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Ex-post Evaluation

Asia

1. Outline of the project

  • Country: Philippines
  • Project title: Capacity Building Project for Environmental Management in Mining
  • Issue/Sector: Mining/environment
  • Cooperation scheme: Project Type Technical Cooperation (PTTC)
  • Division in charge: Second Technical Cooperation Division, Mining and Industrial Development Study Department
  • Total cost: 504 million Yen
  • Period of Cooperation
    1 July 1999- 30 June 2002 (R/D)
  • Partner Country's Implementing Organization: Mines and Geo-Sciences Bureau, Department of Environment and Natural Resources (MGB-DENR)
  • Supporting organization in Japan:
  • Related cooperation:

1.1 Background of the project

In an attempt to address the frequent occurrence of mining accidents, the Government of the Philippines, in the 1990s, gave utmost priority to environmental management including the adoption of measures to address problems related to environmental pollution. Such measures included the passing into law of the Philippine Mining Act in 1995 (Republic Act No. 7942), which, among others, effectively transformed the MGB into a line bureau of the DENR, and the signing of a Memorandum of Agreement (MOA) between the MGB and the EMB (Environmental Management Bureau) in 1998 that provided MGB higher levels of authority in terms of mine environmental regulation and monitoring. Mine environmental management was then highlighted in the Medium-Term Philippine Development Plan (MTPD) 1992-1998 and even in the "Philippines 2000 plan" that envisioned Philippines as one of the newly industrializing countries (NIC) in Asia in the 21st century.

However, the knowledge and techniques available at the government through the MGB in preventing environmental pollution particularly in the fields of environmental assessment and monitoring of pollution in mining industries were insufficient. Recognizing this limitation and the urgency of acquiring such capacity, JICA dispatched a study team in October 1998 and January 1999 to conduct discussions with Philippine authorities about possibilities of technical cooperation. In March 1999, the GOP made an official request to the Government of Japan (GOJ) for a technical cooperation to implement a 3-year Capacity Building Project for Environmental Management in Mining. In response to the request, the GOJ, through JICA, dispatched an Implementation Design Study team in May 1999, through which the Records of Discussion (R/D) about the implementation of the project cooperation was produced and signed by both the GOP and GOJ authorities. The technical cooperation project commenced in July 1999 and ended in June 2002. A Mid-Term Evaluation study was conducted in February 2001, while the Terminal Evaluation study was carried out in April 2002.

This Ex-post evaluation study is conducted to determine impact and sustainability of the project as well as extract lessons from the project cooperation and formulate recommendations to improve planning and implementation of similar projects in the future.

1.2 Project overview

The project cooperation was aimed at transferring necessary techniques in order for MGB to develop human resources needed for mine environmental management in the field of water and soil pollution caused by mining activities

(1) Overall goal

The capacity of MGB (central and all Regional offices) in mine environmental management in the field of water and soil pollution caused by mining activities will be enhanced.

(2) Project purpose

The staff for mine environmental management in the field of water and soil pollution caused by mining activities will be fostered at MGB.

(3) Outputs

0) The management system of the project will be established
1) The operation and maintenance of the machinery and equipment used for chemical analysis, measurements and experiments will be undertaken by the technical staff of MGB (central office)
2) MGB's functions of mine environmental monitoring in the field of water and soil pollution will be strengthened
3) MGB's functions of evaluation for the environmental management technologies in the field of soil and water pollution will be strengthened
4) MGB's function of evaluation on the environmental assessment impact report will be strengthened
5) MGB's function of staff training in the field of mine environmental management will be strengthened

(4) Inputs

Japanese side:
Long-term experts5 Equipment 180 million Yen
Short-term experts 13Local cost 24 million Yen
Trainees received in Japan8Others-
Philippine side:
Assignment of counterparts23
Land and facilities-
Equipment 5 million Yen
Local Cost 87million Yen

2. Evaluation Team

Members of evaluation team
JICA-Philippines office
Commissioned to Center for Local Development Studies (CLDS)
JICA In-house Consultants providing technical guidance and supervision to the study: Engr Nick Baoy & Engr Rey Gerona
Period of evaluation:
October 24, 2005 to December 22, 2005
Type of evaluation:
Ex-Post Evaluation

3. Results of evaluation

3.1 Summary of evaluation results

(1) Impact

The project contributed to the enhancement of the capacity of MGB for mine environmental management. At the staff level, the additional knowledge and skills gained by project counterparts from the intensive trainings (e.g., on-the-job coaching by Japanese experts, in-country seminars and counterpart training in Japan) conducted during the project improved the capability and boosted the confidence of MGB staff in performing mine environmental management functions including mine environmental monitoring, evaluation of environmental management technologies and evaluation of environmental impact assessment reports on mine projects. Apart from skills improvement, the state-of the-art equipment provided by the project enhanced the capacity of MGB Central Office to conduct environmental chemical analysis and field monitoring of mine environments. Non-project counterparts based in the MGB-CO, on the other hand, benefited from the project through on-the-job coaching by former project counterparts. Moreover, the techniques learned from the project by former project counterparts have been useful in such other works as geo-hazard mapping, geological assessment of solid waste disposal sites and water quality assessments of river systems.

At the organizational level, the project contributed in enhancing the credibility and reputation of MGB in the field of mine environmental management. For instance, ASEAN counterparts have started to recognize the Philippines as a "knowledge base" in the field of mine environmental management. In August 2005, the Philippines signed an agreement with Malaysia regarding continued linkage of human resource development efforts in mine environmental management. Moreover, some donors such as UNDP, Swedish International Development Agency (SIDA) and the Netherlands Government have provided grants to MGB for the development and conduct of trainings related mine environmental management after the project cooperation ended in 2002. The expected impact at the MGB Regional Offices, however, remains limited owing to the agency's poor financial capacity to conduct trainings for the regional staff and upgrade the facilities and equipment of regional offices for mine environmental management. There was no negative impact generated by the project after completion.

(1) Sustainability

Institutional

The institutional sustainability of the project is secured as the MGB remains as the primary government agency mandated to perform mine environmental management functions in the country. The MGB's role in mine environmental management is further secured by the Philippine Mining Act of 1995 which mandates MGB to "manage, administer, and promote responsible exploration, development, utilization and conservation of the country's mineral lands and resources." The present MGB organizational structures of the Central and Regional offices have two divisions, namely: the Mining Environment and Safety Division and Mining Technology Division, directly responsible for mine environmental management. Both divisions have sustained the project activities after the technical cooperation ended in 2002. Out of the 33 former project counterparts, 28 remain working with MGB and continue to be directly involved in sustaining project activities. Moreover, the institutional mechanisms (e.g., Multipartite Monitoring Team or MMT and Mine Rehabilitation Fund Committee or MRFC) provided for by the Philippine Mining Act of 1995 are in place. These inter-agency bodies, composed of representatives of the MGB, Local Government Units (LGUs), non-government organizations (NGOs) and mining companies, are formed in each mining project to ensure compliance to environmental protection objectives by mining companies. MGB, however, needs to strengthen its partnership with LGUs and NGOs for the latter to be able to independently perform mine environment monitoring functions at the local level.

Technical

The technical sustainability aspect of the project is likewise secured. Except for those 5 who resigned or retired from government service, all 28 former project counterparts including the pool of technical trainers formed during the project continue to work on mine environmental management at the MGB. Former project counterparts are able to apply the skills they have acquired through the project not only in their mine environmental management functions but also in other fields such as geo-hazard mapping, water quality assessment of river systems, among others. Although the MGB failed to fully implement its long-term staff development program and was able to conduct only one (1) seminar-workshop after the project cooperation, the former project counterparts were able to upgrade their skills acquired by attending symposiums/seminars, learning from colleagues, learning on the job and reviewing technical literature. Proper O&M is being provided by MGB to the donated equipment However, due to financial constraints, the MGB was not able to upgrade the equipment of its regional offices.

Financial

The MGB's budget for performing its regular mine environmental management functions is secured through the annual allocations received from the government which amounts to about 403 million pesos. While about 75 percent of its budget goes to personnel salaries and only 25 percent is available for maintenance and other operating expenses (MOOE), MGB is able to conduct its mine environmental management functions through funding mechanisms prescribed by the Mining Act of 1995. These funding mechanisms which include the Mine Rehabilitation Fund (MRF) and the Monitoring Trust Fund (MTF) have been institutionalized and have supplemented the limited MOOE budget of the MGB.

Due to the financial constraints faced by the Philippine government, MGB was not able to secure funds for the conduct of training and seminars for the MGB Regional staff and purchase of monitoring and laboratory equipment for MGB Regional offices. Although there is no budget allocated for capital outlay (or for the purchase of new equipment), the budget for the maintenance of existing equipment is fairly adequate. The MGB generates an average income of 70 million pesos every year from royalties and other fees from mining companies. However, this income is, by law, directly remitted to the national treasury (Bureau of Treasury of the Department of Finance).

Recognizing MGB's role and expertise in mine environmental management, the UNDP provided grants to intensify information campaign on proper mine environmental management practices and to develop training programs related to mine environmental monitoring suited for the local governments. The Swedish government (through the SIDA) likewise invited MGB to deliver lectures on mine environmental management in Sweden. In addition, the World Bank is presently discussing with MGB possibilities of financial cooperation in the future.

3.2 Factors that have promoted the project

(1) Impact

The shift in government policy from "tolerance to active promotion" of the mining sector and the recent decision of the Supreme Court upholding the constitutionality of the Mining Act of 1995 brought about a significant increase in mining investments in 2005. Given this positive development in the mining industry, enhancement of mine environmental management capacity becomes more relevant as MGB central and regional offices will have to cope with increased demand for monitoring and evaluation of environmental plans of mining investors. In addition, the continued employment of former project counterparts trained by the project to act as trainers on mine environmental management for MGB regional staff is a key factor that will promote the achievement of the goal of enhancing the capacity of MGB central and regional offices on mine environmental management.

(2) Sustainability

The sustained support by Government and the mining industry to the mine environmental policy defined by the Mining Act of 1995 has highlighted the need for MGB to strengthen its capacity for mine environmental management. Such support is manifested by the sustained budgetary support to MGB by the Government and compliance by mining companies to the rules and regulations of the Mining Act. Moreover, 28 out of the 33 former project counterparts remain working with MGB and continue to practice the knowledge and skills learned through the project. All the 8 project counterparts trained in Japan during the project cooperation remain working with MGB.

3.3 Factors that have inhibited the project

The inability of the MGB to fully implement the long-term training program for regional staff and the equipment upgrading program for the regional offices owing to budgetary constraints is impeding the impact and sustainability of the project. Staff development training and equipment upgrading are essential requirements for enhancing the capacity of MGB in mine environmental management in the field of water and soil pollution.

3.4 Conclusion

The project has generated positive impacts particularly on the capacity of the MGB Central Office for mine environmental management. Because of the equipment and skills transfer provided by the project, the capability of MGB Central Office to perform mine environmental management particularly in the field of mine environmental monitoring and chemical analysis, evaluation of mine environmental technologies, evaluation of environmental impact assessment reports, has been strengthened. Impact generated by the project in the MGB regional offices is by far limited on account of the MGB's inability to fully implement the programs for staff development and equipment upgrading envisioned by the project for the MGB regional offices. The continued support by the government and the mining industry to the mine environmental policy defined by the Mining Act of 1995 and related laws and the recent increase in mining investments brought about by the active promotion by government of the minerals industry are contributory factors to the sustainability of the project. The MGB, however, needs to improve its financial capacity to implement staff development program and acquire needed equipment for its regional offices to sustain the effects of the project.

3.5 Recommendations

To GOP-MGB

(i) Given its budgetary limitations, MGB needs to tap external financial resources to be able to implement the staff development and equipment upgrading programs for the regional offices. In line with this, MGB may need to explore ways of utilizing the funds available through the Contingency Liability and Rehabilitation Fund (CLRF), Mine Waste and Tailings Fees Reserve Fund (MWTRF) and Mine Rehabilitation Fund (MRF). In addition, MGB should prepare a financial plan for the capacity building program for its regional offices and identify which components of the program will be financed by external resources.

(ii) To ensure that mining companies comply with environmental safety standards, future capacity building plans of MGB should include review and updating of existing protocols for mine environmental management in response to the more advanced technologies being adopted in the mining industry.

(iii) MGB needs to strengthen its partnership with other government agencies and the private sector considering that mine environmental management is an enormous task. Specifically, more active involvement of LGUs and the private sector including NGOs in the review and monitoring of environmental protection plans should be encouraged. In this regard, a capacity building program for LGUs and NGOs aimed at developing mine environmental monitoring skills of concerned LGU/NGO staff is necessary.

To GOJ-JICA

(i) To further enhance project sustainability, JICA may consider providing follow-up support to capacity building plans of MGB for its regional offices through its existing assistance schemes such as In-Country Training Program (ICTP), follow-up support for ex-training participants, etc.;

(ii) JICA may also consider dispatching a Japanese expert to assist MGB in the review and development of mine environmental management protocols that can respond to advanced mining technologies being introduced by foreign mining investors.

3.6 Lessons learned

(i) Appropriate selection of equipment to be provided under the project and special importance given to training of counterparts on the O&M of equipment have resulted in effective management of equipment O&M after the technical cooperation. In this project, proper consultations with concerned MGB counterparts were made for the selection and procurement of equipment.

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