2nd VRU RAC Meeting last November 27-29, 2014 Bohol Tropics Resort Tagbiliran City, Bohol

1. The ‘FPE Fund’ Story
2nd RAC Visayas Meeting
Bohol Tropics Resort
Tagbilaran City, Bohol
November 27-29, 2014
“Ang Kuwento sa
Kuwenta”

2. Presentation Outline
• Beginnings of the Fund
- Establishment of the FPE Environmental Endowment Fund
• FPE Milestones
- Creation of FPE and the MOU for Fund Management
• FPE Finance Highlights
- CY 1994 to FY 2013-2014
- Grants Approved
- FPE Special Projects and Funds Facilitated
• Fund Valuation & Utilization

3. Beginnings of the Fund
US$125 Million
NRMP Grant
Agreement Phase I
signed on Sep 28,1990
US$25 Million max
Natural Resource Protection
Component – to conserve
biological diversity & enhance
sustainable natural resources
management
Jan-1992: US$5 M
1st Debt Swap which bought
debt papers worth US$ 7.97
Million
Sep-1993: US$13 M
2nd Debt Swap which bought
debt papers worth US$ 13.76
Million

4. Beginnings of the Fund
Total Debt Swap +
Bank of Tokyo
Donation
$21,731,745.4
0
119,590.15
$21,851,335.5
5
FPE Endowment Fund
P566,532,293.2
4
3,276,772.00
P569,809,083.2
4

5. FPE Endowment Fund
In US Dollars:
USAID => $21,731,745.40 ~P26.069
Bank of Tokyo => 119,590.15 ~P27.400
US$ 21,851,335.55
~ P26.0766
In Philippine Peso:
USAID => P 566,532,293.24
Bank of Tokyo => 3,276,772.00
Php 569,809,083.24

6. FPE Milestones
January 1992:
FPE is registered with the SEC
July 1992:
The officers and members of the first regular Board of Trustees
(BOT) are elected to serve for 1992-1996. Fulgencio S. Factoran
becomes the first BOT Chairperson
January 1993:
Delfin J. Ganapin, Jr. becomes FPE’s first Executive Director
March 1993:
A MOU among the Philippine Government (DOF & DENR), U.S.
Government (USAID), and FPE for the establishment of an Environment
Endowment is signed. The MOU spells out the purpose of the
endowment, stipulates the conditions for the transfer to FPE, and
delineates the roles of the parties concerned in safeguarding the fund.

7. FPE Fund Management
Memorandum of Understanding dated March 05 1993:
FPE to contribute, encourage, assist, and provide technical,
managerial, and financial support to NGOs, POs and communities
for environment protection, natural resource conservation &
management, and sustainable development
Only the investment income (interest & earnings) of the
endowment fund shall be used for environmental activities of NGOs
and POs in the Philippines specially focused on BCSD
Permissible Investments - Invest the Funds and any interest
earned only in special series Central Bank bills; or in such other
investments as the parties may agree to in writing
Up to 20% of the investment income received in a given fiscal year
may be used for administrative purposes

8. FPE Fund Management
APRIL 1994:
Establishment of the Endowment Fund which was placed in Central
Bank special series bills
JUNE 1994:
USAID transfers the full management of the Php569.8 million or
US$21.8 million Environmental Endowment Fund to FPE
Memorandum of Agreement dated May 29, 1996:
The DOF and FPE agree in writing to invest the Funds and
interests thereon in such investment portfolio that will maximize
earnings provided that such portfolio will have prior approval of the
FPE BOT

9. FPE Fund Managers
As of JUNE 30, 2014
20%
18%
15%
10%
3%
3%
16%
9%
6%
20% AB Cap
18% RCBC
15% MBTC
10% BDO
3% BPI
3% UCPB
16% Falcon
9% LGT
6% Cr.Agrc

10. FPE Finance Highlights
TOTAL ASSETS:
1994 => P634.2 million; 1997 => P711.4 million
2003 => P803.96 million; 2006 => P857.7 million
FY2007-08 => P765.8 million; FY2009-10 => P804.8 million
FY2012-13 => P855.32 M FY2013-14 => P834.85 M
FUND BALANCE:
1995 => P610.9 million 2000 => P721.7 million
In 2006, the fund level of P792.6 million was on its way to breach
P800M when the Global Financial Crisis struck in 2007-2008
bringing down the fund level to P712.7 million again
FY2012-13 => P789.32 M FY2013-14 => P774.89 M

11. FPE Statement of Financial Position
CY1994 to FY2013-14
0
100000000
200000000
300000000
400000000
500000000
600000000
700000000
800000000
900000000
CY94 CY97 CY00 CY03 CY06 FY
09-
10
FY
12-
13
Liab Gen Fund Restricted

12. Statement of Financial Position
Comparative Results: FY13-14 and FY12-13
ACCOUNTS FY2013-2014 FY2012-2013 Variance
Cash, A/R & Others 16,853,148 20,472,347 (3,619,199)
Fund w/ Invst. Mgrs. 806,657,304 827,096,501 (20.44M)
Property & Equip. 11,334,553 7,754,525 3.58M
TOTAL ASSETS 834,845,005 855,323,373 (20.48M)
Total Liabilities 59,952,062 66,005,460 (6.05M)
Total Fund Balance 774,892,943 789,317,913 (14.42M)
TOTAL Liab. + FB 834,845,005 855,323,373 (20.48M)

13. Statement of Financial Position
Comparative Results: FY13-14 and FY12-13
Liab. & Fund Bal. FY2013-2014 FY2012-2013 Variance
A/Payable & Accruals 6,418,750 9,585,808 (3.17M)
Funds-held-in-Trust 3,746,425 3,191,569 554,856
Grant Liabilities 36,724,224 39,173,523 (2.45M)
Gen Grant Provision 13,062,663 14,054,560 (991,897)
Total Liabilities 59,952,062 66,005,460 (6.05M)
Restricted Fund 584,391,064 578,057,383 6.33M
General Fund 190,501,879 211,260,530 (20.76M)
Total Fund Balance 774,892,943 789,317,913 (14.42M)
TOTAL Liab. + FB 834,845,005 855,323,373 (20.48M)

14. FPE Statement of Comprehensive Income
CY1994 to FY2013-14
0
10000000
20000000
30000000
40000000
50000000
60000000
70000000
80000000
CY94
CY96
CY98
CY00
CY02
CY04
CY06
FY08-09
FY10-11
FY12-13
Admin PDME Grants Revenues

15. Statement of Comprehensive Income
Comparative Results: FY13-14 and FY12-13
FY2013-2014 FY2012-2013 % inc/(dec)
REVENUES 62,481,979 70,845,138 (11.8%)
EXPENSES (66,857,633) (66,244,411) 0.93%
Other Operating and Comprehensive Incomes:
For Ex Gain 2,418,603
43.65 vs. 43.20
8,827,415
43.20 vs. 42.12
Market Valuation (17,175,911)
6,844 vs. 6,465
25,885,825
6,465 vs. 5,246
Actuarial Gains 3,302,537 -0-
Net Income (Loss) (15,830,425) 39,313,967

16. FPE Budget Performance
FY2013-2014 (Audited)
Revenues =
P62,481,979
Grants App. 40,976,950
PDME 14,235,206
Admin 11,645,477
Total Expenditures =
P66,857,633
Excess R-E =
(P 4,375,654)
GA
62%
PDME
21%
Adm
17%
Exc
0%

17. FPE Budget Performance
JUNE 1994 to FY2013-2014
Revenues =
P1,179,872,486
Grants App. 743,260,600
PDME 176,958,909
Admin 225,980,449
Total Expenditures =
P1,146,199,958
Excess R-E =
P 33,672,528
GA
63%
PDME
15%
Adm
19%
Exc
3%

18. FPE Grants Approved
JUNE 1994 to FY2013-2014
Total Grants =
P743,260,600
Luzon 198,102,336
Visayas 172,374,996
Mindanao 146,261,511
National 178,977,024
EO/Insti 47,544,733
LRU
27%
VRU
23%
MRU
20%
EO
6%
Nat'l
24%

19. FPE: Funds Facilitated / Mobilized
Year Amount Amount Particulars
Aug1997 $75,000 PhP 1.709M Ford Foundation – Management of
National Protected Area Sites
Nov1997 $350,000 PhP 9.224M John & Catherine MacArthur Foundation –
Community Forest Program (CFP)
Jun1998 $38,557 PhP 1.177M Keidanren Nature Conservation Fund
Sep1998 $214,939 PhP 8.598M USAID-Phil. Network on Climate Change
Dec1998 $141,609 PhP 5.544M Royal Netherlands Embassy – EnDefense
thru Radio Communication Network
Mar1999 $25,000 PhP 951,250 MacArthur Foundation
Jul1999 $25,000 PhP 957,499 UNDP – preparatory for BMTP
Jan-Aug
2003
PhP 525,440 Haribon, WWF-Phils., CI, DAI Eco Gov –
Counterpart funds for TFCA -> PTFCF

20. FPE: Funds Facilitated / Mobilized
Year Amount Amount Particulars
Feb&Nov
2004
PhP 1.200M Philip Morris Philippines – PMI Fund for
Indigenous Peoples’ projects
Feb2004 PhP 100,000 Mirant Philippines – Mt. Banahaw POs
Aug2005
Jun2006
$10,044
$17,010
PhP 562,315
Php 898,835
Washington State University (WSU) for
Dasol Mangrove Rehabilitation
Nov2007
Feb2008
PhP 315,000
Php 360,000
UNDP thru DENR-ENR CORE for
Zambales IP project (PASS)
Dec2009 PhP 227,824 UNDP – SGP Writeshop for
Proj.Partners
May2010 PhP 750,000 PLDT-SMART Foundation – Punlaang
Bayan for Marikina Watershed Initiative
TOTAL $897,159 PhP29,620,544 + 3,478,264 = PhP33,098,808

21. FPE: Special Projects
Year Amount Amount Particulars
2002 to
Jun2007
PhP 30,907,763 UNDP Bohol Marine Triangle
Conservation Project
Oct2008-
Nov2013
PhP 9,160,881 EU-AnthroWatch Project; Conso. IP
Forest Corridor thru Sustainable
Ancestral Domain Mgt. (CIPFC-SADM)
Mar2010-
Dec2013
E647,991 P 36,929,328 EU-FUNDESO Project; Mainstreaming IP
Participation in Environmental
Governance (MIPPEG); Ext.-NOV2014
Sep2011-
Aug2013
$1.172M P 52,942,543 USAID-FPE Project; Up scaling Forest
Restoration Efforts in KBA; DEC2013
Aug2014-
Jun2017
P9.11M PhP 1,287,349 UNDP GEF SGP5 Responsible Party
TOTAL P 131,227,864 SPECIAL PROJECTS

22. Fund Valuation & Utilization
 P 569,809,065 $ 21,851,336
P 789,317,913 (Jun-2013) $ 18,271,248*
P 774,892,943 (Jun-2014) $ 17,752,416**
Ref. ForEx rate: *Jun-2013 = P43.20/ $ **Jun-2014 = P43.65/ $
 P 1,921,092,901 as of Jun-2014
Total Grants Approved => P 743,260,600 64.9%
Total PDME Costs => 176,958,909 15.4%
Total Admin Expenses => 225,980,449 19.7%
P 1,146,199,958 100%
 P1,179,872,486 => Cumulative Revenues from Jun-1994

23. Size of the Fund
Original Fund Balance:
P 569,809,065 1.0
As of Dec-2001 As of JUN-2012 As of JUN-2014
Fund Bal. P719.44M 1.26 P748.87M 1.31 P774.89M 1.36
Expenses P456.46M 0.80 P 1.013B 1.78 P 1.146B 2.01
Total* P1,175,898,871 P1,762,447,373 P1,921,092,901
2.06 3.09 3.37
*Total Accumulated Value of the Fund

24. THANK YOU!
www.fpe.ph

25. THANK YOU!
www.fpe.ph