Republic of the Philippines

Department of Environment and Natural Resources

LAGUNA LAKE DEVELOPMENT AUTHORITY

Taytay, Rizal

Resolution No. 410

Series of 2011

APPROVING RATIONALIZED GUIDELINES FOR THE ACCESS, AVAILMENT, UTILIZATION AND RELEASE OF THE 35% FISH PEN FEE SHARE OF LAKESHORE LOCAL GOVERNMENT UNITS IN THE LAGUNA DE BAY REGION

WHEREAS, Section 1 of Republic Act 4850 (1966) as amended by Presidential Decree 813 (1978) and further amended by Executive Order 927 (1983) states that it is the declared policy of the government to promote and accelerate the development and balanced growth of the Laguna Lake area and the surrounding provinces, cities, towns within the context of the national and regional plans and policies for social and economic development and to carry out the development of the Laguna Lake region with due regard and adequate provisions for environmental management and control, preservation of the quality of human life and ecological systems, and the prevention of undue ecological disturbances, environmental deterioration and pollution;

WHEREAS, Section 4 of Republic Act 4850 also asserts that for purposes of effectively regulating and monitoring activities in Laguna de Bay, the Authority shall have exclusive jurisdiction to issue permits and clearances for the use of the lake waters for any project or activity in or affecting the said lake including navigation, construction, and operation of fish pens, fish enclosures, fish corals and the like, and to impose necessary safeguards for lake quality control and management and to collect necessary fees for said activities and projects provided that the fees collected for fisheries may be shared between the Authority and other government agencies;

WHEREAS, Section 3 of Executive Order 927 stipulates that within three years after the implementation of the Laguna Lake Zoning and Management Plan (ZOMAP), the sharing of fish pen fees shall be 35% for lakeshore local government units, 5% will go to the Project Development Fund (PDF) and the remaining 60% shall be retained by the LLDA;

WHEREAS, previous LLDA Board issuances relative to the 35% fish pen fee share of lakeshore local government units were limited to establishing the percentage allocation of such fish pen fees and identifying the intended beneficiaries thereto but failed to address how and for what specific programs, projects and activities such funds were to be utilized. For this reason, monitoring the use of such fish pen fees, establishing a transparent system of accountability for the utilization of the same as well as maximizing the potential of utilizing such funds to contribute to the attainment of the LLDA developmental mandate have not been realized; 

WHEREAS, to ensure that the use of such fish pen fee shares of lakeshore local government units are in accordance with the Laguna de Bay Master Plan and truly contributory to the attainment of the LLDA mandate of promoting the balanced growth of the region while maintaining the ecological integrity of the lake and its watershed and improving the quality of life of the constituents of the Laguna de Bay basin, there is a need to establish a more comprehensive, rationalized and transparent system of accessing, availing, utilizing and releasing the 35% fish pen fee shares of lakeshore local government units. Such a system is made more meaningful and relevant in the context of the Aquino administration’s thrusts toward forging genuine partnership and transparent collaboration between and among the LLDA and various stakeholders’ groups as a way of ensuring the sustainable management of Laguna de Bay and its resources;

NOW, THEREFORE, foregoing premises considered, BE IT RESOLVED, AS IT IS HEREBY RESOLVED, to institutionalize a new system for fish pen fee sharing and approve the adoption of the following guidelines and protocols governing the access, availment, utilization and release of the 35% fish pen fee shares accruing to lakeshore local government units.

SECTION 1. Title. These guidelines shall be known and cited as the “Implementing Guidelines for the Access, Availment, Utilization and Release of the 35% Fish Pen Fee Share of Lakeshore Local Government Units”.

SECTION 2. Statement of Policy. It is the policy of the LLDA to pursue the creation of conditions, mechanisms and structures that would mainstream the participation and involvement of various stakeholders’ groups in the Laguna de Bay watershed in the task of environmental resource management. As such, the LLDA will take every opportunity to partner with various stakeholders’ groups and sectors in ensuring the sound environmental governance and management of the lake and its watersheds.

SECTION 3. Scope and Coverage. These guidelines shall govern the access, process of availment, manner of release and allowable utilization of the 35% of fish pen fees collected annually and accruing to lakeshore local government units as mandated specifically in Section 3 of Executive Order 927 Series of 1983.

SECTION 4. Definition of Terms. The following terms, abbreviations, phrases, as used in these guidelines, shall have the following meaning; 

1. Authority or LLDA refers to the Laguna Lake Development Authority 

2. Lakeshore LGU refers to the various barangays, municipalities, cities and provinces constituting the layers of local governance that abut or are located adjacent to Laguna de Bay and the Seven Crater Lakes. 

3. FARMC refers to the Fisheries and Aquatic Resources Management Councils that were created by the LLDA in all barangays, municipalities, cities and provinces abutting Laguna de Bay and the Seven Crater Lakes pursuant to pertinent provisions of the Philippine Fisheries Code of 1998 (RA 8550). The various FARMCs assist the Authority in implementing environmental and fishery laws, rules and regulations in the Laguna de Bay Region. 

4. River Councils refer to the various community-based non-profit and cause oriented civil society organizations that were created as a result of the implementation by LLDA of a River Rehabilitation Program. The river councils act as partners of the LLDA in the protection, conservation, management and development of the 24 sub-basins of the larger Laguna de Bay watershed. 

5. Laguna de Bay Watershed refers to that geographical area of land surrounding Laguna de Bay and whose metes and bounds are determined hydraulically such that the flow of water is towards the lake, a common receiving body of water with a common outlet, the Napindan Channel.  

6. LISCOP Project refers to the Laguna de Bay Institutional Strengthening and Community Participation Project, an environmental initiative supported by the World Bank and the Government of the Netherlands with the LLDA as the implementing agency. 

7. Fishpen refers to an enclosure made up of nets and bamboo anchored in the lake water bottom enclosing a given lake area five (5) hectares and above for purposes of culturing various species of fish. 

8. Project Cycle refers to the process of project development, inception, appraisal and approval, implementation, monitoring, evaluation, completion and turn-over.

SECTION 5. Financial Management and Fund Administration. The LLDA shall be the custodian and administrator of the 35% fish pen fee share of lakeshore local government units. Such fund shall be deposited in a government depository bank and shall be managed and held in trust for the intended beneficiaries in an account that shall be known as the Laguna de Bay Local Government Fund (LOGOFUND).

The LOGOFUND shall be used exclusively by the intended beneficiaries for the implementation of various eligible projects and activities subject to stipulations under Section 6 and other provisions of these guidelines. The exact amounts, manner of release, actual utilization as well as monitoring of the utilization of the same shall be in accordance with the financial management protocols specified in pertinent provisions of these guidelines and with established government accounting and auditing rules and regulations.

Administration of the LOGOFUND is subject to Commission on Audit Rules and Regulations and to the scrutiny of the Internal Audit Division of the LLDA.

SECTION 6. Eligibility Criteria. Consistent with the over-all objectives and thrusts of the LLDA, all projects and activities that will be funded by the 35% fish pen fee share of lakeshore LGUs should conform with the following eligibility criteria:

1. Only proposed projects and activities that are consistent with the Laguna de Bay Master Plan and address environmental and social issues and concerns and submitted by lakeshore LGUs and/or civil society and peoples organizations duly accredited by the LLDA and whose creation resulted from the implementation by the LLDA of environmental management programs (FARMCs, River Councils and/or Watershed Management Councils) and whose primary functions/advocacies have to do with a pressing local governance concern, shall be eligible for funding, provided that for project proposals submitted by FARMCs, River Councils and/or Watershed Management Councils, the endorsement of the project by the concerned lakeshore LGUs is required.

2. Proposed projects and activities should contribute to an improvement in the environmental quality of the lake and its watershed or an improvement in the quality of life of its constituents.

3. Proposed projects and activities that promote partnership, collaboration and co-management approach between and among lakeshore LGUs, FARMCs and River Councils and Watershed Management Councils, shall be afforded preferential treatment in the appraisal and approval process.

4. Proposed projects and activities should conform with environmental and social safeguards framework developed under the World Bank funded LISCOP Project.

5. Project implementation should not exceed six (6) months reckoned from the date of approval of the proposed project or activity.

SECTION  7.  Allocation Protocols. Fund allocation shall be based and determined largely on the technical merits and viability, environmental soundness, financial/economic feasibility, social acceptability, sustainability and overall potential beneficial impacts of the projects that will be submitted for funding. The following allocation protocols shall be adhered to:

1. Meritorious projects that have been appraised and evaluated based on strict and objective evaluation criteria, protocols and procedures (that will be fully elaborated in an Operations Manual that will be developed and formulated by the LLDA specifically for the LOGOFUND) will be prioritized in the allocation of such fund.

2. For each project cycle (annually), eligible proponents can submit only one project proposal.

3. As used in these guidelines, the phrase “lakeshore LGUs” refers to the various barangays, municipalities, cities and provinces constituting the layers of local governance that abut or are located adjacent to Laguna de Bay and the Seven Crater Lakes. For purposes of these guidelines however, only lakeshore provinces, municipalities and cities may submit proposals for possible funding under the LOGOFUND.

SECTION 8. Types of Funded Projects and Activities. Only the following types of projects and activities are eligible for funding from the 35% fish pen fee share of lakeshore LGUs:

1. Development Projects

1. River protection and erosion control

2. Establishment of eco-parks

3. Small water impounding projects

4. Communal/Village scale irrigation systems

5. Fish ports and jetties

6. River and lake embankments

7. Flood control

8. Establishment of fish sanctuaries

2. Environmental Enhancement Projects

1. Development and formulation of Municipal Environment Codes and other local environmental legislation and ordinances

2. Simple solid waste management facilities and equipment

• MRF establishment

• Composting equipment and systems (vermi-composting, windrows, bioreactors, shredders, plastic oven densifier and molders, compactors, etc.)

• Dump trucks

3. Simple sanitation and sewerage projects

• Biogas systems

• Wastewater Treatment Facilities (i.e. Constructed Wetlands)

4. Lake and river clean-up and water lily clearing operations

3. Livelihood Projects

1. Cottage industries and handicraft production (i.e. bamboo, water hyacinth and other indigenous materials)

2. Livestock and poultry production

3. Aquaculture and ornamental fish production

4. Fingerlings Production

5. Skills training and capacity building

6. Integrated farming systems

4. Reforestation and Watershed Management Projects

1. Agro-forest and bamboo nursery and plantation establishment

2. Improvement of forest cover projects

3. Vegineering

4. Community-based Forest Management

5. Riparian management (i.e. establishment of Putat belts in the lakeshore areas)

5. Health Related Projects and Activities

1. Village scale water supply systems (i.e. deep or shallow wells development)

2. Medical and dental missions

3. Establishment of medicinal plant gardens

4. Provision of medical supplies and equipment to Rural Health Units

SECTION 9. Flow Chart and Documentary Checklist per Type of Project. To avail of the benefits resulting from the 35% fish pen fee share of lakeshore LGUs, the following flow chart and documentary checklist are hereby adopted.

Figure 1. Flow Chart of activities for the availment of the 35% fish pen fee share of lakeshore LGUs

SECTION 10. Project Cycle. The Project Cycle refers to the process of project development, inception, appraisal and approval, implementation, monitoring, evaluation, completion and turn-over. For purposes of these guidelines, the project cycle for the LOGOFUND shall have a duration of 12 months or one year which shall commence with the submission of proposals on or before August 30 of every calendar year.

SECTION 11. Project Development and Appraisal. To facilitate the process of project development, the Community Development Division (CDD) is designated as the unit of the LLDA that shall render technical assistance to lakeshore LGUs/proponents in the development and formulation of project concepts and proposals as well as facilitate the project implementation process. 

All proponents/LGUs shall be required to create a counterpart Project Management Team (PMT) for the development and implementation of the proposed projects. The Project Development, Management and Evaluation Division (PDMED) is designated as the unit that will appraise and evaluate proposed projects for technical and financial feasibility.

The Resource Management and Development Department (RMDD) is hereby designated as the unit that will develop an Operations Manual that will elaborate in detail the appropriate Project Development and Appraisal procedures including accessing, utilization, and fund release, reportorial requirements, technical and financial audit protocols.   

SECTION 12. Project Implementation. To cover project-specific implementation arrangements and protocols, a Memorandum of Agreement (MOA) shall be consummated between and among concerned parties. Said MOA shall also cover responsibilities and accountabilities of each contracting party including percentage of fund releases per tranche.

SECTION 13. Manner of Release of Funds and Monitoring of Fund Utilization. Local Government Units/Proponents that pass the technical and financial appraisal procedures for proposed projects are eligible for project financing and automatically become beneficiaries of the 35% fish pen fee share of lakeshore LGUs.

Exact amounts that will be released to eligible proponents shall be based on actual budgetary requirements of proposed projects. Project proponents who, by virtue of their proposals having passed the appraisal and approval processes and procedures, become recipients of such funds automatically become accountable for all monies disbursed to their care.

All releases shall be made on a per accomplishment basis (in tranches) subject to technical and financial audit that will be conducted by a composite team of LLDA personnel that will be created for this purpose. Fund transfer shall be in the form of a check to be deposited in a project account (with at least two signatories) the opening of which by the proponent is a prerequisite for all fund releases.

In the interest of transparency and judicious utilization of such public funds, beneficiaries are required to maintain the appropriate books of accounts for the entire financing package that will be received from said funds. Beneficiaries shall also comply with all government accounting and auditing procedures and shall submit the requisite audited financial and liquidation reports.

SECTION 14. Project Completion, Turn-over and Documentation. Upon completion of the project, proponent is required to submit the project completion report subject to verification of the concerned LLDA unit. Certificate of completion shall be issued by the proponent including full documentation of all project activities. Submission of the project completion and documentation reports is a prerequisite for the formal turn-over of the project to the proponents/LGUs.

SECTION 15. Reportorial Requirements. All completed projects and accomplishments funded under this facility shall be publicly disclosed by the LLDA in all pertinent media and avenues.

SECTION 16. Repealing Clause. All previous issuances inconsistent with these policy guidelines are hereby repealed, modified or amended accordingly.

SECTION 17. Effectivity. These policy guidelines shall take effect upon approval by the LLDA Board of Directors subject to pertinent provisions of the publication law.

APPROVED on March 24, 2011 at the OSEC Conference Room, DENR Building, Visayas Avenue, Quezon City.