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National Conference on

Environment and Natural


Resources Financing

“Helping Local Governments


Fund Good Projects”

Crowne Plaza
September 23-24, 2009
Background and Rationale
• Increasing need for sound ENR management
• Requires sustainable sources of funding to
support programs and projects
• Adequate and appropriate options for ENR
financing has become a crucial concern for
DENR, OGAs, LGUs and civil society
• Opportunity to educate actors on the various
options for ENR financing
• A survey of LGUs covered by the DENR’s
programs and projects was conducted
from June-August 2009

• Baseline information gathered on the level


of knowledge, experience and interest of
LGUs with respect to the various
mechanisms for financing ENR
programs/projects
Profile of Respondents
No. of Provinces 32

No. of LGUs 107

No. of Respondents 172

- Male 124
- Female 48
SURVEY RESULTS

Sources of funds for on-going ENR


Projects

• Internal Revenue Allotment (IRA)

• DENR and other government agencies

• NGOs, CDF, private sector, etc


◘ Government:

IRA (92%)
CDF (79%)
Public Bank Loan (68%)

◘ Private Sector:

Grant (56%)
Commercial loan (52%)

◘ MBI:

CSR (23%)
EMS (20%)
 Issues/Constraints in Accessing
Financing

◘ Process too bureaucratic

◘ LGUs are not familiar with schemes/


procedures for accessing private sector
financing windows

◘ Too many documentary requirements


 ENR Programs/Projects Planned for the Next
2-3 Years
◘ Environment

- SLF Construction/Operation
- MRF/Composting Facility

◘ Forest and Forestland Management

- Watershed Management/Upland Rehabilitation


- FLUP preparation/implementation

◘ Coastal Resources Management

- Implementation of CRM project


- Mangrove rehabilitation/reforestation
Possible Sources of Funds for
Proposed Projects

• Internal Revenue Allotment (IRA)

• DENR/other government agencies

• Bilateral/Multilateral agencies.
Conference Objectives

General Objective:

To provide the venue for creating further


awareness on ENR financing and
strengthening the ability of LGUs to
generate and access financing for their
ENR projects.
Specific Objectives:

a. To discuss various sources of environment


and natural resource finance, including
government (public sector), private sector and
market-based instruments;

b. To gain a better understanding of the


challenges, constraints and opportunities to
sustainable financing of environmental
projects;
/cont…

Specific Objectives:

c. To provide a venue for sharing of “good


practices” in environment and natural resource
financing; and

d. To identify policy recommendations and


formulate a work program for the DENR and its
partners that will focus on capacity building
and other support in the area of ENR
financing.
Conference Design and
Methodology

• Combination of plenary and small group


sessions

• Market place sessions where LGU


proposed projects will be presented
Anticipated Outputs
a. Better understanding of the range of sources,
options and mechanisms for ENR financing;
b. LGUs are able to identify and qualify areas where
capacity building is required, and take steps to
addressing these challenges in ENR financing;
c. Project concepts and ideas identified by LGUs for
ENR financing;
d. Work program developed by the DENR and its
partners that could consist, among others, the
following elements:
continuation...

i. development of an information base of key sources of


ENR financing in the Philippines

ii. establishment of a formal network of local


governments in the Philippines focused on ENR
financing
iii. design of a proposed series of sector-based round
table investment forums

iv. national and sub-national policy recommendations


and related capacity-building initiatives.
THANK YOU