ESTABLISHMENT OF RESOURCES
Priority areas of the program are social housing, energy and infrastructure development, and environmental protection. These priorities are based on aforementioned geographic and social condition and formally supported by the studies conducted by Urbis Consulting group for the formulation of the Master Development Plan. JFLFI formed a development consortium composed of the local government of San Carlos and Non-Governmental Organizations such as the Ford Foundation and the Consuelo Foundation to come up with the development priorities and interventions with strategic options.

FORMULATION OF OBJECTIVES AND STRATERGIES
Key objectives of the Initiative are:

1. Development of the City into a 45,000 hectare agro-industrial zone by increasing economic activity and agricultural productivity;
2. Improvement of the quality of life of its more than 100,000 citizens through provision of basic services and urban-rural utilities;
3. Protection and proper management of its environment and natural resources.

Strategies to attain the objectives include:

1. formulation of the Master Development Plan;
2. Application of an Integrated Area Development using the convergence Approach;
3. Creation of an independent foundation, the San Carlos Development Board (SCDB) composed of multi-sectoral representation tasked to manage the long-term implementation of the MDP.

MOBILISATION OF RESOURCES
The initial private-initiated financial resources were provided by JFLFI. This amount was used as a leverage to gain support of other organizations such as San Julio Realty, Ford Foundation, and Consuelo Foundation. The financing for the formulation of the MDP worth 16M PhP has been totally sourced from this consortium without any cash outlay from the local government unit.
With the MDP in place, the LGU allocated 3M PhP for the operation of the SCDB. Technical and financial support is provided by the German Development Service (DED) and GTZ for reforestation initiatives and land use planning. Other financial sources are from Foundations, such as the Schmitz-Hille Foundation and W.P. Schmitz Foundation, and donations from private companies and individuals. An innovative strategy in resource mobilization, the LGU further passed an Ordinance imposing a Water levy of 75¢ for every cubic meter of water consumed by residents. This totals 1.2M PhP annually. This fund is managed by the SCDB for watershed rehabilitation and is used to leverage other funds. A Public-Private Partnership with the German Government provided an additional three million pesos for watershed rehabilitation.

PROCESS
Prior to the implementation of the Action, most of the LGU projects and delivery of basic services were reactive and “demand-driven” thereby lacking in strategic direction. These were also focused-targeted thereby not broad-based enough. To answer these twin problems, JFLFI adopted key strategies to set an integrated and strategic development framework involving key community sectors and stakeholders.
During the preliminary planning stage, the NGOs, rural-urban communities and private sectors operating in the covered area made a decision to provide the resources for the formulation of the Master Development Plan. The private sector made decisions in the Page 4 of 9
economic aspect of the project design. They also provided capital infusion and later business investments resulting to job creation.
To promote the social development agenda, several non-profit organizations (JF Ledesma Foundation, Inc., the Ford Foundation and Consuelo Foundation) contributed substantially for the MDP formulation and incorporated projects that are socially relevant and empowering. JFLFI instituted the formation of an independent Foundation, SCDB, to oversee the implementation of the MDP. The creation of SCDB solved crucial implementation problems: program discontinuity due to changes in political leadership, and bureaucratic apathy.
JFLFI established a mechanism for people’s participation through the Local Participation Planning (LPP) based on Participatory Rapid Appraisal leading to a village-level development planning. Regular consultation is done by the SCDB with communities and stakeholders in the process of planning and implementation of programs. To promote people’s interest, the composition of the SCDB includes multi-sectoral representatives from community sectors which includes the Church, education sector, private sector and Civil Society.
The main issue that still has to be resolved is the authority issue between SCDB and the LGU in program implementation. There is also lack of program coordination as there is a tendency for independent implementation of LGU departments. However, this is being addressed using the convergence approach of resource planning.
The SCDB, together with the City Planning and Development Office, monitors project implementation. Project monitoring is through the Local Government Performance Monitoring System (LGPMS) and its impact particularly in service delivery is measured using the Core Local Poverty Indicator Monitoring System (CLPIMS). The use of the CLPIMS is community-based allowing people to monitor the status of their own standard of living consistent with the priorities of the MDP.

RESULTS ACHIEVED
Results achieved are reflective of development results expected:
Result 1 - Improved MDP implementation framework as shown by establishment of SCDBI with Memorandum of Understanding as the basis for LGU to provide PhP3M for SCDBI operation.
Result 2 - Increased investment flow and economic activities. The first Bio-Ethanol plant in the country costing PhP3B is under construction that could generate 40million liters of ethanol annually. A road network totaling two hundred twenty one (221) kilometers is completed linking rural villages with urban facilities and services which had received a national award. A municipal airport and seaport expansion is near completion providing access for economic enterprise development. Rural Development was established through two agricultural training centers which has provided agricultural technology transfers to 917 farming households, increasing agricultural output thus ensuring food security.
Result 3 - Improved people’s access and control over productive resources. Health and education services are provided to all upland barangays. Housing and land tenure security served 3,000 informal settlers through provision of land tenure security yielding national and international award recognition.
Page 5 of 9
Result 4 - Increased forest cover and environmental protection. To rehabilitate the Watershed areas, a water levy amounting to 75c for every cubic meter of water consumed by consumers was instituted with the fund going directly for rehabilitation. A total of 180.08 hectares has been rehabilitated with around 60 hectares covered every year. This was awarded by the President of the Republic of the Philippines - Pres. Gloria Macapagal-Arroyo. The coastal area was declared a marine reserve.

SUSTAINABILITY
The system for sustainability is built into the program. In the financial aspect, the housing program requires beneficiaries to pay the set amortization. This is returned to the program for expansion. For the environmental program, the financial gains from the water levy are used as leverage counterpart to access external funding such as a Public-Private partnership with the German Government and landowning corporations.
Social and economic issues on sustainability are assured through the involvement of communities in decision-making. In environmental projects, Community associations were issued stewardship contracts. The social housing has livelihood skills training on earth-based construction technology benefiting the urban poor beneficiaries. A social enterprise at the community level was created through the production of Interlocking Compressed Earth Blocks (ICEB) and micro-concrete roof tiles (MCR). The technological resources were provided by MISEREOR-Germany. Infrastructure and transportation initiatives led to increased investments and accessibility increasing agricultural productivity and employment.
The cultural issue was addressed by respecting the rights of indigenous peoples (IPs) to become productive within their domains. Payment for homelots was tailored within their capacity to pay on a daily basis. The issuance of Stewardship Contract to Marginal communities in environmental protected areas affirms their right to access natural resources.
The key component of the Initiative is the establishment of the bio-ethanol plant. This is crucial in transforming the existing sugarcane industry to create sustainable green energy source.
In the institutional aspect, JFLFI established the SCDB to perpetuate the initiative beyond political leadership changes as the latter is an independent entity. The MDP was institutionalized through the passing of Ordinance for its implementation until 2020. This is also a Memorandum of Understanding between the SCDB and the LGU of San Carlos which gives responsibility to SCDB to manage the water levy fund for a period of fifteen (15) years.

LESSONS LEARNED
Prior to full implementation, there was a challenge as to how to sustain the Program due to political leadership changes brought about by regular elections. In fact, after the Master Development Plan was completed in 1999, the then outgoing local chief executive was adamant in turning over the Plan to the incoming LCE. To prevent such similar issue, JFLFI pushed for the creation of an independent body in 2001, the San Carlos Development Board (SCDB), to oversee program implementation. It is a lesson learned that the Initiative should be given distinct and separate identity from political vagaries.
Page 6 of 9
Previous to the Initiative, LGU programs were initiated based on political exigencies with emphasis on infrastructure, thus limiting social services and environmental consideration. This concern led the JFLFI to collaborate with other Foundations and private corporations to establish such framework through the funding for formulation of the MDP. It is important that development Initiative then should be a multi-sectoral effort rather than just be a governmental responsibility.
The third area of concern is the comprehensiveness of the initiative. With numerous activities under the program, problems arose as to how to integrate these programs into a cohesive and convergent development initiative. This is particularly tricky as there was a need to balance economic growth and environmental protection. JFLFI initiated a convergent approach wherein LGU departments work with specific non-profit Foundation to implement a project. Regular meetings with representation from each sector/organization are held.
Strategic programming and good implementation performance are tools for support and resource generation. External funding agencies respond favorably to initiatives that have clear development framework and have strong commitment from different community sectors. The current support provided by a foreign government and International institutions is a testimony that resource limitations could be overcome by effective programming.

TRANSFERS
The innovative features of the Program are grounds for transferability. Primarily, the utilization of Integrated Area Development Methodology reveals the workability of promoting balanced development. The trend towards urbanization is a national and international phenomenon and should be the basis of other LGUs to apply the approach before the trend becomes unmanageable and resources are depleted.
The formation of an independent body (i.e., SCDB) is applicable in most cities if some minimal conditions are present: strong private sector, active civil society groups, and dynamic community. It is the efficiency of the SCDB to make fast and immediate decisions that enabled it to transcend government bureaucratic apathy.
The distinctiveness of the strategies employed by JFLFI gained the attention of other LGUs for possible replication. More than 30 LGUs had already visited the City for study exposure on this initiative. While these strategies are based on the socio-political conditions of the City, the same constraints being addressed by the Initiative are present in many Localities. To replicate the project, it is recommended that other cities and municipalities will apply a multi-sectoral approach in development planning and implementation.
There is an effort to transfer the experiences of the environment component of the Initiative, particularly the Watershed rehabilitation into the bigger forest reserve in the contiguous areas. The contiguous nature of the forest reserve in Negros covering eleven (11) cities and municipalities led to the formation of the Northern Negros Forest Reserve Management Council (NNFRMC) where the eleven LGUs agreed to share strategies. As of 2005, San Carlos is being made as a learning laboratory for the watershed programs of the other ten (10) LGUs for projection onto the larger areas of the Northern Negros Natural Park covering about 9,130 hectares.
Currently, ten (10) sites in the Philippines have been identified where Bio-ethanol plants would be built. This is the national plan to reduce reliance on fossil fuel. As San Carlos City is the first among such locales to have commenced the establishment of the plant, it is but proper to make it right the first time even before these happen. JFLFI
Page 7 of 9
has initiated in starting October 2007 a research-based Sustainable Land Use Resource Management System. This Project aims to establish preventive measures to mitigate the negative impact on water and food security and hopefully enable other of those identified locales to learn from the experiences of San Carlos City.