo and Bayugan 3) where the system is incomplete suffer from high schistosomiasis
incidence. Health agencies consider earth canals as one of the prime habitats of host snails.
Table 3-28 Reasons for Insufficiency of Irrigation Water ARB,

October 2005 (N = 19barangays)
Reasons Agusan del Norte Agusan del Sur Compostela Valley

No irrigation system X X X
Limited coverage X X X
(v) Health and Hygiene
(a) Health
The health-poverty link is well established in the ARB. The poor do not only live in conditions that
make them more susceptible to diseases but have also little means to afford medical care. Health
is particularly hard to maintain in the Basin considering its numerous endemic diseases such as
schistosomiasis, malaria, filariasis, heterodiasis and leprosy. Schistosomiasis is generally water-
borne. Although malaria and filariasis are mosquito borne, and heterodiasis is food-borne, their
control largely rests on water management. As such, water management appears to be
instrumental in controlling these preventable yet fatal diseases. Diarrhea is also a water-related
disease prevalent in the area. The Basin also has an incidence of tuberculosis, which along with
malaria, tend to occur in a national scale in the Philippines.
1. Morbidity
The leading causes of morbidity in the Basin and corresponding incidence rates in 2004 are in
Table 3-29. About 4 of 10 major illnesses in the Basin tend to be water-related; namely, diarrhea,
schistosomiasis, intestinal parasitism, and malaria. These illnesses tend to occur in all three (3)
ARB provinces, although there appears to be notable conditions per province. Agusan del Sur
tends to be the most aggravated especially with diarrhea and schistosomiasis, the latter notably
high in the province compared to the others. Malaria occurs mainly in Agusan del Norte while
3-25
intestinal parasitism is pervasive most in Compostela Valley. A brief assessment of several

illnesses is in the succeeding.
Table 3-29 Morbidity (Per 100,000 population), ARB, 2004

Cause Average
Norte Sur Valley
Acute respiratory infection 375 818 470 554
Pneumonia 541 - 240 260
Intestinal parasitism - - 240 80
Diarrhoea and gastro-
388 869 230 495
enteritis
Hypertensive diseases 365 231 170 255
Tuberculosis 93 112 90 98
Schistosomiasis - 276 - 92
Malnutrition - - 80 27
Malaria 58 - - 19
Source: Provincial Health Offices in Agusan del Norte, Agusan del Sur and Compostela
Valley
a. Diarrhoeal Diseases
As to morbidity, diarrhoea ranks high among the three (3) ARB provinces as it does nationwide.
Diarrhea is the leading cause of illness in Agusan del Sur (869), second in Agusan del Norte
(388) and third in Compostela Valley (230). On average, 495 cases of diarrhoea per 100,000
persons were reported in the Basin in 2004. Such high incidence is confirmed in the barangays
studied. Diarrhea has been attributed to poor water quality and limited in two (2) barangays each
in Magallanes and Las Nieves, and one in Bunawan. While considered prevalent throughout the
year in Magallanes, the disease occurs mainly during the rainy season (DecemberMarch) in
barangays found in the Agusan Marsh. In Compostela Valley, minerals in the water are blamed
for diarrhoeal incidence, the most affected of which are children.
b. Endemic and Highly Contagious Diseases
Schistosomiasis. By 2004, schistosomiasis is the third ranked cause of morbidity in Agusan del
Sur (276). Although not within the top 10 in Agusan del Norte and Compostela Valley,
schistosomiasis incidence tends to be high in many places as those reported in barangays
studied in Las Nieves. Higher infection rates were detected in the 5-14 years age group in Agusan
del Sur although this may be due to closer surveillance. In these areas, the DOH is working with
the DepEd to systematically monitor incidence among school children.
Agusan del Sur has reportedly the most number of identified snail colonies in the Basin.
Contagiousness is high because the disease is contracted by mere skin contact with infected
water. The increasing incursion of people into snail habitats and the corresponding reduction of its
natural predators expectedly increase human risks.
Malaria. Malaria is in the top 10 causes of morbidity in Agusan del Norte (93), the province
accounting to about half of all cases in the Basin. The hotspots are Buenavista and Las Nieves.
Although malaria is not that prevalent in the other two (2) provinces, cases have been reported. In
Agusan del Sur, some municipal health workers associate the upsurge of malaria cases with the
presence of insurgents, hose frequent movement does not only put them at high-risk category but
also makes them carriers of the disease.
Other Diseases. Intestinal parasitism that includes heterodiasis is the second leading cause of
morbidity in Compostela Valley (240). Heterodiasis is brought about by the ingestion of worm-
infected and half-cooked freshwater fish, molluscs and crustaceans. The disease has been
reported in Agusan del Sur although it is not among its leading illnesses.
3-26
On filariasis and leprosy, reported incidence is too low to be in the top 10. Filariasis though has
been reported in barangays studied in Rosario and Bunawan. Studies have shown that filariasis
infection is more predominant in areas with wide abaca and banana areas.
Among contagious diseases, tuberculosis is the most prevalent throughout the Basin and belongs
to the top 10 illnesses in all three (3) provinces in 2004; the average incidence noted at 98 cases
per 100,000 population. Agusan del Sur has the highest cases at 112 cases per 100,000
population.
2. Mortality
Diarrhoea and tuberculosis are preventable and curable diseases but in the Basin, these are
leading causes of death. From 1999 and 2004, 5 deaths per 100,000 persons in the Basin have
been attributed to diarrhoea and 15 deaths to tuberculosis (Table 3-30). Note, however, that
among fatal disease, diarrhea is the only one water-related. Although endemic diseases have led
to death, it could go unreported. If such death is reported, the cause can either be misdiagnosed
or attributed to complicating diseases.
Table 3-30 Five-Year Mortality (Per 100,000 Population) ARB, 1999-2004
Agusan del Agusan del

Cause Compostela Valley Average
Norte Sur
Cerebrovascular/ Heart
62 46 92 67
Disease/ Hypertension
Pneumonia 24 14 32 23
Cancer, all forms 25 16 31 24
Tuberculosis 13 7 25 15
Accidents/violence 16 35 48 33
Kidney disease 10 - 10 7
Liver diseases 9 7 9 8
Diarrhea - 6 8 5
Malnutrition - 6 - 2
Source: Provincial Health Offices in Agusan del Norte, Agusan del Sur and Compostela
Valley
It should also be pointed out that accidents and acts of violence are the 2nd most common cause
of death for all three (3) provinces, the highest incidence recorded in Compostela Valley at 33
cases per 100,000 persons. This is suggestive of its relatively unstable peace and order climate,
to include here the incidence of armed conflict between the government and insurgents, and
social volatility in such areas as mining areas.
(b) Hygiene
The state of hygiene is a factor in the spread of both endemic and contagious diseases, and is
reflected in the management of human waste, particularly with the use of toilets and type of toilet
used. In the Basin, human waste management is critical indicator because it is an essential part
in the lifecycle of schistosomiasis and heterodiasis-causing organisms.
The use of toilets in the Basin has improved in the last 20 years. Usage has increased from 88%
of households in 1980 to 89% in 1990, and 94% in 2000 (Table 3-31). This translates to an
expansion rate of 6% in toilet use over the entire 20-year period. By 2000, all three (3) provinces
have high toilet use rates of 90% in Agusan del Sur, 92% in Agusan del Norte, and 96% in
Compostela Valley. Compostela Valley noted the fastest expansion at 0.9% per year, compared
to 0.7% in Agusan del Sur and 0.4% in Agusan del Norte.
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Table 3-31 Rate of Toilet Use of Households by Type of Toilet ARB,

1980-2000
Agusan del Norte Agusan del Sur Compostela

(%) (%) Valley (%)
1980
Water-sealed 73 44 39 52
Pit Type 16 36 53 35
Others 1 1 1 1
None 10 19 8 12
Total 100 100 100 100
1990
Pit Type 15 29 44 30
Others 1 1 2 1
None 11 15 12 11
Total 100 100 100 100
2000
Pit Type 12 28 29 24
Others 1 2 1 1
None 7 8 3 6
Total 100 100 100 100
As for the use of water-sealed toilets that are more sanitary than others, Agusan del Norte posted
the highest at 80% in 2000. In relative terms, this appears significant considering the use rates of
only 62% for Agusan del Sur and 67% for Compostela Valley. Agusan del Sur particularly stands
out in not only having the lowest rate of toilet users but also of users of water-sealed toilets. It
has also been outpaced by Compostela Valley in recent times considering that in 1990, Agusan
del Sur had more water-sealed toilet users than Compostela Valley (55% versus 49%). Flooding
in the area appears to have stymied wider use of water-sealed toilets thereby also defeating the
purpose of containing human waste.
The need to manage human waste better in flood-prone and water-based settlements has been
identified an urgent problem in barangays studied in Agusan del Sur. Households have exerted
efforts to better manage their waste although the technology that suits their water-logged
environment eludes them. Compounding this are the garbage and run-off coming from mining and
plantation areas. Waste from animal farms, wood processing plants and even hospitals are also
reported to find their way into their waterways. The absence of comprehensive Basin-wide solid
and liquid waste management system has endangered not only its natural environment but also
the lives of its people.
(c) Health and Development Interventions
Endemic and contagious diseases in the Basin are linked not only to poor sanitation but also to
deficient environmental management. A development intervention without thorough
understanding and consideration of the nature of these diseases can exacerbate their hazards
and heighten human exposure. For instance, irrigation systems, if not managed well, can expand
the colonies of schistosomiasis-hosting snails and breeding grounds of malaria vector
mosquitoes. Meanwhile, road construction can bring in workers who can contract and transmit
tuberculosis. Unfortunately, people who suffer the most when these hazards are exacerbated are
also those beyond the reach of the formal health system. They happen to be the poorest of the
poor whose only viable capital for development is good health.
Even those within the formal health system, however, are not guaranteed with adequate service.
As one of the poorest regions, Caraga holds the third lowest spending on healthcare in the
country. As of 2003, the region posted an average family annual health expenditure of
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PhP1,722.00. Region XI (Davao Region) is slightly better at PhP2,462.00 although both are still
lower than the national average of PhP2,660.00 (NSO, 2003).
Sectoral projects that integrate various concerns are already being implemented in the Basin.
Agreement exists among agencies to incorporate health in other government services. The DOH
and NIA in Agusan del Sur is, for instance, working together to prevent further aggravation of
hazards from endemic diseases arising from irrigation. Meanwhile, the DOH and DepEd are
jointly engaged in disease surveillance among school children. More efforts in this direction have
to be done to attain more integration in Basin development.
(vi) Use of Wood Resources
Together with land and water, forests complete the triumvirate forming the entire livelihood base
of the Basin. The number of stakeholder groups dependent on forest products underscores its
importance. This is the reason behind intense concern over forest destruction occurring
throughout the Basin. The role of the forest in the day-to-day life of its inhabitants is essential,
particularly manifesting in food preparation and shelter provision.
Wood and charcoal have always been the primary fuel used for cooking in the Basin, given an
89% usage rate among its households in 1980. At the provincial level, this translated to 90% of
households in Agusan del Sur, 88% in Agusan del Norte, and 92% in Compostela Valley. (Table
3-32)
Table 3-32 Cooking Fuel of Households, ARB, 1980-2000

1980
Wood or charcoal 88 90 92 89
Others 12 10 8 11
Total 100 100 100 100
1990
Others 16 9 15 13
Total 100 100 100 100
2000
Others 44 19 26 28
Total 100 100 100 100
In the recent past, however, the use of wood and charcoal has dropped Basin-wide to 87% in
1990 and 72% in 2000, or a decline of 17% over the 20-year period. Relatively, the largest decline
of 32% was experienced in Agusan del Norte, notably from 88% in 1980 to 56% in 2000.
Correspondingly, the decline in Agusan del Sur was only 9%, and 18% in Compostela Valley.
Similar trends show in the use of forest-sourced products for housing. In 2000, 66% of houses
have walls of wood while 14% were made in bamboo, palm leaves and grass (Table 3-33). Only
10% combine wood with concrete. The use of wood for walling is most widespread in Agusan del
Sur (78%), relative to Agusan del Norte (66%) and Compostela Valley (56%). Meanwhile, the use
of non-wood materials such as bamboo, palm leaves and grass materials are most popular in
Compostela Valley (22%), compared to Agusan del Norte (6%) and Agusan del Sur (10%).
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Table 3-33 Walling Materials Used by Households, ARB, 2000

Norte (%) Sur (%) Valley (%)
Bricks/Concrete 14 6 8 9
Wood 66 76 56 66
Concrete with wood 11 7 12 10
Bamboo/ Sawali, Cogon/ Nipa 6 10 22 14
Others 3 1 1 1
Total 100 100 100 100
The use of forest products as cooking fuel and housing materials will persist in the next 20 years.
With the forests their lifeline, the poor will continue to rely on these materials more than the rich.
(vii) Poverty
(a) Regional Level
The Basin is within two regions (Caraga and Region XI-Davao Region) where poverty is prevalent
and worsening. The situation in Caraga is particularly dismal compared to Region XI, its poverty
incidence of 43.7% in 2000 rising to 47.3% in 2003 (NSCB, 2004). Poverty in Region XI also
worsened during the period but from a relatively lower level of 27.7% to 28.1%. As such, poverty
incidence in Region XI is not as prevalent as in Caraga and its occurrence not as much.
The increase in poverty incidence tends to be marked by a decline in GRDP. From 2000-2003,
per capita GRDP in Region XI and CARAGA also fell by almost 25% and 2%, respectively. One
factor to the sharp GRDP fall in Region XI is the decline in agricultural production by nearly 40%
during the period.
Caraga is identified as one of the most impoverished regions in the Philippines and has been so
for a long time (NSCB, 2005). Between 1997 and 2000, the region had the fourth highest poverty
incidence in the country with 50.2% of its population living below the national poverty threshold
(Reyes and Valencia, 2004). Region XI, meanwhile, had only 36.5% of its population in similar
situation. These figures indicate that although their respective poverty incidence worsened during
2000-2003, these two (2) regions were still better off than during 1997-2000.
(b) Provincial Level
Poverty incidence varies among provinces in the Basin. Recently, Agusan del Sur has the highest
poverty incidence, with an estimated 60-78% of its families described as poor (UNDP, 2005).
Agusan del Norte and Compostela Valley were both estimated as having 46-53% poverty
incidence.
Taken from another view, though, based on the 12 poverty indicators of the Philippine
Government, Agusan del Sur would be considered slightly better off than the two (2) other
provinces (NSO, 2003). The indicators are categorized into three (3) types; namely, (a) survival
indicators (e.g., health and power); (b) security indicators (e.g., housing and employment); and (c)
enabling indicators (e.g., childrens welfare and support organizations). Being so, the indicators
are actually wellness indicators, the degree of attainment of which shows the capacity to be free
from poverty. Using these indicators, which would be referred to here as wellness indicators,
Agusan del Sur has an average wellness rating of of 65.6% while Agusan del Norte and
Compostela Valley have 65.1% and 65.2%, respectively (Table 3-34). Agusan del Sur scored
highest in enabling indicators (62%), Agusan del Norte in survival indicators (71%), and
Compostela Valley in security indicators (81%). The Basin in its entirety has a wellness rating of
65.2%, particularly on the aspect of security which implies that generally 74% of its population are
enjoying security in housing and housing tenure as well as gainful employment of its household
heads and other household members actually working.
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Table 3-34 Wellness Rating of Families by Wellness Indicators,ARB, 2002
Compos
Agusan Agusan
tela Average
Particulars del Norte del Sur
Valley (%)
(%) (%)
(%)
Survival Indicators
With access to safe water supply 84 68 68 73
With sanitary toilet 89 89 96 91
With electricity 72 61 66 66
With access to health facility 39 30 41 37
Sub-average 71 62 68 67
Security Indicators
With housing of strong materials 44 48 71 54
With housing owned or owner-like possession 46 59 70 58
With head gainfully employed 84 91 87 87
With members 18 years old and over gainfully 96 96 96 96
employed
Enabling Indicators
With children 6-12 years old in elementary 93 92 89 91
school
With children 13-16 years old in High School 83 83 70 79
With working children 5-17 years old 14 14 12 13
With member involved in peoples organization 37 57 16 37
Average 65.1 65.6 65.2 65.2
Other than the foregoing, available data suggests that the three (3) provinces in the ARB seem to
be experiencing gradual albeit erratic improvement in living standards. This seems to be apparent
in the ownership of household conveniences. In general, ownership of radios increased although
at a slight degree only from 66% of households in 1980 to 67% in 2000 (Table 3-35). The same
conservative trend is shows in vehicle ownership that increased from 5% in 1990 to only 8% in
2000. It is in television (TV) ownership that marked improvements were noted, from only 3% in
1980 to as much as 34% in 2000.
Table 3-35 Percentage of Households By Type of Conveniences Owned, ARB, 1980-2000

1980
Radio 70 53 72 66
Television 7 1 2 3
1990
Radio 65 47 65 59
Television 23 7 10 13
Vehicle 6 3 4 5
2000
Radio 73 61 70 67
Television 47 26 28 34
Vehicle 10 7 6 8
The pace of improvement varies by province. Between 1990 and 2000, television ownership
improved at a faster rate in Agusan del Norte by as much as 2.4% yearly compared to 1.9% in
Agusan del Sur and 1.8% in Compostela Valley. Vehicle ownership did not expand that much
although the same rate of increase of 0.4% yearly for the two Agusan provinces is higher than in
Compostela Valley (0.2%/year).
3-31
The participants of barangay meetings naturally associated these conveniences and other assets
with poverty and wealth. The poor are said to more likely have untitled land and work as daily
wage labourers. They do not have farm machinery and rely on human labour to performance
tasks. For example among poor farmers, threshing is done with the feet unlike those better off
who rely on mechanical threshers. In other aspects, the wealthy tend to have access to domestic
infrastructure such as piped water that assures them better heath and sanitation.
Those in the barangays also confirmed improvements of ways in life in the Basin by pointing out
positive changes for the last 20 years. About 11 positive changes were identified mostly
concerning public services (transportation, electricity, schools and water availability) and farming
(irrigation, inputs and processing technology). (Table 3-35) In particular, greater access to safe
water is noted in all three (3) sections of the Basin. Meanwhile, those in the midstream appear to
have encountered the most improvements particularly related to farming (i.e., use and access to
farm inputs) and essential infrastructure (i.e., electricity, roads other than clean water supply).
Table 3-35 Positive Changes Noted in the Past 20 Years in Studied Barangays, ARB, 2005
Changes Downstream Midstream Upstream

Positive
Improved transportation facilities X X
Wider coverage of irrigation systems X
Greater availability of electricity X X
Greater number of schools X
Greater coverage of roads X
Greater access to cleaner water X X X
Greater number of rice mills X
Improved technology
Increased farm production X
Easier access to fertilizer X
Wider use of farm machineries X X
Negative
Higher cost of farm production X
Lower rice yield
Greater pollution X
Higher threats of disease from mining X
Lesser mangrove forests X
Reduced fish stocks X
Loss of native species of animals X
Conversely, negative changes have also been experienced; particularly with the depletion of
natural resources, increase in pollution and its hazards, and the high cost of crop production.
Those in the downstream likewise appear to have borne the lot of these negative changes.
Variation in the incidence of poverty among regions, provinces and households as well as its pace
and pattern in the ARB indicates its complexity as an issue. Poverty, however, is definitely linked
to access to natural resources and the ability to use these as assets in the most effective way.
Users with greater economic, social or political weight tend to have more access to these
resources, and influence more its management strategies. Meanwhile, users generally have
different priorities. Those least able to argue their case or bring their needs to the attention of
decision-makers happen to be the least well served. These are usually the poorest, and those
disadvantaged by location or are difficult to target with development assistance due to cultural,
physical, and social barriers such as indigenous peoples.
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(viii) Social Capital
A critical factor that enables the poor to survive poverty and even rise from it is social capital. It
makes development happen even in places wrecked by violent conflict. In the Basin, this is seen
in a network of community members who contribute their time and energy to pursue social and
economic ends of a household or community. Such network operates in varying degrees.
The network operates a cooperative effort mainly to attain social ends. In all sections of the Basin,
the barangays report a cooperative effort on social activities as well as economic activities,
particularly on farming (Table 3-36). Such high level of cooperation in farming is particular
dominant in the midstream where IP groups are a majority in the barangays. Such level of
cooperation also shows in the downstream and upstream but at a lesser degree of 75% among its
people in its barangays.
Table 3-36 Cooperative Efforts in Barangays, ARB, 2005
Downstream Midstream Upstream Average

Activities
(N=4, %) (N=5, %) (N=4, %) (N=9, %)
Agricultural activities 75 100 75 83
Social activities 100 100 100 100
Giving credit or loan 100 75 50 75
Deciding common property use 50 20 - 23
Marketing farm products 50 40 25 38
Accessing domestic water
50 40 - 30
sources
Average 71 56 42 56
As to credit extension, the cooperative efforts of barangays in the ARB tend to vary. In the
downstream, all the barangays note of cooperative efforts in providing credit to a household
although the practice is followed by only 75% of barangays in the midstream and 50% in the
upstream. The level of cooperation, however, tends to be substantially reduced as regards
common property management (23%), agricultural marketing (38%), and water management
(30%). These differences exerted by type of activity points out that there is an embedded local
norm on when and where a cooperative effort can be expected. This norm must be learned and
appropriately applied in planning and implementing projects requiring social mobilization.
x The general conclusion made is that the social situation in the Basin has generally
improved for the past 20 years and its characteristics strongly indicate high absorptive
capacity for development. However, the doors have to be opened much wider for IP
groups so that they can be uplifted with the general population using their own pace and
path to development.
z The migration-fueled growth rate diversifies population composition and turned the IPs
from a majority to a minority. This trend also prompts them to let go of their hold of tracts
of land in the Basin and resources in it.
z The Basin has a number of formal primary stakeholder groups. Their participation though
in basin management is barely tapped because of being largely unorganized in spite of
their strong collective interest. These primary stakeholders can be fully utilized to become
a force that may propel sustainable management of the Basin.
z The standard of living in the Basin has generally improved although at a slower pace
compared to the other parts of the country. This is seen in the rise of access to safe
drinking water, use of sanitary toilets, literacy rate, educational level and even noted
improvement in public services and livelihood technology. The clear task of any basin-
wide initiative should hasten these positive trends, and at the same time evade its social
costs.
3-33
z The rise of standard of living is apparently driven by natural resource use. Livelihood in
the Basin is still mainly based in agriculture and forestry. This will continue in the future
and strengthening resources management should sustained the livelihood systems that
supports the very improvement of this living standard.
z The poor are more dependent on natural resources than the rich not only for livelihood
but also for day-to-day survival. The land and forest are their lifelines, but their use should
be regulated.
z The prevalence of endemic and contiguous diseases is another threat to living standard
improvement. The physical condition of the Basin pose a unique challenge in managing
these diseases and proper sanitation should be considered.
z Poverty incidence varies by geographic location and sector. Households in the midstream
and upstream are poorer than in the downstream. The households in the upland are
poorer than those in the lowland. The indigenous household is poorer than the settler
household.
z The investment on safe water provision seems to favor households in the downstream
area even though they are economically better off than those in the upstream and
midstream. However, investments on irrigation water seem to be equitably spread.
z Social capital is widely used in the Basin, being generally applied to activities with social
ends. Among activities with economic ends, farming is considered an appropriate area for
its application although varying by location and sector. Establishment of alternative
livelihood projects, creation of employment opportunities in the lowlands and promotion of
farming skills should be sustained.
z The traditional resource use and management system of IP groups still operates but is
weakened by years of outside incursion. This is the only system though where they can
operate well. The strengthening of the traditional resource use and management system
within the context of the CADC and CADT area management will be an indispensable
component in upgrading resource management in the Basin.
3-34
REVIEW AND ASSESSMENT OF RELEVANT
POLICIES AND LAWS
4.0 REVIEW AND ASSESSMENT OF RELEVANT POLICIES

AND PLANS
The macro environment confronting the ARB consists of a host of policies, laws and development
initiatives on water resources development and management in the Philippines, including those
affecting individual sector regimes such as environmental management, water rights allocation,
water pricing, and funding. In essence, this macro environment serves to guide the application of
the IRBM approach for the Basin keeping in mind the dictates of policy principles and caveats
posed by experiences and attendant issues on river basin planning and management including
opportunities identified from lessons learned and best practices from notable international and
national projects.
4.1 INTERNATIONAL ORGANIZATIONS INITIATIVES ON WATER MANAGEMENT
There has been a broad global consensus to improve water management and sustainability,
beginning with the Brundtland Commission Report, Our Common Future, in 1987, which raised
the importance of water as a global issue.
The International Conference on Water and the Environment in Ireland in 1992 called for
immediate action to reverse the trends of over-consumption, pollution and threats from drought
and floods.
The World Council on Environment and Development (WCED) reached a consensus that modern
water resources management should be based on four (4) fundamental principles (known as the
Dublin Principles), which are closely related to the social, economic and environmental aspects of
water. First, the ecological principle holds that water is a finite and vulnerable resource that is
essential to sustain life, development and the environment; it argues for an ecosystem and basin-
based rather than sectoral approach to water management. Second, the institutional principle
argues that water management should be participatory involving users, planners and policy
makers at the lowest appropriate level, including women. Third, the gender principle recognizes
the central role of women in the provision, management, and safeguarding of water; and whose
participation and empowerment would have to be incited through positive policies. Finally, the
instrument principle argues that water is a social and economic good that should be valued in all
its competing uses, with appropriate economic incentives to improve allocation and enhance
quality.
The UN Conference on Environment and Development (UNCED) in Rio de Janeiro, Brazil later in
1992 prescribed integrated approaches to the development, management and use of water
resources in Agenda 21. Watershed protection and management, which is a key to IWRM, is
enshrined in Agenda 21 in it calls for sustainable management interventions for forest ecosystems
and woodlands.
The momentum in the water sector was carried further by the World Bank (WB), the UN
Development Program (UNDP), the Swedish International Development Agency (SIDA) and other
institutions through the Global Water Partnership (GWP) in Stockholm, Sweden in 1996. In
succeeding years until 2003, the World Water Council (WWC) conducted three (3) World Water
Forums (WWFs), first in Marrakech, Morocco then in the Hague, Netherlands. The third WWF in
Kyoto, Osaka and Shiga, Japan in 2003 identified the following key action areas to address water
issues: (1) pro-poor water governance; (2) improvement of access to quality water services; (3)
improvement of investments in water-using sectors that will improve access by the poor to
economic and livelihood opportunities; (4) capacitating the poor to access and manage water
resources; (5) improving the resilience of the poor to water-related disasters through preventive,
adaptive and mitigation measures; and (6) community-based, participatory and shared
management of water as a common resources.
4-1
The Millenium Development Goals (MDG) is drawn from the United Nations Millenium
Declaration in 2002. It is a blueprint agreed by the worlds countries and leading development
institutions consisting of eight (8) measurable goals to achieve peace, security, human rights,
fundamental freedom and sustainable development by the year 2015. Among the eight (8)
millennium goals, the objectives related to the environment and with implications to water
resource management are to reduce poverty, combat malaria and other diseases, stop the
unsustainable exploitation of natural resources and reduce to half the proportion of people who
have no access to safe, affordable water and adequate basic sanitation.
4.2 WATER POLICIES OF MULTILATERAL AGENCIES
The above global consensus on water and the environment is now reflected in the policies of
most international agencies.
The Water Policy of the ADB, in particular, recognizes the relevance between water, poverty and
the environment considering its primary mission of poverty reduction. The ADB Water Policy has
the following principal elements: (1) promote a national focus on water sector policy and
institutional reform; (2) foster the integrated management of water resources through water
resource assessments and inter-linked water investments; (3) improve and expand the delivery of
water services through irrigation, water supply and sanitation, emphasizing equity in access to
water for the poor; (4) foster the conservation of water and increase system efficiencies; (5)
promote regional cooperation and increase the mutually beneficial use of shared water resources
within and between countries; (6) facilitate the exchange of water sector information and
experience; and (7) improve governance through decentralization, research and capacity building.
In 1993, the WB endorsed a Water Resources Management Policy Paper (WRMPP). The Policy
Paper defined the WB Water Resources Strategy (the Strategy), which focuses not on water-
using sectors but on the connection between resource use and service management. The
Strategy is comprised of: (1) an institutional framework (legal, regulatory and organizational roles
of basin institutions); (2) management instruments (regulatory and financial mechanisms for water
allocation, demand management, water rights and pricing); (3) the development and management
of infrastructure (including water storage structures and conveyance, wastewater treatment, and
watershed protection); and (4) the political economy of water management and reform (with
emphasis on the distribution of benefits and costs).
Meanwhile, the Japan Bank for International Cooperation (JBIC) and Japan International
Cooperation Agency (JICA), in line with its significant responsibility over Japans official
development assistance (ODA) on the water sector, focus on initiatives that: (1) ensure
sustainable supply of safe water; (2) promote IWRM; (3) conserve the environment by improving
water quality; and (4) secure food through appropriate water use.
The Water for Life initiative of the European Union (EU) is in line with achieving the MDG of
reducing poverty and improving access to water supply and sanitation. These goals are to be
attained through integrated water resource management, better water governance arrangements
and public-private partnerships.
4.3 NATIONAL POLICY OBJECTIVES
The development objectives for the Agusan River Basin vis--vis water resources must be
consistent with many such initiatives to which the Philippines is committed. Presently, Philippine
policy and action agenda on water and operational strategies on the environment (including
watershed resources) are set out in the following context:
a) The Philippine Constitution (1987)
The national policy on water, as a natural resource, is enshrined in Section 2, Article XII of the
Constitution, which insofar as pertinent, reads:
All lands of the public domain, waters, minerals, coal, petroleum and other mineral oils, all forces
of potential energy, fisheries, forests or timber, wildlife, flora and fauna, and other natural
4-2
resources are owned by the State. The exploration, development, and utilization of natural
resources shall be under the full control and supervision of the State. In cases of water rights for
irrigation, water supply, fisheries, or industrial uses other than the development of water for
power, beneficial use may be the measure and limit of the grant.
In similar vein, the Constitution declares State ownership of all watersheds based on the Regalian
doctrine. As such, all watersheds in the country are considered inalienable in character and
therefore cannot be legally privatized. The State also reserves the right for full control and
supervision of the exploration, development, and utilization of watershed resources through its
various instrumentalities.
b) Philippine Agenda on Sustainable Development (1996)
Philippine Agenda 21 is the nation's blueprint for sustainable development. Ecosystem-based

action agenda are laid out in the document for forest and uplands, coastal and marine, urban,
freshwater, lowland and agricultural, minerals and biodiversity. PA 21 also sets the stage for a
paradigm shift in environmental governance, with emphasis on participatory decision-making and
local-level implementation.
Water and environment-related objectives rank high in Philippine Agenda 21; those of which with
relevant importance to the Project include, (i) ensuring sustainable utilization of the countrys
natural resources such as forests, croplands, marine, and freshwater ecosystems; (ii) achieving
and maintaining an acceptable quality of air and water; and (iii) enhancing access to safe and
adequate water for domestic, agricultural and industrial uses.
c) Medium-Term Philippine Development Plan (MTPDP) 2004-2010
As a general strategy, the MTPDP espouses the adoption of the IWRM using ecosystem and
watershed approach to optimize economic and social welfare without compromising the
sustainability of vital ecosystems. This is consistent with the direction set by the 1995 Water
Summit of the GOP for water resources planning and investment.
Specific water sector strategies are 2-pronged: (i) provision of potable water for the entire country
by 2010, with priority given to waterless municipalities (i.e., areas with less than 50% water
supply coverage); and (ii) ensuring clean water resources for the entire country through the full
implementation of the Ecological Solid Waste Management Act (RA 9003) and the Clean Water
Act (RA 9275).
Correspondingly, the environment sector will pursue ecologically sound development and
management of natural resources according to five (5) major thrusts; namely, (i) sustainable and
more productive utilization of natural resources to promote investment and entrepreneurship; (ii)
promotion of responsible mining that adheres to the principle of sustainable development towards
economic growth, environmental protection and social equity; (iii) protection of vulnerable and
ecologically fragile areas, especially watersheds, forests and coastal ecosystems where
biodiversity is highly threatened; (iv) creation of healthier environment for the population by
protecting air and water resources; and (v) mitigation of natural disasters to prevent the loss of
lives and properties. These thrusts are consistent with the 10-Point Agenda of the present
administration. In the area of watershed management, the MTPDP has specifically set the target
of characterizing priority watersheds and rehabilitating 115,777ha of degraded forestlands, which
includes those found in the ARB.
4.4 SECTOR POLICIES
The realization of national development objectives on water resources development and

management under a sustainability ethic are also being pursued in several sector policies. This
move towards policy integration is evident in several policies discussed below although much
remains to be done, for instance, in actual implementation and coordination, as will be tackled in
the later assessment of existing administrative and institutional arrangements in the water
resources sector.
4-3
a) Environment and Natural Resource Sector
The 1995 Philippine Water Summit signalled the shift in government planning and investments in
the direction of IWRM. DENR made a corresponding paradigm shift from forestry and timber
production to integrated ecosystems management that encompasses watersheds, protected
areas and coastal resources within the context of hydrological or river basin boundaries.
In 1998, the Philippine Strategy for Improved Watershed Resources Management (PSIWRM)
was released, which laid out the basis for sustainable watershed management. The PSIWRM
specifically enunciated the need for a demand-driven and community-based approach to
watershed management, where the former is determined by national priorities and concerns while
the latter involves participation of direct stakeholders in plans, decisions and actions in using local
watershed resources. As such, the strategy runs in parallel with IRBM where a bottom-up
participatory approach is critical to ensuring sustainability of management processes. In 2004,
Executive Order No. 318 entitled Promoting Sustainable Forest Management in the Philippines
was enacted.
Meanwhile, in relation to institutional incapacities that are weakening effective policy

implementation and streamlining of development efforts, the World Banks Country Water
Resources Assistance Strategy for the Philippines (2003) is prescriptive in stressing the need to
address the fragmented and uncoordinated management of water by too many agencies and
sectors.
b) Agriculture Sector
The Agriculture and Fisheries Modernization Act (AFMA) is the flagship policy of the sector. It
aims to modernize agriculture and fisheries development through sustainable use of natural
resources and technological innovations in support of industrial development. The strategy is to
delineate Strategic Agricultural and Fisheries Development Zones (SAFDZs) in appropriate rural
areas throughout the country, which shall serve as centers to catalyze agriculture and fisheries
development in environmentally and socio-culturally sound manner. The protection of watersheds
is a salient component of the strategy to support the sustainability of water resources for the
SAFDZs.
c) Industry and Service Sector
The groundwork for private sector participation in environmental management was laid out in
Business Agenda 21, which was adopted by 83 major industry associations. Environmental self-
governance is extended to encompass, apart from large industries, small and medium enterprises
(SMEs), the latter governed by the Magna Carta for Small Enterprises (RA 6977).
The revitalization of the mining industry is now being pursued by the government; with emphasis
on environmental sustainability through the EO 270 of 2004 or the National Policy on Revitalizing
Mining in the Philippines and its Minerals Action Plan (MAP). Enforcement of such policy is vital in
executing effective forms of control to avert further adverse environmental and social
consequences that have long been associated with poorly regulated large and small-scale mining
operations in the country.
4.5 REGULATORY FRAMEWORK
The Philippines has an extensive body of water and other related legislation and regulations
providing legal bases for policies and programs on water utilization, management, and
rehabilitation in the ARB; including those regarding administration and governance, water pricing
and water rights, investments, and human development. There are various cases demonstrating
how the extensiveness of such laws will effectively ensure the welfare of water and related
resources.
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a) Resource Development and Environmental Management
The basic law of the land, the 1986 Philippine Constitution, explicitly recognizes water as a
natural resource and lays down the basic legal framework for environmental governance in the
country. Its Section 16 stipulates that the State shall protect and advance the right of its people to
a balanced and healthy ecology, the protection of such right reinforced by the Philippine
Environmental Policy (Presidential Decree No. 1151) of 1978.
Specific laws translate this basic right to the unique and special utilization of water resources
including forest and watershed resources and thus combined, form an existing legal framework
encompassing basin resources.
The Water Code of the Philippines (PD 1067, 1976) is the basic water law of the Philippines. It is
anchored on the principle that all waters belong to the State. In an earlier law; namely, Article
501, Section 1 (Ownership of Waters) of the Civil Code of the Philippines (RA 386, 1949), the
public nature of water resources have been so defined to cover: (i) rivers and their natural beds;
(ii) continuous or intermittent waters of springs and brooks running in their natural beds and the
beds themselves; (iii) waters rising continuously or intermittently on lands of public dominion; (iv)
lakes and lagoons formed by Nature on public lands, and their beds; (v) rain waters running
through ravines on sand beds, which are also of public dominion; (vi) subterranean waters on
public lands; (vii) waters found within the zone of operation of public works, even if constructed by
a contractor, (viii) waters rising continuously or intermittently on lands belonging to private
persons, to the State, to a province, or to a city or a municipality; and (ix) the waste waters of
fountains, sewers and public establishments.
Under the basic premise of the Philippine Water Code, waters in the country are not subject to
acquisitive prescription. The State may allow the use or development of water by administrative
concession, but the utilization, development, conservation and protection of water resources shall
remain within the control of and regulation by government. National control is further legitimized
under the Public Service Law (Commonwealth Act No. 146, 1936), which prescribes the level of
equity ownership by Filipino nationals in corporations dealing with the operation of certain public
utilities. The law sets such ownership to at least 60 per cent of the capital stock of such
corporations. Water distribution and sewerage systems are utilities that are classified covered by
the citizenship requirement under the Act.
For forest resources and watersheds, the Revised Forestry Code (PD 705, 1975) presently
serves as the basic governing law. The law essentially prohibits the categorization of watersheds
as alienable and disposable and so becoming private lands, and bans logging activities in critical
watersheds. Critical watersheds have been correspondingly defined as those drainage areas of
river systems supporting existing and proposed hydroelectric and irrigation works, and requiring
immediate rehabilitation from long-time and rapid denudation activities. On this account, the ARB
qualifies as a critical watershed requiring serious attention in development planning.
Similarly, the criticalness of upland and forest resources to the point of endangering endemic flora
and fauna as well as traditional cultures and livelihoods is behind the enactment of the National
Integrated Protected Areas System (NIPAS) Act (RA 7586). The Act declares it a policy of the
State to secure for the Filipino people of present and future generations the perpetual existence of
all native plants and animals through the establishment of a comprehensive system of integrated
protected areas within the classification of national parks. The ARB is part of this system of
protected areas as such the disposition of its natural resources faces certain limitations
particularly as to their social and environmental implications.
A related law, meanwhile, specifically addresses the plight of indigenous cultural communities/
indigenous peoples (ICCs/IPs) that are a significant yet vulnerable sector in the ARB. The law
recognizes the traditional rights of IP groups including their rights of access and utilization of
ancestral lands and natural resources in situ as well as their key contributions in participatory
processes. The Indigenous Peoples Rights Act or IPRA (RA 8371, 1997) promotes the rights of
IP groups within the framework of the Constitution, as follows:
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z The State shall recognize and promote the rights of the ICCs/IPs within the framework of
national unity and development;
z The State shall protect the rights of ICCs/IPs to their ancestral domains to ensure their
economic, social and cultural well-being and shall recognize the applicability of customary
laws governing property rights or relations in determining the ownership and extent of
ancestral domain
Under the law, IPs possess rights and responsibilities that also inform on how to harness their
involvement in participatory processes espoused under IRBM for the ARB:
z Right to develop lands and natural resources inside their ancestral domains;
z Right of ownership over ancestral lands, bodies of water traditionally and actually occupied by
them, including traditional hunting and fishing grounds;
z Right to stay in their territories;
z Right to safe and clean water (with the law providing for their access to integrated systems for
the management of their ancestral waters and air space); and,
z Duty to maintain ecological balance by protecting flora and fauna, watershed areas and other
reserves inside their ancestral domains
As for rehabilitating and preserving the environmental values of basin resources, the Philippine
Environmental Code (PD 1152, 1978) has since provided the basic guidelines for protecting and
improving the quality of water resources while also defining the guidelines for surveillance and
mitigation of pollution incidence. In particular, the Pollution Control Law (PD 984, 1976) has been
enforced and contains guidelines for the control of pollution from industrial sources and sets
penalties for violations.
Accordingly, national water classification and water quality standards have been defined in the
following issuances:
i) DENR Administrative Order (DAO) No. 34 of 1990 contains a water classification system
based on beneficial use, arranged in the order of the degree of protection required.
Class AA (public water supply) and SA (waters suitable for fisheries production, national
marine parks and marine reserves and coral reefs, parks and reserves) have generally
the most stringent requirements. Under this system, Upper Agusan River is classified as
Class A water and Lower Agusan River as Class C water by DENR in 1996 by virtue of
Memorandum Circular 97-08.
ii) DAO No. 35 of 1990 prescribes the maximum limit of municipal and industrial wastewater
effluent discharges into waters according to their classification. Both water quality and
effluent standards are given for conventional and other pollutants affecting aesthetics and
oxygen demand as well as heavy metals and other toxic substances.
Concerns on water as a finite resource, and the impending rise of chronic water shortages
brought about by dwindling supply amidst increasing demand and declining quality has in recent
times spurred important legislation to arrest these trends. These legislations are likewise relevant
in perhaps stating the inter-connectedness and thus integral unity of basin resources that,
although not absent in spirit, are not that explicitly recognized in previous policies.
The National Water Crisis Act (RA 8041, 1995) set out the urgency of water reforms in the
Philippines, the government under the Ramos Administration framing these in response to a
water crisis. Supported initiatives not only encompassed the supply, distribution, finance, and
privatization of state-run water facilities but also the protection and conservation of watersheds
and the waste and pilferage of water.
In time with RA 8041 is the Build-Operate-Transfer (BOT) Law (RA 7718, 1994), which
recognizes the important role of the private sector as the main engine for national growth and
development, and provides appropriate incentives to mobilize private resources for financing the
construction, operation and maintenance of infrastructure and development projects normally
financed and undertaken by the Government. These incentives extend to financial incentives,
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some of which are already available under existing laws. The law created an atmosphere of
minimum government regulation and systematic procedures and defined government
undertakings in support of the private sector. Under this law almost all development projects,
including water supply and related investments such as hydropower, may be prosecuted through
the build-operate- transfer (BOT) scheme.
The Clean Water Act (RA 9275, 2004) was later enacted, a landmark law on comprehensive
water quality management that set the stage for formulating an Integrated Water Quality
Management Framework with defined water quality goals and targets and water pollution control
strategies and techniques. Within the context of IRBM, the law calls for the designation of water
quality management areas using physiographic units such as watersheds, river basins or water
resource regions and the preparation of a corresponding 10-Year Water Quality Management
Area Action Plan. It also mandates the preparation of a national program on sewerage and
septage management and the provision of domestic sewage collection, treatment and disposal
throughout the country.
b) Administration and Governance
The National Water Resources Board (NWRB) is the principal entity vested with authority over
water resources in the country. Presidential Decree No. 424 (NWRC Charter) created the
National Water Resources Council (now Board) to coordinate and integrate water resources
development of the country within the context of national plans and policies for social and
economic development.
It was by virtue of Executive Order No. 124-A (1987) that the NWRC was reorganized and
renamed into NWRB. The same law abolished the Rural Waterworks Development Corporation
(RWDC), created in 1980 to provide water supply services in rural provincial areas not covered by
the Local Water Utilities Administration (LWUA) or the Metropolitan Waterworks and Sewerage
System (MWSS).
Water resources management in the Philippines is 3-tiered comprising mainly of: (i) watershed
management; (ii) water resources planning; and (iii) water quality and sanitation. While under the
DENR, the NWRB shares the task of water resources planning with various other entities (i.e.,
GOs and provincial governments) at the national, provincial and sub-sector levels. This is enough
to suggest at this stage the intricateness by which decisions are made but as well as the
tendencies towards slow and delayed responses common in multi-representative planning bodies.
Several legislation, while aiming for decentralization and organizational strengthening, tends to
enhance the diversity and as such, complicatedness of administration and governance in the
water resources sector.
The formation of water districts (WDs) have been ordered under the Provincial Water Utilities Act
(PD 198, 1973), which declared a national policy in favor of the local operation and control of
water systems in provincial areas outside Metro Manila, with WDs authorized to operate and
administer water supply and wastewater disposal systems in local communities. The Act also
served as the charter of LWUA, the agency on the national level entrusted with the promotion,
development and financing of such water districts and other local water utilities.
Meanwhile, the Local Government Code of 1991 effected decentralization of a broad scope of
powers and functions from the central government to local government units (LGUs) consistent
with the policy of developing autonomous and self-reliant LGUs. The Code devolved several
aspects of governance and the delivery of basic services in health, food, and water. The Code
specifically grants LGUs responsibility over the development of surface and groundwater
resources within their boundaries and in some cases have been utilized as the legal basis for the
charging of user fees in resource use.
c) Water Pricing
Policies on water pricing are enforced by at least five (5) entities in the Philippines, with authority
derived from different decrees and executive orders. These lead to differences in application and
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parameters, which are also tied with the nature of water environments concerned and
jurisdictions.
At the national level, the NWRB collects charges for water permits and annual water charges
based on existing water extraction rates imposed by it. Article 83 of the Water Code mandates the
NWRB to levy reasonable fees or charges from water appropriators, except when it is for purely
domestic purposes.
Other than the NWRB, the Laguna Lake Development Authority (LLDA) and DENR also enforce
their own forms of water pricing. From PD 813 as amended and EO 927 (Section 2), the LLDA
exercises exclusive jurisdiction over the Laguna de Bay Basin in the issuance of new permits for
projects or programs involving the use of its surface waters, in imposing necessary safeguards for
the control and management of lake water quality, including the collection of necessary fees. EO
192, on the other hand, grants DENR the right to charge and collect fees related to environment
and natural resource extraction, including the setting of effluent charges and abstraction fees.
Water pricing may likewise be exercised at the local level, with WDs mandated by PD 198
(Section 39) to adopt and levy groundwater fees for any other entities making use of groundwater
in their service areas. Meanwhile, LGUs could also impose fees for water resource extraction
(e.g., charges on ground and surface water extraction exacted by the Provincial Council of
Laguna), with the 1991 Local Government Code being used as legal basis for the setting of fees
for resource extraction.
More needs to be accomplished when it comes to water pricing, especially for raw water. Further
interventions are needed in the aspects of:
i) Developing a rational system for pricing the need for raw water that takes account of
economic, environmental and social equity considerations;
ii) Incorporating cost recovery as a major basis for raw water charging, particularly reflecting
the enforcement and administration of water rights, assessment of collection of raw water
fees, and data collection and management;
iii) Reflecting opportunity or scarcity costs in raw water charges to serve as a check against
over-consumption, especially in light of multiple values accorded to various uses of water
(e.g., irrigation water lower-priced than domestic water);
iv) Piloting raw water pricing within a river basin context, as a way of testing raw water
pricing methodologies and instituting actual administrative procedures in assessment and
collection; and,
v) Resolving conflicting claims among various entities authorized to charge for raw water
abstraction, particularly in the areas of fee setting and collection, management, and
regulation.
d) Water Rights Administration
The administration of water rights in the country is still governed by the Philippine Water Code
and under the jurisdiction of the NWRB. The permitting system, however, is far from perfect in the
light of weaknesses traced to systematic and institutional factors associated with resource
constraints, bureaucratic red tape, conflicts of interest, low awareness on the importance and
process of permitting, and weak enforceability.
The same Water Code allows for the transfer of water rights but only in the context of change in
occupancy or ownership of the property where water is used, or in the ownership of wells. Its
implementing rules and regulations, however, are not specific enough to effect water rights
transfer in the form of a trade or exchange where transactions related to the acquisition,
compensation or revenue generation could be effected to realize efficient and high-value
utilization of water.
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Under this setting, the transfer and trade of water rights in the country would have to be
addressed by initiatives, among others, dealing with the:
i) Establishment of clear guidelines on the possession and transfer of water rights, including
the development of appropriate regulatory and institutional frameworks;
ii) Formulation of guidelines on the possession and transfer of water rights at the LGU level
particularly as regards the exploitation of new water sources, and its administration and
management, as well as the negotiation on such issues as fair compensation to the
rights-transferring LGU and certainty of use rights by the purchasing LGU; and,
iii) Piloting of new water source development involving the transfer of water rights between
LGUs with the end in view of developing a body of principles and procedures from where
such practice could be founded and improved in the course of implementation
4.6 REGIONAL AND PROVINCIAL POLICY OBJECTIVES AND TARGETS
Other than the above national policies, progress in both Caraga and Davao Regions (representing
the 3 provinces and 1 city scoping the ARB Master Plan) are also guided by agro-industrial and
environmental policies advocating economic growth within the framework of sustainable
development espoused under the 2004-2010 MTPDP. These policies tend to acknowledge critical
development needs in sub-basins of the ARB and in some aspects, are setting action agenda
consistent with the IRBM development framework. Corresponding regional and provincial
development programs, however, tend to overlap in priorities and in some aspects, raise
confusion on the geographic scope and development thrusts of provinces and cities being
covered.
4.6.1 Caraga Region
(a) Caraga Regional Development Plan for 2004-2010
The development vision for Caraga as stated in the Caraga Regional Development Plan for 2004-
2010 is, With the blessings of Divine Providence, Caraga by the year 2010 will be equitably
wealthy, integrated to the global economy and in full harmony with nature. Such vision homes in
with its goal of becoming the Fishery, Agri-Forestry, Mineral and Ecotourism (FAME) center of the
country by 2010. Principal objectives include supporting eco-tourism and revitalizing the mining
industry given its competitive advantage of having abundant gold and nickel ore reserves.
Another is by tapping the agriculture, forestry, and fisheries (AFF) sector in its export trade
strategy. Related to this is the development of the Industrial Tree Plantation Corridor pursuant to
DENR Administrative Order No. 99-13. Mining and AFF sectors cover development programs that
would scope strategic areas in the middle catchment of the Basin, notably in Agusan del Sur. To
this end, the Plan prescribes strengthening of the adoption of co-management of natural
resources and watershed management planning.
Specifically for physical planning and sustainable environmental management, the strategic
framework employed is polycentric development wherein a number of urban and rural growth
centers are connected to form a strong competitive network that can sustain and promote
businesses, services and facilities. Two (2) strategic places/zones in the region will be connected
or linked together forming a network, namely: Strategic Economic Development Zones and
Strategic Tourism Development Zones. South Caraga Tourism Zone, which covers the Agusan
Marsh Eco-Tourism Sub-Zone, is identified in the Plan.
Regional spatial organizations based on a balanced network of provinces/cities or local

government alliances shall also be formed to serve as building blocks (basic elements) of
regional polycentric development. Three of the 12 alliances identified relate to the Agusan River
Basin; namely, 1) Agusan Marsh Development Alliance comprised of Bunawan, La Paz, Loreto,
Sta. Josefa, Veruela, San Francisco, Talacogon and Rosario of Agusan del Sur; 2) Lower Agusan
Development Alliance (LADA) composed of Butuan City, Magallanes and Las Nieves of Agusan
del Norte; San Luis and Esperanza of Agusan del Sur; and 3) Agusan del Sur Growth Diamond
consisting of Bayugan, San Francisco, Talacogon, and Trento of Agusan del Sur.
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To support its spatial strategy, the three (3) cities and four (4) provinces in the region pursue
specific functional roles as their contribution to the achievement of the vision. In particular,
Agusan del Norte pursues the functional role as the agri-processing zone and site of industrial
estates and agri-processing centers, while Agusan del Sur serves as the agri-forest processing
zone and the food basket of the region.
Among the notable policy measures to be undertaken are the institutionalization of the Regional
Sustainable Agriculture Land Use Plan (RSALUP), rationalization of development activities in
critical watersheds, and resolution on the conflicting uses within protection and production land
areas.
Relevant priority programs and projects that would be pursued to achieve the long-term goal of
the region are the Comprehensive Land Use Updating, Completion of the Provincial Physical
Framework Plans (PPFPs) and the Regional Physical Framework Plan (RPFP), institutionalization
of the Regional Sustainable Agriculture Land Use Plan, Agusan Marsh Development and
Management Program, and Agusan River Basin Integrated Development Project.
(b) Comprehensive Provincial Land Use Plan/Provincial Physical Framework Plan of

the Province of Agusan del Norte (1993-2002)
The Plan outlines directions for future land use and physical development of Agusan del Norte as
part of the Agusan River Basin Sub-Region, which is one of four (4) growth cores identified for
unified development of Northern Mindanao. The other growth cores are the Macajalar Bay Sub-
Region; Pacific Coast Sub-Region; and Panguil Bay Sub-Region
Agusan del Norte is envisioned to contribute to the development of Northern Mindanao as a major
agri-industrial center of the Philippines through: (i) socio-economic growth and welfare
improvements based on expanded agri-forestry production, wood-based industrial processing and
trade, rationalized mineral extraction and processing; and enhanced food and commercial crop
production; (ii) provision of basic needs/services and homegrown livelihood opportunities for
poverty reduction; and, (iii) improved peace and order conditions through the provision of
livelihood-based reform programs for insurgents (e.g., development and support for livelihood
communities).
Under these objectives, the physical development plan for Agusan del Norte bolsters its being
named as the center of agri-industrialization in the entire Caraga Region. There is concern,
however, on the possible confusion created by its membership within a growth sub-region of
Northern Mindanao under such framework plans. This inasmuch muddles geographic identity
other than possibly sowing inefficiencies in resource and funding allocation.
(c) Agusan del Norte Environmental Management Plan (1999)
The 2-volume EMP of Agusan del Norte has gained urgency in the light of its approval as the
Special Economic Zone of Caraga and the completion of its Provincial Physical Framework Plan.
Its long-term vision is an ecologically balanced environment where natural resources are
sustainably managed by an empowered citizenry for the general well-being of the populace.
In relation to the vision, the provincial EMP enumerated five (5) interdependent goals as follows:
(i) increased food production; (ii) abundant aquatic resources; (iii) productive forest resources; (iv)
a clean and safe environment; and, (v) strong partnership among the government, private sector,
and local communities. These goals are set within a context though of resource competition
where identified stressors/problems/constraints to sustainable development tend to stem from
conflicting priorities in resource development; that in turn bring about adverse consequences to
these very resource ecosystems. The occurrence and nature of environmental problems in
upland, lowland, and coastal areas imply inter-connectedness and as such, any tension occurring
in one ecosystem likewise manifests in the other. Illegal logging and mining activities in upstream
areas in Davao del Norte and Compostela Valley, for instance, generate pollution and
sedimentation downstream while coastal areas are at risk of industrial wastes generated in key
cities such as Butuan.
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As such, the goals above-stated would have to be pursued both with promise and caution in light
of limiting conditions imposed on one by the other. Thus, general strategies to achieve these
goals tend to center on corrective and proactive measures dealing with: (i) resource
enhancement, involving reforestation and mangrove redevelopment, delineation/ protection/
management of ecologically critical areas, soil and water conservation; land use planning and
zoning; promotion and support of alternative income sources and livelihoods; and waste
minimization; (ii) strengthened enforcement of environmental laws and regulations; (iii) education
on environmental concerns; (iv) capacity building for LGUs on the management of environmental
programs; and, (v) establishment of systems and structures for harnessing stakeholder
participation.
Based on the procedures adopted for identifying its priority projects for 1999 to 2003, the Agusan
del Norte EMP was able to elaborate on a project selection process as well as institutional
arrangements for plan implementation that involved municipal and provincial LGUs including staff
of devolved NGAs (e.g., DA and DENR). This involved the creation of a provincial policy-making
body and a technical working group to provide secretariat support. The structuring of EMP
implementation is informative of initiatives to foster province-wide cooperation and coordination as
well as common direction setting in light of shared resources as the Agusan River and its
watersheds.
(d) Comprehensive Provincial Land Use Plan/Provincial Physical Framework Plan of

the Province of Agusan del Sur (1993-2002)
From its physical plans, it appears that similar to Agusan del Norte, Agusan del Sur is also aiming
towards agro-industrialization, a goal contingent on the judicious utilization of its vast agricultural
land and other physical resources. At first glance, this agro-industrialization strategy appears
inconsistent to its being regarded as the food basket of the Caraga region, which entails
protection and/or rehabilitation of food production areas at the expense of commercial production
that is, on the other hand, expanded under the former.
For spatial development, the Preferred Strategy involving the promotion of the Agusan del Sur
Growth Diamond is adopted; a strategy so named after combining the merits of three (3)
alternative spatial strategies (i.e., 2000 trend, rural-focused strategy and IAD Approach). The
Agusan del Sur Growth Diamond is the figure formed after connecting the locations of its five
municipal centers; namely, Bayugan, Prosperidad, San Francisco, Trento and Talacogon.
The Settlement, Land Use, and Infrastructure Plans for the province are contextualized within the
ethic of appropriate land use for better environmental management and enhanced social
wellbeing. Social objectives are particularly oriented towards employment generation and
improved access to infrastructure facilities and support services.
Overall, the Plans advocate for better utilization and management of land resources especially as
regards critical environmental areas. In particular, land-oriented goals tend to reinforce the food
production capacity of Agusan del Sur by dealing with: (i) further identification and delineation of
production and protection areas alongside reclassification of land use in some areas; and, (ii)
conservation of highly suitable agricultural lands, or those with high nature conservation value, or
with extractives or mineral resources. The agro-industrialization strategy, in this case, is founded
on rational mineral production and enhancement of food production for export.
Plan implementation is likewise founded on the institutional goal of improving and strengthening
the capacity for people empowerment by establishing strong linkages between the government
sector, and the non-government sector including other peoples organizations.
(e) Forest Land Use Plan of Agusan del Sur (1997-1998)
While Agusan del Norte has an EMP for its river and watershed resources, so does Agusan del
Sur have a land use plan for its forestry resources. Its Forest Land Use Plan is the product of a
planning exercise conducted as a capability program for provincial and municipal governments
with corresponding technical assistance and funding support. The program essentially applied
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forestland use planning guidelines developed by the Natural Resources Management Program
(NRMP) of the DENR.
The development context of the Forest Land Use Plan of Agusan del Sur actually weaves the
existence and potentials its forest resources with that of the Agusan River and Agusan Marsh
thus imparting an understanding of their inter-connectedness and significant inter-relationships to
realizing overall sustainability. Such is embedded in its development goals and objectives, which
recognized the importance of protecting forestlands: (i) in its natural state, from destructive
settlement and farming practices; (ii) given the water-generating capacity of critical watersheds for
irrigation and domestic use; and (iii) for its productive capacity, in being the source of food, wood
and raw material requirements. Accordingly, the Plan elaborated on three (3) primary uses of
forestlands in Agusan del Sur as follows: 1) Strict Protection areas, 2) Restricted Use areas, and
3) Production Areas. The Forest Land Use Plan contained thematic maps, matrix of issues, and
proposed land use map for each of 13 planning units determined mainly on a watershed basis
such as Wawa and Andanan Watersheds, Gibong Watershed, Simulao Watershed, Logum-
Baobo Watersheds, Ihaoan Watershed, Umayam Watershed, Adgaoan Watershed, Kasilayan
Watershed, Libang-Maasam Watershed, Ojot-Pusilao Watershed and Agusan Marsh.
4.6.2 Davao Region
(a) Davao Regional Development Plan (2004-2010)
The twin environmental objectives of the Davao Regional Development Plan (2004-2010) to
which Compostela Valley is part of are: (a) to improve physical planning and sustainable
management of the environment and (b) to improve environmental quality and harness its
abundant natural resources.
Among the six regional development challenges and opportunities for improved physical planning
and sustainable management of the environment is declining environmental quality and rich
biodiversity and forest resources. Davao Region is reportedly hosting a number of hazardous
waste generating industries while also serving as the home of13 identified NIPAS Areas where
varied and unique habitat types cover a wide range of endemic species of flora and fauna.
The strategic framework for improved physical planning and sustainable management of the
environment entails strategies to be undertaken in order to promote sustainable management and
use of natural resources. These are: 1) strengthened implementation of SAFDZs and Community-
based Forest Management (CBFM); 2) watershed reforestation/ rehabilitation and improvement of
watershed management practices in order to maintain surface and groundwater quality; 3)
renewed implementation of the AFMA, Fisheries Code, National Integrated Protected Area
Systems (NIPAS) Law, Wildlife Resources Conservation and Protection Act (RA 9147), Clean Air
Act, Ecological Solid Waste Management Act and Hazardous Waste Management Act; 4)
harnessing of protected areas for eco-tourism; 5) management and protection of Davao Gulf; 6)
rehabilitation of Mt. Diwata and its environs; and, 7) alleviation of urban migration with aiming
programs aimed towards invigorating local economies to reduce migration tendencies and
encourage migrant return
(b) Compostela Valley Provincial Comprehensive Development Plan/Provincial Land

Use Plan/Provincial Physical Framework Plan for 2000-2010
Its development vision as contained in its Provincial Comprehensive Development Plan/Provincial

Land Use Plan/Provincial Physical Framework Plan for 2000-2010, is Compostela Valley is a
dynamic, empowered and God-loving province where citizens enjoy a better quality of life, with
security and equal access to economic, social opportunities and infrastructure programs/
services, within the context of responsive governance, participatory democracy and sustainable
development anchored on principled leadership.
Development policy is translated in 17 development thrusts, those of which with relevance to

IRBM are as follows: (i) poverty reduction; (ii) enhancement of agricultural development and
achievement of food security; (iii) provision of a balanced, healthy, safe and clean environment;
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(iv) provision of sufficient potable water supply, power, communication, transportation facilities,
drainage and sewerage, and solid waste disposal systems; (v) support to cultural indigenous
people and promotion of cultural heritage; and, (vi) provision of equal opportunities and access to
both men and women in the management of resources.
Overall, the review of policies and plans of regions and provinces covered by ARB Master Plan
revealed several relevant features of development priorities and directions with significant
implications to IRBM planning and implementation:
z It is critical for the master planning of ARB to be consistent with the respective land use and
physical framework plans of concerned municipalities and provinces. Challenges to
distributional efficiency of resources and funding, and the exercise of accountability of
concerned LGUs tend to arise from the muddling of geographic boundaries as some growth
zones are delineated in ways inconsistent with established regional classifications. This is
illustrated by the established inclusion of Agusan del Norte within Caraga in the regional plan,
while considered part of the Agusan River Basin Sub-Region of Northern Mindanao in its
physical framework plan.
z Strategies on agro-industrialization as against food production and environmental
management tend to conflict particularly on how land, forest, and water resources would be
utilized in the face of pollution, physical destruction, and declining quality. Growth strategies
while calling for rational management and utilization cannot help but be impeded by
environmental problems that justify rehabilitation and protection first to sustain growth in the
long term.
z While the inter-relationships and interactions among land, water, forest and other resources
surface, these are not explicitly stated or given emphasis as part of an integrated approach to
development, with the exception, for instance, of the Agusan del Sur Forest Land Use Plan
that was able to drive on the importance of protecting forests and watersheds to sustain total
environmental integrity and the total needs of peoples and local economies. Nevertheless,
such recognition, albeit, in one sector and partly with the EMP of Agusan del Norte is a start
to inculcating holistic perspectives to planning that is critical to driving the IRBM philosophy in
the ARB.
z Sector approach to development planning is still very much entrenched with little or no
reference made in regional or provincial plans of critical interfaces or convergences (e.g.,
resource use for economic growth and state of environmental resources). Mining, for
instance, is poised with uncritical acceptance as a principal development strategy in almost all
regional and provincial plans as if ignoring the inter-dependence of economic and
environmental sectors (and all sectors that is), and the current stresses to sustainable
development of current mining practices and operations in the Basin.
z Institutional processes and arrangements would need to transcend the intra-provincial to work
towards unified development vision at an inter-regional scale. Except for the Agusan River
Basin Integrated Development Project, which is still in the pipeline, unity in recognition of
shared boundaries and resources within the Agusan River Basin has yet to be openly
espoused. The pursuit of localized development is understandable under decentralized
governance; and existing individual natural resource or environmental goals are supportive to
or consistent with IRBM. However, plans set out for shared governance at the Basin level
would spell a difference in initiating the process of integrated planning, consensus-building
and conflict resolution when it comes to the utilization and/or non-utilization (i.e., preservation
or protection) and management of Basin resources.
Overall, the review of relevant policies and laws on water resources management and
development in the country suggests general readiness to accommodate IRBM given guidelines
and procedures overseeing its planning, utilization, protection and rehabilitation. However, the
review likewise reveals significant gaps in legal, organizational, and institutional structures as well
as grey areas in the law that may not be conducive to successful implementation of IRBM when
undertaken under existing frameworks. As such, the Master Plan for IRBM warrants a solid policy
and legal framework founded on applicable existing laws and policies but likewise original in
prescribing directions for such critical water concerns as resource competition, environmental
accountability, economic pricing, and basin administration and regulation. The framework in itself
is not outright perfect but rather evolving along with the learning experience gained as well as the
4-13
depth of solutions and approaches that may be developed from the participatory nature in which
IRBM is proceeding.
4.6.3 Cotabato-Agusan River Basin Development Program (CARBDP)

The Lower Agusan Development Project (LADP) of CARBDP aims to utilize and control the
Agusan River for irrigation and flood mitigation. LADP involves the construction of (1) pump
irrigation systems to serve a total area of 8,320 hectares, and (2) a 15-kilometer cut-off channel to
divert excess floodwaters from the Agusan River into Butuan Bay.
The proposed irrigation systems have two major features. These are the construction of two
pumping plants with a combined capacity of 13.4 cms, about 59 kilometers of main canals, 127
kilometers of laterals and sub-laterals, 48 kilometers of drainage canals and necessary on-farm
facilities. The cut-off channel, on the other hand, which is designed to divert 820 cms of excess
floodwaters, shall have for its additional features, four-meter wide road dikes along each bank of
the channel, a 1.41 meter high tidal barrier, 2.5 meter wide local drainage channels and 132 units
of supply canals and control gates.
4.7 AGUSAN RIVER BASIN WATER POLICY
4.7.1 Assessment of Policy Context
The ARB Water Policy provides a policy framework that will define the directions for water
resources management in the Agusan, within the spirit of IRBM. The Policy takes the Basin as
the geographical point of reference, and the river basin as the platform for which it shall take off.
The aim of the ARB Water Policy is to fill the void and contribute to the efforts of strengthening the
policy environment and institutional framework for carrying out IRBM in the Basin.
The ARB Water Policy takes into context the existing national situation on IWRM, or efforts to
move in this direction, IWRM being the national strategy for water resources development in the
country under the MTPDP 2004-2010.
A review of relevant policies on water generates the following observations of the policy
environment on water resources development and management in the Philippines as shown in
Table 4-1.
Table 4-1 Observations on Policy Environment on Water in the Philippines
Observations Basis
State ownership of water, and participation in the

1987 Philippine Constitution
development and management of water, including
1976 Water Code
administration of water rights (by administrative
concession)
State wields its power through various agencies.
Agency mandate defined according to the use for
water. Thus, the:
DENR-EMB on water quality;

NWRB for coordination of water resources
development and permitting for surface EO 123 ((Reconstitution of NWRB, 2002)
water and groundwater use
MWSS for water supply regulation in Metro
Manila;
LWUA/ WDs for provincial municipal water
supply;
NIA for irrigation water
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Observations Basis
Under this structure, the overlapping of functions in
some aspects could not be avoided; as well as the
fragmentation of priorities and responsibilities.
Devolution of State power on water exists at the local

level, with mandates vested to LGUs on the delivery
1991 Local Government Code
of public services related to water, health, and food.
Exercise of State authority in enforcing IWRM

through the recently created (2006) River Basin EO 51 (Creation of the RBCO)
Control Office (RBCO), and NWRB will focus on EO 123 (Reconstitution of NWRB, 2002)
regulatory aspect. MTPDP 2004-2010 and EO 391 (2004)
The four (4) policy priorities of the RBCO will be the

following:
1. Flood Mitigation
2. IWRM
3. Integrated Watershed Management
4. Wetlands Management
Thus, IWRM will be part of the RBCO priorities.

Lack of updated holistic framework for the integrated
management of water resources in the country. The
creation of the RBCO and the drafting of an
Integrated River Basin Management Master Plan will
PD 424 ( Creation of NWRC, 1974)
address this concern.
EO 51(RBCO Creation)
RA 4850 (1966)
An exception could be found in localized application
of the principles of integration, as founded on the
experience of the LLDA, as a governing authority on
the Laguna Lake and related tributaries.
Water quality foremost is the issue being addressed 2004 Clean Water Act (RA 9275)
by the State. 1977 Phil Environmental Code (PD 1152)
The State has, nonetheless, acknowledged the National Water Crisis Act (RA 8041)
looming water crisis at the national level from the
standpoint of population growth and migration, food
production, and industrialization potentials.
4.7.2 Harmonization of the Basin Policy

The ARB Water Policy has been developed in a way that fits with these existing GOP policies, to
ensure that it embodies its fundamental goals. The manner in which the ARB Water Policy
reconciles with and realizes the GOP policy is indicated in Table 4-2.
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Table 4-2 ARB Water Policy and GOP Water Policy, 2006
GOP Water Policy Contribution of ARB Water Policy

Addresses water quality issues in the Basin from the viewpoint of
environmental remediation built on good database development and
1. The Philippine Clean management. Emphasizes strengthening of the institutional
Water Act of 2004 (RA capacity in water quality data management. The move is similar to
9275) current CWA efforts to improve on institutions and data management
as appropriate starting points to knowing the baseline situation
before the intervention.
While far from depicting a water crisis in the Agusan, the ARB
Water Policy injects awareness and defines the policy and action
agenda to reverse the noted decline in quality and quantity of its
water resources. The Policy responds to critical water resources
2. National Water Crisis
issues that are scoped under the aspects of demand and supply
Act of 1995 (RA 8041)
management, surface water and groundwater management, and
those of special Basin resources with connectivity to the health and
sustainability of water resources (i.e., watersheds, the Agusan
Marsh, and IPs).
The Policy emphasizes local governance and empowerment, at the
3. Local Government
level of LGUs as well as community and individual stakeholders in
Code of 1991
the institutionalization process for IRBM in the Agusan
The Policy provides for the beneficial use of water resources under
existing and future uses (water supply, irrigation) but also taking into
4. The 1987 Philippine
strict consideration the recovery of quality and management issues
Constitution
through better governance, knowledge development and institutional
capability building
Environmental remediation is at the heart of the Policy for surface
5. The Philippine
water and groundwater management where the recovery of water
Environment Code of
quality rests on improved institutional management and good
1977 (PD 1152)
knowledge base development.
The ARB Water Policy strengthens the responsibility system of
6. The Philippine Water stakeholders in the Agusan over the utilization, management and
Code of 1976 (PD safeguarding of its water resources. This is in support of the State
1067) and its overarching ownership and rights over the waters of the
Philippines, as established in the Water Code.
The protection and rehabilitation of the Agusan River, given its
7. EO 138 (Promoting watershed function, is a major area of Policy. This works in parallel
Sustainable Forest with the protection of forests and upland area. Institutional
Management in the mechanisms work on governance and institutional capability building
Philippines) of IPs and local communities, singly and in working partnerships with
the DENR.
The MTPDP 2004-2010 directly promotes IWRM as the national
8. EO 391 strategy for water resources management in the Philippines. The
(Implementation of ARB Water Policy specifically responds to the challenge posed by
MTPDP 2004-2010 and IWRM through an IRBM approach applicable to the unique
MTPIP 2005-2010 characteristics of the Agusan as a water resource region in Northern
Mindanao.
Nevertheless, in formulating the ARB Water Policy, the limitations and observed flaws in
implementation and execution in policy at the national level is taken into consideration. Not only
this, but also the absence of congruence in the manner by which IWRM and IRBM is understood
at the agency and State level.
4-16
As such, in preparing the ARB Water Policy, attention is given to the fostering of a unified policy
environment on IRBM, particularly, on the issues of:
i. Executing and enforcing governance at the national and river basin scale, and
geographical boundaries as well as the political, cultural and socioeconomic mix found
among peoples within these boundaries
ii. Finding the working areas in water where integration could be instituted and how;
iii. Fitting the framework of the IRBM within existing the practice and norms of existing
institutions, while at the same time finding cooperative ways to adapt and be flexible to
changes introduced under IRBM
On these aspects, the ARB Water Policy sets strategic directions initially on five (5) areas:
i. Basin governance
ii. Demand and supply management
iii. Groundwater and surface water management
iv. Management of special Basin resources
v. Organization and management of Basin information
The nature and intent of these five (5) principal elements are so discussed in Table 4-3.
Table 4-3 ARBMP Water Policy, 2006
Principal Element Main Policy Agenda

Formation and operation of the Agusan RBO
1. Governance and
Strengthening of local governments and local stakeholder
Empowerment
groups in coordinating and partnership functions
Use of economic instruments and blending with equity
considerations
2. Demand Management
Improvement of data collection and management for economic
assessment and decision-making
Program development for sub-basins facing water stress
Program development on water allocation and prioritization
3. Supply Management among various water-use categories for stress conditions
Research and development
Basin information management
Environmental remediation for water quality concerns, founded
on institutional strengthening in water quality data management
4. Surface Water and and parallel with strengthening of local governance and
Groundwater Management stakeholdership, and effective law enforcement
Support of groundwater development to augment surface water
capacity
Protection of the Agusan River and watershed functions
Protection of the Agusan Marsh and Wildlife Sanctuary
(AMWS) and cross-sector support in the areas of watershed
5. Management of Special
management, IP development, and flooding and water-related
Basin Resources
risks management
IP development in line with social inclusion, poverty reduction
and local empowerment
Development of database on the physical and non-physical
6. Organization and
Agusan
Management of Basin
Building of good knowledge management practices (e.g.,
Information
monitoring and evaluation)
4-17
4.8 GENDER AND DEVELOPMENT
4.8.1 Gender, Age and Household Distribution
Sex Ratio. The Basin has more men than women. The ratio is not widely skewed but is drifting
towards greater male dominance. Unlike in 1980 and 1990 where the sex ratio was constant at 94
women per 100, the trend for 2000 shows the relative decline of women at 91 per 100 men (Table
4-4). Throughout the Basin, the relative dominance of men in number could be observed although
it is in the downstream section where the largest reduction in the number of women have been
noted from 1980 to 2000. While quite stable in upstream and midstream sections, the sex ratio
downstream has dropped from 98 in 1980 to only 88 in 2000. The reason for this may be that
which enables men to keep their numerical dominance in the Basin; namely, the predominance of
economic opportunities largely based on extractive industries that tend to favor men.
Table 4-4
Gender and Age Distribution of the Population in the ARB, 1980-1990

Particulars Total
Norte Sur Valley
No. of Women Per 100 Men (%)
1980 98 93 91 94
1990 97 93 92 94
2000 88 93 91 91
No. of Dependents per 100
Economically Active Adults (%)
1980 87 97 88 90
1990 78 89 94 87
2000 75 84 73 78
Average Household Size
1980 5.9 5.8 5.6 5.7
1990 5.6 5.7 5.5 5.6
2000 5.3 5.4 4.8 5.1
4.8.2 Gender Analysis
The purpose of gender analysis is to ensure that a development intervention will provide women
and men the same opportunities for contributing to development and sharing its benefits. The
analysis will describe existing opportunity-generating structures to ensure that their operation is
not biased against a particular gender. From the analysis, the issues are identified to ensure that
concerns of both gender are appropriately included in all activities rather than relegated to
women-only projects.
The gender analysis framework presented in Table 4-5 informs on community policies and
institutions on water resources, and their bearing on gender.
Table 4-5
Gender Analysis Framework, ARB, 2005
Level Issue Indicators Tools

1. Types of women/men's
Division of
Communit
agricultural tasks in the productive

agricultural & x Field level gender
cycle - age and economic status
water- analysis
appropriate
y
dependent work x Checklists

2.Gender-specific knowledge
between women
resulting from gender division of x FGD with men and
and men women;
tasks
4-18

1. Adequacy of water access for x Scoring & Ranking of
men/ women's domestic and Water vulnerability
Domestic and
productive needs x Reasons for top rated
2. Conflicts over adequacy of vulnerability issues &
productive uses
supply community solutions
of irrigation
water
3. Gender roles in location x Secondary Data
planning, management and x Community Mapping
maintenance of water sources x Key Informants
1.Men/women's access to
information, training, cash and
Access to and
improved work status
control over
2. Paid/unpaid jobs for men and
resources and
women.
benefits
3. Control over water/water
delivery/ construction facilities
1. Decision making by women/men
re. agricultural activities,
location of domestic water
Management supplies, group membership.
and decision 2. Women/men's access to
making decision makers
3. Women/men's ability to decide
on productive use of assets.
1. Perceived benefits from project
activities and project processes
in relation to costs in time,
Felt benefits labour, and cash, by
versus costs men/women.
2. Experienced negative versus
positive benefits
1. Presence of gender in
implementation policy.
2. Nature of gender-specific
support to staff (eg., transport x Identify organisational
Institutions (Ministries/Project)
facilities/arrangements for constraints

Gender policies
overnight field visits) x Workshops
and strategies in
3. Gender balance in staff x Gender training
Institutional
recruitment for TA/field/admin. x Gender responsive
Framework
staff curricula
4. Management attitudes and x TOR
support for women/gender
x Job descriptions
issues
x Job adverts
1. Gender disaggregated data in
x Gender responsive
planning, monitoring, reporting
TOR
and evaluation
2. Gender balance at field level x Female field staff
3. Cooperation of staff in x Gender balance in
Institutional teams
implementing policies
arrangements
4. Quality and content of training x Support personnel
for x Budgets & equipment
given to male/female staff
implementation x Reports
5. Location of community training
gender sensitive (ie. training x Work plans
conducted in village, not in
centralised location outside
village)
4-19

Presence of women/gender issues
(Macro level
Gender in sector policy. Gender as part of
approach in social equity. Programme actions x Policy Dialogue
Policy
sector policy in line with national policy and Workshops
action plans. x Accountability
mechanisms
Legislation Relevant revisions to legislation to x Checks & balances
support reflect gender and equity concerns
(i) Overall Condition of Men and Women
The difference in conditions of men and women in the Basin shows in literacy education and
health. These indicators point out who are benefiting more from the provision of development
services, and are essential enabling instruments for individuals to develop and make positive
social contributions.
The literacy rate in the Basin increased from 82% in 1980 to 91% in 2000 (Table 4-6). The rate of
increase has been about the same for both sexes. From 1980 to 2000, the literacy rate of men
increased from 82% to 92% respectively. The same trend applied for women whose literacy rates
jumped from 83% to 91% for the same period. The high literacy rate for men and women and the
almost similar growth in literacy rate speaks of equal opportunity of both sexes in acquiring
literacy
Table 4-6
Literacy Level (10 Years Old and Over), ARB, 1980-2000
Agusan del Agusan del Compostela Average

Particulars
1980
Men 87 78 81 82
Women 89 79 82 83
Total 87 78 81 82
1990
Men 95 91 93 93
Women 96 91 93 93
Total 95 91 93 93
2000
Men 95 88 86 90
Women 96 89 89 91
Total 96 89 88 91
Source: NSO
(ii) Gender Situation at the Community Level
The gender situation at the community level manifests in the performance of tasks, decision-
making, and sense of asset ownership, the same indicators used in assessing gender differences
among IPs. Differences in situation generally occur among classes; namely, small landowner,
tenants and wage labourers. The gender situation appears to be consistent among the three (3)
groups. Considering, however, that large-scale landowners are barely represented in the Basin,1
the assessment instead focused on small landowners, tenants and wage laborers.
1
Participants in barangay meetings pointed out that landholdings in study areas are generally small, with
large ones about 3.0ha. In particular, most households do not have their own land as seen in land ownership
data.
4-20
(a) Gender-Defined Tasks
To understand the role of men and women in resource management, farm and household
management activities (including those water-related) in the barangays studied were first
identified. The doer of each activity, whether male or female, was then noted.
The average distribution among women and men of farm and management tasks in selected
barangays in the Basin are in Table 4-7. The number of applicable tasks per group is as follows:
small landowners (22), tenants (23), and wage laborers (21).
Table 4-7
Average Number of Tasks Done by Men and Women, ARB, 2005
Down
Type of Farm Worker and Task Doer Midstream Upstream Total
stream
Small Land Owners (N=13
Barangays)
Men 5 7 5 6
Women 5 5 4 4
Both men and women 7 13 14 12
Non-applicable task s 11 3 5 6
Total 28 28 28 28
Tenants (N=12 barangays)
Men 5 7 5 6
Women 6 6 4 5
Non-applicable tasks 9 2 5 5
Total 28 28 28 28
Wage Labourers (N=10 barangays)
Men 5 6 6 6
Women 6 6 4 5
Non-applicable tasks 9 6 5 7
Total 28 28 28 28
Overall, the number of shared tasks between women and men among all groups and in all three
(3) sections of the Basin tends to be highest compared to those exclusively done by either male
or female. As such, there are 12 gender-neutral activities among small landowners and tenants,
and 10 activities among wage laborers. There are 6 male-dominated tasks each for all groups.
The number of female-dominated tasks is lower though at 5 tasks each among tenants and wage
laborers, and 4 tasks among small landowners. Apparently, gender neutrality is prevalent among
groups although there are slightly more male-dominated than female dominated tasks.
Accordingly, gender neutrality occurs in all sections of the Basin, although this is most
pronounced in the upstream. While male dominance is generally the norm for all remaining tasks,
this is more observable in the midstream and upstream. It is in the downstream where female
dominance is noted, particularly among its tenants and wage laborers.
Men are prime actors in most agricultural activities. However, in most barangays, women are
acknowledged as equally involved particularly in the following: sowing, applying fertilizer,
weeding, crop picking, harvesting and crop processing. Heavier tasks, such as land preparation
and crop loading, usually involved machines and men. Certain tasks, such as winnowing,
marketing of garden vegetables, fruit picking and handling money primarily belong to women. The
activity that primarily belongs to men is fishing although some women in the Agusan Marsh also
fish.
The considerable sharing of tasks between men and women is seen in animal raising, collecting
firewood, drawing water and picking crops. The children of both sexes learn early of this sharing
by being involved in these activities.
4-21
The role of women has apparently expanded through the years. In 9 of the 13 barangays, it is
noted that the women are more involved at present in farm and household management activities
than it was 20 years ago (Table 4-8). Only in three (3) barangays (i.e., Tagbayagan, Basak,
Inambatan) is it reported that women are less involved than before due to the availability of hired
male labor and machinery. Increased mechanization of farming is noted in all barangays.
Table 4-8
Number of Barangays by Type of Changes in Work Distribution Between Men and Women
(last 20 Years Ago), ARB, 2005
Changes Downstream Midstream Upstream Total

No Change Noted 1 1
With Changes Noted
Less Involvement 1 2 3
More Involvement 1 4 4 9
Total 1 5 4 13
Meanwhile, regardless of ethnic group, women invariably hold the household purse strings.
Although the men may market the crop and animals, the proceeds are still handed over to their
wives or mothers.
(b) Decision Making over Resources
Responsibility sharing between men and women of responsibilities shows not only in farm and
household management but also in decision-making. A set of 19 decision situations was
presented during the barangay meeting and participants were asked who decides in each.
On average, applicable decision situations per group are as follows: small landowners (14),
tenants (13) and wage laborers (10). Similar to farm and household management, both the sexes
are involved in decision-making for all groups (Table 4-9). However for other situations, decision-
making vests more on women than men, particularly among small landowners (4) and tenants (4).
Men hold decision-making sway in only 2-3 situations, the least among wage laborers (2).
Table 4-9
Average Number of Decision Situations Handled by Men and Women, ARB, 2005
Type of Farm Worker and Decision

Downstream Midstream Upstream Total
Maker
Small Landowners (N=13 barangays):
Men 2 3 3 3
Women 6 4 4 4
Non-applicable situations 4 6 5 5
Total 19 19 19 19
Men 2 3 3 3
Women 6 3 3 4
Total 19 19 19 19
Men 2 1 2 2
Women 6 1 3 3
Total 19 19 19 19
4-22
A similar pattern occurs in all sections of the Basin although the difference is most marked in the
downstream where on average, female dominance is exerted in 6 decision situations compared to
only 2 where male dominance shows. Gender parity is at least observed in the other two (2)
sections. This is stronger though in the midstream, particularly among tenants and wage laborers
where decision situations are dominated by an equal number of women and men.
It is clear that while there are gender-specific areas of decision, it is shared in most. This makes
gender a weak factor when it comes to decision-making. The men though are overwhelmingly
responsible for settling conflicts. They also take the lead when hiring farm labourers because men
are assumed to better assess the working capacity of hirees. Negotiating irrigation issues is also
a situation where a mans decision prevails.
Women, on the other hand, tend to decide on group membership. While the type of extension
work that focuses on maternal and child health may have encouraged this, the social sphere of
the households external affairs is considered a womans domain. Women also take the lead in
handling money. This is particularly pronounced in managing money using the informal network,
providing or taking loans within the barangay and saving money. The men in most barangays
acknowledge that they never save money although they are more likely to take loans from the
bank than women.
While there is a variation of situations where men and women jointly make the decision, it is
particularly imperative in the disposal and acquisition of assets. In most barangays, it is reported
that if one partner arbitrarily buy or sell a major asset, the eruption of domestic trouble is
inevitable.
(c) Asset Ownership
The sense of ownership associated with gender is seen in who is considered the owner of an
asset. Around 15 assets were enumerated in the barangay meetings. These include not only
material possession (e.g. savings, land, property) but also human capacity and environmental
resources. Education is considered an asset as well as water sources.
Applicable assets or those in the actual possession of groups studied are distributed as follows:
small landowners (12), tenants (11), and wage laborers (8). (Table 4-10) On average, joint
ownership of assets are declared by all groups although this is higher among small landowners
and tenants (6 each). For all other assets, male dominance tends to prevail particularly with small
landowners where men own 4 of 6 separate assets. Gender parity could, however, be observed
among wage laborers where women and men are equal in ownership of assets.
Table 4-10
Average Number of Assets Owned by Men and Women, ARB, 2005
Type of Farm Worker and Owner Downstream Midstream Upstream Total
Small Landowners (N=13 barangays)
Men 4 6 3 4
Women 1 2 3 2
Non-applicable assets 2 1 3 3
Total 15 15 15 15
Men 4 4 3 3
Women 1 1 3 2
Total 15 15 15 15
Men 2 2 3 2
Women 1 1 3 2
Total 15 15 15 15
4-23
The preponderance of jointly owned assets over those exclusively owned shows in all sections of
the Basin. Male dominance, however, in asset ownership is more pronounced particularly among
small landowners and tenants in the downstream and midstream. It is in the upstream where
assets are owned equally between women and men.
Men are more dominant than women as to the number of possessions held exclusively by them,
particularly land. Hardly any women have their name on land titles. Almost no land is conjugally
owned on the title. Compliance with recent revisions in the law that provides equal opportunity to
women in land ownership seems not to have filtered down to the Basin. This is partially explained
by land ceiling legislation. To enable a household to own more land, the first title is put in the
husbands name and the second in the wifes. Yet it proved to be rare for a household owning
more than one piece of land.
Gender disparity in land titling is well recognised. Men also tend to see larger and more valuable
assets as theirs such as vehicles, farm equipment and boats. However, women once again tend
to control any cash assets in the household. Non-material assets such as knowledge and access
to organizations are fairly equally shared, Men, however, tend to have more agricultural
knowledge than women. Meanwhile, education is not a gender but a financial issue. It is the
eldest regardless of gender that will be educated when a household can afford for only one.
The granting of resource titles to men rather than women extends to forest resources, as seen in
the distribution of five (5) types of forest product user and distribution permits. The permits include
rattan harvesting permit and PFDA. Only 20% of the total number of permits is issued to women,
in contrast to 59% of men (Table 4-11). The rest are issued to POs and corporations.
Table 4-11
Holders of Forest Product User and Distributor Permits by Gender, ARB, 2005
Distribution
Type of Permit and Agreement Total Corporation/
Men (%) Women (%)
PO (%)
Private Land Timber Permit 17 47 53 -
PFDA 85 60 24 16
Rattan Harvesting 11 28 9 63
Log Dealership 4 100 - -
Lumber Dealership 50 60 12 28
Average 59 20 21
Source: DENR
4.8.3 Policies and Institutions on Gender
The national policy on gender springs from the Philippine Constitution that provides for the
recognition of the role of women in nation building and ensures the equality of men and women
before the law. This provision ensures that all laws at the national and local level have due
consideration to womens concerns (Section 14). There are also laws that specifically address
womens concerns such as protection from domestic violence and work privileges to attend to
maternal duties. The specific actions on gender are contained in the Philippine Plan for Gender
Responsive Development (1998-2025). The plan has three (3) thrusts: economic empowerment
of women, human rights and women, and gender-responsive governance.
The National Commission of the Role of Filipino Women (NCRFW) is the national government
agency that ensures plan implementation. It oversees the preparation and implementation of
regional gender and development (GAD) plan that is based on the national plan. The Caraga
GAD Plan (2006-2010) focuses on five (5) issues on which its objectives are set; namely, (a)
institutionalization of GAD, women and poverty; (b) violence against women and children; (c)
women and health; and, (d) women and politics (Table 4-12). Each agency with a regional office
has a GAD focal person to ensure that the plan is incorporated in other sectoral plans. These
focal persons constitute the GAD regional council.
4-24
Table 4-12
Key Issues and Objectives of Caraga Gender Development Directional Plan, 2006-2010
Key Issues Objectives

To increase awareness, clarify the guidelines
Institutionalization of GAD on GAD policy, budget utilization, and
implementation
To capacitate women in various areas for
Women and poverty income generation, access to capital and
financing
To reduce violence against women and
Violence against Women and children
children
To ensure access to full and quality health
Women and health
services
To ensure quality participation in policy
making and local governance
Women and politics
To encourage the participation of women
NGO and PO in government effort
The GAD regional plan is in turn translated into provincial GAD plan. Each province in the Basin
has one. A provincial GAD focal person or GAD council oversees the implementation of the
provincial plan and its adoption into a municipal and city GAD plan. The provincial GAD council
may be composed of the GAD focal person from each of office within the province and municipal
GAD focal persons.
The results of GAD implementation have minimal monitoring (Caraga Regional Development Plan
2004-2010). At the regional level, its constraints include the ceiling for GAD budget, allocation
and expenditure of less than 5% and a limited source of funds, currently only from the MOOE.
Another is the lack of permanent or alternative GAD focal persons.
At the local level, Plan implementation is confronted with even more constraints. Some of these
constraints are the following: (1) lack of GAD teams and permanent GAD focal persons; (2) low
GAD budget allocation and expenditure; (3) treatment of the GAD budget as a consolidation of
funds for women-related activities in regular program and not exclusively for GAD; (4) lack of
stakeholder participation in GAD plan preparation; (5) absence of a database on womens
concerns; (6) insufficient womens representation in local development councils; and (6)
inadequate consideration given to violence against women and children.
Further discussions on gender action plan is presented in Annex 4A.
x The review of relevant policies and laws on water resources management and
development in the country suggests general readiness to accommodate IRBM given
guidelines and procedures overseeing its planning, utilization, protection and
rehabilitation. However, the review likewise reveals significant gaps in legal,
organizational, and institutional structures as well as grey areas in the law that may not be
conducive to successful implementation of IRBM. As such, the Master Plan for IRBM
addresses policy and legal framework founded on applicable existing laws and policies,
likewise prescribing directions for such critical water concerns as resource competition,
environmental accountability, economic pricing, and basin administration and regulation.
The framework in itself is not outright perfect but rather evolving along with the learning
experience gained as well as the depth of solutions and approaches that may be
developed from the participatory nature in which IRBM should proceed
x There is a high social and economic cost to polluting the Basin and this should be
sanctioned. Measures to mitigate if not fully eliminate the causes should be identified and
4-25
implemented soonest. Appropriate implementation of laws to address environmental

issues and concerns should be taken into account.
z Opportunities for women to contribute to development and share its benefits are generally
open. The women in the Basin seem to have the same opportunities as men in many
respects. They are just as literate as men and even slightly more educated. Most
decisions and tasks on livelihood and household management are generally shared
between men and women. Equality in these aspects is even more pronounced among IP
groups. Although land is usually titled to the men, the women control the household
purse. However, government sanctioned resource access still favor the men.
4-26
GENDER ACTION PLAN
Final Report
ANNEX 4A: GENDER ACTION PLAN
1.0 INTRODUCTION AND BACKGROUND
This Gender Action Plan (GAP) for the Agusan River Basin (ARB) Master Plan has been
prepared by the Technical Assistance (TA) team in consultation with representatives of the
Technical Working Group (TWG) for the Master Plan, and Caragas Gender and Development
Coordinating Committee (GADCC).
A draft version was circulated to stakeholders in Compostela Valley and Caraga, and discussed
during a GAP Review Workshop held in Butuan City on 2nd March 2006. The document was
subsequently revised to reflect stakeholder views and concerns more effectively. It was subjected
to stakeholder review again in June 2006, following impact assessment of Master Plan proposals.
GAD point-persons from local sites were invited to participate in the June impact scoping, and
their contribution to this GAP is acknowledged.
This document is the final, stakeholder-approved version, for inclusion in the Agusan River Basin
Master Plan.
The objective of this document is to establish mechanisms required to satisfy the provisions of the
Asian Development Bank (ADB) Policy on Gender and Development, hereafter referred to as the
1
ADB Policy .
Specifically, the GAP objectives are to ensure that:
i. Funding proposals included in the Basin Master Plan are evaluated for impacts on women
and men
ii. Gender considerations are mainstreamed in Master Plan proposals.
iii. The GAP links gender equity with IWRM. This means the parameters of
recommendations in this Plan are: co-ordinated development and management of water-
and land-related resources for economic and social welfare.
Gender issues that are not linked, or only indirectly linked, to these parameters, may be
considered suitable for programmes outside the Master Plan
iv. Master Plan proposals are consistent with existing regional Gender and Development
(GAD) initiatives
v. Project implementation mechanisms satisfy the provisions of ADB policy on GAD well as
the requirements of primary and secondary stakeholders
vi. Recommendations improve the status of women, particularly of poor women in the
Agusan River Basin, and improve the participation of women in project implementation
and management
It is stressed that gender concerns cut across all projects and all proposals included in the Master
Plan. Methods to ensure that gender equity is mainstreamed into all such proposals are outlined
in this GAP.
The ARB Master Plan aims at developing IRBM, focusing on coordination between multiple users
and stakeholders of the water and land resources of the ARB. Its goal is to map out a strategy
that, once implemented, will promote optimal development of resources and reduce poverty in the
ARB.
The Master Plan identifies key land and water resource use issues in the Basin, and proposes a
wide range of intervention possibilities (funding proposals) to address these issues. Some of
these interventions will have gender implications in some parts of the Basin. Additional social
assessments and further sub-sectoral plans will be required.
1
ADB, Policy on Gender and Development, May 1998. The term ADB Policy also including relevant policies with
gender dimensions on poverty reduction, impact assessment, etc. See ADBs Handbook on Poverty and Social
Analysis, Handbook on Gender Analysis and Women in Development, and Environmental Assessment Guidelines
2003.
Annex 4A-1 /10

Final Report
Some intervention possibilities can only be more clearly formulated in future planning exercises
after the completion of this TA. In these instances, mainstreaming of GAD to ensure gender
equity in these plans will be required where relevant before implementation of any civil or
watershed management works in order to comply with ADB policy.
Considering that existing gender inequities have been identified based on intensive participatory
consultation with ARB stakeholders during Phase 1 of the TA, and that community participation
will be required in project design once specific interventions have been determined, actions in this
document have only been initially defined.
To ensure the Master Plan is implemented in accordance with policies of both the ADB and the
Government of the Republic of the Philippines (GoP), this document details the following:
i. Gender Analysis Framework Overview

ii. Social Assessment Summary
iii. Gender Related Impact Assessment on Master Plan Proposals
iv. GAP Objectives
v. Implementation Arrangements
vi. Costs and Financing
vii. Monitoring and Evaluation
2.0 GENDER ANALYSIS FRAMEWORK OVERVIEW
A Gender Analysis Framework (GAF) was prepared during Phase 1 of the Technical Assistance
(TA) and revised after fieldwork data analysis (Table 4A-1).
A GAF is a tool to identify who does what, where and when, and for how long. The purpose of
gender analysis is to ensure that development interventions provide the same opportunities and
sharing of benefits to both men and women. It helps the mainstreaming of gender equity into
program activities. The GAF provides a framework to examine gender issues at three different
levels in the ARB: policy, institutional, and community.
Policy. Gender is better integrated into policy and programming in the Philippines than in many
other countries. In 1975, the National Commission on the Role of Filipino Women (NCRFW) was
established. In 1987, the GoP introduced a constitution affirming womens equality with men.
The same year, the Philippine Development Plan for Women was developed, followed by the
Philippine Plan for Gender-Responsive Development (1995-2025), whose preparation and
adoption were co-ordinated by the NCRFW.
NCRFW is the oversight institution mandated by the Philippine government to oversee the
implementation of government policy on Gender and Development (GAD). The agency has the
power to set policies, approve plans, monitor and evaluate their implementation at the national
and local levels, provide technical assistance, and maintain a gender-based data and information
resource center.
Annex 4A-2 /10

Final Report
Table 4A-1
Gender Analysis Framework, Agusan River Basin, 2005-2006

1. Types of women/men's agricultural tasks in x Field level gender
Division of agricultural & water- the productive cycle - age and economic status analysis
dependent work between women appropriate
and men 2. 2. Gender-specific knowledge resulting from x Checklists
gender division of tasks
1. Adequacy of water access for men/ women's x Focus Group Discussions
domestic and productive needs with men and women;
Domestic and productive uses of
2. Conflicts over adequacy of supply
irrigation water x Scoring & Ranking of Water
3. Gender roles in location planning, management & vulnerability
maintenance of water sources
1. Men/women's access to information, training, cash x Cause & Effect Vulnerability
and improved work status Rating & Ranking
Community
Access to and control over

2. Paid/unpaid jobs for men and women. x Secondary Data
resources and benefits
3. Control over water/water delivery/ construction x Community Mapping
facilities
1. Decision making by women/men re. agricultural x Key Informants
activities, location of domestic water supplies, group
Management and decision membership.
making 2. Women/men's access to decision makers
3. Women/men's ability to decide on productive use
of assets.
Differences in Overall Condition 1. Differences in literacy & education
of Men and Women 2. Health Issues
1. Perceived benefits from project activities and
project processes in relation to costs in time, labour,
Felt benefits versus costs
and cash, by men/women.
2. Experienced negative versus positive benefits
1. Presence of gender in implementation policy. Identify organisational
constraints
2. Nature of gender-specific support to staff (eg workshops
transport facilities/arrangements for overnight field
Gender policies and strategies in visits)
3. Gender balance in staff recruitment for gender training
Institutional Framework
TA/field/admin. staff
Institutions (Ministries/Project)
4. Management attitudes and support for gender responsive curricula

women/gender issues
TOT
job descriptions
job adverts
gender responsive TOR
female field staff
1. Gender disaggregated data in planning, gender balance in teams
monitoring, reporting and evaluation
2. Gender balance at field level support personnel
3. Cooperation of staff in implementing policies budgets & equipment
Institutional arrangements for
implementation 4. Quality and content of training given to reports
male/female staff
5. Location of community training gender sensitive workplans
(ie. training conducted in village, not in centralised
location outside village)
Presence of women/gender issues in sector policy.
(macro
Gender approach in sector policy Gender as part of social equity. Programme actions
Policy
level)
in line with national policy and action plans. Policy Dialogue Workshops
Legislation support Relevant revisions to legislation to reflect gender and
equity concerns
Annex 4A-3 /10

Final Report
More recently, a Framework Plan for Women was drafted by the NCRFW. The framework
identifies three (3) priority concerns: economic empowerment of women; protection and fulfilment
of womens human rights; and, gender-responsive governance2.
The NCRFW recognised the need to strengthen the legal framework to enable these policies to
be applied more effectively. Between 1995 and 2003, a series of enabling acts and executive
measures were approved by the Senate. Most importantly, it has supported measures to prepare
guidelines on implementing gender mainstreaming in projects and programs, and in local planning
and budgeting. All line agencies are required to develop and submit to NCRFW and the
Department of Budget Management (DBM) a GAD Plan, allocating at least 5% of their budgets
towards gender concerns.
The implementation of gender-responsive programmes and services is the responsibility of line

agencies and local government units (LGUs), while monitoring and technical assistance support
are the responsibility of the National Economic and Development Authority (NEDA), DBM,
Department of the Interior and Local Government (DILG) and NCRFW.
Institutional. The Caraga Region has a Gender and Development Coordinating Committee
(GADCC), responsible for developing its Gender Development Directional Plan (GDDP) 2006-
2010. This is included in the Caraga Medium-Term Regional Development Plan 2004-2010.
The GDDP focuses on five (5) issues, from which its objectives are derived. The issues are: (1)
institutionalisation of GAD; (2) women and poverty; (3) violence against women and children; (4)
women and health; and, (5) women and politics (Table 4A-2).
Table 4A-2
Key Issues and Objectives of Caraga Gender Development Directional Plan 2006-2010
Key Issues Objectives

To increase awareness, clarify the guidelines on
Institutionalisation of GAD
GAD policy, budget utilisation and implementation
To capacitate women in various areas for income

Women and poverty
generation, access to capital and financing
Violence against women and children To reduce violence against women and children
Women and health To ensure access to full and quality health services
To ensure quality participation in policy making and
local governance
Women and politics
To encourage the participation of women NGOs and
POs in government efforts
Each agency with a Regional Office has a GAD focal person to ensure that the plan is
incorporated in other sectoral plans. These focal persons constitute the GAD Regional Council.
The GAD Regional Plan is in turn translated into the Provincial GAD Plan. Each province in the
Basin has one. A Provincial GAD focal person or GAD Council oversees the plans
implementation, and its incorporation into municipal and city GAD plans. The Provincial GAD
Council may be composed of a GAD focal person in each office, together with municipal GAD
focal persons.
The plans have minimal monitoring. At the regional level, it is constrained by under-utilization of
the 5% budget allocation. Moreover, several agencies do not have a GAD focal person.
At the local level, plan implementation faces even more constraints, including: (1) lack of GAD
teams and permanent GAD focal persons; (2) low GAD budget allocation and expenditure; (3)
2
Country Gender Assessment: Philippines, Southeast Asia Department, Asian Development Bank, 2004
Annex 4A-4 /10

Final Report
non-exclusivity of the GAD budget for GAD purposes as it is a consolidation of funds for women-
related activities in regular programmes; (4) lack of stakeholder participation in GAD plan
preparation; (5) poor database management on womens concerns and inadequate gender
disaggregation of data; (6) limited womens representation in local development councils; and, (7)
limited consideration given to violence against women and children.
Community. Gender analysis at the community level was evaluated in overall differences in the
condition of men and women in the Basin, gender division of labour, access to and control over
resources and benefits, gender differences in decision making and management roles, and sense
of asset ownership. Data gathered reflect where gaps exist between policy, principle and
practice. Information is set out in Annex 1.
3.0 SOCIAL ASSESSMENT SUMMARY
As required by the ADB Terms of Reference (TOR), preparation of the GAP has included a social
assessment (SA) of the Agusan River Basin. This is set out in Volume IIIA (Master Plan Report),
Chapter 2, Section 2.2.4. A more detailed presentation is the TA Working Paper, Social Aspects,
Vol. 1 and 2,
Annex 1 presents a gender profile of the ARB with a selection of data highlights to establish the
background and clarify reasons for recommendations in this GAP. After an introduction to the
ARB, it includes:
i. A description of gender, age and household distribution in the Basin

ii. Poverty and gender in the ARB, examining gender dimensions of poverty, literacy and
education, health and social capital
iii. Community level gender analysis
iv. Gender implications of identified needs, aspirations and preferred options of primary
stakeholders in the Basin, based on intensive consultation
The SA identified key gender issues in the ARB. In some situations, there is no need to consider
separate action. In other situations, there is a need to consider an integrated course of action,
consistent with regional initiatives.
4.0 GENDER-RELATED IMPACT ASSESSMENT ON MASTER PLAN INITIATIVES
Intervention possibilities included in the Agusan River Basin Master Plan are presented by theme.
3
Each theme reflects stakeholder priorities in the Basin. Five priority themes of greatest
importance to the largest number of people in the Basin were identified, with two additional
special case themes:4
i. Water Quality
ii. Flood Management
iii. Water Resource Development
iv. Watershed Management
v. Basin Management
vi. Indigenous People
vii. Wetlands
For each theme, intervention possibilities have been identified.
3
Stakeholder priorities were identified in Phase 1 of the TA. For details on methodology and outcome, see Working Paper
Social Aspect, Agusan River Basin Master Plan Project, Vols. 1 & 2, December 2005. These are part of Volume VIII
(Individual Working Papers) of this Report.
4
These have been initially presented in Volume IIIA (Master Plan Report) of this Final Report.
Annex 4A-5 /10

Final Report
Sector recommendations are assessed for gender impact against key areas of impact as defined
by the TOR. 5 These are found in the chapter on Social Impact Assessment in Volume V
(Project Assessment and Implementation Report).
The Social Impact Assessment includes:
i. Identification of type and location of Basin project proposals
ii. Assessment of potential positive and adverse impacts on men and women in various
locations
Where impacts cannot be assessed at this stage (for example, if land use plans are to be
prepared through sub-basin planning), future impact assessments will be needed as a pre-
condition to budget approval.
5.0 GENDER ACTION PLAN OBJECTIVES
The Master Plan provides a framework for the GAP, but does not over-ride existing adopted
plans.
The intention of including the GAP in the Master Plan is to ensure that any sectoral proposal is
evaluated for gender impact, and that mitigation measures are adequately included as an
absolute pre-condition to any funding approval.
By this very means, the institutionalisation of GAD (Objective 1 of the Caraga GDDP) is improved
by increasing sectoral awareness of the need to consider the consequences of Basin activities on
women as well as on men.
Another reason to include the GAP in the Master Plan is to set milestones whereby the way to
achieving gender equity may be measured. Local goals currently in place can be aligned with
Master Plan goals during strategic planning processes.
The principles of implementation are:
i. Communities and GAD point persons in municipalities are the principal partners
ii. Objectives are in line with existing GAD initiatives and objectives in the Basin
iii. Recommendations are directly linked to physical infrastructure interventions, as well
as to existing planning processes
The GAP objectives are designed to complement and support initiatives already instituted by
Caraga and Region XI. A separate gender-specific project is not recommended. However, it is
recommended that sectoral initiatives included in the Master Plan review and revise their activities
and methodologies to ensure gender equity is mainstreamed into proposals.
There are three (3) GAP Objectives. Each objective has one or more recommended interventions
(Table 4A-3).
5
Section III, Point B, sub-section 1.xi.
Annex 4A-6 /10

Final Report
Table 4A-3
GAP Objectives and Recommendations
ARBMP, 2005-2006
Objectives Recommended Interventions

i. Ensure stakeholder participation is
1. Ensure that funding proposals included in included as a component of continuous
the Master Plan are evaluated for gender impact evaluation
impact ii. Mainstream gender impact mitigation
measures into sectoral planning processes
i. Improve knowledge & awareness of GAD
2. Ensure GAP recommendations are policy, budget utilisation & implementation
consistent with existing ARB initiatives among Basin stakeholders
ii. Involve communities in local development

3. Ensure project implementation initiatives, from planning to implementation,
mechanisms satisfy ADB gender policy as enhancing the participation of women
well as stakeholder requirements ii. Improve knowledge and decision making
capacities by improved database
management
In the following sections, the approach to realizing these objectives and recommendations in the
ARB is discussed. Sections 5.1-5.3 contain the three (3) GAD objectives, respectively; with their
recommendations making up each section.
5.1 GENDER IMPACT EVALUATION OF ARBMP FUNDING PROPOSALS
Gender impact assessment against key areas of affectedness as defined in the TOR has been
conducted. Key impacts of sectoral proposals are outlined in Volume V (Project Assessment
and Implementation Report) of this Master Plan.
5.1.1 Stakeholder Participation in Continuous Impact Evaluation
GAD point persons from local site-specific locations were invited to participate in the assessment
for proposed projects. The impact assessment of Master Plan proposals thus reflects their
important contribution to determining final recommendations, as well as enabling gender
mainstreaming of mitigation measures into the Master Plan.
Another way to ensure that ARB gender mainstreaming remains consistent with regional
initiatives is to involve Caraga and ComVals GADCCs in monitoring & evaluation of GAD
mainstreaming & gender equity in Master Plan implementation.
Involving stakeholder participation improves guarantees that interventions fulfill their original
objectives in ways that satisfy both primary (community) and secondary (agency) stakeholders.
5.1.2 Mainstreaming of Gender Impact Mitigation Measures
Potentially adverse gender impact is alleviated when impact assessment is undertaken

beforehand, particularly in infrastructure activities. This enables mitigation measures to be
integrated into the implementation process.
Building in impact alleviation measures improves knowledge and awareness of gender

consequences of actions, helping to mainstream gender equity, particularly in sectors not usually
noted for integrating gender concerns into their planning and implementation procedures.
Certain mitigation measures to alleviate potentially adverse impacts of Master Plan activities need
to be integrated into each sectoral proposal. The intention is to ensure that not only do social
Annex 4A-7 /10

Final Report
benefits accrue to women, but also that the poor and vulnerable do not feel adverse impacts more
than other sections of society.
Mitigation measures include:
i. Gender disaggregation of data in sectoral data gathering and RBO-maintained database

which is already under way but can improve in some sectors
ii. Ensure increased number of women participating in community organizations tasked to
undertake Basin initiatives in all sectors
iii. Review of land tenure rights for women as part of watershed management
iv. Ensure that the Public Awareness Plan (PAP) includes information and methodologies
appropriate to enable women, particularly the poor, to understand and respond to Basin
initiatives
v. Include options for enabling women to have more access to gainful livelihood activities
vi. Ensure women are directly involved in the planning of domestic water/ wastewater
installation and management programmes, and link this to health-awareness efforts
vii. Improve targeting of LGU GAD of 5% towards livelihood and health initiatives for women
A separate health component is recommended, with three (3) key sub-components. This
includes:
i. Link Department of Health schistosomiasis prevention initiatives with irrigation proposals as

continuation of existing irrigation schemes.
ii. Enhance public awareness and womens involvement in water supply and sanitation
programmes, with Butuan City as first priority. Reasons for recommending Butuan City as
a priority are:
z Size of population involved

z Key location in the Basin
z Extent of water pollution through fecal contamination in the citys potable water supply
and in Butuan Bay
z High rates of genito-urinary infection, particularly among women (second most
important cause of morbidity in Butuan City)
z Gastroenteritis among the top ten most common causes of mortality in Butuan City
iii. Link reproductive health and family planning to the Ligtas Buntis Campaign,6 Technical
Working Group, Department of Health, POPCOM, Philhealth, and LGUs, in an effort to
meet currently unmet needs
5.2 CONSISTENCY OF GAP RECOMMENDATIONS AND ARB GENDER INITIATIVES

THRU KNOWLEDGE AND AWARENESS BUILDING ON GAD
The best way this recommendation can be implemented is to identify some working examples of
how it can be done at municipal levels. Sectoral activities remain the focus of sectoral plans.
Regional GAD initiatives are intended to be well integrated into regional planning, which should
filter down to LGU levels.
One example of this filtering down process could be via water supply and sanitation schemes.
Infrastructure project design must improve its ability to address gender concerns by including
consultation and planning of water supply and sanitation schemes with household users,
particularly with women. There are substantial overlaps here with health consequences and
related health expenditure.
6
Expected to deliver basic information on fertility awareness; national and modern family methods including method
effectiveness, side effects, complications, myths and misconceptions; maternal care, RTIs, Philhealth benefits package on
Family Planning (FP); schedule and location of health facilities where services can be obtained.
Annex 4A-8 /10

Final Report
Apart from the LGU and national agencies, the Basin has councils and boards that link
government players with each other and with non-government players. Some of these councils
were meant to respond to gender concerns. However, their operation and capability need to be
reviewed and improved to sharpen their performance. These councils and boards make
decisions with far reaching impacts on the lives of people, particularly the poor. These agencies
need to be strengthened, particularly those providing land tenure, and managing areas of special
use. Where possible, womens representation in local development councils must be facilitated.
As part of the RBOs coordinating function, capacity building can be provided to units within LGUs
that directly work with womens concerns (MHO, MAO and MSWD). The RBO can also keep
LGUs informed of legislation and incentives to directly address new and emerging issues for
women, thereby improving knowledge and awareness of GAD policy, budget utilisation and
implementation among secondary Basin stakeholders.
5.3 ADB GENDER POLICY AND PROJECT IMPLEMENTATION MECHANISMS
5.3.1 Women and Community Participation in Local Development Initiatives
The poverty level in the Basin deepens as the household is located farther from the market. Even
in more accessible barangays, women are less involved in the farming sector by comparison with
20 years ago. The market is an opportunity provider that if handled well, can uplift a household
from poverty.
Bringing the market closer to poor households requires tangible (e.g. farm-to-market roads) and
intangible (e.g. market intelligence network) infrastructures. However, the closer the market, the
greater the temptation to over-exploit natural resources. A balance between market-driven
extraction with resource conservation must be met to attain economic and environmental
sustainability.
By involving communities in resource management planning and enhancing the participation of

women, particularly in proposals entailing local resource management with income generation
and employment opportunities, much may be done to address womens stated concern with lack
of livelihood options. Further support towards this goal may be included under Watershed
Management and AMWS Management proposals, as well as under the Indigenous Peoples
Development Framework (IPDF), in the Master Plan.
It is essential to ensure that women are involved in the planning and implementation of proposals
related to infrastructure activities such as domestic wastewater management and potable water
supplies. This should be linked to any information and awareness activity included either under
the PAP or health component mentioned above.
5.3.2 Improvement in Knowledge and Decision Making thru Improved Database

Management
One constraint in preparing a Basin-wide plan is the absence of a common database and lack of
gender disaggregated data across sectors. This situation also impedes reliable decision making.
It is essential to establish a common database to which Basin agencies and organizations can
have access, and to ensure that data is gathered and entered in such a way that gender-
differentiated impacts can be evaluated and monitored. This will also improve knowledge and
awareness about GAD issues.
There are numerous Basin initiatives on gender, implemented singly or jointly. Some may be
generating better results than others. These initiatives must be further identified, characterized
and mapped. Information may be kept with the RBO information management system. Basin-
wide interventions must dovetail and supplement these initiatives instead of starting new ones.
Annex 4A-9 /10

Final Report
6.0 IMPLEMENTATION ARRANGEMENTS
Procedures for carrying out gender mainstreaming are already well established in Caraga and
Compostela Valley. The GADCC in Caraga has an established program integrated into the
Regions overall development plan and mainstreamed into all line agencies. It is mandatory for
LGUs to have point persons for gender, and a budget allocation for gender activities.
Individual departments and agencies are responsible for implementing and monitoring their own
GAPs.
Where there is a strong community participation component, women should constitute no less
than 50% of community organizers and committee members for Master Plan initiatives.
Women should be fairly represented at community level during planning processes for Master
Plan initiatives, particularly where it can be anticipated that they might experience strong impacts
(e.g. water supply and sanitation programs).
7.0 COSTS AND FINANCING
The cost for gender-oriented measures will be part of the cost of each subproject.
8.0 MONITORING AND EVALUATION
To ensure that GAP concerns are fully addressed at the earliest stage, it is recommended that
infrastructure initiatives are monitored by GADCC-Caraga, and that a similar GADCC ComVal
performs the same function for projects to be implemented in Compostela Valley.
The review would look at whether potential GAD concerns have been adequately integrated into
sub-sectoral implementation of activities, whether these activities are affecting women
disproportionately, and what mitigation steps can be taken during project implementation.
The GADCCs would also ensure that gender monitoring mechanisms are in place and observed.
NEDA has already developed monitoring guide questions (2002) based on the Caraga GAD
7
Framework. On the other hand, for sectoral activities, the ADB has developed gender checklists
on agriculture, health and water use.
Monitoring and evaluation of field-level activities is the first responsibility of theme-based

Technical Working Groups.8
It has been recommended under other proposals (IPDF) that a Project Management Office (PMO)
is established with a Technical Assistance (TA) team to assist establishing an RBO during its
early stages, and/or to facilitate setting up support structures for basin management. Key to this
is management of a Basin database, harmonising information and documents, and ensuring
gender disaggregation of data at all levels. GAP baseline and monitoring data would be kept by
the PMO and handed over to the RBO/Basin management facility.
7
A Gender Responsive Regional Monitoring and Evaluation System Manual, NEDA-Caraga, ed. by
NCRFW/M.T.M.Rivera, 2002
8
The TWG/TG concept is discussed more in-depth in Volume IIIB (Master Plan Report) of this Master Plan.
Annex 4A-10 /10

INSTITUTIONAL FRAMEWORK
5. 0 INSTITUTIONAL FRAMEWORK
Situational analysis of the institutional setting initially sets the context of institutional participation
in WRM in the Philippines and delves into the institutional issues of Basin development. First
established is the nature of institutional stakeholders involved in the study. This is followed by the
identification and analysis of critical institutional concerns at the national and ARB level. The latter
is a synthesis of findings from FGDs and KIIs conducted, including issues depicting the critical
convergences between environmental problems and institutional weaknesses. Prospects for an
Agusan River Basin Organization (Agusan RBO) are then explored, the centerpiece of which is
the assessment of five (5) working models on organizational development that can be applied to
the ARBO case. From here, imperatives to ARBO formation are derived for use in the formulation
of an institutional development strategy for river basin management in the Agusan, which include
possible funding strategies for the proposed Agusan RBO.
5.1 INSTITUTIONAL PARTICIPATION
5.1.1 Existing Institutional Set-Up in National Water Resources Management
The major components of WRM in the Philippines are vested in the mandates of several agencies
of government. Water resources management is, in particular, divided into three (3) program
areas; namely, (a) watershed management; (b) water resources planning (inclusive of water
resources assessment); and (c) water quality and sanitation.
Watershed management is led by the DENR and assisted by the NIA, Bureau of Soils and Water
Management (BSWM), NPC, WDs and LGUs.
Water resources planning is shared by NEDA, NWRB, inter-agency committees at the national
level; LLDA and provincial governments at the regional level; MWSS, LWUA, DPWH, NIA, DILG,
and DA at the sub-sector level. Water resources assessment is a complementary effort of NWRB,
BRS, PAGASA, LWUA and NPC.
Water Quality and Sanitation is a collaborative undertaking of DOH, EMB and its Environmental
Health and Sanitation (EHS) Section with support provided by MWSS and LWUA.
To reiterate, the NWRB acts as the primary agent of the State in matters pertaining to the control,
supervision and regulation of the use, exploitation, development and protection of its water
resources. NWRB is able to administer and enforce suitable policies and directions in appropriate
water resources management scenarios. There are other agencies as actively involved in WRM
although the nature of their involvement may be of a different dimension.
For the past years, the national government has steadfastly pursued its dedication to developing
a regime of efficient WRM. This is evident in several events of starting with the commissioning of
special water studies in 1993, the Water Summit (1994), the Water Crisis Act (1995), and the
Presidential Task Force on Water Resources Development and Management or PTFWRDM
(1996). In between, several studies of paramount impact to the sector run a parallel course in a
bid to fully rationalize the sector and revitalize it as to both the efficiency of its system and
sufficiency of its service resources.
5.1.2 Institutional Stakeholders in the ARB
Institutional Stakeholders in the Basin come from government and non-government sectors as
indicated below.
z Government Sector, the three (3) provincial governments (Compostela Valley, Agusan Sur,
Agusan Norte) and their municipalities and barangays; City Government of Butuan; and
national line agencies (NLAs) in Region XI and Caraga Region (e.g., DENR, DPWH, NIA,
NEDA, DA, DAR, DTI, LWUA/WDs, NCIP, MEDCO, DIDP)
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z Non-Government Sector, inclusive of the academe, church organizations, NGOs POs (e.g.,
fisherfolk, farmers, women, youth, service providers), forest concessionaires (e.g., IFMA,
CBFM), plantation operators (e.g., banana), IAs, IP groups, and business entities (e.g.,
Philippine Chamber of Commerce and Industry)
The above list of Institutional Stakeholders was initially prepared for the FGD/KII and stakeholder
workshops conducted in Phase I of this TA. The list would be validated and finalized in Phase II
where roundtables and provincial workshops would be conducted as participative platforms to
review, assess, and design a unified Basin Institutional Mechanism for the ARB.
5.2 MAJOR INSTITUTIONAL IMPEDIMENTS
Over the years, pressures on water resources in the Philippines have steadily increased and
weaknesses in management, both in concept and in implementation, have become apparent.
This section elaborates on key observations on the institutional sector, both at the national and
ARB level. These observations inform on the need for adjustments to changes that have already
occurred due to the fast pace of development and other externalities that exert pressure on water
resources. These changes may require, in the immediate term, amending certain laws, revising
policies and updating guidelines to make them responsive to the present water resources
situation, and ensure the satisfaction of present and future demands for provision of the resource.
This responsiveness is aimed to extend to the implementation and practice of IRBM in the ARB
that begs for concrete policy undertakings to guide efficient resource allocation and use
prioritization of water amid social and environmental limitations.
5.2.1 National Level
Water Use Regulation. The investigation and processing of water permit applications is a
locational activity for which NWRB is not properly equipped, as to both workforce and resources.
On the other hand, the deputization of other government agencies for this purpose has not proven
satisfactory. Moreover, the capability of NWRB to monitor compliance with the terms and
conditions of permits being granted is very limited due to workforce and budgetary constraints for
travel-to-site expenses. Estimates indicate that only about 35% of all water users is subject to a
formal permit. There is a reason to believe that a substantial number of water abstractions are
not reported, at least, to NWRB. Altogether, the permitting system should be strengthened.
Dispute Resolution. The limited number of qualified hearing officers in NWRB slows down the
process of settling disputes particularly in areas outside Manila. Complaints on water use, water
rights conflicts, and other controversies related to water resource allocation are generally initially
filed with the deputized agents of NWRB in a locality. The investigation and ensuing hearings on
water disputes are to be held in place to make ocular inspection easy, or site visit-convenient.
However, those handling these investigations are usually Manila-based staff that would have to
travel to these venues just to be able to attend to them. In times where travel cannot be made,
delays in the hearings are incurred and so the timely resolution of issues is also compromised.
Knowledge Base. The interest of developing an accurate water resources database for planning
and decision-making is hampered, in part, by the absence of a defined program of carrying out
long-term observations at gauging stations. This national concern has been encountered most
recently in this TA where hydrological and meteorological data on the ARB came from only 6 of
originally 20 NWRB/BRS stations where the quality of data suffer.
For stream flow, several stations now appear to have been neglected or abandoned. For
groundwater, one has yet to see a national groundwork network. Many agencies such as WDs,
MWSS, and NIA do collect certain data in connection with their production wells, but these are not
serially sequenced. There is an existing Groundwater Data Bank linking at least LWUA, NIA and
NWRB For water quality, DENR, through its regional offices, collects water quality data but only
to primarily classify surface water bodies for different types of beneficial use. Meanwhile, the
environmental quality division of EMB (in DENR) does not have its own field staff just like the BRS
(in DPWH). EMB does not undertake the monitoring of groundwater quality. Although it has
established a database for water quality, this has not been updated regularly.
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Enforcement. There has been no effective enforcement of the Water Code due to resource
constraints. Investigation of cases involving violations of conditions in permits issued is often left
to the discretion of deputized agents. In many cases, decisions or directives of NWRB are
ignored since it does not have enforcement powers to exact compliance with these directives.
Water Resources Planning. A national master plan for water resources management and
management was developed in 1998, but it should be regularly updated. What pass off as such
plans are the missions and goals of each sector agency. Little effort has been devoted to require
each agency in the resource area to formulate their plans and make these consistent with the
overall direction of the whole water resources sector. As it is, it would seem that the various
water agencies could plan and do with respect to their water activities with little regard for their
entire water resources management thrust. There is also no system to integrate the plans and
programs of various sub-sector agencies in water resources development and management.
Economic Pricing. The regulation of water tariffs is separately exercised by NWRB, MWSS,
LWUA, NIA and the LGUs. Standards and guidelines applied in water pricing regulation by these
agencies are not based on common parameters. On the other hand, raw water pricing is imposed
only on private extractors while government agencies had been exempted from abstraction fees
until 1996. It was only early in 1997 that exemptions of government agencies from raw water
charges were lifted.
Policies on Privatized Water Utilities. Existing regulatory policies, laws and mechanisms have not
considered the potential growth of privatized utilities, wholesale water regulation and retail water
regulation. The current basis for regulating water use is lacking to address the numerous
attempts to develop water resources for commercial use. The privatization of water institutions
will give rise to a situation where the present policies and guidelines may hardly be applicable.
5.2.2 ARB Level
Institutional Fragmentation. While the Agusan River Basin (ARB) is a physical unity, as dictated
by its water resources system, it is not a unity in so far as its institutions are concerned. The
Basin covers three (3) autonomous provincial LGUs, as many as 42 municipal LGUs, and one (1)
city, not to mention its hundreds of barangays that also exert political will. Two (2) administrative
regions (Region 11 and CARAGA) of NLAs implement national policies, programs and projects.
Non-government organizations (NGOs), and the POs they serve, number also in the hundreds.
NGOs bifurcate depending on geography, sectoral coverage, funding sponsors, and expertise.
Their funding varies, and so do their capabilities. A few, such as the Leaf Foundation, specializing
in forestry and operating in Compostela Valley province appears to be one of the few NGOs that
have attained a level of funding, and therefore, of operational, stability.
Uncoordinated Basin Initiatives. The lack of coordination and a tight cohesion of program
planning and implementation between and among the key government institutional stakeholders
of the ARB have been validated in the FGDs and KIIs conducted. Among others, the lack of
coordination is evident in the timing of decisions to adopt projects within the Basin. KIIs show that
the timing of funding made available, from local sources, national budget and foreign donors,
dictates the mix and selection of basin initiatives. It also affects the assignment of responsibility in
execution among the agencies operating within the Basin.
There is a system though of inter-governmental consultation, principally with its two (2) regional
development councils (RDCs). However, since there is no overall Basin Master Plan to refer to,
decisions taken are mostly stand-alone decisions formed at the urgency of available funding and
needs supposedly expressed by ARB Stakeholders mostly coming from the Government
sector. A reading of minutes of one RDC planning session in September 2005, for instance,
indicates no reference made in respect of relating actions to a Basin plan. The agenda was a mix
of subjects determined ad hoc and not according to a long-term development plan. Discussions,
anyway, referred very little to Basin-wide plans. While the NEDA has published its regional
physical framework plans, it should be noted that the Basin would have belonged to any two (2) of
these plans because of the overlapping jurisdictions of Region XI and Caraga .
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Environmental Repercussions of Institutional Disorganization. The major impact of this loose

system of planning and implementation (if it be called a system which might imply a systematic
effort which it certainly is not) is observable in the continued degradation of the natural
environment.
The most destructive activities that harm the natural environment in the ARB from views shared
during the FGDs/KIIs are:
z Uncontrolled, and unplanned cutting of trees, both legal and illegal;

z Unregulated mining, which involves quarrying, small- and large-scale mining that dump
tailings into the rivers thus resulting in siltation and heavy metals contamination;
z Contamination of aquifers and water bodies, due to direct discharge of: (a) untreated
domestic effluents and solid waste into water bodies; (b) mine tailings; and, (c) chemical
pesticides and fertilizers from upland and lowland agriculture, especially of irrigation systems
and from large-scale banana plantations;
z Increased harvesting of surface and underground water for domestic, agricultural and
industrial uses;
z Flooding due to continued denudation of forest cover over extensive areas opened for both
upland and lowland agriculture (irrigation systems);
z Severe siltation of water bodies due to erosion resulting from mining, forest denudation,
upland agriculture, and opening of timberland/public lands to human settlements; and,
z Fishing practices that use destructive gears and uncontrolled off-season fishing
Local and national government, and NGOs, are aware that developmental decisions will continue
to impact primarily on the environment and result in its further degradation. There is an expressed
need to develop tighter and more controlled linkages in diverse sectoral Basin initiatives. For
instance, the FGDs/KIIs noted the repeated mention of uncontrolled cutting of trees, of
unregulated mining, and of fishing using destructive gears. There is a general knowledge that
domestic, agricultural and industrial liquid wastes are discharged directly into its water bodies.
However, participants also noted the general lack of effective control on these actions although
these are clearly violations of national and local policies in respect of the environment. They are
one in concluding that these indicate a serious lacuna in unified governance within the ARB.
Weak Governance and Environmental Destruction. Environmental destruction, as demonstrated

in the above examples, could be attributed primarily to an institutional defect; namely, the
widespread lack of public awareness on the linkage of livelihood activities to the environment and
to public governance. Such heightened public awareness could have moved the public to
demand open, transparent, and effective actions from government regulatory agencies. With this
awareness, the public could have been also mobilized to assist amid weak government efforts.
Given this low level of public awareness, FGD/KII participants were one in observing that
governance is ineffectual in arresting the downward spiral of environmental management in the
ARB. For instance, Illegal activities, such as logging, remain uncontrolled even if known by the
communities in the ARB. The same is true of unregulated small- and medium-scale mining,
illegal fishing; illegal dumping of solid waste and untreated domestic, agricultural and industrial
chemical effluents in the Agusan River and its tributaries; of illegal occupation of public lands and
of river easements.
It would seem, participants observe, that local and national government lack resources to police
the Basin. Whatever little policing is done always falls short of what is required due to the meager
resources commanded by government, and more importantly, due to the lack of commitment of its
field personnel. It also does not help that major decisions that impact on the Basin, such as the
award of forest concessions, mining, design and siting of irrigation systems, and flood control
projects emanate from the national capital with little participation from affected communities.
There appears to be a feeling of helplessness as parts of the Basin are used in ways that are not
fully decided upon by the basin communities. As a result, participants observe that the Basin
communities appear not to be in total control of the situation. They appear not to know exactly
what is happening.
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As such, a general recommendation of participants is the conduct of information, education and

communication (IEC) campaign to be able to disseminate information on environmental laws,
cause and effects of destructive environmental activities, and the long-term benefits of
communities if the natural resources are not destroyed. The IEC campaigns can also encourage
volunteerism to monitor illegal environmental activities rampant in concerned localities. Together
with the IEC, community organizing is also a vital activity for a more sustainable implementation
of any activity. It is also a strategy that can be used to educate people and increase community
awareness. The participants saw the need to unify government officials and communities in the
management of natural resources so as to cooperation among stakeholders on any development
activity.
Other recommendations include: (a) strict implementation of laws to address environmental

issues and concerns; (b) establishment of alternative livelihood projects, creation of employment
opportunities in the lowlands to reduce illegal logging activities of IPs, and non-IPs and promotion
of sustainable farming skills; and (c) multi-stakeholder management and a formulation of a
strategic management plan for the ARB.
A General Institutional Helplessness. Participants generally view Basin communities as helpless,

both as individuals and as institutions, to act in ways appropriate for an effective, efficient, and
committed exercise of governance. The many actors and players within the Basin are not acting
in a cohesive, coordinated and integrated direction. There is not a single unifying institutional
platform or a palpable unity in purpose amidst the plethora of policies, programs, projects and
initiatives that, figuratively flood the Basin. These actions and decisions, as played out by
institutions, government or non-government in the Basin appear to be floating above Basin
communities.
Consultations, where these happen, appear to be pro-forma either to gather data, or inform on
what is happening, but not to solicit and understand their decisions. This is, it was observed,
because initiatives are very much dependent upon external sources of funds. For instance, in
CARBDP projects, decisions on the design of the flood control and irrigation systems are
commented upon by FGD/KII participants as made by consultants and not by the locals. They
perceive the timing and mix of Basin initiatives as uncoordinated both in time and space. .
Un-unified Basin Governance. The provincial governments in the ARB exercise, more or less, a
geographic coordinating political umbrella over its municipalities. However, in reality, each LGU,
including the three (3) provinces plan and implement projects based on the capacity of their
annual budgets plus national government programs, and, foreign-funded projects. FGD/KII
participants gave information that each LGU negotiates at its own initiative and establishes
political connections, to get projects. From general knowledge, no Basin-wide plan exists
against which programs and projects may be juxtaposed, their comparative advantages arrayed
vis--vis a set of, say, environmental criteria, or essential requirements of the water sector. Thus,
respondents hold that it is difficult, if not impossible, to establish whether these individual
initiatives fit into a framework of priorities in so far as the ARB is concerned.
National programs, sometimes assisted by foreign donors, are planned in the same manner as
LGU projects, each independently, with timing and coverage, and sectoral relationships. These
programs are also dictated more by the availability of funds such that whichever initiatives have
funds gets implemented. FGD/KII participants attending RDC meetings aver that there is no
record of national programs vetoed by local governments or by the RDC based upon a Basin-
wide criteria of, say, environmental effects. Each project is subjected to the DENR environmental
impact assessment procedure although this is done per project, not Basin-wide.
All externally funded initiatives are also reportedly absorbed by LGUs and NGOs with little
changes to fit the local situation. Foreign funded projects, by and large, are dictated by policies
1
and priorities of foreign donors. As mentioned, the two (2) RDCs review and pass judgment on
Basin initiatives, but with little reference to a Basin-wide framework (because there is no Basin
master plan), but on the priorities of the sectoral agency or of the RDC, or both. The RDCs meet,
1
A notable exception would be the PCEEM, a Canadian-funded initiative in Davao City. Here the local
stakeholders role was given prominence.
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dialogue, and exchange assessments, but this is more for information sharing than for basin
decision-making.
Need for an Authority. Several participants more especially those based in Butuan City are of
the view that institutions, both government and non-government institutions in the ARB, should be
combined into a local authority, with broad powers to review and approve national, sectoral, and
local government Basin initiatives. They opine that local leaders should steer the governance of
this authority, instead of the national government. In the same breath, however, they do
concede that local funds to support the authority would be limited, and therefore, national and
foreign funding will be sine qua non to the success of such an undertaking, especially for capital
investment projects. They noted that RBOs like Bicol, Agno, Cagayan Valley, and LLDA are all
national government initiatives, with funding from the national budget, but others did not prosper.
However, these RBOs suffer under national political intervention until funds are reduced or cut off
completely. FGD/KII participants propose that the ARB-RBO should be, first and foremost, a
local body, with funding support for O&M coming mostly, if not fully, from Basin communities,
government and non-government, including the private sector (business). It was noted that an
Agusan River Basin Authority (ARBA) was proposed three (3) years earlier (2002) by the
Congressman from Butuan City but was rejected, though, in a Sangguniang Panlalawigan
resolution by Agusan Sur. The onus of the objection, it would appear, is that the bill, as drafted,
failed to provide for a clear and decisive role for the Provincial Governments. The ARBA, as
proposed, would have been wholly a national government entity much like other RBOs mentioned
earlier.
In the foregoing, the elemental weaknesses of NWRB dictate for policy changes coupled with
institutional strengthening for it to become an effective developmental and regulatory body on
WRM. Its weaknesses particularly relate to the very issues of planning, regulation, management
of resource use allocation and conflict resolution, and pricing of water resources that are at the
heart of efficient and responsive functioning of basin-wide management proposed for the Agusan
River.
The ARB, as is, faces interconnected institutional and environmental challenges, traceable of
which to uncoordinated, fragmented, and disunited governance. This has resulted not only to
piecemeal or sector approaches but also to an uncritical stance to development opportunities as
they come. Lacking is a filtering mechanism as that served by a Basin Master Plan that would
prioritize or weed out development opportunities depending on how these may respectively
contribute or retard development of the Basin. With the Master Plan, it is clear from institutional
stakeholder views, the welfare of the Basin should be the basis for which decisions are made. A
wellspring of views further supports the creation of a Basin organization, the prospect of which in
the ARB is further explored in the succeeding. This is in light of the need for a central authority
that would govern and reconcile the seemingly disparate yet inherently connected concerns of
people in the ARB.
5.3 FORMATION OF THE AGUSAN RIVER BASIN ORGANIZATION
An ideal approach to creating the Agusan RBO is to start with efficiency, which involves studying
the prospects of harnessing what is available, productive, and realizable from existing capacity,
as to be initially discussed. Five (5) working models are then presented, particularly, as to
structure, best practices and/or lessons learned to help define the essential elements of the
ARBO. These imperatives to RBO formation are then singled out to establish at least its
institutional framework.
5.3.1 Tapping the Potentials of Existing Basin Organizations
(a) Required Capacity
The institutional strategy of creating an RBO requires strengthening the existing capacity relevant
in the management of watershed issues. These are existing potentials of Basin institutions that
have to be focused and designed for content. These include:
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Social mobilization involves the regular conduct of an annual stakeholders congress; the
convening and coordinating of mandates and actions of key sectors involved in WRM, regulatory
mechanisms, and water supply and use; and the management of information inclusive of tracking
various internal and external interventions and investment options for WRM.
z Land and water use zoning, essentially forest land use and micro watershed planning
z Monitoring and enforcement, dealing with the enforcement of environmental laws and
regulations pertaining to waste disposal, pollution, and resource utilization; and the
strengthening of system capacities for policy, planning and implementation coordination
z Provision of knowledge base for community action, primarily increasing public awareness
through information, education, communication and establishment of structural systems for
community participation
z Effective environmental governance, mainly enhancing the capacity of LGUs and civil society
for good governance; and, the empowerment of people and communities to participate in
local decision-making, as well as the improvement of LGU revenues to be able to support
Basin organizations
z Science-based management information system (MIS), or the establishment of a common
database for Basin organizations; and the conduct of science-based studies to better
understand social and environmental trends/conditions in the Basin
(b) Capacity Building of Stakeholders
Awareness, knowledge and skills development should be able to address the following:
z Policy review, particularly the implementation of DENR guidelines in resource enhancing

activities
z Watershed planning, primarily as to the: (1) formulation of forestland use and micro
watershed management plans; and, (2) capacitating of LGUs and civil society in identifying
environmentally critical areas (hotspots) and practical ways to conserve, preserve, and
protect them
z Paralegal training on deputization, to cover enforcement of environmental laws and
regulations pertaining to solid and liquid waste disposal for pollution control and sustainable
resource utilization
z Coordination and integration system, mainly strengthening of the system for coordinated,
integrated and convergent policy, planning and implementation
z Community participatory techniques and practices, mainly involving: (1) community organizing
to educate the people and increase community awareness; and, (2) social mobilization of
ARB communities through grassroots IEC using local cultural symbols and messages. The
latter aims to disseminate widely vital information on environmental laws; cause and effects of
destructive environmental activities; and, the long-term benefits to communities of resource
conservation. Likewise, the IEC intends to encourage volunteerism in the monitoring of illegal
environmental activities rampant in concerned vicinities.
z Data exchange, involving the establishment of a facility that can be used by the three (3)
provinces in the exchange of scientific data from existing databases (data banking) for socio-
economic, environmental, land use, and institutional purposes (updated listing of Basin
stakeholders)
5.3.2 Existing Working Models
The Institutional Profiling/FGD activity has found five (5) models in the ARB area that could be
considered as options for the ARBO. Four (4) of these are already working models in Eastern
Mindanao, and are, therefore, culturally valid in having been demonstrated to work with actual,
on-the-ground Filipino management inputs. The other is an Australian model.
The applicable model for the ARB could be an integration of the best features of these five (5)
models and will have to be worked out during and after a series of Roundtables and GO-NGO
Workshops.
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In summary, the models are as follows:
z RDC Committee Concept;

z People Collaborating for Environmental and Economic Management (PCEEM) Foundation;
z Lake Mainit Development Alliance (LMDA);
z Davao Integrated Development Program (DIDP); and
z Murray-Darling Basin Initiative (Australia)
(a) RDC Model2
In the first FGD conducted in Davao City, the need to have an ARB Master Plan was highlighted.
Geographically, the Agusan River Basin is divided by political jurisdiction into three (3) large
provinces: Compostela Valley (the headwaters), Agusan del Sur (midstream), and Agusan del
Norte (downstream or lower basin). With these divisions over the decades, the intensity of
environmental problems impacting on the Agusan River has accelerated because of the lack of
coordination among and between these three (3) provinces. The Mindanao Watershed
Management Forum as pointed out in the opening remarks discussed several key issues that
need to be addressed.
The first issue specified is the identification of physical watersheds. Watersheds (or sub-
watersheds, since the Basin is a huge watershed) should be the basic planning unit. Due to
political jurisdiction, the planning unit is the LGU. It was suggested that once the watersheds have
been identified, it is necessary to take congressional action and declare Basin watersheds as
protected areas under the NIPAS Act.
Second is the establishment of a body or an institution to sustain this endeavor. It was suggested
that such entity be formed based on the MEDCO model to serve as the coordinating center of all
these efforts. The body shall incorporate the ARB Master Plan in the economic agenda of the
RDC for the entire Mindanao. Meanwhile, the Regional Watershed Development Council Sub-
Committee under the RDC Committee on Environment and Economics can implement the
program.
Third is the need to institutionalize the ARB as one institution that will make it compulsory for all
LGU and NGAs within the ARB to participate, be involved and be active members. All
stakeholders would be consulted, especially the business sector as well as NGOs, POs, and IPs
in all undertakings. The ARB institution would also be highly participatory in nature. The
institutionalization of the ARB should be able to create barangay-based watershed management
units.
Fourth is the development of a Basin plan for LGUs that shall be included in their annual
investment program. The fifth and final is the development of a strong IEC campaign to inform all
stakeholders in the ARB.
(b) People Collaborating for Environmental and Economic Management (PCEEM)

Foundation
PCEEM started in 1998 as a 5-year Canadian-assisted project to provide sustainable

management of seven (7) watersheds in Davao City. In 2002, PCEEM was granted a 2-year
extension due to its excellent performance and pioneering working concepts in participatory
management that emphasized the role and active involvement of institutional stakeholders. Since
then, it has transited from being a government project, with DENR and Davao City as lead
proponents, to a private foundation although retaining still its active government participation. The
PCEEM Foundation (Foundation) is registered with the Securities and Exchange Commission
(SEC) as a non-profit, non-stock foundation.
The challenge to the Foundation is how to keep it financially viable and functionally relevant
beyond March 2006 when the Canadian funding terminates. At present, it is building a roster of
2
Proposed in a paper by RTD Emmanuel Isip, DENR-RO, Region 11, Davao City
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institutional stakeholders with obligations to pay annual membership dues. Due to its hands-on
experience in the mobilization of institutional stakeholders, government and non-government
including the private business sector, the Foundation has entered the development consultancy
field, offering expertise built over the last seven (7) years to assist similar projects. To this, the
ARB could be a potential client.
The Stakeholders Board, the policy-making body of the PCEEM Foundation, has institutionalized
the Annual Convention of Stakeholders Assembly where Sectoral Board Members report to the
Stakeholders Assembly on projects and activities that address watershed issues. The Annual
Convention also serves as the venue where the annual State of the Talomo-Lipadan Watershed
is reported.
How its environmental agenda is wedded into its research and development mandate could be
seen in the manner by which PCEEM is built upon 2 technical structures; namely (1) watershed
issues; and, (2) indicators of watershed status.
Watershed Issues. PCEEM Stakeholders have articulated six (6) clear statements, agreed upon,
and supported by scientific data build over the last five (5) years. These are on:
1. Unregulated Water Extraction

2. Land Use Conflict
3. Deforestation
4. Improper Cultivation of Hilly Lands
5. Poor Solid and Liquid Waste Management
6. Limited /Government Resources
Indicators of the State of the Watershed. Referred to here are 10 indicators properly established
by a solid database updated yearly through scientific investigation/research:
1. Physical Features (area, topography/slope analysis, climate)

2. Geological Features and Terrain (terrain analysis of remote sensing data for landslide prone
areas, soil, slopes, erosion, flood hazard)
3. Water Resources (headwaters and rivers, hydrological setting, groundwater recharge zone,
groundwater and surface water production and usage, water sources, water quality, water
rights and private wells, domestic water supply infrastructure, water-related recreational
areas)
4. Socio-Economic Conditions (socio-demographic data, economic growth rate, birth/deliveries,
deaths/causes, morbidity esp. water-borne diseases, population/population density,
households/size, subsistence threshold, labor force, access to water supply and sanitation
facilities, health and education, literacy rate, demographic data on IPs)
5. Land Use (agriculture and pasture, conservation zones, residential, tourism development,
protected low density residential, environmentally critical areas, protected areas (core zones))
6. Forests and Vegetative Cover (vegetative cover, bird communities, tenurial rights, forest-
based and bio-diversity conservation and recreation areas)
7. Agriculture (rice, corn, vegetables production; fruit plantation production and hectarage,
farming activities, livestock and poultry, fish and marine products)
8. Business and Industries (business classification, capitalization, employment, quarrying)
9. Waste Management (waste characterization and volume per year, per capita; waste disposal
methods; composting; LGU compliance with RA 9003)
10. Political and Administrative Structures (by LGU, and NGA programs operating in the area)
The watershed being the physical unit for environmental management highlights the ecological
principle of the interrelatedness of the different ecosystems: for example, the rain in the forest
finds its way to the floodplains, then collects at the coast to empty into a bigger body of water
the sea. By looking at the continuum of natural systems, a cause-effect analysis of processes
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and activities can be established. Disaggregating the watershed into smaller units, on the other
hand, makes it easy to identify issues and do management planning. This is akin to breaking up
programs into projects, and projects into activities, and activities into sub-activities the smaller
disaggregation making a task more manageable.
Ecosystem-based management means managing environmental issues within the context of its
physical boundaries. In the case of the PCEEM Foundation, it is with the Talomo-Lipadan
Watershed, for its initial phase. Considering that a watershed is the whole catchment area where
rain falls and flows down to the sea, the principle also cuts across political systems and cultures.
(c) Lake Mainit Development Alliance (LMDA)
LMDA may be considered as the closest option to a RBO considering its geographical
composition and its hydrological planning unit. It is a joint venture of the two (2) provinces of
Surigao Norte and Agusan del Norte, together with eight (8) of their municipalities bordering Lake
Mainit. The LMDA was formed through a Memorandum of Agreement (MOA) signed March 1999,
which invokes the Local Government Code (RA 7160) in bringing together into a planning and
development alliance 10 LGUs (i.e., 2 provincial governments and 8 municipal governments), 6
NLAs (i.e., DENR, NEDA, Department of Tourism (DOT), BFAR, Philippine Information Agency
(PIA) and DA), NGOs and POs operating in the area.
The O&M of LMDA is funded by an annual contribution of LGUs allocated from their budgets.
The LMDA has also attracted project funds from NLA programs and foreign donors.
RDC-Caraga recognized the Alliance through RDC Resolution No. 11, Series of 1999:
Lake Mainit as a diverse ecosystem with safe and crystal clear waters surrounded by verdant
mountains and endowed with abundant natural resources, and as a ecotourism destination
sustainably managed by an empowered citizenry for economic development and environmental
protection.
With the aid of the Divine Providence guided by the principles of growth and development
between communities and generation through skilled and resourceful personnel, the LMDA
supports and assists the LGUs in effective and efficient delivery of basic services, enforcement of
environmental laws and policies to pursue the sustainable development and management of Lake
Mainit through the promotion of ecological and recreational values, conservation, protection of
natural resources, enhancement of economic activities, people empowerment for the
improvement of the quality of life of the constituents.
Its objectives are to: (1) conserve aquatic resources and enhance their economic, ecological and
recreational value; (2) properly manage forestlands and improve the land cover within the
watershed; and, (3) promote greater involvement of the government, the private sector, local
communities and other stakeholders in the sustainable management of the Lake and other critical
resources.
The LMDA has a board consisting of LGUs, NLAs and NGOs, which meets monthly. A PMO
3
handles day-to-day operations. It is headed by a Project Director and assisted by 2 senior part-
time and 2 full-time project staff (i.e., each for administration and technical services). The senior
part-time staff are the concurrent Provincial Planning and Development Coordinators (PPDCs),
each seconded by the two (2) provincial governments. The staff is small and the PMO occupies a
small modest office in Kitcharao, Surigao Norte. The strategy, to economize on operating
expenses, is to draw in NLA and provincial staff for technical assistance, as the need arises. The
PMO also belongs to a network of NGOs in Eastern Mindanao, which also assists the LMDA in
project development and in fund sourcing.
In August 2005, about 75 LMDA stakeholder representatives held a 1-day conference in the
Poblacion of Mainit to agree on outstanding issues of Lake Mainit and define measures to
3
A former Vice Mayor of Mainit LGU, Surigao Norte, the LMDA was his brainchild. Since 2000, he is
devoting full time work in the Alliance, striving to guide its development to full fruition.
5-10
address these. The Agri-Aqua Development Coalition, an organizing and training NGO operating
in Mindanao, designed and conducted the assembly.4 Funding for the stakeholders assembly
was provided by PACAP which is actively supporting the LMDA initiative.
The LMDA has attracted foreign donors to its five (5) main programs (from a list of 23 High
Impact Projects); namely, (1) Upland Development and Management; (2) River Management; (3)
Lake Management; (4) Waste Management; and (5) Institutional Strengthening. Its foreign-
assisted projects are: (1) Agro-Forestry (AusAid); (2) the PhP1.5-million River Bank Buffer Zone
Stabilization (PACAP-Australia); (3) German-funded Lake Resource Assessment (through a
NEDA national program); (4) the PhP8.7-million Sanitary Landfill Project in Mainit Municipality
(PACAP-Australia); (5) the PhP30-million grant-funded Focused Community Assistance Scheme
(FOCAS), a livelihood program covering its eight (8) municipalities and also funded by PACAP-
Australia.
(d) Davao Integrated Development Program (DIDP)
The Master Plan for DIDP indicates that Davao Integrated Development Program was originally
established with joint development initiative of an alliance of LGUs, namely: Davao City, Davao
del Sur, Davao del Norte and Davao Oriental in 1994. Member LGUs consist of four (4) provinces
and three (3) cities at present, namely: the provinces of Davao del Sur, Davao Oriental,
Compostela Valley, Davao del Norte and its component cities of Davao City, Tagum City, and the
Island Garden City of Samal. The DIDP Area defined as a combined jurisdiction of these LGUs
occupying an area of 19,671 sq. km and with a total population of 3.29 million in 1995.
The main thrust of the DIDP is to pursue more integrated and effective socio-economic
development by mustering various efforts of the LGUs and by combining various resources
including not only natural resources but also administrative, financial and human resources.
Considering present development constraints and current regional development strategy, the
DIDP Area development pursues a balance between economic, social and environmental
development with the following objectives:
z To expand/diversify employment opportunities and increase income levels of the majority of

local people, correcting the biased ownership patterns of economic wealth and resources;
z To protect or even enhance environmental quality in the face of rapidly increasing population
and the presence of marginalized people; and,
z To utilize, as a source of energy and dynamism for socioeconomic development, a mixture of
peoples and cultural pluralism that may become even more pronounced through borderless
communications within the BIMP-EAGA and beyond.
The DIDP strategy is to combine the following three strategies in time and space shifting
emphasis from the Internal Integration strategy during Phase I (1999-2004), through Globalization
Drive strategy during Phase 2 (2005-2010), to the High Tech-High Services strategy during Phase
3 (2011-2016).
Attainment of the DIDP development objectives shall be supported by appropriate developmental

activities in economic, social, environmental and spatial/infrastructure sectors. Objectives by
sector and sub-sector are established generally representing the economic, social and
environmental aspects of the DIDP Area development. The DIDP development objectives will be
attained though the pursuit of sector/sub-sector objectives.
(e) The Murray-Darling Basin (Australia) Initiative: Integrated Cross-Border River Basin
Management and Community Engagement
The Murray-Darling Basin (MDB) river catchments cover an area of 1.06 million sq. km or 14% of
the total land area of Australia. It is located in the states of Queensland, New South Wales,
Victoria, South Australia and the Australian Capital Territory. Annual economic output from the
4
Agri-Aqua is one of the conduits of the Philippines Australia Community Assistance Program (PACAP) and
AusAID with offices in Manila and Davao City.
5-11
Basin is around AUD$23 billion (USD$16.79 billion). Of this, AUD$10 billion (USD$7.3 billion)
comes from agriculture, equivalent to almost one third of the value of Australia's total annual
agricultural output.
While the use of basin resources has brought huge benefit to Australia, this has had some
detrimental ecological, cultural, social and economic consequences. In recognition that no one
government alone was able to effectively manage its emerging natural resource management
problems (under the Australian federated system of government), the federal and relevant state
governments negotiated the Murray-Darling Basin Agreement in October 1985 (which replaced
the earlier 1915 River Murray Waters Agreement). Its aim is "to promote and co-ordinate effective
planning and management for the equitable, efficient and sustainable use of the water, land and
other environmental resources of the Murray-Darling Basin".
The management structure established to underpin the governance of the Agreement comprises
the:
z Murray-Darling Basin Ministerial Council, the decision-making forum;

z Murray-Darling Basin Commission, the executive and advisory arm of the Council;
z Community Advisory Committee, which provides the Council with advice and provides a 2-
way communication channel between the Council and the community; and
z Murray-Darling Basin Act 1993, ratified by the five (5) Basin governments through identical
legislation enacted by each Parliament.
Widespread degradation of natural resources in the basin was apparent in the 1980s, with over
50% of the original vegetation cleared. About 80% of land lies in arid and semi-arid regions and
most of it had become degraded. This has been due to widespread soil erosion, river siltation,
accelerated recharge of groundwater aquifers and subsequent discharge of saline ground waters
to rivers, dry land salinity, loss of flora and fauna habitats, and invasion of pest plants and
animals. Problems in the Basin included:
z Increasing competition for scarce water resources;

z Resistance to further land clearing controls by State Governments;
z Increasing conflict over who should pay for remediation of degraded common resources;
z How to best mobilize and target the use of available resources for on-ground action; and
z How to address poorly specified institutional arrangements for common property resource
management.
These problems highlighted the need for basin-wide policies and programs under a complex
institutional environment which had grown historically under each State jurisdiction regarding land
and water management and a complex array of laws and policies which were not coordinated
across State borders. Increasing knowledge of the threats to river and catchment health gained
through audits of water use and salinity in the Basin also highlighted the need to set targets for
resource condition and implement environment mitigation practices and programs. The
institutional arrangements for programs of management originally lay with the five (5) State
governments in the basin and there was no overall coordination of remediation program
development across the Basin. The States require joint action in partnership with its rural and
urban communities.
5.3.3 Imperatives for RBO formation

5
(a) Visioning and Implementation
In the case of the ARB, a river basin authority will be critical to implementing conservation and
development strategies for an eco-regional vision. The ARBO is also vital to in bringing together
upstream and downstream stakeholders into an organization that facilitates understanding,
commitments, and the transfer of funds and other resources to mitigate threats.
5
Adapted from Jamie Pittock, Director,WWF Living Waters Programme
5-12
Several caveats, however, have to be raised to guard against expectations of immediate success
of the RBO; because in reality, this would not be achieved outright. The absence of a blueprint for
IRBM means that stakeholders and processes would have to learn by trial and error, and that its
dynamics would have to move along with local cultures and local realities.
Developing a functional river basin authority in the first place can take many years, as experience
of all successful RBOs dictate (e.g., 80 years for MDB). For this reason, early in the eco-regional
visioning process it is important to consider what type of river basin authority will be required, who
will be the main players, and how to engage them in helping to develop the vision for them to be
able to establish ownership and take the lead in its implementation. The path to plan
implementation and integration, however, is not rosy and as such organizational structures and
process would have to be adaptable and responsive to change and the dictates of reality.
In the case of the ARB that crosses provincial boundaries, a major challenge is how to establish
institutional cooperation and coordination in an environment where there is none. This involves
convincing provincial governments and NLAs whose activities may not converge or be
coordinated into an ARB Framework or Master Plan to work together for sustainable freshwater
eco-regional management. Government engagement is critical as river basin management
inevitably involves regulatory and financial measures that the non-government sector is not
usually used to undertaking alone.
Dispute resolution particularly among various interest groups would probably be among critical
intervention, considering the dispute almost always arises in the management of freshwater
resources. Water allocation among competing uses is a prime example of an issue that is
increasingly affecting even watered regions. The eco-regional vision therefore must be able to
respect the variety of resource management issues and lead the formation of the ARBO to be
able to assume a mediating and development role in resolving such issues.
(b) Structuring of an RBO
A river basin authority, as much as possible, should be structured in such a way as to:
z Engage all key interest groups in a transparent process;

z Help these groups understand each others perspectives and consider different options;
z Draw on authoritative data concerning the environmental, social, and economic situation;
z Seek consensus whenever possible; and
z Have an expert, independent umpire to provide advice where consensus is not possible to
help political decision makers take tough decisions
Salient structural elements of river basin authorities whose application could be tried in the ARB
are as follows:
1. Heads of LGUs
A council, formed by legislation or by a MOA may be formed consisting solely of the Local Chief
Executives (LCEs) of the three (3) provinces and one (1) city (Butuan) of the ARB. The council
can provide a forum for establishing common political commitment on important measures
needed to conserve a river basin. However, without other institutional structures to follow up these
commitments, these types of agreements often falter in the implementation.
2. Government Regional Line Agencies
Regional directors of NLAs can meet more often and more regularly than heads of LGUs and can
take high-level decisions that links with national programs and concerning funding limitations
related to field implementation. It is important to ensure that such a council, which will be
comprised by the existing RDCs of Region 11 and Caraga, including nature conservation
agencies, such as NWRB, NIA, LWUA, and the DENR.
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3. Province-Based Heads of National Agencies
Provincial directors of NLAs, based in the provincial capital, can meet at least monthly than RDCs
and process basin management issues in greater technical detail. However the effectiveness of
such bodies can be reduced by interagency rivalries and by a cautious second guessing of the
political instruction of NLAs. It is important to ensure that such a provincial council of NLAs
includes the DENR-PENRO and CENROs within the basin, especially the Protected Area
Superintendent (PASu) of the Agusan Marsh.
4. Expert Committees
A committee of experts, coming from regional NLAs and the private sector (e.g., business,
academe, consultancy firms) can meet in special technical groups and process basin
management issues in more technical detail. It is important to ensure that the recommendations
from such bodies are politically and financially feasible rather than representing a wish list that is
easily dismissed by political decision makers.
5. Stakeholder Committees
A Stakeholder Congress, organized into standing committees in between congresses

(recommended January and July of each year) can meet regularly and engage, inform, and bring
together the key sectors of society who will need to implement sustainability measures. The same
recommendations apply to a stakeholder committee as to an expert committee, though there is an
increased risk that the body can become deadlocked in conflict.
6. Authority Secretariat
For an authority secretariat, it is important that the ARB authority has staff to facilitate its work and
to provide technical support with a whole basin perspective, independent of any one member
LGU.
7. Independent Chair
For each of these bodies described above, a well-respected person with excellent facilitation skills
is needed as an independent chair to ensure that the work of the ARBO is advancing and to
mediate disputes between stakeholders where possible.
(c) Essential Elements
From the foregoing presentation of working models on integrated organizing and area
development, the following distinct features could be derived, each emphasizing a salient
component in the planned structure and functioning of the ARBO. It should be emphasized
though that the ARBO and Basin management would be allowed to evolve according to its own
dynamics and that the following are meant to define critical elements that should not be done
away with in its planning and formation.
z Clear elaboration of development objectives and priorities (e.g., LMDA, PCEEM), which in the
absence of, the ARB is vulnerable to the risks of over-accommodation. This arises from
aiming to please all and conflicting development priorities set by a multitude of LGUs
comprising it. The Basin is prone to lose direction as this invites a hodge-podge of activities to
be formulated. Setting only a few yet realizable goals for the ARB during its inception appears
more acceptable and manageable.
z Functional governance and operating structure, that as exemplified by the Murray-Darling and
PCEEM is largely oriented to development objectives and appears to have strategic focus
(i.e., decision-making, advisory and community development arms of the MDB). This strategic
focus appears helpful in determining organizational structure particularly operating divisions to
carry out development activities on the ground and in the area of policy-making and
advocacy.
5-14
z Supporting legislation, that should, however, go beyond the NIPAS declaration or supporting
resolutions of RDCs and instead, engender support and grant political legitimacy to the ARBO
as done by the 1993 MDB Act on the Murray Darling. Supporting legislation appears to be a
basic requirement because the political legitimacy it establishes is able to also incite and
compel participation (including time and funding commitments) from institutional stakeholders
and direct stakeholders alike.
z Clear environmental agenda, which is the most observable among all the models. The
environment is the focal point of decision-making, the physical basis for integration, and the
determinant of concrete action. In forming the ARBO, the environmental agenda should also
take center stage and along with social constraints, be among the filtering mechanisms of the
Master Plan.
z Knowledge base development, as demonstrated by PCEEM Foundation. Knowledge base
development is not only essential but also inexpendable in furthering the environmental
agenda of the ARBO. It is only practical that the Basin could not serve its purpose as a
planning unit unless its conditions are established, monitored and assessed to guide decision-
making and implementation. This could only come from a continuously updated, credible and
authoritative database.
Institutional Structure and Capacity, the goals of which are into:
1. Having a high level political body, at the provincial level, that can make hard political
decisions and give a mandate to NLAs to work together for sustainability;
2. Having a respected, independent chair who can unofficially mediate between participants in
conflict, i.e., act as umpire or referee where competing and conflicting uses of the ARB
land and water would be the issue;
3. Ensuring that ARB authority represents both nature conservation and resource use
participate, i.e., the principle of protection and development;
4. Having separate or combined expert and stakeholder advisory bodies that can be seen as an
independent umpire or umpires to provide advice to political decision makers on tough
decisions;
5. Keeping membership of these advisory bodies to a small, workable number, and
6. Having an authority secretariat independent of any one member LGU and with technical staff
that can assess and provide whole ecoregion/basin advice.
In developing the eco-regional vision and translating it into a conservation strategy, the Master
Plan should seek to identify and involve the institutional stakeholders of the ARB. Further, at the
earliest opportunity the Master Plan should consider how to establish the Basin authority needed
to implement the Master Plan that contains the eco-regional vision. For eco-regions within which
numerous small basin institutions operate, it may be best to identify priority areas through the
visioning process before strongly engaging all such authorities.
5.4 FUNDING THE AGUSAN RIVER BASIN ORGANIZATION AND ITS DEVELOPMENT
ACTIVITIES
Funding sources of selected IRBM organizations in other countries are identified in this section as
well as those of three (3) Mindanao-based multi-sectoral development organizations and the
LLDA. This is followed by a short discussion on possible funding sources for the Agusan RBO.
5.4.1 Identified Funding Sources of Selected IRBM Organizations
As shown in Table 5-1, the main sources of funds for IRBM organizations in other countries are
budgetary allocations from their respective national governments and provincial/state
governments within the river basins. Funding are likely sustained in richer countries while license
fees and bulk water user charges seem to be acceptable fund raising models.
5-15
Table 5-1 Sources of Funds for River Basin Organizations
River Basin Organization Source of Funds

Budgetary allocation from provincial/state members
Grants from provincial/state members
Tweed Forum (Scotland) Lottery funding
Revenue from contracted services
Interest income from bank deposits
Seine Normandy Water Authority (France) Pollution Fees (industrial, agricultural and private)
Budgetary allocation from the national government
Fraser Basin Council (Canada) Budgetary allocation from provincial/state members
Delaware River Basin Commission (USA)
Bank loans
Tax-exempt negotiable bonds
Alto Tiet River Basin State Water Bulk water use charges
Resources Cound, (Brazil) Budgetary allocation from the state
Water Resources Management Agency
License fees
(Trinidad and Tobago)
Murray-Darling Basin Commission (Australia) Grants from provincial/state members
Interest income from bank deposits
Mekong River Commission (Southeast Asia)
Funds from international donors
Dong Nai River Basin Commission (Vietnam)
Funds from international donors
Some Philippine Working Models (not necessarily for IWRM or IRBM)
Davao Integrated Development Program
Budgetary allocation from LGU members
(DIDP)
Mindanao Economic Development Council
(MEDCO)
People Collaborating for Environmental and Grant from CIDA
Economic Management in Davao (PCEEM Environmental Service Fee from Davao City WD
Davao) Foundation, Inc. Membership fees
Initial budgetary allocation from the national
government
Laguna Lake Development Authority (LLDA)
License fees
Penalties
Foreign grants and loans
The three (3) selected multi-sectoral models in Mindanao have different major sources of funds.
DIDP, which is a program initiative based on a joint venture agreement among LGUs adjacent to
Davao Gulf, receives its funding from contributions from these LGUs. MEDCO, on the other hand,
is a government organization under the Office of the President and receives its PhP23 million
annual budget from the national government. The Presidential Secretary for Mindanao heads
MEDCO.
PCEEM started as a project activity in 1998 funded by a grant from CIDA. It has been conducting
scientific studies on the state of health of the Talomo-Lipadas Watershed (TLW). PCEEM has
been gathering the following 10 health indicators on TLW: 1) physical features, 2) geological
features and terrain, 3) land use, 4) forest and vegetative cover, 5) agriculture, 6) water
resources, 7) socio-economic, 8) business and industry, 9) waste management, and 10) political
and administrative structures. Funding will end in March 2006. PCEEM is an NGO with a host of
5-16
multi-sectoral members. Aside from the CIDA grant, revenue comes from membership fees and
environmental service fees based on water usage.
LLDA is a government-owned and controlled corporation (GOCC) formed in 1966 with initial
contributions from the national government and LGUs within the Laguna basin. It also collects
license fees and imposes penalties on pollutants. Its mandate is stated as follows: To lead,
promote and accelerate the development and balanced growth of the Laguna de Bay basin within
the context of national and regional plans and policies for social and economic development and
to carry out the development of the basin with due regard and adequate provision for
environmental management and control, preservation of the quality of human life and ecological
systems, and the prevention of undue ecological disturbances, deterioration and pollution.
5.4.2 Funding the Agusan RBO
(a) Several Funding Strategies
Funding is critical to the sustainability of the Agusan RBO and its activities. In general, funding
would depend on the nature of its organization considering that its entitlements may differ whether
it is created as a government agency or a GOCC. If a government entity or GOCC established by
law or executive order, the Agusan RBO could avail of initial funding from the national
government and LGUs comprising the ARB as well as annual appropriations from the national
government possibly for the initial 3-5 years of its operations. Likewise, it could receive the
proceeds of loans from multilateral financial institutions (e.g., ADB, World Bank and JBIC) with
guarantee and local counterpart funds from the GOP.
The difference lies on the utilization of revenues collected. The Agusan RBO could also collect
revenues although as a government agency, its collections would revert to the national treasury.
However, as a GOCC, its revenues could remain within the corporation for its capital expenditures
and operations. This implies that being a GOCC accords more independence and discretion for
the Agusan RBO in the use of revenues.
A major constraint, however, in assuming a government identity is the recurring fiscal problem of
the national government. This could set back the organization and/or funding of the Agusan RBO
depending on how its proponents would navigate the national government budgetary process.
Likewise, with this fiscal situation, there are indications that whether as a government entity or
GOCC, the Agusan RBO, would have to compete with other priority projects for counterpart
funds.
Despite the initial optimism with the implementation of the Expanded Value Added Tax (EVAT) or
now the Reformed VAT (R-VAT), fiscal management remains to be a grave problem of the current
administration. Although revenue collection has increased, the administration continues to be
burdened by foreign debt servicing that limits the ability of the GOP to provide counterpart funds
for development activities. In a roundtable discussion held 02 November 2005 over television
station NBN 4, the incumbent Finance Secretary indicated that revenue generated from
EVAT/RVAT in the first six (6) months of its implementation will all go to debt servicing, which
indicates the precariousness of the fiscal situation. Only after six (6) months will 70% be allotted
to debt service and 30% for infrastructure and social services. Of the PhP1.053 trillion proposed
2006 national budget, roughly 70% or PhP722 billion will go to debt servicing while only PhP331
billion will be allocated to legislative and executive branches. Based on data from the National
Treasury, of the PhP722 billion allocated for debt servicing, interest payments will reach PhP340
billion while PhP382 billion will be for the amortization of debt principals. A welcome development
though is the upgrading of the credit rating of the Philippines by some international financial
institutions, which means that interest on new foreign loans would bear relatively lower rates.
Other than depending on the national government, however, another strategy is to form a council
that could be the recipient of ODA project loans possibly through the DENR being the principal
executing agency (along with the NWRB) for IRBM under which the Agusan RBO is proposed.
However, the apex organization should not rely on annual national budgetary allocation for its
continued operations and projects. As such, self-financing mechanisms should also be
established for the Agusan RBO to be able sustain itself, preferably through contributions from its
5-17
member LGUs and stakeholders. Only after establishing a commendable track record would it be
appropriate for the Agusan RBO to consider converting into a GOCC.
(b) Self-Financing Mechanism for the RBO
Table 5-2 provides an initial assessment of the possible self-financing nature of the ARB by virtue
of the financial capacity of its member LGUs given their 2004 financial status. The itemized
presentation of financial status for these four (4) LGUs and component municipalities are in Table
5-3.
Table 5-2 Summary of Aggregate Statement of Income and Expenses

For the Years Ended December 31, 2004
For Agusan del Norte, Butuan City, Agusan del Sur and Compostela Valley
(in thousand pesos)
% Personal
Total Opera- Income From
Province/ City % IRA Services & Net Income
ting Income Opera-tions
MOOE
Agusan del Norte 308,996.6 87.3% 82.0% 55,601.8 34,918.4

Butuan City 631,761.1 69.1% 69.4% 193,502.9 131,388.8
Agusan del Sur 549,614.7 91.4% 77.0% 126,580.4 60,325.1
Compostela Valley 407,118.7 88.6% 71.5% 115,956.8 100,631.9
MOOE - Miscellaneous and Other Operating Expenses
IRA - Internal Revenue Allotment
Source: Commission on Audit
The four major LGUs within the Basin would be able to contribute to the Agusan RBO. Butuan
City has the largest 2004 Total Operating Income of PhP632 million followed by Agusan del Sur
(PhP550 million), Compostela Valley (PhP407 million) and Agusan del Norte (PhP309 million). Of
the PhP632 million operating income of Butuan City, only 69% is IRA. Substantial revenues are
being raised from Property Tax, Taxes on Goods and Services, and Business Income.
Meanwhile, net Income in 2004 for the four LGUs are substantial for Butuan City (PhP131 million)
and Compostela Valley (PhP101 million), and somewhat large for Agusan del Sur (PhP60 million)
and Agusan del Norte (PhP35 million).
Table 5-3 Summary of Aggregate Statement of Income and Expenses, Local Government
Units in the Agusan River Basin For the Years Ended December 31, 2003 and 2004, All
Funds (in thousand pesos)
2003 2004
Province/ City/ Total % Income % Income

Total
Municipality Operating % IRA Personal From Net Personal From Net
Operating % IRA
Services Operatio Income Services Operation Income
Income Income
& MOOE ns & MOOE s
Agusan del
Norte 302,360.9 89.2% 71.5% 86,158.9 69,004.1 308,996.6 87.3% 82.0% 55,601.8 34,918.4
170,133. 118,836. 131,388.

Butuan City 595,755.5 74.6% 71.4% 8 1 631,761.1 69.1% 69.4% 193,502.9 8
Buenavista 56,106.8 92.3% 73.0% 15,150.6 14,812.6 55,809.8 92.7% 78.5% 12,011.0 11,299.0
Cabadbaran 45,330.2 80.6% 91.8% 3,728.8 3,728.8 60,473.3 77.0% 89.1% 6,598.9 5,041.0
Las Nieves 46,908.1 88.0% 76.1% 11,220.0 9,591.6 40,649.2 98.1% 83.2% 6,827.6 4,095.0
Magallanes 30,619.5 64.4% 87.6% 29,114.3 67.6% 96.4% 1,043.0
5-18
2003 2004

Total
Operating % IRA
Income Income
& MOOE ns & MOOE s
3,799.2 3,013.5 655.1
Nasipit 40,484.6 77.9% 84.1% 6,421.7 5,744.6 40,000.2 79.0% 90.5% 3,815.9 (107.6)
R.T.Romualdez 20,628.3 87.4% 85.6% 2,979.5 2,510.6 19,726.0 91.3% 87.7% 2,427.0 1,740.8
135,119.
Agusan del Sur 539,199.4 93.2% 74.9% 6 56,909.1 549,614.7 91.4% 77.0% 126,580.4 60,325.1
Bayugan 91,929.5 86.4% 86.1% 12,797.9 8,782.5 91,610.4 86.7% 90.3% 8,918.3 6,006.5
Bunawan 49,462.2 82.4% 79.7% 10,056.0 6,770.6 47,458.1 85.8% 87.8% 5,777.5 2,558.9
Esperanza 86,519.5 95.2% 83.9% 13,897.2 6,591.6 87,434.6 92.2% 83.7% 14,229.8 12,200.7
La Paz 75,610.1 97.8% 82.6% 13,141.7 14,568.8 75,776.1 97.6% 87.7% 9,341.4 7,990.4
Loreto 81,200.7 96.0% 89.1% 8,852.8 4,897.9 79,184.1 98.4% 82.0% 14,272.1 12,853.8
Prosperidad 71,756.6 85.8% 89.3% 7,645.0 2,717.7 70,833.1 86.9% 85.9% 9,953.0 2,976.9
Rosario 42,541.6 88.9% 95.3% 2,010.1 (3,263.0) 45,074.2 81.4% 87.1% 5,808.2 (5,332.7)
San
Francisco 80,013.8 63.2% 77.2% 18,273.8 4,914.7 77,172.2 65.5% 91.2% 6,798.8 4,458.4
San Luis 59,939.0 95.4% 75.6% 14,639.4 10,702.2 58,886.7 95.6% 79.9% 11,847.3 4,753.8
Santa Josefa 35,164.1 90.2% 100.1% (32.8) (614.0) 35,115.8 91.3% 87.7% 4,327.7 4,327.7
Sibagat 47,527.8 93.8% 83.9% 7,629.5 5,680.3 47,691.5 91.9% 84.7% 7,317.9 4,829.5
Talacogon 43,374.4 90.1% 78.6% 9,283.3 2,014.1 42,856.3 89.5% 75.4% 10,542.7 (922.3)
Trento 58,580.0 86.4% 84.4% 9,135.3 1,680.1 61,054.1 81.8% 90.8% 5,641.4 4,892.0
Veruela 41,745.5 97.5% 82.8% 7,177.4 6,358.4 40,363.9 97.0% 88.4% 4,670.7 4,415.6
Compostela 124,928. 100,036. 100,631.

Valley 411,868.4 89.9% 69.7% 3 9 407,118.7 88.6% 71.5% 115,956.8 9
Compostela 63,717.1 75.8% 77.8% 14,167.6 14,212.9 65,581.6 73.7% 81.9% 11,862.7 11,564.7
Maco 62,936.4 84.0% 83.9% 10,102.2 9,288.3 63,299.5 82.4% 90.0% 6,316.6 5,348.4
Maragusan 52,298.8 87.3% 88.1% 6,213.1 4,322.9 50,907.4 88.3% 86.5% 6,871.8 4,600.9
Mawab 38,643.5 76.8% 83.2% 6,473.7 5,575.4 38,248.4 75.7% 90.0% 3,836.7 3,148.5
Monkayo 90,971.5 79.5% 74.4% 23,296.6 18,273.5 90,045.7 78.3% 84.5% 13,990.2 8,608.6
Montevista 39,214.2 82.0% 88.9% 4,371.5 4,078.2 39,194.2 83.4% 88.5% 4,526.7 4,276.9
5-19
2003 2004

Total
Operating % IRA
Income Income
& MOOE ns & MOOE s
Nabunturan 64,469.8 72.5% 80.1% 12,828.9 11,971.7 - - - - -
New Bataan 53,325.1 91.6% 103.7% 1,981.6) 412.5 53,865.0 92.1% 98.8% 634.8 1,600.8)
Pantukan 64,765.7 89.0% 84.8% 9,873.3 8,023.4 66,527.0 86.6% 82.7% 11,531.1 8,986.6
San Vicente
(Laak) 68,657.3 94.6% 83.2% 11,551.1 10,466.0 71,989.8 90.2% 90.8% 6,631.5 5,268.9
Surigao del Sur 405,042.4 94.9% 92.8% 29,187.0 689.5 397,380.9 94.4% 91.3% 34,734.5 12,470.1
131,569.
Bislig City 255,124.3 82.5% 48.4% 4 77,164.2 257,213.3 80.5% 70.4% 76,058.7 49,945.3
Barobo 37,637.3 93.0% 86.3% 5,150.5 616.3 37,213.1 91.6% 95.0% 1,874.0 (1,093.3)
Lianga 31,881.7 85.1% 84.5% 4,948.3 2,940.4 28,836.9 93.7% 91.1% 2,569.6 (122.7)
Lingig 36,085.7 92.3% 99.4% 203.1 (163.7) 39,494.2 82.5% 90.3% 3,839.3 859.6
290,915. 129,102.
Bukidnon 764,777.4 85.0% 62.0% 5 65,449.0 826,358.6 77.5% 61.1% 321,743.6 4
Impasugong 68,936.3 91.3% 71.2% 19,868.0 16,273.9 70,183.0 89.7% 80.7% 13,541.2 10,768.3
Davao del
Norte 444,717.1 85.2% 91.0% 40,213.3 35,063.5 480,118.9 78.9% 89.2% 52,058.3 37,970.4
Kapalong 86,464.5 86.1% 93.0% 6,092.8 2,437.2 88,234.0 83.5% 83.1% 14,884.9 11,388.2
Davao Oriental 404,964.9 93.9% 81.7% 74,084.5 8,032.7 400,791.2 92.5% 80.6% 77,704.7 16,249.6
Cateel 42,695.8 95.6% 80.6% 8,270.9 7,642.2 42,461.3 94.7% 89.7% 4,381.3 3,002.7
Misamis 139,709. 104,650.

Oriental 444,545.7 82.6% 68.6% 8 4 434,444.5 84.5% 72.9% 117,892.7 82,846.3
Claveria 53,891.3 95.6% 89.7% 5,534.8 3,318.2 53,058.0 95.8% 94.2% 3,054.0 367.6
MOOE - Miscellaneous and Other Operating Expenses
IRA - Internal Revenue Allotment
Source: Commission on Audit
If able to collect and keep its collections for its own use, then the Agusan RBO could start
collecting membership contributions, and expand this revenue base to include license fees,
environment or flood control local taxes from common sources of public spending (e.g., movie
houses, restaurants and bars) as well as water user charges and penalties on pollutants.
Meanwhile, Table 5-4 provides the current levels of water discharge granted by the NWRB for the
three (3) main provinces covered in the ARB. If several assumptions are made based on these
granted discharges, an estimate of annual revenue could be derived. The revenue base could
also be diversified to tap capital markets including contributions of overseas Filipinos native or
with affiliations to the ARB once the ARBO is able to establish a solid and dependable track
record of its development activities.
5-20
Table 5-4 Approved Water Permits by the NWRB, 2004
Granted Discharge (in cm)

Province Quar Fishe Muni Irri Lives Fire Recre
Ind Comm Domestic Power
rying ries cipal gation tock fight ation
Agusan Del
332.0 0.0 1,157.3 0.0 21.0 0.0 28,725.3 0.0 0.0 58,586.7 13.9
Norte
Agusan Del Sur 28.0 0.0 366.6 0.0 0.0 0.0 17,171.5 0.0 0.0 0.0 1.5
Compostela
2,135.7 0.0 121.3 0.0 0.0 0.0 16,314.3 0.0 0.0 30,945.0 0.0
Valley
Source: National Water Information Network (NWIN) Website
In summary, crafting the Agusan RBO would be art that closely links the nature of the
organization to the potential sources of funds. As much as possible, it should rely on contributions
from ARB LGUs and other stakeholders, and various means of revenues to be collected from
Basin activities. As much as possible, the projects should be able to recover both capital and
O&M costs.
The Agusan RBO should also be able to identify projects that are commercially viable and
attractive for private business investment. In line with this, continuing support for investments in
permanent production forest areas and the issuance of the following tenurial instruments (e.g.,
CBFMA, IFMA and SIFMA) may have to be instituted as well as those for area development for
corporate and community-based economic activities (e.g., CBFMA, IFMA, SIFMA, TLA, FLGMA).
In the course of implementing development activities, however, the Agusan RBO may have to
consider absorbing capital costs that could not be recovered but are necessary for development,
which are termed social overhead capital (e.g., construction of irrigation facilities). In such cases,
funding would have to be sourced from ODA loans with counterpart funds from the national
government. The Agusan RBO may also consider an MTPDP recommendation of concentrating
investments in quick gestating development activities such as those involved in rehabilitation and
improvement of existing systems and facilities. Other options along this ethic are support for the
establishment of small but high-impact projects (e.g., Small Water Impounding Projects (SWIP) and
Shallow Tube Well (STW) for irrigation) and the establishment of new yet cost-effective and
sustainable multi-commodity facilities. To ensure the long-term viability, support for such systems
may have to be accompanied by environmental rehabilitation or improvement measures as those
concerned with watershed management and pollution control, among others.
5.5 RBO FORMATION AND DEVELOPMENT
There is at present no single integrating or coordinating development agency for the ARB. The
institutional fragmentation aggravates the downward spiral of the environment in the ARB.
Without an RBO, the institutional arrangements for the ARB will remain the same, i.e., institutions
are not unified, and hence, fragmented, uncoordinated, un-integrated, and the environmental
degradation will continue, as they have been degrading for the past decades.
5.5.1 Basin Governance Options
In view of the unabated deterioration of the ARB environment, the stakeholders consulted in
October and in December 2005 were one in recommending the establishment of a basin apex
organization: a RBO (river basin organization). In the Butuan City workshop, October 28, the
Banaag Bill was prominently cited by participants. It called for the establishment of a RBO
patterned after an authority (LLDA) through national legislation. While this bill is the framework,
much new materials have been introduced into this framework to incorporate recommendations
generated during the FGDs and consultative Workshops conducted during Phase I of this Study.
This approach has been looked into by this Report as the initial framework for Phase II
formulation of the Master Plan, Institutional Development. It was subjected to thorough
discussions by key institutional stakeholders during a series of roundtables among senior LCEs,
5-21
and heads of NLAs during Phase II (January-February 2006). The same consultative process was
used in 6 consultative workshops at the 3 provinces of the basin (Compostela Valley, Agusan del
Sur, Agusan del Norte) each, separately held, for Government, and another for Non-
Government institutional stakeholders.
A nationally legislated RBO, while difficult to enact and takes a longer time, is more permanent,
lasting and stronger than an executive order of the President or a Memorandum of Agreement
among and between LGUs, NLAs and NGOs.
Be that as it may, the organizing process for the RBO may take the form of a series of
institutionalizing actions, where the possible three (3) options for Basin governance are:
i. Memorandum of Agreement (MOA) among the 3 Provinces and 1 City to set up a

"Working Secretariat" that will prepare for an RBO along existing models of institutional
collaboration in Eastern Mindanao, e.g., the LMDA and DIDP.
The initial effect is to provide for some measure of coordination and integration within the
ARB. MOAs, however, might have limited effect on integration. Plenty of work has to be
done on raising the capability of LGUs, being the main signatories and upon whose
shoulders the funding of the RBO will devolve.
ii. Presidential Executive Order creating the RBO. This has the advantage of putting the
resources of the Office of the President behind the exercise, although the leadership may
have to move from local to national.
iii. Legislation of the RBO, to be initially founded on a Draft Bill, the main feature of the
Agusan River Basin Authority (ARBA) Draft Bill is the institutionalization of sectoral
participation.
This shall be in the form of a Stakeholders Congress that will select, from among the
accredited Institutional Stakeholders (50% Government, 50% Non-Government) the
Board of Trustees (50% Government; 50% Non-Government), as well as the Basin
Administrator and her/his Staff. This structure makes institutional participation complete:
from policy making to field operations. A broader base of participation in the involvement
of LGUs and NGOs in the decision-making process is a vital and critical element
introduced into the RBO of the Agusan.
5.5.2 The Proposed RBO
Situationer. Several factors have brought about the ineffective management of the basin:
x the absence of a central coordinative body;

x insufficient planning and management capability of local government units (e.g., no
basinwide nor provincewide, zoning of environmentally critical areas);
x limited available, science-based data (esp. updated GIS maps) ;
x lack of public awareness (information, education, communications campaign);
x weak enforcement of environmental protection and conservation laws;
x absence of a comprehensive and integrated management program no master plan; and
x inadequate resources and public investments.
Approach. The proposed RBO will unify Local Environmental Governance (LEG) of the 3
provinces (Compostela Valley, Agusan del Sur, Agusan del Norte), and 1 city, Butuan. The
institutional unification is urgent due to the rapid and continuing deterioration of the environment
in the ARB. For the last 5 decades, severe erosion in the uplands, aggravated by continuing
deforestation has dumped heavy siltation and sedimentation into the water bodies; made worse
by the contamination of surface waters. As of the end of 2005, respondents to this Study have
confirmed that this condition has continued effectively unchecked. Respondents perceived this
5-22
deplorable situation as a direct outcome of the absence of a single environmental governance

institution - despite the fact that the ARB is a single ecosystem since time immemorial.
Vision. Institutional stakeholders were unanimous in expressing the vision and philosophy of the
proposed ARB Authority: concluding that the situation will not improve without a single, unifiying,
coordinating and integrating institutional mechanism, the stakeholders provided articulation of
what they want for the ARB:6
a unity of purpose, a working together

a convergence of interests,
an agreement on a common agenda,
a consensus on priorities,
a sacrifice of narrow, parochial interests,
a widening of vision; a control on individual agendas
a unity in diversity; an avoidance of conflict and competition,
an integrated river basin management (IRBM)
Objectives. Considering the above, the River Basin Organization will seek to attain the following
key objectives:
1. Coordination. Create a basinwide coordinating institution that will be empowered to examine

development programs and projects and set priorities; seek external funding national and
foreign, and monitor/evaluate the implementation of projects by national and local
governments, and by NGOs, basin-wide,
2. Sustainable Development. Through institutional mediation, facilitation and coordination,

maintain a balance between the use of resources (development, livelihood) and the need
to protect resources (environmental protection), where resources have been or will be
significantly disturbed. In other parts of the Basin, where resources are largely undisturbed,
protect and conserve the resources for future uses (sustainable development),
a. Ensure sustainable management, conservation, restoration and development of the

upland areas in the Basin to check severe erosion that causes high siltation and
sedimentation of water bodies in ARB;
b. Ensure that any proposed development interventions are planned, constructed and
operated in an environmentally sustainable manner,
3. Institutional Stakeholdership. Bring in more stakeholders into the RBO and win everyones
commitment towards the achievement of a common goal through conflict resolution which
uses negotiations through consensus to avoid the polarization of positions of the participating
sectors,
a. Institutionalize participation in local enviromental governance through the organization of

sectoral institutional groupings that will channel the agenda of specific interest groups into
the RBO;
b. Use collaborative and integrative management, i.e. the dynamic sharing of skills and
knowledge among different sectors and discipline to come up with solutions favorable to
all; to ensure that all stakeholders are able to participate in decision-making, planning,
implementation, and monitoring and evaluation
6
Focused Group Discussions/Key Informant Interviews by 109 participants in 5 Consultative Workshops of
Phase I, Institutional Development Component, October December 2005) held in Davao City (October 17,
DENR Region 11); Nabunturan, Compostela Valley (October 21, Provincial Capitol); Patin-Ay, Prosperidad,
Agusan del Sur (October 24); Butuan City, Agusan del Norte (October 26, Luciana Inn for Province); Butuan
City (October 28, DENR CAraga Region for NLAs). The consultation process was capped by a large
workshop held in Butuan City, December 6-7 that presented the initial findings and recommendations of all
Master Study components.
5-23
4. Capacity Building-Public Awareness. Build up local capabilities to manage watershed issues,

entailing a public awareness program to change attitudes of institutional stakeholders from
unawareness to the higher environmental-friendly consciousness, the transfer of knowledge,
development of skills, and the infusion of appropriate technology to communities of
stakeholders, as well as working with local organizations in field applications; to equip
communities with culturally appropriate tools for environmental management;
a. Social Mobilization. Through a Public Awareness Plan, empower barangays and citizen
groups to complement the planned devolution of authority by NLAs to the RBO by
capacity building at community level;
5. Ecological Management. Base all planning on an ecosystem-based approach

(watershed/sub-watershed as the planning unit) which is logical for managing natural
resources because decisions are based on the interdependence of soil, water, forest, terrain,
and human settlements and their activities,
a. Data Bank. Create a science-based data base, with GIS capability, to support proactoive
Monitoring and Enforcement of ARB plans, programs, and aprojects.
6. Integrated Water Resources Management. Proactively manage water quality and water use;
and allocate water in an integrated and environmentally sustainable criteria based upon the
constraints of a finite resource. Reduce, if not entirely eliminate, waterborne pollution,
particularly from mining and quarrying, agricultural plantations (e.g., banana, palm oil, etc.)
but also including sedimentation, and conservation of bio-diversity, particularly in the Agusan
Marsh, along with sustainable management of fish resources throughout the Basin,
7. Economic Development. Provide employment and livelihood opportunities through the

creation of economic zones using the PEZA Law; lead in the organic farming to launch an
Agusan Organic Farm Product brand for the export market;
Functions. The apex organization will be primarily a development facilitator working through
existing government/non-government institutions. It will function as a coordinator and
integrator, holding reviews, dialogues, and negotiations with participating LGUs, NLAs, and
NGOs in the ARB to realign policies, plans, programs, and projects (PPPPs) in accordance with
the ARB Master Plan its framework and its priorities. It will be:
A mediating body, a referee to reconcile, through consensus, conflicting and

competing interests, with veto power to override LGU/NLA programs that will not
contribute to convergence and coherence of institutional actions that will ensure
environmental sustainability.
A political body for social mobilization - powered by a PAP (public awareness plan).
A storehouse of scientific knowledge base formulate and validate environmental
indicators based on field data (i.e., a basin data base, with GIS)
A convenor of institutional stakeholders regularly (bi-annually) to coordinate policies for
the basin Master Management Plan
It will be supported by local communities for its basic O&M funding, but will have to seek national
and foreign funding for large-scale undertakings requiring public and private investments.
The RBO shall have a twin agenda:
a) as a local environmental management body for ecological security (unified local

environmental governance - ULEG); and,
b) a poverty alleviation programmer through economic projects, using the PEZA model to
create economic zones in the form of, say agri-processing estates to modulate
seasonal agriculture and forestry into year-round manufacturing industries and present a
year-long demand for raw materials produced in the ARB. An organic farming strategy is
suggested to be branded Agusan for organic farm products geared for the export
markets.
5-24
5.5.3 The Proposed Structure and Working Secretariat
The initial proposed structure for the Agusan River Basin Organization is shown in Figure 5-1,
while to jumpstart the process, a roll-out strategy is discussed in Annex 5A.
National Steering DENR

Committee
Chair: DENR
Members : NWRB, DPWH, RBCO
DA,PAGASA,NDCC,etc.
Consultative Body Project Management

Office
RDCs, NGAs, LGUs
NGOs, Private,etc. Head : DENR Region
Water Quality Flood Water Watershed AMWS IP

Management Management Resources Management Management Development
Development
EMB,LGUs DPWH, LGUs NIA/LWUA, DENR/FMB, DENR/PAWB, NCIP, LGUs

LGUs LGUs LGUs
Figure 5-1 Proposed Structure for the Agusan River Basin Organization
5-25
x Institutionalization of collaborative and integrative working arrangements among primary

and secondary stakeholders in the course of planning, prioritizing, and implementing
resource development and management interventions with significant contributions to
poverty reduction and livelihood development.
x Establishment and operationalization of ARBO that shall assume governance functions

in harmonizing and realizing IRBM initiatives, supported by the development of enabling
policy and corresponding institutional, organizational and operational frameworks.
5-26
SECRETARIAT ROLL-OUT STRATEGY
Final Report
ANNEX 5A: SECRETARIAT ROLL-OUT STRATEGY
To take the institutional development strategy of creating a single, unified, RBO for the ARB among the
3 provinces and 1 city, a working secretariat will have to be organized. It will have an operational life
for at least 3 years, as it works for the a) final drafting of the ARBA Bill, b) grassroots consultations, and
c) congressional advocacy.
A. WORKING SECRETARIAT
At the conclusion of the 2nd Roundtable of the Institutional Development Component, the 3 Provincial
Governors and the City Mayor of Butuan shall enter a dialogue to form a working ARB Secretariat
within the framework of a Memorandum of Agreement. The Secretariat shall pick up from where the
2nd Roundtable concluded, and initiate succeeding steps to take the ARBA Draft Bill to further
consultative processes, mainly with the 5 Congressmen of the ARB, and with the grassroots
(municipalities and barangays), as necessary. It will be manned by fulltime staff, on contractual basis.
The head is a senior public administration officer drawn from the ranks of LCEs/NGOs, with position
and salary commensurate to a regional director of a NLA. He will be assisted by 4 Sr. Executive
Assistants to work with the 3 provinces and 1 city as planners-advocates-communicators. The 5 senior
staff will be supported by 1 each executive assistants who will backstop the senior staff. They will have
support staff consisting of 5 secretaries, utility and drivers.
1. Final Drafting. The Working Secretariat will oversee the wide-ranging consultations, in the form of
meetings, workshops, public hearings, and related preparatory activities as a matter of advocacy.
These activities will be undertaken through the 4 LGUs (3 provinces and 1 city). The draft bill is in its
nd
final draft form after the 2 Roundtable held in Butuan City 23 February 2006. In this meeting, 2
Provincial Governors (Agusan del Sur and Agusan del Norte) and one Congressman (2nd District,
Butuan City) requested the Consulting Team to provide them the proceedings of the 2nd Roundtable
and the ARBA Draft Bill, so immediate action may be taken to bring the ARBA into fruition. In view of
this request, an advance copy of the 2nd Rountable Proceedings and the ARBA Draft Bill, were
transmitted by the end of February 2006.
2. Congressional Advocacy. Colngressman Lito Banaag (2nd District, Butuan City) is presently chair
of the Environment and Natural Resources Committee of the House of Representatives. He
announced during the 2nd Roundtable that he will take immediate steps to bring the ARBA Draft Bill
into the initial congressional process. He also mentioned that officials of the Asian Development Bank
have mentioned interest in supporting the ARBA.
3. Presidental Executive Order. Since congressional action will take about 3 years, if not more, a
likely alternative is to advocate for a presidential executive order to bring in the national government
into the advocacy and finance the Working Secretariat.
4. Public Awareness Program (PAP). An early preparation for the consultation process, the
congressional and presidential advocacy, will be the roll-out of the PAP - within the ARB, regionally and
nationally. The ARB situationer must be laid open to the public, the Master Plan shown in summary,
and the RBO discussed in all media, and in public fora.
5. Social Mobilization. Public Events must be held in each and every LGU of the ARB to heighten the
awareness and create a demand for the RBO. This will take the form of public demonstrations during
town fiestas and foundation days of LGUs. Marches may be organized to advocate for the RBO in the
offices of NLAs in Regions 11 and Caraga.
6. Institutional Stakeholders. A wide-ranging and intensive stakeholders analysis will be launched

to identify all community organizations withint he ARB, group them into sectors representing similar
agendas, and organize delegations and identify leadership in preparation for a Institutional
Annex 5A-1/3
Final Report
Stakeholders Congress. The holding of this congress will be given prominent publicity and will also
mark the launching of the RBO. In advance of the congressional or presidential action, the RBO will be
formally constituted, along the lines of the Draft Bill, through a Memorandum of Agreement among
LGUs, NLAs, and NGOs, as the highlight and ending exercise of the Congress.
Proposed Organizational Structure Of The Working Secretariat
The proposed Working Secretariat will be organized along the lines described in Chart 7.0 (next page).
It will be formed through a Memorandum of Agreement between the 3 provinces and 1 city of the ARB.
Thus, the LCEs of these LGUs will form the Steering Committee as a policy-making body. A Project
Management Office (PMO) will be set by by the 3 Provincial Planning and Development Offices
(PPDOs), and the City PDC (CPDC) of Butuan, It is suggested that a full-time contractual senior
professional, and a deputy, be hired for a 3-year contract (or a yearly renewable contract). They will be
hired at the same level of status and compensation as the PPDCs/CPDC to afford them a stable
negotiating level with the PPDCs/CPDC. As a matter of institutional strategy, it would be best to work
together with and through existing institutions (i.e., LGUs, NGOs, NLAs, etc.)
The key staff of the PMO will consist of 3 Project Officers performing 3 vital functions:
1. Advocacy. The job objective of this unit is to follow through on the final consultations, if needed, at
local, regional and national levels, and work with the Congressmen of the ARB to ensure its passage
at the earliest possible time. Pending its passage in Congress, this unit may consider lobbyingfor a
Presidential Executive Order to generate political and financial support for the ARBA at the national
level. To support Advocacy, the Public Awareness Plan, annexed to this Report, will be implemented.
2. Institutional Stakeholders. This unit will undertake an institutional stakeholder analysis or the
inventory of government and non-government organizations that have a stake (or would be affected
directly) by the activities of the ARBA. Extensive consultations will have to be made by this unit with
these organizations to determine their interest and capability to be institutional staskeholders of the
ARBA. They will include all LGUs (provincial and municipal with an option to include barangays),
NGOs and POs; Associations of Youth, Women, IPs, etc.; chambers of commerce and industries;
organizations of plantation operators; the academe; the churches, etc. The strategy is to group these
organizations into sectoral groupings to formulate a strategy of representation of institutional
stakeholders to the institutional stakeholders congress.
3. Data Banking. As a start-up issue, the data for planning of basinwide programs have not been
organized such that data across LGUs, NGOs, NLAs, etc. would be comparable and can be
consolidated into a ARB data base. This unit will a) make an inventory of available data in the LGUs,
NLAs, and NGOs; b) screen what data are important and whether they are comparable (i.e., the data
parameters are similar); c) convene a data summit among planning officers of the LGUs, NLAs,
NGOs, etc. to determine the set of data needed for basinwide planning, to determine the gaps and
what additional data should be generated; d) generate the additional data to fill the gaps; e) simulate
the use of data for basinwide decision-making. Mapping using GIS will be crucial to this unit.
Annex 5A-2/3
Final Report
A. POLICY MAKING: STEERING COMMITTEE
3 PROVINCIAL GOVERNORS; 1 CITY MAYOR
B. TECHNICAL WORKING GROUP: PROJECT MANAGEMENT OFFICE

(PPDCs of 3 PROVINCES; CPDC of 1 CITY)
(1) PROJECT COORDINATOR/ (1) ASST. PROJECT COORDINATOR)
C. FIELD COORDINATION
1. ADVOCACY 2. INSTITUTIONAL STAKEHOLDERS 3. DATA BANKING

(LGUS, NLAs, Congress, etc.) (Instl Stakeholder ID/Analysis; Assembly) (Inventory, Networking, GIS)
(1) PROJECT OFFICER (1) PROJECT OFFCER (1) PROJECT OFFICER
D. ADMIN SUPPORT GROUP (4ea.) Secretaries, Drivers, Utility/Messenger
FIGURE 5A-1 PROPOSED WORKING SECRETARIAT
B. OPERATING BUDGET
A 3-year budget is suggested for the Working Secretariat based on the estimate, based on
experience, that the legislation for the ARBA Bill could take that much time. Although, in the 2nd
Roundtable, the Institutional Development Component, of 23 February at Butuan City, Congressman
Lito Banaag is optimistic that it will take less than that. But to be certain that the ARBA will be carried
forward, a 3-year budget is proposed below.
1. Personnel and Services, to cover the costs of the Steering Committee,

the Technical Working Group (TWG), Project Management Office (Project
Coordinator/Deputy and Staff), Field Coordination (3 Project Officers),
and an Admin Support Staff - @ P3.0 million/year, for 3 years... P9.0 million
2. Advocacy for 3 years, @P1.0 million/year. P3.0 million
3. Public Awareness Plan, 3 years, @P1.0 million/year P3.0 million
4. Institutional Stakeholders, 3 years, @P1 million/year.. P3.0 million
5. Data Banking, 3 years, @P1.0 million/year.. P3.0 million
6. Travel & related expenses, 3 years, @P1.0 million/year.. P3,0 milliion
7. Vehicles, 4 units, @P1.5 million (total P6M), plus maintenance and fuel,
for 3 years, @ 25% of vehicle costs/year (P0.375M/year).. P7.125M
8. Computers (10 units), other Office Equipment, Office Furniture,
and supplies for 3 years, (25% of equipment and furniture costs).. P6.0 million
9. Space Rental, 1 central office, 2 satellite offices, @P1mllion/year P3.0 million
10. Contingencies (annual price increase 10%/year; plus 5% on unforeseen
items =35%). P14.0 million
11. BUDGETARY TOTAL, 3 yrs P54.0 Million
Annex 5A-3/3
PARTICIPATORY APPROACHES AND
DEVELOPMENT STRATEGIES
6.0 PARTICIPATORY APPROACHES AND DEVELOPMENT

STRATEGIES
6.1 KEY ENVIRONMENTAL ISSUES AND STAKEHOLDER PRIORITIES
(i) Entire Basin
Needs assessment was carried out as part of the public consultation process among secondary
stakeholders from downstream, midstream and upstream areas of the Basin. This has allowed:
(a) the identification of perceived environmental issues confronting the Basin and b) the
prioritization of issues considered important by local people. Table 6-1 contains the results of the
needs assessment results, environmental issues of which are color-coded according to priority.
Table 6-1 Primary Environmental Issues (Needs Assessment) ARB, 2005

Downstream Midstream Upstream Basin-Wide
Inadequate
Inadequate devolution of
Flooding devolution of watershed
Flooding
1 1 Illegal resources 1 watershed 1 management
Lack of potable water
extraction management functions
functions Lack/ inadequacy
of water supply
Inadequate irrigation
Lack of potable Poverty
Underutilization of 2 Flooding
water Upland degradation
Agusan River Poverty/lack of
2 2 Lack of livelihood
Upland degradation 3 Flooding livelihood
Land conversion
Weak stakeholder Poor waste Upland degradation
Upland degradation
participation management 2 Land conversion
Water pollution 3 Water pollution Erosion and siltation Inadequate
3 4 Poor planning and irrigation
Riverbank erosion management Underutilization of
Dwindling fisheries
Poor pollution 4 Weak and conflicting Agusan River
resource
management policies
4
Weak law 5 Loss of biodiversity Displacements by
enforcement 5 banana Water pollution
Riverbank settlements 6 Land tenure Poor planning and
plantations
Water-related 3 management
Loss of biodiversity 6 Weak and
5 diseases
Gender issues conflicting policies
Poor waste Erosion and

6 management siltation
Dwindling fisheries Illegal resource
4
extraction
7 Timber poaching Riverbank
settlements
Poor irrigation Poor waste
8
management management
Displacement by
banana plantations
5
Dwindling fisheries
resource
Loss of biodiversity
Gender issues
Water-related
6 diseases
Land tenure
Poor irrigation
7
management
Priority environmental issues throughout the Basin (Basin-wide) are determined after synthesizing
the major issues identified by downstream, midstream, and upstream secondary stakeholders.
6-1
An overarching priority issue is poor environmental governance, which encompasses

uncoordinated planning and management, inadequate devolution of watershed functions,
conflicting policies/ tenurial instruments, weak law enforcement, poor stakeholder participation
and gender concerns. On the other hand, the issues that stand out as common priorities across
the Basin are flooding, inadequate potable water supply, water pollution, upland degradation, poor
waste management, erosion and sedimentation, loss of bio-diversity, dwindling fisheries resource
and poverty including inadequate livelihood opportunities.
The above results were validated during the technical review and analysis of existing conditions in
the Basin, carried out using the Environmental Checklist Methodology. Based on the technical
evaluation, the six most significant environmental issues in the Basin are:
1. Surface water quality, as a result of pollution from industrial (notably mining and the use of
mercury in ore processing), agricultural chemicals (fertilizers and pesticides), domestic
wastewater, and solid waste and sedimentation;
2. Water quantity, as it relates to flooding, inadequate potable water supply and irrigation, and
untapped hydropower potential;
3. Ecological health of the Agusan Marshland/Wetland, which is compromised by water
pollution, bank erosion and sedimentation, illegal resource extraction, population pressure,
and unsustainable farming practices;
4. Upland degradation, which is related to the absence of appropriate vegetation cover to retard
and dissipate rainfall run-off as well as unsustainable upland farming practices;
5. Decline in fisheries resources, due to water pollution, population pressure, and illegal fishing
activities; and
6. High incidence of waterborne and water-related diseases, due to water pollution from human
and natural sources, and inadequate potable water supply, sanitation and wastewater
treatment facilities
Obviously, there are detailed and inter-related sub-issues within the six (6) main issues. More
often than not, the poor are the most vulnerable to the effects of poor management of these
environmental issues, implying further that improvements in environmental governance tend to
have concrete and realizable impact on poverty reduction in the Basin. It cannot be denied,
however, that current environmental conditions pose strict limitations to existing and proposed
development interventions in the Basin, and requires stringent assessment of environmental
impacts to be considered noteworthy for continuance or implementation.
(ii) Agusan Watershed
KIIs were conducted with primary and secondary stakeholders on the status of watershed
management in the Basin. Primary stakeholders consisted of barangay officials and watershed
occupants (including farmers and mining operators) from significant portions of the Agusan
Watershed in Butuan City (Agusan del Norte); and the municipalities of Bayugan, Esperanza,
Talacogon, San Francisco, Prosperidad, and Bunawan in Agusan del Sur as well as Nabunturan,
and Maragusan in Compostela Valley. Secondary stakeholders from these areas comprised of
city/provincial/municipal environment and natural resource officers (CENRO/PENRO) and
Regional Technical Directors (RTDs) from respective DENR offices in Caraga and Region XI, as
well as officials from various LGU and local government agencies (LGAs) such as DPWH, MGB,
BFAR, DA, NCIP, and DA.
The results of the KIIs revealed perceived priority concerns regarding watershed management in
the ARB, as shown in Table 6-2. The findings not only validate but also further reinforce the
gravity of environmental issues identified in the above needs assessment workshops.
6-2
Table 6-2 Priority Concerns on the Agusan Watershed, 2005

Concern/Issue Priority Response (%)
Timber poaching 71.43
Lack of livelihood opportunities 57.14
Flooding 52.40
Soil erosion 47.62
Heavy siltation 38.10
Mining operations 38.10
Declining water quality/ water pollution 38.10
Land conversion (palm oil and banana plantations) 38.10
Slash-and-burn agriculture 28.57
Displacement of IPs 9.52
Illegal fishing 9.52
Closure of wood processing plants 9.52
Illegal occupancy of timberlands and riverbanks 4.76
Quarrying in riverbanks 4.76
Illegal operation of sawmills 4.76
Improper waste disposal 4.76
Presence of drifted/sunken logs 4.76
Risks in forest protection work 4.76
Backwater flow causing flooding 4.76
Weak implementation of laws and policies 4.76
Low economic development 4.76
As indicated, the top four (4) watershed management concerns in the ARB tend to be timber
poaching (71.43%), lack of livelihood options (57.14%), flooding (52.40%), and soil erosion
(47.62%). Rather than be viewed in isolation though, these concerns along with 17 others
interestingly demonstrate pressures not only on water resources of the Agusan watershed but
also on essential forest and land ecosystems intricately linked to it.
Forest resources. A forestry-related concern that happens to pose the major challenge to
watershed management is timber poaching (71.43%), an activity found strongly related to poverty,
with unemployed locals forced to engage in it amid the lack of alternative livelihoods. In some
areas (e.g., San Francisco), the presence of a market for forest products and existing processing
plants also provide an incentive for this illegal activity. Timber poaching also occurs near mining
areas (e.g., Nabunturan) where wood is being used in lining mining tunnels.
Land resources. Meanwhile, land use practices impacting heavily on watershed areas of the ARB
tend to be mining (38.10%), land conversions (38.10%), unsustainable forms of slash-and-burn
agriculture (28.57%), and illegal quarrying (4.76%).
Mining operations singled out by interviewed stakeholders tend to be those into flusher and open
cut mining as well as those undertaken in small-scale by migrants. Mining is known to be the
source of easy money in several remote and poor municipalities of Caraga to the point where no
care is exercised regarding pollution and health consequences.
On the other hand, conversion of forest lands, including idle lands, to palm oil plantations appears
to be popular in several areas in Agusan del Sur, particularly those entered into CBFMA.
Financing is provided for farmers per hectare thus engaging more lands in the process. The lure
of financing tends to be justified by some farmers who contend that no similar financial incentives
are provided for the establishment of tree plantations. In several areas in Davao, banana
plantations are increasing at the expense of forest lands because of a reported strong market for,
and thus income generating potential from bananas. While encroachment in areas declared
exclusively for forestry is a major violation, such plantations are known to adopt monoculture,
which risks species biodiversity and lowers resilience, and are into pesticide use, which may
aggravate the incidence of pesticide pollution in the ARB.
6-3
Kaingin, or slash-and-burn agriculture, is reported to be undertaken haphazardly and at a pace

faster than the regeneration rate due to the absence of profitable alternatives to farming in such
areas as rural parts of Butuan City, Agusan del Sur (e.g., Bunawan, San Francisco, Prosperidad)
and Nabunturan in Compostela Valley. Meanwhile, quarrying particularly along riverbanks, as
reported in Butuan City, tends to be intriguing with permits reported to have been provided by
concerned LGUs although the practice is generally untenable in exposing aggravating riverbank
erosion which is already a problem in the ARB, and increasing the threat of landslides in affected
areas.
Apparently, deforestation and businesses operating in support of it (i.e., wood processing plants)
as well as unsustainable forms of land use discussed above had spawned and further aggravated
incidence of soil erosion (47.62%) particularly along riverbanks and contributed to heavy siltation
(38.10%) of the Agusan River.
Water resources. The Agusan watershed is already at risk with the foregoing disruption of forest
and land resources within it as well as from activities contributing to further despoliation of its
waters and related fishery ecosystems.
The watershed is now particularly vulnerable to further declines in water quality (38.10%) mainly
due to mining pollutants (e.g., mercury, cyanide) from upstream mining operations as reported in
some barangays of Agusan del Sur (e.g., Bunawan, Esperanza). Water quality is also diminished
by improper waste disposal ranging from those generated by wood processing plants (e.g.,
Bayugan) to the scores of drifting logs in several waters (e.g., Esperanza), which remain
uncollected after the total log ban was imposed and several owner-operators were not able to
acquire wood recovery permits.
Illegal fishing appears to be highly poverty-related with small-scale fishers as those in Butuan City
resorting to kuryente (electric) fishing just to enhance fish catch. The practice, which involves
charging currents with electricity to stun fish, are known to harm fish populations as far as 100 sq.
m and permanently disable reproductive capacities of surviving fish species.
Other than threats to quality, the Agusan watershed is also becoming more inclined to flooding
beyond its natural predisposition to it. Flooding, while considered a natural phenomenon in the
ARB due to the location of some areas below sea level (e.g., Butuan City), is at present times
being aggravated by deforestation and the clearing of trees along riverbanks. To an extent,
backflows of the Agusan River during heavy rainfall are already affecting several municipalities
such as Talacogon and Bunawan in Agusan del Sur. In Butuan City, on the other hand, flooding is
being attributed increasingly due to reduced drainage capacities brought about by garbage build-
up. The accumulation of garbage in drainage systems has led to clogging and higher
susceptibility to flooding during prolonged heavy rainfall.
One should understand though that pressures on forest, land, and water ecosystems have social
and institutional dimensions, as those succinctly identified in the earlier sections of the
environmental study. It is noteworthy that in the KII, three (3) of these dimensions appear to be
prominent as far as watershed management is concerned and may have to be given attention
during the master planning process.
z The debilitating or attenuating nature of poverty, which among all stakeholder groups
interviewed, happens to be the overwhelming justification behind harmful and unsustainable
environmental practices done in the Basin. Poverty is often rooted to the lack of options or
choices, particularly to raising additional incomes that would augment presently inadequate
incomes. Locals resort to poor choices with harmful environmental effects not out of
ignorance but from a general sense of hopelessness in their present state in life. This outlook
is pervasive among palm oil plantation farmers, small-scale miners, farmers, illegal fishers,
plant workers, and loggers located at the lowest level of the environmental destruction chain
in the ARB.
z Insecurity in tenurial instruments often leads to disruptive resource use, as those exhibited by
almost all illegal incursions, in riverbanks, forestlands, farmlands, mining areas, or public
lands, and whether by lowland migrants, upland settlers, and industries operating without
6-4
permits. Such incursions, in some cases, have led to the displacement of IP groups within the
watershed area; in part, also attributed to non-recognition of their ancestral claims, or conflicts
among tribes regarding these claims. Among several legitimate wood-based and mining
industries, on the other hand, tenure instruments tend to be corrupted due to weakness in
environmental governance particularly in incentive setting, regulation, and enforcement. The
same may be said for reported CBFMA areas now being converted to palm-oil plantations.
z The capacity for environmental governance should be strengthened to effect positive change,
particularly at the side of government agencies given their regulatory and enforcement
function but, as revealed by the KII, are held inutile by the lack of logistics, funding, support
services and organizational capacity to exercise such functions. The case of forest protection
illustrates this point, where IRRs against timber poaching could not be properly enforced by
the lack of budget and adequate workforce as well as concurrent powers and resources to
effectively police and prosecute violators.
6.2 BASIN REALITIES AND KEYS TO INTEGRATION
If an overwhelming number of basin issues and the different levels of prioritization assigned each
by various stakeholders would be grouped, the Basin appears to possess three (3) attributes
shown in the IRBM Conceptual Framework (Figure 6-1).
Figure 6-1 Conceptual Framework of IRBM for Agusan River Basin
6-5
An assessment of these five (5) attributes given their respective pre-conditions and findings
specific to the Basin is in Table 6-3.
Table 6-3 IRBM Attributes and Preconditions and ARB Gaps/ Problems ARB, 2005-2006
Attribute Pre-Conditions Gaps/ Problems in the Agusan
Well-established jurisdictions
Overlapping political jurisdictions in several
and physical boundaries
barangays within boundary claims of ADS
Physical Unity Well-established physical
and CV
membership in the ARB
All provinces within ARB planning area
planning area
Strong and well-coordinated
institutions Institutional fragmentation
History and practice of Un-unified Basin governance
cooperation and integrated No ARB legislation and no ARB authority
Institutional
action Institutional disorganization and other
Unity
Strong legislation and weaknesses blamed for crucial
policy/law enforcement environmental problems
Financial sustainability of Financially sustainable LGUs
LGUs
Water quality central problem in reducing
quality of existing stocks and those
recoverable for use in the future (artificial
shortage)
Water quantity at risk by rising irrigation
Good condition of watershed
water demand and flooding incidence
resources (water, land,
Watershed resources (water, land, forest,
forest, range, wildlife, and
range, wildlife, and others) and forestry
others) and forestry
resources at risk including special-value
resources
resources (i.e., Agusan Marsh)
Sound environmental
High incidence of water-related diseases
Environmental protection
Weak enforcement of environmental
Value Effective impact mitigation and
laws/policies
monitoring
Stakeholder responsibilities compromised
Strong stakeholder
due to poverty and other social dimensions
management of
of environmental destruction in the Basin
environment
Insufficient and poor quality of knowledge
Accurate knowledge database
data base
Lost productive and protective values of
most watershed areas
Watershed areas not addressed for their
multiple uses for the benefit of various
stakeholders
Pricing of water for domestic use is
established
Pricing for water esp. irrigation generally
subsidized and not reflective of scarcity
cost
Costs for development and O&M for water
Economic pricing
internalized only in domestic water supply
Resource Equitable allocation of
pricing
Competition resources
No effective pricing for other water uses
Equitable cost-sharing
(hydro, mine tailings pond, flood control)
No unified criteria on water resource
allocation for various uses. Resource
allocation determined on a per-project
basis
Knowledge database also disorganized
6-6
Attribute Pre-Conditions Gaps/ Problems in the Agusan
Population growth and migration posing

largest social demographic threats to
resources
High incidence of water-related diseases
Indigenous practices on sustainable
resource use waning due to poverty and
Respect for local knowledge outside influences
and traditional resource IPs have strong bonding with the
management environment esp. with work cycles
Social Representation of local Economic insecurity (i.e., livelihoods, asset
Carrying stakeholders and vulnerable base) high in upland and rural areas
Capacity groups Insecurity of tenure and land use conflicts
Strong stakeholder encouraging unsustainable resource use
participation and Perceptions on asset base, supply
capabilities dependence on water, and empowerment
issues suggestive of lack of access,
ownership, and management opportunities
for water supply
Limited gender mainstreaming despite
women shown as active resource users,
decision-makers and asset-owners
6.2.1 Key Basin Realities
The Development Framework on IRBM for the ARB involves the interplay of its Environment,
Institutions and Stakeholders, of which critical concerns and capacities define the nature of
development strategy and priority projects of the Master Plan as shown in Figure 6-2. Governing
this is an enabling environment of laws and institutions that serves to legitimize political support
and mobilize the needed human efforts, resources and financing to effect positive change.
Figure 6-2 Development Approach to IRBM for Agusan River Basin
6-7
Against this, Basin realities stand out; namely:
z The Environment of the Basin is in a critical position of losing its value as a resource.
This loss is reflected, for instance, in the decline of water quality from the combination of
economic activity and poor urban environmental management, and the decline in forest
resources vis--vis A&D lands. In danger is its ability to sustain various water uses
(existing and potential), livelihoods, and life-ways of its people (i.e., IP and non-IP groups,
those in the Marsh and outside). In the same vein, it is in danger of losing its ecosystem
function in the degradation of watersheds that encompass its land, forest and water
resources.
z Institutions in the Basin have long been sector-oriented and as such, have not been
trained and exposed into working together into cohesive units with unified platforms for
action or with mechanisms that encourage coordination, joint review or cross-sector
deliberation of issues and initiatives. There seems to be very little cross-sector
integration; in such aspects as policy-making, planning, budgeting, funds management,
and information management. This situation yields to conflicting and overlapping
priorities and projects of government agencies and LGUs in the planning area.
z Stakeholders in the Basin, both direct and indirect, and inclusive of IP and non-IP groups
have long been so removed from actual planning, decision-making and action-taking to
the point that existing projects and initiatives do not necessarily address their priority
needs. In some aspects, these projects do not necessarily come in the form that is
enabling or that which allows them to become active participants in implementation and
project development. Empowerment, for instance, is among the top five (5) issues scored
by primary stakeholders in all areas of the Basin, particularly ranking highest in those
living upstream.
z An overwhelming need for a River Basin Organization persists in all consultative

workshops by stakeholders, including provincial governors and local lawmakers. The
RBO is considered necessary to solidify governments, institutions, sectors and local
peoples into a unified development strategy for the ARB, as demonstrated in the 2nd
roundtable discussion in February 2006 in Butuan City.
z This RBO is also relied on to translate development strategy into key interventions
addressing critical development needs and priorities. Other than this, the Agusan RBO is
expected to implement mechanisms and processes by which relevant stakeholders could
rise above sector concerns, and instead deliberate and work together towards solving a
common development problem or cause. The latter could be achieved by building on
existing institutional arrangements already found effective in promoting unity among
various sectors and agencies.
Taking to mind these realities, it is imperative for IRBM planning for the Agusan to be able to
define the means to integrate the Environment, Institutions and Stakeholders in the Basin. These
shall be the basis for the ARB Water Policy, the Development Vision, Goals, and Objectives, and
Development Strategy.
6.2.2 Keys to Integration
The strategy is to define the areas where doing IRBM:

z Intersects with critical needs and concerns in the ARB
z Presents a cross-sector alternative to sector-oriented planning and implementation of
Basin agencies
z Satisfies the elements of integration essential in promoting IWRM
6-8
i) IRBM and Critical ARB Needs and Concerns
It is important foremost that IRBM be responsive to the priority critical needs and concerns raised
by stakeholders during the regional/ provincial/ municipal and community consultations made all
over the Agusan.
To be able to prioritize well the issues/ concerns, each of these were:
1. Identified according to those specific to ARB and relevant to its stakeholders

2. Identified not from literature but from stakeholder consultations, primarily made in
Phase 1
3. Evaluated as to urgency and considered a priority if:
a. Serious and recurring in the ARB

b. Of greatest importance to the largest number of stakeholders
Undertaken in Phase 1, the process yielded five (5) priority Basin issues and two (2) special case
themes. In all, these comprised the first seven (7) key themes comprising he Development
Strategy for the Basin. These and their defining problems, based on the consultations and
prioritization process, are in Table 6-3. The inter-related concerns are shown in Annex 6A.
Table 6-3 Priority Issues/ Special Case Themes in the ARB, 2005-2006
Priority Issue/ Concern Major Defining Problems
Priority Basin Issues
Poor waste management
Water pollution
Declining Water Quality
Dwindling fishery stocks
Rising incidence of public health concerns related to water
Flooding as risk to life, livelihood and property in upstream and
downstream areas
Flooding and Water-
Related Risks Flooding essential to the life-ways in the midstream
Drought risk from El Nio
Quality (i.e., lack of potable water)
Lack of access to water sources
Water Resources
Need for improved regulation of water uses
Need for water resource planning
Loss (biodiversity)
Forest and Land Illegal extraction (forest and land resources)

Degradation Destruction/ degradation (upland, forests, riverbanks)
Insecurity (tenure)
Poor planning and management at the LGU and institutional level
Absence of Basin-Wide
Weak policy-making
Management
Institutional fragmentation
6-9
Priority Issue/ Concern Major Defining Problems

Weak enforcement
Poor knowledge base
Under-utilization of the Agusan River Basin
Special Case Themes
Vulnerability and poverty brought about by tenure (ancestral domain),
IP Groups
knowledge-identity, economic and institutional weaknesses
Loss and vulnerability (biodiversity)
Wetlands (Agusan Encroachment

Marsh) Marginalization of IP communities
Pollution issues
This initial integration according to priority key themes paved for further fine-tuning and resulted
into their more formal ordering into the three (3) core initiatives of:
z Governance, for River Basin Management

z Key WRM Themes, for Water Quality, Flooding and Water-Related Risks, Water
Resources Development, Watershed Management (Forest and Land Management), IP
Development, and Agusan Marsh and Wildlife Sanctuary (AMWS) Management
z Knowledge Development, for Data Banking and GIS Development
Knowledge Development (Data Banking and GIS Development) was taken out of the Basin-Wide
Management category (above table), to be an initiative that should be started in parallel with RBO
development. Knowledge build-up and its development as a vital input to decision-making tend to
be stand-alone in the early stages of existing RBOs in the reigon, as demonstrated by the
experience of PCEEM-Davao. For the Agusan RBO, the function of Knowledge Development
would be integrated in later stages when it has taken-off or fully becomes operational.
ii) Technical Working Groups: Cross-Sector Alternative to Planning and Implementation
On the aspect of implementation, the integration strategy is to initially establish a Technical

Working Group (Thematic Group) dedicated to each of the Core Initiative/Key Theme. These
TWGs/TGs are to be ideally represented by agencies with crosscutting concerns on the relevant
priority issue/ concern being addressed.
The rationale for forming TWGs/TGs is to:
z Involve stakeholders at all levels into the planning and implementation process at an
earlier stage than would otherwise have occurred
z Engage sector representatives in studying the major issues raised for each Core
Initiative/Key Theme identified in the Master Plan, and develop their corresponding work
program for implementing recommended projects/programs
z Test the concept of Working Groups and refine working methods along the way. In the
process, ARB Working Groups, when eventually constituted under RBO Formation and
Development would be more effective
z Build on Working Groups as an existing organizational initiative adopted by different

government agencies in the ARB
In this Master Plan, the TWG/TG concept is aptly demonstrated under RBO Formation and
Development and IP Development.
6-10
For the other Core Initiatives/ Key Themes, existing institutional frameworks have been studied.
This is in preparation to TWG/TG formation during the transition period towards implementing the
Master Plan.
6-11
6.3 ARBMP DEVELOPMENT VISION, GOALS, AND OBJECTIVES
6.3.1 Development Vision
The Agusan River Basin is envisioned as an edifice of a peaceful, prosperous and

empowered citizenry with equitable wealth seated on a well-managed and balanced
ecology for sustainable agro-industrial and eco-tourism development.
The Development Vision for the ARB is a synthesis of vision statements formulated by
participants in a Stakeholders Workshop held in Butuan City in December 2005. Participants
were organized into nine (9) groups, of which four (4) groups submitted their vision statements
structured as follows:
Table 6-4 Vision Statements from Stakeholder Groups December 2005 Workshop,
Butuan City
Group Vision Statement
The Agusan River Basin is envisioned as a pillar of peace-loving,
prosperous and empowered citizenry with equitable wealth
anchored on a well-managed and balanced ecosystem for a
Group II
sustainable agri-industrial development and eco-tourism
destination.
The Agusan River Basin is envisioned as an edifice of peaceful,

prosperous and empowered citizenry with equitable wealth
seated on a well-managed and balanced ecology and preserving
Group III
the culture of the people for a sustainable agri-industrial
development and eco-tourism destination.
The Agusan River Basin is an area of peaceful, prosperous and

empowered citizenry, organized into strong, coordinated
institutional stakeholders, with wealth equitably shared on a well
Group V
managed environment for a balanced development and
protection
We envision a harmonious and peaceful interaction of an

empowered citizenry with equitable wealth seated in the Agusan
Group VIII River Basin with a well-managed and balanced ecology for a
sustainable development
The Development Vision for the ARB is consistent with the vision statements of municipalities and
regional offices representing the planning area; namely, the Provinces of Agusan del Norte,
Agusan del Sur and Compostela Valley; and the Regional Development Councils of CARAGA
Region (Region XIII) and Davao Region (Region XI).
The Vision furthermore runs in parallel with the water policy on integrated and cross-sector water
resources management and sustainable development advocated by the ADB and by the GOP
under Philippine Agenda 21.
6-11
6.3.2 Development Goal

Poverty reduction and enhanced livability in the Basin by the year 2020 through the
optimal development and sustainable use of Agusan River Basin resources according to
an Integrated River Basin Management (IRBM) approach founded on unified governance,
demand-based and high-impact interventions, and effective knowledge database
development.
The Development Vision for the ARB is further translated into a Development Goal where to be
achieved the higher-end purposes of poverty reduction and enhanced livability in the Basin. In its
entirety, the ARB Master Plan does not serve any political institution or industry but rather exists
for the good of all peoples in the Basin.
As such, its higher-end purposes have a human and ecosystem dimension in poverty reduction
and enhanced livability, respectively. Both pursue respect and renewal of social and
environmental carrying capacities and impose an ethic of restraint and conservatism on future
water investments and other activities harnessing land and forest resources in the Basin.
Poverty reduction is paramount, with optimal Basin development aimed towards improving living
standards, enabling local peoples, particularly vulnerable groups such as IPs, to sufficiently meet
their essential needs, have their rights formally recognized, and gain access to basic services.
Enhanced livability, on the other hand, is indispensable, with Basin development aimed towards
the recovery of declining environmental values through rehabilitation, protection, and improved
productivity of its natural physical environment, its watersheds and wetlands in particular.
Optimality is emphasized in renewing the integrity of water, land and forest resources, these
being the foundation on which utility and value of the Basin are realized. Effecting a balance
between optimality and sustainability lives out the IRBM ethic where decision-making is diffused
and actively participated in stakeholders with due regard to their improved governance,
continuous strengthening and capability building.
6.3.3 Development Objectives
To achieve the Development Goal in measurable standards and targets by the year 2020, the
Development Objectives to be pursued by the ARB Master Plan are as follows:
(1) Establishment and operationalization of an ARB RBO that shall assume governance and
corporate functions in harmonizing and realizing IRBM initiatives, supported by the
development of enabling legislation and corresponding institutional, organizational and
operational frameworks;
(2) Institutionalization of collaborative and integrative working arrangements among primary
and secondary stakeholders in the course of planning, prioritizing, and implementing
resource development and management interventions with significant contributions to
poverty reduction and livelihood development;
(3) Strengthening of community participation and local capabilities in addressing key
resource development and management issues through communication, education and
public awareness (CEPA) programs, knowledge transfer, and promotion of effective
indigenous and culturally-appropriate resource management practices;
(4) Enhancement of the planning and implementation of GAD programs in the Basin with the
end in view of improving womens awareness, representation and meaningful
participation in ARB development;
(5) Enhancement in the wellbeing and self-determination of IP groups through legal
recognition of their ancestral domain, traditional rights, and socio-legal institutions, and
reinforced by institutional strengthening and capacity building of IP groups and support
agencies;
(6) Improvement of water quality and related management practices with policy and strategic
interventions in data collection and management, agricultural and industrial pollution
6-12
control, upland catchment management, erosion control and urban environmental

management;
(7) Strengthening of the adaptability and preparedness of Basin people to flooding and
water-related risks through improved water management founded on improved
institutional management as well as structural and non-structural solutions;
(8) Improvement in water resources management (i.e., domestic water supply, sanitation,
irrigation) through better demand management, equitable resource allocation, resolution
of water conflicts and the reconciling of institutional and environmental management
frameworks for planning, decision-making and implementation;
(9) Formulation of an appropriate water price structure, water being a social and economic
commodity, envisioning more prudent use and conservation, and equitable allocation to
various uses;
(10) Sustainable management of Basin watersheds with a focus on their protection and
restoration/rehabilitation including policy reforms, strengthening of management practices
through capability building, IEC, and improved management information systems as well
as support programs for research and development, and monitoring and evaluation;
(11) Sustainable management of the Agusan Marsh through policy and management
interventions in accordance with Ramsar Guidelines and integration initiatives under an
IRBM approach, including data management and monitoring, institutional capacity
building, CEPA, and zone reclassification; and
(12) Enhancement of priority-based, multi-purpose, and high-impact Basin resources
development based on comprehensive and dynamic knowledge database development
and management
6.3.4 VGO And the ARB Water Policy
The VGO for the Agusan are reconciled with its Water Policy, particularly as to the direct impact
generated by each policy area on realizing the grand outcomes by which the Agusan Master Plan
is being founded.
All policy areas, in one way or another, would contribute to meeting the VGOs in its entirety. Here
stressed is the likelihood of direct impact that could be brought about by the policy (Table 6-5).
Table 6-5 ARB VGO and Water Policy, 2005
Mgt of Organization
Vison, Goals, and SW &
Local Gov & Demand Supply Special & Mgt of
Objectives GW
Empowerment Mgt Mgt Basin Basin
(VGO) Mgt
Resources Information
DEVELOPMENT VISION
Peaceful, prosperous and

empowered citizenry
Well-managed and

balanced ecology
DEVELOPMENT GOALS
Poverty reduction
Enhanced livability
DEVELOPMENT OBJECTIVES
1. Establishment and

operation of Agusan RBO
2. Collaborative integrative

arrangements with
6-13
Mgt of Organization
Vison, Goals, and SW &
Local Gov & Demand Supply Special & Mgt of
Objectives GW
Empowerment Mgt Mgt Basin Basin
(VGO) Mgt
Resources Information
stakeholders
3. Strengthening community
participation and local
capabilities
4. Planning and
implementation of GAD
programs
5. Well-being and self-
determination of IP
groups
6. Improvement of water
quality and management
practices
7. Strengthening adapt-
ability to flooding and
water-related risks
8. Improvement in water

resources management
9. Formulation of
appropriate water price
structure
10.Sustainable
management of Basin
watersheds
11.Sustainable
management of Agusan
Marsh
12.Comprehensive and
dynamic knowledge

development and
management
All six (6) policy areas contribute to the realization of the Development Vision and corresponding
goals on poverty reduction and enhanced livability. As such, the policies are very much oriented
to the development purposes of the Master Plan, in combination or as a stand-alone policy.
On the one hand, the policy on local governance and empowerment, for instance, specifically
address objectives on institutional formation and capability building --- horizontally, among
stakeholders with similar complementary functions (e.g., LGUs), and vertically, across different
stakeholder groups that need to be unified in strategy and action (e.g., community-LGU-
government agency).
To sum up, the nature of development objectives addressed by each of the six (6) policy areas
are shown in Table 6-6.
6-14
Table 6-6 ARB Policy Areas and Development Objectives, 2005
No. ARB Policy Area Development Objectives Addressed
Institutional formation
Stakeholder participation
IP and gender development
1 Local Governance & Empowerment Water quality management
Water resources management
Management of flooding and water-related risks
Knowledge development
Water quality management
2 Demand Management Water resources management
Water pricing
Water quality management
3 Supply Management Management of flooding and water-related risks
Surface Water & Groundwater Water quality management
4
Management Water resources management
Management of Special Basin
5 Water quality management
Resources
Watershed management
Marsh management
Organization & Management of Water quality management
6
Basin Information Water resources management
Watershed management
Marsh management
Knowledge development
6.4 ARB DEVELOPMENT STRATEGY
6.4.1 General
There are three (3) Core Initiatives defining the Development Strategy for the ARB. These are:
z Governance, that deals with RBO Formation and Development

z Intervention, specifically on the six (6) thematic areas of Water Quality Management, Water
Resources Development, Watershed Management, IP Development, Flooding and Water-
Related Risks Management, and AMWS Management
z Knowledge Development, founded on GIS Development and Data Banking
This chapter thoroughly explains the basis for the Development Strategy, including its
embodiment of the ARB Water Policy and ARB Development Vision, Goals and Objectives.
6.4.2 Why a Governance Initiative and RBO Formation Strategy
A fundamental element in River Basin Governance is the creation of an RBO crucial to the goals
of visioning, policy integration, institutionalized decision-making, investment programming, and
administration.
6-15
This is necessary because integrated management in the ARB calls for a governing structure and
authority from where all policy-making, decision-making and resulting action agenda shall be
ordered, streamlined, and reconciled.
The Agusan RBO is designed to wield institutional leadership. Its governing function is deepened
by multi-stakeholder representation and participation in policy and program-setting and actual
Basin administration.
In this manner, institutional leadership responds not only to the strong clamor for a responsible
Authority over the Basin but also eventually becomes the necessary machinery that would effect
one-ness over its peoples and institutions. This institutional leadership is crucial in promoting the
very structure and process of integration.
6.4.3 Why an Intervention Initiative and WRM Intervention Strategy
The Intervention Initiative works hand in hand with the Governance Initiative. An effective
institutional leadership in the Basin should be made to function with a mandate of translating into
clear and demand-based interventions.
A. The Concept of Key Themes
Under this Intervention Initiative, the strategy calls for WRM interventions called Key Themes.
The Key Theme approach is an issue-based approach in defining strategic development

interventions that embody stakeholder needs and priorities, and bearing significant contributions
to poverty reduction and livelihood development.
In their entirety, Key Themes are strategic response and action to critical, recurring, and
overwhelming development problems in the Basin. These Key Themes, earlier introduced in this
Master Plan, are reiterated in Table 6-7.
Table 6-7 Key Themes, Intervention Initiative, ARB Master Plan, 2005-2006
No. Key Theme Purpose
To initiate the process of environmental remediation
Water Quality for Basin waters to support human health,
1
Management ecosystems, and livelihoods, and contribute to overall
livability
Flooding and Water- To reduce vulnerability to flooding and drought as a
2 Related Risks water-related risk using structural and non-structural
Management solutions
For water use regulation and water resources
Water Resource
3 planning vis--vis the demand for domestic water
Development
supply, sanitation, and irrigation
To arrest degradation of watersheds whose
4 Watershed Management conditions are intimately linked to the state of forest
and land resources
Constitutes a specialized concern in respect of their
Indigenous Peoples traditional rights over Basin land and resources, their
5
Development long-standing institutions, and their capacity for self-
determination
Recognizing the unique stature of the Agusan Marsh,
Agusan Marsh and
whose longevity and pristine quality requires distinct
6 Wildlife Sanctuary
management strategies and interventions closely
(AMWS) Management
linked to the above Key Themes
Note that eco-tourism development is not a key theme despite being part of the ARB
Development Vision. The combined effects of these Key Themes, nevertheless, contribute
towards the improvement of resource management practices. This improvement, on the overall
6-16
and in the long-term, is meant to correct current environmental problems that hamper the
marketing of the Agusan for eco-tourism (e.g., pollution in Butuan Bay). Eventually, these
interventions would prepare the Basin environment for sustainable eco-tourism development in
the future.
B. The Concept of Key Theme Groups/ Key Technical Working Groups (TG/TWG)
An institutional aspect to these Key Themes is the organizing of stakeholders into Theme
Groups/Technical Working Groups (TG/TWG). This is closely aligned to the formation and
operation of the Agusan RBO.
The TG/TWG is intended to be multi-sector and functioning through cross-sector coordination.

Each Key Theme is to be worked on by a TG/TWG that will further refine and translate into
concrete action plans the development projects and plans contained in this Master Plan.
6.4.4 Why a Knowledge Development Initiative and GIS Development/ Data Banking
Strategy
The Basin could not be the practical unit for planning and decision-making unless a knowledge
database is developed to capture and organize the reality of conditions in it.
The Basin is a thriving and dynamic entity made up of ecosystems, peoples, and institutions. It
would be limiting to concentrate on physical Basin data over the long term; but in the immediate
future, it is a good start. As such, the GIS database would be designed in a manner that would
allow systematic build-up and integration of all other types of data. In the future, a comprehensive
knowledge database of the Basin could be developed.
This Knowledge Development Initiative has an enabling role in relation to governance and future
interventions. Good database development has vital implications on effective leadership and
management that are essential to maintaining commitment to the ARB Development Vision.
In the long term, database development and management shall enable the capacities of
stakeholders to be strengthened in the areas of policy making, strategic planning, program design
and development, and impact evaluation. Effective execution of these functions tends to be highly
dependent on the quality and reliability of information generated from which informed
understanding and sound judgment on resource management issues can be made.
This enabling implication on governance explains why in the setting out of development
programs, those under GIS Development and Data Banking are grouped under RBO Formation
and Development.
6.5 UNITY OF THE DEVELOPMENT STRATEGY
Figure 6-3 illustrates how the three (3) Core Initiatives form a unity and become a one IRBM
Development Strategy for the Agusan. These Core Initiatives correspond with the development
alliance of Environment-Institutions-Stakeholders.
6-17
Figure 6-3 IRBM Strategy for the Agusan River Basin
Each Core Initiative is deemed to be self-sustaining and implemented in parallel. It is impossible,

however, to realize IRBM by only one initiative or two. All three (3) initiatives have to be moving
and well-coordinated in purpose and function.
River Basin Governance would be hollow unless it is moved to action with strategic interventions
to resolve critical Basin problems and steer the ARB towards development participated in by
stakeholders and realizable within its development context and limitations. The Key Themes
meanwhile runs the risk of being disorganized and losing its spirit without the unifying direction
and focus inspired by an RBO. Knowledge Development, meanwhile, would become a wasted
investment unless it becomes a tool to make the right decisions for Basin development by a
governing RBO.
The Development Strategy is original to the Basin, is organic to it, all and of its own, thus
exhibiting the strong potential for ownership and proactive involvement of stakeholders to the
process it engenders.
The Development Strategy especially holds within their internal dynamic strategic horizontal and
vertical integration that helps in actualizing the very process of integration essential to IRBM
(Table 6-8).
Table 6-8 Vertical and Horizontal Integration, ARB Development Strategy 2005-2006
Development Strategy Vertical Integration Horizontal Integration

Stakeholders organized under a Stakeholders are enjoined to
centralizing authority resolve key development issues
in the Basin by working together
Stakeholders bound and held into issue-based collaborations
responsible within an under the TG/TWG concept
RBO Formation and
organizational structure that
Development
sets out their diverse
development roles (e.g.,
advisory, administration,
program development)
6-18
Development Strategy Vertical Integration Horizontal Integration

TG/TWG work under the From Key Themes, strategic
leadership of the RBO, interventions systematically
participated in by stakeholders identified. Process flows from
at a level and purpose strategy to intervention
appropriate to the type of possibilities to impact
projects undertaken assessment and final strategy
recommendations
Key WRM Thematic
Interventions
Structure involves a 2-way Strategic interventions designed
dynamism from top-bottom and to generate the most
vice versa. Participation of meaningful positive impacts,
stakeholders defined until such and consisting of institutional
a time that purposes are served frameworks for implementation,
and target outcomes realized responsibilities, budgets, and
support assistance
Management arrangements, The exercise in itself of
including data sharing and reconciling, organizing and
Data Banking and GIS
feedback mechanisms able to disseminating data facilitates
Development
link stakeholders from barangay the Strategy Formulation
to the highest political level Process discussed above
6.6 FROM POLICY TO STRATEGY TO PRINCIPLES
This ARB Development Strategy informs on the Development Principles adopted by the Master
Plan.
i. The Principle of Remediation and Balance
The Master Plan embodies remediation being the most effective way of arresting the downward
trend towards ecologically unsustainable development, which compromises all others --- social,
institutional, and productive capacities.
In this manner, all development interventions in the ARB would have to strike a balance between
protecting the environment and promoting economic activities. Strategic assessment of impacts
at a general and cumulative scale therefore is a necessary element in the finalization of
intervention strategies.
Accordingly, the sub-basin and its integrity shall serve as the basic practical unit in planning and
decision-making over Basin resources; rather than downstream, midstream, and upstream
orientations.
ii. The Principle of Unified Environmental Governance
Given that the ARB is one homogenous water-based natural resource community, it follows that it
should be under unified and homogenous environmental governance as well.
The three ( 3) provinces of Compostela Valley, Agusan del Sur and Agusan del Norte and Butuan
City inevitably have to band together to achieve unity. This unity is vital to stopping the tendency
towards piecemeal development interventions of the National Government and the private
business sector.
iii. The Principle of Stakeholder Organization
The poor, the women, the youth, the IPs and other politically weak groups in the ARB do not
stand a chance of participation in decision making if not organized into viable institutions that they
themselves will create and support, financially. It is only after financial viability, coming from basic
6-19
community support of these grassroots institutions, that national and international support will be
attracted not before. Thus, a primary task under the IRBM Development Strategy is to devise a
framework for institutionalizing stakeholder groups, as would be done under RBO Formation and
Development.
iv. The Principle of Corporate Capability
To avoid the same fate befalling defunct river basin bodies in the Philippines, the proposed RBO
would have to assume a corporate character by which it could imbue among its stakeholder
groups professionalism and accountability in enforcing its economic development goals. The
RBO, while essentially exercising institutional leadership in the Basin, would also have to exert
authority in the direction and concentration of investments for water resources development and
management, to be done always in partnership and cooperation with LGUs.
v. The Principle of Enabling Elements
The ARB possesses a dynamism that could be trained to the right path of sustainable and
integrated development through enabling instruments that are, first, built on the formation and/or
strengthening of institutions that shall actualize the process; and, second, founded on policy and
legal instruments that shall vest it with authority and political legitimacy. It is in line with this
principle that RBO formation shall be facilitated by support policies and legislation that as much
as possible would be developed out of extensive stakeholder consultations and be living
testaments of stakeholder goals and visions for the ARB.
vi. The Principle of Optimization
The initiative of formulating intervention strategies through Key Themes and the subsequent
formation of TG/TWGs recognizes the long and arduous process by which negotiated decisions
and consensus on key development issues are arrived at. This time element, notwithstanding the
amount of debate and negotiations among diverse resource users and managers, is considered
essential to integration. This is in order for stakeholders to experience the very process of
unraveling complexities and from this experience, gain a certain level of maturity and
understanding of the importance of collaboration and compromise in the resolution of critical
resource development issues. In this exercise, the guiding principle is optimality where decision-
making is negotiated and courses of action settled under compromise and a consensus.
vii. The Principle of Carrying Capacity
Plans, programs and projects that will be implemented in the ARB should meet the test of
carrying capacity which, itself, has two (2) dimensions: (i) environmental, which is the carrying
capacity of its watersheds and wetlands; and, (ii) social, which is the carrying capacity of the
people and their institutions to support the long-term implementation of these undertakings. As
such, it would be a continuing exercise under the optimization process to assess the absorptive
capacity of vulnerable social groups to development interventions being planned and/or
implemented in the Basin.
6.7 FROM POLICY TO STRATEGY TO PROJECTS
Other than integration that works vertically within an authority and organizational structure and
horizontally, across stakeholder levels and the spectrum of related functions, the ARB
Development Strategy arises systematically from the ARB Water Policy and the VGOs set forth in
preceding chapters. This section shows this consistency and the eventual mix of programs and
projects reflective of the policy and exhibiting the realization of IRBM for the Agusan (Table 6-9).
6-20
Table 6-9 Policy Initiatives to Development Programs/ Projects ARB Master Plan, 2006
ARB DEVELOPMENT
ARB WATER
ARB VGOs DEVELOPMENT PROGRAMS AND
POLICY
STRATEGY PROJECTS
1. Organization of Working
Secretariat
2. Institutional
Governance DEVELOPMENT Stakeholders Congress
and VISION
3. Organization &
Empowerment Peaceful, prosperous
RBO Formation Operation of Interim
Demand and empowered
and Development Board of Trustees, RBO
Management citizenry
Staff and Sub-Basin
Supply Well-managed and
Management Units
Management balanced ecology
4. Implementation of Public
Awareness and Gender
Plans
5. FS of Agro-Industrial Eco
Zones
6. Establishment of Data-
Banking and GIS-Based
Decision Support System
Surface Water & DEVELOPMENT
Groundwater GOALS
Key Thematic WRM Interventions
Management Poverty reduction
Management of Enhanced livability
Special Basin DEVELOPMENT
Resources OBJECTIVES a. Institutional
Organization Strengthening for Basin-
1. Establishment and
and Wide Water Quality Data
Management of operation of
1. Water Quality Collection &
Agusan RBO
Basin Management Management
Information 2. Collaborative b. Organic Fertilizer and
integrative Biogas Production
arrangements with Project
stakeholders
3. Strengthening a. Implementation of
community Butuan City Drainage
participation and System Master Plan
local capabilities b. Preparation of Drainage
4. Planning and System Plans for
implementation of Magallanes, Esperanza,
GAD programs Bayugan, Monkayo, Las
Nieves, Montevista,
5. Well-being and 2. Flooding and Nabunturan, &
self-determination Water-Related Cabadbaran
of IP groups Risks c. FS of Multi-Purpose
6. Improvement of Management Project at Agusan Marsh
water quality and Outlet
management d. Update and
practices Implementation of Upper
Agusan Flood Control
and Drainage System
Project
e. Establishment of Flood
Warning & Flood
6-21
ARB DEVELOPMENT
ARB WATER
POLICY
STRATEGY PROJECTS
Forecasting System in
Butuan City and Flood-
Prone Municipalities to
Agusan River
3. Water a. Five (5) Water Supply
Resources Projects: Monkayo,
Development Compostela, Bayugan,
Trento, Patin-Ay
b. FS/ Master Plan for Two
(2) Sewerage Projects:
Butuan City & Agusan
Marsh
c. Water Supply
Management Project in
Taguibo River
7. Strengthening d. FS for One (1) Multi-
adaptability to Purpose and Four (4)
flooding Pump Irrigation Projects:
8. Improvement in Ojot, Sta. Josefa,
water resources Guadalupe, Las Nieves,
management Nueva Era
e. FS for Butuan City Inland
9. Formulation of
Port & Agusan River
appropriate water
Transport System
price structure
a. Policy and Institutional
10. Sustainable Reforms
management of
b. Watershed
Basin watersheds
Characterization and
11. Sustainable Management Planning
management of Project
Agusan Marsh c. Watershed Restoration
12. Comprehensive and Rehabilitation
and dynamic Project
4. Watershed
knowledge Management d. Watershed Protection
development and Project
management e. Harmonization of
Tenurial Instruments and
Boundary Conflict
Resolution
f. Capability Building/
Community Organizing/
Stakeholder
Development Projects
a. CADT Processing
Project (10 sites in 6
sub-basins)
b. Preparation of ADSDPP
(14 sites in 8 sub-basins)
5. IP Development
c. IKSP Research Project
(14 sites in 8 sub-basins)
d. Pilot Codification of
Customary Laws (7 sites
in 4 sub-basins)
6-22
ARB DEVELOPMENT
ARB WATER
POLICY
STRATEGY PROJECTS
e. Capability Building for
IPs (1 city & 3 provinces)
f. Capability Building for
NCIP & LGUs (Basin-
wide)
g. Locally-Managed
Enforcement System (13
sites in 8 sub-basins)
h. Improvement of IP Agro-
Fishery Production
Systems (11 sites in 6
sub-basins)
a. AMWS Management
Plan Formulation &
6. AMWS Implementation Project
Management b. Projects Linked to Basin-
Program Wide Programs
c. Regulated Public-Access
Project
1. Procurement of
Equipment, GIS Software
& Establishment of Web-
Enabled Database
2. Basic & Advanced GIS
Training
Data Banking and 3. Data Summit
GIS Development 4. Continuing Education
(Establishment of 5. Update of Maps &
Data Banking and Database
GIS-Based Decision
Support System) 6. Data Sharing & Web
Management
7. Monitoring & Database
Build-Up
8. GIS-based Modeling &
Data Analysis
The succeeding chapter elaborates on these Development Programs and Projects that translate
into relevant courses of action the ARB Development Strategy.
6-23
6.8 CONCLUSION AND RECOMMENDATION
The general recommendation is the conduct of information, education and communication (IEC)
campaign to be able to disseminate information on environmental laws, cause and effects of
destructive environmental activities, and the long-term benefits of communities if the natural
resources are not destroyed. The IEC campaigns can also encourage volunteerism to monitor
illegal environmental activities rampant in concerned localities. Together with the IEC, community
organizing is also a vital activity for a more sustainable implementation of any activity. It is also a
strategy that can be used to educate people and increase community awareness. There is a
need to unify government officials and communities in the management of natural resources for
cooperation among stakeholders on any development activity.
6-24
INTER-RELATED CONCERNS
BASIN PROGRAMS AND PROJECTS
7.0 BASIN PROGRAMS AND PROJECTS

This Chapter presents the assessment of basin water control structures, an overview of identified
projects for the ARB by means of a general summary, by key theme and by sub-basin. It is
necessary to reiterate the 17 sub-basins for the Agusan River Basin as reflected in Table 7-1
which was subdivided to facilitate the planning process.
Table 7-1 The 17 Sub-River Basins of the ARB, 2005-2006
Sub-Basin Area
No.
NWRB Name Local Name (Sq. Km)
1 Adgaon RB Adgaoan 980.89
2 Agusan Marsh Agusan Marsh 193.30
3 Bugabos RB Bugabos 170.55
4 Gibong RB Gibong 926.38
5 Haoan RB Ihaoan 746.35
6 Kasilan RB Kasilayan 376.89
7 Kayonan RB Umayam 725.97
8 Libang RB Libang 246.56
9 Logom-Baobo RB Logom-Baobo 291.20
10 Maasam RB Maasam 418.20
11 Manat or Upper Agusan RB Manat/Upper Agusan 1,758.22
12 Minor RB Lam-awan 2,199.87
13 Ojot RB Ojot 924.19
14 Simulao RB Simulao 978.38
15 Sulibao RB Sulibao 159.75
16 Taguibo RB Taguibo 75.72
17 Wawa-Andanon RB Wawa-Andanan 764.14
Agusan River Basin 11,936.55
Various methodologies used in prioritizing projects are explained as well as the major
considerations in project selection. The programs and projects defining the ARB Master Plan are
a combination of:
z New initiatives that take guidance from stakeholder consultations and come from expert
analysis of critical needs and local conditions;
z Existing initiatives that are in the pipeline of the LGUs concerned and found in local
development plans or already supported with their own feasibility or pre-investment
studies
These development programs and projects abide by the ARB Water Policy, are within the spirit of
its development Vision/ Goals/ Objectives and most importantly, embody the ARB development
strategy.
These development programs and projects mutually support each other; and in some cases
directly linked. For instance, thematic interventions for the Agusan Marsh are significantly
interlinked with those under water resources development, flood management, and IP
development.
The projects identified are also in no way exhaustive or complete. This is an initial identification,
with a view on an established RBO to build up on this initial portfolio of projects.
It should also be reiterated that while a distinct initiative, the program for Data Banking and GIS
Development is subsumed under RBO Formation and Development. The Knowledge
Development Initiative while a parallel effort to the creation of the Agusan RBO would be
7-1
eventually integrated within the functions of the latter and so is presented as among its principal
program/project initiatives.
This Chapter highlights the host of program/project interventions for each thematic area. To
understand the nature of programs/projects proposed, particularly in relation to existing and on-
going initiatives in the Agusan, it would be necessary to consult with the Thematic Reports
prepared for the Core Initiative/Key Theme.
7.1 ASSESSMENT OF BASIN WATER CONTROL STRUCTURE
Based on the latest available data, the NWRB has approved 299 water permits for various water
uses in the ARB, of which 184 permits have complete information for inputting into GIS format.
The number of permits per intended use is summarized in Table 7-2.
Table 7-2 NWRB Water Permits, Selected Uses, ARB, 2005
Purpose Number Q (lps)*

Irrigation 120 55586.00
Domestic 42 624.00
Industrial 13 2289.00
Power 5 34515.00
Recreation 2 15.40
Fisheries 2 21.00
Total 184 93051.40
* lps = liters per second
Its could be established at this stage that irrigation and domestic water supply are the two (2)
major uses of water in the ARB. The assessment in this section therefore focuses on these two
primary uses.
7.1.1 Irrigation Development
(a) General Status
Based on the 2004 Status of Irrigation Development Report obtained from the Provincial Irrigation
Offices of Agusan del Norte, Agusan del Sur and Compostela Valley, irrigable areas in the Basin
are about 207,000ha. Of these, only 56,000ha are under irrigation or that only 27% of potential
area is being utilized. NIA records further show that irrigation efficiency in existing systems is
quite low at 50.66%. Therefore, opportunities exist for improving irrigation efficiency, which
includes diversifying into non-rice crops requiring less irrigation water.
The remaining area of 151,000ha shall be subject to study in relation to the availability of water
supply, and in close coordination with various stakeholders. This includes sensitivity analysis of
the present supply and utilization of water resources for domestic, industrial and irrigation
purposes for future planning.
(b) Communal Irrigation Systems (CIS)
The same 2004 Status of Irrigation Development Report indicates that the ARB is being operated
by at least 40 communal irrigation systems (CIS) Table 7-3.
7-2
Table 7-3 Communal Irrigation Systems, ARB, 2004

Cost
Cavans
Name Municipality Ha Mil X-Coord Y-Coord
Per Ha
PhP
Bonbon CIS Butuan City 50 85 0 125.531 8.88204
Bancasi CIS Butuan City 100 85 0 125.5355 8.94508
Talo-Ao CIS Butuan City 157 80 0 125.5192 8.94047
Aupugan CIS Butuan City 232 75 0 125.5469 8.88206
Basag CIS Butuan City 38 80 0 125.5928 8.90254
Lingayao CIS Las Nieves 200 80 0 125.5812 8.72489
Maga-Florida CIS Las Nieves 76 80 0 125.6103 8.73073
Charito CIS Bayugan 200 80 30 125.7604 8.67011
Marcelina CIS Bayugan 200 80 30 125.7642 8.64862
Bayugan I Bayugan 200 95 30 125.7768 8.68655
Mambutay CIS Bayugan 75 80 11.25 125.7372 8.72743
San Vicente CIS Prosperidad 150 85 22.5 125.9132 8.55006
Baon CIS Rosario 100 80 15 126 8.30512
Upper Padigusan Rosario 60 80 12 126.0046 8.3177
Wasian CIS Rosario 100 80 15 126.0076 8.30805
San
Maslog CIS Francisco 60 75 7.5 125.9979 8.44982
San
Bayugan II CIS Francisco 60 75 7.5 125.9635 8.45443
San
Adlayan Hubang Francisco 200 85 30 125.9812 8.50309
San
Upper Hubang CIS Francisco 200 85 30 125.9744 8.51399
Sayon CIS Sta Josefa 160 80 19.5 125.9942 7.93897
Angas CIS Sta Josefa 100 80 15 126.004 7.93762
Banayan CIS Trento 100 0 15 126.0654 8.01953
Lower Awao/Sayon Sta Josefa 30 80 7.5 125.9898 7.93948
Upper Awao Sta Josefa 300 80 45 125.9983 7.9383
Linoan CIS Montevista 37 80 0 125.9976 7.6874
Simsiman CIS New Bataan 50 60 0 126.151 7.57167
Batinao CIS New Bataan 155 90 0 126.1094 7.55764
Lower Sao-Sao CIS Mawab 72 64 0 125.9726 7.61639
Upper Sao-Sao CIS Mawab 42 80 0 125.9857 7.6177
Mawab CIS Nabunturan 168 80 0 125.98 7.62866
Cabidianan CIS Nabunturan 100 75 0 126.0072 7.67776
Dauman CIS Montevista 87 75 0 125.9958 7.72379
Monkayo CIS Monkayo 60 80 0 126.1151 7.73913
Upper Naboc CIS Monkayo 188 75 0 126.1076 7.72335
Lower Naboc CIS Monkayo 292 75 0 126.1032 7.69661
Ngan CIS Compostela 250 75 0 126.0962 7.69179
San Miguel CIS Compostela 250 85 0 126.101 7.6611
New Albay CIS Maragusan 150 65 0 126.1476 7.34489
Tigbao CIS Maragusan 241 60 0 126.1468 7.32862
Haguimitan CIS Monkayo 14 41 0 126.0611 7.86363
Field interviews reveal that many CISs have been upgraded with assistance from line agencies,
although a significant number are still awaiting technical and financial assistance. The traditional
system that usually diverts water from a river or stream by a temporary gravel/stone or stake weir
is prone to destruction by high river flows during the rainy season other than displaying
inefficiencies in conveyance (canal seepage) and water distribution.
Assistance from line agencies to technically upgrade a CIS requires a minimum equity of 10%
(higher equity is more preferred) of the total project cost in the form of cash, labor or material. The
7-3
remainder is then amortized by farmer-beneficiaries or farmers associations usually for a period

of 50 years without interest. Payment often comes in the form of irrigation service fees payable
every harvest season. In practice, however, the typical annual irrigation service fee is at a low
value of P2500.00 per ha. Such fees are only enough to cover operation and maintenance
expenses and does not include cost recovery of projects undertaken.
In other schemes, the farmers association may pay equity of 20% of the total project cost, with an
LGU counterpart of 10%. The farmers association is no longer required to pay the remaining
balance of 70% because of their eventual ownership of the facilities. Beneficiaries of such
schemes are required to be registered associations and to secure a water permit from the NWRB.
(c) National Irrigation Systems (NIS)
About eight (8) NISs are in the ARB, the features of which are in Table 7-4.
Table 7-4 National Irrigation Systems, ARB, 2004
Cost
Cavans X- Y-
Name Municipality Ha Mil
per Ha COORD COORD
PhP
LADP Butuan City 7700 95 0 125.5883 8.94464
Cabadbaran RIS* Cabadbaran 3212 95 0 125.5765 9.0808
Cabris/Sanghan Ext Cabadbaran 250 95 0 125.5621 9.09787
Andanan River NIS Bayugan 3000 85 600 125.7313 8.71521
Gibong NIS Prosperidad 2156 90 433.2 125.902 8.5854
Sumilao RIS Trento 2975 85 595 126.0419 8.09115
Simulao RIS
Extension Trento 900 85 225 126.0343 8.11138
Batutu RIS Compostela 3152 90 0 126.0725 7.67118
* RIS = river irrigation system
National irrigation projects (NIPs) proposed by NIA are usually larger than 1,000 ha, with enough
water recoverable from nearby rivers during the dry season to irrigate at least two-thirds of the
total planned area. Other than these, access to the proposed project area should have been
available, the development cost per hectare within reasonable amount and an EIRR of 18% or
higher. Strong political support from the area or the national office is, in most cases, a requisite
for eventual implementation of these proposed projects. NIPs that have been pursued by NIA in
the ARB but later shelved due to funding and land acquisition problems are the Solibao River
Impounding Project (RIP), Adgaoan RIP; Logum RIP and Umasa (Boabo) RIP.
(d) Water Duty
Potential areas for irrigation are pre-determined using a water duty equal to 1.5-2.0 lps/ha as
recommended by NIA. The values are based on detailed analysis of parameters involving soil
type, crop factor, evaporation, evapo-transpiration, rainfall, seepage, and irrigation efficiency. The
lowest river discharge is also a factor to obtain the dependable water supply of concerned rivers
or creeks. Nevertheless, such size of water duties in irrigation merit further studies as to the
types of crops to produce that would consume less amount of irrigation water.
(e) Projected Water Utilization
Total irrigation water demand in the whole Basin until 2030 is estimated to reach 4,380MCM and
5,840MCM at 1.5 lps/ha and 2.0 lps/ha water duty, respectively. Based on the probability
exceedance of 80%, the potential surface water of the Basin for the same period is about 5,278
MCM after deducting municipal and industrial water demand. In the appropriation of water
resources, municipal and industrial water demand are given the top priority against the irrigation
demand since the provision of potable water in the area is a basic need and one of the priority
programs of the GOP.
7-4
Under the water duty of 1.5 lps/ha, the Basin will have excess water of about 898 MCM.
However, under a water duty of 2.0 lps/ha, the projected demand would be large and a water
deficit would be generated at about 562 MCM. Adgaoan River would exert the largest projected
water demand of 1,291 MCM while Umayam River would record the least demand of 68 MCM.
Previous water balance studies conducted in the Basin suggest that surface water shortage would
be critical in the future at several sub-basins. This is due primarily to population pressure and the
expansion of irrigation projects in respective sub-basins. Under such scenario, eight (8) sub-
basins would experience water deficits before the projected year 2030; namely:
1. Gibong River, projected water demand would be larger by about 9.0 MCM than the
available water due to the expansion of irrigable area
2. Simulao River, water demand of 635 MCM in the projected year of 2030 will generate a
water deficit of about 14 MCM in 2017
3. Upper Agusan River, would encounter a water deficit of about 22 MCM in 2020 under a
2.0lps/ha water duty
4. Manat River, would experience a water deficit of 10.0 MCM in 2018 under a 1.5lps/ha
water duty and 4 MCM water deficit in 2012 under 2.0 lps/ha water duty. Applicability of
storage reservoir-type scheme considered.
5. Boabo River, water demand would exceed supply in 2015 should irrigation projects be
implemented by about 37MCM and 63MCM under 1.5lps/ha and 2.0lps/ha water duty,
respectively
6. Lagum River, water demand would exceed supply in 2015 should irrigation projects be
implemented by about 28MCM and 54MCM under 1.5lps/ha and 2.0lps/ha water duty,
respectively
7. Ihaoan River, would experience a water deficit of 4.7MCM in 2017 under a 1.5lps/ha
water duty and 13.0MCM water deficit in 2012 under 2.0 lps/ha water duty
8. Adgaoan River, would generate a water deficit of about 7MCM in 2020 under 2.0lps/ha
water duty and 46MCM in 2022 under 1.5lps/ha water duty
For other sub-basins, available water would be more than enough to sustain projected irrigation
demand up to 2030, but they should regularly be updated.
Nevertheless, in-depth studies may have to be conducted on surface water development for
irrigation needs in affected sub-basins that takes account of such projected shortages. On the
other hand, the applicability of run-of-river and storage reservoir-type schemes may be
considered but as long as watershed conservation measures are implemented and strengthened
to maintain reliable supply of water in the tributaries of sub-basins. In connection with storage
reservoir-type schemes, conceivable dam sites, which are subject to strict scrutiny of
practicability, have been identified in Table 7-5.
Table 7-5 Proposed Dam Sites, ARB
Height Storage Volume Power Potentials

Dam site
(m) (MCM) (MW)
Wawa 180 6,980 -
Andanan 140 620 -
Gibong 50 2,540 -
Bunawan 100 1,400 -
Simulao 120 900 -
Upper Agusan 100 1,080 -
Ihaoan 40 700 -
Umayam* 100 1,250 130
Adgaoan* 60 920 65
Ojot* 90 2,700 30
* Hydropower is included as one of purposes. MW = megawatt
(Source: National Flood Control Plan and River Dredging Program, DPWH, 1982)
7-5
Further, to maximize project efficiency, proper management and other institutional measures
would have to be considered in the development of irrigation projects.
The proposed irrigation projects that would abstract water by diversion weir from the Maasam,
Libang, Ojot and Busilao rivers would irrigate areas in forestlands comprising of undulating and
less populated terrain unlike that of existing irrigation systems around Agusan Marsh. These
projects, therefore, receive lower priority than those aiming to serve more populated areas. In the
future, however, these irrigation projects may be among development projects pursued to
encourage settlement in areas with high farming potential as a way of relieving population
pressure from highly populated areas in the municipalities of Veruela, Santa Josefa and San
Francisco. In such case, a reclassification of said forestlands into A&D lands may be necessary
although an assessment of the trade-offs in land conversion should inform and guide decision-
making.
Meanwhile, the proposed overflow weir in the large Adgaoan River originally planned by NIA at
Halapitan is to be transferred near the Cayawan River (a tributary to Adgaoan River) and closely
upstream of Langasian. The new location will cover a higher lying area of mainly A&D classified
land reserving some distance from the NIPAS-protected Agusan Marsh.
In the timeframe until 2030, there are proposals for several NIA projects in the following order:
Year 2006-2010: Ngan and Solibao dams; Ihaoan, Mamunga, Manat and Laminga RIPs;
and Simulao RIS extension
Year 2010-2020: Ma-a Dam; Mambalili, Cayawan, Umasa (Baobo), Logum, Ojot and
Maasam RIPs
Year 2020-2030: Busilao, Libang and Adgaoan-Umayam RIPs
Until 2010, development of NISs and CISs constitutes relatively small projects that will not likely
meet serious technical and social problems. Proposed development projects within the period
2010-2020 are, however, large in scale and so should merit significant study, design and
construction planning. The remaining three (3) projects for 2020-2030 are on less populated
areas of the Basin covering vast tracts of forestland. With this planned development in
forestlands, the identification of suitable lands for agriculture within these areas would have to be
studied preferably in line with the existing land use plan. In these projects also, the prospect of
multi-purpose undertakings may be considered such as those involving power and water supply.
7.1.2 Water Supply Systems
In the following discussion, the status of several WDs operating Level III systems in the study
areas are presented, including present tariff structures established for pricing of water used for
residential and commercial/industrial/bulk use.
In subsequent assessments of water consumption in the ARB, the per capita consumption
standards established for water service levels in the Philippines shall be applied. The
classification of water service into Levels I to III in the Philippines exacts a standard as to the
1
adequate amount of water utilization per capita for each service level. For Level I that usually
serves around 15 households within a radius of 250m, at least 20 liters per day (lpd) is an
adequate per capita consumption. On the other hand, for Level II that serves 4-6 households
within 25m, the standard is about 60 lpd/capita while for Level III that targets densely populated
settlements, this is about 100 lpd/capita.
1
2.1 Level I service consists of a point source from which users obtain water directly. Level II service is a piped
system with community faucets, serving 4-6 households within 25 meters while Level III service is a full waterworks
system with individual house connections for those residing in densely populated settlements. Most Level I and II systems
are run by LGUs through the Barangay Water System Associations (BWSAs) and the Rural Water System Associations
(RWSAs).
7-6
(a) Initial Status of Selected WDs in Study Areas
1. Butuan City
In 2003, 52% of households in Butuan City are already connected to Level III systems while the
rest, their source requirements is either from Level II (42%) or Level I (6%) systems. The total
service population of these systems consisted of 40,940 households. On the other hand, 5,052
households had no access to water or roughly 12% of the existing served population.
Butuan City WD. The WD acquired its Conditional Certificate of Conformance (CCC) No. 7 in
1974. By October 2005, the WD is already serving 26,364 connections distributed as follows:
24,468 residential (93%), 1,619 commercial (6%), 261 government (1%), and 12 bulk water.
Average monthly water consumption of all customers is about 516,160 cu. m. The service area
covers 50 of 86 barangays consisting of 27 urban and 23 rural barangays.
Ground and surface water sources are currently being utilized; namely, 10 wells and waters
abstracted from the Taguibo River through an infiltration gallery. Only 2 of the 11 sources have
water permits while the rest are being processed. The water permits are for the deep wells at
Purok I-A and Brgy. Baan, and surface water from Taguibo River.
2. Agusan del Norte
As of 2003, 48,172 households had been served by Level I to Level III water supply facilities in
the province. The dominant water supply is Level I (42.19%) followed by Level II (39.65%). Only
8,752 households have direct household connections. The remaining unserved population of
4,607 households relies on dug wells or springs for their drinking water.
Buenavista WD. The Buenavista WD was granted CCC No. 406 in July 1989. As of 2005, the WD
has 1,500 connections distributed over 13 of its 25 barangays; namely, Poblacion 1, Poblacion 2,
Poblacion 3, Poblacion 4, Poblacion 5, Poblacion 6, Poblacion 7, Poblacion 8, Poblacion 9,
Poblacion 10, Malpoc, Sacol and Matabao. Its water sources are from three (3) wells with water
permits and discharges as shown in Table 7-6.
Table 7-6 Water Permits and Discharges, Buenavista WD ARB, 2005
Water Water Date Discharge

Location Latitude Longitude
Source Permit Granted (lps)
Groundwater Malpoc 17831 1950 8.00 8-57-45 N 125-23-56 E
Groundwater Malpoc 17793 2000 13.15 8-57-35 N 125-23-55 E
Groundwater Malpoc 2003 8-56-48 N 125-23-49 E
3. Agusan del Sur
Majority of municipalities in Agusan del Sur are presently served by Level I and Level II water
systems. The total served population by 2002 consisted of 72,067 households relying mainly on
Level I systems (53%) followed by Level II (34%) and Level III (13%). Comprising nearly 45
percent of the served population, the remainder of 31,570 households, have no access to potable
water supply and instead depend on dug wells, springs, creeks, and rainwater. Note that Level III
systems in the province exist only in 3 of its 14 municipalities of Agusan del Sur; namely,
Bayugan, Prosperidad, and San Francisco.
Bayugan WD. The WD is operating by virtue of CCC No. 243 granted in April 1983. Its system,
consisting of 2300 connections as of October 2005, is servicing 6 of 43 barangays; namely, Sta.
Teresita, Fili, Taglatawan, Poblacion, Maygatasan and Noli.
The WD is currently tapping 2 of its 3 spring sources; namely, Spring I and Spring II. These
springs are located within the Pinagalaan watershed managed by the municipality and the WD.
Still being processed are its water permits as follows (Table 7-7).
7-7
Table 7-7 Water Permits & Discharges, Bayugan WD ARB, 2005
Water Date Discharge

Water Source Location Latitude Longitude
Permit Granted (lps)
Spring I 22254 60.00 8-44-50 N 125-4-42 E
Spring II 22255 36.00 8-45-08 N 125-47-44 E
Spring III 22256 45.00 8-45-20 N 125-47-50 E
Prosperidad Water District. The WD, which was granted CCC NO. 66 in October 1978, had about
921 connections by October 2005. Its Level III systems are serving 6 of 43 barangays; namely,
Poblacion, Bayobo, Mapaga, La Suerte, Las Navas and Lucena. These served areas 8-9are
generally urban and built up close to the Poblacion.
Water supply is sourced from two (2) springs at Binaba and Gibong; the management of the
watershed being undertaken by the municipal government. Water permits for these sources have
the following features (Table 7-8).
Table 7-8 Water Permits & Discharges, Prosperidad WD ARB, 2005

Binaba Spring 17723 May-97 30.80 8-36-55 N 125-54-58 E
Gibong Spring 15452 Oct-96 4.30 8-35-52 N 125-56-02 E
San Francisco WD. Under CCC No. 399 obtained in 1988, the WD is already servicing 3717
connections by October 2005. The served population is distributed in 13 of 27 barangays; namely,
Poblacion 1, Poblacion 2, Poblacion 3, Poblacion 4, Poblacion 5, Pisaan, Hubang, Alegria,
Lapiningan, Pasta, Buena Suerte, and Osmena.
Present water supply sources consist of 6 springs and 2 mountain streams, of which the primary
source is from the watershed of Mt. Magdiwata. The water permits for these sources are as
follows (Table 7-9):
Table 7-9 Water Permits & Discharges, San Francisco WD ARB, 2005
Binus-agan Creek Karaos 13868 Jul-93 20.00 8-28-49 N 125-58-59 E
Lapag Creek Karaos 13869 Jul-93 6.40 8-28-55 N 125-59-10 E
Karaos Spring I Karaos 13871 Jul-93 32.00 8-29-20 N 125-58-52 E
Karaos Spring II Karaos 13870 Jul-93 5.00 8-29-15 N 125-58-48 E
Tinggangawan I Alegria 15448 Oct-96 15.00 8-29-20.1 N 125-59-58.5 E
Tinggangawan II Alegria 15447 Oct-96 80.00 8-29-16.08 N 126-00-03 E
Lapag Creek Karaos 15449 Oct-96 10.00 8-29-19 N 125-59-35.1 E
Anagasian Spring Ormaca 15450 Oct-96 25.00 8-27-25.02 N 125-59-21.1 E
Uog Spring Alegria 15451 Oct-96 44.00 8-29-18.3 N 125-59-58 E
Tinggangawan Creek Alegria 18686 Sep-03 110.00 8-28-56 N 126-00-03 E
Uog Creek Alegria 18687 Sep-03 72.30 8-29-07 N 125-59-47 E
4. Compostella Valley
As of 1999, Compostela Valley had about 50,815 households (61%) served by Level I systems,
20,515 households (25%) by Level II, and 12,398 households (15%) by Level III. Relative to this,
about 17,658 households remain unserved or roughly one-fifth of the served population.
Table 7-10 shows the various water sources of municipalities served by Level III systems.
7-8
Table 7-10 Water Sources of Level III-Served Municipalities ARB, 1999

Location and Number of
Municipality Location of Water Sources
Pumps
1. Compostela Poblacion Poblacion (2 pumps)
2. Laak Poblacion and Pob. & Kapatagan
Kapatagan (1 pump & 1 spring)
3. Mabini Lapinigan Water System Lapinigan (1 pump)
4. Maco Maco Water System Poblacion (1 pump)
5. Maragusan Maragusan Maragusan (4 springs)
6. Mawab Andili Andili (2 springs)
7. Monkayo Banlag Water System Banlag (1 spring)
Tubo-tubo Tubo-tubo (1 spring)
Pagkain ng Bayan Pasian (1 pump)
Monkayo Water System Poblacion (2 pumps)
8. Montevista Poblacion Poblacion (2 pumps)
9. New Bataan Andap Andap (2 springs)
Camanlangan Camanlangan (1 spring)
10. Pantukan Pob. District Hospital Poblacion (1 pump)
The urban areas of Compostela, Mabini, Maco, Montevista, Monkayo, Nabunturan and Pantukan
are predominantly served by the local water works powered by electricity. Meanwhile, the urban
areas of Maragusan, New Bataan and Laak are served by gravity and spring sources. Only
Nabunturan though is operated under a WD.
Nabunturan Water District. CCC NO. 146 was granted to Nabunturan WD in 1981. As of October
2005, the WD is serving 2500 connections distributed in 7 of its 28 barangays. Its present water
supply sources are five (5) deep wells that, however, are found to have high iron and manganese
content. Water permits for these sources are presented below (Table 7-11).
Table 7-11 Water Permits & Discharges, Nabunturan WD ARB, 2005

Groundwater No.5 New Sibonga 17575 Mar-01 2.20 7-33-45 N 125-55-42 E
Groundwater No.4 Pangutosan 17324 Jul-00 18.43 7-36-26 N 125-58-32 E
Groundwater No.3 Purok 7 12652 Jul-91 20.00 7-35-58 N 125-57-46 E
Groundwater No.2 Purok 9 12651 Jul-91 8.00 7-36-14 N 125-57-45 E
Groundwater No.1 Public Market 12650 Jul-91 6.00 7-36-30 N 125-58-08 E
(b) Tariff Structures
For cost efficiency, the usual practice for WDs and WSPs is to structure tariffs to recover their
investment. For WDs within the Basin, residential customers pay from PhP105.00 to PhP175.00
for the first 10 cu. m whereas commercial/industrial users pay from PhP183.00 to PhP300.00 for
the first 10 cubic meters. Table 7-12 shows the water rates of several water districts within the
ARB.
Table 7-12 Water Rates, Selected Water Districts
Bayugan Water Minimum 11-20 21-30 31-40 41-50 51

District Charge cu.m. cu. m. cu. m. cu. m. cu. m. up
Residential/Govt. 128.00 14.00 15.60 17.60 20.00 22.80
Commercial/Industrial 256.00 28.00 31.20 35.20 40.00 45.60
Commercial -A 224.00 24.50 27.30 30.80 35.00 39.90
Commercial - B 192.00 21.00 23.40 26.40 30.00 34.20
Commercial - C 160.00 17.50 19.50 22.00 25.00 28.50
7-9
Bulk/wholesale 384.00 42.00 46.50 52.80 60.00 68.40

Prosperidad Water Minimum 11-20 21-30 31-40 cu. Over 40
District Charge cu.m. cu. m. m. cu. m.
Residential/Govt. 149.00 15.85 18.90 22.50 26.45
Commercial - I 260.75 27.70 33.05 39.35
Commercial/Industrial 298.00 31.70 37.80 45.00 52.90
Bulk/wholesale 33.75 40.20 47.85 56.25
San Francisco Minimum 11-20 21-30 31-40 cu. 41-50 cu. 51 cu. m.
Water District Charge cu.m. cu. m. m. m. up
Residential/Govt. 151.00 16.80 18.95 21.30 23.75 26.50
Commercial/Industrial 302.00 33.60 37.90 42.60 47.50 53.00
Commercial -A 264.25 29.40 33.15 37.25 41.55 43.65
Commercial - B 226.50 25.20 28.40 31.95 35.60 39.75
Commercial - C 188.75 21.00 23.65 26.60 29.65 33.10
Bulk/wholesale 453.00 50.40 56.85 63.90 71.25 79.50
Bunawan Water Minimum 11-20 21-30 31-40 cu. over 40
District Charge cu.m. cu. m. m. cu.m.
Commercial -A 218.75 23.10 24.50 26.25 28.35
Commercial - B 187.50 19.80 21.00 22.50 24.30
Commercial - C 156.25 16.50 17.50 18.75 20.25
Buenavista Water Minimum 11-20 21-30 31-40 cu. 41-50 cu.
District Charge cu.m. cu. m. m. m.
Commercial -A 306.25 35.70 41.10 47.25 54.25
Commercial - B 262.50 30.60 35.25 40.50 46.50
Commercial - C 218.75 25.50 29.35 33.75 38.75
Bulk/wholesale 525.00 61.20 70.50 81.00 93.00
Nabunturan Water Minimum 11-20 21-30 31-40 cu. 41-50 cu.
District Charge cu.m. cu. m. m. m.
Commercial -A
Commercial - B 234.75 24.80 29.15 36.05 44.80
Commercial - C
Bulk/wholesale 469.55 49.65 58.35 72.15 89.25
Minimum 11-20 21-30 31-40 cu. 41-50 cu.
New Sibonga
Charge cu.m. cu. m. m. m.
Commercial -A
Commercial - B 144.00 15.05 19.20 23.70 29.40
Commercial - C
Bulk/wholesale
Minimum 11-20 21-30 31-40 cu. 41-50 cu.
Montevista
Charge cu.m. cu. m. m. m.
Commercial -A
Commercial - B 197.60 20.90 24.50 30.35 37.55
Commercial - C
Bulk/wholesale
7-10
(c) Initial Development Trends
Previous water studies conducted on the ARB are the basis of the succeeding discussion on
trends regarding supply and demand, including availability of water in the study areas. Among
others, data cited here shall be verified, reevaluated and validated in when a detailed assessment
of water resources shall have been conducted. Major trends examined in this section are those of
municipal water demand, industrial water demand, and a consolidated assessment to determine
overall water availability in major river systems of the ARB.
Municipal Water Demand. Municipal water demand in the ARB has been assessed in two (2)
aspects; namely, (a) possible water demand, which assumes improvements in the structure of
water supply facilities and service levels of presently served populations; and (b) potential water
demand, which assumes 100% coverage of previously unserved populations.
In demonstrating the dynamics of municipal water demand, two (2) cases were constructed;
where, (a) Case 1 assumes unit water consumption is fixed at the level of base year 2000; and (b)
Case 2 assumes that unit water consumption would increase depending on per capita GRDP.
Under Case 2, three (3) scenarios were predicted for low, medium, and high behavior of per
capita GRDP. Meanwhile, for each target year starting with 2000, a corresponding target of
service coverage ratio by city/municipal water supply was set up in such a gradual manner that
95% would be attained in each city/municipality by 2030. Forecast results are in Table 7-13.
Table 7-13 Forecasted Municipal Water Demand ARB, 2000-2020

(Unit : 1,000 cu. m)
Scenario Contents of Demand 2000 2005 2010 2020
Possible Demand(Served) ,616 7,521 4,927 5,274
Potential Demand(Unserved) 3,987 3,614 2,650 ,773
Case-1
Total Demand 3,603 1,135 7,577 4,047
Demand Sufficiency Ratio(%) 1 6 6 4
Low Potential Demand(Unserved) 3,987 4,204 7,591 0,352
(Case 2) Total Demand 3,603 2,851 5,077 4,665
Medium Potential Demand(Unserved) 3,987 4,447 4,309 1,053
High Potential Demand(Unserved) 3,987 4,713 4,930 2,141
Industrial Water Demand. In the projections, the assumption is that the water demand of
manufacturing industries in the ARB would increase correspondingly with the growth rate of the
gross value-added (GVA) of manufacturing industries in Regions XI and XIII. The resulting
demand forecasts are in Table 7-14.
Table 7-14 Forecasted Industrial Water Demand ARB, 2000-2020

(Unit : 1,000 cu.m)
Growth Scenarios 2000 2005 2010 2020
Low 1,629 2,180 3,748
Medium 1,157 1,659 2,295 4,114
High 1,746 2,513 4,941
7-11
Consolidated Demand. Potential water demand and high-scenario forecasts of municipal and
industrial water demand were summed up to arrive at total water demand of municipal and
industrial sectors as shown in Table 7-15.
Table 7-15 Water Balance (Municipal & Industrial Demand) ARB, 2005-2020
Unit: MCM
Industrial &
Municipal Water
Name of Sub Available Commercial Water Excess Water
Demand
Basin Water Demand
2005 2010 2020 2005 2010 2020 2005 2010 2020
Wawa 851.47 2.04 2.88 5.28 0.16 0.24 0.47 849.27 848.35 845.72
Gibong 473.04 5.52 7.08 12.12 0.48 0.7 1.37 467.04 465.26 459.55
Simulao 441.51 2.28 3.36 5.88 0.08 0.12 0.24 439.15 438.03 435.39
Upper Agusan 454.12 5.76 6.84 10.56 0.27 0.39 0.77 448.09 446.89 442.79
Manat 138.76 1.8 2.04 2.88 0.12 0.17 0.33 136.84 136.55 135.55
Boabo 44.15 0.84 1.32 2.28 0.05 0.07 0.13 43.26 42.76 41.74
Logum 50.46 0.96 1.44 2.64 0.03 0.05 0.09 49.47 48.97 47.73
Ihaoan 220.75 0.84 1.2 2.28 0.08 0.11 0.22 219.83 219.44 218.25
Umayam 315.36 0.48 0.72 1.32 0.01 0.02 0.03 314.87 314.62 314.01
Adgaoan 378.43 0.36 0.48 0.96 0.01 0.01 0.01 378.06 377.94 377.46
Kasilayan 378.43 0.6 0.96 1.68 0.02 0.03 0.06 377.81 377.44 376.69
Maasam 441.5 0.6 0.6 1.08 0.001 0.01 0.02 440.89 440.89 440.4
Libang 283.82 0.72 0.72 1.44 0.01 0.01 0.02 283.09 283.09 282.36
Ojot 756.86 0.72 0.96 1.8 0.01 0.01 0.01 756.13 755.89 755.05
Bugabus 145.06 2.4 3 5.64 0.02 0.1 0.19 142.64 141.96 139.23
The results show that municipal as well as industrial and commercial water demand do not exact
undue pressure on available water resources to cause water shortages in principal sub-basins of
the ARB. Water availability in the ARB therefore appears sufficient enough to satisfy demand
brought about by increases in service levels, per capita consumption, and manufacturing growth.
The trend is unlike that exhibited with irrigation demand, which in the foregoing section, is
suggested to create significant water shortages in several sub-basins at specific periods as early
as 2012. It could be further surmised that future water availability in the ARB will depend largely
on the extent by which irrigation requirements would be accommodated.
7.1.3 Flood Control
The physiography of the ARB renders it highly susceptible to f-16looding, with its mountainous
regions causing rapid runoff of heavy rainfall. The river profile of Agusan shows three (3) valleys
in its upper portion, another in midstream and the other at the river mouth. Hence, critical control
sections are naturally occurring along the river course. These channel sections are at Monkayo,
Talacogon and Las Nieves. Other than physiography, flooding in Butuan City is also related to
both drainage and tidal fluctuation. Available data show that vulnerability to flooding tends to be
high among municipalities located in the middle reach of the Agusan River and barangays
situated in downstream areas particularly Butuan City.
Existing flood control structures especially in the Upper and Middle Agusan River are shown in
Table 7-16.
Table 7-16 Flood Control Structures, ARB, 2005

Municipality Type of Structure Code Northing Easting
Maragusan Maragusan Revetment (2) 4010 811000 846360
Mabini Revetment 4011 811080 846400
Bukal Revetment 4005 831470 833879
Mawab New Sibonga Revetment 4017 836860 823460
Linda Revetment (3) 4016 837130 823570
4014 839180 824000
7-12
Municipality Type of Structure Code Northing Easting

4015 837600 823800
Nabunturan Mainit Spur Dike (3) 3004 832530 834030
3005 832420 833980
3006 832280 834000
Mainit Dike 2001 832250 834140
Manat Spur Dike (2) 3002 824620 833200
3003 824620 833300
Manat Revetment 4004 834470 833650
Nabunturan Revetment 4012 841500 827040
Nabunturan Drainage 4013 841280 827330
New Bataan New Bataan Revetment 4009 835980 843950
Bangoy Revetment 4008 839660 846070
Compostela Compostela Cut-off Channel 5003 849720 840990
Montevista Montevista Revetment (2) 4003 852790 831450
4007 853140 830040
Tapia Revetment 4002 858470 831960
Monkayo Olaycon Revetment 4001 862420 833900
Olaycon Cut-off Channel 5002 862340 833970
Olaycon Spur Dike 3001 862300 833860
Monkayo Dike 2002 866940 836630
Monkayo Revetment 4006 866880 836440
Monkayo Cut-off Channel 5001 869020 837070
Currently, there are on-going river improvement works at the Lower Agusan River under the
Lower Agusan Development Project (LADP). These consist of road dike levees and floodwalls,
cut-off channels and floodgates, dredging works, land development and social infrastructure, as
well as river improvement, and irrigation components. Such development suggests that any future
flood control strategy for the ARB and its Upper and Middle Agusan Rivers would have to pay
particular attention with the objectives of the river improvement project of the Lower Agusan.
7.1.4 Roads and Bridges
The Basin is traversed by the Maharlika Highway from Davao City to Butuan City. The national
highway is either asphalt or concrete paved in some parts but generally in good condition with
several sections undergoing rehabilitation. Over this national highway lies 59 bridges with a
combined length of 2.75km.
The major water-related transport problem in the study areas is the overtopping of the Kalaw
Bridge at Monkayo in Compostela Valley during flooding. Flooding and almost overtopping of road
sections along the Maharlika Highway is also reported in the municipalities of Sibagat, Bunawan
and Rosario in Agusan del Sur.
7.1.5 River Transport
The only operating river transport in the ARB lies between the Philippine Port Authority (PPA)
Ferry Terminal Complex and the municipality of Magallanes in Agusan del Norte. The transport
service is from 6AM and 9PM, with motorized boats departing every 25 minutes. Initially, 26
motorized watercrafts plied the river route but at present, only 16 are operational. An average
motor craft can accommodate 30 to 50 passengers, with gross tonnage ranging from 3 to 10 tons.
River port facilities catering mostly to timber industries along the Agusan River had slowed down
since the late 1980s. Common port facilities found in the study areas include temporary wharves
or private property boundaries made of dike. PPA has a concrete pipe wharf that can
accommodate barges and shallow draft vessel as it is limited by water depth at the river mouth.
7-13
Meanwhile, about 11 private port facilities are nominally operating in several areas and for various
industries. These include Pacwood (timber poles), San Miguel (bottled cargoes), Caltex
Philippines (petroleum products), Shell Petroleum (petroleum products), Escano Shipping, Ever
Wood, Philippine Match (Eurasia), Emco, Liberty, Eureka and Atlantic Gulf & Pacific Co. of
Manila, Inc. (AG&P). The administration and supervision of private port facilities are under the
PPA-Project Management Office (PMO) of Butuan.
7.1.6 Hydropower
There are no hydropower plants within the Basin although two (2) water permits have been
processed for this purpose. The first is for a proposed plant in Compostela Valley where a permit
has been issued but was not utilized as its construction did not materialize. The other is for a
hydropower project in Sumilao (Agusan del Sur), the proponent of which applied for a permit that
was not completely processed due to the absence of a project study for the undertaking.
Nevertheless, several hydropower projects have been proposed in the ARB as indicated in Table
7-17.
Table 7-17 Proposed Hydropower Projects, ARB
Proposed Drainage Dam Storage Potential Potential Potential Flood

Projects Area (km2) Height (m) Volume (MCM) Power (MW) Irrigation (ha) Storage (MCM)
Agusan No 3 348 113.5 625 38 37296 109
Simulao No 2 266 47.2 249 26 18370 83
Maganoy No. 5 1188 255 1671 326 222
Malitubog No. 2 588 49 297 22 100
Casapa 633 106 808 134 101704 194
Adgaoan No. 3 340 62 470 68 59185 169
Gibong 408 77 3905 114 92963 814
Ojot 474 93 2395 32 69037 381
Wawa 412 189 2515 99 78963 303
7.2 PROGRAMS/ PROJECTS BY KEY THEME
The projects by key theme are presented as follows:
7.2.1 Water Quality Management Program
There are two (2) major projects proposed under the Water Quality Management Program with a
total cost of PhP93.2 million as indicated in Table 7-18, while the project location is shown in
Figure 7-1.
Table 7-18 Estimated Cost of Projects in Water Quality Management Program

Estimated
No. Project Location Sub-Basin
Cost (P000)
Institutional Strengthening for Basin-wide
1 Basinwide Basinwide 12,323
Water Quality Data Management
Organic Fertilizer & Bio-Gas Production
2 Butuan City Minor 80,900
Facility
Total Water Quality Management Program 93,223
Institutional Strengthening for Basin-wide Water Quality Data Management would cost PhP12.3
million while the establishment of an Organic Fertilizer and Bio-Gas Production Facility would cost
PhP80.9 million.
7-14
The Basin-wide Water Quality Data Management Project would entail the: (i) establishment of a
basin-wide system of water quality data collection and monitoring; (ii) designation of Water Quality
Management Areas (WQMA) and non-attainment areas; (iii) strengthening of industrial effluent
monitoring and discharge permitting system; (iv) water quality data management, which includes
water quality mapping and hydrologic modelling, and (v) establishment of a public advisory
system.
Figure 7-1 Location of Projects for Water Quality Management Program,

7.2.2 Flood Management Program
There are five (5) major flood management projects proposed in this Master Plan with a total
estimated cost of PhP3.0 billion at 2006 prices (Table 7-19 and Figure 7-2). Major cost
components are the Updating and Implementation of the Upper Agusan Flood Control and
Drainage System Project, which would cost PhP2.0 billion, and the Implementation of the Butuan
City Drainage System Master Plan, amounting to PhP0.9 billion.
The Establishment of Flood Warning and Forecasting System Project (basin-wide) would involve
the development of software and installation of hardware that could be up and running within six
(6) months. This would cost PhP11.6 million. The other two (2) projects involve several studies;
namely, the Drainage System Master Plan (PhP28.0 million) and the Feasibility Study for a
Multipurpose Outlet System. The latter, aiming to increase the surcharge capacity of the Agusan
Marsh, would cost PhP22.4 million.
7-15
Table 7-19 List of Proposed Flood Management Projects

Am ount Benefit:Cost
No. Project Sub-Basin (P000 at 2006 FIRR EIRR Ratio @12%
Prices) per annum
Implementation of the Butuan City Drainage no
1 Minor 948,500 17.0% 1.3
System Master Plan revenue
Preparation of Drainage System Master Plan (one package project; cost w as

2
divided equally for allocation purposes only):
Monkayo Manat 2,801 study phase
Montevista Manat 2,801 study phase
Nabunturan Manat 2,801 study phase
Talacogon Kasilan 2,801 study phase
San Francisco Gibong 2,801 study phase
Bayugan Waw a-Andanan 2,801 study phase
R T Romualdez Minor 2,801 study phase
Esperanza Ojot 2,801 study phase
Las Nieves Minor 2,801 study phase
Magallanes Minor 2,801 study phase
Total 28,008
Feasibility Study for a Multipurpose Outlet
System to Increase Surcharge Capacity of
3 Agusan Marsh 22,418 study phase
the Agusan Marsh (Flood, Water Supply
and Irrigation)
Update and Implementation of the Upper
no
4 Agusan Flood Control and Drainage Manat 1,974,111 15.3% 1.5
revenue
System Project
Establishment of Flood Warning and system could be installed w ithin six
5 basinw ide 11,550
Forecasting System Project months
Total Flood Managem ent Program 2,984,587
Figure 7-3 Location of Projects for Flood Management Program,

7-16
7.2.3 Water Resources Development Program
Twenty five projects have been identified under the Water Resources Development Program
(Table 7-20 and Figure 7-4). The estimated total cost for all the projects is PhP2.6 billion at 2006
price levels. Ten projects estimated to cost PhP2.5 billion could be considered for implementation
while the other 15 projects would require studies that are estimated to cost a total of PhP110
million.
Table 7-20 List of Water Resources Development Projects ARB Master Plan, 2005-2006
Cost Est Benefit:

No. Project Sub-Basin (P000 at FIRR EIRR Cost Ratio
2006 Prices) at 12% Rate
Water Supply and Sanitation Projects
1 Monkayo Water Supply Project Manat 70,000 15.8% 39.8% 3.1
2 Compostela Water Supply Project Manat 85,000 15.6% 39.3% 3.0
3 Bayugan Water Supply Project Waw a-Andanan 90,000 15.9% 39.9% 3.1
4 Trento Water Supply Project Simulao 80,000 15.8% 39.6% 3.0
5 Patin-ay Water Supply Project Gibong 55,000 15.7% 39.5% 3.1
Preparation of Butuan City Sew erage
6 Minor 8,000 study phase
System Master Plan
Preparation of Agusan Marsh Water
7 Supply, Solid Waste Disposal and Agusan Marsh 8,000 study phase
Sew erage Systems Feasibility Studies
Water Supply Managem ent Project
Preparation of the Taguibo River Water
8 Taguibo 7,000 study phase
Management Plan
River Irrigation Projects (RIPs)
9 Umayam-Adgaoan RIP Umayam 330,283 capital cost
15.3% 1.4
10 Umayam-Adgaoan RIP Adgaoan 1,321,133 is subsidized
Logom-Baobo RIP
11 Logom RIP Logom 85,000 capital cost
21.6% 2.3
12 Baobo RIP Baobo 55,000 is subsidized
13 Feasibility Study (FS) of Pusilao RIP Ojot 5,000 study phase
14 FS of Manat RIP Manat 5,000 study phase
15 FS of Sulibao RIP Sulibao 5,000 study phase
16 FS of Libang RIP Libang 5,000 study phase
17 FS of Ihaoan RIP Ihaoan 5,000 study phase
18 FS of Maasam RIP Maasam 5,000 study phase
Multipurpose and Pum p Irrigation Projects (PIPs)
Feasibility Studies of Ojot River Multi-
purpose Project and Associated PIPs
19 FS of Ojot River Multipurpose Proj Ojot 10,000 study phase
capital cost
20 Sta Josefa PIP Minor 335,000 15.3% 1.0
is subsidized
21 FS of Guadalupe PIP Minor 5,000 study phase
22 FS of Las Nieves PIP Minor 5,000 study phase
23 FS of Nueva Era PIP Simulao 5,000 study phase
Water Transport
24 Butuan City Inland Port Minor 15,180 study phase
25 Agusan River Water Transport System Various 16,324 study phase
Total Water Resources Developm ent Program 2,615,920
7-17
Figure 7-4 Location of Projects for Water Resources Development Program,

7.2.4 Watershed Management Program
There are 152 projects identified under the Watershed Management Program with an aggregate
cost of PhP3.4 billion (Table 7-21). The sub-component with the largest cost share is the
reforestation of selected wooded grasslands and grasslands (80.8%). The total cost of PhP2.8
billion shall be for a total area of 127,023ha spread over 16 watersheds (Figure 7-5).
7-18
Table 7-21 List of Watershed Management Projects ARB Master Plan, 2005-2006
Estimated
No. Watershed Area (ha) % Share
Cost (P000)
Watershed Characterization & Management Planning
1 Manat 108,326 10,833 0.31%
2 Lam-awan/Minor 95,641 9,564 0.28%
3 Ihaoan 64,947 6,495 0.19%
4 Kasilayan 18,466 1,847 0.05%
5 Libang 23,601 2,360 0.07%
6 Maasam 24,655 2,466 0.07%
7 Ojot 86,691 8,669 0.25%
8 Wawa 67,151 6,715 0.19%
Total 489,477 48,948 1.42%
Watershed Reforestation
9 Taguibo 1,394 30,538 0.89%
10 Bugabos 6,372 139,591 4.05%
11 Adgawon 15,186 332,680 9.66%
12 Andanan-Wawa 23,181 507,826 14.74%
13 Gibong 8,976 196,637 5.71%
14 Ihaoan 14,284 312,920 9.08%
15 Kasilayan 3,092 67,736 1.97%
16 Libang 439 9,617 0.28%
17 Logum 3,942 86,357 2.51%
18 Maasam 1,078 23,616 0.69%
19 Ojot 9,897 216,814 6.29%
20 Simulao 1,513 33,145 0.96%
21 Umayam 3,324 72,819 2.11%
22 Minor/Lam-awan 17,100 374,610 10.87%
23 Manat 16,606 363,788 10.56%
24 Sulibao 639 13,999 0.41%
Total 127,023 2,782,693 80.76%
Watershed Agroforestation
25 Taguibo 338 1,481 0.04%
26 Adgawan 823 3,606 0.10%
27 Andanan-Wawa 811 3,553 0.10%
28 Gibong 3,799 16,643 0.48%
29 Ihaoan 1,447 6,339 0.18%
30 Kasilayan 230 1,008 0.03%
31 Libang 61 267 0.01%
32 Logom-Baobo 1,337 5,857 0.17%
33 Maasam 73 320 0.01%
34 Ojot 86 377 0.01%
35 Simulao 2,659 11,649 0.34%
36 Umayam 739 3,238 0.09%
37 Minor/Lam-awan 1,725 7,557 0.22%
38 Manat 10,518 46,079 1.34%
39 Sulibao 197 863 0.03%
Total 24,843 108,837 3.16%
7-19
Estim ated
No. W atershed Area (ha) % Share
Cost (P000)
Riverbank Stabilization
40 Taguibo 279 1,431 0.04%
41 Bugabos 629 3,227 0.09%
42 Adgawan 3,619 18,565 0.54%
43 Andanan-W awa 2,819 14,461 0.42%
44 Gibong 3,418 17,534 0.51%
45 Ihaoan 2,754 14,128 0.41%
46 Kasilayan 1,391 7,136 0.21%
47 Libang 910 4,668 0.14%
48 Logum 1,075 5,515 0.16%
49 Maasam 1,543 7,916 0.23%
50 Ojot 3,410 17,493 0.51%
51 Sim ulao 3,610 18,519 0.54%
52 Um ayam 2,679 13,743 0.40%
53 Minor/Lam -awan 8,117 41,640 1.21%
54 Manat 6,488 33,283 0.97%
55 Sulibao 589 3,022 0.09%
Total 43,330 222,283 6.45%
W atershed Protection
56 Taguibo 2,114 478 0.01%
57 Bugabos 967 219 0.01%
58 Adgawan 13,966 3,156 0.09%
59 Andanan-W awa 15,100 3,413 0.10%
60 Gibong 12,701 2,870 0.08%
61 Ihaoan 25,828 5,837 0.17%
62 Kasilayan 12,200 2,757 0.08%
63 Libang 9,755 2,205 0.06%
64 Logom -Baobo 39 9 0.00%
65 Maasam 11,676 2,639 0.08%
66 Ojot 28,246 6,384 0.19%
67 Sim ulao 29,627 6,696 0.19%
68 Um ayam 43,396 9,807 0.28%
69 Minor/Lam -awan 34,034 7,692 0.22%
70 Manat 32,774 7,407 0.21%
71 Sulibao 8,180 1,849 0.05%
Total 280,603 63,416 1.84%
Capability Building, Com m unity Organizing and
Stakeholder Developm ent
72 Adgawan 98,481 2,594 0.08%
73 Bugabos 17,055 449 0.01%
74 Gibong 92,638 2,441 0.07%
75 Ihaoan 74,635 1,966 0.06%
76 Kasilayan 37,689 993 0.03%
77 Libang 24,656 650 0.02%
78 Logum -Baobo 29,120 767 0.02%
79 Maasam 41,820 1,102 0.03%
80 Manat 175,822 4,632 0.13%
81 Minor/Lam -awan 219,244 5,776 0.17%
82 Ojot 92,419 2,435 0.07%
83 Sim ulao 97,838 2,578 0.07%
84 Sulibao 15,975 421 0.01%
85 Taguibo 7,572 199 0.01%
86 Um ayam 72,947 1,922 0.06%
87 W awa-Andanan 76,414 2,013 0.06%
Total 1,174,324 30,938 0.90%
7-20
E s tim ate d
N o. W ate rsh e d A re a (h a ) % S h are
C o st (P 000)
Livelihood G eneration
88 A dgaw an 98,481 1,000 0.03%
89 B ugabos 17,055 1,000 0.03%
90 G ibong 92,638 1,000 0.03%
91 Ihaoan 74,635 1,000 0.03%
92 K asilayan 37,689 1,000 0.03%
93 Libang 24,656 1,000 0.03%
94 Logum -B aobo 29,120 1,000 0.03%
95 M aasam 41,820 1,000 0.03%
96 M anat 175,822 1,000 0.03%
97 M inor/Lam -aw an 219,244 1,000 0.03%
98 O jot 92,419 1,000 0.03%
99 S im ulao 97,838 1,000 0.03%
100 S ulibao 15,975 1,000 0.03%
101 Taguibo 7,572 1,000 0.03%
102 U m ayam 72,947 1,000 0.03%
103 W aw a-A ndanan 76,414 1,000 0.03%
Total 1,174,324 16,000 0.46%
M onitoring and E valuation
104 A dgaw an 98,481 375 0.01%
105 B ugabos 17,055 375 0.01%
106 G ibong 92,638 375 0.01%
107 Ihaoan 74,635 375 0.01%
108 K asilayan 37,689 375 0.01%
109 Libang 24,656 375 0.01%
110 Logum -B aobo 29,120 375 0.01%
111 M aasam 41,820 375 0.01%
112 M anat 175,822 375 0.01%
113 M inor/Lam -aw an 219,244 375 0.01%
114 O jot 92,419 375 0.01%
115 S im ulao 97,838 375 0.01%
116 S ulibao 15,975 375 0.01%
117 Taguibo 7,572 375 0.01%
118 U m ayam 72,947 375 0.01%
119 W aw a-A ndanan 76,414 375 0.01%
Total 1,174,324 6,000 0.17%
P olicy and Institutional R eform s
120 A dgaw an 98,481 279 0.01%
121 B ugabos 17,055 48 0.00%
122 G ibong 92,638 262 0.01%
123 Ihaoan 74,635 211 0.01%
124 K asilayan 37,689 107 0.00%
125 Libang 24,656 70 0.00%
126 Logum -B aobo 29,120 82 0.00%
127 M aasam 41,820 118 0.00%
128 M anat 175,822 498 0.01%
129 M inor/Lam -aw an 219,244 620 0.02%
130 O jot 92,419 262 0.01%
131 S im ulao 97,838 277 0.01%
132 S ulibao 15,975 45 0.00%
133 Taguibo 7,572 21 0.00%
134 U m ayam 72,947 206 0.01%
135 W aw a-A ndanan 76,414 216 0.01%
Total 1,174,324 3,323 0.10%
7-21
Estimated
No. Watershed Area (ha) % Share
Cost (P000)
Tenurial Instrument Harmonization
136 ISF 6,504 2,277 0.07%
137 TLA 16,806 5,882 0.17%
138 TLA 16,806 5,882 0.17%
139 Watershed 8,834 3,092 0.09%
140 Watershed 6,425 2,249 0.07%
141 Watershed 803 281 0.01%
142 IFMA 18,348 6,422 0.19%
143 IFMA 18,348 6,422 0.19%
144 IFMA 18,348 6,422 0.19%
145 IFMA 18,348 6,422 0.19%
146 IFMA 18,348 6,422 0.19%
147 IFMA 36,696 12,844 0.37%
148 IFMA 18,348 6,422 0.19%
149 IFMA 36,696 12,844 0.37%
150 CBFMA 117,831 41,241 1.20%
151 CADC/CADT 65,421 22,897 0.66%
Total 422,913 148,019 4.30%
152 Boundary Conflict Resolution 15,000 0.44%
Total Watershed Management Program 3,445,457 100.00%
Figure 7-5 Location of Projects for Watershed Management Program

7-22
7.2.5 Agusan Marsh and Wildlife Sanctuary (AMWS) Management Program
Under the AMWS Management Program, two (2) major projects are proposed with an estimated
total cost of PhP48.0 million (Table 7-22 ). The areas scoped by these projects are indicated in
Figure 7-6.
Table 7-22 List of Agusan Marsh and Wildlife Sanctuary Management Projects
Estimated
No. Project
Cost (P000)
1 Formulation and Implementation of AMWS Management Plan 37,979
2 Regulated Public Access Project 10,000
Total Agusan Marsh and Wildlife Sanctuary Management Program 47,979
The Formulation and Implementation of the AMWS Management Plan is a project on updating the
existing AMWS plan prepared in 2001. The project would include a resource inventory using the
Manual for Inventory of Asian Wetlands as prescribed by Wetlands International for Ramsar-
registered wetlands of international importance.
As already mentioned, several projects from other key themes are interlinked with the AMWS
Program. Other projects proposed for the AMWS are part of other programs, such as the
Preparation of the Agusan Marsh Water Supply Project, Solid Waste Disposal and Sewerage
Systems Feasibility Studies (estimated project cost of PhP8.0 million) under the Water Resources
Management Program, and the Feasibility Study of a Multipurpose Outlet System to Increase
Surcharge Capacity of the Agusan Marsh (Flood, Water Supply and Irrigation) (estimated project
cost of PhP22.4 million) under the Flood Management Program.
7-23
Figure 7-6 Location of AMWS Management Program Projects,

7.2.6 Indigenous Peoples Development Program
The IP Development Program identified eight (8) sub-programs composed of 78 site-specific and
beneficiary-specific projects spread over nine (9) sub-basins and amounting to PhP230.0 million
(Table 7-23).
The IP ethnic groups that would benefit from the projects include the Higaon-ons, Manobos,
Mamanwas, Mandayas, Mansakas, Mangguangans and Dibawanons. The geographic spread of
these projects is in Figure 7-7.
7-24
Table 7-24 List of Indigenous Peoples Development Projects,

Estimated
No. Project Sub-Basin Ethnic Group
Cost (P000)
I CADT Processing Project
1 Mt. Mayapay Bugabos Higaon-on 2,450
2 RTR, Las Nieves, Cabadbaran Minor Higaon-on 8,750
3 Casiclan, Las Nieves Ojot Higaon-on 25,900
4 Upper Subaet, Las Nieves Ojot Manobo 3,500
5 Lydia, La Paz Adgaoan Manobo 1,050
6 Loreto Umayam Manobo 32,900
7 San Luis Kasilan Mamanwa 10,500
8 Talacogon Kasilan Manobo 1,750
9 Esperanza Ojot Manobo, Higaon-on, Mamanwa 8,750
10 Sibagat, Las Nieves Wawa-Andanan Manobo 10,500
Sub-total CADT Processing 106,050
II Preparation of ADSDPP
11 Mt. Mayapay Bugabos Higaon-on 5,000
12 RTR, Las Nieves, Cabadbaran Minor Higaon-on 5,000
13 Casiclan, Las Nieves Ojot Higaon-on 5,000
14 Upper Subaet, Las Nieves Ojot Manobo 5,000
15 Lydia, La Paz Adgaoan Manobo 5,000
16 Loreto Umayam Manobo 5,000
17 San Luis Kasilan Mamanwa 5,000
19 Esperanza Ojot Manobo, Higaon-on, Mamanwa 5,000
20 Sibagat, Las Nieves Wawa-Andanan Manobo 5,000
Maragusan, New Bataan,
21 Manat Mandaya, Mansaka 5,000
Compostela
22 Montevista Manat Mangguangan 5,000
23 Nabunturan, Mawab, Pantukan Manat Mansaka 5,000
24 Laak Ihaoan Dibawanon, Mangguangan 5,000
Sub-total ADSDPP Preparation 70,000
III Indigenous Knowledge System and Practices Research Project
25 Mt. Mayapay Bugabos Higaon-on 300
26 RTR, Las Nieves, Cabadbaran Minor Higaon-on 300
27 Casiclan, Las Nieves Ojot Higaon-on 300
28 Upper Subaet, Las Nieves Ojot Manobo 300
29 La Paz Adgaoan Manobo 300
30 Loreto Umayam Manobo 300
31 San Luis Kasilan Mamanwa 300
32 Talacogon Kasilan Manobo 300
33 Esperanza Ojot Manobo, Higaon-on, Mamanwa 300
34 Sibagat, Las Nieves Wawa-Andanan Manobo 300
35 Monkayo Manat Mansaka 300
36 Montevista Manat Mangguangan 300
37 Nabunturan Manat Mansaka 300
38 Laak Ihaoan Dibawanon, Mangguangan 300
Sub-total Knowledge System Research 4,200
7-25
Estimated
No. Project Sub-Basin Ethnic Group
Cost (P000)
IV Pilot Codification of Customary Laws
40 Cabadbaran Minor Mamanwa 300
41 Las Nieves Minor Higaon-on 300
43 Maragusan Manat Mandaya 300
44 Laak Ihaon Dibawanon 300
45 Montevista Manat Mangguangan 300
Sub-total Pilot Codification 2,100
V/46 Capability Building for IPs basinwide project leaders 3,938
VI Capability Building for NCIP & LGUs
47 CADT Conflict Resolution Caraga Region NCIP 1,125
48 CADT Conflict Resolution Compostela Valley NCIP 450
49 Research & Data Management Caraga Region NCIP 675
50 Research & Data Management Caraga Region LGUs 450
51 Research & Data Management Caraga Region COs 675
52 Research & Data Management Compostela Valley NCIP 225
53 Research & Data Management Compostela Valley LGUs 248
54 Research & Data Management Compostela Valley COs 338
Sub-total NCIP Capability Building 4,185
VII Locally-Managed Enforcement System
Remedios T. Romualdez (RTR),
56 Minor Higaon-on 500
Las Nieves, Cabadbaran
57 Upper Subaet, Las Nieves Ojot Manobo 500
59 Loreto Umayam Manobo 500
60 San Luis Kasilan Mamanwa 500
61 Talacogon Kasilan Manobo 500
62 Esperanza Ojot Manobo, Higaon-on, Mamanwa 500
63 Sibagat Wawa-Andanan Manobo 500
64 Compostela Manat Mandaya, Mansaka 500
65 Monkayo Manat Mangguangan 500
66 Maragusan Manat Mansaka 500
67 Laak Ihaon Dibawanon, Mangguangan 500
Sub-total Enforcement System 6,500
VIII Improvement of IP Agro-Fishery Production Systems
68 Babag Minor Higaon-on 3,000
69 Magallanes Minor Higaon-on 3,000
70 Las Nieves Minor Higaon-on 3,000
72 La Paz Adgaoan Manobo 3,000
73 Loreto Umayam Mamanwa 3,000
74 Bunawan Simulao Mamanwa 3,000
75 Monkayo Manat Mandaya, Mansaka 3,000
76 Maragusan Manat Mandaya, Mansaka 3,000
77 Maco Manat Mansaka 3,000
78 New Bataan Manat Dibawanon, Mangguangan 3,000
Sub-total Improvement of Production Systems 33,000
Total Indigenous Peoples Development Program 229,973
7-26
Figure 7-7 Location of Projects for Indigenous Peoples Development Program,

7.2.7 River Basin Organization Development Program
The seven (7) identified projects under the Agusan River Basin Organization Development
Program are estimated to cost PhP117.2 million (Table 7-25). The major cost items are those
directly related to the establishment of the River Basin Organization which total to P52.2 million
(Organization of Working Secretariat (P31.9 million), Organization of Interim BOT/RBO (P7.6
million) and Establishment of Databanking and GIS-Based Decision Support System(P12.7
million)).
Table 7-25 List of Agusan River Basin Organization Development Projects

Estimated Cost
No. Project
(P000)
1 Organization of Working Secretariat 31,900
2 Convening of Institutional Stakeholders Congress 6,000
Organization of Interim Board of Trustees, RBO
3 7,600
Staff and Sub-Basin Management Units
Capability Building for RBOs and Institutional
4 5,000
Stakeholders
Establishment of Databanking and GIS-Based
5 12,700
Decision Support System
6 Implementation of the Public Awareness Plan 34,000
Feasibility Study of Establishing Agro-Industrial
7 20,000
Economic Zones
Total River Basin Development Program 117,200
7-27
x Future irrigation demand would be a significant factor in maintaining positive water

balance in the Basin. Compared to municipal as well as commercial and industrial water,
satisfying the demand for irrigation water would exhaust the limits of available water
resources.
x While irrigation and domestic/commercial water demand are the principal uses of water in
the Basin, the review suggests rising demand for flood control measures considering the
vulnerability of people to flooding at midstream and downstream sections of the ARB.
However, future interventions may have to take on a complementary function in light of
structures already present in the Basin and those to be constructed. As alternative,
priorities should also be set for the rehabilitation or repair of existing structures
considering cost effectiveness and efficiency.
x For the hydropower sector, sustainability issues need careful and thorough study. This
may include the comparison of hydropower with alternative generation sources paying
particular attention on power economics and demand analysis considering the high
capital investment and gestation period of hydropower projects. The question of bed load
sedimentation and high level of seismic activity in the region should also be given
attention as these pose significant disadvantages for dams and hydropower development
in the Basin. In addition, problems on land acquisition for reservoirs and resulting
resettlement concerns should be properly addressed.
7-28
IMPACT ASSESSMENT
8.0 IMPACT ASSESSMENT

8.1 STRATEGIC ENVIRONMENTAL ASSESSMENT
The ADB Environmental Assessment Guidelines (2003) defines Strategic Environmental

Assessment (SEA) as a systematic process for evaluating and anticipating the consequences of
decisions taken prior to the project stage. The purpose is to ensure that the environmental
considerations and alternatives are addressed as early as possible and on par with economic and
social factors in policy, plan or program development.
An SEA was carried out as part of the Technical Assistance for the formulation of the Agusan
River Basin Master Plan. Based on the Technical Proposal and Inception Report for the Study
and as later confirmed by ADB, a full SEA is appropriate at this stage of formulation of a large
river basin development plan.
8.1.1 Objectives
The SEA constitutes a first step in the screening of potential environmental impacts of a wide
range of possible interventions proposed in the ARB Master Plan. The overarching aim is to avoid
any major potential adverse impact and thereby promote environmentally sound and sustainable
development.
The specific objectives of the SEA include the following:
i. To provide baseline information about the general environmental settings of the

project area;
ii. To investigate the significant beneficial and adverse impacts of the Master Plan on
the natural and human environment;
iii. To identify potential mitigation measures to minimize adverse impacts including their
mitigation costs; if any;
iv. To assess the best alternative projects with the most benefits and the least cost in
terms of social and environmental considerations; and
v. To provide basic information for formulating management andmonitoring plans.
8.1.2 Methodology
The assessment followed the procedures in conducting an SEA as laid out in the ADB
Environmental Assessment Guidelines of 2003. The procedures include the following:
i. Scoping. A series of scoping and public consultation activities were conducted in

June 2006. The scoping provided a way for the stakeholders to discuss and
agree on:
z The relevant issues and concerns attendant to the planned development

under the Master Plan;
z The perceived potential impacts of the Master Plan, which should be
addressed in the SEA;
z The scope and focus of the SEA analysis
ii. Stakeholder Participation. A wide range of basin stakeholders representing both

project implementers and resource users were allowed to meaningfully participate
in the scoping and public consultation. Other stakeholder consultations have also
taken place on various occasions in the course of the Master Plan formulation .
iii. Description of Environmental Conditions. Baseline information were collected

during fieldwork. These were used to describe the relevant physical, biological,
social and economic environment against which the impacts of the projects were
evaluated.
8-1
iv. Criteria. The criteria used to evaluate the impacts include:
z Location, type and scale of the project

z Location and environmental condition of impact areas
z Number and socio-economic conditions of people who may be affected;
z Type and importance of economic activities that may be impacted;
z The kind and status of resources that may be threatened and the values
attached to these; and,
z The intensity, duration and reversibility of the anticipated impacts
v. Identification, Prediction and Evaluation of Impacts. This SEA has employed an

Environmental Screening Checklist, drawn up for the Basin according to
international best practice. The screening checklist was used to identify, predict
and evaluate the changes over time in the natural and human environment
conditions as a result of implementing the Master Plan.
The output of the screening process was a matrix that identifies the most
significant beneficial or adverse environmental impacts of each project category,
whether direct or indirect.
The screening checklist also allowed the preliminary evaluation of the potential
cumulative impacts of the Master Plan. A cumulative impact is either the
synergistic effect on a particular area or aspect of the environment of different
projects taken collectively or the sum effect of the proposed interventions when
added to similar effects of past, on-going, and foreseeable future interventions.
vi. Integration. The SEA investigates the potential consequences of implementing

the Master Plan both on natural and human environments. It examines any direct
or indirect cause-effect relationships between the biophysical and socio-economic
impacts, taking note that an insignificant direct impact on one aspect may have
the potential to cause a significant indirect impact on the other aspect.
vii. Mitigation. The SEA includes proposals in order to reduce or control, if not
eliminate, the identified significant adverse impacts. These measures include
technical (such as the choice of location or project design), social (such as
compensation or resettlement) and other means by which to restore the
environmental conditions to pre-project levels. The aim is to ensure that none is
worse off as a consequence of the intervention.
viii. Environmental Management and Monitoring. The SEA includes an analysis of the
adequacy of institutional mechanisms for managing environmental effects of the
projects. The SEA also includes monitoring arrangements to track the progress in
actually carrying out the mitigation measures and alert decision makers to the
need for new measures to address any unforeseen or residual impacts.
ix. Tiering. The SEA report contains recommendations for the conduct of detailed
follow-up impact assessment prior to implementation of the proposals. The
appropriate project-level assessment will depend on the environmental
requirements of the funding agency and, as necessary, the impact assessment
requirements under the Philippine EIS system. For now, each of the proposed
projects was classified as Category A, B or C according to the environmental
classification of the ADB based on its potential to cause significant adverse
impacts.
8-2
8.1.3 Categories of Projects
For purposes of this SEA, the proposed interventions were classified into 15 broad project
categories; namely:
i. Strengthening of Basin-wide water quality management

ii. Organic fertilizer and bio-gas production
iii. Flood control
iv. Water supply
v. Wastewater and sewage collection and treatment projects
vi. Irrigation
vii. Multi-purpose (hydro-power-cum-irrigation)
viii. Ports development projects
ix. Forest protection and rehabilitation
x. River bank stabilization
xi. AMWS management
xii. IP development
xiii. Agusan RBO establishment
xiv. Basin-wide data collection and management
xv. Establishment of agro-industrial economic zones
Seven (7) of these categories are structural projects including organic fertilizer/bio-gas production,
flood control, water supply, sewerage, irrigation, irrigation-cum-hydropower and ports
development.
The rest of the projects are non-structural or soft measures consisting of institutional
strengthening, management planning, policy reform and data management.
8.1.4 Key Environmental Issues
The main environmental issues in the basin are interrelated. These include poor water quality,
flooding, inadequate access to domestic water supply, land and forest degradation, riverbank
erosion, ecological threats to the Agusan Marsh, poverty and lack of economic livelihood
opportunities and disenfranchisement of indigenous communities.
An overarching priority issue is poor environmental governance, which encompasses

uncoordinated planning, inadequate devolution of management functions, conflicting policies,
weak law enforcement and poor stakeholder participation. Overpopulation and inadequate
economic opportunities help perpetuate the cycle of poverty and environmental degradation,
which is exacerbated by security risk and poor access to basic social services such as education,
health and sanitation.
8.1.5 Potential Environmental Impacts
The proposed Master Plan was screened by project category for potential environmental impacts,
both beneficial and adverse, using the comprehensive checklist used for scoping major
environmental issues (Table 8-1). The main purpose of this screening process is to ensure that
these identified potential impacts and the constraints posed are taken into consideration right
through to the development planning, design and implementation process.
8-3
Table 8-1
Checklist for Screening of Potential Environmental Impacts
ARB Master Plan
PRINCIPAL COMPONENTS
1. NATURAL ENVIRONMENT
1.1 Natural Physical Environment
1.1.1 Atmosphere
(1) Air
1.1.2 Climate
(1) Rainfall
(2) Tidal Surges
(3) Storm Surges
(4) Typhoons
1.1.3 Water Resources
(1) Surface Water
1) Quantity
- Local Rainfall Flooding
- Main River Flooding
- Tidal/Sea Flooding
- Drainage
2) Quality
- Salinity (ingress from the sea)
- Pollution (mining, domestic waste and agriculture)
- Domestic Water Supply (urban and rural)
- Irrigation (iron, mine waste)
(2) Erosion (main rivers and coast)
(3) Sedimentation
(4) Accretion (in mouth of river)
(5) Groundwater
1) Availability
- Domestic Water Supply
2) Quality (natural gas, manganese, iron, arsenic)
1.1.4 Land Resources
(1) Topography
(2) Land Type
(3) Soil
(4) Type
(5) Quality
1) Chemistry (salinity? Iron?)
(6) Water logging
(7) Erosion
(8) Smothering
(9) Capability
1.2 Natural Biological Environment
1.2.1 Terrestrial Habitats
(1) Flora
(2) Fauna
1.2.2 Freshwater Habitats
(1) Flora
(2) Fauna
(3) Fish
1.2.3 Marine Habitats
(1) Flora
(2) Fauna
(3) Fish
1.2.4 Bio-diversity and Conservation
1.2.5 Sensitive Areas Marshland
1.3 Natural Risks and Hazards
1.3.1 Storms/Typhoons
1.3.2 Flood
1.3.3 Sea Level Rise
1.3.4 Seismic Activity
1.3.5 Landslides
8-4
2. HUMAN ENVIRONMENT
2.1 Social Environment
2.1.1 Political and Institutional Administration
2.1.2 Demography
2.1.3 Gender Issues
2.1.4 Inequity
2.1.5 Settlement Pattern and History
2.1.6 Land Holding, Tenure and Values
2.1.7 Indigenous People
2.1.8 Common Resource Rights
(1) Fish
(2) Fuelwood
(3) Grazing
(4) Fodder
2.1.9 Domestic Energy and Fuel
2.1.10 Domestic Water Supply
2.1.11 Sanitation
2.1.12 Human Health
(1) Waterborne Disease (Diarrhoeal, Schistosomiasis)
(2) Insect-borne Disease (Malaria)
(3) Mental Health
(4) Human Nutrition
2.1.13 Education and Literacy
2.1.14 Archaeological and Cultural Sites
2.1.15 Landscape Aesthetics
2.2 Economic Environment
2.2.1 Economic Livelihood
(1) Agriculture
(2) Homestead Production
(3) Livestock
(4) Forestry
(5) Fisheries
(6) Industry
(7) Other non-farm Wage Paid Employment
2.2.2 Infrastructure and Communications
(1) Roads
(2) Flood Protection
(3) Irrigation
(4) Navigation
(5) Energy and Power
(6) Telecommunications
2.3 Social Risks and Hazards
2.3.1 Storms/Typhoons
2.3.2 Floods
(1) Local Rainfall Flooding
(2) Main River Flooding
2.3.3 Erosion
2.3.4 Earthquakes
2.3.5 Disease
2.3.6 Pollution
2.3.7 Social Instability/Conflict
2.3.8 Economic Instability
2.3.9 Political Instability/War
3. DIRECT CONSTRUCTION IMPACTS (for specific proposed interventions)
3.1 Land Acquisition
3.2 Compensation
3.3 Resettlement
3.4 Construction Management
4. LIKELY EIA LEVEL CLASSIFICATION
4.1 ADB Categories
4.2 Philippine EIS System Categories
A master detailed matrix was prepared, with the environmental aspects on the leftmost column,
against which the impacts of each of the proposed projects across the top were evaluated. The
simplified version of this matrix showing only the most significant impacts is in Table 8-2.
8-5
Agusan River Basin Master Plan Draft Enhancement Report
Table 8-2
Simplified Screening Matrix of Environmental Impacts
SEA, ARB Master Plan
Agusan River Basin Master Plan Draft Enhancement Report
The rating system used in the matrix indicates both the beneficial and adverse nature of the impacts
(although not their magnitude). The cells representing the most significant beneficial impacts are
highlighted in green, while the most serious adverse impacts are identified in red. It also identifies
issues where no potential impacts are expected and can be discounted from the analysis at an early
stage. This is important so that scarce resources can be targeted at addressing only the issues that
really matter. Where it is possible to have simultaneous beneficial and adverse impacts the cell is
highlighted in yellow.
The impacts may be different depending upon location, resources, or social group affected. The
requirement of the planning process is to ensure that beneficial impacts are maximized and adverse
impacts minimized so that the benefits greatly outweigh the costs. However, detailed follow-up
studies may conclude that the negative impacts cannot be adequately mitigated and the proposed
intervention is environmentally unsound and should not be implemented as proposed.
Cases where there is presently insufficient data to rate the impact are also identified, along with
situations where there is considerable uncertainty because the detailed nature of the intervention has
yet to be decided.
An important use of the matrix is to identify issues which, while not causing direct impacts, pose
significant environmental constraints (and often have complex inter-related environmental linkages
with other issues) and have to be considered in intervention design.
8.1.6 Cumulative Impacts and Mitigating Measures
Table 8-3 is a simplified summary of the significant adverse impacts that were identified from the
environmental impact screening process, including proposed mitigation measures. The full discussion
of all possible significant impacts, both beneficial and adverse is in the succeeding sections. These
are presented by element projects within each of the proposed programs under the Master Plan.
8-8
Table 8-3
Summary of Significant Adverse Impacts & Mitigation Measures
8-9
8-10
Using the same screening matrix, the cumulative impacts of the projects taken together are assessed
against the aspects of the natural and human environment (Table 8-4).
Table 8-4
Simplified Screening Matrix of Cumulative Impacts
The cumulative adverse impacts of the Master Plan were evaluated using the same results in the
screening checklist. By going through an elimination process, the checklist was narrowed down
further to only its adversely significant impacts.
Cumulative impacts were identified by adding up the synergistic negative effects on a particular
environmental aspect of projects taken together. An initial evaluation of the projects potential to add
to analogous impacts vis--vis other projects in the past, present, or foreseeable future, if any, is also
attempted.
8-11
A. Air Pollution
Two (2) projects have the potential to cause air quality problems, namely organic fertilizer/biogas
production and the establishment of agro-industrial economic zones. The effects of each appear to be
local and would possibly be confined to a small air shed of limited radial range.
However, there are already a number of potentially pollutive wood and vegetable oil processing
industries in the Basin. Many of these are co-located in specific areas, e.g., Butuan City, Magallanes
and Agusan del Sur.
In particular, the proposed agro-industrial project under the Master Plan has the potential to
exacerbate cumulative air quality impacts of existing pollutive industries in the Basin. The potential
add-on effect as to further polluting water sources when air pollutants end up in the water bodies will
create potentially larger social and ecological risks. Thus, there could be possible synergisitic and
added effects together across the Basin as well as over time.
B. Water Pollution
Implementing the organic fertilizer/biogas project, flood control, irrigation, hydropower, sewerage and
agro-industrial projects together might create what could potentially become the single most adverse
impact in the Basin -- surface and ground water pollution.
At present, the degradation of water quality across the Basin has already reached an alarming level,
especially due to heavy metals, agri-chemical residuals and domestic wastes. The potential risks to
human and ecological health could increase exponentially due to the potential of these projects to
facilitate the remobilization and deposition of these hazardous pollutants in ecologically sensitive
areas such as the Agusan Marsh and Butuan Bay.
There are likely to be cumulative and increasingly significant social and economic risks due to
increased and repeated exposure to disease and pollution hazards over time. The cumulative risks
are even compounded, if added to analogous effects of past and on-going similar projects in the
Basin.
C. Habitat Degradation
The simultaneous undertaking of irrigation, multi-purpose, flood control, ports development, IP

development and agro-industrial economic zone projects will likely increase the potential to hasten
the degradation of terrestrial, aquatic and marine ecosystems.
Synergistic effects are likely to diminish already dwindling fisheries resources and bio-diversity
particularly in the Agusan Marsh and upland areas. The poor and the indigenous communities living
in these areas are likely to be more marginalized and suffer further from economic exclusion,
depletion of common resource base, inequity and impoverishment.
D. Physical Displacement
There are likely to be more people who would be physically displaced from their present places of
residence once the watershed, AMWS management and IP development projects are implemented.
While these groups might belong to the minority in the Basin, the social, economic and resource use
repercussions created by their displacement could have even more significant and longer-lasting
implications that may negate the benefits of these projects.
8-12
E. Resource Depletion
The cumulative depletion of fisheries, forest and other biological resources is likely to worsen over
time and across the Basin as an indirect effect of flood control, irrigation, multi-purpose, ports and IP
development projects carried out together.
The poor and disadvantaged groups are more likely to feel the combined adverse effects of these
projects; with their lives, socio-cultural values and economic base closely linked to the availability and
access to these resources.
F. Economic Losses
Economic losses would be more keenly felt across the Basin due to the combined effect of water
quality management, flood control, irrigation, ports, IP development and agro-industrial zone projects
as to regulatory sanctions, provision of cleaner production technologies, reduced productivity,
resettlement, loss of illegal livelihood opportunities, zoning and land use restrictions, and damage to
resources.
While many of these are likely to be short-term impacts, the cost of implementing these projects is
likely to outweigh the economic benefits unless phased delicately.
G. Construction Impacts
More serious cumulative effects will be due to potential land acquisition, compensation and
resettlement requirements of flood control and port projects that may exert even more serious social
and economic repercussions.
Add to these the direct costs due to construction impacts on natural habitats and resources.
Moreover, unless phased properly, these projects together have the potential to worsen what would
otherwise be a singular impact, say if only one port project were to be implemented.
Mitigation Measures
The following mitigation measures are among the possible solutions to eliminate, reduce or offset the
potential adverse environmental effects presently identified. However, it is recommended that more
appropriate or supplemental mitigation measures or preferred alternative development options be
considered as a result of carrying out a full-scale or more detailed impact assessment later.
A. Market-Based Instruments and Other Incentives
To reduce foreseen adverse impacts of instituting a Basin-wide water quality management system,
the possible mitigation measures would include economic incentives in the form of tax amnesty,
subsidy or other forms of market-based instruments that would encourage regulatory compliance.
Another option is for the government to put up a strategic common waste treatment facility. The latter
is now being addressed, partly by this Master Plan (through proposals for organic fertilizer/biogas
production projects and sewerage treatment facilities) and partly by on-going government
interventions in the Basin, such as the Diwalwal mines processing and waste facility.
B. Location and Design
The adverse impacts of some of the most environmentally critical projects, especially the hardware
projects (e.g., composting facility, flood control, irrigation, sewerage, multi-purpose and ports
development projects) could be mitigated by ensuring that these are properly designed and
appropriately sited, and effectively managed during construction and operation.
8-13
C. Program Complementation
Some of the mitigation measures identified will only be effective if there is complementation or
dovetailing with programs or initiatives that already exist or are being proposed within the Basin. For
example, the benefits of water supply, sewerage and irrigation projects will be more substantial if
increased pollution and health risks associated with these could be reduced further. This could be
achieved by linking up mitigation measures with a strong program on health education and sanitation
or an intensified campaign for Basin-wide adoption of organic farming, Integrated Pest Managements
(IPM) or cleaner production technologies. In particular, the potential to spread schistosomiasis is less
likely to be mitigated if there will be no intensive program to eradicate the same prior to irrigation
development.
D. Resettlement and Compensation
Where land acquisition and involuntary resettlement are inevitable as a result of project
implementation, the preparation and implementation of a resettlement and compensation plan should
be conceived as an inherent part of the project and funded accordingly. This should be considered as
early as the project preparation and feasibility stage, which is a basic requirement of the resettlement
policies of most funding multilateral donors including the World Bank and the ADB.
E. Zoning and Land Use Regulations
A suitable land use zoning strategy and more stringent land use regulations would need to be
developed to deal with physical and economic displacement as a possible consequence of
implementing flood control, irrigation, watershed, AMWS management and IP development projects.
F. Construction Methods
Effective mitigation of the risks associated with increased pollution load and remobilization of
pollutants through flood control and ports projects, for example, hinges on the employment of proper
construction methods and the provision of properly sited and designed waste disposal and treatment
facility, which should be a built-in component of these projects.
G. Institutional Mechanisms / Tenurial Instruments
In the case of forest protection and rehabilitation projects and agro-industrial zone development,
mechanisms need to be explored to integrate illegal loggers and timber poachers into the economic
mainstream, say through the issuance of appropriate tenurial instruments.
The devolution of forest protection and regulatory functions including waste management to local
multi-stakeholder governing bodies at the community level could also be a step towards thwarting
illegal activities and encouraging cleaner production mechanisms.
H. Alternative Livelihoods
Sustainable livelihood options should be explored to cushion the impacts of physical and economic
dislocation as a result of implementing the Master Plan proposals.
In the case of forest protection and rehabilitation projects, a sound communitybased forestry and
agro-forestry program, where appropriate, could be integrated into the scheme as an alternative
livelihood.
In the Marsh, there is a bounty of water hyacinth and otherwise untapped resources that may have
potential uses for handicraft making and other small-scale enterprises.
8-14
I. Alternative Development Options
A detailed follow-up assessment may prove the likelihood of impacts being beyond mitigation in
sustainable and economically feasible terms.
The proposed irrigation projects are a case in point. A significant constraint to any irrigation
development in the Basin is prohibitive pumping costs due to high cost of electricity. Likewise, the
demand for irrigation water is not that high, as rainfall is quite high and spread across the year. The
times of water demand are highly variable from year to year and difficult to predict. The financial cost
for irrigation provision is likely to be high relative to its use and economic benefit. There are already
significant sustainability problems that should be weighed against the whole economics of possible
rice importation or switching to other crops. A very thorough assessment of these issues is required
before irrigation development can even be considered.
On the other extreme, there is a possibility that residual impacts will remain and that mitigation
measures may not prove effective in addressing the adverse impacts of the projects. Worse,
monitoring during implementation of the projects may eventually prove that target benefits and
avowed objectives of the Master Plan are not being met. In any case, there may be a need in the
future to propose alternative measures or reconsider the development options, to either expand or
narrow down the choices, to ensure that optimum development is achieved over the long term.
J. Mitigating Cumulative Impacts
It would be premature to recommend possible measures to address the cumulative impacts initially
identified through this screening process. It will be more appropriate to carry this out later as part of
the full-fledged cumulative impact assessment during the next stage of project preparation.
8.1.7 Potential Benefits
An initial attempt is also made to identify potential additive effects of the Master Plan on analogous
impacts vis--vis other projects in the past, present or foreseeable future, if any. These are also
discussed in adequate detail as follows:
A. Water Quality Management Program
(i) Strengthening of Basin-Wide Water Quality Management
The primary significant benefit from implementing a Basin-wide water quality management
strengthening project is the general improvement in the quality and availability of water for multiple
uses, especially for domestic water supply. The project will be particularly beneficial to majority of
Basin residents such as riparian communities who now have to rely on unsafe sources of domestic
water supply. The project will help avert possible contamination of underground water sources and
therefore, eliminate associated health risks from disease and pollution.
There are significant potential benefits to concerned economic sectors from regulating discharge of
pollution from various sources. For industries, the switch to cleaner production technologies and
processes will significantly reduce occupational health risks in the handling of hazardous materials. It
could eventually ensure long-term sustainability of economic activities.
The reduction of pollution from targeted industries especially mining will benefit downstream users of
water for domestic supply, irrigation, aquaculture and fisheries by eliminating the potential risks to
human health and livelihood due to water contamination.
8-15
The regulation and control of agro-chemical use could significantly reduce the present potential risks
to farmers of handling concentrated hazardous chemicals. The switch to chemical-free farming has
significant potential over the long-term to sustain agricultural productivity and improve farm-level
income by tapping high-end market for organically produced goods.
There are likely to be widespread benefits across all Basin ecosystems in reducing pollution from
various sources, domestic wastes included, as to protecting freshwater and marine aquatic habitats
but more particularly in the Agusan Marsh and Butuan Bay. There are also likely to be secondary
beneficial impacts over the long term of enhancing ecosystem services for the maintenance of bio-
diversity, food supply and fisheries production.
The main short-term disadvantages of pollution control are economic, although in the longer term
these normally become positive. There may be significant economic displacement of non-compliant
industries, illegal gold processing operators, agri-chemical manufacturers/distributors, aquaculture
operators and illegal resource harvesters such small-scale miners, loggers and fishing communities.
Compliance with water quality regulations may also mean significant increase in production costs due
to the adoption of cleaner production technologies and provision of waste treatment facilities. This
may have a serious knock-on effect such as reduction in employment opportunities.
The principal disadvantage of reducing agro-chemical use is the immediate reduction in soil fertility
and its ability to produce higher short-term yields, both for food and industrial crops. Adopting organic
farming and IPM technologies may result in lower yields in the initial years of adoption. There may be
secondary negative impacts on economic livelihoods in the form of reduced farm-level incomes.
Nevertheless, savings in chemical costs will mean improvement in agricultural margins and
organically grown farm products generally command higher economic returns over the long term.
(ii) Organic Fertilizer and Bio-gas Production
The introduction of organic fertilizer cum biogas production in conjunction with an appropriate
domestic solid waste disposal and management facility such as a sanitary landfill will provide long-
term significant positive impacts in protecting surface and groundwater quality for domestic supply
and other uses. This will yield lasting benefits as to human health and wider ecological conditions.
However, the project has the potential to increase the concentration of pollutants in highly localized
areas and, along with it, the health risks associated with increased exposure. This can happen
through improper handling of hazardous wastes and leaching of pollutants into underground aquifers.
There may also be localized problems with poor air quality (odor) within the vicinity of the waste
facility. Land acquisition problems may be minimal but the attendant social issues can be complex
although highly site-specific.
Overall, there are likely to be significant benefits but care will be needed to ensure that people near
proposed landfill sites are not significantly disadvantaged.
B. Flood Management Program: Flood Control Projects
Benefits from the drainage system in Butuan and flood control structures in Upper Agusan would be
the reduction in flooding and its associated risks to lives, properties and production assets. Economic
gains can be considerable especially in the urban areas of Compostela Valley and particularly Butuan
City, the hub of economic activities in the Basin. There is likely to be significant improvement in health
conditions by eliminating the breeding places of disease vectors and averting further contamination of
domestic water supply.
Significant adverse impacts are likely to be the remobilization of domestic and industrial pollutants,
which may render Butuan Bay unsuitable for bathing or its fish resources unfit for consumption. More
serious but inevitable negative impacts are related to land acquisition, compensation and
8-16
resettlement of would-be displaced families. This may prove costly considering the number of urban
informal settlers now occupying the waterways and esteros of the City.
Proposed flood control structures in the Upper Agusan River will increase its flow velocity, which in
turn would exacerbate riverbank erosion in downstream areas and increase potential risks to human
and natural assets. The project is also likely to cause the remobilization of hazardous pollutants with
the sediments, particularly mercury and other heavy metals from upstream mining areas, especially if
intensive dredging works will be involved. The disposal and/or reuse of dredged sediment are also
likely to be a significant problem for the same reason. The domino effect could be particularly
significant in the Marsh where pollutants may further accumulate in fish and biota, and threaten the
health of consumers.
There could be considerable potential benefits to the Agusan Marsh and downstream communities if
the wetland is used as a flood retention area. Besides reducing flood and associated risks
downstream, there are likely wider impacts as to enhancing ecological integrity, protecting biodiversity
and improving productivity of the protected area, especially of fisheries resources. However, the
agricultural areas immediately upstream of the wetland and within the buffer zones are likely to
experience more frequent and deeper flooding, to the detriment of farmers and palm oil plantations.
C. Water Resources Management Program
(i) Water Supply Projects
Safe drinking water is a basic human need; ensuring its availability is probably the highest priority of
any government and should be a cornerstone of basic social development. The provision of safe
drinking water supply has very significant benefits for human health, especially in preventing the
incidence of waterborne and water related diseases. If appropriately planned it has considerable
equity and economic benefits.
In the Agusan River Basin, these benefits could be particularly significant where sources of domestic
water supply are often naturally constrained. Butuan City, the most populated part of the Basin, for
example, is located in a river delta and has to obtain its supply of quality piped in water from another
municipality. Agusan Marsh is flooded most times of the year; hence, finding a suitable underground
source remains a challenge.
There are normally no major direct negative impacts of appropriate water supply provision, except
that cost recovery and organization of operation and maintenance can be significant issues.
In the Basin context, the design of water supply facilities should take into consideration the possible
constraints and health implications posed by the presence of naturally occurring substances
(manganese, iron, arsenic, and natural gas) as well as the potential leaching into groundwater of
surface water contaminants from anthropogenic sources. There are also complex problems in urban
environments when water supply provision is improved without a commensurate expansion of
sanitation facilities. Both constraints have to be addressed early on during Master Plan
implementation.
(ii) Wastewater and Sewage Collection and Treatment Projects
The main benefit from implementing a wastewater and sewage collection and treatment project is the
reduction in pollution of surface water, particularly in Butuan City. The project will arrest any further
pollution of groundwater aquifers used for domestic water supply. There are likely to be significant
reductions in mortality and morbidity due to waterborne diseases, particularly diarrhea. There are also
likely to be significant indirect positive impacts on ecosystems, especially marine resources in Butuan
Bay.
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The most serious disadvantage of wastewater treatment is the generation of odor around the vicinity
of the treatment facility and the risks involved with the handling of treatment chemicals and disposal
of sludge.
The proposed sewerage system in Butuan City has a high potential to expose handlers and water
users to hazardous wastes that may leach out into groundwater and marine water sources. This
concern needs to be considered during project design preparation, along with the constraint posed by
the deltaic setting of Butuan City.
In the Agusan Marsh, innovative design solutions will be necessary for both water supply and
sewerage facilities. These will help preclude any possible contamination during flooding stages and,
during water-stressed months, ensure the ample supply of this critical resource.
(iii) Irrigation Projects
The intended benefits of irrigation development are increased agricultural production and reduced risk
to crop production in periods of less dependable rainfall. There can also be increased income and
employment opportunities in agriculture and possible increase in agricultural land values.
In the Basin, there appears to be a preponderance of significant adverse impacts of irrigation as

against its benefits. A notable negative consequence is the potential to increase health risks when
persistent pollutants like mercury and agri-chemical residues, as well as domestic and human wastes
diffuse and leach out to nearby domestic water sources. Again, the resulting impact of pollution
transport could be critically threatening to ecosystems in the Agusan Marsh, biodiversity and fish
resources on which IPs and most of its surrounding communities depend.
Irrigation has a high potential to spread schistosomiasis unless there is an intensive campaign to
eradicate the disease vector prior to construction. Irrigation may also significantly exacerbate
downstream drainage flooding and water logging during heavy rains. While it may improve land
values, it is likely to cause the conversion of significant portions of the buffer zone into rice paddies,
which would deprive the Marsh of its natural protection and further reduce its bio-diversity.
(iv) Multi-purpose (Hydropower-cum-Pumped Irrigation) Projects
Experience in the Basin proves that sediments and power costs are significant constraints to the
provision of irrigation water supply. In the case of Ojot and related projects, significant economic
benefits will accrue from savings in pumping costs through hydropower generation and from
significant alleviation of downstream flooding.
The other benefit of appropriate hydropower development is the production of clean energy, which is
less environmentally damaging than fossil fuel burning. Availability of affordable electricity can often
spur industrial development although this depends upon a wide range of complex factors including
comparative energy prices from other sources, which can vary greatly over time.
In addition to the adverse impacts common in all irrigation projects in the Basin, there can be added
significant negative impacts as to the disruption to fisheries and navigation along the river due to
water abstraction requirements of the hydropower facility.
Likewise, there are often conflicting water demand between base load generation and irrigation
requirements. The level of risk from the heavy bed load sedimentation in the Basin could be
extremely serious for hydropower and pumped irrigation development.
(v) Port Development Projects
The economic gains from the provision of inland port facilities to improve navigational transport to and
from Butuan City and neighboring riparian areas can be considerable.
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However, there are significant adverse impacts associated with the long-term disturbance of
freshwater and marine habitats, and the added pressure on dwindling fish stocks. Within the vicinity
of facilities, irreversible damage to mangrove resources during construction could be significant. In
addition, the navigation hazard posed by sediment accretion in the main river estuary could be a
significant constraint to the efficient operation of these facilities.
D. Watershed Management Program
(i) Forest Protection and Rehabilitation Projects
The long-term benefit of Basin-wide forest protection and forestation activities is reduction in volume
and speed of local rainfall runoff, with positive impacts as to reducing main river flooding downstream.
This should also reduce upstream bed load erosion and deposition with secondary benefits on
reductions in downstream erosion risks and sedimentation.
The most substantial benefits to ecosystems will derive from the restoration of bio-diversity and
productivity of forests with positive cascading effects on the Marsh and marine habitats. There are
also likely to be significant economic and equity benefits to the timber industry operators and
suppliers, especially with the creation of wood processing economic zones in the basin.
However, illegal loggers and timber poachers stand to lose due to economic displacement. Moreover,
the intensification of wood processing activities may lead to generation of significant pollutive wastes.
(ii) Riverbank Management Project
Intensive river corridor planting and protection will provide significant long-term and widespread
benefits on the general health of the terrestrial ecosystem. As a result, there will be significant
reduction in the risks to lives and assets by reducing land loss.
There are likely to be ecological benefits to the fish ecosystem that is in decline, partly by reducing
sediment loads that are restricting sunlight penetration and algal growth and partly by reducing the
risk from mercury-contamination especially in the Agusan Marsh and Butuan Bay. There will also be a
reduction in sand bank accretion in the main river estuary that is a hazard to navigation and economic
activity.
The principal disadvantages of riverbank erosion control are the long-term physical displacement and
economic losses to riparian communities who live in and cultivate riverbanks as well as local
industries that presently derive income from riparian vegetation and timber. The strict imposition of
easement restrictions and the prevention of land clearance for cropped agriculture along the river
corridor have implications for land use, settlement and in-migration that are very site specific.
E. AMWS Management Program
There are likely to be highly significant benefits as to enhancing the hydraulic function of the Marsh
and further reducing downstream flood risks, especially to Butuan City, by implementing an
appropriate management program for the Agusan Marshland. There are also likely to be reductions in
erosion, sedimentation and accretion downstream of the wetland area. There will be widespread
benefits to the natural environment, especially fish and vegetation communities.
Proper management of the AMWS will protect its ecological functions and values, and would be a
notably significant step in achieving the commitments required of the Philippine Government under
the Ramsar Convention and the ASEAN Peatland Management Initiative to protect wetland habitats
and its biodiversity. It will also benefit the significant number of IP and non-IP communities whose
survival depends on the natural resources of the Marsh.
8-19
The main disadvantages are likely to be borne by three (3) groups who may be physically or
economically displaced.
The first group includes people from strict protection zones, riverbanks and other areas of the Marsh
where human activity will need to be restricted, including river navigation during breeding seasons.
The second group includes kaingin farmers, river bank cultivators, illegal fishers, timber poachers,
wood gatherers, wildlife hunters and traders who depend on these resources and will lose their
economic upkeep. The third group includes farmers who presently rely on irrigation development
immediately upstream of and in the buffer zone of the Marsh whose unsound practices may need to
be regulated.
F. IP Development Program
The issuance of CADT will bestow upon the IPs tenurial security in their ancestral lands. This will
yield the most benefit in empowering them to improve their production systems, strengthen their
cultural heritage, integrate into mainstream society, participate in decision-making and obtain access
to basic social services.
On the other hand, this may adversely cause the physical, economic and political disenfranchisement
of illegitimate IP leaders, non-tenured migrants and holders of conflicting tenurial instruments in
ancestral domains. The exercise of prior rights to resources may lead to unsustainable extraction of
resources and cause significant loss of biodiversity. In particular, there may be a need to harmonize
the management prerogatives between AMWS plan and the ADSDPP in two (2) potential CADT
areas within the Marsh.
G. RBO Formation and Development Program
(i) RBO Development
The benefits of a well-managed institutional strengthening program for water resources management
could be considerable but often difficult to quantify and impossible to value.
The establishment of the ARBO will yield the most benefit as to coherent implementation of all the
components of the proposed strategy; other than improving environmental governance by providing a
venue for integrated, inter-sectoral and multi-institutional approach to the shared management of
Basin resources.
There could also be wider improvements in government administration systems outside the direct
concerns of the water sector. There could, most of all, be improved regulatory and monitoring
systems with the overall benefit of improving ecological conditions, especially surface and
groundwater quality and the Agusan wetland. The overall impact on protecting critical resource base
and ensuring sustainable use of non-critical ones cannot be overemphasized.
The major disadvantage of institutional strengthening programs is that these require quite long-term
commitments of adequate resources, including skilled personnel, modern equipment and technology.
Sustaining the financial requirements of such programs over a long term (5-10 years or indefinitely)
can be difficult, especially as the economic benefits are likely to be intangible and not immediately
realized.
(ii) Basin-Wide Data Collection and Management
A highly significant improvement in Basin-wide institutional capability to make informed management

decisions is expected from the establishment of a Data-Banking and GIS-Based Support System.
This will be especially useful in tracking the status of the resource base and the progress in achieving
environmental management objectives. Moreover, the economic gains of generating quality data as a
management tool can be translated in the avoidance of costly decisions where Basin resources are
8-20
concerned. Well-planned interventions will save on funds in the long run by maximizing benefits and
minimizing costs.
A good data collection and modeling program normally requires a minimum of five (5) years to
establish and requires skillfully trained and highly specialized staff. Finding the financial resources to
fund such operations can be difficult.
(iii) Agro-Industrial Economic Zones
The establishment of agri-industrial zones will strengthen the economic position of the Basin in
relation to the rest of Mindanao by harnessing the value adding potentials of its major agricultural,
mineral and forest products. This is expected to result to significant job generation, increase in
livelihood and income-earning opportunities and more equitable sharing of economic benefits from
resource use.
The potential adverse impacts of this proposed initiative are the generation of more land, air and
water pollutants and the resulting increase in pollution and occupational hazard risks; physical
displacement of people due to zoning; economic displacement of illegal resource harvesters and
users; increased in-migration; uncontrolled land conversion; and resulting land speculation.
8.1.8 Institutional Requirements and Environmental Monitoring
Nine (9) project categories are covered by the Philippine EIS system; namely, organic fertilizer and
biogas production, flood control, water supply, sewerage systems, irrigation, multi-purpose
hydropower-cum-irrigation, port facilities, forestry and riverbank management. These projects and will
require either a full EIA or IEE study. The Philippine EIA system has recently been strengthened to
rationalize and streamline its regulatory processes and make it more effective as a tool for
environmental planning and management.
The provision of drainage facilities in Butuan City and other municipalities is the responsibility of
respective LGUs. Flood control projects are being undertaken by the respective regional or project
management offices of the DPWH. Water supply projects and sewerage systems are being
implemented by respective water districts or LGUs. NIA is responsible for implementing irrigation
projects while the NPC takes charge of hydropower projects.
These respective implementing agencies are expected to come up with environmental management
and monitoring plans to manage the impacts of concerned projects. The DENR-EMB issues the
Environmental Compliance Certificate (ECC) and regulates environmental compliance. The
implementing agencies either institute self-monitoring or organize Multipartite Monitoring Teams
(MMT) to monitor compliance with ECC conditions and the Environmental Management Plan (EMP)
of each project.
The rest of the project categories, namely Basin-wide water quality management, AMWS
management, IP development, ARBO establishment, basin-wide data management and
establishment of agro-industrial ecozones are not covered by the EIS system and fall under Category
D. These projects will require only a Certificate of Non-Coverage (CNC). The management and
monitoring of these projects fall within the mandate of concerned government line agencies or LGUs.
The two (2) regional DENR-EMB offices in the Basin are currently responsible for water quality data
collection and management. Data collection and regulatory work are done independently of each
other. There is a need for a single institution to implement a unified water quality management system
across the Basin. WQMA governing boards are expected to perform this function under the Clean
Water Act.
8-21
The proposed ARBO would be the better repository of all water quality monitoring data across the
Basin and coordinate the tasks of the governing boards. Both would need capability enhancement to
implement Basin-wide water quality management. Technical assistance is proposed to help design
and implement a Basin-wide water quality management system. A laboratory consortium is meant to
strengthen capability in water quality testing and analysis.
Management of the AMWS is the responsibility of a multi-stakeholder body called the PAMB and the
PASu. The PAMB is chaired by the DENR-RED with membership distributed among representatives
of the concerned LGUs, PENRO, Community ENRO, civil society groups and POs. The proposed
AMWS Bill proposes to reconstitute the PAMB to enhance the participation of local chief executives
and strengthen the capability of PASu. The NCIP is the agency responsible over IP development
interventions in consultation with tribal leaders of indigenous communities. Both the management
capability of NCIP and the IP leaders, and the system of environmental governance among
communities require strengthening.
The ARBO is being proposed as the logical institutional mechanism to coordinate the management
and monitoring of proposed programs under the ARB Master Plan and thereby strengthen Basin-wide
environmental governance. The ARBO would be responsible for running the Basin-wide data banking
and GIS-based decision support system.
8.2 CONCLUSION AND RECOMMENDATION
x The Master Plan contains a whole range of possible projects. In any case, potential investors
have their own sets of minimum criteria and classification. At the same time, the Philippine
government has its own legal requirements for environmental assessment according the
Philippine Environmental Impact Statement (EIS) system. As part of the post-Master Plan
follow-up project preparation study, it will be necessary to systematically review all future
developments in the Basin that have implications for water resources management therein.
There are likely to be complex interrelated cumulative impacts and constraints, both
beneficial and adverse that would need to be investigated very carefully. The phasing of
development programs with each other would also require very careful consideration in the
detailed cumulative assessment in the next stage of project preparation.
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Master Plan for Agusan River Basin

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Master Plan for Agusan River Basin

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Technical Assistance Consultants Report

Project Number: 36540-01

Philippines: Master Plan for the Agusan River Basin

For Department of Environment and Natural Resources

MASTER PLAN FOR THE AGUSAN RIVER BASIN PROJECT

LIST OF TABLES .........................................................................................................v

LIST OF FIGURES .......................................................................................................viii

ACRONYMS and ABBREVIATIONS ...........................................................................ix

1.0 INTRODUCTION ..............................................................................................1-1

1.2 STUDY AREA.......................................................................................1-1

1.3 GOAL AND OBJECTIVES....................................................................1-1

1.4 APPROACH AND METHODOLOGY....................................................1-2

1.5 KEY ACTIVITIES..................................................................................1-2

2.0 PHYSICAL AND ENVIRONMENTAL CONDITION..........................................2-1

2.1 GEOGRAPHIC SETTING.....................................................................2-1

2.2 CLIMATE ..............................................................................................2-3

2.3 RAINFALL ............................................................................................2-5

2.4 STREAMFLOW ....................................................................................2-7

2.6 ENVIRONMENTAL SETTING ..............................................................2-9

2.6.1 Natural Physical Environment ..................................................2-10

3.0 SOCIO-ECONOMIC CONDITION ....................................................................3-1

3.1 ECONOMIC SETTING .........................................................................3-1

3.1.1 Economic Profile ......................................................................3-1

3.2 THE SOCIAL SETTING........................................................................3-10

3.2.1 Stakeholders of the Basin ........................................................3-11

4.0 REVIEW AND ASSESSMENT OF RELEVANT POLICIES AND PLANS........4-1

4.1 INTERNATIONAL ORGANIZATIONS INITIATIVES ON WATER

4.2 WATER POLICIES AND MULTI-LATERAL AGENCIES ......................4-2

4.3 NATIONAL POLICY OBJECTIVES ......................................................4-2

4.4 SECTOR POLICIES .............................................................................4-3

4.5 REGULATORY FRAMEWORK ............................................................4-4

4.6 REGIONAL AND PROVINCIAL POLICY OBJECTIVES AND

4.6.1 Caraga Region .........................................................................4-9

4.7 AGUSAN RIVER BASIN WATER POLICY...........................................4-14

4.7.1 Assessment of Policy Context ..................................................4-14

4.8 GENDER AND DEVELOPMENT..........................................................4-18

4.8.1 Gender, Age and Household Distribution .................................4-18

5.0 INSTITUTIONAL FRAMEWORK .....................................................................5-1

5.1 Institutional Participation.......................................................................5-1

5.1.1 Existing Institutional Set-up in National Water Resources

5.2 MAJOR INSTITUTIONAL IMPEDIMENTS ...........................................5-2

5.2.1 National Level...........................................................................5-2

5.3 FORMATION OF THE AGUSAN RIVER BASIN ORGANIZATION .....5-6

5.3.1 Tapping the Potentials of Existing Basin Organizations ...........5-7

5.4 FUNDING THE AGUSAN RIVER BASIN ORGANIZATION

5.4.1 Identified Funding Sources of Selected IRBM Organizations ..5-15

5.5 RBO FORMATION AND DEVELOPMENT...........................................5-21

5.5.1 Basin Governance Options ......................................................5-21

6.0 PARTICIPATORY APPROACHES AND DEVELOPMENT STRATEGIES......6-1

6.1 KEY ENVIRONMENTAL ISSUES AND STAKEHOLDER PRIORITIES.6-1

6.2 BASIN REALITIES AND KEYS TO INTEGRATION .............................6-5

6.2.1 Key Basin Realities .................................................................6-7

6.3 ARBMP DEVELOPMENT VISION,GOALS AND OBJECTIVES...........6-11

6.3.1 Development Vision .................................................................6-11

6.4 ARB DEVELOPMENT STRATEGY......................................................6-15

6.4.1 General ....................................................................................6-15

6.5 UNITY OF THE DEVELOPMENT STRATEGY ....................................6-17

6.6 FROM POLICY TO STRATEGY TO PRINCIPLES ..............................6-19

6.7 FROM POLICY TO STRATEGY TO PROJECTS.................................6-20

7.0 BASIN PROGRAMS AND PROJECTS............................................................7-1

7.1 ASSESSMENT OF BASIN WATER CONTROL STRUCTURE ............7-2

7.1.1 Irrigation Development .............................................................7-2