I.

PROJECT PROFILE
Project Title:

Mass Production, Product Promotion and Marketing

of Mycorrhizal Inoculants for the National Greening
Program

Project Proponent:

Ecosystems Research and Development Bureau

(ERDB)

Implementing Partner:

Natural Resources Development Corporation (NRDC)

Supervising Institution: Department of Environment and Natural Resources

(DENR)
Project Site Locations: Bohol, Laguna and Zambales
Distribution for 2012:

Luzon and Visayas

Total Budget for 2012:

Php36 M

II. PROJECT INVESTMENT PROPOSAL

A.

Background
It has been scientifically proven that the application of the symbiotic fungi in nursery
grown seedlings could improve the survival and performance of planted materials.
When environment-friendly organisms are brought back to the uplands via planted
seedlings, they can bring back the productivity of degraded ecosystems in the long
run. Recognizing the vast potentials of the technology in the rehabilitation of the
countrys degraded forest lands, the DENR Secretary has moved for the adoption of
the mycorrhizal technology in the production of the quality seedling materials for its
National Greening Program.
For 2011-2016, the National Greening Program of the Department would require
large volume of mycorrhizal inoculants on seedlings that will be used in the
reforestation and agroforestry programs. To ensure a steady supply of mycorrhizainoculated seedlings, the DENR has allotted funds for the adoption of the ERDBs
indigenous technology for mass propagation, promotion and marketing of low-cost
mycorrhizal inoculants.

B.

Project Objectives
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General Objective:
To provide continuous supply of mycorrhizal inoculants to improve the quality
of seedlings in support to the National Greening Program of the government.
Specific Objectives:
1. To establish, operate and maintain four (4) mycorrhizal mass production
sites: Laguna (2), Bohol (1) and Zambales (1) for 2012;
2. To produce at least 150 tons of mycorrhiza inoculants in 2012 and 1,500
tons for 600 million seedlings in the next four (4) years;
3. To establish a system of production, marketing and monitoring to ensure
its application in the production of quality seedlings materials;
4. To develop and implement IEC programs to promote the application of
mycorrhizal technology; and
5. To conduct built-in research (e.g. revenue, benefit/cost analysis, business
model development, viability and social acceptability of the technology).
C.

Project Activities
1. Establishment and construction This activity shall involve the
construction of four (4) mycorrhizal nursery production sites in 2012
namely: Laguna (2), Bohol (1) and Zambales (1). There will also be
purchase of equipment, construction/repair and upgrading of laboratory
facilities, construction of building/land development and upgrading of
vehicles for marketing and delivery.
2. Mycorrhizal Inoculant Mass Production and IEC Development - In order
to sustain the project investments, the mass production of mycorrhizal
inoculants and IEC support activities should be primary project activities
for the next years.
3. Built-in Research The activity involves the conduct of continuing
research for further improvement of the technology and process flow in
the system including marketing; documentation and analysis to determine
the viability potential of the mycorrhizal mass production for the
development of a business model.
4. Formulation and issuance of policy and guidelines - The activity concerns
the need for amendment in the DAO 2011-11 on nursery seedling
accreditation to include the procurement, funding and regular use of
mycorrhizal inoculants in NGP and related projects. Each DENR field
offices will furnish the NGP secretariat of periodic reports pertaining to the
mainstream use, progress and results of said inoculants.
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5. Marketing and distribution of products For DENR-ERDB inoculants

produced, the activity involves the establishment of a system, through
NRDC market networks, in the handling, packaging and distribution of the
mycorrhiza inoculants to the DENR, Regional, Provincial and CENRO
field offices along with private sector seedling distributors and
propagators. For promotion of the product and technology, Information
Dissemination Campaign and production of IEC materials shall be
regularly conducted.

D.

Project Management

Project Oversight Board

ASEC for Special Projects
ERDB Director
NRDC President
FMB Director

Finance and
Administrative
Support Group

ERDB CORE TEAM

ERDB Co-Project Team
Leader

NRDC MANAGEMENT CORE

TEAM
NRDC Co-Project Team Leader

Members

Members

Zambales production
team
Laguna production

Zambales production team

Laguna production team

Figure 1. Organizational Set-up for the Implementation of the Mycorrhizal Mass

Production Project of the National Greening Program

Description, Roles and Responsibilities of the Units:

Project Oversight Board (POB) - The POB shall be in-charge of the
following:

Formulate policy direction towards project sustainability;

Assign, mobilize and allocate resources to the project; and

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Review and evaluate project performance and institute appropriate

interventions.

The POB shall be composed of the ASEC for Special Projects, ERDB
Director, NRDC President and FMB Director. The Chairperson shall be the
Assistant Secretary for Special Projects or as elected by the board members.
ERDB Core Team This core team, in charge of the production of the
mycorrhizal inoculants for this year shall be composed of a Project Leader
(Mycorrhiza Mass Production Specialist/ Manager), 1 Research Specialists II,
4 Laboratory Technicians and 20 Nursery Laborers.
The ERDB Core Team Leader, being technically equipped of the culture and
production of mycorrhiza and possess the supervisory capability to handle
personnel and guide the same in the approved procedures and protocols to
be used in the production of mycorrhizal inoculants, shall be responsible for
recommending mass production staff which shall be concurred by POB and
the NRDC counterpart personnel and contractual personnel of the production
team shall be provided by NRDC as endorsed by the NRDC President.
The ERDB Core Team Leader shall also lead the conduct of information
dissemination, coordination and collaboration with DENR field offices and
private sector including workshops and brochure distribution about the
mycorrhizal inoculants. She shall closely coordinate with the ERDB- NGP
Capability Building Working Group to jibe with their planned conduct of
seminars. NRDC shall on the other hand closely assist ERDB (logistics
support, etc.) on mycorrhizal technology seminars.
NRDC Management Core Team For this year, this core team, being the
corporate arm of the DENR, shall handle project management activities,
procurement of equipment, funds and payroll management, administrative
support. In addition, said team shall facilitate the conduct of feasibility study
in order to determine the long term project viability, appropriate business
model/venture development, and the marketing and distribution.
Finance and Administration Support Group This group, through NRDC,
shall be in charge of the transportation, conveyance, purchases,
documentation, and preparation of reports of expenses and income,
coordination, budget preparation and other supporting services that may be
determined by the project leaders.
The group shall also be in charge of the disbursement, financial evaluation
and report of the expenses and income, billing and income collection as well
as coordination with bank partners (LBP, DBP, PNB, etc). In addition, the
group shall be responsible for the facilitation and preparation of budgetary
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requirements of activities identified by the ERDB Core Team and NRDC

Management Core Teams.
E.

Potential Impacts of the Project

Socio-economic Impact
1. The project will generate jobs as it requires laborers in the construction
laboratories/nurseries for the production of mycorrhizal inoculants as well
as in the distribution of the products to different DENR field offices.
2. In the long run, there are sustainability plans to generate income from the
sale of the products to other non-NGP clientile which can be used to
further strengthen the research component and replication of the project
to other technologies developed.
Educational Impact
1. Some faculties/professors of selected State Colleges and Universities
where the mycorrhizal facilities will be located shall be educated on
mycorrhizal basic research and technologies.
2. With focus and financial support to mycorrhizal technology, there will be a
sustained conduct of more R & D to increase/enhance research
information on the practical use of mycorrhiza on various reforestation
and other species. An effective feedback mechanism would perfect the
appropriate specific techniques and species of mycorrhiza for mass
production.
3. Environmental Impact
The quality of seedlings for planting within the NGP areas/sites will be
assured.

F.

The reintroduction of mycorrhiza thru seedlings planted in the uplands will

be an instrument in bringing back symbiotic microorganisms to the
original ecosystems of the country.

Fund Requirements
A total amount of Php36.0 M is allotted to ERDB by DENR Central Office for
the improvement of seedling quality through the application of
endomycorrhizal inoculants Hi-Q VAM 1 produced by ERDB-DENR and
MYCOVAM produced by the Biotechnology of UPLB. Of this amount,
Php24.0 M is intended for the establishment of three satellite production
areas by ERDB-NRDC (DENR) while Php12.0 M for improvement and
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upgrading and expansion of facilities by BIOTECH and availment of 150 tons

of inoculants for this year.
Below are the major fund allocated to ERDB and NRDC per major activity:
Activities
1. Pre-development and Facility Construction and
Procurement of Equipment/Supplies
establishment and construction of three
production sites
purchase of equipment, supplies and materials

Estimated Budget
(Php)
(1st year-2012)
Php 22,809,665

Responsible
Agency

Php 1,190,335

ERDB

Php 12,000,000

UPLB
Biotech

NRDC

support to IEC (production of IEC materials,

arrangement of workshops)

Market, financial and socio-economic research

2. Mass production of mycorrhizal inoculants in one
satellite site, technical supervision and monitoring,
IEC and built in research
culture, nourishment and development of
organism and quality control
IEC module development
built-in research (technical improvements &
environment impacts)

4. Upgrading of equipment/facility development of one

satellite area with BIOTECH to supply/distribute 150
tons for 2012 NGP Requirements
Total

G.

Php 36,000,000

Policy and Technical Support

The ERDB will:
Facilitate the fund distribution of Php 24.0 M to the ERDB-NRDC joint
mass production project;
Jointly with DENR management, ensure the use of the mycorrhizal
product as basis for accreditation of quality seedlings;
Prepare necessary DAO, memoranda and other policy and
communication letters in the development and use of mycorrhizal
product;
Make available the labor counterpart in the production team, IEC and
networking team including the designation of the project team leader;
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The NRDC will:

Manage the fund of Php 22,809,665.00 of the project;
Facilitate the labor and personnel counterpart in the handling, facilitate
procurement process through appropriate bidding procedures and
purchase of materials, supplies, equipment, and other products needed
by the project.
Provide ERDB in its IEC and promotional activities.
H.

Monitoring and Evaluation System

The ERDB and NRDC in consultation with the DENR Regional Offices shall
develop a monitoring and evaluation system for mycorrhiza-inoculated
seedlings. It shall also coordinate and seek assistance of NGP M & E
monitoring teams to facilitate flow of information.

I.

Work and Financial Plan 2012 (SeeTable)

Myco Mass Pro_ETC

Mar 23