DM 2005 Project Implementation PROGRESS REPORT

(01/15/2007) In order to ensure transparency, accountability, as well as to share lessons learned, we will post this Progress Report on the Development Marketplace website at www.developmentmarketplace.orgHowever, if you would like to share any sensitive information with us, you can do so in section VI. The information provided in this part of the report will be handled as confidential; thereby it will not appear on the DM website.

I. Background Information DM Project Number and Title Benefiting from the Dreaded Janitor Fish (#3765) Report Author’s Name (if different from Team Leader)

Total Award US$ 143,746.51 Amount Disbursed to Date US$ 122, 184.45 (85 % of the Total Award)

II. Progress Against Milestones

i) List the milestone objectives in the first column as expressed in the Project Agreement. The second column should indicate the current status of each milestone objective. In the third column, please provide quantitative data and qualitative information describing the status of the project against that particular milestone.

Milestone Objectives (Copy from the Agreement)

Status (Completed/ In Progress)

Descriptive Information on the Status

1. Full Documentation of Project Completed

• All Progress Reports Consolidated

• Video Documentary Prepared

• Technical Paper/ Folio Written and Published

• Public Disclosure Forum Organized

In Progress All of these activities are still in progress will eventually be undertaken. Reasons for the delay in achieving the milestone are stated in the following sections. Due to a number of additional activities, which were not in the original scope of work but which were deemed to be necessary nonetheless, it is foreseen that the Public Disclosure Forum will be held in second week of March 2007 together with the completion of the Technical Paper and the video documentary.

ii) If you did not achieve some of your stated milestone objectives, please explain the reasons. One major factor that caused delays in the accomplishment of the milestone objectives for January 2007 are the unforeseen activities, that are currently being undertaken, which were not included in the original proposal but were deemed essential for the completion and successful implementation of the project. These are: (1) Laboratory tests for the heavy metal

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content of janitor fish and other fish species existing in the same habitat as the janitor fish, (2) Feeding trial for various animal species, (3) Heavy metal analysis of the flesh of animals fed with diets containing janitor fish meal and (4) Production of foliar fertilizer. Another factor that has affected the smooth implementation of the project was the unforeseen arrival of the super-typhoon “Milenyo” last September 2006 which caused severe damage to properties in the Southern Part of the main island of Luzon. The LLDA- Calauan Complex, where the demo facilities are located, was not spared from the damages wrought by the said typhoon. After the typhoon, power lines were down for two months and even up to now have not been fully restored. The scaffold in the fish meal plant was stolen, most of the feed ingredients were spoiled and the feed storage area was ruined. “Milenyo” was followed by other typhoons “Neneng” and “Senyang” which delay the repair of the already damaged equipment. Due to this unexpected series of typhoons, the fish catching activity, processing of fish meal and production was stopped for about three months. The operations are expected to resume this January as soon as the equipment are repaired and the electricity is fully restored. (ANNEX 2- October 2006 Accomplishment Report). Because of the unforeseen activities and delays, we are slightly off schedule but this does not diminish the fact that we have accomplished a lot for this reporting period (as stated in the overall project progress and Annexes) even if the specific objectives for Milestone 3 were not met.

iii) Has your project’s overall accomplishments to date exceeded the original plan?

Yes No If Yes, describe your achievements:

III. Overall Project Progress i) What have been the main challenges of your project to date? What, if any, adjustments have you made to your original business plan in order to overcome the challenges and meet your objectives?

Challenges: Adjustments: An alarming residue of Mercury was detected on the flesh of hogs raised under the feeding trial done at UPLB Farm.

We have already completed the feeding trial and laboratory tests for chicken. Results show that despite the presence of excessively high levels of heavy metals in raw janitor fish, no accumulation in the chicken meat, gizzard and liver was observed (ANNEX 3- Report of Analyses for Chicken Meat, Gizzard and Liver). For the hogs, we have completed the feeding trial and the results of the laboratory tests show no traces of Lead, Cadmium, Arsenic and Chromium in the analyzed samples. However, an alarming level of residue of Mercury was detected in all the samples, including those samples coming from animals fed with diets containing commercial fish

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meal (i.e. no janitor fish). (ANNEX 4- Results of Analysis for Hog Meat, Liver and Kidney). Because of this, we were advised by the experts to temporarily stop the feeding until such time that the source of Mercury has been determined. It is suspected that the water in the place where the feeding trial for hogs was conducted is the source of the mercury found in all the samples. To conclusively determine the cause of accumulation, we have submitted samples of hog feed containing janitor fish meal as well as the janitor fish meal itself for heavy metal analysis. Considering the Level of Detection (LOD) of the test method the F.A.S.T. Laboratories used in analysis, results show that there are no traces of heavy metals (Arsenic, Mercury, Cadmium, Lead and Chromium) found in the feed and janitor fish meal samples (ANNEX 5- Results of Analysis for Janitor Fish meal and Feed). Experts advised us to analyze the heavy metal content of the water in the farm where the experiment was done since it could also be the source of the detected Mercury. A water sample has been submitted to the same laboratory for analysis.

The content of the janitor fish extract does not reach the required level of nutrients and minerals to be considered as foliar fertilizer.

The detected traces of Mercury in the flesh of hogs also led us to explore other beneficial uses for janitor fish. Now, we are looking into the potential of the liquid extract derived from this fish as a raw material for the production of foliar fertilizer for agricultural and ornamental crops. However, on the initial mineral analysis of the fish extract the values obtained were very minimal as compared to those foliar fertilizer available in the market (ANNEX 6- Mineral Analysis of the Janitor Fish Extract). We are now working on a different method of liquid extraction to increase its mineral content.

ii) Have any of your objectives changed or have you added new objectives since you signed your Project Agreement? If Yes, explain the changes.

Yes No

iii) Do you have any concerns about meeting your next milestone objectives?

Yes No

If Yes, what are the concerns and how do you plan on addressing those challenges?

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iii) Although this is an interim report, are there any development outcomes or results of your activities to date that you would like to call attention to?

The sustainability plan is now being drafted as a result of the initial planning workshop that was conducted last September 21-22, 2006. Attached herewith is the after activity report of the said workshop. (ANNEX 7- After Activity Report Dated September 25, 2006). As part of the sustainability plan, an initial meeting with the partner organization regarding the details on the establishment and utilization of the fund that will be generated from the proceeds of the livelihood activities under the Janitor Fish Project was made last December 19, 2006. (ANNEX 8- After Activity Report Dated January 5, 2007)

iv) Reminder: In accordance with Paragraph 3.1.1 of the Project Agreement, each project team is required to submit a statement of account showing the use of the funds within three months after the last disbursement. As a part of periodical expenditure review exercise, please provide an annex with un-audited summary of expenses during this reporting period. IV. Ancillary Achievements i) Have you or has your organization received any awards/recognitions or media attention as a result of your DM-funded project during this period?

Yes No

If Yes, please specify the sources and identify the names.

Award /Recognition Media e.g. International: BBC News on Dec. 3-4, 2003

Local: National: International:

Local: National: International:

Explain the Award/Recognition or the Media content: On May 15, 2006, the Project was featured in QTV – “100% Pinoy” (one of the Local Channels in the Philippines) where the processing of Janitor Fish into fish meal was shown and discussed. On another incident, the Project Leader, Mr. Jose K. Carino III was interviewed regarding the beneficial use of the Janitor Fish and was aired in one of the daily national news programs (TV Patrol – ABS CBN) on January 2, 2007. Attach web links/news clips, if available:

ii) Has your organization made any new partnerships as a result of this project during this reporting period?

Yes No

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If Yes, specify type of the organization from the list below and describe nature of the partnership:

Local Government: National Government: NGO: Bilateral Development Agency:

Multilateral Development Agency: Private Corporations: Other:

e.g. Multilateral Development Agency: Development Marketplace of the World Bank (financial partnership and technical assistance)

iii) Sustainability and scalability after completion of the DM fund are top of the DM Team’s priorities. Has your organization leveraged new funding or secured future funding during this reporting period?

Yes No

If Yes, provide the following information. Funding Sources: Names of the Organizations Amounts Funded/Committed: US$ 000,000

V. Requests to the DM i) Do you have any comments on the overall process and support provided by the DM Team or Project Liaison?

ii) If your contact information has changed, please provide us with the new information.

Contact Name: Title: Organization: Primary Email Address: Secondary Email Address: Organization's Website Phone: Fax: Address: Postal Code:

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Annex I. Project Expenses for this Reporting Period Items Sub-Totals (USD) 1 Personnel 2 Materials and Equipment 3 Training 4 Travel 5 Evaluation/Information Dissemination 6 General Administration/Overhead 7 Other Total Expenses

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ANNEX 1

Siniloan River Rehabilitation and Management Foundation, Inc. Balance Sheet

As of December 31, 2006

ASSETS

Cash on hand P 29,927.81

Due from PNB - Siniloan Branch 1,087,229.91

Prepaid expense-comprehensive insurance premium 25,000.00

-taxes and licenses, three (3) years regn., of vehicle 6,260.00

Properties, Plant and Equipment:

Utility vehicle 836,000.00

Machineries and equipment 1,531,000.00

Tools, implements and other mill equipment, sch. 1 15,505.00

Furnitures, fixtures and equipment, sch. 2 102,696.00

TOTAL ASSETS P 3,633,618.72

LIABILITIES AND CAPITAL

Accounts payable-non trade P -

Siniloan River Rehabilitation and Management Foundation, Inc., Capital-1st..tranch of WB Grants 1,992,502.50 -2nd. tranch of WB Grants 2,319,905.91 -3rd. tranch of WB Grants 2,207,977.94

TOTAL CAPITAL IN WB GRANTS P 6,520,386.35

Less: PROJECT COSTS 2,886,767.63

NET CAPITAL IN WB GRANTS p 3,633,618.72

(see accompanying notes to financial statement)

ANNEX 1

Siniloan River Rehabilitation and Management Foundation, Inc.

Notes to Financial Statement: December 31, 2006

1. Summary of Significant Accounting Policies: Deferred charges were reclassified from asset account to a separate Statement of Project Costs, in lieu of traditional Statement of Income and Expenses.

The total project costs were deducted from total WB grants in 3 tranches and the resulting net amount were all accounted in the asset accounts, that can be confirm, inspected and verified at any given time.

Amortization of prepaid comprehensive insurance premium, taxes and licenses and depreciation of machineries, utility vehicle, tools and implements were deferred.

Direct and indirect labor costs were integrated to salaries and wages expense account.

The net sales from fattened hogs P476,035.07 under the 70% and 30% arrangement were deposited in the account of River Council at PNB Siniloan Branch as seed fund, secured by MOA.

Prepared/Audited: Certified Correct/Approved:

SIGNED SIGNED LIBRADO G. MERCADO, CPA JOSE K. CARINO PRC Regn. No. 33163 Project Team Leader PTR-3440268

ANNEX 1

Siniloan River Rehabilitation and Management Foundation, Inc. Statement of Project Costs As of December 31, 2006

Purchases-raw materials for feeds production P 356,807.84 -veterinary medicine and commercial feeds 22,129.75 -janitor fish 22,597.00 -broiler chicks 15,350.00 -pre-starter piglets 310,508.70 -tilapia fingerlings 9,240.00 -assorted fish for laboratory analysis 419.00

Supplies -office supplies 13,959.50 -training workshops and exhibit supplies 6,039.50 -storage and packing supplies 10,933.26 -factory supplies 17,611.19 -sensory analysis supplies 637.88 -fish cage supplies 3,060.00 -rice hull supplies 5,625.00

Salaries and wages -project/support staff, research asst., driver 1,457,756.66 -production workers 131,385.70 Fuel and lubricants 173,598.04 Postage, telephone and telegraph 376.75 Representation expenses 480.00 Travelling expenses 6,371.00 Advertisement and promotions-food, transportation, venue and honorarium of training workshops. 124,791.70 Repairs and maintenance -utility vehicle, ZBL-463 12,654.05 -building 111,188.77 -machineries and equipment 4,838.00 Management and professional fees -notarial fees 3,200.00 -laboratory, chemical, heavy metal and mineral analysis 67,872.82 Miscellanous expenses 10,443.90

Total Project Costs P 2,899,876.01 Less: Interest of bank deposits 13,108.38 Net Project Costs P 2,886,767.63

ANNEX 1

Schedule of Tools, Implements and other equipments

grease gun P 345.00

submersible pump 4,760.00

presurrized washer 5,000.00

weighing scale 3,500.00

sealer 1,900.00 P 15,505.00

Schedule of Furnitures, Fixtures and Equipment

laminating machine P 3,136.00

binding machine 4,810.00

lap top 94,750.00 P 102,696.00

LAGUNA LAKE DEVELOPMENT AUTHORITY COMMUNITY DEVELOPMENT DIVISION

October 31, 2006

For : The Division Chief III / Project Leader From : The CDO 1/APL and RAs Subject : Accomplishment Report on the Janitor Fish Project (October 2006) Because of the typhoon “Milenyo”, the LLDA-Calauan Complex where the demonstration facilities are located was severely damaged. Until now, the electrical supply is still down. The scaffold in the fishmeal plant was stolen, most of the feed ingredients were spoiled and the feed mill storage area was ruined. Due to the said situations, the janitor fish catching activity, processing of fishmeal and production of feeds have been temporarily deferred. The stocking for the 2nd cropping production of hogs was temporarily postponed because we do not have the volume of janitor fish meal and feeds that are enough to sustain the needs of the number of hogs we planned to raise under the livelihood project. For the tilapia trial, the start of feeding with diets containing janitor fish meal for the starter stage was also affected because of the limited stock of janitor fish meal to be mixed in the feed that will suffice the need of 12, 000 pieces of fingerlings. Right now, we are still feeding the tilapia with feed containing commercial fish meal. However, we were able to finish the first cropping for the broiler production as part of the livelihood program for the FARMC of Cardona, Rizal. On another matter, among the 18 hogs raised under the study entitled “The Feeding Value of Janitor Fish (Pterygoplichthys disjunctivus) on Hog Diet”, three (3) hogs representing the three (3) treatments were slaughtered. From the carcasses, nine (9) samples were obtained (meat, liver and kidney) and submitted to the FAST Laboratory to test for any probable traces of heavy metals (Lead, Cadmium, Mercury, Arsenic and Chromium). Results showed that no traces of Lead, Cadmium, Chromium and Arsenic were found in the analyzed samples. However, an alarming residue of Mercury was detected in all the analyzed samples, including those samples coming from animals fed with diets containing commercial fish meal. Because of this, we were advised by the experts we have consulted to stop the feeding. The initial heavy metal analysis that we had for chicken does not include the tests for Arsenic and Mercury. So again, we have submitted chicken flesh samples to the laboratory for the said tests just to verify its safeness and to know if the duration of feeding has something to do with the accumulation. We have submitted also samples of feed containing janitor fish meal a well as the janitor fish meal itself for heavy metal analysis. Results are expected to be out not later than November 10, 2006.

Since processing janitor fish into fish meal does not seem to be feasible for livestock animals, we are considering feeding it to ornamental fish or pet animals. We are also looking into the potential of this fish as a raw material for foliar fertilizer to ornamental plants. SIGNED SIGNED Marivic Alcaraz Melody Laurente SIGNED

Haidee Piniero

ISSUE ACTION POINTS/ FOCAL PERSON

TIME FRAME REMARKS

1) Funds transferred toSRRMFI "Trust Fund" (todraft guidelines for the use offunds)

1) workshop to be called forthe drafting of specificguidelines/Action PlanFP - Engr Rod/ Engr Ador

Guidelines draftedon 12/1/2006

1) To be used mainly for theriver rehab of Siniloan (e.g.community sanitation); tosustain DM Project (e.g.livelihood-janitor fish)

2) Proliferation of Janitor Fishin relation to SustainabilityPlan

2) Mobilization of otherstakeholders lakewide (RCs,FARMCs, EA, LGU)FP-CDD/LLDA in coor w/ RCsconcerned;

Janitor FishCatching - ANA

2) Cost sharing arrangementsto be worked out

Formulation of Plans (e.gfoliar production) for properdisposition of the Janitor Fishcaught FP-Project Team

Dec-06

3) PDP 3) to be determned byresource available FP-ProjectTeam/RC

February - March 3) Grps/personalities that

should be represented duringthe forum: LLDA, RCs,FARMC, WB, ScientificCommunity, Academe,Funding Institutions, Media,BFARVENUE: LLDACalauan/Manila; to exploreothers like UPLB, SEARCAand PCMRD# of Participants : 50 - 75 andhalf day only

4-a) Assumption 1 - Projectwill cont to operate

4-a) Ident. of fish mealprocessor FP CDD-RC

Dec-06

marketing / lobbying theresults of JF Study

after the projecthas ended

Identify concentration of JF Dec-064-b) Assumption 2 - TheProject will cease theoperation

4-b) Tap LGU (espLakeshore) to allot fund in thecollection of JF using portionof the FPFS - Need to havedirective from LLDA Top Mgt.FP - JKC

Dec-06

LLDA to provide budget for JFcatching activities-CDD Workplan for 2007

Dec-06

Compost enhancer Look for the possibility of JFas input to composting - FP:C3 CDD/LLDA to link it withthe LGUs e.g. MRF SubProjects

Trial in Siniloan -(results) Dec 2006

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5) Cooperators who were notable to return the investment

5) To talk to Ms. Edith andarrive at certain agreementswith the ffg.suggestions. FP -Ka Rod, Pteam)

Payment shall bemade inaccordance towhat will bestipulated in theMOA.

5) 70% share shall go to theproject

To have a MOA between thecooperator and the PTstipulating that she/he has topay the amount from any ofhis/her earnings esp if its hograisingTo have her pig pen rentedand all of the rental fees shallgo to the project funds

Such arrangement shall alsobe supported by a MOA

6) Cropping Period 6) To conitnue the croppingon the premise that theoperation in the production offeeds will continue under anew scheme (e.g. 50-50;loan) --to increase the numberof beneficiaries FP:Becky, Mel, haidee

6) New MOA shall be madebetween the SRRMFI andcooperators. It should benoted however, that the 2ndcropping will also depend onthe results of the Heavy MetalAnalysis that is currently beingconducted for the flesh, liver,kidney of the pig.

No operation - Cropping shallcontinue but with different setof feeds also under a newscheme (e.g. 50-50; loan?)FP(loan)-Jessie and Sol

New MOA shall be madebetween the SRRMFI andcooperators. It should benoted however, that the 2ndcropping will also depend onthe results of the Heavy MetalAnalysis that is currently beingconducted for the flesh, liver,kidney of the pig.

7) High Density Feeds for theSecond Cropping

7) Reformulation shall bemade ANA FP-Becky andMel

7) to avaluate possible qualityof carcass

8) Livelihood Options 8) To test foliar in Siniloanthru "Ka Bibiana" TBI

8) To be replicated ifsuccessful

Demonstration of foliar inCalauan FP: Omie, James,Randy

Until Dec 2006

Explore other livelihood thatwould be beneficial tothem.FP:Haidee, Mel, Becky

Nov-06 To engage cooperators (thosewho are involved in feedproduction) with clear MOAand will not deviate from theMOA w/ the existingcooperators.

Increase number ofcooperators FP:Becky, Mel,haidee

after the projecthas ended

Hog raising; broiler production;etc.

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9) Maximize the use of theequipment and the product

9) 9)

ProductFoliar

Experimentation establish preparation of foliar(concentration of enzyme:waste water - tying up withUPLB-Horti Dept/IPB) FP -James M./ Randy/ Roman

Results inDecember 2006

to coordinate w/ Mr.Pascual/experts on foliarprodn e.g. DOST etc.

test in ornamental plants TBAMarketability and ProfitabilityStudy

e.g. to determine targetconsumers FP -James/Randy and Romanstudy process or improvementof the facility

Fishmeal Production hog with identified cooperatorschickentilapiaducks

Cassava Meal ProdnToll milling FP - Mel and Becky, Haidee Link with KMPI

Marketability StudyCandle /Wax Production

Experimentation To research - FP - Romanand Eric

To coordinate with TLRC

EquipmentImprovement of equipment eff proper maintenance

assess / evaluate existingoperation - FP - Omie, Eric incoor w/ AllanRE-ASSESS operation costs -FP: Becky, Mel, Haidee

Sustainable Use of Equpment

use of facilities for demopurposes

link up with UPLB, BAI,PCAMRD: FP-Dulce/Susan

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LAGUNA LAKE DEVELOPMENT AUTHORITY COMMUNITY DEVELOPMENT DIVISION

“BENEFITING FROM THE DREADED JANITOR FISH PROJECT” September 25, 2006 For: Mr. Jose K. Cariño III

Project Leader/ Division Chief III Community Development Division From: Project Staff Subject: AFTER ACTIVITY REPORT The two-day planning workshop organized to identify next steps forward to ensure sustainability of the DM funded project “Benefiting from the Dreaded Janitor Fish” was successfully undertaken last Sept 21-22, at the Splash Mountain Resort in Los Baños, Laguna. All in all, 24 participants consisting of the LLDA, SRRMFI, Hog Raisers and FARMC representatives attended the workshop. The first part of the workshop was the leveling-off of expectations and the following were gathered from the participants:

a) It was expected that the Speakers - i) Will discuss the topics clearly and will make their presentations as simple as

possible; ii) Will use Filipino as the medium of communication for easy understanding and

for the participants to freely express their ideas and opinions;

b) It was expected that the participants - i) Will be on time and will actively participate in all of the activities; ii) Will be polite, cooperative and friendly to everybody; iii) Should share their experiences specifically those concerning the

implementation of the project and at the same time give possible recommendations whenever necessary/needed;

iv) Will share their knowledge, time, talent and “treasure”; v) Will have a good time even if they are attending the workshop; vi) Will have enough rest and to eat on time; vii) Will have a good learning and fruitful experience; viii) Will have good relationships among co-participants; ix) Will maximize the allotted time and be right on schedule.

c) After the Workshop it is expected that :

i) There will be a draft plan and recommended strategies for the sustainability of the project.

ii) The participants will have a common understanding as to the status of the project as well as the to have common answers to queries like “safety of using janitor fish as fish meal”, etc.,

iii) Solutions would have been laid out for the technical problems encountered during the fish meal processing and feed mixing.

The first presentation was done by the Project Leader, Mr. Jose K. Cariño III. He discussed how the proposal was developed and how it was defended in Washington D.C. Once again, the participants were reminded of the objectives of the project. He also enumerated the accomplishments of the team for its past year of implementation which included - Orientations, trainings, various feeding trials, broiler and hog productions, establishment of a demo facility, fish meal processing and feed production, fish catching, reconnaissance survey, and various laboratory analyses. As a closing and to set directions for the workshop, he discussed the activities that have yet to be done such as 2nd cropping of hogs, broiler production, heavy metal analysis of hog flesh, Tilapia feeding trial, organizing the Public Disclosure Forum and final report writing and publication. The second resource person, Mrs. Florita Moredo discussed the financial status of the project. She explained all of the transactions that were made while implementing the project. She also made mention of the regular auditing that is being done by the Auditor in the person of Mr. Librado Mercado, in this way she assured the body that the budget is being properly utilized and all are in accordance with the approved project implementation plan. The student, Ms Mary Joy Olut, who did the study on Broiler Production entitled “Feeding Value of Janitor Fish Meal in Broiler Diet” also presented the results of her study. As a major result of the study, it was found out that the higher the amount of janitor fish meal mixed in the feeds, the better the performance of the broilers. Some minor comments were made by the members of the project team and she was asked to submit her final manuscript as soon as possible. She also informed the body that said study was nominated for Best Undergraduate Thesis and deliberations will be done in Boracay in October of the current year. Engr. Rod Adricula was asked to give some insights on fish meal and feed industry production. He aired his sentiments regarding the profits that could be generated from making the janitor fish into fish meal considering the resources involved in the process. He also made mention of the capacity of the equipment since it could only produce so much that it could not compete with the market in terms of quantity. It was made clear however, that such equipment was solely for demonstration and was not really designed to produce animal feed in a commercial scale. This was again emphasized by Engr. Allan Teope, the fabricator of the equipment, and he also mentioned the other features, and other potential uses of said equipment.

After all of the presentations and discussions were made, the participants identified the major issues and concerns which they thought needed to be discussed during the workshop proper. Following are the identified issues/concerns:

1. What are the plans for the remaining months of project implementation? 2. Are we to extend the project until June 2007? 3. What to do with the cooperators who failed to meet the expected outcome (e.g.

Mrs. Editha Ortega)? 4. How many cropping periods would be committed to the cooperators? 5. How could we improve the collection/catching of janitor fish? 6. Are we to proceed with the heavy metal analysis of different fish species and

different parts (edible, inedible) of janitor fish? 7. Are we going to pursue on qualifying (Assay) the traces of Chromium found in

the chicken samples? 8. Up to what extent do we plan to disclose the results of the project? (Scale of the

PDP) 9. Are we to produce high-density feeds for the 2nd cropping? 10. What are we going to do with the money transferred/deposited to SRRMFI

account? 11. What other livelihood programs could we offer to the cooperators?

The workshop on the second day was done by dividing the participants into four (4) groups. Each group was given a set of questions and concerns that were listed. The output of each was then presented to the body for further inputs, comments and/or recommendations. Attached herewith is the copy of the matrix of the said outputs including the timeframes and focal persons for each activity. Prepared by: SIGNED SIGNED Marivic Alcaraz Melody Laurente SIGNED

Haidee Piniero

ANNEX 8

LAGUNA LAKE DEVELOPMENT AUTHORITY COMMUNITY DEVELOPMENT DIVISION

January 5, 2007

For : The Division Chief III / Project Leader From : Project and CDD Staff Subject : Status Report re: Guidelines for the Use of the JFP Trust Fund and Remaining Activities of the Project A meeting with the Siniloan River Rehabilitation & Management Foundation, Inc. was organized to discuss the details of drafted guidelines (Please see attached document for your reference) on how to establish and use the trust fund that will be generated from the proceeds of the livelihood activities under the Janitor Fish Project. Five representatives of the SRRMFI- Engr. Rod Adricula, President; Engr. Isidoro Realeza, Vice President; Mrs. Onesima Egargue, Treasurer; Councilor Felipe Em and Mr. Ed Colladilla attended the said meeting. As the group discuss and scrutinize the drafted guidelines, the following issues and concerns were raised:

• The source of the seed money for the trust fund that will be established. - It was explained to them that the seed money for the trust fund will come mainly

from the capital invested and 30% profit share from the experimental and livelihood activities done during the project life. The seed money is expected to be about P700, 000.00 by the time the project formally ends in June 2007.

• On which account will the trust fund be deposited? On the existing bank account of the

SRRMMFI or on a new separate account that will be specifically used only for the said trust fund?

- Mr. Isidoro Realeza suggested depositing the trust fund on a separate account to easily monitor the disbursement of the trust fund and the interest earned from the deposited money. However, Engr. Adricula suggested inquiring the bank first on the advantage of putting the seed money on a separate account and depositing it as trust fund.

• Management and monitoring of livelihood acitivities.

- Regarding the projects and activities that could be funded listed on Atricle 4 of the draft guidelines, they said that since all the members are just volunteers in the foundation, they fear that no one will assume the responsibility of managing and constant monitoring of the livelihood activities. If this would be the case, they will need to hire a full time staff that could man the task which will cost them a lot. It was explained to them however, that the purpose of including livelihood activities on the guidelines is to replenish the trust fund.

- Engr. Adricula said that considering how small the seed money would be as compared to what was expected before, it is too risky to finance such activity because it will entail big investment yet the return on investment and the

ANNEX 8

investment itself would take a period of time to replenish the fund to be enough to finance other activities/ projects such as river clean-ups.

Upon discussion, the idea of identifying and funding a major project that would have a long term impact on the environment arose. The group is of the opinion of expending the fund on this rather than establishing a trust fund. In accordance to what has been agreed upon during the planning worshop regarding the use of the fish meal plant an feed mill equipment as demo facility, it was suggested by Engr. Adricula to donate the said equipment to an institution that could really maximize its use such as the Laguna State Polytechnic College (LSPC) in Siniloan wherein the nature of specialization is in Agriculture and Fisheries. According to them, this would be very beneficial to the students because as of now the said institution does not have their own demo facility of even a simple feed mill and needed to visit the nearest feed mill establishment in the area just to see an actual feed mixer. By donating the equipment, it will also be possible to continue the study on finding other beneficial uses for the janitor fish. On another matter, Engr. Adricula also suggested to have another trial on hogs to really determine the source of the accumulated Mercury found on hogs raised under the experiment done at UPLB. According to him, the result of the last laboratory analysis is only a one-time sampling and exclusive to the study at UPLB hence we cannot depend on this in concluding that janitor fish is not safe as feed ingredient for hogs. This is very necessary for the project to know the source of Mercury and to have a concrete answer on whether or not the janitor fish is safe as a feed ingredient on hog diet or other animals with a longer production cycle. Please find our recommendations below regarding the concerns raised during the meeting and other matters necessary to be addressed immediately:

• Regarding the use of the equipment, we are also of the opinion that it would be better to just donate the fish meal and feed mill equipment to an institution such as LSPC to maximize its use and to ensure that somebody will take the responsibility of maintaining and using it for a good cause, since the SRRMFI directly said that they cannot manage to continue the operation and maintain the said equipment.

• For the hog trial, we are suggesting to have the water used at UPLB Farm be analyzed to pin point the source of Mercury and clear out things about the safety of janitor fish as fish meal. If the analyzed water were positive beyond the standard level for Mercury, we will then proceed with another experiment on hog but this time we will engage only one cooperator with suitable and appropriate number of pens for the trial that will be made. The purpose of this trial is to conclusively say if janitor fish meal is safe as feed ingredient for animals with a longer production cycle. However if the analyzed water were negative for Mercury, we would not proceed with another experiment on hog and could then conclude that the accumulation of Mercury on hogs was due to the accumulated negligible amount of mercury found on janitor fish meal (<0.00045 ppm).

• Based on the decision made during the meeting, the money will no longer be established as trust fund rather it will be utilize to finance a major project that would have long term impact on the environment provided that it is profit generating to replenish the said fund and ensure its sustainability. The project is yet to be identified and approved by the foundation with the guidance of the Project staff.

ANNEX 8

• For the broiler production-as it was agreed upon last year, the second production period in Cardona will be scheduled as soon as the fish meal plant and the feed mill operation resume.

• Foliar fertilizer- An initial consultation with Dr. Cosico of UPLB Soils Department about the mineral analysis result of the janitor fish extract (through boiling and spin drying) was made. He suggested altering the liquid extraction process to have a more concentrated sample. The concentrated janitor fish extract (extracted through granulating and spin drying the raw janitor fish) was submitted to the laboratory for another round of analysis.

• Rapid reconnaissance survey- an initial survey on the degree and area of proliferation of janitor fish was done through written interview in some areas in Laguna last Dec. 19, 2006. The schedule of survey on other areas along the Laguna Lake are as follows:

Area Date

Manila (Muntinlupa, Taguig) January 22-26, 2007 Rizal (including Marikina and Montalban) January 29- February 2, 2007

The consolidated result of the survey will be available upon the completion of the survey. Schedule for the gathering of samples will be set also during the survey.

For your information and further instruction. SIGNED SIGNED Marivic Alcaraz Melody Laurente SIGNED SIGNED Susan Tolentino Roman Corpuz