Taming the Resource Curse: Understanding the Philippine Framework for Extraction; A presentation by Atty. Grizelda Mayo-Anda for the Seminar-Workshop and Media Fellowship on Covering the Extractive Industries: Digging Out Stories that Matter
1. Taming the Resource Curse:
Understanding the Philippine
Development Framework
by: Atty. Grizelda Mayo-Anda
Founding Executive Director
Environmental Legal Assistance Center, Inc. (ELAC)
2. Policies on Governance
• Constitution (Declaration of Policies and State
Principles, Bill of Rights, Social Justice)
• Philippine Development Plan (PDP)
• Philippine Agenda 21
• Climate Change Act (CCA)
• National Disaster Risk Reduction and
Management Act (NDRRMA)
• Philippine Environmental Impact Statement
System (EIS, PD 1586)
3. Policies on Governance
• Indigenous Peoples’ Rights Act (IPRA, RA
8371)
• NIPAS (RA 7586)
• Community-Based Forest Management
Strategy (EO 263)
• Local Government Code (LGC, RA 7160)
• Strategic Environmental Plan for Palawan (RA
7611)
4. Policies on Conservation
• Philippine Constitution (State Principles)
• PD 705, Forestry Code, as amended by EO 277
and RA 7161
• RA 7586, National Integrated Protected Areas
System (NIPAS) law
• RA 7611, Strategic Environmental Plan for
Palawan (SEP)
5. Policies on Conservation
• RA 7160, Local Government Code
• RA 9147, Wildlife Resources Conservation Act
• Caves Resources Conservation law
• EO 23 (Log Ban)
• EO 26 (National Greening Program)
6. Policies on Social Justice and
Benefit Sharing
• IPRA law (RA 8371)
• PD 705, Forestry Code and its amendments
(eg. RA 7161); Tenure Instruments
• LGC (RA 7160)
• NIPAS law (RA 7586)
• RA 9147 (Wildlife Act)
8. • The Philippines has laws and policies on
climate change, conserve biodiversity and
protected areas and promote renewable
energy.
• The Climate Change Act of 2009 (Republic
Act No. 9729) mentions climate justice as a
basis for its principles and objectives.
• National Climate Change Action Plan
(NCCAP) for 2011 to 2028 provides for
strategic priorities, outcomes and
activities.
9. Strategic Priority
• Ecosystem Resilience and
Environmental Stability
• a key activity: implementation of a
moratorium on polluting and
extractive industries in protected
areas, key biodiversity areas and
other environmentally critical areas.
10. Philippines’ Reliance on Coal Power
• 17 coal-fired power plants (on-grid and off-
grid)
• 25 eyed for construction until 2020
• rapid increase of coal operating contracts
(COCs) issued by the government
(source: Philippine Movement for Climate Justice or
PMCJ)
13. Institutions and Agencies
• DENR – lead national agency mandated to
look into environmental concerns
• Special government agencies: Laguna Lake
Development Authority, Pollution
Adjudication Board, Land Transportation and
Franchising Regulatory Board, Protected Area
Management Boards, Palawan Council for
Sustainable Development
• Local Government Units
14. Enforcement of Environmental Rights
• State power to grant licenses
– Withholding licenses and/or registrations where
the corporation has violated the environmental
laws and failed to protect and care for the
environment (Ysmael vs. Deputy Executive
Secretary, Oct. 1990)
• State power to issue restraining orders and/or
injunctions (LLDA vs. CA, PAB vs. CA)
• Heads or officers of corporations may be held
criminally liable for negligence in their
operations and violations of environmental
laws (Mustang Lumber vs. CA)
15. Enforcement of Environmental Rights
• Local government units may issue ordinances
protecting the environment (furtherance of
the right to a healthful ecology was sustained
in Tano vs. Socrates, 1997, and Social Justice
Society, et al. vs. Atienza, Jr., 2007)
• Legislature’s enactment of laws to protect the
environment, and regulate projects and
activities of industries to protect the
environment and promote health (Province of
Rizal vs. Executive Secretary, 2005)
17. Tanbarking refers to the removal of the bark (skin) of
“ceriops tangal” mangroves. The bark (also called
cascalotes) are smuggled to Zamboanga or Malaysia,
powderized and then used for dyeing cloth.
19. MENU OF OPTIONS
• LEGAL REMEDIES
– Supreme Court Rules on the Prosecution of
Environmental Cases
• POLICY REFORM
– Local Legislation
– National Legislation
• ENGAGEMENTS and CONSTITUENCY BUILDING
– Building partnerships with civil society (academe,
religious, NGOs, POs) and private sector
20. Supreme Court’s Perspective
• Rules of Procedure for Environmental Cases is a
response to the long felt need for more specific
rules that can sufficiently address the procedural
concerns peculiar to environmental cases.
• The Rules will serve as significant catalyst in
support of sweeping and far-reaching reforms in
environmental litigation and protection.
• The Rules are landmark rules - the first of its kind
in the world.
• Primary constitutional basis: Article 2, Section 16
(the right to a healthful and balanced ecology)
and Article 15 (the right to health)
21. Objectives
1. Protect and advance the constitutional right of the
people to a balanced and healthful ecology
2. Provide a simple, speedy and inexpensive
procedure for the enforcement of environmental
rights and duties
3. Introduce and adopt innovations and best practices
ensuring effective enforcement of remedies and
redress for violations of environmental laws
4. Enable courts to monitor and exact compliance with
orders and judgments in environmental cases
22. Highlights of the Rules
(1)Citizen Suits
(2)Consent Decree
(3)Environmental Protection Order
(4)Writ of Kalikasan
(5)Writ of Continuing Mandamus
(6)Strategic Lawsuits against Public Participation
(SLAPP)
(7)Precautionary Principle
24. BIODIVERSITY
Wealth of species, ecosystems
and ecological processes that
make our living planet what it is
(Slide/Photo credit: Conservation International)
50. BIRDS
268 species
576 species
PHILIPPINES
195 (34%) endemics
70 threatenedPhil. endemics found in
Palawan
24
Number of endemics
found ONLY in Palawan
16
Number of threatened
species found in
Palawan
11
Number of threatened
endemic species found
in Palawan
8
PALAWAN
51. (A) Irena puella tweeddalei, (B) Orthotomus sericeus, (C) Cyornis lempreiri, (D)Prionochilus plateni,
(E) Anthreptes malaccensis, (F) Ficedula hyperythra rara, (G) Hypothymis azurea azurea, (H) Arachnothera
longirostra dilutior, (I) Copsychus niger, (J) Aplonis panayensis and (K) Pitta sordida palawanensis.
A B DC
G
I
FE H
J K
53. MAMMALS
62 species
204 species
PHILIPPINES
PALAWAN
111(54%) endemics
50 threatened
Phil. endemics found in
Palawan
19
Number of endemics found
ONLY in Palawan
16
Number of threatened
species found in Palawan
7
Number of threatened
endemic species found in
Palawan
6
54. (A) Macroglossus minimus, (B)Cynopterus brachyotis, (C) Megaderma spasma, (D) Rhinolphus virgo, (E) Eonycteris spelaea, (F)
Hylopetes nigripes, (G) Maxomys panglima adult male, (H) Rousettus amplexicaudatus, and (I) Maxomys panglima
juvenile.
A
D
C
F
E
GH
B
I
56. Island Ecosystems
• Unique, Fragile and Vulnerable
• Distinction:
– Evolution of flora and fauna has taken
place in relative isolation
– Endemism and rich biodiversity
• Many remote islands have some of the most unique flora
in the world; some have species of plants and animals
that are not found anywhere else, which have evolved in
a specialized way, sheltered from the fierce competition
that species face on mainland.
(http://www.eionet.europa.eu/gemet/concept)
57. • almost 1.5 million has. (land
area)
• pop. 1,000,000 (approx)
• 53 % forest cover (PCSDS)
•60+% live below the poverty line
(PPDO; NSO)
•30% of Philippines’ mangrove
cover
•40% of country’s coral reef cover
•40% of Philippine endemics
•2 World Heritage Sites (Tubbataha
Reefs, PPSRNP)
•Most Number of Protected Areas
in the Philippines (17 PAs)
58. 15 lakes,
42 ponds,
44 waterfalls,
72 natural
springs,
9 mineral
springs,
28 principal
rivers,
43 streams
and 165
creeks which
are potential
sources of
water for
household
and irrigation
use
60. 44,500 hectares of mangroves which have some 28
species of the total 31 species found in the country
(CI, 2007)
61. Palawan as Island Ecosystem
• “Palawan’s forests support a unique and highly
diverse flora and fauna…Many of Palawan’s fauna are
unique and are considered rare, threatened or
endangered.”
– With few botanical expeditions in the past, many botanists
feel that there are more undiscovered species of plants.
– Such diversity serve as basis for declaring Palawan as a
“Game Refuge and Bird Sanctuary” in 1967, as Mangrove
Reserve in 1981 and as part of UNESCO’s “Man and
Biosphere Reserve”.
• “Last Frontier” description signifies abundant and
untapped resources, relatively unravaged by
resource overexploitation.
(Source: Strategic Environmental Plan for Palawan, Towards Sustainable
Development, Prepared by the Palawan Integrated Area Development
Project Office with the assistance of Hunting Technical Services Limited
England in association with the Orient Integrated Development
Consultants, Inc., Philippines and Sir Mac Donald and Partners, England)
62. Palawan as an Island Ecosystem
• “Palawan is composed of a long main island lying in a
northeast to southwest axis and surrounding it are
clusters of lesser islands…..The main island has a tall
steep mountain spine running down its length
fringed by narrow coastal plans protected from
storm waves by fringing coral reefs and mangrove
swamps. Although seemingly lush and bountiful, the
environment of Palawan is fragile and its topsoils are
relatively thin, poor and prone to erosion.”
(Source: Strategic Environmental Plan for Palawan, Towards Sustainable
Development, Prepared by the Palawan Integrated Area Development Project
Office with the assistance of Hunting Technical Services Limited England in
association with the Orient Integrated Development Consultants, Inc., Philippines
and Sir Mac Donald and Partners, England)
63.
64. Island Ecosystem
• Physiography and Soils
– Landscape is dominated by mountain and foothills which
cover about 940,450 gectares or 82% of the total area.
– Foothill and mountain landscapes are characterized by soils
of variable depth, more often quite deep, and with
excessive external drainage and high erodibility.
– Its steep topography will render wide areas prone to
erosion should their forest cover be removed.
– The narrow shape of the mainland and the smallness of
surrounding islands, will mean that erosion on the upper
slopes will immediately and directly silt the coastal areas
(Source: Strategic Environmental Plan for Palawan, Towards Sustainable
Development, Prepared by the Palawan Integrated Area Development
Project Office with the assistance of Hunting Technical Services Limited
England in association with the Orient Integrated Development
Consultants, Inc., Philippines and Sir Mac Donald and Partners, England)
65. Zones under the
Strategic
Environmental
Plan (SEP) for
Palawan (RA
7611)
(Environmentally
Critical Areas
Network or ECAN)
Core Zone
Multiple-Use Zone
Restricted Use Area
Controlled Use Area
Buffer
Zone
Traditional Use Area
Core Zone
Transition/Buffer Area
Sustainable/General Use Area
Multiple
use Zone
Credit/Source: PCSD
66. Some Threats to our Biodiversity
• Forest Destruction (logging, conversion to plantations
and agriculture)
• Depletion of marine resources (mangrove destruction,
overfishing, illegal fishing)
• Mining and Quarrying
• Roads and other Large Infrastructure development
• Oil exploration; utilization of coal and other fossil fuels
for development of energy/power
• Tourism development (island selling, land grabbing,
illegal logging)
• Wildlife hunting and smuggling
94. The Malampaya Project
• Philippine’s only natural gas offshore project
• Natural gas fed to power generators produce max
capacity of 3,000 MW, supplying over half of
Luzon, the country’s largest region
• Operated as Service Contract 38, led by Shell,
Chevron, Philippine National Oil Company (PNOC)
• Yields over P12 billion annually in royalty shares
for the national government (In 2012 and 2013,
royalty shares reached $1B or P40B annually)
95. Legal Framework on Natural Wealth
Sharing
• Local Government Code of Philippines
provides 60-40 sharing on royalty between
National Government (NG) and Local
Government Units (LGU)
• NG denies Palawan share (Camago natural gas
field located 80 kilometers offshore Palawan)
• Supreme Court still to rule on territorial
jurisdiction issue
98. Sharing Agreement
• Interim sharing scheme between NG and LGU not
subjected to public scrutiny and transparency
• Initial release of P3.9 billion to Palawan in 2008,
exercised by key political leaders
• Disposition of fund did not follow the general
provision of law (80% must be spent in energy-
related projects benefitting local populations)
• Royalty fund become huge political pork barrel
for powerful politicians
99. How Malampaya Was Misused
• Political leaders determined projects
and manipulated bidding rules to
favor certain public works contractors
• Ghost and overpriced projects
• Favoritism of project contractors
• Share spent by national government
unaccounted for
100. “It is clear from the testimonies especially
of Department of Public Works and
Higways (DPWH) Secretary Singson during
these hearings that there was massive
corruption of Malampaya funds.”
- Sen. Teofisto Guingona III
Chair, Senate Blue Ribbon Committee
January 2013
101. “Why most of these funds went to
infrastructure projects instead of being
used to alleviate the energy problem
begs for an honest answer. Is it
because this is where kickbacks are
made?”
- Bishop Pedro Arigo, testimony during the
Senate Blue Ribbon Hearing, January 2013
104. Areas of Concern
• Accountability of government agencies
• Governance of natural wealth revenues
(Transparency and Participation of Civil
Society groups; Monitoring of Royalty Funds)
• Gross abuse on established rules on
government contracts
105. Civil Society Policy Advocacy
• Full transparency through effective safety
mechanisms
• De-politization of royalty as “pork barrel”
• Congressional oversight of royalty money;
special law
• Prosecution of criminal and administrative
cases against officials behind Malampaya
corruption
106. Insight
• Our numerous laws have not prevented the
continuing degradation of our natural
resources…..and the overall degradation of
the state of environment in the Philippines.
• Weak environmental law enforcement is a
continuing problem.
• Governance is part of the problem.
108. Environmental Governance
• Environmental governance comprises the rules,
practice, policies, and institutions that shape
how humans interact with the environment.
(UNEP)
• “Environmental governance means the role of
government in managing the inter-relationships
between the various subsystems in nature, such
as those within and among different species and
ecosystems, including the economic, social and
cultural subsystems.” (former DENR Secretary Victor O.
Ramos, 2001)
109. Framework
• Environmental Governance =
Environmental laws + Implementation
mechanisms + Accountability regimes
+ Institutional Arrangements
(Adopted from Scott Fulton, General Counsel of the United States
Environmental Protection Agency, and Antonio Benjamin, Justice
to the Supreme Court of Brazil, in their Working Draft on “Effective
National Environmental Governance – A Key to Sustainable
Development”)
110. Core Precepts as Basis for Effective
Environmental Governance
1. Environmental laws should be clear, even
handed and implementable.
2. Environmental information must be shared with
the public.
3. Affected stakeholders should be afforded the
opportunities to participate in environmental
decision making.
4. Environmental decision makers, both public and
private, should be accountable for their
decisions.
111. Core Precepts as Basis for Effective
Environmental Governance
5. Roles and lines of authority for environmental
protection should be clear, coordinated and
designed to produce efficient and non-
duplicative program delivery.
6. Affected stakeholders should have access to
fair and responsive dispute resolution
procedures.
7. Graft and corruption in environmental
program delivery must be actively prevented.
112. Synergy across stakeholders
Government/State
Community/Civil
Society
Industry/Private
Sector
Citizens/civil society can
help in capacity building
efforts; Support law
enforcement
efforts and accountability
mechanisms.
Private
sector can
provide
technical
assistance in
developing
green and
clean
technology.
Government can
strengthen multi-
sectoral programs;
give incentives
and recognition to
civil society and
private sector.
Civil society and
industry can work
towards
developing best
practices and
standards.
Guiding Principles on Business and
Human Rights (Ruggie Principles)
113. Indicators of Sound
Environmental Governance
Transparency : Extent to which the general public
has current, complete and reliable information
about decisions and actions taken by a government
unit or public agency
Accountability: Answerability of state officials,
public employees and private sector to their
constituents for policies, actions and use of funds
Participation: Degree that the general public,
especially key stakeholders and marginalized groups
have access and opportunities to influence the
decision or action of a government or public agency
114. Transparency, Accountability and Participation (TAP) as
indicators of Sound Environmental Governance
Transparency: “The extent to which the general
public has current, complete and reliable
information about decisions and actions taken
by a government unit or public agency”.
Transparency in practice:
Posting of plans/zoning maps, ordinances, and
proceedings in public bulletin boards.
Periodic publication of performance audit reports,
financial statements, reports on license/permit
issuances, results of transactions/bidding.
IEC on local legislations enacted.
115. Accountability
“The degree to which the officials and staff
of a government unit or of an agency is held
responsible for their decisions and actions
and for the performance of their staff and
offices….Answerability by state officials,
public employees, and private sector to their
constituents for policies, actions, and use of
funds”
Examples of accountability in practice:
Clear definition of roles and responsibilities
Holding periodic public expenditures review
Clear sanctions and incentives
Periodic conduct of performance audit
Periodic assessment of policies
116. Participation
“The degree that the general public, especially
key stakeholders and marginalized groups have
access and opportunities to influence the decision or
action of a government or public agency.
Examples of participatory decision-making in
action:
Consensus-building; establishment of conflict resolution
mechanisms.
Public consultations/hearings prior to decision-making/
legitimization of plans/issuance of ordinances
Multi-sectoral representation in committees, working groups,
management councils, enforcement groups.
Participatory Monitoring and Evaluation (M & E); community
feedback system.
118. LOCAL GOVERNMENT CODE
–Concretizes the constitutional policy on
government decentralization and
democratization
–Provides for the devolution of some
environmental and natural resource management
functions from the Department of Environment
and Natural Resources (DENR) to the Local
Government Units (LGUs)
–In the area of coastal resource management, the
LGC gives primary management responsibilities
to local government units.
–Introduction of consultation mechanism in
governance (Sections 2[c], 26 and 27, LGC)
119. Local Government Code
Section 2. xxx (c) It is likewise the policy of
the State to require all national agencies and
offices to conduct periodic consultations
with appropriate local government units,
non-governmental and people's
organizations, and other concerned sectors
of the community before any project or
program is implemented in their respective
jurisdictions. xxx
120. Local Government Code
Section 26. Duty of National Government Agencies in the
Maintenance of Ecological Balance. - It shall be the duty
of every national agency or government-owned or -
controlled corporation authorizing or involved in the
planning and implementation of any project or program
that may cause pollution, climatic change, depletion of
non-renewable resources, loss of crop land, rangeland, or
forest cover, and extinction of animal or plant species, to
consult with the local government units,
nongovernmental organizations, and other sectors
concerned and explain the goals and objectives of the
project or program, its impact upon the people and the
community in terms of environmental or ecological
balance, and the measures that will be undertaken to
prevent or minimize the adverse effects thereof.
121. Local Government Code
Section 27. Prior Consultations Required.- No
project or program shall be implemented by
government authorities unless the consultations
mentioned in Sections 2 (c) and 26 hereof are
complied with, and prior approval of the
sanggunian concerned is obtained: Provided,
That occupants in areas where such projects are
to be implemented shall not be evicted unless
appropriate relocation sites have been provided,
in accordance with the provisions of the
Constitution.
122. Local Government Code
– Greater fiscal autonomy through various powers
to levy certain taxes, fees or charges
– People’s direct participation in the planning and
implementation of resource management plans
– Obliges national agencies or government-owned
or controlled corporations to consult with the
local government units, non-governmental
organizations and other sectors concerned
– Tano, et al. vs. Socrates, et al. (GR 110249, Aug 21,
1997) – emphasized the general welfare clause of
the LGC
123. Local Government Code
“Every local government unit shall exercise the powers expressly granted,
those necessarily implied therefrom, as well as powers necessary,
appropriate or incidental for its efficient and effective governance, and those
which are essential to the promotion of the general welfare. Within their
respective territorial jurisdictions, local government units shall ensure and
support, among other things, the preservation and enrichment of culture,
promote health and safety, enhance the right of the people to a balanced
ecology, encourage and support the development of appropriate and self-
reliant, scientific and technological capabilities, improve public morals,
enhance economic prosperity and social justice, promote full employment
among their residents, maintain peace and order and preserve the comfort
and convenience of their inhabitants.” (Section 16, RA 7160)
124. Police Power of LGUs
• Police power is the power to prescribe regulations to promote
health, morals, peace, education, good, order or safety and general
welfare of the people. The police power of a municipal corporation
is broad.
• “It extends to all the great public needs, and, in a broad sense,
includes all legislation and almost every function of the municipal
government. It covers a wide scope of subjects, and, while it is
especially occupied with whatever affects the peace, security,
health, morals and general welfare of the community, it is not
limited thereto, but is broadened to deal with conditions which
exists so as to bring out of them the greatest welfare of the people
by promoting public convenience or general prosperity.” (Binay vs.
Domingo, 204 SCRA 508, 1991)
125. Enforcement of Environmental Rights
• Local government units may issue ordinances
protecting the environment (furtherance of the
right to a healthful ecology was sustained in Tano
vs. Socrates, 1997, and Social Justice Society, et
al. vs. Atienza, Jr., 2007)
• Legislature’s enactment of laws to protect the
environment, and regulate projects and activities
of industries to protect the environment and
promote health (Province of Rizal vs. Executive
Secretary, 2005)
126. Mandate of Local Officials
• Local Government Code (RA 7160)
– Policy Making and Regulation
– Environmental Protection and Conservation
– Land and Resource Use
– Enforcement
– Education and Mobilization
• PD 1160 (Deputization of Barangay Officials as
Pollution Control and Environmental Protection
Officers)
129. National legal framework
• LGU has primary jurisdiction in the
management, conservation, utilization,
protection, development, and disposition over
fishery and aquatic resources (Amended
Fisheries Code)
• LGUs are empowered to enact appropriate
local ordinances for these purposes, and
enforce all fishery laws and regulations within
the municipal waters (RA 7160)
131. Devolved Functions to LGUs
MUNICIPALITY
• Implementation of community-based forestry
projects which include integrated social
forestry programs and similar projects;
management and control of communal forests
with an area not exceeding fifty (50) square
kilometres; establishment of tree parks,
greenbelts, and similar forest development
projects (Section 17[2], LGC)
132. Devolved Functions to LGUs
PROVINCE
• Enforcement of forestry laws limited to
community-based forestry projects, pollution
control law, small-scale mining law, and other
laws on the protection of the environment;
and mini-hydroelectric projects for local
purposes (Section 17[3], LGC)
133. Forests and forestlands (FFL)
as LGU assets
• Headwaters of watersheds
• Source of livelihood for upland settlers
• Source of raw materials for forest-based
industries
• Provide the genetic pool for advancement of
medicine and agriculture
• Major role in reducing adverse impacts of
climate change hazards
134. GOOD PRACTICE ON ENVIRONMENTAL
GOVERNANCE
GOVERNANCE-ORIENTED WATERSHED ESTABLISHMENT
(slide credit: Bien Dolom, USAID consultant)
135. TAP Practices during Watershed
Establishment
Step TAP Practices
1. Data and Map
Collection
o Community orientation on PA objectives and activities
(T, P)
o Stakeholder analysis (P)
o Multisectoral participation (P)
o Due diligence in sourcing maps/data (A)
o Proper documentationof data/info sources (A)
o Community validation of data and maps (T, P)
2. SituationalAnalysis o Multisectoral participation (P)
o Joint analysis of data and issues (T, P)
o Community validation of findings (T, P)
136. TAP Practices during PA Establishment
Step TAP Practices
3. Participatory
Planning
o Multisectoral participation (P)
o Consensus buildingon criteria (T, A, P)
o Joint analysis of data (T, P)
oCommunity validation of proposals (T, P)
4. Plan Preparation o Inclusion in the plan of: clearly defined organizational
responsibilities (LGU, DENR, NCIP, IP communities,
migrant farmers, others); IEC support; multi-sectoral
participation in policy formulation, planning, monitoring
and enforcement (T, A, P), etc.
o Inclusion of implementation action plan and budget
requirements (A)
5. Legitimization o Public hearings (T, P)
o Discussions on the plan at SB (T, P)
o SB Resolution committing to include budget in
investment plan (A)
o IEC on legitimized plan (T)
140. Protecting our Environment and
Conserving our Natural Resources is a
Responsibility.
“Only when the last tree has died,
the last river has been poisoned
and the last fish has been caught,
only then will man realize that money cannot be eaten”
--- from a native Indian (photo credit: Conservation International)