Palawan Asset Accounts

ENVIRONMENTAL AND NATURAL RESOURCES ACCOUNTING II PROJECT PALAWAN ASSET ACCOUNTS Fishery, Forest, Land/Soil, Mineral and Water Resources

Palawan Council for Sustainable Development Staff

National Statistical Coordination Board

United Nations Development Programme

ii

FOREWORD In 1994, the Palawan Council for Sustainable Development Staff (PCSDS) and the Provincial Government, together with the National Statistics Office (NSO) and the Bureau of Agricultural Statistics (BAS), had the occasion of working with the National Statistical Coordination Board (NSCB) for the pilot-testing of the compilation of the Gross Provincial Domestic Product. A first attempt at sub-regional disaggregation of the GDP, this exercise provided the basis for determining Palawan’s contribution to the national economy. This activity likewise paved the way for identifying the areas for improvement of the statistical data collection system in the province. As an offshoot of this undertaking, Palawan was again selected in 1998 as the pilot area for the institutionalization of the Philippine Economic-Environmental and Natural Resources Accounting (PEENRA) System at the provincial level. Focusing this time on the valuation of the asset accounts for five resources of Palawan, this activity was able to show that environmental and natural resources accounting could be successfully carried out at the sub-national level. Such activity could not have been achieved without the support and cooperation of the various data producing agencies operating in the province. On behalf of the Provincial Government of Palawan, I would like to extend our gratitude to the United Nations Development Programme (UNDP), the sponsor of the second phase of the Environment and Natural Resources Accounting Project, NSCB and the United Nations Statistics Division (UNSD), for the technical guidance provided to us. I also commend the heads of agencies and technical staff who had actively participated in pursuing the realization of the objectives of this project. We take great pride that Palawan had initiated this worthwhile endeavor. Through this publication, we hope to disseminate the experience and outputs of Palawan as a pilot model towards the establishment of a provincial asset accounts of interested provinces. JOEL T. REYES Governor Province of Palawan

iii

FOREWORD This report contains the output of the technical working groups from 14 national agencies and local government offices in Palawan who were involved in the Environment and Natural Resources Accounting (ENRA) II Project. Funded by the United Nations Development Programme (UNDP), the ENRA II Project included a provincial component which aimed to institutionalize the Philippine Economic-Environmental and Natural Resources Accounting (PEENRA) System at the provincial level. Following the methodologies adopted during the first phase of the project, asset accounts for five resources of Palawan, namely: land and soil, forest, fishery, mineral and water, were compiled by a technical working group for each resource. As the lead implementing agency in the province, the Palawan Council for Sustainable Development Staff (PCSDS) had spearheaded the operationalization of the project. To effectively undertake our tasks, we sought the participation of national agencies (Bureau of Agricultural Statistics, Department of Agrarian Reform, National Irrigation Administration, National Statistics Office, and the Department of Environment and Natural Resources) and the offices of the Palawan Provincial Government (Provincial Planning and Development Office, Office of the Provincial Agriculturist and the Environment and Natural Resources Office) and Puerto Princesa City Government (City Planning and Development Office and City Environment and Natural Resources Office). The Palawan Tropical Forestry Protection Programme, a project of the PCSDS and the Paltubig, Inc. were also active partners in this undertaking. Their participation and untiring support were instrumental in the achievement of the project’s objectives. All our efforts however could not have been effectively carried out without the guidance and supervision of the National Statistical Coordination Board (NSCB), the project’s overall lead executing agency. Indeed we are grateful for the opportunity given to us by NSCB and for their confidence that our provincial leaders and policy makers will find this project a significant exercise. The skills that were imparted to us by the NSCB staff will be put into test when we update the accounts in the future. The PCSDS fervently hopes that the cooperation shown to us by the various agencies with whom we have worked with will continue as we pursue the ultimate objectives of the PEENRA system.

JOSELITO C. ALISUAG Executive Director PCSDS

iv

FOREWORD Towards the Institutionalization of the Philippine Economic-Environmental and Natural Resource Accounting (PEENRA) System at the Provincial Level, the National Statistical Coordination Board is pleased to have been a part of the “Palawan Provincial Asset Accounts”, a product of the Environmental and Natural Resource Accounting II (ENRA II) Project funded by the United Nations Development Programme. Palawan, is so far the only province that has its own Provincial Product Accounts. As a pioneering output in environmental accounting at the subnational level, it is hoped that the Palawan Provincial Asset Accounts will greatly contribute to the development of Palawan and will serve as a model for other provinces. Indeed, this compilation of environmental resource accounts in Palawan from 1988 to 1999 covering six (6) resources namely land/soil, fishery, mineral, forest, water and wildlife resources, is a potent medium to bring to the fore the importance of environmental protection at the subnational level. The NSCB salutes the Palawan Council for Sustainable Development Staff for its dedicated work in pursuing the realization of environmental accounting in the province. The close collaboration among the various stakeholders -- the Provincial Government, other government agencies, non-government organizations and private institutions in Palawan, and the individual members of the Provincial Steering Committee and the Technical Working Groups (TWGs), is an experience that should inspire other provinces who wish to undertake the same activity. We acknowledge the United Nations Statistics Division (UNSD) for the technical assistance given and the UNDP for the financial support extended to the ENRA II Project.

ROMULO A. VIROLA Secretary General, NSCB

v

TABLE OF CONTENTS

Foreword List of Tables viii List of Figures xii List of Appendix Tables xv Executive Summary xviii CHAPTER 1. MARINE FISHERY RESOURCE 1.1 Introduction 2 1.2 Conceptual Framework 3

1.2.1 Scope and Coverage 3 1.2.2 Framework of the Asset Account 3

1.3 Operationalizing the Framework 5

1.3.1 Sources of Data 5 1.3.2 Estimation Methodology 5

1.4 Results and Discussion 7

1.4.1 Share of the Fishery sector to GPDP 7 1.4.2 Fish Catch and Fishing Effort 7 1.4.3 Sustainable Yield and Depletion 8

1.5 Recommendations 10 Acronyms 12 Definition of Terms 13 References 14 CHAPTER 2. FOREST RESOURCE 2.1 Introduction 16 2.2 Conceptual Framework 17

2.2.1 Scope and Coverage 17 2.2.2 Framework for the Asset Accounts 17



2.4 Analysis, Results and Discussions 22

vi

2.4.1 Old Growth Dipterocarp Forest 22 2.4.2 Second Growth Dipterocarp Forest 25 2.4.3 Mangrove Forest 27 2.4.4 Rattan 29

2.5 Recommendations 31 Acronyms 33 Definition of Terms 34 References 48 CHAPTER 3. LAND/SOIL RESOURCE 3.1 Introduction 50 3.2 Conceptual Framework 50

3.2.1 Scope and Coverage 50 3.2.2 Framework for the Asset Accounts 50


3.3.1 Sources of Data 53 3.3.2 Estimation Methodology 54 3.3.3 Underlying Assumptions and Limitations 57

3.4 Result and Discussion 58

3.4.1 Physical Asset Accounts 58 3.4.2 Monetary Accounts 63 3.4.3 Summary of the Land and Soil Resource 66

3.5 Recommendations 67 Acronyms 69 Definition of Terms 70 References 87 CHAPTER IV. MINERAL RESOURCE 4.1 Introduction 90 4.2 Conceptual Framework 92

4.2.1 Scope and Coverage 92 4.2.2 Framework for the Asset Account 92



vii

4.4 Results and Discussion 95

4.5.1 Physical Asset Account 95 4.5.2 Monetary Account 97

4.5 Recommendations 98 Acronyms 100 Definition of Terms 101 References 108 CHAPTER 5. WATER RESOURCE 5.1 Introduction 110 5.2 Framework for the Asset Account 111

5.2.1 Scope and Coverage 111 5.2.2 Framework for the Asset Account 111


5.3.1 Surface Water 112 5.3.2 Groundwater 112

5.4 Analysis, Results and Discussion 116

5.4.1 Physical Accounts of Surface Water 116 5.4.2 Physical Accounts of Groundwater 117

5.5 Limitations 119 5.6 Recommendations 119 Acronyms 121 Definition of Terms 122 References 130

viii

LIST OF TABLES

Table Number Title Page

CHAPTER 1. MARINE FISHERY RESOURCE

1.1 Gross Provincial Domestic Product Accounts, (Palawan 1988 and 1994) ……………………………. 7

1.2 Estimated Volume of Catch and Fishing Effort

of Marine Fishery resource, Palawan, 1983-1998 … 8 1.3 Estimated Marine Fishery Resource Depletion,

Palawan, 1983-1998 ….………………………….…… 9 CHAPTER 2. FOREST RESOURCE

2.1 Area Accounts of Old Growth Dipterocarp Forests, 1988-1999 (in hectares)…………………….. 23

2.2 Volume Accounts of Old Growth Dipterocarp

Forests, 1988-1999 (in thousand cubic meters)……. 23

2.3 Economic Accounts of Old Growth Dipterocarp Forest at Current Prices, 1988-1999 (In million pesos)……………………………………….. 24

2.4 Economic Accounts of Old Growth Dipterocarp

Forest at Constant Prices, 1988-1999 (In million pesos)……………………………………….. 24

2.5 Stumpage Value for Natural Forest Stands at

Current Prices, 1988-1999……………………………. 25

2.6 Area Accounts of Second Growth Dipterocarp Forests, 1988-1999 (in hectares)…………………….. 25

2.7 Volume Accounts of Second Growth Dipterocarp

Forests, 1988-1999 (In thousand cubic meters)……. 26

2.8 Economic Accounts of Second Growth Dipterocarp Forest at Current Prices, 1988-1999, (In million pesos)…………………………. 27

2.9 Economic Accounts of Second Growth

Dipterocarp Forest at Constant Prices, 1988-1999, (In million pesos)………………………… 27

2.10 Area Accounts of Mangrove Forests, 1988-1999….. 28

ix


2.11 Volume Accounts of Mangrove Forests, 1988-1999, (In thousand cubic meters)…………….. 28

2.12 Rattan Resources Volume Accounts, 1988-1998

(In thousand lineal meters)…………………………… 29

2.13 Economic Accounts of Rattan at Current Prices, 1988-1991 (In million pesos)………………………… 31

2.14 Economic Accounts of Rattan at Constant Prices,

1988-1991 (In million pesos)………………………… 31

CHAPTER 3. LAND/SOIL RESOURCE

3.1 Sources of Data on Lands Devoted to Forestry, Agriculture and Built-up Uses………………………… 54

3.2 Physical Asset Account of Land Resources

Devoted to Forest Uses, Mainland Palawan, 1988-1998……………………………………………… 59


Devoted to Agricultural Uses, Palawan, 1988-1998……………………………………………… 60


Devoted to Built-up Uses, Palawan, 1988-1998……………………………………………… 60

3.5 Physical Asset Account of Soil Resources

Devoted to Forest Uses, Mainland Palawan, 1988-1998……………………………………………… 61

3.6 Physical Asset Account of Soil Resources Devoted to Agricultural Uses, Palawan, 1988-1998……………………………………………… 61

3.7 Adjusted Physical Area of Forest Lands by Type of Forest, in Hectares, Mainland Palawan, 1988-1998……………………………………………… 62

3.8 Adjusted Physical Area of Agricultural Lands by Type

of Farm, In Thousand Hectares, Palawan, 1988-1998………………………………………………. 62

3.9 Adjusted Physical Area of Built-up, In Hectares,

Palawan, 1988-1998…………………………………… 63

x


3.10 Monetary Estimate of Land Resources Devoted to Forest Uses, Mainland Palawan, 1988-1998……………………………………………… 63

3.11 Monetary Estimate of Land Resources Devoted to Agricultural Uses, Palawan, 1988-1998……………………………………………… 64

3.12 Monetary Estimate of Land Resources Devoted to Built-up Uses, Palawan, 1988-1998……………………………………………… 64

3.13 Monetary Estimate of Soil Resources for Lands Devoted to Forest Uses, Mainland Palawan, 1988-1998……………………………………………… 65

3.14 Monetary Estimate of Soil Resources for Lands Devoted to Agricultural Uses, Palawan, 1988-1998……………………………………………… 65

3.15 Summary Table of Physical Asset Account of Land Use by Year, Palawan, 1988-1998………………….. 66

3.16 Summary Table of Monetary Asset Account of Land

Use by Year, Palawan, 1988-1998………………….. 67 CHAPTER 4. MINERAL RESOURCE

4.1 Mineral Deposit in Palawan, 1981………………..… 91

4.2 Nickel Physical Asset Accounts in Ore Form……… 96

4.3 Nickel Physical Asset Account in Metal Form…….. 96

4.4 Sand and Gravel Physical Account………………… 97

4.5 Nickel Monetary Account (Using Net Price Method at 15% Interest Rate, In Peso)……………. 98

4.6 Sand and Gravel Monetary Account (Using Net Price Method at 15% Interest Rate, In Peso)……… 98

CHAPTER 5. WATER RESOURCE

5.1 Physical Accounts Framework for Surface and Groundwater……………………………………….…. 111

5.2 Estimation Methodology and Sources of Data……. 114

xi

Table Number Title Page 5.3 Surface Water Physical Asset Account of Palawan,

1988-1998 (MCM)……….…………………………… 116

5.4 Physical Account of Groundwater in the Province of Palawan , 1988-1996 (MCM)…………………….. 118

xii

LIST OF FIGURES Figure Number Title Page CHAPTER 1. MARINE FISHERY RESOURCE

1.1 Catch by Commercial and Municipal Fishery Industry, Palawan, 1983-1998……………………… 2

1.2 Asset Accounts Framework for Fishery Resource… 4

1.3 Total Catch and Total Fishing Effort, Palawan,

1983-1998……………………………………………… 8

1.4 Sustainable Yield Effort Curve for Marine Fishery Resources, 1983-1998……………………………….. 10

CHAPTER 2. FOREST RESOURCE

2.1 Asset Accounts Framework…………………………… 18 2.2 Area and Volume Accounts of Old Growth

Dipterocarp, 1988-1999…………………………….…. 24

2.3 Area and Volume Accounts of Second Growth Dipterocarp, 1988-1999………………………………... 26

2.4 Area Change by Forest Type…………………………. 28 2.5 Volume Change by Forest Type……………………… 29

2.6 Volume of harvested/Cut Rattan as Compared

to the stock, 1989-1999…………………………….…. 30

2.7 Monetary Valuation of Rattan Forest Resource at Current and Constant Prices, 1988-1999………………………………………………. 30


3.1 Physical Accounts Framework for the Land/Soil Resource,………………………………….. 51

3.2 Monetary Accounts Framework for the

Land/Soil Resource…………………………..……….. 52

3.3 Summary of Physical Asset Accounts for Forest, Agriculture, Built-up and Other Land Uses, 1988 and 1998………………………………………… 66

3.4 Comparison of Monetary Value of Forest, Agriculture and Built-up Use………………………… 67

xiii

Figure Number Title Page CHAPTER 4. MINERAL RESOURCE

4.1 Asset Account Framework for Mineral Resource… 93

4.2 Actual Nickel Extraction by RTNMC, 1988 – 1998………………………………………….. 96

4.3 Sand and Gravel Reserve and Extraction,

1990 –1999…………………………………………… 97

CHAPTER 5. WATER RESOURCE

5.1 Precipitation vs. Basin Recharge vs. Direct Run-off, 1987-1998……………………………………………… 116

5.2 Surface Water Physical Account (Net Basin Recharge vs. Withdrawal vs. Closing Stock), 1988-1998…….. 117

5.3 Surface Water Withdrawal, 1988-1998…………….. 117 5.4 Groundwater Physical Account, 1988-1998……….. 118 5.5 Groundwater Demand in 1988 an 1998..…………… 118

xiv

LIST OF APPENDIX TABLES Appendix Table Number Title Page CHAPTER 2. FOREST RESOURCE

2.1 Physical Area of Forest Lands by Type, Mainland Palawan, 1985 and 1992……………………………….. 37 2.2 Physical Area of Forest Lands by Type, Mainland

Palawan, 1986-1992…………………………………….. 37 2.3 Adjusted Physical Area of Forest Lands by Type,

Mainland Palawan, 1986 –1989………………………… 37 2.4 Average Bole Volume by Species in Dipterocarp Old

Growth Forest, Forest, Palawan………………………… 38

2.5 Average Bole Volume by Species in Dipterocarp Residual Forest, Palawan……………………………….. 39

2.6 Average Rattan Occurrence in Dipterocarp Old Growth Forest, Palawan……………………………. 40

2.7 Average Rattan Occurrence in Dipterocarp

Residual Forest, Palawan………………………………. 40

2.8 Total Volume of Timber Production, In Cubic Meters, 1988-1999………………………………………………… 41 2.9 Total Volume of Confiscated Timber, In Cubic Meters, 1988-1999………………………………………………… 41

2.10 Total Area Covered within ISF/CBFM Concessions

andAgro. Forestry, 1988 – 1999……………………….. 42

2.11 Total Area of Implementation of Conservation Efforts (Second Growth Forest), 1988 – 1999………………... 42 2.12 Total Area of Implementation of Conservation Efforts

(Mangrove Forest), 1989 – 1995………………………. 43

2.13 Total Area Damaged from Kaingin and Forest Fires, 1991-1999…………………………………………………. 43

2.14 Total Rattan Harvest Manifestation, 1988-1999………. 44

2.15 Total Volume of Confiscated Rattan, 1989-1995…….. 44

2.16 Rattan Resources Volume Accounts, 1988-1999

(In thousand lineal meters)……………………………… 45

xv

Appendix Table Number Title Page

2.17 Economic Accounts of Rattan at Current Prices 1988-1999, (in million pesos)……………………… 46

2.18 Computation for the Stumpage Values for Rattan Resources, 1988-1998…………………….. 47


3.1 Physical Area of Forest Lands by Type of Forest, Mainland Palawan, 1985-1998, in Hectares………………………………………… 81

3.2 Forest Destruction by Cause, Mainland Palawan, 1991 – 1998, in hectares…………….………… 82

3.3 Conversion of Forest Lands to Other Uses, Mainland Palawan, 1988-1997………….……. 82

3.4 Areas of Reforestation by Municipality, Mainland Palawan, 1987-1998, in hectares... 83

3.5 Logged Area, Palawan, In Hectares, 1988-1992……………………………….….….. 83

3.6 Land Values, Palawan, In Hectares,

1987-1998…………………………………..….. 83

3.7 Erosion Hazard Assessment, Tamlang Catchment, 1985……………………….….…... 84

3.8 Slope Distribution, by Class Interval, Palawan, in Hectares, 1985………………..….. 84

3.9 Retail Price of Fertilizers, Philippines, 1988-1998…………………………………..…… 84

3.10 Daily Wage Rate for Agricultural Plantation,

Philippines, 1986-1997……………………..….. 85

3.11 Physical Area of Agricultural lands by Type of Farm, Palawan, in Thousand Hectares, 1980 and 1988 to 1999…………………………. 85

3.12 Kaingin Areas, Palawan, in Hectares, 1991-1998………………………………….…….. 85

3.13 Land Conversion from Agricultural to Other Uses

by Municipality, Palawan, 1989-1998…………. 86

xvi

Appendix Table Number Title Page 3.14 Mangrove Area Converted to Fishpond, Palawan,

in hectares, 1995 to 1998…………………………… 86

3.15 Physical Area of Built-up Area, Palawan, 1988 to 1998, in hectares…………………………… 86

3.16 Estimated Zonal Values of Lands, by type of Land Use, Palawan, 1985……………………….. 86

CHAPTER 4. MINERAL RESOURCE 4.1 Nickel Reserve of Mining Companies, 1996………… 104

4.2 Volume of Nickel Reserve and Metal Content by Rio Tuba Nickel Mining Corporation, 1987 – 1996……… 105

4.3 Summary of Sand and Gravel Reserve on Selected Rivers in Palawan, 1999……………………….……… 106

4.4 Computed Unit Rent and Resource Rent of Nickel Resource, Palawan, 1988 – 1998……………….…… 106

4.5 Computed Unit Rent and Resource Rent of Sand and Gravel Resource, Palawan, 1990 – 1999……….…… 107

4.6 Market Price per Unit Volume, 1988 – 1999……….… 107 CHAPTER 5. WATER RESOURCE

5.1 Estimated Basin Recharge, 1987-1998 (MCM)…….. 124

5.2 Palawan Annual Rainfall Data, 1987-1998 (mm)…… 124 5.3 Palawan Hydrometric Network Mean River

Discharge, 1986-1989 (MCM)………………………… 124

5.4 Agricultural Water Uses from Surface Water in the Province of Palawan, 1988-1998 (MCM)…………… 125

. 5.5 Total Area Planted with Crops, in hectare, 1988-1998 125

5.6 Physical Accounts of Groundwater, 1980-1987 (MCM) 125

5.7 Water Demand from Groundwater, 1980-1996 (MCM) 126

5.8 Palawan Population Data, 1980-1998………………. 127

5.9 Number of Establishments, 1978-1999……………… 127

xvii

Appendix Table Number Title Page

5.10 Livestock and Poultry Water Demand from, Groundwater, 1988-1994 (MCM)…………………….. 128

5.11 Livestock and Poultry Population, Number of Heads, 1988-1998………………………………………………. 128

5.12 Groundwater Recharge Based from Rainfall, 1980-1998………………………………………………. 129

xviii

EXECUTIVE SUMMARY Palawan is one of the remaining islands of the Philippine archipelago with a relatively well maintained environment. In order to ensure the preservation of the remaining forest areas, coral reefs and other fragile ecosystems as well as to promote the wise utilization of its natural resources, Republic Act No. 7611, otherwise known as the Strategic Environmental Plan (SEP) for Palawan Act, was adopted in June 1992 as the province’s framework for sustainable development. To achieve a balance between development and conservation, all programs and projects in Palawan were subsequently aligned with the goals and objectives of the SEP. Complementary policies were likewise issued by the provincial government in consonance with the plan.

The selection of Palawan as the pilot area for the institutionalization of the Philippine Economic-Environmental and Natural Resources Accounting (PEENRA) was then a welcome opportunity for the local government and the Palawan Council for Sustainable Development Staff (PCSDS), the policy-making body tasked with the operationalization of the SEP, to have at hand a system that can provide the basis for the formulation of the policies that will promote the rational utilization of its resources.

The provincial component of the UNDP-funded Environment and Natural Resources Accounting (ENRA) II Project called for the compilation of asset accounts of five major resources, namely, fishery, forest, land and soil, mineral and water. Based on the experience at the national level, asset accounts were estimated by technical working groups whose members came from 14 national agencies and offices of the Provincial Government of Palawan and the City Government of Puerto Princesa. Attempts were made to compute both the physical and monetary valuation of the resources. However, due to data limitations, both physical and monetary accounts were established only for fishery, land/soil, and mineral resources. For surface and ground water, mangrove forest and fishery resources, only the physical accounts were compiled.

A major objective of the project in Palawan was the institutionalization of the PEENRA system. As the lead implementing agency and in the light of its mandate under R.A. No.7611, the PCSDS assumed the responsibility of sustaining the activities. Immediately after the termination of the pilot testing in June 2001, the PCSDS integrated into its regular annual plan the updating of the asset accounts. The PEENRA system became a component of an Environmental Monitoring and Evaluation System which was developed to determine the status of the environment in support to the implementation of the SEP. Currently, preparations are underway to formalize the arrangements with the agencies of the national and local government to cover data gathering and actual compilation of the accounts. The recommendations made by the technical working groups will also be pursued.

The highlights of the results of the accounting exercise in Palawan are summarized in the following sections.

xix

Fishery Resource The resources covered in this accounting exercise are municipal and commercial marine fisheries. Because of constraints in the data, the compilation was limited to the estimation of the volume of depletion and an approximation of the sustainable yield levels based on the Fox Model.

The fishery sector contributed 22.8 percent and 20.6 percent to the gross provincial domestic product for Palawan in 1988 and 1994, respectively. Despite efforts to protect the numerous fishing grounds and long coastline of Palawan, the resource showed signs of depletion. A comparison of the trends in 1988 to 1998 reveals that fishing effort increased at a faster rate than fish catch. In fact, during this period, the volume of catch rose by 3.0 percent while fishing effort, based on the total horsepower of both municipal and commercial vessels, grew by 21.4 percent.

The maximum sustainable yield of 101,954 metric tons, that is, the biomass that can be caught without jeopardizing the fish stock of any species, was reached at an effort of 65,629 horsepower. During the earlier years of the accounting period, the volume of catch exceeded the rate of natural growth. Depletion level was pegged at a comparatively high 20,727 metric tons in 1988 but this went down to 1,413 metric tons in 1990. In the next four years (1992 to 1995), the extraction level was below the sustainable yield. During this period, the local government’s active law enforcement and concerted conservation and protection programs of different sectors were believed to have contributed to the recovery of the marine ecosystem from previous destructive fishing practices. However, starting 1996, the result showed that production activities had again put pressure on the resource as evidenced by the harvested volume being greater than the resource’s natural growth. From a depletion level of 2,639 metric tons in 1996, it rose to 23,607 metric tons in 1998. Based on the experiences in the compilation of the asset accounts and results of the accounting exercise, the technical working groups had drawn up recommendations to improve the data collection system and the actual consolidation of information from the offices of the different data producers. Initial policy recommendations were put forward to address certain issues that are being confronted in line with the management and utilization of these resources. Mechanisms to institutionalize the accounting were likewise identified.

xx

Forest Resource The forest provides both ecological and economic benefits. Palawan is one of the country’s provinces endowed with rich natural resources and the forest ecosystem is characterized by a highly diverse flora and fauna. Palawan’s forest land of 647,090 hectares accounts for 43 percent of Palawan’s total land area. Due to commercial logging, which was allowed until 1992, old growth forest area declined by 52 percent (175,990 hectares) from 1988 to 1999. From the closing stock of 339,208 hectares in 1988, total forest area decreased to 163,218 hectares in 1999. Similarly, the equivalent volume of old growth dipterocarp timber was depleted by 2.9 million cubic meters per year, reducing its 1988 timber closing stock of 61.1 million cubic meters to its 1999 stock of 29.4 million cubic meters. The monetary value for old growth forest fell during the accounting period by P 2.6 billion or P 233.9 million annually at current prices. At constant prices, the value shrunk from P 55.3 billion in 1988 to P 26.6 billion in 1999. The depletion that resulted from the changes in the physical stock of old growth forest averaged P 860 million per year or an annual decline of 1.6 percent. The 1988 closing stock of second growth forest area was 216,057 hectares and increased to 392,406 hectare in 1999, representing an 82 percent increase. Second growth dipterocarp timber volume increased by 25,042 thousand cubic meters from 1988 to 1999 with an average annual increase of 2,277 thousand cubic meters per year. Several factors contributed to the increase including the prevalence of reforestation and assisted natural regeneration activities and old growth forest being converted to second growth forest. The monetary value of second growth forest, likewise, showed an increasing trend with an annual average increment of P 4.1 billion at current prices and P 1.0 billion at constant prices. Mangrove forest plays a vital role in directly preserving the islands surrounding marine ecology. However, because of the conversion to fishpond and harvesting, vast tracts of mangrove areas were lost at a rate of 683.5 ha per year. The total mangrove stock declined at a rate of 88,091 cu. m. per year from its 1988 closing stock of 4.6 million cubic meters to 3.7 million cubic meters in 1999. Rattan stock in both old growth and second growth forest decreased at a rate of 4.5 million linear meters annually draining its 1988 closing stock of 746.0 million linear meters to 696.6 million linear meters in 1999. Because of the decrease in the volume of stock of rattan, the value of its closing stock at current prices increased from P 590.0 million in 1988 to P 1.1 billion in 1999. At 1985 prices, the real value declined from P 508.9 million in 1988 to P 470.0 million in 1999, recording an annual decline of 0.7 percent.

xxi

Land and Soil Resources Land and soil resources are among the most important natural resources because of their direct relationship to plants that in turn provide environmental benefits, food and livelihood. Thus, it is imperative to understand the nature and characteristics of these resources in order to manage and conserve them properly. Palawan is the largest province of the country with a land area of 1,489,630 hectares. In 1988, about 43.4 percent of its total land area was devoted to forest area, particularly in Mainland Palawan, 11.6 percent to agriculture use, and a negligible 0.5 percent to built-up use. Meanwhile, a large proportion of about 44.5 percent was classified as reproduction brush, grassland, water bodies and shallow coast including the forest areas in the island municipalities. From 1988 to 1998, forest area decreased from 647 thousand hectares valued at P 31.9 million to 612 thousand hectares valued at P 75.9 million in 1998. It declined at an average annual rate of 0.5 percent equivalent to around 3,545 hectares per year. Given the general increase in the prices of land, there was a substantial increase of P 44.0 million in the value of forest area. An average of 1,494 hectares per year of forest area was converted to different agricultural uses. Such change in land use was attributed to the deforestation caused by logging and conversion to kaingin and other non-forest uses. It also includes conversion of mangrove forest areas into fishpond.

In 1988, the total agricultural land was 172,945 hectares with a monetary value of P 1.7 billion which increased to 217,697 hectares in 1998 with a value of P 5.3 billion. Meanwhile, more than 600 hectares of lands devoted to agricultural uses was recorded as legally converted into built-up areas. It is however observed that this area is quite small considering the change in built-up area from 1988 to 1998 of 34,796 hectares (equivalent to P 84.1 billion). Unreported illegal land conversion from agriculture to other land uses without the approval of DAR is one of the reasons for the large area that is left unaccounted for. The change in soil quantity, expressed in terms of nutrient loss, serves as an indicator on the extent of soil degradation. The amount of soil eroded, on the other hand, is a measure of soil depletion. In 1988, a total of 11.8 million metric tons was eroded from forest and agricultural lands. By 1998, the volume was estimated at 13.9 million metric tons. Some portions of the eroded materials are deposited in waterways and farmland, while others may be dissolved in water as they are carried downstream. The volume of sediment due to erosion from forest and agricultural area grew from 8.1 million metric tons in 1988 to 9.6 million metric tons ten years hence. The annual average nutrient loss from sediments, expressed in fertilizer equivalent, from both forest and agricultural lands were 22,959 tons of nitrogen, 487 tons of phosphorous, and 3,542 tons of potassium. In sum, the estimated value of degradation amounted to P 111.2 million in 1988 and increased to P 253.8 million in 1998 for both forest and agricultural lands.

xxii

Mineral Resource Among the metallic mineral deposits mapped in the province are nickel, chromite, copper, mercury, antimony, lead, gold, manganese, uranium, pyrite and iron. Meanwhile, the non-metallic reserves are silica, limestone, pebbles, marble, coal, sand and gravel. Nickel, which is the only metallic metal currently being put into commercial production, was included in accounting for the resource.

The opening stock of nickel ore in 1988 was placed at 412.7 million metric tons and had an equivalent volume of about 5.8 million metric tons of metal. By 1998, the volume of nickel ore had declined to 407.5 metric tons with a corresponding metal content of 5.7 metric tons. The metal content slightly varied during the period from 1.41 percent to 1.43 percent. In sum, the total extracted ore during the accounting period of 3.7 million dry metric tons contained 52 thousand metric tons of nickel metal.

In monetary terms, Palawan’s nickel reserve, valued at P 272.6 billion in 1988, increased by 1.1 percent to P 304.7 billion in 1998. The variable market price of nickel was noted during the period. The highest market price was recorded in 1989 at P 68.25 per kilogram and the lowest was in 1993, pegged at P 27.07 per kilogram.

Based on a 1999 survey of 15 rivers in Mainland Palawan which are the major sources of sand and gravel aggregates, the reserve was placed at 5.4 million cubic meters. The volume extracted increased at an average of 12.7 percent per annum. From the 1990 extraction of 19 thousand metric tons, the volume rose to 71 thousand metric tons in 1999 with equivalent monetary values of P 66.6 million and P 629.4 million, respectively.

xxiii

Water Resource Palawan consists of 191 catchments, 31 of which are identified as major catchments. According to the Master Plan Study on Water Resources Management of the Philippines conducted by the National Water Resources Board (NWRB) in 1977, only 15 percent or 2,242 square kilometers of the 14,896 square kilometers total land area of Palawan has available groundwater. The population depends mainly on the groundwater for its domestic, commercial and industrial consumption. On the other hand, a large proportion of the surface water is being consumed by the agriculture sector. For this specific undertaking, both the surface and groundwater resources were covered. Results of the estimation of the physical accounts of surface water showed an increase in stock from 15,023.0 million cubic meters in 1988 to 45,642.5 million cubic meters in 1998. The increasing trend in the demand for surface water in agriculture is still very small compared to the basin recharge. Thus, the available stock for surface water adds potential for the agricultural development of the province. The groundwater stock depends on the recharge from rainfall. The province experienced the lowest recharge in 1991 due to lower amount of rainfall particularly in the southern part of the mainland. The study showed an increase in abstraction of groundwater for domestic, commercial and industrial purposes from 24.4 million cubic meters in 1988 to 37.7 million cubic meters in 1998. The increase in abstraction may be attributed to the rapid increase in population brought about by migration.

Palawan Marine Fishery Resource

Environmental and Natural Resources Accounting

MARINE FISHERY RESOURCE 1.1. INTRODUCTION 1. Palawan is an archipelago of 1,780 islands and islets with a coastline of about 2,000 kilometers. It has an estimated water body of 49,408 square kilometers, coral reefs of 9,800 square kilometers (excluding Tubbataha and Kalayaan) and a mangrove forest of 46,445 hectares (JAFTA, 1992).

2. The province has numerous coves and bays with rich fishing grounds. About 64,400 fishers, majority of whom are migrants coming from Cebu, Iloilo and other provinces ply these waters. Palawan contributes roughly 40 percent to the total fishery production of the Philippines (BAS, 1998). Commercial and municipal fisheries registered an average production of 94,070 metric tons annually from 1988 to 1998 (Figure 1.1). Vessels classified under municipal fishery represented 77 percent of the total fishing boats. Similarly, about two thirds of the total catch in 1998 was contributed by municipal fishery. It is not surprising therefore that fish is the principal source of protein for the Palaweños whose per capita food requirement for fish is estimated at 30.66 kilos per annum (MHS, 1982).

Figure 1.1 Catch by Commercial and Municipal Fishery Industry,

Palawan, 1983 to 1998 (In Metric Tons)

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

Cat

ch (i

n m

etric

tons

)

CommercialMunicipal

3. In 1995, about 75 percent (NSO, 1995) of the total population resided in the coastal zone whose sources of livelihood were derived from the coastal/marine resources. Majority of the local residents engaged in municipal fishing, however some of them resorted to deep-sea fishing in order to increase production. One of the factors that influenced small fishers to go beyond the municipal waters was the declining catch.

Palawan Marine Fishery Resource 2


4. Human activities have been contributory to the deterioration of the coral reef, sea grass beds and mangrove forest that serve as shelter and nursery of spawning and juvenile fish. The problems besetting the fishery resource are also rooted to the destructive activities in the terrestrial area that cause siltation and sedimentation in the coastal areas. Moreover, the use of harmful fishing methods, such as trawl and dynamite fishing, and obnoxious substances like sodium cyanide, put pressure on the resource. Meanwhile, the mangrove forest in Southern Palawan has been destroyed through illegal mangrove tree debarking and conversion of mangrove forest into fishpond. The coral reefs are also deteriorating as disclosed by some researches. For example, out of 75 sites surveyed in 1997 to 2000 by the Palawan Council for Sustainable Development Staff (PCSDS) and Non-Government Organizations (NGOs) in Puerto Princesa City, Aborlan, Narra, Espanola, and Busuanga, only 12 percent were classified under excellent condition, that is, having a coral cover of at least 75 percent.

5. To address these problems and issues and to formulate appropriate plans and policies in accordance with the concept of sustainable development, comprehensive information on the status of the fishery sector is needed by planners and policy makers. It is for these reasons that accounting of the resource was pursued under the Environment and Natural Resources Accounting (ENRA) II Project. 1.2. CONCEPTUAL FRAMEWORK

1.2.1 Scope and Coverage

6. The fishery resource accounts cover cultivated and non-cultivated fish stock and other aquatic animals. The former includes the stock of fish and other aquatic animals in fishponds and farms while the latter are found in the ocean and the inland and coastal waters. The study however is confined to non-cultivated fish stocks and due to data limitations, it covers only marine fishery resource for the period 1988 to 1998.

1.2.2 Framework of the Asset Account 7. The SEEA framework was used in the accounting of the resource both for the physical and monetary accounts. Below is the conceptual framework operationalized to come up with the fishery resource accounts for the Province of Palawan.

Figure 1.2 Asset Accounts Framework for Fishery Resource



OPENING STOCK

Changes due to economic activity Depletion Total Catch Sustainable Yield Other Accumulation +/- Conversion of fish stocks to economic control Other Volume Changes due to natural or multiple causes + Natural growth - Natural mortality +/- Net migration - Mortality due to natural disasters or due to the

destruction of natural habitats Changes in Stocks Revaluation* CLOSING STOCK

*For monetary valuation only

Fish Stocks

8. The opening and closing stocks characterize the volume of the asset at a given point in time. Ideally, the stock is measured in terms of the biomass at the beginning and end of the accounting period.

Changes in Stock

9. Change in the volume of stock is affected by natural loss, fishing activity and recruitment. Fishing is an extraction activity resulting to reduction of stock. The level of fish catch that is beyond its natural growth occurring at a given point in time is considered as depletion. It occurs when total catch exceeds sustainable yield.

Other Accumulation

10. The positive or negative conversion of fish stocks to economic control is accounted as other accumulation.

Other Volume Changes

11. The variables classified under other volume changes may be due to natural or multiple causes. It consists of natural growth as additional stock and natural mortality as reduction to the stock. Mortality due to natural disasters or destruction of natural habitat is also a reduction to the stock. Meanwhile, net migration is either addition or reduction to the stock.

12. Due to data constraints, the accounting of the fishery resource was limited to the framework discussing the changes due to economic activity particularly on the depletion of the marine fishery resources. The methods used in the exercise is just an alternative approach to account for the resource rent based on the level of depletion, considering that depletion is only one of the changes in the balance sheet. The physical and monetary values of depleted commercial and municipal fish catch were presented as an initial output for the fishery resource accounting.



1.3. OPERATIONALIZING THE FRAMEWORK

1.3.1. Sources of Data 13. The basic data requirements of the account using the Fox model are volume of catch and the fishing effort expressed in terms of horsepower. The Bureau of Agricultural Statistics (BAS) provided the data for total fish catch and producers’ price based on their surveys covering the period 1988 to 1998. Data on catch from 1983 to 1987 were retrieved from the Bureau of Fisheries and Aquatic Resources (BFAR) Statistical Profile. The total number of fishing boats and their corresponding gross tonnage and engine horsepower for commercial and municipal fishery were derived from the records of fishing vessel operators when they apply for a license from the office of the Philippine Coast Guard, BFAR and MARINA. Since these are available in raw form, processing of data on horsepower and gross tonnage from individual licenses issued to fishing operators was undertaken under the project1.

14. Gathered data were only restricted to a period of fifteen years covering 1983 to 1998. Data on total fish production, measured in metric tons, were gathered from landing centers and were classified into commercial and municipal fishing. Commercial fishing uses boats that are more than three gross tons while municipal fishing uses boats of three gross tons and below.

1.3.2 Estimation Methodology

Fish Stock

15. The Palawan Technical Working Group (PTWG) attempted to compute for the physical asset accounts of the fishery resource using the System of Integrated Economic and Environmental Accounting (SEEA) framework. However, results of stock assessment surveys of several reef areas of Palawan conducted independently by BFAR, PCSDS and NGOs were not sufficient to represent the stock of the province’s numerous fishing grounds.

Fish Catch

16. One of the data needed to derive variables on fishing effort, sustainable yield and depletion is the fish catch. Data on fish captured from commercial and municipal fishing were gathered focusing only on marine fishes. Fishery products such as shrimps, prawns and other invertebrates were excluded in the resource accounting. To show the status of Palawan’s fishery resource in terms of Maximum Sustainable Yield (MSY) for fishing, a series of data of at least fifteen years was compiled. An undercoverage of 20 percent was applied to compute for the total fish production (NSCB, 1994). It represents the assumed unrecorded fish catch in different landing sites not monitored by the survey conducted by BAS.

Fishing Effort

17. At the outset, the working group tried to estimate the stock based on the assumption that a coral reef yields an average 15.6 tons/km2/year (White, et. al.,

1 Processing of data from the files of individual operators was contracted in order to estimate the

horsepower of fishing vessels.



1998). However, this method was not deemed acceptable to the UNSD consultant since it only accounted for the growth for a particular year and did not provide the initial stock. It was further recommended that ICLARM should be consulted on the establishment of the baseline data and development of a model that can be adopted for the regular updating of the accounts.

18. Finally, the group adopted the Fox Model the data requirements of which are fish catch and total fishing effort (expressed in horsepower) to be able to come up with an estimated catch per unit effort (CPUE), sustainable yield and depletion. Absence of published data on the number of fishing vessels, gears used and number of fishers prompted the processing of raw data on fishing effort from individual records of fishing boat operators from boat licensing offices, namely, MARINA, Philippine Coast Guard and BFAR.

19. Initial results of the data processing from the records of the afore-mentioned agencies showed a big leap in the horsepower from 1991 to 1992 and 1997 to 1998. One of the possible causes of the erratic trend was the failure of some fishing operators to register their vessels for the year although their operation was uninterrupted. In 1992, the recording system may have been affected by the transfer of responsibilities on boat licensing from the Philippine Coast Guard and MARINA. Missing records were also noted. There were some municipalities with zero registration which is considered impossible and therefore erroneous. Meanwhile, intensified law enforcement activities of national agencies and local task forces in 1998 was believed to have been instrumental to the increase in the number of registered fishing boats.

20. In view of these observations, the PTWG reviewed the raw data processed by the contractor and conducted a rapid appraisal of the economic life span of fishing boats. As a result, duplicate entries were cancelled and the records corrected. A minimum period of eight years was applied to a fishing boat starting from the year it was built. Based on the adjusted data, the total horsepower of commercial and municipal fishing vessels was derived. It is noted however that this computed horsepower is underestimated. The equivalent fishing effort of the fishing gear and the fishers were not covered because of the absence of an inventory of gears used while there were no data on the number of fishers by type of employment, that is, on the number of full-time, part-time time and occasional fishers.

Sustainable Yield

21. Sustainable yield was estimated using the Fox Model. The equation below was used (Philippine Asset Accounts, 1998):

Y = E exp (a + b E)

where: Y = catch or yield from the resource E = fishing effort per unit time a = constant b = regression coefficient

22. The regression coefficient was determined by establishing the relationship between the time series data on fish catch and the estimated fishing effort.

Depletion



23. To compute for depletion, total actual catch was deducted from the sustainable yield. If the catch exceeds the sustainable yield, depletion then occurs. To value the cost of resource depletion, expressed as net rent, the net price method was used. Net rent is the value of the output per unit of measurement after deducting the expenses incurred in extracting the resource.

The equation used is as follows:

Depletion = Actual Catch less Sustainable Catch Net rent = Net price per unit x Depletion

1.4. RESULTS AND DISCUSSION

1.4.1. Share of the Fishery Sector to GPDP

24. Fishery is a major sector of the economy of Palawan. Estimates of the Gross Provincial Domestic Product (GPDP) in 1988 showed that agriculture, fishery and forestry accounted for about 54.2 percent of the provincial economy with fishery contributing 22.8 percent (Table 1.1). By 1994, the share of the fishery sector was slightly smaller at 20.6 percent but it still had contributed the second largest share to the total GPDP, next to agricultural crops.

Table 1.1. Gross Provincial Domestic Product Accounts, Palawan, 1988 and 1994 (In Million Pesos)

At Constant 1985 Prices Percent Sector 1988 1994 1988 1994

Agriculture, Fishery and Forestry

1,603.9

1,907.7

54.2

49.9

Agricultural Crops 602.0 866.0 20.4 22.7 Livestock and Poultry 166.2 253.3 5.6 6.6 Fishery 673.8 784.9 22.8 20.6 Forestry 161.8 3.4 5.0 0.1 Industry 459.7 636.9 15.6 16.7 Services 891.6 1274.4 30.2 33.4 G P D P 2,955.2 3819.0 100.0 100.0 Source: Development of the Gross Provincial Domestic Product (GPDP) Accounts for the Province of Palawan, NSCB, Provincial Government of Palawan, PCSDS, 1998 1.4.2 Fish Catch and Fishing Effort

25. During the entire 11-year accounting period, municipal fishery comprised the bulk of the total fish production (Table 1.2). On the average, catch of municipal fishers represented 74 percent of the total while commercial fishery accounted for the remaining 26 percent. Both municipal and commercial fishery showed an increasing trend in terms of catch.

26. Results of the comparative analysis of fish catch vis-à-vis fishing effort or the CPUE (Figure 1.3) also showed that the rate of increase in fishing effort was more than that of the fish catch. Total catch rose by 3.0 percent from 1988 to 1998 while fishing effort increased by about 21.4 percent.



Table 1.2. Estimated Volume of Catch of Marine Fishery Resource,

Palawan, 1988 - 1998

Fish Catch

Year Municipal Fishery (in metric ton)

Commercial Fishery

(in metric tons)

Total (in metric

tons) 1988 54,284 28,622 82,907

1989 56,264 32,456 88,721

1990 69,349 20,348 89,698

1991 73,624 21,066 94,690

1992 67,136 15,380 82,517

1993 68,108 25,426 93,534

1994 73,556 24,076 97,632

1995 74,580 20,579 95,159

1996 73,256 20,890 94,146

1997 81,731 26,082 107,813

1998 81,605 26,356 107,960 Source: BAS Central

Figure 1.3. Total Catch vis-à-vis Total Fishing Effort

-

20,000

40,000

60,000

80,000

100,000

120,000

1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

Tota

l Cat

ch (i

n m

etric

tons

)

-

20,000

40,000

60,000

80,000

100,000

120,000

Fish

ing

effo

rt (in

hor

sepo

wer

)

Total CatchFishing Effort (Hp)

1.4.3 Sustainable Yield and Depletion

27. Extraction of marine fish and utilization of the fishery resource in general cannot be left unregulated. However, in order to have a sound basis for managing and regulating the extraction of the resource, fish stock, sustainable yield and levels of depletion, if any, of the resource should be determined. Because attempts in this study to establish the sustainable yield was faced with the difficulty of meeting the data requirements of the SEEA framework, an approximation was arrived at using the Fox Model.

28. Table 1.3 shows the estimated sustainable yield and depletion of the marine fishery resource after combining the catch and effort of municipal and commercial fisheries. At the start of the accounting period in 1988, depletion was observed and



continued until 1991 but at a decreasing rate; from 20,727 metric tons, the level of depletion went down to 1,413 metric tons. Apparently, efforts by law enforcement agencies to curb destructive fishing methods were becoming effective. During this time, the government introduced interventions to put a stop or at least minimize harmful fishing practices and restrain over-fishing. The local government organized the Bantay Dagat, an inter-agency task force that was formed to enhance the monitoring of the coastal areas and went further to apprehending violators of fishery regulations and other environmental laws. From 1992 until 1995, there was no recorded depletion of the marine fishery resource.

29. However, in 1996, depletion of the marine fishery was again evident. Starting at a volume of 2,639 metric tons, it dramatically rose to 20,153 metric tons in 1997 and went further up to 23,607 metric tons in the following year. It is believed that initial headway reached in combating illegal fishing activities and destruction of the marine ecosystems during the early 90’s may have not been sustained.

30. Figure 1.4 presents the Sustainable Yield – Effort Curve with Maximum Sustainable Yield estimated at 101,954 metric tons and effort at 65,629 horsepower.

Table 1.3. Estimated Marine Fishery Resource Depletion, Palawan, 1988-1998

Year Total Catch Fishing

Effort (Hp) Sustainable

Yield Depletion

1988 82,907 19,958 62,180 20,727 1989 88,721 25,462 72,946 15,774 1990 89,698 34,415 86,023 3,675 1991 94,690 41,695 93,277 1,413 1992 82,517 47,120 97,050 - 1993 93,534 59,256 101,441 - 1994 97,632 67,391 101,918 - 1995 95,159 89,816 96,517 - 1996 94,146 101,047 91,507 2,639 1997 107,813 108,593 87,659 20,153 1998 107,960 114,715 84,354 23,607

Figure 1.4. Sustainable Yield - Effort Curve for Marine Fishery Resource, 1988 – 1998



50,000

60,000

70,000

80,000

90,000

100,000

110,000

- 20,000 40,000 60,000 80,000 100,000 120,000 140,000

Fishing Effort (in horsepower)

Sust

aina

ble

Yiel

d (in

met

ric to

n)

1988

1989 1990

19911992

1993

1994

1995

1996

1997

1998

Estimated Maximum Sustainable Yield = 101,954 metric tons

Estimated Maximum Fishing Effort = 65,629 horsepower 1.5. RECOMMENDATIONS 31. There are indications that the fishery resource of Palawan is now facing threats. Based on the initial findings of the study, the volume of depletion of marine fishery resource is rising at an increasing rate. However, to have a more solid basis for evaluating the condition of the resource and in the formulation of the appropriate policy interventions, the SEEA framework should be fully operationalized. Foremost is the need to satisfy the data needs of the framework. Along this line, follow-on activities are recommended in order to meet the requirements of the fishery resource accounting, namely:

a. Resource assessment should be conducted to be able to establish the

fish stock. b. Close monitoring of fishing activities and regular collection of data

should be strengthened. Among the data that should be compiled are: (a) fish catch by species; (b) number of fishermen and terms of employment, that is, whether full-time, part time, or occasional; (c) number of fishing boats with corresponding horsepower; and (d) inventory of fishing gears.

c. The prevailing price of fishery products by species should be gathered

as well as cost of production to facilitate monetary valuation. d. Installation of Municipal Fishery Licensing System to keep a record of

operating fishing vessels. This will help in determining the pressure to the coastal area as a result of fishing. It will also provide baseline information that can be subsequently used for regulatory and revenue purposes.



e. Strengthen collaboration with the provincial offices of national agencies and the municipal offices in the compilation of data that they generate through locally initiated surveys and in the exercise of their regulatory functions. These data should be incorporated into their regular reports.

f. Conduct of studies to gather a more comprehensive data on cultivated

and non-cultivated fish stock for both marine and fresh water bodies 32. Moreover, it is emphasized that the economy of Palawan is still hinged on the agricultural sector, in particular, crop farming and fishery, which are the population’s major sources of livelihood. While this study is focused on the fishery resource, it should not be overlooked that most fishers also cultivate small farm lots to augment their income. Further, because of the topography of the province, its coastal areas and marine resources are especially vulnerable to adverse environmental activities in the terrestrial areas. Aside from the destruction of the mangrove and marine ecosystems that have direct impact on the resource, activities in the terrestrial areas (e.g., lowland and upland farming) also affect the coastal areas. As such, depletion of the resource is not only the effect of harmful fishing practices but may also be the result of equally harmful farming techniques. Fishing and farming should therefore be addressed through parallel interventions. It is imperative that both sectors be afforded immediate attention in terms of policy and program formulation. 33. Meanwhile, efforts to mitigate the problems on illegal fishing call for stricter implementation of fishery laws and related environmental laws primarily to protect and conserve the coastal marine ecosystem and its natural resources. Formulation of municipal and barangay ordinances to support national policies is likewise recommended.



ACRONYMS

BAS Bureau of Agricultural Statistics

BFAR Bureau of Fisheries and Aquatic Resources

CPUE Catch Per Unit Effort

GT Gross Tonnage

Hp Horsepower

ICLARM International Center for Living Aquatic Resources Management

MARINA Maritime Industry Authority

MSY Maximum Sustainable Yield

MT Metric Tons

NGO Non-Government Organizations

PCSDS Palawan Council for Sustainable Development Staff

PTWG Provincial Technical Working Group Members

SEEA System of Integrated Economic and Environmental Accounting

UNSD United Nations Statistics Division

JAFTA Japan Forest Technical Association



DEFINITION OF TERMS

Depletion is the extraction of fishery resources beyond the rate of natural growth, measured as a positive difference between catch and sustainable yield. It occurs when the total catch exceeds the natural growth.

Commercial Fishing is fishing for commercial purposes in sea waters with the use

of fishing boats of more than three gross tons. Fishing Boat refers to the watercraft used for catching and transporting of

fish resources from seawaters. Fish Catch refers to the volume of fish landed by commercial and

municipal fishery industry. Fishing is the catching, gathering and culturing of fish, crustaceans,

mollusks, and all other aquatic animals and plants in the sea or in inland waters. It includes the catching of fish and aquatic animals like turtles; the gathering of clams, snails, shells and seaweeds; and the culturing of fish and oysters. Sport fishing or small sale fishing pursued as a hobby is excluded.

Fishing Effort refers to manpower, machine power and technology employed

in harvesting fishery resources yielding to catch per unit effort. It is measured in terms of horsepower.

Fishing Gears are equipment used in catching fish with or without the use of

boats. Marine Fishery refers to the fishing activity at the seawaters outside of the

coastal line.

Municipal Fishing is characterized by the use of simple gear and fishing boats some of which are non-motorized and with a capacity of three and less than three gross tonnage.

Horsepower is the work done at the rate of 550 foot-pounds per second and

it is equivalent to 745.7 watts



REFERENCES Bureau of Agriculture Statistics. Production Fishery Production Statistics, Production

Statistics, BAS. 1988 – 1993. BAS, Quezon City. Bureau of Fisheries and Aquatic Resources. 1997 Philippine Fisheries Profile. BFAR.

Quezon City. Ilarina, Vivian. Compilation of Resource Accounts (Selected Case Studies) Fishery

Resources. International Workshop on Environmental and Economic Accounting. September 2000. Manila, Philippines.

Ministry of Human Settlements. Town Planning Guidelines and Standard, Economic

Sector, 1982. National Statistics Office. 1995 Census of Population (Palawan). Palawan Integrated Area Development Project, Phase II Final Report. Volume 2-

Production Component Annexes. February 1990. Philippine Asset Accounts. ENRA Report No. 2. May 1998. NSCB. Japan Forest Technical Association (JAFTA). Forest Register (Palawan). Information

System Development Project for the Management of Tropical Forest. 1992. White, Allan, et al. The Value of Philippine Coastal Resources: Why Protection and

Management are Critical. 1998. Coastal Resource Management Project. DENR and United States Agency for International Development. Cebu City, Philippines.


Palawan Forest Resource


FOREST RESOURCE 2.1 INTRODUCTION 1. Palawan is situated in the southwest part of the Philippine Islands chain. Palawan stands as the country's largest province with its 1.5 million hectares land area. Tall mountain ranges bisect the province into east and west coast. The east coast has narrow beaches and a swampy shoreline, backed by plains and short valleys. The west coast is more rugged, with mountains rising up near the sea, and narrow lowlands. Palawan, often intriguingly described as "The Last Frontier" and "Paradise Lost", is home to vast rainforests, underground rivers and cave systems, mangrove swamps, and rare species of flora and fauna found only in the Philippines. Palawan’s forest area of 647,090 ha accounts for 43 percent of its total land area (NAMRIA, 1985 and JAFTA, 1992). 2. The objective of this study is to account for the physical and monetary stock of the forest resources from 1988 to 1999 and to determine the factors that contribute to the changes. Ultimately it aims to come up with relevant recommendations in the proper management of the resource.

3. Palawan’s forests are classified into four different types, namely, dipterocarps, submarginal, mossy and mangrove forest. Dipterocarp forests are further classified as either old growth or second growth. Old growth dipterocarp forests are virgin forests with no traces of commercial logging, while second growth dipterocarp forests are those with traces of logging (NSCB, 1998). The dipterocarp forest is the principal Indo-Malayan tropical rainforest formation. It is one of the world’s three main tropical rainforests in addition to the tropical American and African rainforests. Several layers of vegetation and a multiplicity of tree species characterize these tropical rainforests. The dipterocarp forest is not a pure stand of tree species belonging to the family Dipterocarpaceae but rather a mix forest consisting of species of various families with the dipterocarp as dominant component. 4. Philippine dipterocarps are mostly medium to large sized trees, unbranched to a considerable height and usually attain a height of 40 to 65 meters in diameter at breast height (dbh) or diameter above buttress (dab) of 60 to 150 centimeters. A few unusually large trees have been found to attain a dab as large as 30 cm, their boles are generally straight and regular (Whitford, 1911; Tamesis and Aguilar, 1951). In terms of economic importance, the family Dipterocarpaceae produces the greatest bulk of commercial wood in the country sold worldwide under the trade name “Philippine Mahogany”. Dipterocarp timber constitutes the bulk of our country’s log exports and wood for domestic building construction and infrastructure development (NSCB, 1998). 5. Mangroves are coastal trees or shrubs that are adapted to estuarine or even saline environments. The term mangrove refers to the individual plants, whereas mangal refers to the whole community or association dominated by these plants. Mangroves have characteristic features that allow them to live in marine waters (Calumpong and Meñez, 1996).

Palawan Forest Resource 16


6. Mangroves minimize soil erosion and pollution of seawater. Its extensive air root system traps eroded soil and industrial pollutants especially during strong rains; aids in reclaiming considerable land area, shelterbelt against tidal waves, typhoons and strong winds; wildlife habitat; increase fish and shellfish productivity; provides alternative wood supply, and industrial inputs such as resin for plywood, adhesive manufacture, fuelwood and high grade charcoal, tanning for dyeing hide into leather, viscose rayon for textile fabric manufacture; livestock feed supplement, medicine and wine, vinegar and thatching materials from nipa (Soriano and Fortes, 1987). It is also for these reasons that mangrove forests are drastically exploited. To address possible loss of mangrove genetic diversity or a much worse scenario of the entire mangrove forest area of the province being wiped out, Palawan’s mangrove area has been declared a Mangrove Swamp Forest Reserve on December 29, 1981. 7. Rattan is a climbing palm which has a versatile stem of high economic value. It is one of the most important non-timber forest products of Palawan. It is used in the manufacture of fine handicrafts, furniture and furniture components, binding materials, fish traps, hammocks, sleeping mats, carpet beaters, hats, walking sticks, tool handles and others. Palawan is a major source of rattan poles for furniture centers like Manila, Iloilo and Cebu. It is a major livelihood source for poor and indigenous communities who are tapped by most rattan permittees for cane gathering and processing. 8. Among the many non-timber forest resources, rattan is being prioritized in this accounting effort in view of its worsening state. Unlike bamboo, rattan is not so prolific. Since rattan is co-terminus with dipterocarp forests, rattan is subject to the damages caused by logging of its tree hosts. 2.2 CONCEPTUAL FRAMEWORK

2.2.1. Scope and Coverage

9. The system of forest resource accounting calls for the compilation of asset accounts for area (in hectare) and volume of standing trees (in cubic meter) and non-timber forest products. However, for this study, the accounting is limited to the asset accounts of dipterocarp forest (old growth and secondary growth), mangrove forest, and rattan. These resources were included in the accounting process because of their economic and ecological significance and in consideration of the availability of data.

2.2.2. Framework for the Asset Account

10. The forest accounts, in physical and in monetary terms, adopted the format presented on the next page. The opening stock represents the stock of resources at the beginning of the accounting period. Several factors account for the changes in stock including changes due to economic activities, other accumulation, and other volume changes representing the changes due to non-economic factors. Other volume changes include the statistical discrepancy equivalent to the difference between the computed closing stock (based on the framework’s identified factors) and the opening stock of the succeeding year. The closing stock for a year is equal to the opening stock of the succeeding year.



Figure 2.1. Asset Accounts Framework

OPENING STOCK

Changes due to economic activity Assisted regeneration Legal Logging Unauthorized cutting Damage from logging

Other Accumulation

Forest Conversion

Other Volume Changes Stand growth Mortality Forest fires Natural Disasters

Changes in stock

CLOSING STOCK

11. Changes due to economic activity refer to human production activities as they affect the stock of resources. Assisted regeneration is caused by human intervention in regenerating natural forests such as plantations and reforestation activities. Legal logging refers to the commercial logging done by concessionaires from 1988-1992 when commercial logging was still allowed in the province. Legal logging data from 1993 onwards account for harvest manifestations from areas with known Certificate of Stewardship Contracts (CSC) as proof of right in the management of the awarded forest area. The item unauthorized cutting, on the other hand, accounts for illegally extracted resources as manifested by confiscated forestry products during apprehension. Damage from logging accounts for forest resource damages, which resulted in the actual conduct of the logging activity.

12. The item other accumulation covers forest conversions which mainly refers to clearing of forest to convert it to other uses such as for residential or industrial purposes. Under other volume changes, additions to the stock include natural stand growth and regeneration while reductions to the forest cover are mortality, forest fires and natural disasters.

2.3 OPERATIONALIZING THE FRAMEWORK

2.3.1. Sources of Data Physical Accounts 13. The base information for forest area was lifted from the 1992 JAFTA LandSat Thematic Mapper and 1985 aerial photographs from NAMRIA, covering mainland Palawan. Stock volume was projected using information available from the RP-German Forest Resource Inventory Project (FRIP). The project generated data on the inventory of standing volume, forest regeneration and minor forest products from national agencies and LGUs.



14. For dipterocarp forests, data for depletion due to legal logging and unauthorized harvesting were taken from the Provincial Environment and Natural Resources Office (PENRO) and Community Environment and Natural Resources Offices (CENRO) of the DENR, Economic Intelligence and Investigation Bureau (EIIB), and Bantay Palawan, a multi-sectoral task force that conducts apprehension of illegal loggers. 15. For mangrove forests, data came from DENR-PENRO, CENROs, and Municipal Planning and Development Offices (MPDOs). Rattan data were lifted from the RP-German FRIP and records of the DENR-PENRO, Bantay Palawan and EIIB.

Monetary Accounts

16. Parameters used in the computation of stumpage value for rattan were supplied by the National Statistics Office, National Statistical Coordination Board and Pio Bote’s 1990 study on stumpage value for dipterocarp forest.

2.3.2. Estimation Methodology 17. Physical asset accounts for old and second growth dipterocarp forest and mangrove consisted of area and volume accounts while accounts for rattan were limited to volume only. On the other hand, the study came up with the monetary valuation only for dipterocarp forest and rattan. There was no available information on the stumpage value of mangrove forest.

Physical Asset Accounts, Area

a. Old Growth Dipterocarp Forest

18. In the compilation of the physical asset accounts, the forest stock in area terms were projections from the 1985 NAMRIA aerial photographs and 1992 JAFTA satellite imagery covering mainland Palawan only. Legal logging in old growth forests from 1988-1992 were still covered by Timber License Agreements before the implementation of the total commercial log ban in the entire province.

19. Other changes under other volume changes represent the statistical discrepancy (S.D.) or the unaccounted factors in the changes in area. It is derived as the reported closing area during the year, taken from the official sources, less the computed closing area, derived by summing up the opening area, changes due to economic activity, changes due to other accumulation and the identified other volume changes.

b. Second Growth Dipterocarp Forest

20. Changes due to economic activity include assisted regeneration/plantation or reforestation, the accounted legal logging and logging damage. Assisted regeneration comprised the area covered by those forest areas with Certificate of Stewardship Contracts (CSC) such as Integrated Social Forestry (ISF) Program, Community Based-Forest Management Agreements (CBFMA), Industrial Tree Plantation (ITP) and agro-forestry projects. Legal logging area was derived from the total area covered within ISF/CBFM



concessions, ITP and agro-forestry areas times 80 percent1. The estimated damage due to logging was placed at 15 percent of logged area (legal and illegal logging) in old growth forests during the previous year. Other accumulation includes data covered by old growth forest converted to second growth forest and other non-forest land use and areas devoted/converted to kaingin or upland farming. The area converted from old growth to second growth is equal to the area logged in old growth forest in the previous year less 15 percent for log landings, roads and skidding/yarding trails. Other volume changes account for area covered by forest fires and statistical discrepancy (S.D.) or the unaccounted factors in the changes in area.

c. Mangrove Forest

21. Mangrove forest area was likewise derived from the same geometric projections as that of the dipterocarp forest. Changes due to economic activity includes plantation and reforestation efforts, which are treated as an addition to stock, and unauthorized mangrove harvesting, and charcoal making, which are treated as reduction to the stock. Mangrove forest conversions to fishpond development were the activities that contributed to area deductions under other accumulation and as such also treated as reduction to the stock. Statistical discrepancy (S.D.) was likewise accounted for under other volume changes.

d. Rattan

22. No separate area accounts for rattan were compiled since rattan thrives in the same area as that of dipterocarp forest.

Physical Asset Accounts, Volume

a. Old Growth Dipterocarp Forest 23. Opening volume was derived from area projections multiplied by harvestable volume of 180.2 cu. m. per hectare computed from the FRIP. Legal and unauthorized logging were regarded as depletion as adopted from actual data generated from EIIB, DENR-PENRO and CENRO’s monthly accomplishment reports. Other changes (S.D.) were computed using the same procedure as in the area accounts.

b. Second Growth Dipterocarp Forest

24. Opening and closing volume were likewise derived from the area projections in second growth dipterocarp following the same sources and multiplying the computed area by 142 cu.m. per hectare, harvestable volume for second growth dipterocarp forest based on the results of the FRIP.

25. Damage from logging, kaingin, and forest fires were treated as depletion from stock while old growth conversion to second growth was accounted as addition. All derivations were obtained using the same assumed 142 cu.m. per hectare harvestable volume. Meanwhile, stand growth under other volume changes was computed by multiplying the opening area with the annual growth rate of 4.735 cu. m. per hectare based on the study of Uriarte and Virtucio in 1988.

1 It is assumed that the actual area logged is 80 percent while 20 percent will remain as second growth forest.



c. Mangrove Forest

26. Volume determination was based on a special study conducted by the PCSDS; the results of which showed that the average volume was 128.93 cu. m. mangrove timber per hectare. The mangrove timber volume was multiplied to the opening and closing area based on the 1985 NAMRIA aerial photographs and 1992 JAFTA LandSat TM.

27. Unauthorized harvesting data were lifted from DENR-CENRO, Roxas. Stand growth for other volume changes was based on young growth of 1.1 cu. m. per hectare per year derived from the study entitled Physical Forest Resources of Palawan by Carandang (1994).

d. Rattan

28. Data on rattan include the average rattan occurrence in both old growth and secondary growth forests. Separate estimates were made for rattan poles with diameters of less than two centimeters (< 2 cm) and that for poles greater than two centimeters (> 2 cm). The opening volume was computed based on the average rattan occurrence of 1,060.7 lineal meter and 946.3 lineal meter per hectare of < 2 cm poles in old growth and residual forests, and 393.2 lineal meter and 224.1 lineal meter for pole > 2 cm in the same types of forests, respectively, as indicated in the FRIP.

29. Depletion in stock comes from legal and illegal harvests derived from actual data reflected in the PENRO and CENRO reports. Logging damages were estimated at 36 percent of total merchantable length, which remain as waste due to preliminary processing, and those left in high trees. It was derived by multiplying the total volume of harvested rattan by 36 percent. Mortality for other volume changes were estimated at 5 percent as adopted from Pabuayon (1991). It was computed by multiplying the opening volume of rattan by 5 percent. Monetary Asset Accounts

a. Dipterocarp Forest

30. The net price method was used in valuing forest resources. The economic or monetary accounts were derived by multiplying the volume accounts by the stumpage value of the forest product. The stumpage value is the value of the standing timber and it was based on the market prices of logs less harvesting cost, overhead cost and margin for profit and risk (MPR). The stumpage value represents the potential economic rent accruing to operators. Revaluation is equivalent to the differences due to changes in prices between the opening and closing periods.

31. The sale value of log is equal to the weighted selling price of the product. The cost items include logging cost, pre-logging cost, post logging cost, road construction, transportation and overhead costs. Logging cost represents felling and bucking costs and the cost of pulling the logs from the felling site to the log landing. The costs are classified by terrain type, by extractable log volume, and by logging methods. Pre-logging cost represents the cost of activities such as pre-logging inventory and tree marking. Post-logging cost is the cost of post logging residual stand inventory, and enrichment planting conducted by the



private forest users or the concessionaires. Road construction cost is the cost incurred in road construction in peso/kilometer/cubic meter of harvest. Transportation cost involves the cost of transporting a cubic meter of log from the forest landing to the processing mill or log pond, in peso/km/cu. m. It includes the depreciation value of trucks and loaders used, wages of drivers and helpers, fuel and oil used in operation. Overhead costs cover representation or relevant administrative expenses (NSCB, 1998). The stumpage value for 1990 was taken from the results of Pio Bote’s study. The stumpage values for other years were estimated using the 1 + g of log prices (per cubic meter). The computed stumpage value for residual forest was assumed to be 50 percent of the value of old growth forest. For old growth forest at current prices, the opening stock was multiplied by the stumpage value of the preceding year and all the other items in the asset accounts for a given year were multiplied by the stumpage values of the current year. The computed Log Price Index with base year 1985 was applied to the current price estimates to derive the constant 1985 prices for both old and second growth dipterocarp.

b. Rattan

32. The monetary accounts for rattan are computed as stumpage value multiplied by the physical units. The net price or stumpage value is equal to market price of rattan at the manufacturer’s (factory) level less production/extraction cost (equal to the price paid to cutter/harvester), less marketing/handling cost (which includes cost of transport, bundling, classifying, scraping, chemical treatment), and less MPR. This procedure of net price method valuation, adopted from NRAP, considers the concept of economic rent (or profit) for natural resource valuation. 33. The stumpage value is equated to the rent defined as market price less total cost less MPR, which is 30 percent of total cost. Total cost comprises the production cost and marketing cost. The stumpage value is derived as the weighted average of the stumpage values by location and diameter class, for small and large diameter rattans. The resulting stumpage values are P 1.00/lm and P 1.41/lm for small and large diameter rattans, respectively for 1992. The stumpage values for the other years were derived by adjusting the 1992 level by the changes in the IPIN of forestry. Monetary accounts at constant 1985 prices were then derived by applying the same IPIN to deflate the monetary accounts at current prices. 2.4 ANALYSIS, RESULTS AND DISCUSSIONS 34. Tables 2.1 to 2.16 contain the estimated asset accounts for forest resources. Physical asset accounts are shown in Tables 2.1 to 2.3, 2.7 to 2.8, and 2.11 to 2.13 for old and second growth dipterocarps, mangrove and rattan accounts. Monetary asset accounts shown in Table 2.4 to 2.6, 2.9 to 2.10 and 2.14 to 2.16 show the accounts for old and second growth dipterocarps and rattan.

2.4.1. Old Growth Dipterocarp Forest 35. Forest area planted to old growth dipterocarp forest steadily declined from 1988 to 1999 inspite of the imposition of the total commercial log ban in 1992 (Table 2.1). From the closing stock of 339,208 hectares in 1988, total forest area decreased to 163,218 hectares in 1999. Similarly, old growth dipterocarp timber



volume recorded a total decrease of 31,713 thousand cu. m. or 52 percent depletion in stock from 1988 to 1999 giving an average annual decrease of 2,883 thousand cubic meters (Table 2.2). However, the volume was observed to decrease at a decreasing rate. The factors contributing to the decrease in the volume include: i) legal logging from 1988-1992 accounting for both harvest and damages, ii) unauthorized harvesting or timber poaching, and iii) forest area conversion from old growth dipterocarp forest to second growth dipterocarps.

Table 2.1. Area Accounts of Old Growth Dipterocarp Forests, 1988-1999 (in hectares)

VARIABLES 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 OPENING AREA a/ 353,824 339,208 323,769 307,708 291,219 274,487 257,684 240,970 224,489 208,370 192,725 177,649

Changes due to

economic activity

Deforestation:

Logged area b/ 574 1,049 846 748 229

(Legal logging)

Unauthorized 0.23 1 3 9 0.07 156 13 6 3 2 1 46

cutting/illegal

logging c/

Other accumulation

Forest conversion

Other volume

Changes

Other changes (S.D.) - 14,042 14,389 15,212 15,732 16,503 16,647 16,701 16,475 16,116 15,643 15,075 14,385

Changes in stocks (-) 14,616 15,439 16,061 16,489 16,732 16,803 16,714 16,481 16,119 15,645 15,076 14,431

CLOSING AREA 339,208 323,769 307,708 291,219 274,487 257,684 240,970 224,489 208,370 192,725 177,649 163,218

a/ See Appendix Table 2.3 b/ Logged area = volume logged/legal logging (see Table 2.2) divided by 180.2 cu. m. c/ Unauthorized cutting = illegal logging or unauthorized cutting (see Table 2.2) divided by 180.2 cu. m. Table 2.2. Volume Accounts of Old Growth Dipterocarp Forests, 1988-1999 (in

thousand cubic meters)

VARIABLES 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 OPENING STOCK 63,759 61,125 58,343 55,449 52,478 49,463 46,435 43,423 40,453 37,548 34,729 32,012 Changes due to economic activity Legal logging/harvest a/ 103 189 153 135 41 Unauthorized cutting/ illegal logging (confiscated) b/ 0.04 0.11 0.54 2 0.01 28 2 1 1 0.43 0.13 8 Other accumulation Forest conversion Other volume Changes Stand growth Other changes (S.D.) -2,531 -2,593 -2,741 -2,834 -2,974 -3,000 -3,010 -2,969 2,904 -2,819 -2,717 -2,592

Changes in stocks -2,633 -2,782 -2,894 -2,971 -3,015 -3,028 -3,012 -2,970 -2,905 -2,819 -2,717 -2,600CLOSING STOCK 61,125 58,343 55,449 52,478 49,463 46,435 43,423 40,453 37,548 34,729 32,012 29,412

a/ See Appendix Table 2.8 b/ See Appendix Table 2.9

36. The monetary value of closing stocks for old growth forests at current prices decreased by P 2.6 billion from 1988 to 1999, equivalent to P 234 million annually. (Table 2.3). Stumpage values at current prices are reflected in Tables 2.5. At constant prices, the value shrank significantly from P 55.3 billion in 1988 to P 26.6 billion in 1999. The average reduction that resulted from the changes in the stocks in the old growth forests was equivalent to P 2.6 billion per year or an annual decline of 6.4 percent (Table 2.4).



Figure 2.2 Area and Volume Accounts of Old Growth Dipterocarp

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

year

in h

ecta

res

area

volume

Table 2.3. Economic Accounts of Old Growth Dipterocarp Forest at Current Prices,

1988-1999 (In million pesos)

VARIABLES 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

OPENING STOCK 63,841 67,812 65,963 63,434 67,772 74,493 74,225 74,388 71,163 71,114 69,492 65,735 Changes due to economic activity Legal logging/harvest a/ 114 214 175 174 62 Unauthorized cutting/ illegal logging (confiscated) b/ 1.109 0.124 0.618 2.583 0.015 44.757 3.426 1.759 1.894 0.860 0.267 17.745 Other accumulation Forest conversion Other volume Changes Stand growth Other changes (S.D.) -2,808 -2,932 -3,136 -3,660 -4,479 -4,795 -5,156 -5,223 5,500 -5,641 -5,579 -5,749

Changes in stocks -2,921 -3,145 -3,311 -3,837 -4,541 -4,840 -5,160 -5,225 -5,502 -5,641 -5,579 -5,767 Revaluation 6,893 1,297 782 8,175 11,262 4,572 5,322 2,000 -5,547 4,019 1,823 5,270

CLOSING STOCK 67,812 65,963 63,434 67,772 74,493 74,225 74,388 71,163 71,114 69,492 65,735 65,238

Table 2.4. Economic Accounts of Old Growth Dipterocarp Forest at Constant

Prices, 1988-1999 (In million pesos) VARIABLES 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

OPENING STOCK 57,732 55,347 52,828 50,208 47,518 44,788 42,046 39,319 36,629 33,999 31,446 28,986 Changes due to economic activity Legal logging/harvest a/ 93 171 139 122 37 Unauthorized cutting/ illegal logging (confiscated) b/ 0.91 0.10 0.49 1.81 0.01 25.35 1.81 0.91 0.91 0.39 0.12 7.24 Other accumulation Forest conversion Other volume Changes Stand growth Other changes (S.D.) -2,292 -2,348 -2,482 -2,566 -2,693 -2,716 -2,725 -2,688 2,630 -2,553 -2,460 -2,347

Changes in stocks -2,384 -2,519 -2,620 -2,690 -2,730 -2,742 -2,727 -2,689 -2,630 -2,553 -2,460 -2,354

CLOSING STOCK 55,347 52,828 50,208 47,518 44,788 42,046 39,319 36,629 33,999 31,446 28,986 26,632



Table 2.5. Stumpage Value for Natural Forest Stands at Current Prices, 1988-1999

Log Prices Stumpage Value at current prices P per '000 Board ft. P per cu.m.

1+g Old Growth (P/cu.m.)

2nd Growth (P/cu.m.)

Log Price Index 85 Year

(1) (2) (3) (4) (5) (6) 1984 6,975 2,957 102.60 1985 6,798 2,882 905 453 100.00 1986 6,689 2,836 0.983924 891 445 98.39 1987 7,517 3,187 1.123886 1,001 501 110.58 1988 8,329 3,532 1.107960 1,109 555 122.52 1989 8,488 3,599 1.019128 1,131 565 124.86 1990 8,589 3,642 1.011840 1,144 572 126.34 1991 9,696 4,111 1.128871 1,291 646 142.62 1992 11,307 4,794 1.166180 1,506 753 166.33 1993 12,001 5,088 1.061380 1,598 799 176.53 1994 12,862 5,453 1.071707 1,713 857 189.19 1995 13,207 5,600 1.026881 1,759 880 194.28 1996 14,219 6,029 1.076627 1,894 947 209.17 1997 15,023 6,370 1.056507 2,001 1,000 220.98 1998 15,417 6,537 1.026231 2,053 1,027 226.78 1999 16,653 7,061 1.080174 2,218 1,109 244.96

NOTES: (1) data taken from NSO (2) converted prices from board ft. to cubic meter (1) multiplied by 0.424 (3) price changes of logs (1+g) (4) 1990 stumpage value for dipterocarp was taken from Pio Bote's study. The stumpage values for the other years

were derived by adjusting the 1990 level by the changes in log prices (3) (5) stumpage value for second growth is assumed to be 50% of the SV of old growth (6) price index of log prices (in cubic meters) with 1985 as base year Sources: National Statistical Coordination Board National Statistics Office

2.4.2. Second Growth Dipterocarp Forest 37. Timber volume of second growth dipterocarp is increasing in direct proportion to the increase in the area. The 1988 closing stock of second growth forest area of 216,057 hectares increased to 392,406 hectares in 1999 (Table 2.6). The noticeable appreciation of the second growth forests is mainly due to controlled harvests as a result of the conservation measures and the intensified forest protection efforts of the government specifically for the years 1994 and 1995. Table 2.6. Area Accounts of Second Growth Dipterocarp Forests, 1988-1999 (in

hectares) VARIABLES 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 OPENING AREA a/ 199,732 216,057 232,691 249,531 266,470 283,395 300,193 316,750 332,959 348,718 363,932 378,518 Changes due to economic activity Assisted regeneration/ reforestation b/ 21 540 692 163 364 834 21,747 4,762 4 82 153 241 Legal logging c/ 282 1,700 1,026 1,006 484 966 866 758 1,207 600 3,520 Damage from logging 86 157 127 112 34 24 2 1 1 0.36 0.11 Other accumulation Forest area converted from old growth to second growth (+) 488 892 722 636 194 133 11 6 3 2 1 Kaingin (-) d/ 13 61 105 11 86 83 225 210 0.50 Other vol. changes Forest fires d/ 13 9 7 16 65 35 9,456 23 Other changes (S.D.) + 16,586 17,392 16,439 17,213 16,591 16,882 -4,422 12,298 17,105 15,990 24,097 17,190Changes in stocks (+) 16,325 16,634 16,840 16,939 16,925 16,798 16,557 16,209 15,759 15,214 14,586 13,888CLOSING AREA 216,057 232,691 249,531 266,470 283,395 300,193 316,750 332,959 348,718 363,932 378,518 392,406

a/ See Appendix Table 2.3 c/ See Appendix Table 2.10 b/ See Appendix Table 2.11 d/ See Appendix Table 2.13



38. Second growth dipterocarp timber volume increased by 25,042 thousand cu. m. from 1988 to 1999 with an average annual increase of 2,277 thousand cu. m. per year (Table 2.7). This represents an 82 percent increase in timber volume over the twelve-year period. Several factors contributed to the increase including the occurrence of reforestation and assisted natural regeneration activities and old growth forest area being converted to second growth forests. Table 2.7. Volume Accounts of Second Growth Dipterocarp Forests, 1988-1999 (In

thousand cubic meters)

VARIABLES 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 OPENING STOCK 28,362 30,680 33,042 35,433 37,839 40,242 42,627 44,979 47,280 49,518 51,678 53,750 Changes due to economic activity Legal logging/harvest 40 241 146 143 69 137 123 108 171 85 500 Damage from logging 12 22 18 16 5 3 0.28 0.14 0.07 0.05 0.02 Other accumulation Forest conversion: Old growth to second growth forest (+) 69 127 103 90 28 19 2 1 0.40 0.29 0.09 Kaingin 2 9 15 2 12 12 32 30 0.07 Other volume changes Stand growth 946 1,023 1,102 1,182 1,262 1,342 1,421 1,500 1,577 1,651 1,723 1,792 Forest fires 2 0.14 1 2 9 5 1,343 3 Other changes (S.D.) 1,412 1,523 1,330 1,286 1,145 1,173 1,040 921 852 631 1,722 683

Changes in stocks 2,318 2,362 2,391 2,405 2,403 2,385 2,352 2,301 2,238 2,160 2,072 1,972CLOSING STOCK 30,680 33,042 35,433 37,839 40,242 42,627 44,979 47,280 49,518 51,678 53,750 55,722

Figure 2.3 Area and Volume Accounts of Second Growth Dipterocarp

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

year

in h

ecta

res

area

volume

39. The monetary value of second growth forest, on the other hand, showed an increasing trend with an annual average increase of P 4.1 billion at current prices and P 1.0 billion at constant prices (Tables 2.8 and 2.9). This can be attributed to the continuous increase in the value of its closing stocks brought about by the increasing stumpage values and area.



Table 2.8. Economic Accounts of Second Growth Dipterocarp Forest at Current Prices, 1988-1999 (In million pesos)

VARIABLES 1988 1989 1990 1991 1992 1993 1994 1995 1997 1998 1999 OPENING STOCK 14,199 17,018 18,679 20,268 24,433 30,303 34,069 38,527 46,892 51,703 55,187 Changes due to economic activity Legal logging/harvest 22 136 84 92 52 105 95 162 85 555 Damage from logging 12.58 11.62 4.00 2.57 0.25 0.13 0.07 0.05 0.02 Other accumulation Forest conversion: Old growth to second growth forest (+) 39.01 72.64 66.51 67.77 22.38 16.27 1.76 0.95 0.40 0.30 0.10 1.29 6.78 11.99 1.71 10.55 11.36 32.02 30.80 0.08

1996 41,586

10912.05

Kaingin

Other volume changes Stand growth 525 578 630 763 950 1,073 1,217 1,319 1,493 1,652 1,769 1,987 Forest fires 0.11 0.80 1.76 8.52

830 862 938 891 810 807 631 1,768 757Changes in stocks 1,286 1,335 1,553 1,810 1,906 2,015 2,024 2,119 2,161 2,127 2,187

Revaluation 1,489 114 2,480 4,005 1,647 2,244 835 2,844 2,443 -53 3,312

CLOSING STOCK 18,679 20,268 24,433 30,303 34,069 38,527 41,586 46,892 51,703 55,187 61,798

VARIABLES 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 OPENING STOCK 12,841 13,890 14,959 16,042 17,131 18,219 19,299 20,364 21,405 22,419 23,397 24,335 Changes due to economic activity Legal logging/harvest 18 109 66 65 31 62 56 49 77 0 226 Damage from logging 9.96 8.15 7.24 2.26 1.36 0.13 0.03 0.02 0.01 Other accumulation Forest conversion: Old growth to second growth forest (+) 31.24 57.50 46.63 12.68 8.60 0.91 0.45 0.18 0.13 0.04 Kaingin 4.07 6.79 0.91 5.43 5.43 14.49 13.58 0.03 Other volume changes Stand growth 463 499 535 571 608 643 679 714 747 780 811 0.91 0.06 0.45 0.91 4.07 2.26 608.03

1.29 5.00 1,378.9 3.33 Other changes (S.D.) 783 861 761

1,368

85

17,018

Table 2.9. Economic Accounts of Second Growth Dipterocarp Forest at Constant 1985 Prices, 1988-1999 (In million pesos)

38 0.06

40.750.91

428

Forest fires 1.36 Other changes (S.D.) 639 690 602 582 518 531 471 417 386 286 780 309

Changes in stocks 1,049 1,069 1,082 1,089 1,088 1,080 1,065 1,042 1,013 978 938 893

CLOSING STOCK 13,890 14,959 16,042 17,131 18,219 19,299 20,364 21,405 22,419 23,397 24,335 25,228

2.4.3. Mangrove Forest

40. The total mangrove forest decreased to 28,368 hectares in 1999 from 35,886 hectares in 1988 (Table 2.10). Following the same trend, there was a significant decrease in timber volume from 4.6 million cu. m. in 1988 to 3.7 million cu. m. in 1999 (Table 2.11). Total decrease in area was 7,518 hectares during the twelve-year period from 1988 to1999 with a corresponding timber volume decrease of about 969 thousand cu. m. or 2.1 percent. Consequently, there was an average volume decrease of 88,091 cu. m. per year. A number of factors contributed to the decrease including conversion of mangrove areas to fishpond, harvesting of trees for charcoal making, and tan barking activities which is believed to have led to the death of the plant.



Table 2.10. Area Accounts of Mangrove Forests, 1988-1999 (In hectares)

VARIABLES 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 OPENING AREA a/ 35,781 35,886 35,834 35,629 35,276 34,784 34,162 33,421 32,572 31,629 30,605 29,513 Changes due to economic activity Assisted regeneration/ (reforestation) b/ 115 230 686 231 601 12 1,968 Unauthorized cutting/ confiscated c/ 2 Other accumulation Forest conversion 3 4 4 5 Other vol. changes Mortality Other changes (S.D.) 105 -165 -25 -1,039 -723 -1,223 -753 -2,814 -939 -1,020 -1,087 -1,145Changes in stocks (-) 105 52 205 353 492 622 741 849 943 1,024 1,092 1,145 CLOSING AREA 35,886 35,834 35,629 35,276 34,784 34,162 33,421 32,572 31,629 30,605 29,513 28,368

a/ See Appendix Table 2.3 b/ See Appendix Table 2.12 c/ Unauthorized cutting = 1989 volume of confiscated mangrove (see Table 2.12) divided by 128.93 cu. m. Table 2.11. Volume Accounts of Mangrove Forests, 1988-1999(In thousand cubic meters)

VARIABLES 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 OPENING STOCK 4,613 4,627 4,620 4,594 4,548 4,485 4,404 4,309 4,200 4,078 3,946 3,805 Changes due to economic activity Unauthorized cutting/ confiscated 0.24 Other accumulation Forest conversion 0.39 0.52 0.58 0.64 Other volume changes Stand growth 39 40 39 39 39 38 38 37 36 35 34 32 Other changes (S.D.) -25 -47 -65 -85 -102 -119 -133 -146 -157 -166 -174 -179

Changes in stocks 14 -7 -26 -46 -63 -81 -95 -109 -122 -132 -141 -147 CLOSING STOCK 4,627 4,620 4,594 4,548 4,485 4,404 4,309 4,200 4,078 3,946 3,805 3,658

41. In summary, the change in the area and volume of old growth, second growth and mangrove forests are presented in Figures 2.4 and 2.5. Figure 2.4. Area Change by Forest Type, 1988-1999

0

5 0

1 0 0

1 5 0

2 0 0

2 5 0

3 0 0

3 5 0

4 0 0

4 5 0

1 9 8 8 1 9 8 9 1 9 9 0 1 9 9 1 1 9 9 2 1 9 9 3 1 9 9 4 1 9 9 5 1 9 9 6 1 9 9 7 1 9 9 8 1 9 9 9

Y e a r

Are

a ('0

00 h

ecta

res)

o ld g ro w th se c o n d g ro w th m a n g ro v e



Figure 2.5. Volume Change by Forest Type, 1988-1999

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

Year

Volu

me

('000

cu.

m.)

old growth second growth mangrove

2.4.4 Rattan

42. From a total of 746.0 million lm rattan stock in both old growth and second growth forest in 1988, the total volume decreased to 696.6 million lm in 1999 or about 49.5 million lm drop during the twelve-year accounting period (Table 2.12). The average decrease in the stock was estimated to be 4.5 million lm per year. However, there was a fluctuating harvest manifestation ranging from a low of 1.2 million lm in 1998 to a high of 5.4 million lm in 1988. The average annual legal harvest was 3.6 million lm.

Table 2.12. Rattan Resources Volume Accounts, 1988-1998 (In thousand lineal meters)

Variables 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 OPENING STOCK 748,191 746,048 743,069 739,428 735,280 730,762 725,993 721,070 716,080 711,089 706,149 701,301Changes due to Economic activity Legal harvest/ cutting \ a

5,427 3,137 4,068 4,041 2,620 3,797 2,789 3,835 2,961 3,748 1,201 2,415

Unauthorized cutting \b

0.11 152 60 362 91 15 4

Damages from 1,954 1,129 1,520 1,476 1,073 1,400 1,010 1,382 1,066 1,349 432 903 Logging Other Vol. Changes Mortality 37,410 37,302 37,154 36,971 36,764 36,538 36,300 36,054 35,804 35,554 35,307 35,065 Other Changes (s. d.) 42,644 38,589 39,253 38,400 36,301 37,057 35,191 36,285 34,840 35,711 32,092 33,657Changes in Stock (-) 2,143 2,979 3,641 4,148 4,518 4,769 4,923 4,990 4,991 4,940 4,848 4,726 CLOSING VOLUME 746,048 743,069 739,428 735,280 730,762 725,993 721,070 716,080 711,089 706,149 701,301 696,575

For Rattan resources volume accounts in diameter class see Appendix Table 2.16 a/ See Appendix Table 2.14 b/ See Appendix Table 2.15



Figure 2.6. Volume of Harvested/Cut Rattan, 1988-1999

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

Volu

me

('000

lm)

43. At current prices, depletion due to harvest and damages dropped from P 5.8 million in 1988 to P 5.4 million in 1999, registering an annual decline of 0.6 percent (Table 2.13). At constant prices, the value of harvesting showed higher depletion from P 5.0 million in 1988 to P 2.2 million in 1999, manifesting an annual negative growth of 7.1 percent (Table 2.14). Closing stocks at current prices for rattan increased from P 589.9 million in 1988 to P 1.1 billion in 1999, posting a 6.2 percent annual increase. This was due to the increase in rattan prices in the later years, as seen in Figure 2.5. At constant 1985 prices, its value slightly fell from P 508.9 million in 1988 to P 470.0 million in 1999, recording an annual decline of 0.7 percent. Stumpage values of rattan are presented in Appendix Table 2.19. Figure 2.7. Monetary Valuation of Rattan Forest Resources at Current and

Constant Prices, 1988-1999

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

year

in th

ousa

nd p

esos

at current pricesat constant prices



Table 2.13. Economic Accounts of Rattan at Current Prices, 1988-1991 (In thousand pesos)

Variables 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 OPENING STOCK 545,293 589,875 605,501 609,413 693,319 801,051 786,171 781,810 1,127,257 1,180,104 1,163,834 1,132,278

Changes due to

Economic activity

Legal harvest/

Cutting \a 4,268 2,544 3,341 3,799 2,866 4,107 3,023 6,040 2,481 6,191 1,945 3,965

Unauthorized

cutting \b 0.09 125 57 396 98 16 6

Damages from

Logging 1,537 916 1,248 1,388 1,174 1,514 1,095 2,177 893 2,229 700 1,483

Other Vol. Changes

Mortality 29,420 30,252 30,503 34,758 40,216 39,519 39,345 56,789 30,008 58,735 57,186 57,576

Other Changes (s.d.) 33,076 30,780 31,698 35,493 38,991 39,381 37,432 56,146 23,113 57,995 51,034 54,347

Changes in Stock (-) 2,148 2,931 3,518 4,508 5,660 5,858 6,047 8,866 10,270 9,159 8,798 8,677

Revaluation 48,879 21,488 10,824 92,865 118,657 -3,262 7,717 363,173 73,387 2,049 -13,960 24,250

CLOSING STOCK 589,875 605,501 609,413 693,319 801,051 786,171 781,810 1,127,257 1,180,104 1,163,834 1,132,278 1,139,174

For Rattan resources economic accounts (current prices) in diameter class see Appendix Table 2.17 Table 2.14. Economic Accounts of Rattan at Constant Prices, 1988-1991 (In

thousand pesos) Variables 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

OPENING STOCK 507,580 508,908 503,829 500,833 501,569 495,823 493,578 486,957 485,218 480,205 477,177 472,472Changes due to Economic activity Legal harvest/

Cutting \a 3,682 2,117 2,745 2,748 1,774 2,578 1,883 2,600 1,010 2,539 812 1,636 Unauthorized

cutting \b 103 41 245 62 10 3 Damages from

Logging 1,326 762 1,026 1,004 727 951 682 937 363 914 292 612Other Vol. Changes Mortality 25,381 25,172 25,068 25,145 24,892 24,811 24,507 24,444 12,211 24,081 23,862 23,754 Other Changes (s.d.) 28,536 25,612 26,050 25,677 24,134 24,725 23,315 24,168 9,405 23,778 21,295 22,422Changes in Stock (-) 1,854 2,439 2,892 3,261 3,504 3,678 3,767 3,816 4,179 3,755 3,671 3,580Revaluation 5,035 -202 2,685 7,218 1,016 5,049 902 5,890 3,346 4,482 2,637 4,683

CLOSING STOCK 508,908 503,829 500,833 501,569 495,823 493,578 486,957 485,218 480,205 477,177 472,472 469,995

For Rattan resources economic accounts (constant prices) in diameter class see Appendix Table 2.18 2.5 RECOMMENDATIONS 44. Palawan’s forest resources have been a major source of livelihood for many upland dwellers including the tribal communities residing in the area. Several development activities, that is, mining and gathering of non-timber forest products in commercial quantity, likewise pose threats to the forestry resources and the surrounding environment. Furthermore, the effects of illegal cutting of timber, which was resorted to when the commercial logging ban took effect in 1992, and collection of forestry products without the proper permits from the government should not be overlooked.

45. In this accounting exercise, the trend of depletion of the stock of forestry resources as a result of harvesting, whether sanctioned or undertaken illegally, were established and the following are the recommendations:

a. The concerned entities of the government should administer conservation of the remaining forests through proper and immediate demarcation of the forest areas; identify the specific



allowable forest activities; and, monitoring the area for perpetrators of illegal acts.

b. Additional forest reserves can be established to enhance

protection and preserve further destruction. Meanwhile, intensified reforestation activities should be carried out to rehabilitate denuded areas.

c. Conservation of the dipterocarp forest will also conserve the rattan

species thriving within these areas. d. The agricultural sector should be provided with the technical and

infrastructure support necessary to relieve the forests from the pressure brought about by farmers who opt to expand agricultural areas by converting forest lands into open areas for upland farming. Alternative livelihood should be provided to the upland dwellers.

e. Entry to mangrove areas and harvesting of mangrove trees can be

prevented through the religious implementation of Presidential Decree 2152, which declares Palawan as Mangrove Swamp Forest Reserve.

46. Meanwhile, to improve the accounting of the forestry resource, a more systematic collection and retrieval of data should be done in collaboration with data producing agencies, particularly DENR. For example, the data generated should be distinguished whether they were taken from old or second growth dipterocarp forest and should indicate the specific year and location. Local government units should also be enjoined to support the data needs of the accounting system by maintaining records of permits granted to gatherers of forest products and monitoring the volume extracted.



ACRONYMS CBFMA Community Based-Forest Management Agreements

CENRO Community Environment and Natural Resources Office

CPI Consumer Price Index

CSC Certificate of Stewardship Contracts

DENR Department of Environment and Natural Resources

EIIB Economic Intelligence and Investigation Bureau

FMB Forest Management Bureau

FRIP Forest Resources Inventory Project

GVA Gross Value Added

IPIN Implicit Price Index

ISFP Integrated Social Forestry Program

ITP Industrial Tree Plantation

JAFTA Japan Forest Technical Association

MPR Margin for Profit and Risk

NAMRIA National Mapping and Resource Information Authority

NRAP Natural Resources Accounting Project

NSCB National Statistical Coordination Board

PENRO Provincial Environment and Natural Resources Office

PFS Philippine Forestry Statistics

SD Statistical Discrepancy

PCSDS Palawan Council for Sustainable Development



DEFINITION OF TERMS

Agroforestry the sustainable management of land to increase overall production; combines agricultural crops, tree crops and forest plants and/or animals while simultaneously or consequently applying management practices which are compatible with the cultural patterns of the local population.

Dipterocarp Forest forest stands dominated by trees of the dipterocarp species such as red lauan, tangile, tiaong, white lauan, almon, bagtikan, mayapis of the Philippine mahogany group, apitong and yakal.

Dipterocarp Old Growth Forest

tropical rain forest dominated by Dipterocarpaceae without traces of commercial logging.

Dipterocarp Second Growth Forest

tropical rain forest dominated by Dipterocarpaceae with traces of logging; referred to as residual forest.

Diversity the number of species (varieties or kinds of plants and animals in a given community).

Ecosystem is a grouping of organisms that interact with each other and their environment in such a way as to perpetuate the grouping.

Forest areas of one hectare or more which are at least 10 percent stocked with forest trees (including seedlings and saplings) like palm, bamboo, or brush. Narrow strips of land bearing forest trees must be at least 60 meters wide and one hectare in size to qualify as forest. Industrial plantations and tree farms one hectare or more in size are also included.

Forest Land includes public forests, permanent forests or forest reserves, and forest reservations.

Industrial Tree Plantation refers to any forest land extensively planted to tree crops primarily to supply the raw material requirements of existing or proposed wood processing plants and related industries (P.D. 1559).

Kaingin a portion of the forest land, whether occupied or not which is subjected to shifting and /or permanent slash and burn cultivation having little or no provision to prevent soil erosion (P. D. 705).

Mangrove Forest a type of forest occurring on tidal flats along the sea coast, extending along streams where water is brackish. Mangrove species along this area are obligatory halophytes or haloresistant species, the optimum salinity of which varies from one species to another.

Mossy Forest tropical rain forests of the high elevations dominated by Podocarpaceae, Myrtaceae and Fagaceae with trees of medium height and short boled, covered with epiphytes.



Net Price Method defined as actual market price of the raw material minus marginal exploitation costs including a normal return to capital.

Rattan refers to a group of cane-like climbing palm species such as the palasan and the limuran, belonging to the family Palmae, generally found in moist tropical rainforests; may come in split or unsplit forms which are used primarily in furniture and household fixtures.

Reforestation the act of planting trees on bare or open land which is used to be covered with forest growth.

Stumpage Value the value of the standing timber/rattan pole; is equal to the price of the product less the cost of harvesting, the cost of transport and a margin for normal return to capital which represents an allowance for marginal profit and risk associated with the production activity; is approximated by the opportunity cost of capital or what the operator would earn from an alternative investment.

Submarginal Forest tropical rain forest dominated by Leguminosae and lesser utilized species, mainly restricted to shallow and excessively drained limestone soils.

Timber major forest product; standing tree.



APPENDICES



Appendix Table 2.1. Physical Area of Forest Lands by Type, Mainland Palawan, In Hectares, 1985 and 1992

Type of Forest 1985 1992 g

1. Productive Dipterocarp Old Growth 379,747 274,487 0.9547 Residual 168,372 283,395 1.0772

2. Mossy 32,286 29,417 0.9868 3. Marginal 42,627 10,588 0.9868 4. Mangrove 35,088 34,784 0.9988

TOTAL 658,120 632,671 0.9944 Sources: 1985 Aerial Photograph by NAMRIA

1992 Satellite Imagery by JAFTA Appendix Table 2.2. Physical Area of Forest Lands by Type, Mainland Palawan, In

Hectares, 1986-1999

Type of Forest 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

Productive Dipterocarp

Old Growth 362,540 346,112 330,429 315,456 301,162 287,515 274,487 262,049 250,175 238,839 228,016 217,684 207,820 198,403

Residual 181,373 195,378 210,465 226,716 244,223 263,081 283,395 305,278 328,851 354,243 381,597 411,063 442,804 476,996

Mossy 31,860 31,439 31,024 30,614 30,210 29,811 29,417 29,029 28,645 28,267 27,894 27,525 27,162 26,804

Marginal 34,936 28,633 23,467 19,233 15,763 12,919 10,588 8,678 7,112 5,829 4,777 3,915 3,209 2,630

Mangrove 35,044 35,001 34,957 34,914 34,871 34,827 34,784 34,741 34,698 34,655 34,611 34,568 34,526 34,483

TOTAL 645,753 636,563 630,341 626,933 626,227 628,153 632,671 639,774 649,480 661,832 676,896 694,756 715,520 739,316

Source: 1985 Aerial Photographs and 1992 Satellite Imagery Note: The 1986-1991 and 1993-1999 values are projections using the average annual growth rate (geometric) per

type of forest based on the 1985 aerial photographs and 1992 satellite imageries. See Appendix Table 2.1. Appendix Table 2.3. Adjusted Physical Area of Forest Lands by Type, Mainland

Palawan, In Hectares, 1986-1999

Type of Forest 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

Productive Dipterocarp:

Old Growth 367,407 353,824 339,208 323,769 307,708 291,219 274,487 257,684 240,970 224,489 208,370 192,725 177,649 163,218

Residual 183,808 199,732 216,057 232,691 249,531 266,470 283,395 300,193 316,750 332,959 348,718 363,932 378,518 392,406

Mossy 32,287 32,139 31,848 31,421 30,866 30,195 29,417 28,545 27,591 26,568 25,490 24,369 23,218 22,051

Marginal 35,405 29,271 24,090 19,740 16,105 13,085 10,588 8,533 6,850 5,479 4,366 3,466 2,743 2,164

Mangrove 35,515 35,781 35,886 35,834 35,629 35,276 34,784 34,162 33,421 32,572 31,629 30,605 29,513 28,368

Total 654,423 650,746 647,090 643,455 639,840 636,245 632,671 629,117 625,582 622,068 618,573 615,098 611,642 608,206

Adjusted forest area: 1986-1991 and 1993-1999 Sample computation: 1987 adjusted old growth area = 1987 old growth area in Appendix Table 2.2/1987 total forest area in

Appendix Table 2.2 X 1987 adjusted total forest area = (346,112/636,563) 650,746 = 353,824



Appendix Table 2.4. Average Bole Volume by Species in Dipterocarp Old Growth Forest, Palawan, In Cubic Meters per Hectare*

Species FREQ N/HA G/HA L/HA 80 cm Name 20 cm 30 cm 40 cm 50 cm 60 cm 70 cm

& up Total

Apitong 69.8 43.2 5.6 55.0 2.0 3.4 6.7 9.7 7.2 5.9 9.2 44.1Alupag 58.3 15.0 1.9 17.2 0.5 1.1 2.2 3.0 2.9 1.7 2.3 13.8

Ipil 55.4 13.6 1.7 15.0 0.5 0.6 2.3 2.6 1.6 1.5 2.0 11.1

Nato 49.6 12.1 1.5 13.2 0.4 1.1 1.7 2.7 2.2 1.4 0.7 10.3

Amugis 43.2 9.6 1.2 12.4 0.2 0.6 2.7 1.6 1.8 0.4 0.9 8.2

Malugai 33.1 6.8 0.9 7.9 0.1 0.6 1.4 1.4 0.7 0.7 0.3 5.2

Taluto 21.6 5.3 0.6 6.0 0.2 0.4 0.9 1.0 0.9 0.5 0.7 4.6

Ulayan (Oak)/ 37.4 15.0 0.8 4.3 0.7 1.4 1.0 0.4 0.3 0.3 0.0 4.0

Manggasiriki

Almaciga 12.2 2.0 0.5 4.5 0.0 0.1 0.4 0.8 0.9 0.9 0.8 3.9

Manggis 13.7 2.9 0.4 3.9 0.0 0.4 0.4 1.1 0.3 0.4 0.7 3.3

Bulala (Wild 24.5 7.1 0.6 3.2 0.4 1.0 0.8 0.6 0.1 0.0 0.1 3.0

Rambutan)

Pahutan 25.9 5.0 0.5 3.9 0.2 0.6 0.7 0.7 0.6 0.2 0.1 2.9

Kamagong 23.7 8.3 0.5 3.6 0.4 0.8 1.0 0.4 0.2 0.0 0.0 2.7

Bitanghol 26.6 8.3 0.5 2.8 0.5 0.9 0.8 0.3 0.1 0.0 0.0 2.6

Makaasim 21.6 7.1 0.5 3.2 0.5 0.4 0.8 0.4 0.3 0.0 0.0 2.5

Duguan 24.5 10.2 0.5 2.2 0.5 0.6 0.5 0.4 0.1 0.1 0.0 2.2

Kubi 15.8 3.1 0.3 2.4 0.2 0.3 0.4 0.3 0.1 0.5 0.3 2.1

Malaruhat/ 19.4 3.5 0.3 2.5 0.1 0.3 0.5 0.4 0.4 0.0 0.1 1.8

Panglomboyen

Kalantas 13.7 1.7 0.2 2.6 0.1 0.0 0.5 0.6 0.2 0.0 0.5 1.8

Others 131.6 9.2 53.8 8.3 10.3 10.6 8.9 4.3 3.0 4.6 50.1

T O T A L 311.4 28.2 219.6 15.8 24.9 36.3 37.3 25.2 17.5 23.3 180.2

MHT : Merchantable Height (m) N/Ha : Number of Trees per Hectare G/Ha : Basal Area per Hectare (m^2/ha) V/Ha : Volume per Hectare (m^3/ha) L/Ha : Number of Logs per Hectare FREQ : % of sampling units with occurrence * Computation based on total volume per hectare (V/ha) Number of Sampling Units : 139 Standard Error (%) : 2.7 Inventory Period : 08/87 - 08/87 Utilized volume equation(s) : 4.874E-5xDBH^2xMHT (Western Visayas, non-dipterocarp)

4.649E-5xDBH^2xMHT (Western Visayas, dipterocarp)

Source: Forest Management Bureau, DENR , Resources of Region 4 (Part 2: Palawan)/Phil.- German Forest Resources Inventory Project, 1988



Appendix Table 2.5. Average Bole Volume by Species in Dipterocarp Residual Forest, Palawan, In Cubic Meter per Hectare*

Species FREQ N/HA G/HA L/HAName 20 cm 30 cm 40 cm 50 cm 60 cm 70 cm 80 cm

& up Total Apitong 76.5 63.3 4.7 41.5 4.3 5.0 7.9 6.3 4.2 1.6 2.9 32.2Alupag 51.3 15.7 1.8 17.1 0.4 1.5 2.5 3.8 2.2 0.9 0.9 12.1

Ipil 52.1 12.7 1.6 15.4 0.4 0.8 2.7 2.0 2.1 1.4 0.6 10.1

Nato 44.5 10.7 1.1 9.4 0.7 0.6 1.4 1.8 1.4 0.4 1.2 7.5

Malugai 43.7 11.3 1.3 11.1 0.3 0.9 2.3 1.7 1.1 0.5 0.5 7.1

Amugis 37.8 9.7 1.0 9.9 0.5 0.9 1.8 2.0 0.6 0.5 0.6 6.8

Taluto 22.7 4.7 0.6 6.4 0.1 0.4 1.0 1.1 0.8 0.9 0.0 4.2

Ulayan (Oak)/ 29.4 11.4 0.6 4.0 0.6 1.0 1.2 0.2 0.1 0.0 0.0 3.1

Manggasiriki

Manggis 11.8 5.3 0.4 2.9 0.5 0.4 0.7 0.5 0.3 0.0 0.2 2.5

Makaasim 16.8 5.6 0.4 2.7 0.3 0.4 0.4 0.9 0.1 0.0 0.1 2.1

Bulala (Wild 16.8 5.4 0.4 2.6 0.3 0.4 0.5 0.4 0.3 0.1 0.1 2.1

Rambutan)

Almaciga 7.6 1.2 0.2 2.3 0.0 0.2 0.1 0.3 0.8 0.5 0.1 2.0

Pahutan 16.8 3.7 0.3 3.2 0.1 0.3 0.9 0.3 0.0 0.0 0.2 1.9

Kalantas 16.8 2.4 0.3 2.8 0.0 0.2 0.4 0.7 0.2 0.0 0.2 1.8

Binuang 13.4 3.1 0.3 2.4 0.1 0.4 0.5 0.4 0.3 0.0 0.0 1.8

Bitanghol 16.0 7.3 0.3 1.1 0.8 0.3 0.2 0.3 0.0 0.0 0.0 1.6

Duguan 16.0 4.7 0.3 1.3 0.3 0.7 0.3 0.1 0.2 0.0 0.0 1.5

Malasantol 13.4 3.8 0.3 1.5 0.2 0.6 0.3 0.3 0.0 0.1 0.0 1.4

Gubas 11.8 3.8 0.2 2.0 0.3 0.3 0.5 0.1 0.1 0.1 0.0 1.4

Others 130.6 7.8 40.4 7.2 11.0 8.8 6.3 3.1 0.6 1.7 38.8

T O T A L 316.4 23.9 180.0 17.4 26.3 34.4 29.5 17.9 7.6 9.3 142.0

DBH : Diameter at Breast Height (cm) Number of Sampling Units : 119 MHT : Merchantable Height (m) Standard Error (%) : 2.9 N/Ha : Number of Trees per Hectare Inventory Period : 08/87 - 08/87 G/Ha : Basal Area per Hectare (m^2/ha) V/Ha : Volume per Hectare (m^3/ha) L/Ha : Number of Logs per Hectare FREQ : % of sampling units with occurrence *Computation based on total volume per hectare (V/ha) Utilized volume equation(s) : 4.874E-5xDBH^2xMHT (Western Visayas, non-dipterocarp)

4.649E-5xDBH^2xMHT (Western Visayas, dipterocarp)

Source: Forest Management Bureau, DENR , Resources of Region 4 (Part 2: Palawan)/Phil.- German Forest Resources Inventory project, 1988



Appendix Table 2.6. Average Rattan Occurrence in Dipterocarp Old Growth Forest, Palawan*

P O L E S

REPR D<2cm D>=2cm Total Species Name FREQ N/Ha N/Ha Lm/Po Lm/Ha N/Ha Lm/Po Lm/Ha N/Ha Lm/Po Lm/Ha

Apas 33.8 57.4 9.2 5.2 47.8 1.2 9.5 11.4 10.4 5.7 59.2

Ditaan 12.9 21.4 5.2 5.9 30.7 0.9 7.7 6.9 6.1 6.2 37.6

Limuran (Kapi) 37.4 53.1 19.8 7.0 138.6 9.2 11.7 107.6 29.0 8.5 246.2

Palasan 44.6 53.1 40.6 6.6 268.0 12.2 11.4 139.1 52.8 7.7 407.1

Sika 10.8 11.6 10.4 9.9 103.0 0.3 15.0 4.5 10.7 10.0 107.5

Sumulid 5.8 11.3 0.9 5.7 5.1 0.3 9.0 2.7 1.2 6.5 7.8

Tandulang-Gubat 36.0 70.5 42.1 6.0 252.6 0.6 9.0 5.4 42.7 6.0 258.0

Tumalim 49.6 107.8 26.9 6.6 177.5 6.4 9.0 57.6 33.3 7.1 235.1

Others 10.8 20.5 5.2 7.2 37.4 5.8 10.0 58.0 11.0 8.7 95.4

T O T A L 95.0 406.7 160.3 6.6 1060.7 36.9 10.7 393.2 197.2 7.4 1453.9

FREQ : relative frequency (%) Number of Sampling Units : 139 REPR : reproduction Standard Error (%) : 7.9 N/ha : number per hectare Inventory Period : 06/87 - 09/87 D : diameter (cm) Lm/Po : linear meter per pole (m) Lm/Ha : linear meter per hectare (m/ha) * Computation based on total number per hectare (N/ha) Source: Forest Management Bureau, DENR Resources of Reg. 4 (Part 2: Palawan), Phil. - German Forest Resources

Inventory Project, 1988 Appendix Table 2.7. Average Rattan Occurrence in Dipterocarp Residual Forest,

Palawan* P O L E S REPR D<2cm D>=2cm Total

Species Name FREQ N/Ha N/Ha Lm/Po Lm/Ha N/Ha Lm/Po Lm/Ha N/Ha Lm/Po Lm/Ha Apas 26.9 43.2 16.4 6.4 105.0 2.1 11.2 23.5 18.5 6.9 128.5

Baling-uai** 1.7 0.0 0.4 8.0 3.2 0.7 7.0 4.9 1.1 7.4 8.1

Ditaan 13.4 20.7 6.1 6.8 41.5 2.9 9.8 28.4 9.0 7.8 69.9

Limuran (Kapi) 22.7 24.3 9.6 5.3 53.8 3.2 6.6 21.1 12.8 5.9 74.9

Palasan 37.8 48.1 24.3 6.2 150.7 8.6 7.2 61.9 32.9 6.5 212.6

Sika 21.0 18.5 14.6 8.2 119.7 0.7 8.0 5.6 15.3 8.2 125.3

Sumulid 6.7 6.1 2.9 4.0 11.6 0.0 0.0 0.0 2.9 4.0 11.6

Tandulang-Gubat 40.3 95.6 45.3 5.5 249.2 1.4 8.0 11.2 46.7 5.6 260.4

Tumalim 47.1 81.3 27.8 5.4 150.1 6.8 9.2 62.6 34.6 6.1 212.7

Others 8.4 8.9 7.5 8.2 61.5 0.7 7.0 4.9 8.2 8.1 66.4

T O T A L 100.0 346.7 154.9 6.1 6.1 946.3 27.1 8.3 224.1 182.0 6.4

FREQ : relative frequency (%) Number of Sampling Units : 119 REPR : reproduction Standard Error (%) : 8.7 N/ha : number per hectare Inventory Period : 05/87 - 09/87 D : diameter (cm) Lm/Po : linear meter per pole (m) Lm/Ha : linear meter per hectare (m/ha) * Computation based on total number per hectare (N/ha) ** Flagellariaceae Source: Forest Management Bureau, DENR, Forest Resources of Region 4 (Part 2: Palawan) Philippine - German Forest

Resources Inventory Project, 1988



Appendix Table 2.8. Total Volume of Timber Production, In Cubic Meters, 1988-1999

CENRO District 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999Puerto Princesa 870 b/ 31,886 d/ 1,281 b/ 2,008 d/ 219 c/7,510Taytay/El Nido d/ 30,737 d/ 29,150 d/ 30,180 d/ 6,458 b/ 10 Coron ( Coron/Culion/ Busuanga/ Linapacan) Roxas (Roxas, Araceli/ San Vicente/ d/ 38,100 a/75,130 a/ 66,927 a/ 61,161 a/ 26,713 a/ 7,553 d/ 3 Dumaran

Narra/Aborlan d/ 44 d/ 22 b/ 913 d/ 47 b/ 566 Brooke's Point (Brooke’s Point/ Bataraza/

S. Espanola/ Balabac)

d/ 155 d/ 95

Quezon/Rizal 22 d/ 38 143 c/ 2 c/ 633 TLA 65,266 83,162 55,383 11,358 6,723

Total 103,366 189,029 152,529 134,725 41,175 20,512 411 576 2 0 0 8,143 Sources: a/ CENRO Reports

b/ PENRO/CENRO's Monthly Accomplishment Report & Annual Report c/ DENR-CENRO Districts d/ PENRO

Appendix Table 2.9. Total Volume of Confiscated Timber, In Cubic Meters, 1988-

1999 CENRO District 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999Puerto Princesa b/ 187 b/ 790 c/ 3 c/ 82 c/ 853 a/ 51 a/ 66 a/ 4 a/ 40

Taytay/El Nido b/ 28 b/ 632 c/ 9 c/ 62 c/ 41 a/ 2 a/ 23 a/ 3

Coron b/ 20 a/ 1 a/ 2 a/ 1 a/ 3 a/ 11

( Coron/Culion/

Busuanga/

Linapacan)

Roxas b/ 80 b/ 30 c/ 7,561 c/ 396 c/ 291 c/ 23 a/ 57 c/ 24

(Roxas, Araceli/

San Vicente/

Dumaran

Quezon/Rizal b/ 2 b/ 12 b/ 24 c/ 66 a/ 327 a/ 47 a/ 12 a/ 11

Narra/Aborlan b/ 23 b/ 55 b/ 58 b/ 42 c/ 4 c/ 613 c/ 107 a/ 32 a/ 215 c/ 7

Brooke's Point b/ 19 b/ 52 b/ 184 b/ 118 d/ 20 b/ 18 c/ 24 c/ 144 c/ 108 c/ 61

(Brooke's Point/

Bataraza/ Sofronio

42 107 559 1,623 12 7,667 1,966

107 539 1,623 12 7,667 1,966 592

Espanola/Balabac)

Total 581 594 434 130 66

Mainland Palawan 42 580 433 127 55

Sources: a/ DENR-CENRO Districts

b/ Provincial Environment and Natural Resources Office c/ PENRO/CENRO's Monthly Accomplishment Report & Annual Report d/ Economic Intelligence & Investigation Bureau



Appendix Table 2.10. Total Area Covered within ISF/CBFM Concessions and Agro-

Forestry, In Hectares, 1988-1999

CENRO District 1988 1989 1990 1991 1993 1994

ISF/CBFM b/ 387 b/ 123 b/ 92 b/ 209 b/ 260 Agroforestry b/ 22

Roxas/Araceli/Dumaran/ San Vicente

ISF/CBFM b/ 179 b/ 181 b/ 171 b/ 360 b/ 201 b/ 201 Agroforestry b/ 20 b/ 32

Coron ISF/CBFM a/ 51 a/ 51 b/ 28 b/ 221 b/ 111 b/ 103 b/ 169 b/ 227

Agroforestry b/ 8 Taytay/El Nido

ISF a/ 80 a/ 487 a/ 310 a/ 138 a/ 6 a/ 433 a/ 655 a/ 160 a/ 591 a/ 385 2,728 a/ b/ 1

Quezon/Rizal a/ 1,526 b/ 320 b/ 128 a/ 162 a/ 178 b/ 199 b/ 167 a/ 124 a/

Narra/Aborlan

ISF/CBFM b/ 172 b/ 115 b/ 169 b/ 12 b/ 13 b/ 21

Brooke's Point ISF a/ 112 a/ 474 a/ 251 a/ 201 a/ 249 a/ 158 a/ 119 a/ 242

Agroforestry b/ 21 404 2,176 1,311 1,478 606 1,207 1,193 1,677 978 0 4,400

(Mainland Palawan) 353 2,125 1,283 1,257 606 1,207 1,082 948 1,508 751 0 4,40080% 282 758 1,207 600 0 3,520

1992 1995 1996 1997 1998 1999 Puerto Princesa

Agroforestry b/ 17

ISF/CBFM 273 a/ 1,672Agroforestry b/ 13

Agroforestry

TOTAL (Palawan) 1,059

1,700 1,026 1,006 484 966 866Sources: a/ CENRO Districts

b/ PENRO/CENRO's Monthly Accomplishment and Annual Report Appendix Table 2.11. Total Area of Implementation of Conservation Efforts

(Second Growth Forest), In Hectares, 1988-1999

CENRO District 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1999 Puerto Princesa \b/ 10 b/ 10 a/ 57 a/ 138 c/ 600 c/ 10 a/ 90 b/ 1 a/ 107 IFMA Plantation c/ 11,000 c/ 1,000 Taytay/El Nido b/ 5 b/ 40 b/ 1 c/ 110 a/ 15 a/ 134 IFMA Plantation c/ 10,501 c/ 1,403 Coron c/ 24 c/ 5 Roxas b/ 51 b/ 259 b/ 21 c/ 100 c/ 155 c/ 50 a/ 340 b/ 1 Quezon/Rizal b/ 5 b/ 5 c/ 63 a/ 15 c/ 10 a/ 1 a/ 0.40 a/ 52 a/ 153 a/ 0.43Narra/Aborlan b/ 7 a/ 100 a/ 83 a/ 18 a/ 63 c/ 49 b/ 26 b/ 1 a/ 25 Narra b/ 1 Aborlan c/ 41

a/ 334 a/ 334 a/ 67 c/ 15 c/ 24 a/ 13 1 a/ 5 IFMA Plantation c/ 1,875 Total (Palawan) 21 540 692 163 364 241Mainland Palawan 21 540 692 163 364 834 21,747 4,762 4 153 241

1998

Brooke's Point 9 a/ a/

858 21,752 4,762 4 82 153 82

Sources: a/ CENRO Districts b/ PTFPP c/ PENRO



Appendix Table 2.12. Total Area of Implementation of Conservation Efforts

(Mangrove forest), In Hectares, 1989-1995

CENRO District 1989 1990 1991 1992 1993 1994 1995 Puerto Princesa b/ 142 b/ 141 a/ 1,157

Taytay/El Nido a/ 80 a/ 544 a/ 166 b/ 80 a/ 511

Coron b/ 30

Roxas

Roxas b/ 30

San Vicente

b/ 25 a/ 100

Narra/Aborlan a/ 25 a/ 30 b/ 30 b/ 12

Brooke's Point a/ 90 a/ 120 b/ 40 b/ 240 a/ 200

Palawan 12 1,968

Mainland Palawan 115 230 686 231 601 12 1,968

a/ 80

Quezon/Rizal

115 230 686 231 631

Sources: a/ CENRO Districts b/ PENRO

Appendix Table 2.13. Total Area Damaged from Kaingin and Forest Fires, In

Hectares, 1991-1999

CENRO District 1991 1992 1993 1994 1995 1996 1997 1998 1999Puerto Princesa Kaingin b/ 7 b/ 15 Forest fires Taytay/El Nido Kaingin a/ 13 a/ 1 b/ 20 b/ 2 b/ 4 b/ 2 a/ 1 Forest fires a/ 13 a/ 1 a/ 7 a/ 2 a/ 23

Kaingin a/ 3 b/ 11 b/ 2 a/ 1 Forest fires Roxas Kaingin b/ 37 b/ 11 b/ 30 b/ 40 Forest fires Quezon/Rizal Kaingin b/ 2 b/ 14 b/ 187 a/ 204 Forest fires a/ 9,450Narra/Aborlan Kaingin a/ 30 b/ 24 b/ 4 b/ 4 Forest fires a/ 8 Brooke's Point Kaingin b/ 30 b/ 24 b/ 52 b/ 14 b/ 17 b/ 5 Forest fires b/ 4Forest fires (sub-total) b/ 16 b/ 65 b/ 35

Kaingin (Palawan) 13 61 105 11 89 94 210 1

Forest Fires (Palawan) 9.3 7 65 35 9,456 23

Kaingin (Mainland Palawan) 13 61 105 86 83 225

Forest Fires (Mainland Palawan) 13 9.3 7 0 16 65 9,456 23

Coron

227

13 0 16

11 210 1

35

Sources: a/ DENR-CENRO Districts b/ PENRO & CENRO's Monthly Accomplishment and Annual Report



Appendix Table 2.14. Total Rattan Harvest Manifestation, In Thousand Lineal Meters, 1988-1999

CENRO District 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999Puerto Princesa a/ 1,849 a/ 480 c/ 68 a/ 886 c/ 627 c/ 921 c/ 955 b/ 2,205 b/ 481 b/ 1,193Taytay/El Nido a/ 27 a/ 88 a/ 236 243 c/ c/ 154 184 b/ 54 b/ 71Coron a/ 494 a/ 509 a/ 643 a/ 253 a/ 20 b/ 157 32 c/ 15 c/ 19 b/ 86 ( Coron/Culion/ Busuanga/ Linapacan) Roxas a/ 1,461 a/ 1,248 d/ d/ 2,344 d/ 775 d/ 1,924 d/ 1,203 c/ 1,014 c/ 685 b/ 888 b/ 326

San Vicente/ Dumaran) Quezon/Rizal b/ 3,965 2,010 a/ 846 c/ 666 c/ 645 b/ 973 b/ 1,023 b/ 432 b/ 227 b/ 314Narra/Aborlan a/ a/ 722 a/ 678 b/ 140 b/ 697 b/ 298 c/ b/ 76Brooke's Point b/ 13 b/ 20 19

Bataraza/ Sofronio

Balabac)

TOTAL 5,920 3,646 4,712 4,294 2,640 3,955 2,821 3,850 2,980 3,748 1,201 2,501Mainland Palawan 5,426 3,137 4,068 4,041 2,620 3 797 2,789 3,835 2,961 3,748 1,201 2,415

253a/ a/b/

1,765 b/ 691 (Roxas/Araceli/

a/ 142 169 b/ 217

b/ 64 b/ 260 10 b/ 68 b/ b/ 45 b/ (Brooke's Point/

Española/

,Sources: a/ Provincial Environment and Natural Resources Office

b/ CENRO Districts c/ PENRO/CENRO's Monthly Accomplishment Report & Annual Report d/ CENRO Reports

Appendix Table 2.15. Total Volume of Confiscated Rattan, In Lineal Meters 1989-

1995

CENRO District 1989 1990 1991 1992 1993 1994 1995 Puerto Princesa c/ 79,123 c/ 33,277 c/ 87,386 c/ 6,576 c/ 9,808

Taytay/El Nido c/ 47,680 c/ 143,813 c/ 431

Coron c/ 6 c/ 13,064

14,823 c/ 26,478 c/ 14,787 c/

Quezon/Rizal

c/ 47,848 b/ 58,500

Brooke's Point c/ 10,826 c/ 60,446 c/ 20,288

(Brooke's Point/Bataraza/ Sofronio Espanola)

90,621 15,406 4,117

Mainland Palawan 107 152,452 59,755 361,618 90,621 15,406 4,117

( Coron/Culion/Busuanga/Linapacan

Roxas a/ 107 c/ 4,131 c/ 5,598 b/ 4,117

(Roxas/Araceli/San Vicente/Dumaran

c/ 7,339 c/ 695

Narra/Aborlan

Total (Palawan) 107 152,452 59,761 374,683

Sources: a/ Prov'l Environment & Natural Resources Office, CENRO's, Bantay Palawan & Economic Intelligence & Investigation Bureau

b/ PENRO/CENRO's Monthly Accomplishment Report & Annual Report c/ CENRO Reports


Appendix Table 2.16. Rattan Resources Volume Accounts, In Thousand Lineal Meters, 1988-1991

1988 1989 1990 1991 1992 1993Variables < 2 cm > 2 cm Total < 2 cm > 2 cm Total < 2 cm > 2 cm Total < 2 cm Total < 2 cm Total < 2 cm Total > 2 cm > 2 cm > 2 cm564,308 183,883 748,191 564,253 181,795 746,048 563,617 179,452 743,069 562,517 176,911 739,428 561,057 174,223 735,280 559,325 171,437 730,762

Economic activity Legal harvest/

Cutting \a 4,184 1,243 5,427 2,419 718 3,137 3,137 932 4,068 3,116 925 4,041 2,020 600 2,620 2,927 870 3,797 Unauthorized

cutting \b 0.09 0.02 0.11 117 35 152 46 91 14 60 279 83 362 70 21 Damages from

Logging 1,507 447 1,954 870 259 1,129 1,172 348 1,520 1,138 338 1,476 827 246 1,073 1,079 321 1,400 Other Vol. Changes

Mortality 28,843 8,567 37,410 28,760 8,542 37,302 28,646 8,508 37,154 28,505 8,466 36,971 28,345 8,419 36,764 28,171 8,367 36,538 Other Changes (s. d.) 34,479 8,169 42,644 31413 7,176 38,589 31,972 7,282 39,253 31,345 7,055 38,400 29,739 6,562 36,301 30,320 6,737 37,057

Changes in Stock (-) 55 2,088 2,143 636 2,343 2,979 1,100 2,541 3,641 1,460 2,688 4,148 1,732 2,786 4,518 1,927 2,842 4,769

CLOSING VOLUME 564,253 181,795 746,048 179,452 743,069 176,911 563,617 562,517 739,428 561,057 174,223 735,280 559,325 171,437 730,762 557,398 168,595 725,993

OPENING STOCK Changes due to

1994 1998 1999 1995 1996 1997Variables < 2 cm Total < 2 cm Total < 2 cm Total < 2 cm Total < 2 cm> 2 cm > 2 cm > 2 cm > 2 cm > 2 cm Total < 2 cm > 2 cm Total

OPENING STOCK 557,398 168,595 725,993 555,337 165,733 721,070 553,195 162,885 716,080 551,010 160,079 711,089 548,812 157,337 706,149 546,624 154,677 701,301 Changes due to Economic activity Legal harvest/

Cutting \a 2,150 639 2,789 2,957 878 3,835 2,283 678 2,961 2,890 858 3,748 926 275 1,201 1,862 553 2,415 Unauthorized

cutting \b 12 3 15 3 1 4 Damages from

Logging 779 231 1,010 1,066 316 1,382 822 244 1,066 1,040 432 309 1,349 333 99 696 207 903Other Vol. Changes

Mortality 27,987 8,313 36,300 27,798 8,256 36,054 27,605 8,199 35,804 27,412 8,142 27,222 8,085 35,307 27,035 8,030 35,065 35,554 Other Changes (s. d.) 33,657 28,867 6,324 35,191 29,682 6,603 36,285 28,525 6,315 34,840 29,144 6,567 35,711 26,293 5,799 32,092 27,428 6,229

Changes in Stock (-) 2,061 2,862 4,923 2,142 2,848 4,990 2,185 2,806 4,991 2,198 2,742 4,940 2,188 2,660 4,848 2,165 2,561 4,726

CLOSING VOLUME 555,337 165,733 721,070 553,195 162,885 716,080 551,010 160,079 711,089 548,812 546,624157,337 706,149 154,677 701,301 544,459 152,116 696,575

Appendix Table 2.17. Economic Accounts of Rattan at Current Prices, In Thousand Pesos, 1988-1990

1988 1989 1990 1991 1992 1993Variables < 2 cm > 2 cm Total < 2 cm > 2 cm Total < 2 cm > 2 cm Total < 2 cm > 2 cm Total < 2 cm > 2 cm Total < 2 cm > 2 cm Total

OPENING STOCK 372,443 172,850 545,293 605,501 421,888 406,262 183,613 589,875 417,077 188,425 187,526 609,413 482,509 210,810 693,319 559,325 241,726 801,051Changes due to Economic activity Legal harvest/

Cutting \a 3,012 1,255 4,268 1,790.06 753.90 2,543.96 2,353 988 3,341 2,680 1,119 3,799 4,1072,020 846 2,866 2,898 1,209 Unauthorized

cutting \b 0.07 0.02 0.09 88 37 125 40 17 57 279 117 396 69 29 98 Damages from

Logging 1,085 451 1,537 643.80 271.95 915.75 369 1,248 979 409 1,388 827 347 1,174 1,068 446879 1,514Other Vol. Changes Mortality 20,767 8,653 29,420 21,282 8,969 30,252 21,485 9,018 30,503 24,514 10,244 34,758 28,345 11,871 40,216 27,889 11,630 39,519 Other Changes (s.d.) 24,825 8,251 33,076 23,246 7,535 30,780 23,979 7,719 31,698 26,957 8,537 35,493 29,739 9,252 38,991 30,017 9,364 39,381Changes in Stock (-) 40 2,109 2,148 3,252 ,508 1,732471 2,460 2,931 825 2,693 3,518 1,256 4 3,928 5,660 1,908 3,950 5,858

Revaluation 33,898 14,981 48,879 11,756 9,732 21,488 6,373 4,451 10,824 63,093 29,772 92,865 80,001 38,656 118,657 -3,755

421,888

492 -3,262

CLOSING STOCK 406,262 183,613 589,875 417,077 188,425 605,501 187,526 609,413 482,509 210,810 693,319 559,325 241,726 801,051 551,824 234,347 786,171

1995 1996 1997 1998 1999Variables < 2 cm > 2 cm Total < 2 cm > 2 cm Total < 2 cm > 2 cm < 2 cm > 2 cm Total < 2 cm > 2 cm Total < 2 cm > 2 cm Total

OPENING STOCK 551,824 234,347 786,171 549,784 781,810 796,601 330,657 1,127,257 837,535 342,569 1,180,104 828,706 335,128 1,163,834 809,004 323,275 1,132,278Changes due to Economic activity Legal harvest/

Cutting \a 2,129 895 3,023 1,782 6,040 1,031 2,481 4,364 1,828 6,191 1,370 575 1,945 2,7931,451 1,172 3,965

1994Total

232,026

4,258 Unauthorized

cutting \b 12

Logging Other Vol. Changes

27,707 Other Changes (s.d.) 28,578 8,854 37,432 42,742 13,404 56,146 9,599 13,514 23,113 44,007 13,988 57,995 38,914 12,120 41,142 13,205 54,347Changes in Stock (-) 2,040 4,007 8,7986,047 3,084 5,781 8,866 4,265 6,005 10,270 3,319 5,840 9,159 3,238 5,559 3,248 5,429 8,677

Revaluation 2,029 5,689 7,717 252,982 110,191 363,173 49,465 23,922 73,387 -2,191 4,240 2,049 -13,226 -734 -13,960 14,180 10,070 24,250

CLOSING STOCK 549,784 232,026 781,810 796,601 330,657 1,127,257 837,535 342,569 1,180,104 828,706 335,128 1,163,834 809,004 323,275 1,132,278 816,689 322,486 1,139,174

4 16 4 2 6 Damages from

771 323 1,095 1,535 1,483641 2,177 371 522 893 1,570 658 2,229 493 207 700 1,044 439

Mortality 11,638 39,345 40,029 16,760 56,789 12,462 17,546 30,008 41,392 17,342 58,735 40,289 16,898 57,186 40,553 17,024 57,57651,034


Appendix Table 2.18. Computation for the Stumpage Values for Rattan Resources, 1988-1999

Year Stumpage Value Implicit Price Index

At Current Price of Forestry GVA 1+g <2 cm >2 cm 1985 = 100

1984 114.01 1985 0.62 0.87 100.00 0.88 1986 0.56 0.80 91.14 0.91 1987 0.66 0.94 107.43 1.18 1988 0.72 1.01 115.91 1.08 1989 0.74 1.05 120.18 1.04 1990 0.75 1.06 121.68 1.01 1991 0.86 1.21 138.23 1.14

1.00 1.41 161.56 1.17 1993 0.99 1.39 0.99 159.28

1.40 160.55 1.01 2.03 232.32 1.45

1996 1.52 2.14 245.75 1.06 1997 1.51 2.13 243.90 0.99 1998 1.48 2.09 239.65 0.98 1999 1.50 2.12 242.38 1.01

1992*

1994 0.99 1995 1.44

Note: The 1992 stumpage value was derived using the study by G.J. Francisco and M. L. P. Segayo. The stumpage values for the other years were derived by adjusting the 1992 level by the changes in the Implicit Price Index of Forestry (IPIN).

Sources: National Statistical Coordination Board *Forest Management Bureau



REFERENCES Balangue, T. O. Accounting for Deforestation in Palawan, Philippines. Final Report.

December 1994. Carandang, A. P., et. al. 1990. Physical Forest Resources Accounting of Palawan

Province. Final Draft. 22 August 1994.

Delos Angeles, Marian S. 1989. Economic Rental from the Sale of Logs in the Philippines.

Forest Management Bureau-Department of Environment and Natural Resources (FMB-DENR). 1988. RP-German Forest Resources Inventory Project. Forest Resources of Region 4 (Part 2: Palawan).

Forest Management Bureau-Department of Environment and Natural

Resources (FMB-DENR). 1988. Philippine Forestry Statistics. FMB-DENR, Manila, Philippines

National Statistical Coordination Board. 1998. Philippine Asset Accounts: Forest,

Land/Soil, Fishery, Mineral and Water Resources. ENRA Report No. 2. Makati City, Philippines.

Pabuayon, I. M. 1991. Natural Resource Accounting: Rattan. NRAP-I. Technical

Report No. 8. Palawan Council For Sustainable Development Staff. 1999. Minara Mangrove

Study. Uriarte, Monina T. and Felizardo D. Virtucio. 1988. Growth and Yield of Residual

Forest in the Philippines. Ecosystem Research and Development Bureau, DENR, College, Laguna.


Palawan Land/Soil Resource

49 Palawan Land and Soil Resource

Environment and Natural Resources Accounting

LAND AND SOIL RESOURCES

3.1 INTRODUCTION 1. Palawan is the largest province in the country with a total land area of 1,489,630 hectares (NSO, 1980). In 1988, it was estimated that around 43.4 percent or 650 thousand hectares were forest lands, 11.6 percent or 172,945 hectares were agricultural lands, 0.5 percent or 5,292 hectares were built-up lands and 44.5 percent or 662,534 hectares were devoted to other uses (JAFTA, 1993). 2. Before 1992, logging operations and kaingin activities were rampant in the province. These resulted to massive conversion of forestlands to agriculture and other land uses. Consequently, indiscriminate degradation due to rising rate of erosion has threatened the agricultural and other economic land uses. If this is left unchecked, the economy of the province as well as the sustainability to produce food supply may be affected. This, therefore, raises the need to conserve, manage and protect the land from uncontrolled and haphazard development that could lead to degradation and decrease in land productivity.

3. Soil is one of the most important natural resources because of its direct relationship to food production. Population growth rate in the province indicates a growing population largely dependent on land and soil for its food, shelter and livelihood. Thus, it is important and necessary to understand its nature to be able to conserve and manage this resource. Without proper management and conservation, this resource will become susceptible to damage. 3.2 CONCEPTUAL FRAMEWORK

3.2.1 Scope and Coverage 4. Under the System of Integrated Economic and Environmental Accounting (SEEA), land and soil are classified as non-renewable, non-produced “economic” or “environmental” assets. These assets are considered non-renewable because their natural replenishment is so slow that it does not offer a potential for augmenting their stocks in any reasonable period. The assets can only be increased through the process of production, such as reclamation, but not through geological or geophysical processes (NSCB, 1998). 5. This report will discuss the economic use of land resource and not by its topographical features or definition, but rather, by the actual use of the land. Operationally, lands devoted to the different economic uses will cover forest, agricultural and built-up uses. The compilation of economic asset accounts for lands devoted to forest, agricultural, and built-up uses was undertaken because of their importance in balancing ecology, food production, security and human survival. The lands devoted to forest use is applied to areas occupied by the productive dipterocarp (old growth and residual), mossy, marginal and mangrove forest. Planting of trees under stewardship contracts and private lots were not considered in the accounts. Lands devoted to agricultural uses include all types of lands used for agricultural purposes, regardless of ownership and slope. Residential, commercial, industrial, government lands, educational, religious and special classes were classified under lands devoted to built-up use. Due to the large composition of

Palawan Land and Soil Resource 50


government-owned lands, that in reality have multi-uses, the actual built-up areas in selected municipalities were segregated and eventually incorporated into total area of lands devoted to built-up uses.

3.2.2 Framework for the Asset Accounts 6. The framework of the asset accounts on land and soil resources considers two sets of accounts, namely: the land resource as the core account and the soil resource as the link accounts. The SEEA framework for non-renewable assets was applied to both physical and monetary asset accounts of the land and soil resources. Figures 3.1 and 3.2 show the outline of the framework. Figure 3.1. Physical Accounts Framework for the Land / Soil Resource

PHYSICAL LAND RESOURCE (CORE) ACCOUNT (IN HECTARES)

AGRICULTURAL LANDS FOREST LANDS BUILT-UP LANDS OPENING STOCKS Quantity of land (area in

hectares) used specifically for agriculture purposes at the beginning of the accounting period

Quantity of forested area (in hectares) used specifically for forest uses at the beginning of the accounting period

Quantity of land (area in hectares) specifically for built-up uses at the beginning of the accounting period

OTHER ACCUMULATION

Kaingin (+) Land use conversion (-)

Deforestation Kaingin (-) Illegal logging (-) Reforestation (+) Forest area converted to non-forest use (-) Damage from logging (-)

Land use conversion (+) Reclamation (+)

OTHER VOLUME CHANGES

Natural Disasters Forest fires (-) Other Natural Causes (infestation, typhoons, etc.) (-)

Natural Disasters

ADJUSTMENTS (Statistical Discrepancy)

Balancing item of the beginning and ending stocks



CLOSING STOCKS Quantity of land (area in hectares) used specifically for agriculture purposes at the end of the accounting period

Quantity of forested area (in hectares) used specifically for forest uses at the end of the accounting period

Quantity of land (area in hectares) specifically for built-up uses at the end of the accounting period

DEGRADATION Soil Resource (Link) Account, in metric tons

Change in Land and Soil Quality

Physical Accounts

a. Land Resource (Core) Account 7. The opening and closing stocks refer to the quantity of land (area in hectares) in each category at the beginning and end of the accounting period. There are no quantitative losses of land due to economic uses since changes in the area can only be caused by wars or political decisions and, in some cases, natural disasters. Increase in land may, however, be made for economic reasons by means of land reclamation. These cases fall under the category other accumulation, which simply pertains to the changes on the quantity of land caused by economic decisions. Included in this classification are changes in land use and/or transfers of non-economic land from the environment into the economy for production purposes (NSCB, 1998). Kaingin, forest fire and conversion of forestlands to other uses would be a reduction to the total forest area while reforestation projects increase lands devoted to forest use.



8. On the other hand, conversions from agricultural to non-agricultural uses would decrease agricultural areas and increase other types of lands such as built-up areas. Conversion of mangrove to fishpond would also increase agricultural area. The adjustment is an item in the physical accounting that balances the resulting closing stock of the previous year to the opening stock of the following year.

b. Soil Resource (Link) Account 9. The link account covers the changes in quality of land and soil expressed in terms of fertilizer equivalent of the nutrient loss. Soil is transferred from one place to another or is lost to rivers, canals, and waterways, through soil erosion. As a result, it is believed that the eroded soil will finally affect land productivity.

c. Land Use (supplementary) Account 10. The physical extent of lands for general and specific uses is accounted for in the supplementary accounts and is expressed in hectares. Specifically, it represents physical area by type of land use, land utilization, and presence of irrigation facilities (NSCB 1998).

Monetary Accounts 11. The opening and closing stocks and other accumulation in the monetary accounts are the counterparts of the same items in the physical asset accounts of the land resource (core) account, expressed in peso terms. Meanwhile, the soil resource (link) account is valued based on the total cost of nutrient loss and fertilizer application, also expressed in peso terms. On the other hand, revaluation records the valuation of the adjustment (balancing item) from the physical accounts. Figure 3.2. Monetary Accounts Framework for the Land / Soil Resource

MONETARY VALUATION OF LAND RESOURCE (IN MILLION PESOS)

AGRICULTURAL LAND FOREST LAND BUILT-UP LAND OPENING STOCKS Value of land (in pesos) used

specifically for agriculture purposes at the beginning of the accounting period

Value of land (in pesos) used specifically for forest uses at the beginning of the accounting period

Value of land (in pesos) specifically for built-up uses at the beginning of the accounting period

OTHER ACCUMULATION

Value of Kaingin areas (+) Value of total agricultural land converted to other uses (-)

Value of Deforestation Kaingin (-) Illegal logging (-) Cost of Reforestation (+) Value of forest areas converted to non-forest use (-) Cost of logging damage (-)

Value of land converted to built-up uses(+) Reclamation (+)


Value of Agricultural land damaged due to natural causes

Value of forest land damaged by forest fire (-) Value of forest land damaged due to other natural causes (infestation, typhoons, etc.) (-)

Value of built-up land damaged due to natural causes

Revaluation Holding gains and losses Holding gains and losses Holding gains and losses

CLOSING STOCKS Value of land (in pesos) used specifically for agriculture purposes at the end of the accounting period

Value of land (in pesos) used specifically for forest uses at the end of the accounting period

Value of land (in pesos) specifically for built-up uses at the end of the accounting period

COST OF DEGRADATION (in million pesos)



3.3 OPERATIONALIZING THE FRAMEWORK 3.3.1. Sources of Data

Physical Accounts 12. The physical accounts for lands devoted to forestry uses were estimated using the data from different sources. Data on the physical area for 1985 was derived from the aerial photo conducted by the National Mapping and Resources Information Authority (NAMRIA) and interpreted by the Department of Environment and Natural Resources (DENR) under its special project, the Palawan Integrated Area Development Project – Land Classification Component. The 1992 data were derived from the Wide Area Tropical Forest Resource Survey carried out by Japan Forest Technical Association (JAFTA) as a subsidy project of the Information System Development Project for the management of tropical forest. Data on the physical area from the 1985 aerial photo and 1992 land satellite were used as basis for estimating the opening stocks during the accounting period using the average annual growth rate (AAGR) formula1. 13. For lands devoted to agriculture use, the physical accounts were estimated using the data on farm areas by municipality reported by the National Statistics Office (NSO) in the Census of Agriculture (CA). Data on the physical area for 1980 and 1991 were used to estimate the inter-censal years and beyond 1991 using the AAGR formula. For lands devoted to built-up use, the physical asset accounts was estimated using the data from the annual assessment of real properties from the Assessor’s Office. Data from 1990 to 1994 and 1998 are actual data while the growth rate between 1994 and 1998 were used to compute for the area in between these years using the AAGR formula. 14. The basic data for area covered by kaingin, forest fire, forest conversion and reforestation were taken from the Provincial Environment and Natural Resources Office (PENRO) and Community Environment and Natural Resources Office (CENRO). Data on mangrove conversion into fishpond were sourced from the Municipal Planning Office of Espanola, covering the period from 1995 to 1998. Soil erosion data and sediment delivery ratio of 50 percent and 75 percent for forested area and agricultural area, respectively, were based on Tamlang Catchment Study by Hunting Technical Services Limited, England in 1985. Data on the area of land converted from agricultural to other uses were sourced from the Department of Agrarian Reform (DAR) and Office of the City Planning Development (OCPD) while forestland converted to agricultural uses and kaingin area were sourced from CENRO/PENRO reports. Data on the land use by type were gathered from the City and Provincial Assessors’ Office while the breakdown of government-owned lands by actual land use was sourced from selected Municipal Assessor’s Office. 15. Table 3.1 provides a summary of the data sources for lands devoted to forestry, agriculture and built-up uses. 1 Formula used in the computation of the geometric formula of Average Annual Growth Rate

AAGR (%) = [((y2/ y1 )1/t )-1] x 100 Where :

AAGR = average annual growth rate t = (y2-y1) y2 = latest baseline data (i.e. 1992) y1 = previous baseline data (i.e.1985



Table 3.1. Sources of Data on Lands Devoted to Forestry, Agriculture and Built-up Uses Sources Period Physical Monetary Forest Areas NAMRIA 1985 JAFTA 1992 Farm Area by Crop NSO , CA 1980 and 1991 Land Conversion from Agriculture

to other uses DAR, OCPD 1989-1997

Kaingin PENRO/CENRO 1992-1998 Forest Fire PENRO/CENRO 1992-1998 Forest Conversion PENRO/CENRO 1990-1997 Mangrove Conversion PENRO/CENRO 1995-1998 Reforestation PENRO/CENRO 1987-1998 Logged Areas Phil. Forestry Statistics 1988-1992 Soil Erosion Tamlang Catchment Study 1985 Sediment Delivery Rates Tamlang Catchment Study 1985 Fertilizer Prices FPA 1988-1998 Implicit Price Index for Real Estate NSCB 1988-1998

Agricultural Wage Rate BAS Agri Labor Survey as cited in CLS of BLES 1988-1998

Land Use Provincial Assessor’s Office City Assessor’s Office

1990-1998 1989-1998

Reclamation OCPD 1990

Monetary Accounts 16. Forest land values were taken from the City Assessor’s Office. Data on zonal values2 of agricultural lands, residential, commercial, industrial and institutional lands were taken from the Bureau of Internal Revenue, Asset Valuation Division. The implicit price index (IPIN) for real estate came from NSCB. The prices of chemical fertilizers (Urea, Solophos, and Muriate of Potash) were obtained from the Fertilizer and Pesticides Authority (FPA). Further, the cost of fertilizer application was taken from the BAS Agricultural Survey, as cited in the Bureau of Labor and Employment Statistics (BLES) Census of Labor Statistics (CLS).

3.3.2. Estimation Methodology 17. The compilation of asset accounts of land and soil resource involves both physical and monetary accounting. The physical account is expressed uniformly in terms of hectares of physical land area and metric tons of soil loss, due to erosion. In the monetary account, area in the physical area and the volume of soil loss were valued including the cost incurred to replenish the nutrient loss through fertilizer application.

Physical Accounts 18. The physical accounts describe the changes in the lands devoted to forest, agriculture and built-up uses for a given period. The estimates in physical terms were computed using the data on area by forest type, farm areas, and built-up areas.

2 Processing of raw data on zonal values was done to get the mean zonal values by municipality. The estimated zonal values of lands, by type of land use for the province is the average of the mean zonal values by municipality. Zonal values refer to the fair market value of real properties located in each zone or area for internal revenue tax purposes.



a. Land Resource (Core) Account

19. The compilation of the asset account in physical terms reflects the changes in the beginning and ending stocks of land resources. Stock changes are due to other accumulation, which appeared in two forms: additional areas or positive accumulation and reduction in areas or negative accumulation. Lands devoted to forest uses 20. The projected total land area devoted to forest use per year served as the closing stock for the year and opening stock of the next year. Adjustment was computed to make the opening stock tally with the closing stock after taking into account other accumulation. Positive accumulation was brought about by reforestation of denuded areas while kaingin activities and forest conversion to non-forest uses were accounted for negative accumulations. Forest fire destruction was also covered under other volume changes. The formula used for adjustment was closing stock less the opening stock less the negative accumulation plus the positive accumulation.

Lands devoted to agricultural uses

21. The physical accounts for lands devoted to agricultural use were estimated based on the total agriculture area of each municipality. The actual agricultural area in 1991 and the projected area from 1988 to 1990 and 1992 to 1998 served as the closing stock for the year and opening stock of the next year. Positive accumulation for lands devoted to agricultural lands were kaingin activities and forestland converted to agricultural uses. On the other hand, negative accumulation was brought about by agricultural land converted to other uses. Lands devoted to built-up uses 22. The opening stock and closing stock for the total built-up area was sourced from the Assessment of Real Property of the Assessor’s Office. Included here are the total residential, commercial, industrial, special classes, religious, institutional, and government area. The government area covers the roads, public market, cemetery, plaza, barangay sites and government buildings, which were segregated from the total government-owned land through processing of raw data from the records of the Assessor’s Office of selected municipalities. Reclamation areas were considered as positive accumulation, while there was no negative accumulation in the case of lands devoted to built-up use.

b. Soil Resource (Link) Account

Forest soil resource 23. As stated earlier, lands are not depleted, but may undergo change in quality due to the slow process of natural replenishment to augment nutrients loss. To value the change in quality of the land resource, soil erosion data and from the Tamlang Study were utilized to estimate the volume of sedimentation. An erosion rate of 5 tons/ha/year with a sediment delivery ratio of 50 percent was used for lands devoted to forest use.



Agricultural soil resource 24. Referring to the same study, an average of 49.6 tons/ha/year with a 75 percent sediment delivery rate was applied for lands devoted to agriculture use. Nutrient loss was computed based on the results of Francisco’s study in 1994 which revealed that for every one metric ton of sediment there is an equivalent 2.85 kg Nitrogen, 0.06 kg Phosphorus and 0.44 kg of Potassium.

c. Supplementary Account

Lands devoted to forest uses 25. The 1985 Aerial Photograph and 1992 Satellite Imagery data from NAMRIA and JAFTA, respectively, were used in coming up with the adjusted physical area of forest lands by type of forest. Values for the other years were projected using the geometric AAGR formula (See Appendix Tables 3.1). Lands devoted to agricultural uses 26. The agricultural lands by type of farm was estimated using the same process, with data coming from NSO on 1980 and 1991 Census of Agriculture of NSO (See Appendix Table 3.13). Estimates from the period of 1981 to 1990 and 1992 to 1998 were derived using AAGR and percentage value (See Appendix Tables 3.11). Lands devoted to built-up uses 27. Average annual growth rate was also used to come up with the physical area of built-up in Palawan from 1988-1998 based on the 1990 and 1998 data on the Assessor’s Annual Report on the Assessment of Real Property from the Provincial Assessor’s Office and the City Assessor’s Office. (See Appendix Tables 3.15).

Monetary Accounts 28. In the monetary asset accounts, two parameters were used in valuing the land and soil resources, namely: the equivalent fertilizer loss and the zonal values by land use were both expressed in peso value.

a. Land Resource (core) Account

29. For the land resource (core) account, opening stock was calculated using the physical land area in each year multiplied by the mean zonal values of different types of land use of the previous year. Similar procedure was followed in valuing the closing stock but the average zonal value for the current year was used. The IPIN of real estate was used to come up with a time series estimate for the average zonal values. Other accumulation was estimated using the average value of the opening stock and the closing stock. Revaluation was computed using the formula closing stock less opening stock less negative accumulation plus positive accumulation.



b. Soil Resource Account

30. Soil resource (link) account provides the estimated soil degradation due to sedimentation. The equivalent fertilizer loss was valued using the average retail price of fertilizers (Urea, Solophos and Muriate of Potash) and the estimated value of the labor days required to apply fertilizer, which was based on average wage rate.

3.3.3 Underlying Assumptions and Limitations 31. In estimating the land and soil resource account, the following assumptions were used:

a. The Integrated Social Forestry areas are considered forest conversion into agricultural areas.

b. There is no soil degradation in built-up areas. c. Damaged area due to logging was assumed to decrease forest area

but it was not considered as positive other accumulation in estimating lands devoted to agriculture use.

d. Pasture areas are classified under lands devoted to agricultural use.

The DENR reported pasture areas as conversion from forestlands to pasture use while NSO reported the same under agriculture use. In this exercise, the NSO classification was adopted.

32. Similarly, there are various limitations in estimating the land and soil resource as follows:

a. The 1985 information on land use is limited to Mainland Palawan. b. Due to differences in the mode of data generation, that is, the 1985

land use was an interpretation of aerial photos and the 1992 data were taken from land satellite imageries, inconsistency in the estimation and classification of the land cover was encountered.

c. There was inadequate data on areas subjected to kaingin. d. There were no reports on the conversion of mangroves into fishponds

for a specific period. e. With the absence of casuarina3 forest from the 1992 JAFTA satellite

imagery report, it was excluded in the land resource accounts. Casuarina forest however was reflected in the 1985 aerial photographs.

f. The data on agricultural area collected from LGUs did not tally with the

total municipal agricultural area as reported by NSO. Data from some municipalities were likewise limited only to some crops.

3 A genus of leafless trees or shrubs, with drooping branchlets of a rushlike appearance, mostly natives of Australia. Some of them are large, producing hard and heavy timber of excellent quality, called beefwood from its color.



g. Data on the assessment of real property from the Provincial and City Assessor’s Offices were used instead of data from the satellite imagery by JAFTA and photo interpretation by DENR–LC component (which reflects very small areas for built-up use). However, not all of these areas have buildings, roads and other structures.

h. Data on government classification came from selected municipalities

only and were composed of roads, public markets, cemeteries, and other built-up areas from government-owned lands. Those municipalities however, represent 74 percent of the total government-owned land.

3.4 RESULTS AND DISCUSSION

3.4.1 Physical Asset Accounts

Land Resources

a. Land Resources Devoted to Forest Use

33. Based on the 1985 and 1992 data (Appendix Table 3.1), lands devoted to forest uses have decreased at an average annual rate of 0.6 percent. This could be explained by the fact that three major logging concessions were still operating in the province until 1992. Table 3.2 shows that the estimated closing stock in 1988 was 647,090 hectares and was reduced to 611,642 hectares in 1998, indicating an average decrease of 3,545 hectares per year. The changes in forest areas were attributed to other accumulation like deforestation (kaingin), forest conversion to non-forest uses, reforestation and damage due to logging and other volume changes like forest fire destruction.

34. Estimates for the period 1988 to 1998 showed that a total of 814 hectares were opened up for kaingin farming. However, kaingin only contributed 5.4 percent to the total decrease in forest area during the period covered. A large area of forest was destroyed by forest fire in 1998. The area damaged was estimated to have reached 9,456 hectares. The decrease in forest area was not treated as an increase in the agricultural area but remained as part of forest lands. Around 14,113 hectares of forest lands were converted to other uses during the accounting period. The highest conversion was reported in 1994 with an area of 3,024 hectares or 21 percent of the total forest conversion for the period covered while the lowest was reported in 1988 with an area of 404 hectares or 2.8 percent of the total forest conversion. Of the 14 municipalities in mainland Palawan, Taytay recorded the highest forest conversion to non-forest uses (Appendix Table 3.3). Sopronio Espanola was the only municipality that reported mangrove areas converted to fishpond (Appendix Table 3.14).

35. Before the commercial logging ban in 1992, there were three logging concessionaires in the province. Therefore, the area left behind by these concessions provided the opportunity for kaingineros to open it to slash and burn farming and agroforestry. The largest area damaged due to logging was reported in 1989 with an area of 1,104 hectares and the smallest was in 1992 with an area of only 265 hectares. Reforestation is done as follow-on activity to rehabilitate an area damaged due logging. Data on reforested area showed that 7,425 hectares were replaced with trees during the period. However, this is only 40 percent of the total



deforestation, forest conversion to other uses and damage due to logging, which have reached an aggregate area of 18,603 hectares at the end of 1998. 36. The resulting statistical discrepancy or adjustment indicates that a large area of forestland was still unaccounted. This could be attributed primarily to several activities in the forest such as logging (legal or illegal), kaingin and forest conversion to non-forest uses, which were not locally monitored and therefore not reported. Table 3.2. Physical Asset Accounts of Land Resources Devoted to Forest Uses,

Mainland Palawan, 1988-1998 (in hectares) Item 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

OPENING STOCK 1/ 650,746 647,090 643,455 639,840 636,245 632,671 629,117 625,582 622,068 618,573 615,098

OTHER ACCUMULATION a. Deforestation Kaingin 2/ (-) - - - (13) (61) (105) (11) (93) (94) (227) (210)b. Reforestation 3/ (+) 21 655 922 849 595 1,435 258 2,452 4 82 153c. Forest area converted to non-

forest uses

Mangrove conversion 4/(-) - - - - - - - (3) (4) (5) (5) Other forest conversions 5/(-) (404) (2,176) (1,311) (1,478) (606) (1,207) (3,024) (1,252) (1,676) (979) -d. Damage due to logging 6/ (623) (1,104) (884) (783) (265) - - - - - -OTHER VOLUME CHANGES a. Forest Fire 7/(-) - - - 13 9 7 - 16 65 35 9,456 ADJUSTMENT 8/ (2,649) (1,010) (2,341) (2,183) (3,246) (3,685) (757) (4,635) (1,789) (2,382) (12,850)

CLOSING STOCK 647,090 643,455 639,840 636,245 632,671 629,117 625,582 622,068 618,573 615,098 611,642 Source: 1/ Physical area derived from the projected physical area from aerial photographs and satellite imageries using both percentage value and average annual growth (geometric) rate. See Appendix Table 3.1 2/ See Appendix Table 3.2 3/ See Appendix Table 3.4 4/ See Appendix Table 3.14 5/ See Appendix Table 3.3 6/ See Appendix Table 3.5 7/ See Appendix Table 3.2 8/ Balancing Item = CS-(OS+(-OAa)+(-OAb)+(-OAc1)+(OAc2)+(-OAd)+(-OVCa))

b. Land Resources Devoted to Agricultural Use 37. Changes in the agricultural areas are attributed to kaingin and land conversion from forest lands to agricultural uses as well as mangrove areas converted to fishpond. Illegal land conversion, which were done without the approval of DAR, is another reason for the change in agricultural areas. As shown in Table 3.3, other accumulation of agricultural land amounted to a total of 14,943 hectares during the whole accounting period, or an average of 1,494 hectares per year. Further, it indicates that an average of 81 hectares kaingin area, 1.6 hectares of mangrove area, and 1,494 hectares of forest area was added to the agricultural area per year, while an average of 60.5 hectares was converted from agriculture to other uses. 38. Of the residual area which is reflected as adjustments or statistical discrepancy, a large tract of agricultural area are still unaccounted for, but this is primarily attributed to the kaingin areas which are not properly monitored. Under the project, data on agricultural area were generated at the municipal level. Municipal accounts will be prepared as a follow-on activity after the termination of this pilot accounting exercise.



Table 3.3. Physical Asset Account of Land Resources Devoted to Agricultural Uses, Palawan, 1988-1998 (in hectares)

Items 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 OPENING STOCK 1/ 169,010 172,945 176,971 181,091 185,306 189,620 194,035 198,552 203,174 207,904 212,744

OTHER ACCUMULATION a. Kaingin (+) 2/ 13 61 105 11 93 94 227 210 b. Land use conversion: Agricultural areas converted to

built-up uses (-) 3/ - (74) (234) (14) (83) (17) (11) (81) (72) (19) -

Mangrove to Fishpond (+) 4/ 3 4 5 5 Forest lands converted to

agricultural uses (+) 5/ 404 2,176 1,311 1,478 606 1,207 3,024 1,252 1,676 979 -

ADJUSTMENT 3,531 1,924 3,043 2,739 3,730 3,119 1,493 3,355 3,028 3,648 4,738

CLOSING STOCK 172,945 176,971 181,091 185,306 189,620 194,035 198,552 203,174 207,904 212,744 217,697 1/ Physical area derived from the projected physical area from NSO using the annual growth rate and percentage value by

crop see Appendix Table 3.11 2/ See Appendix Table 3.12 3/ See Appendix Table 3.13 4/ See Appendix Table 3.14 5/ See Appendix Table 3.3 6/ Balancing item = CS - (OS+OAa+(-OAb1)+OAb2+OAb3)

c. Lands Devoted to Built-up Use 39. There was a substantial change in the built-up area during the period from 1988 to 1998; total built-up area rose at an average of 3,480 hectares per year, or 19.5 percent annually. This may be due to the fast infrastructure development of the province to meet the demand of an increasing population. Table 3.4 shows the estimates for lands devoted to built-up use.

Table 3.4. Physical Asset Account of Land Resources Devoted to Built-up Use,

Palawan, 1988-1998 (in hectares) Item 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

OPENING STOCKS 1/ 6,200 7,061 8,155 9,555 12,594 19,244 19,643 20,360 24,486 29,152 34,863

OTHER ACCUMULATION

1. Agriculture to built-up use (+) 2/

- 74 234 14 83 17 11 81 72 19 -

2. Reclamation (+) - - 1 - - - - - - - -

ADJUSTMENT 3/ 861 1,021 1,164 3,025 6,567 382 706 4,045 4,594 5,692 6,994

CLOSING STOCKS 7,061 8,155 9,555 12,594 19,244 19,643 20,360 24,486 29,152 34,863 41,857 Source: 1/ Physical area derived from the projected physical area from Assessor's Annual Report using both percentage value (and

annual growth geometric) rates. See Appendix Table 3.15 2/ See Appendix Table 3.13 3/ Balancing Item =CS - (OS +OA1 +OA2)

Soil Resources 40. The change in soil quantity expressed in terms of soil eroded from the forestlands, upland, and lowland agricultural areas is shown in Tables 3.5 and 3.6, using the average erosion rates from the Tamlang Catchment Study. In estimating the volume of sediment permanently lost from forest and agricultural lands, a 50 percent delivery rate was adopted for forested lands and 75 percent delivery rate for agricultural land based on the same study.



Forest Soil Resource

41. The computed volume of soil eroded in forested land was 3.2 million metric tons in 1988, which slightly declined to 3.1 million metric tons in 1998. The volume of sediments due to erosion from forest area amounted to 1.6 million metric tons in 1988 and decreased to 1.5 million metric tons in 1998. For lands devoted to forest use, the annual average nutrient loss from sediments expressed in fertilizer equivalent was 4,931 tons of nitrogen, 104 tons of phosphorous and 761 tons of potassium during the period. Table 3.5. Physical Asset Account of Soil Resource for Forest Land Use, Mainland

Palawan, 1988-1998 (in metric tons) Changes In Quality 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 Soil Eroded 1/ 3,235,451 3,217,275 3,199,200 3,181,227 3,163,355 3,145,583 3,127,912 3,110,339 3,092,865 3,075,489 3,058,211 Sediment 2/ 1,617,726 1,608,637 1,599,600 1,590,614 1,581,678 1,572,792 1,563,956 1,555,169 1,546,433 1,537,745 1,529,106 Nutrient Loss 3/ Fertilizer Equivalent 5,419 5,389 5,359 5,329 5,299 5,269 5,239 5,210 5,181 5,151 5,123 Nitrogen 4,611 4,585 4,559 4,533 4,508 4,482 4,457 4,432 4,407 4,383 4,358 Phosphorous 97 97 96 95 95 94 94 93 93 92 92 Potassium 712 708 704 700 696 692 688 684 680 677 673

1/ Total forest area x erosion rate, wherein erosion rate for forestlands is 5 tons/ha/yr. (Appendix Table 3.7.) 2/ Total forest area x erosion rate x delivery ratio, wherein delivery ratio for forestlands is 50% (Appendix Table 3.7.) 3/ The equivalent fertilizer loss based on Francisco’s Study 1994.

Nitrogen = 2.85 kg/MT of sediment Phosphorous = 0.06 kg/MT. of sediment Potassium = 0.44 kg/MT of sediment

Agricultural Soil Resource 42. On the other hand, the volume of soil eroded from agricultural area was 8.6 million metric tons in 1988 and 10.8 million metric tons in 1998. Eroded materials are deposited in waterways and farmland, or may be dissolved in water as they are carried downstream. Volume of sediments due to erosion in agricultural lands was 6.4 million metric tons in 1988, which rose to 8.1 million metric tons in 1998. Meanwhile, 226.9 thousand tons of nitrogen, 4.8 thousand tons phosphorous and 35.0 thousand tons of potassium were lost from lands devoted to agricultural use during the period. Table 3.6. Physical Asset Accounts on Soil Resource for Agricultural Land Use,

Palawan, 1988–1998 (in thousand metric tons) Changes In Quality 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 Soil Eroded 1/ 8,578 8,778 8,982 9,191 9,405 9,624 9,848 10,077 10,312 10,552 10,798Sediment 2/ 6,434 6,583 6,737 6,893 7,054 7,218 7,386 7,558 7,734 7,914 8,098Nutrient Loss 3/ Fertilizer Equivalent ('000 tons) 21.55 22.05 22.57 23.09 23.63 24.18 24.74 25.32 25.91 26.51 27.13 Nitrogen 18.34 18.76 19.20 19.65 20.10 20.57 21.05 21.54 22.04 22.56 23.08 Phosphorous 0.39 0.39 0.40 0.41 0.42 0.43 0.44 0.45 0.46 0.47 0.49 Potassium 2.83 2.90 2.96 3.03 3.10 3.18 3.25 3.33 3.40 3.48 3.561/ Total agricultural area x erosion factor, wherein erosion factor is 49.6 tons/ha/year. 49.6 is the average of erosion factor per

ton/ha/yr from cleared/cropped area and brush/grasslands area (Appendix Table 3.7). 2/ Sediment Delivered = Soil Eroded x Sediment Delivery Ratio, wherein delivery ratio is 75 %, (Appendix Table 3.7) 3/ Nutrient loss = fertilizer equivalent loss, based on Francisco’s Study, 1994

Land Use (Supplementary) Accounts

Lands devoted to Forest Uses 43. Table 3.7 shows the area of forest lands by type of forest: dipterocarp- old growth and residual, mossy, marginal and mangrove forests. Land conversions have



occurred as a consequence of deforestation to convert land for crop production, habitation, infrastructure, and industry use. Total land area of all types of forest from the period 1988 to 1998 showed a reduction of 35.4 thousand hectares, which were converted to other uses. Area on old growth dipterocarp continuously declined at an average of 6.3 percent annually, which brought about the increase of second growth dipterocarp of 5.8 percent annually. It is likewise noteworthy to mention the substantial drop of marginal forest from 24 thousand hectares in 1988 to 2.7 thousand in 1998 or an annual decrease of 19.5 percent. Noticeably, only the residual or second growth dipterocarp registered upward trend. Table 3.7. Adjusted Physical Area of Forest Lands by Type of Forest, in Hectares,

Mainland Palawan, 1988-1998 Type Of Forest

1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

1. Productive Dipterocarp

555,266 556,460 557,240 557,689 557,882 557,877 557,720 557,448 557,088 556,657 556,168

Old Growth 339,208 323,769 307,708 291,219 274,487 257,684 240,970 224,489 208,370 192,725 177,649 Residual 216,057 232,691 249,531 266,470 283,395 300,193 316,750 332,959 348,718 363,932 378,518 2. Mossy 31,848 31,421 30,866 30,195 29,417 28,545 27,591 26,568 25,490 24,369 23,218 3. Marginal 24,090 19,740 16,105 13,085 10,588 8,533 6,850 5,479 4,366 3,466 2,743 4. Mangrove 35,886 35,834 35,629 35,276 34,784 34,162 33,421 32,572 31,629 30,605 29,513 TOTAL 647,090 643,455 639,840 636,245 632,671 629,117 625,582 622,068 618,573 615,098 611,642

Source: 1985 Aerial Photographs and 1992 Satellite Imagery Note: The 1986-1991 and 1993-1998 values are projections based on the 1985 aerial photographs and 1992 satellite imageries using the average annual growth rate (geometric) formula; see Appendix Table 3.1. Lands devoted to Agricultural Uses 44. Agricultural areas posted only 2.3 percent annual increase despite the significant growths in mango farms and pasture lands, which registered 13.7 percent and 10.5 percent annual increase, respectively. This can be due to huge drops in areas for coffee, vegetable and rootcrops, which posted average annual decreases of 12.7percent, 13.6 percent and 11.4 percent, respectively. (Table 3.8). Table 3.8. Adjusted Physical Area of Agricultural Lands by Type of Farm

In Thousand Hectares, Palawan 1988-1998 Item 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

Permanent Crop 57.75 56.63 55.47 54.28 53.06 51.84 50.62 49.41 48.23 47.08 46.00 Cashew 15.56 15.74 15.86 15.94 15.96 15.92 15.83 15.68 15.49 15.24 14.94 Citrus 0.31 0.31 0.30 0.30 0.29 0.29 0.28 0.27 0.26 0.25 0.24 Mango 2.04 2.35 2.71 3.10 3.54 4.04 4.58 5.18 5.84 6.56 7.34 Banana 4.71 4.69 4.66 4.62 4.56 4.48 4.39 4.29 4.17 4.05 3.91 Coconut 29.88 28.28 26.68 25.08 23.50 21.94 20.41 18.93 17.49 16.10 14.77 Coffee 0.57 0.51 0.45 0.40 0.35 0.30 0.26 0.23 0.20 0.17 0.15 Others 4.68 4.75 4.80 4.84 4.86 4.87 4.86 4.83 4.78 4.72 4.64

Temporary Crops 84.11 85.45 86.60 87.54 88.26 88.74 88.97 88.96 88.69 88.17 87.41 Palay 63.11 63.76 64.19 64.40 64.40 64.17 63.72 63.05 62.17 61.09 59.83 Corn 17.11 18.08 19.03 19.97 20.87 21.75 22.58 23.36 24.09 24.75 25.34 Vegetables 0.72 0.63 0.55 0.48 0.42 0.36 0.31 0.27 0.23 0.20 0.17 Rootcrops 2.28 2.05 1.84 1.64 1.46 1.30 1.15 1.01 0.89 0.78 0.68 Others 0.88 0.93 0.99 1.05 1.10 1.16 1.21 1.26 1.31 1.35 1.40

Pastured Land 31.09 34.89 39.02 43.49 48.30 53.46 58.96 64.81 70.99 77.49 84.29 Total 172.94 176.97 181.09 185.31 189.62 194.03 198.55 203.17 207.90 212.74 217.70

Note: The 1988 - 1990 and 1992 - 1998 values are projections using the average annual growth rate (geometric) formula per crop based

on the 1980 and 1991 Census of Agriculture. See Appendix Table 3.11.



Lands devoted to Built-up uses 45. Built-up areas increased significantly from 7.1 thousand hectares in 1988 to 41.9 thousand hectares in 1998, indicating a 19.5 percent annual increase. Industrial and commercial area registered very high positive growths of 92.4 percent and 67.6 percent, respectively; likewise, religious, residential, education, government and hospital areas all registered positive growths (see Table 3.9). These figures reveal the rapid urbanization of Palawan due to population pressures, the development of tourism and the fast rising industrialization and commercialization of the province. Table 3.9. Adjusted Physical Area of Built-up, Palawan,

In Hectares, 1988-1998 Land Use 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

Residential 1,937 2,580 3,384 3,666 4,901 4,748 5,023 6,061 7,153 8,141 8,764 Commercial 53 86 137 215 246 307 446 1,000 2,192 4,635 9,269 Industrial 18 57 174 2,495 7,696 7,706 7,707 9,164 10,658 11,954 12,681 Government* 2,554 2,807 3,085 3,313 3,570 3,862 4,195 4,946 5,435 5,974 6,565 Hospital 16 20 23 25 22 22 22 24 26 27 27 Educational 463 566 681 802 725 788 717 929 1,177 1,437 1,661 Religious 32 51 81 87 92 217 256 367 515 697 892

Total 7,061 8,155 9,555 12,594 19,244 19,643 20,360 24,486 29,152 34,863 41,857 * Result of data processing from selected municipalities Sources: Assessor's Annual Report on the Assessment of Real Property, Provincial Assessor's Office Assessor's Annual Report on the Assessment of Real Property, City Assessor's Office Note:

The 1988-1989 and 1995-1997 values are projections using the average annual growth rate (geometric) formula per type of land use based on the Assessor's Annual Report for year 1990 and1998.

3.4.2 Monetary Accounts

Land Resource

a. Lands Devoted to Forest Use

46. For lands devoted to forest use, the opening stock in 1988 was valued at P 31.9 million as shown in Table 3.10. By 1998, the total area of 611,642 hectares was priced at P 75.9 million. The increase in value by P 44.0 million after 10 years is due to the rapid growth rate of the value of land. Table 3.10. Monetary Estimate of Land Resources Devoted to Forest Uses, Mainland

Palawan, 1988-1998 (in thousand pesos) Items 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

OPENING STOCK 1/ 29,477.11 31,898.97 35,064.85 39,253.02 45,967.44 49,820.48 53,328.97 57,845.29 62,206.78 67,058.75 70,071.54

OTHER ACCUMULATION

a. Deforestation

Kaingin 2/ (-) - - - (0.97) (4.80) (8.90) (1.02) (9.28) (10.19) (25.86) (26.06)

b. Reforestation 3/ (+) 1.02 35.68 56.53 61.35 46.85 121.64 23.87 245.24 0.38 9.34 18.99

c. Forest area converted to non- forest uses

Mangrove conversion 4/(-) - - - - - - - (0.30) (0.43) (0.51) (0.60)

Other forest conversions 5/(-) (19.92) (118.58) (80.43) (106.78) (47.72) (102.31) (279.62) (125.20) (181.69) (111.53) -

d. Damage due to logging 6/ (30.71) (60.16) (54.23) (56.57) (20.87) - - - - - -


a. Forest Fire 7/(-) - - - 0.97 0.71 0.63 - 1.60 7.05 3.99 1,173.41

ADJUSTMENT 8/ (130.61) (55.04) (143.64) (157.70) (255.64) (312.35) (70.04) (463.51) (193.97) (271.31) (1,594.55) - - - - - - - - - - -

CLOSING STOCK 31,898.97 35,064.85 39,253.02 45,967.44 49,820.48 53,328.97 57,845.29 62,206.78 67,058.75 70,071.54 75,899.50

1/ Opening stock was calculated on assessment value of timberlands of the previous year. 2/ Items in other accumulation were valued based on the average mean zonal value of opening and closing stocks. 3/ Revaluation was computed using the formula CS - (OS-OAa-OAb-OAc1+OAc2-OAd-OVCa) 4/ Closing Stock was calculated based on the assessment value of the current year.



b. Lands Devoted to Agricultural Use

47. There was also a significant increase in terms of monetary value for lands devoted to agricultural use. In 1988, the value of 172,945 hectares of agricultural lands was estimated at P 1.7 billion which increased to P 5.3 billion in 1998 with an area of 217,697 hectares (Table 3.11). It is noted that in terms of physical area of agricultural land, there was a 26 percent increase over the ten-year accounting period while in monetary terms, this type of land use more than tripled in value. Table 3.11. Monetary Estimate of Land Resources Devoted to Agricultural Uses,

Palawan, 1988-1998, in thousand pesos Items 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

OPENING STOCK 1/ 1,515,833 1,688,046 1,909,505 2,199,698 2,650,827 2,956,515 3,256,691 3,635,152 4,022,847 4,462,645 4,798,658

OTHER ACCUMULATION 2/

a. Kaingin (+) - - - 186 951 1,762 201 1,838 2,018 5,120 5,160

b. Land use Conversion:

1. Agri to other uses (-) - (793) (2,847) (205) (1,289) (280) (198) (1,594) (1,554) (424) -

2. Mangrove to Fishpond (+) - - - - - - - 59 86 102 118

3. Forest lands converted to

Other uses (agri) (+) 3,943 23,479 15,925 21,143 9,449 20,258 55,364 24,790 35,975 22,082 -

REVALUATION 3/ 1,684 1,887 2,187 2,630 2,947 3,235 3,580 3,998 4,426 4,772 5,344

CLOSING STOCK 4/ 1,688,046 1,909,505 2,199,698 2,650,827 2,956,515 3,256,691 3,635,152 4,022,847 4,462,645 4,798,658 5,348,822

Pesos Per Square Meter 0.89 1.00 1.14 1.39 1.53 1.65 1.82 1.98 2.15 2.26 2.46

1/ Opening stock was calculated based on mean zonal values of agricultural lands of the previous year. 2/ Items in other accumulation was valued based on the average mean zonal value of opening and closing stocks. 3/ Revaluation was computed using the formula CS-(OS+OAa-OAb1+OAb2+OAb3) 4/ Closing stock was calculated based on the mean zonal value of agricultural lands of the current year.

c. Lands Devoted to Built-up Use

48. In 1988, the closing stock for built-up areas was 7,061 hectares and was valued at P 6.0 billion (Tables 3.12). It rose to 41,857 hectares by 1998 with an approximate value of P 90.1 billion. The increasing conversion of forest and agricultural areas into built-up areas and the corresponding upward trend in prices and total value may be attributed to the fast development especially in tourism as well as the increase in population.

Table 3.12. Monetary Estimate of Land Resources Devoted to Built-up Uses, Palawan, 1988-1998 (in thousand pesos)

Item 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

OPENING STOCKS 1/ 5,301,349 6,674,410 8,678,364 11,974,385 17,202,457 28,295,944 31,505,633 35,316,252 46,043,775 57,605,663 75,041,960

OTHER ACCUMULATION

1. Agriculture to built-up use (+) 2/

- 69,477 249,434 17,921 112,962 24,555 17,322 139,634 136,144 37,149 -

2. Reclamation (+) - - 1,064 - - - - - - - -

ADJUSTMENT 3/ 736 965 1,239 3,791 8,970 562 1,133 7,016 8,639 11,248 15,054

CLOSING STOCKS 6,037,690 7,708,858 10,167,852 15,782,878 26,285,857 28,882,624 32,655,638 42,472,365 54,819,141 68,890,636 90,096,174

1/ Opening stock was calculated based on average zonal values of residential, commercial, industrial and institutional lands of the previous year

2/ Items in Other accumulation was valued based on the average zonal value of opening and closing stocks 3/ Revaluation was computed using the formula CS-(OS+OA1+OA2) 4/ Closing Stock was calculated based on the average zonal value of residential, commercial, industrial and institutional lands of the

current year



Soil Resource

a. Lands Devoted to Forest Use

49. Degradation of forest areas arising from sedimentation, particularly in terms of nutrient losses and the cost of replenishing the lost nutrient was valued at P 22.3 million in 1988 and increased to P 40.3 million in 1998 (Table 3.13). The increase in value is primarily attributed to the increase in fertilizer prices (Appendix Table 3.15) as well as the cost of applying fertilizer.

Table 3.13. Monetary Estimate (Degradation) of Soil Resources for Lands Devoted to

Forest Uses, Mainland Palawan, 1988-1998 Changes In Quality 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

20,927,699 22,003,965 27,217,525 36,264,646 30,789,548 26,664,308 36,843,324 37,736,849 34,225,050 37,161,679

Nitrogen (45-0-0) 18,149,766 23,825,515 31,400,906 26,413,793 22,617,578 25,065,034 32,703,675 30,287,082 31,868,826

Phosphorous (0-20-0) 303,576 318,510 527,766 446,071 381,471 585,995 590,728 604,909 708,080

Potassium (0-0-60) 2,474,357 2,644,626 2,992,941

COST OF NUTRIENT LOSS 1/

29,117,469

19,040,829 33,323,843

399,068 617,177 4,335,974 3,929,684 3,665,259 3,466,439 3,548,922 3,808,096 3,320,791 4,584,773

COST OF FERTILIZER APPLICATION 2/

1,409,039 1,660,511 1,930,308 2,204,364 2,260,744 2,248,044 2,677,840 3,588,986 2,924,132 3,022,181 3,141,803

Nitrogen (45-0-0) 1,198,735 1,412,673 1,642,203 1,875,355 1,923,320 1,912,515 2,278,162 3,053,316 2,487,695 2,571,109 2,672,877

Phosphorous (0-20-0) 25,237 29,740 34,573 39,481 40,491 40,263 47,961 64,280 52,373 54,129 56,271

Potassium (0-0-60) 185,068 218,097 253,533 289,528 296,934 295,265 351,716 471,389 384,065 396,943 412,655

TOTAL COST 22,336,738 23,664,475 29,147,833 38,469,010 33,050,292 28,912,351 31,795,308 40,432,310 40,660,981 37,247,231 40,303,481

1/ Values were calculated based on the retail prices of fertilizers from FPA. 2/ Calculated values were based on the nominal terms of daily agricultural wage rate from BAS. Palawan Research Outreach

Center calculated that four to five bags of fertilizer could be applied per man-day. For this study 4.5 bags per man-day was used.

b. Lands Devoted to Agricultural Use

50. The value of eroded soil in lands used for agricultural purposes was also valued in terms of average amount of nutrient loss including the cost incurred in applying the fertilizer to replace the nutrient loss (Table 3.14). Degradation was valued at P 88.8 million in 1988 and increased to P 213.5 million ten years hence.

Table 3.14. Monetary Estimate (Degradation) of Soil Resources for Lands Devoted to

Agricultural Uses, Palawan, 1988-1998(in thousand pesos) Changes In Quality 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

COST OF NUTRIENT LOSS 1/

83,227.49 90,050.77 114,624.19 157,163.71 137,313.52 122,371.84 137,513.69 179,057.41 188,729.72 176,140.78 196,812.34

Nitrogen (45-0-0) 72,179.91 77,924.20 100,339.04 136,085.24 117,798.77 103,799.98 118,375.17 158,938.84 166,659.37 155,873.85 168,780.81

Phosphorous (0-20-0) 1,207.29 1,303.50 1,680.64 2,287.23 1,989.36 1,750.70 2,767.49 2,870.92 3,025.27 3,176.33 3,750.07

Potassium (0-0-60) 9,840.28 10,823.08 12,604.51 18,791.24 17,525.39 16,821.16 16,371.03 17,247.65 19,045.07 17,090.60 24,281.46

COST OF FERTILIZER APPLICATION 2/

5,603.62 6,795.61 8,129.32 9,553.27 10,082.34 10,317.06 12,646.69 17,442.36 14,624.18 15,553.79 16,639.33

Nitrogen (45-0-0) 4,767.26 5,781.34 6,915.99 8,127.41 8,577.52 8,777.20 10,759.13 14,839.02 12,441.47 13,232.33 14,155.85

Phosphorous (0-20-0) 100.36 121.71 145.60 171.10 180.58 184.78 226.51 312.40 261.93 278.58 298.02

Potassium (0-0-60) 736.00 892.56 1,067.73 1,254.76 1,324.25 1,355.08 1,661.06 2,290.94 1,920.79 2,042.89 2,185.46

TOTAL COST 88,831.11 96,846.38 122,753.51 166,716.98 147,395.86 132,688.89 150,160.38 196,499.77 203,353.90 191,694.57 213,451.67

1/ Values were calculated based on the retail prices of fertilizers from FPA. 2/ Calculated values were based on the nominal terms of the daily agricultural wage rate (BAS wage rate). Four to five bags

of fertilizers can be applied per man-day. For this study, it is assumed four and a half (4.5) bags. Palawan Outreach Research Center. Department of Agriculture



3.4.3. Summary of the Land Resource

Physical Asset Accounts 51. In general, the area of lands devoted to forest use is declining, while agricultural and built-up areas are increasing. The increasing population in the province and the concomitant demand for agricultural land for food production as well as infrastructure development has lead to the expansion of agricultural and built-up areas. Moreover, it has been observed that there are many illegal activities going on in the forest such as cutting of trees without permit and kaingin farming which ultimately become the cause of forest conversion to other uses.

Table 3.15. Summary Table of Physical Asset Account of Land Use By Year

Land Use 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

Forest 647,090 643,455 639,840 636,245 632,671 629,117 625,582 622,068 618,573 615,098 611,642

Agriculture 172,945 176,971 181,091 185,306 189,620 194,035 198,552 203,174 207,904 212,744 217,697

Built-up 7,061 8,155 9,555 12,594 19,244 19,643 20,360 24,486 29,152 34,863 41,857

Others 1/ 662,534 661,049 659,144 655,485 648,095 646,835 645,136 639,902 634,001 626,925 618,434

Total Area 2/ 1,489,630 1,489,630 1,489,630 1,489,630 1,489,630 1,489,630 1,489,630 1,489,630 1,489,630 1,489,630 1,489,630

1/ Land uses under the category others include forest areas from island municipalities, reproduction brush, grass land, rocky land, water bodies and shallow coast

2/ Philippines 1980, Special Report No. 3 - Population, Land Area and Density: 1970, 1975, and 1980. NCSO, Manila

52. As shown in Figure 3.3, forest areas represented 43 percent of the total land area in 1988 but declined to 41 percent in 1998. On the other hand, agriculture and built-up areas recorded 12 percent and 0.5 percent respectively, of the total area in 1988, which increased to 15 percent for agricultural areas and 3 percent for built-up areas in 1998. Figure 3.3. Summary of Physical Asset Accounts for Forest, Agriculture, Built-up and

Other Land Uses, 1988 and 1998

Forest

43.44%

11.61%0.47%

44.48% 41.06%

14.61%2.81%

41.52%

1988

AgricultureBuilt-up Others

1998

Monetary Asset Accounts

53. For the monetary asset accounts, forest area was valued at P 31.9 million only in 1988 but it increased to P 75.9 million despite the decrease in area (Table 3.16). Likewise, agricultural area valued at P 1.7 billion in 1988 rose to P 5.3 billion in 1998. The same situation was observed in built-up areas: the value increased from P 6.0 billion in 1988 to P 90.1 billion in 1998.



Table 3.16. Monetary Asset Accounts of Land use by Year, (in thousand pesos)

LAND USE

1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

Forest 31,899 35,065 39,253 45,967 49,820 53,329 57,845 62,207 67,059 70,072 75,900

Agriculture 1,688,046 1,909,505 2,199,698 2,650,827 2,956,515 3,256,691 3,635,152 4,022,847 4,462,645 4,798,658 5,348,822

Built-up 6,037,690 7,708,858 10,167,852 15,782,878 26,285,857 28,882,624 32,655,638 42,472,365 54,819,141 68,890,636 90,096,174

Total 7,757,635 9,653,428 12,406,803 18,479,672 29,292,192 32,192,644 36,348,635 46,557,419 59,348,845 73,759,366 95,520,896

Figure 3.4. Comparison of Monetary Value of Forest, Agriculture and Built-up Use

-500

1 ,0001 ,5002 ,0002 ,5003 ,0003 ,5004 ,0004 ,5005 ,0005 ,5006 ,000

in m

illion

pes

os

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

F O R E S T A G R IC U L T U R E B U IL T -U P

3.5 RECOMMENDATIONS 54. The study revealed that forest lands were decreasing and were being converted to agriculture and built-up areas. This trend is an inevitable outcome of economic development and in response to the demand of a very high population growth. Thus, Palawan’s land use is slowly altering. While the change from forest to agricultural and built-up uses may bring about an increase in the monetary value of the land, it is imperative for policy makers and local leaders to look into the implications of such a change not only on the economic point of view but more importantly, on the environmental aspect.

55. Based on the study forest lands were valued very minimally compared to other land uses, as such, a review of the monetary valuation methodology may be necessary to arrive at a more relevant basis for policy formulation. Additionally, the following are recommended to improve the system:

a. The land use data base which has to be updated considering that the

currently available data sets were used in this study were gathered through two different methodologies, that is, by aerial photography and land satellite imagery interpretation. The necessity of updating the accounts utilizing data generated by comparable procedures is emphasized in order to come up with accurate estimates.



b. Regular monitoring and collection of statistical data required by the accounting system should be strengthened. This involve linkages with data generating agencies, both with local offices of national agencies tasked with compiling the needed data as part of their regulatory functions and in exercise of their mandates, and the local government units. Among these national agencies and local government offices are DAR, NSO, BAS, DENR, as well as the planning and development offices, Assessors’ Office and ENROs which are the major data sources for the land/soil accounts.

c. A soil erosion study covering other areas of Palawan should be conducted since the current estimates on soil degradation were based only on the study on the Tamlang catchment.

d. Due to the large area of the province, land conversion may not be sufficiently documented. In the updating of the accounts, the local government units should play a very important responsibility in monitoring changes in land use in line with the implementation of their respective Comprehensive Land Use Plans (CLUP). Meanwhile, the zoning of Palawan on the basis of Republic Act 7611 should be established to provide the framework for development.



ACRONYMS

AAGR Average Annual Growth Rate

BAS Bureau of Agricultural Statistics

BLES Bureau of Labor and Employment Statistics

BIR Bureau of Internal Revenue

CA Census of Agriculture

CLS Census of Labor Statistics

DAR Department of Agrarian Reform

DENR Department of Environment and Natural Resources

PENRO Provincial Environment and Natural Resources Office

CENRO Community Environment and Natural Resources Office

ECAN Environmentally Critical Areas Network

ENRA II Environmental and Natural Resources Accounting II

FPA Fertilizer and Pesticides Authority

ISF Integrated Social Forestry

IPIN Implicit Price Index

JAFTA Japan Forest Technical Assistance

LGU Local Government Unit

MPDO Municipal Planning Development Office

NAMRIA National Mapping and Resources Information Authority

NSO National Statistics Office


OCPD Office of the City Planning and Development

PTFPP Palawan Tropical Forestry Protected Program

SEEA System of Integrated Economic and Environmental

Accounting

TWG Technical Working Group



DEFINITION OF TERMS

Agroforestry The suitable management of land to increase overall production, which combines agricultural crops with tree crops and forest plants and/or animals simultaneously or sequentially and applies management practices which are compatible with the cultural patterns of the local population.

Commercial Land Land devoted principally for the object of profit and is not classified as agricultural, industrial, mineral, timber, or residential.

Forest Area of one hectare or more which is at least 10 percent stocked with forest trees (including seedlings and saplings), wild palm, bamboo or brush. Narrow strips of land bearing forest trees must be at least 60 meters wide and one hectare in size to qualify as forest. Industrial tree plantation and tree farms one hectare or more in size are also included.

Dipterocarp Forest Forest stand dominated by trees of dipterocarp species such as red and white lauan, tanguile, tiaong, almon, bagtikan and mayapis of the Philippine mahogany group, apitongs, and yakals.

Dipterocarp, Old Growth Forest

Tropical rain forest dominated by Dipterocarpaceae without traces of commercial logging.

Dipterocarp, Residual Forest Tropical rain forest dominated by Dipterocarpaceae with traces of commercial logging; also referred to as secondary growth forest.

Forest Land Land eighteen percent in slope or over. Includes the public forest, the permanent forest or forest reserves and forest reservations.

Forest Land devoted to forest uses

Land wherein the primary use is forestry, which includes activities related to the management of forest production

Mangrove Forest The type of forest occurring on tidal flats along the sea coast extending along the streams where the water is brackish and composed mainly of bakauan, pototan, langarai, api-api, nipa palm and the like.



Mossy Forest Tropical rain forest of the high elevation dominated by Podocarpaceae, Myrtaceae, Fagaceae with trees of medium height and short boled, covered epiphytes.

Forest Tropical Rain forests dominated by Leguminoseae and lesser-utilized species, mainly restricted to shallow and excessively drained limestone soils.

Government Land Land used or intended for government use which may include agricultural, commercial, industrial and other types of land devoted to roads, cemetery, plaza, barangay sites and school areas and institutions.

Industrial Land Land devoted principally to industrial activity.

Kaingin A portion of forest lands, whether occupied or not which is subjected to shifting and /or permanent slash and burn cultivation having little or no provision to prevent soil erosion (P.D.705).

Reforestation The act of planting trees on bare or open land which is used to be covered with forest growth.

Religious Land Land principally, directly or indirectly devoted for religious purposes

Residential Land Land principally devoted to habitation.

Special Classes Lands or structures devoted to hospitals, cultural or scientific purposes and those owned and used by local water districts, and essential public services in the supply and distribution of water and/or generation and transmission of electric power.

Timberland Refers to land of the public domain, which has been the subject of the present system of land classification determined to be needed for forest purposes. Eventually, this land will be proclaimed as forest reserve by the president.



APPENDICES


Appendix Table 3.1. Physical Area of Forest Lands by Type of Forest, Mainland Palawan, in Hectares 1985-1998

Type Of Forest 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

1. Productive Dipterocarp 548,119 551,215 553,555 555,266 556,460 557,240 557,689 557,882 557,877 557,720 557,448 557,088 556,657 556,168 Old Growth 379,747 367,407 353,824 339,208 323,769 307,708 291,219 274,487 257,684 240,970 224,489 208,370 192,725 177,649 Residual 168,372 183,808 199,732 216,057 232,691 249,531 266,470 283,395 300,193 316,750 332,959 348,718 363,932 378,5182. Mossy 32,286 32,287 32,139 31,848 31,421 30,866 30,195 29,417 28,545 27,591 26,568 25,490 24,369 23,2183. Marginal 42,627 35,405 29,271 24,090 19,740 16,105 13,085 10,588 8,533 6,850 5,479 4,366 3,466 2,7434. Mangrove 35,088 35,515 35,781 35,886 35,834 35,629 35,276 34,784 34,162 33,421 32,572 31,629 30,605 29,513

TOTAL 658,120 654,423 650,746 647,090 643,455 639,840 636,245 632,671 629,117 625,582 622,068 618,573 615,098 611,642

Source: 1985 Aerial Photographs and 1992 Satellite Imagery Note: The 1986-1991 and 1993-1998 values are projections using the average annual growth rate (geometric) formula and percentage value based on the 1985 aerial photographs and 1992 satellite imageries.



Appendix Table 3.2. Forest Destruction by Forest Fire and Kaingin, Mainland Palawan,

in Hectares, 1991-1998 Forest Data Source 1991 1992 1993 1994 1995 1996 1997 1998

1. Forest Fire Palawan 13.4 9.3 7.4 1/ 16 1/ 65 1/ 35 1/ 9,455.7

Brooke's Point 4 1/ Narra 8.3 2/ Quezon 9,450 2/ Taytay 13.4 2/ 1 2/ 7.4 2/ 1.5 1/

2. Kaingin PALAWAN 13 61 105 11 93 94 227 210 Quezon 2 14 187 204 Narra 30 24 4 4 Taytay 13 1 20 2 1/ 4 1/ 2 1/ 1 2/ Puerto Princesa City

2/ 1/ 7 1/ 15 1/ Coron 1/ 1/ 1/ 3 / 11 1/ 2 1/ 1/ Roxas 37 11 30 40 1/ 1/ Brooke's Point 1/ 1/ 52 1/ 10 1/ 13 Espanola 30 1/ 24 1/ 4 1/ 4 1/ 4 1/ 5 1/

Sources: 1/ PENRO and CENRO's Monthly Accomplishment and Annual Reports.

2/ CENRO Districts Appendix Table 3.3. Conversion of Forest Lands to Other Uses, Mainland Palawan, in

Hectares, 1988-1997

Item Data Source 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997

Palawan 105.0 45.0 1,942.0 21.0 - 1.0

Taytay 17.0 1/ 1.0 1/

Roxas 20.0 1/ 32.0 1/ Narra 12.0 1/ 13.0 1/ 21.0 1/ P. Princesa 22.0 1/ Quezon 13.0 1/ Brooke's P. 21.0 1/

1. Agro-Forestry

Palawan 352.9 2124.8 1,283.0 1257.1 500.6 1,162.0 1081.9 926.7 1507.2 750.5

Roxas 170.0 1/ 181.0 2/ 171.0 1/ 360.0 1/ 201.0 1/ 201.0 1// Brooke's P. 112.0 2/ 474.1 2/ 251.1 2/ 200.6 2/ 240.2 2/ 158.1 2/ 119.1 2// 241.8 2/

Narra 172.0 1/ 115.0 1/ 169.0 1/ Taytay 80.2 2/ 487.0 2/ 309.8 2/ 138.0 2/ 6.0 2/ 432.9 2/ 655.0 2/ 150.6 2/ 591.1 2// 384.8 2/

P. Princcesa 387.0 1/ 123.0 1/ 92.0 1/ 209.0 1/ 260.0 1/

2. Integrated Social Forestry (ISF)

Quezon 272.7 2/ 1,525.8 2/ 320.0 1/ 128.0 1/ 162.2 2/ 177.8 2/ 199.0 1/ 167.0 1/ 123.9 2/

TOTAL 404 2,176 1,311 1,478 606 1,207 3,024 1,252 1,676 979 Sources: 1/ PENRO/CENROs Monthly Accomplishment Reports and Annual Report, 1990-1997. 2/ CENRO Districts



Appendix Table 3.4. Areas of Reforestation by Municipality, Mainland Palawan, in Hectares, 1987-1998

Municipality 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 Puerto Princesa City

Forest 98 1/ 9.5 1/ 57 2/ 138 2/ 600 2/ 10 2/ 90 2/ 0.5 1/

Mangrove 142 2/ 141 2/ 1,157 2/ Brooke's Point Forest 7 3/ 9 3/ 334 3/ 334 3/ 67 3/ 15 2/ 24 2/ 12.5 3/ 1 3/ 5 3/

Mangrove 90 3/ 120 3/ 40 2/ 240 2/ 200 3/ Roxas Forest 51.4 1/ 258.9 1/ 21.1 1/ 100 2/ 155 2/ 50 2/ 340 2/ 0.6 1/

Mangrove 110 2/ Quezon Forest 5 1/ 5 1/ 63 2/ 15 3/ 10 2/ 0.5 3/ 0.4 3/ 52 3/ 153 3/

Mangrove 25 2/ 100 3/ Taytay Forest 5.1 2/ 39.7 1/ 1.1 1/ 110 2/ 15 3/ Mangrove 80 3/ 544 3/ 166 3/ 80 2/ 511 3/ Narra Forest 6.5 2/ 100 3/ 83 3/ 18 3/ 63 3/ 49 2/ 42.1 2/ 26.4 1/ 1 1/ 25 3/

Mangrove 25 3/ 30 3/ 30 2/ 12 2/

Forest 7 20.6 539.7 691.5 163.1 364 834 246.1 484.4 3.5 82 153 Mangrove - - 115.0 230.0 686.0 231 601 12.0 1,968 - - -

TOTAL 7 20.6 654.7 921.5 849.1 595 1,435 258.1 2,452.4 3.5 82 153 Sources: 1/ PTFPP- Province Wide Plantation Survey 2/ PENRO -CENRO Annual Report 3/ CENRO districts

Appendix Table 3.5. Logged Area, Palawan, in Hectares, 1988 - 1992.

Item 1988 1989 1990 1991 1992 A. Forestry Production

(in cu. m.) 112,207 198,999 159,369 140,947 47,771

1. Log 103,366 189,029 152,529 134,725 41,1752. Lumber 8,841 9,970 6,840 6,222 6,596

B. Area Logged, in ha.* 623 1,104 884 783 265

1. Log 574 1,049 846 748 2282. Lumber 49 55 38 35 37

Source: Forest Management Bureau, DENR. Philippine Forestry Statistics Note: * Logged area = Volume of log/180 cu m per ha.

Appendix Table 3.6: Land Values, Palawan, in Peso per Square Meter, 1986-1998

LAND USE 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

Agriculture 1/ 0.77 0.81 0.89 1.00 1.14 1.39 1.53 1.65 1.98 2.15 2.26 2.46Residential 1/ 44.36 47.07 51.62 57.71 66.01 80.27 88.21 95.51 105.05 114.37 123.99 130.29 141.92Commercial 1/ 158.18 167.84 184.09 205.80 235.40 286.26 314.55 340.60 374.62 407.85 442.15 464.62 506.11Industrial 1/ 39.21 41.60 45.63 51.01 58.35 70.95 77.97 84.42 92.85 101.09 109.59 115.16 125.44Timberland 2/ 0.00 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01

Implicit Price Index 98.87 104.56 113.79 125.79 141.61 166.77 181.77 195.67 213.44 230.83 250.24 262.96 286.44 for Real Estate 3/ Growth rate 5.76% 8.83% 10.55% 12.58% 17.77% 8.99% 7.65% 9.08% 8.15% 8.41% 5.08% 8.93%

1.82

Sources: 1/ BIR, Asset Valuation Division 2/ Land Value of Timberland derived from the 1989 Annual Report of Real Properties, City Assessor's Office. 3/ National Accounts of the Philippines 1987-1995 (Link series) and NA Publication for CY 1996-1998, NSCB.



Appendix Table 3.7. Erosion Hazard Assessment, Tamlang Catchment, 1985

SCOPE CLASS LAND USE/ EROSION FACTOR DELIVERY SYMBOL PERCENT VEGETATION TON / HA / YEAR RATIO %

Lower Catchment 0 - 8 N.A. 0 0

Middle Catchment 9 - 18 Cleared/Cropped 25 75

Brush/Grassland 8 75 19 - 30 Cropped 70 75 Brush/Grassland 15 75 Forested 5 50 31 - 50 Cropped 150 75 Brush/Grassland 30 75 Forested 5 50

Upper Catchment 9 - 18 Forested 5 50 19 - 30 Forested 5 50 31 - 50 Forested 5 50 50 up Landslips 250 10 Forested 5 50

Source: Tamlang Catchment Study, Final Report, July 1985 Appendix Table 3.8. Slope Distribution by Class Interval, Palawan, in Hectares, 1985

SLOPE CLASS

INTERVAL DESCRIPTION AREA PERCENT

0-3 Level to nearly level 324,261 23% 3-8 Nearly sloping to gently sloping 77,998 5% 8-18 Gently sloping to undulating 133,670 9%

18-30 Undulating to rolling 184,803 13% 30-50 Rolling to moderately steep slope hill 345,409 24%

and mountain 50 up Very steep hill and mountain 371,093 26%

TOTAL 1,437,234 100% Source: Tamlang Catchment Study, Final Report, July 1985

Appendix Table 3.9. Retail Price of Fertilizers, Philippines, 1988 –1998

Fertilizer Retail Price per Bag of Fertilizer (Pesos)

1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

Urea 196.83 207.66 261.31 346.34 292.98 252.29 281.17 368.93 378.05 345.54 365.64 Solophos 156.38 165.00 207.90 276.50 235.02 202.12 312.24 316.54 325.97 334.46 385.89 Muriate of Potash

173.81 186.82 212.62 309.77 282.33 264.82 251.87 259.32 279.83 245.40 340.72

Growth Rate (%)

Urea 0.06 0.26 0.33 -0.15 -0.14 0.11 0.31 0.02 -0.09 0.06 Solophos 0.05 0.21 0.25 -0.18 0.16 0.35 0.01 0.03 0.03 0.13 Muriate of Potash

0.07 0.14 0.46 -0.09 -0.06 -0.05 0.03 0.08 -0.12 0.39

Source: Fertilizer and Pesticides Authority Notes: The retail prices of inorganic fertilizers are yearly average.

Figures may not tally due to rounding. Prices of Muriate of Potash for year 1988 and 1990-1993 were computed using the growth rate in the price of urea. Prices of Solophos for year 1994-1998 were computed based on the price of the Ammonium Phosphate.



Appendix Table 3.10. Daily Wage Rate for Agricultural Plantation, Philippines, 1986-1997

Year Nominal Terms (In Pesos)

1986 46.67 1987 48.04 1988 58.50 1989 69.33 1990 81.05 1991 93.08 1992 96.00 1993 96.00 1994 115.00 1995 115.00 1996 127.00 1997 132.00 1998 138.00

Source: National Wages Council

Appendix Table 3.11. Physical Area of Agricultural Lands by Type of Farm, Palawan, in Thousand Hectares, 1980 and 1988-1998

Type of Farm 1980 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

Permanent Crop 64,167 57,748 56,631 55,471 54,278 53,063 51,839 50,616 49,407 48,226 47,085 45,996

Cashew 12,646 15,558 15,737 15,865 15,939 15,958 15,922 15,830 15,685 15,486 15,238 14,941 Citrus 303 312 308 304 299 292 285 277 269 260 250 239 Mango 575 2,036 2,351 2,705 3,102 3,545 4,036 4,581 5,180 5,838 6,556 7,337 Banana 4,297 4,709 4,694 4,664 4,619 4,558 4,482 4,392 4,289 4,174 4,048 3,912 Coconut 41,299 29,877 28,280 26,678 25,082 23,499 21,940 20,413 18,927 17,487 16,101 14,774 Coffee 1,340 574 509 449 396 347 304 265 230 199 171 147 Others 3,708 4,681 4,751 4,805 4,843 4,864 4,869 4,857 4,828 4,782 4,721 4,644

Temporary Crops 68,680 84,105 85,452 86,603 87,543 88,259 88,737 88,972 88,956 88,690 88,174 87,414 Palay 51,833 63,113 63,756 64,189 64,404 64,398 64,169 63,718 63,050 62,172 61,094 59,828 Corn 9,838 17,115 18,078 19,030 19,965 20,874 21,748 22,580 23,362 24,088 24,749 25,342 Vegetables 1,823 721 633 554 483 420 363 314 270 231 197 168 Rootcrops 4,708 2,277 2,050 1,839 1,644 1,465 1,300 1,151 1,014 891 780 681 Others 478 879 935 991 1,047 1,102 1,156 1,209 1,260 1,308 1,353 1,395

Pastured Land 11,017 31,092 34,888 39,017 43,485 48,298 53,459 58,964 64,810 70,988 77,485 84,287

Total 143,864 172,945 176,971 181,091 185,306 189,620 194,035 198,552 203,174 207,904 212,744 217,697

1/ Census of Agriculture, 1980 and 1991, National Statistics Office 2/ Census of Agriculture, 1980 and 1991, National Statistics Office Notes: The 1981 - 1990 and 1992 - 1998 values are projections using the average annual growth rate (geometric) formula and percentage value per crop based on the 1980 and 1991 Census of Agriculture.

Area planted in permanent crops = compact planting+scattered planting Appendix Table 3.12. Kaingin Areas, Palawan, in Hectares, 1991 – 1998

Data Source 1991 1992 1993 1994 1995 1996 1997 1998

PALAWAN 13 61 105 11 93 94 227 210

Quezon 2 14 187 204 Narra 30 24 4 4 Taytay 13 1 20 2 4 2 1 Puerto Princesa City 7 15 Coron 3 11 2

37 30 Brooke's Point 52 10 13

30 24 4 5

Roxas 11 40

Espanola 4 4

Source: PENRO and CENRO's Monthly Accomplishment and Annual Report. Data in iitalics came from CENRO districts



Appendix Table 3.13. Land Conversion from Agricultural to Other Uses by Municipality, Palawan, in Hectares, 1989 – 1998

Municipality 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

1. Brooke's Point 8

2. Cuyo 83 3. Puerto Princesa 73.5 151.4 14.3 82.7 8.7 7.8 80.5 72.4 18.8

4. Taytay 3

Total 73.5 234.4 14.3 82.7 16.7 10.8 80.5 72.4 18.8 0

Sources: Department of Agrarian Reform and Office of the City Planning and Development Coordinator. Appendix Table 3.14. Mangrove Area Converted to Fishpond, Palawan, In Hectares,

1995 – 1998 Year Area 1995 3.0 1996 4.0 1997 4.5 1998 4.8

Sources: S. Espanola Municipal Planning Office

Appendix Table 3.15. Physical Area of Built-up, Palawan, in Hectares, 1988-1998 Land Use 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

Residential 1,937 2,580 3,384 3,666 4,901 4,748 5,023 6,061 7,153 8,141 8,764

Commercial 53 86 307 4,635 137 215 246 446 1,000 2,192 9,269

Industrial 18 57 174 2,495 7,696 7,706 7,707 9,164 10,658 11,954 12,681

Government* 2,554 2,807 3,085 3,313 3,570 3,862 4,195 4,946 5,435 5,974 6,565

Hospital 16 20 23 25 22 22 22 24 26 27 27

Educational 463 566 681 802 725 788 717 929 1,177 1,437 1,661

Religious 32 51 81 87 92 217 697 256 367 515 892

Total 7,061 8,155 9,555 12,594 19,244 19,643 24,486 29,152 34,863 41,857 20,360

*Result of data processing from selected municipalities Sources:

Assessor's Annual Report on the Assessment of Real Property, Provincial Assessor's Office Assessor's Annual Report on the Assessment of Real Property, City Assessor's Office

Note: The 1988-1989 and 1995-1997 values are projections using the average annual growth rate (geometric) formula per type of land use based on the Assessor's Annual Report for years 1990, 1994 and1998. Appendix Table 3.16. Estimated Zonal Values of Lands by Type of Land Use,

Palawan, 1995 Total Zonal Value Average Zonal Value Classification (ZV/sq.m) No. of lots

Residential 70,454.00 616 114.37Commercial 119,500.00 293 407.85Agricultural 4,654.85 2,350 1.98General Purpose 4,500.00 106 42.45Industrial 5,560.00 55 101.09Institutional 2,550.00 27 94.44

(ZV/sq.m)

Source: BIR, Palawan



REFERENCES Bureau of Soils. 1980. Geology of the Palawan Island. Manila. Forest Management Bureau, Department of Environment and Natural

Resources. 1993. Philippine Forestry Statistics. Manila, Philippines. Hunting Technical Services Limited. 1985, Tamlang Catchment Study. England. Japan Forest Technical Association, 1993, Forest Register (PALAWAN),

Information System Development Project for the Management of Tropical Forest.

National Statistical Coordination Board. 1998, Philippine Asset Accounts:

Forestry, Land/Soil, Fishery, Mineral and Water Resources. Environment and Natural Resources Accounting. Philippines.

National Statistics Office. 1996. Provincial Profile: Palawan. Manila, Philippines National Statistics Office. Census of Agriculture, 1991 & 1980, Manila, Philippines National Statistics Office. 1980. Land Area and Density, 1970,1975, 1980. Manila,

Philippines Provincial Information Office, 1995. Discover Palawan. Province of Palawan Sibal, Jose Agaton. 1996. Local Government Code (As Amended), Second Edition.

Published by Central Professional Books, Inc. Quezon City. Philippines.


Palawan Mineral Resource


MINERAL RESOURCE 4.1 INTRODUCTION 1. Naturally occurring inorganic elements and compounds, having orderly internal structure and characteristics, chemical composition, crystal form and properties are known as minerals (NSCB, 1985). Palawan is composed of 14 geological units out of which seven are sedimentary, four are igneous and three are metamorphic (Bureau of Soils, 1980). Such geological properties demonstrate internal characteristics and earth’s history. It likewise indicate mineral deposits that are either economically exploitable or not. Palawan’s important mineral resources are derived from known ore and other equally important non-metallic mineral deposits.

2. Metallic minerals mapped in the province are nickel, chromite, copper, mercury, antimony, lead, gold, manganese, radioactive mineral uranium, pyrite and iron. In 1996, remaining mercury deposits were placed at 16 million metric tons. Meanwhile, the major non-metallic reserves are limestone, silica, pebbles, marbles, gravel, sand, and coal. Records of mineral deposits (NSO, 1985) in Palawan are shown in Table 4.1. Among the metallic mineral deposits, mercury, manganese, chromite, copper, and nickel were put into commercial production. In 1994, the Mines and Geosciences Bureau (MGB) estimated the reserve of chromite in metallurgical form amounted to 6.58 million metric tons, of which 24,000 metric tons were classified as refractory. Estimates during the same year for copper and manganese were 80,000 metric tons and 158,390 metric tons, respectively. However, of the total metallic reserves nickel accounted for the biggest share.

3. A survey of the metallic mineral reserves of the Philippines conducted in 1979 by the University of the Philippines-Institute for Small Scale Industries (UPISSI) showed that nickel represented 32 percent of the total metallic ore reserve in Region 4. Moreover, in terms of geographic distribution, the study revealed that 94 percent of nickel reserves were situated in Region 4, specifically mapped in Palawan, Mindoro and Quezon.

4. Mining activities in the past were not very numerous as compared to other parts of the country. Slow exploitation of these minerals was attributed to insufficient geological exploration, lack of data about the nature and extent of economically exploitable deposits, scarcity of infrastructure facilities such as roads, bridges convenient harbors and electricity (Bureau of Soils, 1980). The decline in the world market price, as in the case of mercury, also contributed to the closure of mining operations. Hence, despite incentives from the government for the private sector to invest in mineral exploration (Omnibus Investment Code, Sec. 90 RA 7492), there were only two major companies which exploited metallic minerals during this period, namely, the Rio Tuba Nickel Mining Corporation and Trident Mining and Industrial Corporation. Nevertheless, the company’s nickel production in 1985 to 1997 constituted an average of 73 percent of the total annual production of the country (NSCB, 2000 and MGB, various years).

Table 4.1. Mineral Deposit in Palawan, 1981

Palawan Mineral Resource 90


Mineral Quantity/Volume Location

Antimony undetermined value Tinitian, Roxas Black sand undetermined value Langogan, Roxas Copper undetermined value San Jose, Abaroan, Roxas Iron undetermined value Maytegued, Taytay Laterite Iron 47,597,856 mt Rio Tuba, Bataraza

91,083,970 mt Ipilan, Brooke’s Point. Aborlan, Quezon Manganese undetermined value Paly Island, Taytay Marble undetermined value Del Pilar, Roxas; Taytay

307,600,000 cu m Cabayugan and Bahile, Puerto Princesa Mercury 259,200,000 mt Sabang, Puerto Princesa Nickel 80,200,000 mt Berong, Puerto Princesa

88,700,000 mt Long Point, Quezon 34,700,000 mt Morsoon, Aborlan 90,027,750 mt Rio Tuba, Bataraza 19,842,400 mt Ipilan, Brookes Point 6,149,347 mt 3,832,420 mt 2,631,168 mt Labog, Brookes Point 3,670,712 mt Calategas, Narra

Saprolite 172,981,380 mt Berong, Morsoon, LongPoint. Tagkawayan Quezon; Aborlan

Silica 500,000 mt San Vicente, Taytay, Del Pilar, Roxas Talc 6,000 mt Brooke’s Point Sand and Gravel no data

5. On the other hand, the non-metallic minerals produced commercially were silica, and sand and gravel. From 1976 to mid-1990s, the silica sand mining activity was active. The sand extracted mostly in Northern Palawan ranked first since it was found to be of good quality, having a higher percentage of silica content (Bureau of Soils, 1980; Cardenas and Pido, 1985). During the period 1990 to 1994, claims were being operated by as many as seven firms in a given year. However, the decline in the price and reserve exhaustion resulted to the closure of the companies. As such, these companies were no longer operating in Palawan during the ENRA II Project. 6. Meanwhile, sand and gravel resources are commercially quarried for local infrastructure and construction projects. With the growing economic development of the province the volume extracted from deposits along the course of rivers and tributaries continue to increase. 7. Aside from the huge capital required for a mining operation, environmental considerations are likewise influencing the decision to engage in mineral extraction. Particularly for the province, the passage in 1992 of Republic Act 7611 calling for the adoption of the Strategic Environmental Plan (SEP) for Palawan may have further deterred investors. The SEP subjected the whole province to a graded system of protection and control through the Environmentally Critical Areas Network. Palawan was then classified into different zones, from strict protection to multiple uses; likewise, allowable activities were designated and the management scheme for each



zone established. Thus, mining activities were prohibited in the core and restricted use areas. 8. Compilation of the physical asset accounts for the mineral resources and putting monetary values on the level of the reserve and its depletion or extraction rate will provide one of the bases for the formulation of policies regarding the sector. While extraction of the mineral resources will definitely contribute to the economic development of the province and the country as a whole, it should be pursued in line with Palawan’s goal of sustainable development as embodied in SEP. Through the establishment of the asset accounts, indicators on the sustainability of the mineral resources will be generated and subsequently guide stakeholders and policy makers in the best approach towards regulating the development of the mining industry.

4.2 CONCEPTUAL FRAMEWORK

4.2.1 Scope and Coverage 9. Mineral resources cover both metallic (nickel, copper, chromite, manganese and mercury) and non-metallic minerals (silica, limestone, pebbles, salt, sand and gravel) that have economic significance to the province. It also covers oil and natural gas. In this accounting exercise, however, only nickel and sand and gravel were covered. As mentioned earlier, nickel is the only metallic mineral that is currently being exploited by one mining firm. All other mining companies have ceased operation before the accounting period (1988-1998). Silica sand was being extracted during certain years of the period but data were insufficient for accounting purposes and companies that have closed could no longer be located. 10. The asset account for minerals covers proven reserve which is defined “as the estimated quantities at a specific date, which analysis of geological engineering data can demonstrate with reasonable certainty, to be recoverable in the future from known reservoirs, under the economic and operational conditions at the same date” (UNSNA, 1993). Reserves of sand and gravel were limited to 15 rivers that are considered as major sources of construction materials. Data were gathered through a special study conducted by PCSDS in collaboration with the Provincial Environment and Natural Resources (ENRO) Office under the provincial government of Palawan.

4.2.2 Framework for the Asset Account 11. The asset account of the mineral resources adopted the SEEA framework for non-renewable assets. The flow of the said asset account framework is as follows:

Figure 4.1. Asset Account Framework for Mineral Resources



Opening Stock (OS)

Less :

Extraction (Ext)

Plus/Less:

Other Accumulation (OA)

Plus/less:

Other Volume Changes (OVC)

Revaluation*:

CS-(OS - Ext +/- OA+/- OVC)

Closing Stock (CS)

*For monetary valuation only

12. The opening and closing stocks consist of the proven, both positive and probable, reserves of mineral deposits at the beginning and ending of the accounting period, respectively. Extractions are deductions from the opening stock referred to as the total volume mined. The volume of extraction or the tons mined during the period is considered as depletion since minerals are non-renewable resources.

13. Reserve level alteration attributed to changes due to economic decisions including new discoveries and reclassification of reserve as effected by prices and technology is recorded as other accumulation. However, due to problems on availability of data, this was calculated by subtracting from the closing stock the difference of the opening stock and extraction. Other volume changes covers additions or subtraction to the opening stock caused by natural or non-economic circumstances and reasons beyond the control of the mining firm. Examples of this are the cessation of operation of mine sites due to peace and order situation. Revaluation is equivalent to the difference due to changes in prices between the opening period and closing period. 4.3 OPERATIONALIZING THE FRAMEWORK

4.3.1 Sources of Data 14. MGB is the major source of data used in the accounts. Taking the role of an administrator on mineral lands in the Philippines, publications about the mineral resources is being provided by the said agency. Their data on reserve and extraction of metallic mineral were utilized in the accounts estimation. These were retrieved by MGB from the annual reports submitted by the mining firms/licensees. Data on the total nickel reserve were obtained from MGB while extraction was provided by the Rio Tuba Nickel Mining Corporation (RTNMC).

15. Initially, data on sand and gravel reserve were gathered from the Provincial ENRO. However, the data on volume represented only the estimated reserve in the area being applied for by individual proponents. Sand and gravel reserve was therefore grossly understated. This prompted the project to conduct a special study to estimate the volume found along the 15 rivers of Mainland Palawan that are the major sources of sand and gravel. Extraction data for the period 1990 to 1997 were



retrieved from the records of MGB. From 1998 onwards, the data on volume extracted were provided by the Provincial ENRO of Palawan and Puerto Princesa City ENRO. Details of data used in the establishment of monetary account for nickel were provided by the RTNMC, while the sand and gravel data were gathered through interviews with the haulers and operators of quarry concessions.

4.4 Estimation Methodology

4.4.1 Physical Asset Accounts a. Nickel

16. The Provincial Technical Working Group (PTWG) compiled the physical asset accounts of nickel in both ore and metal form. The latter is a basic requirement in monetary accounts. Although it is recognized that several metals can be contained in the ore, for this accounting exercise, only the primary metal (nickel) was considered. The metal content of the extracted ore was estimated by applying the weighted percentage volume of metal reported by the licensee on the extracted volume, while that of the reserve was based on the yearly average grade of nickel in all mining claims as reported by MGB. For other transactions required in the framework, the percentage weight of metal content provided by MGB was also applied.

17. The positive and probable reserves were considered to conform to the proven reserve requirement of the framework. The opening stock of a given year as presented in the framework is the closing stock of the previous year, while extraction data were the actual volume of ore (expressed in tons) that was mined. The extraction was treated as depletion of the reserve since nickel is considered as a non-renewable resource. The volume of mineral extracted from the reserve at a given period was deducted from the opening stock to come-up with the closing stock.

18. Due to data limitations, the recorded volume under other accumulation was calculated by subtracting from the closing stock the difference of the opening stock and the extraction. Changes in stock are either additions to or deduction from the reserve level caused by new discovery, production, natural calamities, and by reclassification of the reserve from probable to positive or possible to probable or from positive to probable or probable to positive.

b. Sand and Gravel

19. In the absence of any estimate on the total sand and gravel deposit, the reserve level was estimated using the result of the special study on 15 rivers in Palawan as major source of sand and gravel in the province in 1999 (Appendix Table 4.3). The estimated reserve in the study was treated as the closing stock for 1999. Resources for the period 1990 to 1999 were estimated using the stock data for 1999 and extraction data for the year considered. However due to data constraints, other variables required in the framework were not included in the physical accounts estimation. Although replenishment of the reserve may naturally occur during rainy days and flooding, this aspect was not covered in the special study.

4.4.2 Monetary Asset Accounts

20. The monetary accounts describe the changes in the level of reserve in terms of monetary value. Unit prices in the volume of reserve were based on the report of



the nickel mining company, and the records of the Provincial, and City ENRO for sand and gravel. A 15 percent opportunity cost applied in the estimation was assumed to approximate the cost of money invested in the fixed assets based on the feasibility studies provided by the National Economic Development Authority (NEDA). 21. The Net Price Method was adopted in the monetary valuation of the asset accounts for nickel. The concept of Hotelling Model1 as basis of the net price method assumes that in certain market conditions non-renewable resource rent will rise at a rate equal to the rate of discount as the resource becomes scarce (Alfieri, 2000). To come-up with the estimated value of depletion the net price method was used. The said method shows that the resource value is equal to the stock of the established reserves multiplied by the quotient of the annual resource rent and the annual quantity of the resource extracted:

Vt = (RRt /Q)S

Where: RR = annual resource rent Q = annual quantity of the resource extracted S = stock of remaining established reserve

22. Meanwhile, the resource rent is estimated by the total annual revenue from resource extraction less annual non-capital extraction costs, including fuel, electricity, materials, supplies and wages; less produced capital stock valued at replacement cost less its depreciation, that is:

RR = TR-C-(rcK+δ)

Where:

TR = total annual revenue from resource extraction C = annual non-capital extraction costs, including fuel,

electricity, materials, supplies and wages rc = return on the industry’s financial assets K = produced capital stock valued at replacement cost δ = depreciation of the produced capital stock

4.5 RESULTS AND DISCUSSION

4.5.1 Physical Account a. Nickel

23. Nickel extraction grew for both ore and metal form, registering an annual growth of 0.22 percent and 1.84 percent, respectively, from 1988 to 1998. Consequently, closing stock for nickel in ore form slightly declined from 412.7 million dry metric tons (DMT) in 1988 to 407.5 million DMT in 1998, or an annual average decline of 0.13 percent. Consequently, closing stock of nickel in metal form declined from 5.8 million DMT in 1988, to 5.7 million DMT in 1998, registering an annual decrease of 0.18 percent.

1 Hotelling model is applied to non- renewable resources that are depleted such that it becomes scarce. It can be also applied to extracted renewable resource that is known as depletion.



Table 4.2. Nickel Physical Asset Account (Ore Form, in thousand Dry Metric Tons) Variables 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

Opening Stock 1/ 420,323 412,693 417,993 418,620 412,600 412,600 412,600 412,600 409,169 408,169 407,825

Extraction 2/ 355 405 361 298 325 265 255 368 344 345 363Other Accumulation -7,275 5,705 988 -5,722 325 265 256 -3,063 -656 0 0Other Volume

Changes - - - - - - - - - - -

Closing Stock 412,693 417,993 418,620 412,600 412,600 412,600 412,600 409,169 408,169 407,825 407,457

Sources: 1/ - MGB 2/ - Rio Tuba Nickel Mining Corporation

Table 4.3. Nickel Physical Asset Account (Metal Form, in thousand Dry Metric Tons)

Variables 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 Opening Stock 1/ 5,995 5,843 5,977 5,988 5,818 5,818 5,818 5,818 5,726 5,750 5,745

Extraction 2/ 5 5 5 4 5 4 3 5 5 5 6Other Accumulation -148 140 15 -166 5 4 3 -87 29 0 0Other Volume Changes - - - - - - - - - - -

Closing Stock 5,843 5,977 5,988 5,818 5,818 5,818 5,818 5,726 5,750 5,745 5,739

Sources: 1/ - MGB 2/ - Rio Tuba Nickel Mining Corporation

24. The total extracted ore of 3.7 million DMT during the eleven-year accounting period contained 52.0 thousand DMT of nickel. However, between 1988 and 1998, extraction of nickel demonstrated a fluctuating trend (Figure 4.2). This is primarily attributed to the varying demands set by the RTNMC’s exclusive buyer from Japan. It is also noted that the total nickel reserve (closing stock) decreased by 3 percent from 1990 to 1991. Records of the reserve from seven mining concessions (Appendix Table 4.1) show that there was a drop in the estimated reserve volume within the area claimed by RTNMC during this period (Appendix Table 4.2). The 340,000 metric tons of positive and probable reserves in 1990 was reduced to 171,000 metric tons in 1991.

Figure 4.2. Actual Nickel Extraction by RTNMC, 1988-1998

50

150

250

350

450

Ore

in '0

00 M

T

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

Year

b. Sand and Gravel



25. The volume of reserve (5.4 million cubic meters) computed from the survey of 15 rivers was taken as the opening stock in 1999. Volume extracted increased by an average of about 30 percent per annum. The highest annual growth of 59 percent can be observed between 1994 and 1995 (Table 4.4). The increase in extraction was brought about by the growing demand for sand and gravel by the construction industry. Figure 4.3 illustrates the volume of stock of sand and gravel as compared to the extraction. Table 4.4. Sand and Gravel Physical Account (in thousand m3)

Variables 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 Opening Stock1/ 5,720 5,701 5,682 5,663 5,643 5,620 5,586 5,540 5,491 5,432

Extraction 2/ 19 19 19 20 22 35 46 49 59 71Other Accumulation - - - - - - - - - - Other Vol. Changes - - - - - - - - - -

Closing Stock 5,701 5,682 5,663 5,643 5,620 5,586 5,540 5,491 5,432 5,361

Sources: 1/ Provincial ENRO (1999); Other years computed from closing stock + extraction 2/ Extraction (1990 –1997); Prov’l ENRO and Puerto Princesa City ENRO(1998 –1999)

Figure 4.3. Sand and Gravel Reserve and Extraction, 1990-1999

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

1

10

100

1,000

10,000

In c

ubic

met

er

Year

ExtractionStock

4.5.2 Monetary Account

a. Nickel 26. Palawan’s nickel reserve was valued at P 272.6 billion in 1988, which increased to P 304.7 billion in 1998 (Table 4.5) or an increase of 1.1 percent annually. Between these periods however, there were marked rise and fall in the value of the reserve. For example, the value increased by 49 percent in 1989 and dropped by 25 percent in the following year. Although the volume of reserve was more or less stable (except for slight variations because of changes in the estimated reserves in some mining claims), the value of the resource increased due primarily to the market price (Appendix Table 4.6). The highest market price was recorded in 1989 at P 68.25 per kilogram of nickel, while the lowest price was recorded in 1993



at P 27.07 per kilogram.

Table 4.5. Nickel Monetary Account, Using Net Price Method at 15% Interest Rate, Palawan, 1988 – 1998, in million pesos

Variables 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

Opening Stock 279,800 272,684 407,560 307,049 322,898 251,587 156,911 212,976 263,050 276,877 288,013

Extraction 212 305 287 211 231 132 99 187 214 244 306 Other Accumulation -6,904 8,040 923 -8,839 231 132 99 -3,631 1,363 0 0 Revaluation 0 127,141 -101,148 24,905 -71,311 -94,676 56,065 53,893 12,677 12,380 15,974

Closing Stock 272,684 407,560 307,049 322,898 251,587 156,911 212,976 263,050 276,877 289,013 304,680

b. Sand and Gravel

27. Table 4.6 presents the monetary value of sand and gravel. The accounts show that the resource was valued in 1990 at P 66.6 million and increased to P 629.4 million at the end of 1999. The average annual increase in value was computed at P 62.5 million or 28.34 percent. However, it is noted that in 1992 and 1999, there was a reduction in value of almost P 10.6 million and 14.3 million, respectively as compared to the preceding year. The highest market price of 425.00 per cubic meter was recorded in 1999 (Appendix Table 4.6) which resulted to a resource rent of about P 8.4 million. The increase in value over the years was brought about mainly by the ascending market price. Table 4.6. Sand and Gravel Monetary Account, Using the Net Price Method at 15%

Interest Rate, in thousand pesos

Variables 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 Opening Stock 66,866 66,642 80,111 69,538 142,364 178,674 329,734 428,399 560,381 643,710

Extraction 224 247 250 376 633 1,571 3,136 4,411 6,507 8,353 Other Accumulation - - - - - - - - - - Revaluation - 13,716 (10,323) 73,202 36,943 152,630 101,801 136,393 89,836 (5,936)

Closing Stock 66,642 80,111 69,538 142,364 178,674 329,734 428,399 560,381 643,710 629,422

4.6 RECOMMENDATIONS 28. Extraction of nickel ore in Palawan is way below the reserve. However, there is only one nickel company operating in the province the production of which had been fluctuating during the accounting period. The industry in general has a great potential to be a major source of revenue for the province, however it is emphasized that these may not be realized in the near future. Palawan has adopted the Strategic Environmental Plan (SEP) as the framework for development. Thus, in pursuance of the SEP’s policy of sustainable development, restrictions in the activities allowed in certain areas were imposed and the mining is one of the most affected industries. 29. Nevertheless, mining and quarrying may still be pursued but the operation should be closely monitored. In the monitoring of the resource, therefore, it is recommended that the coverage should not only be limited to the volume of extraction but also on the manner of extraction as well as the actual location of mining areas. This should apply to both metallic and non-metallic minerals. 30. Through the asset accounts, the metallic and non-metallic mineral resource can be partly addressed. As such, the data needed to establish the accounts should



be fully satisfied. The following are recommended to improve the data system:

a. A more timely and comprehensive data collection on mining and quarrying licensees/permittees, from DENR, MGB and LGUs. The arrangements between and among the members of the groups representing these agencies should be defined and formalized to facilitate the gathering of data to be culled from the administrative reports.

b. More comprehensive studies to determine the extent of mineral

reserve, particularly for sand and gravel should be conducted. Replenishment rate or the volume of aggregates that are deposited in the river during heavy rains and flooding should likewise be determined.

c. Regular monitoring of mineral extraction should be conducted in order

to capture not only the volume collected by operators with valid permits, but also those who are under-reporting the actual volume of extraction and conducting illegal activities.

d. Accounts for non-metallic minerals not included in this study, such as

silica sand and pebbles, should be included in future accounting exercises.



ACRONYMS

Cu. M. Cubic Meter

CENRO City Environment and Natural Resources Office

PENRO Provincial Environmental and Natural Resource Office

LGU Local Government Unit

MGB Mines and Geosciences Bureau

M T Metric Tons

NEDA National Economic Development Authority



RTNMC Rio Tuba Nickel Mining Corporation

SEEA System of Integrated Economic and Environmental Accounting

UNSNA United Nations System of National Account



DEFINITION OF TERMS

Extraction is the withdrawal of mineral from the ground by physical process.

Metal any of a class of substance that is typically fusible and opaque, and good conductor of electricity. It also shows a peculiar metallic luster as gold, bronze, etc.

Metallic Minerals refers to minerals with a high specific gravity and metallic luster such as titanium, rutile, tungsten, uranium, tin, lead, iron, etc. which are good conductors of heat.

Metric Tons (MT) is the unit of measurement that is equal to 1,000 kilograms.

Mineral Deposits are natural accumulation of minerals abounding beneath the ground.

Nickel is silver-white hard malleable ductile metallic element capable of a high polish and resistant to corrosion that is used chiefly in alloys and as a catalyst.

Ore Reserve is mineral reserve of which the grade and tonnage have been established with reasonable assurance of drilling and other means extracted at a profit. This is physically attached to the mine.

Positive Ore Reserve refers to the ore reserve whose tonnage is computed from dimensions revealed in outcrops, trenches workings or drill holes. Grade is computed with sufficient accuracy from the results of detailed sampling. The sites for inspection, sampling and measurement are spaced so closely that the geological character is so well defined that size, shape and mineral content of the resource are well established.

Probable Ore Reserve an ore reserve whose tonnage and grade are computed from assumed projections beyond the positive ore reserve on geologic evidence.



Proven Ore reserve The estimated quantities at a specific date, which analysis of geological engineering data can demonstrate, with reasonable certainty, to be recoverable in the future from known reservoirs, under the economic and operational conditions at the same date (UNSNA, 1993). Operationally this is the summation of the total positive and probable reserves.

Quarry Open pit mine/excavation where stone, sand, gravel or minerals are obtained from open surfaces with or without a waste rock overburden.

Sand and Gravel Non-metallic minerals that are loose-grounded granular fragments that result from the disintegration of rocks.



APPENDICES



Appendix Table 4.1. Nickel Reserve by Classification, Grade and Metal Content of Mining Companies, 1996

Positive Probable Total Ave. Total

Name of Owner/Operator Reserve Reserve Tonnage Grade Metal Status (MT) (MT) (MT) (%) Content

Apollo Oil Exploration and 10,794,650 10,794,650 1.60 172,714 Not Mineral Development Corp. Producing (Palawan Nickel Project)

A. Soriano Corporation 204,100,000 204,100,000 1.35 2,755,350 Not

Producing

Rio Tuba Nickel Mining 4,500,000 1,600,000 6,100,000 2.32 171,103 Producing

Olympics Mines & Devt. (Pulot 2,631,170 2,631,170 2.04 53,676 Stopped Ni Project under Operating Operation agreement with Winchester Expl. Corp. - Claimowner

Olympic Mines & Devt. (Toronto 3,670,710 3,670,710 2.03 74,515 Stopped Ni Project under Operating Operation agreement with Toronto Expl. Corp.-Claimowner)

Olympic Mines & Devt. Corp. 1,752,000 1,752,000 2.03 35,566 Stopped (under operating agreement Operation with Sta. Monica Expl. Corp. - Claimowner)

Palawan Ni Corp. 6,149,460 6,149,460 1.75 107,615 Stopped

Operation

A. Soriano Cia 172,982,380 172,982,380 1.38 2,381,967 Not Producing

Celestial Nickel Mining Expl. 489,000 489,000 2.04 9,976 Stopped Corp. (Pal. Ni Project) Operation

TOTAL 407,069,370 1,600,000 408,669,370 5,762,482

Source : MGB



Appendix Table 4.2. Volume of Nickel Reserve by Classification, Grade and Metal Content of Rio Tuba Nickel Mining Corp., 1987 – 1996

Positive Probable Total Average Total

Year Reserve Reserve Tonnage Grade Metal Status (MT) (MT) (MT) (%) Content

1987 10,500,000 5,500,000 16,000,000 2.28 364,000 Producing at 2% Ni cut off



1990 8,900,000 4,500,000 13,400,000 2.54 340,730 Producing

1991 6,250,000 1,130,000 7,380,000 2.32 171,103 Producing

1992 6,250,000 1,130,000 7,380,000 2.32 171,103 Producing

1993 6,250,000 1,130,000 7,380,000 2.32 171,103 Producing

1994 6,250,000 1,130,000 7,380,000 2.32 171,103 Producing

1995 4,000,000 1,600,000 5,600,000 2.31 129,360 Producing

1996 4,500,000 1,600,000 6,100,000 2.33 142,130 Producing

Source: MGB



Appendix Table 4.3. Summary of Sand and Gravel Reserve on Selected Rivers of Palawan, 1999

Location/River Length Width Average

Thickness Total Reserve

(in meter) (in meter) (in meter) (in cubic meter) Puerto Princesa City Inagawan river 7,000 31.0 2.0 434,000 Montible river 8,000 46.0 1.0 368,000 Bacungan river 6,500 21.0 1.5 204,750 Maoyon river 6,000 23.0 1.7 234,600 Tanabag river 8,000 27.0 2.0 432,000

South Aborlan river 4,260 37.5 1.0 159,750 Batangbatang river 11,500 73.8 1.0 848,700 Panitian river 5,890 46.1 1.0 271,529 Pulot river 12,700 70.8 1.0 899,160 Pangobilian river 13,200 32.0 1.0 422,400

North Abongan river 8,000 15.0 1.0 120,000 Barbacan river 16,000 12.0 1.0 192,000 Macalancalan river 8,200 15.0 1.0 123,000 Caramay river 13,000 30.0 1.5 585,000 Tinitian river 6,600 10.0 1.0 66,000 Total Reserve 5,360,889 Source: Special study conducted by PCSDS and Prov'L. ENRO

Appendix Table 4.4. Computed Unit Rent of Nickel Resource, Palawan, 1988 -1998

Volume Extracted

(Q) Unit rent (metal form in dmt) (in peso/metric ton)

Stock of remaining established reserve Year

1/ (metal form in thousand dmt)

1988 4,539 46,689 5,843 1989 5,312 68,163 5,977 1990 4,805 51,277 5,988 1991 3,963 55,496 5,818 1992 4,678 43,240 5,818 1993 3,768 26,968 5,818 1994 3,117 36,604 5,818 1995 4,532 45,940 5,726 1996 4,544 48,150 5,750 1997 4,961 50,303 5,745 1998 5,918 53,085 5,739

Appendix Table 4.5. Computed Unit Rent of Sand and Gravel Resource,



Palawan, 1990 -1999

YEAR Volume Unit rent (in cubic meter) (in peso/m3)1/

Stock of remaining established reserve

(metal form in thousand dmt)

1990 19,158 11.69 5,701 1991 19,125 14.10 5,682 1992 18,944 12.28 5,663 1993 20,031 25.23 5,643 1994 22,197 31.79 5,620 1995 34,585 59.03 5,586 1996 45,998 77.33 5,540 1997 49,172 102.06 5,491 1998 59,006 118.51 5,432 1999 70,808 117.41 5,361

Appendix Table 4.6. Market Price Per Unit Volume, 1988-1999

Year Priceof Nickel Sand and Gravel Peso/kg of Ni US$/kg Peso/ Cubic Meterc

1988 46.74 a 2.22 b 120.00 1989 68.25 a 3.14 b 120.00 1990 51.35 a 2.11 b 160.00 1991 56.60 a 2.06 b 175.00 1992 43.33 a 1.70 b 180.00 1993 27.07 a 1.00 b 200.00 1994 36.72 b 1.39 a 200.00 1995 46.03 b 1.79 a 250.00 1996 48.24 b 1.84 a 300.00 1997 50.40 b 1.71 a 350.00 1998 53.16 b 1.30 a 400.00 1999 53.16 b 1.39 a 425.00

Sources: a/ Rio Tuba Nickel Mining Corporation, Makati b/ Banko Sentral ng Pilipinas c/ Informal Interview of the proponents and the Provincial Environment and Natural Resources Office (ENRO)



REFERENCES

System of Economic and Environmental Accounts (SEEA) Manual, Chapter 2 United

Nations Statistics Division, 2000. Baseline Study of the Twelve Regions of the Philippines, Region IV-A.1981.

Research Department, Institute for Small-Scale Industries, University of the Philippines, Quezon City, Metro Manila.

Geology of the Palawan Island. 1980. Bureau of Soils, Ministry of Agriculture, Manila. Lange, Glen Marie. Mineral Accounts: Case Study of Botswana and Nambia. 2000.

International Workshop on Environmental and Economic Accounting. Mines and Geo-Science Bureau. 1980. Mineral News Service. National Economic and Development Authority. Glossary of Terms in Statistics. 1985 National Statistics Office (NSO). 1996. Provincial Profile. Palawan Palawan Council for Sustainable Development Staff and Provincial Environment and

Natural Resources Office. Special Study on Sand and Gravel Reserve in Mainland Palawan. 1999.

Palawan Integrated Area Development Project Office. Integrated Environmental

Program. Strategic Environmental Plan for Mainland Palawan. 1985. Philippine Asset Accounts. 1998. National Statistical Coordination Board (NSCB),

Makati City. Pido, M., Cardinas, M. Initial Environment Examination (IEE): Small-Scale Silica

Sand Mining in Roxas, Palawan,. 1985. Provincial Planning and Development Office, Department of Trade and Industry.

1992. Palawan Facts and Figures. Provincial Product Accounts. Mineral Resources. 1994. NSCB, Palawan Council for

Sustainable Development & Provincial Government of Palawan. Philippine Natural Resources Profile and Statistics. Minerals, Volume V. 1979.

Ministry of Natural Resources. Strengthening the Geological Survey Division of the Bureau of Mines and Geo-

Science. Ministry of Natural Resources. Technical Report number 6, Geology Central Palawan. 1985. UNDP.

United Nations System of National Accounts (UNSNA). 1993.


Palawan Water Resource

Environment and Natural Resource Accounting

WATER RESOURCE 5.1 INTRODUCTION 1. As a basic need, water is important to everyday life for Palaweños. The province of Palawan is composed of 1,700 islands and islets, having a total land area of 14,896 square kilometres and a population of 640,486 as of 1995 dependent on its 191 catchments as the source of water. There are 31 major catchments with areas ranging from 59 to 388 square kilometers. There is one freshwater lake found in Northern Palawan known as Lake Manguao. 2. The recharge of the ground and surface water depends on the amount of precipitation or rainfall. Heavy rainfall is usually experienced in July and August, often accompanied by the southwest monsoon. Palawan has two types of climate. The western section experiences two dry and wet seasons (Type I) while the eastern section has no pronounced season (Type III). Based on the data gathered from six rainfall monitoring stations in the province, the average annual rainfall is 2,183 mm. However, these stations are all located in the eastern section of the province. The rainfall stations installed by PCSDS at the western section of the province are only three years old and data from these stations can be used for future estimation. 3. Since Palawan is a long and narrow island, the runoff water flows from the uplands to the sea within a short span of time. Thus, the area with available groundwater (shallow and deep well) is about 2,242 square kilometers, which is only 15 percent of the total land area of the province. The rest are considered difficult areas; thus supply of water is scarce. 4. As of 1998, the agriculture sector had the biggest consumption of water with 98.87 percent of the total water demand while the domestic consumption is only 1.03 percent. The commercial and industrial consumption are 0.04 percent and 0.05 percent, respectively. Because of Palawan’s economic potentials and relatively preserved environment, migrants from other parts of the country are attracted to settle in the province. Thus, the influx of settlers accounts for the high population growth rate pegged at 3.9 percent annually. The growing trend of population accounts for the increasing demand for domestic consumption of water. The water demand for agricultural production, as well as for commercial and industrial requirement, also increased, in response to the needs of the growing populace. 5. The inclusion of water resource in the project aims to establish whether the consumption pattern of the resources has not depleted the stock or the replenishment level of water can sustain the amount of withdrawal. Moreover, it should be determined if there is degradation based on the concepts and principles introduced in the System of National Accounting (SNA). 6. Water is known as the universal solvent. It has the capability to assimilate with pollutants. However, the primary use of the resource rests in its capability to sustain the basic survival of man. Majority of the population utilise groundwater for their domestic consumption. The agriculture sector uses surface water while other industries commonly use groundwater in the process of production. Hence, it is necessary to establish the level of production of each resource type vis-à-vis the consumption. Water is commonly derived free at its source, however, costs are incurred in the manner and method of extraction and distribution.



5.2 CONCEPTUAL FRAMEWORK

5.2.1. Scope and Coverage 7. The estimation for water covered the physical accounting of the resource. Surface and groundwater resources are treated as different sources of water, thus separate accounting for each resource was undertaken. The accounting period for surface water started in 1988 and ended in 1998 while for groundwater, the accounting period is from 1980 to 1998. The only available information is the findings of the study made by the National Water Resources Council (NWRC), now known as National Water Regulatory Board (NWRB), published in 1983. The study revealed that the total groundwater of Palawan is 3,900 million cubic meters (MCM) as of 1980.

5.2.2. Framework for the Asset Accounts 8. The physical account framework for surface and groundwater is shown in Table 5.1. The opening and closing stocks refer to the volume of water available at the start and end of the accounting period. For ground water resource, the aquifers’ hydrological characteristics determine the water-bearing capacity and the safe yield (SW). For surface water resource, the Runoff is the basis of the mean water supply and dependable streamflow.

Table 5.1. Physical Accounts Framework for Surface and Groundwater

Account Surface Water Groundwater Opening Stock Volume (MCM)

- streamflow Volume (MCM)

- depth of water table Changes in Quantity

Reduction or Withdrawals

Water Consumption - agricultural

Water Withdrawal for Consumption

- domestic - commercial and

industrial - agriculture

Other Accumulation

Recharge Catchments Recharge

- actual streamflow (1987-1989)

- dependable streamflow (1990-1998)

Recharge - percolation from

rainfall

Closing Stock Volume (MCM)

- dependable streamflow Volume (MCM)

- estimated groundwater storage

Changes in Quality Freshwater drains to the sea to mix with saltwater.

Part of the recharge volume in the aquifer drain to the sea to mix with saltwater.

9. Abstraction or withdrawal of water for domestic, commercial, industrial and agriculture uses brings about the changes in quantity. Other accumulation includes the recharge or replenishment of the resource by nature such as precipitation or rainfall. The streamflow as well as the groundwater aquifer naturally drain to the sea



and mixes with saltwater. This natural phenomenon is considered in the estimation of the physical accounts. Other volume changes in water may be a result of natural disasters such as earthquakes, volcanic eruption and flooding, which are non-economic in nature. 10. The consumption of water for agricultural, industrial and domestic uses lead to deterioration of water quality, which aggravates the availability of water. Salt water intrusion, and leachate wastes are some examples of problems affecting the changes in quality of groundwater reserves, while pollution, siltation and sedimentation are possible causes of quality changes for surface water. 5.3 OPERATIONALIZING THE FRAMEWORK

5.3.1. Surface Water

Physical Accounts

11. The physical accounts of surface water covered an eleven-year period from 1988 to 1998. The opening stock is based on the actual 1987 streamflow data gathered during the implementation of the Palawan Hydrometric Network Program (HNP) funded by the European Union. The network consists of fifteen river gauging stations located in major catchments of mainland Palawan. The closing stock is the difference between the opening stock and changes in quantity. The closing stock for the current year is the opening stock for the succeeding year. 12. The change in quantity is based on the difference of dependable streamflow and withdrawal. The 1988 and 1989 streamflow data were based on the actual measurements conducted during the HNP implementation. There were no data for the succeeding years due to the breakdown of automatic river gauging equipment installed in the different stations. After the program, the said equipment was not repaired and operations were not sustained due to lack of funds. For the succeeding years, 1990 to 1996, an 80 percent dependable streamflow is based on the NWRC Report No. 24-4E dated March 1983 which is 11.63 liters per second per square kilometer or 1,727.2 million cubic meters (MCM) per year. The withdrawal is estimated by computing the demand requirements for the agricultural sector, which is the only identified surface water user. No information is available on the proportion of consumers who are using surface water for domestic, commercial or industrial purposes. The water requirement for crops is based on NIA and DA standards which include rice at 1.5 li/sec/ha for 90 day per cropping, corn at 58 m3/ha/day for 95 days, root crops at 51.7 m3/ha/day for 96.7 days and vegetables at 49.1 m3/ha/day for 85.4 days.

5.3.2. Groundwater

Physical Accounts 13. The estimates of the physical asset of groundwater covered a nineteen-year period. The accounts used 1980 as the baseline year considering that the only available data was the survey of groundwater done by NWRC.



14. The opening stock is based on the 1980 estimated total groundwater storage, which is 3,900 MCM as per study conducted by NWRC. The closing stock is the difference between the opening stock and changes in quantity. The closing stock for current year is the opening stock for the succeeding year. The change in quantity is based on the water demand on groundwater for domestic, industrial, commercial and agricultural consumption.

15. The domestic water consumption is estimated by multiplying the total provincial population (see Appendix Table 5.9) by the per capita water requirement which is assumed to be 100 liters per capita per day. The domestic consumption is also assumed to be withdrawn from the groundwater since the population depends on groundwater wells and springs. The commercial and industrial water demand is estimated by multiplying the number of establishments with the water requirements, which are 1,000 liters/day and 2,000 liters per day, respectively. The linear regression model was used to determine the number of commercial and industrial establishments for years without available data. The agricultural consumption is based on the livestock and poultry population using groundwater. The water requirement for cattle, carabao and swine is 7.5 cubic meter per head per year and for poultry is 0.046 cubic meters per head per year. 16. The basis for determining other accumulation is the estimation of groundwater recharge from precipitation or rainfall (see Table 5.4). Based on the 1991 NEDA study, the recharge is only 10 percent of the Net Estimated Inflow (NEI). The NEI is 50 percent of the Gross Estimated Inflow (GEI) while the GEI is equal to the estimated inflow (EI) multiplied by the total land area of Palawan with available groundwater. According to the National Water Resources Board (NWRB) Master Plan Study the area with available groundwater is 2,242.2 sq. km. consisting of shallow and deep well areas. The rest of the area consists of difficult areas. 17. The fact that the aquifer or groundwater also naturally flows and drains to the sea and mixes with saltwater was also considered.

18. Table 5.2 shows the estimation methodology and sources of data for the surface water and groundwater physical account.



Table 5.2. Estimation Methodology and Sources of Data

A. Surface Water Variable Estimation Methodology Description Source

Opening Stock Based on actual 1987 streamflow data

Streamflow for 15 river gauging stations in Palawan

Palawan Hydrometric Network Program (HNP) Annual Report, 1991

Changes in Quantity

Withdrawal (-) Estimated by computing for the demand

Agricultural sector was the only identified surface water user

BAS, PPDO, NEDA and BAI, water requirement of NIA.

Requirements of agricultural sector.

For crops water requirement: rice = 1.5 li/sec/ha. corn = 58 m3/ha/day

(95 days) root crops = 51.7

m3/ha/day (96.7 days)

vegetables = 49.1 m3/ha/day (85.4 days)

No information is available on the proportion of consumers using groundwater for domestic, commercial or industrial purposes

50% of surface water mixed with saltwater.

Assumption made based on the fact that river flow drains to the sea and mixes with saltwater

Other Accumulation/ Streamflow (+)

Based on available streamflow data

1988 and 1989 data are actual streamflow data

Palawan Hydrometric Network Program (HNP) Annual Report, 1991

1990 to 1996 data are

based on the 80% dependable flow, which is 11.63 lps/sq.km or 14.96 mcm per day or 1729.2 mcm per year

NWRC Report No. 24-25, March, 1983

Closing Stock Opening Stock +/- Change

in Quantity +/- Other Accumulation.



B. Ground Water

Variable Estimation Methodology Remarks Source Opening Stock Based on 1980 total groundwater

storage for Palawan which is 3,900 MCM/year.

The opening stock for 1988 was determined by starting the computation of the physical account on the year 1980.

NWRC Report No.24-4E, March, 1983

Changes in Quantity

Determined by computing the difference between the volume of groundwater withdrawal and recharge of the aquifer from rainfall.

Withdrawal (-) Based on the demand requirements of the various sectors.

domestic Estimated by multiplying the population by the water requirement per person per day (100 liters/capita/day)

National Statistics Office

commercial and

industrial

Estimated by multiplying the number of commercial and industrial establishments with their water requirements:

Water requirements were based on PPDO data.

BAS

Commercial ests. = 1,000 li/day Industrial ests. = 2,000 li/day Linear regression model was used

in the estimation of commercial and industrial establishments for years without available data

agricultural Based on livestock and poultry demand from groundwater.

Water requirements are based on standard requirements for livestock.

BAS, PPDO and BAI

Water Requirements: cattle = 7.5 m3/head/year x no. of

heads

swine = 7.5 m3/head/year x no. of heads

chicken = 0.046 m3/head/year x no. of heads

carabao = 7.5 m3/head/year x no. of heads

Recharge (+) Estimated inflow is 10% of rainfall but 50% flushed to the sea.

NEDA, 1991 NWRC Report 34-1, June, 1980

The gross estimate is the product of the estimated inflow and the total land area of Palawan with available groundwater.

Palawan land area with groundwater = 2,242.2 km2.

Sum of shallow and deep well area.

Master Plan Study of the Philippines, NWRB, NEDA, 1991

The Net Estimated Inflow is 50% of the Gross Estimated Inflow.

The recharge is 10% of the Net Estimated inflow

NEDA, 1991

Palawan Annual Rainfall data was based on the average rainfall of six (6) stations.

PAGASA, Rio Tuba Nickel Mining Corporation

Closing Stock Opening Stock + Change in Quantity.



5.4 ANALYSIS, RESULTS AND DISCUSSION

5.4.1. Physical Accounts of Surface Water 19. The estimated provincial physical accounts of surface water from 1988 to 1998 shows that the closing stock has increased from 15,023 to 45,643 MCM (see Table 5.3). Although there is an increasing trend in the demand of surface water for agriculture the stock has an increasing trend since the withdrawal from agriculture sector is still small compared to the basin recharge as shown in Figure 5.2. The available stock is a large potential for the agricultural development of the province. Table 5.3. Surface Water Physical Asset Account of Palawan, 1988-1998 (MCM)

Variables/Year 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 Opening Stock a/ 9459 15023 20034 24000 24702 26,864 30373 33317 37419 38979 40925 Changes in Quantity Withdrawal (mcm) b/ 2002 1964 1818 1746 1691 1660 1668 1697 1752 1877 1940 Other Accumulation Net Basin Recharge

(mcm) c/ 7566 6975 5784 2448 3853 5169 4612 5798 3313 3822.15 6658 Closing Stock d/ 15023 20034 24000 24702 26,864 30373 33317 37419 38979 40925 45643 a/ Opening stock is the direct run-off estimated based from actual river discharge data for 1987;See Appendix Table 5.1. and 5.2. Source: Palawan Hydrometric Network Annual Report (1991) and Philippine Asset Accounts, NSCB, May 1998. b/ Agricultural Water Uses (1988-1998). See Appendix Table 5.4 and 5.5 c/ Estimated Basin Recharge. See Appendix Table 5.1 d/ Closing Stock = Opening Stock - Withdrawal + Recharge Figure 5.1. Precipitation, Net Basin Recharge and Direct Run-off, 1987-1998

0

5000

10000

15000

20000

25000

30000

35000

1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998Year

Mill

ion

Cub

ic M

eter

s

Precipitation (MCM) Net Basin Recharge (MCM) Direct Run-Off (MCM)

20. Figure 5.2 shows that withdrawals from surface water is below the net basin recharge, indicating sustainability of stocks for the given accounting period, which translates to a continuous increase of stocks for surface water.



Figure 5.2. Surface Water Physical Asset Account (Net Basin Recharge, Withdrawal and Closing Stock), 1988-1998

0

10000

20000

30000

40000

50000

60000

1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

Mill

ion

Cub

ic M

eter

s

Withdrawal Net Basin Recharge Closing Stock

21. Figure 5.3 shows the trend of agricultural water demand. It is noted that withdrawals from surface water was declining from 1988 to 1993 while an upward trend was observed from 1993 to 1998.

Figure 5.3. Surface Water Withdrawal, 1988-1998

0

500

1000

1500

2000

2500

1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

Mill

ion

Cub

ic M

eter

s

5.4.2. Physical Accounts of Groundwater

22. The estimated stock of groundwater depends on the recharge from rainfall. The period with the lowest recharge was in 1991, which is due to lower rainfall occurrence in the province especially in the southern portion of the mainland. Table 5.4 shows that there is as increasing trend in withdrawal of groundwater resource as its abstraction for domestic, commercial, industrial and agricultural purposes expanded, partly brought about by the rapid increase in population due to migration. 23. The estimation of groundwater recharge is based only from rainfall data gathered from the eastern section of the province. Based on the recorded data from the three-year old rain gauge stations established by PCSDS, the rainfall amount in the western section ranges from 2,720 to 3,957 mm and have more wet months. Thus, for future estimation, the estimated groundwater recharge will be higher.



Table 5.4. Physical Accounts of Groundwater in the Province of Palawan (1988-1998), MCM

SECTOR/YEAR 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 Opening Stock a/ 5,752 5,970 6,157 6,329 6,444 6,582 6,711 6,861 6,986 7,111 7,245Changes in Quantity (Withdrawal) b/ 16 16 17 18 19 20 20 22 22 23 24Other Accumulation (Recharge) c/ 234 203 189 133 157 179 170 190 148 156 220 Closing Stock d/ 5,970 6,157 6,329 6,444 6,582 6,711 6,861 6,986 7,111 7,245 7,442

a/ Opening stock was lifted from National Water Resources Council Report No. 24-4E, March 1983. The total groundwater storage is approximately 3,900 million cubic meters (MCM). The opening stock for 1988 was determined by starting the computation of physical account from1980. See Appendix Tables 5.6. b/ See Appendix Tables 5.7 and 5.8, 5.9, 5.10, 5.11 and 5.12 for the water demand on groundwater based on domestic, industrial, commercial, and agricultural consumption. c/ Recharge of the groundwater was based on rainfall data. See Appendix Tables 5.15 and 5.16. d/ Closing stock = Opening stock - Changes in Quantity (Withdrawal) + Recharge.

Figure 5.4. Groundwater Physical Account (1988-1998)

0

50

100

150

200

250

1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

Gro

undw

ater

(MC

M)

W ithdrawal

Recharge

24. The demand for groundwater between 1988 and 1998 is shown in Figure 5.5. The pie charts illustrate that the proportion of water demand for domestic, industrial and commercial sectors had slightly changed after ten years. Figure 5.5 Groundwater Demand in 1988 & 1998

1988

4.40%3.67%3.87%

88.06%

Dom estic Industria lCom m erc ia l Agricu ltura l

1998

86.20%

4.50%

3.60%5.70%



5.5 LIMITATIONS 25. The availability of adequate and timely data on water resources is very essential in the estimation of the physical accounts. The Palawan Hydrometric Network Program (HNP) was funded by European Union and implemented from 1986 to 1989 purposely to gather hydrological and climatological data as part of the Strategic Environmental Plan (SEP) for Palawan’s Environmental Monitoring and Evaluation System (EMES). During the program, consultants were hired to identify priority catchments to be monitored and install with automatic climatological and river gauging stations. However, the program was not sustained after the EU project due to lack of funds to repair the automatic equipment that broke down and for their subsequent maintenance. Consequently, the data were only available for the said period. 26. A study to update the groundwater storage was contracted by the project to PALTUBIG but the scope includes only southern municipalities of Narra, Quezon, Sofronio Española, Brookes Point and Bataraza. The said data on groundwater storage is being used for estimating physical accounts of groundwater by municipality. 27. The streamflow data was limited only from 1987 to 1989. Although it is possible to estimate the dependable streamflow based on the rainfall data, attempts to scout for an expert to share the methodology was unsuccessful. The said streamflow data were taken from 15 rivers located in mainland Palawan. It covers a total of 2,132 square kilometer or only 14.3 percent of the total land area of Palawan. The direct run-off data utilized for the succeeding years were based from the average actual streamflow data from HNP. 5.6 RECOMMENDATIONS 28. The monitoring of available stock of surface and groundwater is a tool to efficiently manage the resources. Any negative trend established or projected can be a basis for policy formulation that will mitigate further depletion of the water resources. Based on the initial compilation of the water resources accounts, it was observed that due to the rapidly growing population and development in the province, there is also an increasing abstraction of groundwater for domestic, commercial and industrial purposes. On the other hand, surface water demand, although way below the stock, should be properly managed to maximize its potentials, particularly for the use of the agricultural sector. In line with this, the following management directions are recommended:

a. Encourage each municipality to monitor the available water resource and create a quality management plan to ensure its sustainability.

b. Organize a Provincial Water Resource Committee and Task Force to

serve as the core group in planning and addressing problems regarding water resource.

29. Meanwhile, the estimates of physical accounts can be improved by compiling additional data and modifying some of the methodologies to attain a greater degree of accuracy, as follows:



a. Special studies should be made to generate updated information on groundwater storage of northern, central and island municipalities considering the change in forest cover and land use.

b. Local government units may be tapped to conduct annual monitoring

and inventory of commercial and industrial establishments, agricultural areas and livestock.

c. Personnel involved in the estimation of accounts should be trained

further to gain knowledge on hydrology as well as other methodologies that can be applicable to the generation of accurate data and their application.

d. Rain gauge stations should be installed in municipalities without

PAGASA stations to generate rainfall data. In addition, there is a need to reactivate the Palawan Hydrometric Network Program for continuous monitoring of streamflow of major rivers in the province.

e. Operationalization of the PEENRA System should be pilot-tested at

the municipal level.



ACRONYMS BAS Bureau of Agricultural Statistics

DA Department of Agriculture

EI Estimated Inflow

EMES Environmental Monitoring and Evaluation System

EU European Union

GEI Gross Estimated Inflow

HNP Hydrometric Network Program

IEP Integrated Environmental Program

NEDA National Economic and Development Authority

NEI Net Estimated Inflow

NIA National Irrigation Administration

NSO National Statistics Office

NWRB National Water Resources Board

NWRC National Water Resources Council

MCM Million Cubic Meters

PAGASA Philippine Atmospheric, Geophysical, and Astronomical

Services Administration


PPDO Provincial Planning and Development Office

SNA System of National Accounting

UNDP United Nations Development Programme



DEFINITION OF TERMS

Aquifer A water bearing geologic formations, usually soil which contain groundwater and which readily yields it to wells and springs.

Basin Recharge Difference between the precipitation and the sum of the direct run-off and ground water accretion.

Net Basin Recharge Basin recharge less 50 percent which is assumed to mix with salt water.

Deep Well Areas Characterized by aquifer or water bearing formations generally at a depth of more than 20 meters below ground surface (mbgs). Constructions of deep wells with depths greater than 20 meters are recommended in these areas.

Difficult Areas Areas where groundwater supply is minimal and the probability of encountering non-productive boreholes is very high. Groundwater replenishment in these areas are only through rock fissures, cracks and crevices which predominantly exist in sites where there are faults and other geologic discontinuities.

Direct Run-Off That part of the precipitation that flows towards a stream on the ground surface, synonymous to flow or the total volume of water that flows during a year, usually referred to the outflow of the catchments area.

Groundwater Water that occurs beneath the surface of the earth. It can be classified according to the rock types or aquifers in which it occurs.

Mean River Discharge The annual average river flow per year per square kilometers.

Precipitation The amount of liquid or solid products brought about by condensation of water vapor falling from clouds or deposited from air on the ground generally rainfall or snowfall.

Shallow well areas Areas suitable for construction of wells with depths of not more than 20 meters and are recommended for rural water supply development, particularly Level I and II services. Static water level in these areas are generally within 6 (mbgs).

Streamflow The amount of water flowing in a stream channel.

Surface Water An open body of water such as stream or lake characterized as a mixture of surface run-off and groundwater.

Water Resources The supply of water in aquifer area or basin interpreted in terms of availability of surface and groundwater.



APPENDICES



Appendix Table 5.1. Estimated Basin Recharge, 1987-1998 (MCM) Variables/Year 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

Precipitation mm a/ 1504 2091 1812 1688 1190 1400 1596 1513 1690 1319 1395 1818 mcm b/ 26582 31148 26986 25143 17729 20854 23774 22539 25174 19651 20783 27085 Groundwater Recharge (mcm) c/ 2658 3115 2699 2514 1773 2085 2377 2254 2517 1965 2078 2709 Direct Run-off (mcm) d/ 9459 12900 10338 11060 11060 11060 11060 11060 11060 11060 11060 11060 Basin Recharge (mcm) f/ 14465 15133 13949 11569 4896 7709 10337 9225 11597 6626 7645 13316 Net Basin Recharge (mcm) g/ 7233 7567 6975 5785 2448 3855 5169 4613 5799 3313 3823 6658

a/ Rainfall data from PAGASA Stations, 1988-1998 (see Appendix Table 5.2) b/ Total precipitation in mcm is based on the rainfall amount for the province of Palawan which has a total land area of 2,242.2 square kilometres with groundwater c/ Groundwater recharge based from rainfall data estimated to be 10% of the total rainfall.

Source: National Handbook on Land and Other Physical Resources, NEDA, 1991. d/ The direct run-off (mcm) is based from the Mean River Discharge per year per square kilometer (1985-1989) lifted from the Palawan Hydrometric Network Report, 1991. e/ Based on the actual average river discharge (mcm/yr/sq.km) from Palawan Hydrometric Network Report, 1991. (see Appendix Table 5.3) f/ Basin recharge (mcm) for surface water was estimated by the equation: R = P-L-G, therefore, L = P-G-R where R is the direct run-off, P is the precipitation, L is the basin recharge and G is groundwater accretion. Source: Philippine Asset Accounts, NSCB, May 1998. G/ Net Basin Recharge (mcm) = Basin Recharge – 50% Basin Recharge/water mixed with salt water.

Appendix Table 5.2. Palawan Annual Rainfall Data, 1987-1998 (mm)

Year Puerto Princesa a/ Aborlan a/ Brooke's

Point a/ Coron a/ Cuyo a/ Rio Tuba b/ Average Rainfall

1987 1064.8 1814.25 1256.9 3038.8 74.6 1777.5 1988 1666.3 1632.2 902.6 2497.0 3390.4 2458.6 2091.0 1989 1513.8 1601.2 903.7 2918.7 1862.2 2069.9 1811.6 1990 1144.3 1437.3 507.8 2498.9 2767.2 1772.3 1687.9 1991 986.1 1288.8 524.7 2030.7 1218.6 1092.8 1190.2 1992 1380.9 1363.6 799.7 1977.7 1754.2 1126.4 1400.0 1993 1442.9 1848.7 789.5 c/ 2227.9 1671.4 1596.0 1994 1158.1 1633.0 1157.8 c/ 2280.9 1335.8 1513.1 1995 1748.6 1680.4 883.9 c/ 2329.0 1810.5 1690.4 1996 1281.6 1924.8 751.4 c/ c/ 1677.4 1319.2 1997 1123.0 1093.7 807.1 1903.4 c/ 1747.7 1395.3 1998 1719.5 1961.9 1953.7 d/ 2400.0 c/ 1200.0 1818.3

Source: a/ PAGASA Stations b/ Rio Tuba Nickel Mining Corporation c/ Rainfall data being requested through DMOs.

Appendix Table 5.3. Palawan Hydrometric Network Mean River Discharge, 1986-1989 (MCM)

Catchment Year Name of River Area (Km2) 1986 1987 1988 1989 1. Cabinbin 158 116.30 88.16 39.43 - 2. Pulot 161 102.22 132.25 101.00 106.03 3. Nali 117 88.45 58.70 - - 4. Pinaglabanan 79 35.30 44.78 - 93.07 5. Princess Urduja 163 445.63 250.73 312.44 286.42 6. Panacan 89 16.32 13.04 10.88 12.31 7. Inagawan 170 67.79 - - - 8. Napsan 146 27.68 36.66 36.00 - 9. Montible 256 158.30 174.26 418.48 52.81 10. Bacungan 92 40.80 117.26 77.53 20.74 11. Poponton 33 61.62 55.99 54.36 57.56 12. Tanabag 58 72.27 53.19 99.09 33.30 13. Magara 146 154.26 91.60 - 120.38 14. Dumarao 260 106.76 79.93 101.69 - 15. Abongan 204 - 49.04 75.88 106.89

Total 2132 1493.70 1245.59 1326.78 889.51 Average MCM/yr/sq.km. 0.775 0.635 0.866 0.694 Note: Annual average MCM/yr/sq.km. is 0.7425 or 23.54 liters/sec/sq.km. Source: Palawan Hydrometric Network 1991 Annual Report

Water Resources Annex Final Report, Integrated Environmental Program (IEP), October, 1983



Appendix Table 5.4. Agricultural Water Uses from Surface Water, 1988-1998 (MCM) Crop/Year 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

Rice a/ 1838.68 1843.18 1711.96 1636.80 1583.18 1548.14 1571.20 1607.96 1664.62 1782.92 1839.70Corn b/ 83.92 61.25 58.98 71.22 76.60 83.84 70.57 64.09 62.18 66.74 70.63 Rootcrops c/ 30.23 25.52 22.30 20.18 18.63 18.03 17.53 17.64 18.11 19.63 18.28 Vegetables d/ 49.60 33.98 24.80 17.37 12.95 10.08 8.29 7.34 7.12 7.40 12.00

Total 2002.43 1963.93 1818.04 1745.57 1691.36 1660.09 1667.59 1697.03 1752.03 1876.69 1940.61

Note: See Appendix Table 5.5 Total Area Planted with Crops, 1988- 1998 Water Requirement:

a/ Rice: 1.5 li/sec/ha, 90 days/cropping x 2 croppings/yr. conversion factors from second to year and liters to MCM

b/ Corn: 58 m3/ha/day x 95 days/growing season c/ Rootcrops: 51.7 m3/ha/day x 96.7 days (growing season) d/ Vegetables: 49.1 m3/ha/day x 85.4 days (growing season)

Appendix Table 5.5. Total Area Planted with Crops, 1988-1998 (in hectare)

Crop/Year 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

Rice 78,818.7 79,011.4 73,386.7 70,165.1 67,866.6 66,365.4 67,353.3 68,928.1 71,357.3 76,428.0 78,862.9

Corn 15,231.8 1,116.9 10,705.1 12,927.2 13,903.0 15,216.4 12,807.4 11,631.6 11,284.3 12,112.5 12,819.5

Root crops 6,047.8 5,106.6 4,461.9 4,036.7 3,727.3 3,606.8 3,505.7 3,528.4 3,623.2 3,927.3 3,656.6

Vegetables 11,830.7 8,103.1 5,725.7 4,136.9 3,089.5 2,404.1 1,978.1 1,751.5 1,678.4 1,765.1 2,866.1Note: Total agriculture data from municipalities Source: City Agriculture Office Municipal Agriculture of Rizal, Quezon, Taytay, Roxas, Narra, Espanola, Brooke's Point, Balabac and Bataraza Municipal Profile of San Vicente, Linapacan, Magsaysay, Cuyo, Coron, Busuanga, Agutaya and Araceli National Statistics Office, 1980 and 1991 BAEX, 1981 MIADP, 1989

Appendix Table 5.6. Physical Accounts of Groundwater, 1980-1987 (MCM)

Variables 1980 1981 1982 1983 1984 1985 1986 1987

Opening Stock a/ 3,900.0 4,143.23 4,342.5 4,563.9 4,785.34 5,048.41 5386.18 5567.27

Changes in Quantity (Withdrawal) b/ 11.97 12.51 12.99 13.49 13.93 14.43 14.91 15.38

Other Accumulation (Recharge) c/ 255.2 210.8 235.4 234.9 277.0 352.2 196.0 200.1

Closing Stock d/ 4,143.23 4,341.52 4,563.9 4,785.34 5,048.41 5386.18 5567.27 5751.99

a/ Opening stock was lifted from National Water Resources Council Report No. 24-4E, March 1983. The total groundwater storage is approximately 3,900 million cubic meters (MCM).

b/ See Appendix Table 5.7 and 5.8 for the water demand on groundwater based on domestic, commercial, industrial and agricultural consumption.

c/ Recharge of the groundwater was based on rainfall data. (see Appendix Tables 5.15 and 5.16 d/ Closing stock = Opening stock - Changes in Quantity (Withdrawal) + Recharge.


Appendix Table 5.7. Water Demand from Groundwater, 1980-1996 (MCM)

SECTOR/YEAR 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

Domestic a/ 10.86 11.3 11.68 12.06 12.44 12.82 13.2 13.58 13.96 14.3 15.3 15.99 16.56 17.12 17.69 18.7 19.39 19.46 20.24

Commercial b/ 0.35e/ 0.38e/ 0.41 0.47e/ 0.48 0.51e/ 0.55e/ 0.58e/ 0.583 0.622 0.663 0.686 0.702 0.733 0.752 0.775 0.798 0.821 0.844

Industrial c/ 0.27e/ 0.31 0.35e/ 0.39e/ 0.41 0.47e/ 0.51e/ 0.54 e/ 0.613 0.640 0.677 0.747 0.777 0.875 0.876 0.923 0.971 1.019 1.066

Agriculture, livestock and poultry d/

0.494e/

0.551e/

0.548e/

0.575e/

0.603e/

0.629e/

0.655e/

0.683e/

0.74 0.76 0.9 0.94 1.05 1.17 1.21 1.24 1.28 1.33

T O T A L 11.97 12.51 12.99 13.49 13.93 14.43 14.94 15.38 15.86 16.3 17.40 18.32 18.97 19.80 20.48 21.60 22.39 22.58 23.48

a/ Based on NSO population data (see Appendix Table 5.8), 1000 li/capita/day water requirement x total population b/ Based on NSO data (see Appendix Table 5.9), 1000 li/day consumption x no. of commercial establishments c/ Based on NSO data (see Appendix Table 5.9), 2000 li/day consumption x no. of industrial establishments d/ Based on BAS data (see Appendix Table 5.11) and BAI standard requirement for cattle, swine and chicken e/ No available data, estimated demand based on linear regression model


Appendix Table 5.8. Palawan Population Data, 1980-1998 Year Population 1980 a/ 371,782 1981 a/ 387,367 1982 a/ 400,143 1983 a/ 413,042 1984 a/ 426,033 1985 a/ 439,056 1987 a/ 465,121 1988 a/ 478,066 1989 a/ 490,943 1990 b/ 528,287 1991 b/ 547,675 1992 b/ 567,063 1993 b/ 586,451 1994 b/ 605,839 1995 c/ 640,486 1996 c/ 663,992 1997 d/ 666,362 1998 d/ 679,689

Source:

a/ Facts and Figures About Palawan, NSO, 1985 b/ NSO, 1990 Census of Population and Housing Report c/ NSO, 1995 Census of Population, Report No. 2-72D d/ Projected Population based on NSO data

Appendix Table 5.9. Number of Establishments, 1978-1999

Year Commercial Industrial 1978 538 a/ 390 a/ 1979 644 b/ 435 b/ 1980 750 b/ 480 b/ 1981 856 b/ 525 b/ 1982 962 b/ 570 b/ 1983 1068 b/ 615 b/ 1984 1174 b/ 660 b/ 1985 1280 b/ 705 b/ 1986 1386 b/ 750 b/ 1987 1492 b/ 795 b/ 1988 1598 b/ 840 b/ 1989 1704 b/ 885 b/ 1990 1816 b/ 927 b/ 1991 1,881 c/ 1,024 c/ 1992 1,924 c/ 1,065 c/ 1993 2,009 c/ 1,131 c/ 1994 2,063 b/ 1,200 b/ 1995 2,125 b/ 1,265 b/ 1996 2,187 b/ 1,331 b/ 1997 2,250 b/ 1,396 b/ 1998 2,312 b/ 1,461 b/ 1999 2,374 b/ 1,527 b/

Source: a/ - Facts and Figures about Palawan, NSO, 1985 b/ - No data available, estimated number based on linear regression model c/ - NSO

Palawan Water Resource 127

Appendix Table 5.10. Livestock and Poultry Water Demand from Groundwater, 1980-1998 (MCM)

Livestock and

Poultry 1980a

/ 1981a/ 1982a/ 1983a

/ 1984a

/ 1985a/ 1986a

/ 1987a

/ 1988/

a 1989/

a 1990 1991 1992 1993 1994 1995 1996a

/ 1997a

/ 1998a

/

Carabao 0.044 0.057 0.069 0.082 0.095 0.107 0.119 0.132 0.14 0.16 0.17 0.16 0.18 0.20 0.22 0.24 0.26 0.28 0.30

Cattle 0.007 0.16 0.025 0.033 0.042 0.05 0.059 0.068 0.08 0.85 0.09 0.10 0.11 0.13 0.17 0.15 0.16 0.17 0.19

Swine 0.427 0.432 0.437 0.442 0.447 0.452 0.457 0.462 0.46 0.47 0.48 0.62 0.62 0.69 0.75 0.79 0.79 0.80 0.81

Chicken 0.016 0.0169 0.0176 0.018 0.019 0.0198 0.02 0.021 0.022 0.022 0.02 0.02 0.03 0.03 0.03 0.03 0.03 0.03 0.03

T O T A L 0.494 0.5219 0.5486 0.575 0.603 0.629 0.655 0.683 0.70 0.74 0.76 0.90 0.94 1.05 1.17 1.21 1.24 1.28 1.33a/ No data available, estimated number based on linear regression model. Source of basic data: BAS, PPDO, NEDA and BAI Cattle - 7.5 m3/head/year Swine - 7.5 m3/head/year Chicken - 0.046 m3/head/year Carabao - 7.5 m3/head/year

Appendix 5.11. Livestock and Poultry Population, 1980-1998 (Number of Heads)

Year 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 \d \d \a \a & \b \a & \b \a & \b \b \c \d \d \d Carabao 5,899 7,578 9,257 10,936 12,615 14,294 15,973 17,652 19,331 21,010 22,690 21,343 24,599 27,855 29,867 32,483 34,899 37,468 40,241

Cattle 1,007 2,162 3,317 4,472 5,627 6,782 7,937 9,092 10,247 11,402 12,557 13,820 15,024 16,978 18,204 19,502 21,297 23,255 25,395

Swine 57,000 57,667 58,334 59,001 59,668 60,335 61,002 61,669 62,336 63,003 63,670 82,203 82,204 93,085 98,808 104,768 105,865 106,973 108,093

Chicken 350,441 366,676 382,911 399,146 415,381 431,616 447,851 464,086 480,321 496,556 512,791 536,320 641,953 584,660 586,164 599,294 618,272 637,842 658,036

\a - Bureau of Agricultural Statistics, Central Office \b - Bureau of Agricultural Statistics, Palawan \c - Provincial Planning and Development Office \d - No available data, estimated population based on linear regression model.


Appendix Table 5.12. Groundwater Recharge (MCM) Based From Rainfall Data, 1980-1998

Variables/Year 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

Rainfall (mm) a/ 2,276 1,880 2,100 2,095 2,471 2,082 1,748 1,785 2,091 1,812 1,687 1,190 1,400 1,596 1,513 1,690 1,319 1,395 1,818

Rainfall (m) 2.280 1.880 2.10 2.090 2.470 2.08 1.750 1.780 2.091 1.811 1.687 1.190 1.400 1.596 1.513 1.690 1.319 1.395 1.818

Gross Estimated

Inflow (MCM) b/ 5,104 4,215 4,709 4,697 5,540 5,043 3,919 4,001 4,688 4,062 3,784 2,669 2,466 3,579 3,393 3,789 2,958 3128 4,404

Net Estimated

Inflow (MCM) c/ 2,552 2,354 2,349 2,770 2,522 1,960 2,000 2,344 2,031 1,892 1,334 1,233 1,789 1,697 1,895 1,479 1,564 2,202

Recharge (MCM) d/ 255 211 235 235 277 252 199 200 234 203 189 133 123 179 170 190 148 156 220

2,108

a/ Rainfall data from PAGASA Stations and Rio Tuba Nickel Mining Corporation, 1980 -1998 b/ Gross Estimated Inflow = Estimated Inflow x Land Area of Palawan with available groundwater (2,242.2km2 based on the Master Plan Study) c/ Net Estimated Inflow = 50% Gross Estimated Inflow 50% of estimated inflow is assumed to mix with or flush salt water. d/ Recharge = 10% Net Estimated Inflow. Source: National Handbook on Land and Other Physical Resources, NEDA (1991).



REFERENCES National Water Resources Board. 1997. Master Plan Study of the Philippines.

Quezon City. National Water Resources Council. Report No. 24-4E, March, 1983. Quezon City. National Statistical Coordination Board. 1998. Philippine Asset Accounts:

Forestry, Land/Soil, Fishery, Mineral and Water Resources, Environment and Natural Resources Accounting. Philippines.

National Statistics Office, Census of Agriculture, 1991 & 1980, Manila, Philippines. National Statistics Office, Provincial Profile: Palawan, 1991 & 1980, Manila,

Philippines. Palawan Hydrometric Network Program (HNP). 1991. Annual Report, PIADPO,

Puerto Princesa City. Water Resources Annex. 1983. Final Report, Integrated Environmental Program

(IEP), October, Puerto Princesa City

Palawan Water Resource 130

Palawan Asset Accounts

Business

Transcript of Palawan Asset Accounts