CONTTNTS

ITIESSAGE
FRoMTi'ltCHAIR
2

,,/ THrFOUN|]AION
4
Eocksround 5
T h e F o u n d o t i o n 'Ys i s i o n s
T h e F o u n d o t i o n 'Ms ksion 5
The Bodrd ofTrustees 5
T h e c e n e r o l A s s e m b l yo f 1 9 9 9 6
T h e F o u n d o t i o nS t o f f f o r 1 9 9 9 5

HIGHIIGHIS
0[ oPfRATIoNS
7
A Reviewof ihe FirstThr€eYeo6 a
ECO"Enterpris€ Performonce ro
ProgromPerformonce r2
InsiitutionolP€rformonc€ rz
Thrusitor 2000r Ehsurins
ECO-EnterpriseSustoinobilltyre

/ slrcrntpfioJlcl20
Cooo.[fl
lerDfl
se 0{r\lrlolilcIl
1999Executive
Summory 2l
1999Hishlishlof Aciivities 22

y' rurncnc
tcorNTrnplrsi
32
Sea\{]eed
fdrm n! a[d ]radi[Q I lcfprisr
The DevelopmentContexl 33
The Areo Context 3a
The Instii'JtionolContext 3 9
The TronsformotionProcess 4 l
ProieclResultsond Effects 42

;f rrrunrucraL
REpoflT
50
Reporo
i f I n d e p e n d e nC
t ertlfied
P u b l i cA c c o ! n t o n k 5 t
Stoiemefi of Finoncio Posiiion 52
Sloiement of Revenub!,Expenses,

{ Sioiement ol Cosh Flow 54

'55
N o t e si o F i n o n c i oS l o i e m e n t s
F

MESSAGE
FROM
THECHAIR

\ A /" o." ol lhe onsel of our secono

V V f h r e e - y e o rp l o n n r n gc y c l e .A n d
hoving gone lhrough episodes of
prosperilyond decline during the first
p h o s e ,w e l o o k o t t h e f u l u r e o { l h e
Foundofionwilh greoterconfidencelhql
w e w i l l b e o b l e t o c o n l r i b u l et o l h e
MALLITLIN
S R ,R O S A N N E
recoveryond growth of our porfners ond
lheir beneficiories in poor communilies.

THtSIART'UP
1996: YiAR
TheFoundotion wosbornundervery posilive
condiiions.
ThePhilippineswos
on the vergsol takingoff ond ioiningthe ronksof the emergingmarket

Thestorl-upoclivili€sof the Foundoiionw€ntsmoothlybecouseof this

benignenvironment.

F0RPARTNtRS,
SEARCHING
1997: ANoTECHN0I0GIES
PR0DUCIS
Bul il drd not toke long for us to loce our boptismo{ fire TheAsionfinonciol
crisisbegonin lhe secondho f o{ I 997. Thiswos exocerboted by the El Nifro
phenomenon,which hod disoslrous effeclson ogriculturolproduction.
Thus, iust os the Foundolionbegon to oclivelyseor€hfor portners,
the twin crisesengenderedo more prudentond
products,ond technologies,

T0 AND
l9$8;RESP0N0ING FOCUSING IHt CRISIS
AMI0ST

The situoiiondeteriorotedeven further in 1998 os the full impocrof the

nolurolond'non nrodecotostrophes begonto permeotethedifferentsecto|5

FSSIporrnerswere nol spored by the crises.A number ol occountshod

1o undergosomeodiustments. some, in foct,hod ro be terminoted.

tssl r0tt
 Under conditionsof uncertointy.the Foundotionossessedenterprisesit
supported.We identified those thot hod greoter choncesof survivolond, ot
the sometime. exemplified our stondordsof moximumcommunitycoverose
ond benefit,ecologicolsoundness,
ond economicviobility.
By the end of 1998, we hod compleiedour first portfolioof ECO-
Enterprisesoppropriote for lhe different eco-syslems.

DIRtCTIONS
FORTHT
SECOND
THREI
YIARS
In lhe secondthree-yeorplon,the overollgool wos to ociivelynurlureond
promotethe initiolset of ECO-Enterprises
io full molurity.
In 1999, the obiectivewos to expondthe numberof portnersfor the
differentECO-En'erpr'3es.
Forthe yeo! 2000, the thruslis lo ensurethot lhe
ECO-Enterprises
ore lruly susloinoble.
Finolly,ii is hopedrhot, by the yeor
2001, our portnerscon ochievestrotegicimpoct in the sectoror industry
wherethey belons.

M9 alcOvtRY
Ilt'tottcll
ico iMtrtpHtsis
Forthisyeor,ihe Foundotion georeditselftotokeodvonloge ofthe recovery
thot is groduolly
tokine plocein the region,
'1999,
Problem occounts wenl downto o moremonogeoble level.In
lherewereonlyliverequesls forqdiuslmenls compored to ninein I998.And
of lhisnumber, onlyonewosnewwhilelhe reslhod previousodiuslmenls.
In expondinsour reoch,we identifiedpotentiol
exponsion oreosof the
voriousECO-Enterprises in high-poverty locotions.Accordingly, we pro-
octively seorchedfor portnerswhowerecopobleof runningthe enterprises
well.Twoenlerprises-mjcrotindnce ond coconutcoir produclion-grewot s
fosterpocelhon the rest.
Thus,the levelof opprovols for I999 increosed by obout30 percent
comporedto the prev;ousyeor

THtCHAII.ENGt
tr0R2000:SUSTAINABIIITY
0t tCOtNTIRPRIStS

We ore leorningour lessons. The Foundotion hos monogedto odiustits

ond progroms
slrolegies in thefoceof ropidlychonging
conditions.
As we enlerlhe newmillennium, we hovegoinedmoreconfidence to
ensurelhe susloinobility
of ECO-Enterprises
ond the benefitstheydeliverto
lhe community ondto lhe environment.

3
rssL l9!!
 0us
l t c H i c f t T s0 r T N t 0 P t n a T

oornororro
'o95
a,9*t I r, l h e G o v e r n m e nr o f l h e P h i l i p p i n eosn d S b l ? e r l o n ds i s n e d
f1.
Vo B i l o t e - oA q r e e a e n l o n r h e R e o J c n o no f l h e E t e r n o l D e b ' T h r o u q h ' h i s
osreemenl, Philippinebi oterol debt 10 Switzerlondwos concelledwith rhe creotion
o f o f u n d e o u i v o l e ntto s 0 p e r c e n oi Jt h e d e b i ' sf o c ev o l u e T h e v o l u e o f t h i s f u n d i n
Philippine pesoswos PhP454,822,597 in Septenbet 1995
e o c i e t ,l n c . ( F S S Ii )s o n o n - s f o c kn, o n - p r o f i t
T h e F o ! n d d i i o nf o r o S u s l o i n o b lS
f o u n d o t i o no r s o n i z e di o m o n o s eo n d o d m i n i s t etrh i sf u n d

t?
S VISION
TI]EFOUNDAIION
T h e f o l l o w i n so r e i h e k e y t e r m si n t h e F o u n d o l i o n 'vsi s i o n :

. Sustoinoble enterprises lhor d re <ommunity-orienred, ecolog l(c llv 5ound,

ond e.onomlcolly vioble will be suppoded cnd promored

r Proieds should provide maximum benefil tor rhe moximum number of

benefl.icries.

0N's11/l
Ttlit0uN0AT ssl0N
wiihlhe missionl
wosesidblished
TheFoundoiion

I To serve os o resour.e institulion for the e.onoml. empowerment of

enterprisinsrurolcnd urban commuhilies in rhe Philippines

OFIRUSTiTS
THTBOARD
s o o r df o r 1 9 9 9 :
T h e f o l l o w i n sw e r e e l e c i e di o l h e F o u n d o i i o n 'B

NASSA S r . R o l o n n eM o l l i l l i n ,S P c
C O N V E R G E N C E Romeo Roydndoyon/

HEKS
NATCCO
WAND
MisuelVil!o-Reol
FDC
swtssEMBASSY
DOF Auroro Luz Villoviroy
Corporoie Secretory/LeqdlCounsel Alty. MqNic M.V.F. Leonen

5
tss llll
 N ] C l ]C
t HS
I OF IHE OPERATIONS

L5

THiGENTRAI,
ASSIMBI,Y
T h e f o u n d o t i o ni s m o n o s e db y o n d i s o c c o u n r o b t e , op h i t i p p i n e
NGOs ond ro rhe
brooder public. The phitippine Governmenr,ihrough
the Deportment of Finonce,
dnd the SwissConfederotionore represeniedin the Assembty
ond in the Boord of

The Annuol GeneroI AssembtyMeeringwos hetd tosrMoy

6, I999. The,oltowind
w e r e t h o i n s t i t u t i o n o l m e m b eor ns d t h e , rd e s i gn o t € dr e p r e s e n t o t i v e s
forrhemeerino:

-Misuelvillo-Reol
CONVERGENCE
Romeo Royondoyon/
Jme Rodrisuez
Deporlment of Finonce DOF
Ecumeni(olDevelobm€nt."....;;-]i;
oom rromueot cootttron FDC

G r u D o n o L o k d sn . K d h d h . i ; ; Gr0
r w r s s I n t e r L h U r c hA r d
HEKS
HELVETAS
o 9 o o s o( t r o r o u n d o t r o n
N o l i o n o lC o u n c i lf o r S o c i . tD . ' . t . p m . . t NCSD
NotionolCounc,l in rt* pr"t*-i
of Churches NCCP
NATCCO
NASSA S r . R o r g n n eM o l i , l t i n S
, pC
q Looperofive Dev€lopmsni NGO.CCD l o . l i n T o n c h u l i n s
Podnership o f P n l p p , n e S u o o o ns e r u i r " l i i - , PHILSSA RulhConlos
p p r n eb u s r n e srso r 5 o c r o tp r o g r e 5 s PBSP Gil Solozor
porinership
PhiJippihe for th.E;u.G;; PHILDHRRA
or HumonRosources in RuroiAreos
Women s Action Noiwork fo. De".l.prr.,n WAND
SWtSS
CONTACT Po!lweiiers
SWISS
EMBASSY

IHt TOUNOATION
STASF
The followins were the Foundotionofticersond stoff {or ihe yeor I9991

Eusenio
M. Gonzoles
E n r i c oO . G o r d e
Senior P.ogrom Offi.er
Sylvio RochelReyes-Sescon
Mo. tourdes Eoylon/
c o r l o sS . E n c o r n q c i o n
F i n o n c eo n d A d d i n ' r r o t i ' e O , l i c e r ErlindoTore$Velorso
A d m i n i s ' r o i i vA
es5istont

Driver/Messenger Z e n o nC . C o r , o s e n o
Ulililyperson/Messenger

r930
,

H I O N I I C H IOS' T H EO P E R AOTN S

2.1.

AREVIEW
OFTHE
FIRST
THREE
YEARS

The Foundotioncompl€ted its firlt three yeoB ofoperotion o he end of 199s. This
i s t h e f i r s i m o i o r m i l e s t o n eo f r h e o r g o n i z o t i o nS. o i n 1 9 9 9 ,w e b e g o no n e w p h o s e
by reviewins the evolution ofthe Foundotion,sstroregiesqnd progroms.

1996:
THtSTARI-UP
YEAR
ih. Debr RedudionA s f e e m e n t b e t w e e n t h e S w i s so n d p h i l i p p ' n e
Whir"
Y V Governments wo, sjsned. 1 A L g L s r l o 9 5 t h e F o u n d o r i o ns t o r e d f o r m o l
operolions
in 1996.
T h e b o s i cs h o t e s yo f t h e F o u n d o r i o n w odse v e t o p e d u r i n sr h e y e d i T h i s w o s
s y n t h e s i z eidn t h e l o r m o f o n ' i n t e r v e n i i o nm o r r x .
U n d e r t h i so p p r o o . h ,t h e F o u n d o r i o n FIGUBE
l! THEIilTERVEIT|0
MATF|)(
providesfinoncioI o ssisionceto o n economic
o.iiviiy or o combinotionofoctiviriesof ,win-
n i n g 'o r ' m o d € l 'e n t e r p r i si€n o d € r t o o o i n
moximum posiiive impoct on eco-sysiems.
I n i h e c o u r s eo f i m p l e m e n t o i i o nF,S S I
experimented wilh different iyp€s o! well
a s c o m b i n o l i o nos f f i n o n c i oiln s i r u m e n risn
p r o v i d i n go s s i s l o n c et o i t s p q r t n e r s .T h s
r i n o n c i o il n s t r u m e n tus s € di n c l u d e dl o o n s ,
s p e c i o ld e p o s i t sgi r o n t s ,g u o r o n t e e so/ n d

S l o f ir e c r u i t m e not n d d e v e l o p m e nwt e r e o l s o c r i t i c ool c t i v i t i e isn r h i 5p h o s e .

lg97:
StARCHING
FoRPARINtRS,
PRo0UCTS,
ANDTICHN0l.0cttS
s its interndl sysiemsbecdme fully fun.tiondl, ihe Foundotionrufned jts focus
o n r e d c h i n so u t t o n e w p o r t n e r so n d o n s e o r c h i n fso r i n n o v o i i v ep r o d u d so n d

The siofi conductedseverolbrietingsto introduce iis progroms ond servicesro

p o i e n t i o l p o r i n e . sC. o n f e r e n c e s w e rhee l di n C o s o y o n v o l l e yB, q c o t o dC, e b u ,D o v o o
ond Cogoyon de Oro. As o result, FSSIprocessedmore proiecrsqnd opproved o
hisher omount of investmenrsfor its developmentolpodfolio.
Th€ Foundotiondlso continuedto ut;jizethe 'lniervention Moirix, ds irs guide.
ll olso mointoinedthe d;#erenttypesond combinoiionsof insnumentsin irsfinoncing

U n f o r t u n o t e l tyh, e A s i o nf i n o n c i o l c r i s ioss w e l l o si h e E l N i n o p h e n o m e n o ns e r
i n d u r i n s t h e s e c o n dh o l f o f r h e y e o r
 H G N t I C H T0 S
r THt 0PtRrTt0ltS

1998:
R[SP0NDING
T0ANO
F0CUSINc IHt CRISIS
Al\4l0ST
t,tt i.po"t ot tt'. wos felr in 1998. It wos ineviroblerhor FSStporrne.s
fft'e "rises
& would be offecred
As ihe yeor went on, the Foundorion received more ond more requesrsfor
odiustmentsin onsoins projects.In oll, 9 proiectswere qpproved {or resr.ucruring
during the yeor compored io o sinsle proiect in I997. There were olso 3 proiecis
thqt were terminored, two of which hod been previouslyre+ructured.
I n r e s p o n s €t o t h e t u r b u j e n c ep e r v o d i n si h e s o c i o - e . o n o m i co r e n o , f S S l
conductedo ropid ossessmentof oll proiectsio drow out lessons.The Foundotion
idenrified which of the enterpriseswere copoble of survirns ihroush the crises.
A s o r e s u l to f i h e o s s e s s m e ntth, e F o u n d o l i o no d o p t e do p o l i c yo f p r u d e n c e
o n d p r o - o c l i v el o c u s .
F S S Is t l i c t l yo p p l i e d i i s p o l i c i e si n t h e s c r e e n i n so n d s e l e ( t i o n p r o c e s s e s .
Provisionsfor losseswere olso set up in onticipotionofihe dcute problems fo.ed by

F S SoI l s o b e s o n l o f o c u , o n d e v e l o p i n sd p o r t f o l i oo f f i n o n c i o l l yv i a b l e ,e c o -
systembosed ente.p.ises. Theseore enterprilesthol exemplifiedthe FSSIstonddrds
o f , ( o ) c o m m u n i r yo r i e n t o l i o n(, b )e c o l o e i c osl o u n d n e s ,o n d ( c ){ i n o n c i ovl i d b i l i t y .
T h e e n t e r p r i s ei,n l h e p o r l f o l i oo r e k n o w no s E C O - E n t e r p r i s eBsy. i h e e n d o f
the yeor, lhe Foundolion ideniified irs initiol list of enterprisesfor eoch of the eco-

ECO-SYSTEM ECO-ENIERPRISE
Mulli"Ecosystem
C r o p l o n d sR , plonds '
, i v e r sU CoconuiFib€r,DustProduction
Foreslsond Uplonds Suslqinobl€
Agro-Forestry
Coosto& l Morine SeowsedProduction
Urbon Arsos SolidWasleMonagement

The ECO'Enlerprise,were selectedbecouseo{ the benefit, ihot occrue to the

.ommuniiy ds o whole. Presenledbelow oro the po,iiive efiecis thot the enterprises
ore expecled10 deliver:

SCHEI)ULE
OFEXPECTE|)
ECO.EIJTESPSISE
BEIIEFITS

Sovings

Recyclins Secur;ty

Orgonic Orsonic

lttt
 0S
HTGNUGNT F T l lE 0 P t f l l l l 0 l { s

PERFORMANCE
ECO.ENTERPRISE
Y THR0UGH
R€C0VEfl
l99S: DEtIVERY
PRISE
tC0-tNTEfl
f i n o l l vb e g o n t o l o P e r
The e f f e c t so t t h e { i r o n c i o r c r i s eosn d E l N i n o P h e n o m e n o n
i n c l u d i n st h e P h i l i P P i n e sb'e g o n t o
I ofi in rgss And most asion couniriee
experienceo turnoround in their €conomies'
the Foundotlon endeovored to
To loke odvonloge of PositivedeveroPments'
expond its outreoch dnd benefits'
would be bosed on lhe new ECO'
Ai this time, ihe srrotesv tor expon'ron
evolved'sinceI998 {seeFigvre2 below)
enierprisedeveloPmentfromeworkthot hod
ossessmentof the secior or
Under this opprooch, FSSIconductson iniensive
industrY. li looks oi ris FflAMEW0RK
t)EVEI-oPMEl{T
2' THEECo-ETEPPRISE
FIcUFE
potenliols ond constrornis,
includins k€Y morket Ployers
and iechnolosy holdeB The
F o u n d o t i o no n o l Y l e s l h e
condiiionsund€r which on
enierprisE con hdve gredier
chdnc€sof success
A r m e d w i l ho n i n - d e p l h
knowledgeof lhe diffefent
s e c i o r s ,F S S Ii s d b l e i o P r o - !
coca-Fi'et ardDus\
./ .,""","
[6st€
oclively seofch for quolified
' //
portners, ond olso odvise
propon€nts who whh io PUI
8:""ittlibi, *-*'
up or exPond o sPeclfic

ANO
THEECO.TNITRPRISES PARTNTRS
FSSI
wiih non-sovernmentol
ver time, ihe Foundoiion hds forsed Porlnerships
orsonizoiions' tl:i':'"*
orsonizdiions,.ooperorives,Peoples "" "*:l'
y e o r 1 9 9 9 , F S S e
I x p o n d e di t 5 podn 6 in lwo ECO-EnrerPri(es-
For ihe
Microfinonce ond coconui corr'
new po.lners {or lhe veor-CARD' AB5'
For microfindnce,there were ihree
cBN FOUNDATION'ond CAVALCO
ond Sdndlgon ng Mogsosokowere the
for ihe coconut coir enlerPrise'LIKAS
wos olso orsonized in 1999 ond o
new podne6 Coco Te.hnolog;esCorPorotion
new credir line wos opProveddurins the veor
presentFSSIporhers ;s shown below
A listins of ihe ECO-Enl€rPriseond

l0
 H I C I ]G
T N T SO F T H EO P E N A I ] O N S

ECO-ENTERPRISE F S S IP A R I N E R S
MICROFINANCE N e w R u r o lb d n k o f S o n L e o n o r d o( N R B S L I
Allionce of Philippine Portnersfor EnrerpriseDevetopmenr{AppEND)
l p i l C o n s u m e r sM u l t i - P u r p o r eC o o p e r o t i v e{ t p t LK O O p )
center for Asriculture ond Rurol Developmenr (CARD)
Cosoyon VoTleyConfederotion of Cooperofivesond Devetopmenr
Center ICAVALCOI
B o y o nM i c r o f i n o n c e - A B 5 - C SFN oundqrion
cocoNUTcorR J U B O K E NE n t e r p r i s e s

C o c oT e c h n o l o s i eC s orporoiion
l - i n g o oo o r c r a K o l s u g o . n s S o m b o y or o n { L t K a S )
J o n o r g o nn g M o s s o s o k o
SOLIDWASTEMANAGEMENT I n s i i t u t ef o r t h e D e v e i o p m e not f E c o l o g i . ool n d E d o c o t i o n oAt l r e r n o r i v € s
SEAWEED5 V I C T OC e n l r o lF ! n d / A l t e r n o t i v e
C o m m o d i t yE x c h o n s e
A g o r o p h y r oP h i l i p p i n e sI n
,c
SUSTAINABLE
AGRO-FORESTRY
B r o o dI n i t i o t i v ef,o r N e g r o sD e v e l o p m e n{i B I N D )

ECO
TNTTNPRISES'
OUTRTACH
h e F o ! n d o l i o no s s e s s ei ,t i m p o c tn o t o n l y o n i h e b o s i so f t h e o m o u n ro f t o o n so r
p r o i e c t sb, u t o l s o o n t h € n u m b e ro f h o u s e h o l d rse q c n e o .
T h e F o u n d o t i o np u t , p r e m i u mo n p r o i e c t si h o r o f € t o c o t e di n p r o v i n c e si h c t
h o v e v € r y l o w r o t i n g si n t e r m , o f t h e H u m d n D € v e l o p m e nItn d € x ( H D t )o r r o w n s
c l o s s i f i € d ! 4 r r ' t o6 ' r c l o s sm u n i c i p o l i i e s .
I n l e r m s o f h o u s e h o l dr e o c h , b e n e f i c i o r i e sc o n b e s e g r e s o r € di n t o r ( o )
h o u s e h o l d st h o l o r e e i t h o ru s e E o r c u s t o m e r o
s f t h e € c o - e n t e r p r i sper o d u c t so n d
seryices(e.s. os bofiowers in microfinonce),(b) suppliersof row moieriots dnd/or
processedsoods (e s. os seoweed producers),or (c) employeesof the enrerprise.
The doto shows lhoi through its pqrtners, the Foundotion is obte to reoch o
w i d e s e o g r o p h i c ool r e o d n d o s o o d n u m b e ro f b e n e f i c i o r i o s .

(]UTREACH
ECO-EIITERPBISE
Uptond TOTALS
AREAREACH
5 2
Municipdliiy24a122l37
HOUSEHOLD
REACH
4,288 8,000 12,28A
4,288 600 29 6951
22 58 t0 9l
IOTAL HH5 13,O74
'erdudesmra,olinon.esuppliere
Fove^)roovoiddoube.ounrins

lsSl
 F IHI OPEFATIONS
H I G H T I O NOI S

PERFORMANCE
I9g9PROGRAM

23.1 VS.APPR()VATS
I'/0,OFPRI]POSATS
100
ls9s VS.APPROVAI,S
RTQUESIS
Appfovals n 1 9 9 e , r h e F o u n d o t i o nr e . e i v e d 9 5
80 T I
I
d f o r m o l r e q u e s tfso r f n o n c i n gT. h i sn u m - rl
b e r i s c o m p o r o b l et o t h e l 9 9 S t o l o l o f 9 7
O n t h e o t h e r h o n d ,t o t a l o P P r o v o l s
L
r e o c h e d4 5 p r o i e c t sT. h i si s e q u i v o l e ntto
o liltle l€ssthon 48 perceni oI requests.

1996 1997 1998 1999

IACITITY
GRANIS
THiSI\,1AI.I.
T h e S m o l l G r o n i F o c i l i l yo f l h e sMAt"t t000)
GRAilTS
F o u n d o t i o nh o s b e e nt h e p r i m o r ym e o n s 1,600
of respondins lo ihe volume of requests.
For 1999, o totol of 36 Proieclsreceived 1,200
I Amounl
rlr_
o s s i s t o n cter o m t h i sf d c i l i i Y
I n i e r n s o f p e s ov o l u e , l o a n s s i j l l 800
constiiulEthe bulk of ossistonceApprovols
for the Smoll Grdnt Fociliiy reoched I 48 400
m i l l l o np e s o sc o m p d r e dt o m o r e t h o n 3 l
m i l l i o nf o r p r o g r o mi n v e s t m e n i s 0 T
1996 1997 1998 1999

INVTST1\,1[NTS
NEWPfIOGRAIVI IOOO}
IIIVESTMEIITS
IiEWPROGRAM
A p p r o v o l sl o r 1 9 9 9 i n c r e o s e db Y 80,000
o v € r3 0 p e r c e n ct o m p o r e dt o 1 9 9 8 l e v e l s .
60,000
l l w i l l b e r e c d l l e dt h o t n o i u r o l o s w e l l o s
t h e f i n o n c i o cl r i s i sl e d t o o d e c l i n ei n n e w
40,000
p r o g r o m! n v e s t m e n tisn 1 9 9 8
F r o m o b o u t 2 0 m i l l i o n P e s o si n 2Q,000
1 9 9 8 , d p p r o v d l si n c f e o s e dt o m o r e t h o n
3 l m i l l i o np e s o si n 1 9 9 9 0

t2
rssl l9!9
t H I G H I I C H TOSF T H EO P E R I T I O N S

8YINSTRUMENI
APPROVAI.S
IIEWAPPEOVAtS
8YIIISTRUMEIIT
F S S Iu t i l i z e s s e v e r o l i n s t r u m e n t sf o r f i n o n c i o l
o s s i s t o n cfeo r i t s p o r t n e r s I. n 1 9 9 9 , l o o n so n d e q u i t i e s Equty Grant
10% 2%
were the moin instrumentsopplied. Grdnis were qlso
p r o v i d e do s p o r t o f r h e f i n o n c i n g p o c k o g ei n ( o r e

For the yeor in review, loons continued to be the

predominonl instrumentfor new progrom invesimenis.
Thk constilutedoboul90 percentof iotol opprovols.

BYECO.SYSTi[I
APPROVAI.S
I{EWAPPEOVALS
8YECOSYSTEM
P r o g r o m i n v e s t m e n t sm o y o l s o b e c l o s s i f i e d
o c c o r d i n gt o t h e e c o - r y s r e ml sh o l o r e o f e c t e d '12./a 3la Mul-Ecosysiem
s ere predominontly
F o r 1 9 9 9 , n e w i n v e s t m e n iw 43y.
multi-e(osystemin noture. Proiectsin this colesoryoffect
d i f f e r e n le c o - r y r i e m ,s i m u l t o n e o u s l y .

BYiNIiRPNIST
APPROVAI,S
Croplands/Up
ands/N,,tarine
whicholihe Eco-enlerprises thebisser
obsorbed 42va
porllonof new
ln 1999,ihg significoni
investmenls?
opprovols
was for micro-finonce
ond coconul-bosed IIEWAPPROVALS
BYEI'/TENPRNE

Amonsihe ECO-Enierprises lhoi FSSIoclively 151" 42%

promoles, more rnolure
theselwo ore the relotively

BYREGION
APPROVATS
I n t e r m so f g e o g r o p h i c ol o
l c o i i o nm
, o s io f i h e n e w
o p p r o v q l sw e r e f o r L u z o no n d p r o i e c t sw i t h n o l i o n o l
coverogeW . h i l e t h i s i s n o i o d e s i r o b l es i i u o l i o n ,t h e
c i r c u m s t d n c et hs o t t h e F o u n d o i i o nf o c e di n 1 9 9 9 w e r e IITWAPPROVALS
8YLOCATIOiI
n o t f o v o r d b l eo s t h c e f { e c h o f l h e c r i s i sc o n i i n u e dr o NCR
12% '16v.

T h e d e v e l o p m c n io f n e w p r o i e c t sw o s o l s o
h o m p e r e d b y t h e n e e d i o c o n t o i n p r o b l e m so f F S S I
p o d n e B i n l h e o i h e r i s l d n dg r o u p i n s s( s e es e c t i o no n
p o r l f o l i oq u o l i i yb e l o w ) .

I3
 Hlr {r't! r. i,i aliti;!; nili

f*ssl f u n d sm o y b e d i v i d e di n l o l h e c o m m e r c i o l o n dd e v e l o p m e npi o r t f o l i o T
. he
I $ c o n m e r c i o l p o r l f o l i o p e r l o i n s t o t h e p l o c e m e n t sm o d e w i l h c o m m e r c i o l
esloblishmene t si t h e ri h r o u g hf i x e di n c o m es e c u r i t i eosr l n v e s l m e n iisn i h e e q u l t i e s

O n l h e o i h e r h o n d , l h e d e v e l o p m e npt o r i f o l i or e f e r si o t h e f u n d s t h o t o r e
d i r e c t l yc h o n n e l e di o p d r i n e 6 w h o , i n t u r n , s e r v eo s i n l e r m e d i o r i ebs e l w e e nl h e
F o u n d o i i o ro n d t h e e n d u s e 6 .
T h e p r o f l l eo f r h e d e v e l o p m e npt o r l f o l i oi s s h o w nb e l o w

, r , j l , 1 1t l l i 1 , 'i , ' i I r l t l l ! , i i l r
8YIIISTRUMEIIT
PORTF()LIt)

E x c l ! d i n st h e g r o n tc o m p o n e n il,h e c u t r e n o
l vero

w
EqUly 8%
p o r l f o l i ol s c o m p o r e do f s e v e r o fl i r o r . i o L i n s l r u m e n t s : 9%
l o o r s , s p e . l o d e p o s i t ss, u o r o n l e e so, n d e q ! i t y .
L o o n sc o n s l i t l t et h e m o i o r p o r i i o no 1 6 8 p e r c e n t ,
f o i o w e d b y s p e c i o ld e p o s i i s( 1 4 p e r c e n l ) ,e q u i l y ( 1 0
percent),ond proiecl suoronrees{8 Perceni). spl
69%

i ' rr l lLr {: l i 0 l l Y l l 1 [ i l J l '

F S S Im d l n l o i n sp o n c r s d n d p r o i e c t si n o l l i h e 8YRE0l0ll
P0RTF0U0
m o i o r i s o n d q r o u p i n g so f i h e c o u n l r y . NCR
, o s io f
I n l l n c w l h i h e p o l i c yo { i h e F o u n d o l i o nm
t h e p f o e c l so r e n t h c p o o ra r e o si n L l z o n ,V l s o y o so, n d

0 8Yt c0 I hTlllt'rlsi
I'0rtTt01.
10%
M i c r o f n o n c e o n d . o c o n u l ' b o s e d e n l e r p n s c sh o v e 47vr
bccode predom nonl in ihe presenl porltolio A signl
f . o n t p o ' J i o n o { n e w o p p r o v a s f o c u s e do n t h e s e s e c i o K . 8YICO_EIITERPRISE
P{)BTFOTIO
M i c r o f l n o n c ei n n l u l i o n s c o n i i n u e t o i h r l v e
' r - p l o l e l l _ e vo . \ e o 1 l '
41Yr
findncol innii!iions desisned lo serve poor
enirepreneu.s who have imited nks w;ih the

lorro .ecror O1l'1c ol\er l_drd ro'olJielie' 3%

p ' , ( e o r e 9 ' o ^ . 9 b e c or 5 e h F y o r e o b l _ l o ( e N e
no ora l _ el o c o l r e e d . b L l o l o o g r o s r q e , p o -
coco
26%
As s!ch, ihe FSSl pori{olio for ihe iwo
e n i e r p r i s e sh d s e x p o n d e de v e n u n d e r o d v e B e c o n d l l i o n s .
 H G H I I O H TO
S' I H T O P E f i A T I O N S

2.3.1.

Pottfolio RESTRUCTURING
QualitV t hod been noted thar opprovols for new
PEOGFAM APPBOVATS
IIIVESTMEI/T
I
l o c c o u n t s d ; p p e d i n 1 9 9 8 b u r r e c o v e r e di n
'1999.
In reolity, during ihe post two yeors, the 15
I I m mffi
+off devoted much time not only;n deveiopins
new proiectsbut in renesotioring occountsthot l0
hove encounreredproblems due to the crisk.
lf th€ opprovols for restrucluring were
odded to ihot oi new investments,the number
of opprovols would hove been olmost constont 1996 1997 1998 1999
Newinvestmeits I

NUI\,IBER ACCOUNTS
OFAFTECTED
T o m i t i g o i e t h € e f i e c t so f t h e 1 9 9 7 c r i s e s ,i h €
Foundolion employed severol meosures: d Pro"dctivs
opprooch ro enterprise develoomer' o more rigorous
opplicotion of guidelin€, for new proiech, ond o
concenirolionof effods lo find
to ih€ problemo.counts.
rEsolutions PROGRAM N U M A E RO F A C C O U N T S
'|
ADJU5TIVIENTS 997 l99a 1999
Asof 1999,problemoccounls
l 9 5
hoYebeen confin€dprimorilyto
1 9 l ll
pre-l998 opprovols, i.s. proiecis
lhot hovebeendirectlyoffectedby F o 1 6 c l o s e d / L € gAd cl t i o n 3 3 6
Thisis on indicoiion
lhe crisis. ihol 2 3 5
'I
the meosur€sundertok€nhove l

OTACCOUNIS
CTASSIFICATION
The positive resulls of fSSI's efforts moy olso be
sledned from the clossificofionof occounts. 0t AccoullTs
ctAsstFlcATlol/
T h e d i { f e r e n l p r o i e c t so { l h e F o u n d o l i o n o r e E
D
clossif;edoccordinsto the ir .epoymentperformonce The c 13% 1vr
B lt
outsionding boloncesof the different occounrsore then 3%
consolidoied occording to the clossificotion.As such, it
tl
reflectsthe portiolio ol-risk oI the Foundoiion.
Fsslfollows o slrinsenr .lossificotions.heme The
A occountt ore those thot ore uPjo-dote in iheir
poymenrs.Those in S ore post due beiween l-30 doys
On rhe orher hond, C occounls ore Post due berween

l5
tssl
I
HIOHI]GHT
OST T f T O P E R A I I O I I

3 l ' 9 0 d o y s ,w h i l e t h e D p r o i € c r so r e d e t o y e di n r h e i r
repoymenisby more rhon 9t dols. E occounisore those
o c c o u n t st h o t o r e b e i n g t e r m i n o i e d q n d f o r w h i c h
p r o c e e d i n stso c o l l e . l l o o n b o t o n c e sh o v ec o m m e n c e d .
Bosedon ihe 1999 doro, posi due occountshove
b e c o m em o n o s e o b l e(.t nf o c r ,o s o f F e b r u o r y2 o O OC
, DE
qccounrshove been reduced to tessthon percen,
t0 of

NATURI
OFPROBTTIV]S
PB()EIEMS
t)FCDE
ACTS
w h o l w e r e t h e p r o b l e m se n c o u n r e r e d A ? ropid
d s s e s s m e noif t h e e n d , o f , l 9 9 9 p o s ld u e o c c o u n t rse v e o l
ihoi theywere focedwith lwo int€rretotedp.obtems:poor
c o l l e c i i o n os f o c c o ! n t sr e c e i v o b l eo, n d b u s i n e s tso * e s .
P r o i e c t tsh o t h o d r e m o i n e di n t h e b l o c ki n s p i i eo f
c o l l e c i i o n sp r o b l e m sh q d u r u d t t yr e c o v e r e dB. u r r h o s e
t h o t h o d n o t b e e r o b l e r o c o t t e c t o, n d h o d b e s u n r o
r n c u rn e t l o s s e sw e r e m o r e d i f f i c u t r i or u r n o r o u h d

TltttostN0
BUstNtssis THE
t0SiGSUStiJESSES
Ths nextquestionisrwhor wsre the businesses
that
w e r e l o s i n s ? T h € r o p i d d s s e s s m e nrt e v € d l sr h o r 6%
11%
insiiiulions providing loons soletyfor dsriculrurol
p r o d u c i i o no n d i h o s e i n i o t r o d i n go f c o m m o d n r e s
1e.9
r i c e . . o r n . r i " e r o c l , c o n s J m € ' g o o o s )w e . e t h e r o o .

T h e E l N i 6 o o n d l - o N i n o p h e n o m e n oc e r t o i n t y
p l o y e do m o i o rr o l e i n t h e p r o b l e m se n c o u n l e r e d
byrhe
p o d n e r s o s p . o d u . l j o r o n d c o n s u m p r i o nc y c t e sw e r e

r0cATl0l,l
0FP808tEM
ACC0Ut/TS
GEOGRAPHICAI"
CONCTNTRATION
li is interestingto nore thdi probtemocco!nts hove
o seogrophicol concentrotion A review of the proiecr
s i t e sr e v e o lt h d t i t w o s p r e d o m i n o n t lryh e M i n d d n o oo n d
V i s o y o so c c o u n t st h o i f o c e dp r o b l e m s .

87%

t6
tssl t99 t
 H I C N I ] C H TOSF I H i O P E R I T I O N S

?.4.
Ig99INSTITUTIONAL
PERFORMANCE

0rganizational
Aspecls I\,lIiTINGS
OFIHi GENIRAI
ASSE[,18I.Y
"t*he Sixrh Generol Assembly ^reetihg. LostMoy 6, 1999, o iololoffifteen (15)
I representotiveslrom member-institutions ottended the offoir. The Erecutive
D i r e c l o ro f t h e F o u n d o l i o np r e s e n t e d
t h e h i g h l i g h i so f t h e p r e v i o u sy e o r .
A discussionomong lhe membeB centeredon how to expondthe developmentdl
portfolio of ihe Founddtion. Towordsthis end, the stqfi wos tosked io study ond
preseno
- p l o i s l o o S p e c i oG
l elerolA5serbly
The sevenlh Meetins ot lhe cenerol Assembly. This wds convened in
A u g u s l I l , 1 9 9 9w i i h e l e v e nm e m b e r so i t e n d i n s .
D u r i n g t h e m e e t i n g , o p p r o o c h e so h h o w t o e n h o n c e t h e p o r t f o l i o o f
developmentol proiecls were presehted.The dkcussionsthot {ollowed tocused on
lhe n€ed to bslonceihe goolo{ increosingoukeoch ond lhe obilily of the tou$dqiion
t o o b s o r br i s k ss o o s n o t t o e n d o n s e ri l s v i o b i l i f y .
A f l e r s o m e e x . h o n s eo f v i e w s ,t h e c E n e r o lA s s e m b l ym o n d o l e dt h o s l o f f i o
c o n t i n u ee x p o n d i n st h e d e v e l o p m e npt o r l t o l i o T h e e f f e c l so f t h e i n c r e o s e w
s ill be
reviewed on o yeor'fo-yeor bosis.

I\4EETINGS
OFTHEBOAIIO
OFTRUSTIES
T h e B o o r do f T r l s t e e sw o s o b l e i o m e e i s e v e n( 7 ) i i m e s f o r l h e y e q r I 9 9 9 .
These meelings ol the Boord provided the venue for the dkcussion of policiesond
presenlolionof proieclsbeins recommendedfordssistqnce.Oihermoliers pertqinins
w e r e q l s ol o c k l e dd u r i n s t h e s e
l o o n s o i n s p r o i e . t so n d o c l i v i t i e so f t h e F o u n d o t i o n

SIAFF
CONFfRTNCES
Aside lrom regulor meetings of ihe Foundotion'stwo units progrom ond
occouniins/odmjnistroiive- two sioff conferenceswere olso .onducted during the
yeor Thesewere held in July (in Lo Union) ond in D€c€mber (in cebu city) where
both uniis presented their respectivelofgeh ond oct;vitiesin conjunctionwilh rhe
Boord opproved Foundotionplons.Theseolso ofiorded qllthe stofi membeE to visit
rhe proieci sires ond interoci with some of the Foundotion'sproiect portners ond

11
tss 1!9t
t
l ] C H IG H T SO F T I l E O P E R A T I O N S

AND TRAINING
DEVEI,OPI'IENI
STATF
In supporrofthe Foundotiont miss;on,opporluniiiesond resourcesore Provided
to ihe stoffto improvetheir professionolond personolskillsthrough stoffdeveloPmenl
ociiviiies Durins the yeor,the stdff otiended lhe followinq lroining co'rrees:

Course/SeminorTille Number ol Sloll Atlending

1 Troiningor AccounUng Sollwore 3 oc'ountinq/adminstofi

2 Tro nins on MicrosofiAcces (ddiobosel 3 Pros'om& 2 occts/odminstofi
3 De inq!encyMeosuremenl/ControL lMicrcfinonce) I Prosrdmsloff
4 rox Semnor & Economlc Reform I occls/odminstoll
5 Troininso. R€lriseroiio.& Airconservcins I odnl toJf
6 E l e c l r i c o l T r onignC o u r s e I o d mn s l o f f

24?

ti aIciitl NTVENUTS ANDNtT INCOI'/]F

VS.I/ETIIICOME
REVEIIUES
Petfotntance o m p o r e dw i l h 1 9 9 8 ,t o t o l r e v e n u e s 60
--;"- /,.-..\ -t-!
f o r l h e y e o r d e c l i n e db y I 9 p e r c e n i 50
-a. -
This wos primorily due to lower inleresi 40
r o l e sp r e v o l l i n sl n t h € m o r k e i
Tololexpenses,however,hove been 20
F
c o n i l o l l e ds o i h o i n e i i n c o m e r e m o i n e d 10
s l o b l eo t t h e r o n s e o f 7 0 i o 8 0 P e r c e nol t 0
1996 1997 1998 1999

tFrtcTlvtNtss
cosT C(}ST
EFFECTIVEIIESS
T h eF o u n d d i i o ins m o n d o i e di o k e e p 30
o p e r o l i n ge x p e n s e sb e l o w 2 5 p e r c e n io f 25
r e v e n u e so. p e r o t i n s e x P e n s e sh o s b e e n 20
definedlo be ihe slm o{ qll expenses, 15
e x c l u d l n sp r o v l s i o nfso r l o s s e so n d s r o n i s . 10
F o r i h e y e o r ,o P e r o t i n ge x p e n s e si s
5
only l8 percenl ot iotol revenles, o Pro-
0
p o r i i o ns i i l l w q y b e l o wt h e u P P e rl l m i i 1999
1996 1997 1998

GROIITH
FUND
ihe
F S SoI , m st o p r e s e t u el h e . e o l v o i u e o t t h e C o u n t e r p o rFt u n d( d e f i n e do s
l f s o m e4 5 4 m i l l i o nP l u 5o . c u m ! l o t e de o r n i n g s )T o d o t h i s ' l h e g r o w i h
i n i l i o l o m o u no
rqte of ihe Fund should exceedihe onnuol inflolion roie

IB
1999
 'IHI
H I C NG
L H T SO T OPERAIIONS

A s o f t h e e n d o f 1 9 9 9 ,r h e C o u n i e F
GROWTH
FUI|/O
12
p o r l F u n di n c r e o s e rdo o l m o s t6 0 8 m i l l i o n FundGrowthRate
I
f r o m 5 6 6 m i l l i o ni n 1 9 9 8 .T h ; sr e p r e s e n t s 10
on increose of obout 7.4 per.ent, much 8
I lnirallon
Rate
I
h i s h e r c o m p o r e dt o t h e o n n u o l i n f l o l i o n 6
L
rote of 6.6 percentfor the yeoi I I
In foct, the Co!nterporl Fund grew
2
i n r e o l t e r m si n 1 9 9 8 o n d i 9 9 9 .
0
1996 1997 1998 1999

INCO[4E
FSSI VSAPPROVAI.S
The Foundolionkies to strike o
APPF(]VALS
VS,FSSI
IIICOME
bolonce beiween the nsed to Provide
70.00
o s s i s t o n c et o a s r o w i n s n u m b e r o f
60.00
I
communitiesond its mondote io preserve
50.00
I l h e v a l u eo f i h e C o u n t e r p o rFt u n d T h i s i s
one of the reosonswhy it hos exercis€d
40.00 -a
30.00
p r u d € n c ei n l h e P d s lY e o E .
Concretely,the net income for lhe 20.00 Y--.'
I y e o ri , o m o i o r f o c l o ri n s E l l i n gt o r s e h f o r
t h e v o l u m eo f o s s i s t o n cfeo r t h E f o l l o w i n g
1000

1997 1998 1999

FOR
THRUST 2OOO:
YEAR
SUSTAINABILITY
ECO.ENTTRPRISE
ENSURING
-l.he
iniriol porlfolio of ECO-Enterpriteshos been comPleied.The Foundotionhos
g identilied the opproprioie or€os for exPonsionond is continuollv seorchins for

In ihe courseof prosrom implementdtion,it mov be obseruedihol lhe Poceof

d e v e l o p m e ni ts n o t i h € s o m eo c r o s s i h ev o r i o u sE C O - E n t e r p r i s eFso r i h e v e o rI 9 9 9 ,
two enterprises-mi..ofinonce ond .oconut coir Production-hdve morured fosier

Efiorts will be devolod to nurlurc the other ent€rprisesinto moturitv These

include,solidwoslemdnosoment,teoweedProducion,ond sustoinobl€osro-forestrv
ll ,s etDected. however,lhol lhe yeor ?OOOsholl be devoted lo ensuring ihe
sustoinobilltyof5uccessfulECO_Enterprisesotthecommunitvlevelsorhorthevcould
continue to provide b€nefitsio the torset householdsqnd eco-svsiems.

19
rssl 1990
 s P t c r aP
t S0Jtcl

Ig99EXECUTIVE
SUMMARY
COCO.ENTERPRISE
T"AINING & PROMOTION
ANDTECHNOLOGY DEVEI.OPMENI & DISSEMINATION
PNOJECT
(Sspported by rhe Ford Foundorioh)

coco-enGrpri.e
eroiecrhs ndo moinobiecrives.
Th€

I. COCO.TNTEflPRIST
TRAINING
AND
PffOMOTION:
To provid€ NGOS, sovernment ogencies ond priydie institoiions,
with informotjon ond exposureto the coco-enierpriseso thot they
con docida wheiherthey should invest in it, operoiE it themselves,
or use its pfoducis€sp€ciollyforlheir nolurol resourc€monogeneni

2, COCO-TECHNOTOGYDWNOPIl1ENIANDDISSEMINAIION:
Todeveloponddisseminote
coco-bosed
tschnolos
iesihol will hovE
on jmmediqi€posjliv€
useond impdcton d€srodeduplondond
osricuhurol
ecosystemsondonrhslivelihood
of communilies
livins
in thereecosyslems.

The first yeo. of the proieci concenlraled moinly on three ospects.Fi6t wos
coco'enierprisetroinio
nns d p r o m o i i o ni n w h i c h4 s e m i n o r s w e r eh e l d .T h k i n c l u d e d
i h e p r o d u c l i o no f o v i d e ot h o t w o u l d h e l p i n t h e p r o m o t i o no t c o c oc o i r p r o d u c t s .
S e c o n dw o s t h e e s t o b l i s h m e not f l o c o l o n d i n i e r n o t i o n o lm o r k e i l i n k o s e s ,t h e
distribution of sdmples ond fulfillmeni of smoll orders to vorious buyers. Lostwos
lhe volidoiion of the efficocyof seoweed enhonced cocopeoi ond the developmenl
of the pelletizing processfor its opplicotion.

21
rsst 199$
I
S P E C I APTl ] O J E C T

COCO-EI{TERPBISE
TFAIIJIiIG
AIIOPROMOTIOII
I999 A..ohplishnents

Co(o-Enterprise Semihors Therewer6 o toto of 273 poru.iponis in Actudl notworkingond morkel

H o l d i n go l 4 s € m i n o B- N C R ,L u z o n ,
Visoyosond Mindonoo. Cemulollve ro.set
ot 80 porliciponl550% ofwhich vould be
oble lo use the re.hnology
the 4 seminoc held In oddiiion, o kit
contqinins inlormdtion on lhe scienrlfic,
tech.l.dl, financiol dnd sociol ospe.ls of
the enterprke wos producedond
developmenthos iust bo9un. llwill
p.obobly rqke o yeor more before such
porlicipdn|sore oble ro decide the extent of
t h e i r i r v o l v e m e n t w i l ihh i s t e c h n o l o g y
dopending on lh€ growth ol the mdrkel,

Md.kering A.riviries Theseresuliod in 3 octuql buyero,2 trom Given lhe iniliql resulls,lhere is now th6
!ocdl drd nlerndliono morkeung Luzon & I lrom M ndonoo, rololi.g ro 3 5 n e e dt o p l d nl o r o n l n . r e d s el n p r o d u d i o n
developmentocivities will be conducled mi llon pesos n src$ sqles There dre 4
including the fosreringof strotogicollionces oiher pendins req!€sh: 3 Luzon dnd l
w/ the Deporlmeni oi Agrorlo. Relorm& vlsqyo! lor desisn work, vorrh 3 million
Depodment ol Agricultur€ In the.US,meel pesos if proiech push through.
ot leasi 20 corldck ond linoliz€ mork€iing
pldn w/ EcoTrust,o US-bosedNGO.

E o t h2 0 o n d l 0 - m l n u l ev € 6 i o n so r e o n t h e A d d t i o n o l w o r ko n i h e s c r i p lo n d c o m p u t e r
Producriono{ o 30-mi.lle tideo lhol l i n o l s t o s eo l € d i tn s d n d w l l l b e I i n i s h e d g r o p h l 6 . o u s a dt h € d e o d l i n €t o b € m o v e d
would show the opp icoiion & benel k ol ffom Dec€mb61 r 9 9 9 t o F € b r u o r y2 0 0 0
cocop€orond fiber Producls

COCO-TECHI{OLOGY AIIODISSEMIIIATIOII
OEVELOPMEIII
I999 A..o'nplishments

fSSl Experimentql fdrfr w i t h t h e F a r md 6 v 6o p m e n rp l o n f i n o l z e d , Form preporotion olso incl!ded the

Th€ DevelopmEnlp or for rhe 6.6-h6ctara c o n n r u c i i o no l t h € F S S l T . o i n i nCg a n t e r , p r o c e s s i nosl e g o l d o c u n e n r so n d p 6 m l t s .
o . d i n S i o n s , c o v i e w l l b e p r e p d r € da n d Coco Tech P.ocessingPlqni qnd oth€r The Form is expe.iod io be oparqtionalby
supporl strucluresbegon ldi6 1999 Thes6 Moy 2000
ore FSSI'sond Coco Te.hl r€spective

Enhdr.ed Growing mediq
E n h o n . e dg r o w i f g m € d i ol o r m ! o l e d d n d
o F p l i e db o t h i n r h e e x p e rm e n l o l i o r m o n d
on{ ie. Elf€ciiv€use df co.oP6ot growlns
medio in 50,000 hectoresol croPlonds
'lhe
Sorgo$ud seoweedlortiLizefwos The mds produclion of s€owe€dond
s!cc€$l! ly lesled in srrdi€gicor€os slch co<opedtpelleh is n€eded in ord€r10
ds Boguio,Bicol ond Cebo. Th€ tochno osy lmprove ferlilizer oppLicotiondnd
l o m o s s - p r o d ! cs€e d w e e d . o c o p e d l p e l L e l sproduclivily.Thk wds lhe moin leson
wds dlso porf.cled dur ns lhis lime, eorned d!ring the regiohol tesh.

lnstollol on siteswere ere.ted in eoch oi Networking ond morkeling preceded

Antl-erosionsyslemsdesignodond
insroled. Applicolion of cocoJiber onii-
.roslon systemsin 50,000 hectaresoJ
the semino. oreos TheseresulJodin orders
lrom tho Bellecorp. ffosoytdyl, suyen
corF [covjJe]ond Aldevincocorp. lDovoo
clYl
o . i u d l s i t ai n s l o l l o t i o n T
s h Gl n d u d e dl h e
srdrl ol coord notion ociivitiesw/ DPWH

soilSdmpling & Iesring EquiPmenr S o l l t e s l i n se q u l p m e nhr c v eb e e np u r s o i l l e s u n qw o s h e l do l o n s s i d et h e

5oi ondlysisequipdent p!rchqsed & c h o s e di;f i i d l l e s t i n gw d s c o n d u . r e do t l h e developmentof the sedweedfertilizef.
o n o j y s i so f s o l l d e l i c i e n c l er o
s be v d r o u s s i l e si n r e L d l i o 1n ol h e l o r m u l o t i o n
o.d iesl nq of ihe seoweedledilizar. rhere
wos o.equed by o vegetobLegrowers'
l e d e r o lo n l r o m B e n g l e t f o r s o i ld n o l y s i s
sedi.€s niherprovince

22
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 AL PROJICT
SPEC

1gg9 OI ACTIVITIES
HIGHLIGHT

ioco' SI[/lINAR ANDPARTIC]PAT

DISIGN ON
:Iterprise
Yhe first port of the yeor entoiled finolizins the design ond prepordtionsfor the
Serltnals X coco enterpr;seseminors.The prosrom wos divided inlo three Ports. Dr .lustino
A r b o l e d o l J u b o k e nP r e s i d e not n d C o c o T e c hC E O I r o l k e d o b o u t b i o e n s i n e e r i n g
opportunitiesfor co.onut.oir producls.Togelherwilhil, ecologicolondsociqlbenefits,
E n s rJ o eR i s ol F S S l C o n s u h d nh tol n d l e dt h e o p p l ; c o l i o on f c o c o n ! td u s ti n o s r i c u l t u r e ,
horticullure ond osroforeslry Finolly Enrico O. Gorde IFSSIAssociote Ereculiv€
Direciorl presentedthe s obol ond locdl morkel potentiol os well os its technicolond
{inonciolrequirements.A kilwos produc€dwilhvoriousorliclesthotwere subsequenily
d i s i r i b u t e ldo t h e p o r l i c i p o n tosn d o l h e r p o r l n e Eo f F S S l o n dC o c o T e c h[.P l s r e f e r1 0
c o c o - e n i e r E r ksee m i n o rk i i l .
F ou r c o c o e - n t e r p r i s see m i n o r s w e r he e l di n 1 9 9 9 .T h e f i r s l w o s f o r t h eN q t i o n o l
C o p i t o lR e s i o n( N C R - M o n i l a ) h e o y i t yA P r i l2 9- 3 0 T h e n f o r t h e V i s o y o s
l dt T o s o l ' t o C
b y t h e M i n d o n o o- D o v o oC i t y
r e g i o nh e l d i n C e b u C i l y J u l y8 - 9 . T h i sw o s f o l L o w e d
l e s A u s u s l2 3 - 2 4 o n d f i n o l l yL u z o n' B o s u i oC i t ys e m i n o rS e p t e m b o2r 3 - 2 4 S i n c e
i h e c o i r o n d p e o i i n d u s l r yi n v o l v e ,o l l s e c l o l so { P h i l i P P i nseo c i e l rl h e r e w o s o w i d e
r o n s eo t p o d i c i p a n t s w h o w e rien v i i e dt o p o r l i c i p o i e i n l h e c o c o ' e n t e r P r i ssee m i n o r s
T h e l o b l e b e l o w s h o w s t h e b r e o k d o w n o f l h e 2 7 3 p a r l i c i p o n i sf r o m v o r i o u s
c o m m u n i l i e sp, r i v o l Eo n d g o v e r n m e nitn s t i l u l i o ntsh o l o t l e n d s d .

-€I{'IE8PRlSE
t)FCOCO
COLLATIOII SEMINAB
PABTICIPANlS
N C R - M e t r oM o n i l o
NGOs & Foundotions t8 41 t6 too
P O s& C o o p e r o i i v e s 9 7 6 22
L o c o l G o v e r n m e nUi n i t s 2 l 7
Governmeni Offices t3 to 12 59
B d n l s I F u n d i n gI n s l i l u r i o n s 2 3 2 7
P r i v o i eC o r p o r o l i o n s& S e r v i c e s to 2 17 t5
A g r i . u l t u r o lE n t e r p r k e s l I 6 t5
U n i v e B i l i e s& R e s e o ( h I n s l . 2 9
Oihe6 3 2 t0
49 68 62 273
Nole: Aduo nunber of podic pont5 12731was 3a0% obovethe orisino rorsetofS0

23
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 S P T C l APTR O J E C T

Given ihe potenliol positivesociol impoct of the coir ond peot industry there
w e r e s e v e r o l N G O s , D e v e l o p m e n tF o u n d o t i o n s ,P e o p l e ' sO r g o n i z o t i o n so n d
Cooperotiveswho oltendedihe semino6. Thisis seenos qdvontoseousfordevelopins
o "moss bose" support for revivins the indusiry There wos olso o good number o{
L o c o l G o v e r n m e n t U n i t s o n d N o l i o n o l G o v e r n m e n l r e p r e s e n t o t i v e fsr o m t h e
DepqrlmentofAgror;on Re{orm,Deportmenlof Environmentond Noturol Resources,
Deportment of PublicWorks ond Hishwoysomong olhers who otiended, olong with
numerouspeoplefrom PrlvoteCorporotions.Other poriiciPontsincludedconsultonts,
r e s e o r c ho n d m e d i o p e r s o n n e l .C o c o T e c hF s S lw o s f e o t u r e d i n o m o i o r d o i l y
, e P h i l i p p ; n eD o i l yl n q u i r e ri n S e p t e m b e1r 9 9 9 o s o r e s u l t .
n e w s p o p e ri h

Marketing I.OCAI.
IVAflKETING
Activities -?-he riEt
y e o .o { ^ h ep r o i e ( tc o n c e . l r o l e d
o n e r l o b l i s h i n pg o r t n e B h i po5n d o i o r c e s
I w i t h p o t e n l i ofl r o n c h i s e l ss,u p p l i e r q
s n d c l l e n h .T w ob u y e n f r o m L u z o n n
, omely
B e l l eC o r p . o n d S u y e nC o r p , o n d o n e f r o m M i n d o n o o ,A l d i v i n c oC o r p , q o v e C o c o
T e c h3 . 5 m i l l i o n p e s o sw o r i h o f s r o s ss o l e si n i i s f i l s t y e o r . A i l e a s l 6 0 % o l l h i s
o m o u n i w e n t d i r € c l l y1 o l o w - i n c o m er u r o l h o u s e h o l d sp r o d u c i n sc o c o f i b e r n e l s .
F s s l p r o v i d e do t o t o l o f 5 m i l l i o np e s o si n l o o n si o N G o s o n d P O si n s o r s o s o nf o r
o d d i t i o n o lc o c oc o i r o n d l i b e r p r o c e s s i n os n d p r o d u c l i o nc. o c o T e c ho n d F S s lo r e
o l r o n o w i n t h e p r o c e s so { f i n o l i z j n sf r o n c h i s e
/ l i c e n s i no
s g r e e m e n i si ,n a n t i c i p o t i o n
o f s r o w i n s s d l e si n 2 0 0 0 .

INTERNATIONAI,
I\.4ARKTIINC
In Februory,Dr Arboledo wenl to ihe Us io oilend on exhlbll on soil .onservoiion
o n d b i o e n s l n e e r i n sT. h e r e h e m e i w i i h v o r i o u sp r o d u c e r sd, i s t r i b u i o r so n d e n d '
u s e r so f c o l r o n d p e o t p r o d u c i s o
/ n d c o l l e c i e dn o m e r o u sc o n l o c ti n f o r m o t i o nt o r
, r G o n z o l e so n d D r A r b o l e d o
f u l u r em d r k e tl i n k o g i n so n d p o r l n e l s h i p sI n. O c i o b e rM
d i t f e r e ndl i s i r i b u l o r sr e
b o l h w e n i t ol h e U n i t e dS t o l e s i oe s i o b l i s cho n l o c l s w i l h , tollerc
o n d e n d - l s e r so f c o i r o n d p e o rp r o d u c i s .T h e yp e 6 0 n o l l ym e l w i t h 2 8 d k t r i b u l o B
who oll expressed i n i e r e s ti n i h e C o c o g r e e nl i n e o f p r o d u d s .M e e i i n g sw i l h t h e s e
d i s i r i b u t o 6w e r e o i i o n s e d b y E c o T n r sol ,U S - b o s e dg r o n t e eo f t h e F o r dF o u n d o i i o n .

l i w d s o b s e r y e dt h o i t h e t r o d i i i o n o l i n e o f o n i i - e r o s i o np r o d ! d s s u c ho s i h e
coco neis, rolls dnd mdk remdined nrong in the morket. New ines howeve. were
d e v e l o p i n s . T h e s ew e r e c o c o f i b e r p l o n i l i n e r s u s e d f o r h o n g i n s p l o n l s o n d
e n r i c h e dc o c o p e opl e l l e t sC
ornomentolsond . o c oT e c hw i l l c o n i i n u et o e x p l o r eJ h e s e

rssl r9tt
 SP E C L API R O ] t C I

fter reviewins vorious proposols {rom severol video production groups, FSSI
Video ,tr{
rf s e l e ( l e dM e d i o C i r c u i tI n c . .o r i s r e rc o m p o n yo l P r o d u c t i o V
n i l l d s eC o r p . ,r o
Production
produce borh 20 ond 1o-minute documenroriesfor the promoiion of tho coconut
coir ond peot indusiry.

Both videos ore to be completed by Februqry2000. Remoiningstops oI ths

v i d e o p r o c e s ,i n c l u d ed i g i t i z i n ge, d i t i n go n d s o u n d h o c km i x i n g .

Inhancc0 TEST
RTSUTTS
Growinq A
'oid' o f . r c p s w d e u r e d l o t e s l l h e e f f i c o c vo f s e o - e e d f e r l i l i z e tro f i n d o u l
lvleia f-l h o " c o c o p e ocr o r b e f J r l h e re n h o n c e do s o 9 r o * i r g m e d i u m .T h i sw o s o l s o
to prove thol soil rehobilitotionond fertilizoiion,hould be crop specific,i.e. fertilizers
e i i h t h e n e e do f s p e . i f i cc r o p s s p e c i e T
s h o o l db e o p p l i e di n o c c o r d o n cw s .h e s e w e r e
t e s t e do n ( o )l e o f y v e e e i d b l elsc o b b o g e ](,b ) h i s h v o l u ec r o p sl s i r o w b e i i i e Ek, ) r o o t
c r o p sl p o i o i o ,c o r r o l l (, d ) c u i r l o w e l s( e ) o r n d m e n i olltsr o p i c o l i o(l f, ) c i t r u lsc d l o m d n s i l ,
o n d ( 9 ) r i c e .l n D e c e m b € rC, o c oT € c hw o s d b l et o s e c u r eo n E x p e r i m e n i dUl s e P e r m i l
from ihe Ferllllzerond PesticidesAuthority (FPA).Furlher iesls were lh€n conducied
i n L o T r l n l d d d ,B e n g u e lo n d P u g o ,L o U n i o n . O n e c o u l d c l e o r l ys e e f r o m i h e i e s l
r e s u l t st h o t i h e e f f i c o c yo f i h e s e a w € € d - e n h o n c ecdo c o p e o ir e s ! l t e di n h i g h e ro n d
b e l l e r c r o p p r o d u c t i o nl p l s . r € f e f t o p h o l o si n A p p e n d i xD l . B y 2 0 0 0 , C o c o T e c h
expectsto set o licensefor ihe produclion ond dklribuiion of pelletized sesweed-
coco pooi feriilizerr.

[1ASS
Pfi0f]UCTt0N
0FFtnTtUltn
PttUTS
l l w d s o b s e r v e dd u r l n gl h e t e s l i n gp r o c e s tsh o i o p p l y i n gt h e s e o w e e df e r t i l i z e irn i i s
p u r e p o w d e r f o r mr e s u l i e di n w o s l o g ed u e l o w o l e r r u n - o f f d n di n e q u o l i t yo f w o t e r '
s p r o y i n go p p i c o l i o n . T h i s e d C o . o T e c ht o e x p e r i m e not n d d e v e l o pt h e p r o c e s so f
c o m b i n i n ss e d w e e dp o w d e ro n d c o c o p e o l i n t o f e r t i l i z e rp e l l e l s . T h i s s o l v e dt h e
w d s l o g e p r o b l e ms i n c et h e s e p € l l e t sw e r e f o u n d t o b e e o s i e rt o d p p l y t h o n t h e
p o w d e r - l i q u ifdo r m . A k o , t h e p e l l e l s o o w f o r l o n s e r o b s o r p t i o n l h e r e b y e l i m l n o t i n s
the problem of run-ofi.

25
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 sPEC
At PS0tECT

FSSISilang TARM CONCTPT ANI)OESIGN

Ixpefimenlal n I 4 9 9 , p l o n sf o r t h e F S SSl i l o n sE x p e r i m e n t oFlq r mw e r e c o m P l e t e d 2. h e c t o r e s
I
Farm of o
l o u l o f t h e 6 . 6 h e c t o ' e sw o u l d b e l e o s e dt o C o c oT e c hl o r t h e c o n s l . u c r i o n
Prr o d u c t i o nt h, e P l o n t
p r o c e r s i n gp l o n t .A 5 i d e f r o mb e i n g t h es i t e f o r o r g o n l c f e r l i l i z e
would olso seNe o5 o modelfor ldterinvestoE inlere+ed in fronchisi.g dgreements
The remoinins 4.6 hecior€swould be devoted for the reseorchond Productionof
h i s h v o l u ec r o p ss u c ho s v e s e t o b l e sc,u i f l o w e r co n d t h e l i k e . T h e F o r dF o u n d o r ; o n ' s
ossisroncewill be used for thes€ resedrch,developmentond promotion octivities
Given the foreseendemond forlhese, FSSlwouldbe enterins into "9row-out"
oiiongements with olherformers in the oreo, not iustfor livelihood PurPoses,bui os
o way to disseminole formins ond soil rehobiliiotion technolosy os well Also, o
Troinins Center is beins construcledon the Form os o venue for soil, formins ond
b i o e n g i n e e r i ntse c h n o l o g yt r o i n i n s .

AClIVITIIS
CONSTRUCTION
Conslruction oclivities{or the FSSISilong ExPerimentolForm stoded in November
B € l o w i s o l d b l e s h o w i n s i h e p r o i e c t i o n sf o r t h € o n s o i n g m o i o r i n f r o s l r u c l u r e
Plontwill bEfullv operolionol
dev€lopment.li is exp€cledthotthe coco Te.h Processins
by Morch 2000, while the FSSITrdining CentEr will be completed bv APril of ihE

Site elow is o summory of ErosionControl Coco Tech inslollolion sit€s in

lnslallations vorious ports o{ the counlry

lnstdllotion

BelleCorp 20,000sq.m.

SuyenCorp Covite 2,269sq.n.

(sench)

Dovdo City 5,000sq.m.

S p l e n d i dG
o old 20,000sq m.

Cebu ljnitins for Sibusoy, 1 , 0 0 0s q . m .

LoTrinidodciry slopeslobiliudtionof 1 , 5 0 0s q . m .
roodwdyond schoolyord
PongiRiver, 1,000sq.m.
DMCM Inc. Dovoo Ciry

26
tssl 1999
 s p E c t a tP S 0 l E c T
I

Colation
ol 1999
Coco-Enlerp
se
SeninarParticipanls

Nolionol Copitol
Region-Togoyioy City CebuCiry Dovoo Cily Boguio Ciry Sub-Totols
April 29-30 Jull. a-9 August 23-24 Sepiember 22-23
NGOs&
18 41 25 t6 r00
POs&
6 22

l 2 3
Unils

t3 t0 24 12 59

2 3 2

10 2 17 44

I 6 t5

6 2 9

Olhe6 3 l 2 lo
Tolols 49 58 94 62 273

21
FSS lrgt
 s n E cA t P n 0 l t c r

Seminar
coco-EnletPlise

2B
 S P E C I API NO J E C I

frum
scenes lhe
Video
Production
Shool

29
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 S P T C I A TP f i O J T C I

Media
Grcwing
Enhanced Tests
CloP

CAB8ACEIC€Ni€RIASAGA NSl1HOSE
P CTUR€OF UNIREATED
IREAT€OWftI SE^WEEDFERTI!ZER
[fiANO R CHT] ON6 N CH!
IGFI]THANUNITEATED

POTATO€S
OF UNTREATTD
PCTURE AGANSTTHOSE
IC€NTIRIAS
FERT
Wft SEAWftO
IRTATED UZER
ILEFTANORGI-ITI

30
rssl 1999
 SPECIAT
PRO]TCT

Coco Inslallalion
Tech Sites

I
I

! TACAYTAY
MIDLANDS
ISEtrECOR4

coRP)Ar DASMARTNAS
lsuYFN cav TERrcfr, rfE sAar SToPEAFTER

ff1ANOTNER PORIIONOFIiE SLOPEISfFORF!9NG TNF COCO

3l
tssL 1999
 ErlrEsGrNc
tc0 ITER?flts!

IHTDfVfI,OPMTNI
CONITXI
IFfAf,A'IING
/-ITADIXG ENTERPRISE

lb sca$eed he sedweed industry is o sector wh€re rhe Philippinesenioys o comPetitive

odvontoge.Asdn orchipelogo,the counrryisendoved wiih vost oreos of shqllow
raefs scdtteredover lhe different islondswithin th€ terrr;tory The obunddnce of th€
reefs mokes ihe Philippineson ideol ploce for seow€edproduction.

TYPES APPIICATIONS
ANDCOMI/IERCIAI OI STAW€TDS
pres€.lyovailoble.O{lhis number,
Th€r6ore over40ovoriElisso{ soowoods
obout60 specie3hdv€comm6r€iolvolueTh$6 includetho following:

EXHISIT (]FSEAWEEOS
I, TYPES
Lo.dlNcme Extrd.ts with Uses/Applicdlions

Gro.ilorio Agof-ogor Agor c0lrur6 mediumfor

Golow-golqw
m€diqrsellinsoseni,
thickEn€r,bind€rfor
Gulomon

Sorgo!!um Kulopu Alsin Fertilizer,pesticide,

Somu b;nd€rfor onimolfeeds;
surfocecootingogent

bqcteridl, onimol feods

S u s p e n d i no snd gellins
osenl in food thicken-
Cottonii non-gellins iype) i n g , p e t f o o d sq n d d r u g
formulqtions; slqbilizins
ogents for toothposte,

cosmeiics,shompoo

s.enrli. o. ra.hnno relerencerrcler to whot s.ommonly.dled "Eucheuno?os "KqpPophycus,"

m) ond KopPoPhycuStiolum {Colronii) One.p*ienoyhove
erher brown or s'eei.olo,

33
lt99
 EG
E[']ENGIN CO.ENTERPRISE

Some
As moy be sleoned from the toble obove, seoweedshove severol us€s
it€ms-In generol'
con be consumeddirecilywhile othersseNeos insredienisin food
enroctedfrom seoweeds-suchosogor' corogeenon
howevei industr;olPhyco.olloids
is whot drives
ond olsinotes ore much more voluoble. The need for these exirocts
rhe morket for seoweeds

ANDTXPORTS
PROI)UCTION
SEAWTTO
AGCREGATE
economv
Seoweedproductionis one ofihe emersing sectorsin the Philippine
of the PhiliPpines'
Over the yeo6, it hos been omons the toP osricullurdl exPorts

2, PIlILlPPINE
E)(H]BIT PRODUCTION
SEAWEEI)
1990 r995 % chonge

292,47) 466,954 + 59v.

806 + a10k
loidl Exports/Csrogeenon
36,880 + 4.3Y0
a9,aa9 84,551 + TOY|
VoluE(Us$000)

( o m r f e r c i o l - s c o lEeu c h e u m o f o r m i n gi r t h E
Histot! T h € P h i l i p p i n ehso s b e e ni n v o l v e di r
p r o d ' r c e r / s u p p l i e r soef o w e e d
, , T h e c o u n t r vh o s m o " e df r o m o r o w
ol EucheumaI l o e o o r u opfocessed Coroseenon
of
Pro0ucltonto exporler
A l e c h n i c o sl u i l i n 1 9 9 3 - 9 6l o d i s q u o l i f vt h s p r o d u c tf r o m t h e
iniernolionol
inthe m o r k e t o ny f e s u l t e di n t h e c r e o i i o n o f os e P o r o t e c l o s s i f i c o t i o n f o r P h i l ; P p i n e N o t u r o l
PhilippinesG r o d e ( P N G )c o r o s e e n o n
production
Exhibii3 nocesihe d ifferentPhosesin the developmenJof Eucheumo
o n d c o m m e r c i o l i z o t i oi nn i h e c o u n t r v

34
rssl
 t M E n G t Nt C
G0 - E t { T t n P n r s t

EXHI8IT
3. MIITSTOITES
III THEDEVEIOPMEIIT SU8-SECTOR
OFEUCHEI.]MA
Phose r: DiscoveryPeriod
I960',s D i s c o ' e r yo ' q i l d E r c h e u m os e o w e e di n t h e P h i l i p p i n e s8i0 o i o n r e x p o ' l e d
1960++ Mossivegoihering of seoweed;slorl of propogotion techniques.
E s l o b l k h m e not f s e o w e e db u y i n sc o m p o n i e sS - c h e m b e r s{ 1 9 6 7 ) ,G e n u P h i l .{ 1 9 6 7 ) ,
F M C{ 1 9 6 6 ) ,M o r c e lT r o d i n sC o r p o r d i i o n( 1 9 6 9 )
1969 successfulopplicotion 9f culture techniques
Phose 2: Commer.iol Operotions
1972 storl of commerciolconhocl forms in Towi-towi, lolo ond Zomboongo
1978 S e o w e e df o r m i n ss t o r l , i r B o h o l ,C e b u ,L e y l eo n d S o m o r
1979-AO. F i 6 i c o r o s e e n o np r o c e s s i nps l o n i ( s c h e m b e r s - F i l i p i o
nwo n e d )e s t o b l i s h e idn C e b u
Estoblishmeo n lt o t h e rp r o c e s s i n pg l o n i , f o r C o r o s e e n o n
1986 ' E s t d b l i s h m e notf S c h e m b e r sR e { i n e r p
y l o n if o r c o r o g e e n o n
1990 M o r e t h o n 8 5 , 0 0 0f o l n i l i e si n v o l v e di n s e o w e e dl o . m i n s i n J o l oo n d T o w i - t a w o
i reoa one
Phose3: Internorionol Recognition
1992 T w o A m e r i c o nf i r m sf i l e d o c o s et o d i s q u o l i t P N GC o r o s e e n d no s f o o d o d d i l i v e .
1993-1996 H e o r i n s si o t h e d i s q u oi t P h i l i p p i n ec o r d g e e n o no s f o o d o d d i t i v e .
I995 T e c h n l c oCl o m m i i l e eo f C o d e xA l i m e n l o r i u Cs ommission o n F o o dA d d i l i v o s
( l n t s r n o i i o n owl o r c h d o so n F o o ds r o n d o r d sc) l o r s i f i e dP N Go s o n e d i b l ec o r o g e e n o n .

1996 E u r o p e o np a r l j a m e n ci r e o l e do s e p o r o i ef o o d g r o d ec i o s s i f i . o l i ofno r t h e P N G .
1997 I n c r e o s ei n p r o d u c t i o nl e v e l s ;r o p i de x p o do f P N Gl o E u r o p e
Phose 4: Noturol Threots

1998 E l N i n o " L oN i 6 d w s o i h € fp h e n o m o n o nc o u s e sd e c l l n Ei n p r o d u c t i o n
1999 Componlesin C€bubor€lyoperoiins al 500/"
copocily
duelo lowsupply
SedweedIndusiryAssociolion (SIAP)
o{ the Philippines plonsfor produclion
meetsto discuss

tne TROi,l
PROOUCIS
EI\4ERGINO CARAGEENAN
tor
Demand
lalecouseori serensvecorrerciolopp coliors. EJcl'e,no horo'eodynorker
Iucheuma f , J l o c o l l y o r o o b r o o d .r e c h n o l o sc o l d i r c o v e -e s i n l h e u s e o f C o r o s e e n d nh d v e
l e d t o o s p u r ti n i h e d e m o n d .
The growth oreos for new prod!cis ore:
. S c o ! r i n qC l e o n s e r s
' ConlrocePtiveGek
. wo!nd Dressings
. Biotechnology
. lrdL.r.o sJspe*iol ond sluriies

o ill growoi
I t k e s t i m o i e dt h o t w o d d w i d ed e m o n df o r C o r o g e e n o nE u c h e u m w
o n o v e r o g eo f 3 p e r c e n p
t e r o n n u mi n v o l u m e w h i l ed e m o n df o r r e f i n e dc o r o s e e n o n
w i l l i n c r e o s eb y 5 t o 7 p e r c e n t .

35
rssl lt9t
 E I \ 4 8Gf Il N GE C O - E N TPERf lI S T

ESIIIIJIATED OFPHII.IPPINE
DEMAND PROCTSSORS
The Philippinefood sector is oxpectedto conlribute io domestic demond For
the yeor 1999, it wos estimo.ed ihot oggregote demond of locol processorufor
eucheumo seoweedslwet) reoched 102,000 metric tons.

EXHIEIT I]EMAOI IS99

4, ESTIMATEO
III'IMETBIC PERMOIITH-WETI
TOIIS
%
2,5OO 30
FMC 2,000 23
5chembers 2,OOO 23
Genu-Fhilippines 1,000 tl
Quest 500 6
Others 500 6
Monlhly rorol 8,500 100
Annuallotol 102,000
sour. s.ow€€dIndu.tryA$oclqrioh.tlhe PhiliPpln.!
lslAP),1999

TheSupply PROI)IJCTION
PATTERN, I974.I9OI
ofEucheumaproduciion (E.Cottonii)hosb€€nincrgosinsTodote,th€ Philippin€s
occounts
I voriety(UAB1997)
for 809"of th€ lotolworldsupplyofth€ Euch€umo

O(HtBtT 13741998
PATTEFil,
5. Pf,0oucTtoll lMTl
120000
110000
100000
90000
80000
70000
60000
- ouanlily(MT) 7:
50000
/
40000
30000 /
20000 - - -
=-;z
0
RSSS
EEEEE

36
rss l!tt
 ESTIMAIED
SUPPI,Y
It is *timoted thor supplyof euch€uniovorieryf.om rroditionoloreos of
production reo.hed ohoul 8,000 metric tons per month or on oggr€got6 of 96,000
metrictons per yeor(werbosis).

E)(HIEIT
6.ESTIMATEO INIS99
SUPPTY
(II METSIC
T(}IISPERMOIITH-WET}

Towi-lowi 3,000 37
2,OOO 25
Zdmboongo"Bosilon 1,500 19
1,500 19
EsflmoledSopply per Month 4,000 loo
GstlmolodSupply - 1999 96,000
s.u@: s.qw€€dIndu5tryAllo.iolionot th€ Phllippin.rlslAP),l9tg

An oppoilUnily From ourdoroonrhedomond

ondsupply
of€uch€umo,
it isobvious
thotth6re
fOt I is on oppodunityfor developm€nt io so inrolhe productionof th6
onrr€pren€urs
€ucheumovdri6ry.In reolit, in 1998ond 1999,procsssing plontswere operoiing
Developmenl b€low50%du€ 10the lock of supplyof cottonii. ThE€xhibitbslow colculotss th€
Enlrepreneurs€xt6ntof thE dgficiEncy.

EXHIEIT
7,ESTIMATE
OFTHE OEMAD.SUPPI.Y
GAPlll ]99S
fiiIMETFIC
T()IIS
PEBAIIIIUM-WEII
Esrlmof€dDemond 1999 t02,000
EsllmoledDemond 1999 96,000
Deficlt
Estimoledor€o Equivdlenl(hsclores)
(pr6d.Esi.@12.5T/ho per onnum-wetl
Estimqted
numberof growerfomiliss
(@2,500sq.m,per fqmily)
sourcs:
seow€€d
r.dutryAso.iotion
ofthePhilippine, 1999
{slAP),

li k e+imoted thot.los6to 5OOhe.tdrer ofnewform oreqs need ro bo opened

io soiisfythe growing demond. This level is expectedlo involveo minimum of 1,900
fqmili€!.

37
lt99
 E D I EGf I N CE C O ' I N T E NSPER

CONTEXT
AREA
THE

Traditional f f n e - " * . y i s b l e s r e dw i i h o b o u t 1 8 . 4 m i l l i 6 nh e . t d r e so f s h o l l o wr e e f o r e o s
t s c o t i e r e do m o n s i t s m o n y i s l o n d sA. t t h e m o m e n l ,o n l y o b o u t 1 0 , 0 0 0h e c t o r e s
Areasfor qre os productionoreos, implying thot there is much room for exponsion.
Cullivation ulilizedEishiy percent (80%) of the p.oduction oreds ore locoted in Mindonoo The
Sesweedlnduitry Associotionof the Philippines(5lAP)mentions ClossA ond Closs B
oreos.ClossAoreosoreirodilionolsourceswhieClossBoreosor€exponsionoreos
ExhibitS liststhe moior producersin the country Butthere ore silll other specific
o r e o sw i t h c u r e n l p r o d u c t i o nw h i c ho r e n o i i n c l u d e ds, u c ho s M i n d o r o ,P o n s u i B
l oy
o r e o , B i c o l( R q p u - r o p ius l o n d ) C
, o r o nl s l o n d( P o l o w o n ) .

ABEAS
EXH8IT8. FAFMIITG FORE.COTTONII - 1999
CULTIVATIOI{

C L A S SA
2,644 35% 33,600
1,920 25"/" 24,OOO
I,536 20va 19,24O
998 13"/o 12,475
B o h o l I ( D o w o h o ns i d e ) 347 3,838
230 3"/"
Torolclossa 7,679 r00% 95,944

EXH OFFAMIT
BIT9, IIIIMBEF ESINVOLVED
Iitjelihood seoweedformlns is o household-
b o s e do c t i v i l yT. h e m o l e so r e m o s t l y
Genetalton
i n v ov e d i n p o n t i n g o n d h o r v e s t i n g .
byRegron The wiie ond other household
N o d h e r n / C e n t r oLl u z o n
S o u l hL u z o n / B i c o l / P o l o w o n 30,700 32.3
m e m b e r eo r e u s u o l l yi n v o l v e di n 6,850 7.2
dryrn9. 2,O50 2.2
l n l h e c o o s l o lo r e o s ,s e o w e e d
5,200 5.5
industryprovideso livelihoodto nore N o r l h e r nM i n d o n o o 200 o.2
sr obout2
i h o n 9 5 , 0 0 0h o u s e h o l do S o u t h e r n / C e n t r oMl i n d o n o o
percentoflhe ioiol numberof people 300 0.3
employed in osriculture, fishins, 49.750 52.3
95,050
't00.0
h!niins in I996.

38
 E M E R G I NEG
C OE N T E R P R I S T

I Processin0I n o d d i i i o nt o t h e l i v e l i h o o df ,o r m o le m p l o y m e nits g e n e r o r e db y o b o u tl 4 p r o c e s s i n g
t:iililies
an0
The coroseenonprocessinsindustriesore locoied mostly inthe urbon oreos of
: "!l0vrnenl
Cebu province.These componies prov'de employment to urbon households. lt is
;€reration e s t i m d t e di h o i t h e d i # e . e n rc o m p d n i e sd i r e . i l y h k e 1 2 , 0 0 0i n d i v i d u o l os n d o n o t h e r
l 2 , O O 0i n d i r e c te m p l o y e e s .

rtlenlral T h e S I A Pi d e n t i f i e dt h o l t h e p o t e n t : ool r e d sf o r e x p o n s i o nm o s t l yi n i h e V k o y o s .I n

iieaslot N o r l h e r nM i n d o n o ot h e o r e o sn e o r C o m i s u i r h o v e b e e n t e s t e di o b e s u i i o b l e{ o r

ir!anSl0fl
EXHIEIT
IO,POTEI{TIAL ABEAS
EXPAI{SION
Size
CLASS
B
50 t0 250
Cebu 50 t0 250
100 20 500
Bohol2(unspecifi€d) 1 0 0 20 500
Norlhern
Mindonoo 200 40 500
TotalClossB 500 r00 2,000

THE CONTEXT
INSTITUTIONAT

r o r o S L ( ' o i n d b l eS o c : e l yl l.c . ' l ^ e ' eo . e 4 i n v i t u l o n s

l & p o d { r o m ' l ' e F o Lr d o l o i
l{ in o '"o '",t p ' o i e c -T
. l - e s eo - e T i e v i ( o y o r c e n r r o l F u n d .T h e A l ' e r n o | v e
"
C o m m o d i t yE x c h o n g e S y s r e mo, n d t h e C o o s t d R l e s o u r cM e dndsemenP t roiect.
Bo.ksroundinformoiionond the lnniluiionol d rc nsementso re d iscussedbelow

Centtal
IheVisayas Fund(VCF)
V C F i s o c o o p - b o s e do r g o n i z o i i o n p r o v i d i n s d e v e l o P m e n tf i n o n c i n s i o
. o o p e r o i i v e si n i h e V k o y o s l r f i n d n c e so n o v e r o s eo f l 2 m i l l i o nw o r t h o f p r o i e c t s
yeorly. lt occeptsinvesinenls ond depositsfrom cooperoiivesond non-govefnment
o r g o n i z d i i o ntso s u p p o r ti i s i n i l i o l i v e sl.i h o s b e e n i n o p e r d i i o ns i n c e1 9 7 8 . l t h o s
i 6 0 r n v e s l o 6d n d s e r v e 52 9 . o o p e r o i i v e s / o r g o n i z o t i o n s .

3S
l!9t
 C O . T N T EINSPEf l
E [ 4 € N G I NTG

E)(change
c0mmodit! (ACES)
Sustem
IheAlternative
in l996 lt is ensqsed in the
AcEs is o cebu- bosed corPorotionesloblished
bv its
ube' bdnono' rice' feeds' Produced
trqdins of vdios form prodrcts' es
mo+lv of cooperorives from rhe Visdvos'
porrners4 memberin'eslo6 lts membe6 ore
producers {its members) ond
**n"".,"', oa* **'O"s irode fdcilildiion between

troding Bvthe end ot 1999' income

I n 1 9 9 8 , A C E Sv e n t u r e di n l o s e o w e e d
of ih toiol ner receiprs
lrom seoweedlroding comPrised 90%

Management
Res0urce (CRMP)
Ptojecl
TheCoaslal
o USAID{unded initiotive' sefled
The Coostol ResourceMonosemenl Proiecl'
doing
t h e s e o w e e df o r m e r s c R M Ph o d b e e n
o s t h e k e y o r s o n i z o l i o ni n o r g o n i z i n s
C R M Pc o n s i d e rteh e s i t eo s
* . * , ' * e H i l L r l u n s oonr e os i n ' e l 9 9 6
""''-...*., p r o i e c l sl' l
f o r c o o s t o rl e s o u r c em o n o s e m e n t
o n e o { i l s c o m m ! n i l v l e o r n i n so r e o s
os o
t e c h n o l o s vo n d i h e u s e o f C o t i o n i i
* " . a * " t t * t i n l r o d u c e dl h e n e i b q s

l o s e r v eo s t h e c o r eo f l h e p r o i e c i
A l o c o l{ i s h e r m o no s s o c r o l L o n woorss o n r z e d
finoncins
ofihe communitvwho will ovoil o{ the
It is envisionedthoi lhe other members
b e c o m em e m b e r s
o n d l e c h n o l o e v( u s eo f c o t i o n i i )w i l l
CooPeroiivewos ioPped to
A locol cooperoiive, ihe Cordovo Muliipurpose
lo discu'sswilh lhe ossociotionihe
prcvide troininss in pre'cooperolive formoiion
seoweedformers
volue of formins q locdl cooPerotiveof

FOBTNEPBOJECT
ABBANGEMENTS
1I,IIIS'IIIUTIOtlAL
C R M Pl o o k i h e l e d d r o l e i n r h e EXH18I1
lnstilutional
\*he
$ p r e p d r o i i o no f i h e p r o i e c pl roposol
Arrangemenls A f i e r ds e r l e s
r h o t w o ss ! b m i t i e d1 oF S S I C o m m u n i l Yo r g o n r z r n q
of meetinqso , p o r i n e E h i pd g r e e m e n l CRMP L e o d e r s h i tPr o i n L n g
T e c h n o l o s yt r o n s { e r
w o ss i s n e di n 1 9 9 7o m o n sl h e f o l l o w i n s
C r e d i tM o n o g e m e n l
s i i h t h e { o l l o w i n gk e v r o l e s :
i n s t i t u l i o nw
F i n o n c i n so n d C r e d i l S u P P o r l
A S e d w e e dC o n s u l l o t i v eF o r u m vcF fund iniermediotion
w o s o r g o n i z e di o c o o r d i n o i eI o c o l T r o i n i n qo n l o d n m o n o g e m e n i
locol
o c i i v i i i e sT. h e f o r u m i n c l u d e dt h e L i n k d g ew i t h P r o c e s s o r s
ACES T r o d i n go n d M o r k e i i n go s s s t o n c e
fepfesenloiivesf rom ihe communitydnd to locdlorgonizotion
the
c o n c e r n e ds o v e r n m e n o l f f i c e sl i k e
Deportienl of Envirormenidnd Noturol FSSI T e c h n o l o gD
y eveloPmenr
os
R e s o u r c e sT h e f o r u m m e e t se r i h e r
on eniire bodvor on o Per instiloiion
bosis os ihe need onses

40
 I I I E R G I N 6I | : O E N T E R PSST

PfiOCESS
]F{ETRANSTORMATION

SuflrmatV n porlneBhip with ihe olhe. institut;onso n d t h e l o c o l c o m m u n i t yt,h e p r o i e c i

sousht io ochievethe following obieclives k o n 1 9 9 7 - 2 0 0 1 l

12.SUMMAFY
EXHIEIT OFOESIFEO FFOMTHEPFOJECT
SESULTS

C o m m u n i l yO r i e n l o i i o n l n c r e a s e dh o u s e h o l di n c o m 6l r o m s e o w e e df o r m i n s
D e v e l o p m e .o l f l o c o lc o p o c l i yt o e n g o g ei n d i r e . i s e o w e e dt r o d i n g
E c o l o s i c d lS o u n d n e s s A d o p t i o no f h o r e p r o d u c i i v feo r m i n sl e c h n o l o s y
E n h o n c e vd i o b i l l t yo f s e o w e e dt r o d i n go s o n e n i e r p r i s eo l t h e c o m m u n i i yo n d t h e N G O l e v e l

Asstslance ASSISTANCi TOVCT

ifo l FSSI I n 1 9 9 8 , V C F o c . e p t e do s p e c i o tl i m e d e P o s i tf r o m F S s lo m o u n t i n st o P h P
. h e m o n e yw o s i n t e n d e dt o p r o v i d es e e dc o p i t o il n i h e f o r m o t l o d n st o
7 5 O , 0 O O OT
t h o p o t e n l i o cl o o p s r o l o r co f l h e s e o w e e d " f o r m i nPsr o i e c i .
T h i so m o u n t w o r g I p e r c e n o t t i h l o t d l l i m e d e p o s l tp o r r f o l i oi n 1 9 9 8

VCFNSSISTANCi
TOFISIlIHFOI.KS
As pod of its inlermediotioV n C F p r o v i d e dt r o i n i n g so n l o o n m o n o s e m e n t ,
{ o r m q t i o ni o i h e s e o w e e dl o r m e r s B y 1 9 9 9 ,
s o v l n s sm o b i i z o l i o na n d c o o p e r o l l v e
i l s l o d n p o r l f ol o o m o L r n i e tdo P h P5 l 1 , 9 6 0 . 5 01 o 2 9 f o r m e r si n H i l u t u n s a n( l h e r e
ore 5 norc rorrer, ir olo,l'c' islond Sobors).
. A m o u n l o fL o o n PhP12,000.00-PhPl8,00000performer
. Durotion 18 monlhs
. I n t e r e srl d t e 2 4 %p c r o n n u m
. G r o c ep e r i o d 4 monlhs
. Colleclion D o y F o y d e n i s( P h P2 9 . 0 0 - 7 9o o / d o y )
. C o p l t o lB u l d u p l O % o f p r i n c l p odl u e o f t e r3 m o n t h s
. Co lolerol sedweed hdrvest,boots, chord.ter reference
. Prequolificollon A t i e n d o n c ei o i r o i n i n g ,s u i i o b i l i i yo f s i i e ,
c h o r o c t ebr o c k g r o u n d

L o o n sc o r r yo n i n l e r e s tr o r e o f 2 4 7 0p e r o n n u m P o y o b l ei n I I m o n t h s O n o
doilybosis,iheddilydmo.lizolionisequivolenltolessihon3kilosofCoitonii{drv)or
o b o u i l 2 k i l o so f s p i n o s s u ms o l d o n o d o i l yb o s i s{ 9 0 k g sp e r m o n i h ) T h i s v o l u m e i s
obout l6% of lhe proiecled horven of the Coilonii vorieiy

4l
rssl r999
 I SPEf i
I O ] T N C I NEGC O . T I I I E R

sovingsfund
The VCF olso develoPedo svstemfor the fomers ro senerote o
loons forits other
which moy loter be used bythe formersio use os buvins copiiolor

FOR
ANDC[]III)ITI[)NS
13,LOAiITEBMS
EXHIEIT SEAWEEO
FAFMIGUANUAFY ISS9I
I7,980.00
seflice fee {2.6%) 461.03
18,44t.03

FiBt interestpoyment due (ofier a mont 548.49

Monihly poyment on interest 36A-42
Principol(ofier 3 mot 1,299.40
Totol Poymenl Stdrling ttlonlh 4 |,598,22

builduP(10%of Principoldue)
PlusSovinqs 122.94
Torcl Monrhly PoYmeni 1,721,16
MlnimumddllYomount 66.20

ANDEFFECTS
RESULTS
PROJECT

msutll:
olsn€D

lncfease TOTATPROIICTOUTRIACI] STAOE

INPII.OT
ol
lncoms of Cordovdlt hoso iotol
to the municiPolitv
is on isl€tbelonsing
ilutungon
Fishetfolks to
is l06l Thisis€quivol€nl
Theiololpopuldiion
londoreoof 15 30 h€ctores.
202 households (1995).
ofihe
TheDroieclslorl€dwilh 30 formersThevweregiventroininginihe u'3ed
loonto suPPortPrimorilvihebuving
net bos iechnolosyond oPPliedtor Product;on
ond the netbossTheoYerose
of the Cottoniiseedlinss lodn is PhP]8'000Per
the followinsl
former.Todotethe proieclhosoccomPlished

OUTBEACH
I4. PBOJECT
EXHIBIT
Beforerhe Proied Durins rhe Proie.r
9 a/a
T o t . H H p o p u l o l i o n= 2 6 3 H H ( 1 9 9 8 ) N o o f C l i e n t s/ H H 5= 2 3
No of Hectores= 5.75 hds <overedbv Proie't 12%
Est.seoweed fdrmr = 47.20 hos.

rssl
 N G T C O . I N T I RS
IMENO P iR

0FE.colloNllFARI\4|NG
ANAl.Ysls
lNc0t\4i
On the overose, o fomily mdnoses o % hectoreform Ar this production level,
o grower could eorn ot leost 5,000 pesos Per month ofler the cosr of form lobor is

EXHtStT AllAtYSlS
t5.t CoME
Cottonii

Averoge production Per month 4,623.33

' COSTOF PRODUCTION

S e o w e e ds e e d l i n s s( k s s ) 1000 5.00 5,000.00 5,000.00

P r o p o s u l eh o l d e B ( n e t b o s t 300 a2 50 12,750.OO 12,750.OO
22 30.00 660.00 660.00
100 2.50 250.00 250.00
600 4.00 2,400.oo 2,400.o0
o.25 137.50 137.50
l 5,000.00 3,000.00 2,000.00 5,000.00
Torps/dryihg plotforms l I,00000 500.00 500.00 1,000.00
l 1,200.00 1.200.00 1,200.00
lotslExpenses

REVENUES
sole' (ks/mox prics/ks) 7,500.00 157,500.00
LESS: Costot Produ.tion
Net Soleslrom For]n Operollons 129,t02.50
LESS: lnierestExP€nse 6,845.30
LEssrCopiidlbuild-u 2%netsolEs
Ner Income cfrer Colr 6l Copilal I19,675.15
12,944.54
l m D U l e dl o b o r( o s l ( l 4 m o s o l 2 5
Nei In.ome ofter Non Cosh InPUls 64,726,51

On€ Jolnh h€c1or6yie d3 o cons€ryoiivenei horyssio1625l<g Per monrh noding onlhe 3rd month
7/ too^ oo\Te* on p ilipo +oiso, 's3'dronrhoroPP'o^iroev2000p€ Fo_h
rJnd
rns co;rcl bu lo u; i'nd s .rendod o e_.ou os€ !o, n9< !r osoc or o_ ^ l nonoss lh€
O-c c.o epoaeeds'oa5.o3.loso.€.J roi ,o0ts- or-e .o{eed. = 20l,gtdfiardry'nS

43
ltrr
 I M E R O l NE
GC O ' T N I I R P f l ] S E

SROM
INCOI\,IT
CO[/]PARATIVE I'IVITIHOOD
OTHER ACTIVITIIS
tvpicol
Seoweed formins offels o hisher income ievel comPoredwith other
300%
livelihood oct;vilies in coostol oreos Growins Coltonii olone will senerote
percent more income ihon fkhing

16,COMPARATIVE
EXHIEIT LEVELS
IIICOME
A v e r o g e H o u s e h o l d l h c o r n ee o r n e d

Fishing P h P1 , 4 7 .10 0
F i s h i n gq n d o t h e r S o u r c e s PhP3,600.00
S o l o r yb o s e di n c o m e PhP2,805.00
PhP2,283.0O
E 0 c h e u t r df o r m i n s ( s P i n o s s u m ) PhP1,207.OO
PhP4,623.00

0$nlDffiSUu2l

0evelopmenlPTAYTRSAND|llARKEIING ARRANGIMINIS
ol local 'fhe* ore ol leost {our pldversin lhe trode coverinsoi leostthree levels
of
capacrlv Thechonrels
I rronsocrlons. belowsxclude otherlocolorrdnsementsforfinoncins'
toengage MABKETIIIG ABRANGEMENTS
EXHIEIT U, CUFREllT
indirect
BETWEEN
seawee0 TRAN5ACTION seoweed Collecror
tfading
Grower is in dgreemenr Colleclorprovid€sthe growerwnh r€gulor
io produce for Colleclor informdtionon Price
u n d e rn o o g r e e dP n c e
lo growef
Colleclorprovideslindncioldssistonce

TRANSACTIONBETWEEN
SeoweedCollecror seoweed Pur.hoser

collecior deliversto s e c o l l e c i oor n d p r o v i d e s

P u r c h o s esru p e r y i s ei h
P ! r c h o s e r .F i n o lP r i c ei s c o s hd d v o n c ef o f b u v i n so n d i e c h n i c o l
modeopondelivery ossistonce if needed
bosed on known morkei Purchoserchecksthe quolilv of ihe slock before
finoldelive.y
Provideslechnicdl ossistoncevio ihe designoted
i e c h n i c i o nos f P r o c e s s o r

TRANSACTIONBETWEEN
SeoweedPur.hoser SeoweedPro.€ssot

Purchoserhos o controct Providesprice q!iotolion wiihin 3 5 dovs betore

t o d e l i v e ro l l o u i p l t i o
,,.1'"'llili'*** r'.oncidr or
operdiion
purchoserby sivins "" cosh odvonceond
technicol dssisionceto sro!p of groweE
F u l lP o y m e nits m o d e d f t e r7 d o v so t m o s t

44
tssl
 t M E n G I Nt cG0 . t T t nP n l s l

BYACES
ARRANGEMENT
MARKETING COOPERATIVES
ANO
who
A C E Sl i n k e dw i t h c o m m e r c i obl u v e 6 i n C e b uo n d l o o k e df o r i l s m e m b e r s
who serye os
or€ into seoveed Production lts strotegv is siinilor io other trqders
with irs
comeonv consolidoto6 etcePt thoi ii equollv shored profits (ond expenses)
trode conioch. Morket priceswer€ followed.

AFBANGEMEIITS
18,MAEKETIIIG
EXHIBIT ANDCOI)PEBATIVES
8YACES
Role of hodins ponner (ACES) Compony purchoser& locol consolidotor
Srrotegy

Wiih source of soods/suPPlier Cosh pdyment on sile; deducl l()ffi

wilh buyeu of produds C o s hp o y m e n lo n s i l e ;d e d u c tl o o n s

Wiih other ployers (co-irod€rs) O p e n p r i c i n g ; ' u n o h o ns' o c o n t o c t

T r o i n i n si n s o v i n g sm o b i l i z o t i o n
Direct linkose with componv buvors

Pricingsirdtegy Hishervolume- hisherPrice

90%int€rnol

Isnto Risu(t3l
dlmost l
A0optron o r m e r si o o k o c o u l r o u sopproochin odoptinsth€ technology Afler
yeor formers decided to ure bolh ihe nei bog q n d m o n o l i n €t e c h n o l o s Y
cl mole
pfoductive EXHIBIT OFIIEWTECHIiOLOG]
19,A|)OPTIOII
tafmrng Belore rhe proiecr During lhe Proie.l
Iechnologies 12%
=0
Cottoniiformers Durinsproiect= 23++ 60%of ihose
Technolosyuse1999 of 2000
Besinnins

Nelbos= 33%
ned Dur ns d
++ rh€ exdd numbarofformeu using.oitonnihos not boan orertd
wars sdon
field visirs€vsrdlfdrmsEwho wsr€ noi siven coiioni 3eedlin95

-*";.dlho' rh.l _.. ^ * l 6 d o ^ d v o _ o s o r \ " ' e dd i n q ' r c T wo'e3

.

primorilv
In ih€ lotier porl of 1999, the number of nei bos users decreosed
the grouih
due to ihe obsenceof CoHonii s€edlinss The weother potierns offected
of the Cottonii.
Formerepref€r lo ute net bogs helP lo Proteciihe seedlingssPeciollvduring
lhe the typhoon months when wove ocJionis hdEh

tssl
r--
E t l t n CN G t C 0 E N T T R P
SRE

4:
RESULT
DTSIRID
were o{ lhe
Enhanced ,\C E Sl r o d e d 1 2 6 t o n s o f s e a w e e d s T h i r l v f i v e p e r c e n t{ 3 5 % )
culti'ote
spino*,m*hile cottonii occounl€dfo I 65ooseoweedformersoctuollv
Entefprise f{
rrdding proctice
mostly spinossumwhile componiesPreforrhe Cononiivqrietv As o
Viabilitv q of
however,componiesore willins to buv I lon of sPinossumonlv if similorvolume
Cotionii is delivered.
Presenredbelow is o summorv of the finoncidl Performon'e of the seoweed
in 1999
trode. The tobl€ rePresents96 percentof the entire volume troded

OFACES'SEAWEED
20,AIIALYSIS
EXHIEIT I999
lRAI{SACTIOI{S'
TEADE
TOTAL

72,41A.50 .40,154.50 I12,573.00

Torol lrode Vol.
1,7 44,9O1.5O 24.O9 348,055.00 8.67 2,O92,956.5O

1 , 4 a 7 , 7 6 4 . 2 5 20.54 85 302,555.75 7.53 a7 I,790,320.00 86

15 o.o7 7 36,325.75 0.90 t0 161,132.90 8

124,AO7
r32,330.10 1.83 9,173.5O 1.r3 141,503.50

MorsinolprofitPerkg r.83 t.t3

8% 3a/o

B r e o kE v e nv o l u m e( a m o s ) 6 8 , 3 0 1 . 5 2 32,058.60
6 3

A c t u o lo v e r o s ev o l u m ep e r t r o n s o c t i o n 12,069.75 13,384.83

ACESsothered mostofits seoweedsfromDowdhonreefin Boholin cooPerotion

volume troded
with the Holv Child MultipurPossCooPerotive Lesslhon 5 % of the
the cultivotion
come from Hilutunson (lhe moior Proiectsiie) sinceitwos siill srortjns

ACESiroded direclly with lwo out of the 5 moior 'omPonv buvers in Cebu

lssl 1999
 $ r t R ! N I E C 0t N I t n P n5 L

-:ARNINGS
---, ormeB monoqe productionrisk by usins o combinotion of specie SPinossumis
ldeal
r'rlJcl mosr prefeiied be.ouse ofiis resktonceio "ice_ice"wh;le coltoniit hish price is
seen to offset the lower Pdce ofthe former

2I,SPECIE
ETHIEIT COMPABISON
Cottonii

1'2 kg/mo. 2-3 kg/month

Resistonce1o drsedses eosily ofiected by "ice-ice",

C o s tp e r k i l o ( l o w e s i h i s h e s l ) I5-25 pesos/ks
A v o i l o b i l i l yo f s e e di n s s s.orcedurinscerloinmonths
M o n o g e m e n pl r o d l c e o d d i i i o n ool t l e n t i o nn e e d e d
( e s p o c i o l fl yo r b € s i n n e ru s e r c )

-
a ldeal SitC codstol environmentol conditionsvory d.rosssires rechnicolexpedsrecommend
thot ieslsbe .onducleddcrosssitesdnd in differ€ntseosonslo determin€ihe most
suitobl€lorm sii€ (seetoblE)

laalFarrllel D u r i n st h e l r d i n i n s sl t w o s s l r e s s e idh o l f o r m e r sm u s tp r o v i d e" i e n d e rl o v i n sc d r e "t o

' l ^ e r ew s r e s e v e ' o lg ' o w e r s* h o s e
l h e , r C o f o r i i c r o p s a s l _ ep - o e c i p r o g ' e s s e d
forms oul' performed ihe oihers They were lhose who kept on octive sesrch for
o r e o sw h e r ec o t i o n i i w o u l ds f o w b e s l M e o n w h i l et,h e o t h e r m e m b e r sm o n o s e dt o
o d o p ' o ( o n b i r o t i o n o l b o ' h l e c h l o ' o g yo l d s P e c i e
F o u r o f i h e2 3 f o r m e r sm o n q s e dt o q r o wc o t l o n i i d e s P i iteh e " i c e - i c e "P r o b l e m
ond served os ihe ,ource of ihe seedlinssfor ihe other formers.

l!!t
I
E M E R G I NTG
CO'ENTINPNJST

22, PHYSICAL
EXI]IBIT FACTORS
AI{I)ENVIRONMENTAL
Fovorcble Condiiions

S i t e -F o r m L o c o t i o n l d e o l o n r e e f f l o i s o r r e e f e d s e o n n o r t h e o sst i d e o r o P e nt o " o m i h o n "w i n d s

Southweti winds ore qssocidiedwith ivphoons

S p e e d - W o l eM
r otion 20-40 cm per second.
F o s rc u n e n r ss u p p l ym o r e n u i r i e n t sb u i m o v o l s o d d m o s e P r o P o s u l e s )
S t o q n o nwi o t e 6 s u p p l y; n o d e q u o t en u t r i e n t s .
Averooe Droductionoreo f 2,500 sq meteG Per former for storie6
Enouq-hspoe for woieMoys (35 meters wide Per form)

Solinlly 3 o - 3 5 p a r t sp e r t h o u s o n d

Substrote (reo bolfom) C o r r o l .s o n d ,m u d , s l o n eo r c o m b i n o i i o n sC o r r o g e n o P h t 4 egsr o w w r l d o n d

n o t u r o l l vo n s i o n vo r o r e o ss i r e w nw i t h d e o d c o r a l s

S u n - L i 9 hpt e n e t r o t i o n L i g h ii s n o t o l i m i i i n gc o s e .E v e no t 5 l O m e t e r sd e P t h . o l t o n i i
s o i n o s s u mh o v eb e e n r e c o r d e di o g r o w w e l l
A v o i d o r e o sr e g u l o r l yv i s i i e db v s t o r m ,

Woteriemperor'rre B e s tq r o $ 4 ho t 2 5 - 3 0 d e g r e € sc e l c i u sP r o P o g u l edsi e o l h i g h e rl e m p e r o r u r e s
l n l e r t ; d o l z o l e s w i + Fs l _ ool w w o l € r o f o b o J l 3 0 ( m d u r r g l o w t d e s
N o l p o l l u i e db v o r n e o r s o u r c e so f h o u s e h o l do n d i n d u s t r i ow
l oste
noias
Oocum€^rs,Ensr JocRisd SAP' RubonBorucad FSSlFloLd
Soui.s CRry\P

v o l u m eo f s € o w e e d
Irade T r q d i n gi r o n s o c l i o na r e d e l € r m i n e db v i h e q u o l i i vo n d m i n i m u m
i h o t m o y b e d e l i v e r € dS i n c ei r o d €v o l ! m e d f f e c i ' P g r o f i l o b i l i i(vs i v e no t r o d em o 1 9 r n
Condilions t r o d e rh o sw i l h
o { 8 % ) , i h e d e t e r m i n i n sv o r i q b l ei s t h e n u m b e ro f l i n k a s e !i h o t t h e
c o m m u n l t yb o s e dp r o d u c e r o s n d t h e " h o c k r e c o r d "o l i h e i f o d e rw i t h t h e c o m p o n l e s
S o m eo t h e rc o n d i i i o n s{ o r s u c c e s s f u l l r o d i nosr e l i s l e db e l o w

. N e e d { o r m i n i m u ml r o d e v o l u m eo n d b u v i n sc o p i t o l
for ol leost 20 ton, dried seoweed
' W i t h o s m o l lr r d d er n o r s i n i, h e s u c c e sfsd c t o ri s v o l u m e
n of l2 ions
o n d s P e e do f i r o n s o c t i o no r I e o s to w e e k l vt r on s o c i i o
' p o i n i so r w o r e h o u s e s
E s i o b l i s h ecdo n s o l i d d i o n
. G o o d t r o d e r e l o i i o n sw i l h o i h e r b i q o n d s m o l l t r o d e r s
' Community ropood wilh successfulgrowers, locol cooperotives'
respeciqbletrodeE ond enlerprising Poor seoweedtorme6
dnd
Amons indusiry blive6, ihe troders ihor could consisientlvdeliver "cleon"
or oi best o coniroct io
lorge volumes of seoweeds receive Preferenlidl diteniion
d e l i v e r1 o s P e c i f i c o m P o n l e s

48
tssl
 T I J I E N C I INCGO ' E N T E R P R I S T

-rchnologicalThe use of the net bos technolosy hos been difficult to Promote becouse of the
qddirionol cost of net boss ond ihe loboriousnessof cleonins rhe nei boss Once
I "llons
odopted howevet formers would use o combinoiion of rechnolosies io ensure
porticu orly the proieciion of some seedlingsfrom tyPhoon domoges

. Combinotion of net bos ond line merhod Preferredbv formers

. Combinotion of Spinossumond Coitonii is ihe common Proctice
' M 0 l i i p l ef q r m s i l e sp e r f o r m e r

Theseoptions exhibit cleorly ihe risk monogemeni strotegiesof growe6

A . . e s s i b i l i y i o o m o r k e t i s o n o d v o n i o s e H o w e v e rw , i t h i o d o v t o v o i l o b i l i t vo f
c o m m u n i c o l i o trd c i l i t i e so, c c e s st o r n o r k e ti n l o r m o l i o nb e c o m e se q u o l l vi m P o r t o n t
.JCali0
i r l r o d i n s . B e i n gn e o ro m o r k e to n l y r e d u c e st r d n s p o rci o s i ,H o w e v e rh, o v i n so c c e l s
10 informolion equips o purchoser to negoliole Price thot mov ofisei the cost of

; fancin0 F o r m e Ep r e f s r o f i n o n c l h gs c h € m el h o t w i l l o l l o wt h e mt o u s oi e c h n o l o s i eish o t w i l l
m i n i m i z ei h € i f r i s k s( i n b o i h p r o d u c l i o no n d l o o n r e P o y m o n t )T h e d o i l v p o v m e n t
, c h e m es u i l st h e i . p r o c t i c eo f h o r v e s t i n sd o i l y o n d s e l l l n si m m e d i d l e l vi o t h e n e x t
o v o i l o b l el o c o lb u y e r
T h s r o l e o f c o l l e c i i o nh o w e v e rd e p e n d sh e o v i l y o nl h e " v o l u e s "d n d " c t t i t u d e t "
o f e o c h i n d i v i d u o l f o r m eor n d t h e p e n i s l e n c e o f l h el o c o l l o o nc o l l e c t oor s s i g n e db v
t h e o s s o c i d t i o nT.h u , , c o n i i n ! o u st r q l n i n go n l o o n o n d s o v i n s sm o n o s e m e n td r s

F o r l h e f i n o n c l oi r t e r m e d i o r y V C Fi s t o r s e t i n so l o r g e r c l i e nbt d s e( o t l e o s t 5 0
formers) to suppori lhe inntulionol expenses,e.g stoff solon/.The one time 2 6%
seryicelee is iusi enough to cover for stoff time ond hovelins exPensesio s'rpporl
the loon inveslisorionoctivitiesfor I one proiecl siie for I month
, C E Si o r g e l so m j n i m u mv o l u m eo f 5 0 t o n sp e r m o n i h .
F o r l h es e o w e e dt r d d e rA
At ihis l6vel, ii would be oble to cover its entire coe of operotion wiih seoweed
l r d d i n go s t h e p r i m d r yb u s i n e s o
st lhe inditltion.
A reosonobledmount is neededfornodjns copiiolsincethe sPeedoflronsoction
i s o l d o s i w e e k l y{ i t s u p p l yi s o v o i l o b l e )A. s t o r i i n sc o P i i o o
l f o b o u t P h P5 0 0 , 0 0 0 . 0 0
f o r 2 i r o n s o c l l o n iss o d e q u o t eo s s i o r t - u pc o p i t o ls i n c ec o m p d n i e sn o r m q l l yp o y i n

49
rsSl
 a Anewto
A PuNoNcswnN
youNc
&'vst& rNItRNAto r4r

ALIDII ORS
REPORTOF EIDEPEN'DEN'I

The Board of Trustees

Foundatiotrfor a SustainableSociety(FSSI)Iocorporated
(A No stock,No proft Cotporctiort)

We haveauditedtheaccompanying slatemcnlsof fina cialposirionof Foundahon lbr a Sustainable

Society(!SSI) IncorporatedasofDecember31, 1999and 1993,andtherelatedstatements of
revenlles,
exDenses andcLrmulalil'e
excess ofrcvenues overexpenses afldcashflows tbf d1cyears
thenended.Theseflnanclalstalcnrents afethercsponsibililyofthe Foundation'snlmagement Our
responsibiliry anopinionon thesefinancjalstatenents
is to express basedon ouraudjts.

We oonducted our auditsin accordanccwith auditingstandardsgcnefallyaoocptcdifl lhe

Philippines.Thosestandards requirethat11eplanand pert'bmtheaudjtto obtainrcasonablc
assurance aboulwhelhcrthefinanciolstalcments aretieeofmaterialmlsstatemeDl, An audl!
includesexamining, on a tcstbasis.evidenccsuppoftmgthe amountsarlddisclosurcs in the
financialstatenents,An aLrdit
alsoincludcsassessing theaccourtirgpdnciples used cuc
sigdficanlestimatesmadeby rnanagemenl, aswell as evaluating
theovelallllnancialstatenlent
presentalion.We believethatour auditsprovldea reasonable basislor our opinion.

Ihc
to aboveprcsentlrirly. in all fisterialrospects,
In oul opmion.lhe financialslatcfienlsr€t'errcd
financialpositionof Foundrliontbr ! Sustainable Socjely(FSSI)lncorporated asofDecember3l.
1999and 1998.md $e resulrsolits operations rnd its cashflowsfor theyearslhenendcd1n
conformirywith aooouniing princiitcsgcncralL), accepted in thePhilippines.

--Ar^u-
PTRNo. 1880937

MakahCity

March23,2000
 FOUND-A.TIONF'OR A SUSTAINABLE SOCIETY (FSSI) INCORPORATEI)
6 Nonnock' Nottpto|it Coryorstioh)
STATEMENTS OF FINANCIAL POSITION
DECEMBER3l. 1999AND 1998
'l

1999 1998

ASSNTS

CURRENT ASSETS
2,153,910 P r,205,542
Shortterm invesEn€nts- net of allowancefor doubtful
1.3,r21,671 r;755
8,47
accounts amountingto P?50,000in 1999
Curent podion ofloansreceivable _
- 13,193,833 43,409,532
projects net dvotel)
Accru€dinterestreceivableon;
1,464,689 2,964,166
Projects
690,502 658,584
Invest1lenls
4,000,000 4,000,000
ProjectguaFntees(Note 2,

34,624,641 60,709,539
TotalCuneniAssets

LOANS R.ECIIVAILE - PROJECTS -

rT,880,112 11,377,548
Net ofCufien! Portionfly'ore3,

514,200,400 485,125,479
NUNDS IIELD IN TRUST . NCI (NO'E4)

39,141!004 8,623,006
PROPERTY AND EQUIPMENT . NCt(NO'CI,
5,440,516
oTHER.dSSETS/No,e6)

611,281,393 12,7
566,"7 05

LIABTLII'IDS AND }'IJNDBALANCD

CTJRRENTLIABILITIES
508,388
Accountspayableand accruedexp€nses
2,868,674
Umrsedproject tund @ore Z)

3,401,989 508,388
Total Currerl Liabilities

FT]ND BAI-ANCE
85,s00 85,500
Members contribulion
454,822,591 454,822,59',7
Grant(Note 7)
Net unr€alizedloss on dec1iff in value
1 i . 5 3 0 , 9 )2 9
of investmentPortfolio
152,911,301 122,827,149
Cumulativeexcessot rcvenues overexpenses

607,885,404

011,287,393 566,7t2,105

See Notes to Finarcial Stste ents.

 FOLiNDATIONFOR.{ SUSTAINABLESOCIETY (FSSI)INCORPORATED
(A Nonstock,No profil Corpotutio )
STATEMENTSOF'RIWNUES, EXPENSESAI{D CUMULATIVE
EXCESSOF RE\TNUES OVER EXPENSES
FOR TIIE TRARS ENDED DECEMBER31, 1999AND 1998

1999 1998

RIVENUES
Incomefrom lundsheldin tnrsi 41,086,3,14 49_,795,229
Gftnt -Ford (Note7) 4,691,711
Interestincomelion]l
Projects 3,090,888 4.216,3',73
lnvestments 560,111 932,296
GuaianteefeesfNole l, 494,998
Others 200,86s

50,131,613 55.828,893

EXPENSES
Provisionlor doubtfulaccounts s,r68,516 64
619.7
Fordprojectexpenses fNore7) 1,691,741
Salaries andlvages 3,119,512 3.283,045
Projectgrants[Votc8l 1,926,100 2,174,t43
En]ployees' benefits 1,310,t5s 895,145
Dcpreciation 138.469 802.361
Prol€ssional feesandothelfecs 625,659 741,168
Utilitiesandcom]]1unicntions 559,430 341,966
Meetlngs
Secuityservlces 334,800 343,914
BooksandofficesuppIes 242.114
Tnvel andtransportdiion I
4 38 , 8 1
Taxesandlicenses 14,311 20,361
Losseson guarunlcc iirnd i,000,213
Miscellaneous 287,854

19,981,455 12,293'423

EXCESSOF REVENUESOVER EXPENSESlNorat, 30,150,158 ,+3,535,4?0

CUMULATIVE EXCESSOF RXVENUESOVER

EXPENSESAT BEGINNING OF YEAR 122,827.119 19,29r',6',79

CUMUI,ATI\B EXCESSO}' REVENUESOVER

EXPENSESAT END OF YEAR 152,911,301 r22.827
,).49

See Notes to Financial Statements.

 ]. LOA.\S RICET\ ABLE.
PROJIC] \

Thts.accourt represents
loansgrantedto
*h,cn
eam
n,ere,r
drrr,",;.; ;*:;"; \,"r"i'""-#""T;[
;.,ij";T:i rr#",,.*
1999 1998
.--,,\, !, AgncuJfure
xnrlRurclDeielopren
nun:n urmens.on lt'c P 5.000.000 p
l.nrerorrse -
jnFnteryrise 3'230'000 2'550,000
""il[ii#:li:;;.:tartners
C-gry-all cor,cdcr,rronofr .oopcr 3,000,000
.V.rJjey r(rr e. :rno 4,000,000
L./evelopmentCenll,r
- _
JuookenEnterprises, 3,000,000
Inc,
2,711,023
;tTffii"ifi:*il1:Xe Farmers
cooperative,
Inc 2,137,s91
3.582,012
2,436,329
( oco lechnologres 2,041,847
Corporahun 1.838,669
' .,]J.r::
trtr t onsumcrMLrin-puroose

;;::,1C,ro.","r
:;:,
2,000,000
1,800,000
ffi.ff l:#i:lJ;
t:' *crro,Developmcnr 1,639,500
2,100.00a

1,999,500
i::j:'ll:::'ll:s' 1383,929
i;-,,#ffi
,iii*ii:"'t:::.;:il|t,,'""
". rp70,000
r,137,500
Ag3rophyra
phr;Jpprncs, 1,366,07
r
fnc 2,185.714
rcchno'osv
;,T;:Jflf'ilil:l1lLrrur rnc 776,27
s
604,000
840,594
i.100.000
lvttsrrnr,Onen at_Cog-Jrn 460,000
;:'
5:*tru::,i:xi,i*ilffi
de Oro Foi",,,.
300,000
202,31.1
300,000
?9A,625
HamessrngSeJf_relirnt
[nrf]abvesand 29.8:12,000
ranowledge,Inc
KaanibFoundation.
Inc. 846.154
EYS Commercial
11t.269
50.000
Lesscunentpodion 33,052,580 56,077,366
13.193.833
Lessallowancefor doublful 19,8s8,747
accounts 12,66?,834
) .29A.286
P --,r'€'!Jz
Theseroansareadequatery s--..xz!!

iiifl];X'"t**'l';;;il;"..-.Hi":T'T:i:$::l:ff
coilarerari"F,J
h
i":TJ"l-*'""'.

-
4, F'[J}{DSHELD IN TRUST

The Foundationhastrusteebanksacting as fimd managersto invest the Fwrd in combhation of

equities,secudtiesand other instnments. The Fund is held by the followhg as of December

1999 1998

TrusteeBanks:
AB Capital and InvestmentCorpomtion P 118,051,642 r08,429,662
Deutsche Bank 90,645,728 89,030,425
SolidBankCorporation 89,745,239 89,401,863
PhilippineCommercialIntemationalBank 71,012,721 70,170,538
Metropolitan Bank andTrust Company 71,504,629 76,492,s6s
FarEastBankandTmsl Company 61,914,139 30,572,733
Bankof thePhilippineIslands 49.127 32.558.622
514,923,231 496,656,408
Lessallowancefor probableloanlossesanddecline
in valueof investinents

B__
l!4,200_J00 P-_-g5J2j'42

TheFoundation hasan investrdent

committeewhichcoordinates with trusteebanksfor the
efficientandeffectivemanagemert of theFund. Theinvesmentcommitteeleceivesrepofis
rcgularlyfiom thetrusteebankswhichit usesto reviewihe valuationofthe assetscompnslng
theFwd. Thebalanceofthe allowancefor probableloanlossesanddeclinein valueof
investments is basedon theieportssentby the tiusteebanks.

5, PROPERTYAND EQT]]PMENT

Thefollowingis a summaryofPropertyandEquipmentas ofDecember31:

1999 1998

Building and improvements P ,{,843,840 P ,1,810,265

Office equipment 1,356,990 r,208,422
Tmrsportation equipmert 885,074 885,4',74
Fumiture and fixtures 622,520 586,070
7,108,424 7,489,831
Lessaccumulated
depreciation z\1.4,1t1 1.',766.825
5,256,150 5,78,045
Land 32,746,000 2,900,000
Constructionin progress 1.138,854

L_ 39g1Jer P 8,6239U0
6. OTEf,R ASSDTS

This accountconsistsof

1999

Equity - projects 4,160,000 240,000

Loansand advancesto officels and employees 1,086,605 501,306
Others i I5.827

P ,.5J40r15 P .:8411

7. FUN'D GRANT

ln April 1999,theFoundation hasbeenawardeda gnnt amountingto US$280,000 by theFod

livelihoodsandimproving
Foun,lation.Suchgmntis to be usedexclusivelyfor generating
degraded agriculturalsystemsthroughthedevelopmentanddisseminationofcoconut_based
technologiJs.As ofDecember31, 1999,theFoundation hadalreadyreceivedf'undamounting
to P?.56d.415.Out ofthis amount, P4,697,741hadalrcadybeenusedtbr thedevelopment of
theproject,Theremainingbalanceofthe fundasofDecembcr 31, 19990fP2,868,674 is
presented of{inancialposition
asUnusedProjectlund in thc statement

8. PROJECTGRANTS

Thesereprcsent grantsprovidedfor develop enl activitiessuchastechnicalasslstance'

ecoromicrcsearch.feasibilitystudies,productresearchanddevelopment, pilot produotlon'
capabilitybuildingandotheractivities

awardedgrantsto the lollowingl

TheFoundation

1998

CagayanValleyConfedemtion of Coopelatlvesand
DevelopmertCenter 230,000
LingapParasaKalusuganng Sambayanan, Inc. 100,000
PITAD Fomdation, Inc. 50,000
Sandigan ng Magsasaka 50,000
BroadInitiativesfor NegrosDevelopment 20,700 224,300
AgarophytaPhilippines,Inc. 5,500 157,000
Mindanaofuce Trading ServiceCenter 420,560
Philippine Cent€rfor InvestigativeJoumalNm 25E,233
IPIL Consumers Multi-PurposeCooperatlve 150,000
Cenlerfor AitemativeRuralTechnology. lnc 60,000
Small gants 1,469,900 500.000

P : |25-100 y-:=2JJ!J43
 Small grantsrepresentgrantsto variousnongovenment organizationfor the samepurposeas
theprojectsbut at anamountnot in excessofP50,000.

9, INCOME TAX

The Foundahonis a corporatjonnot organiz€dfor profit but operatedlnainly for the promotion
ofsocialwelfareascontemplated undersection30(g)lfomerly 26(9)lofthe Ta-\Code,as
amended,and therefore,exemptftom the pa)'rnentof incometax on incomereceivedby it as
suchorganizationandtheteforeneednot file anincometax refumconcemingsuchtncome.

However,it is subjectto correspondhg intemalrevenuetaaesimposedundertheNational

IntemalRevenueCodeon its incomedeflvedftom any ofits properties,real or personal,or any
activityconductedfor profit regardless
of the disposition.

10. PROHIBITION AGAINST SHARING IN COR}ORATE ASSETSA ID EARNINGS

Uponthe dissolutionandwindingup ofthe affairsoflhe Foundation, no pelsonor petsons

shallbe entjtledto sharein the distributionofany corporateassets,All mefibersofthe
Ioundationshallbedeemedto haveexpressly agreedandconsented that uponsuchdissolution
ofthe Foundation, whethervoluntaryo! involuntary,theassetsofthe loundation,aflerpaying
its liabilities,shallbe conveyedandtransferedto anyqualifiedfoundationengagedrn
activitiesin thePhilippinessubstantially similarto thoseof 1.he
Foundatiot'sor to theRepublic
ofthe Philippinesor any of its agenoies,instrumentalitiesor politicalsubdivisions
astheBoard
of Trusteesmaydecide.