United Nations Public Service Awards Case Studies

The Development Bank of the Philippines, an ISO 14001 Bank for its Environmental Management System, has continually initiated the development of environmental programs which further promote environmental protection and sustainable development for the benefit of the people and the nation as a whole. DBP has taken the lead in funding environmental projects particularly cleaner production technologies, air and water pollution prevention projects, recycling projects, renewable energy and solid waste management projects.
As a matter of corporate policy, the Bank requires from its clients continuous compliance with environmental regulations and continual environmental improvement in its borrowers' company operations through regular monitoring.
In the exercise of corporate social responsibility, the DBP intends to expand its share in conserving and protecting the environment while simultaneously stimulating rural productivity. Cognizant of the fact that it is the environment that sustains growth, DBP believes that communities can be helped by improving the environment through the prevention of soil erosion, conservation of water and improvement of the habitat of terrestrial and marine life. These can be done by the establishment of forests through the program called the DBP (Community/ Livelihood) Forest or DBP Forest.
The DBP Forest Program, launched in April 22, 2005, manifests the Filipino spirit of communal unity and cooperation in conserving and protecting the environment for future generations. Along this line, DBP has tapped as forest partners state universities and colleges, local government units and people's organizations that have been awarded Community Based Forest Management (CBFM) agreement. The CBFM is a program of the Department of Environment & Natural Resources (DENR) which empowers forest occupants to develop and manage forest lands for a period of 25 years, renewable for another 25 years.
This strategic alliance for the environment has also received encouraging support from such agencies as the DENR, the Department of Agriculture (DA), the Department of Science and Technology (DOST), Bureau of Fisheries and Aquatic Resources (BFAR), among others.
The DBP Forest Program, seeks to support and encourage the forestation of open areas through the planting of relatively high value fruit trees and forest trees. Other similar undertakings include coastal rehabilitation through planting of mangrove.

What is the initiative about? (the solution)
Barely almost two years since its inception, the Program has already started to make a strategic headway in redrawing the country's ecological map. As of end of December 2006, there are already 24 forest projects launched in different parts of the country specifically in Bataan, Cagayan, Sarangani, Davao, Bukidnon, Palawan, Guimaras, Iloilo, Quezon, Bulacan, Samar, Aurora, Mindoro and Tarlac. These projects cover an area of 5,446.47 hectares planted to a variety of high value fruit, forest, nitrogen-fixing and other useful plant and tree species. By partnering with 13 community-based peoples' organizations, 7 local government units and 4 state universities and colleges, DBP has given farmers and fishermen in beneficiary communities the opportunity to be directly involved with and to share in the benefits of the forest projects. Depicting a positive response to DBP's pioneering environmental initiative, two projects in Davao has unveiled a progressive mode in people's organization that translates to 1.650 more hectares of forest cover, in addition to the initial 550 hectares of orchards and tree forest earmarked for development. In Cagayan, the 151 hectares Agroforest Project has been chosen by the Department of Agriculture as an “ Agribusiness Model Farm” in Region 2. The farmers are taught about scientific farming and provided planting materials for planting in between trees. The produce from the crops serves to augment their income. They are truly grateful for the assistance extended to them and their families. In Bukidnon, the first community-based rubber plantation being developed by DBP in partnership with a private firm is projected to benefit 829 families through improved rural livelihood activities. The forest project in Quezon has shown encouraging signs for ethanol production. Fisherfolks in the town can now depend on the plantation for an additional source of income by making lambanog, a fiery local wine derived from the sap of the nipa palm. Planted to 125,000 nipa palms, the project is expected to produce an estimated 20.8 liters of lambanog daily, which locals sell for P60 per liter. All forest partners commit their share in the project in the form of establishment of infrastructure to facilitate the development of the project, share in maintenance cost, labor, or to the extent of putting up additional area for reforestation. In order to maximize the potential benefits from the project, the idea of going into the Clean Development Mechanism - Verified Emission Reduction scheme was studied. The forest partners were informed about this scheme and its potential revenue for their Conforme and sharing of whatever net revenue that can be derived from this project. Initially envisioned to help regain forest cover in denuded areas, the Program has evolved into a multi-sectoral vehicle for effecting social change in the host communities with the integration of environmental efforts into rural development and poverty alleviation thrusts. The DBP Forest Program earned the 2006 Environmental Development Project Award from ADFIAP (Association of Development Financing Institutions for Asia and the Pacific).

Who proposed the solution, who implemented it and who were the stakeholders?
The DBP Forest Program was approved by the DBP Board of Directors on January 12, 2005. In the same year, a survey of interested parties to go into this type of project was conducted as well as identifying DBP acquired assets which can qualify under this Program. Since then, many applicants continue to flock and be subjected to evaluation in accordance with set guidelines and prioritization process. The launching dates and Memorandum of Agreement signing of forest projects are as follows: Forest Partner Location Date 1. KIMAMA Abucay, Bataan April 22, 2005 2. BAMABA Abucay, Bataan April 22, 2005 3. Cagayan State University Sta. Maria, Lal-lo, Cagayan June 10, 2005 4. Province of Sarangani Barangay Paraiso, Alabel, Sarangani June 30, 2005 5. BALIKATAN Lower Kibalang, Marilog District, Sept. 23, 2005 Davao City 6. UKAFA Marilog Dist., Davao City Sept. 23, 2005 7. MABUHAY Bukidnon Oct. 27, 2005 8. TAIDAMCO Bukidnon Oct. 27, 2005 9. KUFFA Bukidnon Oct. 27, 2005 10. LIDASAFA Bukidnon Oct. 27, 2005 11. Palawan Council for Sustainable Quezon, Palawan Nov. 11, 2005 Development 12. Palawan State University Rizal, Palawan Nov. 11, 2005 13. Province of Cagayan Gattaran, Cagayan Nov. 24, 2005 14. Province of Guimaras Brgy. Panobolon, Nueva Valencia, Dec. 7, 2005 Guimaras 15. West Visayas State University Lambunao, Iloilo Dec. 8, 2005 16. BFARMA Infanta, Quezon Dec. 12, 2005 17. Watershed Mgt. Council Real, Quezon Dec. 12, 2005 18. Province of Bulacan 11 local government units April 2006 19. Carangian Fisherfolks Devt. Barangay Dao, San Jose, Northern July 5, 2006 Cooperative Samar 20. Province of Aurora 4 project sites-Brgy. Dianawan, August 17, 2006 Baler and Casiguran 21. MASAGKA Barangay Banawang, Bagac, Bataan June 28, 2006 22. Province of Northern Samar Gamay, Northern Samar July 5, 2006 23. Province of Occidental Mindoro Mamburao, Occidental Mindoro Aug. 8, 2006 24. Tarlac State University Camiling, Tarlac Dec. 12, 2006 The launching of the DBP- Cagayan State University forest project as the Model Agribusiness Project in Region 2 took place on November 24, 2006. Letters to forest partners for their Conforme to the CDM-VER scheme was dated October 10, 2006. The DBP Forest Program earned the Environmental Development Project Award in 2006 from the Association of Development Financing Institution for Asia and the Pacific (ADFIAP).

Describe how and when the initiative was implemented by answering these questions
a. What were the strategies used to implement the initiative? In no more than 500 words, provide a summary of the main objectives and strategies of the initiative, how they were established and by whom.
Since the early 1990s, DBP has been actively participating in the efforts in the Philippines to improve the environment and thus provide a better quality of life to the Filipinos. DBP has actively participated in the development and finalization of the Philippine Agenda 21 (PA 21), which is the country’s response to fulfill its commitments to the Earth Summit in 1992 where governments and key sectors of society agreed to implement action programs that are aligned with the objectives of Agenda 21. PA 21 created the enabling environment that assists various stakeholders to integrate sustainable development in their decision-making processes. In particular, PA 21 mentioned DBP as the financial institution whose role is to provide access to(environmental) credit facilities and encourage cooperation between industries and other stakeholders. DBP fully believes in the significance of sustainable development to “meet the needs and aspirations of the people without compromising the ability of future generations to meet theirs” and that economic growth and environmental protection are mutually compatible. With “Sustainable Development’ as its guiding principle, DBP thus took the lead in the banking sector to integrate environmental management and concerns into its developmental programs. DBP acknowledges its potent role in contributing to sustainable development through its lending operations. Over the years, the Bank has taken the lead in funding environmental investments, cleaner production technologies, recycling projects, renewable energy and solid waste management projects. As a matter of corporate policy, the Bank requires from its clients compliance to environmental regulations and continual environmental improvement in its borrowers’ company operations. DBP believes that a bank, like other service sector enterprises, could have a significant if indirect influence on the environment. DBP believes it is in a unique position to influence industry's environmental performance. It thus designed its programs to act on that potential. The Bank’s basic strategy is to provide financial credits and technical assistance for environmental investments. It also publicly promotes the concept of good environmental stewardship. In 2002, the DBP Environmental Management System was certified under ISO 14001. DBP thus became the first Philippine Bank to be certified as such, and the certification has been upgraded and remains valid todate . The recognition covers DBP’s banking, lending and investment activities. In early 2005, DBP started a new environment program called the DBP Forest. This is rather a unique program in the sense that this is not a loan where DBP will be getting profits. In fact, for this program, DBP shares its profits to protect the environment. Conscious observance of managing direct environmental aspects in Bank internal operations had generated savings for the Bank by about P10 Million to date. Also, various awards and citations have been accorded to DBP for all its achievements, among which are: Association of Development Financing Institutions in Asia and the Pacific •2006 Environmental Development Project Award for DBP Forest •2002 Environmental Development Award for DBP EMS The Asian Banking Awards •2001 Most Outstanding Environmental Program for the New and Renewable Energy Financing Program •1999 Most Outstanding Environmental Program for the Environmental Management Program Office of the President / Dept of Energy National Energy Efficiency and Conservation Program in Government Buildings •2005 “A” Grade for DBP Energy Conservation Program

b. What were the key development and implementation steps and the chronology? No more than 500 words
In the exercise of corporate social responsibility, the DBP intends to expand its share in conserving and protecting the environment while simultaneously stimulating rural productivity. Cognizant of the fact that it is the environment that sustains growth, DBP believes that communities can be helped by improving the environment through the prevention of soil erosion, conservation of water and provision of wildlife habitat.These can be done by the establishment of forests through the program called the DBP Forest. The DBP Forest seeks to support and encourages the forestation of open areas through planting of relatively high value fruit trees and other useful plant species, like mango, bamboo, and ilang ilang. It also promotes rehabilitation of coastal areas through the planting of mangroves and associated species. Secondary considerations resulting from these planting activities are improvement of the habitat of terrestrial and marine life, while also creating rural livelihood opportunities. A long-term vision is the development of the downstream industries in the locality, when the trees have fully grown such as, fruit/food processing, oil/essence extraction, etc. Project size / site The project is open nationwide. The choice of project sites consider the following: • Areas/regions proven to be compatible with certain orchard crops (e.g., mango in places with lesser rainfall and where climate tends to be warm) • Accessible so as to allow easy bringing in of planting stocks, facilitate monitoring and, eventually, enable the products to reach the market. •Other Criteria :poverty incidence; watershed significance; incidence of soil erosion; activeness and capability of the partner organization For an upland project to generate impacts of ecological importance, 200 to 500 hectares of contiguous plantation is desirable; a 50-ha plantation if high value crops will have significant impact in sustaining cottage industries of beneficiaries. Similarly, a 1 km stretch of mangrove plantation with a width of 100 meters can generate long-term positive economic and ecological impacts in a coastal zone and the surrounding community. Target Partners/Beneficiaries The bank is tapping as forest partners state universities and colleges, local government units, and people’s organizations (POs) that have been awarded Community-Based Forest Management (CBFM) agreements. The CBFM is a program of the Department of Environment and Natural Resources (DENR) which empowers forest occupants to develop and manage forest lands for a period of 25 years, renewable for another 25 years. DBP also works with other government agencies such as the National Irrigation Administration, National Power Corporation, Bureau of Fisheries and Aquatic Resources, Protected Areas and Wildlife Bureau, Department of Science and Technology, and the Department of Trade & Industry.

c. What were the main obstacles encountered? How were they overcome? No more than 500 words
The DBP Forest is not a loan project. It is an assistance/partnership project. Funding comes from the seed fund of P50 Million, and from the one-time collection of forest fees (certain portion of front end-fess collected) from every approved loans of P20M and above from DBP’s retail borrowers, and from P10 M and above from wholesale borrowers. In the future, another possible source of funds is from the 70:30 revenue sharing scheme from harvests, where 30 % goes to the Forest Fund and 70 % to the forest partner. The various modes of establishing the DBP Forest are: Through partnerships with government agencies involved in forestland development, like the DENR, the main government agency responsible for environmental protection in the country, and other major partners as cited above. DBP may also apply for lease over certain forest areas under a Socialized Integrated Forest Management Agreement (SIFMA) covering a maximum area of 500 hectares. DBP can apply for as many SIFMAs as the Bank may consider necessary and viable. The DENR local office fully cooperates in fast-tracking the processing and approval of the Bank’s application. Process Flow •DBP prepares a list of candidate partners. Writes possible partners, with request to fill up attached profile and application form •Partners submit accomplished profile and application form and expression of interest •DBP evaluates application based on profile; Prepares short list of candidates •DBP meets with short listed candidates. Inspects sites •DBP makes final evaluation; Selects and informs project partners •DBP and selected partners meet. Discuss project terms and conditions, including draft agreement •DBP and Partners discuss 1) establishing baseline information on the project site through rapid appraisal and 2) preparation of detailed development plan •Partner prepare development plan; submit plan to DBP •DBP reviews development plan; Feedback given to the partner •If development plan is approved, DBP and Partner meet to finalize and sign Memorandum of Agreement (MOA) with the following salient features: - DBP provides financial assistance for the procurement of planting stocks and for first year maintenance and operating expenses; provides advisory and opens up linkages with appropriate agencies; participates in monitoring; - Forest Partner or Beneficiary owns or controls project site; undertakes site preparation, actual planting, replanting, maintenance, monitoring and coordination with appropriate agencies; - DENR / Other Cooperating Agencies provide technical assistance; monitoring; other assistance •DBP releases check based on MOA, development plan and project progress •DBP provides partner with list of accredited suppliers of planting stocks •Partner orders planting stocks; starts site preparation •Supplier delivers planting stocks; Inspection of planting stocks by partner and DBP • Pays planting stocks suppliers; Hardens the stocks at the nursery •Planting; Staking •Interplanting •Maintenance/Replanting •Monitoring; Recording and Reporting

d. What resources were used for the initiative and what were its key benefits? In no more than 500 words, specify what were the financial, technical and human resources’ costs associated with this initiative. Describe how resources were mobilized
Among the changes that have resulted from the accomplishment of the DBP Forest Project are : The Local Government Units, or LGUs, Receipt fun. As much as I tout going paperless, living in the real world means accumulating at least some dead-tree product. Receipts were my big nemesis. I was always losing them, or accumulating a massive wad in my wallet that had to be tediously sorted lest I need to return something, take advantage of a rebate or prove a purchase to the IRS. Then I read Debbie Stanley's wonderful "Organize Your Personal Finances in No Time" and cobbled together the following system from her suggestions. Receipts now go in one of three compartments in my wallet. Receipts that I probably won't need for long, such as those for routine purchases, get stuffed in with the bills; receipts that require action, such as a rebate, get put in the center section; tax-related receipts and those for big-ticket items go in the third compartment. Every week or so I clean out my wallet, taking action on the middle-compartment receipts and filing the tax-related ones. The "short-term" receipts get put in a folder marked "This Month." At the end of the month, I move them into the folder marked "Last Month," while the receipts from that folder get moved to the "Two Months Ago" folder and the contents of THAT folder get dumped in the trash. This system ensures I keep receipts long enough to check against my credit card statements, if I need to, and to make any returns. But I no longer have to spend valuable time sifting and sorting. Debbie, thank you. 1. where the partner is a people’s organization, have allocated additional funds to support the project, as their counterpart. For example, the Province of Bataan has given P60,000 each to the two people’s organizations in Abucay, Bataan (where two coastal projects are located) to rehabilitate the tidal fences that were damaged by a typhoon. In another project, the Municipal Mayor has committed (and has partially complied) to improve the road leading to the Project site. This was likewise done by a partner provincial government. The road to the project site has been widened, a water system installed, and the project site is being fenced to ward off stray animals. These experiences indicate that local government units can be mobilized to collaborate in development projects. 2. The participating universities have created internal organizations from among their faculty and administrative staff to carry out project implementation. This set-up provides the academics to interact more closely with the local farmers who are using the university’s land and thereby foster lasting cooperation between the university and the community. 3. Some farmer PO’s have tasked select members (forming committees) to handle the day-to-day concerns of the project. This is significant in the sense that leadership is gradually being developed and honed through their engagement in the project. 4. Bookkeeping (of planting stocks received, money inflow and disbursement) among the people’s organizations has been systematized and strengthened. This is important in promoting accountability and transparency in all transactions involving the DBP Forest Project. 5. Being encouraged are joint ventures, co-management and other modalities wherein a third party can participate in the project for cost sharing, future product processing, and /or provision of ready market, to further hasten the forestation of open areas.

Is the initiative sustainable and transferable?
The participation of the partners in all aspects of the project guarantees sustainability and transferability. Participation starts with the planning of the project such as in identifying project sites, determining appropriate species to be planted, and scheduling of plantation and maintenance activities. As plans are discussed, the partners actually make decisions for the project. These include deciding on the mix of species to be planted, the spacing of plants, the farm supporting systems and how maintenance work will be carried out. Even in what may appear as trivial matters like preparing for the launching of the project, the partners have assumed initiative. Monitoring and evaluation (M & E) are the other project activities where the partners participate. Participation in this activity is important because M & E reinforces responsibility and accountability, which are essential elements in the sustainability of any project or undertaking. It is believed that where the partners actually take part in all project activities, then the feeling of ownership and care would emerge and develop. This is the take off for sustainability, which means ensuring that the plantations thrive well until they become economic goods and that their environmental, economic and social objectives are achieved. The DBP Forest project policies and procedures are quite simple and straight-forward, facilitating the easy replication of the project in other sites or even by other organizations. Unlike other forestation projects which entail too much time to plan and to take off, the DBP Forest projects require relatively short time – three to five months, on the average, thus increasing and sustaining the interest of the partners. Already, one project in Central Philippines that is funded by an international donor is looking at the approach of the DBP Forest Project as guide in planning both upland and coastal rehabilitation projects. A key feature that makes the DBP Forest Project readily transferable is the involvement of the DENR which is the primary government agency in the Philippines for the management and conservation of the country’s environment and natural resources. Operating through a network of regional and field offices, the DENR has agreed to provide technical assistance (e.g., site-species compatibility, mulching of plants to retain moisture particularly during dry months, slope stabilization, pest management, etc), which is a necessary support for the sustainability of the plantations. In all DBP Forest projects, the DENR also participates in project planning and, in some cases, in monitoring. The other important partner is the Local Government Unit (LGU), represented usually by the municipal agriculturist, or in some towns, by the local environment and natural resources officer. The participation of the LGU is actually part of the sustainability strategy. The LGU’s presence and availability for consultation is more constant and permanent than that of the DENR and the DBP. For the LGU, the project can also serve as model in planning a similar undertaking and even in sourcing out assistance from other donors. In essence, the project creates opportunities for replicability.

What are the impact of your initiative and the lessons learned?
1. Other banks can be encouraged to support developmental projects like the DBP Forest through a simple procedure of assessing a minimal front-end fee (1/10 of 1%) when accessing DBP credit funds. Without sacrificing their profitability, other banks are able to protect the environment. 2. Bank personnel can be trained to embark and be effective on field development work such as planning, implementing and monitoring a forest plantation project, in addition to their primary responsibilities in the Bank. 3. The DBP Forest Project has assumed an unintended role of enhancing the functions of partners like universities and colleges. While the principal objectives are essentially environmental (soil and water conservation) and economic (generating revenues in the future), the project also provides opportunities for research, extension and as field laboratory for instruction of the partner university. 4. The project has given the LGU the means to comply with its responsibility of rehabilitating denuded forest lands. Considering the LGU’s limited financial capability and in the light of competing priorities, rehabilitation of forest lands that are subject of co-management agreement is often given very low priority. 5. Regular and scheduled monitoring of projects keeps the partner actively implementing plantation activities to support plant growth. In the process, the partners develop a serious sense of responsibility and accountability for the project. Moreover, participation to technical training has created greater awareness on environmental protection and increased knowledge in forestation. 6. The projects have served as model for environmental development and protection in the locality. Some of the local government-partners use the DBP Forest project as show-case for similar projects and thereby increasing awareness and interest in environmental conservation among segments of the population. 7. DBP Forest has demonstrated that where reforestation species can provide long term benefits and that the fruit trees are likely not to be cut, the partners exhibit more enthusiasm and willingness to participate in the project. Contrast this with reforestation projects using forest trees which may not be allowed to be cut in the future, and therefore, economic benefits to the partners are unclear in the future. 8. A clear set of policies and procedures as well as their strict implementation by both parties promote transparency and integrity in the financial aspects of the project such as in procurement of planting stocks and in paying accomplished on-farm activities. 9. The project has given the partners the opportunity to make a scenario for the future such as product processing . While still at the early stage, the partners are already beginning to think of other economic possibilities that may arise from the plantations. 10. The involvement of many players is crucial in project implementation. Tie ups with related programs of DENR, Department of Agriculture, LGUs, result to synergy and availability of other resources. Greater unity and spirit of volunteerism and networking with several offices and agencies, are experienced at the grassroots, exposing them to greater opportunities beyond the confines of their own organizational activities.


Institution Name:		Development Bank of the Philippines
Institution Type:		Government Agency
Contact Person:		Aurora Maghirang
Title:		Senior Assistant Vice President
Telephone/ Fax:		(632) 8936743
Institution's / Project's Website:		(632) 8936743
E-mail:		info@devbankphil.com
Address:		Program Development, 5th Floor
Postal Code:		1200
City:		Makati City
State/Province:
Country:		Philippines

The Problem

Solution and Key Benefits

Actors and Stakeholders

(a) Strategies

(b) Implementation

(c) Overcoming Obstacles

(d) Use of Resources

Sustainability and Transferability

Lessons Learned

Contact Information