TOWARDS CLIMATE-RESILIENCE AND SUSTAINABLE …

LAGUNA DE BAY BASIN

MASTER PLAN : 2016 AND BEYOND

TOWARDS CLIMATE-RESILIENCE

AND SUSTAINABLE DEVELOPMENT

- F INAL REPORT –

December 2015

LAGUNA LAKE DEVELOPMENT AUTHORITY

Laguna de Bay Basin Master Plan: 2016 and Beyond Towards Climate Resilience and Sustainable Development

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EXECUTIVE SUMMARY

1. Background. Laguna Lake (or, Laguna de Bay) is the largest lake in the Philippines and one of the largest in Southeast Asia. In view of its multiplicity of uses and benefits, its basin (or region) is the most important, dynamic and among the fastest growing economic bases in the country. It has become the catch basin to Metro Manila’s population and urbanization/industrialization over-spill. As the region has developed, the lake has suffered increasing levels of agricultural, industrial and domestic wastewater pollution. The possible consequences of the rapid swelling of population include food and water shortage, worsening traffic congestion and environmental degradation, thus significantly affecting Laguna de Bay and its environs.

2. Rationale. Programs and projects under the 1995 Laguna de Bay Master Plan

have been mainstreamed in the LLDA portfolio, some of which are pioneering and tested in the Laguna de Bay Region, such as the Environmental User Fee System (EUFS), Laguna de Bay Institutional Strengthening and Community Participation (LISCOP) Project, River Rehabilitation Program, Zoning and Management Plan (ZOMAP) and Laguna de Bay Carbonshed Project, among others. These have been funded by a combination of corporate funds, user fees (fishpens/fishcage fees, water abstraction fees), regulatory fees, national government funds through the General Appropriations Act (GAA), loans contracted by the National Government, and technical assistance grants.

3. Past and Recent Efforts on Plan Updating. After 20 years since the master plan was put in place, efforts to update this plan were exhibited through the following initiatives:

Development of the Framework for the New Laguna de Bay Master Plan: “Laguna de Bay Basin 2020”: focus on the following tasks: (i) paradigm shift to strengthen LLDA’s regulatory mandate and intensify implementation of big-ticket programs and projects to push economic growth and sustainable development; (ii) financing new programs/projects following PPP approach; and (iii) climate proofing the lake basin. It contains initial strategies to harness the economic potentials of the Basin to ensure sustainable use of the Lake and its resources.

Formulation of the Spatial Development Master Plan (SDMP) for the Laguna de Bay Basin: Land and Water Use and Physical Development Plan 2011-2020: translates/elaborates the Framework plan consisting of spatial and non-spatial broad-based strategic policy and program directions towards the reconfiguration of the development and management of the Laguna de Bay Basin that will address existing and emerging natural resource challenges and other issues such as climate change, disaster reduction, among others. SDMP embodies several programs and projects, with project briefs to be funded through the GAA, corporate funds, loans and grants, PPP, purely private initiatives with public incentives and market-based instruments such as user fees.

4. Attributes/ Justification for Plan Updating. The three (3) attributes as rationale for the current plan updating are: (i) environment and health risks that are posed to the citizens


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living in the basin particularly that segment of the population that are highly vulnerable to poor environmental quality; (ii) institutional capacity challenges in balancing the wide range of demanding interests and the supplying capacities; and (iii) lack of mechanisms and capacities for development of environmental and water-related infrastructure that are imperatives for sustainable water resources development.

5. Current Plan Updating in Relation to Previous Efforts. The current efforts represent a more strategic and cohesive approach to harmonize past and recent outputs and review, update and/or confirm the most recent (2011) spatial development plan, which was not officially adopted by LLDA, to coherently state the desired future development of the lake basin. Hence, in order to build technical capacity and ownership of the basin plan, the LLDA opted to create an in-house Technical Working Group (TWG) for the formulation of a master plan by virtue of Memorandum Order No. 2015-46 dated July 7, 2015 to produce this Laguna de Bay Basin Development Plan 2016-2026. The updated master plan will integrate basin-scale strategic policies, program/project concepts towards the development of a set of more detailed sub-basin or thematic plans in the coming year (2016 and beyond), possibly leading to a full-blown Laguna de Bay Master Plan in the medium to long-term period.

6. Planning Unit. The Laguna de Bay Basin refers to the

“hydrological/geographical” boundaries with 2,920 km2 area, or simply defined by

the ridges from where water flows into the Lake. The basin includes 24 river

basins that contribute to the water flowing to the lake. On the other hand, Laguna

de Bay Region as defined by R.A. 4580 as amended describes the administrative

boundaries or the mandated jurisdiction of the LLDA with 3,880 km2, based on

administrative boundaries of cities and municipalities. The administrative region is

substantially larger than the basin. The LLDA has the mandate to govern land and

water uses in the overall Laguna de Bay Region. Hence, the planning unit for this

Master Plan updating is the Laguna de Bay Region. For purposes of this plan

updating, the terminologies “basin” and “region” are used interchangeably.

7. The Laguna de Bay Basin Updated Master Plan Framework adopts the Integrated Lake Basin Management (ILBM) which is a form of Integrated Water Resource Management focused on lentic water systems (World Bank 2009, Nakamura 2007).

8. From the long list of issues and problems discussed in detail in Chapter 3, the

following were prioritized as most critical for basin authorities to address given the influence and control of contributing factors, impact on the lake, and urgency:

Pollution and waste primarily from domestic and agricultural sources

Multiple and often conflicting water uses

Vulnerability of lakeshore settlements and developments to flood hazards and related health and economic risks, and indecision over resettlement

Poorly regulated developments on the shoreland, and critical watersheds inclusive of tenurial constraints, database management and monitoring

Fragmented utility infrastructure developments, including siting and development regulations of these investments

Absence of critical collaboration among ENR authorities on highly-stressed ecosystems within the lake basin


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Limited financing of conservation and regulatory programs/projects

Need for lake-sensitive economic opportunities to expand livelihood opportunities

The “WHAT? SO WHAT? IF NOT, THEN WHAT?” Matrix summarizes these key issues which are discussed in greater detail in Annex 2.

9. Recommended Medium-Term Development Directions. Based on the complexity of issues across the management continuum in Laguna de Bay Basin and sectoral concerns throughout these ecosystems, there is a need to focus interventions on these key issues in the medium term.

The recommended medium-term development directions are the following:

a) Intensify waste and pollution control towards through adaptive waste management systems primarily for domestic and agricultural sources;

b) Rationalize water use zoning to harmonize all uses within the lake including navigation and water-related waste management infrastructure;

c) Promote security of lakeshore communities from flooding, health risks and minimize

d) economic displacement through effective flood control programs and appropriate resettlement plans;

e) Rationalize watershed- and shoreland-specific management policies based on validated threshold and vulnerability to sustain their ecological functions focused on incentive-based regulations and adaptive co-management systems;

f) Rationalize service and infrastructure-based network support for environmental management and sustainable economic uses of lake basin resources;

g) Rationalize ecotourism potential as development driver and promote lake-sensitive eco-tourism developments; and

h) Adopt of innovative financing schemes beyond regulatory fee collection maximizing

i) Market-based instruments and PPP schemes.

10. Recommended Long-Term Development Directions. In the long-term, there is a need to expand development directions in order to:

a) Improve ecosystem-based performance monitoring and data management; b) Intensify community-based and incentive-focused waste management systems

for lakeshore settlements; c) Upgrade quality control for lake water suited as source of freshwater of the region and d) parts of Metro Manila;


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e) Promote adaptive co-management systems on critical areas in the shoreland consistent with rationalized water use zoning;

f) Create opportunities for sustainable livelihoods through PPP schemes suited for lakeshore and upland communities;

g) Intensify development and use regulations for highly extractive economic activities with primary focus on restoration costs;

h) Pursue measures that will create buy-in culture for critical environmental protection i) and regulation policies; j) Adopt measures that will create buy-in culture for critical environmental protection

and regulation policies; k) Comprehensive and continuing retooling of LLDA personnel; and l) Promote PPP as a means of financing major investment programs and projects.

10. Future Trends and Scenarios. Over 14.6 million people are the users of the

invaluable resources in the region, about 3.35 million of them live in lakeshore communities. In addition to uses that serve such common good purposes as irrigation, drinking water, fisheries, recreational, and navigation, the Lake serves another but most controversial purpose, a recipient of waste. The industries, businesses, and households in the region continue to use the Lake and its tributaries as bodies of water for open extraction and for waste disposal, almost indiscriminately. The trend of population migration, industrialization, and urbanization certainly is not toward moving away from the Lake and its watershed. Rather, it is anticipated that the region with face more relocation within the watershed system in the form of land reclamation and increased development activities (including agricultural) in the uplands of the Lake watershed. The proximity of the Lake and its watershed to Metro Manila and the growing industrial development in Laguna, Cavite, Batangas, and Quezon have and will exacerbate the pressure on this delicate ecosystem.

The Laguna de Bay Basin will continue to play a significant role in the country’s economic development, considering its strategic location, resource endowments particularly the lake providing an enormous resource base. The following are the future trends/ scenarios and the remaining development challenges that need to be confronted in the lake basin. Therefore, they should be considered in the plan updating.

Land cover changes/loss of forest cover

Continuing rapid urbanization and industrialization

Informal Settlements Along River Banks and Lake Riparian Environment

Development of major infrastructure projects with significant impacts to the lake basin ecosystem

While these proposed projects are yet subject to feasibility studies and detailed

engineering design during the plan period, it is important to take the perspective of

the lake basin ecological implications therein and to actively engage the stakeholders,

including LLDA and its partners, in an open and transparent consultation process. It

is anticipated that the these projects will impact on the more sensitive areas of the

basin, e.g., the buffer zone, the lake water resources itself, and to the fishery and

agriculture sector, water supply and sanitation sector, among others. These projects

will intensify the role of LLDA to rehabilitate, protect and conserve the basin

resources. Therefore, this basin master plan and its policies and strategies should


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guide the proponents of such infrastructure projects and should drive their design

elements, rather than these projects dictating the nature and scope of the basin plan.

11. Overall Development Framework: The 2016-2026 Laguna de Bay Master Plan

Development Framework. Building on RBM but amplifying it using other ecosystem-based frameworks such as watershed management, integrated water resources management (IWRM), ILBM has converged these approaches in an integrated fashion. The modified ILBM for Laguna de Bay Basin highlights the principles of implementability or attainability; sustainability; quality of life; comprehensiveness and interconnectedness; and evidence-based/technology-adaptive (Laguna de Bay Basin Spatial Development Master Plan, 2011).

The updated basin plan sets the key development directions from 2016-2026 whose goal focuses on the integration of human and natural environment, so that the lake basin can perform its four-fold functions (provisioning, regulating, supporting and nurturing) leading towards sustainable development and management of the basin.

Vision 2026 for Laguna de Bay Basin

“Isang masagana at buhay na lawa, na may likas-kayang pag-unlad para sa higit na kapakina-bangan ng lahat ng hanay ng lipunan sa rehiyon ng Lawa ng Laguna”

“An abundant, living, and sustainably-developed lake that optimally benefits all sectors of society in the Laguna Lake Basin”

In the workshop that ensued in May 2015, the LLDA Management Team headed by Secretary J.R. Nereus O. Acosta formulated the formal Board-approved vision and mission statements to a resonant, concise, easily recalled translation (including a vernacular) which can relate to all sectors/stakeholders, and authentically meaningful and truly reflective of their aspirations, as follows (Sec. Acosta, August 3, 2015): This vision is notable as it implies sustainability (likas-kayang pag-unlad) based on best use of lake resources for optimum benefit (higit na kapakinabangan) of all users/stakeholders across the region or basin (implying multi-stakeholder, multi-use and multi-functionality). It places a focus on sustainable development denoting a balance between economic development and environmental management (masagana at buhay na lawa). The simplified vision and mission statements, affirmed by stakeholders on September 11, 2015 during the consultation workshop, as part of the planning process, has been translated into the planning goals and objectives of the updated planIn May 2015, the LLDA Management together with its internal stakeholders (officials and staff) revisited the formal framing of the LLDA vision and mission that was approved by LLDA Board in 2011, which states “By 2020, the Laguna de Bay Basin has been transformed as the focal center for sustainable development through sound ecological governance.” LLDA Institutional Vision: Quality Management System for LLDA The LLDA has engaged the services of the Development Academy of the Philippines to put in place a duly accredited Quality Management System (http://www.llda.gov.ph/index.php?option=com_content&view=article&id=600&Itemid=1067). This initiative has a long-standing intention, being a component of the institutional re-engineering of the LLDA.


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Under this initiative, the LLDA came up with its Institutional Vision/ Quality Policy, stating that:

As the only lake basin Authority in the country and a member of the International Living Lakes Network, we commit to: Lead the sustainable development in the Laguna de Bay Region through effective and strict enforcement of water resources management laws; Lead and continually improve our service delivery systems based on a certified quality management system for the satisfaction and trust of our stakeholders; Develop and implement empirically-driven and science-based processes and decisions; Adhere to legal requirements and other policies that serve to maintain the highest standards of the civil service. “Ibalik ang Diwa ng Lawa”

To achieve its vision/mission and exhibiting its core values (love of the environment, leadership/professionalism, disciplined and science-driven, adaptability and innovativeness. Attaining this will adopt a process flow model (shown below) that is depicted in a spherical form to represent dynamism, linkages and interactions among the different units, and the continuity of operations

Process Flow model

This process flow will have significant contribution to make an effective and dynamic lake management institution in terms of integrated approaches, stakeholder engagement, partnership building, planning and implementation.

LLDA Mission

Based on its legal mandate and functions as enunciated in its Charter (R.A. 4850 as amended by P.D. 813 and E.O. 927), and cognizant of the current and future conditions and trends, the LLDA mission is:


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To catalyze a climate change-sensitive Integrated Water Resource Management in the Laguna de Bay Region, with clear focus on preserving ecological integrity and promoting sustainable economic growth.

This mission is noteworthy for the following reasons: (i) it aims to strike a balance between environmental sustainability and biodiversity conservation on one hand, and economic development and resource utilization on the other hand; (ii) it puts into action the principles of integrated water resources management that spouse multi-functionality of resources requiring multi-disciplinary approaches, stakeholder engagement in conflict resolution and decision making, and sustainable development; and (iii) it seeks to optimize the use of natural resources to generate the greatest good for the greatest number, and attain sustainable development; and finally, (iv) it brings the LLDA into focus as a catalyst in translating the vision into actions in ways that are climate sensitive.

12. Management Areas. Translating the lake basin vision into planning goals, and in consonance with the LLDA’s institutional vision, management of “ecological system” serves as the integrating element as ecosystems are both sources of environmental goods and services as well as loci of natural relationships in the lake basin (SDMP, 2011). Called “management areas” by law, they are the key result areas to assess efficacy and efficiency of management interventions. These are:

Watershed Management Area

Lake and River Systems Management Area

Shoreland Management Area Translated into schematics, the vision for the Laguna de Bay Basin is stated as follows:

Vision for the Laguna de Bay Basin


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13.Laguna de Bay Basin Strategic Planning Areas. The vision and objectives of the Laguna de Bay Basin Master Plan are cross-cutting outcomes. Implementation of these outcomes will require actions across different areas.

Four planning systems in the Laguna de Bay Basin

The scope of the strategic policy areas/ planning systems is described below.

Basin Planning Area/System Focus

Protection and conservation system

Hydro-ecological system of the water resources and natural assets, including protection of the aquatic ecosystem health, water quality fitted for abstraction of lake and river water for different uses, and areas declared protected by existing laws and needing proactive conservation measures.

Lake and river water use and development system

Water use systems, water infrastructure, particularly around abstraction, storage or regulation of basin water resources for economic or social development.

Disaster risk reduction management system

Impacts associated with flooding, pollution incidents, and other extreme events

Institutional management system

Strengthening basin management and institutional arrangements, sustainable financing, improvement of laws and regulations, monitoring/surveillance and enforcement.

However, this plan recognizes that there are many overlaps and linkages between systems. For example, institutional management and the relevant aspects of disaster management are present in all strategic areas. These strategic areas bridge the broad vision to more concrete measures, objectives and actions which will ultimately contribute towards achieving the vision. 14. Overall Basin Management Strategies The plan acknowledges that the lake and its drainage basin, including its inflowing and outflowing tributaries, are parts of an inseparable ecosystem. Lake degradation largely originates from its drainage basin, mostly the result of human activities within the basin. Lake management, therefore, should best focus on the scale of the drainage basin,


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effectively integrating hydrological and ecological processes, as well as socioeconomic realities. From the core issues, the following overall goals were formulated with stakeholders participation: 1. Rehabilitate the Laguna de Bay Basin (i.e., watershed, shoreland, and

lake); 2. Rationalize water uses; and 3. Harness the lake basin as a high-value resource for broad-based development.

The general approach to attain these goals is through co-management among stakeholders of the Laguna de Bay Basin, through collaborative measures and partnerships, including public-private initiatives for both hard (infrastructure) and soft interventions. 15. Strategic Policy Areas. The following are the strategic policy planning areas:

a) Protection/Conservation b) Rehabilitation c) Lake-sensitive development

It is significant to note that the Laguna de Bay Basin has been considered one of the most

vulnerable in the country due to climate variability and water-related disasters (PDNA, 2009).

This has profound impact to the nature of the basin plan and its focus policy areas. This has

made the entire basin as a climate-vulnerable area requiring more expansive and more

intense rehabilitation work. Therefore, policy area for rehabilitation and protection is more

vast, Therefore, the role of LLDA will be more rehabilitative and protective while its

development efforts would primarily have lake-sensitive orientation and geared towards

supporting rehabilitation and protection/ conservation.

Map of the Proposed Laguna de Bay Basin Strategic Planning Areas


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The following presents the scope of the policy areas:

The Scope of Strategic Environmental Policy Areas in Laguna de Bay Basin

The management strategies focus on “protection and conservation,’ “rehabilitation,” and “development” in relation with the core issues in the Laguna de Bay Basin are shown in the following table.

The Core Issues and the Management Strategies in the Laguna de Bay Basin

Core Issues Protection/ Conservation

Rehabilitation Development

Deterioration of water quality

Conflicting uses of water

Denudation of the watershed

Flooding in low-lying areas

Vulnerable lakeshore Settlements

Limited access to economic Opportunities

These management strategies are not mutually exclusive. Core issues can have two or three spatial management strategies. The strategies can be implemented in phases. Core issues for rehabilitation can be addressed in 3-5 years. However, they can be placed for protection/conservation after the management areas have been rehabilitated.


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The specific strategy for conservation seeks to preserve ‘critical areas’ for their vital functions, as follows: 1) critical watersheds; 2) critical river systems; 3) critical water zones on the lake; and 4) critical shoreland areas. These are called “Protection/Conservation Zones”.

The specific strategy for rehabilitation focuses on mitigating damage to degraded sections of ecosystems. These areas are labeled as “Areas Needing Special Protection”: 1) denuded forestland; 2) encroached shoreland; 3) areas with high rate of erosion; 4) areas with large volume of solid and liquid waste; 5) lakeshore areas subject to flooding; and 5) lake areas with ‘shallow depth’ due to sedimentation/siltation.

The developmental strategy is geared towards stimulating economic growth in territories in need of it. The “Areas for Sustainable Economic Support” are mostly located in the eastern side of the lake basin. Progress in these sections can contribute to balanced population distribution in the bigger region by attracting residents from congested urban communities. The stimulus for growth can be found in sustainable tourism (quinary sector), agriculture and fisheries (primary sector), and in connection with the Los Baños science and technology complex as well as the Calamba regional manufacturing zone, even information-based industries or BPO services of the quaternary sector.

Among the management strategies for these areas include the following:

Protection/Conservation:

1) Intensify protection of remaining lake basin resources to prevent degradation.

Rehabilitation:

1) Improve lake water quality through an integrated network of environmental measures including engineered wetland systems;

2) Abate denudation in critical watersheds; 3) Mitigate impacts of flooding and climate-induced hazards through

sustainable infrastructure and non-infrastructure interventions; and 4) Reduce vulnerability of the lakeshore communities and model sustainable settlements

Lake-Sensitive Development:

1) Rationalize lake water uses; 2) Set higher environmental standards for development activities to promote ecologically-

sensitive land resource uses; 3) Demonstrate lake-sensitive economic ventures through innovative investments; and 4) Harness LDB water and land resources as sustainable economic assets through co-

management and citizen-based strategies. .

16. Alignment Within Relevant Sectors/Within Development Planning Horizontal and Vertical Alignment. Because of the increasing pressure on the lake’s resources, its water has taken increasing importance across different development priorities.


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In fact, its water resources has been considered as a catalyst of social and economic development not only of the basin itself but of the country as well, and at the same time a building block of environmental sustainability. The Laguna de Bay Basin Planning expects to contribute to broader social, economic and environmental goals at the national, regional (CALABARZON) and river basin levels. The lake basin plan sets out the key management objectives at lake basin scale, and acts as a point of integration for those national and regional plans. The basin plan shall sit within the hierarchy of planning from national to local levels (Figure 5.7.2-a). Therefore, horizontal alignment of the plan with development planning dealing with different development issues within the updated LdBR master plan is crucial. The current plan gives way to this alignment. Further, the planning process for the updating of the Laguna de Bay basin master plan ensures vertical alignment of the plan within relevant sectors, e.g., environment and water sectors, across different scales (national, regional/basin, and local. Such alignment contributes to making the plan coherent and contributing to broader economic and environmental goals and objectives. The updated master plan vision, objectives and actions are consistent with and give effect to the national policies, strategic directions (MTPDP 2011-2016 of the Aquino Administration, the Regional Development Report Results Matrices (RDR-RM) in same stated year, the National Water Strategy, etc.). Insofar as plans at regional, provincial and local levels, the LdBR Master Plan includes those which implement key aspects of the basin strategies. On the plans/programs/projects of other agencies, the LLDA updated master includes the different master plans of government agencies for the region such as those of NEDA IV-A (CALABARZON Regional Development Plan), DPWH (NSSWMP and Flood Control Master Plan for Metro Manila), MMDA (Metro Manila Development Master Plan) as well as the Comprehensive Land Use Plan (CLUPs) and Development Plans of the Local Government Units. Strong representation by LLDA should be given to make sure its master plan programs/projects are considered in their master plans. How horizontal and vertical alignment is achieved within the lake basin plan is shown below:


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Nesting Within Basin Plan The lake basin plan sets its objectives and actions that will be implemented through more detailed strategic plans developed on a sub-basin scale or thematic plans. As presented in Chapter 1, it is the strategic intent to make the updated master plan to be an “umbrella” basin plan to be translated at a later point in time during the plan period, into more detailed sub-basin or thematic plans. The strategies and actions translated into programs and projects in Chapter 7 are those which address/have basin-scale needs/ impacts and categorized as urgent.

Nesting National, Regional and Local Plans/Policies/Strategies

Within the Laguna de Bay Basin Plan Indicative Thematic/ Sub-Basin Plans. The thematic plans may include plans related to rehabilitation, protection/conservation, and lake-sensitive development, disaster risk management and institutional development aspects of the basin plan. Certain aspects of these thematic plans have been brought into the strategies within the basin plan, but will need to be translated into more specific and detailed plans. Similarly, sub-basin plans should provide strategic objectives and actions for river basin management, dealing with issues that require attention at a river basin scale, including environmental targets and/or river water quality objectives, and infrastructure development to address climate change impacts in the basin. Sub-basin plans may include institutionalization of sub-WQMA in each of the 24 sub-basins and the concomitant river basin management plans, among others.

16.General Land and Water Use Plan. Shown in Figure 5.8-a is the existing general land use and water use plan of the Laguna de Bay Basin, derived mainly on the basis of land suitability analysis. The land suitability of the lake basin was analyzed based on slope, soil and elevation. Thus, it can be seen that

One-third (70,065 hectares) of the land area of the basin is suitable for urban use and these can be seen mainly in the northwestern and southeastern sections of the basin.

Rehabilitate the Lake Basin


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A fairly large strip can be seen in the southeastern part of the basin. This urbanizable area with the slopes of less than 18 percent and elevations below 500 meters above mean sea level can be used as expansion area for light industrial, commercial, residential, and institutional land use activities.

Close to a third (66,109 hectares) of the study area is suitable for agriculture and this can be seen mostly in the eastern half of the basin in the towns of Laguna province

Production forest (69,071 hectares) with slopes of 18% to 50% and elevations ranging from 500 meters to 1000 meters above mean sea level is distributed mostly in the eastern half and southwestern section of the basin.

The map further shows the protected shoreland area surrounding the lake. This is the part of the land adjacent to the lake which is alternately covered and left dry by the rising and ebbing of the lake’s water level as caused either by the amount of rainfall or by the tidal cycle. The shoreland area also includes the salvage buffer zone of 3 meters measured from the high-water mark of the lake. The whole surrounding strip of foreshore land is an ecologically-fragile area that ideally should be left vacant or free of human activities. There is a need to relieve the shoreland area of its current load of industrial, residential, and agricultural activities that contribute to the deterioration of the lake’s ecosystem.

Also indicated on the map are the lands reserved by the national government for certain uses. There is the Marikina Watershed Reservation in the north designed for flood protection, water use and forest conservation. A military reservation can be seen in Tanay, Rizal. The forest reserves designed to protect important sub-watersheds are located in the Los Baños Mount Makiling area, Mount Banahaw area, Lake Caliraya area, and in the Kalayaan, Lumban, and Cavinti areas of Laguna province. Small unclassified public forest and communal forest areas can be found north of the lake.


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Water Use Plan

The recommended locations of some of its components are shown on the map. The area occupied by the proposed fishpens observe the recommended limit of 10 percent of the total lake area – the limit that represents the carrying capacity of the lake for fish production and consistent with the set limit under the Philippine Fisheries Code (R.A. 8550). Further, this proposed lake water use plan will need detailed study and modification as the modification of the zomap to conform with the prescribed carrying capacity under ra 8550, and the alignment of the proposed Laguna Lake Expressway Project would have been determined. The large fishpens can be seen in the left and middle ‘finger’ of the lake while the small ones can be seen on the fringe areas of the lake near the shoreland. The waters outside the fishpens are to be used for open fishing. There is a fish sanctuary in the middle of the lake where native fish species can be raised and protected and where fingerlings can be raised for restocking the lake’s fish population. 17. Priority Programs and Projects. The strategies and actions translated into programs and projects in Chapter 5 are those which address/have basin-scale needs/ impacts and categorized as urgent. The LLDA Technical Working Group revisited the SDMP project prioritization scheme. This was however finetuned on the basis of the results of the September 11, 2015 Stakeholders Consultation Workshop as well as new/recent information and project ideas in response to emerging issues and concerns.

Project Briefs of Each of the Programs/Projects

The project brief is usually a one-page information containing the title of the program/project,

lead proponent and participating agencies, rationale of the project, activity components,

possible financing, indicative location and cost of the project, intended beneficiaries, success

indicators, and suggested year of implementation. These brief profiles will the starting point for

feasibility study and project proposal preparations.

Guidelines for Integrated Watershed Management Program/Projects, Flood Control and

Related Projects

LLDA, DPWH and other implementing partners shall be guided by the following when dealing

with dredging as an option for lake rehabilitation, sediment control and flood mitigation (LLDA,

2010):

There should be no massive dredging in the lake that would significantly impact upon

and/or alter the lake ecology and biodiversity. The need for lake environmental dredging must be further evaluated as available information lack sufficient details. However, site-specific and limited lake dredging may be considered, subject to strict requirements, only under the following circumstances: (i) when handling large volumes of contaminants from the lake if it is found out that they are a threat to the environment; (ii) development of large and small scale infrastructure developments involving reclamation;


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Dredging of river tributaries along downstream section and river mouths should be a priority (such dredging must be preceded by the removal of garbage waste); Garbage waste, which covers the river embankments and the riverbed, must be removed and stored separately before starting the dredging operations as described above.

Dredging of upstream sections of rivers may be allowed for improving water management (It is expected that the upstream sections of the tributaries will not be contaminated because these are flushed during the rainy season).

When dealing with contaminated sediments, information must be required on the type and degree of contamination, as well as the volume to be dredged, to be able to determine the appropriate method for treating the dredged spoils.

Local storage areas for dredged spoils from tributary dredging should be required, such areas should be selected in order to assess the feasibility and economy of dredging operations.

The need for lake environmental dredging must be further evaluated as available information lack sufficient details. If environmental dredging is required, it is very important to assess the nature and thickness of the soil as well as the thickness of the contaminated soil/sediment layer in order to be able to select the optimum dredging method and to determine the required storage volume.

LLDA shall ensure that proper and timely maintenance of rivers and drainage and that

maintenance dredging will be undertaken at river mouths, clogged waterways, channels and

outlets, and constricted water flows. Dredging will address the reduced carrying capacity of

both higher-and lower-order drains and rivers due to lack of maintenance, Including dredging of

silts and cleaning of solid waste, and encroachment of banks of the rivers, drains, and

floodways. Further, LLDA and implementing partners shall ensure proper treatment and

disposal of dredged materials to prevent contamination due to toxic and hazardous pollutants.

18. Implementation Plan

As stated earlier, the updated Laguna de Bay Basin Master Plan is envisioned to change the

way that the basin is managed. Implementing the basin plan will require transforming it into

detailed implementation plan. Implementing the updated master plan will benefit from the

following: (i) the legal statute (R.A. 4850 as amended) providing the policy and legal context for

ILBM; (ii) existence of the LLDA clothed with a clear mandate to manage the lake basin across

administrative provincial, city and municipal boundaries, thus providing an institutional home

and an effective implementation monitoring system.; and (iii) critical basin concerns that calls for

meaningful interventions to address priority basin issues. All these also provide built-in

advantage to situations requiring cooperative arrangements to effectively implement the basin

plan.


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Implementation Strategies

Iterative Process

For some of the development goals/objectives, translating the plan into detailed

implementation plans will require close integration with major basin actions and thematic

plans such as infrastructure development plan and water supply development plan. For

other objectives, there may be a need for specific plans to be developed such as

wastewater treatment plans. This will require an iterative process over time that will

assess relationship between development and environmental priorities, identifying key

issues and deciding on trade-offs using scenarios. This process will also be a

mechanism for engaging a range of decision-makers and stakeholders.

This iterative process of assessing scenarios and revising plans builds flexibility into the

basin plan implementation. With developed and tested tools and using scientific

information generated by LLDA and other agencies, scenario assessment can provide

the basin plan greater chance of remaining coherent and actionable in the face of a

dynamic lake basin system like Laguna de Bay.

Go for immediate “Wins” for current prioritized issues and adoption of a

phased approach to achievement of long-term goals

Some basin issues are of higher priority than others. Further, it is not possible to address all

the issues at the same time throughout the basin. Attempts to do so can lead to the most

important issues not being addressed. Similarly, management measures/interventions may

be prioritized according to technical, financial and institutional feasibilities. It may be

important to consider those issues that have a high political profile, and those that can

create momentum through immediate “wins”, or so called “low-hanging fruits”.

Development of Relevant and Consistent Thematic and Sub-Basin Plans

Linked to the Basin Plan

Once approved and implemented, in consonance with the nesting approach discussed in

Chapter 5 (Overall Development Framework), the updated basin master plan will provide an

overarching strategic framework to sub-basin/ thematic plans to ensure consistent

objectives, alignment of policy and institutional cooperation around the interrelationship and

interdependencies between/among the thematic and sub-basin plans. These plans

translate the strategic intent of the “umbrella” Laguna de Bay basin plan into implementable

activities and interventions. The thematic plans can include plans related to protection,

conservation and rehabilitation, disaster risk and institutional aspects of the basin plan. On

the other hand, the sub-basin plans will deal with the institutional arrangements for

management of the 24 sub-basins, e.g., creation of sub-WQMAs and formulation of detailed

sub-basin management plans.


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Implementation Arrangements

The basin planning process and plan implementation have a remarkably good chance of success because of a supportive legal and institutional context, i.e., the LLDA Charter that serves as the plan’s “institutional home”. Thus, it is important to recognize the importance of a clear and coherent legal and institutional arrangements and capacity within which the basin plan is developed and implemented. The institutional arrangements and capacity are described as a partnership arrangement which defines the roles and responsibilities of LLDA and its implementing partners in the plan implementation. This collaboration will be institutionalized through an Institutional Memorandum of Agreement (I-MOA) to be executed by the parties concerned. Aside from formalizing their participation in plan implementation, the I-MOA will be a legally binding document which shall transform the roles/responsibilities of implementing agencies to accountabilities and obligations, including resource commitments to ensure the successful implementation of the basin plan.

Implementation Timetable The time period covered by the updated master plan follows an adaptive approach, recognizing that the plan may require modifications over time due to the following:

Complexity of the lake basin management issues; it takes time to generate updated and complete information;

Future uncertainties, especially in relation to prediction of climate change and disaster risks during the planning process

An adaptive management philosophy with the stages of planning results in a series of review and feedback loops (G. Pegram, Y. Li, Le, QUesne, R. Speed, J. Li, and F. Shen. 2013. River Basin Planning Principles, procedures and approaches for strategic basin planning. Paris, UNESCO) is adopted with flexibility provided in the way in which objectives and actions are defined and achieved”. The process of basin planning, iteration and adaptation follows these timeframes:

Basin vision and objectives : 20-year re-planning

Basin strategies and situation assessment : 5-7 year review

Implementation : Annual refinement

Monitoring and review : Annual The updated Master Plan for the Laguna de Bay Basin has a 10-year timescale (2016-2026) considering the new vision/ mission of the LLDA for the region, and 6-year planning cycle for strategies based on the results of periodic monitoring and review of plan implementation and assessment of conditions.

Furthermore, the Plan encompasses a longer-term vision, envisaging the state of Laguna de

Bay basin 20-30 years from now. This necessitate flexible operation and, if necessary,

revisions in response to environmental, climate-related, socio-economic and other changes.

This plan has been set as the first stage (2016-2026). The objective of the first stage is to

promote environmental conservation through steady yet flexible implementation of ongoing

initiatives, based on constant review of effectiveness, coordination among various interventions,

introduction of new initiatives and projects, and continuous surveying and monitoring. The 2nd


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stage (beyond 2026) is to further promote conservation initiatives in response to new findings in

the 1st stage , with particular focus on preventive and rehabilitative measures.

Urgent /Prioritized Program/Project Indicative Implementation Schedule

The plan includes an indicative timeframe between 2016 to 2026 for the urgent

programs/projects under the Plan. It is important to stress that the time indicated hereunder

may change based on the monitoring and assessment of plan implementation as well as new

information/ findings that may emerge from on-going and new initiatives of the master plan.

Investment and Financing Plan

Fund Outsourcing

The LLDA is authorized under its Charter as amended to access funds from the following external sources:

National Government subsidies and financial assistance to carry out its social overhead projects, upon recommendation of the NEDA Board;

Bilateral and multilateral sources through their technical assistance grants or loan facilities;

Contracted loans through floating of bonds and other debt instruments;

Sale of stocks and invest in secured debt instruments

Public-private partnership

Build-Operate-Transfer contracts with private entities pursuant to thee BOT Law (RA 6957 as amended by RA 7718

The LLDA can also make recommendations to the proper government agencies on the peso or dollar financing requirements of its mandated functions, technical support, the level of priority to be given to certain projects, and accordingly solicit assistance from the national Government or any of its instrumentalities.

The Charter of the LLDA further allows it to receive sovereign guarantee for the payment for principal and interest of the loans, bonds, debentures and other obligations of the Authority.

While the LLDA Charter provides for broad opportunities to expand its financial base, these are limited and hampered by the long, tedious and multi-layered approval process of the National Government through the Investment Coordination Council and NEDA Board, thus affecting the proper timing and provision of financing for long-term sustainability of the lake and watershed resources.

Financing Schemes/Strategies

Corporate Funding. Most of the soft interventions under the Master Plan, such as

regulatory tools and market-based instruments, community-based environmental and

natural resource management measures and IEC programs, will be funded through

corporate funds.

Funded by Government (General Appropriation Act). As a GOCC, the LLDA has no allocation from the National Government through the GAA. The much-needed water-related and environment infrastructure to address the environmental issues,


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including declining water quality, will be funded by the National Government through the DBM. The flood control and drainage measures for municipalities and cities along river tributaries will continue to be explored.

Through Official Development Assistance (ODA). Its past and present development and environmental initiatives funded through ODA, e.g., LISCOP Project, unduly suffered due to lack of National Government guarantee as LLDA has no allocation in the GAA. The LLDA has to “beg” line agencies, such as the DENR, DOF and DBM for the needed budget cover for its ODA-funded projects. The LLDA has to negotiate with DENR and other line agencies on budgetary allocation as it is tantamount to competing internally with their own foreign-assisted projects for a share in their budget ceilings.

Under the ODA set up, the LBDC would establish an Infrastructure Development Fund

(IDF). In this mechanism, financing assistance from donor agencies such as the World

Bank and Asian Development Bank would be secured, and the funds channelled to

project preparation and/or co-financing for their implementation. The LLDA Charter does

not allow it to manage the IDF directly as this is legally untenable within the existing

regulatory framework of the LLDA. As a regulatory body, LLDA could not act as a

funding intermediary that re-lends funds to borrower who are at the same time its

regulated clients (LLDA-Tetra Tech EMI. Final Report No. 2 – Trunk Infrastructure

Priorities and Implementation Strategy Through Private Sector Participation: Review of

Past Studies and LLDA Institutional Re-engineering. April 2008).

Through Public-Private Partnership (PPP). In the Philippines, the PPP modality has opened the possibility of long-term finance from domestic and international sources due to improved and continued reforms in corporate governance and the stock and bond markets. Further, the most successful models for the geographically focused agencies, such as lake/river basin authorities, in other countries, e.g., Tennessee Valley Authority in the United States, rely on commercially based project development concepts. These experiences combined with increasing favorable capital market environment and the support of multilateral agencies put LLDA in a unique position to carry out the necessary re-engineering process toward meeting its original mandate, that is, development (environmental) and sustainable management of the water resources in the Lake and its watershed.

The new institutional re-engineering model of LLDA segregates overtime the regulatory functions from the development mandates. As part of the re-engineering effort, LLDA may pursue infrastructure development projects through the PPP approach through either the following tracks:

Track 1: Establish an initially wholly owned subsidiary, Laguna de Bay Development Corporation (LBDC), as a vehicle to carry on infrastructure project development and market these projects to the private sector or other investors.

Track 2: Proceed directly to joint-venture arrangement with interested and capable private sector investor under the PPP modality.


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In both tracks, based on the institutional re-engineering program, the LLDA may create the

Project Development Facility (PDF) within its organization. In the new rationalized

organizational set up as approved by the Department of Budget and Management, the

Project Development and Management and Evaluation Division (PDMED) has been

established which may take the role of the envisioned PDF. The PDMED/PDF may also

include additional part-time support assigned to the PDF either from within the LLDA or

outside consultants. Depending on the skills set of the PDMED/PDF members as finally

constituted, it would be wise to retain one outside financial advisor to support the process

(LLDA-Tetra Tech EMI, Final Report No. 4 –Detailed Plan for Developing Larger Trunk

Infrastructure Development Project by LLDA’s PDF Using Private Sector Participation. April

2008).

Efficient Use of User Fee Collections Through the ETF

The LLDA intends to make efficient use of effluent charges (EUFS) and resource user fees by establishment of various trust funds. Trust funds are widely used worldwide as a financing mechanism to fund water resources management and environmental protection. It is easy to tract and could earn interest. Given the legal basis in its existing Charter, LLDA could target specific initiatives to be funded out of the trust funds, as follows:

•Lake Rehabilitation Trust Fund

–For projects that directly clean the lake water system

–Counterpart money for establishment of sewerage systems in the municipalities

•Recycling Initiatives Trust Fund

–For projects that focus on recycling and solid waste management

•Municipal Waste Water Treatment/STP Counterpart Trust Fund

–Counterpart financing for construction, repair, rehabilitation, or replacement of new and existing waste water treatment facilities, sewage treatment systems, septage treatment systems, etc.

Funding Sources of the Trust Fund

The Fund shall be generally sourced from the environmental charges, clearances and permits that are collected through the operational activities of the LLDA. This provides a revenue base to finance priority environmental projects in the Laguna de Bay Region. In essence, the Trust Fund is a revolving fund that is replenished by LLDA through set-aside percentage of its annual operating revenues or such other sources as may be determined by the LLDA. The Fund is disbursed annually to LGUs or other LLDA partners. The Trust Fund is not an investment fund for large scale environmental infrastructure development. A separate facility, the Laguna de Bay Infrastructure Development Fund discussed above will serve that purpose.

Trust Fund Arrangement

The parties to the Trust Fund are: (i) Grantors to the Fund – regulated businesses and facilities required to secure permits and clearances and make payments to LLDA in the form of


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environmental fees, fines and penalties, sources of international or domestic grants to enhance the environmental management program in the Region; (ii) Trustee – a bank or other financial entity qualified to hold and invest such funds; and (iii) Beneficiary – recipients of the fund, LGUs or other partners.

Development of Raw Water EUFS

It is also an important direction for LLDA to develop its Raw Water EUFS. A water “market”

pricing approach would be difficult to implement because of the analytical problems that such a

concept would create. The adoption of a user fee system rather than a pricing based on

“scarcity argument” will provide LLDA with the flexibility, thus the need for LLDA to review the

premise of its current water pricing scheme. It is the intention of the Authority to earmark the

fees collected for their intended use, i.e., for the protection of the water source. This practice not

only ensures that the system achieves it actual objective, it facilitates public acceptance of the

fee.

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