Project Evaluation of the Scaling Up Risk Transfer Mechanisms for Climate Vulnerable Agriculture-based Communities in Mindanao Project

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Evaluation Plan:
2012-2018, Philippines
Evaluation Type:
Final Project
Planned End Date:
02/2018
Completion Date:
01/2018
Status:
Completed
Management Response:
Yes
Evaluation Budget(US $):
20,000

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Title Project Evaluation of the Scaling Up Risk Transfer Mechanisms for Climate Vulnerable Agriculture-based Communities in Mindanao Project
Atlas Project Number: 00076666
Evaluation Plan: 2012-2018, Philippines
Evaluation Type: Final Project
Status: Completed
Completion Date: 01/2018
Planned End Date: 02/2018
Management Response: Yes
Focus Area:
  • 1. Environment & Sustainable Development
  • 2. Others
Corporate Outcome and Output (UNDP Strategic Plan 2014-2017)
  • 1. Output 2.5. Legal and regulatory frameworks, policies and institutions enabled to ensure the conservation, sustainable use, and access and benefit sharing of natural resources, biodiversity and ecosystems, in line with international conventions and national
SDG Goal
  • Goal 11. Make cities and human settlements inclusive, safe, resilient and sustainable
SDG Target
  • 11.5 By 2030, significantly reduce the number of deaths and the number of people affected and substantially decrease the direct economic losses relative to global gross domestic product caused by disasters, including water-related disasters, with a focus on protecting the poor and people in vulnerable situations
  • 11.b By 2020, substantially increase the number of cities and human settlements adopting and implementing integrated policies and plans towards inclusion, resource efficiency, mitigation and adaptation to climate change, resilience to disasters, and develop and implement, in line with the Sendai Framework for Disaster Risk Reduction 2015-2030, holistic disaster risk management at all levels
Evaluation Budget(US $): 20,000
Source of Funding: Project funds
Evaluation Expenditure(US $): 20,000
Joint Programme: No
Joint Evaluation: No
Evaluation Team members:
Name Title Email Nationality
Roberto Ma. R. Arquiza
GEF Evaluation: Yes
GEF Project Title: Scaling up Risk Transfer Mechanisms for Climate Vulnerable Agriculture-based Communities in Mindanao
Evaluation Type: Terminal Evaluation
Focal Area: Climate Change
Project Type: FSP
GEF Phase: GEF-5
GEF Project ID: 4967
PIMS Number: 5076
Key Stakeholders: PCIC (Central office, Region X and XI), DA, PAGASA, BSWM/DA, PhilRice, CCC, AGFP, ACPC, ATI/DA,
Countries: PHILIPPINES
Lessons
1.

The use of target indicators, more particularly the number of farmers should consider the type of agricultural financial support on production as the WIBI insurance product is intended to be included into a financing package. 


2.

Ensuring successful collaborative partnerships between and among government agencies require formal agreements. 


3.

The conduct of assessments and studies must verify if further actions is needed, whether this be policy-related or action-related, as these could largely contribute to a higher level of attainment on outcomes and objectives. 


4.

Finally, gender mainstreaming goes beyond an active effort of engaging women’s participation in Project activities but includes an understanding of their roles in decision-making and in agricultural activities.


Findings
1.

3.1   Project Design / Formulation

3.11     Analysis of Results Framework (Strategy, Indicators)

The design of the Results Framework started with the Project Document clearly illustrating the country’s situation amid climate change that made difficult alleviating persistent poverty among vulnerable agricultural households, especially in Mindanao that is dominantly agricultural and considered the food basket of the country, thereby threatening food security. The identification of barriers or problems through long-term solutions defined existing conditions that affected agricultural productivity.


Tag: Agriculture Crop production Food Security Rural development Climate Change Adaptation Programme/Project Design Results-Based Management

2.

The need to address this logically led to the strategic interventions of rolling out climate risk-transfer mechanisms, productivity enhancement measures, and climate change awareness raising and institutional capacity building – grounded on previous local pilot crop insurance projects, and the wealth of experience in the country’s disaster risk-reduction management. The enumeration of activities to attain targets and planned outputs depicted a strong causal relationship towards achieving the Project objective of reducing poverty through strengthened resilience in vulnerable and climate-risk agricultural communities.


Tag: Crop production Climate Change Adaptation Disaster Risk Reduction Poverty Reduction Awareness raising Capacity Building

3.

The decision to design the Project built on baseline activities of the national government on its disaster risk management and climate change adaptation and, in consideration of the strengths and weaknesses of both the CCAP and PhilCCAP pilot projects that previously tested the technical feasibility of WIBI and towards the strengthening of the institutional capacity of PCIC is exemplary. This ensured continuity and expansion of WIBI to move forward beyond its current infancy stage in the local crop insurance industry.


Tag: Climate Change Adaptation Disaster risk management Programme/Project Design Capacity Building National Institutions

4.

The formulation of baseline indicators and end-of- project targets for Project Objectives and Outcomes were examined. The objective stated that poverty reduction as the ultimate goal with the baseline and end-target indicators focused on determining a reduction of damage rates on palay production were indeed laudable. But this would have required huge resources for a baseline survey of target beneficiaries at Project start. The absence of any indication that data was available on damage rates before and towards Project end indeed proved that this was a difficult and complex task. However, considering the relatively short timeframe of the intervention, and the knowledge on the absence of a damage rate database despite its inclusion as values in the project document, the use of payouts as an indicator of effective risk reduction transfer proved more useful. As correctly pointed out, GAP reduces damage rates and is more useful in a ‘loss-adjustment based type of crop insurance as in ARBY, but not for a WIBI product.


Tag: Crop production Programme/Project Design Results-Based Management Poverty Reduction Data and Statistics

5.

The determination on the acceptable least number of families covered by the WIBI Project appeared to be justified. The decision was based on the discussions during the regional inception workshop that reduced it from the 3,000 original target, and should payouts exceed the targets, the target will be subsequently returned to its original target but contingent upon Project Management decision and if recommended by the mid-term evaluation.


Tag: Programme/Project Design Results-Based Management

6.

Although not indicated in any document, it is believed that the appropriate simpler approach utilized during the inception stage was to identify the palay and corn producing areas without WIBI coverage that are reached by the 20-30 kilometer radii of all PAGASA automatic weather stations (AWS) in Regions X and XI did establish the baseline universe of target villages and farmer-households. Such being the case, the indicator “% of population covered by WIBI mechanism” and end-target of 2,000 families would prove more meaningful and justifiable. However, there was no final proportion of the population that was computed.


Tag: Programme/Project Design Results-Based Management

7.

The respective indicators and end-of -project targets for outcomes 1, 2, and 3 were basically logical and acceptable; and, their corresponding outputs and activities would lead to the attainment of these targets. The formulation of Project objectives and planned outcomes fully conformed with SMART. Specific change language were used such as: reduced damage rate; families covered by WIBI (from no families); application of AGFP (from no incentive mechanism); PCIC ready to start pilot testing (from PCIC not ready); farmers and farmers associations trained on resilient agricultural techniques. On Measurability – the indicators included quantitative targets of 2,000 families, % of population, reduction of damage rates of between 2% to 6%; and, qualitative targets such as those mentioned in the above specific changes. On Achievability – the Project relied on the mandates of its respective Implementing Partner, i.e. PCIC, and responsible parties, e.g. ATI, PAGASA, others.


Tag: Programme/Project Design Results-Based Management

8.

3.12     Assumptions and Risks

The Project Document enumerated the assumptions and risks in the Results Framework, and a Risk Log was developed and included as Annex III of the Document. The Risk Log identified a total of nine (9) risks and their type, and their respective management responses and countermeasures, the degree of impact and probability of a risk occurring, the responsible party/ies who can address the risk, and who and when the risks were identified. The inception workshop provided no indication on whether the risks and assumptions were presented and discussed or, was outright accepted by all parties. The risk log was evidently developed prior to the inception workshop, submitted, and updated solely by the Project Manager, thus may be bereft of any ownership among partners and parties of the Project.


Tag: Programme/Project Design Results-Based Management Risk Management

9.

A more thorough presentation and discussion among stakeholders could have enriched the identification of the assumptions and risks, especially when the pilot project is engaging several government agencies. Risks on resource availability, priorities, and even differing bureaucratic processes require immediate strategic management responses and commitment early on, preferably during the inception phase. However, the identification of assumptions and risks in the results framework and the inclusion of management responses and countermeasures in the risk log showed that it is expected that these assumptions will most likely occur, and the anticipated risks needed to be addressed in order to successfully attain Project objective.


Tag: Project and Programme management Results-Based Management Risk Management

10.

Technically speaking, assumptions should refer to situations, events, conditions or decisions which are necessary for the success of the project, but which are largely or completely beyond the control of the project's management; and, conversely for statements attributed as risks. Given this, there were several assumptions that are in fact risks, and vice-versa. For instance, in Project objective, the financial allocation of government resources is incrementally reduced, affecting provisions for agricultural service extensions” is rather an assumption. And, so is the “bureaucratic and political process delays the approval/endorsement of the modifications in AGFP rules”. Another assumption that could have been included would be farmer-beneficiaries lack of access to formal lending due to their weak adsorptive capacity. This could prepare alternatives in the roll-out of WIBI should a possible low level of engagement by the Financial Service Providers occur.


Tag: Government Cost-sharing Project and Programme management Risk Management

11.

3.13     Lessons from Other Relevant Projects (e.g., same focal area) Incorporated into Project Design

The Project Document did present other relevant projects to highlight lessons learned from the PhilCCAP and CCAP pilot projects, and incorporated into the Project design and its formulation. CCAP was implemented in Agusan del Sur (Region XIII, Mindanao) in 2009-2011 and pilot-tested WIBI as part of an integrated financial package that included credit, savings, and life insurance. The pilot project was implemented in partnership among ILO, DA, PCIC, PhilRice, ATI, DTI, and DOLE. WIBI covered 2 crops, rice and corn. CCAP made an assessment on the correlation between the historical record of rainfall and average crop yields, crop water requirement for each growth stage of the crops, and subsequently computed the thresholds that can trigger payments.


Tag: Crop production Knowledge management Programme Synergy Programme/Project Design

12.

PhilCCAP on the other hand, also pilot -tested WIBI but on a smaller scale than CCAP, but focused more on other WIBI-related activities more particularly on: research to establish reliable weather-crop-yield indices; create insurance contracts based on the indices; test operational procedures; educate farmers; evaluate the pilot activity; and, its replicability to other sites. The pilot project also assisted in developing the Farmer’s Decision Support System and strengthening the “enhanced climate-smart farmer’s school”.


Tag: Agriculture Crop production Knowledge management Programme/Project Design

13.

Similar other programs also lent impetus to the design of the Project. MIPSS offered critical lessons in pilot-testing an area -based yield index insurance (ARBY) that is issued against the average yield for a region. It also built the knowledge base of PCIC as it was able to reinsure the loan portfolio against extreme weather events. Thus, ARBY and WIBI were deemed complementary.


Tag: Agriculture Crop production Knowledge management Programme/Project Design

14.

The Project Document emphatically stated that this Project reflected the strengths and weaknesses of the WIBI products developed by these pilot projects. By combining the elements of climate risk-transfer mechanism with adaptation and promoting new WIBI product features that will cover a wider variation of climate risks, would thus offer farmers with greater vulnerability reduction while lowering the risk perception among FSPs.


Tag: Climate Change Adaptation Knowledge management Programme/Project Design Risk Management

15.

3.14     Planned Stakeholder Participation

In the Project Document, a baseline analysis on stakeholders identified their respective potential role and rationale for involvement, and their concomitant prospective benefits were enumerated in detail. Potential roles made specific reference to particular outcomes, outputs and activities whereas, the prospective benefits centered on stakeholders’ opportunity to improve their respective implementation and performance of their mandates. The potential roles have been earlier presented in section 2.5 of this report.


Tag: Partnership Programme/Project Design

16.

In annex 2 of the Document, the stakeholder involvement plan recognized the wide range of stakeholders composed of several government departments and offices, and academic and research institutions to implement and support the Project, and were tailor- fitted to the specific needs of the three outcomes. The other stakeholders also included local government units, financial service providers, NGOs and farmers. Project milestones over the 3-year period were also included.

The plan also stated that in general, stakeholder engagement in Project implementation will begin during the conduct of the inception workshop at the national level, and as well as site-level workshops in the target regions. Prior to the national inception workshop, there were indications the Project Document has undergone a series of prior consultations among stakeholders during the formulation of the Project design.


Tag: Implementation Modality Partnership Country Government Civil Societies and NGOs National Institutions Private Sector Regional Institutions

17.

The conduct of the Technical Working Group organizational meeting a week before (November 20, 2014) the inception workshop was the first major activity, and was able to successfully present most of the content of the Project Document, paving the way for a smoother conduct of the workshop proceedings. Thus, there were only a few proposed minor revisions to the overall project results framework.

A series of follow-up meetings after the inception workshop also ensued during the early part of 2015, with the conduct of regional missions/inception workshops further enhancing the contents and understanding of the Project Document, and solicited the commitments of most stakeholders to participate in the Project.

 


Tag: Partnership Coordination

18.

3.15     Replication Approach

Cognizance was made in the Project Document that the Project is the third in a series of pilot projects focusing on the development and advancement of weather index-based insurance. The technical feasibility of WIBI was tested by CCAP during 4 cropping cycles, i.e. 2 dry and 2 wet seasons; while PhilCCAP refined the thresholds, assessed the basis risks, and determine the final appropriate premiums. In both these pilot projects, PCIC was extensively involved.

Hence, this Project directly built upon these prior projects and replicating good practices, demonstrated the commitment of the Government to further develop WIBI by expanding its geographical and crop coverage, and by working with development partners and combining various donor support and funds.


Tag: Crop production Sustainability Ownership Country Government

19.

Several mechanisms and measures that this Project employed will enhance the potential for replication of Project results, most notably the following: the feasibility assessment to cover more non-rice and non- corn crops under WIBI; and, complementarily, the training of additional agencies for index setting for rice and corn and other crops. All this implies the readiness of WIBI for roll out will be largely enhanced.

 


Tag: Crop production Sustainability Sustainability

20.

3.16     UNDP Comparative Advantage

Extensive discussion on UNDP’s competitive advantage was contained in the Project Document starting with its long-standing experience with the Government in providing technical assistance and fund support on climate change especially on adaptation and disaster risk reduction with strong focus on capacity development and policy support. Among these were its support in the formulation of the INC and SNC, and the implementation of a series of CCA-DRM projects. Through all these projects, UNDP partnered with a host of government agencies and bodies, and this network provided strategic importance for this Project. One, bringing down to the community level the know-hows, experience, methodologies, and tools for disaster risk management that have been tested and proven, and the established partnership along the vertical chain of DRM institutions was crucial for effectively implementing Outcome 3. Two, UNDP’s long-standing partnership with the Climate Change Commission will facilitate effective uptake of lessons for future establishment of relevant policies or for scaling-up of best practices.

Finally, UNDP has been identified as one of lead UN agencies for UNDAF Outcome 4 “Adaptive capacities of vulnerable communities and ecosystems are strengthened to be resilient to threats, shocks, disasters, and climate change”.


Tag: Climate Change Adaptation Disaster Risk Reduction Partnership Country Government UN Agencies UNDP Management UNDP management Capacity Building Policy Advisory Technical Support

21.

3.17     Linkages Between Project and Other Interventions Within the Sector

As discussed in preceding sections, the Project built upon previous pilots on climate risk transfer mechanisms, disaster risk management capacity building and agricultural productivity enhancement trainings.

The Project was able to successfully acquire fund support from UNDP of US$1.6 million in parallel co-financing through the baseline Climate Twin Phoenix project that are also operating in Regions X and XI.

SCCF resources will be used to disseminate information on disaster risks produced by this Project to an additional number of barangays beyond those that have been covered by the Phoenix project. Moreover, the community-level awareness raising by Phoenix did not cover chronic risks brought by climate change thus missing on out on an important element on climate risk. This Project will therefore integrate this element in its community-based DRM awareness raising, as well as the aforementioned information dissemination.


Tag: Crop production Climate Change Adaptation Disaster risk management Communication Capacity Building

22.

3.18    Management Arrangements

The management arrangements were presented in detail in the Project Document and in accordance with UNDP’s National Implementation Modality (NIM), and was agreed upon in the project management implementation guidelines by both UNDP and the Government. It provided brief descriptions of the executive functions and respective specific responsibilities of various individuals and collegial bodies.

These included the functions of the Implementing Partner (IP), the Responsible Party (RP), the Project Board (PB), the National Project Director (NPB) who acts as the PB Chair, and the Senior Supplier (UNDP representative). And, the Senior Beneficiary (individuals or group of individuals representing the interest of those who will ultimately benefit from the Project, who is a PB member to ensure the realization of Project results from the perspective of the Project’s beneficiaries).

The Project Board is composed of seven permanent members representing the following offices: 1] UNDP; 2] PCIC; 3] DA-Office for Special Concerns; 4] DA-Systems-Wide climate Change Office; 5] NEDA; 6] PCW; and, 7] CCC.


Tag: Implementation Modality Project and Programme management

23.

The Project Management Unit (PMU) based in Manila, headed by a National Project Manager, and assisted by an Administrative Officer, a Finance Officer, and a Program Officer. The tasks of the PMU were also defined to: develop standard operating procedures for Project implementations; develop quarterly and annual work plan and budgets; provide financial and administrative management support; prepare quarterly and annual financial and technical progress reports – for submission to UNDP. Likewise, the PMU ensured compliance with applicable UNDP-GEF-SCCF-GoP rules and regulations. The specific functions and specific responsibilities of the PMU were well defined in the Document.


Tag: Human and Financial resources Project and Programme management

24.

3.2   Project Implementation

3.21    Adaptive Management, Including Changes to the Project Design and Project Outputs During Implementation

During the inception workshop in November 27-28, 2014, there were proposed changes to the Project Document, ranging from major ones, e.g. inclusion of another government agency, to minor ones. This showed the extent of management level of adaptability, degree of participatory planning, and openness to scrutiny.


Tag: Implementation Modality Programme/Project Design

25.

The changes that were made in the Documents appeared to have been of importance to ensure success of the Project. These changes included:

i]   The inclusion of the National Disaster Risk Reduction Management Council (NDRRMC) to CSCAND – Output 3.1;

ii]  Hiring of a Chief Technical Adviser with M&E background instead of an M&E Officer at the PMO sufficed in order to streamline cost and maintain budget efficiency; and, the terminal evaluation will likely augment the M&E requirement of the Project;

iii] Reduction of household targets from 3,000 to 2,000 based on the regional consultations done as this is more realistic considering Project resources may not be able to afford payouts at the original level – end-of-Project target; and,

iv] Change in the original Project start date (as discussed in section 2.2).


Tag: Human and Financial resources Monitoring and Evaluation Partnership Programme/Project Design Results-Based Management

26.

Changes of terminologies used were also done for accuracy, i.e. ‘Bureau of Agricultural Statistics’ to ‘Philippine Statistics Authority’ ‘national’ to ‘regional’ survey of 300 households as this will be conducted in Mindanao, ‘gender’- to ‘sex’-aggregated, and ‘improved’ to ‘reduced’ damage rates.


Tag: Gender Mainstreaming Programme/Project Design

27.

There were no changes on Project Outcomes and Outputs during implementation. However, changes were implemented on certain activities within some outputs. These changes were approved by the Project Board and included in the annual Project Implementation Reports, and are enumerated below:

  • Inclusion of Camiguin, being one of poorest provinces in Region X, although this was not realized;
  • No need to conduct survey for the correlation studies (Activity 1.3.2) per DOST-PAGASA, as yield data was available from responsible agencies i.e. PCA–coconut; SRA-sugar; BPI-banana, cacao
  • The conduct of Impact Assessment on FSPs by ACPC instead of hiring an external consultant; and the use of database of IRRI for establishing farmers’ decision support system (Outcome 3) – both of these incurred savings in Project expenditures
  • The creation of the position of communications associate (CA) to improve visibility in regional and national scale, replacing the position of technical assistant of Region XI;
  • The inclusion of PhilRice as a technical resource person of the Project Board in order to directly be accessible on technical concerns of the Project, and, thereafter most of the responsible parties were present during most Board meetings for the same purpose;
  • Exclusion of the conduct of the mid-term review; and, thereafter reallocating the budget instead to conduct additional activities in enhancing the WIBI product development, e.g. Demand Analysis-Willingness to Pay (WTP) and Premium Rate Determination – which were among the major recommendations made by the CTA;
  • Changes in the Project sites outside of Twin Phoenix project sites as the latter sites are usually located in urban areas whereas the Project sites are in rural areas;
  • Requirement to provide data analysis on reasons why farmers re-enrolled, and not re-enrolled in the WIBI program; and,
  • With the early departure of the National Project Manager on March 2017, the appointment of a Custodian deemed sufficient considering most of the Project outputs have been accomplished.

Tag: Implementation Modality Programme/Project Design Project and Programme management

28.

On risk management, the Project Board was also able to address the emergence of previously identified risks, by providing mitigating measures, namely:

  • (Outcome 1):
    • Use of the Crop Water Requirement approach as the new indexing method by PhilRice
  • (Outcome 2):
    • Removal of premium fees for year 1 to increase demand of farmers to enroll with WIBI;
    • No distribution of WIBI during El Niño from November of 2015 to June of 2016, and the formulation of a catch-up plan through accelerating the identification of new farmer beneficiaries in the target areas, the amendment of indices and underwriting and claims process, and engagement of financial service providers, conduct of literacy workshops (a prerequisite to avail WIBI) conducted weeks prior to June 2016 cropping enrollment;
    • The issuance of Special Orders from the Office of the DA Secretary requesting Philippine Coconut Authority, Sugar Regulatory Administration, and the National Food Administration to expedite the retrieval and furnish the Project with needed data for the correlation studies; and,
    • The resumption of indexing seminars in Regions X and XI 60 days after the proclamation of Martial Law in Mindanao on May 23, 2017.
  • (Project Management):
    • At the initiative of PMO, a Manual of Operations (MOP) was developed hence, should one key personnel resign or leave, the replacement will not have any difficulty in performing activities;
    • Developed a network of cooperative and eager collaborators and identified focal persons to foster multi-sector/inter-agency participation and ensured continuity of agreements and decisions among national agencies and between national and local actors to mitigate weak coordination during the initial year

Tag: Project and Programme management Risk Management

29.

3.22     Partnership Arrangements with Relevant Stakeholders Involved in the Country / Region

The Project Document was officially signed-off by the Department of Agriculture on April 28, 2014, and subsequently by the UNDP Country Office on May 28, 2014. With the National Project Coordinator only hired on October 15 of the same year, a flurry of organizational meetings with possible responsible parties were held prior to the conduct of the Inception Workshop on November 27-28, 2014. This was necessary in order to discuss partnership arrangements on the Project itself, among others.


Tag: Partnership Programme/Project Design Coordination

30.

The inception workshop was the first critical official activity as it was recognized during the technical working group organizational workshop (November 20, 2014) that the implementing parties largely composed of government agencies and offices have different mandates, hence it was necessary that all understood that they have a common agenda of participation. To make participation official, memorandum of agreements (MOAs) were signed and special orders were issued with each of the responsible parties after discussions were held on their roles and responsibilities on component outputs to be accomplished; and, the designation of their respective focal persons – all this paved the way for a smoother conduct of the approved activities of outputs.


Tag: Partnership Country Government Coordination National Institutions

31.

The appointment of focal persons by the implementing partners was also a step forward in allowing the Project Board to request their attendance during board meetings as resource persons. This provided the Board direct access with implementing partners to inform the former on critical issues and concerns requiring policy support and management decisions.


Tag: Project and Programme management Country Government Coordination

32.

Support for the WIBI Project was sealed with the signing of memorandum of agreements (MOAs) with partner banks and cooperative namely King Cooperative, Cooperative Bank of Misamis Oriental (CBMO) and Bukidnon Cooperative Bank (BCB). With the MOAs, this encouraged the borrowing farmers to access weather index-based insurance together with the loan amount. This is also linked with the effort of Agricultural Guarantee Fund Pool (AGFP) on giving preferential guarantee rates for partner banks who will have WIBI-enrolled farmers.


Tag: Partnership Private Sector

33.

Potential partnership arrangements with other private sector industry groups were also initiated, among these were with the following:

  • Inang Lupa Movement (ILM) initiated the discussion on integrating the weather index-based insurance (WIBI) as part of social safety net. Through this initial meeting, a strong potential for national level uptake of WIBI was presented.
  • Insurance Commission (IC) - Series of meetings have been conducted to discuss and explore opportunities for collaboration in promoting the participation in weather index-based insurance. The IC organized a meeting with affiliated private insurance companies who had been engaged in implementing weather index-based insurance (with wind speed as trigger) to impart the learnings and common challenges that these companies observed. The following organizations attended the said meeting: a) CARD Pioneer Micro-insurance; b) Bankers Assurance Corporation; c) Micro-insurance Insurance Brokers Philippines; and d) Western Guaranty Corporation.
  • Another effort of the WIBI Mindanao Project was to explore collaborative mechanisms with other GEF-supported projects in the Philippines. One of which is the link with the project called, "Implementation of Sustainable Land Management (SLM) practices to address land degradation and mitigate effects of drought" implemented by the Bureau of Soils and Water Management (BSWM). The collaboration will gain additional benefits for farmers covered by both projects. In addition, the technical staff of SLM Project, BSWM and farmer cooperators will gain additional knowledge; and, a potential increase of the number of adopters of SLM due to the inclusion of crop insurance for farmer cooperators.

Tag: Partnership Private Sector

34.

3.23     Feedback from M&E Activities Used for Adaptive Management

The Project Document has specified that M&E activities at the Project start would include the conduct of the inception workshop to be participated by all those with assigned roles in the organization structure, crucial in building ownership of the Project results, and to develop the 2015 Annual Work Plan. Several adjustments were made in the Project Document as a result of the inception workshop (previously presented in section 3.21).


Tag: Monitoring and Evaluation Ownership Programme/Project Design

35.

The monitoring of Project progress was also ensured through the preparation and submission of the quarterly and annual progress reports, the annual project implementation reports, the annual work and financial plan, field visit reports, and, the various reports coming from studies made by responsible parties. The Project Board met at regular intervals in order to be apprised of the progress arising from these reports, and of issues and concerns that required policy decisions. Finally, the M&E Plan was regularly updated in Atlas to track progress of key indicators and key management actions and events including field visits and Project Board meetings. The existence of Project reports, studies, training and IEC materials facilitated the conduct of the TE with ease with high level of information available.


Tag: Monitoring and Evaluation Project and Programme management Technology Data and Statistics

36.

Several adaptive management as a result of the monitoring of Project progress from the above- mentioned reports resulted to the following courses of actions that ensured Project accomplishment within the results framework, as follows:

  1. In early 2015, project management experienced delays and to overcome these, resorted to the drafting, revising and approval of memorandum of agreements (MOAs) with the responsible parties who have previously agreed to co-implement specific components of the project.
  2. With the MOAs all signed prior to the end of 2015, the Project Management Office (PMO) established an M&E tool or mechanism facilitated the timely and effective monitoring of the activities and target outcomes outlined in the MOA with responsible parties.

Tag: Monitoring and Evaluation Partnership Project and Programme management

37.

The creation of a Communications Associate resulted in the development and dissemination of IEC materials and sharing of knowledge. Materials included news articles and newsletters, creation of the Project website and Facebook page, Approved WIBI Product Guidelines for Rice and Corn, WIBI-Mindanao Promotional Video, Project Brochure, Component Briefs, Policy and Gender Briefs. Various WIBI studies performed by responsible parties were also reproduced for distribution to intended recipients


Tag: Communication Human and Financial resources

38.

3.24     Project Finance

The cumulative expenditures (general ledger) as of mid -2017 stood at US$836,396.25 or, 79.66%% of total approved SCCF funding of US$1.05 million. For the remaining 6 months of 2017, i.e. by Project end, the remaining amount of US$ 213,603.75 was expected to be fully utilized, thereby no overall Project savings nor cost overruns was expected. A summary analysis of the fund utilization is provided below: SEE TABLE


Tag: Efficiency Operational Efficiency

39.

From the above table, the distribution of budget amounts among Project components appeared appropriately allocated and well thought of as indicated in their respective variances ranging from 1.7% to 9.7%, either positive or negative. Analyzing closely the disbursement report for each budget line item (account code) for each component revealed the major sources of variances. This meant that the delivery mode of certain activities were altered, e.g. the use of individual consultants rather than consultancy firms (component 1), and the reprogramming of savings arising from the local and international consultancy to the production of information materials and conduct of capacity-building and planning activities (component 2), and the reverse for component 3.

All these were made possible through the exercise of adaptive management in allocating resources and responsive to changing demands in the level of intensity of planned activities. GEF-OFP even made the observation that the Project has accomplished high physical and financial ratings in terms of project delivery and management.


Tag: Operational Efficiency Procurement Project and Programme management

40.

Strong internal financial controls were in place. Two independent (2) spot checks in 2015 and 2016 were conducted to assist UNDP evaluate the validity of accounting records that supported cash transfers from UNDP. The findings and recommendations in 2015 were complied with, namely: liquidations approved by immediate supervisors; a Communications and Admin Officer was hired; official receipts issued to UNDP for funds received from UNDP and Authorization of Fund Transfer for funds received from Central Office; and, All disbursements were issued solely with WIBI Mindanao Project checks. The 2016 spot check report also recommended (with a corresponding risk and priority rating) the following: Withholding taxes should be remitted on time (medium); Proper allocation of expenses (low); and, Provision of justification and proper supporting documents (medium) – and management responded that it will fully comply.


Tag: Human and Financial resources Monitoring and Evaluation Risk Management

41.

Further, the Project was found to be compliant on the following: Completeness of information and the timeliness of the submission of FACE reports; PCIC maintained a separate non- interest bearing current account assigned to WIBI Mindanao Project at the Land Bank of the Philippines; Procedures existed for procurement of goods and services under the government’s Procurement Law R.A. 9184 and procurement guidelines as prescribed by the National Implementation Manual (NIM); Project Management Office (PMO) personnel hiring were coursed through UNDP; All disbursements and supporting documents were stamped “PAID” upon payment; and, Bookkeeper maintained a logbook in aid of monitoring the cash advances and a quarterly report submitted as part of its compliance to COA.

Requests were made with the PMO to provide the terminal evaluator with financial reports on the co-financing portion, but no such information were forwarded and received.


Tag: Human and Financial resources Monitoring and Evaluation Policies & Procedures Project and Programme management

42.

3.25     Monitoring and Evaluation: Design at Entry and Implementation (*)

The design of the M&E systems that were propounded in the Project Document and likewise during the inception workshop/report relied on standard UNDP requisites to include the Project Implementation Reviews (PIR), Quarter and Annual Progress Reports (QPR & APR), the Annual Implementation Reports (AIR), the Annual Work and Financial Plan (AWFP), and the use of Atlas. In addition, the inception workshop developed the Initial Activities for 2015 to fast-track implementation and perform catch-up considering that the start of Project was moved from April 2014 to November 2014.


Tag: Monitoring and Evaluation Project and Programme management

43.

Since the start of Project implementation in November 2014 and until the conduct of this terminal evaluation, and in compliance with the M&E framework plan in the Project Document and agreements during the technical working group planning and subsequent inception workshops, the Project Board, Implementing Partner (PICC), the responsible parties, and the PMO subscribed to the Project Results Framework as their overall guide and followed on the implementation results even until and beyond the conduct of this evaluation.

With the hiring of the Chief Technical Adviser with M&E background instead of an M&E Officer, the implementation of the M&E Plan was subsumed within the PMO personnel in order to streamline cost and maintain budget efficiency. The Project Manager with the assistance of the other PMO personnel were tasked to prepare and submit the quarterly and annual review reports as inputs to the annual project review. The mid-term review was canceled as the terminal evaluation will likely augment the M&E requirement of the Project. Except for the conduct of the terminal evaluation, no direct budget was specified for the preparation of the regular reports.


Tag: Human and Financial resources Monitoring and Evaluation Operational Efficiency

44.

Thus, the requisite UNDP reports highlighted the actual cumulative progress made on results on objectives, outcomes, outputs and activities – both qualitatively and/or quantitatively. This led to an early determination on progress made on impact and status of implementation of activities within each of the outputs and outcomes that allowed all key stakeholders to make adaptive measures.


Tag: Effectiveness Impact

45.

Financial performance was also monitored, and recommendations arising from audits and spot checks were attended to and responded to with respect to: actions taken, when taken and the responsible persons identified to address findings; and were likewise reported in the annual progress reports.

 


Tag: Efficiency Monitoring and Evaluation Operational Efficiency

46.

The risks log were constantly updated and new risks identified; with the date indicated and type of risk categorized, the level of severity assessed, and countermeasures and management response/s indicated.


Tag: Monitoring and Evaluation Risk Management

47.

During implementation, the Project through the recommendations of the CTA, undertook a study on assessing the impact of the Project on poverty reduction and farmer productivity to determine the level of progress of the WIBI Project as well as underscored programmatic and process issues that need to be addressed in relation to the objective of reducing poverty in the region, especially on how payouts were used. Other studies that contributed to the Project’s better understanding on poverty reduction were the willingness-to-pay and actuarial studies on premium payments.


Tag: Crop production Poverty Reduction Data and Statistics

48.

Given the above, the Project’s performance on Monitoring and Evaluation at entry and on plan implementation, and on the overall quality of M&E were all rated Highly Satisfactory (HS).


Tag: Effectiveness Monitoring and Evaluation

49.

The Project worked closely with GEF Operational Focal Point (GEF-OFP), the latter being responsible for the operational aspects of GEF activities such as facilitating coordination, integration and consultation at the country level. Although not a member of the Project Board, the GEF OFP exercised oversight functions through the earlier-mentioned regular reports it received.


Tag: Global Environment Facility fund Harmonization

50.

The conduct of Project Board meetings included the attendance of most of the responsible parties’ representatives. This approach in participatory management adopted by the Board made the meetings as an avenue for all to directly report on their respective implementation accomplishments, present issues and concerns, resource need and availability – and most importantly, for all to see the Project in its totality rather than as a component of a whole.


Tag: Oversight Project and Programme management

51.

From the above, it is clear that there was consensus among key partners in their independent ratings on Project progress towards attaining the development objective and in its implementation. The ratings have consistently improved during the 3 years of Project life and reflects a progressive and continuous improvement through time. This was brought about by the unified understanding of the results framework, the excellent cooperation and coordination among key partners in addressing issues and concerns towards performing activities and achieving the outputs, outcomes, and objective, and the complementarity that team work attained.


Tag: Implementation Modality Partnership Results-Based Management Coordination

52.

In view of the foregoing, the Project was rated Highly Satisfactory as key partners have excellently contributed in supporting the attainment of objective during Project implementation.


Tag: Effectiveness Implementation Modality Partnership

53.

3.3    Project Results

3.31    Overall Results (Attainment of Objectives) (*)

The Project results as of June 30, 2017, i.e. 6 months prior to the anticipated closure, are presented in the summary below in comparison with the Project Results Framework, incorporating thereto the agreed changes in the inception report.

Objective: Poverty reduction by strengthening the resilience of vulnerable agriculture-based rural communities in climate risk transfer mechanisms and productivity enhancement measures


Tag: Agriculture Crop production Rural development Climate Change Adaptation Resilience building Poverty Reduction

54.

Target 1:    At least 2,000 families in target villages are covered by WIBI

The total of 2,413 farmer beneficiaries (54% male; 46% female) were covered under weather index-based insurance either low and excess rainfall cover, or both, for rice and corn exceeded the target by 20.65 %. However, the proportion of population covered was not indicated, and on whether the population referred to rice and/or corn farmers or, that of the entire poor agricultural sector or, the population of rice and/or corn farmers who were reached by the 20-30 kilometer radius of the PAGASA weather stations - in the target areas.


Tag: Rural development Rural Vulnerable

55.

Target 2:   Beneficiary farmers demonstrate 20% damage rate (i.e. 2-6% lower than average) during the normal year, i.e. when WIBI payouts are not made

No assessment on the reduction in damage rates was done for all beneficiary farmers. Rather, an impact assessment of the application of Good Agricultural Practices (GAP) on yield was conducted by the Agricultural Technical Institute whose findings suggested that GAP significantly increased the average yields for large scale farmers while they remain the same for small scale farmers (PIR-2017). Although the findings may have suggested the differing ability to adapt GAP possibly due to resource availability, and certainly the findings can only serve as the sole available value to consider in lieu of damage rate. The only limitation to the GAP assessment was the length of observation, i.e. cropping cycles, used for statistical analysis, hence the inconclusive findings.

The correlation between damage rates and WIBI payouts have not been established by the Project. The impact assessment concluded that despite the payouts being utilized to buy farm inputs during the same cropping cycle, no conclusive evidence was forwarded on effects on yield or, to a reduction in damage rates.


Tag: Agriculture Crop production Environmental impact assessment Impact

56.

Outcome 1:  Regulatory and fiscal incentive structures adjusted to stimulate private sector engagement in climate risk reduction and transfer for agriculture-based rural households

Target 1:       The application of AGFP adjusted / expanded for FSPs to avail of preferential guarantee coverage

The new IRR, issued on September 2016, of AGFP approved for WIBI insured loans the reduction of the guarantee fee rates for banks to 0.25% (ARB borrowers) and 0.45% (rice farmers) from 0.85% - this essentially was an incentive for the private sector to promote and include WIBI as an integral feature in their financial product.


Tag: Agriculture Disaster Risk Reduction Service delivery Private Sector

57.

House Bill 3560 was also filed mandating PCIC to offer WIBI, provide a reinsurance facility especially for the private insurance companies that will be engaged in WIBI, and increase in capitalization from the present PhP2.0 billion to PhP10 billion. On the Senate was a bill for the development and promotion of a National Crop Insurance Program, the creation of a Risk Management Agency, and the Agriculture Risk Management Fund (ARMF). Another draft Executive Order awaited signing for the “Promotion and Development of National Index-Based Insurance Program in the Philippines”. These developments on the policy front certainly will further boost the entry of more FSPs engaged in WIBI on top of the more attractive application of AGFP.

However, the Project must be able to assess the likelihood that these congressional bills will be enacted into laws, and executive orders will be issued. Without these, the up-scaling of WIBI on a national scale will be constricted as PCIC may face issues on financial feasibility of its operations especially on a continued premium subsidy policy environment.


Tag: Agriculture Crop production Disaster risk management Rule of law Advocacy Policy Advisory

58.

Target 2:       Preliminary assessments for covering new crops under WIBI are complete and PCIC is ready to start pilot testing

Correlation studies completed with the submission of the Correlation Analysis of Weather Parameters and Yield of Banana, Cacao, Coconut and Sugarcane will prepare PCIC to start a pilot study building on the findings of said study.

The outputs and activities supporting the outcome # 1 were also presented, and respective accomplishments:

Output 1.1. Availability of an incentive mechanism for private sector in WIBI provision


Tag: Crop production Environmental impact assessment Data and Statistics Private Sector

59.

With the above accomplishments of targets in outcome 1 and the successful conduct of activities of each of the 3 outputs, the end-of-Project indicators for outcome 1 have been achieved. Thus, the various studies provided the baseline information and positive developments on the policy regime can provide the platform for increasing participation of the private sector in the provision of WIBI. These also established the foundation from which PCIC can expand the coverage of WIBI into more agricultural areas and into new crops beyond rice and corn. However, policy actions taken by PCIC on the recommendations of ACPC on reinsurance, on premium setting based on the actuarial studies, and on the willingness-to-pay all remained unclear during the evaluation period. The absence of decisions and subsequent policies on these will definitely hamper the planned up-scaling of WIBI.

Based on the foregoing, the rating given on the achievement of outcome 1 is Satisfactory (S).


Tag: Agriculture Crop production Effectiveness Policy Advisory Data and Statistics Private Sector

60.

Outcome 2:  Weather index-based integrated Financial Package customized and applied to strengthen climate resilience in the agriculture sector in Mindanao

Target 1:       At least 2,000 families in target villages are covered by WIBI (The number of female-headed households as well as sex-disaggregated performance, where possible, will be reported)

The outputs and activities supporting the outcome # 2 are presented, and respective accomplishments:


Tag: Agriculture Climate Change Adaptation Gender Mainstreaming Women's Empowerment Service delivery

61.

While WIBI product had been tested with more than 2,000 farmers, there remained a need to develop and finalize the IFP in order to expand the participation of more FSPs. During Project implementation, the participation of FSPs was relatively minor in terms of the proportion of farmers enrolled in the WIBI Project and most of the farmers were self-financed and supported by the local government units.


Tag: Challenges Resource mobilization Local Governance Private Sector

62.

The MOA with FSPs has to include a determination and possible agreement on the method of application of the cost of their services. The results of the comparative assessment on the loan performance of WIBI and non-WIBI clients may require in- depth discussions between PCIC and with participating and even non- participating FSPs to identify and formulate policy support mechanisms to expand FSPs engagement with WIBI in the near future and during the up-scaling period.

For outcome 2, the rating given on the achievement of outcome 2 is Satisfactory (S).


Tag: Effectiveness Partnership Service delivery Private Sector

63.

Outcome 3:  Farmers and producers organizations able to analyze climate risk, and develop and implement adaptation practices to enhance productivity in agriculture

Target 1:       At least 30 barangays are aware of both the slow and sudden climate risks and of the response measures

Target 2:       At least 600 farmers and 20 farmer associations have been trained on resilient agricultural techniques (sex disaggregated target will be determined during the inception phase of the Project)


Tag: Agriculture Crop production Climate Change Adaptation Disaster risk management

64.

The feedbacks from the various DRRM trainings were most welcomed by the participants. The achievements on the vulnerability assessments and the completion of the contingency plans at the barangay level also boded well as it provided an increased awareness on the basis for the communities to understand better the premises for improving climate resiliency.


Tag: Resilience building Awareness raising Capacity Building

65.

The preliminary results of the impact assessment (outcome 3.2.4) is deemed inconclusive by the study itself, and a continuing study must be undertaken that takes into account the use of statistical tools and approaches, e.g. representative sample size, location, crop variety, profile of respondents, among others.

The rating on the achievement of outcome 3 is Satisfactory (S).


Tag: Environmental impact assessment Effectiveness Data and Statistics

66.

On the achievement of progress towards the Project objective on “poverty reduction by strengthening the resilience of vulnerable agriculture-based rural communities in climate risk transfer mechanisms and productivity enhancement measures”, the Project more than achieved its target of at least 2,000 families, however, there were no indication on reduction of damage rates but rather there were indications, albeit inconclusive, that the Project has a potential to be an effective mechanism for delivering assistance to farmers to enable them to break free from poverty trap; and, that payouts resulted to the procurement of additional inputs for farming application, household expenses, and educational expenses. The implementation of the project over the last 3 years has revealed many steps are still required before the overall objective of “poverty reduction through a climate risk transfer mechanism” is achieved. Some examples of additional steps moving forward included the fact that no consensus has been made about the level of subsidy for WIBI; and, the numerous studies that were commissioned during the project mostly remained inconclusive.

From the foregoing presentation on the achievement of activities, discussions, and findings, the overall results (attainment of objectives) is given a rating of Satisfactory (S).


Tag: Agriculture Climate Change Adaptation Disaster Risk Reduction Resilience building Effectiveness Poverty Reduction Vulnerable

67.

3.32     Relevance (*)

The key criteria on Project relevance in the ToR has been defined: “How does the Project relate to the main objectives of the GEF focal area, and to the environment and development priorities at the local, regional and national levels?” Further, the issue on relevance frequently becomes a question on whether the objective/s of an intervention and/or its design remain appropriate and responsive given changing circumstances.


Tag: Relevance Global Environment Facility fund Theory of Change Poverty Reduction

68.

In the Project Document, the Project was approved for funding based on UNDAF Outcome Area 4:

Resilience to Disasters and Climate Change, and UNDP Strategic Plan Environment and Sustainable Development Primary Outcome: Promote Climate Change Adaptation. Under the Country Programme/UNDAF Outcome 4, the successful outcomes are on: Adaptive capacities of vulnerable communities sand ecosystems are strengthened to be resilient to threats, shocks, disasters, and climate change; and, on expected CPAP Output: Increased capacities of key duty-bearers and claimholders to lead and support a sustainable national anticipatory climate change adaptation process.


Tag: Climate Change Adaptation Disaster Risk Reduction Resilience building Relevance Programme/Project Design

69.

The Project’s strategic objective were in harmony with the target indicators.  The target indicators are:

  • Percentage of population of at least 2,000 families in target areas covered by weather index-based insurance mechanism;
  • Demonstrated reduced damage rate of between 2% to 6% of national average to 20% in rice farming;
  • Availability of an incentive mechanism for private sector in WIBI provision through adjustment in AGFP guarantee coverage;
  • PCIC’s readiness in expanding WIBI to new crops beyond rice and corn; and,
  • Number of community groups trained in climate change risk reduction.

Tag: Climate Change Adaptation Disaster Risk Reduction Relevance Programme/Project Design

70.

The Project also addressed the need for long-term solutions faced by small-scale farmers to respond to systemic changes in the climate system. Identified key barriers were similarly addressed (3.31 - Overall Results) in order to provide the opportunity to a better understanding and appreciation of the index- based agricultural insurance industry in the country. The Project was able to produce numerous studies on index-setting, premium setting, willingness-to-pay, portfolio assessment of FSPs, among others that were herein earlier presented.


Tag: Agriculture Data and Statistics

71.

More importantly, Project relevance can be gleaned on the rice farmers as target groups as this has implications on food security for the country. Today, the country continues to rely on rice importation to augment its domestic rice production. Tackling risk transfer or risk reduction mechanism for agriculture is necessary as espoused in the NCCAP. Based on the regional assessments done by PAGASA and as presented in the Fourth Assessment Report, the choice of the Project locations was relevant to the overall objective. The dry season in Region 10 was expected to be drier, and the wet season more wetter. In Region XI, the wet season was expected to receive higher rainfall before 2020 and 2050, while the summer season was expected to face a significant reduction in rainfall.


Tag: Agriculture Food Security Environmental impact assessment Relevance

72.

From the foregoing and based on the interviews, discussions and observations during the field missions, the Project is considered as highly relevant (R); and, there were no other circumstances during its implementation that would have reduced its relevance.


Tag: Relevance

73.

3.33     Effectiveness & Efficiency (*)

Effectiveness pertained to the extent to which the Project objective has been achieved, or how likely it is to be achieved given that this terminal evaluation has excluded, for the most part, the Project period from July 1 to December 31, 2017. Given the preceding extensive presentation (3.31–Overall Results), the Project’s effectiveness is given the rating of Highly Satisfactory (HS).

This rating was given despite the fact that the Integrated Financial Package was not developed. However, alternative studies of equal importance were conducted, namely: Willingness- to-Pay; Actuarial Studies on Premium Pricing; Impact Assessment of Farmer Field School-Rice Crop Manager Training on the Productivity (Yield); Impact Assessment on Poverty Reduction and Farmer Productivity; and, Determination of Crop Water Requirement.


Tag: Agriculture Crop production Effectiveness Capacity Building Data and Statistics

74.

On the assessment of Project efficiency, this referred to the extent implementation was performed efficiently and in line with international and national norms and standards; and, extent to which results have been delivered at the least cost.

The extension of the Project to 38 months (November 2014 to December 2017) from the original 36 months did not affect at all the overall funding requirement. Throughout Project implementation, there were no major issues centering on the need for additional funding support. On the other hand, projected savings arising from the removal of an activity, e.g. regional survey, were used to fund replacement activities, e.g. willingness- to-pay, among others. On financial management, audit findings were mostly administrative in nature, e.g. incomplete supporting documents, and were satisfactorily complied within the allowable time frame.


Tag: Efficiency Human and Financial resources Operational Efficiency

75.

In terms of the financial performance of the project, the delivery was about $866,000 or 80% of the total budget as of June 30, 2017 or, 6 months prior to the official Project end- date. The remaining 20% financial delivery was programed to be fully utilized by Project closing and will cover the scheduled activities for 2017 including the terminal evaluation and concluding conference. It assumed no cost overruns, nor for any possible savings. Given this, and with the Project remaining on track in terms of project implementation and delivering substantive outputs despite its short (3 years) implementation period, with satisfactory and high quality results as reflected in the PIRs, Project efficiency should be Highly Satisfactory (HS).

 


Tag: Efficiency Human and Financial resources Operational Efficiency

76.

3.34     Country Ownership

On country ownership, relevance of the Project to national development and environmental agendas, recipient country commitment, and regional and international agreements remained congruent, aligned and applicable throughout Project implementation.

The Philippine Development Plan (2017-2022) recognizes in Chapter 20: Ensuring Ecological Integrity, Clean and Healthy Environment “the impact of climate extremes and variability are felt with increased intensity and frequency. With CC, Philippines is already experiencing increased intensity and frequency of extreme weather events. Adapting to CC, which now defines the new normal, and mitigating its impact, is a big challenge and efforts have to be heightened to a level that would safeguard not only lives but also economic gains”. In the same chapter, it added “Private sector engagement in ENR (environment and natural resources) management, including investment in CC and DRRM actions, is limited. The potential of private sector investing in ENR management, including risk transfer mechanisms, remains largely untapped due to the lack of a clear mechanism to guide the private sector in complementing government efforts”.


Tag: Climate Change Adaptation Natural Resouce management Relevance Ownership Private Sector

77.

Aside from the continuing implementation of NCCAP (2011-2028) of the seven strategic priorities, with food security prominently mentioned, several bills are pending with the Philippine Senate and House of Representatives related to WIBI that seeks to strengthen crop insurance, institutionalize agricultural risk management; and, another pending executive action on promoting a national index-based insurance program. The Government therefore continues to remain in the forefront on disaster risk-reduction and climate change adaptation efforts.

The composition of the Project Board is proof that country ownership remained strong in the Project. The Board Chairperson is the Undersecretary on Special Concerns of the Department of Agriculture, and the Vice Chairperson is the President of Philippine Crop Insurance Corporation. The remaining 5 members represented the Climate Change Commission, Systems-Wide Climate Change Office (Department of Agriculture), National Economic Development Authority, National Economic Development Authority, and United Nations Development Programme Country Office.

 


Tag: Agriculture Climate Change Adaptation Disaster risk management Disaster Risk Reduction Oversight Ownership

78.

3.35     Mainstreaming

The mainstreaming of the Project and its results framework to relevant Government strategies were presented in the preceding sections of 3.32 and 3.34. The UNDP Guidance for Terminal Evaluation calls for assessing the extent UNDP supported GEF-financed projects are key elements in UNDP country programming. The objectives and outcomes of the Project were aligned with UNDP country programme strategies as well as with GEF-required global environmental benefits as outlined in global environmental conventions.


Tag: Relevance Sustainability Global Environment Facility fund Country Government UNDP Management UNDP management

79.

The Project has successfully mainstreamed into other UNDP priorities, including poverty alleviation, improved governance, the prevention and recovery from natural disasters, and women's empowerment. The UNDAF for the Philippines “Supporting inclusive, sustainable and resilient development” (2012-2018) has stated that “Moving the country to a higher and robust growth path, sharpening the response to poverty reduction to growth, ensuring food security, and building resilience toward natural disasters and climate change will require strong and stable economic fundamentals and political institutions”. In outcome 4 (Resilience toward disasters and climate change), it emphasizes the aim

“to ensure community and livelihood resiliency by supporting the incorporation of disaster-risk reduction and management, climate change adaptation, and ENR conservation measures into community, sectoral and national plans”.


Tag: Food Security Disaster Recovery Natural Disaster Sustainability Women's Empowerment Poverty Reduction

80.

The UNDP Country Programme Document (CPD) contributes to UNDAF. CPD (2012-2018) stated that “programmes are to be focused on women’s empowerment, and resilience to disasters and climate change, among others. The overall approach to strengthen capacities of local governments and communities in democratic governance, poverty, disparity and vulnerability reduction, sustainable management of environment and natural resources, and climate change adaptation and disaster risk management, while ensuring that human rights and gender are integrated into local policies, processes, programmes and budgets. Complementary actions at the national and policy levels will be undertaken to contribute to a more conducive enabling environment for local interventions”.


Tag: Climate Change Adaptation Disaster Recovery Gender Equality Women's Empowerment Human rights Local Governance Capacity Building Policy Advisory

81.

The presence of UNDP Country Office representative in Board meetings revealed strong interest of UNDP to follow up on Project implementation as part of its programming cycle. The establishment of a Project Management Office with monitoring and evaluation as well as strategic planning, reporting and communications functions underlined the importance given.


Tag: Communication Human and Financial resources Monitoring and Evaluation

82.

Concerning gender aspects, the Project has regularly sent reports for incorporation in the UNDP-GEF Annual Performance Report, UNDP-GEF Annual Gender Report, reporting to the UNDP Gender Steering and Implementation Committee, among others.


Tag: Global Environment Facility fund Gender Equality Gender Mainstreaming

83.

Risk transfer mechanism such as WIBI has been mainstreamed into the Philippine Development Plan (PDP 2017-2020). In chapter 20 “Ensuring Ecological Integrity, Clean and Healthy Environment”, specifically subsector outcome 3 (Adaptive capacities and resilience of ecosystems increased) includes the strategy of: Maximizing access to CC and DRRM financing and risk transfer mechanisms. Further, this strategy includes that information on available international and national CC and DRRM financing facilities will be widely disseminated. Technical assistance to stakeholders, particularly LGUs will be provided to comply with the requirements of such facilities. On risk transfer mechanism, CC considerations will be incorporated in the design of financing packages and insurance products.


Tag: Disaster risk management Disaster Risk Reduction

84.

The Project has also succeeded in mainstreaming risk transfer in the policy front. For PCIC, the congressional bill pending before the House and representatives, effectively seeks the expansion of its mandate to include reinsurance for private insurance companies that will be engaged in WIBI and the increase in capitalization. In the Senate, bills for the development and promotion of a National Crop Insurance Program, the creation of a Risk Management Agency, and the Agriculture Risk Management Fund (ARMF) have been proposed. The draft executive orders are designed to promote and develop a national index-based insurance program.


Tag: Crop production Disaster risk management Rule of law Innovation

85.

3.36     Sustainability (*)

When assessing the sustainability of UNDP supported GEF financed projects, UNDP conforms to the general guidance set out in the GEF M&E policy and GEF Guidelines, which stipulates that all terminal evaluations should at a minimum assess "the likelihood of sustainability of outcomes at project termination, and provide a rating for this". Sustainability is generally the likelihood of continued benefits after the project ends. Consequently, the assessment of sustainability considers the risks that are likely to affect the continuation of project outcomes.


Tag: Sustainability Global Environment Facility fund Monitoring and Evaluation Sustainability

86.

On financial risks, the implementing partner and responsible parties were all government agencies and offices whose participation in the Project was a consequence of their respective mandates. At the local level, the LGUs have their mandates on disaster risk reduction, agricultural development, and poverty reduction, among others.


Tag: Disaster Risk Reduction Project and Programme management Country Government

87.

With all these, the Project financial sustainability is considered Moderately Likely (ML).


Tag: Sustainability Sustainability

88.

On socio-economic risks, the political arena has shown huge support with the pending bills and executive order, and the retention of most key officers of the implementing partner and responsible parties whose respective governing decision-making bodies have been supportive in promoting WIBI through increasing premium subsidies, and reducing guarantee fees, among others. The low level of awareness and understanding especially of farmers on WIBI and their inability to fully adhere to recommended crop management still require continuing literacy trainings and monitoring of results. Appropriate government agencies are continuing to provide these mandated services, and there are no indications during the Project implementation that there would be a reversal nor a diminution in the future. Thus, at the outcome level on socio-economic sustainability is Likely (L).


Tag: Sustainability Risk Management Sustainability Country Government Awareness raising Capacity Building

89.

On institutional framework and governance risks, the partnership arrangements has changed little during Project implementation. The legal frameworks, policies, and governance structures and processes within which the Project partners, parties, and stakeholders operates are unlikely to change at the national and local levels, thus the benefits to agricultural communities would remain in the pursuit of their respective mandates. The required technical knowhow contributory to a better understanding of WIBI has been developed from the numerous studies the Project has initiated but would require further refinements and more definitive plans of actions to carry out the recommendations that would prove more valuable in rolling-out WIBI.


Tag: Rural development Sustainability Rule of law Implementation Modality Partnership Sustainability

90.

Moreover, the Project Document has been clear that the Project design has included outputs whose specific objectives are to strengthen the institutional capacity within the WIBI sector towards sustaining WIBI provision. On index setting, the Project has succeeded in its process and developed standard guidelines of rice and corn and other crops, and started capacity building trainings. And, built a knowledge body of literacy and awareness modules for FSPs and farmers alike.

 


Tag: Knowledge management Programme/Project Design Awareness raising Capacity Building National Institutions

91.

The WIBI Mindanao Project has institutionalized a collaborative effort among government agencies and offices at the national level and local government units that resulted to the delivery of outputs contributory to the attainment of the outcomes and to the overall objective. There were no indications that the absence of this collaborative effort would have resulted in a separate yet collective attainment of similar outcomes that the Project has achieved. There is thus the need to consider the institutionalization of a similar collaboration that may take the creation of an organization similar to an inter-department composite agency that brings together the Project’s implementing partner and responsible parties to further pursue the gains of the Project.

Hence, the sustainability of institutional framework and governance is Moderately Likely (ML).


Tag: Local Governance Ownership Partnership Sustainability Country Government National Institutions

92.

On environmental risks, basis risks remained as farmers have continually expressed their dismay on the matter of payouts. Another concern is that climate change variability and intensity remains, and the demand for WIBI’s continuity may have become more pronounced today than during Project start. Even when WIBI has ventured into rice-irrigated areas, the lack of water (due to droughts) and the dismal state of irrigation facilities can pose a restraint in the roll- out of WIBI. These cannot be entirely neglected, but some are manageable, e.g. irrigation facilities. As the Project has operated under these conditions and have resulted in successfully addressing the barriers to a large extent throughout its implementation, the rating on environmental sustainability is Likely (L).


Tag: Agriculture water resources Climate Change Adaptation Disaster risk management Sustainability Sustainability

93.

From the above discussions, the overall rating on sustainability is therefore Moderately Likely (ML) . The WIBI Mindanao Project can be sustainably expanded to cover more regions and additional crops, using the design and implementation approaches employed. Thus, it is important that the Philippine government and UNDP has began the task of initiating a follow-up design on the up-scaling of this Project.


Tag: Sustainability Sustainability Country Government UNDP Management UNDP management

94.

3.37     Impact

During the early part of 2017, an Impact Assessment of WIBI Mindanao Project on Poverty Reduction and Farmer Productivity in the two (2) regions was conducted to “determine the level of progress of the WIBI Project as well as underscore programmatic and process issues that need to be addressed in relation to the objective of reducing poverty in the region”. The findings on basic knowledge on WIBI included:

1] A low knowledge level on WIBI that is mostly acquired from DA technicians and orientation trainings;

2] Lack of emphasis in the preferential targeting of women;

3] Language barrier (use of English rather than the local dialect) which resulted to difficulty in understanding the lectures and could have contributed to the low level of knowledge;

4] Absence of a feedback mechanism; and,

5] Different recruitment process applied between regions of farmers.

Findings on farmer benefits suggested that receipt and non-receipt of payouts remained unclear. However, payouts brought benefits as it was used to procure inputs, resulting to better yields and quality of palay; and, to augment household income for food, education, and even to settle prior debts. The latter use of payouts addressed gender needs as women typically take care of household related expenditures.


Tag: Crop production Environmental impact assessment Challenges Impact Gender Parity Women's Empowerment Poverty Reduction

95.

Despite the above findings and conclusions, all these can be considered as preliminary and require a more extensive research methodology to address certain limitations on the assessment process. The assessment recognized that there were limitations on sample size and representativeness, effects of interventions due to the short implementation yet of the Project, attribution that hampered causality of intervention to outcomes, and limited coverage to just 2 cropping cycles. 

The assessment, though preliminary, had discovered the presence of economic benefits as a result of payouts leading to improved agricultural practices and on yields and, social upliftment on better opportunity to education, better nutrition, and reduction of debt. All these mean that the Project has made progress towards its objective of reducing poverty through risk transfer mechanism and productivity enhancement measures.


96.

Regarding Relevance – this has been discussed in the first portion of this section, i.e. the country’s situation amidst climate change and the identification of barriers and long-term solutions. Finally, the results framework made clear that the Project will operate for three (3) years.


Tag: Climate Change Adaptation Relevance Programme/Project Design

97.

The past involvement in almost similar pilot projects on climate-risk transfer mechanism, productivity enhancement, capacity building, agricultural extension services among most stakeholders of this Project facilitated their re-engagement in this Project and quicker understanding of their roles and responsibilities.


Tag: Crop production Climate Change Adaptation Partnership

98.

In addition, this Project entailed that PCIC continue to closely work with both the private and public financial service providers to integrate WIBI into their financial products emphasized continuing replicability of Project results in the future. WIBI is a product that continues to be difficult for farmers to understand, with past studies indicated that the take-up of the product increases when actively sold by a trusted agent through a face -to -face transaction. Thus, a partnership with FSPs is essential for it can combine crop insurance with its financial services, while PCIC can leverage their network of FSP branches and officers that other government agencies lack. Furthermore, lessons learned during Project implementation can be shared with other prospective FSPs on a national scope that can accelerate expansion of Project results.


Tag: Partnership Service delivery Shared Services Sustainability

99.
  • One of the activities (output 1.3.3) - Carry out a cost-benefit analysis of a reinsurance scheme under different climate and market scenarios was led by the Agricultural Credit Policy Council (ACPC) - and PMO tapped the expertise of University of the Philippines in Los Baños for actuarial study to determine the premium pricing, risk management and reinsurance capacity of PCIC.
  • The adaption of the recommendations of the CTA for the conduct of additional studies, namely: willingness-to-pay (WTP); actuarial study to determine the pricing of WIBI premiums; and, the reinsurance analysis.

Tag: Project and Programme management Data and Statistics

100.
  1. With respect to gender and development, gender specific roles and other gender dimensions were captured in the Project sites in both regions by the Impact Assessment Report on the Project, namely:
  • Addressed women’s practical gender needs such as: household improvements; payouts augmented expenses on children’s education, food and hired farm labor. Payouts were considered as small benefits and large-scale development on household and farming remains inconclusive.
  • Other perceived benefits such as the conduct of seminar orientations were hardly effective as it was unable to generate participation
  • No evidence yet of confronting the existing gender roles leading to the achievement of women’s strategic gender needs. Women’s roles in agricultural activities (production, marketing, household preparation) continued to be invisible and not implicitly recognized. Instead of women given particular focus to optimize their roles as part of the production process, they were restrained to act as proxy of their husbands in the WIBI Project activities and as homemakers.

Tag: Gender Equality Gender Mainstreaming Gender Parity Women's Empowerment

Recommendations
1

Project Design - One of the intended design feature of WIBI product was to bundle it into existing credit programs of the Department of Agriculture (DA).  However, the non-development of integrated financial package during the Project term, including other bundling options with potential sources of agricultural credit resulted into mostly ‘self-financed’ WIBI farmers supported by local governments. The results of the portfolio assessment of FSPs in relation to WIBI may have been more conclusive had there been a larger number of formal WIBI borrowers.

2

Project Design - On stakeholders’ participation, the official participation of various government agencies was indeed a difficult task due to differing mandates.  A multi-stakeholder agreement in which all parties simultaneously formally declared their official commitment in a signing ceremony could have been a culminating activity during the official launch of the Project.

3

Project Implementation - The generation of data on farmers, for both enrollees and non-enrollees and for repeat and non-repeat enrollees, would have enriched the analysis of the target end-beneficiaries of the Project – although this has been an approved undertaking during the course of implementation. Activities on gender analysis and mainstreaming could have included formal assessments on aspects such as the division of labor, control of resources and benefits, mapping of the 24-hour typical day activity, and accessibility and level of benefits with economic institutions (e.g. banks, trainings, etc.).

4

Project Monitoring and Evaluation (M&E) - The Project has generated all the required UNDP and GEF mandated reports using the templates. The Project needed to go beyond these templates (i.e. quarterly and annual progress reports, the annual project implementation reports, the annual work and financial plan) and generate templates for the internal use of the Project Board and the PMO with respect to the deliverables of responsible parties and contracted parties, and for specific activities. 

5

Reinforcement of Initial Gains of Project - The WIBI Mindanao Project might have been introduced, but understanding of the risk transfer mechanism and climate resiliency with farmers remain low.  This could be improved with the timely dissemination and distribution to the farmers too of information materials (in the local dialect) for a better understanding and application.  Simple yet sturdy print materials with illustrations has proven effective especially with the rural poor agricultural sector.

6

On the assessment studies made, a cursory review of its findings, conclusions and recommendations strongly suggest for the most part that additional concluding activities and/or issuance of new/revised guidelines are needed prior to the roll out of WIBI on a larger scale.  Reference is made on the portfolio assessment on FSPs; index development; crop water requirement; expansion and establish conclusive correlation between weather and yield for the 4 initial crops (banana, cacao, coconut, and sugarcane) and for new identified additional crops; reinsurance; willing-to-pay; premium setting; payout; impact of WIBI on yield; and impact of WIBI on poverty reduction and farmer productivity with gender perspective. 

7

Organizational capabilities of PCIC have to expand through the development and establishment of actuarial and product development units.  When such capabilities are competently achieved, prospects for PCIC to provide this type of insurance can be realized.  PCIC has to continue its collaborative institutional linkages with PhilRice and PAGASA, and further pursue initiatives with the private sector for their involvement as conduits for WIBI products in reinsurance.

8

The development of the integrated financial package can be location and crop specific and to ensure success, institutional arrangements with LGUs, local financial retailers, and other key value chain players should be established. Likewise, the willingness-to-pay factor can be addressed through a decreasing proportion of government subsidies, i.e. increasing payment level by the insurance beneficiary.

1. Recommendation:

Project Design - One of the intended design feature of WIBI product was to bundle it into existing credit programs of the Department of Agriculture (DA).  However, the non-development of integrated financial package during the Project term, including other bundling options with potential sources of agricultural credit resulted into mostly ‘self-financed’ WIBI farmers supported by local governments. The results of the portfolio assessment of FSPs in relation to WIBI may have been more conclusive had there been a larger number of formal WIBI borrowers.

Management Response: [Added: 2018/05/15] [Last Updated: 2020/12/21]

A number of financial institutions and cooperative signed a MOU with PCIC to signify their strong interest in engaging WIBI as part of their product portfolio. Regular dialogue and series of discussions were conducted with these institutions, however, the commitment of these banks into number of farmers or client was not firmly decided and achieved. In addition, most of their clients were already enrolled in traditional/conventional crop insurance which is bundled to the existing loan products.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Integration of weather index-based insurance product into existing credit programs of DA a. Preliminary discussion with Agricultural Credit Policy Council (ACPC) to decide on the program where WIBI can be bundled considering the pre-conditions of the insurance and loan product b. ACPC to promote the adoption of IFP to their roster or affiliated financial institutions
[Added: 2018/05/15] [Last Updated: 2018/09/16]
Philippine Crop Insurance Corporation (PCIC) 2018/07 Completed History
Promotion of PCIC and ACPC to financial service providers through WIBI literacy seminars a. Identify the conditions and design of the policy contract to be agreed upon both by PCIC and the FSPs b. Outline the procedure and identify incentives for FSPs for promoting WIBI to their clients
[Added: 2018/05/15] [Last Updated: 2018/09/16]
PCIC 2018/07 Completed History
Conduct of regular product promotion with LGUs and farmer organizations to achieve the target number of enrollees
[Added: 2018/05/15] [Last Updated: 2018/09/16]
PCIC, Local Government Unit (LGU) 2018/09 Completed History
2. Recommendation:

Project Design - On stakeholders’ participation, the official participation of various government agencies was indeed a difficult task due to differing mandates.  A multi-stakeholder agreement in which all parties simultaneously formally declared their official commitment in a signing ceremony could have been a culminating activity during the official launch of the Project.

Management Response: [Added: 2018/05/15] [Last Updated: 2020/12/21]

This is a good recommendation and if it is possible to synchronize the timing and process of each partner agency (i.e. approval of MOAs and workplan), ceremonial signing of agreements could have be included in the project launch. However, with the real dynamics in the government, the finalization of MOAs with responsible parties happened after the official project launching in June 2015. PCIC will consider this in the future and will try to work out on the timing with project partners.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Establish new and strengthen existing partnerships with relevant agencies in improving the WIBI product and sustaining the implementation a. Identify potential partners of PCIC in WIBI expansion including the development of indices for new weather parameters and crops b. Discuss with partners specific roles and outputs that will contribute to expansion of WIBI program in the Country c. Prepare legal instruments with detailed work plan and budget in synchronize with other partners agencies prior to the official project launch (if any)
[Added: 2018/05/15] [Last Updated: 2018/09/16]
PCIC 2018/08 Completed History
3. Recommendation:

Project Implementation - The generation of data on farmers, for both enrollees and non-enrollees and for repeat and non-repeat enrollees, would have enriched the analysis of the target end-beneficiaries of the Project – although this has been an approved undertaking during the course of implementation. Activities on gender analysis and mainstreaming could have included formal assessments on aspects such as the division of labor, control of resources and benefits, mapping of the 24-hour typical day activity, and accessibility and level of benefits with economic institutions (e.g. banks, trainings, etc.).

Management Response: [Added: 2018/05/15] [Last Updated: 2020/12/21]

The regular monitoring of data of farmers should have been one of the priorities to ensure that the project is generating impact. Nonetheless, with the initial activities that are prerequisite to the farmers’ enrollment in WIBI, measuring impacts was indeed a challenge for the PMO. Furthermore, the gender participation of female farmers in the project is high and almost equal as the male. While this is a valid recommendation, the Management believes that a deeper understanding and appreciation of M&E activities could have improved the data management and analysis.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Set-up a M&E system to ensure that farmers’ data are regularly collected and analyzed based on the project results framework a. Discuss with the M&E specialist on the initial indicators included in the M&E tool that will determine the achievement of targets b. Regularly update M&E system at the end of each cropping cycle by coordinating with local partners on the valid and recent information of farmers
[Added: 2018/05/15] [Last Updated: 2018/09/16]
M&E Specialist; PCIC 2018/06 Completed History
Observe that the indicators and project activities are gender-sensitive and responsive following the guidelines on mainstreaming Gender and Development (GAD)
[Added: 2018/05/15] [Last Updated: 2018/09/16]
PCIC, GAD Focal 2018/06 Completed History
4. Recommendation:

Project Monitoring and Evaluation (M&E) - The Project has generated all the required UNDP and GEF mandated reports using the templates. The Project needed to go beyond these templates (i.e. quarterly and annual progress reports, the annual project implementation reports, the annual work and financial plan) and generate templates for the internal use of the Project Board and the PMO with respect to the deliverables of responsible parties and contracted parties, and for specific activities. 

Management Response: [Added: 2018/05/15] [Last Updated: 2020/12/21]

The Project Management Office has complied with all the reports required for submission to UNDP and donor agency. The PCIC, as implementing partners used these reports as basis of project progress and accomplishments. The regular reporting to the members of the project board and WIBI development team is sufficient to inform the partners and senior management on the status of the project. There were also opportunities wherein  the PMO presents to PCIC Board of Directors. Moreover, aside from project physical accomplishments, annual spot checks and audit were also carried out and corrective actions from the management were warranted. With these tools and procedures, PCIC was confident that the project had checks and balances during the project cycle.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Establish internal monitoring system to ensure tracking of project activities and accomplishments a. PMO to develop an internal tracking tool to monitor timely and quality delivery of outputs of partners b. Review of the accomplishment reports submitted by project partners in conjunction with the project results framework
[Added: 2018/05/15] [Last Updated: 2019/01/04]
PCIC 2018/12 Completed History
5. Recommendation:

Reinforcement of Initial Gains of Project - The WIBI Mindanao Project might have been introduced, but understanding of the risk transfer mechanism and climate resiliency with farmers remain low.  This could be improved with the timely dissemination and distribution to the farmers too of information materials (in the local dialect) for a better understanding and application.  Simple yet sturdy print materials with illustrations has proven effective especially with the rural poor agricultural sector.

Management Response: [Added: 2018/05/15] [Last Updated: 2020/12/21]

There are a number of information and communication materials produced in this project with versions in local dialect. The management acknowledges that the overall design and aesthetics of these materials need to be refined according to the taste and comfortability of users to ensure that messages are comprehensible. The management will carefully plan, alongside with the project activities, the design and communication channels to be used for forthcoming WIBI literacy activities.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Develop relevant and complete set of communication materials and knowledge products that will support the promotion of WIBI to farmers, financial institutions and local partners. a. Conduct primary data gathering activities on the preference of farmers in communication materials b. Preparation of communication and promotion strategy of WIBI program c. Development and production of communication materials for distribution
[Added: 2018/05/15] [Last Updated: 2018/09/16]
Communications Consultant, PCIC Head Office and Regional Offices 2018/06 Completed History
6. Recommendation:

On the assessment studies made, a cursory review of its findings, conclusions and recommendations strongly suggest for the most part that additional concluding activities and/or issuance of new/revised guidelines are needed prior to the roll out of WIBI on a larger scale.  Reference is made on the portfolio assessment on FSPs; index development; crop water requirement; expansion and establish conclusive correlation between weather and yield for the 4 initial crops (banana, cacao, coconut, and sugarcane) and for new identified additional crops; reinsurance; willing-to-pay; premium setting; payout; impact of WIBI on yield; and impact of WIBI on poverty reduction and farmer productivity with gender perspective. 

Management Response: [Added: 2018/05/15] [Last Updated: 2020/12/21]

The findings from specific studies conducted under WIBI Mindanao Project will be useful and will provide basis for the design of program expansion. However, refinement of results and additional information and analysis are needed to strengthen and deepen the recommendations for each study. PCIC will ensure that these results will be reviewed and follow-through discussions with study leaders will be done if necessary.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Synthesize the findings from the studies conducted under WIBI Mindanao Project to ensure integration with the project design of WIBI expansion a. Conduct post-project discussion with the team leaders of each study for clarifications and further information b. Ensure that recommendations and findings from studies were considered and integrated in project design
[Added: 2018/05/15] [Last Updated: 2018/09/16]
PCIC 2018/05 Completed History
7. Recommendation:

Organizational capabilities of PCIC have to expand through the development and establishment of actuarial and product development units.  When such capabilities are competently achieved, prospects for PCIC to provide this type of insurance can be realized.  PCIC has to continue its collaborative institutional linkages with PhilRice and PAGASA, and further pursue initiatives with the private sector for their involvement as conduits for WIBI products in reinsurance.

Management Response: [Added: 2018/05/15] [Last Updated: 2020/12/21]

Part of the PCIC’s mandate is to continue to develop innovative insurance products for vulnerable farmers in the Philippines. With support from our institutional partners like UNDP, PhilRice and PAGASA, among others, the organization will ensure that the learnings and capacities gained from implementing WIBI pilots are adopted by PCIC personnel involved in the projects. Since the management decided to sustain the WIBI program by expanding it to other regions, the engagement and participation of the aforementioned partners will still remain.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Draft a legal instrument such as Memorandum of Agreement (MOA), Joint Administrative Order (JAO) or Department Order (DO) to ensure sustainable partnerships a. Prepare annual workplan including WIBI-related activities and further research collaboration for product improvement b. Conduct regular meetings with agencies involved in implementing WIBI program to ensure progress
[Added: 2018/05/15] [Last Updated: 2018/09/16]
PCIC Legal, PhilRice, PAGASA 2018/06 Completed History
8. Recommendation:

The development of the integrated financial package can be location and crop specific and to ensure success, institutional arrangements with LGUs, local financial retailers, and other key value chain players should be established. Likewise, the willingness-to-pay factor can be addressed through a decreasing proportion of government subsidies, i.e. increasing payment level by the insurance beneficiary.

Management Response: [Added: 2018/05/15] [Last Updated: 2020/12/21]

Designing a product that will cater to specific requirements of a community will require a generous amount of time to conduct assessment studies to identify the existing financial retailers, value chain players and preferences of the local partners and farmers themselves. In an ideal situation, projects shall build upon on the needs of the target beneficiaries or to apply a “bottom-up” approach in project design. However, the richness of information that the WIBI Mindanao Project has generated in the past three years provides a basis for PCIC management to deliver an evidence-based project design. This recommendation is highly acknowledge and PCIC will ensure that this will be considered in the WIBI program expansion.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Conduct an assessment survey to identify the existing and potential project partners for WIBI expansion a. Initiate exploratory discussions with the local governments and financial institutions to identify implementation arrangements b. Carry out primary data gathering activities to determine farmers’ preferences on the design of financial packages
[Added: 2018/05/15] [Last Updated: 2018/09/16]
PCIC Regional Offices 2018/09 Completed History

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