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Background
The multi-billion reclamation project of a 650-hectare area off Panglao Bay of the Province of Bohol, Philippines is currently the
subject of opposition from various fronts including fisherfolks, local officials, non-government organizations and local residents.
The project is believed to have high environmental and economic costs as it will hasten the death of a very rich marine
ecosystem in the area. Yet, two big developers are running in the race to bag the lucrative contract to develop the area despite
mounting opposition.

Situated in the most expensive real estate of the Panglao Island shoreline, the project has two giant developers vying for the
lucrative contract with the local government.

Oasis Leisure Islands Development, Inc. (OLIDI) Panglao Waterfront Development, Inc.

• authorized capital: P10M (unverified) • authorized capital: P100 million (unverified)

• signed a joint venture and development agreement (JVDA) • has bagged a contract with Mayor Benedicto Alcala
with the provincial government of Bohol represented by authorizing the same to conduct the feasibility study
then Governor Erico Aumentado and backed by provincial
lawmakers

• proposed reclamation site: 450 ha • proposed reclamation site: 200 ha

• to be situated at the southwestern tip of Panglao Island, • the proposed reclamation area will block the vast
the reclamation project, to be done by building islets in the mangrove area of Panglao Bay which is declared as
area, will be developed as a commercial, entertainment and protected site with only a very narrow opening in the
tourism hub with a residential community middle

• offers P1M to the Provincial Government of Bohol per ha • final sharing scheme to be determined after detailed study
transferred (total=P450M)

The developers build on the need for more land area for the development facilities with the Panglao International Airport already
in the pipeline in the current administration. Arguing that there are areas in the Panglao mainland that remain undeveloped,
these however, are owned by several individuals rendering the acquisition of these lands difficult. The developers thus offer a
hassle–free opportunity for their proposed commercial, tourism and even residential tourism-based communities.

Panglao Oasis Islands Proposed Site Developments Planned Area to be Reclaimed by Waterfront Group

Source: Panglao Oasis Islands Powerpoint Presentation, 2009 Source: Panglao Waterfront Development Powerpoint Presentation, 2009

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ISSUES
ENVIRONMENT
ENVIRONMENT
Classified as an ecologically critical area, Panglao Bay is a small bay at the southern tip of Panglao Island that encompasses the
barangays of Doljo, Poblacion and Danao. Its coastline stretches to about approximately seven kilometers from Doljo Point to
the tip of Danao coastline. Two small islets are situated inside the bay, which are famous tourist sites. It is part of the largely-
managed area called the Bohol Marine Triangle (BMT).

The BMT area covers over 1,120 square kilometers and includes the large island of Panglao, including Dauis, and small islands of
Balicasag (Panglao) and Pamilacan (Baclayon). Scientific researches, including that commissioned by the UNDP/FPE funded
project called the Bohol Marine Triangle Project, affirmed that the area is ecologically diverse, its species richness and
ecosystem function relatively good.

Among the three municipalities in the BMT area, Panglao has the biggest area of major ecosystems having 30 species of the 35
recorded species in the Philippines, nine species of seagrass out of 16 species found in the Philippines and 131 species of algae.
It belongs to the 36 integrated marine conservation priorities in the country (Philippine National Biodiversity Conservation Action
Plan). Hence it is prioritized for protection and effective management because of its ecological importance (provides transition
zone crucial for dispersal and distribution of larvae) and global significance (migratory path of pelagic species).

In the BMT area, 92% is deep-sea or marine water. The surrounding deep-sea environment ranges from 32 to 57 meters deep
and provides migratory route for whales and dolphins as well as habitat for these species and a variety of other marine life
(Profile of the Bohol Marine Triangle, 2003). Eleven of the 22 known species of marine mammals in the Philippines have been
reported in the area. Its richness in marine biodiversity placed Bohol as among the world’s best dive sites. Another
international study conducted in the BMT area is the Panglao Marine Biodiversity Project in 2004, which recorded discovery of
6,000 new species of mollusks and 2,500 new species of crustaceans.

Within the BMT area is also the area known as the Panglao Island Protected Seascape under Presidential Proclamation 426,
which declares 3,856,659 square meters portion of the Panglao Island as mangrove swamp forest reserve.

Key threats to the BMT resources’ health and productivity include impact of climate change, habitat destruction and damage to
coral reefs, unsustainable harvesting levels, and impact from pollution as population increases.

ECONOMIC
Dependent on Panglao Bay are fisheries and tourism activities. About 223 hectares are utilized by seaweed growers belonging
to the Panglao Seaweeds Farmers Association (PASFA), Doljo Panglao Fishermen’s Association (DOPAFIAS) and Danao United
Fishermen’s Association (DUFA). This is also a traditional fishing ground used by fisherfolks coming from as far as Maribojoc
Bay.

This bay is also a major gleaning station of the people living along the area. It is one of the few ecosystems in the Province of
Bohol that sustains a variety of gastropod species with 49 species so far collected and identified (Hermosilla et al., 2007). In
fact, it has been famous as a major supplier of the seashell tiger conch in Panglao and closer municipalities.

It is also a site of two marine sanctuaries of the total 9 and 15 marine protected areas in Panglao and entire BMT area,
respectively. The small islet called Puntod Island situated inside the bay is a famous stop over for tourists on island-hopping
tours for its pristine waters and uniquely-shaped powdery-white sandbar.

Investments made both by local and foreign funding are pooled to protect and conserve the BMT area, which made all
stakeholders accountable to its commitment, most especially the local government.

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The Bohol Marine Triangle through the Silliman University Marine Laboratory (SUML) profiled the Panglao Resources as follows:
Mangroves (200.38 ha); Seagrass (1,928.04 ha); Sargassum (391.15 ha); Coral Reef (281.81 ha); Mixed Coral Reef & Sargassum
(29.20 ha) Algae (7.62 ha).

In Panglao Bay, seagrass habitat covers the largest area. This habitat facilitates migrations of many marine species from the
mangroves to the coral reefs and that loss of these habitats will have a big impact on the connectivity of mangrove to the reefs
(Mumby, 2006). This area, however, is the most directly-affected area in the proposed reclamation. The disruption of the whole
BMT ecosystems poses threats not only to Panglao municipalities but also to its contiguous municipalities, provinces, regions
and the world.

Unknown to many, seagrass habitat ranks as the most valuable ecosystem in the biosphere with a value of US $19,004 per
hectare per year threefolds higher than that of the coral ecosystem (Duarte et al., 2008). Within the BMT area, seagrass
ecosystem alone has an estimated total economic value for direct, indirect and option values including habitat/nursery function
and biodiversity that would amount to Php 2, 380,093.53/ha (Samonte-Tan et al., 2007).

Panglao Bay has the biggest seagrass area of 1,928 ha of the total 2,556 ha of seagrass in the BMT area. It has eight species of
seagrass growing therein. Also, the largest area and most diverse species of mangrove forest stands in Panglao Bay in the
barangays of Danao (21 species), Poblacion (12 species) and Doljo (13 species). The more diverse and larger the area, the more
productive it is.

The complete ecosystem of Panglao Bay also played vital function in making Balicasag Island an important dive site in the world.
Mangroves and seagrass ecosystems have provided buffer or filter zones of wastes and sediments from the mainland. This
system allows coral reefs to be productive and healthy.

POLICY
In April 2010, Provincial Government and LGU representatives met at the Philippine Reclamation Authority (PRA) Office agreeing
to discuss and address the two projects. In 21 June 2010, the PRA wrote a letter to Hon. Edgardo Chatto, current Governor of
the Province of Bohol, informing him of the two studies to reclaim Panglao Island. Pending any resolution against the
reclamation project, the two applications for reclamation in the said area will be processed. This is despite the fact that the
entire Panglao Island used to be protected under NIPAS Law (protected mangroves) under PD 2152. This decree was amended
however by EO 426 by then President Gloria Arroyo in 22 July 2003.

It appears that the Project has not foremostly considered environmental laws and regulations affecting reclamation as
developers constantly drumbeat the yet unsubstantiated economic gains projected as a result of the project. Some of these
environmental laws and regulations affecting reclamation projects include:

• PD 1151 of 1977 “Philippine

Philippine Environmental Policy”
Policy which explicitly requires all public and private entities to prepare an
environmental impact statement (EIS) for every action, project or undertaking that significantly affects the quality of the
environment;
• PD 1586 of 1978 which declared environmentally critical projects (ECPs) and projects within environmentally critical areas
(ECAs) as projects which require the submission of an EIS; and
• DAO (DENR) No. 37 series of 1997 which states that reclamation projects equal to or exceeding 25 has are classified as
ECPs.

There is also a need to revisit the provisions of the BOHOL ENVIRONMENT CODE OF 1998 to check how in line the said project is
with its envisioned development.

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LEGAL
The case involves two offshore reclamation projects that cover approximately 650 hectares of the municipal waters of Panglao
Bohol. The first project was approved for a conduct of feasibility by the Sangguniang Bayan of Panglao, Bohol on February 18,
2009 through Resolution No. 21. It authorized Honorable Benedicto Alcala to enter into and sign a Memorandum of
Understanding with ADNAMA Mining Resources/ACRISSOR Development Corporation/FS Borja Mining & Trading
Corporation/Manila Heavy Equipment to conduct a feasibility study of the proposed “Panglao Tourism Estate Development”.
The resolution was unanimously approved by all the councilors present.

The second proposal was offered through an unsolicited proposal by the Oasis Leisure Islands Development Incorporated
(OLIDI) to the Provincial Government of Bohol, Governor Erico B. Aumentado. Barely two weeks after the said proposal was
sent, endorsed and presented from the Governor to the SP, a Resolution No. 2009-633 was approved authorizing the Governor
to represent the provincial government of Bohol and enter into a negotiation for a Joint Venture and Development Agreement
(JVDA) with the OLIDI on the Reclamation Project off Panglao Bay, Panglao, Bohol, provided, however, that the provisions and
amendments to the JVDA as proposed by the Provincial Legal Office among other conditions, must be made an integral part of
hereof. This was approved on December 22, 2009.

It became a banner headline in all the local papers detailing how the Provincial Government can profit such an endeavor and
how Panglao may become more popular and touristic in its image. The Dubai-like development of Panglao is welcomed as a
good sign of progress according to the papers.

The media-blitz of OLIDI uncovered the approval of the first feasibility study proposal of the waterfront group. This also sparked
instantaneous reactions of protest by the people of Panglao, including other Boholanos.

The Panglaoanons against Reclamation (PARE) was formed. They did very well in bringing their stance on the issue to the media
and to the local community of Panglao and the Bohol community in general. Blogs, Facebook pages and other social networking
advocacies were also created. Resolutions and statements denouncing the proposed project were also crafted, approved, and
released by the different sectors of Panglao. Even the Local Government Unit of Baclayon and Dauis made a resolution against
such project. Late March 2010, another group called Panglao Nature Advocates was formed (PaNA). It reiterated the stance
against the reclamation without any political color.

On March 8, 2010, the Diocese of Tagbilaran sponsored a forum to give the much-needed arena for discussion on the
reclamation issue. For the first time, the OLIDI group presented its project to a general public. The other proponent, however,
did not take the opportunity to present their project proposal. The stakeholders, on the other hand, were well-represented in
said forum. The participants made it clear that they were not against development as long as it won’t negatively affect the
environment and the very livelihood that they depend upon.

Much effort has been done by the opposing groups to extract official copies of related documents from the Municipality of
Panglao and the Provincial Government up to the highest government agencies. It even cited the Anti-Red Tape Act but said
efforts fell into deaf ears. The Provincial Government claimed that the Governor did not sign the Memorandum of Understanding
(MOU) with OLIDI on the Joint Venture Agreement that it proposed. In the last letter addressed to PANA on June 1, 2010 the
Provincial Administrator again informed PaNA in writing that no MOU between the Governor and OLIDI was signed yet. The
Panglao Local Government also failed to give copies of the documents.

A group of stakeholders (PANA, ACSF, and lawyers from PEJC) is currently preparing to file a case in the Supreme Court, using
the Writ of Kalikasan, to stop further developments in the area while all issues against the Panglao Reclamation Project have not
been addressed.

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CALL FOR EXPERTS
There are current environmental studies in the area that signify its critical condition. Among these are the BMT Biodiversity
Study within its pilot sites (Bohol, Camiguin, Siquijor), the BMT Migratory Path-Disruption of Marine Mammals, the German
Technical Cooperation (GTZ) Water Quality Study, an Intertidal and Current Flow Study in the Area, Connectiveness Study,
among others.

However, the developers have also hired scientists who signify otherwise the current environmental condition, usefulness, and
viability of the area. Their hired “experts” have signified to the effect that reclamation, in sum, is actually good to the
environment. They have questioned and refuted the points presented by a local environmental NGO regarding the environmental
impact of reclamation projects with the following statements:

• That the area delineation of the Bohol Marine Triangle appears highly arbitrary since there was no mention of the
coordinates.
• That the data on the inventory of species was obtained in 2003. Does this mean that after 7 years of the inventory,
health of hard corals in the area is still in fair condition?
• That the proposed project area is relatively small compared to the total area that presently has seagrass in the overall
Bohol Channel. The coral reef that may replace seagrass at dredged points can also serve as spawning ground,
meaning loss in habitats will be far from severe or at acceptable level.
• That the only way that we can let experts comment on this issue is to let them conduct primary data gathering on the
biodiversity status of the area.
• That considering the situation in the proposed site, dredging has beneficial effects in two ways. First, it can make the
area more navigable by making the water deeper; shortening the route of local fishermen to their fishing ground.
Second, outwash of seawater from shores towards low tide can become faster.
• That the environmental NGO’s presentation is very general and thus, failed to make a clear point since it is basically a
collection of general information.
• That regarding threat to biological diversity, this presumes that the local organisms exist in the target site. There is
no way a forest can be destroyed if the site is a desert. The contribution to climate change can happen if the local
biomass, mostly seagrass, is released as carbon dioxide emission that may be brought about by conversion of the
shallow water into islands.

In this regard, there is an urgent and dire need to call on concerned scientists and experts to conduct a proper environmental
assessment (including economic valuation) of the area. This is to verify the richness of its marine ecosystem which means a lot
to the survival of marginal fisherfolks dependent on these fishing grounds as well as to subsequently maintain ecological balance
that is the main resource of the thriving ecotourism industry in the province.

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