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PROJECT INFORMATION DOCUMENT (PID)
CONCEPT STAGE
Project Name
Region
Sector
Project ID
GEF Focal Area
Borrower(s)
Implementing Agency
Report No.: AB3135
PH - CLIMATE CHANGE ADAPTATION
EAST ASIA AND PACIFIC
General agriculture, fishing and forestry sector (50%);Sub-national
government administration (35%);Flood protection (15%)
P101076
Multi-focal area
GOVERNMENT OF THE PHILIPPINES
Government of the Philippines
Philippines
Environment Category
Date PID Prepared
Estimated Date of
Appraisal Authorization
Estimated Date of Board
Approval
Department of Environment and Natural Resources
Visayas Avenue, Diliman
Philippines
Tel: (632) 929-6626
[ ] A [X] B [ ] C [ ] FI [ ] TBD (to be determined)
May 17, 2007
September 18, 2008
December 30, 2008
1. Key development issues and rationale for Bank involvement
The Philippines is widely known as one of the countries that is most exposed to natural hazards,
including typhoons, floods, landslides, droughts, volcanoes, earthquakes and tsunamis. Over the past
decades, these hazards have on average resulted in average financial losses of around USD$300
million annually (not including the costs of deaths, injuries and indirect losses) and claimed about
850 lives per year (WB/NDCC, 2004). The large impacts of natural disasters also relate to the
country’s vulnerability, which is closely linked to poverty and environmental management.
Urbanization and lack of land-tenure are driving many poor to move into high-risk areas. In rural
areas, agricultural production, the key economic activity for the poor, is strongly affected by natural
disasters. Once a disaster strikes, it throws people further back into poverty, and forces them to rely
on coping mechanisms, such as withdrawal of children from school, that decrease their long-term
chances for a better life.
A new risk is now exacerbating the challenges facing the Philippines: global climate change. In
recent years, scientists have confirmed that climate change is already underway, and can largely be
attributed to emissions of greenhouse gases. Analyses of meteorological and sea level data for the
Philippines over the past century roughly match global trends. Since around 1970, the average
temperature has risen by more than half a degree, and there has been a significant increase in the
number of hot days and nights, as well as a decrease in the number of cold nights and cold days. On
the average, the country has also become drier, and in some areas there has been a significant
decrease in the number of rain days [Manton et al., 2001]. Sea levels have also been rising, probably
partly also due to local subsidence (particularly in the Manila area) and partly due to global sea level
rise [Hulme and Sheard, 1999]. The Philippines is expected to face changes in rainfall patterns, and
substantial sea level rise. These risks particularly affect economic development and poverty
reduction through loss of productity in agriculture and natural resources. For instance, the 1982-83
and 1997-98 El Niño events, which caused a large drop in the volume of agricultural production,
also contributed to the sharpest falls in GDP in the past decades [World Bank/NDCC 2004].
Several typhoons have caused damages of the order of 1% of GDP (e.g. in 1984, 1988 and 1990),
and 4% of agricultural production (e.g. in 1990 and 1996; Amadore, 2005b).
Rationale for Bank involvement: The World Bank is an important partner of the Government
of the Philippines in the areas of agriculture and natural resources development, crucial sectors in
the objective to alleviate poverty among the country’s rural population. The proposed Bank-GEF
intervention would be consistent with the CAS goal to create and strengthen an enabling
institutional environment to mainstream Environment and Natural Resource Management issues
in the economic growth, development and poverty reduction processes in the Philippines. In
addition, the World Bank has supported the Philippines government to raise awareness of the
importance of natural hazard risk reduction (e.g. World Bank/NDCC, 2004). The increasing risks
due to climate change are likely to severely affect the Philippines, particularly through its
impacts on natural hazards. These impacts will be particularly felt in the productive sectors
mentioned above, not only on the expected outcomes and impacts in these sectors, but also on
the broad strategies for poverty alleviation and economic development in the Philippines. This
exposure in key sectors highlights the Bank’s interest to engage in this subject; but more
importantly presents an opportunity to address the rising risks in the context of ongoing regular
development investments. This mainstreaming approach is a key cornerstone of the proposed
project, which also fits well into both the Bank’s strategy on these issues (e.g. Burton and Van
Aalst, 2004), as well as the emerging international approach to adaptation to climate change, as
expressed, for instance, in the UNFCCC (e.g. UNFCCC, 2005).
2. Proposed objective(s)
The key objective of the proposed Philippines: Climate Change Adaptation Project is to develop and
demonstrate the systematic diagnosis of climate-related problems and the design of cost-effective
adaptation measures, while integrating climate risk awareness and responsiveness into economic and
operational planning, particularly in agriculture and natural resources management. The project
would aim to reduce the negative impacts of the increasing risks due to climate change on poverty
alleviation and economic development, particularly in agriculture and natural resources management,
and through enhanced interagency coordination with respect to climate change adaptation and
natural hazard risk management. The proposed project, which is envisaged as the first phase of a
long-term adaptation program by the Government of the Philippines, is expected to have the
following four building blocks: (i) improve coordination of adaptation policy by DENR; (ii)
implement climate risk reduction in key productive sectors; (iii) strengthen proactive disaster
management within the NDCC; and (iv) enhance provision of scientific information for climate risk
management.
Project phasing: The proposed project is proposed for multi-phased financing:
a) The first phase, proposed to cost about $5 million will have the key aim of establishing the
institutional set-up best suited for guiding country and sector responsive adaptation activities
to reduce the country’s vulnerability to associated risks; develop country specific solutions to
adaptation risk management; and develop reliable climate risk information.
b) The second phase will aim to scale up best practices and lessons learnt in the first phase; and
more generally cause climate change and disaster risk assessment and awareness in the key
development sectors of the country; while expanding investments to all major sectors of the
Philippines. The costs of this longer term phase would be determined at a later stage.
3. Preliminary description
The components are designed to address new climate risks in specific productive sectors as well as
generate benefits by alleviating barriers to development caused by the effects of climate change.
Although the activities to enhance climate risk management in these sectors may generate some
global benefits (for instance in relation to natural resources management of valuable ecosystems),
the benefits of the proposed project’s activities will primarily be local, for instance in agriculture or
water resources.
Component 1: Adaptation policy and institutions: Component 1 would aim to improve
coordination of adaptation policy by the Department of Environment and Natural Resources
(DENR). GEF support would be used to revisit the institutional arrangements for climate change,
including: (i) strengthening the IACCC’s work on adaptation; and (ii) reviewing the institutional
arrangements for climate change adaptation within DENR.
Component 2: Implement climate risk management in key productive sectors to make
investment activities more resilient to climate risks by incorporating appropriate climate risk
management in the activities’ design and implementation. The component would finance the
following activities: (i) review of current practices and institutional arrangements for the use of
climate risk information within DA, NIA, and DENR; (ii) enhancement of climate risk management
in the context of the specific activities and investments within these departments, in order to build
experience, demonstrate the value of climate risk management, and generate best practices.
Component 3: Strengthen proactive disaster risk management within the National Disaster
Coordinating Council (NDCC). The component would support the: (i) enhancement of NDCC’s
capacity in disaster risk reduction; and (ii) incorporate climate change in NDCC risk analyses used
for disaster risk reduction, particularly at the regional and local government levels.
Component 4: Enhance provision of scientific information for climate risk management. The
component would: (i) strengthen PAGASA’s capacity to deliver appropriate climate information
products to various end users; (ii) include climate risk information in a standardized hazard and risk
mapping system; (iii) build on existing capacity in non-governmental scientific institutes, including at
University of the Philippines and the Manila Observatory; and (iv) strengthen the weather insurance
institutional and operational aspects.
Component 5: Program Management and Support. This component would support project
management and coordination of implementation activities. Examples of activities to be financed
are: (i) th key sectoral departments involved and the IACCC, with assistance from NEDA, would
organize close monitoring and evaluation of applications of climate risk management, in order to
extract best practices and lessons learned; share tools and methodologies; and particularly to
demonstrate the costs and benefits of climate risk management; and (ii) relevant information would
be made accessible in a national virtual knowledge base on climate risk management.
Safeguard policies that might apply: There are project activities that may pose potential
negative environmental and social impacts if not addressed in the design and implementation.
These activities are related to the investment part of the project, in particular the activities linked
to climate proofing of small scale infrastructure, implementation of NRM activities and activities
that relate to changing cropping patterns to take into account changing climate. However, these
effects are expected to be minimal given the scale of most proposed activities. Safeguards that
may apply refer to OP4.01; OP4.04; OP4.36; OP4.09; OP4.11; OP4.10; and OP4.12. The
preparation period will be used to more clearly determine what type, if any, project impacts
would result from the project. The proposed category for the project is a B. The final category
for the project will be assigned once there is adequate information following project preparation.
4. Tentative financing
Source:
BORROWER/RECIPIENT
Global Environment Facility (GEF)
5. Contact point
Contact: Idah Pswarayi-Riddihough
Title: Lead Natural Resources Management Specialist
Tel: (202) 458-2178
Fax: (202) 477 2733
Email: [email protected]
Total
($m.)
10
5
15