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SOCIAL ACCEPTABILITY OF THE MASBATE GOLD PROJECT OPERATION

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A Thesis Presented to the Faculty of the Graduate School OSMEA COLLEGES Masbate City

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In Partial Fulfillment of the Requirements for the Degree MASTER OF PUBLIC ADMINISTRATION (MPA)

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AIRIS M. MANALOTO March, 2013

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APPROVAL SHEET This thesis entitled SOCIAL ACCEPTABILITY OF THE MASBATE GOLD PROJECT OPERATION (Unpublished Masters Thesis, Osmea Colleges Graduate School, Masbate City, March 2013) prepared and submitted by AIRIS M. MANALOTO in partial fulfillment of the requirements for the degree MASTER OF PUBLIC ADMINISTRATION (MPA) has been examined and is recommended for acceptance and approved for ORAL EXAMINATION. _______________________ Adviser THESIS COMMITTEE

______________________ Chairman ______________________ Member ______________________ Member PANEL OF EXAMINERS Approved by the Committee on Oral Examination with a grade of _______%

______________________ Chairman ______________________ Member _______________________ Member Accepted and approved in partial fulfillment of the requirement for the degree MASTER OF PUBLIC ADMINISTRATION (MPA). COMPREHENSIVE EXAMINATION: PASSED MILAGROS S. ESPARRAGO, Ed. D. Dean Graduate School ______________________ Member

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CERTIFICATION

TO WHOM IT MAY CONCERN:

This is to certify that the suggestions given by the ORAL EXAMINATION committee in the thesis of AIRIS M. MANALOTO entitled SOCIAL

ACCEPTABILITY OF THE MASBATE GOLD PROJECT OPERATION during the oral defense were complied with.

_________________________ Secretary Oral Examination Committee

Reviewed and Approved:

MILAGROS S. ESPARRAGO, Ed. D. Dean Graduate School

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CERTIFICATION

TO WHOM IT MAY CONCERN:

This is to certify that this thesis entitled SOCIAL ACCEPTABILITY OF THE MASBATE GOLD PROJECT OPERATION prepared and submitted by AIRIS M. MANALOTO has been edited by the undersigned.

_________________________ Editor

ACKNOWLEDGMENT

I would like to thank the following people:

My family, for their love and undying support to all my endeavours.

The government officials of the Municipality of Aroroy and the impact barangays,

for all the help extended to me during the conduct of my survey.

Hon. Digna G. Maristela and my former boss, the late Hon. Arturo Vicente P.

Maristela, for inspiring me to always value the voice of the people, and of course,

My

adviser, Mrs. Rosario M. Romblon,

for without

her

patience

and

intelligent judgment, this work would have never been accomplished.

A. M. M.

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DEDICATION

This work is dedicated to my grandparents, Mr. Arturo M. Manaloto and Ms. Nilda B. Royo-Manaloto, Dr. Juan M. Mecenario and Mrs. Asuncion Z. Mecenario, my parents, Mr. Aaron R. Manaloto and Dr. Marilyn M. Manaloto, my sister April M. Lignes, her husband Ariel and to my niece and nephews, Amari Princess, Aaron Ace, Aaron King and Aaron Jack, and to my very supportive uncle and mentor, Engr. John Arvin R. Manaloto.

I also dedicate this to the past, present and future government officials of the Municipality of Aroroy and Province of Masbate.

A. M. M.

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ABSTRACT MANALOTO, AIRIS M.: SOCIAL ACCEPTABILITY OF THE MASBATE GOLD PROJECT OPERATION. (Unpublished Masters Thesis, Osmea Colleges Graduate School, Masbate City, March, 2013).

The mining industry plays a big role in a countrys economy where it has been developed. The province of Masbate, also known for its mineral deposits, is experiencing a gold rush particularly in the municipality of Aroroy with the operation of the Masbate Gold Project. The study determined the acceptability by the people of Aroroy of the Masbate Gold Project Operation. The following specific questions were answered: What benefits are expected to be derived from the Masbate Gold Project Operation by the people and the communities in the mining area? Is there a significant difference in the perceptions on the expected benefits? What harmful effects may be caused by the Masbate Gold Project Operation? Is there a significant difference in the perceptions on the harmful effects of the Masbate Gold Project Operation? What are the perceptions of the respondents on the social acceptability of the Masbate Gold Project Operation? The study utilized the descriptive-survey-analytic method of research as it gathered data regarding the social acceptability of the Masbate Gold Project Operation in the municipality of Aroroy. With the questionnaire-rating scale as the main datagathering instrument, additional information was gathered through the Focused Group Discussion and Key Informant Interview. A total of 335 respondents chosen by random

viii sampling, representing barangay, municipal and provincial officials, employed and unemployed residents of the area, were included in the study. For the statistical treatment of the data, the frequency, weighted mean, rank and interpretation were used. Kruskall-Wallis One-Way Analysis of Variance was employed. Findings The following are the findings: 1. Expected benefits 1.1. Of the five indicators on expected benefits by the people, the three with the highest mean were on: Children can go to school, 3.36, rank 1; provide family needs, 3.15, rank 2; and increase in employment, 2.98, rank 3. Rank 4 was on spend more time with the family 2.84, and rank 5, can have time for recreation 2.54, rank 5. Total weighted mean was 14.87 with an average of 2.97, Moderate benefit. 1.2. Of the three indicators on the expected benefits by the community from the MGP, one indicator on aid for community projects with a weighted mean of 3.47, rank 1, interpreted as of great benefit. The other two indicators were of moderate benefit on: socialization, 3.09, rank 2; and improve economic condition, 2.94, rank 3. Total weighted mean was 9.5 with an average of 3.16, Moderate benefit. 1.3. The summary on the expected benefits from the project, benefits for the community with a weighted mean of 3.16 rank 1 and for the people, 2.97 rank 2, Moderate benefit.

ix 2. On the significant difference in the perceptions of expected benefits, computed KW is -59.57 for the people, N = 20, with the tabular value of .9003 at .05 level of significance. For the community, computed KW is -35.27, N = 20 with a tabular value of .8317 at .05 level of significance. Decision on the null hypothesis is accepted. 3. Harmful effects 3.1. For the harmful effects on the people, the indicator on few jobs for natives as they have no skills got a weighted mean of 3.45, rank 1, sure to happen. The other five indicators were interpreted as sometimes may happen on: increase in vices such as gambling, drinking, women, 3.24, rank 2; spending for unnecessary things and problems of peace and order as drunkenness, fights, etc., 3.17, rank 3.5; decrease in moral standards especially women, 2.81, rank 5; and develop laziness especially after receiving salary, 2.80, rank 6. Total weighted mean was 18.64 with an average of 3.11, Sometimes may happen. 3.2. For the harmful effects on the environment, all indicators were perceived as sure to happen someday on: destruction of forests due to cutting of trees, 4.07, rank 1; danger of floods and landslides, 3.81, rank 2; soil erosion, 3.67, rank 3; poisoning of water sources, 3.62, rank 4; health problems as sickness and harmful habits, 3.58, rank 5; and no sanitary waste disposal, 3.43, rank 6. Total weighted mean was 22.18, with an average of 3.70, Sure to happen someday. 3.3. Summary of the harmful effects on the people had a weighted mean of 3.11, Sometimes may happen and on the environment 3.70, Sure to happen someday. Overall weighted mean was 3.41, Sure to happen someday.

x 4. For the significant difference in the perceptions on the harmful effects of the project operations, data for the people shows the computed KW as -71.36, N = 24 with a tabular value of 91.72 at .05 level of significance. The decision on the null hypothesis is accepted. For the environment, computed KW is -71.3, N = 24 with a tabular value of 91.72 at .05 level of significance. The decision on null hypothesis is accepted. 5. Social acceptability of the project. For the total responses, 136 or 41 percent of the respondents voted in favor and 199 or 59 percent were against having a grand total of 335 responses or 100 percent. Conclusions

The following are the conclusions: The people and the community as a whole expected only moderate benefits from the project. There is no significant difference in the perceptions on the expected benefits resulting from the project. The respondents believed that the harmful effects will happen someday if the operations will continue. There is no significant difference in the perceptions on the harmful effects of the mining operation. More respondents are against the mining operations than those who favor it. Recommendations The following recommendations are being proposed: 1. Rules and regulations including all necessary requirements must be complied with in order to ensure the safety of the people as well as the miners themselves. 2. The people of the communities involved in the project must be properly informed on what the project is all about, what benefits they may expect, the risks and dangers involved and safety practices to be implemented.

xi 3. Focused group discussions involving all segments of the population should be conducted prior to the operations of the project. 4. The social responsibility of the company should be stipulated in the approval certificate to make it liable for whatever undesirable events that might happen. 5. The government must be strict in the enforcement of standards and compliance on all matters pertaining to the project. 6. Emphasis must be placed on the long-term effects of the project and not only on the quick and easy advantages. 7. Further studies must be conducted to safeguard the possible harmful effects to the people and the environment.

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TABLE OF CONTENTS

PRELIMINARIES TITLE PAGE APPROVAL SHEET CERTIFICATION CERTIFICATION ACKNOWLEDGMENT DEDICATION ABSTRACT TABLE OF CONTENTS LIST OF TABLES LIST OF FIGURES

PAGE i ii iii iv v vi vii xii xvi xvii

CHAPTER 1

THE PROBLEM Introduction Statement of the Problem Assumptions Scope and Delimitation Locale of the Study Importance of the Study Definition of Terms Notes 1 3 4 5 5 8 10 13

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PAGE CHAPTER 2 REVIEW OF RELATED LITERATURE AND STUDIES

Related Literature Foreign Local Related Studies Foreign Local Synthesis of the State-of-the-Art Theoretical Framework Conceptual Framework Statement of Hypotheses Notes 20 21 25 26 29 31 32 14 17

CHAPTER 3

RESEARCH DESIGN AND METHODOLOGY Research Design Population Sampling Technique Respondents Instrument Used Procedure Statistical Measures 34 34 35 35 35 35 37

xiv PAGE CHAPTER 4 SOCIAL ACCEPTABILITY OF THE MASBATE GOLD PROJECT OPERATION

Expected Benefits Derived from the Masbate Gold Project Operation For the People For the Community Summary Table on the Expected Benefits to be Derived from the Masbate Gold Operation Significant Difference in the Perceptions on the Expected Benefits Harmful Effects on the People Harmful Effects on the Environment Summary Table on the Possible Harmful Effects of the Masbate Gold Project Operation Significant Difference in the Perceptions on the Possible Harmful Effects Perceptions of the Respondents on the Social Acceptability of the Project CHAPTER 5 SUMMARY, CONCLUSIONS AND RECOMMENDATIONS 39 42

44

45 46 50

52

54

55

Summary Findings Conclusions Recommendations

57 58 61 62

xv PAGE BIBLIOGRAPHY 63

APPENDICES Appendix A Letter Requesting Permission Appendix B Questionnaire Rating-Scale Appendix C Computation of the Significant Difference in the Perceptions on the Expected Benefits of the Project for the People Using the Formula Kruskall Wallis One-Way Analysis of Variance Appendix D Computation of the Significant Difference in the Perceptions on the Expected Benefits of the Project for the Community Using the Formula Kruskall Wallis One-Way Analysis of Variance Appendix E Computation of the Significant Difference in the Perceptions on the Possible Harmful Effects for the People Using the Formula Kruskall Wallis One-Way of Analysis of Variance Appendix F Computation of the Significant Difference in the Perceptions on the Possible Harmful Effects to the Environment Using the Formula Kruskall Wallis One-Way of Analysis of Variance 65 66

70

72

73

75

CURRICULUM VITAE

77

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LIST OF TABLES TABLE PAGE

1.1

Expected Benefits to be Derived by the People from the Masbate Gold Project Operation Expected Benefits to be Derived by the Community from the Masbate Gold Project Operation Summary Table on the Expected Benefits to be Derived from the Masbate Gold Project Operation Significant Difference in the Perceptions on the Expected Benefits Harmful Effects on the People Harmful Effects on the Environment Summary Table on the Possible Harmful Effects of the Masbate Gold Project Operation Significant Difference in the Perceptions on the Possible Harmful Effects Acceptability of the Project

40

1.2

43

1.3

45

46 47 51

3.1 3.2 3.3

53

55 56

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LIST OF FIGURES

FIGURE

PAGE

1 2 3 4

Map of Masbate Province Map of the Masbate City Theoretical Paradigm Conceptual Paradigm

6 7 28 30