I. Development Background/Context

The islands of Masbate lie exactly in the center of the Philippine archipelago. It is

Composed of 20 municipalities and one component city, divided into 3 congressional

districts. It has a Total land area of 4151.78 sq. kms.roughly 23% of the Bicol region and

over 1% of the national land area.Masbate is basically an agricultural province.

Coconut, Rice, Corn, Cassava, Mango are its main agricultural products. Considered as

livestock champion of the Bicol region, it is a source of live animals like goat, cattle and

carabaos. Masbate has rich and diverse marine and coastal resources.

Like most of the provinces nationwide, Masbate faces issues and challenges in the

agricultural sector. Declining livestock inventory, decreasing total farm areas due to land

conversion, ecological degradation, massive illegal cutting of forest and coconut trees,

high cost of agricultural inputs resulting to low productivity, occurrence of typhoon and

other natural calamities are on top of the list. Inadequate post-harvest and farm

machineries, insufficient agricultural support, Poor road network,Limited research and

development endeavors, hindered the development of the agri-fishery sector and

agribusiness in the province.

II. Development Vision and Framework of the Province

By 2038, the Province of Masbate envisions to become a premier agriculture,

fishery and eco-tourism hub governed responsibly and propelled by empowered and God-

loving citizens to promote the common good and to restore ecological integrity within a

framework of sustainable social and economic development.

In consonance with the national goal of attaining food security, self-sufficiency

and increased productivity, The province of Masbate has exerted efforts towards

sustainable agricultural development. In collaboration and strong partnership with lead

agencies like Department of Agriculture and its attached agencies, PCA, DOST,

TESDA and other government entities, promotion of entrepreneurship, value adding

technology, maximizing profitability, application of appropriate technology, provision of

post-harvest facilities and farm mechanization has been undertaken. Institutional

development is also given importance. Strengthening of farmers associations and

capability building are being conducted to empower farmers. However due to limited

funds, these goals are not fully materialized.

III. Priority Commodity Chains Development

A. Commodity Profile

The Philippines ranked 9th

among all coconut producing countries with a total of

3,562,000 hectares of land area planted with coconut which is about 25% of the total

agricultural lands in the country, and with average production of 15.31 billion nuts

per year from 2007-2011. 70% of the total coconut production is absorbed by the

international market while 30% accounts for domestic consumption.

At the regional level, the Bicol Region has a total of 453,501 hectares of coconut

production area with 35,651,678coconut bearing trees and a total production of

1,240,459 metric tons with average production growth rate of 1.14% in the year 2012.

The province of Masbate has a total of 95, 629 hectares of coconut production area

with 8,023,587 coconut bearing trees and a total production of 317,015 metric tons.

Masbate’s growth rate of production is .57% which is lower than regionalaverage of

1.14%.

All the municipalities in the province were subjected to assessment using the

Expanded Vulnerability and Suitability Analysis (E-VSA) created by DA-PRDP with

reference to Bureau of Soil and Water Management (BSWM).The E-VSA involved

analyzes of the vulnerability and suitability of priority commodity production areas

and weighted againstselected two indicators which are critical to identification of

priority areas among all the municipalities in the province. The indicators used are

poverty incidence and coconut land area.

The result shows the ranking of municipalities which was made basis in the

identification of areas for development.

B. Investment Plan

Value Chain Analysis (VCA) for Coconut Charcoal

The analysis of the value chain is an essential step in agriculture development

because it helps determine the current situation of the commodity or the current

Expanded Vulnerability and Suitability Analysis

Indicators: Poverty Incidence and Coconut Land Area

REGION PROVINCE MUNICIPALITY

POVERTY_ACTUAL

_DATA

COCONUT_LAND_AR

EA_ACTUAL_DATA

OLD_COMPOSITE

_INDEX OLD_RANK

NEW_COMPOSITE

_INDEX

NEW_RA

NK GEOCODE

Bicol Region (Region V) MASBATE PLACER 47 12347 0.5523 1 0.74785 1 54117000

Bicol Region (Region V) MASBATE CATAINGAN 42 7705 0.5033 8 0.60577 2 54105000

Bicol Region (Region V) MASBATE PIO V. CORPUZ 44 5623 0.5084 7 0.5756 3 54116000

Bicol Region (Region V) MASBATE CAWAYAN 48 2892 0.5508 2 0.56038 4 54106000

Bicol Region (Region V) MASBATE MILAGROS 45 3397 0.5244 4 0.54325 5 54112000

Bicol Region (Region V) MASBATE ESPERANZA 46 3239 0.5206 5 0.54286 6 54109000

Bicol Region (Region V) MASBATE MANDAON 41 4082 0.5247 3 0.5384 7 54110000

Bicol Region (Region V) MASBATE BALUD 43 713 0.5137 6 0.47412 8 54103000

Bicol Region (Region V) MASBATE AROROY 46 10330 0.4539 14 0.65309 9 54101000

Bicol Region (Region V) MASBATE PALANAS 40 9864 0.4605 13 0.61866 10 54115000

Bicol Region (Region V) MASBATE USON 43 8037 0.485 11 0.60806 11 54121000

Bicol Region (Region V) MASBATE SAN JACINTO 39 9300 0.4473 17 0.59592 12 54119000

Bicol Region (Region V) MASBATE DIMASALANG 41 7562 0.4866 10 0.58982 13 54108000

Bicol Region (Region V) MASBATE CLAVERIA 47 7047 0.4427 18 0.58574 14 54107000

Bicol Region (Region V) MASBATE SAN PASCUAL 53 5555 0.4286 19 0.57678 15 54120000

Bicol Region (Region V) MASBATE MONREAL 45 6260 0.453 15 0.56552 16 54114000

Bicol Region (Region V) MASBATE BALENO 40 8316 0.4108 21 0.56246 17 54102000

Bicol Region (Region V) MASBATE MASBATE CITY 29 7161 0.4889 9 0.52624 18 54111000

Bicol Region (Region V) MASBATE SAN FERNANDO 38 5284 0.4479 16 0.51019 19 54118000

Bicol Region (Region V) MASBATE BATUAN 37 4073 0.4652 12 0.4896 20 54104000

Bicol Region (Region V) MASBATE MOBO 37 4127 0.4262 20 0.47119 21 54113000

condition in the industry that will facilitate identification of opportunities, constraints

and issues.

The VCA prepared by the Regional Core Planning Team (NCPT) provides an in-

depth analysis of the coconut charcoal productionparticularly in the province of

Masbate such as product flows -involving data on the actors per segment or functions

in the chain and determines the most important actors within the value chain, process

flow, costs involved, most value added to the value chain and end markets -market

analysis which assess the value chain growth and competitiveness.

PCIP Matrix Masbate: Coconut Charcoal Production

Value Chain

Segment:

Key Gap/ Constraint in

VC Development in

the Province

(from the national &

regional VCA results)

Brief Description of

Potential Intervention

(subprojects: enterprise

or infrastructure,

business enabling

program, etc.)

Target Result/

Outcome

(including # of

farmers/ fisher folk

reached, if

applicable)

Target Areas to

be covered

(Mun. &Brgys.)

Proposed Lead

Player (& Other

Players for

subproject

Implementation)

Estimated

Project

Cost

Risk & Risk

Management

Remarks Rank

Input supply The whole nut mode

of selling reduces the

supply of coconut

shells

Limited buying stations

for coco shell

Inactive SCFOs

Indiscriminate Cutting

of coconut trees

Imposition of

Transport fee on

wholenut and

charcoal

Establishment

of wholenut/

coco shell

buying stations

through

farmers

organizations

Strengthening of

existing SCFOs and

conduct capability

building training

Strict implementation

of RA 10593 ( coconut

preservation act )

Planting/replanting of

Organized all coco farmers organizations and established their buying stations All existing inactive SCFOs reactivated , trainings conducted Illegal cutting of trees regulated Increased number of coconut trees

5 priority mun. 5 priority mun. 100has./mun. 5 proritymun. 5 priority mun.

sp PCA DTI/PCA/LGU Provincial Agriculture Office/PCA Provincial Agriculture Office/PCA PCA

Php3M Php1M Php1.5M

5 proritymun.

coconut trees

Processing Production is

household level, low

quality / production

(open pit)

Charcoal makers are

not organized

Current technology in

carbon production has

lots of dirt and

impurities , high

moisture content

which are a major

concern for buyers

that make activated

carbon

Provision of drum-

based charcoal

processing facility for

household level

production

Organization of

charcoal makers

association/

cooperatives

Upgrade charcoal

making and briquetting

Establishment of

efficient processing

facility and technology

Improved quality and increased volume of production Associations/ cooperative organized High quality product is ensured Carbonization process achieves better recoveries High quality and increase income

5 priority mun. 5 priority mun. 5 priority mun.

PCA. OPAG PCA / OPAG PCA/DOST, DA /

OPAG Philmech,

Academe

Php15M Php200 Php15M

No appropriate

processing

facility/technology

Charcoal briquette

operators lack

trainings on proper

briquetting

2-4% charcoal become

dust accumulated over

the years –unsold

Provision of

charcoal crusher

equipment

Provision of

Carbonizer

Establishment/

construction of

Charcoal center

facility

Capability

building

Conduct training on

charcoal briquetting,

provisions of

equipments

Charcoal crusher

provided

Carbonizer

provided

charcoal center

facility established

Trainings

conducted

Trainings

conducted,

briquetting

equipments

provided

5 priority mun. 5 priority mun.

PCA/DOST, DA

Philmech,

Academe

DA-PRDP

PCA/DOST

Php5M Php25M Php5M Php500

Assembly

Transformation Low price value of

charcoal due to non-

Implement enterprise

program on value

Increased value of charcoal

DTI/DOST Php3M

standard processing

adding/upgrading to

charcoal briquettes

Provision of equipment

for processing charcoal

briquette

Charcoal briquette processing equipment provided

Php5M

Marketing Unstable supply/ price

of charcoal (middle

man)

Institutionalize

producer/pooling and

consolidation of

produce (no middle

man)

Stable supply of charcoal, increase in price

DA -AMAD/PCA

Php1M

Final Market

Support Services:

Logistics Access roads become

un-passable during

rainy season making

transport cost

expensive

Concreting of FMRs FMR Concreted Placer ( 18.15 kms) Cawayan (1 km) Esperanza (7 km) Pio V. Corpus (2 km) Uson (4 kms)

PEO, OPAG, PPDO DA-PRDP

282Million

IV. Institutional Arrangements for PRDP-funding

Implementation/Implementation Supervision

The implementation of the projects and activities identified in the Provincial Commodity

Investment Plan shall be undertaken by the Provincial Government of Masbate being the main

partner of the Department of Agriculture under the PRDP and the main proponent of the program

with the assistance of partner national and local government agencies. The implementation of

such projects and activities shall be under the direct supervision of the Provincial Project

Management and Implementing Unit (PPMIU) by virtue of Executive Order No. 06 series of

2014.

Organization and Management

The PPMIU of the province of Masbate under the PRDP is composed of the following:

PRDP Program Coordinator : Ramon B. Marcaidalll

Provincial Planning & Development Officer

PRDP Asst. Program Coordinator : Nilo S. Condor

Provincial Engineer

Project Coordinators

I-PLAN - Investment for AFMP Planning at the Local and National Level

Technical Head : Adonis C. Dilao

Asst. PPD Officer

Members : Wayne F. Laurio

OIC – Office of the Provincial Veterinarian

Cecilia F. Burgos

OIC – Office of the Provincial Agriculturist

Ralph N. Bacolod

Engineer lll - PEO

Roberto S. Leyco

PDO lll - PPDO

Graciana M. Tagnipez

Supervising Agriculturist – OPA

Arsenio B. Aguilar

Planning Officer ll – POENRM

I-BUILD - Intensified Building Up of Infrastructures and Logistics for Develop

Technical Head : Nilo S. Condor

Provincial Engineer

Members : JonelOrteza

Supervising Agriculturist – OPA

: Ralph N. Bacolod

Engineer lll – PEO

Adriel A. Balingasa

PDO lV – PPDO

Reno V. Alerta

Computer Programmer II - PPDO

Rommel P. Ramirez

CAD Operator - PEO

I-REAP - Investment in the Rural Enterprises and Agriculture and Fisheries

Productivity

Technical Head : Cecilia F. Burgos

OIC – Office of the Provincial Agriculturist

Members : Conrado O. Pasiona

Agiculturistll – OPA

Jaime A. Basas

Agriculturist ll – OPV

Irish B. Cabrera

Agriculrural Technician – OPAG

Rita M. Gallego

Agricultural Technician – OPA

Eleno A. Castillo

Special Agent 1 - POENRM

I-SUPPORT - Support to Program Implementation

Technical Head : Nilda A. Tinegra

Provincial Treasurer

Members : Ma. Jocyline P. Roma

OIC – Provincial Budget Officer

Leonor R. Agunias

OIC – Office of the Provincial Accountant

Merien C. Esber

Provincial Information Officer

Natividad C. Uy

Computer Programmer ll - POENRM

The Provincial Project Management and Implementation Unit (PPMIU) shall have the following

functions;

For I - PLAN

Identification of Priority Commodities

Formulation of Provincial Commodity/ies Investment Plan

Strengthen the framework and linkages for the delivery of devolved but

integrated Agriculture and Fishery services through the institutionalization

of Provincial Commodity/ies Investment Plan as the basis for the

rationalization of Department of Agriculture (DA) plans and budgets

Coordinate with Provincial Core Planning Team on Planning, Programming

and Budget execution process

For I - BUILD

In charge of planning, budgeting, procurement and implementation of infra

subprojects

If relevant, may enter into appropriate covenants with MLGU/BLGU and

private sector to implement PCIP which form part of Subproject

Implementation Management Agreement (SPIMA)

For I - REAP

Serve as management and supervision team and focal point for I - REAP

implementation

Assist RCPO in prioritizing enterprises based on PCIP and the proponent in

preparing business plan

Prepare EIP and IMA, and execute MOA with proponent

Develop partnership with agencies on business development services,

research and extension

Monitor and provide regular reports on I – REAP implementation

Develop capacity building proposals to strengthen capacities of LGU in

providing technology, information and enterprise development support to

agri-fishery sector players

For I - SUPPORT

Support to Program Implementation

Monitoring and Evaluation

A web-based monitoring and evaluation system as well as the use of geo-tagging technology

shall be employed in the implementation of projects under the PDRP.

During the implementation period, the I-BUILD and I-REAP Project Coordinators of the PPMIU

shall prepare progress report to be submitted to the Regional Project Coordination Office

(RCPO). The RPCO will analyze progress and submit report to the Project Support Office

(PSO)and the PSO will submit report to the National Project Coordination Office (NCPO) of the

Department of Agriculture.

Safeguards

The implementation of projects under the PRDP will undergo a process that will ensure that

mitigating measures will be employed to prevent adverse social impacts brought about by the

implementation of the projects.

Social and Environmental Safeguards

Social Safeguards Aspect in the Subproject Stages

Securing of Required Documents for Social Safeguards (Part of FS)

Identification of adverse social impacts and mitigating measures

Compliance with planned mitigating measures against adverse social impacts

V. PDC and SP Resolution