Sustainable Financing for ICM Programs

1. Sustainable Financing for ICM Programs Atty. Rose-Liza Eisma Osorio Executive Director Coastal Conservation and Education Foundation www.coast.ph 302 PDI Condominium, Arch. Reyes Avenue, Banilad, Cebu City, Philippines 6000

2. Integrated Coastal Management … A process by which rational decisions are made concerning the conservation and sustainable use of coastal and ocean resources and space. The process is designed to overcome the fragmentation inherent in single-sector management approaches, in the splits in jurisdiction among different levels of government, and in the land-water interface. [Cicin-Sain B, Knecht, R.]

3. Integrated Coastal Management … A broad and dynamic process that … requires the active and sustained involvement of the interested public and many stakeholders with interests in how coastal resources are allocated and conflicts are mediated. The ICM process provides a means by which concerns at local, regional and national levels are discussed and future directions are negotiated. [GESAMP (IMO/FAO/UNESCO-IOC/WMO/WHO/IAEA/UN UNEP Joint Group of Experts on the Scientific Aspects of Marine Environmental Protection]

4. The Goals of ICM • To improve the quality of life of human communities who depend on coastal resources while maintaining the biological diversity and productivity of coastal ecosystems [GESAMP; Olsen]. • To create conditions for “a sustained effort whose fundamental goal is to reform the objectives, structure and processes of governance that control how coastal resources are allocated,” the rates in which coastal resources are used, and “how conflicts among user groups are resolved.” [Olsen, Tobey and Hale]

5. The ICM Program Cycle

6. The ICM Program Cycle • Activities associated with each phase of the ICM planning process • Issue identification and baseline assessment: program preparation, secondary information gathering, field assessment/PCRA, database and profile development, prioritization of issues and analysis of causes • ICM Plan preparation and adoption: establishment of management bodies, definition of goals and objectives, development of ICM strategies and action plan • Action Plan and Project Implementation: ICM plan implementation, legislation and regulation, coastal law enforcement, revenue generation, annual program preparation and budgeting • Monitoring and Evaluation: M&E, refinement of management plan • IEC: information management, information, education and communication

7. A diagrammatic representation of the COASTAL ZONE in the Philippines Source: Land Management Bureau

8. National policy and legal framework Phase 1 Phase 2 Phase 3 Issue identification CRM plan Action plan and and baseline preparation project assessment and adoption implementation Phase 5 Local legislation Information management, and Coastal law enforcement Education and outreach Regulation Annual program External Revenue preparation and revenue generation budgeting sources Phase 4 Monitoring and evaluation Multi-sectoral and inter-LGU participation and resource sharing CRM planning process adapted for Philippine local government

9. Philippine ICM timeline 1932-1975 1976-1990 1991-2004 Laws support fisheries development Open access regime Central Control Coastal environmental laws enacted Central control Devolution of authority ICM framework with benchmark system Co-management Legal regimes Donor ICM projects Bay-wide projects National ICM implementation Community-based marine protected areas ICM planning in Lingayen Gulf None Implementation

10. Broad lessons from donor and government ICM projects: • Participation at all levels a prerequisite for ICM • Integrated planning process brings together the divergent efforts of government, non- government and others • Good information and baseline assessments that evolve with the planning process are prerequisites to good plans and actions • Political will prerequisite to start and sustain ICM • Need to integrate resource valuation and CB analysis

11. 14000 Coral reef 12000 Wetland Total incremental benefit 10000 Full benefits of management after 5 years Costs of management 8000 US$ Thousand 6000 4000 2000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Cost/benefit analysis helps convince LGUs about the value of ICM Accrued incremental benefits compared to costs of management from the sustainable use of Olango Island resources; shows increasing net annual revenues

12. Two major forces influenced development of ICM • Series of donor-assisted government and non-government programs have provided a foundation • The legal and policy framework for coastal management has been established • 1991 Local Government Code • 1998 Fisheries Code • Executive Order 533 • Devolution of primary responsibility and roles for ICM to local governments, NGOs and academe

13. LGU Mandates for ICM • ICM as a basic service of municipal/city government units • Planning • Protection • Regulatory and Revenue generation • Enforcement • Legislation • Intergovernmental relations • Relations with POs and NGOs • Extension and technical assistance

14. LGU Mandates for ICM • Special Role of the Province • Provide CRM as a basic service to municipalities/cities through technical assistance, training and information management • Strengthen and harmonize local policies • Evaluate and validate municipal/city CRM Plans • Serve as a broker/catalyst to link projects and programs with the needs of coastal municipalities/cities • Promote ICM

15. ICM Institutions of Concern • National Government • Environment • Fisheries • Local Government • Coast Guard • Police • Navy • Regional Development Council • Collaborators • Donor projects • Universities • Private sector • Non-government organizations • Academe • Province • Governor • Vice-governor • Planning • Agriculture • Environment • Development Council • Municipality • Mayor • Vice-Mayor • Planning • Agriculture • Environment • Fisheries and Aquatic Resources Management Council • Development Council • Barangay • Captain • Council • FARMC • Bantay Dagat/ Fish Warden • People’s organization

16. Encouraging trends • ICM is replacing the emphasis on resource development and extraction • Local governments are assuming more responsibility for and allocating resources vs past dependence on national government • National agencies redefining their roles to provide TA to local government vs taking lead in ICM • Universities, NGOs and donors working effectively with local government in multi-sector manner

18. INVESTMENTS for ICM • From multi-lateral and bi-lateral donor agencies • Grants program for site-specific ICM activities such as planning, research, MPA management, monitoring and evaluation, etc. • Technical and logistical support for NGOs, LGUs, and partners

19. ICM INVESTMENTS • From the national government • Organizational strengthening • Protection and management of declared protected areas (e.g. NIPAS) • Policy and enforcement support • Conflict resolution • Linkaging, and building partnerships • Technical and logistical support for LGUs • Data collection and analysis, recommendations, • Information dissemination • Policy advocacy

20. ICM INVESTMENTS • From the private sector (businesses, resort operators, etc.) • Conservation/protection of MPAs • Ecotourism, mariculture, etc. capital inputs • Processing plants and marketing • Information campaigns • Enforcement assistance, coordination • Corporate Social Responsibility (CSR) which include poverty alleviation • Organizational systems and structures, as needed

21. ICM INVESTMENTS • From civil society groups • Training and capacity building of communities • Livelihood assistance • Advocacy, awareness campaigns • Biodiversity Conservation activities

22. ICM INVESTMENTS • From academic institutions • Research and training activities • Technical assistance • Information and education, advocacy campaigns • Biodiversity conservation activities

23. ICM INVESTMENTS • From Local Government Units • Resource assessments • Creating and operationalizing ENROs or ICM Sections in existing MAOs • Enactment of ordinances • Adoption of plans • Establishment and maintenance of marine sanctuaries • Coastal law enforcement • Organizing and training • Information-education, advocacy campaigns • Database management • Conflict resolutions • Setting up of monitoring and evaluation systems.

24. ICM INVESTMENTS • From local fisherfolk communities • MPA management • Local enforcement and reporting system • Small scale processing centers and marketing • Public awareness, enforcement, coordination, and community relations • Organizational systems and structures

25. Investments (capital) Input ICM Output Benefits (Sustainable Financing) ICM Investment Flow

26. SUSTAINABLE FUNDING SOURCES FOR LGUs Local taxes, fees, licenses and charges

27. TAXES, FEES, LICENSES & CHARGES • Each LGU are mandated to exercise its power to create its own sources of revenue and to levy taxes, fees, and charges consistent with the basic policy of local autonomy • Such taxes, fees and charges shall accrue exclusively to the LGUs • The power to impose a tax, fee or charge or to generate revenue shall be exercised by the sanggunian (legislative council) of the LGU concerned thru an ORDINANCE.

28. TAXES, FEES, LICENSES & CHARGES • Fishery rentals, fees and charges (LGC): • Fishery privileges to erect fish corrals and oyster, mussel or other aquatic beds • Bangus fry concessions • Operation of fishing vessels of 3GT or less

29. TAXES, FEES, LICENSES & CHARGES • Fishery rentals, fees and charges: • Operation of small and medium-scale fishing vessels within 10.1 to 15 km area of the municipal waters when allowed thru an ordinance • Operation of pearl farms; and • Auxiliary invoices for transfer of fish and fishery products • License for municipal fishing gear or for registration of fishers • Licenses and taxes on income derived from sustainable use of resources in the multiple use zones such as concessions fees from appropriate businesses

30. ZONING MUNICIPAL WATER USE

31. TAXES, FEES, LICENSES & CHARGES • Taxes on sand, gravel and other quarry sources • The proceeds of the tax on sand, gravel, and other quarry resources shall be distributed as follows: • Province (30%) • Component City of Municipality where the sand, gravel, and other quarry resources are extracted (30%) • Barangay where sand, gravel, and other quarry resources are extracted (40%)

32. SUSTAINABLE FUNDING SOURCES FOR LGUs Internal Revenue Allotment (IRA) – 20% Development Fund

33. INTERNAL REVENUE ALLOTMENT (IRA) • IRA is based on land area (25%), population (50%) and equal sharing (25%) as provided in Section 285 of the LGC • It shall be mandatory for LGUs to set aside in its annual budget amounting to no less than 20% of its IRA for the year as appropriation for local development projects which include ICM programs

34. Increasing LGU Budget for ICM Average CRM budget allocated by local government units In 20 municipalities in Cebu and Siquijor assisted by CCEF since 2004

35. SUSTAINABLE FUNDING SOURCES FOR LGUs Share in the proceeds of national wealth, in particular instances.

36. SHARE IN THE PROCEEDS OF NATIONAL WEALTH • LGUs can receive about 40% of the national revenue as their equitable share in the proceeds derived from the utilization and development of national wealth within their respective territories • Some instances are geothermal energy, hydro-electric power, and the like • This includes sharing the same with the inhabitants by way of direct benefits

37. SUSTAINABLE FUNDING SOURCES FOR LGUs Permits and user fees for use of municipal waters or to access a MPA

38. PERMITS AND USER FEES • Fees for management, utilization, and exploitation of coastal resources • MPA entrance fees and snorkeling/diving fees • License to operate tourist boats • Licenses and taxes on livelihood opportunities from tourism and related economic activities associated with the MPA

39. PERMITS AND USER FEES

40. User’s fee income from Gilutongan Island

41. SUSTAINABLE FUNDING SOURCES FOR LGUs Fines and penalties for environmental violations and damages

42. FEES IMPOSED ON VIOLATORS OF FISHERIES AND RELATED LAWS • Pursuant to a municipal ordinance that outlines the fishery regulations with appropriate fines and penalties • Expenses for maintenance and operation of the guardhouse, patrol boat, and others • Incentives for bantay dagat, volunteers, etc. such as insurance policies, equipment, and honoraria

43. SUSTAINABLE FUNDING SOURCES FOR LGUs Benefits arising from MPA Networks in the context of Ecosystem-Based Fisheries Management

44. BENEFITS ARISING FROM MPA NETWORKS • “MPA networks” can enhance fisheries management and biodiversity conservation beyond what individual MPAs can achieve alone (Palumbi 2004) • Inter-LGU coordination of efforts in managing and protecting their respective MPAs • Cost sharing among LGUs for ecosystem management activities such as law enforcement, management planning, monitoring and evaluation

45. The Cost of Implementing a Sustainable ICM Program To achieve the estimated annual budgetary requirements for ICM programs, approximately P1 – 1.3 million annually is needed to begin and maintain the process. (White and Cruz-Trinidad 1998)

46. ANNUAL COST REQUIREMENTS • The bulk of investment costs is accounted for by boat purchase, an office and some capital equipment (vehicles, computer, GPS, etc.) • Most of the recurring cost is accounted for by staff costs while the rest are small budget items such as meetings, trainings and maintenance of equipment • Possible cost-sharing with other LGUs (like in the case of the boat) and performance of regular LGU functions such as public consultations and hearings can significantly bring down the costs.

47. OTHER FUNDING SOURCES FOR LGUs Financial and technical inputs of private sector, NGOs, and other donor agencies

48. GENERATION OF REVENUES SERVES TO: • Set tangible and easily measurable values on municipal water use zones and the resources of the coastal zone • Provide the community with an obvious economic incentive to protect and manage their coastal waters and resources • Regulate and limit the extraction of resources • Generate funds for the continued implementation of ICM

49. Benefits of a Sustainable ICM Program • Improving management of coastal resources while rehabilitating degraded coastal ecosystems • Improved capacities of people especially local coastal communities • Increased awareness among key agencies and stakeholders • Increasing supply of goods (fisheries) and services (recreation, ecotourism, etc) from coastal resources leading to food security and a sustainable ICM Program

50. In Conclusion • Local government units (municipalities and cities) are primarily responsible for the management of municipal waters, thus, are capable of support an ICM program with available and sustainable funding sources. • With the strict mandate to establish MPAs in at least 15% of their municipal waters, local governments must play a larger role in the MPA management process, including sustainable financing. • Benefits are derived from implementing ICM; it can result in sustainable financing of ICM activities.