TOTAL 175,960 100.0 Sources: ... Ata-Manobo, and Bagobo-Klata. About 75% of the basin area is covered by the Certificates of Ancestral Domain Titles...

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EXECUTIVE SUMMARY    Davao River Basin Management                   and Development Plan    February 2015                              With Technical Assistance from:   

Orient Integrated Development Consultants, Inc. 

Formulation of Davao River Basin Management and Development Plan

Table of Contents 1.0

GENERAL FEATURES OF THE DAVAO RIVER BASIN ...................................................... 1


CURRENT SITUATION ................................................................................................... 4


PROBLEMS AND ISSUES, AND CHALLENGES .............................................................. 12


DEVELOPMENT VISION, MISSION AND OBJECTIVES .................................................. 13


STRATEGIES ................................................................................................................ 14


INVESTMENTS, TARGETS AND COST .......................................................................... 15


INSTITUTIONAL ARRANGEMENTS .............................................................................. 22


FINANCING STRATEGY ............................................................................................... 24


INVESTMENT AND ECONOMIC ANALYSIS .................................................................. 26

10.0 ENVIRONMENTAL AND SOCIAL ASSESSMENT ........................................................... 27

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Davao River is considered the third largest river in Mindanao, next to Mindanao River and Agusan River. The main river is 86 kilometers long and drains an area of about 175,960 hectares. In view of its size, economic significance to the Davao region and its potential to provide for the water security of Davao City, the Davao River Basin (DRB) is included among the 18 major river basins in the country that are priority for master planning. DRB is geographically located between 7° 2' 27.6" and 7°49' 8.4" N latitude and 125° 11' 27.6" and 125° 39' 0" E longitude. It is one of 10 major river systems in the Davao region that drain to the Davao Gulf. It has significant influence on Davao Gulf, a key marine biodiversity area and one of the country’s major fishing grounds. DRB is shared by Bukidnon (San Fernando, Quezon and Kitaotao), Davao del Norte (Talaingod) and Davao City. See Administrative Map. Of its 78 sub-watersheds, 28 subwatersheds are within Bukidnon and are collectively referred to by the Bukidnon Province as the Davao-Salug River Watershed cluster. Davao City compose 67% of the total area of DRB. Political Units within the Davao River Basin LGU BUKIDNON San Fernando Quezon Kitaotao Valencia DAVAO DEL NORTE Talaingod DAVAO CITY TOTAL

Total Area within DRB (Hectares) 44,537 29,178 11,104 4,028 227 14,337 14,337 117,086 175,960

% Share in Total DRB Area 25.3 16.6 6.3 2.3 0.1 8.2 8.2 66.5 100.0

Sources: Comprehensive Land Use Plans and various reports from Davao City and Bukidnon LGUs, Administrative Map of DRB

Except for Davao City, all the town centers of the other LGUs are located outside DRB. There are about 137 barangays from all the LGUs that are wholly or partially within DRB but only 125 have settlements within the basin area.1 Davao City itself has 110 barangays with settlements in DRB. About 95% of the DRB population are therefore Davao City residents, with more than 70% coming from the urban barangays of the city. A number of denselypopulated barangays from the central business district of Davao City are located within DRB.


One of the barangay settlements in the Davao City-Kitaotao area is associated with Arakan of North Cotabato.

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According to the Philippine Statistics Authority, Davao City has about 180 ethnic groups while Bukidnon is home to 179 ethnic groups. The river basin itself is part of the ancestral domain of the Obu-Manuvu, Matigsalug-Manobo, Ata, Ata-Manobo, and Bagobo-Klata. About 75% of the basin area is covered by the Certificates of Ancestral Domain Titles (CADT) of the four tribes. Settlements and Population within the Davao River Basin Municipality/ City

No. of Barangays with Areas within DRB

No. of Barangays with Settlements within DRB

11 4 8 1

9 2 7 -

13,971 912 16,285 -




110 137

1 106 125

1,725 593,429 625,564

BUKIDNON San Fernando Quezon Kitaotao Valencia DAVAO DEL NORTE Talaingod NORTH COTABATO Arakan* DAVAO CITY TOTAL

Estimated Population (2010)

% Share in Total Estimated Population 4.98 2.23 0.15 2.60 0.28 0.28 94.75 100.00

*Refer to Footnote 1. Sources: Comprehensive Land Use Plans and various reports from Davao City and Bukidnon LGUs, Barangay Boundaries Map of DRB

DRB has a type IV climate. The favorable climate type, with relatively uniform rainfall and temperature throughout the year, makes the DRB desirable for agricultural production, particularly of high value fruits. Its rich land and water resources make it an important source of food and raw materials for households and industries in both Davao City and Bukidnon.

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Administrative Map of Davao River Basin


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Biophysical Resources Land Resources About 77% of DRB are forestlands and 23% are A and D lands. Most of the A and D lands are in Davao City and San Fernando. These are devoted mainly to agriculture: 8% for annual crops and 61% for perennial crops. About 17% of A and D lands are wooded lands, shrublands and grasslands, which could be potential areas for agriculture. Davao City and San Fernando also have the biggest forestland areas. In 2010, DRB had 16,115 hectares and 17,180 hectares of remaining closed canopy and open canopy forests, respectively. These forests constituted 25% of total forestlands. About 64% of forestlands were wooded lands/grasslands. Cultivated areas in forestlands, both for annual and perennial crops, accounted for 6% of forestlands. It is estimated that based on its 2010 vegetative cover, DRB has a total carbon stock of 9,153,240 tons. Land Resources within the Davao River Basin LGU BUKIDNON San Fernando Quezon Kitaotao Valencia City DAVAO DEL NORTE Talaingod DAVAO CITY TOTAL AREA % of Total DRB Area

Alienable and Disposable Lands (A and D) Ha %

Forestlands or Timberland Ha %



Total Area

1,332 -

3.3% -

27,846 11,104 4,028 227

20.6% 8.2% 3.0% 0.1%

29,178 11,104 4,028 227

16.6 % 6.3 % 2.3 % 0.1 %

496 38,663 40,491

1.2% 95.5% 100.0% 23%

13,841 78,423 135,469

10.2% 57.9% 100.0% 77%

14,337 117,086 175,960

8.2 % 66.5 % 100.0% 100%

Sources: Department of Environment and Natural Resources (DENR), Land Classification Map and Administrative Map

Diverse flora and fauna, including rare, vulnerable and critically endangered species, are found in the Bukidnon Plateau, Mt. Sinaka, Mt. Apo, and other mountains and forests that surround DRB. These forests are nesting grounds of the Philippine Eagle. Within the period 2003 to 2010, significant changes in land cover/use within DRB have been noted, such as thinning or disappearance of closed canopy forests, disappearance of open canopy forests, conversion of wooded grasslands/shrublands into grasslands, conversion of annual crop areas and wooded lands to perennial crop areas, expansion of cultivated areas into forestlands, and increase in built-up areas with some areas encroaching into forestlands. Overall, there was a decrease in natural forest cover (closed and open canopy forests) by about 21%, which translates to an average annual decrease of 3%.

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Change in Land Cover/Use: 2003 and 2010 Land and Vegetative Cover Category Closed forest, broadleaved Open forest, broadleaved Forest plantation Cultivated, annual crop Cultivated, perennial crop Natural grassland/ Grasslands Wooded land, shrubs Wooded grasslands Built-up Others (Major River) TOTAL DRB Area

Year 2010 % Share in Area Total DRB (Hectares) Area 16,115 9.2 17,212 9.8 10,413 5.9 26,168 14.9 7,690 4.4 16,125 9.2 77,134 43.8 4,168 2.4 935 0.5 175,960 100.0

Year 2003 % Share in Area Total DRB (Hectares) Area 9,428 5.4 32,737 18.9 1,424 0.8 13,831 8.0 8,801 5.1 1,039 0.6 66,858 38.6 35,328 20.4 2,951 1.7 935 0.5 173,332 100.0

Sources: DENR/NAMRIA 2010 and 2003 Land Cover Map

Recent and ongoing efforts to increase the vegetative cover of DRB through tree-planting activities of various organizations, IP communities, the Davao City Water District (DCWD) in the Malagos Reservation, and of the National Greening Program (NGP), which has covered a total of 5,466 hectares from 2011-2014, are not sufficient to recover the forest cover that have been lost. As mentioned earlier, four CADTs enclose 75% of the whole of DRB. There are pending ancestral domain claims that, once approved, will effectively close the open access (i.e., untenured) forestlands in DRB which is estimated at 11,783 hectares. Given the wide coverage of the ancestral domain, most of the existing forests, grasslands and wooded lands will be within the CADTs. This indicates the extent of the resource management responsibilities that CADT holders have to shoulder. Outside the existing CADT areas, there are about 1,033 more hectares of forestlands that are tenured. There are also a number of tenure instruments, among them CBFMA, IFMA, mining tenements, co-management area and the land reservation to UP Mindanao, that cover areas inside three CADT areas. See LMRU Map.

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Map of Land and Resource Management Units in the Davao River Basin

Ata-Manobo Cultural Community (with issued CADT) Matigsalug-Manobo Tribe (FEMMATRICS) (with issued CADT)

Ata Tribe Ancestral Domain (with issued CADT)

Obu-Manuvu Tribe Acestral Domain (with issued CADT)


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Water Resources Findings of the hydrologic and water balance study2 indicate that the annual water surplus in DRB consists of 3.3 million cubic meters (MCM) of total runoff and 90 MCM of net groundwater recharge. The 3.3 million MCM runoff is 69% of the estimated mean annual rainfall (MAR) which is 2,652 mm. The 90 MCM net groundwater recharge is only 2% of the MAR. This means that the surface water resource is far more abundant than the groundwater stock within the basin. The low recharge is basically due to the geological and morphological character of the mountainous and rolling terrain of the upper sub-basins, which is generally of impervious character and is not favourable for recharge. Most of the percolated water flows out of storage as mid-slope springs and river baseflow, and does not reach the aquifers. Currently, the uses of the surface water resources of DRB are limited to domestic water supply and irrigation of annual and perennial crops. Most of the water supply of Davao City (provided by the DCWD) is sourced elsewhere. It is estimated that the volume of water used within DRB for domestic use and irrigation constitute a low 1% of total surface runoff. Records of the National Water Regulatory Board (NWRB) suggest that surface and ground water use within the DRB is largely unregulated. Few water users have obtained water use rights from the said agency. DENR-EMB has established 8 water quality monitoring stations along Davao River. Based on water quality, sections of the river have been classified as Class A (suitable for water supply but requires complete treatment) while the lower end of the river is categorized as Class B (suitable for primary contact recreation such as bathing, swimming, and skin diving). Pollution and sedimentation are among the key issues in the downstream part of the river. Large areas in DRB are devoted to agricultural plantations that use chemicals. Densely populated settlements are major sources of both solid waste and wastewater that are directly discharged to the river. Water quality monitoring results have shown exceedances in some water quality parameters including coliform and total suspended particulates. The lower part of the DRB has been designated as a Water Quality Management Area (WQMA) in accordance with the Clean Water Act of 2004 and per DAO 2013-04 of DENR. 2

The study made use of available monthly rainfall, temperature, and other hydrologic/ climatological data from hydromet stations located in Malaybalay, Bukidnon, Kidapawan, North Cotabato and Davao City airport as there is no hydromet station inside DRB. The long-term monthly and annual hydrologic balance was determined using a watershed balance model developed by the UP National Hydraulic Research Center. For this study, eight sub-basins were defined from among the 78 sub-watersheds of DRB and a water balance analysis was done for each.

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Coastal Resources The DRB has considerable and far-reaching impact on the water quality and resources in the coastal zone of Davao City and on Davao Gulf which is host to diverse reef and mangroves species, seagrasses, migratory birds, whales and dolphins, sea turtles, and cetaceans. A number of these species are listed in the Convention on the International Trade of Endangered Species. The combined effects of pollution and sedimentation from Davao River and improper fishing practices have affected the quality of habitats within the city’s municipal waters and in nearby LGUs. Coastal resources directly impacted by the Davao River are the: 1) marine protected areas (MPA) and fish sanctuaries in coastal barangays including some in Samal Island; 2) turtle nesting sites and feeding sites of cetaceans and marine mammals; 3) remaining mangroves forest in Matina Aplaya and Bucana; 4) fishing grounds and nearby aquaculture farms; and 5) beach resorts and recreation areas near the mouth of Davao River. The coastal waters of Davao City are classified as Class SB (waters intended for recreation and as spawning areas for milkfish and similar species). Map of Water Quality Monitoring Stations and the Coastal Zone of Davao City

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Socio-Economic Conditions The total population within the DRB is 626,322 (2010). The urban population composes 75% of the total population within DRB. The growth in population (projected to reach almost 1 million by 2029) and the fast urbanization of Davao City are putting a lot of pressure on the resources and ecosystem services provided by the DRB. A wide disparity in socio-economic conditions exists between urban and rural settlements, and between the Bukidnon LGUs and Davao City. Bukidnon is the 13th poorest province in the country, with about 43% of its population living below the poverty threshold. The poverty incidence in Kitaotao, San Fernando and Quezon was reported in 2009 to be over 50% of their respective populations. In contrast, the poverty estimate for Davao City is a low 13.2%. Expectedly, access to infrastructure, water supply, education and health facilities is higher in Davao City barangays than those in the upper river basin areas. The IP communities are the largest and most important stakeholders of the DRB. Their distribution within DRB cannot be firmly ascertained. The lives of the IPs have been affected by various developments in DRB such as the logging operations that destroyed forests, the opening of roads, and the introduction of new farming technologies. There is intermingling of cultures as migrants like the Ilocanos, Cebuanos and Ilongos have settled in DRB. The following are the key economic activities of communities in DRB: 1) Agriculture: Some 8,525 hectares or 4.8% of the DRB area are devoted to annual and perennial crops. Major crops grown are rice, corn, cassava, sugarcane, and high-value crops such as bananas, pineapples, citrus, durian, rambutan, coffee, cacao, and rubber. 2) Tourism and recreation: Davao City’s top three tourist destinations are within DRB. These are the Crocodile Park, the Animal Encounter in Malagos Garden, and the Philippine Eagle Center. The latter facility attracts over 120,000 visitors annually. White-water rafting in Tamugan and Baguio is also a tourist destination. Found along the Davao-Bukidnon road are recreational and cultural tourism services, weekend houses, and training centers. 3) Commerce, services, and industry: Among the eight watersheds of Davao City, DRB has the biggest number of business establishments in the city at 17,474; this accounts for about 55% of total establishments and 63% of business capital investments in Davao City. Most (98%) of these, however, are micro-enterprises and small industries, engaged mainly in handicrafts, food processing, trading and services. 4) Fisheries: Davao Gulf is an important fishing ground. Annual fisheries yield in the Davao region is at 67,468 metric tons (2012). A population of 274,918 from the city’s coastal barangays are highly dependent on fisheries and aquaculture for their livelihood. 5) Small-scale mining and quarrying: Small-scale gold mining operations have been reported in upstream San Fernando and in Quezon. There are 59 permit holders that extract sand and gravel at various points of the Davao River, mostly at the downstream areas. These activities are contributing to the water quality problem of Davao River.

Natural Hazards and Climate Change The DRB with its topography, slope, and vegetation is susceptible to three types of natural hazards – earthquakes, flooding, and landslides. The Davao River Fault is located at the upper and middle part of the basin. It poses a direct threat to DRB with 15 settlements found along the fault in San Fernando, Kitaotao and Davao City.

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The basin lies within a latitude zone with a typhoon path frequency of 7%, meaning an average of one to two typhoons each year pass through the basin. The flood-prone areas in DRB are low elevation areas (about 6,200 hectares) along the riverbanks of Davao River and some of its tributaries. Flooding affects 10 barangays in Bukidnon and 72 in Davao City. The occurrence of flashfloods have become more frequent. The flashfloods are due to: excessive run-off from the rivers, housing and infrastructure development that constrict natural river flows, and inadequate and clogged drainage systems. In view of its steep slopes, the DRB is susceptible to landslides, particularly during heavy rains. A total of 77,473 hectares (44% of DRB) are highly susceptible to landslides including the Shrine Hills in Matina, which has been named Urban Ecological Enhancement Sub-Zone. The data below underscore the importance of having disaster risk reduction and mitigation (DRRM) plans and zoning regulations enforced in the DRB Local Government Units (LGUs). Number of Barangays Highly Susceptible to Natural Hazards LGU Talaingod Valencia City Quezon San Fernando Kitaotao Davao City TOTAL



10 3 2 15

5 2 19 26

Landslide 3 1 4 10 7 31 56

Source: Faultlines and Flooding Susceptibility Map, Administrative Map, Landslide Susceptibility Map

Governance and Institutions The stakeholder analysis that was undertaken identified eleven stakeholder groups. These have been classified into four types: decision and policy makers (e.g., LGUs, DENR), resource managers and users (e.g., CADT and tenure holders), providers and intermediaries (e.g., LGUs, national agencies, NGOs), and influencers (e.g., civil society, private sector). From among these, there are four specific stakeholders who will play key roles in the governance of DRB by virtue of the responsibility, authority and accountability (RAA) given them under existing laws and policies. These stakeholders are: 1) DRB LGUs which have jurisdiction over parts of the DRB and have environmental mandates emanating from the Local Government Code and various environmental laws (e.g., Climate Change Act, Clean Water Act, DRRM Act, others). 2) DENR which have jurisdiction over forestlands through the Revised Forestry Code and various issuances. It also has authority over protected areas, water and mineral rights, and the issuance of Environmental Compliance Certificates (ECC). Pollution control is likewise part of its mandate. 3) CADT holders which under the Indigenous People’s Rights Act (IPRA) have the right to manage natural resources within their ancestral domain; to benefit and share the profits from the allocation and utilization of natural resources; to negotiate the terms and conditions for the exploration of natural resources; and to informed and intelligent participation in the formulation and implementation of projects that will affect their

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ancestral domain. They likewise have the right to receive just and fair compensation for any damages resulting from the project. The National Commission on Indigenous Peoples (NCIP) was created to implement the IPRA and assist/support the IPs in the management of their territories. 4) Tenure holders whose on-site management responsibilities are stipulated in tenure instruments issued to them or in agreements signed with DENR.

There exists three coordinating councils that have mandates to look after specific resource management areas within the DRB. The physical areas these councils are responsible for coincide with the ridge-to-reef continuum. These councils are:   

Bukidnon Watershed Protection and Development Council (BPWMC) which covers the whole province of Bukidnon, including the Davao-Salug watershed. Davao City Watershed Management Council (DCWMC) which is concerned with the watersheds of the city, including DRB. Davao Gulf Management Council (DGMC) which looks after the protection and management of the entire Davao Gulf, the receiving end of all that flows through Davao River.

The councils were created by different instruments, are operating under different institutional frameworks, and are at different levels of growth and maturity. DENR Region XI and the Mindanao Development Authority (MinDA) deemed it an appropriate strategy to build on these existing institutions and form them into a Davao River Basin Management Alliance (DRBMA). Mandates, Members and Status of BWPDC, DCWMC and DGMC Bukidnon Watershed Protection and Davao City Watershed Development Council (BWPDC) Management Council (DCWMC) Enabling Instrument and Year Created 1995: Presidential Memorandum 2007: Davao City Watershed Order 270 Protection, Conservation and Management Code; 2011: Executive Order 22 Mandate Protection and preservation of the Implementation of the watershed remaining forests in Bukidnon; code, particularly the use of 34,000 rehabilitation of the headwaters of hectares classified as conservation river watersheds. areas, agro-forestry non-tillage areas and prime agricultural lands. Membership Representatives from Provincial Has 26 members from key Government, national line agencies, stakeholders and interest groups. LGUs, local institutions, and NGOs. Headed by the City Mayor. Chaired by the Provincial Governor. Status Active Inactive during the past few years.

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Davao Gulf Management Council (DGMC) 1999: MOA among coastal municipal and city governments; 2000: Registered with SEC as multisectoral NGO. Protection and preservation of the biodiversity and fishery resource of Davao Gulf; formulation of the Davao Gulf Framework Plan.

Mayors of 23 LGUs along Davao Gulf with members from national line agencies, NGOs, and academic/research institutions. Active.

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Stakeholders have identified a host of problems affecting the DRB and classified and organized them by ecosystems across a ridge to reef landscape. Further analysis is provided using the problem tree method. Problem Tree Analysis of DRB Problems and Issues

Reduced Resilience of Ecosystems and Communities a) Depletion of Forest Cover/ Biodiversity Loss


b) Soil Erosion, Sedimentation, Siltation

c) Flooding and Landslides; Disruption of Economic Activities

Destruction of Coastal/Aquatic Habitat Marine Biodiversity Loss Reduced Ecotourism Value Distruption of Economic Activities, Damages/Losses

Water-borne Health Problems

d) Reduced Production and Ecotourism Value

e) Reduced Access to Clean Water


Degradation of Forestlands and Conversion to other Inappropriate Land Uses

Poor Water Quality

Timber Poaching

Settlement along Riverbanks, Estuaries, Coastline

Upland Migration/Rapid Expansion of Built-up Areas

Improved Solid and Liquid Waste Disposal; Lack of Sanitation Facilities


Pollution from Agricultural Farms

Weak Environmental Governance/Enforcement of Laws and Policies


Unharmonized Development, Land Use and Resource Management Plans

Given all the problems and issues that have been raised, the major challenges that the master plan will seek to address over the next 15 years are:     

The protection and conservation of ENR assets in DRB, large parts of which are degraded. Alleviation of the poverty situation in rural areas, which are largely the ancestral domain of indigenous peoples. Increasing the resiliency of ecosystems, communities and livelihoods to natural hazards and the impacts of climate change. Enhancement of the capability of designated on-site local and resource managers to effectively manage areas titled or tenured to them. Putting in place the appropriate and effective governance system for DRB management.

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The major stakeholders of the Davao River Basin crafted this vision statement for the Davao River Basin: “A healthy Davao River Basin sustainably managed by empowered and responsible stakeholders”. It is the stakeholders’ mission to collaboratively improve DRB’s capacity and resiliency to provide ecosystems goods and services, based on the principles of integrated water resource management (IWRM), good governance, and stewardship, and upholding gender and cultural sensitivity, and inclusive growth, for the benefit of on-site land and resource managers, farmers, enterprises, industries, and communities. The DRB vision is in harmony with the vision in development and resource management plans that are relevant to DRB and is aligned with the MindaNOW Roadmap for 2020. The goals for the DRB master plan are two-fold: 1) to improve the quality and sustainability of ecosystem goods and services derived from DRB and enhance the competitive advantage of the river basin; and 2) to promote local socio-economic growth of communities in DRB and reduce rural poverty.

These are the five major targets that are expected to be achieved within the 15-year plan period:     

Improved tree cover of DRB from the current 34% to 57%; Increased competitive advantage in the production of perennial and high value crops; Sustained/dependable water flows in major rivers tapped for domestic water supply, hydropower and irrigation, barring extreme drought events; Improved overall water quality of the Davao River; and Reduced vulnerability of communities to natural and climate change-induced hazards, particularly flooding and landslides.

On the institutional side, it is expected that an effective governance system will be put in place, with strong stakeholder participation, to provide direction to the development investments in DRB and monitor biophysical, socio-economic and institutional development results.

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DRB’s natural endowments provide it comparative advantage in the supply and production of goods and services that are in wide demand in DRB. DRB’s comparative advantages:    

A major source of water for Davao City and Bukidnon; Ideal agro-climatic and geographic location for high value agricultural crops and forest plantations; Unique socio-cultural practices, natural and man-made features and landscapes; and Established markets and capacities for secondary and tertiary processing and marketing of agri-and forest-based products.

The core thrust of the master plan will therefore be to improve the quality and resiliency of these assets. These should create positive income streams and benefits to communities and encourage them to further protect and conserve these resources. These however will highly depend on the effectiveness of entities with RAAs to carry out their mandates and assigned responsibilities. The master plan thus adopts the following prescriptive strategies: 1) Management and Regulation of Protection, Conservation and High Hazard Areas (PCHHAs). This set of strategies ensures that existing ecosystems/ENR assets become more stable and resilient. These strategies will enable ecosystems and communities to withstand the impacts of climate changes such as intense and prolonged precipitation, strong typhoons and droughts. 2) Direction and Promotion to Enhance DRB’s Comparative Advantages in Support of SocioEconomic Development. This set of strategies promotes efficient and sustainable use of the resources for local socio-economic development. These are designed to increase overall land productivities in agriculture and forestry, diversify household incomes, and improve access of men and women in DRB to potable water and other social and infrarelated services. Part of the strategy is the reduction of risks of highly vulnerable communities from disasters through zoning regulation and engineering measures. 3) Strengthening of Policies and Local Governance Systems at the basin, sub-watershed, and LGU levels. This set of strategies paves the way for sound and decentralized governance and management of DRB. Included here are measures that will improve oversight, coordination, and strategic direction; improve support systems for tenure and ancestral domain holders; regulation and enforcement of land and resource uses; establish financing mechanisms; and strengthen stakeholder participation in detailed planning, implementation and monitoring and evaluation.

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Corresponding to the strategies, three major types of investments are proposed. The components that fall under each investment type are summarized below with the specific ENR thematic concern being addressed. Type of Investment Natural resource management

Local socio-econ development


Proposed Components

ENR Thematic Concern

a) Protection and conservation of the closed and open canopy forests

 Forestlands management  Water resources management  Climate change mitigation

b) Rehabilitation of degraded forestlands in areas above 50% slope and above 1000 masl

 Forestlands management  Water resources management  Climate change mitigation/adaptation

c) Productive development of forest lands in areas below 50% slope and below 1000 masl

 Forestlands management  Water resource use management  Climate change mitigation/adaptation

d) Mangrove rehabilitation

 Coastal resources management

a) Improved agriculture value chains and productivity

 Water resource use management  Agricultural lands management

b) Improved road access in rural areas

 Agricultural lands management

c) Access to safe, potable water

 Water resource use management

d) Development of cultural, agriculture and nature tourism

 Forestlands management  Water resource use management  Agricultural lands management

e) Land use regulation and flood mitigation

 Disaster reduction and climate change adaptation

f) Hydropower development

 Water resource use management

g) Waste management and sanitation

 Water resource use management

a) Strengthening DRB oversight and coordination (includes policy) b) Water regulation

 Cross-cutting concerns

c) Capability building for on-site resource management and enforcement d) Database development e) Results based M and E

In keeping with the decentralized governance approach, DRB was divided into 8 sub-basins or sub-management areas (SMAs). See SMA map. Specific targets for the proposed components and the corresponding costs were determined for each SMA based on the existing conditions and needs of the particular SMA.

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Summary of Targets, Investment Requirements and Funding Sources by SMA Project/ Investment Area



GovernanceDesignated Entities

Investment Requirement (PhP Million)

Funding Sources

A. Natural Resource Management 1. Protection of closed and open canopy forest

1, 2A, 2B, 3A, 3B, 4A, 5A

33,327 ha

2. Rehabilitatio n of degraded protection forest lands (>50% slope; >1000 masl)

1, 2A, 2B, 3A, 3B, 4A, 5A, 5B

3. Productive development of forestlands <50% slope, <1000 masl

4. Mangrove rehabilitation

2,050.7 • • • •


• • • • •

DENR, LGUs LRMUs (time and labor) CSR Donors , through projects ENR-sourced funds such as PES, user’s fee, others

20,000 ha; 20,135 to 33,327/year (for protection)

• • • •


• • • • •

DENR, LGUs LRMUs (time and labor) CSR Donors, through projects ENR-sourced funds such as PES, user’s fee, others

1, 2A, 2B, 3A, 3B, 4A, 5A, 5B

17,800 ha

• • • •


• DENR, LGUs • LRMUs • Donors, through projects that support LRMUs • Private investors through joint venture or contracts with LRMUs • ENR-sourced funds such as PES, user’s fee, others


25 ha




• DENR, BFAR, Davao City LGU • Coastal communities (time and labor) • CSR • Donors, through projects

B. Local Socio-Economic Development 1. Support to agriculture dev’t

1, 2A, 2B, 3A, 3B, 4A 5A, 5B

9,061 ha

2. Cultural, nature and agricultural tourism

1, 2A, 3A, 3B, 4A, 5A, 5B

3. Road access in rural areas

1, 2A, 2B, 3A, 3B, 4A 5A, 5B



32,953.8 • • • •


• • • • • • •

LGUs LRMUs NIA DA DTI Private sector/landowners Irrigators associations for CIS maintenance


16 new tourism sites /facilities developed

• • • •


• • • • •

LGUs LRMUs DENR DOT Private sector/landowners


260 km; 28 bridges

• LGUs

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• LGUs • Donor, through projects • Landowners (right of way) 1,438.0

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Project/ Investment Area 4. Access to safe/potable water

5. Flood mitigation


GovernanceDesignated Entities

Investment Requirement (PhP Million)

Funding Sources

1, 2A, 2B, 3A, 3B, 4A 5A, 5B

205 Level 2 systems; Expanded DCWD Level 3 system


1, 5B

2 retarding basins; 1 hydromet station


1 operational hydro power plant

• Private Sector

 Private sector

2 wastewate r treatment facilities


• Davao City LGU • DENR • User fees (for O and M requirements and to recover investment costs)

6. Hydropower development


7. Waste management




• • • •

LGUs CSR Donor, through projects DCWD and joint venture partners • BAWASAs for O and M of Level 2 systems


• LGUs • DPWH 740.0


Governance and Capacity Building

1. DRBMA Activities


100.1 • • • • •


• DENR, LGUs, NCIP, MInDA • Share from ENR-sourced funds • Donor (grants)

2. DRB Coordinating Office Operations

• LGUs • DENR • MinDA

• • • •

3. Capacity building support


• DENR, LGUs, NCIP • Donor (grants) • Share from ENR-sourced revenues • Other agencies/NGOs (trainers)


4. Training for barangay leaders and LRMUs


• DENR, LGU, NCIP, DILG • Donor funds • Share from ENR-sourced revenues • Other agencies/NGOs (trainers) • Private sector (trainers)



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DENR, LGUs, NCIP, MinDA Share from ENR-sourced funds CSR funds Donor (grants)




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Map of Sub-Management Area/Sub-Basin of Davao City


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When these proposed investments are fully implemented, these biophysical benefits are expected to be realized: 1) Increase in vegetative/tree cover from 34% in 2010 to 57% by the end of the plan period (see projected vegetative cover map); 2) Increase in carbon stock of at least 21% during the 15-year period; 3) Biodiversity conservation through the increase in forest cover and improvement of habitats of wildlife; 4) Optimized use DRB’s water resources as surface water (see proposed water infrastructure map) will be put into more productive use and benefit a bigger population; 5) Healthier rivers and freshwater ecosystems because of reduced erosion, siltation and pollution, and increased dependability to provide for water needs of DRB communities; and 6) Reduced threats to coastal habitats and biodiversity in Davao Gulf.

The socioeconomic benefits will be: 1) Increased production of staple and high value crops through communal, small irrigation systems; 2) Increase and diversification of incomes, particularly of upland households and IP communities, through public and private investments (and incentives) in agriculture and tourism, and infrastructure support; 3) Preservation of indigenous knowledge and practices and improvement of their capability to plan and manage their ancestral domain; 4) Reduced vulnerability of households to natural hazards through a combination of structural and land use regulation measures; 5) Supply of wood, fuel wood and other products (rattan, bamboo) for use of households and industries; 6) Water supply to a larger population within and outside DRB. 7) Power generation using water, a renewable energy source; and 8) Peace and security as improved services and facilities, and more economic opportunities are provided to underserved communities.

These benefits are presented in a results framework and the indicators to monitor and evaluate them are shown in a logical framework. Mitigation measures are provided to reduce the risk of benefits not being achieved due to changes in the DRB’s external environment.

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Projected Vegetative Cover Map of Davao River Basin: 2029


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Proposed Water Infrastructure Map


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Three levels of hierarchal governance, leadership, and management for plan implementation are proposed: (a) at the DRB level, (b) at the implementing level, and (c) at the land and resource management level. This hierarchal system is consistent with the principle of decentralized system of governance. Proposed Governance and ENR Management Structure

Governance and ENR Mgmt at DRB Level (Councils, regional agencies, civil society, private sector) – policy formulation – investment promotion – M and E results – advocacy

DRB Management Alliance (DRBMA)

– program coordination – conflict resolution – database development

Region XI-based DRB Technical Coordinating Office

Governance and ENR Mgmt at Executing Level (LGU, field units of agencies) – implementation – field coordination – regulation and enforcement – capability building and assistance to LRMUs – M and E of operations Governance and ENR Mgmt at LRMU Level (CADT holders, tenure holders, landowners) – ENR protection, conservation, management – dev’t of prodcution areas

DENR Field Unit

NCIP Field Unit

Other NGAs Field Units

Municipality/ Brgys (Bukidnon)

City Offices/ Barangays (Davao City)

Land and Resource Management Units (CADT holders, tenure holders, landowners, other rights/permit/agreement holders)

1) Improving Governance and ENRM at the DRB Level. The DRB Management Alliance (DRBMA) will serve as the overall policy body in DRB and this will be created through a memorandum of agreement (MOA) among the councils. The DRBMA will be composed of the BWMPC, DCWMC, and DGMC. From among its key members, an Executive Committee will be formed. MinDA and NEDA X and XI will have oversight over the DRBMA. DENR and NCIP will provide technical support, with NCIP representing the interest of the CADT holders. The MOA shall clearly define the DRBMA structure, and its coordination and information sharing protocols. Upon MOA signing, the DRBMA shall formally adopt the Master Plan and create a Technical Coordinating Office based at DENR XI or at MinDA. Operational activities of the DRBMA and Technical Coordinating Office will be supported from annual

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funding allocation from Davao City LGU, Bukidnon Provincial Government, DENR X and XI, NCIP and MinDA. DENR X and XI, and NCIP X and XI shall formally confirm their commitment and direct their field units to support plan implementation. LGUs shall likewise issue resolutions or ordinances. There are four vital activities to improving DRB governance that will be spearheaded at the DRBMA level: (a) training and capacity building, (b) IEC and social marketing, (c) database management and research, and (d) M and E. Technical Working Groups may be formed to support these activities. 2) Improving Governance and ENR Management at Implementing Level. Key actors at this level are the municipal LGUs, the operating units of Davao City LGU, barangay LGUs, CENROs of DENR, and the field units of NCIP, NIA and other national agencies directly implementing national programs (e.g., DA, DoT, DTI). The strategy is for the Bukidnon PLGU to assist their municipalities and barangays while Davao City will provide assistance to its barangays. LGUs and their barangays will be coordinating closely with DENR CENROs and the field units of national agencies. The DRBMA will further decentralize DRB governance through the formation of SubManagement Area (SMA) coordinating bodies which will make sure that implementation activities are coordinated and will produce the desired results. The chair will either be the DENR-CENRO or a key officer of the LGU. 3) Improving Governance and ENR Management at the LRMU Level. On-site implementation will involve significant organizational strengthening and capacity building of LRMU managers (including CADT holders). There is need to build up their capacity to undertake ENR management practices that are consistent with indigenous knowledge, systems and practices.

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The cost breakdown by component is as follows: Summary and Distribution of Investment Requirements by Component Components Natural Resource Management (NRM) Local Socio-Economic Development (LSD) Governance TOTAL

Estimated Cost (PhP Million)

% Share









The total requirement will be financed from a mix of sources. 1) Publicly-sourced funds  General Appropriations Act (GAA) or the national budget  Internal Revenue Allotment (IRA) of LGUs, which is also sourced from the GAA  Loan and grants to the government  Corporate Social Responsibility (CSR) funds of private companies that are tax deductible  NGO funds from donors  Other similar sources 2) Private funds  Private investors  Entrepreneurs and businessmen  Private land owners  Tenure and CADT holders (including the value of their time and labor) 3) ENR-sourced funds  User’s fees/entrance fees for the use of DRB resources  Penalties and charges for non-compliance with zoning regimes and for unlawful activities  Payment for environmental services from “buyers” of DRB ecosystems goods and services. For example: Energy Regulation No. 1-94 provides that one centavo per kilowatt-hour of electricity sales will be provided to barangays, municipalities, cities, provinces and regions. Master Plan implementation will require sustained public financing throughout the 15-year period. NRM and investments in irrigation, potable water supply, farm-to-market roads and bridges, retarding basins, and wastewater treatment facilities will be covered by funds from LGUs and/or the national government. The same is true for the promotion of agricultural development and tourism, enforcement and regulation, improving local governance, and strengthening ENR management capacities.

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The hydropower and DCWD water supply system expansion have confirmed funding from the private sector. Other ventures that can be offered to private investors are nature and agricultural tourism, and crop production ventures that are competitive in the market place. Private entrepreneurs may likewise consider investing in the development of tree farms, bamboo farms, orchards and fuel wood lots in production forestlands through joint venture, contract growing or marketing agreements with CADT or tenure holders. LRMUs in public lands will cover most of the on-site cost of developing production forest lands as these will be sources of livelihoods to them. Public funding support however will be required for the protection and rehabilitation of protection forest lands and biodiversity areas as use rights on these resources will be limited. To the extent possible, opportunities to generate ENR-sourced funds will be explored especially from facilities or activities on ecotourism, small-scale quarrying, and use of production forest lands for growing high-value crops. Payment for environmental services (PES) will be sought from the operators of the hydropower plant, and other organizations that will extract surface and ground water for irrigation and industrial use.

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Of the total investment of PhP35,104.6 million, 5.8% is earmarked for protection, conservation, rehabilitation and productive development of forestlands. About 94% will promote local socio-economic development through the provision of infrastructure that will support agricultural production, water supply delivery, hydropower generation, flood mitigation and water quality improvement. Governance activities only constitute 0.3% of total investment requirements. In terms of sector, infrastructure gets almost 94% of total cost followed by agriculture and forestry (6%). Hydropower development and the expansion of DCWD’s water system together account for almost 84% of the total cost. Proposed Investments by Sub-Management Area

Sub-Management Areas 1A 2A 2B 3A 3B 4A 5A 5B

Tamusan-Nilayapan Sita-Malapangi Pangalalayan-Indang Simod-Upian Pitalong-Saldab Kulafu-Suawan Apo-Tamugan Lower Davao TOTAL

Total Investment Requirements for NRM and LSD (PhP million) 689.75 662.13 363.70 746.66 925.11 824.92 11,983.31 18,808.90 35,004.60

% Share in Total NRM

% Share in Total LSD

16.7% 24.0% 5.2% 15.2% 17.8% 13.9% 5.4% 1.8%

1.1% 0.5% 0.8% 1.3% 1.7% 1.6% 36.0% 57.0%

The 15-year plan period has been divided into three 5-year periods: short-term, mediumterm and long-term. About 82% of investments are expected to happen in the short-term. The hydropower plant, the new DCWD facilities and even the retarding basin are programmed to be constructed within the first four years. To demonstrate the economic viability of the Master Plan, the analysis looked into several investment proposals – retarding basin, irrigation, farm-to-market roads, potable water supply, hydropower, and livelihood and enterprise development projects such as orchard development, agro-forestry, tree farming, bamboo farming, and ecotourism. The economic valuation was done using “with” and “without project” scenarios. Economic analysis of these investments shows that benefits far outweigh costs. On average, the benefit-cost ratio ranges from 1.4:1 to 5:1. For every PhP1 billion worth of projects implemented in DRB, about PhP1.4 billion to PhP5 billion of economic benefits will be generated based on an economic life of 15 years and a discount rate of 15%. All infrastructure projects proposed in the Master Plan are subject to more detailed feasibility studies.

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10.0 ENVIRONMENTAL AND SOCIAL ASSESSMENT The key positive and negative environmental and social impacts of proposed investments that entail resource extraction and significant civil works were identified and recommendations and mitigation measures are provided to address the identified negative environmental and social impacts. The type of environmental clearance that may be required for specific investments based on existing guidelines of DENR-EMB are indicated. Of the proposed investments, rural road construction in critical slopes, the retarding basin and the hydropower plant will require an Environmental Impact Statement (EIS).

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