The Development Bank of the Philippines (DBP) embarked on a financing program called the Sustainable Mariculture Investment Program (SMIP) aimed to make credit and support facilities available for the establishment, development, operation and maintenance of mariculture parks including support services and industries. Since DBP lacks the expertise and experience in technically assessing the viability of projects proposed by borrowers that include local government units, private locators, fish farmer cooperatives or associations, and operators of support businesses, DBP requested and was granted a fund from the Norwegian Agency for Development Assistance (Norad) to seek technical assistance in developing tools and templates that will be used in evaluating and assessing prospective mariculture sites and projects.

DBP contracted the Southeast Asian Fisheries Development Center Aquaculture Department (SEAFDEC/AQD) in collaboration with Taytay sa Kauswagan Inc. (TSKI) to: (i) undertake technical, socioeconomic, and financial assessments of selected MPs; (ii) develop technical assessment tools and templates in evaluating prospective sites; and (iii) develop financing instruments and modules/schemes to fund proposed projects and a financing program or strategies for fund sourcing purposes. A rating system will be developed integrating all parameters and indicators measured from the various evaluation tools. The rating system will be used in developing standards for assessing the suitability of existing MPs for further development, the establishment of new MPs and in identifying support facilities, services, opportunities etc. These standards are conceived to develop strategies that need to be taken to support current locators and investors, and encourage investment in MP zones.

DBP has already developed the SMIP financing facility before Norad’s approval of the Bank’s request for technical assistance. The technical assistance will pave the necessary preparation and program approach of the Bank to carry out financing support to the mariculture industry.

The SEAFDEC-TSKI team proposed to undertake surveys in four MPs in Davao: Panabo MP in Davao del Norte; Pantukan MP in Compostela Valley; Samal Island MP in Davao City; and Mati MP in Davao Oriental. However, with information gathered from the survey done in Panabo MP and on mariculture activities in Tagabuli Bay, Sta. Cruz, Davao del Norte and some sites in Malalag Bay, Digos City, Davao del Norte; the team suggested that information gathered from LGUs initiated and managed sites may provide additional information and insights that may not be captured if the surveys are done only on BFAR established and managed MPs. The request to change the survey sites to Tagabuli Bay and adjoining areas in Digos City was endorsed by DBP.

This report presents the results of the socioeconomic, techno-environmental and financial assessments done in Panabo MP, Panabo City, Davao del Norte from 27 June to 1 July 2011; and Tagabuli Bay, Sta. Cruz and Malalag Bay, Digos City, Davao del Sur from 7 to 13 August 2011.